By Jessica Domel
Field Editor
Congress has passed a pair of bills that would provide millions in funding for rural Texas and agricultural programs, save the country from $1 billion in retaliatory tariffs and permanently extend small business tax breaks for farmers and ranchers.
The omnibus spending bill, which was passed by the House and Senate this morning, calls for funding for rural development, food and drug safety, financial market oversight, nutrition, research and marketing programs across the nation.
It also includes a provision calling for the repeal of country of origin labeling (COOL) requirements for beef and pork exports.
COOL requires meat from other countries sold in the United States to have a label indicating where the meat was raised.
Following complaints from other countries, including Canada and Mexico, the World Trade Organization (WTO) prepared to approve $1 billion in retaliatory tariffs against the United States.
According to the WTO, the COOL labeling requirements violate trade standards.
Texas Farm Bureau (TFB) supports the repeal of COOL, so our industry did not suffer from the retaliatory trade tariffs.
“It was a priority for us,” Regan Beck, TFB director of Government Affairs, said.
The omnibus spending bill also includes a provision that would require and ensure current and future Dietary Guidelines are balanced and based on nutritional and dietary information.
Another provision contains no funding for new or expanded programs through the Environmental Protection Agency (EPA). Although the bill didn’t go as far as to block EPA’s Waters of the U.S. (WOTUS) rule, many applaud its inclusion.
“Even though it doesn’t stop WOTUS, it could prevent future overreaching programs from being implemented,” Beck said.
One provision of the bill eliminates red tape for farmers by ensuring they can utilize the marketing loan program without having to jump through hoops. According to the House Committee on Agriculture, the provision “places farmers in control of their own crops instead of having to forfeit them to the federal government during tough times.”
A breakdown of agricultural impacts of the bill can be found here: http://1.usa.gov/1Zcq4Wj.
TFB supports the bill.
“We’re trying to support our industry,” Beck said. “These agricultural provisions are vitally needed by farmers and ranchers across the nation.”
A tax package that includes important provisions for agriculture was also approved by the House and Senate this week.
The tax package includes a provision that would make some tax provisions permanent, including the Section 179 Small Business Deduction for capital expenses.
The package allows farmers and ranchers to deduct costs like tractors and other equipment.
“This tax extender package gives farmers and ranchers critical tools to help them reinvest in their businesses,” American Farm Bureau Federation President Bob Stallman said. “Tax provisions like Section 179 small business expensing and bonus depreciation free up cash flow for farmers and ranchers to put their money to work. New provisions will let our members make important upgrades that reduce costs, increase efficiency and help make their businesses sustainable for generations to come.”
According to POLITICO, the provision would permanently cap the deduction at $500,000 instead of $25,000. The 50 percent bonus depreciation provision would also be extended for five years.
The 200-plus page bill can be found here: http://1.usa.gov/1ZcElCi.
The bills will now head to the president’s desk, where it is expected to be signed into law.