Farm equipment depreciation bill introduced in House, Senate
October 17, 2011
Minnesota Democratic Senator Amy Klobuchar and California Republican Representative Wally Herger recently introduced S. 700 and HR. 1747 with the aim of permanently decreasing the depreciation
rates of agricultural equipment by two to five years.
The Association of Equipment Manufacturers notes that the adjustment would bring the depreciation schedules
in line with those of construction equipment, which would significantly benefit the agricultural community. Specifically, the American Farm Bureau Federation estimates that $850 million would be added to farm income annually within the five-year depreciation schedule
This would encourage farmers and ranchers to purchase new equipment, thereby stimulating the economy. In addition to the economic benefits, enabling producers to acquire more modern machinery would also be favorable in terms of reduced environmental impact, as well as safety.
Earlier this year, AFBF president Bob Stallman wrote to Klobuchar, Herger and other sponsors of the bill to express his support of it.
"Agriculture is an equipment-intensive industry with nearly $130 billion of stock equipment in use during any given year," he wrote. "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."