The American Soybean Association (ASA) today applauded Members of the Senate and House conference committee, which approved a tax-cut package on August 3 that includes ASA-supported provisions to assist farmers. ASA is urging Congress to resolve differences over a tax-cut plan that includes the pro-agriculture provisions before adjourning this fall.

"Soybean growers have long promoted these provisions to give much-needed tax relief to farmers and other business owners," said ASA President Marc Curtis of Leland, Miss. "We hope the President, the Senate and the House will recognize their importance and give them rapid approval."

The bill includes:

• Farm and Ranch Risk Management (FARRM) accounts, (which has been renamed as FFARRM accounts to now include fish). The provision allows agricultural producers to defer taxes on part of their income for up to five years and place up to 20 percent of net income from sales of agricultural products in interest-bearing accounts each year, with a limit of 100 percent of average annual income. Funds could remain in FFARRM accounts until the sixth year after deposit. ASA has actively supported this risk management tool sponsored by Representatives Kenny Hulshof (R-MO) and Karen Thurman (D-FL) in the House, and Senators Charles Grassley (R-IA) and Max Baucus (D-MT) in the Senate.
• Estate and gift taxes would be eliminated by 2009.
• Effective January 1, 1999, the capital gains tax rate would be reduced for individuals from 20 percent to 18 percent.
• Farmers and other self-employed individuals would be allowed to fully deduct health insurance and medical expenses.
• All marginal personal tax brackets would be lowered by 1 percent (setting levels at 14%, 27%, 30%, 35% and 38.6%).