financial difficulties and is now trying to 

 sell his farm; (2) the producer who has 

 managed a profitable operation and is making 

 substantial nonfarm income from investments; 

 and (3) the producer who relies on income from 

 off-farm employment in order to make farming 

 possible. 



(3) Gene Chapel, Montana Farm Bureau, testified 

 that he opposed the bill because it would 

 penalize farm families in which a spouse is 

 required to work off the farm. 



Testimony on LC 12 was followed by discussion of 

 the bill by the Subcommittee. Concerns were raised 

 regarding the impact of the proposed tax policy. In 

 addition, there were questions about the effect of 

 federal tax reform legislation on tax-shelter farming. 

 The Subcommittee concluded its consideration of LC 12 by 

 agreeing that there was no reason for haste in regard to 

 the bill and that further study would be necessary 

 before final consideration could be given to such 

 legislation. 



Hearing on Grain Marketing Improvement 



Following consideration of LC 12, the Subcommittee 

 took up LC 11, which was presented by Representative 

 Bill Glaser. Representative Glaser explained that 

 LC 11 would establish a program for marketing of a 

 quality-preserved, premium Montana grain. He said such 

 program was necessary because the quality of U.S. grain, 

 including Montana grain, had come under increased 

 criticism due to the amount of blending permitted under 

 the federal grain standards. He said that the standards 



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