U.S. Sens. Jerry Moran (R-KS) and Joni Ernst (R-IA) recently introduced legislation that would provide tax relief on income generated through student agriculture projects.
Under the Agriculture Students Encourage, Acknowledge, Reward, Nurture (EARN) Act, S. 2774, students under 18 wouldn’t have to pay taxes on the first $5,000 of gross income resulting from agriculture projects sponsored by 4-H or FFA programs.
“For agriculture and our rural way of life to thrive, it is essential for a new generation of young people to return to rural America to live, work and raise their families,” Moran said. “Our policies, including the tax code, should encourage this goal by fostering student interest in pursuing a career in agriculture, and I’m proud to have Sen. Ernst join me in introducing the Agriculture Students Earn Act.”
Examples of qualifying projects include showing animals at fairs, growing and harvesting crops, and building mechanical agricultural projects.
“It is so important that we encourage our students to stay engaged in vocational and agricultural education programs, particularly as the demand for young farmers continues to grow,” Ernst said. “I’m proud to support the Agriculture Students EARN Act, which would promote our youth’s involvement in programs that serve as an introduction to careers in agriculture. Alleviating some of the tax burden these hardworking students face on the income they earn from 4-H or FFA projects is a step in the right direction to help bridge the generational gap, and ensure our youth is ready to take the reins when their time comes.”
The National FFA Organization, National 4-H Council, American Farm Bureau Federation, National Farmers Union and National Young Farmers Coalition all support the bill.