During this holiday season American Farm Bureau Federation President, Bob Stallman says that it is time for celebration and giving and receiving.
However, in the political arena though he says it’s typically a down time, new Congressional members have just been elected and the previous Congress is in lame duck mode.
Without some important decisions before January 1st, Stallman says the U.S. economy will drop off the fiscal cliff. Congress has to cut $1.2-trillion over the next 10-years from the deficit and without any action by the end of the year, automatic cuts will affect more than a thousand federal programs, many of which impact agriculture.
The fiscal cliff also will impact tax breaks, including the estate tax; which will revert from a $5 million exemption with a 35% tax rate to a $1 million exemption with a top tax rate of 55%. This could impact one of every 10 farms, making it impossible for young farmers to carry on their family operations.