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Texas Agriculture Archive

March 7, 2003

Sandlin pushes FAARM accounts

Congressman Max Sandlin (D-Marshall) has agreed to be a primary co-sponsor of a bill advocating the formation of Farm and Ranch Risk Management (FARRM) accounts, a longtime Farm Bureau priority.

According to Steve Pringle, Texas Farm Bureau legislative director, the bill would allow a farmer to shelter up to 20 percent of his agriculture income in any one year in a tax-deferred, interest-bearing account, for up to a period of five years.

"This allows producers to delay paying taxes in a high income year and pay the tax in a year when agricultural income might be low. That way, farmers can balance out the broad swings in income that occur from year to year," said Pringle.

Co-sponsor of the bill, to be introduced in late February, is Rep. Kenny Hulshof (R-MO).

"It is extremely beneficial that Mr. Sandlin has accepted this role of leadership in this legislation. His service on the powerful Ways and Means committee significantly enhances the possibility of passage for this legislation," said Pringle. "Also, we always try to get sponsorship from both political parties to encourage broad support."