Legislative Update: Farm Bill Progress, Tax Priorities, and Wood Grants

House Agriculture Committee Advances Farm Bill

Early last Friday morning, roughly thirteen hours after the markup began on Thursday, the House Agriculture Committee moved its version of the Farm Bill reauthorizing legislation out of committee on a 33-21 vote, with 4 Democrats joining all Republicans on the panel voting in support. Democrat yea votes were somewhat surprising as Democrat leadership on and off the committee has been highly critical of the proposal.

The bill includes provisions of the Jobs in the Woods Act in the Rural Development Title. Specifically, the committee added the forestry and forest/wood products sectors to the Rural Innovation Stronger Economy (RISE) program—an existing program at USDA that focuses on workforce development through issuance of grant funding. The House bill additionally reauthorizes the Community Wood Grant Program for another five years as well as the Wood Innovation Grant program. These two initiatives have funneled millions of dollars in grants across the country on construction projects utilizing mass timber, as well as energy efficiency and equipment upgrades at sawmills. The bill also includes provisions authorizing broad Categorical Exclusions (CEs) to expedite forest management projects on federal forestlands.

The bill is 954 pages, and ABMA staff continues to wade through its many provisions. As we have noted, the overall bill has come under withering criticism from Democrats over its treatment of SNAP—the Supplemental Nutrition Assistance Program that provides food benefits to low-income families to supplement their grocery budgets. SNAP was built into the Farm Bill years ago as a way to attract urban lawmakers’ interest in the legislation that was all about farms and farming. Democrats on the committee—including the panel’s Ranking Member, Rep. David Scott (D-GA-13)—and in the full House have vocally opposed the bill that was rolled out last week on the grounds that it significantly reduces SNAP funding. It is unclear when the legislation will be considered on the House floor. We will keep you apprised of developments.

Chairman Thompson has signaled that he would like to have the House take up the Farm Bill in September—the same month when the current Farm Bill expires. Senate Democrats and House Republicans remain far apart on several provisions of the House bill which may presage a scenario where another extension of current law is needed.

Lawmakers have left town for the Memorial Day recess and will return to Washington in the first week of June.

Senate Finance Committee Forms Tax Working Groups

Last week, Senate Finance Committee Ranking Member Mike Crapo (R-ID) announced formation of several tax working groups that will be examining tax provision in the Internal Revenue Code that are set to expire at the end of next year. The working groups will focus their work on the following areas:

Individual Taxes
Business Taxes
International Taxes
Retirement
Community Development
Energy Taxes

This development follows closely on the heels of a similar tax working group announcement earlier this month by House Ways & Means Committee Chairman Jason Smith (R-MO). ABMA will be busy next year advocating on the tax front as 2025’s “tax cliff” looms. Numerous provisions enacted by the Tax Cuts and Jobs Act of 2017 expire at the end of 2025, including the Sec. 199A deduction for S-Corporations and passthroughs. We will also likely be in a position of advocating for retroactive extension of the 100 percent bonus deprecation benefit and the R&D tax credit, which are phasing out and have expired, respectively. Legislation extending these benefits remains stalled in the Senate.

USDA Drops $74 Million on Grants for Wood Products

Drawing from the Inflation Reduction Act and infrastructure law, the U.S. Department of Agriculture announced it would make nearly $74 million available to promote wood products, including through the Wood Innovations Grant and Community Wood Grant programs. The grants will support over 170 projects across the public, private and non-profit sectors. Highlights include funding for installation of “cutting edge equipment in sawmills,” mass timber projects, and “converting heating systems to sustainable biomass boilers.”