Family Farmer and Rancher Tax Fairness Act to Support Distressed Farmers

Many economically distressed borrowers who received debt relief passed in the Inflation Reduction Act are now being faced with a burdensome tax liability on IRA assistance.

On December 8th Senators Cory Booker (D-N.J.), Debbie Stabenow (D-MI), Raphael Warnock (D-GA), and Tina Smith (D-MN), all members of the Senate Committee on Agriculture, Nutrition, and Forestry, introduced the Family Farmer and Rancher Tax Fairness Act, a new bill that would remove the tax liability for distressed farmers for the assistance provided in Sections 22006 and 22007 of the Inflation Reduction Act (IRA).

“The critical financial assistance we fought to include in the Inflation Reduction Act is a lifeline for distressed farmers around the country,” said Senator Booker. “But now those same farmers are facing a burdensome tax liability.

"Congress needs to quickly cut these taxes to ensure that farmers who received assistance stay on the path back to financial stability.” 

With enough support, this provision could be included in the year-end budget bill which Congress is trying to pass by December 16.

Read the Family Farmer and Rancher Tax Fairness Act here.  

The Federation of Southern Cooperatives/Land Assistance Fund supports the Family Farmer and Rancher Tax Fairness Act because if passed the legislation would make IRA debt relief payments non-taxable. The bill also covers payments to farmers who have experienced discrimination in FSA lending programs.

Our support of this critical legislation continues the Federation's leadership, solidarity, support, and advocacy on behalf of the 3,100 Black farmers and the 17,000 farmers of color promised debt relief.