Farms

They Are Going To Make It Nearly Impossible To Pass On A Farm Or A Business To Your Children

If you have a farm or a small business, would you like to pass it on to your children when you die? Well, unless Congress does something, it is going to become much, much harder to do that starting next year. Right now, there is a 5 million dollar estate tax exemption and anything above that is taxed at 35 percent. But on January 1st, the exemption will go down to 1 million dollars and the tax rate will go up to 55 percent. A lot of liberals are very excited about this, because they believe that the government will be soaking wealthy people like Warren Buffett and Bill Gates. But the truth is that a lot of farms, ranches and small businesses will be absolutely devastated by this change in the tax law. There are many farmers and ranchers out there today that do not make much money but are sitting on tracts of land that are worth millions of dollars. According to the American Farm Bureau, approximately 97 percent of all farms and ranches in the United States would be subject to the estate tax if the exemption was reduced to just a million dollars. That means that the children of these farmers and ranchers would be faced with a very cruel choice when it is time to inherit these farms and ranches. Either they come up with enough money to pay the government about half of what the farm or ranch is worth, or they sell the farm or ranch that may have been in their family for generations. Needless to say, most farm and ranch families do not have that kind of cash lying around. Most of them are just barely making it from year to year. So this change in the tax law is going to greatly accelerate the death of the family farm in America. This is also going to devastate many family-owned small businesses. Many small businesses don't make much money, but they have buildings or land or assets worth millions of dollars. Children that may have wanted to continue the family legacy will be forced to sell because of the massive tax bill that they get from Uncle Sam. This is an insidious cruelty, and it shows just how broken our system has become. (Read More....)

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The Family Farm Is Being Systematically Wiped Out Of Existence In America

An entire way of life is rapidly dying right in front of our eyes. The family farm is being systematically wiped out of existence in America, and big agribusiness and the federal government both have blood all over their hands. According to the U.S. Department of Agriculture, the number of farms in the United States has fallen from about 6.8 million in 1935 to only about 2 million today. That doesn't mean that there is less farming going on. U.S. farms are producing more than ever. But what it does mean is that farming is increasingly becoming dominated by the big boys. The rules of the game have been tilted in favor of big agribusiness so dramatically that most small farmers find that they simply cannot compete anymore. Back in 1900, about 39 percent of the U.S. population worked on farms. At this point, only about 2 percent of all Americans now live on farms. Big agribusiness, the food processing conglomerates, and big seed companies such as Monsanto completely dominate the industry. Unless something dramatic is done, the family farm is going to continue to be wiped out of existence. Unfortunately, it does not look like things are going to turn around any time soon. (Read More....)