Decoding Soybean Policy

Decoding Soybean Policy

Michael Dolch, Director of Public Affairs, Iowa Soybean Association

IFLM. RFIP. BFTC. USMCA. BTC. RFS. SRE. Seven acronyms. Twenty-six letters.

During this prolonged period of unprecedented rainfall, trade headwinds, program complexity and market turmoil – a time when the only certainty is uncertainty – these acronyms/letters represent and harness the potential of agriculture and soybean policy.

Passed by the Iowa House and Senate and signed by Iowa Governor Kim Reynolds, the Ag & Natural Resources Appropriations bill provided funds continuing the Integrated Farm and Livestock Management (IFLM) Demonstration Program. Set forth as a key initiative by ISA membership, this was a big legislative win during the 2019 session. IFLM funding is leveraged to link land use management decisions and inputs with natural resources considerations. The legislature’s ongoing support plays a critical role in furthering the mission of ISA’s On-Farm Research team.

ISA extends a special "thank you" to State Senator Tom Shipley of Adams County and Representative Norlin Mommsen of Clinton County for negotiating a responsible, farmerfriendly ag appropriations bill.

The legislature fully funded the Renewable Fuels Infrastructure Program (RFIP) through the appropriations process. RFIP increases consumer access to renewable fuels by providing retailers cost-share dollars to install flex fuel pumps or other infrastructure for biodiesel, E15 and E85. Lawmakers approved a measure to update and expand the Beginning Farmer Tax Credit (BFTC) Program. The ISA-backed bill, signed into law May 21, expands the program to increase participation and provide an opportunity for beginning farmers to lease ground.

Downshifting into a slower gear, let’s bring federal policy into focus for a moment. As I write, the House Ways and Means Committee is preparing to mark up legislation which would extend expired tax incentives through 2020, including the biodiesel tax credit (or BTC).

The proposal, coming on the heels of a National Biodiesel Board meeting in which ISA participated, would not only provide biodiesel producers much-needed certainty, but also incentivize investment and growth in domestic production capacity. Let’s not leave the Renewable Fuels Standard (RFS) on the sidelines.

We applaud Senators Charles Grassley and Joni Ernst, as well as Iowa’s House delegation, for ongoing efforts to reign in EPA’s waiver – small refinery exemption (SRE) – authority. These waivers have reduced biodiesel volume obligations under the RFS by more than 360 million gallons, nearly all of Iowa’s production capacity.

The clock is ticking for ratification of the U.S.-Mexico- Canada Agreement (USMCA). Last month, we welcomed news that President Trump had reached a deal to lift Section 232 metal tariffs, removing a major roadblock to passage. Earlier this month, ISA joined nearly 1,000 agricultural and food associations on a letter urging Congress to act and swiftly ratify the trade agreement. The modernized pact builds on the success of NAFTA, which has quadrupled soybean exports to Mexico and doubled those to Canada since going into effect.

These are only a handful of the many legislative and regulatory issues we’re tackling alongside our farmer members. This year, two ISA members have testified before the U.S. Congress, bringing a voice to issues like the BTC and catastrophic floods affecting farmers across the Midwest. ISA will continue to work with regulators and elected officials to decode and simplify policy, and to realize the potential our industry has to offer.

MDolch@iasoybeans.com