Preserving Family Farms Act of 2021

Build Back Better Act (H.R. 5376) Death Tax Repeal Act (H.R. 1712/S. 617) Main Street Tax Certainty Act (H.R. 1381/S. 480) Preserving Family Farms Act (H.R. 2370/S. 3077) American Families Plan American Jobs Plan Stepped-up basis Like-kind exchanges Estate tax issues Capital Gains rates General small business tax issues

Client expense: $130,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Energy Infrastructure Act discussion draft; H.R. 448, the Energy Resilient Communities Act; H.R. 806, the Clean Energy and Sustainability Accelerator Act; H.R. 1166, the Utilizing Significant Emissions with Innovative Technologies (USE IT) Act; H.R. 1374, Enhancing State Energy Security Planning and Emergency Preparedness Act of 2021; H.R. 1485, the Open Back Better Act; H.R. 1512, Climate Leadership and Environmental Action for Our Nations (CLEAN) Future Act; H.R. 1746 - Advanced Nuclear Deployment Act; H.R. 1848, the LIFT America Act; H.R. 1992, Storing CO2 & Lowering Emissions Act (SCALE Act); H.R. 2097, to direct the Secretary of Energy to establish a program for the interim storage of high-level radioactive waste and spent nuclear fuel; H.R. 2370, Zero Emissions Homes Act; H.R. 2885, POWER ON Act of 2021; H.R. 2928, Cyber Sense Act of 2021; H.R. 2931, Enhancing Grid Security through Public-Private Partnerships Act; H.R. 3119, Energy Emergency Leadership Act; H.R. 3209, Disaster Safe Power Grid Act of 2021; H.R. 3534, Wildfire Emergency Act; H.R. 4027, the Efficient Grid Interconnection Act; H.R. 4153, Clean Energy Future Through Innovation Act of 2021; H.R. 4309, Clean Energy Innovation and Deployment Act H.R. 4326, the EV MAP Act; H.R. 4440, the Medium- and Heavy-Duty EV Infrastructure Act of 2021; H.R. 4909, Clean Hydrogen Energy Act; H.R. 4960, Preserving Existing Nuclear Generation Act H.R. 4972/S. 2659, the Advanced Energy Technologies and Grid Efficiency Act; H.R. 5376, the Build Back Better Act H.R.5368 - Investing in Energy Regions Act; H.R. 5545, the No EXHAUST Act; H.R. 6084, Energy Product Reliability Act; H.R. 6154 - Accelerating Nuclear Innovation through Fee Reform Act; H.R.6685 - Spent Fuel Prioritization Act of 2022; H.R.6901-To prohibit the use of Federal funds for the private interim storage of spent nuclear fuel, and for other purposes; H.R. 7360, Fission for the Future Act of 2022; H.R. 7410, the Hydropower Clean Energy Future Act, and hydropower relicensing reform issues; H.R. 7453, the EV Grid Act; H.R. 7962, "To amend the Energy Policy and Conservation Act to modify the definition of water heater under energy conservation standards and for other purposes"; H.R. 8152, the American Data Privacy and Protection Act; H.R. 8471, the Advancing Nuclear Regulatory Oversight Act; H.R. 8723, the Fueling Our Nuclear Future Act; H. Res. 457, Expressing that the United States must establish electricity as a basic human right and public good, and eradicate the reliance on monopolized, profit-driven utility corporations and providers and the flawed regulatory regime that has failed to regulate these utilities in the public interest; S. 704, Disaster Safe Power Grid Act of 2021; S. 799, Storing CO2 & Lowering Emissions Act (SCALE Act); S. 1400, Protect Act of 2021; S. 1482, POWER ON Act of 2021; S. 1783, Maintaining Access to Essential Services Act of 2021; S. 1855, Wildfire Emergency Act; S. 2373, American Nuclear Infrastructure Act S. 2377, Energy Infrastructure Act; S. 2370, Zero Emissions Homes Act; S. 2651, the SITE Act; S.3428 - Fission for the Future Act of 2021; S.3741- A bill to prohibit the use of Federal funds for the private interim storage of spent nuclear fuel, and for other purposes; S. 4066, Fueling Our Nuclear Future Act of 2022; S. 4983, Vehicle-to-grid BIDIRECTIONAL Act; Enhancing Fossil Fuel Energy Carbon Technology (EFFECT) Act discussion draft; PURPA issues generally; Bipartisan infrastructure framework; Draft clean energy standard proposals; Draft grid modernization legislation; Draft transportation legislation; Draft grid resiliency grant legislation; Electricity transmission generally; Smart communities issues generally; Clean energy issues generally; Energy storage issues generally; Energy RD&D generally; Hydrogen issues generally; Grid modernization issues generally; Grid security issues generally; Grid resiliency issues generally. Natural Gas infrastructure issues generally; Discussion draft to amend Energy Policy Act of 2005 to require RD&D of clean hydrogen technologies; Discussion draft to identify hydrogen deployment barriers; Draft vehicle-to-grid legislation; Draft demand response legislation; Emissions reporting generally; Repeal of Section 433; Draft legislation related to interregional transmission; Energy Independence and Security Act; Draft cyber distribution baseline standards legislation;

Client expense: $360,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

H.R. 1712-S.617 To Amend the Internal Revenue Code of 1986 to repeal the estate tax H.R. 2370, Preserving Family Farms Act of 2021 H.R.1381/.480 Main Street Tax Certainty Act Sec. 1031 Like Kind Exchange S. 1249, PPP Flexibility for Farmers, Ranchers, and the Self-Employed Act H.R. 2370, Special Use Valuation S. 1166/H.R. 2558, Accelerate Long-term Investment Growth Now Act H.R. 4522, The Water and Agriculture Tax Reform H.R.5376 - Build Back Better Act

Client expense: $49,352 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Opposed the Sensible Taxation and Equity Promotion (STEP) Act; Support for H.R. 2370 Death Tax Repeal Act; Support the continuation of Sec. 1031 Like Kind Exchanges; Support H.R. 1381 and S. 480 Main Street Tax Certainty Act; Opposed the elimination of the 199A small business deduction; Opposed removal of capital gains tax step up in basis provisions; Opposed tax increases included in H.R. 5376, the Build Back Better Act; Opposed expanding the Net Investment Income Tax (NIIT) and extending the so-called excess business loss limitation for noncorporate taxpayers;

Client expense: $60,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Internal Revenue Service (IRS), SENATE

Kansas Farm Bureau opposes various bills and proposals that eliminate step up basis. We oppose legislation that creates a capital gains tax at date of death. We are thankful Congressman Mann lead an effort in a Sense of the House to oppose the repeal of stepped up basis. Kansas Farm Bureau supports a full repeal of the estate tax (commonly referred to as the "death tax" in farming and ranching). Short of a full repeal, keeping the current estate tax at the $11 million indexed for inflation will be key as farming and ranching families make decisions to transition the farm to future generations. Farm Bureau supports legislation, H.R. 2370, to allow more farm and ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. Farm and ranch families who want to continue farming and ranching when a member of their family dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. Farm Bureau supports H.R.2370, the Preserving Family Farms Act of 2021, introduced by Rep. Jimmy Panetta (D-Calif.) and Jackie Walorski (R-Ind.). which would allow more farm or ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. This legislation updates IRS Code Section 2032A Special Use Valuation which allows farmers and ranchers to pay estate taxes on the value of farmland based on agricultural use, rather than its value if it sold for development. Under current law heirs can reduce the value of their property to reflect agricultural use by up to $1.19 million. H.R. 2370 would expand the amount of the reduction to $11.7 million thereby increasing the amount of agricultural land that can be protected by using special use valuation. In exchange for this alternative valuation, family members must continue the farming or ranch in business for 10 years or pay the complete tax amount. Farm Bureau is opposed to legislation that has been proposed in the House and Senate to end stepped-up basis and impose capital gains taxes at death. The bills treat property which is transferred by gift or at death as if were sold for its fair market value. This deemed sale causes a recognition of gain, the amount that the asset increased in value while owned by the decedent, that is subject to capital gains taxes. The legislation contains an exclusion for up to $1 million dollars of gain. This new capital gains tax at death would be applied on top of existing estate taxes - so that both the new capital gains tax and existing estate taxes would be collected when a farm or ranch owned dies. We oppose the proposed Senate bill is called the Sensible Taxation and Equity Promotion (STEP) Act, introduced by Sens. Chris Van Hollen (D-Md.), Cory Booker (D-N.J.), Bernie Sanders (I-Vt.), Sheldon Whitehouse (D-R.I.) and Elizabeth Warren (D-Mass.). The introduced House bill is H.R. 2286. A capital gain is a measure of an assets appreciation - the difference between the amount received when an asset is sold and the assets basis/purchase price. Typically, capital gains are taxed when an asset is sold. Under current law, however, transfers at death are not treated as a sale and the capital gain is not taxed. In addition, the basis of the property is stepped up to current value so that if the property were sold, capital gains taxes would only be paid on appreciation since the property was inherited. The current top capital gains tax rate is 20 percent. The value of family-owned farms and ranches are tied to illiquid assets such as land, buildings and equipment. With a majority, 82%, of farm assets in illiquid farm real estate, producers have few options when it comes to generating cash to pay taxes at death. When taxes at death on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports. The harm caused to agricultural businesses that comes from taxes imposed at death is multiplied when both estate taxes and capital gains taxes are imposed. Farm Bureau supports the continuation of Sec. 1031 Like Kind Exchanges. The rollback or elimination of this provision, which is popular with farmers and ranchers, is frequently mentioned as a possible pay-for for spending legislation. By using Section 1031, farmers and ranchers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers and ranchers might have to incur debt to continue their farm or ranch businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm or ranch. Farmers and ranchers frequently use like-kind exchanges to: Consolidate distant parcels of land; Obtain more productive land; Mitigate environmental impacts; Expand their operation to include young or beginning farmers; Upgrade structures like greenhouses or buildings used to house animals; or Move out of the path of urban development.

Client expense: $50,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

H.R. 1712-S.617 To Amend the Internal Revenue Code of 1986 to repeal the estate tax H.R. 2370, Preserving Family Farms Act of 2021 H.R.1381/.480 Main Street Tax Certainty Act Sec. 1031 Like Kind Exchange S. 1249, PPP Flexibility for Farmers, Ranchers, and the Self-Employed Act H.R. 2370, Special Use Valuation S. 1166/H.R. 2558, Accelerate Long-term Investment Growth Now Act H.R. 4522, The Water and Agriculture Tax Reform H.R.5376 - Build Back Better Act

Client expense: $146,254 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Build Back Better Act (H.R. 5376) Death Tax Repeal Act (H.R. 1712/S. 617) Main Street Tax Certainty Act (H.R. 1381/S. 480) Preserving Family Farms Act (H.R. 2370/S. 3077) American Families Plan American Jobs Plan Stepped-up basis Like-kind exchanges Estate tax issues Capital Gains rates General small business tax issues

Client expense: $130,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Energy Infrastructure Act discussion draft; H.R. 448, the Energy Resilient Communities Act; H.R. 806, the Clean Energy and Sustainability Accelerator Act; H.R. 1166, the Utilizing Significant Emissions with Innovative Technologies (USE IT) Act; H.R. 1374, Enhancing State Energy Security Planning and Emergency Preparedness Act of 2021; H.R. 1485, the Open Back Better Act; H.R. 1512, Climate Leadership and Environmental Action for Our Nations (CLEAN) Future Act; H.R. 1746 - Advanced Nuclear Deployment Act; H.R. 1848, the LIFT America Act; H.R. 1992, Storing CO2 & Lowering Emissions Act (SCALE Act); H.R. 2097, to direct the Secretary of Energy to establish a program for the interim storage of high-level radioactive waste and spent nuclear fuel; H.R. 2370, Zero Emissions Homes Act; H.R. 2885, POWER ON Act of 2021; H.R. 2928, Cyber Sense Act of 2021; H.R. 2931, Enhancing Grid Security through Public-Private Partnerships Act; H.R. 3119, Energy Emergency Leadership Act; H.R. 3209, Disaster Safe Power Grid Act of 2021; H.R. 3534, Wildfire Emergency Act; H.R. 4027, the Efficient Grid Interconnection Act; H.R. 4153, Clean Energy Future Through Innovation Act of 2021; H.R. 4309, Clean Energy Innovation and Deployment Act H.R. 4326, the EV MAP Act; H.R. 4440, the Medium- and Heavy-Duty EV Infrastructure Act of 2021; H.R. 4909, Clean Hydrogen Energy Act; H.R. 4960, Preserving Existing Nuclear Generation Act H.R. 4972/S. 2659, the Advanced Energy Technologies and Grid Efficiency Act; H.R. 5376, the Build Back Better Act H.R.5368 - Investing in Energy Regions Act; H.R. 5545, the No EXHAUST Act; H.R. 6084, Energy Product Reliability Act; H.R. 6154 - Accelerating Nuclear Innovation through Fee Reform Act; H.R.6685 - Spent Fuel Prioritization Act of 2022; H.R.6901-To prohibit the use of Federal funds for the private interim storage of spent nuclear fuel, and for other purposes; H.R. 7360, Fission for the Future Act of 2022; H.R. 7410, the Hydropower Clean Energy Future Act, and hydropower relicensing reform issues; H.R. 7453, the EV Grid Act; H.R. 7962, "To amend the Energy Policy and Conservation Act to modify the definition of water heater under energy conservation standards and for other purposes"; H.R. 8152, the American Data Privacy and Protection Act; H. Res. 457, Expressing that the United States must establish electricity as a basic human right and public good, and eradicate the reliance on monopolized, profit-driven utility corporations and providers and the flawed regulatory regime that has failed to regulate these utilities in the public interest; S. 704, Disaster Safe Power Grid Act of 2021; S. 799, Storing CO2 & Lowering Emissions Act (SCALE Act); S. 1400, Protect Act of 2021; S. 1482, POWER ON Act of 2021; S. 1783, Maintaining Access to Essential Services Act of 2021; S. 1855, Wildfire Emergency Act; S. 2373, American Nuclear Infrastructure Act S. 2377, Energy Infrastructure Act; S. 2370, Zero Emissions Homes Act; S. 2651, the SITE Act; S.3428 - Fission for the Future Act of 2021; S.3741- A bill to prohibit the use of Federal funds for the private interim storage of spent nuclear fuel, and for other purposes; S. 4066, Fueling Our Nuclear Future Act of 2022; Enhancing Fossil Fuel Energy Carbon Technology (EFFECT) Act discussion draft; PURPA issues generally; Bipartisan infrastructure framework; Draft clean energy standard proposals; Draft grid modernization legislation; Draft transportation legislation; Draft grid resiliency grant legislation; Electricity transmission generally; Smart communities issues generally; Clean energy issues generally; Energy storage issues generally; Energy RD&D generally; Hydrogen issues generally; Grid modernization issues generally; Grid security issues generally; Grid resiliency issues generally. Natural Gas infrastructure issues generally; Discussion draft to amend Energy Policy Act of 2005 to require RD&D of clean hydrogen technologies; Discussion draft to identify hydrogen deployment barriers; Draft vehicle-to-grid legislation; Draft demand response legislation; Emissions reporting generally; Repeal of Section 433.

Client expense: $360,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Opposed the Sensible Taxation and Equity Promotion (STEP) Act; Support for H.R. 2370 Death Tax Repeal Act; Support the continuation of Sec. 1031 Like Kind Exchanges; Support H.R. 1381 and S. 480 Main Street Tax Certainty Act; Opposed the elimination of the 199A small business deduction; Opposed removal of capital gains tax step up in basis provisions; Opposed tax increases included in H.R. 5376, the Build Back Better Act.

Client expense: $30,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Internal Revenue Service (IRS), SENATE

Kansas Farm Bureau opposes various bills and proposals that eliminate step up basis. We oppose legislation that creates a capital gains tax at date of death. We are thankful Congressman Mann lead an effort in a Sense of the House to oppose repeal of stepped up basis. Kansas Farm Bureau supports a full repeal of the estate tax (commonly referred to as the "death tax" in farming and ranching). Short of a full repeal, keeping the current estate tax at the $11 million indexed for inflation will be key as farming and ranching families make decisions to transition the farm to future generations. Farm Bureau supports legislation, H.R. 2370, to allow more farm and ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. Farm and ranch families who want to continue farming and ranching when a member of their family dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. Farm Bureau supports H.R.2370, the Preserving Family Farms Act of 2021, introduced by Rep. Jimmy Panetta (D-Calif.) and Jackie Walorski (R-Ind.). which would allow more farm or ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. This legislation updates IRS Code Section 2032A Special Use Valuation which allows farmers and ranchers to pay estate taxes on the value of farmland based on agricultural use, rather than its value if it sold for development. Under current law heirs can reduce the value of their property to reflect agricultural use by up to $1.19 million. H.R. 2370 would expand the amount of the reduction to $11.7 million thereby increasing the amount of agricultural land that can be protected by using special use valuation. In exchange for this alternative valuation, family members must continue the farming or ranch in business for 10 years or pay the complete tax amount. Farm Bureau is opposed to legislation that has been proposed in the House and Senate to end stepped-up basis and impose capital gains taxes at death. The bills treat property which is transferred by gift or at death as if were sold for its fair market value. This deemed sale causes a recognition of gain, the amount that the asset increased in value while owned by the decedent, that is subject to capital gains taxes. The legislation contains an exclusion for up to $1 million dollars of gain. This new capital gains tax at death would be applied on top of existing estate taxes - so that both the new capital gains tax and existing estate taxes would be collected when a farm or ranch owned dies. We oppose the proposed Senate bill is called the Sensible Taxation and Equity Promotion (STEP) Act, introduced by Sens. Chris Van Hollen (D-Md.), Cory Booker (D-N.J.), Bernie Sanders (I-Vt.), Sheldon Whitehouse (D-R.I.) and Elizabeth Warren (D-Mass.). The introduced House bill is H.R. 2286. A capital gain is a measure of an assets appreciation - the difference between the amount received when an asset is sold and the assets basis/purchase price. Typically, capital gains are taxed when an asset is sold. Under current law, however, transfers at death are not treated as a sale and the capital gain is not taxed. In addition, the basis of the property is stepped up to current value so that if the property were sold, capital gains taxes would only be paid on appreciation since the property was inherited. The current top capital gains tax rate is 20 percent. The value of family-owned farms and ranches are tied to illiquid assets such as land, buildings and equipment. With a majority, 82%, of farm assets in illiquid farm real estate, producers have few options when it comes to generating cash to pay taxes at death. When taxes at death on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports. The harm caused to agricultural businesses that comes from taxes imposed at death is multiplied when both estate taxes and capital gains taxes are imposed. Farm Bureau supports the continuation of Sec. 1031 Like Kind Exchanges. The rollback or elimination of this provision, which is popular with farmers and ranchers, is frequently mentioned as a possible pay-for for spending legislation. By using Section 1031, farmers and ranchers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers and ranchers might have to incur debt to continue their farm or ranch businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm or ranch. Farmers and ranchers frequently use like-kind exchanges to: Consolidate distant parcels of land; Obtain more productive land; Mitigate environmental impacts; Expand their operation to include young or beginning farmers; Upgrade structures like greenhouses or buildings used to house animals; or Move out of the path of urban development.

Client expense: $20,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

H.R. 1712-S.617 To Amend the Internal Revenue Code of 1986 to repeal the estate tax H.R. 2370, Preserving Family Farms Act of 2021 H.R.1381/.480 Main Street Tax Certainty Act Sec. 1031 Like Kind Exchange S. 1249, PPP Flexibility for Farmers, Ranchers, and the Self-Employed Act H.R. 2370, Special Use Valuation S. 1166/H.R. 2558, Accelerate Long-term Investment Growth Now Act H.R. 4522, The Water and Agriculture Tax Reform H.R.5376 - Build Back Better Act

Client expense: $92,899 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Build Back Better Act (H.R. 5376) Death Tax Repeal Act (H.R. 1712/S. 617) Main Street Tax Certainty Act (H.R. 1381/S. 480) Preserving Family Farms Act (H.R. 2370/S. 3077) American Families Plan American Jobs Plan Stepped-up basis Like-kind exchanges Estate tax issues Capital Gains rates General small business tax issues

Client expense: $90,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Opposed the Sensible Taxation and Equity Promotion (STEP) Act; Support for H.R. 2370 Death Tax Repeal Act; Support the continuation of Sec. 1031 Like Kind Exchanges; Support H.R. 1381 and S. 480 Main Street Tax Certainty Act; Opposed the elimination of the 199A small business deduction; Opposed removal of capital gains tax step up in basis provisions; Opposed tax increases included in H.R. 5376, the Build Back Better Act.

Client expense: $60,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Internal Revenue Service (IRS), SENATE

Support for S. 617 and H.R. 1712, the Death Tax Repeal Act, which would permanently repeal the Federal Estate Tax; H.R. 1381 and S. 480, the Main Street Tax Certainty Act, which would make the 199A business tax deduction permanent; H.R. 2370, the Preserving Family Farms Act of 2021, which would update IRS Code Section 2032A Special Use Valuation to allow more farmland to be valued at its agricultural value rather than its inflated development value for estate tax purposes; H.R. 2558 and S. 1166, the Accelerate Long-term Investment Growth Now Act (ALIGN Act), which would make full and immediate expensing provisions permanent; H.R. 2447, the Veterinary Medicine Loan Repayment Program Enhancement Act, which would reduce taxes for veterinary students who agree to serve in an underserved rural areas. Opposition to legislation and proposals (such as reconciliation proposals) that would repeal stepped-up basis, increase capital gains taxes, and/or impose capital gains tax at death, including H.R. 2286 (no title) which would amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes. General support for tax measures to help agriculture including, securing permanent estate tax and capital gains tax law that allows family-owned farms to transfer from one generation to another; making low-income tax rates and business deductions permanent to permit farmers to keep more of their earnings and invest in their businesses; locking in tax code provisions allowing farm operations to match expenses with income, helping manage the seasonal and cyclical nature of their businesses, valuation discounts; Section 1031 - like-kind exchanges; low corporate tax rates; and tax incentives for renewable energy resources.

Client expense: $20,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Kansas Farm Bureau opposes various bills and proposals that eliminate step up basis. We oppose legislation that creates a capital gains tax at date of death. We are thankful Congressman Mann lead an effort in a Sense of the House to oppose repeal of stepped up basis. Kansas Farm Bureau supports a full repeal of the estate tax (commonly referred to as the "death tax" in farming and ranching). Short of a full repeal, keeping the current estate tax at the $11 million indexed for inflation will be key as farming and ranching families make decisions to transition the farm to future generations. Farm Bureau supports legislation, H.R. 2370, to allow more farm and ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. Farm and ranch families who want to continue farming and ranching when a member of their family dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. Farm Bureau supports H.R.2370, the Preserving Family Farms Act of 2021, introduced by Rep. Jimmy Panetta (D-Calif.) and Jackie Walorski (R-Ind.). which would allow more farm or ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. This legislation updates IRS Code Section 2032A Special Use Valuation which allows farmers and ranchers to pay estate taxes on the value of farmland based on agricultural use, rather than its value if it sold for development. Under current law heirs can reduce the value of their property to reflect agricultural use by up to $1.19 million. H.R. 2370 would expand the amount of the reduction to $11.7 million thereby increasing the amount of agricultural land that can be protected by using special use valuation. In exchange for this alternative valuation, family members must continue the farming or ranch in business for 10 years or pay the complete tax amount. Farm Bureau is opposed to legislation that has been proposed in the House and Senate to end stepped-up basis and impose capital gains taxes at death. The bills treat property which is transferred by gift or at death as if were sold for its fair market value. This deemed sale causes a recognition of gain, the amount that the asset increased in value while owned by the decedent, that is subject to capital gains taxes. The legislation contains an exclusion for up to $1 million dollars of gain. This new capital gains tax at death would be applied on top of existing estate taxes - so that both the new capital gains tax and existing estate taxes would be collected when a farm or ranch owned dies. We oppose the proposed Senate bill is called the Sensible Taxation and Equity Promotion (STEP) Act, introduced by Sens. Chris Van Hollen (D-Md.), Cory Booker (D-N.J.), Bernie Sanders (I-Vt.), Sheldon Whitehouse (D-R.I.) and Elizabeth Warren (D-Mass.). The introduced House bill is H.R. 2286. A capital gain is a measure of an assets appreciation - the difference between the amount received when an asset is sold and the assets basis/purchase price. Typically, capital gains are taxed when an asset is sold. Under current law, however, transfers at death are not treated as a sale and the capital gain is not taxed. In addition, the basis of the property is stepped up to current value so that if the property were sold, capital gains taxes would only be paid on appreciation since the property was inherited. The current top capital gains tax rate is 20 percent. The value of family-owned farms and ranches are tied to illiquid assets such as land, buildings and equipment. With a majority, 82%, of farm assets in illiquid farm real estate, producers have few options when it comes to generating cash to pay taxes at death. When taxes at death on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports. The harm caused to agricultural businesses that comes from taxes imposed at death is multiplied when both estate taxes and capital gains taxes are imposed. Farm Bureau supports the continuation of Sec. 1031 Like Kind Exchanges. The rollback or elimination of this provision, which is popular with farmers and ranchers, is frequently mentioned as a possible pay-for for spending legislation. By using Section 1031, farmers and ranchers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers and ranchers might have to incur debt to continue their farm or ranch businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm or ranch. Farmers and ranchers frequently use like-kind exchanges to: Consolidate distant parcels of land; Obtain more productive land; Mitigate environmental impacts; Expand their operation to include young or beginning farmers; Upgrade structures like greenhouses or buildings used to house animals; or Move out of the path of urban development.

Client expense: $30,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

The Tax Cuts and Jobs Act (TCJA) temporarily doubled the estate tax exemption from $5.5 million to $11 million per person ($11.7 million indexed for 2021) through 2025. While the higher temporary exemption level protects the vast majority of the nations farms and ranches from the devastating consequences of estate taxes, farm and ranch families with businesses that top the exemption level are still plagued by estate taxes and related planning costs. Supported HR H.R. 2370, to allow more farm and ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. Farm and ranch families who want to continue farming and ranching when a family member dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. The Section 2032A valuation tool for estate tax purposes was designed to provide farm and ranch families protection from burdensome estate taxes when passing down the family business. The deduction carefully delineates between types of property eligible for the Special Use Valuation by targeting estate tax relief to farm and ranch operations where the family plans to continue farming and ranching. Though the Section 2032A reduction limit originally outlined in the law was updated to increase with inflation, it no longer provides the level of protection it was meant to offer farmers and ranchers. Expanding the provision would allow more farm and ranch land to qualify for Section 2032A Special Use Valuation, restoring it value as the helpful estate planning tool that was intended by Congress. Monitored the American Families Plan. Tthe American Families Plan, proposes tax cuts and programs including: Step Up in Basis Would be Repealed and Instead Capital Gains Taxes Would be Collected at Death Stepped up basis provides that capital gains taxes are not imposed when assets are transferred at death to an heir. Furthermore, tax law allows the heir to increase their basis in the assets to fair market value and only owe capital gains taxes on the amount the asset appreciates while they owed it and only if the asset is sold. The proposal would repeal step up in basis for gains over $1 million and collect capital gains at death unless assets are donated to charity. A proposed protection for family-owned farms and businesses is not explained. Capital Gains Tax Rates Will Almost Double for Some Farms and ranches pay capital gains taxes when they sell long-term capital assets like land and buildings. The tax is based on the amount that the asset has increased in value since purchase which can be significant for agriculture where assets are typically held for a long time. Capital gains tax rates would increase from 20% to 39.6% for households making over $1 million. Like Kind Exchange (1031) Are Repealed Like Kind Exchanges allow farmers and ranchers and other businesses to defer capital gains taxes when they sell an asset and replace it with a similar asset. Farmers and ranchers use like kind exchanges for capital assets like land and single-purpose structures. The proposal repeals like kind exchanges for exchanges for gains greater than $500,000. Individual Income Tax Rate Will Increase According to the Census of Agriculture, about 94% of farm and ranch businesses pay taxes using individual tax rates, as sole-proprietors or partnerships. The proposal increases the top individual income tax rate bracket from 37% to 39.6 %.

Client expense: Not reported · Firm income: Not reported

Build Back Better Act (HR 5376) Death Tax Repeal Act (HR 1712/S 617) Main Street Tax Certainty Act (HR 1381/ S 480) Preserving Family Farms Act (HR 2370 / S 3077) American Families Plan American Jobs Plan Stepped-up basis Like-kind exchanges Estate Tax issues Capital Gains rates General small business tax issues

Client expense: $90,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Bureau of Land Management (BLM), Commodity Futures Trading Commission (CFTC), Council on Environmental Quality (CEQ), Environmental Protection Agency (EPA), Federal Motor Carrier Safety Administration, Food & Drug Administration (FDA), HOUSE OF REPRESENTATIVES, Interior, Dept of (DOI), SENATE, U.S. Fish & Wildlife Service (USFWS), U.S. Forest Service, U.S. Trade Representative (USTR), White House Office

H.R. 1712-S.617 To Amend the Internal Revenue Code of 1986 to repeal the estate tax H.R. 2370, Preserving Family Farms Act of 2021 H.R.1381/.480 Main Street Tax Certainty Act Sec. 1031 Like Kind Exchange S. 1249, PPP Flexibility for Farmers, Ranchers, and the Self-Employed Act H.R. 2370, Special Use Valuation S. 1166/H.R. 2558, Accelerate Long-term Investment Growth Now Act H.R. 4522, The Water and Agriculture Tax Reform H.R.5376 - Build Back Better Act

Client expense: $169,539 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Environmental Protection Agency (EPA), HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Transportation, Dept of (DOT), U.S. Trade Representative (USTR)

Opposed the Sensible Taxation and Equity Promotion (STEP) Act; Support for H.R. 2370 Death Tax Repeal Act; Support the continuation of Sec. 1031 Like Kind Exchanges; Support H.R. 1381 and S. 480 Main Street Tax Certainty Act; Opposed the elimination of the 199A small business deduction; Opposed removal of capital gains tax step up in basis provisions; Opposed tax increases included in H.R. 5376, the Build Back Better Act.

Client expense: $120,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Army, Dept of (Corps of Engineers), Commodity Futures Trading Commission (CFTC), Environmental Protection Agency (EPA), Federal Energy Regulatory Commission (FERC), Federal Motor Carrier Safety Administration, Food & Drug Administration (FDA), HOUSE OF REPRESENTATIVES, Homeland Security, Dept of (DHS), Internal Revenue Service (IRS), Justice, Dept of (DOJ), Labor, Dept of (DOL), SENATE, Small Business Administration (SBA), State, Dept of (DOS), Transportation, Dept of (DOT), U.S. International Trade Commission (ITC), U.S. Trade Representative (USTR), White House Office

Support for S. 617 and H.R. 1712, the Death Tax Repeal Act, which would permanently repeal the Federal Estate Tax; H.R. 1381 and S. 480, the Main Street Tax Certainty Act, which would make the 199A business tax deduction permanent; H.R. 2370, the Preserving Family Farms Act of 2021, which would update IRS Code Section 2032A Special Use Valuation to allow more farmland to be valued at its agricultural value rather than its inflated development value for estate tax purposes; H.R. 2558 and S. 1166, the Accelerate Long-term Investment Growth Now Act (ALIGN Act), which would make full and immediate expensing provisions permanent; H.R. 2447, the Veterinary Medicine Loan Repayment Program Enhancement Act, which would reduce taxes for veterinary students who agree to serve in an underserved rural areas. Opposition to legislation and proposals (such as reconciliation proposals) that would repeal stepped-up basis, increase capital gains taxes, and/or impose capital gains tax at death, including H.R. 2286 (no title) which would amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes. General support for tax measures to help agriculture including, securing permanent estate tax and capital gains tax law that allows family-owned farms to transfer from one generation to another; making low-income tax rates and business deductions permanent to permit farmers to keep more of their earnings and invest in their businesses; locking in tax code provisions allowing farm operations to match expenses with income, helping manage the seasonal and cyclical nature of their businesses, valuation discounts; Section 1031 - like-kind exchanges; low corporate tax rates; and tax incentives for renewable energy resources.

Client expense: Not reported · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Environmental Protection Agency (EPA), HOUSE OF REPRESENTATIVES, Homeland Security, Dept of (DHS), SENATE, State, Dept of (DOS), White House Office

TFB lobbied for members to co-sponsor and support S. 617/H.R. 1712, Death Tax Repeal Act of 2021 by Reps. Jason Smith, Sanford Bishop and Sen. John Thune. TFB supports this legislation to provide tax relief for farmers and ranchers. TFB supported and advocated for passage of H.R. 2370, the Preserving Family Farm Act of 2021 by Reps. Jimmy Panetta and Jackie Walorski which would allow more farm and ranch land to be valued at is agricultural rather than inflated development value for estate tax purposes. TFB pushed to make tax reform provisions important to farmers and ranchers a permanent part of the tax code. Tax reform is a top priority for TFB and making provisions in the Tax Cuts and Jobs Act permanent is important to TFB members. TFB advocated against negative tax policies in the reconciliation package. Included was advocating against abolishing stepped-up basis, cutting the estate tax exemption rate, narrowing 199A business income deduction, raising the corporate tax rate, and instating a methane tax. TFB continues to fight against using tax increases on agriculture to pay for items in the reconciliation package.

Client expense: $190,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Kansas Farm Bureau opposes various bills and proposals that eliminate step up basis. We oppose legislation that creates a capital gains tax at date of death. Kansas Farm Bureau supports a full repeal of the estate tax (commonly referred to as the "death tax" in farming and ranching). Short of a full repeal, keeping the current estate tax at the $11 million indexed for inflation will be key as farming and ranching families make decisions to transition the farm to future generations. Farm Bureau supports legislation, H.R. 2370, to allow more farm and ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. Farm and ranch families who want to continue farming and ranching when a member of their family dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. Farm Bureau supports H.R.2370, the Preserving Family Farms Act of 2021, introduced by Rep. Jimmy Panetta (D-Calif.) and Jackie Walorski (R-Ind.). which would allow more farm or ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. This legislation updates IRS Code Section 2032A Special Use Valuation which allows farmers and ranchers to pay estate taxes on the value of farmland based on agricultural use, rather than its value if it sold for development. Under current law heirs can reduce the value of their property to reflect agricultural use by up to $1.19 million. H.R. 2370 would expand the amount of the reduction to $11.7 million thereby increasing the amount of agricultural land that can be protected by using special use valuation. In exchange for this alternative valuation, family members must continue the farming or ranch in business for 10 years or pay the complete tax amount. Farm Bureau is opposed to legislation that has been proposed in the House and Senate to end stepped-up basis and impose capital gains taxes at death. The bills treat property which is transferred by gift or at death as if were sold for its fair market value. This deemed sale causes a recognition of gain, the amount that the asset increased in value while owned by the decedent, that is subject to capital gains taxes. The legislation contains an exclusion for up to $1 million dollars of gain. This new capital gains tax at death would be applied on top of existing estate taxes - so that both the new capital gains tax and existing estate taxes would be collected when a farm or ranch owned dies. We oppose the proposed Senate bill is called the Sensible Taxation and Equity Promotion (STEP) Act, introduced by Sens. Chris Van Hollen (D-Md.), Cory Booker (D-N.J.), Bernie Sanders (I-Vt.), Sheldon Whitehouse (D-R.I.) and Elizabeth Warren (D-Mass.). The introduced House bill is H.R. 2286. A capital gain is a measure of an assets appreciation - the difference between the amount received when an asset is sold and the assets basis/purchase price. Typically, capital gains are taxed when an asset is sold. Under current law, however, transfers at death are not treated as a sale and the capital gain is not taxed. In addition, the basis of the property is stepped up to current value so that if the property were sold, capital gains taxes would only be paid on appreciation since the property was inherited. The current top capital gains tax rate is 20 percent. The value of family-owned farms and ranches are tied to illiquid assets such as land, buildings and equipment. With a majority, 82%, of farm assets in illiquid farm real estate, producers have few options when it comes to generating cash to pay taxes at death. When taxes at death on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports. The harm caused to agricultural businesses that comes from taxes imposed at death is multiplied when both estate taxes and capital gains taxes are imposed. Farm Bureau supports the continuation of Sec. 1031 Like Kind Exchanges. The rollback or elimination of this provision, which is popular with farmers and ranchers, is frequently mentioned as a possible pay-for for spending legislation. By using Section 1031, farmers and ranchers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers and ranchers might have to incur debt to continue their farm or ranch businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm or ranch. Farmers and ranchers frequently use like-kind exchanges to: Consolidate distant parcels of land; Obtain more productive land; Mitigate environmental impacts; Expand their operation to include young or beginning farmers; Upgrade structures like greenhouses or buildings used to house animals; or Move out of the path of urban development.

Client expense: $25,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Army, Dept of (Corps of Engineers), Environmental Protection Agency (EPA), HOUSE OF REPRESENTATIVES, SENATE, Transportation, Dept of (DOT), U.S. Trade Representative (USTR)

The Tax Cuts and Jobs Act (TCJA) temporarily doubled the estate tax exemption from $5.5 million to $11 million per person ($11.7 million indexed for 2021) through 2025. While the higher temporary exemption level protects the vast majority of the nations farms and ranches from the devastating consequences of estate taxes, farm and ranch families with businesses that top the exemption level are still plagued by estate taxes and related planning costs. Supported HR H.R. 2370, to allow more farm and ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. Farm and ranch families who want to continue farming and ranching when a family member dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. The Section 2032A valuation tool for estate tax purposes was designed to provide farm and ranch families protection from burdensome estate taxes when passing down the family business. The deduction carefully delineates between types of property eligible for the Special Use Valuation by targeting estate tax relief to farm and ranch operations where the family plans to continue farming and ranching. Though the Section 2032A reduction limit originally outlined in the law was updated to increase with inflation, it no longer provides the level of protection it was meant to offer farmers and ranchers. Expanding the provision would allow more farm and ranch land to qualify for Section 2032A Special Use Valuation, restoring it value as the helpful estate planning tool that was intended by Congress. Monitored the American Families Plan. Tthe American Families Plan, proposes tax cuts and programs including: Step Up in Basis Would be Repealed and Instead Capital Gains Taxes Would be Collected at Death Stepped up basis provides that capital gains taxes are not imposed when assets are transferred at death to an heir. Furthermore, tax law allows the heir to increase their basis in the assets to fair market value and only owe capital gains taxes on the amount the asset appreciates while they owed it and only if the asset is sold. The proposal would repeal step up in basis for gains over $1 million and collect capital gains at death unless assets are donated to charity. A proposed protection for family-owned farms and businesses is not explained. Capital Gains Tax Rates Will Almost Double for Some Farms and ranches pay capital gains taxes when they sell long-term capital assets like land and buildings. The tax is based on the amount that the asset has increased in value since purchase which can be significant for agriculture where assets are typically held for a long time. Capital gains tax rates would increase from 20% to 39.6% for households making over $1 million. Like Kind Exchange (1031) Are Repealed Like Kind Exchanges allow farmers and ranchers and other businesses to defer capital gains taxes when they sell an asset and replace it with a similar asset. Farmers and ranchers use like kind exchanges for capital assets like land and single-purpose structures. The proposal repeals like kind exchanges for exchanges for gains greater than $500,000. Individual Income Tax Rate Will Increase According to the Census of Agriculture, about 94% of farm and ranch businesses pay taxes using individual tax rates, as sole-proprietors or partnerships. The proposal increases the top individual income tax rate bracket from 37% to 39.6 %.

Client expense: $15,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Environmental Protection Agency (EPA), Federal Motor Carrier Safety Administration, HOUSE OF REPRESENTATIVES, SENATE, Transportation, Dept of (DOT)

H.R. 1712-S.617 To Amend the Internal Revenue Code of 1986 to repeal the estate tax H.R. 2370, Preserving Family Farms Act of 2021 H.R.1381/.480 Main Street Tax Certainty Act Sec. 1031 Like Kind Exchange S. 1249, PPP Flexibility for Farmers, Ranchers, and the Self-Employed Act H.R. 2370, Special Use Valuation S. 1166/H.R. 2558, Accelerate Long-term Investment Growth Now Act H.R. 4522, The Water and Agriculture Tax Reform

Client expense: $113,222 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Environmental Protection Agency (EPA), HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Transportation, Dept of (DOT), U.S. Trade Representative (USTR)

TFB lobbied for members to co-sponsor and support S. 617/H.R. 1712, Death Tax Repeal Act of 2021 by Reps. Jason Smith, Sanford Bishop and Sen. John Thune. TFB supports this legislation to provide tax relief for farmers and ranchers. TFB supported and advocated for passage of H.R. 2370, the Preserving Family Farm Act of 2021 by Reps. Jimmy Panetta and Jackie Walorski which would allow more farm and ranch land to be valued at is agricultural rather than inflated development value for estate tax purposes. TFB pushed to make tax reform provisions important to farmers and ranchers a permanent part of the tax code. Tax reform is a top priority for TFB and making provisions in the Tax Cuts and Jobs Act permanent is important to TFB members. TFB advocated against negative tax policies in the reconciliation package. Included was advocating against abolishing stepped-up basis, cutting the estate tax exemption rate, narrowing 199A business income deduction, raising the corporate tax rate, and instating a methane tax. TFB continues to fight against using tax increases on agriculture to pay for items in the reconciliation package.

Client expense: $240,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Kansas Farm Bureau opposes various bills and proposals that eliminate step up basis. We oppose legislation that creates a capital gains tax due at date of death. Kansas Farm Bureau supports a full repeal of the estate tax (commonly referred to as the "death tax" in farming and ranching). Short of a full repeal, keeping the current estate tax at the $11 million indexed for inflation will be key as farming and ranching families make decisions to transition the farm to future generations. Farm Bureau supports legislation, H.R. 2370, to allow more farm and ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. Farm and ranch families who want to continue farming and ranching when a member of their family dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. Farm Bureau supports H.R.2370, the Preserving Family Farms Act of 2021, introduced by Rep. Jimmy Panetta (D-Calif.) and Jackie Walorski (R-Ind.). which would allow more farm or ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. This legislation updates IRS Code Section 2032A Special Use Valuation which allows farmers and ranchers to pay estate taxes on the value of farmland based on agricultural use, rather than its value if it sold for development. Under current law heirs can reduce the value of their property to reflect agricultural use by up to $1.19 million. H.R. 2370 would expand the amount of the reduction to $11.7 million thereby increasing the amount of agricultural land that can be protected by using special use valuation. In exchange for this alternative valuation, family members must continue the farming or ranch in business for 10 years or pay the complete tax amount. Farm Bureau is opposed to legislation that has been proposed in the House and Senate to end stepped-up basis and impose capital gains taxes at death. The bills treat property which is transferred by gift or at death as if were sold for its fair market value. This deemed sale causes a recognition of gain, the amount that the asset increased in value while owned by the decedent, that is subject to capital gains taxes. The legislation contains an exclusion for up to $1 million dollars of gain. This new capital gains tax at death would be applied on top of existing estate taxes - so that both the new capital gains tax and existing estate taxes would be collected when a farm or ranch owned dies. We oppose the proposed Senate bill is called the Sensible Taxation and Equity Promotion (STEP) Act, introduced by Sens. Chris Van Hollen (D-Md.), Cory Booker (D-N.J.), Bernie Sanders (I-Vt.), Sheldon Whitehouse (D-R.I.) and Elizabeth Warren (D-Mass.). The introduced House bill is H.R. 2286. A capital gain is a measure of an assets appreciation - the difference between the amount received when an asset is sold and the assets basis/purchase price. Typically, capital gains are taxed when an asset is sold. Under current law, however, transfers at death are not treated as a sale and the capital gain is not taxed. In addition, the basis of the property is stepped up to current value so that if the property were sold, capital gains taxes would only be paid on appreciation since the property was inherited. The current top capital gains tax rate is 20 percent. The value of family-owned farms and ranches are tied to illiquid assets such as land, buildings and equipment. With a majority, 82%, of farm assets in illiquid farm real estate, producers have few options when it comes to generating cash to pay taxes at death. When taxes at death on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports. The harm caused to agricultural businesses that comes from taxes imposed at death is multiplied when both estate taxes and capital gains taxes are imposed. Farm Bureau supports the continuation of Sec. 1031 Like Kind Exchanges. The rollback or elimination of this provision, which is popular with farmers and ranchers, is frequently mentioned as a possible pay-for for spending legislation. By using Section 1031, farmers and ranchers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers and ranchers might have to incur debt to continue their farm or ranch businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm or ranch. Farmers and ranchers frequently use like-kind exchanges to: Consolidate distant parcels of land; Obtain more productive land; Mitigate environmental impacts; Expand their operation to include young or beginning farmers; Upgrade structures like greenhouses or buildings used to house animals; or Move out of the path of urban development.

Client expense: $70,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Army, Dept of (Corps of Engineers), Environmental Protection Agency (EPA), HOUSE OF REPRESENTATIVES, SENATE, Transportation, Dept of (DOT), U.S. Trade Representative (USTR)

Opposed the Sensible Taxation and Equity Promotion (STEP) Act; Support for H.R. 2370 Death Tax Repeal Act; Support the continuation of Sec. 1031 Like Kind Exchanges; Support H.R. 1381 and S. 480 Main Street Tax Certainty Act; Opposed the elimination of the 199A small business deduction; Opposed removal of capital gains tax step up in basis provisions.

Client expense: $70,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Army, Dept of (Corps of Engineers), Commodity Futures Trading Commission (CFTC), Environmental Protection Agency (EPA), Federal Energy Regulatory Commission (FERC), Federal Motor Carrier Safety Administration, Food & Drug Administration (FDA), HOUSE OF REPRESENTATIVES, Homeland Security, Dept of (DHS), Internal Revenue Service (IRS), Justice, Dept of (DOJ), Labor, Dept of (DOL), SENATE, Small Business Administration (SBA), State, Dept of (DOS), Transportation, Dept of (DOT), U.S. International Trade Commission (ITC), U.S. Trade Representative (USTR), White House Office

Support for S. 617 and H.R. 1712, the Death Tax Repeal Act, which would permanently repeal the Federal Estate Tax; H.R. 1381 and S. 480, the Main Street Tax Certainty Act, which would make the 199A business tax deduction permanent; H.R. 2370, the Preserving Family Farms Act of 2021, which would update IRS Code Section 2032A Special Use Valuation to allow more farmland to be valued at its agricultural value rather than its inflated development value for estate tax purposes; H.R. 2558 and S. 1166, the Accelerate Long-term Investment Growth Now Act (ALIGN Act), which would make full and immediate expensing provisions permanent; H.R. 2447, the Veterinary Medicine Loan Repayment Program Enhancement Act, which would reduce taxes for veterinary students who agree to serve in an underserved rural areas. Opposition to legislation and proposals (such as reconciliation proposals) that would repeal stepped-up basis, increase capital gains taxes, and/or impose capital gains tax at death, including H.R. 2286 (no title) which would amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes. General support for tax measures to help agriculture including, securing permanent estate tax and capital gains tax law that allows family-owned farms to transfer from one generation to another; making low-income tax rates and business deductions permanent to permit farmers to keep more of their earnings and invest in their businesses; locking in tax code provisions allowing farm operations to match expenses with income, helping manage the seasonal and cyclical nature of their businesses, valuation discounts; Section 1031 - like-kind exchanges; low corporate tax rates; and tax incentives for renewable energy resources.

Client expense: $10,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), HOUSE OF REPRESENTATIVES, SENATE

Farm Bureau supports H.R. 2370 - Preserving Family Farms Acts of 2021. Contacted representatives to cosponsor. Legislation will update IRS Code Section 2032A special use valuation which allows farmers and ranchers to pay estate taxes as on the value of farmland based on agricultural use, rather than its value if it sold for development.

Client expense: $15,861 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

The Tax Cuts and Jobs Act (TCJA) temporarily doubled the estate tax exemption from $5.5 million to $11 million per person ($11.7 million indexed for 2021) through 2025. While the higher temporary exemption level protects the vast majority of the nations farms and ranches from the devastating consequences of estate taxes, farm and ranch families with businesses that top the exemption level are still plagued by estate taxes and related planning costs. Supported HR H.R. 2370, to allow more farm and ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. Farm and ranch families who want to continue farming and ranching when a family member dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. The Section 2032A valuation tool for estate tax purposes was designed to provide farm and ranch families protection from burdensome estate taxes when passing down the family business. The deduction carefully delineates between types of property eligible for the Special Use Valuation by targeting estate tax relief to farm and ranch operations where the family plans to continue farming and ranching. Though the Section 2032A reduction limit originally outlined in the law was updated to increase with inflation, it no longer provides the level of protection it was meant to offer farmers and ranchers. Expanding the provision would allow more farm and ranch land to qualify for Section 2032A Special Use Valuation, restoring it value as the helpful estate planning tool that was intended by Congress. Monitored the American Families Plan. Tthe American Families Plan, proposes tax cuts and programs including: Step Up in Basis Would be Repealed and Instead Capital Gains Taxes Would be Collected at Death Stepped up basis provides that capital gains taxes are not imposed when assets are transferred at death to an heir. Furthermore, tax law allows the heir to increase their basis in the assets to fair market value and only owe capital gains taxes on the amount the asset appreciates while they owed it and only if the asset is sold. The proposal would repeal step up in basis for gains over $1 million and collect capital gains at death unless assets are donated to charity. A proposed protection for family-owned farms and businesses is not explained. Capital Gains Tax Rates Will Almost Double for Some Farms and ranches pay capital gains taxes when they sell long-term capital assets like land and buildings. The tax is based on the amount that the asset has increased in value since purchase which can be significant for agriculture where assets are typically held for a long time. Capital gains tax rates would increase from 20% to 39.6% for households making over $1 million. Like Kind Exchange (1031) Are Repealed Like Kind Exchanges allow farmers and ranchers and other businesses to defer capital gains taxes when they sell an asset and replace it with a similar asset. Farmers and ranchers use like kind exchanges for capital assets like land and single-purpose structures. The proposal repeals like kind exchanges for exchanges for gains greater than $500,000. Individual Income Tax Rate Will Increase According to the Census of Agriculture, about 94% of farm and ranch businesses pay taxes using individual tax rates, as sole-proprietors or partnerships. The proposal increases the top individual income tax rate bracket from 37% to 39.6 %.

Client expense: $15,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Environmental Protection Agency (EPA), Federal Motor Carrier Safety Administration, HOUSE OF REPRESENTATIVES, SENATE, Transportation, Dept of (DOT)

Opposed the Sensible Taxation and Equity Promotion (STEP) Act; Support for H.R. 2370 Death Tax Repeal Act; Support the continuation of Sec. 1031 Like Kind Exchanges; Support H.R. 1381 and S. 480 Main Street Tax Certainty Act.

Client expense: $30,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Army, Dept of (Corps of Engineers), Commodity Futures Trading Commission (CFTC), Environmental Protection Agency (EPA), Federal Energy Regulatory Commission (FERC), Federal Motor Carrier Safety Administration, Food & Drug Administration (FDA), HOUSE OF REPRESENTATIVES, Homeland Security, Dept of (DHS), Internal Revenue Service (IRS), Justice, Dept of (DOJ), Labor, Dept of (DOL), SENATE, Small Business Administration (SBA), State, Dept of (DOS), Transportation, Dept of (DOT), U.S. International Trade Commission (ITC), U.S. Trade Representative (USTR), White House Office

HR 2370 - Preserving Family Farms Act of 2021 S. 617/HR1712 - Death Tax Repeal Act of 2021 Stepped Up Basis and Like Kind Exchanges

Client expense: $120,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Council on Environmental Quality (CEQ), Environmental Protection Agency (EPA), Food & Drug Administration (FDA), HOUSE OF REPRESENTATIVES, Interior, Dept of (DOI), SENATE, U.S. Trade Representative (USTR), White House Office

S. 1251 Growing Climate Solutions Act H.R. 1603 Farm Workforce Modernization Act H.R. 2286 and the STEP Act in the Senate - ending stepped-up basis for capital gains HR. 2370 Ag-valuation of land H.R. 1712 and S. 617 - Death Tax Repeal Act

Client expense: $20,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Support S. 617 and H.R. 1712 to permanently repeal the estate tax Support H.R. 1381, the Main Street Tax Certainty Act Opposed all efforts to lower the exemption levels for estate taxes Opposed all efforts to eliminate stepped-up basis Opposed all efforts to impose capital gains taxes at death, or to raise the capital gains tax rate Opposed the elimination of Section 1031 Like-Kind Exchanges Supported H.R. 2370, the Preserving Family Farms Act of 2021 Supported H.R. 4210, to provide for a special rule for certain casualty losses of uncut timber in the tax code

Client expense: $700,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Environmental Protection Agency (EPA), HOUSE OF REPRESENTATIVES, Homeland Security, Dept of (DHS), Interior, Dept of (DOI), Justice, Dept of (DOJ), SENATE

TFB lobbied for members to co-sponsor and support S. 617/H.R. 1712, Death Tax Repeal Act of 2021 by Reps. Jason Smith, Sanford Bishop and Sen. John Thune. TFB supports this legislation to provide tax relief for farmers and ranchers. TFB supported and advocated for passage of H.R. 2370, the Preserving Family Farm Act of 2021 by Reps. Jimmy Panetta and Jackie Walorski which would allow more farm and ranch land to be valued at is agricultural rather than inflated development value for estate tax purposes. TFB supports and advocates for passage of S.480/H.R. 1381 the Main Street Tax Certainty Act. The legislation allows pass through businesses to take a deduction with 20 percent of their business income. The legislation is authored by Sen. Steve Daines and Reps. Jason Smith and Henry Cuellar. TFB pushed to make tax reform provisions important to farmers and ranchers a permanent part of the tax code. Tax reform is a top priority for TFB and making provisions in the Tax Cuts and Jobs Act permanent is important to TFB members.

Client expense: $210,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Support for S. 617 and H.R. 1712, the Death Tax Repeal Act, which would permanently repeal the Federal Estate Tax; H.R. 1381 and S. 480, the Main Street Tax Certainty Act, which would make the 199A business tax deduction permanent; H.R. 2370, the Preserving Family Farms Act of 2021, which would update IRS Code Section 2032A Special Use Valuation to allow more farmland to be valued at its agricultural value rather than its inflated development value for estate tax purposes; H.R. 2558 and S. 1166, the Accelerate Long-term Investment Growth Now Act (ALIGN Act), which would make full and immediate expensing provisions permanent; H.R. 2447, the Veterinary Medicine Loan Repayment Program Enhancement Act, which would reduce taxes for veterinary students who agree to serve in an underserved rural areas. Opposition to legislation and proposals that would repeal stepped-up basis, increase capital gains taxes, and/or impose capital gains tax at death, including H.R. 2286 (no title) which would amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes. General support for tax measures to help agriculture including, securing permanent estate tax and capital gains tax law that allows family-owned farms to transfer from one generation to another; making low-income tax rates and business deductions permanent to permit farmers to keep more of their earnings and invest in their businesses; locking in tax code provisions allowing farm operations to match expenses with income, helping manage the seasonal and cyclical nature of their businesses, valuation discounts;Section 1031 - like-kind exchanges; low corporate tax rates; and tax incentives for renewable energy resources.

Client expense: $10,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), HOUSE OF REPRESENTATIVES, Homeland Security, Dept of (DHS), Interior, Dept of (DOI), SENATE

H.R. 1712/S. 617 - Death Tax Repeal Act of 2021; H.R. 2370 - Preserving Family Farms Act of 2021; H.R. 2286/S. 994 - Sensible Taxation and Equity Promotion (STEP) Act: Stepped-Up Basis, Capital Gains Tax, Estate tax.

Client expense: $20,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Environmental Protection Agency (EPA), HOUSE OF REPRESENTATIVES, SENATE, Small Business Administration (SBA), U.S. Trade Representative (USTR)

Kansas Farm Bureau opposes various bills that eliminate step up basis. We oppose legislation that creates a capital gains tax due at date of death. Kansas Farm Bureau supports a full repeal of the estate tax (commonly referred to as the "death tax" in farming and ranching circles). Short of a full repeal, keeping the current estate tax at the $11 million indexed for inflation will be key as farming and ranching families make decisions to transition the farm to future generations. We support efforts to ensure the PPP is not taxed for income tax. Farm Bureau supports legislation, H.R. 2370, to allow more farm and ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. Farm and ranch families who want to continue farming and ranching when a family member dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. Farm and ranch families who want to continue farming and ranching when a member of their family dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. Farm Bureau supports H.R.2370, the Preserving Family Farms Act of 2021, introduced by Rep. Jimmy Panetta (D-Calif.) and Jackie Walorski (R-Ind.). which would allow more farm or ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. This legislation updates IRS Code Section 2032A Special Use Valuation which allows farmers and ranchers to pay estate taxes on the value of farmland based on agricultural use, rather than its value if it sold for development. Under current law heirs can reduce the value of their property to reflect agricultural use by up to $1.19 million. H.R. 2370 would expand the amount of the reduction to $11.7 million thereby increasing the amount of agricultural land that can be protected by using special use valuation. In exchange for this alternative valuation, family members must continue the farming or ranch in business for 10 years or pay the complete tax amount. Farm Bureau is opposed to legislation that has been proposed in the House and Senate to end stepped-up basis and impose capital gains taxes at death. The bills treat property which is transferred by gift or at death as if were sold for its fair market value. This deemed sale causes a recognition of gain, the amount that the asset increased in value while owned by the decedent, that is subject to capital gains taxes. The legislation contains an exclusion for up to $1 million dollars of gain. This new capital gains tax at death would be applied on top of existing estate taxes - so that both the new capital gains tax and existing estate taxes would be collected when a farm or ranch owned dies. We oppose the proposed Senate bill is called the Sensible Taxation and Equity Promotion (STEP) Act, introduced by Sens. Chris Van Hollen (D-Md.), Cory Booker (D-N.J.), Bernie Sanders (I-Vt.), Sheldon Whitehouse (D-R.I.) and Elizabeth Warren (D-Mass.). The introduced House bill is H.R. 2286. A capital gain is a measure of an assets appreciation - the difference between the amount received when an asset is sold and the assets basis/purchase price. Typically, capital gains are taxed when an asset is sold. Under current law, however, transfers at death are not treated as a sale and the capital gain is not taxed. In addition, the basis of the property is stepped up to current value so that if the property were sold, capital gains taxes would only be paid on appreciation since the property was inherited. The current top capital gains tax rate is 20 percent. The value of family-owned farms and ranches are tied to illiquid assets such as land, buildings and equipment. With a majority, 82%, of farm assets in illiquid farm real estate, producers have few options when it comes to generating cash to pay taxes at death. When taxes at death on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports. The harm caused to agricultural businesses that comes from taxes imposed at death is multiplied when both estate taxes and capital gains taxes are imposed. Farm Bureau supports the continuation of Sec. 1031 Like Kind Exchanges. The rollback or elimination of this provision, which is popular with farmers and ranchers, is frequently mentioned as a possible pay-for for spending legislation. By using Section 1031, farmers and ranchers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers and ranchers might have to incur debt to continue their farm or ranch businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm or ranch. Farmers and ranchers frequently use like-kind exchanges to: Consolidate distant parcels of land; Obtain more productive land; Mitigate environmental impacts; Expand their operation to include young or beginning farmers; Upgrade structures like greenhouses or buildings used to house animals; or Move out of the path of urban development.

Client expense: $20,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Army, Dept of (Corps of Engineers), Environmental Protection Agency (EPA), HOUSE OF REPRESENTATIVES, SENATE, Small Business Administration (SBA), Transportation, Dept of (DOT), U.S. Trade Representative (USTR)

H.R. 1712-S.617 To Amend the Internal Revenue Code of 1986 to repeal the estate tax H.R. 2370, Preserving Family Farms Act of 2021 H.R.1381/.480 Main Street Tax Certainty Act Sec. 1031 Like Kind Exchange S. 1249, PPP Flexibility for Farmers, Ranchers, and the Self-Employed Act H.R. 2370, Special Use Valuation S. 1166/H.R. 2558, Accelerate Long-term Investment Growth Now Act

Client expense: $111,611 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Environmental Protection Agency (EPA), HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Transportation, Dept of (DOT), U.S. Trade Representative (USTR)

HR 2370 - Preserving Family Farms Act of 2021 S. 617/HR1712 - Death Tax Repeal Act of 2021

Client expense: $100,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Council on Environmental Quality (CEQ), Environmental Protection Agency (EPA), Food & Drug Administration (FDA), HOUSE OF REPRESENTATIVES, Interior, Dept of (DOI), SENATE, Treasury, Dept of, U.S. Trade Representative (USTR), White House Office

H.R. 1712-S.617 To Amend the Internal Revenue Code of 1986 to repeal the estate tax H.R. 2370, Preserving Family Farms Act of 2021 H.R.1381/.480 Main Street Tax Certainty Act Sec. 1031 Like Kind Exchange

Client expense: $164,919 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Environmental Protection Agency (EPA), HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Transportation, Dept of (DOT), U.S. Trade Representative (USTR)

H.R. 1603 Farm Workers Modernization Act H.R. 2286 and the STEP Act in the Senate HR. 2370, Ag-valuation of land COVID relief - CFAP and PPP H,R, 1712 and S. 617 - Death Tax Repeal Act

Client expense: $30,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

H.R. 2286/S. 994 - Sensible Taxation and Equity Promotion (STEP) Act; H.R. 1712/S. 617 - Death Tax Repeal Act of 2021; H.R. 2370 - Preserving Family Farms Act of 2021.

Client expense: $30,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Commerce, Dept of (DOC), Environmental Protection Agency (EPA), Food & Drug Administration (FDA), HOUSE OF REPRESENTATIVES, Intl Trade Administration (ITA), Occupational Safety & Health Administration (OSHA), SENATE, Small Business Administration (SBA), U.S. Trade Representative (USTR)

Opposed the Sensible Taxation and Equity Promotion (STEP) Act; Support for H.R. 2370 Death Tax Repeal Act; Support the continuation of Sec. 1031 Like Kind Exchanges; Support H.R. 1381 and S. 480 Main Street Tax Certainty Act.

Client expense: $40,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Army, Dept of (Corps of Engineers), Commodity Futures Trading Commission (CFTC), Environmental Protection Agency (EPA), Federal Energy Regulatory Commission (FERC), Federal Motor Carrier Safety Administration, Food & Drug Administration (FDA), HOUSE OF REPRESENTATIVES, Homeland Security, Dept of (DHS), Internal Revenue Service (IRS), Labor, Dept of (DOL), SENATE, Small Business Administration (SBA), State, Dept of (DOS), Transportation, Dept of (DOT), U.S. International Trade Commission (ITC), U.S. Trade Representative (USTR), White House Office

Kansas Farm Bureau opposes various bills that eliminate step up basis. We oppose legislation that creates a capital gains tax at date of death. Kansas Farm Bureau supports a full repeal of the estate tax (commonly referred to as the "death tax" in farming and ranching circles). Short of a full repeal, keeping the current estate tax at the $11 million indexed for inflation will be key as farming and ranching families make decisions to transition the farm to future generations. We support efforts to ensure the PPP is not taxed for income tax. Farm Bureau supports legislation, H.R. 2370, to allow more farm and ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. Farm and ranch families who want to continue farming and ranching when a family member dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. Farm and ranch families who want to continue farming and ranching when a member of their family dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. Farm Bureau supports H.R.2370, the Preserving Family Farms Act of 2021, introduced by Rep. Jimmy Panetta (D-Calif.) and Jackie Walorski (R-Ind.). which would allow more farm or ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. This legislation updates IRS Code Section 2032A Special Use Valuation which allows farmers and ranchers to pay estate taxes on the value of farmland based on agricultural use, rather than its value if it sold for development. Under current law heirs can reduce the value of their property to reflect agricultural use by up to $1.19 million. H.R. 2370 would expand the amount of the reduction to $11.7 million thereby increasing the amount of agricultural land that can be protected by using special use valuation. In exchange for this alternative valuation, family members must continue the farming or ranch in business for 10 years or pay the complete tax amount. Farm Bureau is opposed to legislation that has been proposed in the House and Senate to end stepped-up basis and impose capital gains taxes at death. The bills treat property which is transferred by gift or at death as if were sold for its fair market value. This deemed sale causes a recognition of gain, the amount that the asset increased in value while owned by the decedent, that is subject to capital gains taxes. The legislation contains an exclusion for up to $1 million dollars of gain. This new capital gains tax at death would be applied on top of existing estate taxes - so that both the new capital gains tax and existing estate taxes would be collected when a farm or ranch owned dies. We oppose the proposed Senate bill is called the Sensible Taxation and Equity Promotion (STEP) Act, introduced by Sens. Chris Van Hollen (D-Md.), Cory Booker (D-N.J.), Bernie Sanders (I-Vt.), Sheldon Whitehouse (D-R.I.) and Elizabeth Warren (D-Mass.). The introduced House bill is H.R. 2286. A capital gain is a measure of an assets appreciation - the difference between the amount received when an asset is sold and the assets basis/purchase price. Typically, capital gains are taxed when an asset is sold. Under current law, however, transfers at death are not treated as a sale and the capital gain is not taxed. In addition, the basis of the property is stepped up to current value so that if the property were sold, capital gains taxes would only be paid on appreciation since the property was inherited. The current top capital gains tax rate is 20 percent. The value of family-owned farms and ranches are tied to illiquid assets such as land, buildings and equipment. With a majority, 82%, of farm assets in illiquid farm real estate, producers have few options when it comes to generating cash to pay taxes at death. When taxes at death on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports. The harm caused to agricultural businesses that comes from taxes imposed at death is multiplied when both estate taxes and capital gains taxes are imposed. Farm Bureau supports the continuation of Sec. 1031 Like Kind Exchanges. The rollback or elimination of this provision, which is popular with farmers and ranchers, is frequently mentioned as a possible pay-for for spending legislation. By using Section 1031, farmers and ranchers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers and ranchers might have to incur debt to continue their farm or ranch businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm or ranch. Farmers and ranchers frequently use like-kind exchanges to: Consolidate distant parcels of land; Obtain more productive land; Mitigate environmental impacts; Expand their operation to include young or beginning farmers; Upgrade structures like greenhouses or buildings used to house animals; or Move out of the path of urban development.

Client expense: $30,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Army, Dept of (Corps of Engineers), Environmental Protection Agency (EPA), HOUSE OF REPRESENTATIVES, SENATE, Small Business Administration (SBA), Transportation, Dept of (DOT), U.S. Trade Representative (USTR)