U.S. Senator Cindy Hyde-Smith has introduced the HERITAGE Act, aimed at aiding family farms and ranches in avoiding the sale of productive farmland to pay federal estate taxes. The bill seeks to adjust the Internal Revenue Code (IRC) that currently compels many families to sell their land due to estate tax liabilities.
Hyde-Smith emphasized the need for change, stating, “Tax concessions set almost 50 years ago to help sustain family farms don’t work in today’s world. It’s heartbreaking to see a grieving family forced to sell off assets, portions of their farmland, or lose their farm entirely to cover federal estate taxes.” She further noted the economic impact on rural communities from losing working farm and range lands.
The legislation proposes amending IRC Section 2032A by increasing the special-use valuation cap for farming purposes from $750,000 to $15 million. This adjustment is intended to prevent heirs from having to choose between selling parts of their land or incurring significant debt due to estate tax obligations.
Mississippi has seen a decline in farms since 2017, with over 11 percent lost and farmland reduced by approximately 200,000 acres. The state hosts nearly 35,000 farms contributing significantly to its $7.5 billion agricultural economy. The HERITAGE Act aims to support these operations by alleviating financial burdens associated with estate taxes.
In February, Hyde-Smith sought testimony on this issue during a Senate Agriculture Committee hearing and renewed her support for repealing the federal estate tax permanently.
The bill has garnered support from various organizations including the Mississippi Farm Bureau Federation and National Cattlemen’s Beef Association (NCBA). Mississippi Farm Bureau Federation President Mike McCormick shared his personal experience with inheritance tax impacts and praised Hyde-Smith’s efforts: “Thank you, Senator Hyde-Smith for your steadfast support for the future of the family farm.”
Jeff Magee of NCBA expressed concerns about how current laws affect legacy preservation: “To make sure the next generation of family farmers and ranchers can not only stay in business but thrive, we need Congress to eliminate the threat of the Death Tax.”
Casey Anderson from Mississippi Forestry Association highlighted generational farms’ importance: “Generational family farms provide employment and stability…and are the backbone of rural economies across our state.”
