AFR President Responds to Farm Bill Extension

To address the so-called "fiscal cliff," Congress passed the American Taxpayer Relief Act January 1, 2013. The new legislation is a combination of mandatory tax increases and government spending cuts and includes a modification of the estate tax and a short-term extension of most programs in the recently-expired 2008 Farm Bill.

In response to the passage of a short-term farm bill extension, AFR President Terry Detrick stated:

"There is a lot lacking in the last-minute legislation, but some good did come from it. The one-year extension of the 2008 Farm Bill (which should really be called the National Food Security Bill) at least preserves the budget base line, which will serve as a base as we begin work on a full five-year bill. The extension also allows producers to operate under the same bill that was in effect during the 2012 fall planting.

"Crop insurance provisions are extended, giving creditors a degree of comfort for another year. Direct payments, including graze-out acres, are also included in this extension, which is in accordance with our member-driven policy. AFR policy favors a $5 million estate tax exemption and this legislation allows an exemption on the first $5 million per individual or $10 million per couple. Most of the 37 additional programs that expired Sept. 30 were authorized, but no funds were appropriated. Included in these is the LIVESTOCK DROUGHT DISASTER provision which is desperately needed.

"That is a tough fight we will have to continue with fervency. This is just the tip of the iceberg on a 154-page document. The bottom line is that food security for this nation was not treated with due respect, but it could have been worse.

"I'm not sure agriculture and food security would have been included in the 'Fiscal Cliff' legislation if it had not been for the threat to consumers of $7 - $8 gallons of milk if Congress did nothing! Past U.S. Senator and Oklahoma Governor Henry Bellmon's advice would have been appropriate to this Congress. He is quoted as saying, 'Let's figure out the right thing to do and sort out the politics later.'"

In September 2012, American Farmers and Ranchers (AFR) joined 89 other farm and consumer groups from across the nation in an effort to get a five-year farm bill enacted before the 2008 Farm Bill expired Sept. 30. Hard-line partisanship on the part of both parties in Congress kept that from happening.

AFR commends Congressman Frank Lucas (R-OK), Chairman of the House Agriculture Committee, and Ranking Member Collin Petersen (D-MN) for their tremendous accomplishment of drafting the House version of the much-needed farm bill and getting the bill passed out of committee with a 35-11 bipartisan vote. Unfortunately, House leadership would not bring it to the floor for debate.

American Farmers & Ranchers was established in 1905, and is headquartered in Oklahoma City. AFR is actively supportive of Oklahoma's agricultural industry and rural population, and provides educational, legislative, and cooperative programs across the state. AFR also provides insurance products statewide, and is recognized as a leading domestic insurance carrier in the state of Oklahoma.