Rehberg Effort Secures More Help for Drought-Stricken Producers
WASHINGTON, DC - Montana’s Congressman, Denny Rehberg, voted for and the U.S. House of Representatives approved legislation that includes an additional two-year tax delay on livestock sales in drought areas. Rehberg, with the support of 27 of his colleagues, had urged House Ways and Means Chairman Bill Thomas to include the provision to the House version of the American Jobs Creation Act of 2004 to “help preserve jobs in the agricultural community.” The House okayed the measure, 251-178, Thursday.
“In drought-stricken areas like Montana, producers struggling to make ends meet really need this additional two-year cushion to stay in business,” Rehberg explained. “The tax delay was in the Senate version, and we urged the Chairman of the House Ways and Means Committee to include it in our bill, which he did.”
Twenty-seven other House Members added their signatures to Rehberg’s May 18 letter, asking Chairman Thomas to support an additional two-year delay for the inclusion of income on the sale of excess cattle in a drought designated area. The additional two-year delay would be applied only if a producer uses this exemption to reinvest these monies into future production.
“In many agricultural communities, the loss of even one farm or ranch can be devastating,” Rehberg stated in his letter to Thomas, adding losses are “multiplied throughout the community, impacting local grocers, implement dealers, feed sellers, fuel suppliers, fertilizer sales, and the vitality of the community as a whole.”
“Providing an incentive for ranchers to eventually reinvest the proceeds of these sales will maintain jobs in the community and local economic development,” Rehberg wrote. “Everyone in the industry supports the plan, because it gives producers the relief they need to hold on to their businesses, allowing them to concentrate on managing their herds.”
The American Jobs Creation Act, which now heads to a joint House and Senate panel to work out differences in the two bills, ends certain European Union sanctions against U.S. agricultural products, and would also eliminate Alternative Minimum Taxes for certain farmers.