Dec 7, 2012 10:14 AM by Heath Heggem - MTN News
The Montana Farmers Union believes Congress needs to roll up its sleeves and finish some very important jobs before the end of the year.
The group points to several tax and policy items that need attention.
If the estate tax is allowed to expire, the exemption will be lowered from $5.1 million dollars to $1 million dollars, and the tax rate will rise from 35% to 55%.
No action will also eliminate production tax credis for renewable energy.
MFU also points out that if Congress fails to pass a federal farm bill by the end of the year, it will impact more than just Montana farmers and ranchers, stating that consumers from all walks of life will feel it in the new year.
MFU spokesman Chris Christaens said, "The dairy subsidies expire December 31st, and if that happens, it goes back to 1949 parity. If it went back to 1949 parity you could be paying as high as 10 dollars a gallon for your milk. That is a reality."
Bread prices could also be impacted; the 1949 parity price for wheat would be $16.50 per bushel; the government would have to pay 90% of that price.