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A bill to boost exports, increase demand for biofuels and assist tobacco growers has passed both the House and Senate and moved on to President Bush for his signature. The JOBS (Jumpstart Our Business Strength) Act "has gotten a lot of our attention for the better part of a year," said Keith Stimpert, OFBF vice president, government affairs. "This bill includes some significant benefits for Ohio and specifically Ohio farmers."

The JOBS Act supports farm exports by eliminating certain U.S. tax incentives that were ruled illegal by the World Trade Organization. Had this change not been made, American farmers would have faced tariffs of 17 percent on soybeans exported to Europe, the equivalent of $1 a bushel next planting season, according to Stimpert. Also in the bill are agriculture-specific tax incentives for renewable fuels including biodiesel and ethanol, which will increase demand for these farm-grown products.

The bill also delivers a long-term goal of Ohio Farm Bureau – the elimination of the ethanol penalty, which had cost Ohio between $130 and $160 billion annually for road improvements. Previously, Ohio’s share of the federal highway trust fund was reduced because our state uses a comparatively large amount of ethanol; ethanol is taxed at a lower rate than unleaded gasoline and thus generated lower trust fund payments to the state. "In essence, Ohio was being punished for using environmentally friendly fuel. We have worked alongside Gov. Taft’s administration for years to have this problem fixed," Stimpert said.

Another part of the JOBS Act puts in place a $10.14 billion tobacco quota compensation plan. The overall result is an improved economic outlook in tobacco growing regions, according to Stimpert. "The tobacco industry is changing quickly and dramatically and this bill will help farmers and in fact entire communities that have been dependent on tobacco to transition to new opportunities." The American Farm Bureau said economists have predicted that this tobacco legislation will generate $14 billion in economic activity and $2 billion in new tax revenues throughout the South and Midwest. Those same economists projected the bill will assist approximately two-thirds of America’s growers to exit the tobacco-growing industry.

Stimpert said there are a variety of other tax measures in the bill that will benefit farmers and small business owners. He cited a plan to compensate livestock farmers for stock lost due to weather disasters and a change in capital gains tax treatment on timber sales.

"This bill is pretty comprehensive and has taken a lot of work by Farm Bureau volunteers and staff," Stimpert said. Just last month, he and OFBF Trustees Bill Lowe and Keith Truckor visited 12 congressional offices seeking support for the JOBS Act. "The visits, phone calls and letters have paid off. This is a good bill for agriculture."