The Supplement: NGFA Weekly News Wrap-Up – January 12, 2018

NGFA issues confidential member alert on Section 199A provision of the Tax Cuts and Jobs Act of 2017: Considerable concern has been raised in the marketplace about how the new Section 199A – included during the waning hours of congressional consideration of the Tax Cuts and Jobs Act of 2017 – is influencing producer marketing decisions. Earlier today, NGFA President Randy Gordon issued a report to members on the actions NGFA has taken – and is taking – to address this important industry issue. Included is a link to a joint statement issued by the National Council of Farmer Cooperatives and NGFA on this matter, noting that discussions are underway to arrive at an equitable solution that preserves the benefits that cooperatives and their farmer patrons previously enjoyed under the previous Section 199 of the tax code, while addressing the unforeseen impacts and unintentional consequences of Section 199A on producers’ marketing decisions that could change the competitive landscape of the marketplace. View the member alert and joint statement here.

Canada files WTO complaint against US over trade rules: Canada filed a complaint with the World Trade Organization this week accusing the United States of breaking international trade rules. The 32-page complaint challenges the ways that the US investigates products for subsidies and below-cost sales. Canada says the U.S. improperly calculates rates and restricts parties from presenting evidence to defend themselves, with a cut-off for supplying information that comes too early in the process.

U.S. Trade Representative Robert Lighthizer called Canada’s WTO filing “a broad and ill-advised attack” and said, “Canada’s claims are unfounded and could only lower U.S. confidence that Canada is committed to mutually beneficial trade.”

The petition, filed with the WTO on Dec. 20 and shared this Wednesday, kicks off 60 days of “consultation” between the two countries. If it is not resolved, it is subject to adjudication by a WTO panel.

Trump commits to a timely farm bill at Farm Bureau convention: President Donald Trump committed to working with Congress to complete the next farm bill on time during his speech to the American Farm Bureau Federation’s (AFBF) Annual Convention in Nashville, Tenn., this week. Trump is the first sitting president to attend the AFBF convention since George H.W. Bush spoke to the organization in 1992. “I’m looking forward to working with Congress to pass the farm bill, on time, so that it delivers for all of you,” he said, reiterating support for crop insurance.

Trump mentioned efforts to “level the playing field” for American exporters by reviewing “all of our trade agreements to make sure they are fair and reciprocal.” When it comes to the North American Free Trade Agreement, “I am working very hard to get a better deal for our country and for our farmers and for our manufacturers,” he said. “It’s under negotiation as we speak.”

Farmers for Free Trade provided attendees at the event with buttons saying: “I Support NAFTA,” and “I’m a Farmer for Free Trade.”

However, Trump’s speech, “Rebuilding Rural America,” mostly highlighted his administration’s promises to roll back regulatory barriers and improve rural infrastructure.

“We are proposing infrastructure reforms to ensure our rural areas have access to the best roadways, railways and waterways in the world,” he said. The White House plans to release its infrastructure plan soon, potentially by the end of this month, but more likely in February following the president’s State of the Union address to Congress.

At the end of his speech, Trump signed a presidential memorandum and executive order on improving and increasing rural broadband deployment.

USDA releases report on rural prosperity: Secretary of Agriculture Sonny Perdue unveiled the administration’s report from the Interagency Task Force on Agriculture and Rural Prosperity during the American Farm Bureau Federation convention.

The report discusses the need to “promote public confidence in the oversight of the products of biotechnology through clear and transparent public and diplomatic engagement.”

The task force also highlighted the importance of trade to the rural economy, while reiterating the administration’s protectionist trade stance. “Although increased access and support for export markets can be a growth opportunity for rural America, they can also increase competition from imports,” the report said.

The full report is available here.

Flake introduces a resolution on NAFTA: Sen. Jeff Flake, R-Ariz., who is blocking the nomination of Gregg Doud to be the U.S. Trade Representative’s chief agriculture negotiator, recently introduced a resolution on the importance of a strong U.S.-Mexico relationship.

The resolution highlights the value of the bilateral relationship between the United States and Mexico, pointing to the mutually beneficial nature of the North American Free Trade Agreement (NAFTA).

“Whether it is the approximately $525 billion in trade, the assistance in stemming the tide of illegal immigration, or the coordinated capture and extradition of dangerous drug kingpins, the relationship between the United States and Mexico is one of the most important and most successful we have,” said Flake. “As the administration reviews NAFTA, they must recognize the incredible value of the United States’ bilateral relationship with Mexico.”

To view the full text of the resolution, click here.