Economic Stimulus Package Big Help For Farmers 02/03/2008
The $168 billion economic stimulus bill signed by President Bush last week will help farmers invest in farm equipment such as combine harvesters, tractors and other agrarian equipment. The bill is expected to increase equipment sales since the bills passage will add 10 cents a share, roughly 2% to combine harvester manufacturer Deere’s 2008 profit. Large crop farmers like Jesse Beetz who farms 10,000 acres of corn and soybeans in Illinois plans on putting his tax break back into buying a combine harvester and new tractors. The stimulus bill signed February 13th provides tax rebates of as much as $600 for individuals and $1,200 for couples to boost consumer spending and avert a recession. The economic slump has seen home construction fall by 24%, the biggest drop in 26 years.
Farmers have also been feeling an economic high for the past year, with record incomes due to the high prices for corn, soybeans and wheat. These record earnings as has also meant higher sales in equipment for companies like Deere. The stimulus bill will also provide bonus depreciation provision which will allow farmers to write off 50% of the value for new tractors and combine harvesters.