Here is legislation that NMPF is watching and acting on dairy farmers' behalf:
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American Clean Energy and Security Act of 2009 (ACES)
This House bill, introduced by Representatives Waxman and Markey, would establish a greenhouse gas cap-and-trade system. NMPF supports the concept of cap-and-trade as long as agriculture is not a capped industry, and it is important to note that supporting cap-and-trade does not equal supporting all climate change legislation.
The House Agriculture Committee is considering drafting an Agriculture offsets bill to be included as a piece of the intended legislation. NMPF is fully engaged in the climate legislation discussions.
For more information on this subject, please visit NMPF's Climate Change Policy webpage.
Safe and Efficient Transportation Act of 2009
Also known as H.R. 1799, this House bill would responsibly raise truck weight limits to allow American businesses to meet demand with fewer trucks - removing unnecessary trucks from the highway, reducing our carbon footprint and improving shipping productivity. The legislation would allow individual states to increase their interstate vehicle weight limits to 97,000 pounds - but only for vehicles equipped with a sixth axle.
NMPF sent a letter to the House urging its members to support the bill because it would help the dairy industry operate more efficiently in these difficult times by keeping down one measure of cost in transporting milk and dairy products.
Child Nutrition Reauthorization
The Child Nutrition Reauthorization bill must be passed by both the House and the Senate to give additional funds for the School Lunch program. NMPF supports this bill because it would also help preserve dairy's place on the lunch line.
The bill must be reauthorized prior to its expiration in September 2009.
For more information about nutrition, please visit NMPF's Nutrition webpage.
New Zealand Trans-Pacific Partnership Free Trade Agreement
Late in 2009, the Obama administration's U.S. Trade Representative Ron Kirk notified Congress that the U.S. intended to proceed with negotiations to create a Trans-Pacific Partnership (TPP) free trade agreement (FTA). The TPP talks would include New Zealand, Australia, Chile, Peru, Singapore, Brunei, and Vietnam. NMPF had long stated that a non-WTO trade agreement like this was no place for dealing with the complex and greatly imbalanced dairy trade relationship between the U.S. and New Zealand.
A U.S.-New Zealand TPP would negatively impact the U.S. dairy industry. NMPF estimated that milk prices received by producers would drastically drop and gross revenues received by U.S. dairy farmers would plunge by a cumulative $20 billion over the first 10 years of the FTA if U.S. dairy restrictions on exports from New Zealand were fully phased out in the TPP FTA.
For more information about the New Zealand TPP FTA, please visit NMPF's Free Trade Agreements webpage.
Colombia, Panama, and Korea Free Trade Agreements
The House and Senate will also consider FTAs with Colombia, Panama, and Korea. NMPF supports their passage because they would gradually remove tariff barriers in the U.S. and in the FTA partner countries, including those on dairy products. These FTAs would generate net benefits to U.S. dairy producers.
It is currently unknown when the House and Senate will look at this legislation.
For more information about FTAs, please visit NMPF's Free Trade Agreements webpage.
WTO Doha Round Negotiations
NMPF will continue to monitor the progress of the WTO Doha negotiations. NMPF's efforts on the WTO are educational in nature, seeking to ensure that key members of Congress understand producers' goals and concerns regarding the negotiations.
It is unknown when the House and Senate will discuss the WTO Doha negotiations.
For more information, please visit NMPF's World Trade Organization webpage.
NMPF Statement on White House 2011 Budget Proposal
The proposed increases in USDA feeding programs, such as the WIC and Supplemental Nutrition Assistance Programs, are a net positive for dairy farmers, as they will increase purchases of milk and cheese at a time when some Americans are having trouble paying for those items with their own budgets. Additional nutrition program spending is a win-win for farmers and program participants alike.
NMPF opposes the proposed means-testing of farm program payments, both by reducing the AGI income limits of who may qualify for payments, and reducing the potential size of payments themselves. These issues were considered and dismissed when Congress approved the farm bill less than two years ago, and should not be on the table now as part of the Fiscal Year 2011 budget.
A fact sheet on USDA's 2011 budget is available here.
Estate Tax
The House of Representatives passed the Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Bill of 2009 (HR 4154) by a vote of 225-to-200 on December 3, 2009. The legislation would have permanently extended the current exemption for estates up to $3.5 million per individual and $7 million for married couples and set a maximum rate of 45 percent on estates above this threshold. In addition, the measure would repeal the enactment of carryover basis rules that would require many heirs to pay additional taxes on built-in gains of property inherited starting in 2010.
The Senate failed to pass any estate tax measures in 2009, thereby allowing for permanent repeal of estate taxes for 2010 only. The Senate is expected to take up a tax package in the early months of 2010.
NMPF will continue to support the highest exemption levels possible while maintaining the stepped-up basis. It is essential that Congress additionally deal with the unique problems that farmers and forest owners face with generational family transition.
2008 Farm Bill
NMPF worked hard on the 2008 Farm Bill for the dairy industry, and now that it's officially law, NMPF has been helping to ensure its implementation. Click here for a summary of the 2008 Farm Bill to see how it affects dairy producers.
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