[Congressional Record Volume 143, Number 19 (Thursday, February 13, 1997)]
[Extensions of Remarks]
[Pages E276-E277]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              INVOLUNTARY LIVESTOCK CONVERSION RELIEF ACT

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                           HON. JOHN R. THUNE

                            of south dakota

                    in the house of representatives

                      Thursday, February 13, 1997

  Mr. THUNE. Mr. Speaker, today I am introducing legislation to give 
farmers and ranchers tax relief when they need it most. I thank my 
colleagues, Representatives Smith, Latham, Hill, Barrett, Emerson, and 
Pomeroy for joining me in this effort.
  As you may know, extremely harsh storms have pounded the upper Great 
Plains this winter. As a result, I have been flooded with calls from 
South Dakotans who want to know what we can do in Washington to help 
them deal with this horrid winter. The agricultural producers--farmers 
and ranchers--have been hit the hardest of all. To date, cattle losses 
are estimated to exceed 100,000 head. With the prospect of spring 
flooding eminent, further losses seem certain. While producers in the 
Midwest qualify for some assistance, additional relief is still needed.
  The tremendous amount of snow has blocked access to feed and has 
limited space in livestock yards. As a result, some producers would 
like to sell some of their stock now. The result would be a stiff tax 
liability at a time when they can not afford it.
  The Involuntary Livestock Conversion Relief Act will allow income 
derived from the sale of livestock to be deferred up to 1 year. The 
bill will also allow a producer to sell livestock and, within 2 years, 
repurchase similar livestock without realizing a gain as a result of 
the sale. Livestock producers must show that such a sale is not a usual 
business practice but is a result of floods or blizzards. The 
conditions have to be severe enough to trigger Federal assistance in 
relief of that condition.
  Under current tax law a producer can do this only in drought 
conditions. This is why I propose changing the wording of the code to 
include ``flood or other weather-related conditions.''
  I believe it is time we give ranchers some options in how they do 
business during a time of need. This bill represents a common-sense 
approach to lending our dedicated livestock producers a hand when they 
need it. Instead of a cash payment, the Federal Government

[[Page E277]]

can provide a capital gains tax break. I realize this legislation may 
not help all in need, but it is an important piece of the relief 
puzzle.
  I hope my colleagues will join me in their support of this bill. If 
they do, they will be joining several others concerned with the 
economic viability of the Nation's heartland.

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