This CAE working paper considers taxes and their impact on the market for farmland. Agricultural land subject to state and federal income, property, capital gains and estate taxes. The taxation of land can affect ownership patterns in addition to the value of land. This study provides maximum bid models to assess different policy options and their affect on the value of land and ultimately land ownership patterns. Specific legislation currently being considered such as changes in capital gains and major tax reform are examined. The results indicate that the capital gains legislation could increase the inequity between buyers with different marginal tax rates. Major tax reform could reduce those inequities. Note: Dr. Featherstone's paper was presented as part of a CAE Symposium "Competition for the Land: A Workshop on the Effects of Public Policy on the Market for U.S. Farmland."