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Impact of Estate Taxes on Farmers The agriculture industry represents the largest segment of the U.S. economy5 -- more than $177 billion6 of $6.7 trillion total U.S. GDP in 1993.7 The agriculture segment is made up primarily of family businesses. According to 1992 U.S. census data, only 3.6% of U.S. farms are owned by corporations, and most are family corporations with fewer than 10 stockholders -- only 0.4 percent are non-family corporations.8 The cattle industry, comprised of more than 1 million individual farms and ranches, represents the largest component of U.S. agriculture. Sales of cattle and calves totaled more than $39 billion in 1993, exceeding 22 percent of all farm marketings. The beef industry provides 186,000 full-time jobs on farms and ranches and supports an additional 1.37 million jobs throughout the economy, adding $153 billion to the U.S. economy. It also represents the largest commodity sector in 18 states, second-largest in 9 states, and third-largest in 6 states.9 Forty-two percent of U.S. cattle businesses with more than 100 head have been in the same family for more than 50 years. Twenty-one percent have been in the same family for more than 75 years.10 Only 1.9 percent of beef farms and ranches are owned by corporations, and most are family corporations with fewer than 10 stockholders -- only 0.2% are non-family corporations. Most cattle ranchers (98%) own small, single-family businesses with less than 500 head. | |
