The president of the Farm Equipment Manufacturers Association is calling on Congress to change estate tax laws, which in their current form could hurt agricultural producers.
According to NebraskaFarmer.com, John McCoy said the law as presently constituted could cause some farms to disappear. His organization has joined a number of other groups telling Congress that the law needs to be changed.
"This important legislation is vital to the sustainability of our farmer customers' operations and therefore has significant value to our Farm Equipment Manufacturers Association Members," McCoy said.
Estate taxes are set to return in 2011, McCoy said. When they do, estates worth more than $1 million could face tax rates of up to 55 percent. FEMA wants to raise the property value limit to at least $5 million and lower the rate to 35 percent.
Last year, the House of Representatives passed an act that would have the estate tax exemption set at $7 million and would keep the current rate of 45 percent. The $7 million exemption should help farmers, according to the website of Speaker of the House Nancy Pelosi, as most farms are worth between $586,000 and $2.2 million.