Right. So they don't get the step up in basis without actually paying the tax. Still, having to pay capital gains is likely only 15%. It sucks (and I don't agree with it for a variety of reasons) but I don't think it will force many people to sell that would otherwise hold onto the land.
Capital gains isn't going to stay at 15-20% (see link below). Most working farms/ranches are worth way more than $500K and don't generate much cash flow.
