WASHINGTON, DC – The
Ag Investment for America coalition, launched two years ago with USA Rice as one of the original partners, held a Congressional and stakeholder briefing on Capitol Hill yesterday to highlight the benefits of the
Grown in America Act (H.R. 1707) and review newly released economic analysis by the Agricultural and Food Policy Center at Texas A&M University. The briefing included remarks and an update on the bipartisan bill by the lead sponsors Reps. David Kustoff (R-TN) and Jim Costa (D-CA). There are currently 32 bipartisan cosponsors on the bill.
Dr. Bart Fischer, co-director of the TAMU Agricultural and Food Policy Center, presented the new economic analysis, which found that the bill would generate $2.36 billion in increased economic activity and output, and create at least 7,000 new jobs annually, with benefits widely distributed in every state and most Congressional districts.
The Grown in America Act would provide a 25 percent tax credit to U.S. companies and cooperatives based on the value of their domestic purchases of commodities for use in food or beverage production. The greater domestic sourcing a company does relative to imported commodities, the greater the tax credit benefit.
The bill also requires at least 50 percent domestic sourcing to be eligible for the credit, and at least a 5 percent increase in domestic sourcing each year until reaching at least an 85 percent domestic sourcing threshold to remain eligible. The provision is intended to further incentivize domestic purchasing and maximize the use of U.S.-grown crops.
A panel of coalition partners presented their perspectives on the bill and its importance for their respective industries. USA Rice President & CEO Peter Bachmann kicked off the discussion on how the tax credit provided through the Grown in America Act would benefit all segments of the rice industry from the farm to the mill and ultimately the end user of the rice.
“One of the purposes of the bill is, given shifting and uncertain export markets, to increase domestic demand for U.S.-grown commodities to provide greater value to producers,” said Bachmann. “Given that rice is a crop that you can’t eat or drink without being processed, much of our membership stands to benefit from such a credit being developed. USA Rice is working closely with the coalition and other partners to build cosponsor support for the Grown in America Act and to identify a legislative opportunity to move the bill forward.”
The other panelists represented American Farm Bureau Federation, National Council of Farmer Cooperatives, and FMI - The Food Industry Association.
The briefing concluded with a reception hosted by the coalition partners on the balcony of the House Agriculture Committee hearing room.