01/14/2013

Page 1

S P E C I A L

R E P O R T

‘Photo Contest’ Farm Bureau announces winners | 4

January 14, 2013 Vol. 92

‘Farmer lawsuit’ EPA withdraws order in face of lawsuit | 3

‘Farm Dust’

EPA stands by pledge on no new regs | 6

Corps makes progress on Mississippi River rock pinnacles

No. 1 fbnews.org

Latest marketbasket shows retail food prices decline slightly in fourth quarter 2012 Shoppers paid a bit less for food at the grocery store during the fourth quarter of 2012, with some popular fruits and veggies showing a decline in retail price. Lower retail prices for Russet potatoes, bagged salad and apples, among other foods, resulted in a slight decrease in the latest American Farm Bureau Federation Quarterly Marketbasket Survey. The informal survey shows the total cost of 16 food items that can be used to prepare one or more

meals was $50.54, down $1.36 or about 3 percent compared to the third quarter of 2012. Of the 16 items surveyed, 10 decreased and six increased in average price compared to the prior quarter. “While prices were down from the third quarter, compared to a year ago, the marketbasket price was actually higher compared to a year ago, by about 3 percent,” said John Anderson, AFBF’s deputy chief economist. “Throughout 2012, food prices were relatively

stable, thanks to very slow but steady growth in the general economy coupled with fairly stable energy prices. For this year, we expect food prices to rise by 3 to 4 percent, which is slightly higher than the average rate of inflation over the past 10 years.” Items showing retail price decreases for the third quarter included Russet potatoes, down 39 cents to $2.62 for a 5-pound bag; Prices Continued on Page 8

Congress edges away from fiscal cliff

Expedited dredging and rock removal, helped by higher temperatures and potential rainfall, will keep the Mississippi River near Thebes, Ill., deep enough for barges, at least through Jan. 31, according to the U.S. Army Corps of Engineers.

Continued on Page 6

©istockphoto.com/mccaig

n e w s p a p e r

WHEN THE 113TH CONGRESS reports for duty later this month, lawmakers will face a hefty work order that includes passing a comprehensive five-year farm bill and making considerable cuts to federal spending. In the early hours of the new year, Congress approved a plan to keep the country from going over the “fiscal cliff,” for now. The measure, with its provisions making permanent the $5 million estate tax exemption and extending the 2008 farm bill for nine months, is a mixed bag for farmers and ranchers. “While much work remains on addressing the spending side of the ledger, the fiscal cliff package that was just approved injected a good dose of certainty into our nation’s tax policy,” said American Farm Bureau Federation President Bob Stallman. “That is a major achievement.” The measure retained the $5 million per person exemption level for the estate tax, which was in danger of falling to just $1 million. In addition, the exemption

is indexed for inflation and any unused portion of the exemption can be transferred to a spouse. On the minus side, the top estate tax rate increased from 35 percent to 40 percent. Permanent capital gains tax provisions that retain lower rates for most taxpayers was a positive point, as was the inclusion of enhanced expensing provisions for businesses. The bill also permanently sets income tax brackets at 10 percent, 25 percent, 28 percent and 35 percent for taxpayers making less than $400,000 ($450,000 for a couple). For many, the marriage penalty is eliminated. The measure increases the Alternative Minimum Tax exemption for 2012 to $50,600 for individuals and $78,750 for married couples filing jointly and indexes it for inflation.

In addition, the measure extends many expired tax provisions, including those related to biofuels and deductions for donated food, state and local general sales taxes, and tuition and fees for higher education. Growers are far less impressed with how Congress handled the farm bill, according to Stallman. “Extension of the 2008 farm bill is little more than a stop-gap measure,” he said. “We are glad that a measure is in place for most of this year, but we are disappointed that Congress was unable or unwilling to roll a comprehensive five-year farm bill proposal into the fiscal cliff package.” The extension through Sept. 30 applies to most provisions of the 2008 farm bill. It does not include Cliff Continued on Page 6


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.