The Missouri Cattlemen's Association has given strong consideration to the advancement of legislation that will lower obstacles for prospective farmers and ranchers. An important law that has been submitted offers significant incentives to help new agricultural entrepreneurs enter the market.
Under this proposed legislation, individuals who sell all or part of their farmland to a beginning farmer would be eligible for an income tax exemption on a portion of their capital gains, up to $6 million annually. Moreover, landowners who lease to beginning farmers or ranchers could receive an income tax exemption on cash rent income, up to $25,000 per year.
In a bid to further bolster agricultural opportunities, the bill expands the definition of "business income" to allow for a deduction from a taxpayer's federal adjusted gross income based on the combined profit reported on each Schedule F and Form 4835 filed with the Internal Revenue Service.
To ensure transparency, the bill mandates that the Department of Revenue submit an annual report to the House of Representatives and the Senate, outlining the costs and benefits associated with this initiative.
This legislation represents a commendable effort by the Missouri Cattlemen's Association to support beginning farmers and ranchers, enabling them to navigate the industry's challenges and embark on successful agricultural ventures.
Photo Credit: Missouri Cattlemen's Association
Categories: Missouri, General, Livestock