Why should agricultural equipment have a five-year deprecation schedule?
Construction equipment, which has similar use patterns and life spans, is depreciated over five years. There is no logical reason for this disparity, and many good reasons to eliminate it. Continuing to allow agricultural equipment to be depreciated over five years is good public policy – a shortened depreciation schedule is better for the: · Environment, because it will encourage farmers to invest in new equipment, which is up to five percent more fuel efficient, and employs emissions control, assisted steering, and global positioning technologies that further reduce fuel usage and emissions; · Safety of farm laborers, because new equipment is fitted with improved safety features; · Rural economy, increasing farm income by $800 million annually while being nearly revenue-neutral to the federal government’s treasury; and · American manufacturing sector, which is the leader in agricultural equipment production, employing 250,000 workers representing $8.5 billion in payroll.
