To amend the Internal Revenue Code of 1986 to provide for the indexing of the basis of certain farm property sold by certain farmers who have attained age 65 or by farm corporations.

Amends the Internal Revenue Code to allow the indexed basis of qualified farm property to be substituted for its adjusted basis solely for the purpose of determining gain on the sale or other disposition of such property by a qualified farmer or by a farm corporation. Prohibits the amount to be excluded from gross income from exceeding $5,000,000, and allows such substitution on only one sale or exchange.

Describes a qualified farmer as one who has attained age 65 and who has materially participated in the farming trade or business during periods aggregating ten years or more.

Treats all farm corporations which are members of the same controlled group as one farm corporation.