Associated Press writer Lisa Rathke reported today that, “Can a tomato grown in a nutrient solution instead of dirt be called ‘organic‘? Some purists don’t think so.

“The National Organic Standards Board, which advises the U.S. Department of Agriculture, voted this month against a proposal to exclude hydroponics and aquaponics — the raising of plants without soil and fish using the same water — from the USDA’s organic certification program.

“Many traditional organic farmers and their supporters say allowing hydroponic farms to be certified organic erodes the integrity of the $16 billion U.S. organic produce industry.”

The AP article indicated that, “To them, organic farming is about far more than not using toxic pesticides; it’s rooted in enhancing the fertility of soils, a concept developed in the early 20th century by pioneering organic farmers. Organic farmers worked hard to create the National Organic Program in 2000, an achievement they say is now being watered down by allowing hydroponic farms to be part of it.”

Ms. Rathke added that, “Marianne Cufone, executive director of the Recirculating Farms Coalition, which represents hydroponic and aquaponic farmers, said the law left room for the meaning of organic to expand. She said she was shocked that so many people opposed hydroponic and aquaporin farming from being labeled as such.”

DTN Political Correspondent Jerry Hagstrom reported today that, “A coalition of 180 farm and agribusiness groups has written House Speaker Paul Ryan, R-Wis., and House Minority Leader Nancy Pelosi, D-Calif., urging them to preserve the deduction for co-op production and marketing expenses known as Section 199 in the tax bill.

“The bill that the House Ways and Means Committee passed last week eliminates the deduction that co-ops pass along to their members. Section 199 is generally known as the Domestic Production Activities Deduction,

“‘In its current form, H.R. 1 repeals Section 199 with the assumption that cooperatives and their members would benefit from the proposed reduced corporate and individual tax rates,’ the farm leaders organized by the National Council of Farmer Cooperatives wrote.”

The DTN article pointed out that, “The House is expected to vote on the tax bill on Thursday after the House Rules Committee issues a rule on Wednesday.

“The Senate Finance Committee is considering the Senate version of the bill this week.”

Lydia Wheeler reported last week at The Hill Online that, “Senate Democrats are pushing the Agriculture Department to create a labeling standard for products made with genetically modified organisms (GMO) that is consumer-friendly.

“Congress passed a law in July ordering the agency to create a national labeling standard within two years.

“The law allows food producers to use QR codes that can be scanned with smartphone. In a letter Tuesday led by Sen. Jeff Merkley (D-Ore.), nine Democrats and Sen. Bernie Sanders (I-Vt.) asked Agriculture Secretary Sonny Perdue to consider the obstacles Americans could face in gaining that information electronically.”

Ms. Wheeler stated that, “The senators noted that a recent study required by the law found around 74 million Americans did not own a smartphone in 2016.

“‘Smartphone ownership is even lower among older and rural Americans, and many rural communities lack the broadband infrastructure that is necessary for QR codes to work,’ they wrote.

“The senators recommended QR codes and other electronic disclosure methods not be used until broadband internet access is universal.”

An update late last week at the U.S. Department of Agriculture’s blog indicated that, “Thousands of veterans leave the military every year, but there’s a new ‘service’ they can provide. Over the next few decades, the world will need to increase its food production to keep up with a growing population. Career options available to American vets in the agriculture sector include owning/operating your own farm, or working in one of the many areas that supports the nation’s rural fabric.”

The USDA update noted that, “[USDA] assists beginning farmers and ranchers, including veterans, in several ways. These include microloans, operating loans and other loan programs that help in buying or leasing farm land. Recently, USDA partnered with SCORE to provide mentorship to veterans and other beginning farmers who need business or other guidance as they prepare for their new careers.”

And last week’s update added that, “‘Its endless possibilities where you could go as a career in agricultural farming and you just feel responsible to present good product to consumers and feel compelled to take care of the land,’ said Lenny Miles Jr., Navy veteran and farmer in Chestertown, Maryland. Miles helps his father and grandfather run the family farm. Although Miles returned to an established farm, it is possible to start from scratch.

“Tom and Anita Roberson both served in the Army a combined 34 years and started Botanical Bites and Provisions in Fredericksburg. They didn’t come from a farm background. Both worked in the medical field in the Army.  After retiring, Tom worked in his private practice for several years before attending farming classes with his wife. Their son, Julian, helped with a business plan and Anita stressed having a business plan is extremely important. ‘If you want to get into farming, the only excuse that you have is yourself because the resources are there’ said Anita.  ‘USDA has plenty of resources.'”

DTN Ag Policy Editor Chris Clayton reported today that, “The U.S. Senate’s tax-reform bill released late Thursday would keep more tax brackets and maintain the estate tax, but also would still keep several tax provisions important to farmers regarding equipment expensing and pass-through income.

“With the House advancing its tax-reform package on Thursday to floor debate next week, the Senate Finance Committee released details of its plan as well. The Senate Finance Committee is set to start markup and debate on its bill starting Monday, Nov. 13.

“Like the House, the Senate lowers the corporate tax rate from 35% to 20%, but the Senate delays that lower 20% corporate rate until 2019. That provision has already been panned by business and conservative groups — and was cited as a reason stocks fell on Thursday. But the delay was included as a way to keep the 10-year cost of the tax bill under $1.5 trillion. The Republican-led Senate can avoid facing a 60-vote threshold for its bill if the tax changes do not add more than $1.5 trillion in tax costs over 10 years.”

Mr. Clayton noted that, “Like the House bill, the Senate bill would allow 100% expensing for equipment put into service before Jan. 1, 2023.”

“The Senate bill does not appear to have language that would subject rental income to 15.3% self-employment taxes. That issue had become a major sticking point in the House bill because landlords, including farm landlords, would have been subject to self-employment taxes. The House Ways and Means Committee removed that language Thursday before the committee vote to advance its bill to the House floor,” the DTN article said.

Today’s article also indicated that, “In a blow to farmer cooperatives, the Senate also follows the House and repeals the Section 199 Domestic Production Activities Deduction. The National Council of Farmer Cooperatives has warned this 9% deduction is worth about $2 billion in deductions to cooperatives that are directly passed on to co-op members. But both chambers now have agreed to eliminate the deduction.”

Mr. Clayton added that, “While several major farm groups have pushed for full elimination of the estate tax, the Senate bill does not repeal it. The Senate plan increases the estate-tax exemption from $5.49 million to $11 million for an individual or $22 million for a couple, which is also indexed for inflation. The Senate would keep a special valuation clause for real estate on smaller farms.

“The House bill doubles the estate-tax exemption to $11 million then phases out the estate tax by 2023.”

Nicole Heslip reported yesterday at Brownfield that, “The USDA has delayed implementing the Organic Livestock and Poultry Practices Rule for another six months.

“The agency says it is delaying the rule so that important questions can be more fully assessed through the notice and comment process before implementation.

“The original rule was finalized in the waning days of the Obama Administration and on January 20th, the Trump administration delayed implementation to May 19^th, then to November 14th to allow time for further consideration by the USDA.  It is now delayed until May of next year.”

The Brownfield update noted that, “The Chairman of the House Ag Committee Mike Conaway says the rule goes beyond the scope of the National Organic Program and threatens animal health and food safety.”

Associated Press writer Andrew Demillo reported yesterday that, “An Arkansas regulatory panel voted Wednesday to ban the use of an herbicide for part of next year after the weed killer drew complaints from farmers across several states who say it has drifted onto their crops and caused widespread damage.

“The Arkansas Plant Board on Wednesday approved prohibiting the use of dicamba in the state between April 16 and Oct. 31. The ban includes several exemptions, including for pastures and home use, and now heads to a legislative panel.

“Dicamba has been around for decades, but problems arose over the past couple of years as farmers began to use it on soybean and cotton fields where they planted new seeds engineered to be resistant to the herbicide. Because it can easily evaporate after being applied, the chemical sometimes settles on neighboring fields. The state earlier this year approved a temporary ban on the herbicide’s sale and use, and has received nearly 1,000 complaints this year about dicamba.”

The AP article added that, “Monsanto, which last month sued Arkansas for previously banning its dicamba weed killer, criticized the panel for the latest restriction and said the move will deprive farmers of a needed tool to protect crops. The company left open the possibility of amending its lawsuit or filing another challenge over the new ban.”

DTN Ag Policy Editor Chris Clayton reported today that, “The issue of tacking self-employment taxes to rental income was an ‘unintended consequence‘ of the House tax reform bill that should be fixed before the bill hits the House floor for full debate, according to Rep. Mike Conaway, R-Texas.

“Conaway told reporters in a conference call Wednesday that he had talked with Ways and Means Committee Chairman Kevin Brady, R-Texas, as well as two other members of the Ways and Means Committee about the issue of self-employment taxes on rental income.

“‘The initial reaction from the folks on the committee was, that was an unintended consequence,’ Conaway said. He added, ‘I think we will get that fixed.'”

Mr. Clayton noted that, “The tax-reform bill on Thursday remained in committee debate as House Republicans seek to get the legislation to the full House, possibly as early as next week. The bill seeks to cut a net $1.5 trillion over 10 years with an overhaul of corporate tax rates and simplification of personal taxes.

“The Senate Finance Committee is expected to release its tax-reform bill as early as Thursday, which is expected to have different language in various provisions compared to the House bill, while still sticking with the net $1.5 trillion in cuts over the next decade.”

U.S. Secretary of Agriculture Sonny Perdue stated in a recent column that, “The unified framework, which the president supports, proposes tax cuts and reforms that will provide relief for the middle class, which is where many family-owned farms find themselves. The framework will reduce tax rates and double the standard deduction, while also making filing taxes more simple and fair. Most Americans will be able to file their tax return on one page. The business reforms will lead to higher productivity, resulting in higher wages. Overall, the typical American family will on average see a $4,000 increase in wages.”

Sec. Perdue added that, “As secretary of agriculture, it’s important to me that the president’s tax reform will help farmers, since most of them file and pay individual tax returns. While we want our farmers to grow our food and fiber, in order to continue that important work, they must also be able to operate their businesses. The current tax code is a burden that strangles investment and smothers growth. Farmers cannot buy seed with money that they must spend on tax attorneys and accountants. They cannot invest in irrigation and new equipment with money they must spend to comply with the millstone of oppressive regulation and high taxes.”

Sec. Perdue noted that, “Two issues related to farming are transportation and trade. Producers must be able to move their products to market before they can ever sell them, either domestically or to foreign consumers.

“In promoting his tax relief agenda to a large group of truckers in Pennsylvania, Trump observed that ‘when the trucks are moving, that means our economy is moving.’ Tax reform is good for truckers and it is good for farmers, too. Trucks rolling down the highways loaded with American farm products, headed to domestic and international customers, are good for the agricultural economy and good for the American economy.

“The unified tax reform framework will also eliminate what is perhaps the most unjust tax ever imposed – the ‘death tax.’ One-third of American farmers are over the age of 65 and the time is coming when their farms will pass to the next generation. The death tax threatens to break up family farms just to pay the tax bill, causing too many people to spend too much money hiring accountants and buying insurance to shield their life’s work from this unfair levy.”