Jamie) We’re back with this week’s Kansas Farm Bureau Update.
(Announcer) The American Farm Bureau Federation says farmers need a tax code that will help them be profitable. Micheal Clements has more. (Clements) American Farm Bureau’s tax specialist Pat Wolff says farmers need Congress to support cash accounting and the ability to deduct expenses when you make them. While tax reform is not likely during the election year, she says tax reform will top the list for Congress next year. (Wolff) Work is going on behind the scenes to write a tax bill that will be front and center when we have a new president in January. (Clements) She says the current burden of a down farm economy and lower commodity prices further drive the need for tax reforms. Despite the uncertainties and lower prices, farmers must still spend the money needed to produce a crop. (Wolff) One thing that continues are expenses, and what the tax code needs to do is to allow farmers to match up their income and expenses on their tax returns. The result of that will be farmers and ranchers will have a lower tax return. (Clements) With lawmakers on the campaign trail this summer, she says farmers and ranchers need to tell legislators the needs of agriculture within the tax code. (Wolff) What’s the worst thing that can happen is that our elected officials don’t hear from farmers about the taxes they pay. What will happen then is that somebody else will be deciding whether tax rates go up and down, whether farmers will be able to take deductions, what happens with estate taxes. So farmers need to speak up when they see their elected officials and tell them that what’s in the tax code matters. (Clements) Micheal Clements, Washington.
(Jamie) Stay with us after the break for Plain Talk.