Fiscal cliff worries farmers
With the fiscal cliff looming many farmers and ranchers are now bracing for tax hikes, specifically inheritance tax.
Currently there is a $5 million exemption on the inheritance tax which covers most farms and ranches, but if the cuts were to expire the exemption would drop to just $1 million and then the tax rates bump up to 55 percent.
"With current land values, what this will mean is that any young farmers or rancher that hopes to continue to farm or ranch will probably have to sell land,” said Sherry Vinton, rancher.
"It would be pretty bad for our farm because we would be looking at having the possibility of selling off productive assets, selling off ground, doing some of that stuff just to foot a tax bill,” said Zach Hunnicutt, family farmer.
The president and Congress have just 26 days to compromise on their own plan before automatic spending cuts and tax hikes take place.