YOUR TEXAS AGRICULTURE MINUTE

Tax provisions help farmers, ranchers

By Gary Joiner

Let’s talk taxes.

Probably not exactly what you had in mind. But Texas farmers and ranchers will talk about them. There’s good news to share.

The provisions are Section 179 small business expensing and bonus depreciation. These treatments are now permanent, thanks to Congress.

Agriculture requires large investments in machinery and equipment. Things like tractors, combines, planters and plows. Farmers and ranchers benefit greatly when they can write off these business expenses in the year the purchases are made.

It increases cash flow and reduces borrowing.

Agriculture is marked by uncertainty. Farmers and ranchers need a federal tax code that allows them to plan ahead and invest in the future of their businesses. Predictability had been lacking. Not anymore.

Making long-term business decisions that can grow and expand your operations is a very good thing. The difficult business of running a farm is now more manageable.

The preceding commentary is brought to you by Texas Farm Bureau, the “Voice of Texas Agriculture.” Called “Your Texas Agriculture Minute,” TFB will issue thought-provoking editorials each week—via print and audio—to spark understanding of agriculture in the Lone Star State and its impact on each and every Texan.

You may read this week’s editorial above or listen to the audio version.

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