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SAMPLE DRAFT LETTER January
XX, 2008 The Honorable XXXXX Dear Senator: OR The Honorable XXXXX U. S. House of Representatives Dear Representative: The conference between the House and Senate
regarding the Farm Bill will convene shortly. The [organization, farm or individual] asks you to support the inclusion
of several provisions that are in the Senate version of the Farm Bill and
provide parity to horse owners in the final bill to be considered by Congress. These include:
A fuller explanation is attached. These provisions are supported by all
aspects of the horse industry and will end the disparate treatment of horses
and horse breeders and ranchers versus other livestock producers. The [organization,
farm or individual] includes XXXX members who are involved in the
agri-business of breeding and raising horses. The As you consider the final version of the
Farm Bill, please support the inclusion of the Senate provisions noted above in
the Conference Report.
Sincerely, Senate Farm Bill Provisions Beneficial to Horses The Food and Energy Security Act of 2007
(H.R. 2419) passed by the Senate on December 14, 2007 includes several
provisions that would benefit the horse industry. Section 5404. Making Equine Farmers and Ranchers
Eligible for Emergency Loans This provision would make horse breeders
eligible for emergency federal loans following a disaster by including ¡°equine
farmers and ranchers¡± within the class of eligible producers. Horse breeders and horses have not been
eligible in the past for these loans, which have been available to other
livestock producers for some time.
But horse breeders suffer losses caused by hurricanes, drought, ice,
floods and other natural disasters just like other livestock producers do. This provision would end the disparate
treatment of horse breeders by making them eligible for emergency loans under
the same conditions and limits as other livestock producers. Senate Bill: Title V - Subtitle E Section 5404. Eligibility of Equine
Farmers and Ranchers for Emergency Loans. [Page 780] Section
901(a)(8)(F).
Inclusion of Horses within Livestock for Permanent Disaster Assistance
Program The Senate Farm Bill initiates a permanent
Agricultural Disaster Relief Trust Fund that would provide relief funds to
farmers and ranchers who suffer losses in areas that are declared disaster
areas by USDA. Section 901(a)(8)(F) of Section 12101 specifically includes ¡°horses¡±
within the definition of livestock eligible for the program. Senate Bill: Title XII ¨C Section 12001 - Subtitle A ¨CSection 12101
Section 901(a)(8)(F)
defines eligible livestock to include ¡°horses.¡± [Page 1589] Section 12509. Asset Treatment of Horses This provision would: (1) place all
racehorses in the three-year category for depreciation purposes; and (2)
shorten the capital gains holding period for horses from 24 months to 12
months. This change would end
the disparate treatment of the horse industry versus other businesses under the
federal tax code. Senate
Bill: Title XII ¨C Part I of Subtitle E Section
12509 provides for the asset treatment of horses. [Page 1793] Background Federal Emergency
Assistance Programs. The horse industry is hurt by floods,
droughts, fire, ice storms and hurricanes just like other industries that
produce livestock and crops. If a
breeding farm or ranch loses horses because of floods, tornadoes or other
natural disasters, it has lost its ¡°crop¡± and has nothing to sell. When grazing lands are lost because of
flood or drought, and feed and hay must be purchased
for horses, a breeder might have to sell his horses at distressed prices
because he/she could no longer afford to provide for them. While other livestock producers are
eligible for low-interest loans and other federal assistance following a
disaster, horse breeders are not. The changes in the Senate Farm bill would
provide federal emergency assistance to horse breeders similar to that
available to other livestock producers now. These changes would help them to keep
their breeding operations rather than selling them or cutting back on
them. These amendments would treat horse breeders
and ranchers like other livestock breeders; no better, but no worse. Tax Changes.
Under the federal tax code, gains from sales of property used in a trade
or business, including horses, qualify for long-term capital gains.
Unfortunately, horses held for breeding, racing, showing or draft purposes
generally qualify for the 15% capital gains rate only if they are held for 24
months. All other business assets
qualify if held for 12 months.
Passage of this provision would end this discriminatory treatment of
horses under the tax code. Race horses are depreciated over either
three or seven years, depending on their age when ¡°placed in service.¡± Current law provides that racehorses
that begin training at the end of their yearling year are depreciated over
seven-years, even though most will not actually race for seven years. This provision recognizes the unreality
of this requirement by changing the tax code to allow owners to depreciate all
their race horses over three years, rather than seven, regardless of when they
are placed in service. The change
would provide for a more equitable depreciation schedule for race horses, one
that better matches the realities of the situation. The horse industry has a $102 billion
economic impact on the The industry has been working to make
horses eligible for federal emergency programs under the same circumstances,
limits and requirements that producers of other livestock must satisfy. Such federal treatment under disaster
situations would finally rectify the unfair situation facing horse owners and
breeders, as would changes to the tax code. House-Senate
Conference ¨C Support Senate Provisions The House passed its version of the Farm
Bill last summer. The House bill
does not include the provisions described above applicable to horse
owners. As Congress considers the Farm Bill, please
support the inclusion of the Senate Farm Bill provisions noted above in the
Conference Report. House Agriculture Committee Democrats
Tim Holden, PA, Vice Chairman Mike McIntyre, Bob Etheridge, Joe Baca, CA David Scott, GA Jim Marshall, Stephanie Herseth Sandlin , Henry Cuellar, TX Jim Costa, CA John T. Salazar, CO Brad Ellsworth, Nancy E. Boyda, KS Zachary T. Space, OH Timothy J. Walz, MN Steve Kagen, WI Earl Pomeroy, ND Lincoln Davis, John Barrow, GA Tim Maloney, FL Joe Donnelly, Nick Lampson, Republicans
Terry Everett, Frank D. Lucas, OK Jerry Moran, KS Robin Hayes, NC Sam Graves, MO Jo Bonner, Mike Rogers, Steve King, Randy Neugebauer, TX Virginia Foxx, NC Jeff Fortenberry, NE Jean Schmidt, OH Adrian Smith, NE Tim Walberg, MI Robert E. Latta, OH Senate Agriculture Committee Democrats Tom Harkin, IA Chairman Pat Kent Conrad, ND Max Baucus MT Blanche Lincoln, AR Debbie Stabenow, MI Ben Nelson, NE Ken Salazar, CO Robert Casey, PA Amy Klobuchar, MN Republicans Ranking Member Richard Mitch McConnell, KY Pat Roberts, KS Lindsey Graham, SC Norm Coleman, MN Mike John Thune, SD Charles Grassley, IA |