OREGON FARM BUREAU FEDERATION

Supported H.R. 267, the 2020 WHIP+ Reauthorization Act, with an Amendment in the Nature of a Substitute (ANS) that qualifies both the 2020 and 2021 crop year for coverage. Specifically, the ANS would authorize the Wildfire and Hurricane Indemnity Program Plus (WHIP+), the WHIP+ Milk Loss Program, and the On-Farm Storage Loss Program, for 2020 and 2021, subject to appropriation. It will expand the causes of loss in WHIP+ and improve its administration. Highlights of HR 267 include: Causes of loss: Maintains the causes of loss that were included for 2018 and 2019 Specifically refers to: smoke taint in wine grapes due to wildfires; high winds; derechos; excessive heat; freeze (including a polar vortex). Expands the drought trigger from D3 on the drought monitor to a Secretarial drought designation (which is D2 for eight consecutive weeks), or more severe, and contiguous counties. Includes losses due to other disruptions (including power outages or curtailments) associated with the effects of a qualifying disaster event. Administrative Improvements: Continues the requirement that participants in this program must purchase crop insurance coverage of at least 60%, or NAP where insurance isnt available, for two years after receiving assistance. Includes language intended to simplify the program, including by directing USDA to streamline the application process and to reduce the workload of county offices. Use of net indemnities - under the existing WHIP+ rules, the payment calculation accounts for the actual value received and any gross crop insurance indemnity. The ANS would account for the producer-paid premium in the calculation. Unharvested acres are treated in the same manner as under NAP. Clarifies that all insured acreage shall be eligible, regardless of whether such acreage is the initial acreage or not. On payment limitations, the ANS maintains the existing regulations, with some exceptions: Specialty crops or higher value crops are subject to the 2017 WHIP payment limitations; Average Adjusted Gross Income is based on the 2017 - 2019 tax years; Limits are renewed for each of 2020 and 2021; and CFAP specialty entity rules apply for operations structured as corporations, LLCs, limited partnerships, trusts, and estates. Includes a mechanism for payments to be made to producers through sugar processors and dairy coops. Continues the authority for USDA to provide payments in the form of block grants. Provides for an authorization of appropriations of $8.5 billion over the 2020 and 2021 timeframe, along with a set aside of funds for administration of the program. Started preparatory work on 2023 farm bill. Identified gaps in existing programs, specifically FSA relief programs and why Oregon growers are having trouble meeting eligibility requirements for extreme weather events. HR 4310, Minks in Narrowly Kept Spaces are Superspreaders Act, which would amend the Lacey Act Amendments of 1981 to prohibit the import, export, transport, sale, receipt, acquirement, or purchase in interstate or foreign commerce of mink, and for other purposes. The bipartisan infrastructure legislation passed by the Senate and will soon be considered by the House includes several provisions important to the agriculture community. Infrastructure dollars in the Senate package include: $5 billion to help farmers, ranchers and communities respond to drought $870 million per year for the Secure Rural Schools (SRS) program, which dedicates funding for rural communities facing budget shortfalls to address essential needs like schools and emergency services; $5 billion for key provisions of the Disaster Safe Power Grid Act to secure the power grid from extreme weather and natural disasters to prevent severe wildfires; $162 million for Klamath habitat restoration work through the U.S. Fish and Wildlife Service secured by Wyden and Senator Jeff Merkley; $6 billion for wildfire risk mitigation and forest health treatments, including an additional $100 million secured by Wyden for the Collaborative Forestry Landscape Restoration Program (CFLRP) ensuring that this funding can be used for existing projects. $65 billion to connect every American to high-quality, reliable broadband internet access Reviewed Executive Order addressing unfair markets, the right to repair, poultry tournament pay, Product of the USA labeling and also separately announced $500 million for regional meat packing expansion, as well as $100 million for FSIS Inspection Overtime Relief. The EO directs/encourages : *USDA to consider issuing new rules under the Packers and Stockyards Act making it easier for farmers to bring and win claims and adopting anti-retaliation protections for farmers who speak out about bad practices. *USDA to consider issuing new rules defining when meat can bear Product of USA labels, so that consumers have accurate, transparent labels that enable them to choose products made here. *USDA to develop a plan to increase opportunities for farmers to access markets and receive a fair return, including supporting alternative food distribution systems like farmers markets and developing standards and labels so that consumers can choose to buy products that treat farmers fairly. *FTC to limit powerful equipment manufacturers from restricting peoples ability to use independent repair shops or do DIY repairs-such as when tractor companies block farmers from repairing their own tractors.

Client expense: — · Firm income: —

Matched citations: HR 4310

The bipartisan infrastructure legislation passed by the Senate and will soon be considered by the House includes several provisions important to the agriculture community. Infrastructure dollars in the Senate package include: $65 billion to connect every American to high-quality, reliable broadband internet access Supported H.R. 3369, the Broadband for Rural America Act. This legislation will provide additional investments in USDA rural broadband programs while prioritizing rural areas most underserved. Supported S. 1695 and H.R. 3193, the Eliminating Barriers to Rural Internet Development Grant Eligibility (EBRIDGE) Act. This legislation removes hurdles for broadband projects, including difficult last-mile efforts that often delay rural broadband deployment.

Client expense: — · Firm income: —

Matched citations: S. 1695

The Tax Cuts and Jobs Act (TCJA) temporarily doubled the estate tax exemption from $5.5 million to $11 million per person ($11.7 million indexed for 2021) through 2025. While the higher temporary exemption level protects the vast majority of the nations farms and ranches from the devastating consequences of estate taxes, farm and ranch families with businesses that top the exemption level are still plagued by estate taxes and related planning costs. Supported HR H.R. 2370, to allow more farm and ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. Farm and ranch families who want to continue farming and ranching when a family member dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. The Section 2032A valuation tool for estate tax purposes was designed to provide farm and ranch families protection from burdensome estate taxes when passing down the family business. The deduction carefully delineates between types of property eligible for the Special Use Valuation by targeting estate tax relief to farm and ranch operations where the family plans to continue farming and ranching. Though the Section 2032A reduction limit originally outlined in the law was updated to increase with inflation, it no longer provides the level of protection it was meant to offer farmers and ranchers. Expanding the provision would allow more farm and ranch land to qualify for Section 2032A Special Use Valuation, restoring it value as the helpful estate planning tool that was intended by Congress. Monitored the American Families Plan. Tthe American Families Plan, proposes tax cuts and programs including: Step Up in Basis Would be Repealed and Instead Capital Gains Taxes Would be Collected at Death Stepped up basis provides that capital gains taxes are not imposed when assets are transferred at death to an heir. Furthermore, tax law allows the heir to increase their basis in the assets to fair market value and only owe capital gains taxes on the amount the asset appreciates while they owed it and only if the asset is sold. The proposal would repeal step up in basis for gains over $1 million and collect capital gains at death unless assets are donated to charity. A proposed protection for family-owned farms and businesses is not explained. Capital Gains Tax Rates Will Almost Double for Some Farms and ranches pay capital gains taxes when they sell long-term capital assets like land and buildings. The tax is based on the amount that the asset has increased in value since purchase which can be significant for agriculture where assets are typically held for a long time. Capital gains tax rates would increase from 20% to 39.6% for households making over $1 million. Like Kind Exchange (1031) Are Repealed Like Kind Exchanges allow farmers and ranchers and other businesses to defer capital gains taxes when they sell an asset and replace it with a similar asset. Farmers and ranchers use like kind exchanges for capital assets like land and single-purpose structures. The proposal repeals like kind exchanges for exchanges for gains greater than $500,000. Individual Income Tax Rate Will Increase According to the Census of Agriculture, about 94% of farm and ranch businesses pay taxes using individual tax rates, as sole-proprietors or partnerships. The proposal increases the top individual income tax rate bracket from 37% to 39.6 %.

Client expense: $15,000 · Firm income: —

Matched citations: H.R. 2370

Supported H.R. 267, the 2020 WHIP+ Reauthorization Act, with an Amendment in the Nature of a Substitute (ANS) that qualifies both the 2020 and 2021 crop year for coverage. Specifically, the ANS would authorize the Wildfire and Hurricane Indemnity Program Plus (WHIP+), the WHIP+ Milk Loss Program, and the On-Farm Storage Loss Program, for 2020 and 2021, subject to appropriation. It will expand the causes of loss in WHIP+ and improve its administration. Highlights of HR 267 include: Causes of loss: Maintains the causes of loss that were included for 2018 and 2019 Specifically refers to: smoke taint in wine grapes due to wildfires; high winds; derechos; excessive heat; freeze (including a polar vortex). Expands the drought trigger from D3 on the drought monitor to a Secretarial drought designation (which is D2 for eight consecutive weeks), or more severe, and contiguous counties. Includes losses due to other disruptions (including power outages or curtailments) associated with the effects of a qualifying disaster event. Administrative Improvements: Continues the requirement that participants in this program must purchase crop insurance coverage of at least 60%, or NAP where insurance isnt available, for two years after receiving assistance. Includes language intended to simplify the program, including by directing USDA to streamline the application process and to reduce the workload of county offices. Use of net indemnities - under the existing WHIP+ rules, the payment calculation accounts for the actual value received and any gross crop insurance indemnity. The ANS would account for the producer-paid premium in the calculation. Unharvested acres are treated in the same manner as under NAP. Clarifies that all insured acreage shall be eligible, regardless of whether such acreage is the initial acreage or not. On payment limitations, the ANS maintains the existing regulations, with some exceptions: Specialty crops or higher value crops are subject to the 2017 WHIP payment limitations; Average Adjusted Gross Income is based on the 2017 - 2019 tax years; Limits are renewed for each of 2020 and 2021; and CFAP specialty entity rules apply for operations structured as corporations, LLCs, limited partnerships, trusts, and estates. Includes a mechanism for payments to be made to producers through sugar processors and dairy coops. Continues the authority for USDA to provide payments in the form of block grants. Provides for an authorization of appropriations of $8.5 billion over the 2020 and 2021 timeframe, along with a set aside of funds for administration of the program. Started preparatory work on 2023 farm bill. Identified gaps in existing programs, specifically FSA relief programs and why Oregon growers are having trouble meeting eligibility requirements for extreme weather events. HR 4310, Minks in Narrowly Kept Spaces are Superspreaders Act, which would amend the Lacey Act Amendments of 1981 to prohibit the import, export, transport, sale, receipt, acquirement, or purchase in interstate or foreign commerce of mink, and for other purposes. The bipartisan infrastructure legislation passed by the Senate and will soon be considered by the House includes several provisions important to the agriculture community. Infrastructure dollars in the Senate package include: $5 billion to help farmers, ranchers and communities respond to drought $870 million per year for the Secure Rural Schools (SRS) program, which dedicates funding for rural communities facing budget shortfalls to address essential needs like schools and emergency services; $5 billion for key provisions of the Disaster Safe Power Grid Act to secure the power grid from extreme weather and natural disasters to prevent severe wildfires; $162 million for Klamath habitat restoration work through the U.S. Fish and Wildlife Service secured by Wyden and Senator Jeff Merkley; $6 billion for wildfire risk mitigation and forest health treatments, including an additional $100 million secured by Wyden for the Collaborative Forestry Landscape Restoration Program (CFLRP) ensuring that this funding can be used for existing projects. $65 billion to connect every American to high-quality, reliable broadband internet access Reviewed Executive Order addressing unfair markets, the right to repair, poultry tournament pay, Product of the USA labeling and also separately announced $500 million for regional meat packing expansion, as well as $100 million for FSIS Inspection Overtime Relief. The EO directs/encourages : *USDA to consider issuing new rules under the Packers and Stockyards Act making it easier for farmers to bring and win claims and adopting anti-retaliation protections for farmers who speak out about bad practices. *USDA to consider issuing new rules defining when meat can bear Product of USA labels, so that consumers have accurate, transparent labels that enable them to choose products made here. *USDA to develop a plan to increase opportunities for farmers to access markets and receive a fair return, including supporting alternative food distribution systems like farmers markets and developing standards and labels so that consumers can choose to buy products that treat farmers fairly. *FTC to limit powerful equipment manufacturers from restricting peoples ability to use independent repair shops or do DIY repairs-such as when tractor companies block farmers from repairing their own tractors.

Client expense: $15,000 · Firm income: —

Matched citations: H.R. 267, HR 267

The bipartisan infrastructure legislation passed by the Senate and will soon be considered by the House includes several provisions important to the agriculture community. Infrastructure dollars in the Senate package include: $65 billion to connect every American to high-quality, reliable broadband internet access Supported H.R. 3369, the Broadband for Rural America Act. This legislation will provide additional investments in USDA rural broadband programs while prioritizing rural areas most underserved. Supported S. 1695 and H.R. 3193, the Eliminating Barriers to Rural Internet Development Grant Eligibility (EBRIDGE) Act. This legislation removes hurdles for broadband projects, including difficult last-mile efforts that often delay rural broadband deployment.

Client expense: $15,000 · Firm income: —

Matched citations: H.R. 3193

The bipartisan infrastructure legislation passed by the Senate and will soon be considered by the House includes several provisions important to the agriculture community. Infrastructure dollars in the Senate package include: $65 billion to connect every American to high-quality, reliable broadband internet access Supported H.R. 3369, the Broadband for Rural America Act. This legislation will provide additional investments in USDA rural broadband programs while prioritizing rural areas most underserved. Supported S. 1695 and H.R. 3193, the Eliminating Barriers to Rural Internet Development Grant Eligibility (EBRIDGE) Act. This legislation removes hurdles for broadband projects, including difficult last-mile efforts that often delay rural broadband deployment.

Client expense: $15,000 · Firm income: —

Matched citations: H.R. 3369

Supported H.R. 267, the 2020 WHIP+ Reauthorization Act, with an Amendment in the Nature of a Substitute (ANS) that qualifies both the 2020 and 2021 crop year for coverage. Specifically, the ANS would authorize the Wildfire and Hurricane Indemnity Program Plus (WHIP+), the WHIP+ Milk Loss Program, and the On-Farm Storage Loss Program, for 2020 and 2021, subject to appropriation. It will expand the causes of loss in WHIP+ and improve its administration. Highlights of HR 267 include: Causes of loss: Maintains the causes of loss that were included for 2018 and 2019 Specifically refers to: smoke taint in wine grapes due to wildfires; high winds; derechos; excessive heat; freeze (including a polar vortex). Expands the drought trigger from D3 on the drought monitor to a Secretarial drought designation (which is D2 for eight consecutive weeks), or more severe, and contiguous counties. Includes losses due to other disruptions (including power outages or curtailments) associated with the effects of a qualifying disaster event. Administrative Improvements: Continues the requirement that participants in this program must purchase crop insurance coverage of at least 60%, or NAP where insurance isnt available, for two years after receiving assistance. Includes language intended to simplify the program, including by directing USDA to streamline the application process and to reduce the workload of county offices. Use of net indemnities - under the existing WHIP+ rules, the payment calculation accounts for the actual value received and any gross crop insurance indemnity. The ANS would account for the producer-paid premium in the calculation. Unharvested acres are treated in the same manner as under NAP. Clarifies that all insured acreage shall be eligible, regardless of whether such acreage is the initial acreage or not. On payment limitations, the ANS maintains the existing regulations, with some exceptions: Specialty crops or higher value crops are subject to the 2017 WHIP payment limitations; Average Adjusted Gross Income is based on the 2017 - 2019 tax years; Limits are renewed for each of 2020 and 2021; and CFAP specialty entity rules apply for operations structured as corporations, LLCs, limited partnerships, trusts, and estates. Includes a mechanism for payments to be made to producers through sugar processors and dairy coops. Continues the authority for USDA to provide payments in the form of block grants. Provides for an authorization of appropriations of $8.5 billion over the 2020 and 2021 timeframe, along with a set aside of funds for administration of the program. Started preparatory work on 2023 farm bill. Identified gaps in existing programs, specifically FSA relief programs and why Oregon growers are having trouble meeting eligibility requirements for extreme weather events. HR 4310, Minks in Narrowly Kept Spaces are Superspreaders Act, which would amend the Lacey Act Amendments of 1981 to prohibit the import, export, transport, sale, receipt, acquirement, or purchase in interstate or foreign commerce of mink, and for other purposes. The bipartisan infrastructure legislation passed by the Senate and will soon be considered by the House includes several provisions important to the agriculture community. Infrastructure dollars in the Senate package include: $5 billion to help farmers, ranchers and communities respond to drought $870 million per year for the Secure Rural Schools (SRS) program, which dedicates funding for rural communities facing budget shortfalls to address essential needs like schools and emergency services; $5 billion for key provisions of the Disaster Safe Power Grid Act to secure the power grid from extreme weather and natural disasters to prevent severe wildfires; $162 million for Klamath habitat restoration work through the U.S. Fish and Wildlife Service secured by Wyden and Senator Jeff Merkley; $6 billion for wildfire risk mitigation and forest health treatments, including an additional $100 million secured by Wyden for the Collaborative Forestry Landscape Restoration Program (CFLRP) ensuring that this funding can be used for existing projects. $65 billion to connect every American to high-quality, reliable broadband internet access Reviewed Executive Order addressing unfair markets, the right to repair, poultry tournament pay, Product of the USA labeling and also separately announced $500 million for regional meat packing expansion, as well as $100 million for FSIS Inspection Overtime Relief. The EO directs/encourages : *USDA to consider issuing new rules under the Packers and Stockyards Act making it easier for farmers to bring and win claims and adopting anti-retaliation protections for farmers who speak out about bad practices. *USDA to consider issuing new rules defining when meat can bear Product of USA labels, so that consumers have accurate, transparent labels that enable them to choose products made here. *USDA to develop a plan to increase opportunities for farmers to access markets and receive a fair return, including supporting alternative food distribution systems like farmers markets and developing standards and labels so that consumers can choose to buy products that treat farmers fairly. *FTC to limit powerful equipment manufacturers from restricting peoples ability to use independent repair shops or do DIY repairs-such as when tractor companies block farmers from repairing their own tractors.

Client expense: $15,000 · Firm income: —

Matched citations: HR 4310

The bipartisan infrastructure legislation passed by the Senate and will soon be considered by the House includes several provisions important to the agriculture community. Infrastructure dollars in the Senate package include: $65 billion to connect every American to high-quality, reliable broadband internet access Supported H.R. 3369, the Broadband for Rural America Act. This legislation will provide additional investments in USDA rural broadband programs while prioritizing rural areas most underserved. Supported S. 1695 and H.R. 3193, the Eliminating Barriers to Rural Internet Development Grant Eligibility (EBRIDGE) Act. This legislation removes hurdles for broadband projects, including difficult last-mile efforts that often delay rural broadband deployment.

Client expense: $15,000 · Firm income: —

Matched citations: S. 1695

The Tax Cuts and Jobs Act (TCJA) temporarily doubled the estate tax exemption from $5.5 million to $11 million per person ($11.7 million indexed for 2021) through 2025. While the higher temporary exemption level protects the vast majority of the nations farms and ranches from the devastating consequences of estate taxes, farm and ranch families with businesses that top the exemption level are still plagued by estate taxes and related planning costs. Supported HR H.R. 2370, to allow more farm and ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. Farm and ranch families who want to continue farming and ranching when a family member dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. The Section 2032A valuation tool for estate tax purposes was designed to provide farm and ranch families protection from burdensome estate taxes when passing down the family business. The deduction carefully delineates between types of property eligible for the Special Use Valuation by targeting estate tax relief to farm and ranch operations where the family plans to continue farming and ranching. Though the Section 2032A reduction limit originally outlined in the law was updated to increase with inflation, it no longer provides the level of protection it was meant to offer farmers and ranchers. Expanding the provision would allow more farm and ranch land to qualify for Section 2032A Special Use Valuation, restoring it value as the helpful estate planning tool that was intended by Congress. Monitored the American Families Plan. Tthe American Families Plan, proposes tax cuts and programs including: Step Up in Basis Would be Repealed and Instead Capital Gains Taxes Would be Collected at Death Stepped up basis provides that capital gains taxes are not imposed when assets are transferred at death to an heir. Furthermore, tax law allows the heir to increase their basis in the assets to fair market value and only owe capital gains taxes on the amount the asset appreciates while they owed it and only if the asset is sold. The proposal would repeal step up in basis for gains over $1 million and collect capital gains at death unless assets are donated to charity. A proposed protection for family-owned farms and businesses is not explained. Capital Gains Tax Rates Will Almost Double for Some Farms and ranches pay capital gains taxes when they sell long-term capital assets like land and buildings. The tax is based on the amount that the asset has increased in value since purchase which can be significant for agriculture where assets are typically held for a long time. Capital gains tax rates would increase from 20% to 39.6% for households making over $1 million. Like Kind Exchange (1031) Are Repealed Like Kind Exchanges allow farmers and ranchers and other businesses to defer capital gains taxes when they sell an asset and replace it with a similar asset. Farmers and ranchers use like kind exchanges for capital assets like land and single-purpose structures. The proposal repeals like kind exchanges for exchanges for gains greater than $500,000. Individual Income Tax Rate Will Increase According to the Census of Agriculture, about 94% of farm and ranch businesses pay taxes using individual tax rates, as sole-proprietors or partnerships. The proposal increases the top individual income tax rate bracket from 37% to 39.6 %.

Client expense: $15,000 · Firm income: —

Matched citations: H.R. 2370

USDA announced the availability of more than $330 million to assist agricultural producers and organizations in the food supply chain recover from the financial impacts of the coronavirus pandemic. The funding announced is part of USDAs Pandemic Assistance for Producers initiative launched in March, and includes $169.9 million for the Specialty Crop Block Grant Program (SCBGP), the availability of $75 million for Gus Schumacher Nutrition Incentive Program [GusNIP; formerly known as Food Insecurity Nutrition Incentive (FINI)] grantees and approximately $80 million in payments to domestic users of upland and extra-long staple cotton. Supported additional specialty crop funding through USDA. USDAs Agricultural Marketing Service (AMS) announced $169.9 million for the Specialty Crop Block Grant Program (SCBGP) to fund innovative projects designed to support the expanding specialty crop food sector and explore new market opportunities for U.S. food and agricultural products. The total includes: $72.9 million available as part of the annual Farm Bill funding for the program; and An additional $97 million available as emergency funding for applications under this solicitation. Congress provided this funding in the Consolidated Appropriations Act, 2021, due to COVID-19 impacts to the food system. Supported America Grows Act which would increase funding for agricultural research by 5% annually on an inflation-adjusted basis at four agencies at the U.S. Department of Agriculture for the next 10 years. Supported S. 1264, the Resiliency for Ranching and Natural Conservation Health (RANCH) Act, focused on public lands grazing. . The RANCH Act has four main provisions, all of which positively impact farmers and ranchers engaged in grazing on public lands. First, it would allow temporary utilization of vacant grazing allotments during extreme events/disasters. Second, it would invest Land and Water Conservation Funds in an account and use the interest for rangeland health and resiliency projects as well as improvements for voluntary public access agreements for hunting and recreation. Third, it would extend the period of grazing permits/leases for up to 20 years, when certain conditions are met. Finally, it provides for the use of a categorical exclusion for renewal of certain grazing permits/leases and for certain actions during extreme events or disasters. Supported the Cover Crop Flexibility Act, legislation to remove the prohibition on harvesting or grazing cover crops on prevented plant acres prior to November 1. This legislation is a result of Senate efforts that ultimately led to the U.S. Department of Agriculture (USDA) making an administrative change that allowed for penalty-free haying and grazing. This bill would provide a permanent solution to this issue and create greater certainty for U.S. producers. The Cover Crop Flexibility Act would remove a prohibition on grazing or harvesting cover crops for hay or silage and eliminate an arbitrary date that allowed farmers with longer growing seasons more opportunities than those in northern states. Also farmers would still have to plant cover crops on approved lists to prevent manipulation of the flexibility and avoid harvesting during the primary nesting season of local birds. It would allow USDA to include cover crop seed costs when it sets the factor that is used to calculate the prevented planting indemnity. The current formula only allows USDA to consider pre-planting costs when setting the factor, so the cost of cover crop seed is a potential barrier for farmers who are already facing the effects of a natural disaster. Finally, it would direct USDA to conduct a study to examine the extent that cover crops reduce risks of prevented planting and other crop insurance losses. If the study finds risk reductions, it allows USDA to adjust prevented planting factors or provide policies with appropriate lower premiums for farmers using cover crops. Supported the Livestock Regulatory Protection Act would amend the Clean Air Act to prohibit the EPA from issuing permits for any carbon dioxide, nitrogen oxide, water vapor, or methane emissions resulting from biological processes associated with livestock production. Supported optimizing the Cattle Market Act of 2021 to enable mechanisms for greater price discovery and transparency within the cattle market, while equipping producers with more tools and useful information to succeed. Requires the Secretary of Agriculture, in consultation with the Chief Economist, to establish regionally sufficient levels of negotiated cash and negotiated grid trade within 2 years of enactment and to consider stakeholder input through a public comment period. Consideration must also be given to peer reviewed economic research from land grant universities. Packers include only federally inspected cattle processing plants that slaughter an average of 125,000 head of cattle per year (roughly 500 head per day) during the prior 5 years. These minimums may be weekly or another periodic basis, must account for black swan events, and must be reviewed every 2 years. After 3 years, a cost-benefit analysis must be done to determine the operation and effect of regional mandatory minimums. Mandates that a packer report the number of cattle, organized by cattle type, scheduled to be delivered for slaughter each day for the next 14 days for USDA to make available to the public. Expresses the sense of Congress that there is a need for expedited reauthorization of U.S. Department of Agricultures (USDA) Livestock Mandatory Reporting (LMR) program, including base prices subject to the same reporting requirements as negotiated cash and the creation of a contract library. Directs USDA to provide educational outreach activities for producers on how to best utilize the library. Continued congressional efforts on disaster assistance to Oregon growers for excessive heat, ice, drought and wildfire.

Client expense: $15,000 · Firm income: —

Matched citations: S. 1264

Reviewed the Joint Committee on Taxations list of 78 expiring tax provisions. Provisions Expiring on December 31, 2021 Credit for alternative fuel vehicle refueling property Alternative fuels include biodiesel, renewable biodiesel, and ethanol. The credit incentivizes the installation of pumps to increase consumer access to biofuels. Second generation biofuel producer credit Second generation biofuel, also known as advanced biofuel, is manufactured from non-food biomass like switchgrass, woodchips, and non-food parts of plants. The credit incentivizes the production of fuel from these sources that provide new markets for agricultural commodities. Tax incentives for starting facility construction date for energy produced from wind and other renewable resources. Farmers benefit from a stable source of income that comes from leasing a footprint for development Provisions Expiring on December 31, 2022 Incentives for biodiesel and renewable diesel Biodiesel is a cleaner-burning renewable fuel that can be manufactured from vegetable oils, animal fats and recycled cooking oils. Biodiesel production not only helps farmers by expanding markets for commodities, but in many rural areas of the country, biodiesel production facilities are a driving force in local economies and broaden the local tax base. Provisions Expiring on December 31, 2023 Tax incentives for starting facility construction date for increased business solar, small wind and other renewable resources. Farm Bureau supports policies that help create a diverse domestic fuel and energy supply. Power generated from distributed wind and rental income from solar panels provide farmers with a stable source of income and contribute more broadly to the local economy. Provisions Expiring on December 31, 2025 Twenty-six tax provisions that expire at the end of 2025 were passed as part of the Tax Cut and Jobs Act (TCJA). Modification of individual income tax rates More than 98 percent of farms and ranches operate as pass-through businesses - sole proprietorships, partnerships and Sub S corporations. As such the pay taxes using individual tax rates. If lower TCJA tax rates and expanded tax brackets are not extended, the result will be a tax increase on the majority of farm and ranch businesses. Increase in exemption amount and phaseout threshold of individual AMT The TCJA increased the Alternative Minimum Tax threshold for individuals: Rolling back the higher AMT thresholds will cancel out important deductions and credits put in place by TCJA. Limitation on deduction for State, local, etc., taxes (SALT) The SALT deduction permits individuals to deduct taxes paid to state and local governments. The TCJA capped the deduction at $10,000 per household. However, farmers and ranchers are still able to take a SALT deduction for taxes paid by their businesses. Qualified business income deduction (Sec. 199A deduction) More than 98 percent of farms and ranches operate as pass-through businesses - sole proprietorships, partnerships and Sub S corporations. The TCJA created a new 20 percent business income deduction for pass-through businesses referred to as Sec. 199A. Repealing the Sec.199A business income deduction would expand the tax base of pass-through businesses, increasing their taxes and erasing much of the benefit of the TCJA. Increase in estate and gift tax exemption The TCJA doubled the estate tax exemption to $11 million person/$22 million couple indexed for inflation. If the exemption is allowed to revert back, more farms and ranches will be subject to estate taxes. And, as long as the exemption level is temporary, money must be spent on estate tax planning rather than on growing farm and ranch businesses Provisions Expiring on December 31, 2026 Additional first-year depreciation with respect to qualified property (Bonus Depreciation. Bonus depreciation (expensing) allows farmers to better manage their taxes by offsetting income with deductions for their business expenses. This is especially critical because like-kind exchanges for equipment and livestock are repealed. Election of additional depreciation for certain plants bearing fruits and nuts This provision improves cash flow by allowing farmers to deduct 50 percent of pre-productive costs like pruning, irrigation, fertilizer, and spraying in the year the expense is incurred rather than having to wait to deduct them over the productive life of the plant or tree. Provisions Expiring on December 22, 2027 Expensing of certain costs of replanting citrus plants lost by reason of casualty This provision allows citrus farmers whose trees have been destroyed by weather, disease, pest or other disaster to deduct the full cost of replanting instead of having to wait and deduct the costs over the productive life of the tree. Supported S. 480 or H.R. 1381, Main Street Tax Certainty Act The Section 199A business income deduction, passed as part of the Tax Cuts and Jobs Act, allows pass through businesses to take a deduction worth 20 percent of their business income. Ninety-eight percent of farms and ranches are organized as pass through businesses. The 199A deduction is temporary and expires at the end of 2025. If it is not made permanent, the result will be a huge increase in the taxes that farmers and ranchers pay and leave them without ways to deal with the cyclical and unpredictable nature of their businesses. Supported HR 1712, Death Tax Repeal Act and S.617, Death Tax Repeal Act of 2021 Continued support of 1031 like kind exchanges. By using Section 1031, farmers and ranchers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers and ranchers might have to incur debt to continue their farm or ranch businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm or ranch. Farmers and ranchers frequently use like-kind exchanges to: Consolidate distant parcels of land; Obtain more productive land; Mitigate environmental impacts; Expand their operation to include young or beginning farmers; Upgrade structures like greenhouses or buildings used to house animals; or Move out of the path of urban development. Continued support of low capital gains. Capital gains taxes are imposed on the sale of land, buildings, breeding livestock and some timber. The tax is owed on the amount that the property increased in value since it was purchased. The impact of capital gains taxes on farming and ranching is significant because production agriculture requires large investments in land and buildings that are held for long periods of time, during which land values can more than triple. The current top capital gains tax rate of 20 percent is typically only assessed on high-income taxpayers. However, farmers and ranchers often pay the top rate because their capital gains can be realized in a single year, for example when a farm is sold. This high rate discourages improvements that advance sustainable practices and top notch animal care on farms. Capital gains taxes make it harder for beginning farmers to get started because they create a disincentive for established farmers to sell land and buildings. Land and buildings account for nearly 80% of farm and ranch assets. Eliminating or reducing the capital gains tax would make farming more accessible to beginning and young farmers. Opposed HR 2286, which would do away with stepped up basis. A capital gain is a measure of an assets appreciation - the difference between the amount received when an asset is sold and the assets basis/purchase price. Typically, capital gains are taxed when an asset is sold. Under current law, however, transfers at death are not treated as a sale and the capital gain is not taxed. In addition, the basis of the property is stepped up to current value so that if the property were sold, capital gains taxes would only be paid on appreciation since the property was inherited. The current top capital gains tax rate is 20 percent. The value of family-owned farms and ranches are tied to illiquid assets such as land, buildings and equipment. With a majority, 82%, of farm assets in illiquid farm real estate, producers have few options when it comes to generating cash to pay taxes at death. When taxes at death on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports. The harm caused to agricultural businesses that comes from taxes imposed at death is multiplied when both estate taxes and capital gains taxes are imposed.

Client expense: $15,000 · Firm income: —

Matched citations: H.R. 1381

Reviewed the Joint Committee on Taxations list of 78 expiring tax provisions. Provisions Expiring on December 31, 2021 Credit for alternative fuel vehicle refueling property Alternative fuels include biodiesel, renewable biodiesel, and ethanol. The credit incentivizes the installation of pumps to increase consumer access to biofuels. Second generation biofuel producer credit Second generation biofuel, also known as advanced biofuel, is manufactured from non-food biomass like switchgrass, woodchips, and non-food parts of plants. The credit incentivizes the production of fuel from these sources that provide new markets for agricultural commodities. Tax incentives for starting facility construction date for energy produced from wind and other renewable resources. Farmers benefit from a stable source of income that comes from leasing a footprint for development Provisions Expiring on December 31, 2022 Incentives for biodiesel and renewable diesel Biodiesel is a cleaner-burning renewable fuel that can be manufactured from vegetable oils, animal fats and recycled cooking oils. Biodiesel production not only helps farmers by expanding markets for commodities, but in many rural areas of the country, biodiesel production facilities are a driving force in local economies and broaden the local tax base. Provisions Expiring on December 31, 2023 Tax incentives for starting facility construction date for increased business solar, small wind and other renewable resources. Farm Bureau supports policies that help create a diverse domestic fuel and energy supply. Power generated from distributed wind and rental income from solar panels provide farmers with a stable source of income and contribute more broadly to the local economy. Provisions Expiring on December 31, 2025 Twenty-six tax provisions that expire at the end of 2025 were passed as part of the Tax Cut and Jobs Act (TCJA). Modification of individual income tax rates More than 98 percent of farms and ranches operate as pass-through businesses - sole proprietorships, partnerships and Sub S corporations. As such the pay taxes using individual tax rates. If lower TCJA tax rates and expanded tax brackets are not extended, the result will be a tax increase on the majority of farm and ranch businesses. Increase in exemption amount and phaseout threshold of individual AMT The TCJA increased the Alternative Minimum Tax threshold for individuals: Rolling back the higher AMT thresholds will cancel out important deductions and credits put in place by TCJA. Limitation on deduction for State, local, etc., taxes (SALT) The SALT deduction permits individuals to deduct taxes paid to state and local governments. The TCJA capped the deduction at $10,000 per household. However, farmers and ranchers are still able to take a SALT deduction for taxes paid by their businesses. Qualified business income deduction (Sec. 199A deduction) More than 98 percent of farms and ranches operate as pass-through businesses - sole proprietorships, partnerships and Sub S corporations. The TCJA created a new 20 percent business income deduction for pass-through businesses referred to as Sec. 199A. Repealing the Sec.199A business income deduction would expand the tax base of pass-through businesses, increasing their taxes and erasing much of the benefit of the TCJA. Increase in estate and gift tax exemption The TCJA doubled the estate tax exemption to $11 million person/$22 million couple indexed for inflation. If the exemption is allowed to revert back, more farms and ranches will be subject to estate taxes. And, as long as the exemption level is temporary, money must be spent on estate tax planning rather than on growing farm and ranch businesses Provisions Expiring on December 31, 2026 Additional first-year depreciation with respect to qualified property (Bonus Depreciation. Bonus depreciation (expensing) allows farmers to better manage their taxes by offsetting income with deductions for their business expenses. This is especially critical because like-kind exchanges for equipment and livestock are repealed. Election of additional depreciation for certain plants bearing fruits and nuts This provision improves cash flow by allowing farmers to deduct 50 percent of pre-productive costs like pruning, irrigation, fertilizer, and spraying in the year the expense is incurred rather than having to wait to deduct them over the productive life of the plant or tree. Provisions Expiring on December 22, 2027 Expensing of certain costs of replanting citrus plants lost by reason of casualty This provision allows citrus farmers whose trees have been destroyed by weather, disease, pest or other disaster to deduct the full cost of replanting instead of having to wait and deduct the costs over the productive life of the tree. Supported S. 480 or H.R. 1381, Main Street Tax Certainty Act The Section 199A business income deduction, passed as part of the Tax Cuts and Jobs Act, allows pass through businesses to take a deduction worth 20 percent of their business income. Ninety-eight percent of farms and ranches are organized as pass through businesses. The 199A deduction is temporary and expires at the end of 2025. If it is not made permanent, the result will be a huge increase in the taxes that farmers and ranchers pay and leave them without ways to deal with the cyclical and unpredictable nature of their businesses. Supported HR 1712, Death Tax Repeal Act and S.617, Death Tax Repeal Act of 2021 Continued support of 1031 like kind exchanges. By using Section 1031, farmers and ranchers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers and ranchers might have to incur debt to continue their farm or ranch businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm or ranch. Farmers and ranchers frequently use like-kind exchanges to: Consolidate distant parcels of land; Obtain more productive land; Mitigate environmental impacts; Expand their operation to include young or beginning farmers; Upgrade structures like greenhouses or buildings used to house animals; or Move out of the path of urban development. Continued support of low capital gains. Capital gains taxes are imposed on the sale of land, buildings, breeding livestock and some timber. The tax is owed on the amount that the property increased in value since it was purchased. The impact of capital gains taxes on farming and ranching is significant because production agriculture requires large investments in land and buildings that are held for long periods of time, during which land values can more than triple. The current top capital gains tax rate of 20 percent is typically only assessed on high-income taxpayers. However, farmers and ranchers often pay the top rate because their capital gains can be realized in a single year, for example when a farm is sold. This high rate discourages improvements that advance sustainable practices and top notch animal care on farms. Capital gains taxes make it harder for beginning farmers to get started because they create a disincentive for established farmers to sell land and buildings. Land and buildings account for nearly 80% of farm and ranch assets. Eliminating or reducing the capital gains tax would make farming more accessible to beginning and young farmers. Opposed HR 2286, which would do away with stepped up basis. A capital gain is a measure of an assets appreciation - the difference between the amount received when an asset is sold and the assets basis/purchase price. Typically, capital gains are taxed when an asset is sold. Under current law, however, transfers at death are not treated as a sale and the capital gain is not taxed. In addition, the basis of the property is stepped up to current value so that if the property were sold, capital gains taxes would only be paid on appreciation since the property was inherited. The current top capital gains tax rate is 20 percent. The value of family-owned farms and ranches are tied to illiquid assets such as land, buildings and equipment. With a majority, 82%, of farm assets in illiquid farm real estate, producers have few options when it comes to generating cash to pay taxes at death. When taxes at death on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports. The harm caused to agricultural businesses that comes from taxes imposed at death is multiplied when both estate taxes and capital gains taxes are imposed.

Client expense: $15,000 · Firm income: —

Matched citations: HR 1712

Reviewed the Joint Committee on Taxations list of 78 expiring tax provisions. Provisions Expiring on December 31, 2021 Credit for alternative fuel vehicle refueling property Alternative fuels include biodiesel, renewable biodiesel, and ethanol. The credit incentivizes the installation of pumps to increase consumer access to biofuels. Second generation biofuel producer credit Second generation biofuel, also known as advanced biofuel, is manufactured from non-food biomass like switchgrass, woodchips, and non-food parts of plants. The credit incentivizes the production of fuel from these sources that provide new markets for agricultural commodities. Tax incentives for starting facility construction date for energy produced from wind and other renewable resources. Farmers benefit from a stable source of income that comes from leasing a footprint for development Provisions Expiring on December 31, 2022 Incentives for biodiesel and renewable diesel Biodiesel is a cleaner-burning renewable fuel that can be manufactured from vegetable oils, animal fats and recycled cooking oils. Biodiesel production not only helps farmers by expanding markets for commodities, but in many rural areas of the country, biodiesel production facilities are a driving force in local economies and broaden the local tax base. Provisions Expiring on December 31, 2023 Tax incentives for starting facility construction date for increased business solar, small wind and other renewable resources. Farm Bureau supports policies that help create a diverse domestic fuel and energy supply. Power generated from distributed wind and rental income from solar panels provide farmers with a stable source of income and contribute more broadly to the local economy. Provisions Expiring on December 31, 2025 Twenty-six tax provisions that expire at the end of 2025 were passed as part of the Tax Cut and Jobs Act (TCJA). Modification of individual income tax rates More than 98 percent of farms and ranches operate as pass-through businesses - sole proprietorships, partnerships and Sub S corporations. As such the pay taxes using individual tax rates. If lower TCJA tax rates and expanded tax brackets are not extended, the result will be a tax increase on the majority of farm and ranch businesses. Increase in exemption amount and phaseout threshold of individual AMT The TCJA increased the Alternative Minimum Tax threshold for individuals: Rolling back the higher AMT thresholds will cancel out important deductions and credits put in place by TCJA. Limitation on deduction for State, local, etc., taxes (SALT) The SALT deduction permits individuals to deduct taxes paid to state and local governments. The TCJA capped the deduction at $10,000 per household. However, farmers and ranchers are still able to take a SALT deduction for taxes paid by their businesses. Qualified business income deduction (Sec. 199A deduction) More than 98 percent of farms and ranches operate as pass-through businesses - sole proprietorships, partnerships and Sub S corporations. The TCJA created a new 20 percent business income deduction for pass-through businesses referred to as Sec. 199A. Repealing the Sec.199A business income deduction would expand the tax base of pass-through businesses, increasing their taxes and erasing much of the benefit of the TCJA. Increase in estate and gift tax exemption The TCJA doubled the estate tax exemption to $11 million person/$22 million couple indexed for inflation. If the exemption is allowed to revert back, more farms and ranches will be subject to estate taxes. And, as long as the exemption level is temporary, money must be spent on estate tax planning rather than on growing farm and ranch businesses Provisions Expiring on December 31, 2026 Additional first-year depreciation with respect to qualified property (Bonus Depreciation. Bonus depreciation (expensing) allows farmers to better manage their taxes by offsetting income with deductions for their business expenses. This is especially critical because like-kind exchanges for equipment and livestock are repealed. Election of additional depreciation for certain plants bearing fruits and nuts This provision improves cash flow by allowing farmers to deduct 50 percent of pre-productive costs like pruning, irrigation, fertilizer, and spraying in the year the expense is incurred rather than having to wait to deduct them over the productive life of the plant or tree. Provisions Expiring on December 22, 2027 Expensing of certain costs of replanting citrus plants lost by reason of casualty This provision allows citrus farmers whose trees have been destroyed by weather, disease, pest or other disaster to deduct the full cost of replanting instead of having to wait and deduct the costs over the productive life of the tree. Supported S. 480 or H.R. 1381, Main Street Tax Certainty Act The Section 199A business income deduction, passed as part of the Tax Cuts and Jobs Act, allows pass through businesses to take a deduction worth 20 percent of their business income. Ninety-eight percent of farms and ranches are organized as pass through businesses. The 199A deduction is temporary and expires at the end of 2025. If it is not made permanent, the result will be a huge increase in the taxes that farmers and ranchers pay and leave them without ways to deal with the cyclical and unpredictable nature of their businesses. Supported HR 1712, Death Tax Repeal Act and S.617, Death Tax Repeal Act of 2021 Continued support of 1031 like kind exchanges. By using Section 1031, farmers and ranchers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers and ranchers might have to incur debt to continue their farm or ranch businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm or ranch. Farmers and ranchers frequently use like-kind exchanges to: Consolidate distant parcels of land; Obtain more productive land; Mitigate environmental impacts; Expand their operation to include young or beginning farmers; Upgrade structures like greenhouses or buildings used to house animals; or Move out of the path of urban development. Continued support of low capital gains. Capital gains taxes are imposed on the sale of land, buildings, breeding livestock and some timber. The tax is owed on the amount that the property increased in value since it was purchased. The impact of capital gains taxes on farming and ranching is significant because production agriculture requires large investments in land and buildings that are held for long periods of time, during which land values can more than triple. The current top capital gains tax rate of 20 percent is typically only assessed on high-income taxpayers. However, farmers and ranchers often pay the top rate because their capital gains can be realized in a single year, for example when a farm is sold. This high rate discourages improvements that advance sustainable practices and top notch animal care on farms. Capital gains taxes make it harder for beginning farmers to get started because they create a disincentive for established farmers to sell land and buildings. Land and buildings account for nearly 80% of farm and ranch assets. Eliminating or reducing the capital gains tax would make farming more accessible to beginning and young farmers. Opposed HR 2286, which would do away with stepped up basis. A capital gain is a measure of an assets appreciation - the difference between the amount received when an asset is sold and the assets basis/purchase price. Typically, capital gains are taxed when an asset is sold. Under current law, however, transfers at death are not treated as a sale and the capital gain is not taxed. In addition, the basis of the property is stepped up to current value so that if the property were sold, capital gains taxes would only be paid on appreciation since the property was inherited. The current top capital gains tax rate is 20 percent. The value of family-owned farms and ranches are tied to illiquid assets such as land, buildings and equipment. With a majority, 82%, of farm assets in illiquid farm real estate, producers have few options when it comes to generating cash to pay taxes at death. When taxes at death on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports. The harm caused to agricultural businesses that comes from taxes imposed at death is multiplied when both estate taxes and capital gains taxes are imposed.

Client expense: $15,000 · Firm income: —

Matched citations: HR 2286

Reviewed the Joint Committee on Taxations list of 78 expiring tax provisions. Provisions Expiring on December 31, 2021 Credit for alternative fuel vehicle refueling property Alternative fuels include biodiesel, renewable biodiesel, and ethanol. The credit incentivizes the installation of pumps to increase consumer access to biofuels. Second generation biofuel producer credit Second generation biofuel, also known as advanced biofuel, is manufactured from non-food biomass like switchgrass, woodchips, and non-food parts of plants. The credit incentivizes the production of fuel from these sources that provide new markets for agricultural commodities. Tax incentives for starting facility construction date for energy produced from wind and other renewable resources. Farmers benefit from a stable source of income that comes from leasing a footprint for development Provisions Expiring on December 31, 2022 Incentives for biodiesel and renewable diesel Biodiesel is a cleaner-burning renewable fuel that can be manufactured from vegetable oils, animal fats and recycled cooking oils. Biodiesel production not only helps farmers by expanding markets for commodities, but in many rural areas of the country, biodiesel production facilities are a driving force in local economies and broaden the local tax base. Provisions Expiring on December 31, 2023 Tax incentives for starting facility construction date for increased business solar, small wind and other renewable resources. Farm Bureau supports policies that help create a diverse domestic fuel and energy supply. Power generated from distributed wind and rental income from solar panels provide farmers with a stable source of income and contribute more broadly to the local economy. Provisions Expiring on December 31, 2025 Twenty-six tax provisions that expire at the end of 2025 were passed as part of the Tax Cut and Jobs Act (TCJA). Modification of individual income tax rates More than 98 percent of farms and ranches operate as pass-through businesses - sole proprietorships, partnerships and Sub S corporations. As such the pay taxes using individual tax rates. If lower TCJA tax rates and expanded tax brackets are not extended, the result will be a tax increase on the majority of farm and ranch businesses. Increase in exemption amount and phaseout threshold of individual AMT The TCJA increased the Alternative Minimum Tax threshold for individuals: Rolling back the higher AMT thresholds will cancel out important deductions and credits put in place by TCJA. Limitation on deduction for State, local, etc., taxes (SALT) The SALT deduction permits individuals to deduct taxes paid to state and local governments. The TCJA capped the deduction at $10,000 per household. However, farmers and ranchers are still able to take a SALT deduction for taxes paid by their businesses. Qualified business income deduction (Sec. 199A deduction) More than 98 percent of farms and ranches operate as pass-through businesses - sole proprietorships, partnerships and Sub S corporations. The TCJA created a new 20 percent business income deduction for pass-through businesses referred to as Sec. 199A. Repealing the Sec.199A business income deduction would expand the tax base of pass-through businesses, increasing their taxes and erasing much of the benefit of the TCJA. Increase in estate and gift tax exemption The TCJA doubled the estate tax exemption to $11 million person/$22 million couple indexed for inflation. If the exemption is allowed to revert back, more farms and ranches will be subject to estate taxes. And, as long as the exemption level is temporary, money must be spent on estate tax planning rather than on growing farm and ranch businesses Provisions Expiring on December 31, 2026 Additional first-year depreciation with respect to qualified property (Bonus Depreciation. Bonus depreciation (expensing) allows farmers to better manage their taxes by offsetting income with deductions for their business expenses. This is especially critical because like-kind exchanges for equipment and livestock are repealed. Election of additional depreciation for certain plants bearing fruits and nuts This provision improves cash flow by allowing farmers to deduct 50 percent of pre-productive costs like pruning, irrigation, fertilizer, and spraying in the year the expense is incurred rather than having to wait to deduct them over the productive life of the plant or tree. Provisions Expiring on December 22, 2027 Expensing of certain costs of replanting citrus plants lost by reason of casualty This provision allows citrus farmers whose trees have been destroyed by weather, disease, pest or other disaster to deduct the full cost of replanting instead of having to wait and deduct the costs over the productive life of the tree. Supported S. 480 or H.R. 1381, Main Street Tax Certainty Act The Section 199A business income deduction, passed as part of the Tax Cuts and Jobs Act, allows pass through businesses to take a deduction worth 20 percent of their business income. Ninety-eight percent of farms and ranches are organized as pass through businesses. The 199A deduction is temporary and expires at the end of 2025. If it is not made permanent, the result will be a huge increase in the taxes that farmers and ranchers pay and leave them without ways to deal with the cyclical and unpredictable nature of their businesses. Supported HR 1712, Death Tax Repeal Act and S.617, Death Tax Repeal Act of 2021 Continued support of 1031 like kind exchanges. By using Section 1031, farmers and ranchers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers and ranchers might have to incur debt to continue their farm or ranch businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm or ranch. Farmers and ranchers frequently use like-kind exchanges to: Consolidate distant parcels of land; Obtain more productive land; Mitigate environmental impacts; Expand their operation to include young or beginning farmers; Upgrade structures like greenhouses or buildings used to house animals; or Move out of the path of urban development. Continued support of low capital gains. Capital gains taxes are imposed on the sale of land, buildings, breeding livestock and some timber. The tax is owed on the amount that the property increased in value since it was purchased. The impact of capital gains taxes on farming and ranching is significant because production agriculture requires large investments in land and buildings that are held for long periods of time, during which land values can more than triple. The current top capital gains tax rate of 20 percent is typically only assessed on high-income taxpayers. However, farmers and ranchers often pay the top rate because their capital gains can be realized in a single year, for example when a farm is sold. This high rate discourages improvements that advance sustainable practices and top notch animal care on farms. Capital gains taxes make it harder for beginning farmers to get started because they create a disincentive for established farmers to sell land and buildings. Land and buildings account for nearly 80% of farm and ranch assets. Eliminating or reducing the capital gains tax would make farming more accessible to beginning and young farmers. Opposed HR 2286, which would do away with stepped up basis. A capital gain is a measure of an assets appreciation - the difference between the amount received when an asset is sold and the assets basis/purchase price. Typically, capital gains are taxed when an asset is sold. Under current law, however, transfers at death are not treated as a sale and the capital gain is not taxed. In addition, the basis of the property is stepped up to current value so that if the property were sold, capital gains taxes would only be paid on appreciation since the property was inherited. The current top capital gains tax rate is 20 percent. The value of family-owned farms and ranches are tied to illiquid assets such as land, buildings and equipment. With a majority, 82%, of farm assets in illiquid farm real estate, producers have few options when it comes to generating cash to pay taxes at death. When taxes at death on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports. The harm caused to agricultural businesses that comes from taxes imposed at death is multiplied when both estate taxes and capital gains taxes are imposed.

Client expense: $15,000 · Firm income: —

Matched citations: S. 480

Reviewed the Joint Committee on Taxations list of 78 expiring tax provisions. Provisions Expiring on December 31, 2021 Credit for alternative fuel vehicle refueling property Alternative fuels include biodiesel, renewable biodiesel, and ethanol. The credit incentivizes the installation of pumps to increase consumer access to biofuels. Second generation biofuel producer credit Second generation biofuel, also known as advanced biofuel, is manufactured from non-food biomass like switchgrass, woodchips, and non-food parts of plants. The credit incentivizes the production of fuel from these sources that provide new markets for agricultural commodities. Tax incentives for starting facility construction date for energy produced from wind and other renewable resources. Farmers benefit from a stable source of income that comes from leasing a footprint for development Provisions Expiring on December 31, 2022 Incentives for biodiesel and renewable diesel Biodiesel is a cleaner-burning renewable fuel that can be manufactured from vegetable oils, animal fats and recycled cooking oils. Biodiesel production not only helps farmers by expanding markets for commodities, but in many rural areas of the country, biodiesel production facilities are a driving force in local economies and broaden the local tax base. Provisions Expiring on December 31, 2023 Tax incentives for starting facility construction date for increased business solar, small wind and other renewable resources. Farm Bureau supports policies that help create a diverse domestic fuel and energy supply. Power generated from distributed wind and rental income from solar panels provide farmers with a stable source of income and contribute more broadly to the local economy. Provisions Expiring on December 31, 2025 Twenty-six tax provisions that expire at the end of 2025 were passed as part of the Tax Cut and Jobs Act (TCJA). Modification of individual income tax rates More than 98 percent of farms and ranches operate as pass-through businesses - sole proprietorships, partnerships and Sub S corporations. As such the pay taxes using individual tax rates. If lower TCJA tax rates and expanded tax brackets are not extended, the result will be a tax increase on the majority of farm and ranch businesses. Increase in exemption amount and phaseout threshold of individual AMT The TCJA increased the Alternative Minimum Tax threshold for individuals: Rolling back the higher AMT thresholds will cancel out important deductions and credits put in place by TCJA. Limitation on deduction for State, local, etc., taxes (SALT) The SALT deduction permits individuals to deduct taxes paid to state and local governments. The TCJA capped the deduction at $10,000 per household. However, farmers and ranchers are still able to take a SALT deduction for taxes paid by their businesses. Qualified business income deduction (Sec. 199A deduction) More than 98 percent of farms and ranches operate as pass-through businesses - sole proprietorships, partnerships and Sub S corporations. The TCJA created a new 20 percent business income deduction for pass-through businesses referred to as Sec. 199A. Repealing the Sec.199A business income deduction would expand the tax base of pass-through businesses, increasing their taxes and erasing much of the benefit of the TCJA. Increase in estate and gift tax exemption The TCJA doubled the estate tax exemption to $11 million person/$22 million couple indexed for inflation. If the exemption is allowed to revert back, more farms and ranches will be subject to estate taxes. And, as long as the exemption level is temporary, money must be spent on estate tax planning rather than on growing farm and ranch businesses Provisions Expiring on December 31, 2026 Additional first-year depreciation with respect to qualified property (Bonus Depreciation. Bonus depreciation (expensing) allows farmers to better manage their taxes by offsetting income with deductions for their business expenses. This is especially critical because like-kind exchanges for equipment and livestock are repealed. Election of additional depreciation for certain plants bearing fruits and nuts This provision improves cash flow by allowing farmers to deduct 50 percent of pre-productive costs like pruning, irrigation, fertilizer, and spraying in the year the expense is incurred rather than having to wait to deduct them over the productive life of the plant or tree. Provisions Expiring on December 22, 2027 Expensing of certain costs of replanting citrus plants lost by reason of casualty This provision allows citrus farmers whose trees have been destroyed by weather, disease, pest or other disaster to deduct the full cost of replanting instead of having to wait and deduct the costs over the productive life of the tree. Supported S. 480 or H.R. 1381, Main Street Tax Certainty Act The Section 199A business income deduction, passed as part of the Tax Cuts and Jobs Act, allows pass through businesses to take a deduction worth 20 percent of their business income. Ninety-eight percent of farms and ranches are organized as pass through businesses. The 199A deduction is temporary and expires at the end of 2025. If it is not made permanent, the result will be a huge increase in the taxes that farmers and ranchers pay and leave them without ways to deal with the cyclical and unpredictable nature of their businesses. Supported HR 1712, Death Tax Repeal Act and S.617, Death Tax Repeal Act of 2021 Continued support of 1031 like kind exchanges. By using Section 1031, farmers and ranchers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers and ranchers might have to incur debt to continue their farm or ranch businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm or ranch. Farmers and ranchers frequently use like-kind exchanges to: Consolidate distant parcels of land; Obtain more productive land; Mitigate environmental impacts; Expand their operation to include young or beginning farmers; Upgrade structures like greenhouses or buildings used to house animals; or Move out of the path of urban development. Continued support of low capital gains. Capital gains taxes are imposed on the sale of land, buildings, breeding livestock and some timber. The tax is owed on the amount that the property increased in value since it was purchased. The impact of capital gains taxes on farming and ranching is significant because production agriculture requires large investments in land and buildings that are held for long periods of time, during which land values can more than triple. The current top capital gains tax rate of 20 percent is typically only assessed on high-income taxpayers. However, farmers and ranchers often pay the top rate because their capital gains can be realized in a single year, for example when a farm is sold. This high rate discourages improvements that advance sustainable practices and top notch animal care on farms. Capital gains taxes make it harder for beginning farmers to get started because they create a disincentive for established farmers to sell land and buildings. Land and buildings account for nearly 80% of farm and ranch assets. Eliminating or reducing the capital gains tax would make farming more accessible to beginning and young farmers. Opposed HR 2286, which would do away with stepped up basis. A capital gain is a measure of an assets appreciation - the difference between the amount received when an asset is sold and the assets basis/purchase price. Typically, capital gains are taxed when an asset is sold. Under current law, however, transfers at death are not treated as a sale and the capital gain is not taxed. In addition, the basis of the property is stepped up to current value so that if the property were sold, capital gains taxes would only be paid on appreciation since the property was inherited. The current top capital gains tax rate is 20 percent. The value of family-owned farms and ranches are tied to illiquid assets such as land, buildings and equipment. With a majority, 82%, of farm assets in illiquid farm real estate, producers have few options when it comes to generating cash to pay taxes at death. When taxes at death on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports. The harm caused to agricultural businesses that comes from taxes imposed at death is multiplied when both estate taxes and capital gains taxes are imposed.

Client expense: $15,000 · Firm income: —

Matched citations: S.617

Advocate for S. 4117 and H.R. 7777, the Paycheck Protection Program Small Business Forgiveness Act, which would forgive PPP loans of less than $150,000 upon the borrowers completion of a simple, one-page forgiveness document. Simplifying the loan forgiveness process would alleviate hours of paperwork for borrowers. A variation of this act has been included in the Senate and House proposed COVID bills.

Client expense: $15,000 · Firm income: —

Matched citations: H.R. 7777

The U.S. Department of Transportations Federal Motor Carrier Safety Administration (FMCSA) announced an interim final rule (IFR) that further clarifies the definition of the terms any agricultural commodity, livestock, and non-processed food for the purposes of Hours of Service (HOS) regulations. Currently, during harvesting and planting seasons as determined by each state, drivers transporting agricultural commodities, including livestock, are exempt from the HOS requirements from the source of the commodities to a location within a 150-air-mile radius from the source. FMCSA proposed an advance final rule in September 2019 after indications that the current definition of these terms may not be understood or enforced consistently when determining whether the HOS exemption applies. Reviewed definitions in rule. Agricultural commodity means: Any agricultural commodity, nonprocessed food, feed, fiber, or livestock as defined in this section. As used in this definition, the term any agricultural commodity means horticultural products at risk of perishing, or degrading in quality, during transport by commercial motor vehicle, including plants, sod, flowers, shrubs, ornamentals, seedlings, live trees, and Christmas trees. Livestock means livestock as defined in sec. 602 of the Emergency Livestock Feed Assistance Act of 1988 [7 U.S.C.1471], as amended, insects, and all other living animals cultivated, grown, or raised for commercial purposes, including aquatic animals. Non-processed food means food commodities in a raw or natural state and not subjected to significant post-harvest changes to enhance shelf life, such as canning, jarring, freezing, or drying. The term non-processed food includes fresh fruits and vegetables, and cereal and oilseed crops which have been minimally processed by cleaning, cooling, trimming, cutting, chopping, shucking, bagging, or packaging to facilitate transport by commercial motor vehicle. Advocated for passage of S. 1811, the bipartisan Water Resources Development Act of 2020. The Water Resources Development Act (WRDA) of 2020 approves 46 new flood control, harbor, ecosystem and lock and dam projects on waterways across the country and would authorize the study of 27 additional projects, including the reallocation of the Willamette River. Agriculture depends on efficient ports and inland waterway infrastructure. Two provisions of WRDA 2020 that are particularly helpful for shipping agricultural products: Section 109 will bolster the U.S. inland waterways transportation system for the next ten years by amending the cost-share formula for the construction and major rehabilitation of inland waterways navigation projects from the 50:50 percent general revenue: Inland Waterways Trust Fund (IWTF) funding to 65 percent general revenue and 35 percent IWTF. Section 101 of WRDA 2020 which will better ensure that funds collected and deposited in the Harbor Maintenance Trust Fund (HMTF) go towards their intended purpose of dredging the nations ports and harbors.

Client expense: $15,000 · Firm income: —

Matched citations: S. 1811

Advocate for S. 4117 and H.R. 7777, the Paycheck Protection Program Small Business Forgiveness Act, which would forgive PPP loans of less than $150,000 upon the borrowers completion of a simple, one-page forgiveness document. Simplifying the loan forgiveness process would alleviate hours of paperwork for borrowers. A variation of this act has been included in the Senate and House proposed COVID bills.

Client expense: $15,000 · Firm income: —

Matched citations: S. 4117

Supported the Health Economic Assistance Liability Protection and Schools (HEALS) Act, which includes the American Workers, Families, and Employers Assistance Act that makes several tax code changes important to farmers and ranchers. The American Workers, Families, and Employers Assistance Act that makes several tax code changes important to farmers and ranchers. Provisions include improvements to the Employee Retention Tax Credit, a new tax credit to help employers pay for personal protective equipment, a needed change to Net Operating Loss rules, and a second round of assistance payments to individuals.: Employee Retention Tax Credit - Section 211 Passed as part of the CARES Act, the ERTC provides businesses with a financial incentive to keep employees on the payroll. The tax credit is available to employers regardless of size when business operations are fully or partially suspended by the government or when gross receipts are 50% less than the comparable quarter in 2019. The proposed bill reduces the percentage to 25 percent of a comparable quarter in a previous year. Under the CARES Act, an employer may not claim Employee Retention Credits if it receives a PPP loan. The proposal allows an employer to be eligible for both programs but prevents overlapping payments. The original ERTC is for 50% of up to $10,000 of wages per employee paid after March 12 and before January 1, 2021. The proposed change would increase the percentage to 65% of up to $10,000 per quarter limited to $30,000 for the calendar year. Qualifying wages are based on the average number of employees in 2019. If the employer had 100 or fewer employees the credit is for wages paid to all employees, regardless if they worked or not. If the employer had more than 100 employees, then the credit is only for wages paid to employees who did not work. The proposal would increase the threshold to 500 employees and also clarify that group health plan expenses are includes as wages even when no other wages are being paid to the employee. Employers can immediately reduce required deposits of Social Security payroll taxes that have been withheld from employees wages. The employer can request payment If the tax credit exceeds the amount of taxes that the employer would have deposited. New Safe and Health Workplace Tax Credit - Section 213 The proposal establishes a new refundable payroll tax credit equal to 50 percent of an employers qualified employee protection expenses, such as testing for COVID-19, protective personal equipment, cleaning supplies, modifications to workspaces and for contactless point of-sale systems and other technology to track employee interactions with customers. The expenditures must have a primary purpose of preventing the spread of COVID-19 among other requirements. In each calendar quarter, qualified expenses cannot exceed a cap based on the average number of employees. The cap is equal to $1,000 for each of the first 500 employees, plus $750 for each employee between 500 and 1000, plus $500 for each employee that exceeds 1,000. The credit also permits self-employed individuals, including sole proprietors, independent contractors, and farmers, to claim a refundable credit against income taxes for the same types of COVID-19 related expenses. The credit applies to expenses incurred after March 12, 2020 and before January 1, 2021. Election to waive application of certain modifications to farming losses - Section 224 The proposal allows farmers who elected a two-year net operating loss carryback prior to the CARES Act to elect to retain that two-year carryback rather than claim the five-year carryback provided in the CARES Act. This provision applies retroactively and will eliminate unnecessary compliance burdens. Additional Recovery Rebates for Individuals - Sect 201 and 202 All individuals with adjusted gross income up to $75,000 ($150,000 married) who have an eligible Social Security number will receive an additional recovery rebate of $1,200 ($2,400 married). In addition, they are eligible for an additional $500 per dependent rebate. But unlike under the CARES Act where the additional payment was only for a dependent child under 17, an additional $500 will now be provided for dependents of any age. The amount of the rebate phases-out completely once the income of single filers exceeds $99,000 or the income of joint filers exceeds $198,000. Supported HR 6821 Small Business Expense Protection Act of 2020 and S 3612 Small Business Expense Protection Act of 2020, which would address a possible/probably tax liability issue for PPP Loans. The PPP is a loan program created by the CARES Act and administered by the Small Business Administration (SBA) that provides an incentive for small businesses to keep their workers on the payroll. SBA will forgive PPP loans if employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. The amount of the forgiven PPP loan does not count as taxable income for the business owner. The IRS issued Notice 2020-32 which said that when a PPP loan is forgiven, expenses for payroll, rent, mortgage interest and utilities that are paid for with PPP funds cant be deducted when the business owner calculates his/her taxes at the end of the year. Since the forgiven PPP loan amount and the amount of lost deductions are the same, the effect is to make the forgiven loan taxable. Also supported enhancements to Employee Retention Tax Credit (ERTC) to make it easier for businesses to take advantage of the tax credit. Supported HR 6776, the JOBS Credit Act of 2020, which would expand the credit percentage from 50 percent to 80 percent of qualified wages.

Client expense: $15,000 · Firm income: —

Matched citations: HR 6776

Supported the Health Economic Assistance Liability Protection and Schools (HEALS) Act, which includes the American Workers, Families, and Employers Assistance Act that makes several tax code changes important to farmers and ranchers. The American Workers, Families, and Employers Assistance Act that makes several tax code changes important to farmers and ranchers. Provisions include improvements to the Employee Retention Tax Credit, a new tax credit to help employers pay for personal protective equipment, a needed change to Net Operating Loss rules, and a second round of assistance payments to individuals.: Employee Retention Tax Credit - Section 211 Passed as part of the CARES Act, the ERTC provides businesses with a financial incentive to keep employees on the payroll. The tax credit is available to employers regardless of size when business operations are fully or partially suspended by the government or when gross receipts are 50% less than the comparable quarter in 2019. The proposed bill reduces the percentage to 25 percent of a comparable quarter in a previous year. Under the CARES Act, an employer may not claim Employee Retention Credits if it receives a PPP loan. The proposal allows an employer to be eligible for both programs but prevents overlapping payments. The original ERTC is for 50% of up to $10,000 of wages per employee paid after March 12 and before January 1, 2021. The proposed change would increase the percentage to 65% of up to $10,000 per quarter limited to $30,000 for the calendar year. Qualifying wages are based on the average number of employees in 2019. If the employer had 100 or fewer employees the credit is for wages paid to all employees, regardless if they worked or not. If the employer had more than 100 employees, then the credit is only for wages paid to employees who did not work. The proposal would increase the threshold to 500 employees and also clarify that group health plan expenses are includes as wages even when no other wages are being paid to the employee. Employers can immediately reduce required deposits of Social Security payroll taxes that have been withheld from employees wages. The employer can request payment If the tax credit exceeds the amount of taxes that the employer would have deposited. New Safe and Health Workplace Tax Credit - Section 213 The proposal establishes a new refundable payroll tax credit equal to 50 percent of an employers qualified employee protection expenses, such as testing for COVID-19, protective personal equipment, cleaning supplies, modifications to workspaces and for contactless point of-sale systems and other technology to track employee interactions with customers. The expenditures must have a primary purpose of preventing the spread of COVID-19 among other requirements. In each calendar quarter, qualified expenses cannot exceed a cap based on the average number of employees. The cap is equal to $1,000 for each of the first 500 employees, plus $750 for each employee between 500 and 1000, plus $500 for each employee that exceeds 1,000. The credit also permits self-employed individuals, including sole proprietors, independent contractors, and farmers, to claim a refundable credit against income taxes for the same types of COVID-19 related expenses. The credit applies to expenses incurred after March 12, 2020 and before January 1, 2021. Election to waive application of certain modifications to farming losses - Section 224 The proposal allows farmers who elected a two-year net operating loss carryback prior to the CARES Act to elect to retain that two-year carryback rather than claim the five-year carryback provided in the CARES Act. This provision applies retroactively and will eliminate unnecessary compliance burdens. Additional Recovery Rebates for Individuals - Sect 201 and 202 All individuals with adjusted gross income up to $75,000 ($150,000 married) who have an eligible Social Security number will receive an additional recovery rebate of $1,200 ($2,400 married). In addition, they are eligible for an additional $500 per dependent rebate. But unlike under the CARES Act where the additional payment was only for a dependent child under 17, an additional $500 will now be provided for dependents of any age. The amount of the rebate phases-out completely once the income of single filers exceeds $99,000 or the income of joint filers exceeds $198,000. Supported HR 6821 Small Business Expense Protection Act of 2020 and S 3612 Small Business Expense Protection Act of 2020, which would address a possible/probably tax liability issue for PPP Loans. The PPP is a loan program created by the CARES Act and administered by the Small Business Administration (SBA) that provides an incentive for small businesses to keep their workers on the payroll. SBA will forgive PPP loans if employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. The amount of the forgiven PPP loan does not count as taxable income for the business owner. The IRS issued Notice 2020-32 which said that when a PPP loan is forgiven, expenses for payroll, rent, mortgage interest and utilities that are paid for with PPP funds cant be deducted when the business owner calculates his/her taxes at the end of the year. Since the forgiven PPP loan amount and the amount of lost deductions are the same, the effect is to make the forgiven loan taxable. Also supported enhancements to Employee Retention Tax Credit (ERTC) to make it easier for businesses to take advantage of the tax credit. Supported HR 6776, the JOBS Credit Act of 2020, which would expand the credit percentage from 50 percent to 80 percent of qualified wages.

Client expense: $15,000 · Firm income: —

Matched citations: HR 6821

Supported HR 7619, the Expanding Assistance to Farmers Act of 2020. The bill would amend the Small Business Act and the CARES Act to allow farmers to use their PPP loans on rental equipment used for agribusiness (including tractors, combines, forage harvesters, planters, sprayers, hay rakes and wagons, field equipment, irrigation equipment, tools and supplies), land and buildings. These payments would also qualify for loan forgiveness.

Client expense: $15,000 · Firm income: —

Matched citations: HR 7619