This week, the U.S. House passed U.S. Rep. Vern Buchanan’s, R-Fla., bill giving tax incentives to farmers who need to replace trees impacted by citrus greening.
On a 400 to 20 vote, the House passed Buchanan’s “Emergency Citrus Disease Response Act” on Wednesday. The U.S. House Ways and Means Committee, which Buchanan sits on, sent the bill to the House floor last week without opposition.
Buchanan brought out the bill back in November with the support of every member of the Florida delegation.
“Help for Florida orange farmers is a major step closer to arriving,” Buchanan said on Wednesday as the House passed his bill. “This bill will go a long way toward protecting the livelihoods of the 62,000 hardworking Floridians in our signature citrus industry. The story of American agriculture is one of resilience and hard work against tremendous odds. Citrus farmers are being hit hard and Congress needs to help them recover.”
Buchanan’s office explained the congressman’s proposal when he introduced it.
“Under current law, growers are allowed an immediate deduction for the cost of replanting diseased trees, but the farmer must bear the full cost,” Buchanan’s office noted.
“Buchanan’s proposal would allow struggling farmers to use this deduction even if they bring in investors to raise capital for replanting costs, as long as the grower continues to own a major stake in the grove. It also extends this incentive to purchasers of land with diseased trees.”
Over the summer, the U.S. Department of Agriculture found a drop of 16 percent in Florida citrus and experts are projecting an even sharper decline next season with some estimates showing declines of 26 percent.
The decline in Florida citrus in recent years is mostly the result of Huanglongbing (HLB), better known as citrus greening.
Spread by the Asian citrus psyllid, a tiny insect, citrus greening infects trees, leading to deformed and bitter fruit. Eventually, citrus greening kills the tree. One of the few ways to fight citrus greening is by removing the tree.
In 2013, the Florida citrus industry -- which generates $9 billion and employs more than 75,000 Floridians -- saw its worst year in almost a quarter century and that downward trend has been continuing.
All of the Florida delegation lined up behind Buchanan’s proposal.
"Our citrus industry, unfortunately, continues to be in peril due to citrus greening,” noted U.S. Rep. Dennis Ross, R-Fla., part of the House leadership as senior deputy majority whip. “This harmful disease has caused historically low production rates in Florida for the past several years. As a native Floridian who grew up and still lives near citrus groves, helping fix this problem is very important to me and those I represent. That is why I immediately became an original co-sponsor of H.R. 3957, and supported its passage today.
"Replanting new citrus trees in Florida and investing in finding a cure for citrus greening are essential for the future of this important industry,” Ross added. “H.R. 3957 will allow growers' replanting costs to be immediately tax deductible for ten years, which will help protect the livelihoods of nearly 80,000 Floridians directly and indirectly employed by the citrus industry.
"Along with this legislation passed today, I have supported multiple measures to improve and revitalize Florida's citrus industry, including supporting crop insurance programs and more than $150 million in funding to combat citrus greening,” Ross concluded. “Helping Florida citrus growers and the citrus industry as a whole will continue to be a top priority of mine, and I will continue supporting legislation that helps find a cure for citrus greening and ensures Florida remains the citrus capital of the world."
On the other side of the aisle, U.S. Rep. Patrick Murphy, D-Fla., also backed Buchanan’s bill.
"Florida's citrus industry is vital not only to our state's economy, but also our identity and history. It is great to see broad bipartisan support to assist growers impacted by greening with replanting efforts," Murphy said. "While we continue working towards a cure for greening, I hope the Senate will follow the House's lead and act now on this important measure to help local farmers who are currently suffering."
U.S. Sen. Bill Nelson, D-Fla., is sponsoring the bill in the Senate. Buchanan said on Wednesday that he expected the Senate to vote on the bill next week.
“The Senate now needs to act swiftly to get this bill to the president’s desk,” Buchanan said.
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