House Advances Measure to Support Missouri Farmers (HB 3)

Lawmakers returned to the State Capitol building this week to give their support to legislation that will support and promote key areas of Missouri’s agriculture industry. House members approved HB 3 as part of the special legislative session called by Gov. Mike Parson.

Parson called the special session after vetoing HB 1720, which created and renewed a number of agriculture incentives that would sunset after two years. Parson asked lawmakers to return to Jefferson City to approve a version of the bill that would give the programs a six-year sunset.

The bill approved this week by the House extends and creates several agriculture tax credit programs. The sunset for each program would be for a minimum of six years. If approved by both chambers and signed into law by the governor, the bill would:

• Extend the expiration of the meat processing facility investment tax credit;

• Create a tax credit program for retail dealers of higher ethanol blend fuels;

• Create a tax credit program for retail dealers of biodiesel;

• Create a tax credit program for Missouri biodiesel producers;

• Create a tax credit program for establishing or improving urban farming operations;

• Extend the expiration of the Rolling Stock Tax Credit program;

• Extend the expiration of the Agricultural Product Utilization Contributor Tax Credit;

• Extend the expiration of the New Generation Cooperative Incentive Tax Credit;

• Exempt utility vehicles for agriculture use from state and local sales and use taxes;

• Create the Specialty Agricultural Crops Act; and

• Amend the Family Farms Act to modify the definition of small farmer.

The bill’s sponsor said, “This bill is tailored right now towards family farms and smaller businesses.” He noted agriculture is a self-sufficient industry but could use assistance now because of rising interest rates, greatly increased input costs, and drought conditions in some parts of the state. He said, “The stars are lining up as they did in the late 70s and early 80s in what was considered the worst economic crisis since the Great Depression for agriculture.”

The bill approved by the House contains all of the provisions called for by Gov. Parson. The House did add an additional four provisions that technically fall outside the governor’s call. The four provisions pertain to land surveys, commercial log trucking, anhydrous ammonia, and the state’s soybean producers assessment. Lawmakers believe the governor will expand the special session call to allow the four additional provisions.

The bill’s sponsor said it has a price tag of $40 million for an agriculture industry that generates $94 billion in economic activity. He noted that agriculture is one of the state’s top revenue producers and that one out of every 10 jobs in Missouri is related to the agriculture industry.

The sponsor concluded by saying, “There’s good stuff in here. I think it gives small businesses, the small farms, an opportunity to compete in the arena with the big farms and the big businesses. I would ask that people really think about this and do what’s best for the small business farmers in our state.”

The bill now moves to the Senate for consideration. The Senate sent identical legislation (SB 8) to the House this week. The two chambers are working on the bills with the hope of sending one or both of them to the governor to be signed into law.

As always, it is an honor to serve you.

Representative Allen Andrews, District 1, Majority Whip

Missouri State Capitol, Room 302-1, 201 West Capitol Avenue, Jefferson City, MO  65101