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Farmers Want Congress To Pass Permanent Tax Extensions

By Barbara Brosher

Posted January 5, 2015

Indiana farmers want Congress to pass more permanent tax extensions in 2015.

The provisions make it more affordable for farmers to purchase expensive machinery necessary for their operations, like combines and planters.

Congress passed a $42 billion retroactive extension in December, but it only applies to the 2014 tax year.

Indiana Farm Bureau National Policy Advisor Kyle Cline says they were hoping for at least a two-year extension, which would allow farmers to better plan for upcoming expenses.

"In the last year, we have seen a significant drop on the world commodity markets due to various reasons and that's eroding farm incomes," Cline says. "Without the certainty in the tax code, there might be certain investments or business decisions that farmers hold off on because their margins are so thin right now."

Martinsville farmer Norman Voyles Jr. says that's something he'll have to consider as he decides whether to purchase new equipment in 2015.

The money he saves with the tax extensions frees up cash for items like fertilizer and feed.

"By being able to defer some of the taxes on that amount of money, it levels out the playing field so actually we can use the money for those regular annual inputs to our operation," Voyles says.

Voyles and other farmers are asking lawmakers to make the provisions a permanent part of the tax code to ensure some stability.

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