The Hagstrom Report

Agriculture News As It Happens

Navigation

No signs of future compromise in reactions to farm bill extension

Agriculture, renewable fuels and conservation groups have issued a wide range of reactions to the American Taxpayer Relief Act of 2012, which included an extension of most of the 2008 farm bill through September 30.

Many groups devoted as much attention to the tax measures in the bill as they did to the farm bill.

But no group included any indications of compromise on the issues that have divided them, or any comment on a path forward that would be more likely to produce a farm bill in 2013 than the process did in 2012.

Following are highlights of their statements.

Farm groups



American Farm Bureau Federation


Bob Stallman
Bob Stallman, president of the nation’s largest farm group, said that the fiscal cliff package was “a major accomplishment” because it restored the $5 million exemption level for the estate tax.

But the Republican-leaning group added, “On the minus side, the top estate tax rate increased from 35 percent to 40 percent. Permanent capital gains tax provisions that retain lower rates was a positive point, as was the inclusion of enhanced expensing provisions for businesses.”

“Extension of the 2008 farm bill, however, is little more than a stop-gap measure,” Stallman said.

“We are glad that a measure is in place for most of this year, but we are disappointed that Congress was unable or unwilling to roll a comprehensive five-year farm bill proposal into the fiscal cliff package. Now, it will be up to the new 113th Congress to put a new farm bill in place, and we will continue to insist on the kind of reforms that were included in the proposals approved by the Senate and the House Agriculture Committee during the 112th Congress.”

Stallman also said its members want more spending cuts, but did not specify them.

National Farmers Union


Roger Johnson
“Once again, Congress has left rural America out in the cold,” said Roger Johnson, president of the Democratic-leaning NFU.

“An extension represents a short-sighted, temporary fix that ultimately provides inadequate solutions that will leave our farmers and ranchers crippled by uncertainty,” Johnson said.

“The legislation that passed fails to provide disaster aid for farmers or necessary support for our dairy industry, yet continues unjustifiable direct payments. The bill also does not provide mandatory funding for the energy title, specialty crops and organic provisions, and new important programs for beginning farmers and ranchers.”

National Sustainable Agriculture Coalition


Ferd Hoefner
Ferd Hoefner, policy director of the National Sustainable Agriculture Coalition, called the farm bill extension that passed “awful.”

Hoefner said the only positive to the bill is that it does allow USDA to restart programs that have ongoing baseline funding but that have, since October 1, lacked authority to spend the money.

This includes programs such as the Wetlands Reserve Program and the Grassland Reserve Program that have “a modest amount of funding left over from the 2008 farm bill,” as well as the Seniors Farmers Market Nutrition Program and the Specialty Crop Block Grant program that have permanent funding, but that for the past three months have not had spending authority, he noted.

But Hoefner also noted that the negotiators “disposed of programs for new farmers, minority farmers, healthy food markets, rural job programs, renewable energy, specialty crop and organic research, and organic farming and “ protected every last red cent of direct commodity subsidies.”

Senate Majority Leader Mitch McConnell, R-Ky. proposed returning to the Milk Income Loss Contract program, “but at the low rates of protection that existed in September 2012 rather than the higher rates from pre-September, a proposal that raised howls of protest from dairy state Senators,’ Hoefner said.

“In the end, they went with MILC at the higher rates, a decent compromise given the hour and need to do something to keep permanent law from kicking in,” Hoefner said.

Unlike other ag leaders, Hoefner, who represents small, environmentally-oriented farmers who are worried about the availability of land, spoke out against the estate tax plan.

“The estate tax deal came out at the highest and worst possible level — $10 million per couple tax free (in addition to tax free annual gifting amounts), indexed for inflation,” he said.

“This is now permanent law and will be very difficult to change in the future, and it is a disaster for the structure of agriculture,” he said. “Over time it will further concentrate land holding, raise land prices, and put an even tighter squeeze on new farmers trying to break into agriculture.”

Renewable fuels groups



Agriculture Energy Coalition


The AgEC, a consortium of organizations and companies representing renewable energy, energy efficiency and bioproducts stakeholders, expressed “deep disappointment that the extension excluded funding for energy title programs in the farm bill.”

“Farm bill energy programs, such as the Rural Energy for America Program (REAP), Biomass Crop Assistance Program (BCAP), Biorefinery Assistance Program (BAP) and Biobased Markets Program (Biopreferred) have helped to revitalize rural America, develop new agricultural markets, and reduce the need for direct payments to farmers,” the group said.

“These programs have unlocked private capital for construction of the nation’s first cellulosic and advanced biofuel biorefineries; put more than 150,000 acres of underutilized farmland in more than 150 counties into production raising next generation energy crops; and driven innovation in the renewable chemicals sector,” the group added.

Biotechnology Industry Organization


Brent Erickson
The Biotechnology Industry Organization thanked Congress for including extensions and modifications of the second generation biofuel producer credit and the special allowance for second generation biofuel plant property.

BIO said the measure will provide incentives to invest in cellulosic and algae biofuel production by renewing a $1.01 per gallon tax credit for producers and accelerated depreciation for new facilities during 2013 and modifying these credits to include algae.
“We thank Congress for extending the producer tax credit and bonus depreciation and enabling algae producers to qualify,” said Brent Erickson, executive vice president of BIO’s Industrial and Environmental Section.

“Stability in such policies is crucial to maintaining private investment,” he said. “We hope to work with Congress in the coming year to extend and maintain additional policies that support this innovation, such as a strong energy title in any upcoming farm bill, and the renewable fuel standard.”

Growth Energy


Tom Buis
Tom Buis, CEO of Growth Energy, commended Congress for extending the cellulosic producer tax credit and the alternative fuel infrastructure tax credit through 2013.

“Congress has taken a critical step to bring E15 to the marketplace, providing a choice and savings to the consumer,” Buis said. “Furthermore, this provision will help decrease our addiction to foreign oil and help the renewable fuels industry break through the blend wall.”

But he added, “However, while these extensions were important for sustained development in the biofuels industry, by only extending them for one year, Congress failed to provide the necessary certainty for investors and businesses to plan for the long term, which is imperative for continued stability and growth.”

Buis also noted that the bill did not include funding for the ethanol infrastructure development under REAP and second-generation production under BCAP and the Biorefinery Assistance Program and urged Congress to “revisit these provisions.”

National Biodiesel Board


Anne Steckel
The National Biodiesel Board applauded the reinstatement of the biodiesel tax incentive for 2012 and 2013.

“It’s been a long year with a lot of missed opportunity and lost jobs in the biodiesel industry,” said Anne Steckel, vice president of federal affairs at the National Biodiesel Board. “But we’re pleased that Congress has finally approved an extension so that we can get production back on track.”

“This is not an abstract issue. In the coming months, because of this decision, we’ll begin to see real economic impacts with companies expanding production and hiring new employees.”

The biodiesel tax incentive expired on Dec. 31, 2011

Renewable Fuels Association


Bob Dinneen
RFA President Bob Dinneen said that the one-year extension of the cellulosic producer tax credit and accelerated depreciation “provides some measure of certainty to ensure that 2013 will be a year of growth and milestones for the advanced ethanol industry.”

“In addition, and equally significant, is the extension of the alternative fuel infrastructure tax credit which will accelerate E15’s entry into the marketplace this coming year,” Dineen said. “The extension of these important provisions demonstrates the Obama Administration’s stalwart support of biofuels and Congress’s belief in the promise of energy independence and job creation through domestic renewable energy resources.”

Dairy



The International Dairy Foods Association


Connie Tipton
IDFA, which represents dairy processors, was the only agriculture group to congratulate Congress and President Barack Obama on the bill.

“We appreciate that the bill includes provisions that will avoid the resurrection of dairy policies from more than 50 years ago,” IDFA President and CEO Connie Tipton said. “This agreement allows Congress time to fully and openly consider future reforms to our nation's dairy policies.”

IDFA said that it would continue to support a dairy bill introduced by Reps. Bob Goodlatte, R-Va., and David Scott, D-Ga.

National Milk Producers Federation


Jerry Kozak
Jerry Kozak, the president and CEO of National Milk, called the dairy provisions “a devastating blow to the nation's dairy farmers” even though it extended the Milk Income Loss Contract program through September 30 and the price support program through December 31.

In a subsequent news release, the dairy farmer group committed itself to enactment of the Dairy Security Act.

“We need to spend the coming months figuring out how to move farm policy forward. The status quo is not an acceptable outcome, either for farmers or taxpayers. The renewal of current programs doesn’t offer dairy farmers a meaningful safety net,” Kozak said.

Commodity groups



The American Soybean Association


Danny Murphy
ASA President Danny Murphy praised Congress and President Barack Obama for including the biodiesel tax incentive and the estate tax provision.

“These have been two of ASA’s foremost priorities in recent years, and soybean farmers stand to benefit significantly from the stability and certainty created by these provisions,” Murphy, a Canton, Miss.-farmer, said in a news release.

Murphy addressed the farm bill extension in a separate news release.

“While the extension is certainly preferable to the alternative of no bill at all, and prevents outdated permanent agricultural law enacted in the 1930s and 1940s from going into effect, it is only a stopgap measure, which does not provide the long-term certainty and stability that farmers need,” said Murphy, a soybean farmer from Canton, Miss.

“Once the extension expires at the end of the fiscal year in September, we will be left at the same impasse we’ve had since the House Agriculture Committee passed its farm bill in July, unless our elected leaders can find a way to come back to the bargaining table with a renewed focus on what’s important, not just for soybean farmers, but for all of agriculture and for the nation as a whole,” he said.

“It’s imperative that our members of Congress in both chambers and in both parties move past party politics and get the job done this time.”

National Association of Wheat Growers


Erik Younggren
NAWG President Erik Younggren, a wheat, soybean and sugar beet farmer from Hallock, Minn., said his group is pleased by the tax changes, but that extension of the 2008 farm bill “is not ideal,” and that the implications of the postponed automatic spending cuts are problematic.

“It is of the utmost urgency to our farmer-members that members of the 113th Congress reauthorize a new farm bill expeditiously,” Younggren said.


National Corn Growers Association


Pam Johnson
“America’s farmers have clearly made known the importance and need of a new farm bill in 2012,” NCGA President Pam Johnson said in a statement.

“Once again, Congress’ failure to act pushes agriculture aside hampering farmers’ ability to make sound business decisions for the next five years,” Johnson said.

“The National Corn Growers Association is tired of the endless excuses and lack of accountability. The system is clearly broken. We hope the 113th Congress proves to be more fruitful and that the leaders in Congress can place petty partisanship aside to create a bill that benefits all of America.”

National Cotton Council


Mark Lange
By passing an extension, Congress did not act on a new cotton program designed to address the World Trade Organization decision in a case brought by Brazil that the U.S. cotton program has violated its standards.

The National Cotton Council did not mention that issue in its statement, but this week NCC CEO Mark Lange said that Brazil has signalled that the new cotton program in the Senate- and House Agriculture Committee-passed bills “could work” but that Brazil will not accept either a reference or target price for cotton.

The group commended the leaders of the agriculture committees and Cotton Belt senators and representatives for their “unwavering efforts to enact predictable farm policy in a timely manner for the 2013 crop year and beyond.” Many members also grow rice or peanuts, and had been sympathetic to the rice and peanut growers’ complaints about the Senate version of the farm bill.

“The industry looks forward to continuing to work for prompt enactment of balanced long-term policy that is fiscally responsible, consistent with U.S. trade obligations and provides certainty for farmers, consumers, agribusinesses and rural communities,” the council said.

The cotton industry also noted that it “welcomes the action of Congress in reforming the estate tax to lessen the devastating economic impact it can have on farm families who want to continue producing food and fiber in future generations.”

Southern Peanut Farmers Federation


“Peanut producers appreciate the hard work of congressional leaders to assure that tax policy impacting agriculture and farm policy important to peanut producers’ 2013 crop has been finalized,” said the federation, which represents 80 percent of U.S. peanut production.

“House Agriculture Committee leadership and peanut state senators have been diligent in their efforts to assure peanut producers a cost efficient, sound farm policy and consumers a stable and safe food supply. It is critical that Congress address a full five-year farm bill as soon as practical.”

Specialty Crop Farm Bill Alliance


Mike Stuart,
The alliance, which represents growers of fruits, vegetables, dried fruit, tree nuts, nursery plants and other products, noted that the bill “averted the dreaded fiscal cliff,” but that the farm bill extension does not include funding for the Specialty Crop Research Initiative and Clean Plant Network.“It’s disappointing, to say the least,” said Mike Stuart, Florida Fruit & Vegetable Association president and co-chair of the alliance.

“We had worked very hard with key members in the House and Senate to craft a farm bill that was fiscally responsible and gave producers resources, such as research funding for pest and disease programs, that they need to remain competitive and to ensure a safe, healthful supply of fruits and vegetables,” Stuart said.

“While we are frustrated, we look forward to working with both committees and the dozens of members of Congress who helped complete the 2012 farm bill,” said John Keeling, National Potato Council executive vice president and CEO, and alliance co-chair.

United Fresh Produce Association


Robert Guenther
“We are disappointed in the outcome of the farm bill extension through the fiscal cliff package,” said Robert Guenther, senior vice president of public policy for the produce trade association.

“Several important specialty crop programs including much needed research targeted at specialty crops were left on the table without funding in this extension, leaving uncertainty for ongoing research around food safety, nutrition, and production practices,” he said.

“However, we believe a strong framework was built in the House Agriculture Committee and Senate on their 2012 Farm Bill proposals and we look forward to working with the new Congress to build on these proposals over the next several months.”

USA Rice Federation


Linda Raun
The USA Rice Federation has praised the passage of the American Taxpayer Relief Act of 2012, which included an extension of most of the 2008 farm bill through September 30.

The federation, whose members really disliked giving up the direct payments program and which fought hard for continuation of a target price program, said that “in the absence of a new farm bill, the continuation of the direct payment program and the market access and promotion programs are of critical importance to the rice industry.”

“We are grateful to the leadership of the House and Senate agriculture committees for their work on the farm bill and on this extension,” USA Rice Producers’ Group chairman and Texas rice producer Linda Raun said.

“We particularly wish to extend our gratitude to Chairman Frank Lucas, R-Okla., and Congressman Collin Peterson, D-Minn., for their unwavering support to ensure that farm policy works for America’s rice farmers. With the steadfast support from these House leaders, Senate Ag Committee members John Boozman, R-Ark., Thad Cochran, R-Miss. and Saxby Chambliss, R-Ga., and all rice state lawmakers, we believe that America’s rice farmers and industry will continue to contribute to the economic and environmental well-being of our country.”

Environmental Groups



Environmental Working Group


Craig Cox
Craig Cox, the EWG vice president for agriculture and natural resources, called the nine-month extension “marginally better than a deeply flawed five-year farm bill,” but added that “this short-term Band-Aid is not good public policy.”

“A responsible measure would have cut direct payments and insurance subsidies and fully funded important conservation programs,” Cox said. “It is critical that Congress craft a farm bill this year that supports family farmers and protects the environment.”

“This latest deal underscores for the good food movement why organizations like Food Policy Action are so important to the task of expanding federal government support for innovative food and agriculture policies,” he said. “Without significant pressure on Congress and the White House, we can be sure that efforts to improve access to healthy food and reduce dangerous chemicals in the environment will fail.”

National Association of Conservation Districts


Gene Schmidt
NACD President Gene Schmidt noted that the fiscal cliff bill did not address deficit reduction, while the Senate and House Agriculture Committee-passed farm bills would have.

“It is extremely unfortunate that farmers and landowners will be left without the certainty of a five-year policy and the assistance of critical programs to protect America’s land, air and water and to ensure proactive planning for a sustainable food, fiber and fuel supply for the future,” Schmidt said.

He referred to the efforts of Senate Agriculture Committee Chairman Debbie Stabenow, D-Mich., and House Agriculture Committee Chairman Frank Lucas, R-Okla., to come up with a bipartisan solution.

“When Chairwoman Stabenow and Chairman Lucas saw the writing on the wall during the ‘fiscal cliff’ negotiations, they worked together to form a 78-page thoughtful farm bill extension, tailored to the needs of the landscape,” Schmidt said.

“However, their work was disregarded in this deal, just as the 2012 farm bill was never given the opportunity to come to the House floor. In a time of tremendous drought in the West and hurricane damage in the East, the $850 million in disaster aid included in the extension plan agreed to by Senate and House Agriculture Committee Leadership was not included in this deal.”

National Wildlife Federation


Julie Sibbing
Julie Sibbing, director of agriculture of agriculture and forestry programs, noted that the extension prevents farmers from enrolling in the Conservation Stewardship Program and lacks funding for renewable energy programs and delays the implementation of the “sodsaver” policy that would reduce federal subsidies for farmers who convert native grassland into cropland.

“By delaying the implementation of sodsaver, Congress is allowing thousands more grassland acres to be converted for short term gain, destroying vital habitat for grassland birds and other wildlife,” Sibbing said.

The Union of Concerned Scientists


Justin Tatham
Justin Tatham, senior Washington representative for UCS’s Food & Environment Program, called the farm bill extension “a disgrace.”

“For half a year, the Senate and House debated versions of new farm bill that would have made some progress toward eliminating subsidies for Big Ag and shifting incentives to healthy food and smart, sustainable farming practices,” Tatham said.

“But Republican leadership copped out at the last second. Support for healthy farms became agricultural runoff, while massive commodity subsidies remain in place. Incentives for fruit and vegetable production and much-needed programs that protect our air, water, and soil will now lose funding.

“The farm bill extension is a blow to farmers who want to grow healthy foods and the consumers who want to buy them,” he said. “Real farm bill reform can’t wait for the new September deadline. The incoming Congress owes it to farmers and consumers to start immediately on a new five year farm bill.”