Bipartisan proposal in Congress to grant tax credits in exchange for research dollars
By Victor Santiago, Farms.com
A new bipartisan proposal in Congress hopes to stem more private research dollars into agriculture R&D. The bill was introduced by California Republican Rep. Devin Nunes and Senate Agriculture Committee Chairwoman Debbie Stabenow, a Michigan Democrat.
It is seen as crucial for the United States to remain a world leader in agricultural innovation. Food security, foreign competitors as well as a growing global demand for food, are all seen as key reasons for a greater investment in this field. Currently most of the research in this field is funded by Congress, with a budget of $5 billion a year. A 2011 report from the USDA shows that the agency’s R&D budget has remained flat since the 1980s. This spring, a report by The IT & innovation Foundation, along with the London School of Economics, has strongly recommended that the budget be tripled to $15 billion a year in order to meet global food demand.
The proposed bill would allow for the creations of ARO (Agriculture Research Organization), which would be run and funded by individuals, organizations, or in conjunction with a land grant institution. They would possess a tax-exempt status with the precondition that all results of their research be available to the public. The concept of an ARO is inspired by the highly successful medical institutes program, which has made the U.S. a world leader in medical research.
Supporters of the proposed bill hail it as a solution to the private sector funding shortage in agriculture research. Those with reservations towards the bill see it as a way for wealthy individuals and organizations to avoid paying taxes. Despite some detractors, this proposal has overwhelming support from the industry and both sides of the house - a rare feat in today’s world.
It has not been made clear at this point whether the bill would be included in a new farm bill or as a proposal in the new budget.