II 

115TH CONGRESS 

1ST SESSION S. 671 

To amend the Internal Revenue Code of 1986 to exclude from gross income 

certain amounts realized on the disposition of property raised or produced 

by a student farmer, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 21, 2017 

Mr. MORAN (for himself and Mrs. ERNST) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to exclude 

from gross income certain amounts realized on the disposition of property raised or produced by a student 

farmer, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Agriculture Students 

5 EARN Act’’ or the ‘‘Agriculture Students Encourage, Ac6 knowledge, Reward, Nurture Act’’. 


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•S 671 IS

1 SEC. 2. EXCLUSION OF CERTAIN GAIN BY STUDENT FARM2 ERS FROM GROSS INCOME. 

3 (a) IN GENERAL.—Part III of subchapter B of chap4 ter 1 of the Internal Revenue Code of 1986 is amended 

5 by inserting after section 139F the following new section: 

6 ‘‘SEC. 139G. GAIN FROM PROPERTY PRODUCED OR RAISED 

7 BY A STUDENT FARMER. 

8 ‘‘(a) IN GENERAL.—In the case of a student farmer, 

9 gross income shall not include so much of the gain from 

10 qualified dispositions during the taxable year as does not 

11 exceed $5,000. 

12 ‘‘(b) DEFINITIONS.—For purposes of this section— 

13 ‘‘(1) STUDENT FARMER.—The term ‘student 

14 farmer’ means an individual who has not attained 

15 age 19 and who is enrolled in— 

16 ‘‘(A) a program established by the Na17 tional FFA Organization, 

18 ‘‘(B) a 4–H Club or other program estab19 lished by 4–H, or 

20 ‘‘(C) any student agriculture program 

21 similar in nature to a club or program de22 scribed in subparagraph (A) or (B) which is 

23 under the direction or guidance of an agricul24 tural educator, advisor, or club leader. 

25 ‘‘(2) QUALIFIED DISPOSITION.— 


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•S 671 IS

1 ‘‘(A) IN GENERAL.—The term ‘qualified 

2 disposition’ means a sale or exchange of quali3 fied property by or on behalf of a student farm4 er (determined as of the date of the sale or ex5 change) which occurs— 

6 ‘‘(i) during an activity of a type de7 scribed in paragraph (2)(B) or (3)(B) of 

8 section 513(d), or 

9 ‘‘(ii) under the supervision of a pro10 gram described in subparagraph (A), (B), 

11 or (C) of paragraph (1). 

12 ‘‘(B) QUALIFIED PROPERTY.—For pur13 poses of subparagraph (A), the term ‘qualified 

14 property’ means personal property, including 

15 livestock, crops, and agricultural mechanics or 

16 shop projects, produced or raised— 

17 ‘‘(i) by the student farmer by or on 

18 behalf of whom the sale or exchange is 

19 made, and 

20 ‘‘(ii) under the supervision of a pro21 gram described in subparagraph (A), (B), 

22 or (C) of paragraph (1).’’. 

23 (b) CONFORMING AMENDMENT.—The table of sec24 tions for part III of subchapter B of chapter 1 of the In25 ternal Revenue Code of 1986 is amended by inserting 


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•S 671 IS

1 after the item relating to section 139F the following new 

2 item: 

‘‘Sec. 139G. Gain from property produced or raised by a student farmer.’’. 

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act. 

Æ 


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