A bill to amend the Internal Revenue Code of 1954 to permit the deduction of certain farm losses in disasters.

Stipulates that the amount of a loss deduction under the Internal Revenue Code shall be, in the case of crops or livestock, the larger of either the adjusted basis of such property or, in the case of crops, all expenses attributable to the production of such crops, whether or not such expenses are otherwise deductible, or in the case of livestock, their fair market value immediately prior to the damage or loss where the loss results from a disaster deemed by the President of the United States to warrant assistance by the Federal Government under the Disaster Relief Act.