RECONCILLIATION PACKAGE INCLUDES PROVISIONS FOR AGRICULTURE AND RURAL COMMUNITIES

President Biden’s framework for his Build Back Better (BBB) agenda was released yesterday. Following months of negotiations, the original $3.5 trillion price tag has been whittled down to $1.75 trillion. The following topline numbers have been shared with us by our consultants in Washington DC, The Russell Group. 

Conservation - $28 billion

•             $9 billion for the Environmental Quality Incentives Program (EQIP)

•             $7.5 billion for the Regional Conservation Partnership Program (RCPP)

•             $4.1 billion for the Conservation Stewardship Program (CSP)

•             $600 million for NRCS to quantify the greenhouse gas impact of farm practices, $200 million to provide technical assistance to farmers, $50 million for USDA’s climate hubs

•             $5.05 billion for cover crop payments

•             $1.7 billion for the Agricultural Conservation Easement Program (ACEP)

•             $100 million for admin

Energy, Rural Development, Biofuels – $18.3 billion

•             $10 billion for Rural Electrics’ clean energy transition

•             $3 billion for USDA Sec. 317 Loan Program

•             $2 billion for the Rural Energy for America Program (REAP)

•             $1 billion for the Rural Partnership Program (RPP)

•             $1 billion for Biofuels Infrastructure Partnership (BIP)

•             $1 billion for rural water and lead removal

•             $200 million for Rural Energy Savings Program (RESP)

•             $100 million for rural water infrastructure for colonias, insular areas, tribal lands

Forestry provisions are funded at $27 billion, research and extension at $2 billion, debt relief at $10 billion ($6 billion of which is offset by American Rescue Plan funds), $1.3 billion in assistance and support for underserved farmers, and $200 million in additional support for food workers.

To offset the spending bill, the following actions have been proposed:

•             15% Corporate Minimum Tax on Large Corporations

•             1% Surcharge on Corporate Stock Buybacks

•             Global Minimum Tax: Consistent with OECD and with appropriate effective date for 15%, Country-by-Country

•             Penalty Rate for Foreign Corporations Based in Non-Compliant Countries (i.e. Base Erosion and Anti-Abuse Tax)

•             New Surtax on Multi-Millionaires and Billionaires

•             Close Medicare Self-Employment Tax Loophole by Strengthening the Net Investment Income Tax for Those Making Over $400,000

•             Continue Limitation on Excess Business Losses

•             Invest in IRS Enforcement

•             Repeal the Trump Administration rebate rule