Vilsack defends meat-market rules, says 'vast majority' of farms to be exempt from estate tax

Agriculture Secretary Tom Vilsack "defended proposals to reinstate the estate tax, despite concerns raised at an Iowa State Fair roundtable about the need for more rural capital and incentives for young farmers," Kathie Obradovich reports for The Des Moines Register:

Vilsack, the former Iowa governor, said he thinks the estate tax will be restored. The key is having appropriate exemptions for people who want to pass their farm down to a family member or someone else, he said. He expects to see a large enough exemption to cover the “vast majority” of farms and ranches in the country, he said. At the same time, however, he said there’s a need for the 2012 farm bill to focus on improving opportunities for young farmers.

Iowa State University economist Mark Edelman "warned about a lack of rural capital, which he attributed in part to uncertainty over the economy," Obradovich reports, noting arguments "that plans to roll back the Bush tax cuts have contributed to investor angst. Edelman said more rural capital will be needed, particularly invested in biofuels projects, to spur major job creation in rural America." Obradovoch noted that argument is also made by Minnesota Gov. Tim Pawlenty, who has been visiting Iowa as a prospective candidate for the Republican presidential nomination in 2012. Iowa's caucuses are the nation's first presidential voting and the state is a swing state in the general elections. (Read more)

UPDATE, Aug. 18: Ken Anderson of Brownfield reports that Vilsack defended proposed new rules to govern relationships between meatpackers and livestock and poultry producers, saying he wants to “make it so that small producers that can produce the same quality are not penalized—that they’re able to play the game and play in the game. This is not designed to take away premiums. We still think that those will happen—and they should happen for high quality. But we just want to make sure that if folks are capable of producing high quality, that they get treated fairly.” Anderson's post has audio from Vilsack and Iowa cattle feeder Bill Couser, who opposes the regulations. Read and listen here (subscription or registration may be required). (Brownfield photo)