Chuck Grassley: “I introduce important tax legislation to improve our Nation's soil conservation and water quality. This measure will…”

“I introduce important tax legislation to improve our Nation's soil conservation and water quality. This measure will extend the conservation expense income tax deduction to farmers who improve soil and water conservation and need to rent that farmland to family members on a cash basis. This legislation builds upon an existing and successful income tax provision that applies to similar improvements on sharecrop rentals. I encourage my colleagues to cosponsor this legislation and thereby endorse an environmental tax policy that uniformly encourages conservation improvements on our Nation's farms. Across all of our Nation's farmland, 4 out of 5 acres rely on private landowners and tenants to care for the natural resources. Even though all farmers should be encouraged to become good stewards of the land, current tax policy does not provide incentives to encourage all private landowners and tenants to make conservation improvements that are consistent with good environmental policy. On the one hand, farm landlords operating on a sharecrop basis are rewarded with an income tax deduction for soil and water conservation improvements. However, cash rent landlords who make the same conservation improvements are denied a similar income tax deduction. My legislation will eliminate this inequality. Mr. President, 43 percent of our Nation's farmland is rented. Of that farmland, 35 percent is rented on a sharecrop basis, and 65 percent is rented on a cash basis.”