COOL Repeal, Section 179 Deductions Part of Big Budget Bill

U.S._Capitol_and_flag
U.S._Capitol_and_flag

COOL Repeal, Section 179 Deductions Part of Budget Deal

News is leaking out that Congress will repeal Country of Origin Labeling (COOL) for muscle cuts of meats and make permanent Section 179 depreciation expensing deductions. The provisions are included in the omnibus spending bill that is being rushed through Congress to avoid a Christmas government shut down.

The bill is likely to pass Congress this week and signed by President Obama before the holidays. See farmer reaction here.

The COOL repeal is critical if the United States wants to avoid $1 billion in trade sanctions from Canada   and Mexico. For dairy farmers, avoiding such sanctions is crucial to maintaining exports to Mexico, where nearly 30% of all U.S. dairy exports are sent.

The Section 179 depreciation expensing deductions will be made permanent, allowing farmers to expense up to $500,000 annually in depreciation. A few years ago, the limit was reduced to just $25,000. It also includes a five-year extension of the 50% bonus depreciation provision.

Not included in the bill is federal preemption for labeling genetically modified foods (GMOs) or GMO ingredients. Earlier this year, the House of Representatives had passed a comprehensive GMO bill, but the Senate was unable to do so, says Dave Carlin, Senior VP  of legislative affairs and economic policy for the International Dairy Foods Association. “Absent a federal preemption, individual states can impose labeling regulations that will needlessly increase costs and confusion for businesses, farmers and consumers,” he says.

Senate Ag Committee leaders have reassured ag interests that a GMO labeling will again be brought up early next year.

 

 

 

Latest News

APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies
APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies

The livestock industry continues to grapple with the first confirmed cases of HPAI in cattle, while federal and state agencies continue to assure consumers there's no concern about the safety of the U.S. milk supply.

Success is All in the Details at Kansas Dairy Development
Success is All in the Details at Kansas Dairy Development

Kansas Dairy Development provides temporary housing for up to 80,000 head of cattle — from a few days old to springers nearly ready to calve. Their formula for success is all in the details.

Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps
Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps

U.S. employers report challenges in finding suitable job candidates with work-ready skills to fill open roles in ag. The AgCareers.com U.S. Skills Survey offers insights, data and trends to address skill development.

Built Out of Love: How Two Sisters Created a Super-Fast-Growing Yogurt Company
Built Out of Love: How Two Sisters Created a Super-Fast-Growing Yogurt Company

Travel to the rolling hills of Pennsylvania, and you’ll meet Hayley and Stephanie Painter who not only made the Forbes 30 under 30 list, but have also created one of the fastest growing yogurt company in the U.S.

"Boring" Technology Will Reshape Dairy Over the Next 10 Years
"Boring" Technology Will Reshape Dairy Over the Next 10 Years

Once a technology becomes a boring experience it means it has become proven, well-adopted, and easy to utilize. There are three "boring" technologies silently shaping the industry.

Influential Dairy Leaders Awarded World Dairy Expo Recognition Awards
Influential Dairy Leaders Awarded World Dairy Expo Recognition Awards

World Dairy Expo is delighted to announce the recipients of the 2024 Expo Recognition Awards. These individuals have made remarkable contributions to the dairy industry and their communities.