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Texas Agriculture Archive

April 18, 2003

TFB leaders tackle
national issues in D.C.

By Tom Nicolette
Media Services Director

Protection of the integrity of the 2002 farm bill; elimination of estate taxes; Farm And Ranch Risk Management accounts (FARRM accounts); alternative energy; foreign market access and World Trade Organization negotiations were the primary issues of concern for Texas Farm Bureau leaders recently during a trip to the nation's capital.

Approximately 80 state and county leaders were in Washington, D.C. March 25-28 for TFB's annual National Affairs Awards Trip. The Texas leaders qualified for the trip by contacting and working with their U.S. representatives and senators on a regular basis, and participating in national affairs events.

The Texas entourage, which met with many members of the congressional delegation or their staff, consisted of a large percentage of county leaders making their first trip to Washington.

"I'm really impressed with the number of leaders we had here for the first time," said TFB President Kenneth Dierschke of San Angelo. "It's real interesting to get them enthused and when they go back to their counties they can get their counties (members) enthused. They can tell them exactly what their Farm Bureau is doing and how their (elected officials) are reacting in Washington, D.C."

Farm Bureau is working diligently to make sure that attempts surfacing in Congress to reduce funding or alter the farm bill fail.

"We cannot afford that (changes in the farm bill). We've already made decisions since the farm bill passed last May that affect our operations," said TFB Vice President Lloyd Arthur, a cotton farmer from Ralls. "Payment limitations and other things would distort what we were given back in the farm bill. It's very important to keep intact (provisions in the legislation) as they were when the bill was passed."

Congress voted to end estate taxes when it passed the Economic Growth and Tax Relief Reconciliation Act of 2001. The new law provides immediate relief through rate reductions and an expanded exemption, with complete repeal occurring in 2010. However, the bill's provisions expire in 2011, requiring Congress to pass additional legislation to make estate tax elimination permanent.

Farm Bureau supports the immediate and permanent elimination of estate taxes, also known as "death" taxes.

In their visits on Capitol Hill, Farm Bureau leaders expressed the organization's stance loud and clear.

"While it may not affect everybody, it's very important in a lot of situations because of the farms and businesses that can be broken up going from one generation to the next. If the estate tax kicks in it can be devastating," said Nacogdoches County President Jim Dawson.

The 2001 law provides increasing the exemption to $3.5 million per person. Upon repeal, the new law would allow $5.6 million of step-up basis per couple. Farm Bureau supports continuation of "stepped-up" basis that adjusts value of property for inflation at death.

Two freshmen congressmen told Farm Bureau leaders they support H.R. 57 that makes death tax repeal permanent in 2011.

"It's just flat wrong that your son or daughter would have to sell the family farm just to pay the tax bill," said U.S. Rep. Michael Burgess (R-Highland Village), who represents the 26th Congressional District in North Texas.

"One of my campaign issues from the first speech I made was the absolute, forever abolishment of the death tax," said U.S. Rep. John Carter (R-Round Rock), who represents the newly-created 31st District in Central Texas.

Another priority issue for Farm Bureau leaders as they made their way through the halls of Congress was Farm and Ranch Risk Management (FARRM) accounts.

FARRM accounts would provide tax deferments helping farmers save for years when prices are low or crops are poor. Farmers could save 20 percent per year of net farm income with this new risk management savings account tool.

"We recognize that agriculture is one of the few occupations where you're subject to so many variables," said U.S. Rep. Max Sandlin (D-Marshall), who co-introduced H.R. 927, the Farm and Ranch Risk Management Act. "It's a way to say `if you're going to go out and take the risk, invest your personal capital and put your family's well-being at risk, then we're going to try to work in partnership with you as the government.'"

Alternative energy sources were also discussed by members of Farm Bureau and Congress. Ag-based energy production presents many opportunities for farmers and ranchers as well as the nation. Ethanol production, for instance, could increase net farm income by $4.5 billion and add 30 cents to the value of every bushel of corn.

U.S. Rep. Joe Barton (R-Ennis) is a member of the House Energy and Commerce Committee.

"Ethanol has a role to play. We are going to have a vote sometime to have a 5 billion gallon per year ethanol mandate between now and 2015. I will be supportive of that if we also get protection for some natural gas derivative products that are made in Texas," Barton said.

The county and state Farm Bureau leaders also discussed international trade with their elected officials, and met with Department of Agriculture, State Department and American Farm Bureau Federation staff regarding the six priority issues as well as other agricultural concerns.