Agriculture News
Wins, some losses, in GOP tax bill for farmers
Agri-Pulse | Posted on November 7, 2017The House Republican tax-reform bill would preserve interest expensing for most farmers and would phase out the estate tax, but some producers would lose a tax deduction that their cooperatives pass on to them. The bill also significantly expands immediate expensing and depreciation provisions that are in current law. However, tax experts say there are other provisions, including new rules for pass-through entities and self-employment taxes, that could offset some of the benefits. The bill’s focus is on slashing the corporate tax rate from 35 percent to 20 percent and on shrinking individual tax rates and simplifying the tax code. The impact of the bill on individual farmers will vary according to their situations. Most farms are pass-through businesses - sole proprietorships, partnerships and S corporations - that are taxed at individual rates. The top tax rate on some, but not all income, earned by pass-through businesses would be cut to 25 percent. Farmers currently pay an effective tax rate of about 15 percent, according to the Agriculture Department.
Pioneers of organic farming are threatening to leave the program they helped create
The Washington Post | Posted on November 7, 2017The pioneers of the sustainable farming movement are mourning what they call the downfall of the organic program, following a Wednesday night vote by a group of government farming advisers that could determine the future of the $50 billion organic industry. At issue was whether a booming generation of hydroponic, aquaponic and aeroponic farms — which grow plants in nutrients without using soil, frequently indoors — could continue to sell their produce under the “organic” label.In a series of narrow votes, an advisory board to the U.S. Department of Agriculture voted to allow the majority of these operators to remain a part of the organic program, dealing a blow to the movement's early leaders. Organic pioneers have argued that including hydroponic produce under the label has undermined the integrity of the program they fought decades to establish, and at a time when it is already under intense scrutiny. Some have said they will consider leaving the USDA-regulated program entirely.
Organic board: aeroponics out, hydroponics, aquaponics in
The Packer | Posted on November 7, 2017By a vote of 8 to 7, the National Organic Standards Board on Nov. 1 rejected proposals to make hydroponic and aquaponic production methods prohibited under the U.S. Department of Agriculture’s National Organic Program.The board did vote to make aeroponics a prohibited practice by a vote of 14 in favor of the ban, with one member abstaining. That won’t have an impact on organic supply, Frankel said, as he understands there are no aeroponic operations currently certified as organic. Several firms researching aeroponic technology for organic production were waiting on the NOSB vote before attempting to become certified as organic, he said. “It is highly unlikely that people will continue to spend any more time, money or effort to figure out how to make those systems organic.
National Organic Standards Board Decrees That Hydroponic Can Be Organic
Modern Farmer | Posted on November 7, 2017On November 1st, the National Organic Standards Board finally made a decision on one of the most divisive issues in the organic world: should crops grown in water, containers, or otherwise not in the ground be allowed to call themselves organic? The decision is thus: hydroponic and container gardens will remain eligible for organic certification.This is a debate that’s much more complicated than it seems. Hydroponics and other types of high-tech farming get a lot of attention, most of it positive, for utilizing spaces that previously couldn’t house farms (abandoned factories, shipping containers, that kind of thing). They can potentially be very energy-efficient and reduce water usage. And there’s rarely a need for pesticides at all, since many of these operations are indoors.
Some Tax Code Changes Would Hamper Farmers and Ranchers
DTN | Posted on November 7, 2017K-Coe Isom, an agricultural accounting and consulting firm, said there were provisions in the tax bill that would hamper growth for farmers and ranchers and could increase their taxes. These include caps on the interest-expense deduction, scaling back carry-back of losses, the elimination of the Domestic Production Activities Deduction and limits on like-kind exchanges.The tax plan would cap business-interest deductions at 30% of adjusted taxable income. Like cash accounting, businesses with average revenue of $25 million or less would be exempt from that cap.Wald called on Congress to consider four changes to the bill:-- Exempt farm businesses from limits on interest deductions. Farms and ranches often finance equipment, land and input costs with debt financing.Unlike other sectors of the economy, agriculture rarely turns to equity financing, relying much more heavily on debt financing to operate. While it is good that small businesses are exempt from interest expense limitations in this bill, Wald said it would be better if all farm businesses were exempt from this limitation.-- Allow farmers and ranchers to use like-kind exchanges for farm equipment. The current tax code allows farmers to avoid paying taxes on the trades of equipment provided that the farmer acquires similar equipment.-- Congress should preserve the ability of farmers to use such like-kind exchanges. This creates an incentive to replace aging farm equipment with new purchases, which is good for agricultural competitiveness and good for ag manufacturers and equipment dealers.-- Exempt agriculture from the elimination of the Domestic Production Activities Deduction (Sec. 199). The Domestic Production Activities Deduction (DPAD) is a deduction that applies to proceeds from agricultural products that are manufactured, produced or grown by farmers.
USDA withdraws proposed biotech rule
Farm Futures | Posted on November 7, 2017USDA’s Animal and Plant Health Inspection Service (APHIS) announced it is withdrawing a proposed rule to revise the agency’s biotechnology regulations and will re-engage with stakeholders to determine the most effective, science-based approach for regulating the products of modern biotechnology while protecting plant health.
Perdue Announces Farm Service Agency and Rural Development State Directors
USDA | Posted on November 6, 2017U.S. Secretary of Agriculture Sonny Perdue today announced a slate of Farm Service Agency (FSA) and Rural Development (RD) State Directors, all serving as appointees of President Donald J. Trump. FSA State Directors help implement U.S. Department of Agriculture (USDA) policies in planning, organizing, and administering FSA programs in their respective states. They are also responsible for running the day-to-day activities of the state FSA office. Similarly, RD State Directors work to help improve the economy and quality of life in rural America.
Dairy Farmer of America acquires Cumberland Dairy
edairynews | Posted on November 6, 2017Dairy Farmers of America, a national dairy cooperative owned by family farmers, announced Nov. 2 the acquisition of Cumberland Dairy; a family-owned processor of ultra-pasteurized dairy products located in Bridgeton, N.J.
DowDuPont to exit cellulosic biofuels business
Biofuels Digest | Posted on November 2, 2017DowDuPont announced that it intends to sell its cellulosic biofuels business and its first commercial project, a 30 million gallon per year cellulosic ethanol plant in Nevada, Iowa. The Nevada project is still going through start-up. The Nevada plant will be ‘kept warm’ but not operated going forward until a buyer is found. 90 workers are currently employed at the plant, and it can be assumed that this will be reduced to a skeleton staff until a buyer is found. Ever since the Dow and DuPont merger was announced, there have been concerns about exactly where the cellulosic ethanol technology would fit in a company which avowedly planned, post-merger, to divide itself into three companies — one based on traditional chemicals, one on agriculture, one on speciality products and including the industrial biosciences.
John Deere to celebrate 100 years of tractors in 2018
Imperial Valley News | Posted on November 2, 2017A Gold Key Tour for a Florida family and delivery of their new 8245R John Deere tractor – the first 2018 tractor made in Waterloo, Iowa – has kicked off a series of events to celebrate the 100th anniversary of John Deere entering the tractor business. Deere hosted the Wade Purvis family of Naples, Florida, for the Gold Key event, during which customers can watch the final assembly of their newly purchased machine. The new tractor includes a commemorative badge that will be appear on several models of 2018 John Deere tractors including the 6 Series, 7 Series, 8 Series and 9 Series machines. Deere entered the farm tractor business in March 1918 through the acquisition of the Waterloo Gasoline Engine Company