In one of the few things moving in Congress, the jobs bill passed out of the Senate today has some important provisions for agriculture.
The Senate passage of H.R. 4213, the American Workers, State and Business Relief Act, also called the Tax Extenders Act of 2009, which includes retroactive extension of the vital biodiesel tax credit and ag disaster funding. It passed by a 62 to 36 margin.
With passage of H.R. 4213, the U.S. House and U.S. Senate must now reconcile the differences between the two versions of the bill approved by the respective chambers. H.R. 4213, as approved by the U.S. House in December 2009, also provides for a one year retroactive extension of the biodiesel tax incentive.
Included is Senate Agriculture Committee Chairwoman Blanche Lincoln’s $1.5 billion disaster package. The legislation would provide an estimated $1.1 billion in supplemental payments to producers who suffered crop losses in counties declared “primary” disaster areas by USDA.
Also included is $300 million to assist specialty crop producers, $75 million in emergency loans to poultry producers, $50 million in assistance for livestock producers, $25 million in aquaculture assistance and $42 million to aid first handlers of cottonseed. Lincoln said in a statement that it will "provide the relief producers need to stay in business."
Her counterpart in the House, Collin Peterson said any disaster package would have to be at a higher trigger than the current 5% loss in Lincoln's proposal.
Biodiesel tax extension
The biodiesel tax incentive, which is structured as a federal excise tax credit, amounts to a penny per percentage point of biodiesel blended with petroleum diesel. The incentive makes biodiesel more competitive with petroleum diesel, and lowers the cost of biodiesel to the end consumer.
The biodiesel tax incentive expired on December 31, 2009.
Manning Feraci, National Biodiesel Board vice president of federal affairs noted, “The lapse in the biodiesel tax credit has been extremely disruptive to the domestic biodiesel industry, and a retroactive extension of this worthwhile incentive will help America realize the job creation, energy security and environmental benefits associated with biodiesel.”
“Congress should move to quickly to seek agreement on a final bill that can be passed and signed into law as soon as possible,” added American Soybean Association President Rob Joslin, a soybean producer from Sidney, Ohio. “ASA urges Congress to enact a retroactive extension of the biodiesel tax credit as soon as possible.”