A report from the Washington office of the American Soybean Association
A
s America's soybean farmers round out what has been a year of record drought, record prices, impasse on Capitol Hill and new opportunities abroad, the American Soybean Association continues our work in Washington and nationwide to create an environment in which farmers can remain profitable in the face of myriad challenges. It certainly hasn't been easy, and the gridlock in Washington is a real barrier to our progress. There are, however, certain reasons for optimism as we look at the busy waning days of the 112th Congress and beyond. As we speak, Congress is engaged in a back-and-forth over the fiscal cliff, and it bears repeating that agriculture remains the only industry that as a whole has come to the table with a concrete number for what we're willing to give up in terms of deficit reduction. We continue to support a comprehensive approach to reducing federal deficits, but we will fight to ensure that disproportionate reductions in agriculture programs are not made. While the fiscal cliff dominates most national political conversations, the unresolved farm bill currently provides the most heartburn for agriculture. With the 2008 Farm Bill expired, the need for action on a new bill is at a critical stage. If the 112th Congress does not finish the farm bill, the 113th will need to start from scratch, representing the first time that a Congress has failed to pass a new farm bill. ASA continues to call on farmers in New York and across the country to remind their members of Congress of the consequences of not passing a bill.
This year has also been a big one for biotechnology. ASA and many in the industry paid close attention to California this election season, where voters decided against Prop 37, legislation that would have required labels on all foods containing biotech ingredients. ASA worked with the No on 37 campaign to defeat the ballot initiative, which would have provided misleading information to consumers, increased food costs, spawned frivolous lawsuits against farmers, and seriously threatened the public's confidence in the safety of food products. With regard to biodiesel, we are still without a long-term extension of the biodiesel tax incentive. ASA did, however, succeed in seeing the Renewable Fuel Standard volume requirement raised to 1.28 billion gallons in 2013, following record production last in 2011. Finally, ASA's work on trade saw new trade agreements enacted with South Korea, Colombia and Panama, as well as discussions of a free trade agreement with the European Union and the inclusion of Japan in the Trans Pacific Partnership. Currently, the Senate stands ready to pass a bill that would establish permanent normal trade relations with Russia, the world's ninth largest economy. Russia is a leading export market for U.S., meat, poultry, egg and dairy products, importing more than $770 million in these products last year. As we move into 2013, ASA remains committed to working with Republicans, Democrats and the Obama Administration to craft policies that work for America's soybean farmers, and we look forward to working with the New York Corn and Soybean Growers Association and farmers across the Empire State to ensure that those policies fit your needs as well.
Another issue of huge importance to ASA is the need for relief on the estate tax. If Congress does not provide a before 2013, the estate tax exemption will drop to from $5 million $1 million and the top tax rate will increase to from 35 percent to 55 percent. Given the land-based and capital-intensive nature of farm operations, farm families in New York and nationwide need an estate tax solution that takes into account how we operate. ASA supports keeping the current exemption at $5 million per person and retaining the top rate of 35 percent, indexing the exemption to inflation, providing for spousal transfers, and including the stepped-up basis. Within the transportation sector, we are seeing a dire situation emerge down the Mississippi River in Missouri and Illinois. Water levels between St. Louis and Cairo, Ill., have become so dangerously low that they threaten the continued operation of our industry's most-utilized inland waterway. ASA has encouraged the administration to declare a state of emergency and take immediate action to ensure the uninterrupted flow of river commerce. While it may not have a direct impact on farmers in the Empire State, an interruption in such a vital commercial waterway will have ramifications for all of agriculture.
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New York Corn and Soybean Association • Winter 2012 • Page 3 - Section B
A Busy 2012 for Soybean Farmers on Capitol Hill