It's not just the "death" tax. Property taxes are often based on what land sells for in the area. To my way of thinking, my land is only worth 3,000, 8,000, 20,000 per acre, or what ever the number is, if I sell it. How can an unimproved piece of land be worth the same as land producing crops? That's not the way they see it. If someone overpays for land, why does that affect my land value? But I agree, a lot of farmers are land rich and dollar poor. Capital gains at the time of sale makes more sense to me.