MO Farm Bureau asks IRS to help farmers in drought
Missouri Farm Bureau is asking the Internal Revenue Service to allow livestock producers to defer taxes on the cattle sold due to the drought.
The U.S. Drought Monitor says 94% of Missouri is dry with about 19% of the state in exceptional drought.
President Garrett Hawkins says despite the recent rains, forage supplies are short. He says in the past, the IRS has extended the tax provisions, but that hasn’t happened yet this year.
“The IRS has used its authority to allow a longer period for farmers and ranchers who have been impacted by the drought and forced to sell livestock to replace said livestock.”
Hawkins says the IRS typically allows a 2-year replacement period for cattle, but the IRS can allow up to a 4-year replacement period and either would be appreciated.
He says Farm Bureau would like the benefit to be retroactive to September 2022.
“We’re just asking them to get current and to recognize the drought that has truly has gripped us since last year and has become even more persistent this summer.”
He says Missouri’s Congressional delegation is also making the request to the IRS and Hawkins is hopeful the update will be granted quickly.