WASHINGTON, DC – Congress averted the “fiscal cliff” with the Tuesday night passage of a massive tax measure, which included a nine-month extension of the 2008 Farm Bill. The compromise also sets a $5.12 million per-person estate tax exemption, adjusted for inflation, with a rate of 40 percent.
“The new estate tax rules give greater certainty to thousands of family-owned businesses in the produce industry,” said Robert Guenther, United Fresh senior vice president of public policy. “If Congress had not acted, much higher estate taxes would have gone into effect. The confidence this move allows many business owners is definitely a victory in the bill.”
Unfortunately, the extension of the Farm Bill excludes funding for several specialty crop programs and disregards reforms made by the Senate and the House Agriculture Committee in the 2012 Farm Bill. For example, lawmakers set discretionary funding for the Specialty Crop Research Initiative (SCRI) at $100 million, while mandatory funding stood at $50 million in the 2012 Farm Bill. With a discretionary designation, lawmakers must still approve appropriations for the research programs.
“We are pleased to see that compromise was reached to avoid the fiscal cliff, but disappointed that the 2012 Farm Bill, which was developed with broad, bi-partisan support in the House and Senate, wasn’t passed,” said Tom Stenzel, United Fresh president & CEO.
“We worked very hard with key members in the House and Senate to craft a Farm Bill that was fiscally responsible and gave producers resources, such as research, that they need to remain competitive and to ensure a safe, healthful supply of fruits and vegetables,” said Guenther. “We remain steadfastly committed to reviving these programs in the Farm Bill that will be written this year in the 113th Congress.”
The Farm Bill will need to be redrafted in the coming months and reconsidered by both chambers before the September 30, 2013 deadline.
Founded in 1904, the United Fresh Produce Association serves companies at the forefront of the global fresh and fresh-cut produce industry, including growers, shippers, fresh-cut processors, wholesalers, distributors, retailers, foodservice operators, industry suppliers and allied associations. From its headquarters in Washington, D.C. and Western Regional office in Salinas, Calif., United Fresh and its members work year-round to make a difference for the produce industry by driving policies that increase consumption of fresh produce, shaping critical legislative and regulatory action, providing scientific and technical leadership in food safety, quality assurance, nutrition and health, and developing educational programs and business opportunities to assist member companies in growing successful businesses. For more information, visit www.unitedfresh.org or call 202-303-3400.
Source: United Fresh Produce Association