Wednesday, January 16, 2013

Ag Today Wednesday, January 2, 2013




Fix on ‘Dairy Cliff’ Sends Farm Bill Back to Square One [Bloomberg]
The fiscal-cliff settlement, which extends the most-recent agriculture law until September, is frustrating farmer groups that spent 2012 pushing new programs and now must start again under a tougher spending outlook. Congress’s approval of a one-year extension of the farm bill that expired Sept. 30 heads off government-mandated higher milk prices. It also preserves subsidies that even farmers call wasteful and makes plans approved by the U.S. House Agriculture Committee and full Senate last year moot….The top Republicans and Democrats on both congressional agriculture committees had pushed for an extension that contained elements of legislation they had backed last year, including a new dairy program intended to stabilize prices for the boom-or-bust industry….Representative Collin Peterson of Minnesota, the ranking Democrat on the House Agriculture Committee and author of the dairy plan rejected by Boehner, said yesterday he is so angry about the one-year extension that he wants Republican leaders to commit to a floor vote on a farm bill before he cooperates on creating one.

Fiscal Cliff Tax Deal: What Does It Mean for Small Business? [Forbes]
For small and medium sized business owners there is good news and bad news in the deal to avoid the fiscal cliff.  In addition, the deal strongly underscores the need for business owners to sharpen their own pencils to cut their taxes….Estate tax was a bit of a mixed bag – the $5 million dollar per person exemption was kept in place (and indexed for inflation continued) however the top rate is increased to 40 percent – effective date January 1, 2013….Other good news for estate planning – portability is kept in place and estate and gift remains unified – ie the $5 million stays in place for gift tax purposes as well.

Commentary: Big farm issues hidden in fiscal cliff [Santa Maria Times]
Farm issues have taken a back seat in our current Congress. These issues have the potential of being significant economic factors, both nationally and here on the Central Coast….Paul Wenger, president of the California Farm Bureau Federation, testified in Washington concerning the mandatory E-verification for all employers, regardless of size or industry. It would require employers to verify eligibility before hiring. His message was the need for workable support legislation to go along with the E-verification system….A recent survey of farmers by CFBF, “Walking the Tightrope: California Farmers Struggle with Employee Shortages,” points out the urgent need for a legislative answer to these concerns for stable farm labor….Here on the Central Coast, it is in our mutual interest to support farm and ranch legislation to go along with the E-verification system that is being proposed and discussed in Congress. Take a few minutes to send your representative an email or letter in support of this companion legislation.

Parties renew agreement to restore Klamath Basin [Associated Press]
A companion agreement to a historic deal to remove four dams from the Klamath River has been renewed, giving supporters another two years to try to get Congress to pay for the work, officials said Monday. Supporters of the Klamath Basin Restoration Agreement announced that all 42 signatories - including Indian tribes, local governments, irrigation districts, salmon fishermen and conservation groups - agreed to the renewal. The agreement lays out how water will be shared between farms and fish during drought years, and calls on Congress to provide $800 million for environmental restoration.

Officials worry that agriculture community will bear burden of water shortages [Imperial Valley Press]
Global warming and increased demand for water by urban and municipal users make shortages of the Colorado River inevitable, according to a recently-released study by the Bureau of Reclamation and the seven Colorado River Basin states….“You are pitting (urban) populations against agriculture,” said Imperial Irrigation District Director Matt Dessert, when asked what he took away from the conference. Anticipated water shortages make the agricultural community’s pool of water increasingly attractive, he added….IID Director Steve Benson echoed Dessert’s sentiments….“It’s important that farmers work on conservation based on current contracts with the QSA,” he added. “It’s not perfect but it lays out a clear plan. If we show we’re working under the guidelines of conservation as farmers, it does a lot to protect the future of farming.”

Opinion: Dan Walters: California's water wars breaking out again [Sacramento Bee]
… In other words, Schwarzenegger's water bond was dead. It was taken off the 2012 ballot and although it's still officially scheduled for 2014, it will be extensively rewritten and reduced – meaning water policy is back to square one. Even though the apparatus created to write a new plan for the Delta has been functioning, actually doing what it advises and constructing the new conveyance depends on having the money to lubricate the process from a bond issue….One water bond bill has already been introduced and what – if anything – to put before voters will have a high place on the new legislative session's agenda. The state's perennial water war is breaking out again.

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