Following is the

ACGA Special Order of Business

Regarding the Priority Recommendations for the Obama Administration

January 16, 2009, Coralville Iowa

The following programs, initiatives and Policies were all ratified by unanimous Board and member vote 1/16/09

• Expansion of Renewable Energy Production Incentives,
• Provisions for Financial Backstopping for Renewable Fuels Plants in Financial Peril,
• Extension the Renewable Energy Production Tax Credit (PTC) for a Minimum of Ten years,
• Increased Funding for Section 9007 and the Balance of the 2008 Farm Bill,
• Actions to Upgrade and Expand the National Electric Grid,
• Creation of an Undersecretary for Food and Agricultural Competiveness,
• Redirection of the World Trade Organization (WTO) Agenda, Rules and Guidelines,
• Ending the Outsourcing of U.S. Factories, Production and Employment,
• Ensuring Adequate Fertilizer Production for an Optimum Grain Harvest in 2009,
• Development of a Federal Indemnification Program for Contracted Agricultural Commodities,
• Enactment of a Farmer-Owned Strategic Grain Reserve. and
• Adoption of a New Price Support Program to Replace Inadequate and Failing Subsidy Programs. 

Expand Renewable Energy Production Incentives:

Expand renewable energy production incentives using all available means, using tax incentives, renewable energy mandates, and other programs.

In addition, the Environmental Protection Agency (EPA) should move quickly to authorize ethanol blends beyond the current 10 percent cap and 85 percent levels to allow the flexibility to use blends from 10 percent to 92 percent. 

Provide Financial Backstopping for Renewable Fuels Plants in Financial Peril:

Provide strong leadership and measures in support of the U.S. ethanol and biodiesel industry including financial backstopping of ethanol plants that are in financial difficulty resulting in reduced ethanol production and lower grain prices in Rural America.

Extend the Renewable Energy Production Tax Credit (PTC) for a Minimum of Ten years:

Develop and promote legislation in Congress that extends the energy production tax credit (PTC) for wind, solar, biomass and other renewable electricity generation for a minimum of ten years and includes provisions promoted by Congressman Wahl, D-Minn., and others to allow the PTC to be used against ordinary income by average tax payers to encourage additional investment and growth. 

Promote Increased Funding for Section 9007 and the Balance of the 2008 Farm Bill:

Promote increased funding for Section 9007 and other sections in the Energy Title of the Food, Conservation, and Energy Act of 2008 (P.L. 110-246) that facilitates development, production, utilization and conservation of renewable energy. 

Upgrade and Expand the National Electric Grid:

ACGA recommends upgrading and expanding the national electricity grid to provide the farm-to-market road for our new crop-- wind generated electricity, as well as ensuring that everyone in America, rural, urban and suburban has access to adequate and affordable energy. 

Creation of an Undersecretary for Food and Agricultural Competiveness:

ACGA recommends the creation of an office of Undersecretary for Food and Ag Competiveness.  ACGA recognizes the most powerful indication of the Obama administration’s commitment to marketplace competition in the food system will be the creation of this new mission area which would include existing and possible new agencies that deal with market competition issues at all levels within USDA’s jurisdiction. 

Redirect the World Trade Organization Agenda, Rules and Guidelines: 

ACGA recommends that the new administration examine, report on and propose changes to the negative economic impact of the World Trade Organization agenda, rules and guidelines on the U.S. agricultural, industrial, manufacturing and service sectors to include the resulting outsourcing of U.S. factories, production and employment. This examination should include U.S. changes in the tax code so as to discourage off-shoring, outsourcing and relocation of U.S. business to foreign countries and propose tax code modifications and other incentives to “onshore” businesses back to the U.S. 

Stop Outsourcing of U.S. Factories, Production and Employment: 

ACGA recommends policies that promote American interests by requiring full reciprocity, fairness, and transparency in all U.S. trade agreements, including in such areas as labor and environmental standards.  ACGA therefore recommends proposals put forth by the Coalition for a Prosperous America (an organization initialized by ACGA) listed below.

·         Actions to combat the illegal, mercantilist practice of prolonged currency misalignment, including legislation to make it actionable under U.S. trade law,

·         Aggressive enforcement of U.S. laws to halt foreign illegal trade activities such as dumping, subsidies and intellectual property theft.  In addition, U.S. policy must ensure that all goods sold here meet U.S. food and product safety standards,

·         The elimination of tax disadvantages which undermine the competitiveness of U.S. producers both at home and abroad or which discourage investment in America , and

·         A comprehensive strategy to reduce U.S. dependence on imported energy. 

Ensure Adequate Fertilizer Production for an Optimum Grain Harvest in 2009: 

Due to severe fluctuations in energy prices, related fluctuation in fertilizer prices and a concentrated market, most crop nutrient production facilities are curtailing production at a time when adequate supplies must be produced for the upcoming production season.  If this continues grain production in the US will drop for the coming year, due to reduced usage of fertilizer, either from high costs or inadequate supply.

·         We recommend immediate attention to this situation by appropriate authorities to pull stakeholders together and develop solutions to this serious event in the fertilizer industry before it is too late. 

·         We also recommend investigations of price fixing and anticompetitive behaviors by the Justice Department.  

Develop a Federal Indemnification Program for Contracted Agricultural Commodities:

Since grains, agricultural commodities and biofuels are traded in interstate commerce, ACGA recommends a federal indemnification program for contracted agricultural commodities similar to the program established and implemented in the State of Delaware to provide protection to farmers, warehouses and consumers. 

Adopt a New Price Support Program to Improve Inadequate and Failing Subsidy Programs:

Short-term, immediately stabilize farm prices, reduce farm program costs, and ensure adequate production for the renewable fuels industry without risking shortfalls. This action, while resisted by many in past, could perhaps be justified under emergency need due to the financial crisis requiring budget savings, and the need to maintain the growth of the renewable fuels industry.

Convert the current CCC price support loan for corn to a non-recourse loan rather than the current non-recourse marketing loan.

·         Increase the CCC price support loan to 90 percent of the cost of production for a limited quantity of bushels per farm operator.

·         Based on our prior experience and the behavior of the markets in the past two years, ACGA believe that this action alone will put a price floor under all storable commodities at a very low government cost. 

Past criticisms based on the build-up of burdensome stocks levels can be negated due to the fact that under the proper longer-term policies, (such as an ethanol reserve proposal contained in ACGA ’s recommendation on “Renewable Fuels”), all burdensome stocks could be converted to renewable fuels. 

Enact a Farmer-Owned Strategic Grain Reserve:

The ACGA supports and recommends passage, enactment and proper implementation of a Farmer Owned Reserve with adequate loan rates and components for food, feed and international relief uses, and renewable energy industry uses.  These reserves shall be used in years of short crops to stabilize the supply of our products for consumers.  These reserves shall be held off the market until such time market signals encourage release of stocks to fill market channels.  At no time shall this reserve be used to depress market prices.  Strategic reserves should be isolated from the market. 

Agricultural abundance can be a valuable resource if a portion of it is dedicated to expanding industrial uses of agriculture products.  A dedicated grain reserve should be established that would provide a portion of the investment resources for companies expanding or building new facilities used to produce agriculture products for industrial non-food markets.

ACGA supports approval of higher Blends of Ethanol and incentives for making infrastructure changes for higher blends. We also demand that our auto manufacturers manufacture 100 percent flex fuel vehicles by 2011 tied to their next request for taxpayer monies.

Motion to request staff to develop a special order of business to develop a release to regarding the above bullet points.

To replace our policy related to 1031 exchange:

In order to reduce the current 1031 generated unfair competition, ACGA proposes that the gain from the sale of all real estate such as homes, small businesses and farms currently be limited to that gain over and above the 50 percent inflation adjusted increased value of such real estate.  This would reduce the incentive for investors to see overpriced farmland purchases as their best alternative for tax savings.