After a series of floods and damaging weather events devastated family farms from coast to coast this past year, U.S. Rep. Blaine Luetkemeyer (MO-9) is co-sponsoring legislation that would create tax-deferred farm savings accounts to help farmers prepare for and respond to future agriculture disasters. 

“Natural disasters and their impact on agriculture can have devastating consequences for our entire economy. It is imperative that our farm families have the tools to both prepare for and recover from these destructive events,” Luetkemeyer said. “We can’t control the weather, but we certainly should do everything we can to be ready when disaster strikes and this bill will help do just that.”

The Farm Risk Abatement and Mitigation Election (FRAME) Act would establish new tax-deferred farm savings accounts that are similar to an IRA or health savings account.  Under the bill, contributions up to $50,000 annually, capital gains and dividends would be tax free, and the farmer would only be able to draw upon his account without penalty in the instance of a significant loss of income, to protect the solvency of the farm or to purchase crop insurance. 

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