Home / Knowledge / News / Textiles / Reinstatement of estate tax will harm cotton producers
Reinstatement of estate tax will harm cotton producers
01
Dec '10
If estate taxes are allowed to be reinstated at the beginning of 2011 with only a $1 million exemption and top rate of 55 percent, U.S. agriculture will be affected very negatively. The U.S. cotton industry will be particularly hard hit as family-owned cotton farms and associated small businesses, including gins, warehouses, processors and merchandizing firms, will be affected.

That was the message delivered during a news conference at the National Press Club by Taylor Slade, a Williamston, NC, cotton and peanut producer. Slade is a National Cotton Council delegate and a past North Carolina Cotton Producers Association president.

Slade, whose family's operation has been in business since 1722, emphasized that farming is a land-based, capital intensive industry with few options for paying estate taxes when they come due. He also explained that not just farms but much of cotton's infrastructure, which creates key employment in rural areas, also will be hard-hit.

“The 2011 change to the estate tax law does a disservice to U.S. agriculture – an industry that consistently provides a safe, abundant and affordable supply of food and fiber to this nation and the world,” Slade said. “The current state of the economy, coupled with the uncertain nature of estate tax liabilities, just makes it difficult for family-owned farms and ranches – which face the same economic challenges as other small businesses -- to make sound business decisions.”

As much as 80 percent of cotton production occurs on farms that would be affected by an estate tax with a $1 million exemption. In the Mississippi Delta and Southeastern regions, for example, average cropland values equate to just 333 to 500 acres necessary to reach $1 million in assets, and this simple approach overstates the number of acres because it does not account for the value of machinery/buildings.

Slade stated that while the National Cotton Council supports the complete elimination of estate taxes, the short term may require a compromise that would be less draconian than the reinstatement of the $1 million exemption. An acceptable intermediate outcome would include raising the exemption to no less than $5 million per person and reducing the top rate to no more than 35 percent. He said it also is imperative that the exemption be indexed to inflation, provide for spousal transfers and include the stepped-up basis.

The Cotton Council believes this formula “will provide permanent and meaningful estate tax relief – a reform that will strengthen the business climate for family farmers and ranchers while ensuring agricultural businesses are passed down to future generations,” Slade said.

Other organizations that participated in the news conference included: the American Farm Bureau Federation, the American Soybean Association, the National Association of Wheat Growers, the National Cattlemen's Beef Association, the National Corn Growers Association, the National Farmers Union, the National Milk Producers Federation, the National Pork Producers Council, and the Public Lands Council.

National Cotton Council of America


Must ReadView All

Apparel/Garments | On 28th Jul 2017

DuPont launches new stretchable electronic inks, films

DuPont Advanced Materials has announced availability of its newest...

Textiles | On 28th Jul 2017

Clariant, Huntsman present update on planned merger

Clariant and Huntsman Corporation have presented a first update on...

Apparel/Garments | On 28th Jul 2017

Columbia Sportswear posts Q2 2017 net sales of $398.9 mn

Columbia Sportswear Company has recorded net sales of $398.9 million...

Interviews View All

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
61.1%
No
22.2%
Skip
16.7%

Total Votes: 18

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
33.3%
No
44.4%
Skip
22.2%

Total Votes: 18

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.3%
No
5.6%
Skip
11.1%

Total Votes: 18

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
50.0%
No
11.1%
Skip
38.9%

Total Votes: 18


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X