Thune Praises Finance Committee’s Bipartisan Passage of Trade Promotion Authority

-Thune provisions included in Finance-passed customs reauthorization bill-

WASHINGTON, D.C.—U.S. Sen. John Thune (R-S.D.), member of the Senate Finance Committee, which has jurisdiction over tax and trade legislation, praised the committee’s bipartisan passage of Trade Promotion Authority (TPA). The legislation would help finalize trade deals that remove barriers facing U.S. exports, allowing American goods to compete on a level playing field. Last night, the Finance Committee passed The Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (S. 995) and a customs reauthorization bill including provisions authored by Thune, among other trade bills.

“With 96 percent of the world’s consumers outside the borders of the United States, free and fair trade is essential to economic growth,” said Thune. “This important legislation will help put the United States in the strongest possible position when negotiating trade agreements by allowing Congress to set guidelines for trade negotiations and outlines the priorities the administration must follow. Since 2009, increasing exports have accounted for more than 1.6 million new jobs in the United States. In South Dakota alone, exports support more than 15,000 jobs in industries ranging from farming and ranching to machinery and electronics. The sooner Congress renews TPA, the sooner American workers and job creators can start experiencing the benefits.”

Among other provisions, the TPA legislation directs America’s trade negotiators to remove barriers to the export of America’s farm products, including those products currently subject to non-tariff barriers. Specifically, the bill will help to remove non-science based regulatory restrictions abroad to U.S. crops that use biotechnology. Trade is especially important to South Dakota’s agriculture industry. Export markets account for 30 percent of the sales of U.S. agricultural products. For South Dakota, that represents $3.8 billion worth of annual agriculture exports creating jobs, boosting farm income, and growing South Dakota’s economy.

The legislation also includes provisions updating U.S. trade policy for the modern era by addressing foreign barriers to digital trade, such as restrictions on data flows across borders. Increasingly the Internet is an important tool for small businesses looking to export their goods, and these provisions have been championed by Thune in his roles as member of the Finance Committee and as Chairman of the Senate Committee on Commerce, Science, and Transportation.

The following Thune provisions were included in the chairman’s modified mark to the customs reauthorization bill:

1. Provision to Reduce Trade Barriers for Low-Value Items: A Thune provision was included to the bill to reduce current trade barriers and allow for more low-value items to be imported into the United States duty-free with fewer unnecessary administrative requirements. The $200 de minimis exemption for imports has not been updated in over 20 years. Thune’s provision—taken from his legislation with Sen. Ron Wyden (D-Ore.) S. 489—would raise the exemption level to $800. The chairman’s modified mark also adopted a Thune amendment to express a Sense of Congress encouraging the U.S. Trade Representative to work with our trading partners to ensure they are also raising their de minimis limits for U.S. goods.
2. Provision to Ensure Fair Treatment of Domestic Honey Producers: The bill includes a provision, championed by Thune, to provide additional tools to U.S. Customs and Border Patrol (CBP) to better enforce existing trade laws against Chinese honey that is transshipped through third countries, thus evading applicable duties. Additionally, the chairman’s modified mark adopted a Thune amendment requiring CBP to distribute all interest payments collected under the Byrd Amendment to affected domestic producers, such as honey producers. The law, which applies to products imported before September 30, 2007, requires that certain import duties, including all interest, be distributed to the domestic industries found to have been injured by the imports under existing trade remedy laws. CBP has made a determination, contrary to the plain language of the law, that certain interest payments are not due to the impacted U.S. producers, thus greatly reducing the payments to these producers. The Thune amendment will correct this CBP misinterpretation of law.

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Thune, Donnelly Lead Bipartisan Letter Urging USDA to Maximize CRP Enrollment, Conduct General Signup

-Without a Fiscal Year 2015 general signup, CRP enrollment could drop to 3 million acres below its acreage cap-

WASHINGTON D.C.— Today, U.S. Sens. John Thune (R-S.D.) and Joe Donnelly (D-Ind.) led a bipartisan group of 10 senators in sending a letter to U.S. Department of Agriculture (USDA) Secretary Tom Vilsack strongly encouraging him to take whatever steps necessary, including conducting a general signup in fiscal year 2015, to keep Conservation Reserve Program (CRP) enrollment near the annual acreage caps authorized in the 2014 Farm Bill.

“CRP has evolved over the past 30 years into a versatile soil and water conservation and wildlife habitat program, that also provides a solid economic alternative for farmers in place of producing expensive crops on marginal land,” said Thune. “Because general CRP signups account for the highest percentage of enrolled acres and are the most cost-effective, we need a general CRP signup each year to keep enrollment at its maximum level.”

“The Conservation Reserve Program is critical to reducing soil erosion, improving water quality, and providing wildlife habitats,” said Donnelly. “This program helps both our agriculture businesses and conservation efforts. That is why my Senate colleagues and I are urging the USDA to make sure that eligible landowners have every opportunity to participate. I appreciate the opportunity to work with Senator Thune on this bipartisan effort.”

First authorized under the 1985 Farm Bill, CRP is administered USDA. CRP enrollment peaked at 37 million acres in 2007, but has dropped to its current enrollment of 24.29 million acres. The 2014 Farm Bill-authorized nationwide CRP acreage cap for fiscal year 2015 is 26 million acres. More than 1.9 million acres enrolled in CRP contracts expire September 30, 2015. Unless a large number of acres are enrolled in CRP during the remainder of Fiscal Year 2015, CRP enrollment may be nearly 3.6 million acres under the enrolled acreage cap at the end of this fiscal year.

More than 18 million acres or about 75 percent of the current CRP enrollment of 24.29 million acres enrolled via general signups, which indicates the important contribution general CRP signups are to overall enrollment. To emphasize cost-effectiveness of general CRP signups, the average rental rate for acres enrolled under general CRP signups is $66.34 and the average rental rate for acres enrolled in continuous CRP is $110.89.

Joining Thune and Donnelly in their letter are Sens. Tammy Baldwin (D-Wisc.), Michael Bennet (D-Colo.), Steve Daines (R-Mont.), Jim Inhofe (R-Okla.), Amy Klobuchar (D-Minn.), Ed Markey (D-Mass.), Rob Portman (R-Ohio), Mike Rounds (R-S.D.), Jon Tester (D-Mont.), and Ron Wyden (D-Ore.).

Text of the senators’ letter follows:
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April 23, 2015

The Honorable Thomas J. Vilsack
Secretary
U.S. Department of Agriculture
1400 Independence Ave, SW
Washington, DC 20250

Dear Secretary Vilsack,

We thank you and your team at the U. S. Department of Agriculture (USDA) for your efforts to implement critical provisions of the Agriculture Act of 2014 (2014 Farm Bill). As you continue to make implementation decisions pursuant to the intent of Congress, please keep in mind that decisions regarding Conservation Title programs have lasting and significant impacts on the agricultural landscape. The Conservation Reserve Program (CRP) is one of the most critical Conservation Title programs, and the undersigned members of the U.S. Senate write to clarify the intent of the language passed into law.

CRP was originally established under the Food Security Act of 1985 and over the past 30 years has evolved into one of the most important and versatile federal programs for both agricultural producers and conservationists. Annually, CRP reduces soil erosion by millions of tons, improves water quality for millions of people, and provides millions of acres of wildlife habitat. CRP also serves as an effective component of the “farm safety net” by helping producers mitigate risks associated with price and production by providing an alternative to raising crops on less productive, environmentally sensitive lands.

Nearly 37 million acres were enrolled in CRP at its peak in 2007; however, as authorized in the 2014 Farm Bill, the CRP acreage cap will be reduced to 26 million acres in fiscal year 2015, 25 million acres in fiscal year 2016, and 24 million acres in fiscal years 2017 and 2018.

Although the 2014 Farm Bill lowered the CRP acreage cap, this reduction does not signal waning congressional support for CRP. It is our intent that USDA provide adequate enrollment periods, including general CRP signups, in order to ensure eligible landowners are not denied sufficient opportunity to enroll their land and to ensure CRP does not remain undersubscribed.

The combination of larger tracts enrolled through the more cost-effective general CRP signups in close proximity to Continuous CRP (CCRP) or Conservation Reserve Enhancement Program (CREP) enrolled acres maximizes the wildlife and recreational benefits of CRP, CCRP, and CREP and provides the most cost-effective use of CRP expenditures. CRP must be allowed to continue as one of USDA’s key conservation programs in concert with working lands conservation efforts.

Though the authorized CRP acreage cap for fiscal year 2015 is 26 million acres, as of February 2015 only 24.29 million acres were enrolled. With 1.9 million acres enrolled in contracts that expire on September 30, CRP may have a total enrollment of only 22.39 million acres at the end of this fiscal year, nearly 3.6 million acres under the allowed acreage cap.

Accordingly, we strongly encourage you to take whatever steps necessary to keep CRP enrollment near the annual acreage caps authorized in the 2014 Farm Bill, including conducting a general CRP signup during fiscal year 2015 and in future years as needed. In addition, please let us know specifically how you plan to keep CRP enrollment at or near its authorized acreage caps for the duration of 2014 Farm Bill.

Thank you for your consideration of our request. We stand ready to work with you to ensure CRP enrollment does not fall below the levels Congress intended.

Sincerely,

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Thune Statement on Passage of Human Trafficking Bill

“It’s good to see that bipartisanship has once again prevailed in the Senate so these victims can receive much-needed resources.”

WASHINGTON, D.C.—U.S. Sen. John Thune (R-S.D.) issued the following statement on the Senate’s bipartisan passage of the Justice for Victims of Trafficking Act:

“I’m glad that Senate Democrats finally dropped their weeks-long filibuster of this bipartisan, common-sense bill that targets the scourge of human trafficking and helps give a voice to the voiceless. This effort to help end modern-day slavery should have been above politics all along, but it’s good to see that bipartisanship has once again prevailed in the Senate so these victims can receive much-needed resources.”

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