AFBF Backs Permanent Five-Year Depreciation for Equipment
Washington-The American Farm Bureau Federation supports legislation introduced in the House and Senate to reinstate and make permanent five-year depreciation for farm business machinery and equipment.
In a letter sent Friday to members of the House, AFBF said it supports H.R. 1747 introduced by Reps. Wally Herger (R-Calif.) and Ron Kind (D-Wis.). In a Friday letter to members of the Senate, AFBF said it backs the companion bill, S. 700, introduced by Sen. Amy Klobuchar (D- Minn.), along with Sens. Jerry Moran (R-Kan.), Debbie Stabenow (D- Mich.) and Pat Roberts (R- Kan.).
“Agriculture is an equipment-intensive industry with nearly $130 billion of stock equipment in use during any given year,” wrote AFBF President Bob Stallman in both letters. “The share of farm assets attributable to machinery and farm-use motor vehicles makes up 6 percent of total assets owned by farmers and ranchers.”
USDA Farm Service Agency surveys show that, on average, farmers and ranchers finance business equipment and machinery for five years. Aligning depreciation and debt service increases farm income by $850 million in a typical year, helps farmers and ranchers cover debt service and facilitates the replacement of worn-out machinery.