10/05/2026
Family farms are the backbone of Nebraska's economy. They're also disappearing.
I'm a lawyer and former lawmaker- let's break down inheritance taxes and what they mean for the futures of family farms in Nebraska.
There are only five states left with an inheritance tax: Nebraska, New Jersey, Maryland, Pennsylvania, and Kentucky. All of Nebraska's neighbors have eliminated the inheritance tax, and it's easy to see why.
A multi-generational family farm can easily be worth several million dollars; all in land, equipment, and livestock. None of it in cash.
Problem one: even Nebraska's LOWEST inheritance tax rate- 1% for a child inheriting from a parent- generates a real bill. On a $5 million farm, that's over $49,000 (the first $100k in value is excluded from taxation). Due in cash, immediately. Most farm families don't have that sitting in savings. That 1% is often the difference between keeping the farm whole and being forced to sell acreage just to pay the tax.
Problem two, and it's getting worse: fewer Nebraska farms are passing parent to child anymore. The number of Nebraska farmers under 35 has dropped 75% since the 1980s, while the number over 65 keeps climbing. More family land is passing to nieces and nephews โ the ones who actually stayed and worked the ground โ because there's no direct heir left. That transfer isn't taxed at 1%. It's 11 to 13%. On a multi-million dollar farm, that's a six-figure bill, due immediately, on an asset that generates income seasonally, not on demand.
That's how you lose a family farm that's been in operation for generations- not because anyone wanted to sell, but Nebraska's one of the last states demanding a death tax.
Follow for more- I break down the policies actually shaping rural Nebraska. ๐พ