President Donald Trump took to national television, yesterday, to introduce to the American people, the framework for a new tax reform plan put together in collaboration with the House Committee on Ways and Means, and the Senate Committee on Finance, which the President called "a once in a generation opportunity." If passed, this framework will deliver a 21st century tax code that is built for growth, supports middle-class families, defends workers, protects jobs, and puts America first. It will deliver fiscally responsible tax reform by broadening the tax base, closing loopholes and growing the economy.

House Ways and Means Committee Chairman Kevin Brady (R-TX) said the new tax plan should excite "the millions of Americans who are tired of today's broken tax code and have waited for years for better job opportunities, more take-home pay, and a stronger economy."

"Now it's time for the Ways and Means Committee to build on this momentum and deliver legislation that President Trump can ultimately sign into law," Brady said. "We are closer than ever to finishing what we have started for the American people - and 2017 is our year to make it happen."

Highlights of the framework include lower rates for individuals and families; the standard deduction will be doubled and the child tax credit will be enhanced; loopholes for the wealthy will be eliminated and bed rock provisions for the middle class will be protected; a new lower tax rate and structure for small businesses will be created; jobs will be created and 

competitiveness will be promoted; the corporate tax rate will be lowered; "expensing" of capital investments will be allowed; and a one-time, low tax rate on wealth that has been accumulated overseas will be imposed so there is no tax incentive to keeping the money offshore.

One highlight in particular, though, has the agricultural community very excited - which is the framework's inclusion of Death Tax's repeal. More on that in the story below.

For more on Trump's plan for comprehensive tax reform, or to check out the complete details of the framework presented yesterday, click over to the original story up on our website.

Upon the release of the Trump Administration's blueprint for tax reform, two groups from the agricultural community sounded off - both to cheer President Trump's inclusion of repealing the Death Tax in the framework, but also to insist that more work is necessary to refine the plan's details.

American Farm Bureau Federation President Zippy Duvall, offered a statement on behalf of the general farm association, regarding the framework's release.

"Farm Bureau is encouraged to see that this framework includes important principles such as lower tax rates for individuals who own businesses, elimination of the death tax and some business interest deductibility," he stated. "Farm Bureau looks forward to working with tax writers to refine the proposal to ensure that tax reform lowers effective tax rates for farm and ranch businesses."

Duvall emphasized in his statement that permanent tax provisions like the continuation of cash accounting and like-kind exchanges, unlimited stepped-up basis and lower capital gains taxes were imperative to improving and maintaining the financial health of farmers and ranchers. 

The National Cattlemen's Beef Association offered its own perspective on Trump's plan. First and foremost, the NCBA praised the framework for including a provision to repeal the Death Tax, something the association has advocated for tirelessly.

"Our Nation's cattle producers are very pleased that President Trump and Republican leaders in Congress have maintained their long-standing commitment to American agriculture by including a full repeal of the onerous death tax in the Unified Framework for Fixing Our Broken Tax Code," said NCBA President Craig Uden. We look forward to working with the Administration and lawmakers on Capitol Hill as pen meets paper on tax legislation, and will continue to demonstrate how the death tax and its associated costs adversely affect family-owned operations and the rural communities they support."

However, Uden assured in his statement that the NCBA would also work to defend and protect provisions in the existing tax code, that positively impact cattle producers echoing some of those provisions aforementioned by AFBF's Duvall in his remarks, but others, too, such as cost recovery, and the deductibility of interest payments.

Throughout September, NCBA has executed an extensive online media campaign to promote comprehensive tax reform. The group yesterday released the campaign's fourth video, which has collected more than 57,000 views in less than 24 hours. You can watch that video and read Uden's full remarks on Trump's Tax Reform framework, by clicking here.

Bigger placements and bigger marketings showed up in the most recent Cattle of Feed report, released last week by the United States Department of Agriculture. Overall, the on feed numbers were up 3.6 percent compared to a year ago - which really is more or less on track with longer term trends, the outlook on gradually increasing cow herd numbers and estimates on the size of future calf crops. Looking at calf prices, though, the average price for 500 - 600 lb. feeder steers in Oklahoma (currently at $158.92, according to USDA's Market News Service for the week of September 22, 2017), although down about $5 - 6.00 from the week before, is up $16 - 17.00 from a year ago. Jim Robb of the Livestock Marketing Information Center says he believes the markets will continue to hold a premium over last year, all fall and into the near future.


"We're fully $20/cwt. above a year ago this past week," he said. "Maybe as we work into the 4th Quarter we'll be $15 or so per cwt. higher than last year. But we want producers to fully recognize that the 2017 calf crop is bigger than 2016. And 2018 will be bigger than 2017."


Robb says, in this kind of environment, the markets have performed remarkably well with meat rapidly moving through the system and exports staying aggressive, too. While he claims this is definitely a different year compared to last year's situation, Robb advises not to be overly enthusiastic, as the already large supply side of market fundamentals is projected to continue to grow with larger calf crops on the horizon.


"This does not appear to be like last year where the fed cattle market and the meat market and all those were churning, and really not able to keep up with the growing supplies," Robb said. "I don't think it's last year being repeated, but again, we have to recognize where we are cyclically in terms of the overall herd numbers."


Listen to Jim Robb of the LMIC brief me, on the current market situation compared to the previous year, on yesterday's Beef Buzz - click here.

The public's last opportunity to weigh in on the Environmental Protection Agency's proposal to repeal the controversial Waters of the US rule in accordance to President Trump's executive order, ended yesterday with the closure of the proposal's open comment period.

The National Corn Growers Association took no chances in making sure its collective voice was heard by EPA officials, and submitted their own comments, in which the association decried the WOTUS rule as being inconsistent with its jurisdictional legislation, the Clean Water Act. NCGA bluntly outlined its complaints regarding the rule and urged the EPA and the Army Corps of Engineers to rescind the rule.

"Corn farmers take very seriously the important role we play in helping the country meet its water quality goals, as laid out in state and federal statutes, including the Clean Water Act. We depend on clean water for our livelihood, and we are committed to conservation practices that protect our nation's streams and rivers," NCGA President Wesley Spurlock wrote. "We support the Administration's effort to create a new WOTUS rule, and we stand ready to work with them to ensure farmers have the clarity and certainty they need."

He added that the rule also "has the perverse effect of making it harder for farmers to practice good soil and water conservation, nutrient management, and water quality protection practices." Click here to read Spurlock's complete remarks.


President of the American Farm Bureau Federation, Zippy Duvall, made his own comments to the EPA, and put into no uncertain terms his desire to see the current WOTUS rule put to rest, once and for all.


"It is time for EPA to take the final step of repealing the WOTUS rule. The agency should then move forward with a new rule that provides farmers, ranchers, towns, states and small businesses with clarity and certainty they need," he wrote. "The new rule should rely on common-sense directives that don't require teams of consultants and lawyers to navigate a maze of federal regulations. We will follow this process closely over the coming months to ensure that the new rule is based on law, that waters are protected and that farmland can be farmed."

To read more of Duvall's comments to EPA, click or tap here.

On Wednesday, the National Sustainable Agriculture Coalition's Policy Specialist Alyssa Charney, released a statement after the organization joined other conservationist groups in the signing of recommendations made by the consensus of collective groups, calling for increased Conservation Title funding in the 2018 Farm Bill.

"The need for more effective and better-resourced conservation programs is greater now than ever given the rising frequency and severity of extreme weather events," Charney said, claiming farmers' dependence on federal conservation programs to improve the environmental quality of their property.

"The groups that have signed on to these consensus recommendations, including the National Sustainable Agriculture Coalition, are therefore united in calling for an increase in Conservation Title funding to address agriculture's very real needs with real solutions. The next farm bill must not simply shuffle money around, robbing one program to support another," she stated. 

In her statement's conclusion, Charney calls for Congress to "blaze a new path" for conservation in the 2018 Farm Bill - "one that adequately supports and respects our nation's food producers, wildlife, natural resources, and rural communities."

Click here to read Charney's complete comments regarding the conservation community's appeal to Congressional leaders to increase funding under the 2018 Farm Bill's Conservation Title programs.

 

 

After their summer "on the road" lineup of sales- Superior Video Livestock Market returns to their every other week schedule of video cattle auctions this morning.

This week's sale will showcase just over 20,000 head of cattle with 4,200 yearling steers, 3,100 yearling heifers,
8,500 weaned calves and 3,650 calves on cows.

Click or tap here for the Superior listing on their website of today's sale- they start with Superior Sunrise at 7:30 AM and then the actual sale follows at 8 AM on DISH Net Channel 232 and Superior Click to Bid.Com.

Future sale dates this fall include October 12 and 26, November 9 and 30 and December 14.