May 30, 2007

New beef tax credit may benefit Missouri's cattle industry

A bill is currently under consideration in the US state of Missouri that would give a tax break to farmers who sell their cattle after they reach 450 pounds.

Missouri is among the primary states in calf production, but most of those animals are sent to feedlots in other states in sourcing for cheaper corn.

However, according to the Missouri Cattlemen's Association, the growing demand for corn because of ethanol has put prices in Missouri on par with those elsewhere, making now an opportune time for the state to develop its cattle industry.

The beef tax credit would allow up to US$30 million in tax breaks, but no more than US$10 million per year. At least one economic impact study found the bill would return US$13.50 for every dollar spent on tax incentives.

The credit is part of a larger tax break bill passed by lawmakers several weeks ago but still under review by Governor Matt Blunt.