Farm Bureau representatives and other small business owners spoke at a Capitol Hill press conference last week to drum up support for a bill that would phase out the death tax. The legislation (H.R. 8), introduced by Reps. Jennifer Dunn (R-Wash.) and John Tanner (D-Tenn.), would reduce the estate tax rate 5 percent a year until it is eliminated. Estate taxes in the highest bracket--55 percent--would be wiped out after 11 years.

"It's my hope that my children will become the fourth generation to cultivate our land, but unless death tax laws are changed I'm not sure that will happen," said Appel.

Families often have to parcel off pieces of their operations following the death of a loved one in order to pay the resulting tax burden. "That's not productive and it's certainly counter to the American tradition of family-owned farms and ranches," according to Kleckner.

Rep. Tanner agrees, saying family businesses carry far more than a monetary value. The elimination of the death tax, he said, "is a societal statement that we believe that saving and investing and passing on generational family farms and small businesses is good, is something that we ought to have as a national policy."

The death tax also forces farmers and ranchers to spend valuable time and resources on estate planning just to keep family businesses in the family.

"Farmers and ranchers spend countless hours preparing for their deaths," said Kleckner. "They meet with accountants, lawyers and more accountants and lawyers in attempts to protect their farms from government tax collectors. These activities are time consuming, expensive and erode the efficiency of American agriculture."

Appel said that his parents used trusts and other estate planning tools in order to pass the farm on to him and his siblings, but even well-laid plans are not foolproof.

"They succeeded in keeping our farm in our family, but not without consequences for me," said Appel. "My eight brothers and sisters are now my landlords."

"Farming is tough enough without any further burdens or obstacles," said Fowler. "The death tax is inefficient, it's unfair and it should be eliminated."

Farm Bureau achieved limited estate tax reform during the 105^th Congress when lawmakers passed the Taxpayer Relief Act, which increases the estate tax exemption from $600,000 per person to $1 million by 2006, with additional relief for family-owned businesses.

While increased exemptions help, Appel maintains that elimination of the tax is still the best option for farmers and ranchers.