Family farmers and ranchers are the backbone of Texas, tending land that has often been passed down through generations. Family-owned farms make up more than 90% of all farms in the state. Yet, without legislative safeguards, heirs may one day be forced to sell parts of their family farms just to cover tax bills when a loved one passes away.
This November, Texans have the chance to protect family farms and the rural communities they sustain. Proposition 8 would permanently prohibit the state legislature from imposing estate, inheritance, or gift taxes. This ensures families won’t be forced to sell portions of their farms to pay taxes, keeps family property intact, and provides the policy certainty needed for long-term capital investments.
Texas currently has no estate or inheritance tax, so the amendment is preventative, locking in protections for families, farmers, and businesses before any new financial burdens can arise. Importantly, the measure does not affect existing taxes, such as property taxes, motor vehicle gift taxes, or other levies already authorized under state law. By clarifying what is allowed and what is prohibited, Proposition 8 ensures families and businesses have the necessary clarity to start making plans without the fear of sudden or unpredictable new levies.
Many farmers and ranchers run estates that are land-rich but cash-poor, with wealth tied up in property, equipment, and livestock rather than liquid funds. For example, farms across the nation typically have 80% of their assets tied up in real estate. Without legislative protections, heirs could be forced to sell parts of their land just to pay taxes, threatening decades of family investment.
Even highly valuable farms can face a cash crunch if heirs are required to pay estate taxes. For example, in states like New York and New Jersey, families have been forced to sell portions of farmland or valuable equipment to meet tax bills, sometimes breaking up farms in the process. Proposition 8 supports family farms by taking the prospect of ruinous fire sales off the table.
Texas is a national agricultural leader, with nearly 250,000 farms and ranches covering over 125 million acres. Farming contributes billions each year to the state economy and supports thousands of rural jobs. In 2022, Texas farms sold over $32 billion in agricultural products, and today one in seven Texans works in an agriculture-related job. Protecting farms from forced sales is therefore both an economic and social imperative for the Lone Star State.
This support is especially welcome given the recent headwinds for agriculture, including rising input costs, unpredictable weather, and market volatility caused by growing geopolitical tensions. Over the past five years alone, seed expenses increased by 18%, fuel and oil expenses rose 32%, and fertilizer costs increased 37%. Labor expenses, which have gone up by a whopping 50% since 2020, only compound the cost pressures facing cash-strapped family farms. This doesn’t even take into account the prospect of wasteful tit-for-tat tariff battles that could impact the agricultural supply chain.
Texas’ effort to protect family farms from forced sales mirrors the federal government’s recent progress in shielding taxpayers from the ruinous effects of estate taxes. As part of the One Big Beautiful Bill Act passed this summer, federal lawmakers increased the estate and gift tax exemption to $15 million per individual and $30 million for married couples. In addition to being codified on a permanent basis, these amounts are also indexed for inflation, ensuring that estates below these thresholds are permanently shielded from federal estate levies.
Ultimately, Proposition 8 is more than a technical tax amendment. It’s a thoughtful decision about the kind of economic environment Texas wants to foster. Approving Proposition 8 helps keep family farms intact, gives businesses the confidence to invest, and strengthens the state’s long-term economic growth. This amendment ensures that families can pass down their land, livelihoods, and hard-earned wealth safely to the next generation.