Washington Update

Chuck Conner November 2017

NATIONAL COUNCIL OF FARMER COOPERATIVES NATIONAL COUNCIL OF FARMER COOPERATIVES NATIONAL COUNCIL OF FARMER COOPERATIVES NATIONAL COUNCIL OF FARMER COOPERATIVES Followers of Trump’s social media accounts In millions, as of June 17, 2017

■ Twitter @POTUS ■ Twitter @realDonaldTrump ■ Facebook ■ YouTube ■ Instagram

7 4.3 18.8

• President Trump has made it clear that he sees 22.4 Twitter as a way of circumventing the “fake media” when he feels his opinion isn’t getting 32.4 across • While many of the followers of his various accounts overlap, CNN estimates his total social media audience is approximately 60 million individuals

NATIONAL COUNCIL OF FARMER COOPERATIVES What’sThe President the most importanthas also been factor nonin- writingtraditional the new in selecting farm bill? his high-level Administration officials

NATIONAL COUNCIL OF FARMER COOPERATIVES Trump’s cabinet has less government experience than previous administrations

Comparison of recent presidents’ first cabinets As of Dec. 15th, 2016, subject to change pending confirmation

President Male White Government experience Former generals Billionaires

83% 74% 96% 4% 0%

George W. Bush

65% 52% 87% 4% 0%

Barack Obama

76% 82% 41% 12% 12%

Donald Trump*

Source: Brendan Coffey, Brandon Kochkodin and Yvette Romero, “Trump’s $6 billion cabinet: mostly men, mostly white, and not much government experience,” Bloomberg, December 15,2016. NATIONAL COUNCIL OF FARMER COOPERATIVES President Trump’s Cabinet has significant business experience

Percentage of total cabinet members without public-sector experience

■ Republicans ■ Democrats 40% 38%

35% 33% 31% 30% 30%

25%

20% 20% 20% 20% 20% 20% 18% 17% 17% 14% 15% 13% 13% 13% 11% 11% 10% 10% 10% 7% 7%

5%

0% 0% 0% 0% 0% 0% 0%

Source: Drew Desilver, “Trump’s Cabinet will be one of the most business-heavy in U.S. history,” Pew Research, January 19, 2017. NATIONAL COUNCIL OF FARMER COOPERATIVES 7 In Congress, Republicans do control both chambers. However, GOP leaders in each face unique challenges to moving their agenda forward.

NATIONAL COUNCIL OF FARMER COOPERATIVES Far left and far right hold considerable sway over their respective parties in the House

House makeup by caucus membership House Republican Conference 239 Freedom Caucus Mainstream Republicans Tuesday Group (Mod. Rep.) Freedom Caucus 30* Progressive Caucus Mainstream Democrats Blue Dog Coalition (Cons. Dem.) Tuesday Group 50* Vacancies House Democratic Caucus 193 Blue Dog Coalition 17 Progressive Caucus 70 Vacancies 3

Whip stats • Republicans hold a 46-seat lead 50 17 • A majority requires 217 votes (if 159 106 all members cast a ballot) • If Republicans lose all Freedom Caucus votes, they require 7 30 70 centrist Democratic votes to form a majority

*Estimated caucus size; rosters have not been finalized and published for the 115th Congress. The House Freedom Caucus does not publish its member list. Sources: National Journal Research, 2017. NATIONAL COUNCIL OF FARMER COOPERATIVES In the Senate, GOP leaders have a narrow majority and are well short of the 60 votes needed to invoke cloture

■ Democrats ■ Republicans ■ Independents

Control of the 115th Senate (2016-2018)

46-2-52

Republican Senate Majority

10 Implications for Agriculture and Farmer Co-ops

In a time of disruption and polarization, if progress on a range of issues is going to be made, we need to reinforce relationships with key allies and spur grassroots engagement to enlarge our coalition.

NATIONAL COUNCIL OF FARMER COOPERATIVES Ag’s Team

NATIONAL COUNCIL OF FARMER COOPERATIVES Top Issues for NCFC in 2017/2018

• Tax reform • Preparations for the 2018 Farm Bill • Immigration reform • Trade policy • GMO disclosure implementation • Pension

NATIONAL COUNCIL OF FARMER COOPERATIVES Tax Reform

NATIONAL COUNCIL OF FARMER COOPERATIVES Current Status

• House Ways & Means expected to release bill language later today; markup slated for next week.

• Senate bill could be released as early as late next week.

• As with any major overhaul of the tax code, the bills stand to impact different sectors and different states in dramatically different ways.

NATIONAL COUNCIL OF FARMER COOPERATIVES Concerns for Farmer Co-ops

• Section 199 deduction.

• Section 199 deduction.

• Section 199 deduction.

NATIONAL COUNCIL OF FARMER COOPERATIVES Key NCFC Messages on Section 199

• Tax reform should recognize the unique structure of farmer cooperatives and their unique relationship with • Tax reform should not raises taxes on farmers across the country— which repeal of Section 199 would do. • Farmers have been told that tax reform will give them more money in their pockets to invest in rural America. A tax bill that does the opposite is unacceptable.

NATIONAL COUNCIL OF FARMER COOPERATIVES Some State Impacts of Section 199

State Total DPAD Value Illinois $41,241,056 Iowa $67,121,336 Kansas $26,416,837 Minnesota $131,145,613 Nebraska $60,290,156 North Dakota $72,459,816 South Dakota $79,904,534 Wisconsin $65,274,664

NATIONAL COUNCIL OF FARMER COOPERATIVES What YOU Can Do

• Call your members of Congress—both the House and Senate—to deliver this simple message:

• “Ending Section 199 for agriculture will raise taxes for farmers and ranchers in our state. This provision has worked as intended and has helped boost the rural economy. We need tax reform that puts more money into rural communities, not less.”

• US Capitol Switchboard: 202-224-3121 NATIONAL COUNCIL OF FARMER COOPERATIVES Some Good News – On The Pension Front

• New bill would ease funding requirements for rural cooperative “multiple-employer” pension plans.

• H.R. 3596, Rightsizing Pension Premiums Act of 2017, led by Representatives Mike Kelly (R-PA) and Ron Kind (D-WI) will adjust PBGC premiums to better reflect the low risk of these plans.

• More than 400 farmer cooperatives across the country today participate, as well as for other small employers that sponsor their own defined-benefit pension plans. NATIONAL COUNCIL OF FARMER COOPERATIVES Immigration Reform

NATIONAL COUNCIL OF FARMER COOPERATIVES Current Status – Addressing Agriculture’s Issues

• House Judiciary Committee last week marked up and approved a bill providing a guest worker program for agriculture—a major accomplishment!

• While the bill does have many provisions of concern to producers, getting a bill out of committee is an important step in this process.

• Senate will wait for House to move first.

• Despite rhetoric on enforcement, administration sympathetic to ag’s needs.

• Sec. Perdue publicly stated resolving our workforce issues is a top NATIONAL COUNCIL OF FARMER COOPERATIVES priority for him. Key Messages to Congress

• Farmers, ranchers and growers across the country and across the country are facing a critical shortage of the skilled workers needed to harvest their crops or care for their animals.

• The Agricultural Workforce Coalition continues to push for a legislative solution to this problem that addresses both the current and future labor needs of agriculture.

• We oppose making the E-verify program mandatory for agricultural employers unless it is coupled with a solution that addresses agriculture’s labor needs.

NATIONAL COUNCIL OF FARMER COOPERATIVES 84.6% Farm Bill

NATIONAL COUNCIL OF FARMER COOPERATIVES What’s the most important factor in writing the next farm bill?

The amount of money the ag committees will have to work with, and what programs that money is currently in.

NATIONAL COUNCIL OF FARMER COOPERATIVES Several Current Commodity Programs Need Fixes (some minor, some significant) to Ensure a Broad Safety Net

• Dairy

• Cotton

• ARC County

NATIONAL COUNCIL OF FARMER COOPERATIVES The Farm Bill Coalition • Fewer than 50 House districts are majority ag.

• An urban-rural coalition—of agriculture, nutrition advocates and conservation groups—has been instrumental in passing the farm bill.

• Do not see a way to passage without a coalition this time.

NATIONAL COUNCIL OF FARMER COOPERATIVES NCFC Priorities

• Crop Insurance

• Trade

• Timing

• Fixing what needs to be fixed in Title 1

NATIONAL COUNCIL OF FARMER COOPERATIVES Trade

NATIONAL COUNCIL OF FARMER COOPERATIVES What do NAFTA (and possibly KORUS) renegotiations hold for ag?

“A Trump/Pence presidency will negotiate better trade deals for our manufacturing sector while continuing to protect and defend our vital agricultural export markets.”

NATIONAL COUNCIL OF FARMER COOPERATIVES NATIONAL COUNCIL OF FARMER COOPERATIVES Agriculture has an ally in Secretary Perdue

NATIONAL COUNCIL OF FARMER COOPERATIVES GMO Labeling

NATIONAL COUNCIL OF FARMER COOPERATIVES Any Questions? Thank You!

NATIONAL COUNCIL OF FARMER COOPERATIVES