 Tax Reform: Much of the focus this fall has been on the tax reform bill as it makes dramatic reforms to lower corporate taxes and remove a number of personal deductions. Section 199, or the Domestic Production Activities Deduction (DPAD), was eliminated in both the House and Senate tax bills. The DPAD is calculated as 9% of qualified production activities income of the taxpayer (in our case, the cooperative), capped at 50% of cumulative W-2 wages of cooperative employees. Cooperatives can retain it at the cooperative and use it for capital improvements or pass the deduction through to their members. Section 199 is especially valuable to the grower-owners of cooperatives because their share of the cooperative’s DPAD is based off their share of the total beet payment (or patronage) paid to growers, not corporate profits. It is likely that without this deduction, grower taxes could go up--not down. Senator Hoeven (R-ND) led the charge to amend the Senate tax bill to retain Section 199 and had the support of 194 organizations, and eight senators cosponsored the amendment. But the amendment faced a budget point of order which would have required a 60-vote margin instead of a simple majority to gain Senate approval, so the amendment was not offered.
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 2016 Elections: The election of Donald Trump went against the conventional wisdom of pundits and the general public, and sent political shockwaves across the country and around the world. In the early morning of November 9, America experienced perhaps the greatest electoral upset in its history and tried to peer through the dense fog of uncertainty. The democratic process is not pretty or easy – it wasn’t meant to be. Many voters in both parties wished that they had been given the choice of different presidential candidates, but the long primary schedule provided ample time and opportunity to sort through that process. For those who have lingering anxiety and are seeking comfort, google the lyrics of the singer-songwriter Steven Stills-- “And if you can’t be with the one you love, honey, love the one you’re with.” The fact is that we have a new President-elect, and we must get behind him.
 Mexico — On March 28, U.S. sugar producers and processors (the American Sugar Coalition) filed anti-dumping and countervailing duty petitions against subsidized and dumped imported sugar from Mexico due to that harm the imports have caused to U.S. producers and the violation of U.S. trade laws.
• Antidumping law allows the United States to collect anti-dumping duties after administrative determinations by the United States International Trade Commission (ITC) and Department of Commerce (DOC) that a foreign product is being sold in the U.S. market at less than fair value and that the imports are materially injuring (or threatening to materially injure) the U.S. industry. Read our entire issue and back issues. Click here.  Farm Bill — When President Obama signed the 2014 farm bill at Michigan State University on February 7, the ASGA Board of Directors was gathered for our annual meeting in Tampa, Fla. We took a break from board business to witness the signing on C-Span and a big screen TV, and a real sense of excitement, exhilaration, pride, success and relief filled the room from those who had worked tirelessly to get the sugar provisions extended.
The timing of a farm bill being signed during our annual meeting had never happened before and may never happen again. So it was a very special experience for everyone. The spirit of celebration permeated the entire meeting. Read our entire issue and back issues. Click here.  Farm Bill -- As of January 20, it appears that the last great hurdle of completing the farm bill is being resolved. Getting an agreement on dairy policy has held up the farm bill completion for weeks, and finally all of the key players in the debate may have found a way to exit the conflict, embrace a policy and move the farm bill to its conclusion. We will expect the bill to be passed by both Houses and to the President’s desk for signature in early February.
This has been a farm bill like no other. Now it must be defended from opponents who will seek various means and legislative opportunities to attack and undermine it. The battles over sugar policy are never over. Read our entire issue and back issues. Click here.  Boredom is not an occupational hazard in the sugar industry. There are many diverse issues on the 2014 agenda that will impact our industry and that your grower and processor leaders will be watching and working on throughout the year.
Farm Bill — After three years of contentious battles in a toxic political environment, congressional approval of a five-year farm bill is likely in January and will be sent to the President for his signature. There has been more work on this bill than you have seen or can imagine to get it across the finish line. Again, we thank the champions of sugar policy in both the House and Senate for the great work they have done to maintain our policy and sustain our industry. Read our entire issue and back issues. Click here. 2013 Farm Bill
With the current farm bill expiring on September 30 and the evaporating number of legislative days to complete work on the new bill, there will be an all-out sprint to try to complete action as soon as politically possible. To this point, the path to reauthorizing the farm bill has been both tumultuous and unpredictable. It is the most caustic political environment we have ever seen to move a farm bill through Congress. |
  Luther Markwart
Luther Markwart, author of Dateline Washington, is executive vice president of the American Sugarbeet Growers Association.
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