[Congressional Record (Bound Edition), Volume 155 (2009), Part 12]
[Extensions of Remarks]
[Page 16785]
[From the U.S. Government Publishing Office, www.gpo.gov]




  INTRODUCING LEGISLATION PROVIDING STRONG LAND PROTECTION INCENTIVES

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                          HON. EARL BLUMENAUER

                               of oregon

                    in the house of representatives

                        Thursday, June 25, 2009

  Mr. BLUMENAUER. Madam Speaker, more than 2 million farms make up 
America's rural landscape. Ninety-eight percent of these farms are 
owned by individuals, family partnerships, and family corporations, 
producing about 86 percent of U.S. agricultural products sold.
  The most significant asset held by many of these farmers is their 
land. In some cases, when the owner of the farm dies, surviving family 
members must sell portions of the farm to cover their estate tax costs. 
Today I am introducing legislation to help ensure that families are not 
forced to sell the farm and that their land resources are available for 
agricultural and conservation use by future generations.
  In 1997, in order to encourage the conservation of sensitive lands 
and farms, Congress enacted an estate tax exclusion for land placed 
under a conservation easement. 26 USC 2031(c). That law caps the 
exclusion at $500,000. Given the significant rise in land values over 
the past decade, especially for agricultural regions near urbanizing 
areas, that cap is now too low to provide a meaningful incentive to 
many farmers.
  My legislation updates and increases the exclusion to $5 million. By 
increasing the current cap on the property value that can be excluded 
from an estate when the land is protected by a conservation easement 
from $500,000 to $5,000,000 (and by raising the exclusion percentage 
from 40 percent to 50 percent, this bill will encourage significant 
additional protection of farmland across our country.
  The voluntary placement of a conservation easement on private land is 
a very effective and successful tool for protecting and conserving our 
nation's open spaces and sensitive lands. As the American Farmland 
Trust has written, ``We strongly believe that the proper incentives are 
the most effective way of encouraging landowners to conserve land.'' 
This legislation provides strong land protection incentives and will 
result in the preservation of America's vital farm and ranchlands.

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