USDA Announces $160 million Available in Funding
The U.S. Department of Agriculture’s (USDA) National Institute of Food and Agriculture (NIFA) announced the availability of more than $160 million in funding for research, education, and extension projects that address challenges affecting U.S. agriculture production. NIFA funds these awards through Agriculture and Food Research Initiative (AFRI).
This year, NIFA released six separate requests for applications (RFA) in priority areas through the AFRI program. Five of these concern food security, water, childhood obesity prevention, food safety, and climate. The sixth RFA, for the AFRI Foundational Program, is open to applications in the following areas: 1) plant health and production and plant products; 2) animal health and production and animal products; 3) food safety, nutrition and health; 4) bioenergy, natural resources and environment; 5) agriculture systems and technology; and 6) agriculture economics and rural communities. The Foundational Program RFA has the most relevance to animal agriculture, including horses.
Additional information and a complete description of the Foundational RFA, program area requirements, Letter of Intent deadlines, program funds allocated, and the appropriate contact person for each program area can be found on the NIFA website: https://www.nifa.usda.gov/funding/rfas/afri.html
Please contact the AHC if you have any questions.
National Forest Trail Bill Introduced
On February 10, 2015, Congresswomen Cynthia Lummis (R-WY) and Tim Walz (D-MN) re-introduced the National Forest Service Trail Stewardship Act of 2015 (H.R.845). The bill would direct the Forest Service to take several actions to help address the current trail maintenance backlog that is adversely impacting all trail users on many national forests, including equestrians. The bill was first introduced during the last Congress. The American Horse Council, Backcountry Horsemen of America, and the Wilderness Society were significantly involved in the creation of this bill.
A June 2013, study by the Government Accountability Office (GAO) found that the Forest Service has deferred trail maintenance needs that exceed half-billion dollars, and only one-quarter of the agency’s 158,000 miles of trails meets agency standards for maintenance. This maintenance backlog is causing access and safety issues for equestrians and all trail users on national forests.
The National Forest Service Trail Stewardship Act would direct the Forest Service to develop a strategy to more effectively utilize volunteers and partners to assist in maintaining national forest trails. It will also provide outfitters and guides the ability to perform trail maintenance activities in lieu of permit fees. Additionally, the bill would address a liability issue that has discouraged some national forests from utilizing volunteers and partner organizations to help perform trail maintenance and would direct the Forest Service to identify and prioritize specific areas with the greatest need for trail maintenance in the national forest system.
In the current fiscal environment it is unlikely Congress will appropriate additional funds to directly address the trail maintenance backlog. This bill will help improve trail maintenance without the need for additional funding.
The bill is supported by the AHC and many other recreation organizations.
Legislation Introduced to Amend Federal Sports Betting Ban
Background
The Professional and Amateur Sports Protection Act (PASPA) was enacted in 1992 and prohibits any state from initiating new forms of sports betting. Nevada, Delaware and Oregon were exempt since they offered forms of such wagering then. New Jersey was given two years, until 1994, to institute sports betting before the opportunity closed for that state. Pari-mutuel racing was exempted from the prohibitions on sports betting when the law was passed and still is.
In the last few years, New Jersey has been at the forefront of initiating sports betting in the state. In 2011, New Jersey voters amended the state constitution to allow sports betting at casinos and racetracks. The state legislature then passed a law allowing sports betting; but the federal law still prohibited it. New Jersey has filed various lawsuits in federal courts arguing that the current federal ban is unconstitutional. The Department of Justice, the professional sports leagues, and the NCAA have filed pleadings with the courts arguing that the law is constitutional. To date all the courts have upheld the constitutionality of PASPA and not allowed New Jersey to initiate sports betting.
Bills Introduced
Two bills have been introduced in the new Congress to amend the federal ban on betting on professional and amateur sports. These bills were introduced in the last Congress, but no action was taken.
Congressmen Frank Pallone (D-NJ) and Frank LoBiondo (R-NJ) have each introduced legislation in the House of Representatives to provide a path for New Jersey, and possibly other states, to offer sports betting.
Mr. Pallone’s bill, the New Jersey Betting and Equal Treatment Act of 2015 (H.R. 457), would amend the federal law to exclude New Jersey from the federal prohibitions and allow that state to offer sports betting, limited to New Jersey, if approved by the state legislature.
Mr. LoBiondo’s bill, the Sports Gaming Opportunity Act of 2015 (H.R. 416), would open up a four-year window, from January 1, 2015 to January 1, 2019, during which any state could legalize betting on professional and amateur sports. If a state did not act, the window would close and that state could not offer such wagering.
Neither bill will affect the current activities of pari-mutuel horse racing.
Congressional Action
Both bills were referred to the House Judiciary Committee and await further action.
Congress Passes Tax Extender Bill for 2014
Today, the Senate followed the House of Representatives and passed the Tax Increase Prevention Act of 2014 (H.R. 5771). The President is expected to sign the bill shortly, possibly this week before the lame-duck session of the 113th Congress ends.
The bill would extend for 2014 several tax provisions favorable to horse owners, breeders, and equine businesses that expired or were reduced at the end of 2013, including three-year depreciation for all race horses. The bill extends these provisions retroactively for eligible equine assets, including horses, purchased and/or placed in service at any time in 2014. The extensions are effective only through December 31, 2014. On January 1, 2015 they again expire or revert to prior levels.
179 Expense Deduction. For the last few years, the so-called Section 179 business expense deduction was set at $500,000. This meant that anyone in the horse business could immediately depreciate up to $500,000 of the cost of any investment in business assets, including horses. The deduction was reduced dollar-for-dollar once investment in all one’s business activities hit $2 million.
This provision was not extended by Congress and had reverted to $25,000 for 2014.
The legislation extends the expense deduction at $500,000, with a phase-out at $2 million, for assets, including horses, purchased and placed in service during 2014.
Bonus Depreciation. Anyone in the horse business could depreciate up to 50% of the cost of new property purchased and placed in service in 2013, including horses and other equipment. This was known as “bonus depreciation.” It was restricted to new assets, which meant that the first use of the horse or other property had to begin with the taxpayer.
This provision was not extended by Congress and had expired for 2014.
The legislation would extend bonus depreciation at 50% for the cost of new assets purchased and placed in service during 2014.
Depreciation of Race Horses. From 2009 through 2013 all race horses were depreciated over three years, regardless of their age when they were placed in service. This provision was passed in 2008 through the efforts of Minority Leader Mitch McConnell (R-KY).
This change, which eliminated the 7-year depreciation period for race horses, expired at the end of 2013.
The legislation would extend the three-year recovery period for all race horses placed in service during 2014, regardless of age.
Conservation Easements. Favorable rules for contributions by farmers and ranchers of capital gain real property for conservation easements, allowing a deduction of up to 100% of the donor’s contribution base, expired for 2013.
The legislation would extend through 2014 the enhanced deduction involving conservation easements.
The legislation now goes to the President, who is expected to sign it into law.
Congress Approves Bill to Fund Government
On December 13, 2014, an omnibus appropriations bill, which will fund the government through September 30, 2015, was passed by Congress. This bill is a package that includes parts of the FY 2015 appropriations bills, except Homeland Security, and will fund most government agencies and programs until the end of the fiscal year, September 30, 2015.
The omnibus bill contains several provisions that impact the horse industry, including the U.S. Department Agriculture (USDA) FY 2015 appropriations bill.
Normally, Congress debates and approves separate appropriation bills for each federal agency. However, Congress has been unable to pass any individual FY 2015 appropriations bills and has been relying on a Continuing Resolution (CR) that is an extension of previous bills to keep the government operating. This omnibus bill will keep the government open.
FY 2015 USDA Appropriations
Animal and Plant Health Inspection Service and Equine Health
The bill appropriates $871.3 million for the Animal and Plant Health Inspection Service (APHIS). APHIS is the USDA agency responsible for protecting the U.S. equine industry and responding to contagious equine disease outbreaks. Funding for Equine, Cervid, and Small Rumiant health is set at $19.5 million, the same as FY 2014.
Horse Slaughter
The bill includes language that prohibits USDA from using any funds to provide inspectors at meat processing facilities that slaughter horses, continuing a block that begin in 2005, except for a brief period in 2012 and 2013.
No horse slaughter facilities are operating in the U.S. and this bill would effectively prevent any such facility from opening until September 30, 2015.
The language was included in the omnibus bill because both the Senate and House Appropriations Committees adopted amendments that prohibited funding for inspectors at horse slaughter facilities when they debated and approved their respective versions of the FY 2015 USDA appropriations bill. The Senate amendment was offered by Senators Mary Landrieu (D-LA) and Lindsey Graham (R-SC); the House amendment was offered by Congressman Jim Moran (D-VA).
Horse Protection Act
The bill provides $697,000 for enforcement of the Horse Protection Act, the same as FY 2014.
Wild Horses and Burros
The omnibus bill also includes a provision that would prohibit the Bureau of Land Management from euthanizing healthy wild horses in its care or from selling wild horses or burros that results in their being processed into commercial products.
EPA and Corps Interpretive Rule
Earlier this year the Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers (Corps) issued an “interpretive rule” (IR) regarding the Clean Water Act (CWA) exemptions for agricultural discharges of dredge and fill materials into “Waters of the U.S.” that was made effective immediately. For the first time the IR limited the exemption for agricultural discharges of dredge and fill materials to 56 specified conservation practices. Previously, it was understood that the exemption applied to all “normal farming, silviculture and ranching activities, such as plowing, seeding, cultivating, minor drainage, harvesting for the production of food, fiber, and forest products, or upland soil and water conservation practices.” The AHC opposed the IR because it could place new constraints on horse farms and ranches.
The bill would require the EPA and Corp to withdraw the IR and prohibit requiring a permit for dredge and fill material.
The Federal Lands Recreation Enhancement Act
The bill also extends the Federal Lands Recreation Enhancement Act (FLREA) until September 30, 2016. FLREA is the authorizing legislation that allows the federal land management agencies to charge fees, but also limits when fees can be charged and how those fees are used.
The bill is expected to be signed by the President shortly.
House Passes Tax Extender Bill for 2014
On December 3, the House of Representatives passed the Tax Increase Prevention Act of 2014 (H.R. 5771). The bill would extend several tax provisions favorable to the horse industry, including three-year depreciation for all race horses, which expired or were reduced at the end of 2013. The bill extends these provisions retroactively for assets placed in service at any time in 2014.
Since many of the provisions in the House-passed bill are also in the Senate tax extender bill, it is expected to pass the Senate shortly and be sent to the President before the lame-duck session of this Congress ends next week.
During 2013 and before, horse owners, breeders, and equine businesses enjoyed a number of favorable tax provisions that reverted to lower levels or expired at the end of 2013. Over sixty tax provisions expired. The bill would extend many of the provisions at 2013 levels through 2014. A description of these provisions follows.
179 Expense Deduction. For the last few years, the so-called Section 179 business expense deduction was set at $500,000. This meant that anyone in the horse business could immediately depreciate up to $500,000 of the cost of any investment in business assets, including horses. The deduction was reduced dollar-for-dollar once investment in all one’s business activities hit $2 million.
This provision was not extended by Congress and had reverted to $25,000 for 2014.
The House bill would extend the expense deduction at 2013 levels of $500,000, with a phase-out at $2 million, for assets, including horses, placed in service in 2014.
Bonus Depreciation. Anyone in the horse business could also write-off up to 50% of new property purchased and placed in service in 2013, including horses and other equipment. This was known as “bonus depreciation.” It was restricted to new assets, which meant that the first use of the horse or other property had to begin with the taxpayer. This provision was not extended by Congress and had expired for 2014.
The House bill would extend bonus depreciation at 50% for new assets purchased and placed in service in 2014.
Depreciation of Race Horses. From 2009 through 2013 all race horses were depreciated over three years, regardless of their age when they were placed in service. This provision was passed in 2008 through the efforts of Minority Leader Mitch McConnell (R-KY).
This change, which eliminated the 7-year depreciation period for race horses, expired at the end of 2013.
The House bill would extend the three-year recovery period for all race horses placed in service in 2014.
Conservation Easements. Favorable rules for contributions by farmers and ranchers of capital gain real property for conservation easements, allowing a deduction of up to 100% of the donor’s contribution base, expired for 2013.
The House bill would extend through 2014 the enhanced deduction involving conservation easements.
The House bill must now be passed by the Senate and sent to the President for signing.
President Announces Executive Actions on Immigration
Last night, President Obama announced a series of immigration executive actions relating to border security, deportation proceedings, and undocumented immigrants, including action to defer deportation for certain individuals that in effect provides them with temporary legal status and the ability to work legally.
It is unclear to what extent these executive actions will apply to any undocumented workers in the horse industry. But it is very likely that there are workers in the horse industry who meet these requirements and will benefit from the President’s actions. Certainly there are experienced workers in the horse industry who lack proper immigration status and do not have valid residency documents. It is impossible at this point to tell how many and whether they would continue to work in the horse industry once provided general work authorization.
Specifically, the President has directed the Department of Homeland Security to create a new deferred action program for people who are parents of U.S. Citizens or Lawful Permanent Residents and have lived in the United States for five years or longer, if they register, pass a background check, and pay taxes. Such Individuals will have the opportunity to request temporary relief from deportation and work authorization for three years at a time if they come forward and register, submit biometric data, pass background checks, pay fees, and show that their child was born before the date of the President’s announcement.
Additionally, individuals who were brought to the United States as children can apply for this deferred action program if they entered before January 1, 2010, regardless of how old they are today.
Many specific details have yet to be announced. It is unclear at this time if Congress will move to block these executive actions and/or when this new deferred deportation program will begin. The Secretary of Homeland Security is expected to issue new guidelines shortly on how the executive actions will be applied and enforced. The immigration executive actions and new programs will continue until ended by some Congressional action, by the next President, or by the passage of a comprehensive immigration bill.
Comprehensive immigration reform has been a priority of the horse industry for many years. The difficulty horse farms, horse shows, trainers and others have had recruiting American workers has forced many to rely on foreign workers and utilize both the H-2A and H-2B temporary foreign worker programs to meet their labor needs. However, these current programs are not reliable and are extremely burdensome to use.
In addition, many of the workers employed in the industry may lack legal status. Deporting these workers would have a devastating effect on the farms, ranches, training facilities, and trainers who have relied upon them for years. A way to permanently legalize such workers is critical to the industry.
The President’s action does not fix or even address the many problems with the H-2A and H-2B programs or address undocumented workers that don’t meet the requirements for this new program. For these reasons it remains critical that the Administration and Congress take action on comprehensive immigration reform.
Lynda is the membership and communications specialist for the American Horse Council. Lynda grew up in Pasadena, Maryland with a passion for horses. She relocated to San Diego, California, where her dream of owning and riding horses came true. Lynda has worked with several law enforcement mounted units and has participated in several national and international horse associations.
Lynda believes horses play a major role in our society from therapy horses helping children learn to walk again, to helping military veterans and emergency service personnel learn to cope with stress, to keeping our parks and cities safe through law enforcement mounted units. Along with our equine partners assisting in burial services at Arlington National Cemetery. Horses impact our lives in ways others cannot.
Lynda believes the horse industry as a whole needs to have a voice and working at the American Horse Council is a way for her to help and keep the industry alive and informed.
Cliff Williamson is the Director of Health and Regulatory Affairs for the American Horse Council based in Washington D.C.
He grew up in Reva, VA on his family’s horse farm, participating in both horse and livestock 4-H activities. In 2008 he graduated from Virginia Tech with a degree in Animal Science, where he was an active member of both the animal science club Block & Bridle as well as the agricultural fraternity Alpha Gamma Rho. After graduation he spent 27 months in Nicaragua with the Peace Corps for their Food Security Program. Upon his return to the United States he spent four years in the animal export industry as the Director of Animal Logistics for T.K. Exports, Inc. In that time he was honored to be appointed to a seat on the Board of Directors for the Culpeper chapter of the Farm Bureau Federation.
For information regarding any equine health issues, welfare issues, and state, federal and international requirements regarding the movement of horses, please contact Cliff.
Bryan Brendle is the Director of Policy & Legislative Affairs for the AHC.
For information regarding public policy, government relations and advocacy, please contact Bryan.
With over 30 years of leadership experience in both for-profit and non-profit sectors, Julie holds a BS, MBA, Executive Certificate in Non-Profit Leadership and is Certified Association Executive®. She’s a life-long horse enthusiast ranging from recreational rider, breeder, and show competitor. A native of NC, she and her husband now reside in DC along with their Pembroke Welsh Corgis and Morgan horses.
In her down time she enjoys volunteering (she’s president of the board of PATH International), horseback riding, gardening and cooking. “I’m passionate about the equine industry because horses have enhanced my life and well-being so profoundly,” said Julie. “Working at the AHC is a way to give back to the equine community and ensure the long term health of the industry.”