Association Takes Position On Public Policy Issues

Last fall, when John McCoy, Orthman Manufacturing Inc., became the 2010 President of this Association, he took note of the things he wanted to accomplish during his tenure as president. One of those items was for this Association to be the voice of manufacturers of specialized (shortline) farm equipment. McCoy also wanted this Association to work closely with other groups that share common interests on public policy issues. We have found a partner on such issues in the North American Equipment Dealers Association (NAEDA).

Accomplishing McCoy’s goal, last month during the annual Summer Board Meeting, your Board of Directors voted to take a public stand on many of the issues currently supported by NAEDA. The list below is just a starting point — we are committed to taking a strong stand and making your voice heard on many additional issues that clearly impact our members.

Equipment Depreciation: The Association encourages Congress to make the increased expensing levels under Section 179 permanent and change the IRS Modified Accelerated Cost Recovery System (MACRS) depreciation rate on farm equipment to a five-year depreciation schedule from the current seven-year schedule. The Association also supports changing the MACRS depreciation rate on special use building construction, installed equipment and other equipment to better reflect the useful life of those assets and the changing nature of farm and ranch equipment.

Energy: We support the development of a national energy policy that defines the energy needs of the nation, what measures should be undertaken for new energy sources and exploration, and how the nation’s energy needs can be met in a manner that is consistent with the use of natural resources, protection of the environment, sound land use and the welfare of the people.

To help reduce the nation’s dependence on foreign energy sources, a comprehensive energy policy should: Promote conservation of all fuels; Encourage universities and other institutions and organizations to conduct research on and provide education programs about energy, and; Encourage the development of alternative fuels, renewable fuels and next-generation technologies for wind, biomass, coal and nuclear fuels.

The Association also supports the 25 x ’25 Coalition effort to work for passage of legislation that would require 25% of all fuel used in the U.S. be derived from renewable sources by the year 2025. A key to the success of this project is to maintain an Energy Title in the 2012 farm bill that supports biofuels, research to accomplish the coalition’s goal, and incentives to make biofuels a commercially viable source of fuel.

Competitive Lines: The Association supports the rights of equipment dealers as independent entrepreneurs to choose the most appropriate mix of suppliers and products that best serves the needs of their customers and markets.

Labor Policy: The Association supports long-standing principles of balance and fairness in federal and state labor laws. Legislation considered an assault on the rights of employees and employers or a threat to constructive dialogue and agreement between employees and employers will be opposed by this Association. For the purposes of this policy, card check (U.S.) or automatic certification (Canada) are representative examples of the types of labor issues this Association would oppose.

Multi-line Dealerships: The Association supports an equipment dealer’s right to carry competing product lines.

OSHA Reform: The Association supports OSHA reform measures that would allow greater adjudicative flexibility when OSHA issues a citation or assessment of a penalty.

Taxes: The Association supports the repeal of the estate tax and the alternative minimum tax. The Association further supports the continuation of a step up in basis at the time of death and increasing the gift tax exemption amount. The Association also supports a tax system that has a balanced approach to taxation that includes fair and reasonable personal and corporate tax rates. This includes continuation of LIFO as an acceptable accounting method.

Tort Reform: The Association supports the efforts of individuals, associations, insurance companies and others to solve the increasing problem of cost and availability of liability insurance coverage. These efforts should protect businesses, property, landowners and tenants from frivolous liability claims, medical malpractice claims, and place limitations on attorneys’ contingency fees. New legislation also should modify current law to encourage that liability litigation be filed and commence in the jurisdiction where a service or product is provided or in a plaintiff’s official domicile.

Our thanks to NAEDA’s President and CEO, Paul Kindinger and Michael Williams, VP, Government Relations, for their continued assistance and for pointing out just some of the areas we are able to work together on issues that impact our industry.

We will continue to look for other opportunities to work with NAEDA and other groups that share our views. We will also continue to strive to make your voice heard in the arena of public debate and in this industry.