CFB ALERT – Support Ag Sales Tax Exemption

This week the Colorado House of Representatives will consider HB 1005.

HB 1005 repeals  HB 1195, signed into law in 2010, which suspended the exemption on state sales and use taxes imposed on certain items, Ag compounds and pesticides, used in agricultural production from the period March 1, 2010, through June 30, 2013.

Repeal of HB 1195 will bring much needed tax relief to Colorado’s farmers and ranchers.  Please call your House member today and urge them to support HB 1005.  If HB 1005 is not signed into law, then Colorado farmers and ranchers will be stuck paying sales tax for their inputs, which will put them at a disadvantage to surrounding states.

Your members phone number can be found here.

Washington Recap

The U.S. Senate passed a three-week spending measure on Thursday to keep the government running through April 8. This measure contained about $6 billion in cuts to the federal budget.

The House Committee on Agriculture, House Committee on Natural Resources and the House Energy and Commerce Committee all held hearing looking at the impact of EPA regulations and restrictions on energy production.  These hearings brought great scrutiny on EPA.  Since the beginning of the 112^th Congress EPA has continually been on the oversight hotseat.

The Senate Environment and Public Works Committee also held hearings on energy production.  They looked specifically at the impact the recent Deepwater Horizon blowout.  This blowout is being used by the administration to block new drilling permits.

 

State Legislative Update

HB 1123 prohibits financial transfers from severance related funds unto the general fund. This bill has successfully passed the House and will head to the Senate State Affairs Committee. It is being sponsored by Rep. Coram and Sen. Roberts. CFB is supportive.

Another Short Term Extension for the Federal Government

Ove the past few weeks you have seen information regarding the federal budget, CR’s and what is likely to happen.  With the last CR extension about to run out last Friday, House Appropriations Committee Chairman Hal Rogers (R-Ky.) introduced H.J. Res. 48, a continuing resolution (CR) to fund the federal government for an additional three weeks, until April 8.  The current CR expires on Mar. 18.  The bill will be on the House floor this week.

State Legislative update

Bills moving forward….. as we are getting to the half way point of the Colorado 2011 Legislative Session. To date there has been 273 House Bills and 185 Senate Bills plus a handful of Resolutions introduced. That is about 80 or so bills less than there was at this time last session. Many would credit this to a Republican House and Democrat Senate, the split makes it more difficult for controversial measure to move forward.

House Ag Committee Hearings

Today I received the follow notice for hearing to be held by the House Agriculutre Committee.

WASHINGTON – Today, the U.S. House of Representatives Committee on Agriculture announced the following committee schedule.

EPA Announces SPCC Workshops

The past couple weeks I have received calls from CFB members about EPA’s SPCC program.  This program is aimed at reducing oil spills and controlling them if they do happen.  Depending on how much oil and oil products you store on your farm, this regulations may affect you directly.

The EPA, NPDES pemits, pesticides and you

This winter as you have talked with your friends I am sure that the EPA somehow entered the conversation. Be it spray nozzle regulations, attempts to regulate dust, making sure that water is safe from spilled milk or generally just being a pain and hassle, the EPA seems to be everywhere. 

Latest on Possible Government Shutdown

Last week I wrote a piece on The Pulse about a possible government shutdown, this Friday will see the end of the current continuing resolution (CR) that the federal government is currently working under.  If Congress is unable to come to terms on another CR by 11:59pm on Friday the government will shut down for lack of funding.  That being said, the latest news from Washington, DC says that a short, 2 week CR is in the works to prevent a government shutdown.

Committee to Hold Oversight Hearing on Interior Department

Today I received the following notice, located below, from the House Natural Resources Committee. This issue is one of great inportance to CFB members because this order basically decalres Congress null and void when determining what is wilderness.

Notes From the House Ag Committee Hearing

HB 1150 - Rep. Becker’s Concerning additional revenues for water storage projects bill was PI’d (LOST) in Committee on Monday. Rep. Becker had worked out an agreement with DNR and been in communication with Rep. Sonnenberg to see this deal through, that if Rep. Becker pulled the bill DNR would require that DOW designate funds in their five year master plan to be specifically for water projects. They are to designate ~$6 Million over the next five years. With much heated opposition on this measure, this was believed to be the best option. Farm Bureau is proud of the work Rep. Becker has done to work to make water storage projects a priority.

The Federal Budget, the CR, and You

Potential Government Shutdown Could Affect Producers

It is strongly advised that if you need to do business with an FSA office, BLM office or any other federal government office, do it before March 4.

As you no doubt have heard the House of Representatives spent the majority of last week debating what is known as a Continuing Resolution.  Continuing Resolutions, or CR’s as they are known in Washington, DC speak, are short term budget measures used to fund the federal government while Congress debates a budget.  Shortly before the end to the 111^th Congress passed CR until March 4^th.

If by 11:59pm on March 4^th Congress has not passed and the president has not signed either a budget or a CR then the federal government will shut down.  While no one wants this to happen, but it looks like there is a real possibility of it happening.  The last government shutdown occurred in 1995.

Some of you will be saying that a shutdown of the government is not such a bad thing.  But,  if the government shuts down, that will mean the FSA offices, BLM offices and any other federal office will not be able to do business.

Hopefully we will not see a government shutdown, but the best advice I can give is to plan as if it is going to happen.

Washington Recap

The House of Representatives:

House Floor:

The House spent the majority of the week considering amendments to H.R. 1, the Continuing Resolutions Act of 2011.  This measure would fund the United States government until later in 2011 when the FY2012 federal budget is considered.  At the time of writing this, a final vote had not been taken.  The amendment process saw over 500 amendments for the House to work through.  I hope to have the status of amendments of interest to Colorado Farm Bureau members sorted out and if they passed or failed soon.

Budget Day!

President Obama is set to release his $3.73-trillion, 216-page budget for FY 2012 today at 10:30 a.m. est.

For the current year, the White House projects a $1.6 trillion deficit. Outlays would drop in 2012 and stabilize in the $3.7 trillion range as deficits fall to $1.1 trillion in 2012 and then $768 billion in 2013.

***Update***

President’s Budget Ends Payments to Top-Earning Farmers

In his fiscal 2012 budget plan released today, President Barack Obama proposed eliminating federal farm payments to U.S. farmers with the highest adjusted gross incomes (AGI). President Obama argued that under the current system, payments distort the farm sector and some farmers are paid even when no crops are grown.

Washington D.C. Recap

This week was a light week in Washington, DC because of CPAC holding their annual meeting.

House of Representatives:

House Floor:

The House met for 2 days this week.  The House began debate on extending expiring provision of the USAPatriot Act.

Colorado Farm Bureau President Don Shawcroft Statement Regarding the 2011 State of the Union Address

“Tonight President Obama laid out an ambitious agenda for the 112th Congress.  The topics included the need for increased science and math curriculum, increased use of biofuels and clean energy, relief from Section 1099 of the Healthcare Reform bill, pushing trade deals with South Korea, Panama and Colombia and reducing the burden of government regulation.

“The Colorado Farm Bureau is pleased to hear President Obama address the pending trade agreements with Korea, Colombia and Panama.  These trade agreements have been languishing for a number of years and they will be good for Colorado Farm Bureau members and American consumers. Trade agreements that cut tariffs and remove restrictions on Colorado products are always welcome.

“Furthermore, removing Section 1099 of the Healthcare Reform bill will ease the burden on farmers and agriculture related businesses. Section 1099 will have Farm Bureau members tracking the cost of a morning cup of coffee and donut and that is ridiculous.

Colorado Farm Bureau is looking forward to working with the members of the Colorado congressional delegation to implement these positive steps proposed by President Obama.”

Colorado House Ag Committee Recap

House Ag Committee met on Monday, January 24th, to address its first three bills under the new chairman Rep. Jerry Sonnenberg (R-Sterling) and vice chairman Rep. Randy Baumgardner (R-Hot Sulfur Springs). They welcomed many new committee members as the Republicans hold a 7-6 majority over the Democrats.

They passed HB 1004 (Farm Truck Registration) which CFB has a position of support on. This bill would allow for farm plate registration on a vehicle used primarily for agriculture on farm or ranch that is classified as Ag land for property tax purposes. It was run last year and was failed, so this is the second attempt at this measure.

Washington Recap

Action was light in Washington, DC for the week of January 17th.  The only major action taken in either chamber was in the House of Representatives, who voted for repeal of Obamacare by a vote of 245-189.  As was expected the Colorado House delegation was split with Congressmen Lamborn, Coffman, Gardner and Tipton voting in support of repeal and Congressmen Polis, Perlmutter and DeGette voting to oppose repeal.

Formal committee action has not begun in either chamber of the Congress do to slowness in each chamber of getting committee assignments to members.  Congressional representatives Gardner and Tipton have received their committee assignments however.  Congressman Gardner has been appointed to the prestigious and powerful Energy and Commerce committee.  Congressman Tipton has been appointed to the House Committee on Agriculture and the House Committee on Natural Resources, where he will serve with fellow Colorado representatives Lamborn and Coffman.

Call Today, Tax extenders in the House!!!!

Senate Tax extenders in the House!!!!!!!!!! 

Today, December 15, 2010 the Senate passed the tax extenders bill by a vote of 81-19.  The House is projected to begin consideration of this legislation tomorrow, December 16.  

The Senate version of the tax extenders bill contains reforms to the estate tax.  The Senate language would tax families at 35 percent on property worth over $5 million.  If the estate tax issue is not dealt with before January 1, 2011, the estate tax will revert to its original form of a tax rate of 55% on property worth over $1 million.  The 35% rate in the Senate language is making some members of the House think the estate tax is too expensive and should be amended to a 45 percent tax rate on estates worth more than $3.5 million. 

 Colorado Farm Bureau is in strong support of the estate tax provision as passed by the Senate. 

What you need to do is call your representative IMMEDIATELY!  The main Capitol switchboard is 202-224-3121 and they can transfer you to your representative’s office.  Urge your representative to support the estate language as passed by the Senate. Agriculture cannot afford for Congress to play political games with the estate tax issue.  The House needs to accept the Senate estate tax language and pass the bill before adjourning for the year.  

Colorado Representatives: 

Diana DeGette-1^st Congressional district

Jared Polis- 2^nd Congressional district

John Salazar- 3^rd Congressional district

Besty Markey- 4^th Congressional district

Doug Lamborn- 5^th Congressional district

Mike Coffman- 6^th Congressional district

Ed Perlmutter- 7^th Congressional district

Washington Update

There have been many moving parts in Washington, DC this week between a Continuing Resolution, Food Safety and extending the Bush tax cuts.

Continuing Resolution and Food Safety

Per this current fiscal year, none of the twelve FY 2011 spending bills have been enacted by Congress. As such a continuing resolution was introduced earlier this week.  A continuing resolution (CR) is legislation that is used to continue to fund the United States government when regular spending bills do not get passed.

Washington Recap

I wanted to fill you in on two issues that have had recent action taken on them in Washington, DC.

First is the Food Safety bill.

The House will not take up S. 510 (the bill that passed the Senate on Tuesday) because of certain revenue provisions contained in the bill.  Sec. 107 authorizes revenue-generating fees for select recalls, re-inspections and imports which were not in the House-passed bill (H.R. 2749). The Constitution stipulates that all revenue provisions must originate in the House.  Consequently, House leadership has “blue-slipped” the bill, preventing its consideration until the revenue issues are resolved.

Since the schedule for the lame-duck session is uncertain, it is unclear whether Congress will have time to work out the procedural complexities.  A path to send S. 510, or some version of it, to the President’s desk for enactment has not yet been determined by House and Senate leaders.

The second issue is taxes.

Congress Back for Lame-Duck Session

Lawmakers return to Capitol Hill today for round two of the lame-duck session of Congress, with some talk that the work won’t be complete until the week of Christmas. High on the agenda: fiscal year 2011 spending, expiring 2001 and 2003 tax cuts, tax incentives (including those for biofuels), the food safety bill and expiring unemployment benefits.

Let’s look at each of these to-do measures, one at a time.

HSUS, Campaigns, and You

If you haven’t heard, the state of Missouri passed Proposition B by a vote of 51.6 % to 48.4%.  This measure was aimed at bringing increased regulation to commercial dog breeders and was heavily supported by HSUS.

The fact that HSUS supported Prop B is not a big story.  They will support almost anything that restricts people’s ability to raise animals.  What is surprising, and telling, is the voting breakdown.  Prop B was carried in Missouri with the support of only 13 counties.  Missouri has 114 counties plus 1 independent city.  What does this mean?  It means that HSUS successfully campaigned in 13 counties in Missouri and was unsuccessful in 111.  Why is this important?  It is important because these 13 counties were in the Kansas City metro area, the St. Louis metro area and the Boot Hill region.  These areas represent the major population centers that are non-agriculture.  This outcome is akin to running a ballot initiative in Colorado and only needing Denver to win.

Washington Recap and Forecast

After a longer than usually August recess Congress reconvened the 2nd week of September. As is normal in an election year, Congress has not handled major policy. Instead it is focusing on smaller, noncontroversial bills which members can campaign on. With the election right around the corner (November 2nd is Election Day) this looks like the last week Congress will be in session before going back into recess to allow members to campaign. Here is a quick recap of what happened in Washington the week of September 20.

DC Recap

House of Representatives:

House floor:

The House of Representatives adjourned on Friday, June 30 for August recess. With Senate passage of the H.R. 1586, the House will reconvene on August 10, 2010 for a short duration to consider amendments made by the Senate to H.R. 1586.

House committee:

No House committees met for the week of August 2.

Washington D.C. Recap

House of Representatives:

House Floor:

H.R. 3534-the Cutting Loose Energy and Resources Act. H.R. 3534 puts the 9.2 million jobs supported by American oil and natural gas at risk by raising taxes, blocking American energy development, continuing a moratorium on deepwater drilling and completely eliminating economic liability caps.  The Congressional Budget Office (CBO) estimates that enacting this legislation would increase spending by $20.5 billion over ten years and would increase revenues by $22.2 billion over the same period.  Interestingly, CBO predicts over $14 billion in litigation costs alone stemming from the new energy tax in this bill.

DC Recap

House Floor:

The House of Representatives worked on legislation affecting the financial sector and unemployment this week.  

House Committees:

House Agriculture

On July 1, 2010 that House Agriculture Committee’s Subcommittee on Conservation, Credit, Energy, and Research, held a hearing to review the administration and delivery of conservation programs.

On June 30, 2010 the House Agriculture Committee passed legislation to expand U.S. agriculture trade and increase jobs, approving historic legislation that will greatly expand trade of U.S. agriculture products to Cuba.  H.R. 4645, the Travel Restriction Reform and Export Enhancement Act, is a bipartisan bill introduced by Chairman Peterson and co-sponsored by 62 Members of Congress, including Representatives Jerry Moran of Kansas. The bill passed the Committee by a vote of 25-20.

On June 28, 2010 the House Agriculture Committee held a field hearing in Fayetteville, North Carolina to review U.S. agriculture policy, as the Committee begins the process of writing the 2012 Farm Bill. The Agriculture Committee’s Chairman of the Subcommittee on Rural Development, Biotechnology, Specialty Crops, and Foreign Agriculture, Congressman Mike McIntyre (D-N.C.) chaired the hearing.  This is the ninth in a series of field hearings scheduled across the country to consider new ideas regarding federal food and farm policy. Four Members of Congress attended today’s hearing and heard testimony from eight witnesses on a variety of farm policy issues.

House Appropriations

On June 30, 2010 the House Agriculture Appropriations Subcommittee held a markup up the FY11 Agricultural Appropriations bill.  They approved this spending bill.

Senate Floor:

Senate consideration to H.R. 4213, the Extenders bill, is still happening but the Senate has turned its attention to H.R. 5297, the Small Business Lending bill.

Senate Committees:

Senate Agriculture

On Wednesday, June 30, 2010, the Senate held its first Farm Bill hearing to review maintaining our domestic food supply through a strong U.S. farm policy.

Administration:

President Obama and South Korea President Lee met during the just concluded G20 meeting in Canada and committed to work to resolve the outstanding issues related to the Korea-US FTA by the next G20 meeting scheduled for November 2010.   According to administration officials, the White House will send the ratifying legislation to Congress in weeks or months following resolution of the issues.

Washington Recap

House Floor:

H.R. 5569-To extend the authorization of the National Flood Insurance Program- H.R. 5569 would provide a temporary extension of the National Flood Insurance Program through September 30, 2010.  The reauthorization would be retroactive to May 31, 2010, and the bill would reduce the program’s borrowing authority by $50 million.

House Committees:

A weekly recap of action in Washington, DC

House Floor: 

H.Res. 1368 would resolve that the House of Representatives:
• Supports the goals of National Dairy Month
• Encourages States and local governments to observe National Dairy Month with appropriate activities and events that promote the dairy industry
• Recognizes the important role that the dairy industry has played in the economic and nutritional well-being of Americans
• Commends dairy farmers for their continued hard work and commitment to the United States economy and to the preservation of open space
• Encourages all Americans to show their continued support for the dairy industry and dairy farmers.

 H.Res. 1383 would resolve that the House of Representatives honors Dr. Larry Case on his retirement as National FFA Advisor. 

H.R. 5486, the Small Business Jobs Tax Relief Act for 2010, would provide certain tax relief for small businesses, including the exclusion of 100 percent of capital gains, for an overall tax relief of $3.588 billion over 10 years.  The bill also contains provisions that would increase revenue by $7.146 billion.  Overall, the bill would have a net revenue increase of $3.558 billion over 10 years.  

H.R. 5297, TARP III, would create a $30 billion small business lending fund and authorize the Treasury Secretary to make capital investments in banks with less than $10 billion in assets.

The fund would be used by the Secretary for the purchase of preferred stock and other financial instruments from eligible institutions.  Preferred stock would have to be redeemed within 10 years of the date of the capital investment. 

House committees:

Agriculture Committee:

 On Thursday, June 17th  the House Agriculture Committee Subcommittee on General Farm Commodities and Risk Management  held a public hearing. The purpose of this hearing was to review U.S. farm safety net programs in advance of the 2012 Farm Bill. 

The House Agriculture Committee is now holding hearings to review U.S. agriculture policy in advance of the 2012 Farm Bill, and they want to hear from you. Use the web form here to submit your comments about the Farm Bill to the House Agriculture Committee.

House Natural Resources: 

The Natural Resources Committee markedup: 

H.R. 3914, introduced by Congressman Salazar.  This bill would designate certain lands in San Miguel, Ouray, and San Juan Counties, Colorado, as wilderness. 

H.R. 3923 was introduced by Congressman Polis.  This bill would provide for the exchange of certain land located in the Arapaho-Roosevelt National Forests in the State of Colorado.

 Senate Floor

 The Senate continued consideration of H.R.4213.  This bill 

• extends for one year (through 2010) the $1.00 per gallon production tax credit for biodiesel and the small agri-biodiesel producer credit of $0.10 per gallon. The bill would also extend for one year (through 2010) the $1.00 per gallon production tax credit for diesel fuel created from biomass. 
• extends a five-year depreciation for farming business machinery and equipment.  
• provides assistance for 2009 agricultural losses for crops, including specialty crops, livestock, sugar, aquaculture, cottonseed and poultry. 
• extends for one year (through 2010) the $0.50 per gallon alternative fuel tax credit for liquid fuels derived from biomass, compressed or liquefied biogas, natural gas and propane. The bill would not extend this credit to any liquid fuel derived from a pulp or paper manufacturing process (i.e., black liquor).   

USDA 

USDA released the final draft of a new Standard Reinsurance Agreement (SRA) with the nation’s crop insurance industry.  The SRA will reduce funding for the crop insurance program by $6 billion.  About $4 billion of those savings will be directed to deficit reduction and $2 billion will be invested in expansion of the Pasture, Rangeland, and Forage program; providing a performance discount or refund for qualified producers; increasing Conservation Reserve Program (CRP) acreage to the maximum authorized level of 32 million acres, investing in new and amended Conservation Reserve Enhancement Program initiatives; and investing in CRP monitoring.  

A fact sheet, side by side comparison and the news release about the SRA can be found on the RMA website, here.

If you have any questions please feel free to contact Brent Boydston at bboydston@colofb.com or at 303-749-7516.