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NATIONAL COUNCIL OF FARMER COOPERATIVES

Washington Update

Chuck ConnerNovember 2017



Followers of Trump’s social media accounts

18.8

32.4

22.4

4.37

■ Twitter @POTUS ■ Twitter @realDonaldTrump ■ Facebook ■ YouTube ■ Instagram

In millions, as of June 17, 2017

• President Trump has made it clear that he sees Twitter as a way of circumventing the “fake media” when he feels his opinion isn’t getting across

• While many of the followers of his various accounts overlap, CNN estimates his total social media audience is approximately 60 million individuals


What’s the most important factor in writing the new farm bill?

The President has also been non-traditional in selecting his

high-level Administration officials


Trump’s cabinet has less government experience than previous administrations

Source: Brendan Coffey, Brandon Kochkodin and Yvette Romero, “Trump’s $6 billion cabinet: mostly men, mostly white, and not much government experience,” Bloomberg, December 15,2016.

President Male White Government experience Former generals Billionaires

George W. Bush

83% 74% 96% 4% 0%

Barack Obama

65% 52% 87% 4% 0%

Donald Trump*

76% 82% 41% 12% 12%

Comparison of recent presidents’ first cabinetsAs of Dec. 15th, 2016, subject to change pending confirmation

NATIONAL COUNCIL OF FARMER COOPERATIVES7

Source: Drew Desilver, “Trump’s Cabinet will be one of the most business-heavy in U.S. history,” Pew Research, January 19, 2017.

Percentage of total cabinet members without public-sector experience

33%

20%

7%

0%

7%

31%

0%

18% 17% 17%

10%

30%

0%

20% 20% 20% 20%

10% 11% 11%

38%

13% 13% 13%

0% 0% 0%

14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

■ Republicans ■ Democrats

President Trump’s Cabinet has significant business experience


In Congress, Republicans do control both

chambers. However, GOP leaders in each

face unique challenges to moving their

agenda forward.


Freedom CaucusProgressive Caucus

Far left and far right hold considerable sway over their respective parties in the House

House makeup by caucus membershipHouse Republican Conference 239

Freedom Caucus 30*

Tuesday Group 50*

House Democratic Caucus 193

Blue Dog Coalition 17

Progressive Caucus 70

Vacancies 3

*Estimated caucus size; rosters have not been finalized and published for the 115th Congress. The House Freedom Caucus does not publish its member list.Sources: National Journal Research, 2017.

Mainstream RepublicansMainstream Democrats

Tuesday Group (Mod. Rep.)Blue Dog Coalition (Cons. Dem.)

Vacancies

70

1061750

30

159

Whip stats • Republicans hold a 46-seat lead• A majority requires 217 votes (if

all members cast a ballot)• If Republicans lose all Freedom

Caucus votes, they require 7 centrist Democratic votes to form a majority

In the Senate, GOP leaders have a narrow majority and are well short of the 60 votes needed to invoke cloture

■ Democrats ■ Republicans ■ Independents

Control of the 115th Senate (2016-2018)

Republican Senate Majority

46-2-52

10


In a time of disruption and polarization, if progress on a range of issues is going to be made, we need to reinforce relationships with key allies and spur grassroots engagement to enlarge our coalition.

Implications for Agriculture and Farmer Co-ops


Ag’s Team


Top Issues for NCFC in 2017/2018

• Tax reform• Preparations for the 2018 Farm Bill

• Immigration reform• Trade policy

• GMO disclosure implementation• Pension


Tax Reform


Current Status

• House Ways & Means expected to release bill language later today; markup slated for next week.

• Senate bill could be released as early as late next week.

• As with any major overhaul of the tax code, the bills stand to impact different sectors and different states in dramatically different ways.


Concerns for Farmer Co-ops

• Section 199 deduction.




Key NCFC Messages on Section 199

• Tax reform should recognize the unique structure of farmer cooperatives and their unique relationship with

• Tax reform should not raises taxes on farmers across the country—which repeal of Section 199 would do.

• Farmers have been told that tax reform will give them more money in their pockets to invest in rural America. A tax bill that does the opposite is unacceptable.


Some State Impacts of Section 199

State Total DPAD Value

Illinois $41,241,056

Iowa $67,121,336

Kansas $26,416,837

Minnesota $131,145,613

Nebraska $60,290,156

North Dakota $72,459,816

South Dakota $79,904,534

Wisconsin $65,274,664


What YOU Can Do

• Call your members of Congress—both the House and Senate—to deliver this simple message:

• “Ending Section 199 for agriculture will raise taxes for farmers and ranchers in our state. This provision has worked as intended and has helped boost the rural economy. We need tax reform that puts more money into rural communities, not less.”

• US Capitol Switchboard: 202-224-3121


Some Good News – On The Pension Front

• New bill would ease funding requirements for rural cooperative “multiple-employer” pension plans.

• H.R. 3596, Rightsizing Pension Premiums Act of 2017, led by Representatives Mike Kelly (R-PA) and Ron Kind (D-WI) will adjust PBGC premiums to better reflect the low risk of these plans.

• More than 400 farmer cooperatives across the country today participate, as well as for other small employers that sponsor their own defined-benefit pension plans.


Immigration Reform


Current Status – Addressing Agriculture’s Issues

• House Judiciary Committee last week marked up and approved a bill providing a guest worker program for agriculture—a major accomplishment!

• While the bill does have many provisions of concern to producers, getting a bill out of committee is an important step in this process.

• Senate will wait for House to move first.

• Despite rhetoric on enforcement, administration sympathetic to ag’sneeds.

• Sec. Perdue publicly stated resolving our workforce issues is a top priority for him.


Key Messages to Congress

• Farmers, ranchers and growers across the country and across the country are facing a critical shortage of the skilled workers needed to harvest their crops or care for their animals.

• The Agricultural Workforce Coalition continues to push for a legislative solution to this problem that addresses both the current and future labor needs of agriculture.

• We oppose making the E-verify program mandatory for agricultural employers unless it is coupled with a solution that addresses agriculture’s labor needs.


88.8%Farm Bill


The amount of money the ag committees will have to work with, and what programs that money is

currently in.

What’s the most important factor in writing the next farm bill?


Several Current Commodity Programs Need Fixes (some

minor, some significant) to Ensure a Broad Safety Net

• Dairy

• Cotton

• ARC County


• Fewer than 50 House districts are majority ag.

• An urban-rural coalition—of agriculture, nutrition advocates and conservation groups—has been instrumental in passing the farm bill.

• Do not see a way to passage without a coalition this time.

The Farm Bill Coalition


NCFC Priorities

• Crop Insurance

• Trade

• Timing

• Fixing what needs to be fixed in Title 1


Trade


“A Trump/Pence presidency will negotiate better trade deals for our manufacturing

sector while continuing to protect and defend our vital agricultural export

markets.”

What do NAFTA (and possibly KORUS) renegotiations hold for ag?


Agriculture has an ally in Secretary Perdue


GMO Labeling


Any Questions?

Than

k You

!

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