A top priority for the Missouri Cattlemen’s Association was legislation intended to reduce obstacles for beginning farmers and ranchers.
The bill authorizes an income tax exemption for a percentage of capital gains of up to $6 million per year received by a taxpayer who sells all or a portion of his or her farmland to a beginning farmer. The income tax exemption also applies to cash rent income of up to $25,000 per year received by a landowner who leases to a beginning farmer or rancher. Additionally, this bill adds to the definition of "business income," for the purposes of deducting a percentage from a taxpayer’s federal adjusted gross income the total combined profit reported to the Internal Revenue Service on each Schedule F and each Form 4835 filed. The bill also requires the Department of Revenue to report annually to the House of Representative and the Senate regarding the cost and benefits of this initiative.
