Legislation Introduced for Tax Savings for FFA, 4-H Student Projects

The Montana Farm Bureau is urging Congressional support for S. 2774, the Agriculture Student EARN Act. The Act, introduced by Senators Jerry Moran (R-Kan.) and Joni Ernst (R-Iowa), would make the first $5,000 of income earned by students completing 4-H or FFA agricultural projects tax-free. Farm Bureau also supports companion legislation introduced in the House by Representatives Michael McCaul (R-Texas), Henry Cuellar (D-Texas) and Michael Conaway (R-Texas). That bill is H.R. 3255, the Student Agriculture Protection Act of 2015. “Student agricultural projects increase awareness of and foster an interest in fields of study that will provide the next generation of farmers and ranchers, food scientists, agricultural engineers, agronomists, horticulturalists and soil scientists,” said Jim Rose, state FFA advisor. “We generally define an FFA or   4-H agricultural project as a student business venture.”

Albert Koenig, the newly elected Montana FFA president, indicated the tax relief bill would be excellent for students. “The tax break would go a long way towards students reinvesting their money to develop their projects further,” noted Koenig. “Many students are significant players in their communities. In fact, FFA members contributed 6 million to the economy. This legislation could allow students to turn their small projects into working business ventures.”

Montana Farm Bureau shares in the development of youth, being involved in developing leaders and helping young people stay involved in agriculture. “Montana Farm Bureau brings resources and individuals together to keep young producers on top of issues that affect their farms and ranches every day,” says MFBF Young Farmer and Rancher Chair Gil Gasper. “Farm Bureau stands behind agriculture to ensure that the next generation can stay involved in farming and ranching or in pursuing other important agricultural careers.”

The long-term sustainability of agriculture depends on talented young people pursuing careers in farming and ranching and other agricultural production and food chain professions.