• Skip to primary navigation
  • Skip to main content
Texas and Southwestern Cattle Raisers Association

Texas and Southwestern Cattle Raisers Association

To Honor and Protect the Ranching Way of Life

  • Who We Are
    • Why Join
    • Leadership
    • Staff
    • Allied Members
    • FAQs
    • Newsroom
    • Sponsorships
    • Employment
  • What We Do
    • Theft and Law
    • Issues and Policy
    • Education
    • Young Cattle Raisers
    • The Cattleman Magazine
    • Cattle Raisers Insurance
    • Cattle Raisers Trading Co
  • Events
    • Cattle Raisers Convention
    • Summer Meeting
    • Policy Conference
    • Ranch Gatherings
    • Ranching 101
  • Membership Center
    • Membership Center Instructions
  • Join
  • Renew
  • Show Search
Hide Search

Editorial: Rural America Needs Sound, Predictable Tax Policy

By Arthur Uhl

Arthur Uhl

They say that nothing is certain in life except death and taxes. While those two certainties are undeniable, we need to make sure that family-owned businesses, including farms and ranches, aren’t taxed to death.

Texas boasts more than 248,000 farming and ranching operations, 98% of which are family-owned. These operations, along with the other family-owned suppliers and service providers in the agricultural supply chain, are the backbone of our rural economy. They also contribute approximately $215.53 billion to Texas’ economy each year.

Preparing to pass the ranch to the next generation is a complicated process. We not only have to keep our operation financially viable now, but also must go through a cumbersome and expensive estate planning process because of the burdensome taxes incurred when we die or transfer our property to heirs.

There are more than 370 million acres expected to change hands in the next two decades. If we are to ensure that the next generation can build upon our hard work and dedication, Congress must prioritize common-sense tax policy for rural America and preserve long-standing tax provisions which allow family-owned businesses to survive.

As Congress works to enact and fund a comprehensive infrastructure package, it must make sure that Federal tax policy serves as a tool to facilitate, not hinder, generational transfer. Unfortunately, some recent proposals, such as eliminating the stepped-up basis provision, restricting Section 1031 like-kind exchanges, and lowering the current estate tax exemption limits, are completely out of touch with the needs of rural America. These provisions in the tax code are critical in allowing farms and ranches remain in operation.

Taking away these tools would be disastrous for agriculture producers. It will destroy the intensive preparations that we have made, using provisions like the stepped-up basis, to ensure the smooth passage of our property to the next generation. Sadly, under these proposals, many family farms and ranches would be sold just to pay the absurd tax bill that will land with our sons, daughters, nieces and nephews. It will also make land prohibitively expensive for those young and beginning ranchers trying to start or expand their operations.

The success of farms and ranches is something everyone should care about. The work we do and the success of our operations affect everyone every day. Besides raising the food we eat every day, American farmers and ranchers conserve nearly 900 million acres of crop and rangeland, providing wildlife habitat, sequestering carbon, and protecting and improving water quality. However, all of this depends on our ability to stay in business.

Federal tax policy that facilitates generational transfer and allows the next generation of producers to build upon the environmental and economic benefits of today’s farmers and ranchers is just as important for fifth-generation producers as it is for first-generation producers trying to get their start in the industry. Rural America needs sound tax policy because the future of family-owned businesses and family farming depends on it.

Please contact your U.S. Senators and U.S. Representative and urge them to reject any proposal that eliminates or restricts the stepped-up basis, restricts like-kind exchanges, or lowers the current estate tax exemption levels.

###

Arthur Uhl is first vice president of the Texas & Southwestern Cattle Raisers Association. He ranches in San Angelo, Texas.

Written by:
Jeremy Fuchs
Published on:
August 12, 2021

Categories: Column, Issues & Policy, News Releases

Recent Posts

Texas crop progress and condition for August 8

August 9, 2022

Much of the state received from trace amounts to upwards of 3.00 inches of precipitation. Isolated …

Continue Reading about Texas crop progress and condition for August 8

Cow-calf Corner: Nitrate poisoning in cattle

August 8, 2022

Paul Beck, Oklahoma State University Extension Beef Nutrition Specialist All plants can contain …

Continue Reading about Cow-calf Corner: Nitrate poisoning in cattle

Cow-calf Corner: Retained ownership? – Part 1

August 8, 2022

Mark Z. Johnson, Oklahoma State University Extension Beef Cattle Breeding Specialist The impacts …

Continue Reading about Cow-calf Corner: Retained ownership? – Part 1

Footer

Who We Are

Why Join
Leadership
Staff
Allied Members
FAQs
Newsroom
Sponsorships
Employment

What We Do

Theft and Law
Issues and Policy
Education
Young Cattle Raisers
The Cattleman Magazine
Cattle Raisers Insurance
Cattle Raisers Trading Co.
Texas and Southwestern Cattle Raisers Association

Information

Cattle Raisers Blog
News Releases
Bereavements
Events
Media Kit
Tip Hotline
Get Involved
Links

Membership

Membership Center
Membership Center Instructions
Join
Renew
  • Email
  • Facebook
  • Instagram
  • Twitter
  • YouTube

PO BOX 101988
FORT WORTH, TX 76185

1-800-242-7820

© 2022 Texas and Southwestern Cattle Raisers Association; All Rights Reserved.

COPYRIGHT | PRIVACY POLICY | TERMS OF USE

We Live For This Land