I 

113TH CONGRESS 

1ST SESSION H. R. 1448 

To amend the Internal Revenue Code of 1986 to increase the aggregate 

reduction in the fair market value of farm, etc., real property under 

section 2032A to $2,000,000, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 9, 2013 

Mr. AUSTIN SCOTT of Georgia (for himself, Mr. BROUN of Georgia, Mr. 

WESTMORELAND, Mr. ROGERS of Alabama, Mr. YOHO, Mr. MCINTYRE, 

Mr. KINGSTON, and Mr. CRAWFORD) introduced the following bill; which 

was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to increase 

the aggregate reduction in the fair market value of farm, 

etc., real property under section 2032A to $2,000,000, 

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 ‘‘Farmers and Ranchers 

5 Minimizing Estate Regulations Act of 2013’’ or the 

6 ‘‘FARMER Act of 2013’’. 


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1 SEC. 2. MODIFICATIONS TO ALTERNATE VALUATION OF 

2 FARM, ETC., REAL PROPERTY. 

3 (a) MAXIMUM REDUCTION INCREASED TO

4 $2,000,000.— 

5 (1) IN GENERAL.—Paragraph (2) of section 

6 2032A(a) of the Internal Revenue Code of 1986 (re7 lating to limitation on aggregate reduction in fair 

8 market value) is amended by striking ‘‘$750,000’’ 

9 and inserting ‘‘$2,000,000’’. 

10 (2) CONFORMING AMENDMENT.—The first sen11 tence of section 2032A(a)(3) of such Code is amend12 ed to read as follows: ‘‘In the case of estates of dece13 dents dying in a calendar year after 2012, the 

14 $2,000,000 amount contained in paragraph (2) shall 

15 be increased by an amount equal to— 

16 ‘‘(A) $2,000,000, multiplied by 

17 ‘‘(B) the cost-of-living adjustment deter18 mined under section 1(f)(3) for such calendar 

19 year by substituting ‘calendar year 2011’ for 

20 ‘calendar year 1992’ in subparagraph (B) 

21 thereof.’’. 

22 (b) REDUCTION IN REQUIRED HOLDING AND USE

23 PERIODS OF DECEDENT.—Subparagraph (C) of section 

24 2032A(b)(1) of such Code is amended— 

25 (1) by striking ‘‘8-year period’’ and inserting 

26 ‘‘5-year period’’, and 


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1 (2) by striking ‘‘5 years’’ and inserting ‘‘3 

2 years’’. 

3 (c) REDUCTION IN REQUIRED HOLDING AND USE

4 PERIODS TO AVOID RECAPTURE.— 

5 (1) IN GENERAL.—Paragraph (1) of section 

6 2032A(c) of such Code is amended— 

7 (A) by striking ‘‘10 years’’ and inserting 

8 ‘‘5 years’’, and 

9 (B) by striking subparagraph (B) and in10 serting the following new subparagraph: 

11 ‘‘(B) there have been periods aggregating 

12 3 years or more during which the qualified heir 

13 does not use for the qualified use the qualified 

14 real property which was acquired (or passed) 

15 from the decedent,’’. 

16 (2) CONFORMING AMENDMENT.—Clause (ii) of 

17 section 2032A(c)(7)(A) of such Code is amended by 

18 striking ‘‘10-year’’ and inserting ‘‘5-year’’. 

19 (d) CERTAIN RENTS FROM CONTROLLED ENTITIES

20 TREATED AS QUALIFIED.—Subparagraph (E) of section 

21 2032A(c)(7) of such Code is amended by inserting ‘‘(or 

22 to an entity more than 50 percent (by vote and value) of 

23 the equity interests in which are owned directly by mem24 bers of such family)’’ after ‘‘descendant’’. 


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1 (e) REPEAL OF USE OF GROSS CASH RENTAL OF

2 COMPARABLE LAND IN VALUING FARMS.— 

3 (1) IN GENERAL.—Subparagraphs (A) and (B) 

4 of section 2032A(e)(7) of such Code (relating to 

5 method of valuing farms) are amended to read as 

6 follows: 

7 ‘‘(A) IN GENERAL.—The value of a farm 

8 for farming purposes shall be determined by di9 viding— 

10 ‘‘(i) the excess of the average annual 

11 net share rental for comparable land used 

12 for farming purposes and located in the lo13 cality of such farm over the average annual 

14 State and local real estate taxes for such 

15 comparable land, by 

16 ‘‘(ii) the average annual effective in17 terest rate for all new Federal Land Bank 

18 loans. 

19 For purposes of the preceding sentence, the av20 erage annual net share rental computation shall 

21 be made on the basis of the 5 most recent cal22 endar years ending before the date of the dece23 dent’s death. 


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1 ‘‘(B) NET SHARE RENTAL.—For purposes 

2 of this paragraph, the term ‘net share rental’ 

3 means the excess of— 

4 ‘‘(i) the value of the produce received 

5 by the lessor of the land on which such 

6 produce is grown, over 

7 ‘‘(ii) the cash operating expenses of 

8 growing such produce which, under the 

9 lease, are paid by the lessor.’’. 

10 (2) CONFORMING AMENDMENT.—Subparagraph 

11 (C) of section 2032A(e)(7) of such Code is amended 

12 by striking ‘‘that there is no comparable land from 

13 which the average annual gross cash rental may be 

14 determined, and’’. 

15 (f) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to estates of decedents dying after 

17 the date of the enactment of this Act. 

18 SEC. 3. WOODLANDS SUBJECT TO MANAGEMENT PLAN. 

19 (a) IN GENERAL.—Paragraph (2) of section 

20 2032A(c) of the Internal Revenue Code of 1986 is amend21 ed by adding at the end the following new subparagraph: 

22 ‘‘(F) EXCEPTION FOR WOODLANDS SUB23 JECT TO MANAGEMENT PLAN.—Subparagraph 

24 (E) shall not apply to any disposition or severVerDate Mar 15 2010 16:05 Apr 15, 2013 Jkt 029200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1448.IH H1448

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1 ance of standing timber on a qualified woodland 

2 if the harvest is— 

3 ‘‘(i) consistent with a written forest 

4 management plan developed under the Co5 operative Forestry Assistance Act of 1978 

6 (16 U.S.C. 2103a), or an equivalent plan 

7 approved by the State Forester, 

8 ‘‘(ii) conducted under the guidance of 

9 a qualified forestry professional (as deter10 mined by the Secretary in consultation 

11 with the United States Forest Service), or 

12 ‘‘(iii) conducted on lands certified to a 

13 third-party audited forest certification sys14 tem or similar land management protocol, 

15 as determined by the United States Forest 

16 Service.’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 subsection (a) shall apply to the disposition or severance 

19 of standing timber after the date of the enactment of this 

20 Act. 

Æ 


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