American Soybean Association economist Scott Gert says the agriculture industry can’t be looked at the same way as others when it comes to capital gains tax.
Gerlt tells Brownfield agriculture is about three times more asset driven then the average company listed on the S&P 500.
“What that means is agriculture needs about three times the assets that stock market companies [need] to generate the same returns,” he said. “And capital gains is based off of that inflation, that’s pretty sizable.”
He says outside of a few coastal states, the Midwest would be impacted the most by removing the stepped-up basis with Iowa and Illinois leading the way at over $1,000 in capital gains tax per acre.
