President Joe Biden’s proposal to eliminate the grossed-up base and tax capital gains on death has met with opposition from a key Democrat. The chairman of the House agriculture committee, Georgian Democrat David Scott, said the tax plan could hurt farmers even if taxes payable were deferred as long as a family farm remained in operation.
“The possibility of capital gains being taxed on heirs on the death of the landowner would place a significant financial burden on these transactions,” Scott said in a letter to Biden.
“Moreover, from what I understand exemptions, they would only delay the tax liability of those who continue farming until the time of sale, which could lead to a further consolidation of ownership of agricultural land, ”he said. “This would make it more difficult for young farmers, beginners and socially disadvantaged to get into farming. “
Why it matters: Scott’s letter is particularly noteworthy because he says that deferring taxes is not enough.
Corteva sets its first greenhouse gas targets
Corteva Agriscience, the seed chemistry and agriculture giant resulting from the Dow-DuPont merger, came out with its first commitments to reduce greenhouse gas emissions. The company says the commitment is in line with the goal set in the Paris climate agreement of limiting global warming to 1.5 degrees Celsius.
“Rather than being a goal of what we think we can do, it’s a goal of what we need to do to do our part to help” achieve the Paris goal, said Josiah McClellan, head of the sustainability at Corteva. Agri-Pulse.
By 2030, the company says it will reduce emissions intensity from its internal operations and electricity consumption by 65% from 2020 levels. Emissions intensity from its supply chain , which includes emissions from commercial seed production, will be reduced by 20%. Intensity reductions reflect reductions from the company’s projected revenues, meaning the reductions are indexed to the growth of the business.
By the way: the commitment still needs to be validated by the Science Based Targets Initiative, an independent group that assesses companies’ carbon commitments.
Tyson gets new CEO when last executive resigns after eight months
Tyson Foods has appointed a new President and CEO, replacing Dean Banks with Donnie King, who held the position of COO.
The company said Banks, who took the helm eight months ago, was leaving for “personal reasons,” but did not elaborate. “After careful personal reflection and discussions with my family, the board and colleagues, I think stepping down and focusing on my family is the right decision right now,” Banks said, according to a press release from Tyson.
King, who will be the company’s fifth CEO in as many years, has worked in Tyson’s poultry business for 36 years. “He has held various leadership roles including President of North American Operations, managing all operational aspects of poultry, fresh meats and prepared foods. He was also president of the international group, ”the company said.
Agricultural commodities push up RIN prices
Prices for renewable ID numbers, used to comply with the blending requirements of the Renewable Fuels Standard, are at the highest level in RFS program history, according to the Energy Information Administration.
“Growing global demand for agricultural raw materials used to make corn-based ethanol and biomass-based diesel fuels has driven up the prices of biomass-based fuel ethanol and diesel in 2021,” pushing their corresponding RIN prices to new highs ” EIA noted in a report.
D6 RIN ethanol prices and biomass-based D4 RIN diesel prices hit record daily prices on May 18, reaching $ 1.90 per gallon and $ 2 per gallon, respectively.
Since the start of the year, D6 RIN ethanol prices have jumped 129% and biomass-based D4 RIN diesel prices have increased 96%.
Mexican wheat imports to increase in 2021-2022
New data from Mexico’s Secretariat of Agriculture and Rural Development shows the country’s farmers are planting less wheat for the 2021-22 marketing year as drought conditions persist, according to USDA Foreign Agricultural Service analysis.
This means that Mexico will likely import more wheat from the United States, the largest exporter to Mexico.
Mexico is now expected to import 5.1 million metric tonnes of wheat for 2021-2022 (July-June), up from 4.9 million in March. The new estimate for the 2020-21 campaign is 4.7 million tonnes.
Drought has affected production in Sonora, the country’s largest wheat-producing state, according to Mexico City’s FAS analysis. Farmers planted 6% less in Sonora during the fall-winter cycle.
USA Rice Awaiting Indian Rice Duty
The Office of the U.S. Trade Representative has proposed to strike India with retaliatory duties on brown basmati rice following the conclusion of an investigation into the country’s digital services tax.
USTR on Wednesday announced tariffs on India, Austria, Italy, Spain, Turkey and the UK, but suspended them for 180 days to give more time to complete multilateral negotiations In progress.
The Rice Federation of the United States is strongly in favor of tariffs on Indian rice.
“We understand that rice was not the intended target for these digital services tax investigations, but retaliation provides an opportunity for the United States to begin to level the playing field against the blatant over-subsidization of their domestic rice production and exports, ”said Peter Bachmann, Vice President of International Trade Policy at USA Rice.
Rural House Dems pushes for flexible broadband financing
The Blue Dog Coalition, a group of predominantly rural Democrats, is calling on House Speaker Nancy Pelosi to allow broadband funding to be flexible in President Joe Biden’s infrastructure bill.
In a letter, the group says rural Americans deserve the same access to Internet speeds as their urban counterparts.
“We were encouraged to see the Biden-Harris administration recognize the importance of targeting unserved and underserved areas for broadband infrastructure funds as part of the US bailout,” the 11 lawmakers said. . “We hope that the next infrastructure package builds on this success and that improved data collection can better target broadband investments in unserved and underserved communities.”
Questions? Advice? Contact Philip Brasher at [email protected]