This is an important issue to us at the Titan Outlet Store – how to keep the farm in the family. In fact, we’re working with Thrivent Financial for Lutherans on putting together a presentation to farmers in our network (social network/customer network – it doesn’t matter to us!) called – you guessed it – Keeping the Farm in the Family. We’ll discuss this in more detail when the time gets closer, but be on the lookout for information on this subject sometime after harvest.

Here’s a look at the tax rates of a few different countries circa 1999:

The National Cattleman’s Beef Association started a new blog, titled Beltway Beef, and earlier this week they posted an article on the Estate Tax – better known as the Death Tax. In the article, the author expresses her concern over the raising of the taxes to go back to the pre-2001 rates – sky high over current rates. The tax hike could leave many family farm heirs with nothing from their inheritance, because of the general lack of capital associated with family farms. You can have a multimillion dollar farm operation but since so much of that money is tied up in tractors, combines, other farm equipment, and land, when it comes time to pay those taxes you’re left with few choices. Some people borrow money – but if you get a poor interest rate on that loan you’re going to do yourself in. Most people end up selling their farms because they have no other choice, removing families from their way of life and their heritage.

From the article:

According to USDA, farms and ranches are five to 20 times more likely to incur death taxes than other estates. I have written the National Cattlemen’s Beef Association and have talked to their staff on the phone. NCBA agrees that it is going to take a strong support from us—owners of small businesses and farms/ranches—to get Congress moving. I am calling my leaders in Congress. Will you do the same? Tell Congress to stand by their commitment of job creation and economic growth by killing this tax that prevents growth of family owned businesses.

I hope we can prevent this tax from becoming the monster it feels like. I have an aunt and uncle who own a beautiful ranch in western North Dakota, and my cousins who will inherit the land deserve to keep the tradition in their family without the hassle of this huge financial burden.

As the author puts it: “There is not much time left before a legal death sentence occurs in America’s Heartland.” If you’re looking for ways to curb this potential disaster, please contact your representatives at house.gov and senate.gov or just contact your local representative’s office. Be sure to stay tuned for our Thrivent Financial “Keeping the Farm in the Family” presentation this winter.

Read the full post here.

-Al Winmill

Looking to add to your farm’s equipment investment? Check out the Titan Outlet Store Inventory for a full list of our used tractors, used combines, used construction equipment, and more.