01/30/08 Agriculture and an economic stimulus package

Farm and Ranch January 30, 2008 The economic stimulus package Congress is working on should benefit American farmers and ranchers. American Farm Bureau Federation tax specialist Pat Wolff says the House passed package includes tax incentives for small businesses. Wolff: "Businesses are in a tough way because of rising energy prices and farmers are no different. As farmers get ready to plant their crops, the amount they have to pay for fuel and fertilizer is higher than it has ever been. If Congress passes this enhanced small business expensing it will be a tremendous help. It will help farmer afford the things they need to grow their crops this summer." Wolff says the House plan would double the current expensing deduction for this year. Wolff: "Small business expensing would help a farmer in this way: Let's say he bought a combine. Under current law he could deduce $125,000 of those expenses this year. If the stimulus package were passed as it is written in the House he could deduct $250,000. That would mean he could pay less taxes and he would have more cash in his pocket to help cover expenses this year." Wolff says it is likely the Senate will also include this provision but the concern is what else will they include. Wolff: "If the Senate version is drastically different from the House version it means a negotiation will start between the House and the Senate and who knows how long it would take for them to work out the differences." The Senate hopes to pass its economic stimulus package by this weekend. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.