Chuck Hagel: “I rise today to discuss S. 1464, legislation I recently introduced with Senator Dorgan to provide a capital gains tax…”

“I rise today to discuss S. 1464, legislation I recently introduced with Senator Dorgan to provide a capital gains tax incentive to agricultural producers on the sale of their farm or ranch land. Agriculture is a vital engine that helps drive this Nation's economy. But this engine is only as powerful as the next generation of producers. The relentless financial problems facing the agricultural sector, particularly for beginning farmers, are daunting. It is often difficult for beginning farmers to compete for land with large capital-based operations. S. 1464 helps level the playing field by easing the transfer of land between the old and new generations of farmers and ranchers. S. 1464, the Beginning Farmers and Ranchers Tax Incentive Act, would provide all agricultural producers selling their property to a beginning farmer or rancher a 100-percent reduction of their capital gains tax rate. Producers selling their land to someone who pledges to keep the land in agricultural production would receive a 50-percent reduction of their capital gains taxes. All producers selling their land would receive an automatic 25-percent reduction of their capital gains taxes. These incentives would encourage repopulation of the rural landscape with a new generation of young, energetic agricultural producers.”