|NFU Supports Legislation
Helping Young Farmers
WASHINGTON (May 2, 2005) – The National Farmers
Union is supporting legislation introduced by Reps.
Lee Terry, R-Neb., and Earl Pomeroy, D-N.D., which would
assist beginning farmers and ranchers who want to buy
their own land, while also preserving more of the nation's
This new legislation will help younger farmers and
ranchers compete with larger producers. At the same
time, it will preserve productive farm ground near urban
“I commend Representatives Terry and Pomeroy
and the bi-partisan Congressional cosponsors of this
legislation to provide tax incentives to encourage young
people to become our next generation of family farmers
and ranchers,” said NFU President Dave Frederickson.
“We need to take steps now to encourage young
people to choose farming and ranching as a profession,
to ensure that our nation’s consumers continue
to enjoy the safest, most affordable, high quality and
abundant supply of food and fiber in the world in the
Soaring land values and the high rate of absentee land
owners often prevent young agricultural producers from
owning land. This bipartisan legislation would provide
substantial capital gains relief to land owners who
voluntarily sell their acres to "first-time buyer"
farmers and ranchers. The bill contains the following
o 100% exemption from capital gains taxes would be
given to those who sell their agriculture land to a
qualified beginning producer.
o 50% exemption would be given to those who sell their
agriculture land to any producer who keeps the acres
in agricultural production.
o 25% exemption would be given to anyone selling agriculture
land, regardless to whom they sell or for what purpose.
The bill has been endorsed by several other national
and state agricultural organizations, including the
American Farm Bureau Federation, National Cattlemen's
Beef Association, R-CALF, the National Association of
Wheat Growers, and the Center for Rural Affairs.