Industry At A Glance: Cropland & Pasture Values

Nevil Speer

December 9, 2012

1 Min Read
Industry At A Glance: Cropland & Pasture Values

There’s one issue that is hugely important to the future of production agriculture – estate taxation, commonly referred to as the death tax. If Congress doesn’t act, the tax will revert to a $1-million exemption level and subsequently rise to the 55% rate on anything above that level. Clearly, this will prove highly detrimental to the production sector (not to mention, despite favorable rhetoric, being the single most important blow to the advancement of vibrant, family businesses all across America).

annual cropland and pasture values

Given current land values, it certainly doesn’t take very large holdings for any farm and/or ranch to surpass $1 million worth of assets. Congress needs to do several things:

  • Extend the current exemption immediately to ensure seamless transfer of assets.

  • Establish moving exemptions over time adjusted for rising land values in agriculture.

This is especially true given that government-induced ethanol mandates have been a primary driver of higher land values in recent years.

Congress needs to hear from you immediately! What impact would Congressional failure to extend the exemption have upon your business operations and estate planning?  

Leave your thoughts in the comments section below.   

About the Author(s)

Nevil Speer

Nevil Speer serves as an industry consultant and is based in Bowling Green, KY.

Nevil Speer has extensive experience and involvement with the livestock and food industry including various service and consultation projects spanning such issues as market competition, business and economic implications of agroterrorism, animal identification, assessment of price risk and market volatility on the producer segment, and usage of antibiotics in animal agriculture.
Dr. Speer writes about many aspects regarding agriculture and the food industry with regular contribution to BEEF and Feedstuffs.  He’s also written several influential industry white papers dealing with issues such as changing business dynamics in the beef complex, producer decision-making, and country-of-origin labeling.
He serves as a member of the Board of Directors for the National Institute for Animal Agriculture.
Dr. Speer holds both a PhD in Animal Science and a Master’s degree in Business Administration.

Contact him at [email protected].

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