WASHINGTON (AP) — President Joe Biden is visiting corn-rich Iowa on Tuesday to announce he’ll suspend a federal rule preventing the sale of higher ethanol blend gasoline this summer as his administration tries to tamp down prices at the pump that have spiked during&nbsp;<a href="https://apnews.com/article/russia-ukraine-europe-7dd1f64818de5eadb86f12ad58e12a25">Russia’s war with Ukraine</a>.

Most gasoline sold in the U.S. is&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-health-business-environment-covid-19-pandemic-f1c7a7c8e05247f3456e26d449d88ab3">blended with 10% ethanol</a>. The Environmental Protection Agency will issue an emergency waiver to allow widespread sale of&nbsp;<a href="https://apnews.com/article/donald-trump-environment-smog-clean-air-act-us-news-2fa4d36b2aa5418184a3833c69efc9f9">15% ethanol blend</a>&nbsp;that is usually prohibited between June 1 and Sept. 15 because of concerns that it adds to smog in high temperatures.

Senior Biden administration officials said the move will save drivers an average of 10 cents per gallon at 2,300 gas stations. Industry groups say most of those stations are in the Midwest and the South, including Texas.

Biden is to announce the move at a biofuel company in Menlo, west of Des Moines. Iowa is the country’s largest producer of corn, key to producing ethanol.

The waiver is another effort to help ease&nbsp;<a href="https://apnews.com/article/climate-science-business-prices-opec-cf470e24ebc8b7bb4a74bf1ed50d5e6d">global energy markets</a>&nbsp;that have been rocked since&nbsp;<a href="https://apnews.com/article/russia-ukraine-europe-russia-moscow-kyiv-626a8c5ec22217bacb24ece60fac4fe1">Russia invaded Ukraine</a>. Last month, the president announced the U.S. will release&nbsp;<a href="https://apnews.com/article/russia-ukraine-biden-business-europe-3e1808077371b88ae043c86584763afd">1 million barrels of oil</a>&nbsp;per day from&nbsp;<a href="https://apnews.com/article/biden-business-prices-ae5200310e3d3c0390d9e1cbb3c5a964">the nation’s strategic petroleum reserve</a>&nbsp;over the next six months. His administration said that has helped to slightly reduce gas prices lately, after they climbed to an average of about $4.23 a gallon by the end of March, compared with $2.87 at the same time a year ago, according to AAA.

Members of Congress from both parties, as well as industry groups, had urged Biden to grant the E15 waiver.

“Homegrown Iowa biofuels provide a quick and clean solution for lowering prices at the pump and bolstering production would help us become energy independent once again,″ said Iowa Republican Sen. Chuck Grassley. He was among nine Republican and seven Democratic senators from Midwestern states who sent Biden a letter last month urging him to allow year-round E15 sales.

The trip will be Biden’s first as president to Iowa, where his 2020 presidential campaign limped to&nbsp;<a href="https://apnews.com/article/ap-top-news-in-state-wire-ia-state-wire-caucuses-joe-biden-53a3df6f615b9cec6e12c216307f0624">a fourth-place finish</a>&nbsp;in the state’s technologically glitchy caucus.

After bouncing back to win&nbsp;<a href="https://apnews.com/bb261be1a4ca285b9422b2f6b93d8d75">the Democratic nomination</a>, Biden returned for a rally at the Iowa state fairgrounds four days before Election Day 2020, only to see Donald Trump&nbsp;<a href="https://apnews.com/article/election-2020-joe-biden-hillary-clinton-iowa-iowa-city-3652c57038446e453516b9370c1ab243">win the state</a>&nbsp;by 8 percentage points.

Biden heads back to the state at a moment when he’s facing yet more political peril. He’s saddled with&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-joe-biden-business-health-inflation-6b6b0abfef867fc405e9f358ce2c3a09">sagging approval ratings</a>&nbsp;and&nbsp;<a href="https://apnews.com/article/us-inflation-soars-776c03520c90083894fedf31f1a7db00">inflation at a 40-year high</a>&nbsp;while his party faces&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-health-georgia-donald-trump-2ad863083ef6a097dc5785977c7bd9aa">the prospect of big midterm election losses that could cost it control of Congress</a>.

The president also planned to promote his economic plans to help rural families struggling with higher costs, while highlighting&nbsp;<a href="https://apnews.com/article/joe-biden-technology-business-broadband-internet-congress-d89d6bb1b39cd9c67ae9fc91f5eb4c0d">the $1 trillion bipartisan infrastructure law</a>&nbsp;enacted last fall. The law includes money to improve internet access, as well as for modernizing wastewater systems, reducing flooding threats and improving roads and bridges, drinking water and electric grids in sparsely populated areas.

“Part of it is showing up in communities of all sizes, regardless of the results of the last election,” said Jesse Harris, who was a senior adviser to Biden’s 2020 campaign in Iowa and directed get out the vote and early voting efforts for Barack Obama’s presidential campaign in 2008.

Harris said most presidents who visit Iowa typically go to the state’s largest cities. Hitting an area like Menlo, part of Guthrie County, which backed Trump over Biden by 35 percentage points in 2020, “does speak to the importance the administration places on infrastructure broadly but also infrastructure in rural and smaller communities.”

The Biden administration plans to spend the coming weeks pushing billions of dollars in funding for rural areas. Cabinet members and other senior officials will travel the country to help communities get access to money available as part of the infrastructure package.

“The president is not making this trip through a political prism,” White House press secretary Jen Psaki said. “He’s making this trip because Iowa is a rural state in the country that would benefit greatly from the president’s policies.”

Still, administration officials have long suggested that Biden travel more to promote an economy that is rebounding from the setbacks of&nbsp;<a href="https://apnews.com/hub/coronavirus-pandemic">the coronavirus pandemic</a>. The number of Americans collecting&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-health-unemployment-jobless-claims-aea70c27cbaebdb732cf7426e37a5b58">unemployment has fallen to the lowest levels since 1970</a>, for example.

But much of the positive jobs news nationally has been overshadowed by surging gas, food and housing prices that have pushed consumer inflation to 7.9% over the past year ending in February. That’s the sharpest spike since 1982. Inflation figures for March, due out Tuesday, are likely to bring more bad news for the Biden administration.

“Maybe a trip back to Iowa will be just what Joe Biden needs to understand what his reckless spending, big government policies are doing to our country,” Iowa Republican Party Chairman Jeff Kaufmann said in a statement.

After Iowa, Biden will visit Greensboro, North Carolina, on Thursday.

Psaki blamed Russia’s war in Ukraine for helping to drive up gas prices and said the administration expects the consumer price index for March to be “extremely elevated” in large part because of it.

The EPA has lifted seasonal restrictions on E15 in the past, including after&nbsp;<a href="https://apnews.com/hub/hurricane-harvey">Hurricane Harvey</a>&nbsp;in 2017. The Trump administration allowed for selling E15 in the summer months two years later but had the rule struck down by a federal appeals court.

WASHINGTON (AP) — President Joe Biden is visiting corn-rich Iowa on Tuesday to announce he’ll suspend a federal rule preventing the sale of higher ethanol blend gasoline this summer as his administration tries to tamp down prices at the pump that have spiked during&nbsp;<a href="https://apnews.com/article/russia-ukraine-europe-7dd1f64818de5eadb86f12ad58e12a25">Russia’s war with Ukraine</a>.Most gasoline sold in the U.S. is&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-health-business-environment-covid-19-pandemic-f1c7a7c8e05247f3456e26d449d88ab3">blended with 10% ethanol</a>. The Environmental Protection Agency will issue an emergency waiver to allow widespread sale of&nbsp;<a href="https://apnews.com/article/donald-trump-environment-smog-clean-air-act-us-news-2fa4d36b2aa5418184a3833c69efc9f9">15% ethanol blend</a>&nbsp;that is usually prohibited between June 1 and Sept. 15 because of concerns that it adds to smog in high temperatures.Senior Biden administration officials said the move will save drivers an average of 10 cents per gallon at 2,300 gas stations. Industry groups say most of those stations are in the Midwest and the South, including Texas.Biden is to announce the move at a biofuel company in Menlo, west of Des Moines. Iowa is the country’s largest producer of corn, key to producing ethanol.The waiver is another effort to help ease&nbsp;<a href="https://apnews.com/article/climate-science-business-prices-opec-cf470e24ebc8b7bb4a74bf1ed50d5e6d">global energy markets</a>&nbsp;that have been rocked since&nbsp;<a href="https://apnews.com/article/russia-ukraine-europe-russia-moscow-kyiv-626a8c5ec22217bacb24ece60fac4fe1">Russia invaded Ukraine</a>. Last month, the president announced the U.S. will release&nbsp;<a href="https://apnews.com/article/russia-ukraine-biden-business-europe-3e1808077371b88ae043c86584763afd">1 million barrels of oil</a>&nbsp;per day from&nbsp;<a href="https://apnews.com/article/biden-business-prices-ae5200310e3d3c0390d9e1cbb3c5a964">the nation’s strategic petroleum reserve</a>&nbsp;over the next six months. His administration said that has helped to slightly reduce gas prices lately, after they climbed to an average of about $4.23 a gallon by the end of March, compared with $2.87 at the same time a year ago, according to AAA.Members of Congress from both parties, as well as industry groups, had urged Biden to grant the E15 waiver.“Homegrown Iowa biofuels provide a quick and clean solution for lowering prices at the pump and bolstering production would help us become energy independent once again,″ said Iowa Republican Sen. Chuck Grassley. He was among nine Republican and seven Democratic senators from Midwestern states who sent Biden a letter last month urging him to allow year-round E15 sales.The trip will be Biden’s first as president to Iowa, where his 2020 presidential campaign limped to&nbsp;<a href="https://apnews.com/article/ap-top-news-in-state-wire-ia-state-wire-caucuses-joe-biden-53a3df6f615b9cec6e12c216307f0624">a fourth-place finish</a>&nbsp;in the state’s technologically glitchy caucus.After bouncing back to win&nbsp;<a href="https://apnews.com/bb261be1a4ca285b9422b2f6b93d8d75">the Democratic nomination</a>, Biden returned for a rally at the Iowa state fairgrounds four days before Election Day 2020, only to see Donald Trump&nbsp;<a href="https://apnews.com/article/election-2020-joe-biden-hillary-clinton-iowa-iowa-city-3652c57038446e453516b9370c1ab243">win the state</a>&nbsp;by 8 percentage points.Biden heads back to the state at a moment when he’s facing yet more political peril. He’s saddled with&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-joe-biden-business-health-inflation-6b6b0abfef867fc405e9f358ce2c3a09">sagging approval ratings</a>&nbsp;and&nbsp;<a href="https://apnews.com/article/us-inflation-soars-776c03520c90083894fedf31f1a7db00">inflation at a 40-year high</a>&nbsp;while his party faces&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-health-georgia-donald-trump-2ad863083ef6a097dc5785977c7bd9aa">the prospect of big midterm election losses that could cost it control of Congress</a>.The president also planned to promote his economic plans to help rural families struggling with higher costs, while highlighting&nbsp;<a href="https://apnews.com/article/joe-biden-technology-business-broadband-internet-congress-d89d6bb1b39cd9c67ae9fc91f5eb4c0d">the $1 trillion bipartisan infrastructure law</a>&nbsp;enacted last fall. The law includes money to improve internet access, as well as for modernizing wastewater systems, reducing flooding threats and improving roads and bridges, drinking water and electric grids in sparsely populated areas.“Part of it is showing up in communities of all sizes, regardless of the results of the last election,” said Jesse Harris, who was a senior adviser to Biden’s 2020 campaign in Iowa and directed get out the vote and early voting efforts for Barack Obama’s presidential campaign in 2008.Harris said most presidents who visit Iowa typically go to the state’s largest cities. Hitting an area like Menlo, part of Guthrie County, which backed Trump over Biden by 35 percentage points in 2020, “does speak to the importance the administration places on infrastructure broadly but also infrastructure in rural and smaller communities.”The Biden administration plans to spend the coming weeks pushing billions of dollars in funding for rural areas. Cabinet members and other senior officials will travel the country to help communities get access to money available as part of the infrastructure package.“The president is not making this trip through a political prism,” White House press secretary Jen Psaki said. “He’s making this trip because Iowa is a rural state in the country that would benefit greatly from the president’s policies.”Still, administration officials have long suggested that Biden travel more to promote an economy that is rebounding from the setbacks of&nbsp;<a href="https://apnews.com/hub/coronavirus-pandemic">the coronavirus pandemic</a>. The number of Americans collecting&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-health-unemployment-jobless-claims-aea70c27cbaebdb732cf7426e37a5b58">unemployment has fallen to the lowest levels since 1970</a>, for example.But much of the positive jobs news nationally has been overshadowed by surging gas, food and housing prices that have pushed consumer inflation to 7.9% over the past year ending in February. That’s the sharpest spike since 1982. Inflation figures for March, due out Tuesday, are likely to bring more bad news for the Biden administration.“Maybe a trip back to Iowa will be just what Joe Biden needs to understand what his reckless spending, big government policies are doing to our country,” Iowa Republican Party Chairman Jeff Kaufmann said in a statement.After Iowa, Biden will visit Greensboro, North Carolina, on Thursday.Psaki blamed Russia’s war in Ukraine for helping to drive up gas prices and said the administration expects the consumer price index for March to be “extremely elevated” in large part because of it.The EPA has lifted seasonal restrictions on E15 in the past, including after&nbsp;<a href="https://apnews.com/hub/hurricane-harvey">Hurricane Harvey</a>&nbsp;in 2017. The Trump administration allowed for selling E15 in the summer months two years later but had the rule struck down by a federal appeals court.___

Biden waiving ethanol rule in bid to lower gasoline prices

DETROIT (AP) — Canadian Teamsters and CP Rail blamed each other for a work stoppage Sunday that brought trains to a halt across Canada and interrupted fertilizer and other shipments to and from the U.S.

More than 3,000 Canadian Pacific Rail conductors, engineers, train and yard workers represented by the Teamsters Canada Rail Conference are off the job after both sides couldn't reach a deal by a midnight deadline.

Both sides say they are still talking with federal mediators.

Canadian Pacific covers much of the U.S. Midwest and is a large shipper of potash and fertilizer for agriculture. It also carries grain from the U.S. to its northern neighbor for domestic use and exports. The railroad serves the Dakotas, Minnesota, Iowa, Illinois, Wisconsin, Missouri and other states, according to a map on its investor website. CP also operates in New England and upstate New York, spokesman Patrick Waldron said.

CP says it's the leading carrier of potash, a plant nutrient used in the production of multiple crops. The company says in investor documents that it carries 70% of the potash produced in North America, all from mines in Saskatchewan.

The railroad says it also carries fertilizers, including phosphate, urea, ammonium sulfate, ammonium nitrate and anhydrous ammonia. About half its fertilizer shipments originate from processing plants in Alberta.

CP got 29% of its 2020 freight revenue from cross-border shipments between the U.S. and Canada, its investor website said.

A lengthy interruption of fertilizer shipments could hurt U.S. farmers, who are nearing the spring planting season. The work stoppage could also exacerbate existing supply chain bottlenecks in the U.S. and Canada that stem from the COVID-19 pandemic.

U.S. trains were not affected by the work stoppage, but the railroad cannot make shipments between the two nations, Waldron said.

On Saturday, the Teamsters said in a statement that the company had locked the workers out, but later issued another statement saying the workers were also on strike.

The original statement posted to the Teamsters Canada Rail Conference website late Saturday said the union wanted to continue bargaining but the company "chose to put the Canadian supply chain and tens of thousands of jobs at risk.″

"As Canadians grapple with a never-ending pandemic, exploding commodity prices and the war in Ukraine, the rail carrier is adding an unnecessary layer of insecurity, especially for those who depend on the rail network,″ the statement said.

CP Rail, Canada’s second-largest railroad operator, said it was the company that wanted to keep talking, and the union that pulled its employees off the job.

CP President Keith Creel said in a news release the union "failed to respond″ to a new offer presented by mediators before the midnight deadline.

“Instead, the TCRC opted to withdraw their services before the deadline for a strike or lockout could legally take place,″ he said. "The TCRC is well aware of the damage this reckless action will cause to the Canadian supply chain.″

Labor Minister Seamus O’Regan urged the two sides to keep bargaining.

The Canadian and U.S. supply chains also were hit by&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-health-detroit-canada-20f273b32bfa8ef695fdabcc7e11321e">trucker convoy protests&nbsp;</a>blocking border crossings in February, and now are dealing with&nbsp;<a href="https://apnews.com/article/russia-ukraine-putin-biden-business-europe-b20d71c150712fe2e6dc3d44af8d1268">the effects, particularly on global fuel supplies, of the Russian invasion in Ukraine and sanctions imposed by the U.S. and its allies.</a>

All the disruptions pushed inflation to its highest level since the early 1980s, with essentials such as food and fuel facing some of the sharpest price hikes.

CP and the union have been negotiating since September, with wages and pensions a sticking point. A clause on where employees take their federally mandated break periods is also an issue.

CP Rail says this is the fifth work stoppage since 1993.

DETROIT (AP) — Canadian Teamsters and CP Rail blamed each other for a work stoppage Sunday that brought trains to a halt across Canada and interrupted fertilizer and other shipments to and from the U.S.More than 3,000 Canadian Pacific Rail conductors, engineers, train and yard workers represented by the Teamsters Canada Rail Conference are off the job after both sides couldn't reach a deal by a midnight deadline.Both sides say they are still talking with federal mediators.Canadian Pacific covers much of the U.S. Midwest and is a large shipper of potash and fertilizer for agriculture. It also carries grain from the U.S. to its northern neighbor for domestic use and exports. The railroad serves the Dakotas, Minnesota, Iowa, Illinois, Wisconsin, Missouri and other states, according to a map on its investor website. CP also operates in New England and upstate New York, spokesman Patrick Waldron said.CP says it's the leading carrier of potash, a plant nutrient used in the production of multiple crops. The company says in investor documents that it carries 70% of the potash produced in North America, all from mines in Saskatchewan.The railroad says it also carries fertilizers, including phosphate, urea, ammonium sulfate, ammonium nitrate and anhydrous ammonia. About half its fertilizer shipments originate from processing plants in Alberta.CP got 29% of its 2020 freight revenue from cross-border shipments between the U.S. and Canada, its investor website said.A lengthy interruption of fertilizer shipments could hurt U.S. farmers, who are nearing the spring planting season. The work stoppage could also exacerbate existing supply chain bottlenecks in the U.S. and Canada that stem from the COVID-19 pandemic.U.S. trains were not affected by the work stoppage, but the railroad cannot make shipments between the two nations, Waldron said.On Saturday, the Teamsters said in a statement that the company had locked the workers out, but later issued another statement saying the workers were also on strike.The original statement posted to the Teamsters Canada Rail Conference website late Saturday said the union wanted to continue bargaining but the company "chose to put the Canadian supply chain and tens of thousands of jobs at risk.″"As Canadians grapple with a never-ending pandemic, exploding commodity prices and the war in Ukraine, the rail carrier is adding an unnecessary layer of insecurity, especially for those who depend on the rail network,″ the statement said.CP Rail, Canada’s second-largest railroad operator, said it was the company that wanted to keep talking, and the union that pulled its employees off the job.CP President Keith Creel said in a news release the union "failed to respond″ to a new offer presented by mediators before the midnight deadline.“Instead, the TCRC opted to withdraw their services before the deadline for a strike or lockout could legally take place,″ he said. "The TCRC is well aware of the damage this reckless action will cause to the Canadian supply chain.″Labor Minister Seamus O’Regan urged the two sides to keep bargaining.The Canadian and U.S. supply chains also were hit by&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-health-detroit-canada-20f273b32bfa8ef695fdabcc7e11321e">trucker convoy protests&nbsp;</a>blocking border crossings in February, and now are dealing with&nbsp;<a href="https://apnews.com/article/russia-ukraine-putin-biden-business-europe-b20d71c150712fe2e6dc3d44af8d1268">the effects, particularly on global fuel supplies, of the Russian invasion in Ukraine and sanctions imposed by the U.S. and its allies.</a>All the disruptions pushed inflation to its highest level since the early 1980s, with essentials such as food and fuel facing some of the sharpest price hikes.CP and the union have been negotiating since September, with wages and pensions a sticking point. A clause on where employees take their federally mandated break periods is also an issue.CP Rail says this is the fifth work stoppage since 1993.

Canadian Pacific rail work stoppage could hit U.S. agriculture

NEW YORK (AP) — U.S. regulators on Monday cleared the way for the sale of beef from gene-edited cattle in coming years after the Food and Drug Administration concluded the animals do not raise any safety concerns.

The cattle by Recombinetics are the third genetically altered animals given the green light for human consumption in the U.S. after salmon and pigs. Many other foods already are made with genetically modified ingredients from crops like soybeans and corn.

The cattle reviewed by the FDA had genes altered with a technology called CRISPR to have short, slick coats that let them more easily withstand hot weather. Cattle that aren’t stressed by heat might pack on weight more easily, making for more efficient meat production.

The company did not say when home cooks or restaurants might be able to buy the beef, but the FDA said it could reach the market in as early as two years.

Unlike the salmon and pigs, the cattle did not have to go through a yearslong approval process. The FDA said the cattle were exempt from that because their genetic makeup is similar to other existing cattle and the trait can be found naturally in some breeds.

Dr. Steven Solomon, director of the FDA’s Center for Veterinary Medicine, said the agency’s review of Recombinetics' cattle took several months. He said there’s no reason meat from the animals or their offspring would need to be labeled differently.

Solomon said a genetically altered animal marketed as having a special advantage — such a higher than normal ability to withstand heat — might need to go through the full approval process.

“This opens up a completely different pathway,” he said, noting the decision could be encouraging for other biotech companies, many of which are small startups.

The gene-edited trait in the Recombinetics cattle can be passed down so semen and embryos from them could be used to produce offspring with the same shorter coats.

The trait will make beef production more sustainable and to improve animal welfare in warmer climates, Recombinetics said in a statement without providing further details.

Greg Jaffe, who specializes in biotechnology at the Center for Science in the Public Interest, said the FDA’s announcement made clear it wasn't exempting all gene-edited animals from the longer approval process.

“They reinforce the idea that this is a case-by-case review,” Jaffe said.

He said the agency should be more transparent about the review process so people know what's in the works. That could lead to better public acceptance and minimize any potential economic disruptions from global trade, since other countries might consider the animals genetically modified foods that need to be labeled, he said.

Jaydee Hanson, of the Center for Food Safety, said the agency should keep track of the animals for several generations to ensure there aren’t any unintended issues.

The genetically modified pig is intended mainly for medical purposes, not meat, according to the company that developed it. The firm recently provided a pig heart that was transplanted into a dying man in an experimental surgery.

The company behind the modified salmon said the fish are being sold to distributors in the Midwest and Northeast.

Alison Van Eenennaam, an animal geneticist at University of California, Davis who has worked with Recombinetics, said requiring all companies to go through the lengthy approval process could end the possibility of commercializing gene-edited animals in the U.S.

For the gene-edited cattle cleared by the FDA, she said it could take about two years for beef from the offspring to reach the market.

Once the semen is used to create embryos, she said gestation would take about nine months and the resulting calves might be slaughtered after about 10 months. She noted the market isn’t limited to the U.S., given the way cattle are bred.

“Let’s face it, bull semen goes all over the world,” she said.

<figure>
 <img src="https://media.eaglewebservices.com/public/2020/5/1590681306227.jpeg" alt="Image from Pixabay&nbsp;" />
 <figcaption>Image from Pixabay&nbsp;</figcaption>
 </figure>By CANDICE CHOI, Associated PressNEW YORK (AP) — U.S. regulators on Monday cleared the way for the sale of beef from gene-edited cattle in coming years after the Food and Drug Administration concluded the animals do not raise any safety concerns.The cattle by Recombinetics are the third genetically altered animals given the green light for human consumption in the U.S. after salmon and pigs. Many other foods already are made with genetically modified ingredients from crops like soybeans and corn.The cattle reviewed by the FDA had genes altered with a technology called CRISPR to have short, slick coats that let them more easily withstand hot weather. Cattle that aren’t stressed by heat might pack on weight more easily, making for more efficient meat production.The company did not say when home cooks or restaurants might be able to buy the beef, but the FDA said it could reach the market in as early as two years.Unlike the salmon and pigs, the cattle did not have to go through a yearslong approval process. The FDA said the cattle were exempt from that because their genetic makeup is similar to other existing cattle and the trait can be found naturally in some breeds.Dr. Steven Solomon, director of the FDA’s Center for Veterinary Medicine, said the agency’s review of Recombinetics' cattle took several months. He said there’s no reason meat from the animals or their offspring would need to be labeled differently.Solomon said a genetically altered animal marketed as having a special advantage — such a higher than normal ability to withstand heat — might need to go through the full approval process.“This opens up a completely different pathway,” he said, noting the decision could be encouraging for other biotech companies, many of which are small startups.The gene-edited trait in the Recombinetics cattle can be passed down so semen and embryos from them could be used to produce offspring with the same shorter coats.The trait will make beef production more sustainable and to improve animal welfare in warmer climates, Recombinetics said in a statement without providing further details.Greg Jaffe, who specializes in biotechnology at the Center for Science in the Public Interest, said the FDA’s announcement made clear it wasn't exempting all gene-edited animals from the longer approval process.“They reinforce the idea that this is a case-by-case review,” Jaffe said.He said the agency should be more transparent about the review process so people know what's in the works. That could lead to better public acceptance and minimize any potential economic disruptions from global trade, since other countries might consider the animals genetically modified foods that need to be labeled, he said.Jaydee Hanson, of the Center for Food Safety, said the agency should keep track of the animals for several generations to ensure there aren’t any unintended issues.The genetically modified pig is intended mainly for medical purposes, not meat, according to the company that developed it. The firm recently provided a pig heart that was transplanted into a dying man in an experimental surgery.The company behind the modified salmon said the fish are being sold to distributors in the Midwest and Northeast.Alison Van Eenennaam, an animal geneticist at University of California, Davis who has worked with Recombinetics, said requiring all companies to go through the lengthy approval process could end the possibility of commercializing gene-edited animals in the U.S.For the gene-edited cattle cleared by the FDA, she said it could take about two years for beef from the offspring to reach the market.Once the semen is used to create embryos, she said gestation would take about nine months and the resulting calves might be slaughtered after about 10 months. She noted the market isn’t limited to the U.S., given the way cattle are bred.“Let’s face it, bull semen goes all over the world,” she said.

Gene-edited beef cattle get regulatory clearance in US

By JARED STRONG <a href="https://nebraskaexaminer.com/2022/02/07/usda-pledges-1b-for-climate-smart-ag-products/">Iowa Capital Dispatch</a>

The U.S.
 Department of Agriculture plans to spend up to $1 billion to foster the
 creation of climate-friendly agricultural and forestry products by 
offering grants to facilitate their production and the markets to sell 
them.

The goal is to reduce greenhouse gas emissions or sequester carbon in those industries.

“Agriculture is such an exciting but 
challenging, critical but dynamic space. It’s easy to make the case to 
young people to get engaged in this,” U.S. Secretary of Agriculture Tom 
Vilsack said Monday in announcing the program at Missouri’s Lincoln 
University, a historically Black university with a robust agricultural 
program. “It’s at the heart of our fight against climate change.”

The U.S. Environmental Protection Agency 
estimates that about 10% of the country’s greenhouse gas emissions — 
which are key drivers of a warming climate — come from agriculture, 
especially livestock production. Cattle are agriculture’s primary 
emitters of methane, a potent greenhouse gas.

The USDA’s new Partnerships for 
Climate-Smart Commodities program will provide up to $100 million for 
individual pilot projects to plan and implement emission-reducing 
practices, create new markets to sell the products that result from 
those practices and quantify the effectiveness of the practices.

Measuring livestock emissions has long been a
 tricky proposition for federal regulators. An example: The U.S. 
Environmental Protection Agency suspended its enforcement of the Clean 
Air Act as it might pertain to animal confinements about 16 years ago as
 it seeks to develop a reliable way to measure the buildings’ emissions.

Beef production is potentially a bigger 
quandary because the animals are often raised in open-air lots. However,
 researchers have been able to estimate the average annual methane 
production from cows and how much it can be reduced with <a href="https://www.unh.edu/unhtoday/2020/01/unh-scientists-expand-seaweed-research-benefit-regions-dairy-farmers" target="_blank">specialized diets</a>.

The <a href="https://www.usda.gov/climate-solutions/climate-smart-commodities" target="_blank">new USDA grant program</a>
 is open to a wide variety of entities: businesses, nonprofit 
organizations, governments, Native American tribal governments and 
organizations, and colleges and universities.

The department has set an April 8 deadline 
for proposals that range from $5 million to $100 million and a May 27 
deadline for those that would cost less than $5 million, according to 
the department’s <a href="https://www.usda.gov/sites/default/files/documents/climate-smart-nfo-usda-nrcs-comm-22-nofo0001139-02062022-web-final.pdf" target="_blank">public Notice</a><a href="https://www.usda.gov/sites/default/files/documents/climate-smart-nfo-usda-nrcs-comm-22-nofo0001139-02062022-web-final.pdf" target="_blank"> of Funding Opportunity.</a>
 Small and “historically underserved” agricultural producers and 
“minority-serving institutions” will get priority, the notice says.

“This might look, for example, like a group 
of small farmers working with a nonprofit to implement and quantify 
climate-smart practices in partnership with a retailer,” Vilsack said. 
“Or it could be a network of commodity organizations recruiting 
specialty crop farmers to quantify reduced emissions and market the 
resulting products. It may be a farmer-partner organization working with
 universities to test innovative approaches to monitor and verify 
climate benefits to aid in marketing. It could be all of that or any of 
it, along with a lot of other ideas and concepts.”

Vilsack did not say whether the products 
would bear a “climate smart” label that is subject to USDA 
certification, similar to organic foods.

This article first appeared in the&nbsp;<a target="_blank" href="https://iowacapitaldispatch.com">Iowa Capital Dispatch</a>, a sister site of the Nebraska Examiner in the States Newsroom&nbsp;network.

<figure>
 <img src="https://media.eaglewebservices.com/public/2022/2/1644333577889.png" alt="U.S. Secretary of Agriculture Tom Vilsack announced a $1 billion grant program to boost agricultural and forestry products that are made with reduced greenhouse gas emissions. (Screenshot from USDA video)" />
 <figcaption>U.S. Secretary of Agriculture Tom Vilsack announced a $1 billion grant program to boost agricultural and forestry products that are made with reduced greenhouse gas emissions. (Screenshot from USDA video)</figcaption>
 </figure>By JARED STRONG <a href="https://nebraskaexaminer.com/2022/02/07/usda-pledges-1b-for-climate-smart-ag-products/">Iowa Capital Dispatch</a>The U.S.
 Department of Agriculture plans to spend up to $1 billion to foster the
 creation of climate-friendly agricultural and forestry products by 
offering grants to facilitate their production and the markets to sell 
them.The goal is to reduce greenhouse gas emissions or sequester carbon in those industries.“Agriculture is such an exciting but 
challenging, critical but dynamic space. It’s easy to make the case to 
young people to get engaged in this,” U.S. Secretary of Agriculture Tom 
Vilsack said Monday in announcing the program at Missouri’s Lincoln 
University, a historically Black university with a robust agricultural 
program. “It’s at the heart of our fight against climate change.”The U.S. Environmental Protection Agency 
estimates that about 10% of the country’s greenhouse gas emissions — 
which are key drivers of a warming climate — come from agriculture, 
especially livestock production. Cattle are agriculture’s primary 
emitters of methane, a potent greenhouse gas.The USDA’s new Partnerships for 
Climate-Smart Commodities program will provide up to $100 million for 
individual pilot projects to plan and implement emission-reducing 
practices, create new markets to sell the products that result from 
those practices and quantify the effectiveness of the practices.Measuring livestock emissions has long been a
 tricky proposition for federal regulators. An example: The U.S. 
Environmental Protection Agency suspended its enforcement of the Clean 
Air Act as it might pertain to animal confinements about 16 years ago as
 it seeks to develop a reliable way to measure the buildings’ emissions.Beef production is potentially a bigger 
quandary because the animals are often raised in open-air lots. However,
 researchers have been able to estimate the average annual methane 
production from cows and how much it can be reduced with <a href="https://www.unh.edu/unhtoday/2020/01/unh-scientists-expand-seaweed-research-benefit-regions-dairy-farmers" target="_blank">specialized diets</a>.The <a href="https://www.usda.gov/climate-solutions/climate-smart-commodities" target="_blank">new USDA grant program</a>
 is open to a wide variety of entities: businesses, nonprofit 
organizations, governments, Native American tribal governments and 
organizations, and colleges and universities.The department has set an April 8 deadline 
for proposals that range from $5 million to $100 million and a May 27 
deadline for those that would cost less than $5 million, according to 
the department’s <a href="https://www.usda.gov/sites/default/files/documents/climate-smart-nfo-usda-nrcs-comm-22-nofo0001139-02062022-web-final.pdf" target="_blank">public Notice</a><a href="https://www.usda.gov/sites/default/files/documents/climate-smart-nfo-usda-nrcs-comm-22-nofo0001139-02062022-web-final.pdf" target="_blank"> of Funding Opportunity.</a>
 Small and “historically underserved” agricultural producers and 
“minority-serving institutions” will get priority, the notice says.“This might look, for example, like a group 
of small farmers working with a nonprofit to implement and quantify 
climate-smart practices in partnership with a retailer,” Vilsack said. 
“Or it could be a network of commodity organizations recruiting 
specialty crop farmers to quantify reduced emissions and market the 
resulting products. It may be a farmer-partner organization working with
 universities to test innovative approaches to monitor and verify 
climate benefits to aid in marketing. It could be all of that or any of 
it, along with a lot of other ideas and concepts.”Vilsack did not say whether the products 
would bear a “climate smart” label that is subject to USDA 
certification, similar to organic foods.This article first appeared in the&nbsp;<a target="_blank" href="https://iowacapitaldispatch.com">Iowa Capital Dispatch</a>, a sister site of the Nebraska Examiner in the States Newsroom&nbsp;network.

USDA pledges $1B for ‘climate smart’ ag products

WASHINGTON (AP) — President Joe Biden met virtually with independent farmers and ranchers on Monday to discuss initiatives to reduce&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-lifestyle-health-business-poland-f559465c6a822d12b2dd513f122d5a31">food prices</a>&nbsp;by increasing competition within the meat industry, part of a broader effort to show his administration is trying to&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-joe-biden-health-business-richard-nixon-ae06d5cccf066239f9aa7f06491c7698">combat inflation</a>.

“Capitalism without competition isn’t capitalism — it’s exploitation,” Biden said.

Higher-than-expected inflation has thwarted Biden’s agenda, hurt his public approval rating, become fodder for Republican attacks and prompted&nbsp;<a href="https://apnews.com/article/manchin-rejects-biden-spending-bill-democrats-election-e7a0ca4c25c686e91cb21e166c44821b">Sen. Joe Manchin, D-W.Va.</a>, to cite higher prices as a reason to sideline the Democratic president’s tax, social and economic programs. In November, consumer prices&nbsp;<a href="https://apnews.com/article/latest-inflation-numbers-consumer-prices-616055db3bf67691b4fdc0015fc00783">rose 6.8%</a>&nbsp;over the prior 12 months — a 39-year high.

On food costs, Biden is building off a&nbsp;<a href="https://www.whitehouse.gov/briefing-room/presidential-actions/2021/07/09/executive-order-on-promoting-competition-in-the-american-economy/" target="_blank">July executive order</a>&nbsp;that directed the Agriculture Department to more aggressively look at possible violations of the 1921 Packers and Stockyards Act, which was designed to ensure fair competition and protect consumers. Meat prices have climbed 16% from a year ago, with beef prices up 20.9%.

The president said the higher prices have been the subject of frustration at his own kitchen table. His wife, Jill, was talking on Sunday with her sister and a friend about a pound of hamburger meat costing $5 a pound, compared with less than $4 before the pandemic.

The administration is targeting meat processing plants, which can shape the prices paid to farmers and charged to consumers. The White House issued a&nbsp;<a href="https://www.whitehouse.gov/briefing-room/statements-releases/2022/01/03/fact-sheet-the-biden-harris-action-plan-for-a-fairer-more-competitive-and-more-resilient-meat-and-poultry-supply-chain/" target="_blank">fact sheet</a>&nbsp;saying that the top four companies control 85% of the beef market. In poultry, the biggest four processing firms control 54% of the market. And for pork, the figure is 70% for the four biggest firms.

Many industry groups are pushing back against the administration’s planned oversight of the food industry.

Neil Bradley, executive vice president and chief policy officer at the U.S. Chamber of Commerce, said the coronavirus and higher costs for energy and labor are driving meat prices higher, not the corporate structure of the industry.

Bradley said the administration is practicing politics instead of economics and “government intervention would likely further constrain supply and push prices even higher.”

Mike Brown, president of the National Chicken Council, said, “This looks like a solution in search of a problem.” He said the administration is using the food industry as a “scapegoat for the significant challenges facing our economy. ”

Biden outlined plans to distribute $1 billion from the&nbsp;<a href="https://apnews.com/article/house-vote-coronavirus-relief-package-33f4902ca9a2aed4e76274af6bb2ea5c">coronavirus relief package</a>&nbsp;to help independent meat processors expand. He also highlighted money to train workers in the industry and improve conditions, as well as issue new rules for meatpackers and labeling requirements for being designated a “Product of USA.”

The Justice Department and the Agriculture Department will launch a joint effort to make it easier to report anti-competitive actions to the government. The administration will also seek to improve the transparency of the cattle market, with Biden saying, “A free market isn’t truly free without transparency around prices.”

The effort is part of a broader attempt to regain control of America’s economic narrative. Besides inflation, the repeated&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-lifestyle-health-travel-80caac77e0cfed7e0e08cfa024ed3a9b">waves of coronavirus outbreak</a>&nbsp;have dampened people’s opinions about the economy despite&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-health-economy-gross-domestic-product-119b8182404771d0362da6d0d49891c0">strong growth</a>&nbsp;over the past year.

Biden will have an opportunity to highlight the economy’s strengths with the December jobs report being released Friday. Economists surveyed by FactSet expect that the United States added 362,000 jobs last month with the unemployment rate ticking down to 4.1%. Gains of that magnitude would indicate that the U.S. added roughly 6.5 million jobs last year, more than in any other previous year in a reflection of population growth and government spending.

<figure>
 <img src="https://media.eaglewebservices.com/public/2022/1/1641245951468.png" alt="The president said the higher prices have been the subject of frustration at his own kitchen table. His wife, Jill, was talking on Sunday with her sister and a friend about a pound of hamburger meat costing $5 a pound, compared with less than $4 before the pandemic-White House photo" />
 <figcaption>The president said the higher prices have been the subject of frustration at his own kitchen table. His wife, Jill, was talking on Sunday with her sister and a friend about a pound of hamburger meat costing $5 a pound, compared with less than $4 before the pandemic-White House photo</figcaption>
 </figure>WASHINGTON (AP) — President Joe Biden met virtually with independent farmers and ranchers on Monday to discuss initiatives to reduce&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-lifestyle-health-business-poland-f559465c6a822d12b2dd513f122d5a31">food prices</a>&nbsp;by increasing competition within the meat industry, part of a broader effort to show his administration is trying to&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-joe-biden-health-business-richard-nixon-ae06d5cccf066239f9aa7f06491c7698">combat inflation</a>.<div><iframe src="https://www.facebook.com/plugins/video.php?height=314&href=https%3A%2F%2Fwww.facebook.com%2FWhiteHouse%2Fvideos%2F1615116315497364%2F&show_text=true&width=560&t=70" width="560" height="429" style="border:none;overflow:hidden" scrolling="no" frameborder="0" allowfullscreen="true" allow="autoplay; clipboard-write; encrypted-media; picture-in-picture; web-share" allowFullScreen="true"></iframe></div>“Capitalism without competition isn’t capitalism — it’s exploitation,” Biden said.Higher-than-expected inflation has thwarted Biden’s agenda, hurt his public approval rating, become fodder for Republican attacks and prompted&nbsp;<a href="https://apnews.com/article/manchin-rejects-biden-spending-bill-democrats-election-e7a0ca4c25c686e91cb21e166c44821b">Sen. Joe Manchin, D-W.Va.</a>, to cite higher prices as a reason to sideline the Democratic president’s tax, social and economic programs. In November, consumer prices&nbsp;<a href="https://apnews.com/article/latest-inflation-numbers-consumer-prices-616055db3bf67691b4fdc0015fc00783">rose 6.8%</a>&nbsp;over the prior 12 months — a 39-year high.On food costs, Biden is building off a&nbsp;<a href="https://www.whitehouse.gov/briefing-room/presidential-actions/2021/07/09/executive-order-on-promoting-competition-in-the-american-economy/" target="_blank">July executive order</a>&nbsp;that directed the Agriculture Department to more aggressively look at possible violations of the 1921 Packers and Stockyards Act, which was designed to ensure fair competition and protect consumers. Meat prices have climbed 16% from a year ago, with beef prices up 20.9%.The president said the higher prices have been the subject of frustration at his own kitchen table. His wife, Jill, was talking on Sunday with her sister and a friend about a pound of hamburger meat costing $5 a pound, compared with less than $4 before the pandemic.The administration is targeting meat processing plants, which can shape the prices paid to farmers and charged to consumers. The White House issued a&nbsp;<a href="https://www.whitehouse.gov/briefing-room/statements-releases/2022/01/03/fact-sheet-the-biden-harris-action-plan-for-a-fairer-more-competitive-and-more-resilient-meat-and-poultry-supply-chain/" target="_blank">fact sheet</a>&nbsp;saying that the top four companies control 85% of the beef market. In poultry, the biggest four processing firms control 54% of the market. And for pork, the figure is 70% for the four biggest firms.Many industry groups are pushing back against the administration’s planned oversight of the food industry.Neil Bradley, executive vice president and chief policy officer at the U.S. Chamber of Commerce, said the coronavirus and higher costs for energy and labor are driving meat prices higher, not the corporate structure of the industry.Bradley said the administration is practicing politics instead of economics and “government intervention would likely further constrain supply and push prices even higher.”Mike Brown, president of the National Chicken Council, said, “This looks like a solution in search of a problem.” He said the administration is using the food industry as a “scapegoat for the significant challenges facing our economy. ”Biden outlined plans to distribute $1 billion from the&nbsp;<a href="https://apnews.com/article/house-vote-coronavirus-relief-package-33f4902ca9a2aed4e76274af6bb2ea5c">coronavirus relief package</a>&nbsp;to help independent meat processors expand. He also highlighted money to train workers in the industry and improve conditions, as well as issue new rules for meatpackers and labeling requirements for being designated a “Product of USA.”The Justice Department and the Agriculture Department will launch a joint effort to make it easier to report anti-competitive actions to the government. The administration will also seek to improve the transparency of the cattle market, with Biden saying, “A free market isn’t truly free without transparency around prices.”The effort is part of a broader attempt to regain control of America’s economic narrative. Besides inflation, the repeated&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-lifestyle-health-travel-80caac77e0cfed7e0e08cfa024ed3a9b">waves of coronavirus outbreak</a>&nbsp;have dampened people’s opinions about the economy despite&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-health-economy-gross-domestic-product-119b8182404771d0362da6d0d49891c0">strong growth</a>&nbsp;over the past year.Biden will have an opportunity to highlight the economy’s strengths with the December jobs report being released Friday. Economists surveyed by FactSet expect that the United States added 362,000 jobs last month with the unemployment rate ticking down to 4.1%. Gains of that magnitude would indicate that the U.S. added roughly 6.5 million jobs last year, more than in any other previous year in a reflection of population growth and government spending.___

🎥 Biden talks with farmers, ranchers on reducing food prices

DETROIT (AP) — Deere &amp; Co. workers approved a new contract Wednesday that will deliver 10% raises immediately and end a monthlong strike for more than 10,000 employees.

The United Auto Workers union said 61% of its members approved the deal with the tractor maker on their third vote, even though this offer was strikingly similar to one that 55% of workers&nbsp;<a href="https://apnews.com/article/business-health-strikes-united-auto-workers-7124f0d5f729c0a722e62c87c94fc14a">rejected two weeks ago</a>.

Deere workers — and other unions — have been emboldened to ask for more this year because of the ongoing worker shortages and because workers didn’t always feel appreciated while working long hours during the pandemic.

This latest proposal made only modest changes to the details of Deere’s internal incentive pay plan. The new contract covers 12 plants in Iowa, Illinois and Kansas where the Moline, Illinois-based company’s iconic John Deere green agricultural and construction equipment is made.

The company said work would resume on Wednesday night.

<figure>
 <img src="https://media.eaglewebservices.com/public/2021/10/1634596496067.png" alt="The strike began Oct. 14 -Photo courtesy WQAD TV" />
 <figcaption>The strike began Oct. 14 -Photo courtesy WQAD TV</figcaption>
 </figure>DETROIT (AP) — Deere &amp; Co. workers approved a new contract Wednesday that will deliver 10% raises immediately and end a monthlong strike for more than 10,000 employees.The United Auto Workers union said 61% of its members approved the deal with the tractor maker on their third vote, even though this offer was strikingly similar to one that 55% of workers&nbsp;<a href="https://apnews.com/article/business-health-strikes-united-auto-workers-7124f0d5f729c0a722e62c87c94fc14a">rejected two weeks ago</a>.Deere workers — and other unions — have been emboldened to ask for more this year because of the ongoing worker shortages and because workers didn’t always feel appreciated while working long hours during the pandemic.This latest proposal made only modest changes to the details of Deere’s internal incentive pay plan. The new contract covers 12 plants in Iowa, Illinois and Kansas where the Moline, Illinois-based company’s iconic John Deere green agricultural and construction equipment is made.The company said work would resume on Wednesday night.

Deere workers approve 3rd contract offer, will end strike

WASHINGTON (AP) — President Joe Biden signed his $1 trillion infrastructure deal into law Monday on the White House lawn, hailing it as an example of what bipartisanship can achieve.

<a href="https://www.c-span.org/video/?516100-1/president-biden-signs-bipartisan-infrastructure-bill&amp;live">Click here </a>to watch the President's comments

The president hopes to use the law to build back his popularity and says it will deliver jobs, clean water, high-speed internet and a clean energy future. Support for Biden has taken a hit amid rising inflation and the inability to fully shake the public health and economic risks from COVID-19.

A smattering of Republican lawmakers were on hand for what might be one the last celebratory displays of bipartisanship ahead of the 2022 midterm elections.

“My message to the American people is this: America is moving again and your life is going to change for the better,” Biden said.

<figure>
 <img src="https://media.eaglewebservices.com/public/2021/11/1637009964663.png" alt="President Biden and Vice President Kamala Harris embrace ahead of Monday's bill signing-photo courtesy White House" />
 <figcaption>President Biden and Vice President Kamala Harris embrace ahead of Monday's bill signing-photo courtesy White House</figcaption>
 </figure>WASHINGTON (AP) — President Joe Biden signed his $1 trillion infrastructure deal into law Monday on the White House lawn, hailing it as an example of what bipartisanship can achieve.<a href="https://www.c-span.org/video/?516100-1/president-biden-signs-bipartisan-infrastructure-bill&amp;live">Click here </a>to watch the President's commentsThe president hopes to use the law to build back his popularity and says it will deliver jobs, clean water, high-speed internet and a clean energy future. Support for Biden has taken a hit amid rising inflation and the inability to fully shake the public health and economic risks from COVID-19.A smattering of Republican lawmakers were on hand for what might be one the last celebratory displays of bipartisanship ahead of the 2022 midterm elections.<figure>
 <img src="https://media.eaglewebservices.com/public/2021/11/1637013446903.png" alt="Photo courtesy White. House" />
 <figcaption>Photo courtesy White. House</figcaption>
 </figure>“My message to the American people is this: America is moving again and your life is going to change for the better,” Biden said.

🎥 Pres. Biden signs $1T infrastructure plan into law

MOLINE, IL.&nbsp; (AP) —Deere executives said Wednesday that the company wouldn’t return to the bargaining table with striking workers because it wouldn’t offer a better contract than one they rejected that included immediate 10% raises.

Marc Howze, the chief administrative officer of Deere &amp; Co., said the deal the United Auto Workers&nbsp;<a href="https://apnews.com/article/business-health-strikes-united-auto-workers-7124f0d5f729c0a722e62c87c94fc14a">union rejected</a>&nbsp;on Tuesday represented the most it could offer and still keep its costs competitive.

Howze declined to discuss how much the ongoing strike is costing Deere, which will release its next earnings report later this month. The&nbsp;<a href="https://apnews.com/article/business-illinois-moline-united-auto-workers-7e85b3d6aa34955f7c0be633e201c87f">disputed contract</a>&nbsp;would cover more than 10,000 Deere workers at 12 facilities in Iowa, Illinois and Kansas, who make the company’s iconic John Deere green tractors and other equipment.

The company plans to reach out to employees directly now to stress the virtues of its offer while it tries to keep its plants running with salaried employees and other workers to meet customer commitments. Other Deere plants globally are also working to pick up the slack.

“We want to make sure they understand the value of the agreement, to make sure they understand that there is nothing to be gained by continuing to hold out,” Howze said. “To some degree, because we were able to come to a resolution as quickly as we were, I think there’s some folks who believe there must be some more available.”

In addition to the initial raises, this week’s offer included 5% raises in the third and fifth years of the six-year deal, and it would have provided an $8,500 ratification bonus, preserved a pension option for new employees, made workers eligible for health insurance sooner and maintained their no-premium health insurance coverage.

UAW spokesman Brian Rothenberg said union leaders were meeting to discuss their next moves. With a majority of workers voting against the latest offer, union officials face demands to deliver more but that might be difficult given the Moline, Illinois-based company’s stance. And pressure to reach a settlement will mount the longer workers go without pay.

The vote Tuesday was much closer than when 90% of the workers&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-united-auto-workers-moline-strikes-447c2d911c1314c247011522e30f9bd2">rejected the company’s first offer</a>&nbsp;last month, but 55% of the workers still rejected the latest offer. Workers have been encouraged to seek more now because of the current worker shortages and Deere’s strong profits.

“It seems general membership feels emboldened by this current political moment of labor power. They’re pushing things further than the union leadership apparently wants to go,” said Victor Chen, a sociologist at Virginia Commonwealth University who studies labor. “It’s a gamble, but the economic wind is against their backs, given widespread supply chain problems and the current worker shortage.”

Deere officials, who have predicted that the company will report record profits of between $5.7 billion and $5.9 billion this fiscal year, don’t want to miss out on sales to farmers who are ready to buy thanks to strong crop prices. The U.S. Department of Agriculture predicts that farmers’ net income will increase by nearly 20% this year, to $113 billion.

Observers say the rejection of the deal shows pent-up anger among Deere workers over how much of its profits the company has been willing to share with workers.

“Although the proposed contract was a significant improvement over the previous offer, the Deere workers evidently felt that the company could afford more,” Fordham University sociologist Chris Rhomberg said. “For decades, wages across the economy have lagged behind productivity growth, and workers may be tired of seeing the gains from their efforts go predominantly to corporations making record-breaking earnings.”

Now the challenge for the UAW and Deere will be finding a way to resolve their differences in a way that workers will accept, said Todd Vachon, a former member of a carpenter’s union who now teaches about labor relations at Rutgers University.

“There is always the risk of overplaying one’s hand — on both sides, really,” Vachon said. “It appears the final mile will likely involve some changes to work rules and working conditions in addition to just wage increases.”

The longer the strike continues, the more painful it will become for everyone, Creighton University economist Ernie Goss said.

“During the dragging on, both sides lose,” Goss said. “Workers are looking at lost income. John Deere is looking at lost sales. So they both have sort of guns pointing at each other’s heads, economically speaking.”

<figure>
 <img src="https://media.eaglewebservices.com/public/2021/10/1634596496067.png" alt="The strike began Oct. 14 after union members overwhelmingly rejected a proposed contract that would have delivered only 5% raises to some workers and 6% raises to others depending on their positions in the factory.-Photo courtesy WQAD TV" />
 <figcaption>The strike began Oct. 14 after union members overwhelmingly rejected a proposed contract that would have delivered only 5% raises to some workers and 6% raises to others depending on their positions in the factory.-Photo courtesy WQAD TV</figcaption>
 </figure>MOLINE, IL.&nbsp; (AP) —Deere executives said Wednesday that the company wouldn’t return to the bargaining table with striking workers because it wouldn’t offer a better contract than one they rejected that included immediate 10% raises.Marc Howze, the chief administrative officer of Deere &amp; Co., said the deal the United Auto Workers&nbsp;<a href="https://apnews.com/article/business-health-strikes-united-auto-workers-7124f0d5f729c0a722e62c87c94fc14a">union rejected</a>&nbsp;on Tuesday represented the most it could offer and still keep its costs competitive.Howze declined to discuss how much the ongoing strike is costing Deere, which will release its next earnings report later this month. The&nbsp;<a href="https://apnews.com/article/business-illinois-moline-united-auto-workers-7e85b3d6aa34955f7c0be633e201c87f">disputed contract</a>&nbsp;would cover more than 10,000 Deere workers at 12 facilities in Iowa, Illinois and Kansas, who make the company’s iconic John Deere green tractors and other equipment.The company plans to reach out to employees directly now to stress the virtues of its offer while it tries to keep its plants running with salaried employees and other workers to meet customer commitments. Other Deere plants globally are also working to pick up the slack.“We want to make sure they understand the value of the agreement, to make sure they understand that there is nothing to be gained by continuing to hold out,” Howze said. “To some degree, because we were able to come to a resolution as quickly as we were, I think there’s some folks who believe there must be some more available.”In addition to the initial raises, this week’s offer included 5% raises in the third and fifth years of the six-year deal, and it would have provided an $8,500 ratification bonus, preserved a pension option for new employees, made workers eligible for health insurance sooner and maintained their no-premium health insurance coverage.UAW spokesman Brian Rothenberg said union leaders were meeting to discuss their next moves. With a majority of workers voting against the latest offer, union officials face demands to deliver more but that might be difficult given the Moline, Illinois-based company’s stance. And pressure to reach a settlement will mount the longer workers go without pay.The vote Tuesday was much closer than when 90% of the workers&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-united-auto-workers-moline-strikes-447c2d911c1314c247011522e30f9bd2">rejected the company’s first offer</a>&nbsp;last month, but 55% of the workers still rejected the latest offer. Workers have been encouraged to seek more now because of the current worker shortages and Deere’s strong profits.“It seems general membership feels emboldened by this current political moment of labor power. They’re pushing things further than the union leadership apparently wants to go,” said Victor Chen, a sociologist at Virginia Commonwealth University who studies labor. “It’s a gamble, but the economic wind is against their backs, given widespread supply chain problems and the current worker shortage.”ADVERTISEMENTDeere officials, who have predicted that the company will report record profits of between $5.7 billion and $5.9 billion this fiscal year, don’t want to miss out on sales to farmers who are ready to buy thanks to strong crop prices. The U.S. Department of Agriculture predicts that farmers’ net income will increase by nearly 20% this year, to $113 billion.Observers say the rejection of the deal shows pent-up anger among Deere workers over how much of its profits the company has been willing to share with workers.“Although the proposed contract was a significant improvement over the previous offer, the Deere workers evidently felt that the company could afford more,” Fordham University sociologist Chris Rhomberg said. “For decades, wages across the economy have lagged behind productivity growth, and workers may be tired of seeing the gains from their efforts go predominantly to corporations making record-breaking earnings.”Now the challenge for the UAW and Deere will be finding a way to resolve their differences in a way that workers will accept, said Todd Vachon, a former member of a carpenter’s union who now teaches about labor relations at Rutgers University.“There is always the risk of overplaying one’s hand — on both sides, really,” Vachon said. “It appears the final mile will likely involve some changes to work rules and working conditions in addition to just wage increases.”The longer the strike continues, the more painful it will become for everyone, Creighton University economist Ernie Goss said.“During the dragging on, both sides lose,” Goss said. “Workers are looking at lost income. John Deere is looking at lost sales. So they both have sort of guns pointing at each other’s heads, economically speaking.”

Deere warns striking workers as walkout moves into 4th week

MOLINE, IL (AP) —Most workers at Deere &amp; Co. rejected a contract offer Tuesday that would have given them 10% raises and decided to remain on strike in the hopes of securing a better deal.

The raises in the&nbsp;<a href="https://apnews.com/article/business-illinois-moline-united-auto-workers-7e85b3d6aa34955f7c0be633e201c87f">new agreement</a>&nbsp;reached over the weekend were twice as big as the ones in the original offer United Auto Workers union members rejected last month, but those raises and improved benefits weren’t enough to end the&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-united-auto-workers-moline-strikes-447c2d911c1314c247011522e30f9bd2">strike that began</a>&nbsp;on Oct. 14. The new agreement also would have provided an $8,500 ratification bonus, preserved a pension option for new employees, made workers eligible for health insurance sooner and maintained their no-premium health insurance coverage.

The disputed contract covers more than 10,000 Deere workers at 12 facilities in Iowa, Illinois and Kansas. A smaller group of about 100 workers at two Deere facilities in Colorado and Georgia voted to accept an identical deal.

The union said 55% of its members at the 12 main plants voted against this latest contract offer Tuesday.

Last month, 90% of union members also rejected a proposed contract that included immediate 5% raises for some workers and 6% for others, and 3% raises in 2023 and 2025.

Deere officials said they were disappointed the agreement was voted down.

“Through the agreements reached with the UAW, John Deere would have invested an additional $3.5 billion in our employees, and by extension, our communities, to significantly enhance wages and benefits that were already the best and most comprehensive in our industries,” said Marc A. Howze, Deere’s chief administrative officer. “This investment was the right one for Deere, our employees, and everyone we serve together.”

Tuesday’s vote means that the first major strike since 1986 will continue at the maker of agriculture and construction equipment. Currently, many companies are dealing with worker shortages, making workers feel&nbsp;<a href="https://apnews.com/article/business-health-coronavirus-pandemic-4895e84ab6ed4bb61e9cb8d6c0bcfad5">emboldened&nbsp;</a>to demand more.

Forklift operator Irving Griffin, who has been with Deere for 11 years, told&nbsp;<a href="https://www.desmoinesregister.com/story/money/business/2021/11/02/john-deere-strikers-uaw-told-nation-watching-afl-cio-president-liz-shuler/6180383001/" target="_blank">the Des Moines Register</a>&nbsp;Monday that he planned to vote against the contract because he believed the company can offer even more.

Griffin said he thought workers should hold out for a better offer even though workers are receiving only $275 a week from the union while they’re on strike.

“Now is the best time to strike and take a stand for what we’re really worth,” he said to the newspaper.

Sales have been strong at the Moline, Illinois-based company this year as the economy continued to recover from the pandemic. Deere has predicted it will report record profits this year between $5.7 billion and $5.9 billion.

<figure>
 <img src="https://media.eaglewebservices.com/public/2021/10/1634596496067.png" alt="The strike began Oct. 14 after union members overwhelmingly rejected a proposed contract that would have delivered 5% raises to some workers and 6% raises to others depending on their positions in the factory.-Photo courtesy WQAD TV" />
 <figcaption>The strike began Oct. 14 after union members overwhelmingly rejected a proposed contract that would have delivered 5% raises to some workers and 6% raises to others depending on their positions in the factory.-Photo courtesy WQAD TV</figcaption>
 </figure>MOLINE, IL (AP) —Most workers at Deere &amp; Co. rejected a contract offer Tuesday that would have given them 10% raises and decided to remain on strike in the hopes of securing a better deal.The raises in the&nbsp;<a href="https://apnews.com/article/business-illinois-moline-united-auto-workers-7e85b3d6aa34955f7c0be633e201c87f">new agreement</a>&nbsp;reached over the weekend were twice as big as the ones in the original offer United Auto Workers union members rejected last month, but those raises and improved benefits weren’t enough to end the&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-united-auto-workers-moline-strikes-447c2d911c1314c247011522e30f9bd2">strike that began</a>&nbsp;on Oct. 14. The new agreement also would have provided an $8,500 ratification bonus, preserved a pension option for new employees, made workers eligible for health insurance sooner and maintained their no-premium health insurance coverage.The disputed contract covers more than 10,000 Deere workers at 12 facilities in Iowa, Illinois and Kansas. A smaller group of about 100 workers at two Deere facilities in Colorado and Georgia voted to accept an identical deal.The union said 55% of its members at the 12 main plants voted against this latest contract offer Tuesday.Last month, 90% of union members also rejected a proposed contract that included immediate 5% raises for some workers and 6% for others, and 3% raises in 2023 and 2025.Deere officials said they were disappointed the agreement was voted down.“Through the agreements reached with the UAW, John Deere would have invested an additional $3.5 billion in our employees, and by extension, our communities, to significantly enhance wages and benefits that were already the best and most comprehensive in our industries,” said Marc A. Howze, Deere’s chief administrative officer. “This investment was the right one for Deere, our employees, and everyone we serve together.”Tuesday’s vote means that the first major strike since 1986 will continue at the maker of agriculture and construction equipment. Currently, many companies are dealing with worker shortages, making workers feel&nbsp;<a href="https://apnews.com/article/business-health-coronavirus-pandemic-4895e84ab6ed4bb61e9cb8d6c0bcfad5">emboldened&nbsp;</a>to demand more.Forklift operator Irving Griffin, who has been with Deere for 11 years, told&nbsp;<a href="https://www.desmoinesregister.com/story/money/business/2021/11/02/john-deere-strikers-uaw-told-nation-watching-afl-cio-president-liz-shuler/6180383001/" target="_blank">the Des Moines Register</a>&nbsp;Monday that he planned to vote against the contract because he believed the company can offer even more.Griffin said he thought workers should hold out for a better offer even though workers are receiving only $275 a week from the union while they’re on strike.“Now is the best time to strike and take a stand for what we’re really worth,” he said to the newspaper.Sales have been strong at the Moline, Illinois-based company this year as the economy continued to recover from the pandemic. Deere has predicted it will report record profits this year between $5.7 billion and $5.9 billion.

Deere employees reject contract offer, will stay on strike

MOLINE, Ill. (AP) — Union workers at Deere &amp; Co. would get wage increases of 10% in the first year and 5% each in the third and fifth years under a tentative contract reached between the farm-equipment maker and the United Auto Workers union.

The workers would get 3% lump sums in the second, fourth and sixth years of the deal. They would also get a ratification bonus of $8,500 and no changes in the cost of their health insurance, according to a summary of the agreement posted Sunday on the union website.

The company and the UAW reached a tentative agreement Saturday that would cover more than 10,000 workers at 12 Deere locations in&nbsp;<a href="https://www.usnews.com/news/best-states/iowa">Iowa</a>,&nbsp;<a href="https://www.usnews.com/news/best-states/illinois">Illinois</a>&nbsp;and&nbsp;<a href="https://www.usnews.com/news/best-states/kansas">Kansas</a>. However, a strike that began Oct. 14 will continue while workers review the terms of the deal ahead of a ratification vote.

Union members previously rejected a proposed contract that included immediate 5% raises for some workers and 6% for others, and 3% raises in 2023 and 2025.

The Moline, Illinois-based company reported $4.7 billion in net income for the first nine months of its fiscal year, more than double the $2 billion of the same period a year earlier.

A labor shortage affecting many industries also gave workers more leverage to demand better pay and benefits.

<figure>
 <img src="https://media.eaglewebservices.com/public/2021/10/1634596496067.png" alt="The strike began Oct. 14 after union members overwhelmingly rejected a proposed contract that would have delivered 5% raises to some workers and 6% raises to others depending on their positions in the factory.-Photo courtesy WQAD TV" />
 <figcaption>The strike began Oct. 14 after union members overwhelmingly rejected a proposed contract that would have delivered 5% raises to some workers and 6% raises to others depending on their positions in the factory.-Photo courtesy WQAD TV</figcaption>
 </figure>MOLINE, Ill. (AP) — Union workers at Deere &amp; Co. would get wage increases of 10% in the first year and 5% each in the third and fifth years under a tentative contract reached between the farm-equipment maker and the United Auto Workers union.The workers would get 3% lump sums in the second, fourth and sixth years of the deal. They would also get a ratification bonus of $8,500 and no changes in the cost of their health insurance, according to a summary of the agreement posted Sunday on the union website.The company and the UAW reached a tentative agreement Saturday that would cover more than 10,000 workers at 12 Deere locations in&nbsp;<a href="https://www.usnews.com/news/best-states/iowa">Iowa</a>,&nbsp;<a href="https://www.usnews.com/news/best-states/illinois">Illinois</a>&nbsp;and&nbsp;<a href="https://www.usnews.com/news/best-states/kansas">Kansas</a>. However, a strike that began Oct. 14 will continue while workers review the terms of the deal ahead of a ratification vote.Union members previously rejected a proposed contract that included immediate 5% raises for some workers and 6% for others, and 3% raises in 2023 and 2025.The Moline, Illinois-based company reported $4.7 billion in net income for the first nine months of its fiscal year, more than double the $2 billion of the same period a year earlier.A labor shortage affecting many industries also gave workers more leverage to demand better pay and benefits.

Deere workers would get immediate 10% raises under new offer

KANSAS CITY (AP) — A judge on Wednesday issued a temporary restraining order that details how picketing workers at the Deere &amp; Co. plant in Davenport must conduct themselves.

In seeking the injunction Wednesday, Deere officials alleged that striking workers had disrupted access to the Davenport Works plant and put others at risk.

District Court Judge Marlita Greve ordered the union to allow only four picketers at a time near the gates of the plant. The order also banned the use of chairs and barrel fires, and prohibited picketers from harassing or intimidating people entering and leaving the plant.

Deere spokeswoman Jen Hartmann said the company sought the injunction to provide a safe environment for contractors and employees, including those participating in the strike.

The injunction prohibits picketing or congregating “near the Contractor Gate entrance,” which is regarded a neutral gate that cannot be picketed, according to Deere.

The United Automobile, Aerospace and Agricultural Implement Workers of America&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-united-auto-workers-moline-strikes-447c2d911c1314c247011522e30f9bd2">went on strike&nbsp;</a>on Oct. 14 after union members overwhelmingly rejected a proposed contract. Contract negotiations have resumed.

U.S. Secretary of Agriculture and former Iowa Gov. Tom Vilsack met with striking workers Wednesday at Deere’s plant in Ankeny. Vilsack told the union workers that he stood with them, noting the UAW had long supported him in his political career, WHO-TV&nbsp;<a href="https://who13.com/news/tom-vilsack-repays-support-to-uaw-members-with-visit-to-john-deere-picket-line/" target="_blank">reported</a>.

A contract would cover 10,000 striking workers at 14 Deere plants, including seven in Iowa, four in Illinois and one each in Kansas, Colorado and Georgia.

<figure>
 <img src="https://media.eaglewebservices.com/public/2021/10/1634596496067.png" alt="The strike began Oct. 14 after union members overwhelmingly rejected a proposed contract that would have delivered 5% raises to some workers and 6% raises to others depending on their positions in the factory.-Photo courtesy WQAD TV" />
 <figcaption>The strike began Oct. 14 after union members overwhelmingly rejected a proposed contract that would have delivered 5% raises to some workers and 6% raises to others depending on their positions in the factory.-Photo courtesy WQAD TV</figcaption>
 </figure>KANSAS CITY (AP) — A judge on Wednesday issued a temporary restraining order that details how picketing workers at the Deere &amp; Co. plant in Davenport must conduct themselves.In seeking the injunction Wednesday, Deere officials alleged that striking workers had disrupted access to the Davenport Works plant and put others at risk.District Court Judge Marlita Greve ordered the union to allow only four picketers at a time near the gates of the plant. The order also banned the use of chairs and barrel fires, and prohibited picketers from harassing or intimidating people entering and leaving the plant.Deere spokeswoman Jen Hartmann said the company sought the injunction to provide a safe environment for contractors and employees, including those participating in the strike.The injunction prohibits picketing or congregating “near the Contractor Gate entrance,” which is regarded a neutral gate that cannot be picketed, according to Deere.The United Automobile, Aerospace and Agricultural Implement Workers of America&nbsp;<a href="https://apnews.com/article/coronavirus-pandemic-business-united-auto-workers-moline-strikes-447c2d911c1314c247011522e30f9bd2">went on strike&nbsp;</a>on Oct. 14 after union members overwhelmingly rejected a proposed contract. Contract negotiations have resumed.U.S. Secretary of Agriculture and former Iowa Gov. Tom Vilsack met with striking workers Wednesday at Deere’s plant in Ankeny. Vilsack told the union workers that he stood with them, noting the UAW had long supported him in his political career, WHO-TV&nbsp;<a href="https://who13.com/news/tom-vilsack-repays-support-to-uaw-members-with-visit-to-john-deere-picket-line/" target="_blank">reported</a>.A contract would cover 10,000 striking workers at 14 Deere plants, including seven in Iowa, four in Illinois and one each in Kansas, Colorado and Georgia.

Restraining order: Strike at Deere plants moves into 2nd week

MOLINE, Ill. (AP) — Contract talks between Deere &amp; Co. and its 10,000 striking workers have resumed, but it wasn't immediately clear how far apart the two sides remained Monday.

Both the Moline,&nbsp;Illinois-based company and the United Auto Workers union confirmed that talks had resumed.

The strike began last Thursday after union members overwhelmingly rejected a proposed contract that would have delivered 5% raises to some workers and 6% raises to others depending on their positions in the factory.

Deere spokeswoman Jen Hartmann said the company remains “committed to the collective bargaining process and resolving the strike.”

The last major strike at the maker of agricultural and construction equipment came in 1986. This year's strike comes as companies are dealing with worker shortages. Deere had predicted it would report record profits this year between $5.7 billion and $5.9 billion on strong sales.

The contracts under negotiation cover 14 Deere plants, including seven in&nbsp;<a href="https://www.usnews.com/news/best-states/iowa">Iowa</a>, four in Illinois and one each in&nbsp;Kansas,&nbsp;Colorado&nbsp;and&nbsp;Georgia.

<figure>
 <img src="https://media.eaglewebservices.com/public/2021/10/1634596496067.png" alt="The strike began last Thursday after union members overwhelmingly rejected a proposed contract that would have delivered 5% raises to some workers and 6% raises to others depending on their positions in the factory.-Photo courtesy WQAD TV" />
 <figcaption>The strike began last Thursday after union members overwhelmingly rejected a proposed contract that would have delivered 5% raises to some workers and 6% raises to others depending on their positions in the factory.-Photo courtesy WQAD TV</figcaption>
 </figure>MOLINE, Ill. (AP) — Contract talks between Deere &amp; Co. and its 10,000 striking workers have resumed, but it wasn't immediately clear how far apart the two sides remained Monday.Both the Moline,&nbsp;Illinois-based company and the United Auto Workers union confirmed that talks had resumed.The strike began last Thursday after union members overwhelmingly rejected a proposed contract that would have delivered 5% raises to some workers and 6% raises to others depending on their positions in the factory.Deere spokeswoman Jen Hartmann said the company remains “committed to the collective bargaining process and resolving the strike.”The last major strike at the maker of agricultural and construction equipment came in 1986. This year's strike comes as companies are dealing with worker shortages. Deere had predicted it would report record profits this year between $5.7 billion and $5.9 billion on strong sales.The contracts under negotiation cover 14 Deere plants, including seven in&nbsp;<a href="https://www.usnews.com/news/best-states/iowa">Iowa</a>, four in Illinois and one each in&nbsp;Kansas,&nbsp;Colorado&nbsp;and&nbsp;Georgia.

Contract talks resume between Deere and its striking workers

By DANIAL VOCK <a href="https://kansasreflector.com/2021/09/19/struggle-over-tax-break-for-inherited-farmland-churns-below-surface-in-reconciliation-bill/">Kansas Reflector</a>

WASHINGTON — Agricultural groups and 
farm-state lawmakers notched a significant win when U.S. House Democrats
 chose not to touch a big tax break for inherited property, avoiding for
 now a confrontation.

But opponents remain wary
 that the idea could come back at any time as Democrats shape their 
massive $3.5 trillion budget reconciliation package, and search for ways
 to help pay for the most significant expansion of the social safety net
 since the New Deal.

Farm lobbies and Republicans, along 
with influential Democrats like House Agriculture Chairman David Scott 
of Georgia, strongly objected to tax changes that President Joe Biden 
proposed in his “Build Back Better” plan for farmland and other assets 
handed from one generation to the next.&nbsp;

Biden, along with Agriculture 
Secretary Tom Vilsack, wanted to end the “stepped-up basis” for 
determining capital gains taxes on those assets. Vilsack, the former 
governor of Iowa, has taken to the pages of The Wall Street Journal and
 popped into a White House press briefing to make the case that closing 
loopholes like these is necessary to make sure the wealthy pay their 
fair share.

Over the next decade, the 
administration’s plan for taxing farmland inheritances could bring in as
 much as $322 billion in new federal tax revenues.

But U.S. Rep. Randy Feenstra, an Iowa
 Republican, said farmers in his district have been complaining to him 
about the proposal ever since it was unveiled earlier this year. The 
farmers, he said, are worried that a new tax scheme would make it 
impossible to keep farms in the family.

“Let’s say a mom and dad bought their
 farm at $2,000 an acre, and now it’s worth $12,000 an acre. If they 
want to give it to their son or daughter or whoever, (the heir) would 
have to pay tax on the difference of that,” Feenstra said in an 
interview with States Newsroom.

“A son or a daughter wouldn’t have 
that money, so they’d have to sell the land to pay the tax,” he 
continued. The buyer would most likely be a large corporation, not a 
local farmer, he said. “That’s why so many people are worried that it 
will destroy the family farm, literally destroy the family farm.”

Proponents for the change say those 
concerns are overblown or easily addressed through policy tweaks. But 
the emotional pleas to save small-town America appear to have won this 
round.

Democrats on the House Ways and Means
 Committee, the group that handled the tax aspects of Biden’s economic 
revival plan, left out the president’s proposed changes to the 
stepped-up basis when they approved their piece of the reconciliation 
bill last week.

The idea could reemerge later, as the
 package continues its journey through the House and Senate. But the 
committee’s decision reflects how politically radioactive the idea has 
become.&nbsp;

Several <a target="_blank" href="https://axne.house.gov/sites/axne.house.gov/files/5.6.21%20Stepped%20Up%20Basis%20Final.pdf">Democrats balked</a> at Biden’s proposal, as well. Scott, the chair of the House Agriculture Committee, <a target="_blank" href="https://agriculture.house.gov/uploadedfiles/06022021letter.pdf?utm_campaign=1099-520">wrote the president</a>
 in June, arguing that the stepped-up basis was “a critical tool 
enabling family farming operations to continue from generation to 
generation.”

“I have been working tirelessly to 
ensure that stepped-up basis is protected,” Scott said in a statement 
last week, “and I am very pleased that the package released does not 
impact the benefit’s operation.”

But Vilsack, who owns 600 acres of 
farmland, argues that the stepped-up basis is really just a way for rich
 people to avoid paying taxes.

“This policy has allowed the wealthy to amass large fortunes,” Vilsack <a target="_blank" href="https://www.wsj.com/articles/vilsack-biden-tax-changes-step-up-in-basis-estate-death-tax-family-farm-small-business-11631116907">wrote</a> earlier this month in The Wall Street Journal.&nbsp;

“Millionaires and billionaires borrow
 against their assets, usually stock or real estate, but also art and 
collectibles, really anything a bank will lend against. When those 
assets are transferred upon death, their heirs can sell the property 
without being taxed to pay off the debt. This is one of the most popular
 ways the rich avoid taxation, and it must end.”

The agriculture secretary said Biden’s proposal had special protections for family farms.&nbsp;

First, the administration wanted to 
impose the capital gains tax only when the heir sold the property. So in
 Feenstra’s example, the son or daughter wouldn’t have to pay taxes when
 they inherited the farm, only when they sold it.&nbsp;

Second, Vilsack said that the Biden 
plan would exempt all capital gains of up to $2.5 million. He claimed 
that 95 percent of family farms would not owe anything with that level 
of an exemption.

Marc Goldwein, a senior vice 
president and senior policy director for the Committee for a Responsible
 Federal Budget, said the fact that House Democrats so far have not 
included changes to the stepped-up basis was a “discouraging starting 
point.”&nbsp;

Getting rid of the policy, he said, should be a “no-brainer.”

“You want tax policy that treats 
people in similar situations similarly, that doesn’t create bad 
incentives and that raises revenue in a progressive way,” he said. 
“Stepped-up basis fails all three of those.”

It makes no sense, he argued, that 
someone who sold their property the day before they died would have to 
pay capital gains on it, but that someone who inherited the same 
property and sold it a day later would have to pay none.&nbsp;

The policy encourages people to hold 
on to their assets longer than they otherwise would, just to avoid 
taxation. And it disproportionately benefits rich taxpayers, Goldwein 
said.&nbsp;&nbsp;

He also said the policy mostly affects people with assets other than farms.&nbsp;

A 2014 U.S. Treasury study, for 
example, found that farm assets made up only 2 percent of the fair 
market value of assets that are protected by the policy.&nbsp;

Stocks and bonds, on the other hand, made up more than half of the value of protected assets.

But Dustin Sherer, the director of 
congressional relations for the American Farm Bureau Federation, said 
the administration is underplaying the potential consequences for 
farmers if stepped-up basis is removed.

While Vilsack touted the 
administration’s proposed exemption of the first $2.5 million of capital
 gains, Sherer noted, that would not be enough to shield farmers with a 
typical 500-acre farm in Vilsack’s home state of Iowa.&nbsp;

There are more than 18,000 farms in Iowa that are bigger than 500 acres, Sherer said.

<figure>
 <img src="https://media.eaglewebservices.com/public/2021/9/1632147076214.jpeg" alt="Farm lobbies and Republicans object to changes in how taxes are applied to farmland and other assets as they are handed down from one generation to another. Pixabay photo" />
 <figcaption>Farm lobbies and Republicans object to changes in how taxes are applied to farmland and other assets as they are handed down from one generation to another. Pixabay photo</figcaption>
 </figure>By DANIAL VOCK <a href="https://kansasreflector.com/2021/09/19/struggle-over-tax-break-for-inherited-farmland-churns-below-surface-in-reconciliation-bill/">Kansas Reflector</a>WASHINGTON — Agricultural groups and 
farm-state lawmakers notched a significant win when U.S. House Democrats
 chose not to touch a big tax break for inherited property, avoiding for
 now a confrontation.But opponents remain wary
 that the idea could come back at any time as Democrats shape their 
massive $3.5 trillion budget reconciliation package, and search for ways
 to help pay for the most significant expansion of the social safety net
 since the New Deal.Farm lobbies and Republicans, along 
with influential Democrats like House Agriculture Chairman David Scott 
of Georgia, strongly objected to tax changes that President Joe Biden 
proposed in his “Build Back Better” plan for farmland and other assets 
handed from one generation to the next.&nbsp;Biden, along with Agriculture 
Secretary Tom Vilsack, wanted to end the “stepped-up basis” for 
determining capital gains taxes on those assets. Vilsack, the former 
governor of Iowa, has taken to the pages of The Wall Street Journal and
 popped into a White House press briefing to make the case that closing 
loopholes like these is necessary to make sure the wealthy pay their 
fair share.Over the next decade, the 
administration’s plan for taxing farmland inheritances could bring in as
 much as $322 billion in new federal tax revenues.But U.S. Rep. Randy Feenstra, an Iowa
 Republican, said farmers in his district have been complaining to him 
about the proposal ever since it was unveiled earlier this year. The 
farmers, he said, are worried that a new tax scheme would make it 
impossible to keep farms in the family.“Let’s say a mom and dad bought their
 farm at $2,000 an acre, and now it’s worth $12,000 an acre. If they 
want to give it to their son or daughter or whoever, (the heir) would 
have to pay tax on the difference of that,” Feenstra said in an 
interview with States Newsroom.“A son or a daughter wouldn’t have 
that money, so they’d have to sell the land to pay the tax,” he 
continued. The buyer would most likely be a large corporation, not a 
local farmer, he said. “That’s why so many people are worried that it 
will destroy the family farm, literally destroy the family farm.”<h2>Emotional pleas</h2>Proponents for the change say those 
concerns are overblown or easily addressed through policy tweaks. But 
the emotional pleas to save small-town America appear to have won this 
round.Democrats on the House Ways and Means
 Committee, the group that handled the tax aspects of Biden’s economic 
revival plan, left out the president’s proposed changes to the 
stepped-up basis when they approved their piece of the reconciliation 
bill last week.The idea could reemerge later, as the
 package continues its journey through the House and Senate. But the 
committee’s decision reflects how politically radioactive the idea has 
become.&nbsp;Several <a target="_blank" href="https://axne.house.gov/sites/axne.house.gov/files/5.6.21%20Stepped%20Up%20Basis%20Final.pdf">Democrats balked</a> at Biden’s proposal, as well. Scott, the chair of the House Agriculture Committee, <a target="_blank" href="https://agriculture.house.gov/uploadedfiles/06022021letter.pdf?utm_campaign=1099-520">wrote the president</a>
 in June, arguing that the stepped-up basis was “a critical tool 
enabling family farming operations to continue from generation to 
generation.”“I have been working tirelessly to 
ensure that stepped-up basis is protected,” Scott said in a statement 
last week, “and I am very pleased that the package released does not 
impact the benefit’s operation.”But Vilsack, who owns 600 acres of 
farmland, argues that the stepped-up basis is really just a way for rich
 people to avoid paying taxes.“This policy has allowed the wealthy to amass large fortunes,” Vilsack <a target="_blank" href="https://www.wsj.com/articles/vilsack-biden-tax-changes-step-up-in-basis-estate-death-tax-family-farm-small-business-11631116907">wrote</a> earlier this month in The Wall Street Journal.&nbsp;“Millionaires and billionaires borrow
 against their assets, usually stock or real estate, but also art and 
collectibles, really anything a bank will lend against. When those 
assets are transferred upon death, their heirs can sell the property 
without being taxed to pay off the debt. This is one of the most popular
 ways the rich avoid taxation, and it must end.”The agriculture secretary said Biden’s proposal had special protections for family farms.&nbsp;First, the administration wanted to 
impose the capital gains tax only when the heir sold the property. So in
 Feenstra’s example, the son or daughter wouldn’t have to pay taxes when
 they inherited the farm, only when they sold it.&nbsp;Second, Vilsack said that the Biden 
plan would exempt all capital gains of up to $2.5 million. He claimed 
that 95 percent of family farms would not owe anything with that level 
of an exemption.<h2>A no-brainer?</h2>Marc Goldwein, a senior vice 
president and senior policy director for the Committee for a Responsible
 Federal Budget, said the fact that House Democrats so far have not 
included changes to the stepped-up basis was a “discouraging starting 
point.”&nbsp;Getting rid of the policy, he said, should be a “no-brainer.” 
“You want tax policy that treats 
people in similar situations similarly, that doesn’t create bad 
incentives and that raises revenue in a progressive way,” he said. 
“Stepped-up basis fails all three of those.”It makes no sense, he argued, that 
someone who sold their property the day before they died would have to 
pay capital gains on it, but that someone who inherited the same 
property and sold it a day later would have to pay none.&nbsp;The policy encourages people to hold 
on to their assets longer than they otherwise would, just to avoid 
taxation. And it disproportionately benefits rich taxpayers, Goldwein 
said.&nbsp;&nbsp;He also said the policy mostly affects people with assets other than farms.&nbsp;A 2014 U.S. Treasury study, for 
example, found that farm assets made up only 2 percent of the fair 
market value of assets that are protected by the policy.&nbsp;Stocks and bonds, on the other hand, made up more than half of the value of protected assets.<h2>Consequences for farmers</h2>But Dustin Sherer, the director of 
congressional relations for the American Farm Bureau Federation, said 
the administration is underplaying the potential consequences for 
farmers if stepped-up basis is removed.While Vilsack touted the 
administration’s proposed exemption of the first $2.5 million of capital
 gains, Sherer noted, that would not be enough to shield farmers with a 
typical 500-acre farm in Vilsack’s home state of Iowa.&nbsp;There are more than 18,000 farms in Iowa that are bigger than 500 acres, Sherer said.“More to the point,” Sherer asked, “if you’re trying to go after billionaires, why is $2.5 million your exemption level?”And the administration’s proposal to 
impose the capital gains tax when property is sold, rather than when it 
is inherited, still causes problems, Sherer said.&nbsp;The lingering tax obligation would make it harder for the new property owner to take out a loan, for example.“It completely changes the dynamics of the transfer,” he said.Sherer said he was encouraged that 
the policy hasn’t gained traction in the House so far, but he worries 
that it could become part of the deal later.“As long as politicians in D.C. are looking for money to offset their spending, it’s not over,” he said.The reconciliation bill now goes to 
the House Budget Committee, which will consolidate input from other 
House committees. Speaker Nancy Pelosi has said she wants the full 
chamber to vote on the package before the end of the month, but that 
deadline could slip.&nbsp;Daniel C. Vock is a correspondent for the States Newsroom Washington, D.C., bureau.