A recent update from USDA’s Economic Research Service (“Under the Tax Cuts and Jobs Act, Only 0.11 Percent of Farm Estates Would Have Owed Estate Taxes in 2016“) stated that, “For nearly a century, the Federal estate tax has applied to the transfer of property at death. Recently passed in December 2017, the Tax Cuts and Jobs Act (TCJA) not only changed the Federal income tax system but also doubled the estate tax exemption amount to $11.18 million per individual. This exemption amount has increased significantly since 2000, when the exemption was $675,000, resulting in fewer farm estates that must file a tax return or that owe estate taxes.

“Using an actuarial model and data from USDA’s Agricultural Resource Management Survey, ERS researchers estimated that 39,214 farm estates were created in 2016. Had the TCJA been in effect in 2016, only 0.58 percent of these farm estates would have been required to file an estate tax return. After accounting for adjustments, deductions, and expenses, only 0.11 percent of these estates would owe estate taxes. Across all estates that owe tax, the aggregate liability was estimated at $104 million.

“Under the Tax Cuts and Jobs Act, Only 0.11 Percent of Farm Estates Would Have Owed Estate Taxes in 2016,” by Siraj Gustavo Bawa. USDA- Economic Research Service (September 04, 2018).

“By comparison, under the previous law in 2016, ERS estimated that 2.05 percent of farm estates were required to file an estate tax return, but only 0.86 percent of farm estates would owe estate taxes. Across all estates that owe tax, the aggregate liability was estimated at $496 million in 2016.”

A news release Tuesday from USDA’s Farm Service Agency (FSA) stated that, “U.S. Secretary of Agriculture Sonny Perdue today launched the trade mitigation package aimed at assisting farmers suffering from damage due to unjustified trade retaliation by foreign nations.  Producers of certain commodities can now sign up for the Market Facilitation Program (MFP), while USDA will also begin to purchase identified commodities under a food purchase and distribution program.  Additionally, USDA has begun accepting proposals for the Agricultural Trade Promotion Program (ATP), which will help American farmers find and access new markets for their products.  In total, USDA will authorize up to $12 billion in programs, consistent with World Trade Organization obligations.

“Perdue announced in July that USDA would act to aid farmers in response to trade damage from unjustified retaliation.  President Trump directed Secretary Perdue to craft a short-term relief strategy to protect agricultural producers while the Administration works on free, fair, and reciprocal trade deals to open more markets in the long run to help American farmers compete globally.  These programs will assist agricultural producers to meet some of the costs of disrupted markets.

“‘These programs will allow President Trump time to strike long-term trade deals to benefit our entire economy, including the agricultural sector, in the long run,’ Perdue said.  ‘Farmers will tell you that they would always prefer to sell a good crop at a fair price, rather than receive government aid, and that’s what long-term trade deals will accomplish.  But in the meantime, President Trump has promised that he will not allow American agriculture to bear the brunt of the unjustified retaliation from foreign nations.  Today we are putting the President’s promise into action.'”

The FSA update added, “The sign-up period for MFP is now open and runs through January 15, 2019, with information and instructions provided at www.farmers.gov/mfp.  The MFP provides payments to cotton, corn, dairy, hog, sorghum, soybean, and wheat producers who have been significantly impacted by actions of foreign governments resulting in the loss of traditional exports.  The MFP is established under the statutory authority of the Commodity Credit Corporation CCC Charter Act and is under the administration of USDA’s FSA. Eligible producers should apply after harvest is complete, as payments will only be issued once production is reported.

“A payment will be issued on 50 percent of the producer’s total production, multiplied by the MFP rate for a specific commodity.  A second payment period, if warranted, will be determined by the USDA.”

Wall Street Journal writer Ruth Bender reported yesterday that, “Bayer AG said the number of American plaintiffs alleging its recently acquired weedkillers cause cancer has risen sharply, adding to concerns about potentially lengthy and costly litigation stemming from its acquisition of Monsanto.

A news update last week from the U.S. Department of Agriculture (USDA) stated that, “U.S. Secretary of Agriculture Sonny Perdue today unveiled a new webpage featuring information about the importance of rural e-Connectivity and the ways the [USDA] is investing to help deploy high-speed broadband infrastructure in rural America.

The U.S. Department of Agriculture’s Economic Research Service (ERS) indicated on Thursday that, “Net farm income, a broad measure of profits, is forecast to decrease $9.8 billion (13.0 percent) from 2017 to $65.7 billion in 2018, after increasing $13.9 billion (22.5 percent) in 2017. Net cash farm income is forecast to decrease $12.4 billion (12.0 percent) to $91.5 billion.”

The ERS update noted that, “In inflation-adjusted 2018 dollars, net farm income is forecast to decline $11.4 billion (14.8 percent) from 2017 after increasing $13.0 billion (20.3 percent) in 2017. If realized, inflation-adjusted net farm income would be just slightly above its level in 2016, which was its lowest level since 2002.”

Thursday’s report also indicated that,

• Corn cash receipts are forecast down $0.8 billion (1.8 percent) due to lower expected quantities sold, while wheat cash receipts are forecast up $0.5 billion (6.3 percent) due to higher prices.
• Direct government farm payments—which include Federal Government farm program payments paid directly to farmers and ranchers but exclude insurance indemnity payments made by FCIC and USDA loans—are forecast to decline $2.0 billion (17.4 percent) to $9.5 billion in 2018, as declines in Agriculture Risk Coverage and Price Loss Coverage payments more than offset an expected increase in supplemental and ad hoc assistance and other programs.
• Federal Crop Insurance Corporation indemnities—payments made by private insurance companies to farm operators for their insured commodity losses—are forecast to rise by $0.9 billion (17.4 percent), to $6.1 billion, in 2018. FCIC premiums paid are expected to decline by $0.2 billion (5.6 percent).
• Total production expenses, including operator dwellings, are forecast to increase $11.8 billion (3.3 percent) in 2018 to $365.9 billion. Expenses for fuels/oils are forecast up $2.3 billion (17.8 percent) and interest expenses, including dwellings, are forecast up $3.2 billion (17.3 percent). Hired labor expenses are forecast to increase $1.5 billion (5.1 percent). Feed is forecast to increase $2.6 billion (4.8 percent).

Bloomberg writers Joel Rosenblatt and Lydia Mulvany reported yesterday that, “When it comes to killing weeds, Bayer AG’s crop chemical XtendiMax has become a powerful new tool for American farmers. But environmental groups say U.S. regulators ignored warnings about the herbicide’s main ingredient, dicamba, when they permitted its use in 2016.

“A federal appeals court in Seattle was asked Wednesday to overturn the Environmental Protection Agency approval after the unintended destruction of millions of acres of crops not treated with XtendiMax, from wine grapes and peach orchards to vegetables and soybeans. Bayer inherited XtendiMax when it acquired Monsanto Co. for $66 billion in June, and dicamba-based products are key to its growth strategy for herbicides and genetically modified seeds.

“Groups including The Center for Food Safety allege the EPA violated federal law by ignoring evidence from officials in various states that the chemical easily drifted onto untreated crops. In 2017, among soybean farms alone, 3.6 million acres of non-resistant crops were damaged, according to Kevin Bradley, a professor of plant sciences at the University of Missouri. After about 2,700 complaints last year, the EPA required a more detailed product label, mandatory application training, and more rigorous record keeping.”

The Bloomberg writers noted that, “At the hearing on Wednesday, the environmental groups asked the appeals court to invalidate the EPA’s 2016 approval of XtendiMax to make sales illegal.”

“Monsanto filed briefs supporting the EPA’s decision-making, arguing farmers need new tools to combat weeds that have grown resistant to Roundup and by 2012 covered more than 60 million acres of U.S. farmland,” the article said, adding that: “The court fight comes as the EPA’s approval of dicamba formulations expires Nov. 9, and Bayer expects a renewal decision before then.”

(The case is National Family Farm Coalition v. United States Environmental Protection Agency and Monsanto co., 17-70196, 9th U.S. Circuit Court of Appeals (Seattle)).