Rep. Lungren (R-CA) introduced H.R. 4, the Small Business Paperwork Mandate Elimination Act of 2011, to repeal form 1099 information reporting requirements. The legislation has 263 cosponsors.
Two bills have been introduced in the Senate: 1) S. 72 introduced by Sen. Baucus (D-MT) has 19 cosponsors and is a companion to the Lungren bill and 2) S. 18, Small Business Paperwork Mandate Elimination Act introduced by Sen. Johanns (R- NE) has 59 cosponsors. The costs of the Baucus and Lungren bills are not offset. The Johanns’ bill is paid for by using unobligated stimulus funding.
After the bills were introduced, Sen. Johanns and Senate Agriculture, Nutrition & Forestry Committee Chairwoman Stabenow (D-MI) filed amendments to theFederal Aviation Administrationbill on the Senate floor to repeal form 1099 informational reporting requirements. Sen. Baucus did not file an amendment. The Johanns and Stabenow amendments both fully repeal 1099 and use unobligated funds as a“pay for.”
Sen. Stabenow indicated inan AgricultureCommittee news release that, “The U.S. Senate today passed an amendment offered by Senator Debbie Stabenow to repeal a burdensome recordkeeping requirement for small businesses in a bipartisan vote of 81-17. Called the ‘1099 requirement,’ this IRS regulation would require small business owners to file an IRS form 1099 for each vendor from whom they make purchases of $600 or more. Many small business owners and national associations have advocated for the repeal of this provision. With respect to the vote, Nebraska GOP Senator Mike Johanns stated that, ‘I’m thrilled that after multiple attempts to repeal this burdensome mandate, the Senate has finally done the right thing in voting to repeal it,’ Johanns said.”
The measure now must be taken up by the House.
The NCC had joined other farm, livestock and commodity organizations in urging Congress to act to approve legislation to repeal the reporting requirements. Copies of the letters are available on the NCC’s website athttp://www.cotton.org/issues/index.cfm.The same group letter that was sent to Sen. Johanns and Sen. Baucus also was sent to Sen. Stabenow.The NCC supported similar efforts last year (see 9/10/10 Cotton’s Week).
Under current law, IRS Form 1099-Misc must be filed when a person engaged in a trade or business pays $600 or more to a non-employee for services performed during the calendar year. Rental payments are included in the reporting requirement but payments made to corporations are generally excluded. The business making the payment must provide a taxpayer identification number for each payee. A copy of the 1099 form must be furnished to both the person providing the service and to the IRS. Beginning in ’12, though, farms, ranches and other businesses would be required to complete an IRS Form 1099 for all payments including goods and services which total $600 or more in a calendar year to a single non-employee payee. Payments made to corporations will not be excluded from the reporting requirement.
Senator Makes History With Appointment
Sen. Roberts (R-KS), a national leader in agriculture, made history as he was voted the top Republican on the Senate Committee on Agriculture, Nutrition and Forestry. Roberts goes into the history books as the first Member of Congress to serve as both chairman and ranking member of the House Agriculture Committee and as the Senate Agriculture Committee’s ranking member.
In this new post as the ranking Republican, Roberts continues his leadership on behalf of Kansans, rural communities and production agriculture.
“I am honored to continue working on behalf of America’s farmers and ranchers in this new position,” Sen. Roberts said. “Our nation is blessed with the safest, highest-quality and most affordable food and fiber in the world. I look forward to working with Chairwoman Debbie Stabenow. We have a history of working together on the Agriculture and Finance Committees, and I know we will make a great team for American Agriculture. Production agriculture faces a serious challenge: doubling output over the next 40 years to meet global hunger demands. Yet our producers face critical hurdles in meeting this challenge. Often, the federal government is the source of their frustration. I look forward to being a champion for those who feed a troubled and hungry world, while looking for new ways we can propel our industry and our rural communities into the next generation.”
Roberts’ priorities for the 112th Congress will focus on maintaining the production agriculture safety net, expanding trade opportunities for farmers and ranchers, conducting oversight of regulations that threaten the competitiveness of America’s farmers, and maintaining the security and science based sustainability of food and agriculture sectors.
As the House Agriculture Committee Chairman from ’95-97, then Rep. Roberts led the reform of outdated federal farm policies. He also reformed the federal food stamp program, reducing waste, fraud and abuse. His advocacy for farmers and ranchers continued in the Senate as a key member of the Senate Agriculture Committee since ’97. In ’00, he wrote sweeping reforms to the federal crop insurance program. He also has called for a more aggressive US trade policy and has fought to regain access to overseas markets for US beef exports.
The last Kansan to hold the ranking member post of the Senate Agriculture Committee was Sen. Dole (R-KS) who 32 years ago served in that capacity from ’75-78. Prior to that, Sen. Capper (R-KS) served as ranking member from ’43-47, prior to chairing the Committee from ’47-49. Sen. Lane (R-KS) was the first Kansan to serve as chairman in 1863.
In addition to the top Republican spot on Agriculture, Roberts will continue his work in behalf of Kansas as a member of the Senate Finance Committee; the Health, Education, Labor, and Pensions Committee; the Rules Committee; and the Ethics Committee.
General CRP Signup Period Announced
Agriculture Secretary Tom Vilsack announced that the next general signup for the Conservation Reserve Program (CRP) will begin on March 14, ’11, and continue through April 15, ’11. This is the second consecutive year that USDA has offered a general CRP signup.
“Over the past 25 years, support for CRP has grown thanks to strong backing from farmers, ranchers, conservationists, hunters, fishermen and other outdoor sports enthusiasts,” Vilsack said. “Not only has CRP contributed to the national effort to improve water and air quality, it has preserved habitat for wildlife, and prevented soil erosion by protecting the most sensitive areas including those prone to flash flooding and runoff. Today’s announcement continues the Obama Administration’s effort to conserve sensitive areas and improve wildlife habitat.”
Through CRP, eligible landowners receive annual rental payments and cost-share assistance to establish long-term, resource conserving covers on eligible farmland. Land can be enrolled for a period of up to 15 years. During the general signup period, farmers and ranchers may offer eligible land at their county Farm Service Agency (FSA) office. Land currently not enrolled in CRP may be offered in this signup provided all eligibility requirements are met. In addition, current CRP participants with contracts expiring this fall may make new contract offers. Contracts awarded under this signup are scheduled to become effective on Oct. 1, ’11. The general signup for CRP will not affect cropped acres for this growing season. Acres will be enrolled in the program in the fall.
The FSA implements CRP on behalf of the Commodity Credit Corp. FSA will evaluate and rank eligible CRP offers using an Environmental Benefits Index (EBI) that shows the environmental benefits to be gained from enrolling the land in CRP. The EBI consists of five environmental factors (wildlife, water, soil, air and enduring benefits) and cost. Decisions on the EBI cutoff will be made after the sign-up ends and after analyzing the EBI data of all the offers.
In addition to the general sign-up, CRP's continuous signup program will be ongoing. Continuous acres represent the most environmentally desirable and sensitive land. For more information, visithttp://www.fsa.usda.gov/crp.
Through the ’08 farm law, CRP is authorized for a maximum enrollment of 32 million acres. USDA estimates that contracts on 3.3 million to 6.5 million acres are scheduled to expire annually between now and ’14.
Punke, Siddiqui Nominations Resubmitted
President Obama re-nominated for full terms several of last year's recess appointees currently serving in key trade positions. On Jan. 26, he resubmitted to the Senate the nominations of Michael W. Punke, to be a deputy US Trade Representative, with the rank of ambassador; and Islam A. Siddiqui, to be chief agricultural negotiator, Office of the USTR, with the rank of ambassador.
Punke, the deputy US trade representative, has strong support from the business community as a result of his advocacy for US policies at the World Trade Organization Doha Round negotiations in Geneva. Immediately before his recess appointment, Punke was serving as a consultant to USTR.
Chief Agricultural Negotiator Siddiqui recently has negotiated deals with Russia and Korea on poultry and beef, respectively, in ’10. He was a consultant to USTR prior to his recess appointment.
The NCC joined commodity and livestock organizations in urging the Senate to confirm Siddiqui and Punke last year. If the Senate does not act, their recess appointments expire when the 112th Congress adjourns sine die in ’12.
Key Senate Subcommittee Members Chosen
The Senate Appropriations Committee announced its new membership and subcommittee members, including its subcommittee on Agriculture, Rural Development, Food & Drug Administration, and Related Agencies. That panel determines funding for USDA and the FDA.
Subcommittee members include: Democrats -- Sens. Kohl (WI), chairman; Brown (OH); Feinstein (CA); Johnson (SD); Nelson (NE); and Pryor (AR); and Republicans – Blunt (MO), ranking member; Cochran (MS); Collins (ME); Hoeven (ND); McConnell (KY); and Moran (KS).
Birdsong Named NCC General Counsel
The NCC’s new general counsel is Christy Birdsong, who has served as counsel for the House Committee on Agriculture since ’05.
Birdsong, who provided the Agriculture Committee with legal counsel on issues ranging from conservation to climate change, also worked extensively with policy staff and interest groups in drafting the research, conservation and horticultures titles of the current farm bill.
Prior to her House Agriculture Committee tenure, Birdsong served as federal government affairs leader for CropLife America in Washington, DC. While there, she developed, implemented and managed legislative and political strategies in support of pesticides and crop biotechnology products. She also monitored, reviewed and analyzed all pesticide initiatives that emanated from Congress.
She also served as a legislative assistant for then California Rep. Condit, and later as a federal representative for then California Gov. Gray Davis. She earned a BA in English and Anthropology from the U. of California, Berkeley, and her JD from the U. of California’s Hastings College of Law.
Birdsong, who will be based in the NCC’s Washington office, will report directly to the NCC President and be responsible for providing principal legal guidance and opinions on all matters which may be of concern to the association.
“She also will assist in the development of industry testimony,” NCC President Mark Lange said. “She has significant experience in drafting and analyzing legislation and identifying and determining the potential impact of emerging issues. She also is very familiar with farm policy, environmental issues and other matters of major interest and concern to the U.S. cotton industry.”
US Cotton Promoted at Colombiatex
The COTTON USA Sourcing Program welcomed two new members to its program during the 23rd annual Colombiatex trade show in Medellín, Colombia.
Seven members of the COTTON USA Sourcing Program displayed samples of their products at the COTTON USA pavilion, which highlighted the benefits of US cotton and cotton products. US mills participating with Cotton Council International and Cotton Incorporated included American Denimatrix, Antex Knitting Mills, Buhler Quality Yarns, Frontier Spinning, Parkdale, Tuscarora and Zagis USA.
Cotton Incorporated conducted five presentations on the “Color, Silhouettes and Texture Trends Spring – Summer 2012.” A second conference was presented on the current cotton price situation.
About 250 people from the regional textile industry attended the conferences. A private forum regarding the current cotton price situation was held for the presidents, general managers and purchasing managers of select manufacturers. The COTTON USA Sourcing Program held an industry event on the second day of Colombiatex where US mills met with 61 representatives of the Andean textile industry.
Shipments Reach Marketing Year High
Net export sales for the week ending Jan. 27 were 58,700 bales (480-lb). This brings total ’10-11 sales to about 15.0 million bales. Total sales at the same point in the ’09-10 marketing year were about 8.4 million bales. Total new crop (’11-12) sales are 3.0 million bales.
Shipments for the week were 470,300 bales – a marketing-year high – which brings total exports to date to 5.9 million bales, compared with the 4.5 million bales at the comparable point in the ’09-10 marketing year.
Effective Feb. 4-10, ’11
Adjusted World Price, SLM 11/16
181.91 cents
*
Fine Count Adjustment ('09 Crop)
1.55 cents
Fine Count Adjustment ('10 Crop)
1.65 cents
Coarse Count Adjustment
0.00 cents
Marketing Loan Gain Value
0.00 cents
Import Quotas Open
0
Special Import Quota (480-lb bales)
0
ELS Payment Rate
0.00 cents
*No Adjustment Made Under Step I
Five-Day Average
Current 5 Lowest 3135 CFR Far East
198.75 cents
Forward 5 Lowest 3135 CFR Far East
135.38 cents
Coarse Count CFR Far East
NA
Current US CFR Far East
195.25 cents
Forward US CFR Far East
135.65 cents
'10-11 Weighted Marketing-Year Average Farm Price
Year-to-Date (Aug.-Dec.)
80.03 cents
**
**August-July average price used in determination of counter-cyclical payment
