The agricultural industry is closely watching movement on tax reform, with the House passing its version of the legislation and the Senate Finance Committee advancing an alternative package. South Dakota Senator John Thune says their bill is favorable for agriculture because it lower tax rates, eliminates the estate tax and includes stepped up basis. He adds that while interest deductibility is going away for large businesses, family-run farms would be exempt. He says there are also other provisions helpful to farmers and ranchers.

The House bill has been criticized for adding $1.5 trillion to the deficit. However, Thune says the Senate package has offsets and base broadeners that eliminate tax loopholes and promote economic growth.

The key is getting the tax reform package across the finish line, which Thune thinks is tough yet doable.

The timetable for getting a bill to the President’s desk is somewhat uncertain. However, their goal is to be finished by the end of 2017.