U.S. Representatives Mike Kelly (R-PA) and Mike Thompson (D-CA) recently announced the introduction of The Supporting Innovation in Agriculture Act (H.R. 9263) in Congress. If passed into law, the bipartisan bill will provide tax incentives for investments in innovative agricultural technologies.
“The Supporting Innovation in Agriculture Act will allow for farmers and agricultural leaders to not only succeed today, but it will allow them to better utilize innovative technologies to allow producers to succeed for years to come,” says Kelly.
According to the bill, supply chain disruptions, extreme weather, pests and disease, labor shortages, and inflationary pressures are threatening the U.S. domestic fresh food supply.
Innovative farming technologies have the potential to increase U.S. crop production while promoting environmental conservation and supply chain traceability, according to the press release, but are associated with high upfront capital costs.
H.R. 9263 will help offset a portion of those costs by providing a tax credit for 30 percent any investment in an agricultural technology or system that uses precision agriculture or controlled environmental agriculture (CEA) to produce, store, process, and package specialty crops. Specialty crops include fruits and vegetables, tree nuts, dried fruits, and nursery crops (including floriculture).
Under H.R. 9263, precision agriculture technology includes technology that directly contributes to a reduction in, or improved efficiency of, inputs used in crop production, harvesting, and on-farm storage. CEA technology includes any technology required to create, support, and maintain the necessary growing environment for plants in a closed, indoor production system.
By providing tax incentives for investments in innovative agricultural technology, Thompson says, H.R. 9263 will bolster the U.S. specialty crop industry, prompt innovation, and keep U.S. farmers competitive on the world stage.
The Supporting Innovation in Agriculture Act is supported by over 50 national and state organizations and trade associations, and by the state agriculture secretaries and commissioners from over 20 states. The Bill was introduced in the House of Representatives and has been referred to the House Committee on Ways and Means for consideration.
Articles like the one you just read are made possible through the generosity of Food Tank members. Can we please count on you to be part of our growing movement? Become a member today by clicking here.
