Farm Bill Passes; Retailers Benefit

The Food, Conservation & Energy Act of 2008 Conference Report (H.R. 2419) — also known as the 2008 farm bill — has passed in both the U.S. House of Representatives and the Senate. Several key policies benefit ag retailers.

The House passed the bill on May 14 by a vote of 318-106 and the Senate approved the bill a day later by a vote of 81-15, a veto-proof majority in both chambers. This bipartisan legislation will continue to provide a safety net for America’s growers, promote bioenergy and conservation programs, and provide nutrition programs, according to an Agricultural Retailers Association (ARA) press release.

President George W. Bush has stated that he plans to veto this bill, possibly this week. Most experts expect both houses to override that veto.

The bill offers several provisions directly targeting the ag retail sector. “We’re pretty excited about having a number of issues in, especially the one that we’ve been working on for about three years — the Agricultural Chemical Security Credit,” says Dan Weber, ARA chairman and vice president of agronomy for Ceres Solutions.

Much of the credit for the farm bill’s passage goes to the many industry organizations that worked together and on specific areas of the farm bill, according to Ken Manning, ARA chairman-elect and Wilbur-Ellis Co.’s vice president and Pacific Intermountain business unit manager. The organizations include ARA, CropLife America, The Fertilizer Institute, and the Crop Producers & Distributors Association.

This bill is a bit unique from the retailer’s perspective, Manning points out. “The farm bill is one of the most important pieces of legislation for our industry to our customers, and now, with some of the various provisions that are included, it’s very important for our retailers as well.”

The key provisions for retailers in the 2008 Farm Bill Conference Report include:

  • Agricultural Chemicals Security Credit — Initiated by ARA, this proposal will allow agricultural retailers, distributors, aerial applicators, as well as manufacturers and formulators of certain fertilizer and pesticides a business tax credit equivalent to 30 percent of the total amount paid or incurred on implementing qualified security measures at their fertilizer and pesticide storage facilities. The provision provides for up to a $100,000 in security tax credits per facility, with an overall company cap of $2 million per year. The tax credit shall apply to security measures paid or incurred after the date of the enactment of the 2008 Farm Bill.

    “We thought it was important to figure out some way to help offset some of the security costs — which are mandated now, not options anymore,” Weber says. “We’re certainly not going to be able to do that through the normal margin structure.”

  • Technical Service Provider (TSP) Program Reforms — The reforms to the TSP program should help increase its availability and range of technical expertise available to growers, ranchers, and eligible landowners to plan and implement conservation measures.
  • Grants to Reduce Production of Methamphetamines from Anhydrous Ammonia — The grant would be used to add to an anhydrous ammonia nurse tank a physical lock or an additive that would help reduce the amount of methamphetamine that can be produced from any anhydrous ammonia removed from the nurse tank.

    Weber, who has been heavily involved with this provision, says that although this issue hasn’t received much press lately, it’s still a major problem. His own company had anhydrous ammonia stolen from one of its outlets just last week. “It really looks bad for agriculture when these kind of things happen in the neighborhood,” he says.

  • Limits Speculation and Increases Transparency in Energy Markets — Since 2002, Commodity Futures Trading Commission rules have exempted electronic energy markets for large traders from direct government regulations. This legislation includes measures to increase federal oversight authority to detect and prevent manipulation and limit speculation in U.S. electronic energy markets by increasing reporting requirements.

    Weber notes that the bill also includes funding to study the transportation system, which is especially critical to smaller retailers trying to preserve rail transport.

In the ARA press release, Jack Eberspacher, ARA president and CEO, thanked Sen. Pat Roberts (R-KS) and other legislators for their efforts on behalf of the security tax credit provision, along with ARA’s Richard Gupton, vice president of legislative policy & counsel, “for his efforts to secure passage of this bill.”

ARA also recognized special efforts made by state agribusiness organizations in Georgia, Kansas, Montana, Minnesota, Michigan, Nebraska, and North Carolina to ensure the Agricultural Chemicals Security Credit provision remained in the farm bill. “We would also like to thank other national, regional, and state members of the Agribusiness Security Coalition for their support of this important legislation,” Eberspacher added.

The bill has drawn support from more than 500 organizations, including American Farmland Trust (AFT), a conservation group. According to a press release, AFT “fought hard for subsidy reform with the Average Crop Revenue Election (ACRE) program, and won a victory for inclusion on this new program.”

Topics:

Leave a Reply

Legislation Stories

Syngenta Sign
Crop InputsSyngenta: Keep Ag In Mind During Election Season
February 10, 2016
As presidential candidates stake out their 2016 election platforms and key priorities, growers and their business partners should seek opportunities Read More
Legvold Farm, Northfield, MN
LegislationASA Notes Progress, Urges EU To Improve Biotech Approval Process
January 29, 2016
The American Soybean Association (ASA) urged the European Commission today to continue its work in addressing delays in the approvals Read More
LegislationARA, TFI: Retailers Urged to Consider PSM Compliance
January 20, 2016
In December, the Occupational Safety and Health Administration (OSHA) issued a revised Interim Enforcement Policy addressing enforcement of Process Safety Read More
United States Capitol Building in Washington D.C.
LegislationCongress Halts OSHA Overreach; Significant Victory For Ag Retailers
December 21, 2015
Congress just put the brakes on the Occupational Safety and Health Administration’s regulatory overreach. On July 22, OSHA released an Read More
Top 100 Articles
Elburn Cooperative
CropLife 100Elburn Cooperative Members Vote To Join CHS
December 28, 2015
With 81% of eligible producers voting, 94% cast an affirmative ballot for Elburn Cooperative, a diversified agricultural retailer based out Read More
West Central Cooperative, Jefferson, IA
CropLife 100Farmers Cooperative-West Central Merger Approved
December 21, 2015
The members of Farmers Cooperative Co. (FC), Ames, IA, and West Central Cooperative, Ralston, IA, have both approved the merger Read More
Wheat Growers Innovation Center, Bath, SD
CropLife 100Wheat Growers Opens Innovation Center
December 21, 2015
Wheat Growers’ commitment in providing its farmer-owners with the latest in technological advancements now has a one-of-a-kind focal point, as Read More
CropLife 100ARA Selects The Andersons As 2015 Retailer Of The Year
December 9, 2015
The Agricultural Retailers Association today named Maumee, OH-based The Andersons as its Retailer of the Year for 2015. The award Read More
CPS Washington Court House John Deere Sprayer
CropLife 100Application Equipment Report: It Is Easy Being Green For Top 100 Ag Retailers
December 5, 2015
On The Muppets television show, Kermit the Frog is famous for singing a song about the troubles he encounters in Read More
Fertilizer Bin
CropLife 100Fertilizer Sales: Another Down Year For Top 100 Ag Retailers
December 4, 2015
In pure number terms, the fertilizer category still dominates all crop inputs/services among CropLife 100 ag retailers. In 2015, for Read More
Latest News
Crop Protection Products in storage
Crop InputsNewsweek: World Is ‘Awash In Glyphosate’
February 11, 2016
The world is awash in glyphosate, the active ingredient in the herbicide Roundup, produced by Monsanto. It has now become Read More
Crop InputsEPA: Let’s Talk Imidacloprid, Bees On February 18
February 11, 2016
EPA will hold an online technical briefing on its preliminary pollinator risk assessment for imidacloprid, a neonicotinoid insecticide, on Feb. Read More
ManagementThe latest on Syngenta-ChemChina Deal
February 11, 2016
Executive Editor Paul Schrimpf invites Jackie Pucci and Dave Frabotta from sister publication AgriBusiness Global to discuss the latest developments Read More
AdjuvantsUniversity of Illinois Confirms Adjuvant’s Perfor…
February 11, 2016
An independent University of Illinois study has shown that WETCIT adjuvant, now with TransPhloem technology, provides greater herbicide uptake and Read More
Crop InputsSyngenta’s Acuron Flexi Receives EPA Approval
February 11, 2016
Growers looking to control their toughest weeds with flexibility will have access to Acuron Flexi corn herbicide from Syngenta, now Read More
EquipmentAGCO Showcases White Planters 9800VE Series Planters AT…
February 11, 2016
AGCO unveiled the new White Planters 9800VE Series planter during the 2016 National Farm Machinery Show in Louisville, KY. The Read More
EquipmentCase Unveils 2000 Series Early Riser Planter At NFMS
February 10, 2016
Case IH revealed the all-new 2000 Series Early Riser planter to media and attendees at the opening of the National Read More
Syngenta Sign
Crop InputsSyngenta: Keep Ag In Mind During Election Season
February 10, 2016
As presidential candidates stake out their 2016 election platforms and key priorities, growers and their business partners should seek opportunities Read More
Crop InputsMarrone Bio Innovations Submits New Bio-Fungicide For E…
February 9, 2016
Marrone Bio Innovations, Inc. (MBI) today announced that it has submitted a new biological fungicide (MBI-110) to EPA. The broad spectrum Read More
Crop InputsWeed Expert: Adding A Second Herbicide Not Always Easy
February 9, 2016
In my last post, I reviewed some recent research that suggests one of the best ways to delay the evolution Read More
Crop InputsGenetic Literacy Project: Farmers Need More Herbicide C…
February 9, 2016
There are two things that I think just about every weed scientist can agree on, writes Andrew Kniss for The Read More
HerbicidesWeed Expert Warns North Dakota Growers Of Coming Herbic…
February 9, 2016
Ford Baldwin painted a bleak picture of weed control at a recent workshop here exploring the future of ag production, Read More
HerbicidesWSSA Announces New, Updated Free Web Resources
February 9, 2016
Today the Weed Science Society of American (WSSA) announced that new and updated educational materials for both weed scientists and Read More
Soybean field
FungicidesFour Arysta Fungicide Formulations Given FIFRA Approval…
February 8, 2016
Arysta LifeScience North America recently announced the issuance of Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) Section 2(ee) Recommendations for Read More
FungicidesAgri-Fos Systemic Fungicide Plus Receives EPA Registrat…
February 8, 2016
Vivid Life Sciences has announced the EPA registration of Agri-Fos Systemic Fungicide Plus, a highly concentrated active ingredient phosphite fungicide, Read More
Crop InputsBayer Contests EPA’s Decision On Valuable Insecticide F…
February 5, 2016
Crop Science, a division of Bayer, has announced it has refused a request by the Environmental Protection Agency (EPA) to Read More
Wheat Field North Dakota
Seed/BiotechSyngenta Wins Seed Fraud Suit Against South Dakota Grow…
February 5, 2016
Syngenta has obtained a $25,000 settlement from Paul and John Mayclin, Mayclin Farms, Plankinton, SD, in response to their Plant Read More
ManagementOABA Annual Conference Wraps Up In Columbus
February 5, 2016
More than 300 Ohio AgriBusiness Association (OABA) members and industry professionals were on hand to engage in collaborative learning and Read More