Florida citrus growers rang in the New Year with the welcomed news that U.S. Rep. Vern Buchanan’s (R-FL) bipartisan, bicameral Emergency Citrus Disease Response Act of 2017 had been built into the nation’s new tax reform law signed by President Donald Trump.
Rep. Buchanan’s bill, H.R. 112, is contained in the Tax Cuts and Jobs Act and offers citrus farmers quick funding support to replace damaged trees by allowing a 100-percent deduction in the first year rather than depreciating the cost over 14 years. Previously, growers could receive speedy deductions for replacing diseased trees after paying the full cost themselves. Now the deduction also is available to financially strapped farmers, who may be using investor-raised capital to cover replanting costs, provided they continue to own a majority stake in their groves.
“Immediate relief is crucial to help Florida orange growers rebuild and get back on their feet,” Buchanan said in a Jan. 2 statement, adding that he was pleased to see H.R. 112 become law to help farmers recover from Hurricane Irma and citrus greening, a deadly bacterial disease also known as Huanglongbing (HLB) or yellow dragon disease that has no cure.
In fact, both events have put almost 20,000 of Florida’s 62,000 citrus industry jobs at risk, according to Florida Citrus Mutual, whose CEO Mike Sparks applauded Buchanan’s work supporting citrus growers and related businesses.
“Congressman Buchanan’s tireless efforts on behalf of the Florida citrus industry have led to the first step in our efforts to replant and rebuild after the devastating effects of citrus greening and now Hurricane Irma,” Sparks said recently. “The tax provision will attract much-needed new capital to the industry and the State of Florida at a very critical time for all citrus growers.”
H.R. 112 had received broad support from Buchanan’s Florida colleagues, with all 26 other members of the Sunshine State congressional delegation cosponsoring Buchanan’s bill, which he introduced on Jan. 3, 2017. The Senate version, S. 71, was introduced on Jan. 9, 2017 by Sens. Bill Nelson (D-FL) and Marco Rubio (R-FL).
The citrus industry also supported H.R. 112.
“After such a devastating year for Florida citrus growers, this is welcome news in an ongoing fight to preserve such a vital industry to our great state,” said Florida Farm Bureau President John Hoblick. “Florida Farm Bureau is appreciative of Rep. Buchanan’s leadership in securing such an important tax provision for Florida producers.”
Manatee County, Fla., citrus grower Mark Wheeler also is pleased.
“I want to farm. That’s what my family does, but I need some protection from the tremendous production risk posed by HLB,” said Wheeler, who added that Buchanan’s legislation provides “a significant incentive to put more trees in the ground by counterbalancing my upfront costs.”
Dean Mixon of Mixon Fruit Farms in Bradenton said, “Irma took a serious toll on our community and the entire citrus industry is grateful that Vern is helping to provide the relief we so desperately need.”