To amend the Internal Revenue Code of 1986 to provide an exclusion for gain from sale of farmland which is similar to the exclusion from gain on the sale of a principal residence.

Amends the Internal Revenue Code to provide an exclusion from gross income of gain from the sale of qualified farm property similar to the exclusion of gain on the sale of a principal residence. Excludes from gross income up to $500,000 ($250,000 in the case of a married individual filing a separate return), reduced by the aggregate amount of gain excluded for all preceding taxable years.