USDA Weekly Crop Progress Report (MN) –
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- HRS 72% Planted; 14 days ahead of 2020; 13 days ahead of 5yr avg
- 19% Spring Wheat Emergence
- Top Soil Moisture: 8% very short, 27% short, 60% adequate, & 5% surplus
- Sub Soil Moisture: 8% very short, 27% short, 60% adequate, & 5% surplus
National Association of Wheat Growers (NAWG) Update
Josh Tonsager Joins House Agriculture Committee
- House Agriculture Committee Chairman David Scott announced several staffing additions and promotions for the Democratic staff of the House Agriculture Committee on Monday, April 26. Former NAWG Vice President of Policy and Communications Josh Tonsager will serve as the Subcommittee Staff Director for the General Farm Commodities and Risk Management Subcommittee. Read the press release here.
NAWG Responds to Joint Session Speech
- Wednesday night, President Biden delivered his remarks before a Joint Session of Congress. NAWG CEO Chandler Goule said “While the President addressed many issues of importance to the American people, we are eager to hear more about agricultural-related policies, specifically how we can improve farm program delivery and advance a trade agenda that ensures a level playing field for wheat growers. However, what our farmers saw in President Biden’s American Families Plan earlier today includes changes in the stepped-up basis, which raised a lot of questions in wheat country.” NAWG continues to engage with the White House and Capitol Hill about our tax policy positions.
The American Families Plan Tax Proposal
- The White House and U.S. Department of Agriculture (USDA) released statements stating that farms and family businesses would be exempt from tax changes; however, details and legislative text for the proposal have not been released. The USDA notes President Biden’s American Families Plan promises that capital gains taxes will not be collected at death for family farms and 98 percent of farm estates will not owe any tax at transfer. Read more here.
Cover Crop Flexibility Act Introduced in Congress
The bipartisan Cover Crop Flexibility Act was reintroduced Thursday, April 29 by Senator John Thune (R-SD) and Senator Debbie Stabenow (D-MI). This legislation would remove the prohibition on harvesting or grazing cover crops for hay or silage, allow USDA to include cover crop seed costs when it sets the factor that is used to calculate the prevented planting indemnity, and direct USDA to conduct a study to examine the extent that cover crops reduce risks of prevented planting and other crop insurance losses. Read the press release here.
US Wheat Associates, Weekly Price Report – Michael Anderson
- With persistent dry conditions and possible increased global demand for feed wheat, all futures prices continued to climb higher, for the fourth week in a row. CBOT soft red winter (SRW) futures rose 32 cents to close at $7.42/bu. KCBT hard red winter (HRW) futures were up 25 cents to end at $6.98/bu. MGE hard red spring (HRS) futures gained 45 cents to close at $7.63/bu. CBOT corn futures jumped 85 cents to end at $7.40/bu. CBOT soybean futures gained 32 cents to close at $15.71/bu
- Commercial Sales: This week’s U.S. wheat commercial sales of 223,600 metric tons (MT) were down 7% from last week’s 240,200 metric tons (MT) and below trade expectations of 400,000 MT to 625,000 MT. Year-to-date commercial sales for delivery in 2020/21 total 25.6 million metric tons (MMT) 1% lower than last year. USDA expects total 2020/21 U.S. wheat exports will reach 26.8 million metric tons (MMT) 2% higher than last year, if realized.
This week’s commercial sales for delivery in 2021/22 totaled 233,600 metric tons (MT).
View the most recent USW Commercial Sales report here.
U.S. Drought Monitor
Conditions in the western half of Texas and Oklahoma remained dry this week. Parts of southeast Kansas, Colorado the Dakotas, Wyoming and western Montana received some rain but most of the region remained excessively dry. Across the Dakota’s and parts of Montana, low soil moisture was reported and streams are low. The USDA rates Colorado, Montana and Wyoming as being more than 50% short or very short of topsoil moisture.
Industry Updates – MN Farm Bureau Federation IMPACT
Study Shows Repealing Stepped-Up Basis Would Damage the Economy
- A new report released Tuesday by EY finds that repealing the step-up in basis tax provision would damage the gross domestic product and significantly decrease job creation. The study was conducted for the Family Business Estate Tax Coalition, which includes almost 60 organizations representing family-owned businesses, including AFBF.
- The EY study found middle-class, family-owned businesses would be particularly hard hit by the repeal. Currently, when someone inherits assets, they aren’t taxed on the appreciation that happened before they inherited them. If family-owned farms, small businesses or manufacturers are forced to pay capital gains accrued by the prior owner, they would likely face large tax bills that put the future of their business at risk.
- Make sure you have reached out to your members of Congress to ask for their continuation of stepped-up basis which supports America’s farmers and ranchers. You can use the MFBF Action Alert Center to send a message directly to your elected officials on the issue using the button below.
The End of the Regular Session Approaches
- There are only a few weeks left before the mandated end to the regular Minnesota legislative session at midnight on May 17. Lawmakers are tasked with passing a two-year budget bill or face the potential of a partial government shutdown when the state’s current budget expires on June 30. The last time a partial shutdown took place was a decade ago in 2011.
Conference Committee Update
- Legislative leaders have begun to appoint conferees. The members, five from each chamber, work together to iron out the differences between the House and Senate versions of the various legislative packages. Typically, the members appointed to the Conference committees voted in favor of the legislative package during final passage on the floor. More information on conference committee work can be found here.
- The conferees appointed to work on the omnibus agriculture package, S.F. 598, will start their work on Monday. Stay tuned for additional updates on the work of the Conference committee.
- MFBF will continue to connect with legislators and staff to ensure MFBF members’ voices are heard. There are many resources and policy provisions on the table that would benefit Minnesota’s farmers and ranchers. Your Public Policy team is at the table and working on your behalf.