THE LAND — DECEMBER 24/DECEMBER 31, 2021
www.thelandonline.com — “Where Farm and Family Meet”
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Several key policy issues are at the forefront in 2022
Congress continues to be highly divided Program (CSP), and other conservation Ethanol and biodiesel policy and developon many key topics and will likely remain programs. The BBB bill also contains ment — Many states in the Upper Midwest, includin that mode until after the 2022 midfunding for renewable energy developing Minnesota, have a well-established corn-based term elections, and possibly longer. Most ment (primarily wind and solar energy), ethanol industry, which utilizes over 35 percent of likely, we will continue to have renewable diesel tax credits, research the corn produced each year in the United States. In Congressional discussions on infrastrucand development of sustainable aviation addition to the direct benefits to farmers, renewable ture legislation and funding, climate fuels, and transition to electric vehicles. energy plants have become cornerstones in rural change and carbon sequestration, renewThe House version BBB bill did not communities by providing jobs, adding to the local able energy, and dealing with new strains increase the capital gains tax rate for tax base, and enhancing the overall economic vitaliof Covid. However, we are also likely to ty of the communities. The renewable fuel standards FARM PROGRAMS farmers or include any adjustments to have initial hearings on the next Farm the “stepped-up basis” rule on farm which are set by the U.S. Environmental Protection By Kent Thiesse Bill in the coming months. There are assets and would not change the farm Agency are targeting corn-based ethanol blending many important issues and decisions estate tax exemption; however, rates to return to the statutory level of 15 billion that potentially could affect farmers farmers remain very wary of poten- gallons per year in 2022, after being temporarily and the agriculture industry, which tial future costs and tax implicaSee THIESSE, pg. 17 could possibly be addressed by Congress and the tions of this legislation. The initial cost of the White House in 2022 and beyond. House BBB bill was listed at $1.75 trillion; however, the Congressional Budget Office has estimated Following is perspective on some key ag policy the total cost at closer to $5 trillion once the legisissues which may be under consideration by Congress or through executive action in the coming lation has been fully implemented. The diverse BBB bill is now being debated in the U.S. Senate year: and if passed could have some changes in both proInfrastructure legislation and implementagrams and funding from original House Bill. If a tion — After months of negotiation, the Federal compromise is reached on the BBB legislation early “Infrastructure Investment and Jobs Act” or soin 2022 that allows it to pass both houses of called “Bipartisan Infrastructure Framework” (BIF) Congress and be signed into law, it will likely bill, was passed by Congress and will now be imple- include several provisions that will impact farmers mented by the Federal government. The BIF legisand the agriculture industry. lation provides $1.2 trillion in funding for basic Climate change and carbon sequestration — infrastructure projects. This includes approximately It seems that everyone from members of Congress, $550 billion in new spending, with the remaining business leaders, the national media, and local $650 billion being for pre-allocated funding targeted toward highway projects and other projects that friends and neighbors are discussing carbon sequestration, carbon credits, and potential legislawere already scheduled. Of the new funding, $284 tion to address climate change. Obviously, there is billion or 52 percent will be allocated toward for a wide range of opinions regarding the impacts of surface transportation needs, including road and climate change and how to address the situation. bridge projects and modernizing the U.S. rail sysSome would like to see a strong-handed approach tem, as well as upgrades to ports and waterways by the Federal government relative to types of and public transit investments. The remaining $266 billion (48 percent of the funding) is allocated vehicles we drive, energy policy, and farming practices, while others would like to see a more volunto other core infrastructure projects, such as improving the U.S. electrical grid, expanding broad- tary and incentivized economic approach that is developed by business and industry. One quote at band access, drinking water and wastewater Farmfest this past year by an expert on carbon improvement projects, and other targeted rural development efforts. Many of these basic infrastruc- credits was: “the carbon market is like the wild, wild west,” meaning there is no clear-cut path as to ture projects will benefit farmers, businesses, and where the United States or the ag industry is rural communities. headed related to the carbon market. Several com“Build Back Better” legislation — In panies have already introduced carbon programs November, the U.S. House passed the so-called that will pay farmers for introducing practices that “Build Back Better” (BBB) Act that is a broadsequester carbon, so that those carbon credits can based piece of legislation would address many be in turn used by those companies or sold on the issues and would boost targeted spending for cliopen market. Before farmers enter into long-term mate change, renewable energy, health care, childagreements related to carbon credits, it is imporcare, education, immigration, and other social infra- tant for them to know what practices will qualify structure provisions. It is estimated that approxifor carbon credits, what will the compensation be mately $82 billion was included in the House verfor the carbon credits, and are there potential sion of the BBB legislation for agriculture related future impacts on their farming operation. The spending and provisions. This includes funding for “bottom-line” is that it is probably better to “walk a 5-year program to pay farmers $25 per acre for before you run” when it comes to make major planting cover crops, as well as major funding changes in a farming operation strictly targeted increases for the Environmental Quality Incentives toward gaining compensation from the emerging Program (EQIP), the Conservation Security carbon market.
MARKETING
