More Clogged on Capitol Hill
Much work remains to be done on crucial agricultural issues on Capitol Hill as we wrap up the year and head into another election year
Jacqui Fatka
Published: Nov 6, 2009
As we wrap up the year, many things remain up in the air in Washington D.C. In the November print edition we gave an outlook on what might occur in the areas of climate change, clean water, concentrated animal feeding operations and food safety legislation.
Below is more on other hot topics crucial to agriculture.
CFTC REGULATION: The Commodity Futures Trading Commission is reviewing the qualifications of bona fide hedgers and changes intended to improve convergence in the Chicago wheat contract. The CME Group has made several steps itself including plans to implement variable storage rates.
OUTLOOK: Things are moving in the right direction here and there is hope that improvements can be made to the point that it becomes a reliable hedging instrument again, according to Daren Coppock, National Association of Wheat Growers CEO. Peterson has been pushing legislation on this front and it could see more movement this fall in financial reform legislation.
TRADE: On the campaign trail, President Barack Obama criticized NAFTA and many other trade agreements. It now appears unlikely this administration will do anything on NAFTA although many other trade agreements remain in limbo including the South Korea, Columbia and Panama FTAs.
OUTLOOK: It took the Administration quite a bit of time to fill key trade posts, and, though progress has been made on that front, the Administration has yet to clearly articulate its trade agenda. In light of all the competing domestic priorities facing the Administration and Congress both, there seems to be little appetite for moving the trade agenda forward. Although it would send a strong signal on the world trade talks if one of the pending FTAs would move forward, right now things are at a stalemate. Coppock said the Administration has made some incremental, positive movement on the Cuba front this year, and some are optimistic that more progress can be made in the relatively near term. There may be efforts as early as November to move a travel bill in the House, possibly including some important provisions for agriculture.
TAXES: Next year brings expirations on a number of tax provisions, particularly as it relates to the estate tax and capital gains. The Obama administration's fiscal 2010 budget includes raising the top capital gains tax rate from the current 15% to 20% for individuals making more than $200,000 per year or married couples earning more than $250,000 per year. It proposes eliminating capital gains taxes on small businesses, but it does not define "small business." The administration's budget also includes funding for an estate tax exemption at $3.5 million per person with the top tax rate at 45%. Another provision also will scale back the ability to write off $250,000 worth of capital purchases to only $25,000.
OUTLOOK: Many of these tax provisions will come up at the beginning of 2010, likely after climate change. Bills have been introduced to change the estate tax exemption level and rate, and Congress could take up those bills yet this fall. Obama proposed changes, but it is up to the tax committees on how to move forward exactly.
Keep current on these topics and more at DC Dialogue.
Permalink: Click here
Tagged: wheat, National Association of Wheat Growers
|