What follows is just a small cross-section of what ASA has been working on at the national level since we last met in Washington in July. As 2014 draws to a close, ASA remains engaged in many issues that impact soybean farmer profitability and freedom to operate. – Stephen Censky, ASA CEO, December 2014.
House Votes to Extend Biodiesel Tax Credit, Other Tax Provisions for 2014 – The House of Representatives voted on December 3 to extend for 2014 several tax provisions important to soybean farmers. These initiatives include the dollar-per-gallon biodiesel tax credit, expensing for farm equipment and infrastructure under the Section 179 expensing provision, and bonus depreciation on farm assets. ASA expressed both its appreciation for a fix in the near term, and disappointment in the absence of a longer-term solution. ASA called on the Senate to also pass the legislation, and then both chambers to join together in 2015 and tackle the work of extending these critical tax incentives for the long term.
ASA Hails Barge Fuel Increase to Fund Waterways Improvements – The House of Representatives on December 3 passed an ASA-supported provision to increase the barge fuel fee to fund needed waterways infrastructure projects. The nine-cent increase in the per-gallon barge fuel fee is something that is supported not only by the nation’s soybean farmers, but also by the commercial barge and towing operators who pay it as a way to dedicate funds to new waterways infrastructure construction and major rehabilitation of the inland waterways system through the Inland Waterways Trust Fund.
ASA to EPA: Withdraw WOTUS Rule – ASA met with EPA to discuss concerns about the proposed rule to define waters that come under the jurisdiction of the Clean Water Act, known as the Waters of the U.S. (WOTUS). Then in formal comments to EPA, ASA requested that the agency withdraw its controversial rule because of ASA’s serious concerns regarding the scope and potential impact of the rule. In its comments, ASA pointed out the association’s key problems with the rule, based on four major inconsistencies, including the incorrect application of the “nexus” test, significant confusion around the issue of tile drainage, questions regarding jurisdiction over prior converted cropland and discrepancies concerning the amount by which the EPA’s jurisdiction would actually expand under the new definition.
Corps of Engineers Implements ‘Queue Management’ to Keep Harvest Moving – Following a letter from ASA, the Soy Transportation Coalition (STC), and other shipping stakeholders to the U.S. Army Corps of Engineers (USACE) expressing our concerns with their decision to close a portion of the Mississippi River at a critical time for the soybean supply chain, the USACE implemented a “queue management” system to clear the queue of waiting barges and tows every evening before resuming work in the morning. ASA stressed that any reduction of service on the inland waterway system during this record harvest season will impose significant hardship on U.S. agriculture with the soybean industry being particularly vulnerable given that 80 percent of U.S. soybean exports occur between September and February.
ASA Director Presses for Better Rail Service at STB Hearing – ASA Director Lance Peterson joined other concerned growers at a public hearing before the Surface Transportation Board (STB) in Fargo, N.D., to testify on rail service issues and the negative impacts on soybean growers. As the backlog of rail cars in the upper Midwest continues, many elevators are still full of 2013-crop grain. This backlog negatively affects basis levels and cash bids.
ASA Reacts to EPA’s Delay on RFS – In response to an announcement from EPA that the agency would not finalize the 2014 Required Volume Obligations (RVO) numbers in the Renewable Fuel Standard before the end of the year, ASA highlighted soybean farmer concerns, pointing out that the continued delays create great uncertainty for the biodiesel industry and soybean farmers and limits the industry’s ability to invest and expand. ASA believes that EPA should finalize a 2014 rule that sets the biomass-based diesel volumes at or above the nearly 1.8 billion gallons that were produced and consumed in the U.S. in 2013. EPA noted that it would take action in 2015 prior to or combined with the rulemaking for the 2015 RVO standards.
ASA Joins Coalition to End Embargo with Cuba – Prominent members of the U.S. food and agriculture community, including ASA, agreed to officially form a national coalition to address liberalizing trade between the United States and Cuba. The members of the coalition believe that it is time to end the embargo and allow open trade and investment to happen. Under current sanctions, U.S. food and agriculture companies can legally export to Cuba under provisions providing for humanitarian exemptions. However, financing restrictions limit the ability of the U.S. industry to competitively serve the market. Foreign competitors such as Brazil and Argentina are increasingly taking market share from U.S. industry because those countries do not face the same restrictions on financing.
ASA Urges President Obama to Make Market Access with China a Priority – As part of the ongoing effort by ASA and the U.S. Biotech Crops Alliance to elevate the importance of market access for agriculture in China, ASA and other producer groups joined together in outreach to the Obama Administration to raise the issue of biotechnology approvals in China. In meetings with key officials of the Administration, ASA has stressed the importance of high level and broad U.S. Government engagement with China on these issues, and requested that the issue be addressed during the President’s agenda in his recent meetings with Chinese President Xi Jinping. China is a key export market for U.S. farmers. Exports of U.S. corn, soybeans and dried distillers grains to China totaled over $16 billion in 2013, and this trade has been put at risk by China’s restrictive regulatory approval procedures for biotechnology products.
ASA Supports Neonicotinoids in Meetings and Letter to EPA – In meetings and then in formal comments filed with EPA, reiterated its support for pollinator health and the benefits of neonicotinoid seed treatments to soybean farmers. ASA stated that soybean farmers pledge to help promote new honey bee health programs to grower members—but have serious concerns about the focus on eliminating crop protection products as the remedy to rebuilding honey bee populations. ASA will continue to engage with both EPA and USDA on pollinator issues, focusing on both the science surrounding crop protection products as well as ways to improve forage.
ASA an Integral Partner in Data Principles Agreement – ASA along with fellow farm groups and partners in the precision agriculture technology industry unveiled “Privacy and Security Principles for Farm Data,” an agreement on data privacy and security principles that will encourage the use and development of a full range of innovative, technology-driven tools and services to boost the productivity, efficiency and profitability of American agriculture. The principles promise to greatly accelerate the move to the next generation of agricultural data technology, which includes in-cab displays, mobile devices and wireless-enabled precision agriculture that has already begun to boost farm productivity across the United States.
