Farm development in USA

State tax regulation plays important roll in encouraging of farm development in USA. Since 1988 the tax rates on profit in an agriculture have been established at a rate of 15 and 28% whereas earlier they ranged from 11 up to 50 % with the intermediate rates. Farms with the income up to 50000 dollars pay tax at the 15 % rate, and every next 25000 dollars at - 28% rate. Since 1989 the size of the tax-free profit has increased up to 2000, and since 1990

- up to 5000 dollars.
Calculation of surtax in USA agroindustrial complex has a number of peculiarities, each of which can represent a tax privilege. The USA tax laws gives the farmers the right to subtract the costs connected with some works in agriculture and cattle breeding from the tax paid. Work on soil preservation, water resources protection, soil preparation for farming are of thus kind. The tax discount works for the incomes and losses suffered by the farmers in connection with the sale of cattle or forages. These losses are subtracted from the farmer's charges and the more favorable taxation mode is used for profit, than for income taxation. The farmers, who are engaged in cattle feeding use a tax privilege as a delay of income getting, that is all expenses are estimated per one year, and all incomes on his(its) realization the next year. Besides the farmers have the right to apply methods of accelerated amortization of agricultural machines and equipment on higher rates. It allows them to considerably reduce the sizes of the taxed income, that is to pay the taxes on the lower rates. As a result, the more machines, equipment, the farmer gets, the less taxes he pays this year and in the following period of amortization. The farmers are given alternative to use new amortization rules to reduce the taxed income or to make allocation by equal shares for 3-45 years depending on the kind of property.

The tax rules for corporations limit the sizes of the allowed allocation from the taxed income connected with expenses for fodder, seeds and fertilizer. The farmer corporation can receive the right for discounts only after actual complete consumption of materials.

The special tax privileges are given to farmer cooperative societies. Thus, fruit growing cooperative societies? marketing, and also those purchasing farm machines are released from surtax payment.