PHOENIX — Family farms and ranches have been handed down for generations.
It has always been a struggle for survival and the so-called fiscal cliff has been added to the mix. If Congress and the president fail to come up with a budget solution, huge tax increases and spending cuts automatically kick in Jan. 2.
Taxes on inheritance will jump from 35 percent to 55 percent, and the exemption will drop from $5 million to $1 million, bad news for younger farmers and ranchers when their parents pass away and leave them the farm.
“Anything over $1 million will be taxed at 55 percent,” said Jim Klinker with the Arizona Farm Bureau. “With land values the way they are, you can go over a million dollars pretty quickly without a very big farm.”
Klinker said young farmers trying to hold onto the farm for the next generation would probably have to sell off some acreage to pay the estate tax.
“Young farmers do not have the savings or afford the life insurance premiums to cover the costs of an elderly parent and this puts the whole farm in jeopardy,” he said.
There are almost 4,000 cattle ranches in Arizona that raise a total of 900,000 head of cattle each year. Many of the ranchers are third and fourth generation Arizonans.
Agriculture and ranching help make up Arizona’s second largest industry and pumps $10.3 billion into the economy annually.
- Stretches and exercises for carpal tunnel syndrome
- The best Major League ballparks have their own personality
- Comparing the best regular seasons: The '96 Bulls and '16 Warriors
- 3 Arizona road trips and the vehicles to get you there
- Colon cancer is preventable. Check these signs and symptoms to stay healthy.
- 6 of the biggest skin cancer myths
- Affordable small home makeover ideas
- Locals helping locals: 6 success stories you need to know about
- Sunscreen facts that could save your life
- 6 energy saving hacks for your home
- 5 tips for choosing a company to end your timeshare
- Overlooked water tips to save you money
- 5 of the most adored gentlemen in professional sports today
- The real danger of sitting at your desk
- Most surprising NBA playoff performances of the last 40 years
- 11 classic baseball movies you must see again
- Finally getting rid of fat: 3 methods that actually work
- 4 reasons cancer survivors should focus on food
- 5 spring cleaning spots everyone forgets
- 5 reasons to look forward to watching the D-backs this season
- Common virus attributed to spike in head and neck cancers
- 5 signs it’s time to end your timeshare ownership
- 3 most overlooked ways to keep your home healthy
- 6 ways the air in your home could be making you sick
- CrossFit dangers: 5 common injuries and how to deal with them
- Today's radiation treatments offer better success, fewer side effects
- Tips to make watching TV on the patio even better
- What really happens when you donate to a community college?
- Sun and skin cancer: Separating fact from fiction
- 5 critical lifestyle changes for a healthy colon