Family Farm Assistance Act of 1985

Family Farm Assistance Act of 1985 - Title I: - Amendment to Internal Revenue Code of 1954 Regarding Deductions for Cost of Health Insurance - Amends the Internal Revenue Code to allow a business deduction of one-half of the cost of medical care insurance paid by a self-employed taxpayer.

Title II: Amendment to Internal Revenue Code of 1954 Regarding Filing of Certain Returns - Amends the Internal Revenue Code to repeal the requirement that certain service-recipients file a return regarding payments of remuneration for services and direct sales. Repeals backup withholding on such payments.

Title III: Soil Conservation - Soil Conservation Act of 1985 - Makes any person who cultivates crops on highly erodible land, with certain exceptions, ineligible for price supports and certain other agricultural loans and benefits.

Directs the Secretary of Agriculture to complete land capability classification surveys. Authorizes appropriations for such survey.

Directs the Secretary to: (1) submit to certain congressional committees a cropland base protection study; and (2) implement a soil and water resources conservation and improvement program with owners and operators of highly erodible cropland. Sets guidelines for the implementation of such program. Authorizes appropriations for such program for FY 1986 through 1988.

Requires the Secretary to publish implementing regulations for the conservation and improvement program in the Federal Register, and to establish an appeal procedure for persons adversely affected by a determination under such program.

Title IV: Amendment to Internal Revenue Code of 1954 Repealing Certain Imputed Interest Rules Relating to Sales of Farms - Amends the Internal Revenue Code with respect to imputed interest rules relating to farms to exclude: (1) any farm sales (currently only sales under $1,000,000) by individuals or small businesses from the determination of issue price in the case of certain property debt instruments; and (2) any farmland transfers between related parties from the guidelines for interest on certain deferred payments debt instruments.

Title V: Amendment to Internal Revenue Code of 1954 Providing Exemption from Tax on Sales of Farm Property in Bankruptcy, Etc. - Amends the Internal Revenue Code to: (1) exclude from gross income any gain realized on the sale of farm property in bankruptcy; and (2) make inapplicable to farm property transferred under foreclosure or bankruptcy certain disposition and business credit guidelines.

Title VI: Special Standby Export Subsidy Program - Amends the Agriculture and Food Act of 1981 to direct the Secretary to implement a special standby export subsidy program.

Title VII: Effect of Exchange Rates on Foreign Agricultural Sales - Requires the Secretary of the Treasury to report to the Congress regarding the results of a study determining the effect upon foreign agricultural sales, overseas market development, and agricultural imports of: (1) the exchange rate of the dollar; and (2) the imposition of a currency adjustment charge neutralizing such exchange rate.

Title VIII: Stabilizing the Value of Farm Assets - Amends the Federal Deposit Insurance Act to prescribe standards for the determination of the value of agricultural land or assets whenever the Federal Deposit Insurance Corporation (FDIC) examines the collateral used to secure an agricultural loan made by an FDIC-insured bank.