NASHVILLE, Tenn. -- President Donald Trump pitched his efforts to help America's farmers and rural residents on Monday, promoting his tax overhaul law and economic development plans on a visit to Tennessee to speak at the American Farm Bureau Federation conference.
Trump's speech at the annual conference was his first policy address since Congress passed the $1.5 trillion tax overhaul. Trump is the first sitting president in 26 years to address the Farm Bureau.
While farmers overwhelmingly backed Trump in his 2016 campaign, some of his policies have raised concerns with them, including his threat to withdraw from the North American Free Trade Agreement, the tightening of immigration rules and cutting crop-insurance payments.
With the trip to Nashville, he unveiled a report the White House says will include proposals to stimulate a segment of the national economy that has lagged behind others.
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Trump said most of the benefits of the tax legislation are "going to working families, small businesses, and who, the family farmer."
The $1.5 trillion package that Trump signed into law last month provides generous tax cuts for corporations and the wealthiest Americans, and more modest reductions for middle- and low-income individuals and families.
Trump also highlighted the doubling of the threshold for the estate tax -- earning a standing ovation from the audience -- and the ability for companies to immediately write off the full cost of new equipment. He said that "in every decision we make, we are honoring America's proud farming legacy."
Central to the report is an assessment that the "provider for an equalization among rural America is connectivity; that high-speed internet should remain a high priority for the administration," said Ray Starling, the special assistant to the president for agriculture, trade and food assistance. The report calls for expediting federal permitting to allow for broadband internet expansion in rural areas and for making it easier for providers to place cell towers on federal lands.
Trump was set to make two moves on rural broadband Monday, with plans to sign an executive order and a memo that the White House described as "incremental," but the start of an effort to make progress on the issue. White House officials said all work was in the early stages and did not offer an overall timeline. Officials noted the price tag for rural broadband expansion has been estimated at $80 billion, but said the administration had not determined a cost.
Trump also called on Congress to renew the farm bill this year, adding he supports providing for federal crop insurance. The massive federal legislation funds federal agriculture and food policy, and it provides for rural communities.
Andrew Grobmyer, executive vice president of the Agricultural Council of Arkansas, said farmers have been struggling from depressed commodity prices for almost five years.
A safety net is available through the farm bill to soften the economic blow, "but it's frankly not enough if this economic environment persists," he said in an email.
The status of the Republican-led administration's farm bill and NAFTA, the trade agreement that offers key export markets for U.S. farmers and ranchers, are pending.
"We are concerned with what policies may emerge related to critical export markets as we can't afford to lose key export markets or miss out on new opportunities like rice to Cuba and China," Grobmyer said. "Hopefully we can make positive steps forward in trade development rather than steps backward."
Randy Veach, Arkansas Farm Bureau president, said he hopes President Trump understands what U.S. farmers have been going through and fulfills his promise of giving agriculture a seat at the table.
"We've been in economic difficulties over the last few years," Veach said. "From 2013 through 2016, net farm income has decreased almost 60 percent."
It's safe to say Arkansas is a microcosm for what's happening nationwide, because of its fairly even mix of crop and animal farmers, said Travis Justice, Arkansas Farm Bureau chief economist.
Following significant declines, livestock prices are projected to rise slightly this year, while crop prices remain at levels from almost 20 years ago, Justice said.
Poultry and rice growers are heavily reliant on export markets and the unknown status of NAFTA causes "a lot of our net revenue to be in the air," said Rich Hillman, Arkansas Farm Bureau vice president.
Arkansas egg and chicken exports generated roughly $384 million in sales, while rice, cotton and wheat exports generated about $330 million, 2016 Census data shows. Canada and Mexico are the state's primary export countries.
"Right now agriculture is wounded and we need some good years to put behind us to get back well," said Hillman, a sixth-generation farmer from Lonoke County.
From Nashville, Trump was scheduled to travel to Atlanta to watch Alabama's Crimson Tide and Georgia's Bulldogs face off Monday night in the College Football Playoff National Championship.
Information for this article was contributed by Zeke Miller and Catherine Lucey of The Associated Press, Alan Bjerga of Bloomberg News and Nathan Owens of the Arkansas Democrat-Gazette.
Business on 01/09/2018