Members of Congress, States and Business Urge Supreme Court to Review EPA’s Latest Clean Water Act Overreach

A crush of supporters yesterday filed friend-of-the-court briefs, joining the American Farm Bureau Federation in urging the U.S. Supreme Court to hear arguments on the Environmental Protection Agency’s plan to micromanage state land-use and development decisions under the guise of the Chesapeake Bay water quality “blueprint.”
Filers included 92 members of Congress, 22 states, forestry groups represented by the Pacific Legal Foundation, and a broad cross-section of the U.S. economy represented by the U.S. Chamber of Commerce, the National Association of Manufacturers and the National Federation of Independent Business.
“The fact that so many voices are being raised in support of Supreme Court review shows the broad and severe threat that EPA’s action here poses nationwide,” AFBF President Bob Stallman said. “EPA has asserted powers that do not appear in any law written by Congress, and it has done so in the context of an iconic national treasure, hoping that will inoculate its power grab in the courts. We have faith that the nation’s highest court will see this for what it is and hold EPA accountable to stay within its statutory authority.”

Despite aggressive new commitments and water quality achievements by the six states in the Bay watershed in the mid-2000s, the EPA asserted federal control over the Chesapeake Bay recovery in its 2010 “blueprint.” The new federal plan effectively gives EPA the ability to function as a super-zoning authority over local and state governments—dictating where homes can be built, where land can be farmed, and where commercial development can occur.
The plan will impose tens of billions of dollars in direct costs—with unknown economic impacts on local communities and economies. It also denies state and local governments and businesses the flexibility to adapt to new circumstances, instead locking in limits that can quickly become outdated but can only be revised by EPA. The lower courts upheld EPA’s blueprint on the theory that it furthers the water quality goals of the Clean Water Act—despite the absence of words in the statute authorizing such federal action. A significant issue presented for the Supreme Court is the degree to which courts should defer to broad agency interpretations of their statutory power. 
“The broad support for the Farm Bureau petition shows that deep concerns about the Bay blueprint go far beyond agriculture and far beyond the Bay region,” said AFBF General Counsel Ellen Steen. “Members of Congress, states and business groups recognize that this illegal framework will be imposed throughout the country unless the Court intervenes. Given the enormous social and economic consequences, not to mention the grave questions about federalism and deference to agency overreaching, this is a case that cries out for Supreme Court review.”



Governor McAuliffe Announces New Craft Malting Operation, Jobs in Loudoun County

Photo credit: Virginia Grain Producers Association
Governor Terry McAuliffe has announced that Pilot Malt House Virginia, LLC (dba Pilot Malt House) will locate its second artisan craft malting operation in Loudoun County.  The company will invest nearly $1 million to construct and operate the facility and create seven new jobs.  In addition, Pilot Malt House will purchase more than 2 million pounds of Virginia-grown barley, wheat and rye over the next three years.  The Commonwealth secured the project during the 2015 Craft Brewers Convention, where Virginia had a significant presence, in Portland, Oregon, this past April.
Speaking about the announcement, Governor McAuliffe stated, “This is a significant win for the Commonwealth as it fills a need for current and future craft brewers and builds on my administration’s efforts to make Virginia the East Coast leader in the fast-growing craft beer industry.  The attraction of Pilot Malt House to Loudoun County represents another step in strengthening Virginia’s agricultural economy and building the infrastructure for our booming craft beverage industry.  This project, with its capital investment, new jobs being created, and commitment to sourcing locally, represents another economic win for this region.  My administration is committed to fully using our diverse agriculture industry, one of the Commonwealth’s greatest assets, to help build the new Virginia economy.”

Founded in Michigan in 2011, Pilot Malt House is an artisan malt house that uses locally grown grains and a mix of traditional and modern processing techniques to produce a variety of base, specialty, and custom malts.  The company will work directly with Virginia producers to source more than 2 million pounds of Virginia grains – 75% of total grain purchases over the next three years – creating new markets for Virginia barley, wheat and rye.  Pilot Malt House currently supplies malt, an important ingredient in beer, to several Michigan and national breweries.  The company plans to work with Virginia’s craft brewers, home brewers, and distilleries to sell its distinct and quality malts.
“This unique facility in Loudoun County represents another step forward for Virginia as we cement our reputation as key players in the nation’s fast-growing craft beer industry, which saw sales increase by more than 22 percent from 2013 to 2014,” said Virginia Secretary of Agriculture and Forestry Todd Haymore.  “Pilot Malt House’s investment also enhances the Commonwealth’s position in the industry, which has an economic impact of nearly $625 million, by providing a new market for Virginia’s grain producers and a new supply of locally grown and processed malt for Virginia’s craft beverage industry.  Craft beer is contributing positively to the economies of big cities and rural communities across the Commonwealth, adding to the Governor’s call to build a New Virginia Economy.”
Erik May, Owner of Pilot Malt House, added, “Pilot Malt House is excited for the opportunity to expand to Loudoun County, Virginia.  The Governor of Virginia has made a commitment to agricultural businesses, and we couldn’t be happier to be expanding our Michigan operation into Northern Virginia.  The Loudoun County team has been a dream to work with, and we are appreciative of their hard work and dedication to expanding Virginia agribusiness.  Pilot Malt House, since its inception, has existed to connect farms to breweries and distilleries.  We will provide the best quality malt to Virginia breweries and distilleries made from Virginia-grown grain made by Virginia-raised folks in a truly Virginia facility.”
Pilot Malt House’s new processing capacity will enable existing Virginia grain producers to grow their production and encourage new producers to enter the market by filling a gap in the supply chain.  In addition to supporting current and prospective grain producers, the facility will benefit Virginia’s craft beer industry by increasing the amount of quality malt produced in the state, allowing brewers to capitalize on the terroir of Virginia.
“I am very appreciative for the major investment that Pilot Malt House is making in Loudoun, almost $1 million in their building and equipment and more than $300,000 buying Virginia-grown grains.  Loudoun has a vital and growing rural economy, and Pilot Malt House fills an important role and is a welcome resource for our farms and businesses,” said Loudoun County Board of Supervisors Chairman Scott K. York.
“Pilot Malt House will close the missing link in Loudoun’s farm brewery industry.  We will now have the ability to malt locally-grown grain right here in our county.  Pilot Malt House will allow more investment to stay in Loudoun and will ensure that Virginia’s craft beer industry is heavily rooted in Loudoun’s rural economy,” said Loudoun Economic Development Director Buddy Rizer.
The Commonwealth is partnering with Loudoun County and Pilot Malt House on this project through the Governor’s Agriculture and Forestry Industries Development (AFID) Fund, which is administered by the Virginia Department of Agriculture and Consumer Services.  Governor McAuliffe approved a $19,500 grant from the AFID Fund to assist with the project, which Loudoun County is matching with local grant funds.

Governor’s Bond Package Includes VT Livestock, Poultry Research Facilities

Virginia’s agriculture community had reason for a pre-holiday celebration when Gov. Terry McAuliffe announced a $2.43 billion bond package on Dec. 9 that will be part of his Fiscal Year 2017-2018 budget.

The package supports capital projects to enhance the state’s technological and economic development infrastructure. It includes first-phase funding for livestock and poultry research facilities at Virginia Tech—a project of considerable interest to Virginia Farm Bureau Federation.

“This is great news for Virginia agriculture,” said Martha Moore, VFBF vice president of governmental relations. “The livestock and poultry industries garner $1.8 billion in cash receipts annually. These research facilities at Virginia Tech help to support livestock and poultry farmers, processors and auxiliary businesses. They also put Virginia farmers at a more competitive advantage in the domestic and global marketplaces.”

The current animal and poultry research facilities at Virginia Tech are more than 50 years old. A 2012 report from the U.S. Department of Agriculture’s National Institute of Food and Agriculture noted that almost every structure “requires repair or renovation. While some of these facilities have received minor repairs and upgrades … many are in much need of further repair, if not a complete overhaul.”

The Animal Sciences Department maintains a 200-ewe sheep flock, a 150-cow beef herd, a 40-sow swine herd, a five-building turkey center with facilities for more than 2,000 young and 1,500 adult chickens, and a herd of 75 to 120 horses for teaching and research activities on campus.

The facilities for Phase 1 of the desired upgrade include 126,000 square feet for a new swine breeding facility, a new swine farrowing and finishing facility, a new equine barn, a new beef nutrition and physiology research laboratory, a new poultry grow-out facility, a new turkey production building, major renovations to the large animal judging pavilion, and numerous feed and equipment buildings.

“These buildings are not like the facilities you would build on a farm,” Moore noted. “They have to meet state building specifications with a higher building life expectancy, and they must comply with laws such as the Americans with Disabilities Act. To conduct funded research expected by the agriculture industry and the government, they must have accreditation from the Association for Assessment and Accreditation of Laboratory Animal Care.”

When McAuliffe spoke Dec. 3 at the VFBF Annual Convention in Norfolk, he told farmers that his proposed budget will be an aggressive one for agriculture, adding, “I think everybody will be happy.”

Moore said his Dec. 9 announcement “is a big step in making farmers happy. While there are a few other critical items that farmers want funded, they are pleased to see that he recognizes the value of this project in growing opportunities for agriculture and strengthening Virginia’s economy.”

New Agriculture and Forestry Industries Development Planning Grants Announced

Governor Terry McAuliffe announced Monday the award of three planning grants from the Governor’s Agriculture and Forestry Industries Development (AFID) Fund.  The Commonwealth awarded a total of $56,000 to projects in the LENOWISCO Planning District Commission (PDC), City of Roanoke, and Nelson County to support the growth of agricultural and forestry industries in the Commonwealth.  The AFID planning grant program encourages local governments to promote agriculture and forestry and incorporate the needs of these industries into their strategic economic development plans.
Speaking about the AFID planning grants while on a trade and marketing mission to India and the Middle East, Governor McAuliffe said, “Today’s announcement is an excellent example of the important role that our diverse agricultural industry can and will play in building the new Virginia economy.  These AFID planning grants across the state are leveraging multiple aspects of economic development in Virginia – agriculture, tourism, community development, and food access, among others.  I am pleased to see so many localities across the Commonwealth taking advantage of this program to support the local and regional efforts paving the way for future economic success.”

“I applaud the LENOWISCO PDC, City of Roanoke and Nelson County for their strong commitment to Virginia’s agricultural and forestry industries, and we are pleased to give them the tools to help them support those industries,” said Secretary of Agriculture and Forestry Todd Haymore.  “The LENOWISCO PDC will utilize its grant funding to develop a regional agricultural development strategic plan that will have lasting impacts on the region’s economy.  The City of Roanoke Economic Development Authority (EDA) will strengthen the local food system and improve food access in the Roanoke Valley, while directly supporting local farmers and food entrepreneurs.  Finally, Nelson County will capitalize on their  wine, craft beer, and distilled spirits industries growing along the Route 151 Corridor and surrounding area to promote and complement the area’s burgeoning agritourism business while maintaining their quality of life.  These three initiatives will create economic growth in one of the Commonwealth’s largest economic sector, agriculture, furthering the Governor’s plan to build a new Virginia economy.”
The AFID planning grant program, developed in 2012, encourages local and regional governments to enhance their strategies for supporting and integrating agriculture and forestry-based industries into their communities’ job creation and economic development efforts.  The planning grants are part of the Governor’s AFID program, an economic development tool helping localities locate new and expanding agriculture and forestry-related businesses to the Commonwealth.  AFID grants are available for political subdivisions of the Commonwealth interested in growing and developing their agriculture and forestry industries by strategically targeting practices or integrating practices that add value to Virginia-grown agriculture and forestry-related products.
The Virginia Department of Agriculture and Consumer Services (VDACS) administers the AFID program and planning grant applications are accepted on a rolling.  Successful funding requests must demonstrate strong support from local government and the agriculture and forestry community, and the ability to provide matching funds.   For more information, please visit http://vdacs.virginia.gov/agribusiness/planning.shtmlor contact AFID Fund Coordinator Stephen Versen at stephen.versen@vdacs.virginia.govor 804.786.6911.
Details on the grant awards are below:

1.       Project Title: Regional Agricultural Development Strategic Plan
          Applicant:     LENOWISCO Planning District Commission 
         (Counties of Lee, Scott and Wise and the City of Norton)
          Award:          $20,000
Summary:      The localities of the LENOWISCO PDC wish to develop a strategic plan to fully analyze and incorporate agricultural development into the region’s overall economic development efforts.  The plan will enable the region’s agriculture and economic development stakeholders to identify priorities, strategies and implementation projects, but also serve to further raise the profile of the local agricultural community, both locally and in the region.  The project will be overseen by a work group and steering committee representing a broad and diverse range of agricultural interests.
2.       Project Title: LEAP Community Kitchen Grant
          Applicant:     City of Roanoke Economic Development Authority (EDA)
          Award:          $20,000
Summary:      This project strengthens the local food system in the Roanoke Valley by funding additional food infrastructure, directly supporting local producers and food entrepreneurs, and increasing access to local food.  It consists of three components: a shared commercial kitchen space that will serve as a small business incubator; a small-scale local food hub; and the LEAP Mobile Market that will operate from the food hub.  Its goals are to (1) support an increase in production of local foods; (2) incubate food-based businesses; (3) expand access to healthy local foods in low-income, low-access neighborhoods; and (4) provide space for food, cooking and health education and programming.
3.       Project Title: Rockfish Valley Area Plan
          Applicant:     Nelson County
          Award:          $16,000

 Summary:        Nelson County’s Rockfish Valley, home to popular agritourism venues and craft beverage producers along Route 151, is experiencing significant increases in commercial development.  To ensure these changes do not negatively impact the special qualities that are the foundation of the area’s sense of place, quality of life, and economic vitality, the County is undertaking a comprehensive public-planning process to guide future development.  This plan will allow the County to proactively attract desired types of growth, direct development to appropriate areas, maximize Nelson County’s agritourism “brand,” support their thriving agritourism and agribusiness operations, and preserve the prime agricultural soils and landscapes that are the basis of their success.

Farm Bureau Launches Election Information Website

A new website launched by American Farm Bureau Federation offers farmers critical information on the 2016 presidential candidates. The website highlights the industry’s perspective on the election and documents candidates’, as well as Farm Bureau’s, positions on key farming issues.

“We want to make sure that candidates, campaigns, staff or members and others understand where Farm Bureau stands on the issues that are impacting farmers, rural communities, as well as all of America,” explained Cody Lyon, AFBF’s director of advocacy and political affairs, in Thursday’s Newsline.

Election Information Website

Farmers Urge Congress to Make Tax Extenders Permanent

With the year quickly coming to end, farmers continue to ask Congress to reinstate and make permanent a number of expired tax provisions that help improve the economic viability and stability of food, fiber and fuel production.  Among those provisions are section 179 small business expensing and bonus depreciation, which farmers need to help them make business purchases while dealing with uncontrollable weather and unpredictable markets that farm profitability.

Earlier this fall, Farm Bureau and more than 2,000 other companies and organizations sent a letter to lawmakers explaining why continuing these provisions, most of which expired at the end of 2014, is so important.

“Failure to extend these provisions is a tax increase,” the groups wrote. “It will inject instability and uncertainty into the economy and weaken confidence in the employment marketplace. Acting promptly on this matter will provide important predictability necessary for economic growth.”

More recently, in a letter to House and Senate leaders, Farm Bureau urged them to promptly pass legislation to permanently extend “tax provisions that are critically important to farm and ranch businesses as they engage in year-end business taxes and prepare to file their 2015 taxes.”

“Only with passage will farmers have the certainty they need to make long-term business decisions that will grow and expand their operations,” the group continued.
In July, the Senate Finance Committee extended through 2016 a package of tax provisions, including a number of those important to farmers and ranchers.

The Farm Bureau-supported provisions in the tax extender package include:

· Section 179 Small Business Expensing: The maximum amount that a small business can immediately expense when purchasing business assets instead of depreciating them over time is $25,000. Last year, the maximum amount was $500,000, reduced dollar for dollar when expenditures exceed $2 million.
· Bonus Depreciation: An additional 50 percent bonus depreciation for the purchase of new capital assets, including agricultural equipment.
· Incentives for renewable fuels and energy, including biodiesel, wind power and refueling property.
· An enhanced deduction for donated food.
· A provision encouraging donations of conservation easements.

On the House side, in February lawmakers in that chamber passed the permanent extension of Section 179 small business expensing (H.R. 636), the tax deduction for donating food (H.R. 644) and the tax deduction for donating conservation easements (H.R. 644).

In addition, the House Ways and Means Committee in September approved a bill (H.R. 2510) to permanently extend 50 percent bonus deprecation. The measure would also expand the provision to include fruit- and nut-bearing plants with pre-productive periods of two or more years.