Small Business bill called good for farmers

Farm and Ranch September 30, 2010 Earlier this week President Obama signed the Small Business and Credit Act of 2010, which American Farm Bureau Director of Public Policy Pat Wolff says will help farmers and ranchers by increasing small business expensing.

Wolff: “Small businesses will be able to write off $500,00 of expenses in both 2010 and 2011. Without this provision, the amount they would be able to write off would only be $250,000. So this will give them the money they need to buy equipment for their businesses.”

Wolff says another provision in the bill that extends bonus depreciation will help farmers recover the costs of capital expenditures.

Wolff: “For one year only in 2010 businesses both big and small will be able to write off half the costs of things they purchase for their businesses, so again they are going to get a break on their taxes so they will have money to buy equipment.”

The legislation also helps farmers with health insurance costs for this year.

Wolff: “Right now self-employed people can deduct their cost of their health insurance from their income tax but they can‘t take a deduction against their self-employment tax. The self-employment tax is 15.5% so that is a pretty hefty tax. If a farmer can take a deduction, that will give him more money to be able to afford health insurance he needs for himself and his family.”

Wolff says it would be much better if the provisions in the law were made permanent.

I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on Northwest Aginfo Net.