Nat'l Corn Growers Assn Expresses Support For Portions Of Senate Reconciliation Bill

Source: National Corn Growers Association news release The National Corn Growers Association (NCGA) applauded pieces of the Budget Reconciliation bill, which passed the U.S. Senate today. "NCGA has worked closely with members of Congress as they drafted and voted on this legislation," said Illinois farmer and NCGA President Kenneth Hartman Jr. "We are particularly pleased to see the permanent extension of certain tax provisions, which will provide more certainty to corn farmers around the country as they plan for the future of their businesses." The bill contains many of NCGA's federal tax priorities, including: Permanently extending key provisions from the Tax Cuts and Jobs Act of 2017, including the expanded estate and gift tax exemptions, the qualified business income deduction and 100% bonus depreciation. Extending and modifying the clean fuel production tax credit, referred to as 45Z. The tax credit can help the biofuels industry make inroads into the aviation sector and attract investment into opening new markets for U.S. corn. One positive inclusion in the Senate's 45Z language is its allowance of transferability of the credit. However, the Senate language reduces the value of the credit from $1.75 to $1.00 and shortens the lifetime of the credit from 2031 to 2029, actions that could injure the new market's growth potential.

The bill also contains several of NCGA's longstanding farm bill priorities, including: Addressing the affordability of federal crop insurance coverage for producers, including support for beginning farmers and ranchers. Doubling mandatory funding for trade promotion programs, which will develop new markets and promote U.S. goods, helping to boost U.S. agricultural exports.

Strengthening the producer safety net by investing in modifications to the Agriculture Risk Coverage and Price Loss Coverage commodity programs that are more responsive to the current economic environment. "While we would prefer to advance major agricultural legislation through a comprehensive farm bill, we are appreciative of the Senate leadership for getting a bill with many of our tax and farm bill priorities passed," said Hartman. NCGA has also advocated for policies to ensure that all base acres and payments better reflect growers' recent planting history and is disappointed that meaningful reforms to existing base acres was not included in the bill.