Iowa Senator Chuck Grassley recently made a two-week swing through southwest and northwest Iowa as part of his 99-county tour. During visits to 24 counties, Grassley says he spoke with several Iowa pork producers who expressed stepped-up basis and estate tax concerns.
In his weekly conference call with farm reporters Tuesday morning, Grassley said Democratic Senators Cory Booker, Chris Van Hollen, Bernie Sanders, Sheldon Whitehouse and Elizabeth Warren have introduced a bill that would eliminate the stepped-up basis. The American Farm Bureau has stated this proposal to eliminate the stepped-up basis in agriculture would have a costly impact.
“I had 24 meetings and I bet well over half of these meetings had questions about the tax policies of this administration, doing away with the stepped-up basis and reducing the estate tax,” Grassley said. “It would particularly hit the high investments people have to have for raising pigs. I think something pork producers ought to know is that the USDA is now paying producers for euthanized pigs that took place last year.”
Farm Bureau chief economist John Newton recently said that without stepped-up basis and considering the dramatic increase we?ve seen in land values in recent decades, many farmers would face a burdensome tax hike through capital gains taxes when they sell all or a portion of the farm?s assets.
