Farm Bill Stalemate On Hold For Now

Many ag groups weigh in on last ditch effort to pass a Farm Bill, warning that there's work yet to be done

Published on: Jan 3, 2013

Other farm groups expressed similar sentiments. National Farmers Union President Roger Johnson was harsh in his criticism, saying the extension was a "short-sighted, temporary fix."

"The legislation that passed fails to provide disaster aid for farmers or necessary support for our dairy industry, yet continues unjustifiable direct payments," Johnson said in a statement Tuesday. "Farmers, ranchers, rural communities and all Americans deserve better and would have been better served with a new five-year farm bill." 

…it also has some benefits

Though there were provisions that will be missed with an extension, not all comments were scathing. Some groups praised the benefits of the bill – a continuation of the biodiesel tax credit and relief from looming tax hikes.

The impending hikes were of special concern for many farmers and ranchers with ownership of large tracts of land. Assorted farm groups pushed for estate tax reform to avoid the hikes, but will now settle with a compromise.

Proposed estate tax rate increases included a $4 million per couple exemption and maximum taxable rate topping out at 55%, but as part of the new deal, estates will be taxed at a top rate of 40% with the first $5 million in value exempted for individual estates and $10 million in value for couples.

"The new estate tax rules give greater certainty to thousands of family-owned businesses in the produce industry," said Robert Guenther, senior vice president of public policy for produce group United Fresh. "If Congress had not acted, much higher estate taxes would have gone into effect. The confidence this move allows many business owners is definitely a victory in the bill."

American Soybean Association President Danny Murphy said simply that the proposed rates, had they gone into effect, were unrealistic for family farms.

Murphy noted that the new policy provides "much more viable framework for the land-based and capital-intensive nature of family farms." He said also that the solution allows farmers to more easily pass their operations from generation to generation.

Murphy, along with biodiesel groups, praised the portion of the fiscal cliff deal that provided an extension of the biodiesel tax credit, a $1-per-gallon incentive to produce biodiesel.

Murphy said the credit extension, which is effective in 2013 and retroactive to 2012, was a "big win" for soybean farmers. Anne Steckel, vice president of federal affairs with the National Biodiesel Board, said the move will improve job creation and expand production.

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  1. Anonymous says:

    What Mr. Kozak fails to acknowledge in the news releases coming from NMPF is that a majority of dairy farmers did not understand the DSA at all, and those who did, and kept digging in the Bill's actual language were distress that margin insurance would have been accepted more readily if it had been decoupled from supply management. The language kept changing, even with the 78-page Extension posted on Saturday before the vote on Monday in the Senate. When NMPF can become more consistent, more truthful, and more transparent, then any reforms they propose may be met with wider grass-roots acceptance.

  2. Anonymous says:

    Absolutely, positively without an ounce of doubt, embarrassing. Lets call a spade a spade and decouple the "farm bill" from the snap's 80 some percent of the bill! Agriculture should take the lead on this fiscal mess instead of being muddled into the middle of it!

    • Tom says:

      It sounds to me like Agriculture just gave up any leaverage that it had with the American people. What a great loss and mistake by Agriculture Leadership. Bob Stallman and Mr. Kozack should be fired or at least have thier leadership under close scrutiny. No other group in the USA attempted to wedge their agendas into the fight we are now in because the probably correctly said to themselves....this is bigger than us. Not the Arrogant Stallman and Kozack....no they deemed it LEADERSHIP to take a proactive stance and now everyone who is affected by the farm bill will pay....and pay....and pay. Especially those of us in the Dairy sector!

      • kitty of farm bill says:

        I AGREE WITH YOU WE ARE GOING TO PAY AND PAY I WISH ALL THE DAIRY FARMERS WOULD GET TOGETHER AND DO A PETITION ,FOR THEM TO COME OUT TO A DAIRY FARM AND DO EVERYTHING WE DO ON THE DAIRY. THAT IS THE ONLY WAY THAT THEY WILL KNOW HOW HARD ALL OF US WORK ON THE DAIRY. THEY WILL SEE WE DO NOT MAKE MONEY,LIKE THEY THINK . THEY WILL SEE WE KEEP GOING IN THE HOLE.ALL OF THESE SMALL DAIRY FARMS IS HAVING TO GO OUT OF BUSINESS CAUSE WHEN YOU GET THE PAYCHECK AND YOU MIGHT PAY FOR ONE FEED BILL . WELL HOW DO THEY EXPECT US TO STAY IN BUSINESS AND A LOT OF US THAT IS ALL WE KNOW CAUSE OUR FAMILIES FOR MANY GENERATIONS DID IT AND HOW WOULD THEY FEEL IF IT WAS THEIR FARMS AND BEEN IN THEIR FAMILIES FOR ALL THESE YEARS AND THEY WAS HAVING TO SELL EVERYTHING THAT THEY WORKED SO HARD FOR ALL THESE YEARS . IF EVERYONE WOULD LOOK BACK IN THE 70"S AND SEE HOW THINGS WAS AND GET IT BACK LIKE IT WAS ALL OF US WOULD DO BETTER . IT IS BREAKING MY HEART CAUSE ALL OF US ARE LOSING EVERYTHING WE GOT.THAT IS WHY I CHALLENGE THEM TO COME AND DO WHAT WE DO 24-7 FOR ONE WEEK,AND SEE WHAT THEY THINK THEN WOULD LIKE TO HEAR REPLIES TO THIS THANK YOU

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