Farm Bill

The tax reform proposal could benefit small-town businesses, but it could also undermine programs that support rural hospitals if the national debt grows.
File: Grant Gerlock / Harvest Public Media

Many rural businesses and farms will benefit from the tax overhaul passed Wednesday by Congress. But there’s a catch: If the changes fail to spur economic growth as intended, programs that rural areas rely on could be on the chopping block.

One provision in the massive bill, which President Trump has yet to sign into law, allows small business owners to deduct 20 percent of their business income. It also expands the deduction for small business investment — a popular provision among farmers, who can write off the cost of things like a new tractor.

As governor of Georgia, Sonny Perdue visited the U.S. Embassy in Uruguay in 2010.
USEMBASSY_MONTEVIDEO / FLICKR

President Donald Trump’s pick to lead the U.S. Department of Agriculture, former Georgia Gov. Sonny Perdue, testified in a confirmation hearing before the Senate Agriculture committee today, but remains far from the head job at USDA.

 

The committee did not indicate when it would vote on whether to advance Perdue’s nomination.

 

Iowa Farmers Union president Aaron Lehman says farmers, politicians and consumers will need to work together to pass the best Farm Bill.
Amy Mayer / Harvest Public Media

President Donald Trump has nominated former Georgia Gov. Sonny Perdue as Agriculture Secretary, bucking a recent trend of Midwest leadership at the U.S. Department of Agriculture and making many in the farm country of the Midwest and Great Plans a little leery.

Coupled with the appointments of leaders from Oklahoma and Texas to head the Environmental Protection Agency (EPA) and the Department of Energy, respectively, there looks to be a shift in the power center of the parts of the federal government that most directly impact agriculture.

At a stressful time for U.S. farmers, the government’s efforts at calming the agricultural waters took center stage Thursday, when the heads of the U.S. Senate’s Agriculture Committee left Washington for the Midwest to solicit opinions on priorities for the next Farm Bill.

U.S. Sens. Pat Roberts, R-KS, and Debbie Stabenow, D-MI, heard from Midwest farmers at their first field hearing on the 2018 Farm Bill at Kansas State University in Manhattan, Kansas.

President-elect Donald Trump plans to pick former Georgia Gov. Sonny Perdue to lead the Agriculture Department, a transition official and a source close to the process confirmed to NPR.

Trump is expected to make a formal announcement on Thursday, ending a months-long process that left Agriculture Secretary as the final Cabinet post to be filled.

And then there was Agriculture.

Agriculture Secretary is the only post in President-elect Donald Trump’s Cabinet without a nominee, mystifying many in rural America and spurring worries that agriculture and rural issues will land near the end of the line among the new president’s priorities.

USDA Secretary Tom Vilsack, who served for all 8 years of Barack Obama’s presidency, announced Friday was his last day in office.

While the third and final presidential debate set for Wednesday evening will surely be marked by the candidates’ disagreements, a forum debating their positions on food and farm issues Wednesday morning was notable for showcasing where the nominees agree.

This year will be another tight one for farmers, at least if the federal government’s predictions are correct.

Farm income will sink to its lowest point since 2009, according to the latest U.S. Department of Agriculture forecast. The USDA expects net farm income will drop 11.5 percent to $71.5 billion this year, which would mark the third-straight year of falling income.

Laying hens flock to the oats Matt Russell tosses to them at Coyote Run Farm in Marion County, Iowa.
Amy Mayer / Harvest Public Media

Farmers face plenty of risk, including the unknowns of weather, global markets and the more predictable expenses of taxes and equipment costs.

Federal commodity support programs were created to help farmers during bad years. But under a relatively unknown provision of federal law, farmers don’t have to actually grow a particular crop to get farm bill payments.

That might sound like “paying farmers not to farm,” but it’s actually a complicated way of helping to reduce over-dependence on one crop.

Crop Insurance Programs Subject Of Intense Farm Bill Lobbying

Jul 17, 2014
Mike Crawford stands at his farm near Danville, Ill. He says crop insurance is an important risk-management tool for farmers.
Darell Hoemann / Midwest Center for Investigative Reporting

After two years of debate, the U.S. Congress passed a Farm Bill this year that replaced direct subsidies to farmers with an ever increasing multi-billion dollar federal crop insurance program.

During that time, at least 80 groups spent more than $50 million in lobbying efforts that included ensuring their interests in the often criticized program were well-represented.

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