If there were a word for 2022, it would be “inflation.” Unfortunately.
You can guess where this is going…
Spend money to make money: The Senate passed the Inflation Reduction Act (IRA), and there’s a lot to unpack. Rather than letting the suitcase sit for a week after vacation, let’s get into it now.
The price tag: Just an easy $739B. Pocket change. The White House says the act will help with inflation by lowering energy and healthcare costs and decreasing the deficit over 10 years. Breaking it down a bit as it relates to agriculture:
$40B will be invested in agriculture, forestry, and rural communities to tackle climate, costs, and jobs.
- Climate-Smart Ag: $20B aimed at supporting climate-smart and conservation practices for farmers.
- Rural Power and Clean Energy: $14B to lower costs for families and support rural jobs
- Wildfire Protection and Climate-Smart Forestry: $5B to protect communities from wildfires and support the forestry workforce
The IRA also includes funds for USDA programs, with nearly $20B combined going to the Environmental Quality Incentives Program (EQIP), Regional Conservation Partnership Program (RCPP), Conservation Stewardship Program (CSP), and Agricultural Conservation Easement Program (ACEP).
There are also dollars reserved for:
- Farm debt relief
- Paying farmers who were discriminated against in USDA loan programs
- Fighting drought in the West
Who’s grabbing the check: Most of the bill would be funded by imposing a 15% minimum tax on large corps.
What happens now: The bill moves to the House—and reports out of D.C. indicate they could vote on the bill today.