SAN ANTONIO — High food prices. Thanks to inflation we're all paying more at the grocery store. In tonight's Verify we look into whether a tax on farms is driving prices up even more.
THE QUESTION
Is it true that the federal government recently put a tax on small farms which has contributed to the rise in food costs?
THE SOURCES
- Paul Miller, a certified public accountant with Miller and Company LLP
- Farmers.gov
THE ANSWER
FALSE
WHAT WE FOUND
Miller says no new tax has been placed by the federal government on small farms, but expiring benefits may drive up costs for farmers themselves.
"The government does give a lot of subsidies to farmers. And what I'm reading is that they may be modifying some of that, the credits and some of the deductions equaling that," Miller said.
But Miller says not to worry about extreme food prices because advancements in tech will help farmers bring production costs down.
"I think technology, especially AI and the advancement will help them in terms of their production capability and what they can do," Miller said.
According to farmers.gov, the USDA issues 1099 forms to assist farmers with financial problems, for Conservation programs, crop disaster payments, assistance for distressed borrowers, and a Market Facilitation Program.
So no, it is false. The federal government did not recently put a tax on small farms which would contribute to the rise in food costs.
Miller also told us that it is imperative younger people go into farming to take advantage of emerging technology, to keep the farming community moving forward.