Legislation

Animal Care

Legislation has been introduced in the House (H.R. 503) and Senate (S. 311) to make illegal the processing of horses for human consumption and the export of horses for slaughter. Legislation (H.R. 661/S. 394) has also been introduced to ban all non-ambulatory livestock from the human food supply. Additionally, an attempt may be made to restriction production practices. The Farm Animal Stewardship Purchasing Act (H.R. 1726) would establish arbitrary animal welfare standards, including minimum space requirements and open production systems, for all producers supplying meat, milk or eggs to any Federal food program – such as the Department of Defense,  correctional facilities, and the School Lunch Program.

Animal Manure – CERCLA & EPCRA

Farm Bureau and a coalition of producer groups strongly support legislation that would amend Comprehensive Environmental Recovery, Compensation & Liability Act (CERCLA) and Environmental Protection & Community Right-to-Know Act (EPCRA) to clarify that animal manure should not be regulated under these laws. Companion bills have been introduced in the House and Senate supporting our position – H.R. 1398 and S. 807, “The Agricultural Protection and Prosperity Act of 2007.” Primary sponsors are Reps. Collin Peterson (D-Minn.) and Ralph Hall (R-Texas) and Sens. Blanche Lincoln (D-Arkansas) and Pete Domenici (R-N.M.).

Air Quality and Climate Change

Global climate change is receiving increased attention on Capitol Hill with efforts to enact measures that would restrict greenhouse gas (GHG) emissions. Any legislation that is approved should recognize agriculture’s contributions to reducing GHG emissions through participation in voluntary carbon markets and not adversely affect our ability to provide a safe and abundant food supply.  The Lieberman-Warner bill (S. 2191), which passed the Senate Environment and Public Works Committee, will likely be the focus of continued debate and analysis and could be considered by the full Senate in 2008. The bill would implement a cap-and-trade policy that would include agricultural offsets.  While the administration has acknowledged the issue, it appears unlikely that legislation will be enacted that would severely undercut the U.S. economy, especially in an election year.

Clean Water Act Jurisdiction

H.R. 2421 and S.1870, the Clean Water Restoration Act of 2007, would expand jurisdiction of the federal Clean Water Act (CWA) to all intrastate waters including groundwater, ditches, culverts, pipes, desert washes, sheet flow, erosional features, farm and stock ponds and prior converted cropland. We expect additional hearings in both the House and the Senate. Congress should not expand the jurisdictional reach of the Clean Water Act, and we urge all members of Congress to oppose H.R. 2421 and S. 1870.

2008 Farm Bill

The House and Senate on voted to override President Bush's veto of an incomplete the version of the farm bill vetoed by President Bush. The bill doesn't include the trade title originally approved by Congress, due to a last-minute paperwork glitch. Also, the House voted to approve the complete conference report with a new bill number (H.R. 6124), on a voice vote of 306-110. Although the bill number is different, the legislation is identical to H.R. 2419. This "new" bill will now move to the Senate for a vote, which is likely to take place soon after senators return from recess in early June. After the Senate vote, it will take about three days to "enroll the bill" and have it sent to President Bush, who is expected to veto it shortly after he receives it. House and Senate members must then vote on overriding the veto of the complete bill. Because the House and Senate have determined that 14 of the 15 titles of the farm bill are already law, there will be no short-term extension of the 2002 farm bill. Funding for soup kitchens will be one of the first provisions to take effect. Most of the changes to the commodity title won't really come into play until next year.  Because the farm bill glitch could not be fixed this week, the House will not be able to approve the 2009 budget resolution until June either. If the budget resolution had been finalized prior to completion of the farm bill, Congress would have been forced to use the March 2008 baseline rather than the March 2007 baseline – making it much more difficult to fund all necessary programs.

Food Safety

Any actions by Congress should be based on sound science and prudent risk assessment. American consumers need to have confidence that their food is safe and that the best science is being used to ensure that the most wholesome product possible is produced and offered.

Some of the bills currently being discussed in Congress are:

The Fresh Produce Safety Act, S. 2077 – Legislation which would establish federal oversight of the fresh produce industry, giving the FDA the authority to make its current voluntary guidelines on produce mandatory.

The Food and Drug Import Safety Act, H.R. 3610 – A bill which includes Country of Origin Labeling (COOL), port closures and measures which could threaten trade relationships.

The Safe Food Act, S.654 – Legislation to create one food safety agency by transferring all functions of specified federal agencies that relate to the administration or enforcement of food safety laws.

The Food Safety Authority Modernization Act, S. 2245 – Legislation to create a Congressional Bipartisan Food Safety Commission.

Ending Agricultural Threats: Safeguarding America's Food for Everyone (EAT SAFE) Act of 2007, S. 2418 -- Legislation which would: (1) establish food safety and agroterrorism training programs for appropriate federal employees and border patrol agents; (2) hire additional FSIS personnel; (3) provide notification of smuggled food products to the public and to the DHS; and (4) provide the public with notification of recalled food products.

Imported Food Security Act of 2007, S. 1776 – This bill would (1) assess and collect fees on food imported into the U.S.; (2) provide for research on the development of tests of imported food and sampling methodologies; (3) give priority to tests of food at U.S. ports of entry; (4) establish tests for specified pathogens or substances; and (5) establish a certification system for a foreign government or foreign food establishment seeking to import food to the U.S.

Human and Pet Food Safety Act of 2007, S. 1274 – Legislation amending the Federal Food, Drug, and Cosmetic Act (FFDCA) to require a person who has reason to believe that any food introduced into interstate commerce may be in violation of the FFDCA to immediately notify the secretary of Health and Human Services of the identity and location of the food.

Expand Trade Markets

U.S. farmers and ranchers work for new trade opportunities and expanded international markets for their products.  U.S. agriculture must ensure that international trade barriers are reduced and markets opened for American products.  The best opportunities for American agriculture to compete for new and expanded foreign markets will be realized through trade agreements with nations around the world.

Free Trade Agreement (FTA): Colombian Trade Promotion Agreement

The Bush administration signed an FTA with Colombia. This FTA will provide important new market access benefits for U.S. agricultural exports. We have estimated that after full implementation of the FTA, U.S. agriculture could see more than $660 million from Colombia. Many U.S. agricultural products will become eligible for duty-free treatment immediately, and all other tariffs will be phased out for remaining products. In addition, Colombia has taken important steps to eliminate key sanitary and phytosanitary barriers to U.S. exports.  Currently, Colombia exports many of its agricultural products duty free to the U.S. because of U.S. preference programs and the Andean Trade Preference and Drug Eradication Act. While Colombian products come into the U.S. duty free, our agricultural products destined for this market face high tariffs. Implementation of the FTA will provide U.S. agriculture the same duty-free access Colombia has to our market. Farm Bureau supports Congressional passage and implementation of the FTA with Colombia.

Immigration

To assure that American agriculture has a stable, legal supply of workers to sustain and grow production through a workable program, to allow for recruitment of temporary agricultural workers, and to provide an opportunity for some current agricultural workers to apply for permanent U.S. residency.

The Solution: Comprehensive Immigration Reform - American agriculture must have access to an adequate legal workforce in both the short- and long-term. To that end Farm Bureau seeks a comprehensive approach to reforming the nation’s immigration laws. Such a comprehensive solution should include the following components:

Reliable Verification System - Farm Bureau supports strengthening the current system for verifying the status of workers so that the process is simple, conclusive, reliable, timely and provides a safe harbor for employers acting in good faith.  As part of a broader package, we could support tamper-resistant, machine-readable documents that include biometric identifiers if the technology is proven to work in the agricultural sector.

Adequate Transition Provisions - Farm Bureau supports a range of approaches that provide some farm workers with opportunities to apply for legal status. It will take years to craft an effective worker program that provides agriculture the estimated 700,000 workers it needs annually. While such a program is put in place, growers must be able to maintain a workforce during the transition.

Usable Guest Worker Program - Farm Bureau strongly supports reforming the H-2A program so that it:

• Allows employers to pay workers a prevailing, market-based wage (not an artificial AEWR);
• Accommodates the needs of modern agriculture, including year-round livestock operations, whoselabor needs have changed since the inception of the program; and
• Eliminates unnecessary bureaucracy and red tape so it is more responsive and timely to growers’ needs but does not make the program more of a litigation magnet than it is now.

Death Taxes

Farm Bureau supports the immediate and permanent elimination of death taxes. Full unlimited stepped-up basis at death must be included in any estate tax reform. Farm Bureau supports H.R. 2380, introduced by Reps. Hulshof (R-Mo.) and Cramer (D-Ala.) to make death tax repeal permanent when achieved in 2010.

Additional Tax Legislation Supported by Farm Bureau

- H.R. 197, introduced by Reps. Earl Pomeroy (D-N.D.) and Jim Ramstad (R-Minn.) to extend the tax credit for electricity produced by wind for five years.

- H.R. 3976, introduced by Rep. Sander Levin (D-Mich.) to make the tax deduction for donated food permanent.

- S. 689, Good Samaritan Hunger Relief Tax Incentive Extension Act of 2007, introduced by Sens. Richard Lugar  (R- Ind.) and Blanche Lincoln (D-Ark.) that makes the tax deduction for donated food permanent and expands the deduction so that cash method farmers can participate.

- S. 1621, introduced by Sens. Kent Conrad (D-N.D.) and Mike Crapo (R-Idaho); and - H.R. 2280, introduced by Reps. Earl Pomeroy (D-N.D.), Ron Kind (D-Wis.), Wally Herger (R-Calif.) and Ron Lewis (R-Ky.), to shorten depreciation of farm equipment from seven to five years.

- S. 700, the Endangered Species Recovery Act, introduced by Sen. Mike Crapo (R-Idaho); and
- H.R. 1422, the Endangered Species Recovery Act, introduced by Reps. Mike Thompson (D-Calif.), Ron Kind (DWis.),  Jim Ramstad (R-Minn.) and Don Young (R-Alaska), to provide tax incentives that encourage farmers and ranchers to increase efforts to safeguard plant and animal species and conserve natural resources.

- S. 2239, introduced by Sens. Jeff Bingaman (D-N.M.) and Orin Hatch (R-Utah); and
- H.R. 3660, the Equity for our Nation’s Self-Employment Act, to allow a tax deduction against self employment taxes for health insurance premiums paid by the self-employed.

- S. 502, introduced by Sen. Mike Crapo (R-Idaho); and
- H.R. 2312, introduced by Reps. Eric Cantor (R-Va.), Paul Ryan (R-Wis.), Phil English (R-Pa.) and Roy Blunt (RMo.), to make permanent the top capital gains tax rate of 15 percent.

- H.R. 5134, the Beginning Farmers and Ranchers Act of 2007, introduced by Reps. Lee Terry (R-Neb.) and Earl Pomeroy (D-N.D.); and
- S. 2637, the Beginning Farmers and Ranchers Act of 2008, to eliminate or reduce capital gains taxes when agricultural land is sold to another farmer or rancher.

- H.R. 3039, introduced by Rep. Adrian Smith (R-Neb.) to extend the time allowed to purchase replacement property under section 1031, like kind sales.

- S. 469, introduced by Sens. Max Baucus (D-Mont.) and Chuck Grassley (R-Iowa); and
- H.R. 1576, introduced by Rep. Mike Thompson (D-Calif.) and Dave Camp (R-Mich.), to make the enhanced deduction of donated conservation easements permanent.

- H.R. 4215, introduced by Rep. Artur Davis (D-Ala.) and Ron Lewis (R-Ky.), to update the farm optimal method for paying social security taxes so that farmers and ranchers can remain eligible for social security retirement and disability benefits.

- H.R. 3708, introduced by Reps. Earl Blumenauer (D-Ore.) and Phil English (R-Pa.), to increase the maximum amount of land provided by a conservation easement that can be excluded from estate taxes.

Tax Gap Legislation Supported by Farm Bureau

- S. 777, introduced by Sen. Larry Craig (R-Idaho) and
- H.R. 1023, introduced by Reps. Kendrick Meek (D-Fla.) and Wally Herger (R-Calif.), to repeal the three percent withholding on government payments, which includes many USDA payments made to farmers and ranchers.

Farm Bureau Supported Legislation to Correct IRS Regulations

- H.R. 2659, introduced by Reps. Earl Pomeroy (D-N.D.) and Kenny Hulshof (R-Mo.)
- S. 1155, introduced by Sens. Byron Dorgan (D-N.D.) and Sam Brownback (R-Kan.), to reverse the IRS positionthat self-employment taxes should be paid on Conservation Reserve Program (CRP) payments.

Repeal of Alternative Minimum Tax (AMT)

Farm Bureau supports repealing the Alternative Minimum Tax. Farm Bureau supports enhancing and extending the higher AMT exemption levels and personal tax credits against the AMT that expired at the end of 2006. As long as the AMT is in place, depreciation should be the same for both it and the regular income tax. Farm Bureau supports S. 55, introduced by Sens. Max Baucus (D-Mont.) and Chuck Grassley (R-Iowa) and H.R. 1366, introduced by Rep. Philip English (R-Pa.), to repeal the Alternative Minimum Tax.

Capital Gains Taxes

Under current law, the gain from the sale of long-term capital assets is subject to a maximum tax rate of 15 percent. The rate for individuals in the 10 or 15 percent income tax brackets is 5 percent. The tax will be eliminated for those in the 10 to 15 percent income tax bracket beginning in 2008. The maximum capital gains tax rates will return to 20 percent and 10 percent after 2010. Congressional action is needed to preserve the lower rate structure. Farm Bureau supports H.R. 2312, introduced by Representative Eric Cantor (R-Va.) and S. 502 introduced by Sen. Mike Crapo (R-Idaho), to make permanent capital gains tax rates that are temporarily reduced to a maximum of 15 percent.

Energy Tax Incentives

The Energy Independence and Security Act of 2007 set a course toward greater energy security and environmental sustainability by expanding the Renewable Fuels Standard (RFS) to require 36 billion gallons of renewable fuel be used annually by 2022.  Left unfinished, however, was the extension and expansion of tax incentives to promote existing renewable energy and to encourage the development of new and innovative renewable fuels. Congress should pass long-term extensions of tax incentives for ethanol, cellulosic, biodiesel, wind energy and electricity produced from biomass.

Optional Self-Employment Tax

Farming is one of the most dangerous occupations in the United States because farmers and ranchers are exposed to diverse hazards associated with machinery, chemicals and livestock. The average age of today’s farmer is 55 and for many Social Security will be a significant part of their retirement income.  Current thresholds for paying self-employment taxes using the farm optional method impact Social Security retirement benefits and can preclude some farmers from qualifying for Social Security disability benefits.  Farm Bureau supports increasing thresholds for the self-employment tax farm optional method so that farmers and ranchers can maintain their Social Security disability and retirement benefits. In addition, Farm Bureau supports H.R. 4215 to update the farm optimal method for paying social security taxes. The bipartisan bill is introduced by Reps. Artur Davis (D-Ala.) and Ron Lewis (R-Ky.)

Uniform Trucking Regulations

Legislation (H.R. 3098) has been introduced in the House of Representatives by Reps. Dan Boren (D-Okla.), Robert Aderholt (R-Ala.) and Mary Fallin (R-Okla.) that would assist farmers by updating the Federal Motor Carrier Safety Regulations to permit farmers crossing state boundaries to avail themselves of the 26,001-weight limit when both states recognize this limit. Additionally, the legislation would prohibit the secretary of transportation from withholding grant money from states that do not enforce certain requirements on agricultural producers hauling their own commodities in intrastate commerce. The legislation has been referred to the House Committee on Transportation and Infrastructure.

Three Percent Withholding Tax

Farm Bureau opposes a new three percent withholding tax on government payments for goods and services that is scheduled to begin in 2011.  The withholding tax, which will apply to many USDA payments that farmers and ranchers receive, will be a credit against the recipient’s individual or corporate tax liability. The withholding tax is refundable at the end of the year if taxes withheld are more than taxes due.  Congress should pass H.R. 1023, introduced by Representative Meek (D-Fla.) and Herger (R-Calif.) and S. 777, introduced by Senator Craig (R-Idaho) to repeal the three percent withholding tax.

Self-Employment Taxes and Conservation Reserve Payments

USDA Conservation Reserve Program (CRP) payments should not be subject to self-employment taxes. Farm Bureau supports S. 1155, introduced by Sens. Dorgan (D-N.D.) and Brownback (R-Kan.), and H.R. 2659, introduced by Reps. Earl Pomeroy (D-N.D.) and Kenny Hulshof (R-Mo.) to clarify the CRP payments should not be subject to self-employment taxes.

Strengthening Rural Communities

Elected, civic and business leaders must continue to seek ways to stimulate rural jobs and economic growth to sustain rural communities and the surrounding farms. According to the Congressional Research Service, more than 80 rural development programs are operated by 16 federal agencies. More than half are managed through the Agriculture Department’s (USDA) Rural Development (RD) program as authorized by the farm bill, but they are funded annually through the appropriations process.

Rural Schools

Rural communities depend on their schools to serve many functions beyond their primary mission of educating children. Rural school districts are often major employers in their areas, and rural schools typically serve as the social, recreational and cultural foundations of their communities. Farm Bureau supports the reauthorization of and funding for the Secure Rural Schools and Community Self Determination Reauthorization Act.

-S. 380 would restore funding for the critical “county payments” law by reauthorizing the successful program through 2013. Sen. Ron Wyden (D-Ore.) introduced the bill with Sens. Ted Stevens (R-Alaska), Patty Murray (D-Wash.), Gordon Smith (R-Ore.), Diane Feinstein (D-Calif.), Barbara Boxer (D-Calif.), Maria Cantwell (D-Wash.)  and Jon Tester (D-Mont.). The bill has 17 cosponsors.

-The companion House bill, H.R. 17, introduced by Rep. Peter DeFazio (D-Ore.), has 140 cosponsors.

 Regulatory

Animal Manure – CERCLA & EPCRA

In Jan. 2008, the Environmental Protection Agency released a proposal to administratively exclude livestock operations from reporting requirements for ammonia and hydrogen sulfide emissions under EPCRA. If done properly, this exclusion would help relieve some burden on agricultural operations who handle manure. However, this regulatory action does affect agriculture’s underlying vulnerability to potential CERCLA liability: the proposal would not affect the status of the Oklahoma lawsuit. Farm Bureau will submit public comments on this regulatory proposal.  

Agricultural Biotechnology

Farm Bureau  continues to encourage the U.S. government to develop a comprehensive, coordinated national policy to address the issue of adventitious presence, or the inadvertent, low-level presence of biotech traits in the food or feed supply that have not yet completed full regulatory review requirements. Farm Bureau supports FDA’s release of guidance for early food safety evaluations and EPA’s release of draft guidance for early field trials of biotech products that contain plant-incorporated protectants. These policies help ensure that products under development (in experimental or field trial stage) that are inadvertently found in the food and feed supply do not result in health safety concerns or unnecessary enforcement actions such as food recalls.  USDA-APHIS published a draft programmatic Environmental Impact Statement (EIS) on the review of new biotech crops/traits in order to ensure the environmental and plant safety of new and novel biotech plants. Farm Bureau commented on the draft EIS and will continue to work with USDA-APHIS as it moves towards final publication.

Animal Cloning

The Food and Drug Administration (FDA) released its draft risk assessment on cloned animals which concluded that food from cloned animals is safe from human consumption. However, the USDA continued the voluntary moratorium on cloned animals being placed into the food supply as concerns over marketability of these products are examined. Farm Bureau supported the release of the risk assessment and will continue to work with the FDA and the USDA as this process continues. Currently, several countries are evaluating the safety of cloning technology and most have concluded that animal cloning poses no threat to human health.

Concentrated Animal Feeding Operation (CAFO)

The Environmental Protection Agency (EPA) is currently revising its 2003 concentrated animal feeding operations  (CAFO) rules to conform to the ruling of the 2nd Circuit U.S. Court of Appeals in Waterkeeper v. EPA (Feb. 28, 2005). Farm Bureau is seeking clarity of the regulatory obligations of livestock operations and encourages EPA to limit its rulemaking to the issues addressed by the court.