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Trump signs $1.3 trillion budget, through Sept. 30


WASHINGTON, D.C. — Hundreds of millions of dollars for rural broadband projects, infrastructure and agricultural programs for nearly every community are included in a $1.3 trillion omnibus spending bill signed by President Donald Trump on Friday.

After first threatening a veto, he reversed hours later and signed off on the funding programs Congress wanted that had previously been targeted by the White House for cutbacks.

Included in the 2,232-page bill that funds the government through Sept. 30 is a fix to the “grain glitch” loophole discovered days after Congress approved the tax reform bill three months ago. This had hit thousands of farmer-owned co-ops mostly located throughout the Midwest.

Congressional leaders also squeezed into the legislation exemptions on farm emission reporting requirements long sought by the National Pork Producers Council, National Cattlemen’s Beef Assoc. and United Egg and Poultry Producers.

Four hours before signing, Trump threatened to veto the omnibus because it didn’t include his $25 billion request to build the controversial border wall with Mexico and fund other Immigration initiatives. The President signed the measure after being urged by his advisors, claiming not to do so would have jeopardized national security, he said.

The budget did include $1.57 billion for construction of physical barriers, like fencing, along 33 miles of the border and other security measures.

“I looked very seriously at the veto,” Trump told reporters. “I was thinking about doing the veto. But because of the incredible gains that we’ve been able to make for the military, that overrode any of our thinking ... As a matter of national security, I’ve signed the omnibus budget bill.”

The House passed the bill 256-167 on Thursday and the Senate voted 65-32 at 1 a.m. Friday, sending the bill to the White House by mid-morning. House Resolution 1625 provides $700 billion for the military and $591 billion for domestic agencies. Left out of the bill was any measure to protect the 800,000 “Dreamers,” people in the Deferred Action for Childhood Arrivals (DACA) program Trump ended last year.

Lawmakers have worked for months to reverse the so called “grain glitch” that helped farm co-ops but hurt their corporate competitors, an unintended consequence of Section 199A of the Tax Cuts and Jobs Act of 2017.

The fix had been urged by the National Council of Farm Cooperatives and the National Grain and Feed Assoc., needed to equalize tax treatment of commodity sales to co-ops and non-co-ops, while also providing a flow-through tax deduction from co-ops to their members.

“Fixing Section 199A was a fundamental issue for fairness,” said USDA Secretary Sonny Purdue. “We should not be picking winners and losers through the federal tax code by favoring one side over another.”

Under the $591 billion approved for domestic programs, $600 million was appropriated to fund a new pilot grant and loan combination program to provide broadband service to underserved rural and tribal areas. The funding leveraged nearly $1 billion for new rural broadband projects.

Perdue said, “It is unacceptable that millions of people living in rural America currently lack access to reliable broadband,” adding the monies will be a “massive investment.”

Benefits to USDA

In addition, the bill allocates $13.5 billion for rural communities’ infrastructure programs throughout the country. The Forest Service will receive $449 million to repair roads, bridges and dams, $335 million was earmarked for Forest Service State and Private Forestry Programs and $28 million dedicated for urban forestry efforts.

Also included for the USDA in the bill:

•A 30-percent increase in the agency’s Sustainable Agriculture Research and Education program or $35 million, the highest level in the 30-year history of the program

•$400 million for the Agriculture and Food Research Initiative, $25 million more than last year

•$500 million more for rural communities to develop safe drinking and waste water systems

•$774 million for conservation technical assistance to help farmers implement practices to improve soil health and water quality

•$3 billion for the Farm Service Agency, to meet farmer ownership and operating loan demands

•A $10 million increase to $874 million for the Conservation Operations and Technical Assistance programs

•$15 million increase to the Value-Added Producer Grant Program over its 2017 funding

•A $2 million increase, or 40 percent hike, to the $7 million Food Safety Outreach program

•$3 million to the Outreach and Assistance for Socially Disadvantage and Veteran Farmers and Ranchers program, in addition to the $10 million in farm bill funding

•$300 million in full funding for the Great Lakes Restoration Initiative that has a significant impact on Ohio and agriculture in the state

•Like all federal workers, agency employees got a 1.9 percent pay raise

Overall, the USDA’s budget saw an increase of $139 million to the agency’s $3.03 billion for research programs.

“The need for more agricultural research has never been more clear,” said Thomas Grumbly, president of the Supporters of Agricultural Research (SoAR) Foundation. “We’re pleased with Congress for pushing the agreement through. Only through a healthy investment in science can we develop more resilient food systems that protects the well-being of farmers and consumers.”

Other provisions included passing the bipartisan Fair Agricultural Reporting Method (FARM) Act that co-sponsor Sen. Joe Donnelly (D-Ind.) said “would have prevented farmers from being required to file needless, burdensome reports to the EPA.”

Farmers are now permanently exempt from reporting air emissions under the rules for the Comprehensive Environmental Response Compensation and Liability Act (CERCLA). For some 200,000 farms and ranches around the country, CERCLA will relieve livestock producers from reporting the complicated emissions requirements.

“Exempting farmers from reporting livestock emissions under CERCLA requirements is a big win for our members,” said Mitt Walker of the Alabama Farmers Federation.

Another adopted measure prohibits enforcing the electronic logging device (ELD) requirements for livestock haulers, but only through the end of September. The delay will give government regulators more time to study the 2017 logging requirements and then issue new rules.

Lawmakers restored billions of dollars to the USDA’s original $22.6 billion budget and more, overriding Trump’s proposed 21 percent cuts to $17.9 billion.

At the State Department, where the White House proposed cuts in food aid programs, the omnibus bill allocated a $130 million boost to $2.1 billion for international food aid to promote U.S. agricultural exports; $1.7 billion for Food for Peace; and $207 million for the McGovern-Dole International Food for Education and Child Nutrition program.

The American Soybean Assoc. (ASA) applauded the omnibus. “We’re glad to see issues important to soy growers like rural broadband, waterways, infrastructure and agriculture research included in Omnibus,” said ASA President and Iowa soybean farmer John Heisdorffer.

3/28/2018