2021 South Carolina Sale Barn Cattle Receipts

solution to the challenges of market forces; however, the industry cannot survive if the current disparity is left unchecked. We appreciate the ability to work with NCBA and other affiliates to find an approach that works for the benefit of the entire industry.” “Pennsylvania cattle producers have been facing extreme market uncertainty and a host of other challenges for more than a year. Their frustration reflects very real challenges to producer profitability, and we need to act to return market leverage to farmers and ranchers. This NCBA-led letter gives clear direction to Congressional leadership about issue areas that need their focus, and points us in the direction of meaningful action,” said Pennsylvania Cattlemen’s Association President Cliff Orley. “With a wide range of voices on the House and Senate Agriculture Committees, it’s more important than ever that our industry clearly articulate our needs to our elected officials. Pennsylvania Cattlemen’s thanks NCBA for its leadership, and we will continue working to strengthen the business climate for producers across the country.”

NCBA Welcomes New Study Highlighting the Negative Impacts of Transfer Taxes. Recently, the Texas A&M Agricultural and Food Policy Center released a report quantifying the negative impact imposing new transfer taxes will have on U.S. cattle and beef producers. The conclusions of the study support NCBA’s position on tax policy for rural America that creates a viable business climate for family owned businesses, including farms and ranches.

This study, requested by Ranking Member of the Senate Committee on Agriculture, Nutrition, and Forestry John Boozman and Ranking Member of the House Committee on Agriculture GT Thompson, reveals the significant impact two proposed bills would have on long standing provisions in the tax code. The STEP Act would eliminate stepped up basis at the time of death of an owner. The 99.5% Act would, most notably, decrease the estate tax exemption from the current $11.7 million per individual and $23.4 million per couple to $3.5 million per individual and $7 million per couple. The study proves that, because of their unique structure, family owned businesses are particularly susceptible to changes in the tax code. In fact, if both bills were implemented, 98 percent of the representative farms used in the study would have seen an average tax increase of $1.4 million.

“This study supports what NCBA has long advocated for — tax policy for rural America that encourages generational transfer, instead of acting as a barrier for the next generation of agriculturists to contribute to a safe, reliable and abundant food supply chain. From the results of the study, it is clear that these proposed bills would have significant and, in some cases, devastating effects on family owned businesses,” said Senior Executive Director of Government Affairs Danielle Beck. “We appreciate Senator Boozman and Representative Thompson taking action to preserve sound tax policies and ultimately supporting the businesses that are the backbone of rural economies across the United States.”

With more than 40 percent of farmland expected to transition in the next two decades, Congress must prioritize policies that support land transfers to the next generation of farmers and ranchers. When doing this, it is imperative that lawmakers take into consideration the complexity of the implications of taxes on family owned businesses. In the case of farms and ranches, the United States Department of Agriculture (USDA) reports that 91 percent of assets are illiquid. This means that to pay off tax liabilities at the time of an owner’s death, surviving family members may be forced to sell off land, farm equipment, and sometimes parts of the operation. If farmland is lost and therefore transitioned out of production, the environmental benefits that come along with the deliberate stewardship done by farmers and ranchers will be lost as well.

“Farmers and ranchers conserve nearly 900 million acres of crop and rangeland in the United States. The vital work done by cattle and beef producers to deliver an array of environmental benefits such as restoring wildlife habitat, sequestering carbon, and protecting and improving water quality, depends on their ability to stay in business. Federal tax policy that facilitates generational transfer and allows the next generation of producers to build upon the environmental and economic benefits of today’s farmers and ranchers is just as important for fifth generation producers as it is for first generation, veteran, and minority community producers who are breaking into and establishing a foothold in the industry,” said Beck.

Additional Cattle Markets Legislation Introduced in U.S. House. Recently, Representative Vicky Hartzler (R-Mo.-4) introduced the Optimizing the Cattle Market Act of 2021 in the U.S. House. The legislation builds on a growing consensus among cattle producers, industry leaders, and Members of Congress that the current market dynamics — which stunt producer profitability and put undue market leverage on the side of meatpackers — are not sustainable for the beef supply chain.

If enacted, the bill would direct the U.S. Department of Agriculture (USDA) to create a cattle formula contracts library and increase the reporting window for “cattle committed” from seven to 14 days. These measures would increase transparency in the industry and improve the opportunity for robust price discovery.

Representative Hartzler’s legislation also reiterates the need for expedited reauthorization of USDA’s Livestock Mandatory Reporting (LMR) program, a step NCBA has long pushed for and reached agreement on with other industry groups.

The bill would also require USDA, in consultation with the Chief Economist, to establish mandated minimums for regional negotiated cash and negotiated grid live cattle trade. Minimums would be set within two years of passage of the bill and would invite stakeholder input through a public comment period and the consideration of key, peer reviewed research from land grant universities.

NCBA’s member driven, grassroots policy does not support mandated minimums at this time, opting instead for a voluntary solution. NCBA’s grassroots policy also provides for a change in direction should certain conditions be met, which would mean pursuing a legislative or regulatory solution determined by the membership.

“The growing momentum we’re seeing in the House and Senate behind addressing these critical concerns in the cattle markets is reflective of the urgency producers are feeling across the country. Extreme market volatility, unpredictable input costs, a shifting regulatory landscape, and natural crises like drought leave cattle farmers and ranchers with a growing list of threats to their continued financial viability. Something needs to give,” said NCBA Vice President of Government Affairs Ethan Lane. “NCBA, alongside our affiliates and other industry associations, shares Rep. Hartzler’s objectives and welcomes the discussion this bill will bring. While a government mandate on regional minimums for negotiated trade continues to be a hotly debated topic among producers, we are encouraged to see a proposal that builds on past efforts and moves us closer toward a realistic finish line.”

January February March April May June July August September October November December Chester 728 308 1,104 919 726

Darlington 1,090 581 2,432 1,283 866

Laurens 1,194 1,325 1,964 1,593 1,373

Orangeburg 830 786 1,123 1,187 959

Saluda 2,056 1,355 3,094 2,482 2,324

Williamston 2,812 1,313 2,792 2,255 1,949