Tax bill may represent savings for poultrymen
WASHINGTON, D.D.-In
spite of the temptation for
Congress to offer sweeping
tax cuts the Administration
has taken the position that
such a move should not be
considered at this time, as it
would only serve to fuel
inflation. A bill has been
worked up, however, by
Congressmen Jones (D-
Oklahoma) and Conable (R-
New York) that would in
clude a tax cut for
businesses, including far
ming ousmesses, as a means
of fighting inflation.
The principle of the bill is
simple; if production of
External parasite survey and study to be done
UNIVERSITY PARK -
Dairy and beef producers in
18 Pennsylvania counties are
being asked to take part m a
survey to determine current
pesticide use patterns
against various pests, it was
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R 2 Manheim, PA 17545
PH: 717-665-4785
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goods and services is
stimulated by encouraging
capital investment, in
flationary pressure could be
eased. Although no one
would contend that egg
production needs to be
stimulated at this tune,
increased capital in
vestment in other segments
of the economy would be
beneficial to the public as a
whole, not to mention the
opportunities that would be
presented for diversified
investments by persons in
the egg industry.
The Jones-Conable bill
(HR 4646) seeks to ac
complish this by allowing
announced today by Dr.
Lowell L. Wilson, professor
of animal science at Penn
State.
The following is a list of
the eighteen counties which
will be asked to cooperate in
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Lancaster, PA 17601 Phone: 717-569-7063 |
businesses to write off the
cost of assets at a faster rate
than is currently allowed.
The bill would also simplify
the IRS’ asset depreciation
range (“ADR”) system,
narrowing the present 130
classes ox assets to just 3
classes, which would cover
all depreciable business
property.
For example, the bill
would allow bams and other
farm buildings to be written
off over a ten-year period,
and farm machinery,
equipment, gram bins and
fences, five years Under
present IRS rules for ADR
the beef and dairy pesticide
cattle-parasite study:
Mercer, Tioga,
Susquehanna, Indiana,
Centre, Schuylkill,
Crawford, Bradford, Butler,
Somerset, Washington,
Franklin, York, Berks,
Lancaster, Wayne, Mifflin,
Northampton.
The following counties will
participate in the beef
pesticide study: Erie,
Warren, Lycoming,
Lawrence, Dauphin, Nor
thumberland, Lehigh,
Greene, Westmoreland,
Adams, Chester.
Other counties may be
added at a later date
depreciation the minimum
periods are 20 and 8 years,
respectively, although most
farmers don’t use the
complex and rigid ADR
system.
Another feature of the bill
is its treatment of the in
vestment tax credit. While
the types of property eligible
would remam (lie same, thte
Jones-Conable bill would
increase the amount of
credit for some of that
property. The full 10% credit
wouid apply to property
depi eciated over five or
more years (currently it is
seven or more) and would
increase the credit for
Some of the major factors
to be evaluated will be
pesticides and formulations
used; frequency and rates of
application; method of
application; and cost of
materials and treatments.
Primary pests are flies, lice,
mange, ticks, and grubs.
The survey, conducted by
The Pennsylvania State
University’s College of
Agriculture, is designed to
determine the economic
unpact on the dairy and beef
industry if particular
pesticides were removed
from the market, Wilson
points out.
NOW
NOW
Lancaster Farming, Saturday, September 1,1979
property depreciated over
three to five years from 3.3%
to 6%. Another important
provision of the bill is the
elimination of salvage value,
which would allow farmers
to depreciate property down
to zero.
The bill is called the “Cost
Recovery Act of 1979”, and
has gained at least 140 co
sponsors in the House. The
provisions of the bill could
benefit the egg industry and
the American economy if it
is passed.
A NOTE ON IN
VESTMENT TAX
Current pesticide use and
management patterns by
beef and dairy producers
will be determined, along
with an evaluation of the
effectiveness of these in
secticides and practices m
achieving satisfactory
control.
“The Environmental
Protection Agency is con
sidering the removal of
restrictions of certain
pesticides,” Wilson em
phasizes. “Hearings on the
effectiveness of such in
secticides as dixnethoate,
lindane, toxaphene, car
baryl, ronnel, and
tncholorofon will be
scheduled in the future. The
survey will assist EPA in
making decisions on which
chemicals may be
eliminated.”
With registered
altenatives to these com-
CREDIT—The Revenue Act
of 1978 amended the Tax
Code by making single
purpose agricultural
structures, including poultry
and egg production
facilities, ehgible for the
investment tax credit. Prior
to this change, considerable
confusion had resulted as the
IRS sought to deny the credit
on such structures. The IRS
is now formally taking the
position, in private letter
rulings, that egg producing
facihties are eligible for the
investment tax credit. The
credit applies to structures
placed in service after
August 15,1971.
pounds, the cost-benefit ratio
associated with the loss of
these compounds must be
assessed. No previous
estimates of the frequency
and type of insecticide use on
beef and dairy cattle in
Pennsylvania have been
determined. This in
formation will assist EPA
with their evaluations of
various insecticides.
“Nationally, beef and
dairy producers lose ap
proximately 2.5 billion
dollars annually from in
sects such as ticks, hce, and
flies,” he points out. “It is
important to the economy to
keep these losses to a
minimum.”
Both the Pennsylvania
Dairymen’s Association and
Pennsylvania Cattlemen’s
Association have endorsed
the survey, and encourage
producers to reply to the
survey.
FISHER
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