“Strengthening the family farm is the most important economic strategy for the State of Iowa,” Nussle said.  “Our strength has always come from our land and the productivity of our family farms.”

Nussle continued:  “While our farmers are the best in the world at the work they do, their economic condition has been threatened over the past 20 years and a new Farm Bill must be created to meet the changing needs of farmers so they can compete in the global marketplace.”

In addition to laying out his agriculture agenda, Nussle met on Thursday with farmers from across the Second Congressional District to gather input for the next Farm Bill.  As Chairman of the House Budget Committee, Nussle wrote a budget that sets aside $79 billion so Congress can write a new Farm Bill this year, instead of waiting until 2002 when the current Farm Bill expires.

Nussle said historic low livestock and commodity prices, weak export markets, and increased production costs have made it necessary to change the Farm Bill timetable.

“Farmers in Iowa do not want a farm program that is based on annual emergency checks from Washington, D.C.”  Nussle said.  “This emergency spending format cannot be sustained and farmers don’t want it.  There is no reason not to start the process of changing the law immediately.”

In laying out his agenda, Nussle set the following goals for Congress:

Goals:
1) Re-write Farm Bill now 
2) Establish responsible conservation and environmental protection
3) Budget for agriculture emergencies
4) Encourage new people to enter agriculture
5) Improve tax fairness for farmers
6) Reduce government pressure on input costs
7) Top to bottom review of USDA
8) Review and oversight of agri-business mega-mergers

 The details of Nussle’s agriculture agenda are listed below:

Budget and Tax Relief
The Fiscal Year (FY) 2002 Budget and Tax Relief
• During his first year as Chairman of the House Budget Committee, Nussle crafted a federal budget framework with Iowa’s farm families in mind.
• The budget sets aside $79 billion for the creation of a new farm bill this year that gives farmers the predictability they need, as opposed to ad hoc disaster assistance.
• For 2001, the budget allows $5.5 billion in emergency agricultural assistance to cover farmers’ expected losses for the current planting season.
• The budget also made it possible for the President to reduce marginal tax rates, repeal the marriage and estate taxes, and extend incentives for education savings and planning for retirements.
• In addition, the budget provides full funding for crop insurance reform measures and increases funding for the USDA research to emerging plant and animal diseases.

Tax Empowerment and Relief for Farmers (TERF) Act (H.R. 2347)
• Stabilizes farm income by allowing farmers to deduct up to 20% of their taxable income attributable to farming so it can be placed in a Farm and Ranch Risk Management (FARRM) Account for up to 5 years.
• Exempts CRP payments and cash rental income from the self-employment tax.
• Creates a deduction for farmers and restaurants to donate to food banks.
• Allows income averaging for farmers who are liable for the Alternative Minimum Tax (AMT).
• Raises the cap on first-time farmer loans and Aggie Bonds.

Family Farm Protection Act (H.R. 1179)
• Promotes the passing of farms to future generations by allowing farms to be sold to actively involved family members without having to pay the federal capital gains tax.

Fair Trade and Competition for Iowa Farmers
Trade Promotion Authority Act (H.R. 2149)
• Facilitates international trade by allowing the President to make agreements that can be approved by Congress without amendment.

Transportation Tax Equity and Fairness Act (H.R. 1024)
• Lowers transportation costs for Iowa commodities and value-added goods by repealing the federal motor fuel excise tax on barge and rail transportation. 

Agriculture Competition Act (H.R. 1526)
• Creates better oversight on agribusiness mergers by giving the USDA and Department of Justice the tools they need to watch for anti-competitive practices within the poultry, beef, and pork industries.

Research and Incentives for Adding Value to the Land
Ethanol Energy Promotion Act of 2001 (H.R. 1999)
• Promotes the development of small ethanol cooperatives.
• Protects the environment and strengthens the ethanol market by totally and immediately banning the use of MTBE as a fuel additive.
• Creates a large ethanol consumer by requiring the federal government to exclusively use ethanol blended fuels in its vehicles.

Renewable Energy from Agricultural Products (REAP) Act (H.R. 2000)
• Promotes value-added agriculture by creating incentives to produce energy from products once thought to have no use; methane, manure, and other forms of animal waste products.
• Creates demand for another farm product while promoting conservation by allowing switchgrass grown on CRP enrolled land to be used as an energy additive without affecting the program’s payment schedule.
• Expands uses for soybeans by allowing diesel fuel blended with 2% soy-based biodiesel to receive a 3 cent/gallon exemption from the diesel fuel excise tax.
• Requires the federal government to exclusively use biodiesel blended fuels in its vehicles with diesel powered engines.

National Animal Disease Center (NADC) at Iowa State University
• Working with members of the Iowa Congressional Delegation to advocate for an updated NADC in Iowa.
• The FY 2002 Agriculture Appropriations Act includes $40 million for the first year of NADC’s construction.