July 27, 2012 NATIONAL NEWS Possible extension of the 2008 farm bill in the works House Republican leaders are considering a one-year extension of certain farm and nutrition programs. The short term extension is gathering bi-partisan support and includes disaster aid for drought afflicted farmers. The extension could come up for a vote next week before the recess.It does not appear to be a straight forward extension of all programs and the drought assistance would need to find funding. One possible source of funding would be a cut to direct payments. While a House extension could hinder the passage of a new farm bill, Senate Agriculture Chairman Debbie Stabenow has indicated that she would seek to move to the conference committee stage if the House passes an extension. This move could preempt a floor vote of House’s FARRM bill and possibly complete work on the 2012 farm bill before the September expiration date.
Tax cut bill advances in Senate, does not include estate tax revision The Senate voted 51-48 to pass S. 3412, the Middle Class Tax Cut Act, introduced by Sen. Harry Reid (D-Nev.) this week. Farm Bureau opposed the bill. Only a simple majority was needed for passage due to an agreement reached between the two parties. The bill would extend the 01-03 tax cuts (Bush tax cuts) for taxpayers making under $250,000/couple or $200,000/individual, except for the estate tax on which the bill is silent. Because the bill does not contain estate tax language, the exemption would shrink from $5 million to $1 million per person on Jan. 1 and the top rate will increase from 35 to 55 percent. Capital gains tax rates will increase from 15 percent to 20 percent for taxpayers over the income threshold. The Farm Bureau-supported alternative amendment, S. 3413, the Tax Hike Prevention Act of 2012, failed 45-54. Sen. Mark Pryor (D-Ark.) was the only Democrat to support the amendment. The Hatch-McConnell provision would have extended the 01-03 tax cuts for all taxpayers for one year and contained instructions for passing fundamental tax reform. Under this proposal, the estate tax exemption would remain at $5 million per person, the top rate would stay at 35 percent and a surviving spouse would be able to claim any exemption amount unused by a deceased spouse. Farm Bureau supports a full repeal of estate taxes. Arkansas Farm Bureau sent a letter of support for S. 3413 to Sens. Boozman and Pryor. Since the Senate bill does not include estate reform, Sen. Pryor has partnered with Sen. McCaskill (D – MO) and Sen. Tester (D-MT) on S.3440 which would extend current estate tax rates through 2013. The House will not take up the Senate-passed bill and, instead, will vote next week on H.R. 8, the Job Protection and Recession Prevention Act of 2012, which is the companion bill to the defeated Hatch-McConnell S. 3413. Farm Bureau supports passage of H.R. 8.
Farm fuel measure approved by House transportation panel The House Transportation and Infrastructure Committee by voice vote approved an amended bill (HR 3158) proposed by Rep. Rick Crawford that would direct the Environmental Protection Agency administrator to raise exemption levels for a single fuel container at any farm from 1,320 gallons to 10,000 gallons.