To amend the Internal Revenue Code of 1986 to allow farmers to income average.

Repeals specified provisions of the Tax Reform Act of 1986 that eliminated income averaging.

Amends the Internal Revenue Code to permit the use of income averaging by any person: (1) actively engaged in the trade or business of farming; (2) whose gross income for the three preceding taxable years is at least 50 percent attributable to farming; (3) whose farming business or trade either has needed emergency livestock or crop loss assistance or has been substantially affected in the first preceding taxable year by a natural disaster in the United States or by a major disaster or emergency so designated by the President; and (4) whose farming enterprise has sustained, as a result of the disaster, at least a 30 percent loss of normal per acre or per animal production, based on specified criteria.