[Congressional Record Volume 153, Number 93 (Monday, June 11, 2007)]
[Extensions of Remarks]
[Page E1258]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  AGRICULTURAL PRODUCERS VALUE-ADDED INVESTMENT TAX CREDIT ACT OF 2007

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                          HON. JOHN M. McHUGH

                              of new york

                    in the house of representatives

                         Monday, June 11, 2007

  Mr. McHUGH. Madam Speaker, I rise today to introduce the Agricultural 
Producers Value-Added Investment Tax Credit Act of 2007, which is 
designed to give agricultural producers an incentive to invest in 
value-added enterprises. Through such investment, agricultural 
producers would not only realize a greater share of the profits 
generated by their products, but would also further economic 
development efforts, particularly in rural areas like my Central and 
Northern New York Congressional District.
  Specifically, the Agricultural Producers Value-Added Investment Tax 
Credit Act would provide a 50-percent tax credit, up to $30,000 
annually, for producers who invest in value-added enterprises. To allow 
for the cyclical nature of farm incomes, this legislation would allow 
the tax credit to be applied over a 20-year period. In the case of a 
farmer-owned entity, the credit would be allocated on a pro rata basis 
among eligible persons holding qualified interests in the entity.
  Sadly, American farmers often get the smallest portion of the profit 
generated by the raw product they produce. As the agricultural product 
is transported, processed, and marketed before it arrives on the 
grocery shelf, several middlemen cash in on the product. By offering 
this tax credit, we can provide farmers and farmer-owned entities with 
an added incentive to produce value-added products and move toward 
greater financial independence. They will be able to earn more by 
reaching up the agricultural marketing chain to capture more of the 
profits their product generates. In addition, producer investment in 
value-added enterprises will help American farmers adapt to the 
challenges of marketing their products in an increasingly global 
economy.
  Finally, the Agricultural Producers Value-Added Investment Tax Credit 
Act would further economic development efforts in and help stem 
migration from rural areas. This aspect of the legislation is very 
important to all of my constituents as seven of the 11 counties I 
represent have poverty rates greater than the national rate of 12.7 
percent. In addition, five of my constituent counties have experienced 
a decrease in their populations since 2000.
  Thus, it is my hope that my colleagues will join with me to enact 
this important legislation. It not only would help American farmers, 
but it would provide yet another tool in our effort to further economic 
opportunities and increase the quality of life in our nation's rural 
areas.

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