Michigan farmers will deliver policy messages on Capitol Hill

Discussions will center on cap-and-trade, estate tax, trade agreements

Contact: Ryan Findlay, (800) 292-2680, ext. 2025

LANSING, March 5, 2010 - In an effort to help Michigan's Congressional delegation better understand how issues on Capitol Hill impact farmers' families and businesses back home, about 120 farmers from across the state will travel to Washington, D.C., March 10-11, for Michigan Farm Bureau's Washington Legislative Seminar.

Topics of conversation at this year's seminar will center on:

Why mandatory cap-and-trade legislation in the Senate is bad for agriculture and should be defeated, and why Congress should focus on a comprehensive energy bill.
Why the federal estate tax should be permanently repealed or reformed to help families keep their farms at times of transition from one generation to the next.
Why Congress should pass pending trade agreements with Panama and Colombia and normalize trade with Cuba to expand agricultural export markets.

Seminar attendees will also have opportunities for targeted discussions on responsible antibiotic use in animals and immigration reform for agricultural labor needs.

In addition, they will visit the U.S. Department of Agriculture headquarters where Jim Miller, USDA Under Secretary for Farm and Foreign Agriculture Services, will provide an update on federal farm programs.

More information about the priority issues and Farm Bureau policy is highlighted here.

Cap-and-trade legislation
Farm Bureau supports comprehensive energy policy but contends legislation meant to reduce greenhouse gas emissions by imposing mandatory cap-and-trade regulations is flawed. The U.S. House of Representative has already passed a cap-and-trade bill that Farm Bureau opposed, and the Senate is considering its own version, also opposed by Farm Bureau.

"Focus now is on defeating the Senate bill which is bad for agriculture in a variety of ways," said Ryan Findlay, MFB national legislative counsel. "For starters, the legislation would result in higher energy costs for all Americans and, in turn, raise farmers' operating expenses. And without other nations also agreeing to cut emissions it will reduce farmers' global competitiveness while providing only limited environmental benefit."

And while programs have been proposed to pay farmers for certain carbon-reducing agricultural practices to help offset higher energy prices there's concern few Michigan farmers would benefit. In addition, there's also fear the legislation could lead to a significant amount of farmland being converted from food production to forestry.

"We'll be urging members of Congress to refocus and work toward comprehensive energy policy that better meets everyone's needs," said Findlay.

Estate tax
The federal estate tax has been temporarily repealed this year but is scheduled to return with vengeance in 2011 when the exemption will drop from the 2009 level of $3.5 million to $1 million, affecting many more people, and the top tax rate will rise from the 2009 level of 45 percent to 55 percent.

The "death tax" has been a longtime burden which has threatened the ability of families to transition farms from one generation to the next.

"The problem is the value of Michigan's family farm today will likely exceed the estate tax exemption established for 2011," said Findlay. "An estimated 80 percent of farm assets are land based, so when estate taxes exceed cash and other liquid assets on hand, surviving family members can be forced to sell land, buildings or equipment needed to keep the farm operational."

Farm Bureau policy calls for meaningful relief from the estate tax, with no conditions or qualifications. An increase in the overall exemption is Farm Bureau's main priority until permanent repeal is achieved.

Trade agreements
Michigan farmers produce many commodities which are in demand in other countries, such as dry beans, pork and cherries, and agricultural exports play an important role in Michigan's agriculture industry.

There is an opportunity to expand markets to Panama and Columbia, but Congress has yet to approve the negotiated trade agreements with these countries, said Findlay. Combined, the two agreements represent more than $1.5 billion in additional U.S. agricultural exports, according to Farm Bureau estimates.

Farm Bureau-policy supports the trade agreements with Panama and Columbia and urges Congress to approve them swiftly.

Farm Bureau also supports legislation in the House which would ease restrictions on agricultural trade with Cuba through different measures, including opening up travel for U.S. citizens to Cuba, thereby reducing the bureaucratic red tape currently required for conducting trade missions there.

Currently, the United States exports about $450 million in agricultural products to Cuba, but there is huge potential to grow this upwards of $1 billion or more, especially with Cuba's close proximity just 90 miles from the U.S. border.

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