Senators Propose Eliminating Tax Liability for IRA-Assisted Farmers

NFFCNFFC In the News

NFFC joined a number of members and allies endorsing Senators Booker (D-NJ), Stabenow (D-MI), Warnock (D-GA), and Smith (D-MN) Family Farmer and Rancher Tax Fairness Act, which would remove the tax liability for distressed farmers and ranchers who received assistance from the Inflation Reduction Act (IRA) of 2022. This IRA, passed in August and signed by President Biden, totalled roughly $770 billion, including nearly $40 billion for agriculture, forestry and rural development; almost $20 billion were set aside for USDA conservation programs and technical assistance. It also included $14 billion for rural development to support renewable energy and biofuels infrastructure, and $4 billion to mitigate drought impacts in the Western Reclamation states.

As Senator Booker said, “The critical financial assistance we fought to include in the Inflation Reduction Act is a lifeline for distressed farmers around the country, but now those same farmers are facing a burdensome tax liability. Congress needs to quickly cut these taxes to ensure that farmers who received assistance stay on the path back to financial stability.”