There is a mixed reaction among the ag industry with Inflation Reduction Act
The House will take up the Inflation Reduction Act this Friday, and farm groups are reacting to its passage in the Senate.
If the House passes the bill in its current form, it could jeopardize a key tax break for family farms. Senator Mark Warner’s amendment replaces the state and local tax deduction with a loss limitation policy. Senator John Thune argued the offset takes away the “pay-for” needed to extend the tax break when it expires in 2026. The 199-A deduction was revamped in 2017, allowing farmers to deduct up to 20 percent of their business income.
National Milk Producers Federation is praising the bill’s funding for conservation. It includes $20 billion in new funding, which Senate Ag Chair Debbie Stabenow says will help dairy farmers practice sustainability. It includes $8 billion for the environmental quality incentives program; $25 million annually for conservation innovation trials; and about $7 billion for the regional conservation partnership program, that funds methane reduction projects.
The Republican leader of the House Ag Committee calls the bill reckless. Glenn “GT” Thompson released a statement saying, “Billions in misguided spending and tax increases are not solutions for skyrocketing inflation, high fuel and fertilizer prices, and the regulatory burdens facing our nation’s agriculture sector.” Thompson called it a power grab where Congress picks winners and losers and says it will complicate the 2023 Farm Bill.