Our successes for soybean farmers this fall included steps forward to strengthen international trade, guidelines for uniform, voluntary GMO labeling, a much improved final RFS that provides stability and growth for biodiesel, and restoration of $3 billion in cuts that Congress had made to crop insurance. As 2015 comes to an end, of course there’s more work to be done, but here’s a highlight of just some of ASA’s major efforts, accomplishments and ongoing initiatives. Stephen Censky, ASA CEO
RFS Final Rule Provides Stability and Modest Growth for Biodiesel- The EPA released the Final Rule setting the RFS volume requirements at the end of November, including the volume requirements for biomass-based diesel for 2014-17. The Final Rule sets the biomass-based diesel volumes at the following levels: 2014 – 1.63 billion gallons; 2015 – 1.73 billion gallons; 2016 – 1.9 billion gallons; 2017 – 2.0 billion gallons. These volume levels represent a modest improvement over the Proposed Rule.
Highway Bill Passed, Includes Crop Insurance Fix- A fix for the $3 billion in cuts to the crop insurance program originally included in the budget deal from last month has been included as part of the Highway Bill that has been sent to President Obama for signature. Following an agreement reached by the House and the Senate that would avoid more than $3 billion in cuts to the nation’s crop insurance program as part of the budget package, both chambers have passed the bill on to the White House. The agreement followed a tumultuous three-day fight over the bill’s inclusion of the proposal that would have accomplished the cuts by reducing the rate of return for crop insurance companies from 14 percent to 8.9 percent. ASA was extremely and publicly critical of the original attempt to cut crop insurance, and we maintain our position against opening any part of the farm bill for further spending cuts.
ASA Welcomes White House, FDA GMO Labeling Developments and Calls on Senate to Move Legislation Forward- ASA welcomed guidance issued in mid-November by the FDA that establishes guidelines for the uniform, voluntary labeling for non-GMO foods. This has been a key part of ASA’s push to reduce consumer confusion about which foods do and do not contain ingredients derived from biotechnology. In October, more than 20 leaders and staff from ASA and state affiliates helped lead a fly-in organized by the Coalition for Safe Affordable Food in Washington, D.C. to urge Senators to back the Safe and Accurate Food Labeling Act. In November, the White House administration rejected a petition calling for the mandatory labeling of GMO’s as indication that the discussion on biotechnology in the consumer marketplace is moving according to science, rather than misconception.
Soy Growers Lead Coalition Push for TPP- ASA led a coalition of farm groups to champion the TPP and what it means for American farmers at a press event in November. ASA is calling on Congress to take up and approve the agreement as quickly as possible. TPP will further expand our access to valuable markets in Asia and Latin America, and provisions will help eliminate many of the non-scientific barriers to market entry that hang us up in particular markets. If approved, TPP will eliminate tariffs on soybeans, oil and meal in each of the 12 TPP nations within a set timeframe. The spotlight now shifts to Congress, where the agreement faces a stiff political headwind.
ASA Urges U.S. to Keep Up Pressure on China Biotech Approvals- ASA continued its pressure in November on USDA Secretary Tom Vilsack, Secretary Penny Pritzker and Ambassador Michael Froman urging them to continue pushing for timely, science-based biotechnology approvals in China. Specifically, ASA is looking to the U.S government to follow-up on the short term commitments made by China to advance the full queue of products, and to issue safety certificates for all products that have cleared the National Biosafety Committee by year end.
Farmers Want Answers from EPA, Corps on Waters of the U.S. Webinar- In October, ASA and other agricultural groups sent a letter EPA Administrator Gina McCarthy and U.S. Army Secretary John McHugh, asking that they release answers provided at a closed webinar on WOTUS held in September, which covered several questions on growers’ minds regarding jurisdictional and non-jurisdictional ditches and canals, how the agencies will determine whether a ditch that has been in place for decades is a “relocated tributary” or is “excavated in” a tributary and whether permitted discharges into these ditches must be designed to meet water quality standards in the ditch or in the receiving water. ASA and other organizations emphasized that farmers and ranchers are struggling to understand the practical implications of the final rule and asked not only for answers from that webinar, but from any future webinars be made public immediately.
Biodiesel Tax Incentive Edges Closer to Extension – In December lawmakers in the House and Senate introduced updated legislation to reinstate the biodiesel tax credit through 2016 and reform it to a producer’s credit starting next year. The legislation also includes an important technical update ensuring that biodiesel used in off-road applications such as Bioheat will not incur excise tax. The House bill was introduced by Reps. Kristi Noem, R-S.D., and Bill Pascrell, D-N.J., while the Senate version was introduced by Sens Charles Grassley, R-Iowa, and Maria Cantwell, D-Wash., as an update to their earlier legislation that passed the Senate Finance Committee in July. Finalizing it marks another positive step toward winning reinstatement of the tax credit as Congress wraps up its legislative business for the year. Lawmakers from both parties are currently negotiating the parameters of a tax extenders deal and have expressed hope for putting together a compromise package soon.
Soy Growers Urge Congress to Restore Section 179- Soy growers sent a letter to the U.S. House of Representatives in November, urging them to restore the higher Section 179 expensing limits and 50 percent bonus depreciation, both of which expired on Dec. 31, 2014. With the significant need for farmers and ranchers to continuously invest in machinery, equipment and other depreciable assets, the need to renew the higher Section 179 small business expensing limits and 50 percent bonus depreciation is great. ASA is a supporter of the renewal of the expired tax code Section 179 small business expensing and bonus depreciation and hopes to see it included in a multi-year extenders package.
Congress Avoids Rail Disruption with PTC Extension- The House and Senate passed legislation in November that included a three-year extension of the Positive Train Control (PTC) implementation deadline. Railroads had indicated that without an extension, rail service in many corridors could have been halted. ASA joined with agricultural industry partners and many other stakeholders in urging Congress to extend the PTC deadline to avoid any disruption in rail service.
Congress Approves Reauthorization of U.S. Grain Standards Act- Congress passed a reauthorization bill in October, which renews important provisions in the U.S. Grain Standards Act (USGSA). These include stronger language requiring FGIS to provide export inspections in the event of a suspension of services by a delegated state inspection agency—a priority for ASA and other farm organizations following the withdrawal of services at the Port of Vancouver by the Washington State Department of Agriculture in July 2014 and the refusal by FGIS to take over until a lockout of dock workers at the port ended the following month. At the request of ASA, NCGA, NAWG, and AFBF, the Senate Agriculture Committee obtained a commitment from USDA that the Secretary of Agriculture has authority to hire private security personnel to guarantee the safety of FGIS inspectors, which had been an issue in the Port of Vancouver suspension.
Soy Growers Express Concerns with EPA’s Pollinator Health Proposal- In September, ASA and PPC submitted comments to EPA, underscoring concerns that its proposal to improve pollinator health could have significant adverse consequences for growers with little guarantee of improvements. While ASA supports programs to improve pollinator health, concerns include EPA’s “one size fits all” approach limiting flexibility agricultural producers need in some pest control situations and state managed pollinator protection plans (MP3s) need to be developed with significant grower involvement which will require more time and resources than what EPA appears ready to provide.
