Policy Updates and Issue News January 2025

Immigration

The unchecked flow of illegal immigrants into the United States has been a long-term priority for President Trump. It struck a note with the American public as well and certainly played a role in Trump’s reelection efforts. Deportation looms large and appears to have the general support of the public. But who will be deported and when will this occur? Which immigrants will be deemed necessary to provide the workforce to keep the American economy humming and how will this necessity be handled? The tech industry depends upon a highly skilled immigrant workforce to keep it a world leader. Many farmers, ranchers, large corporations and small businesses rely on immigrants, many who are in the country illegally. Can a legal temporary work force become part of the package?

Tariffs and Trade

Tariffs are a tool used to level the playing field on trade between countries. When one country levies tariffs against another country, it may spark retaliation by placing tariffs on products from the first country thereby reducing imports from that country. President Trump has promised to levy tariffs on Mexico, Canada and China, major importers of American agriculture products. If these countries retaliate with high tariffs on the U.S., American agriculture export markets will be adversely affected.

Taxes

Major tax breaks enacted in the 2017 Tax Cuts and Jobs Act will expire this year. These tax cuts have been credited with a resulting boost to the economy in the form of added jobs, new research and development, business expansion opportunities, and more. Expiring tax provisions include pass-through deductions for farmers, ranchers and small business owners, lower individual income tax rates, expanded Tax brackets, estate tax exemption threshold, full expensing of certain capital expenses, and amortizing research and development expenses. Uncertainty about if and when these tax provisions might be addressed by Congress could affect both individual and business financial decisions.

Farm Bill

The 2018 Farm Bill expired last year and was extended until September 30, 2025. Passing a new farm bill is a priority for Congress in 2025. But that will not be easy. As commodity prices decline, more money will be needed in the bill to bolster the price support safety net required to protect our nation’s food supply. The Inflation Reduction Act (IRA) added several billion more funding to agriculture conservation programs. Several congressmen support reducing conservation funding in the farm bill to pay for other farm bill titles. There is currently $14 billion in unspent IRA conservation funding that could be targeted by the budget reconciliation process.   Over 80% of farm bill expenditures go to support human nutrition programs such as the Supplemental Nutrition Assistance Program (SNAP.  Many in Congress say increasing efficiencies and reducing waste in these feeding programs are needed more than additional dollars. These two issues alone will polarize Congress and slow the process.

Climate regulations

Several industries are currently in court challenging new climate-related regulations. One is the EPA rule that requires existing coal plants and new natural gas plants to reduce 90% of their carbon dioxide emissions using carbon capture and sequestration.  The National Rural Electric Cooperatives Association claims the rule exceeds the agency’s statutory authority. Twenty-three state attorneys general have filed a similar lawsuit. Another is the Interior Department rule that allows new conservation leases to compete with traditional multiple-use leases like grazing and mining on public lands which results in idling those lands for economic use.

Avian influenza

The bird flu outbreak has persisted for two years, moving through wild birds, into poultry flocks and now into dairy herds. Sixty-three human cases have been documented to date though most experienced mild symptoms and the cases were confirmed to be in close proximity to birds, poultry or dairy cattle. USDA has issued an order requiring testing of unpasteurized milk in 13 states. This program is expected to expand to all states in the lower 48. USDA has approved trials for seven possible bovine vaccines.