Government Affairs Meeting November 8-10, 2017 Fairmont Washington, Dc - Georgetown
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NATIONAL COUNCIL OF FARMER COOPERATIVES GOVERNMENT AFFAIRS MEETING NOVEMBER 8-10, 2017 FAIRMONT WASHINGTON, DC - GEORGETOWN Government Affairs Committee Fairmont Washington, D.C. - Georgetown November 8-10, 2017 AGENDA November 8th All Day Arrival and Check-in 12:00 pm Ag Industry Fundraiser: Rep. Kurt Schrader (D-OR) NCFC Offices 50 F Street NW, Suite 900 Washington, DC 3:00 pm Tax Reform & Agriculture – Section 199 Briefing NCFC Offices 50 F Street NW, Suite 900 Washington, DC 5:00 pm Rep. Bill Shuster (R-PA) Make-Up Fundraiser* 1789 1226 36th Street NW (202) 965-1789 5:40 pm If not attending Shuster event, meet in lobby to coordinate transportation to dinner 6:00 pm Reception & Dinner 1789 1226 36th Street NW (202) 965-1789 *This is a make-up event for those who contributed, or planned to contribute, to the event originally schedule during the Washington Conference. Please include the original flyer (attached) with your check. RSVP to Kelsey Billings ([email protected]) if you plan to attend. November 9th 7:30 am Fundraiser: Rep. Jeff Denham (R-CA) 8:00 am A view from the Hill: Rep. Jeff Denham (R-CA) on Key issues before the House of Representatives Representing the Business Interests of Agriculture 8:30 am Committee Meeting • Chairman's Welcome & Meeting Overview • Self-Introductions • Approval of the Minutes 8:35 am Political Assessment – Where are we headed? Special Guest: Howard Fineman Global Editorial Director, Huffington Post Analyst for NBC News & MSNBC 9:30 am Engaging with the Administration & Congress • Nominations Process • Opportunities & Challenges for Agriculture 10:00 am Trade Outlook • NAFTA • KORUS • Overall Outlook for the next 2-3 Years Special Guest: Sharon Bomer Lauritsen Assistant U.S. Trade Representative for Agricultural Affairs and Commodity Policy Office of the U.S. Trade Representative 10:30 am Break 10:45 am USDA Priorities for Rural America Special Guest: Anne Hazlett Assistant to the Secretary for Rural Development U.S. Department of Agriculture 11:15 am Emerging Food & Product Labeling Issues • Implementing the New Biotech Labeling Law • Product Labeling & Countering State/Local Initiatives • Department of Defense Food Ingredient Prohibitions Panelist: Denzel McGuire Grocery Manufacturers Association Scott Herndon American Sugarbeet Growers Association Karyn Schmidt American Chemistry Council Autumn Veazey Price Land O’Lakes, Inc. 12:15 pm Lunch 1:00 pm Issues Impacting Your Bottom Line • Pension Relief – Issues for Co-ops • Health Care – What Next? • Tax Reform – Overview of Proposals & Outlook for Action Panelists: Chris Stephen National Rural Electric Cooperative Association Shea McCarthy Thorn Run Partners Joe Mikrut & Melissa Mueller Capitol Tax Partners 2:00 pm Strategy for Preserving Section 199 • Overview of Section 199 • Messaging • A Call to Action: Grassroots Involvement Special Guests: Paul Cummins IRI Consultants Jon McHenry North Star Opinion Research 3:00 pm Break 3:15 pm Immigration Reform Outlook • DACA Impact on Debate • Ag Act – An Overview • Outlook for Floor Action Special Guest: Lynn Jacquez CJ Lake LLC 4:00 pm EPA – Working Together on Issues Impacting Agriculture Special Guest: Jeff Sands Senior Advisor to the Administrator for Agriculture Policy U.S. Environmental Protection Agency 4:30 pm Farm Bill: Status Update • Timeline for Committee Action & Beyond • Review of NCFC Framework 5:00 pm Adjourn 5:30 pm Transportation to Dinner Departs Hotel 6:00 pm Reception & Dinner The Russia House Restaurant & Lounge 1800 Connecticut Avenue NW 202-234-9433 November 10th 8:00 am Breakfast 8:30 am NCFC CO-OP/PAC Report • 2017 Cycle Overview • Improving our Reach • Potential Case Study & Annual Meeting Session 9:00 am NCFC Sustainability Initiative – Progress Report 9:15 am Strategic Assessment of Committee Structure & Focus • Subcommittee Organization & Participation • Addressing Your Priority Issues • Future Meeting Topics 10:00 am BREAK 10:15 am Review & Update NCFC Priorities & Policy Resolutions 11:45 am Other Business & Future Meetings 12:00 pm Adjourn (Lunch Provided) JUNE 2017 MEETING MINUTES NCFC Government Affairs Committee Meeting Washington, D.C. June 26, 2017 Minutes CALL TO ORDER Committee Chairman, Chuck Spencer, called the meeting to order, giving an overview of the meeting and supporting materials. He thanked attendees for their participation in the NCFC Farm Bill Workshop held earlier in the day. APPROVAL OF THE MINUTES A motion to approve the February 2017 meeting minutes was made by Chuck Adami and seconded by Dawn Caldwell. BUSINESS MEETING The Committee proceeded with its business meeting to discuss several additional policy issues of importance to farmer cooperatives. • NAFTA Renegotiation: Opportunities and Challenges for Agriculture Darci Vetter, former Chief Agricultural Negotiator for the Office of the U.S. Trade Representative, discussed agriculture trade and the changes recently seen in trade policy with the new administration, including talk specific to the North American Free Trade Agreement (NAFTA). She noted that the Trump administration had submitted to Congress a letter of intent to renegotiate the trade agreement. That action has triggered a timeline for the administration to lay out it objectives to Congress, likely as early as July 17, 2017. Ms. Vetter also discussed the prospects that U.S. agriculture has in the Asia-Pacific markets given incomes are rising in Asia and more people are joining the middle class. Ms. Vetter commented on the U.S. withdrawal from the Trans-Pacific Partnership, which is now made up of only 11 countries without the U.S. The TPP could provide the basis for NAFTA renegotiation, however, the already agreed to provisions in TPP could be rolled into NAFTA. She noted that Canadian dairy policy will be a challenge for the negotiators to come to agreement. Ms. Vetter then concluded with the future of trade and where U.S. agriculture’s focus should be – and that Japan and Vietnam should be the priorities for future trade agreements, as well as Malaysia. • NCFC Roundtable Discussion on NAFTA Kevin Price from American Crystal Sugar gave a report on the renegotiation of the sugar suspension agreements with Mexico. Mexico has violated US trade laws with their dumping practices; this has been and continues to be a long-standing trade dispute. Mr. Price said that the Trump administration has taken up the issue of revising the suspension agreements, while Mexico has stalled at every stage of the negotiations Mr. Price noted that the sugar industry wants the U.S. agricultural coalition to remain together in regards to NAFTA renegotiation. Jackie Klippenstein from Dairy Farmers of America spoke in the roundtable discussion, reiterating the importance of NAFTA to the agricultural industry and specifically to the dairy sector. Ms. Klippenstein went into more detail, saying that about 15 percent of dairy is now exported, which has a major and positive affect on dairy farmers in America. Nearly 30 percent of exports now go to Canada and Mexico, so NAFTA is of vital importance. Mrs. Klippenstein discussed the biggest challenges for the dairy industry right now, including trade with Canada. Canada effectively stopped the U.S.’ ability to export milk that goes into cheese processing and production to their market. This has caused market revenue loss for about 75 American farms. Mrs. Klippenstein also discussed how Canada is allowing their farmers to increase production under their system because of a current butter shortage, which is currently in high demand. Another challenge that Ms. Klippenstein highlighted is the potential for Canada to dump milk powder on the international market. • Policy Lightning Round Marlis Carson began the lightning round by providing a brief overview of tax reform discussions. She noted that both the Administration and the Speaker of the House have said tax reform will be completed this year; however, Congress needs to deal with the Affordable Care Act before they can achieve tax reform. Ms. Carson noted that there is not yet any legislative language, but the following changes are anticipated: • lower corporate and individual rates; • elimination of the Alternative Minimum Tax and the estate tax; • a territorial tax system – meaning income is taxed only where it’s earned; • a one-time low rate to repatriate funds; • changes paid for with elimination of loopholes (perhaps Section 199) and base broadening. With regard to farmer cooperative issues, Ms. Carson said currently Subchapter T is not under consideration for changes or elimination. Elimination of the interest expense deduction and Section 199 are possibilities. NCFC opposes elimination of the deduction for net interest expense and is advocating for a carve-out for farmer cooperatives regarding the Section 199 deduction. She said as NCFC members meet with Congressional delegations it would be helpful to mention the importance of Section 199 and of Subchapter T. Ms. Carson said she met recently with Ways and Means staff who deal with pass-through entities. The staffers mentioned that they do not want to harm agriculture and asked for more information on how Subchapter T works, how Section 199 works, and the impact of the loss of the interest deduction. LTA Committee members are working on a response. 2 With regard to ongoing antitrust cases involving farmer cooperatives, Ms. Carson said the mushroom and egg cases are still ongoing. Both cooperatives have said they are not willing to settle and will be going to trial on issues that include the applicability of the Capper-Volstead Act. Next, Chuck Conner gave an overview on product labeling. He discussed a few different groups working on the product labeling effort, including the American Chemistry Council and the Product Labeling Coalition. He then went on to discussion Prop 65, which requires California to not contaminate water with chemicals known to be cancerous or cause other harm. Mr. Conner then discussed the reorganization of the USDA. There are currently seven under-secretaries right now at the USDA, and reorganization will be required to make room for a trade secretary.