By Will Rodger
2017 brought a wave of change for farming. It was a better year
than farmers and ranchers have seen in a while.
WOTUS
EPA’s much-maligned and litigated Waters of the United States rule
appeared to have met its match in 2017. Already blocked by federal courts
pending trial on the merits, the new administration’s EPA proceeded swiftly to
dismantle the old rule by issuing a request for comments on how the new rule
should define Waters of the United States – that is, interstate waters that
fall under the jurisdiction of the EPA.
Work on the new rule continues while EPA officials have predicted a
final WOTUS definition by the end of 2018. Few in Washington expect the rule
will go unchallenged in court. Even so, the new EPA is far less likely to bring
arbitrary and abusive enforcement actions as it did some years back. In all, it
was the best environmental news in years.
Tax Reform
Nothing is certain but death, taxes—and people’s willingness to
argue over how much tax is fair. Farmers got an important bump, just the same,
as Congress doubled the estate tax exemption to $11 million per person. Although
few farmers end up paying the tax, far, far more used to pay accountants and
lawyers to structure their finances so that they could stay clear of it. The
doubling of the exemption means less business for consultants and more money in
the pockets of farmers and ranchers.
Farmers got increases in some important deductions they have
traditionally relied on. Small-business expensing limits went up from $500,000
to $1 million for farmers, with phase-outs beginning at $2.5 million—up from $2
million the year before. A broadening of bonus depreciation for fruit- and
nut-bearing trees, vines and plants was also welcome news.
The lower rates passed by Congress will help many farmers
and ranchers make the most of lean times.
Trade
Trade news was less satisfying in 2017. For despite a pro-NAFTA
statement and press conference among AFBF, Mexico’s CNA and Canada’s CFA,
farmers and ranchers were largely in the dark when it came to renegotiation of
the agreement that has provided the most exports for domestic agriculture.
Trade negotiators promised they would get a better deal for the U.S., even as
Mexican and Canadian officials showed little interest in re-opening most of the
pact.
Farm Workforce
The year started out with more than a little sabre rattling on
immigration, but settled down at least a little as President Trump and USDA
Secretary Sonny Perdue each assured farmers that agriculture would have the
supply of workers it needed. Rep. Bob Goodlatte (R-Va.), meanwhile, put forth
his AG Act, which would allow undocumented workers to get a new, “H-2C” visa
for work on farms and ranches. The bill would permit 500,000 H-2C visas a year
with allowances to adjust that number depending on agricultural labor needs.
Although there are far more than 500,000 undocumented farm workers in the U.S.,
the bill was the best farmers had seen in a long time.
As with farming, in politics there is no finish line. There are
only harvests – some good, others less so. 2017’s was better than most.
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Will Rodger is director of policy communications for AFBF.