Ohio Farmers Union

Serving Family Farmers and Consumers Since 1934



United to Grow Family Agriculture Since 1934

Clean Fuel Tax Credits Out of Reach for Many Farmers

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Sustainable aviation fuel and clean fuel production tax credits have the potential to benefit farmers while lowering America’s carbon emissions, but shortcomings in the provisions could put the benefits out of reach for many farmers in the U.S.

Four groups, including the National Farmers Union, American Farm Bureau Federation, American Soybean Association and National Corn Growers Association, sent a letter to Treasury Secretary Janet Yellen and U.S. Office of Management and Budget Director Shalanda Young, asking them to ensure the Clean Fuel Production Credit (45Z) works for U.S. farmers.

The letter states, “As farmers, we are growing the feedstocks necessary for clean fuel production, such as corn, soybeans and other biomass. The 45Z tax credit has the potential to be a game-changer for our industry, offering a valuable incentive for the production and use of biofuels that will lower carbon emissions. However, without clear domestic feedstock requirements, the benefits of this policy are at risk of being diverted from American farmers.”

Currently, there is no requirement that feedstocks be grown domestically, which means foreign feedstock producers can take advantage of the clean fuel production credit. This goes against the broader goal of supporting U.S. agriculture and rural communities, and will lead to market distortions.

Additionally, the bundling of climate-smart agriculture practices and cumbersome reporting requirements in the sustainable aviation fuel guidance will exclude a large number of farmers from benefitting from the SAF credit. “The implementation of no-till farming, cover cropping and enhanced efficiency fertilizers requires significant upfront investments in both time and resources. Without a greater incentive, many farmers may simply be unable to implement these bundled practices based on economic limitations alone,” the groups write. “Moreover, even if geography allows farmers to comply with the CSA (climate-smart agriculture) requirements, the cumbersome reporting requirements will dissuade even the most sophisticated farming businesses from participating. Additional options for compliance must be considered that would give farmers the ability to comply with CSA requirements without running afoul of the Internal Revenue Service.”

The groups are asking the administration to create a domestic feedstock requirement for the clean fuel production tax credit and to broaden eligibility for the sustainable aviation fuel credit while addressing the unworkable paperwork requirement.

Read the full letter here.

To read an American Farm Bureau Federation Market Intel on the tax credits, click here.

NFU’s Kipley Testifies on EPA & Agriculture

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WASHINGTON – NFU Vice President Jeff Kippley represented family farmers and ranchers today at a House Agriculture Committee hearing. “Examining the Consequences of EPA’s Actions on American Agriculture” provided a platform for discussing various concerns related to the Environmental Protection Agency’s (EPA) regulations and their impact on the agricultural sector. 

In his testimony, Kippley emphasized the necessity for a balanced approach, with reasonable and appropriate regulations to safeguard our natural resources. 

“To build a successful farm business over the long term, I need my operation to be profitable,” Kippley said in his testimony. “Sometimes I worry that the wrong federal regulations could harm my business, but I also know that it’s important to have practical rules of the road by which everyone must abide. Properly designed and enforced regulations help protect all of us from bad actors. … EPA plays an essential role in protecting our environment, but the Agency should do more to limit the impact of its regulations on family farmers and ranchers. One of the best ways to do this is through regular engagement and partnership with farmers and communities. We commend the Agency for creating the new Office of Agriculture and Rural Affairs. Farmers Union looks forward to working with EPA and this Committee to ensure our voices are clearly heard by the agency.”  

Testimony highlights:  

  • Waters of the U.S. (WOTUS): ”The game of regulatory ping-pong over WOTUS has gone on far too long. Like everyone else, we want simplicity and clarity.” 
  • Crop Protection: ”Most farmers don’t have the scientific expertise to evaluate crop protection products for safety, but we know these products are essential for our operations. EPA’s rules, oversight and labeling guidelines help keep us safe.” 
  • Renewable Fuel Standard (RFS) and Biofuels: ”The RFS has been the most successful clean fuels policy in the U.S. by making renewable fuel more affordable, creating jobs and reviving rural economies, and reducing oil imports and air pollution. Future action by EPA should support the program’s growth and success … We also appreciate the administration’s focus on Sustainable Aviation Fuel (SAF). I hope the Committee will support the adoption of agricultural feedstocks for SAF production.” 
  • Right to Repair: ”It’s incredibly important that farmers have the option to fix our own equipment or go to independent mechanics of our choosing, just like everyone can with their cars and trucks. But some farm equipment manufacturers believe farmers cannot be trusted to repair their own equipment … EPA Administrator [Michael] Regan affirmed that EPA’s [Clean Air Act] regulations support independent repair, and that independent repair doesn’t facilitate emissions tampering. We urge Congress to ensure the Right to Repair.”  

Jeff Kippley’s full testimony is available here.  

2023 County Fair Schedule

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Ohioans can start planning visits to all of their favorite fairs across the state. The Ohio Department of Agriculture today released the official dates for the 2023 fair season, which includes Ohio’s 94 county and independent fairs and the Ohio State Fair.

The Paulding County Fair will kick off the 2023 fair season on June 12, and the season will wrap up on October 14 with the Fairfield County Fair. For a complete schedule, click here.

In addition to setting and approving the dates for the independent and county fairs, the department is responsible for helping to assure the safety of fair amusement rides, monitoring livestock shows to help assure honest competition and coordinating animal health efforts with local veterinarians.

Rural Broadband Gets Win in Ohio Budget

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State Senators Matt Huffman, R-Lima, and Matt Dolan, R-Chagrin Falls, tried to kill $90 million for rural broadband expansion, yet the Ohio legislature’s House – Senate conference committee on the the next two-year state budget restored not only that, but the original $250 million for rural broadband proposed by Gov. Mike DeWine.

Huffman and Dolan said that they were concerned there were no plans existing in the state government to direct rural broadband funding. From the Taft and Strickland administrations through the DeWine administration, there have been many rural broadband expansion maps developed and planning done among private sector and public sector organizatons with the goal of pushing broadband internet access into rural areas of Ohio.

Huffman and Dolan said when the Senate version of Ohio’s biennial budget passed through the upper chamber, that there were no current plans for expanding broadband internet access in rural Ohio.

This was not correct.

In the fall of 2019, the DeWine administration updated the state’s rural broadband plan – aligning it with USDA guidelines – in order to make Ohio eligible for federal funding to add to any state funding.

Ohio Farmers Union asked House Speaker Robert Cupp, R-Lima and Huffman to restore the House version of broadband funding – totaling $90 million over the next two years.

OFU President Joe Logan wrote to Cupp and Huffman saying in part:

Broadband, we believe, should be treated as rural electrification was in the past. Internet connectivity – at decent bandwidth – is an economic necessity for farmers and their families. COVID-19 laid bare the disparity between rural Ohioans and our suburban and urban neighbors when our kids and grandkids were expected to learn online for many months. Furthermore, internet connectivity opens up opportunities for learning and eventual business development. Rural Ohio should not be left out of this trend.

OFU appreciates the restoration of the funding for rural broadband and will be watching over the next two years to see how that money is spent.

State Legislators Listen – Rural Broadband Back in Ohio Two-Year Budget

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In a pleasant surprise for rural Ohio, the biennial budget was agreed to Monday with Gov. Mike DeWine’s full $250 million funding request for rural broadband expansion.

Just days ago, the Ohio Senate President Matt Huffman and Senate Finance Committee Chairman Matt Dolan announced rural broadband funding was being cut from the budget to pay for an income tax cut that would net most Ohio taxpayers around $57 per year. The Ohio Farmers Union and others contacted legislative leaders in the Ohio House and Senate and asked that at a minimum, the House’s funding line of $90 million for rural broadband be reinstated.

Instead, the five percent tax cut became a 3 percent tax cut – and who knows what else occurred behind those closed doors – and Gov. DeWine’s initial request for $250 million was put in the budget.

OFU made the point to legislators that there have been broadband expansion plans on the books for years — beginning in the Taft and Strickland administrations — and DeWine updated the state’s strategy in the fall of 2019. Additionally, the USDA is still in the midst of rewarding hundreds of millions in rural broadband grants and Ohio’s latest strategy is designed to meet the criteria for USDA funding.

Additionally, GOP legislators tried to insert in the budget a provision disallowing municipalities or other government entities from participating in cooperative efforts to move broadband internet connectivity further into the countryside. This provision was abandoned in the final bill. It’s not clear who requested the language or why, but it would obviously the telecommunications industry dominated by mega corps like AT&T, Verizon, Spectrum and others.

NFU, Others Unhappy with SCOTUS Ruling on RFS Waivers for Some Refiners

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A coalition of renewable fuel and farm groups expressed “extreme disappointment” in a U.S. Supreme Court decision overturning a 2020 appellate court ruling that struck down three improper small refinery exemptions granted by previous EPA administrators. However, because certain elements of the appellate court ruling were left unchallenged and were not reviewed by the Supreme Court, the groups remain optimistic that the Biden administration will discontinue the past administration’s flagrant abuse of the refinery exemption program.

The decision stems from a May 2018 challenge brought against EPA in the U.S. Court of Appeals for the Tenth Circuit by the Renewable Fuels Association, the National Corn Growers Association, National Farmers Union, and the American Coalition for Ethanol, working together as the Biofuels Coalition. The petitioners argued that the small refinery exemptions were granted in direct contradiction to the statutory text and purpose of the RFS.

In January 2020, the Tenth Circuit decided that EPA cannot “extend” exemptions to any small refineries whose earlier, temporary exemptions had lapsed. According to the Circuit Court ruling, “the statute limits exemptions to situations involving ‘extensions,’ with the goal of forcing the market to accept escalating amounts of renewable fuels over time.” While the Supreme Court failed to affirm this portion of the Tenth Circuit decision, the Biofuels Coalition pointed out that the appellate court also ruled that EPA’s exemption decisions must reconcile the agency’s consistent findings that all refineries recover the costs of compliance with the RFS, and that EPA may only use hardship caused by the RFS to justify granting exemptions. Despite today’s Supreme Court decision, EPA must still resolve those other aspects of the Tenth Circuit ruling.

[Read more…]

Growing Climate Solutions Act Will Help Farmers Tackle Climate Change

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The U.S. Senate today overwhelmingly passed the Growing Climate Solutions Act, which aims to help farmers and ranchers participate in carbon markets. To achieve that, the bipartisan legislation would establish a certification program for third-party technical service providers as well as create an advisory committee focused on ensuring that such a program meets the needs of farmers, forest landowners, and carbon market participants. A companion bill was introduced in the House in April, but has yet to be taken to a vote.

A proponent of aggressive climate action, National Farmers Union (NFU) endorsed the bill when it was first introduced last year. Upon its passage, NFU President Rob Larew expressed his encouragement and urged the House to take up the bill:

The urgent threat of climate change – and the need for immediate, action to mitigate and adapt – is irrefutable. Last year, our country saw both its most active hurricane season and its most active wildfire season, and the years ahead are expected to be even more catastrophic.

It will be no small task to curtail this existential threat – but by leveraging the full potential of every sector, including agriculture, we have the ability to protect our planet. The Growing Climate Solutions Act is a small but important piece of that puzzle. This legislation will facilitate farmers’ participation in carbon markets, granting them greater access to the financial incentives they need to invest in climate-smart agricultural practices. We commend the Senate for working across the aisle to pass this bill and encourage the House to follow suit.

Rob Larew, NFU President

Farmers Union Opposes Longer Mail Delivery Times

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A proposal to permanently slow down First-Class Mail delivery would be “catastrophic” for family farmers, National Farmers Union (NFU) indicated in comments submitted today to the U.S. Postal Service (USPS).

Because rural areas often lack both services like banks, pharmacies, polling places, and supply stores as well as access to broadband internet and private delivery services, residents disproportionately depend on USPS to receive medication, vote, communicate with friends and family, cash checks, and conduct business. This includes farmers, who “rely on quick and affordable delivery” to receive essential supplies like “seeds, fertilizer, pesticides, and. . .live animals like chicks and bees.” Given its importance, NFU has consistently urged legislators to “support the United States Postal Service and ensure prompt delivery and affordable rates in all parts of the country, including rural areas.”

Currently, First-Class mail is supposed to be delivered within a one- to three-day time frame; however, in an effort to cut costs, USPS has proposed extending that range to five days, which could put “rural. . .businesses and livelihoods at risk.” The delay would be particularly detrimental for packages containing time-sensitive materials such as live animals, perishable foods, ballots, and prescription medications.

For that reason, NFU “is opposed to the proposed service standard changes.” Instead, the organization urged USPS to focus on “improving the delays of service in the past year, not making those delays permanent.”

NATIONAL FARMERS UNION

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Ohio Farmers Union
P.O. Box 363
1011 N. Defiance Street
Ottawa, Ohio 45875
Phone: (419) 523-5300
Toll Free: (800) 321-3671