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Modifying Agricultural Estate Tax Law In This Tough Economy

As with many Americans these days, the agricultural community is being affected by our country's current economic situation. However, ranchers and farmers have to face an even more burdensome fact: Dealing with Federal estate tax that are due in the event a family member passes.

Florida Senators Bill Nelson [D] and Mel Martinez [R] should be commended for their part in requesting Congress to consider improving the current estate tax laws to allow our farming communities to remain in operation after the death of the family leader. Of the 10 Senate Democrats that voted in favor of Arkansas' Blanche Lincoln and Arizona's Jon Kyl's much needed bipartisan amendment, was Senator Bill Nelson.

What may ultimately happen if Congress fails to act, will be a drop in estate-tax exemption to $1 million in 2011. The end result being families that are unable to afford the tax increase will be forced out and have to sell of the land to pay for the taxes from the acquisition of the deceased family members' assets. The would most like create a buying opportunity for real estate and business developers that would replace Florida farms with other land developments.

In a comparison to other economical sectors, estate taxes are the most signifcant on family owned farms and ranches. According to the U.S. Census Bureau, approximately 98 percent of all farms in the U.S. are family owned. If the estate tax exemption is not amended by Congress, the effects may have an impact on U.S. consumers that rely on U.S.- grown food and farming products.

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