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Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.
There is an old saying that when politics gets involved, farming can suffer. One of the prime examples of this was issue of allowing Mexican truckers to bring products into the US by truck which was allowed for several years. However, politics got involved a few years ago and the US stopped this and Mexico retaliated by imposing tariffs of up to 45% on certain Ag products exported by US farmers.
These tariffs taxed about $2.4 billion of products and were especially burdensome to the fruit growers in the US.
Now the good news. As of Wednesday, July 6, 2011, both the US and Mexico have agreed to allow the truckers back into the US. As a result of this signing, Mexico will cut in half their tariffs within 10 days and eliminate the remainder once full cross-border traffic begins.
This is good news for our farmers.
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