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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Farmers and Ranchers 
Minimizing Estate Regulations Act of 2013’’ or the 
‘‘FARMER Act of 2013’’. 
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SEC. 2. MODIFICATIONS TO ALTERNATE VALUATION OF 
FARM, ETC., REAL PROPERTY. 
(a) 
MAXIMUM
REDUCTION
INCREASED
TO 
$2,000,000.— 
(1) IN
GENERAL.—Paragraph (2) of section 
2032A(a) of the Internal Revenue Code of 1986 (re-
lating to limitation on aggregate reduction in fair 
market value) is amended by striking ‘‘$750,000’’ 
and inserting ‘‘$2,000,000’’. 
(2) CONFORMING AMENDMENT.—The first sen-
tence of section 2032A(a)(3) of such Code is amend-
ed to read as follows: ‘‘In the case of estates of dece-
dents dying in a calendar year after 2012, the 
$2,000,000 amount contained in paragraph (2) shall 
be increased by an amount equal to— 
‘‘(A) $2,000,000, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for such calendar 
year by substituting ‘calendar year 2011’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof.’’. 
(b) REDUCTION IN REQUIRED HOLDING AND USE 
PERIODS OF DECEDENT.—Subparagraph (C) of section 
2032A(b)(1) of such Code is amended— 
(1) by striking ‘‘8-year period’’ and inserting 
‘‘5-year period’’, and 
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(2) by striking ‘‘5 years’’ and inserting ‘‘3 
years’’. 
(c) REDUCTION IN REQUIRED HOLDING AND USE 
PERIODS TO AVOID RECAPTURE.— 
(1) IN
GENERAL.—Paragraph (1) of section 
2032A(c) of such Code is amended— 
(A) by striking ‘‘10 years’’ and inserting 
‘‘5 years’’, and 
(B) by striking subparagraph (B) and in-
serting the following new subparagraph: 
‘‘(B) there have been periods aggregating 
3 years or more during which the qualified heir 
does not use for the qualified use the qualified 
real property which was acquired (or passed) 
from the decedent,’’. 
(2) CONFORMING AMENDMENT.—Clause (ii) of 
section 2032A(c)(7)(A) of such Code is amended by 
striking ‘‘10-year’’ and inserting ‘‘5-year’’. 
(d) CERTAIN RENTS FROM CONTROLLED ENTITIES 
TREATED AS QUALIFIED.—Subparagraph (E) of section 
2032A(c)(7) of such Code is amended by inserting ‘‘(or 
to an entity more than 50 percent (by vote and value) of 
the equity interests in which are owned directly by mem-
bers of such family)’’ after ‘‘descendant’’. 
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(e) REPEAL OF USE OF GROSS CASH RENTAL OF 
COMPARABLE LAND IN VALUING FARMS.— 
(1) IN GENERAL.—Subparagraphs (A) and (B) 
of section 2032A(e)(7) of such Code (relating to 
method of valuing farms) are amended to read as 
follows: 
‘‘(A) IN GENERAL.—The value of a farm 
for farming purposes shall be determined by di-
viding— 
‘‘(i) the excess of the average annual 
net share rental for comparable land used 
for farming purposes and located in the lo-
cality of such farm over the average annual 
State and local real estate taxes for such 
comparable land, by 
‘‘(ii) the average annual effective in-
terest rate for all new Federal Land Bank 
loans. 
For purposes of the preceding sentence, the av-
erage annual net share rental computation shall 
be made on the basis of the 5 most recent cal-
endar years ending before the date of the dece-
dent’s death. 
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‘‘(B) NET SHARE RENTAL.—For purposes 
of this paragraph, the term ‘net share rental’ 
means the excess of— 
‘‘(i) the value of the produce received 
by the lessor of the land on which such 
produce is grown, over 
‘‘(ii) the cash operating expenses of 
growing such produce which, under the 
lease, are paid by the lessor.’’. 
(2) CONFORMING AMENDMENT.—Subparagraph 
(C) of section 2032A(e)(7) of such Code is amended 
by striking ‘‘that there is no comparable land from 
which the average annual gross cash rental may be 
determined, and’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying after 
the date of the enactment of this Act. 
SEC. 3. WOODLANDS SUBJECT TO MANAGEMENT PLAN. 
(a) 
IN
GENERAL.—Paragraph 
(2) 
of 
section 
2032A(c) of the Internal Revenue Code of 1986 is amend-
ed by adding at the end the following new subparagraph: 
‘‘(F) EXCEPTION
FOR
WOODLANDS
SUB-
JECT TO MANAGEMENT PLAN.—Subparagraph 
(E) shall not apply to any disposition or sever-
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ance of standing timber on a qualified woodland 
if the harvest is— 
‘‘(i) consistent with a written forest 
management plan developed under the Co-
operative Forestry Assistance Act of 1978 
(16 U.S.C. 2103a), or an equivalent plan 
approved by the State Forester, 
‘‘(ii) conducted under the guidance of 
a qualified forestry professional (as deter-
mined by the Secretary in consultation 
with the United States Forest Service), or 
‘‘(iii) conducted on lands certified to a 
third-party audited forest certification sys-
tem or similar land management protocol, 
as determined by the United States Forest 
Service.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to the disposition or severance 
of standing timber after the date of the enactment of this 
Act. 
Æ 
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