Return to TFB Main Page
Return to Current Edition
Texas Agriculture Archive

November 21, 2003

AFBF advocates full 'death tax' repeal

The American Farm Bureau Federation remains committed to full repeal of the federal death tax because of its potential to prevent the transfer of farms from one generation to the next, said AFBF tax specialist Pat Wolff in a statement to the Treasury Department. Wolff, participating in a Treasury Department roundtable on jobs, growth and abolition of the death tax, said death taxes have long been a concern for farmers and ranchers, and Farm Bureau members consistently list it as the organization's top tax priority.

"While other sectors of the economy have similar concerns, farmers and ranchers are particularly sensitive to the death tax issue for several reasons," Wolff said. "Most notably, farm and ranch estates face heavier, potentially more disruptive death tax burdens than other estates."

Wolff said that in the late 1990s, roughly twice as many farm estates paid federal death taxes compared to estates in general, and the average tax paid by farms was larger than what was paid by most other estates.

Congress voted in 2001 to phase out death taxes over the next nine years, repealing them in full for only one year—2010. The tax would resurrect in 2011 unless Congress permanently repeals it before then.

"The reinstatement of death taxes in 2011 would translate into a wider range of medium and large farm estates owing more taxes in 2011 than in 2001 before the latest round of reforms began," Wolff said.

She added that while the average estate tax rate in the late 1990s was 20 percent to 22 percent for the operations owing the tax, the rate in 2010 would drop to zero before rising to 35 percent in 2011.

A tax burden of this magnitude would be large enough to disrupt operations, Wolff said, and exacerbate the problem of transferring farms from one generation to the next for a growing number of medium- to large-size family farms.

Leavitt to head EPA

After months of wrangling and roadblocks imposed by the Democratic Party, President Bush finally saw his nominee for EPA administrator confirmed by the Senate. In an 88-8 vote, Democrats backed down and allowed Utah Governor Mike Leavitt to receive confirmation for the environment agency's top post.

Democrats have used Leavitt's nomination to renounce Bush's environmental record. But, Senate Democratic leaders conceded they were losing ground and lacked support to continue blocking the nominee.

Leavitt will succeed former EPA Administrator Christie Todd Whitman.

USDA issues proposed rule on BSE

USDA has released a proposed rule that would establish a new minimal-risk category of countries/regions that have experienced BSE and would allow the import of certain livestock and livestock products into the United States. This proposed rule would place Canada on a list of countries considered a minimal risk of BSE.

The proposed minimal risk region would include regions in which an animal had been diagnosed with BSE but in which specific preventative measures have been in place for a certain amount of time that would reduce the risk of BSE being introduced into the United States. Based on comprehensive risk analysis and review, USDA believes that the surveillance, prevention and control measures implemented by Canada are sufficient to be included in the minimal risk category.

BSE has never been detected in U.S. cattle. The USDA and other agencies have had preventative measures in place to ensure detection and swift response in the event that BSE occurred in U.S. cattle. Since 1989, USDA has banned the import of live ruminants, such as cattle, sheep and goats, and most ruminant products from the United Kingdom and other countries having BSE. The ban was extended to Europe in 1997.

The comment period on the proposed rule ends Jan. 4, 2004.

When in Washington D.C. recently, Texas Farm Bureau President Kenneth Dierschke of San Angelo (left) and District 6 State Director Gary McGehee of Mertzon presented Senator Kay Bailey Hutchison with a Texas Farm Bureau gate sign. Senator Hutchison has long been a friend of agriculture, regularly makes appearances at the organization's state convention, and has received the AGFUND endorsement throughout her political career.

Notable Quotables

"I think it would be great if we were able to grow our way out of an energy crisis—have the farmers produce products that will be converted into fuel. That makes sense."

—President George W. Bush, speaking recently in Birmingham, Ala.