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National legislative picture

When 2003 started, the American Farm Bureau Federation (AFBF) had a list of priority issues for the 108th Congress. Among them was to win adequate emergency assistance for farmers hit by weather disasters in 2001 and 2002, permanent elimination of death taxes, tax incentives for beginning farmers, and development of a comprehensive energy bill. Here’s how those issues fared.

  • Disaster assistance – It took a bit of wrangling, but a disaster assistance program was set up to help farmers hit hard by drought and floods during the 2001 and 2002 growing seasons. OFBF President Terry McClure estimated Ohio’s losses amounted to more than $1 billion. AFBF President Bob Stallman hailed the mid-February passage of a disaster program. "This disaster package appears better targeted than earlier proposals," he said.
  • Death taxes – In June, representatives in the U.S. House passed permanent repeal of the death tax, but passage in the Senate is a much more daunting task, according to AFBF staff members. The permanent repeal of death taxes is a key issue for Farm Bureau.
  • Farm program funding – After all the work farmers and legislators put forth to get a good 2002 Farm Bill, some provisions were threatened by budget shortfalls and a failure to provide the funds needed to run them. Some of the most popular programs – those involving conservation practices – have yet to be funded.
  • Tax incentives for beginning farmers – AFBF applauded the introduction of the Beginning Farmers and Ranchers Tax Incentive Act of 2003 into both the U.S. House and Senate in mid-September. The legislation would eliminate capital gains taxes when agricultural land is sold to a beginning farmer or rancher. For transfers of farmland to other agricultural producers, a 50 percent capital gains tax reduction is provided. Under both circumstances the land must be kept in farming for at least five years or the forgiven tax must be repaid.
  • Energy bill – Farm Bureau pushed for a comprehensive energy policy that included a favorable renewable fuels standard. If adopted, this standard could raise farm income by as much as $700 million by boosting corn prices 5 percent and soybean prices as much as 11 percent according to USDA. The failed U.S. energy policy is the single largest cause for the nation’s current energy and natural gas crisis, which, it is estimated, has cost U.S. farmers between $1 billion and $2 billion more in 2003 to plant their crops, Stallman said.
 
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