U.S. tax laws, in flux since 2001, were settled in the American Taxpayer Relief Act of 2012. The resulting certainty is particularly important to agricultural producers and rural land owners wishing to transfer ownership to the next generation. The articles in this theme examine the most relevant implications of the 2012 Act.

The American Taxpayer Relief Act of 2012 made important changes to various tax provisions important to farmers, ranchers, rural landowners, and agribusinesses. While the Act reduced the uncertainty of prior law by making some key provisions permanent, the Act also increased taxes for all wage earners and higher-income earners.

The potential impact of the federal estate tax on the ability to transfer the farm has been a major concern for farmers. Despite increasing concentration and substantial increases in asset values, the higher estate tax exemption level for 2013 and beyond should ensure that less than 1% of farm households will owe any federal estate tax.

This paper reviews transfer tax implications of the American Taxpayer Relief Act of 2012, with a focus on the transition process of farms. Transfer tax schemes are discussed, now that more than 99% of estates escape transfer taxes. Eight "Ds", which create obstacles to transition plan development, are explored.