Small Agriculture Producer Size Standards Improvements Act of 2015
Floor Speech
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Mr. Speaker, I yield myself such time as I may consume.
I rise in support of H.R. 3714, the Small Agriculture Producer Size Standards Improvements Act of 2015.
Small businesses play a critical role in the American economy. They make up the vast majority of employer firms and create nearly two- thirds of new jobs.
Over the years, Congress has created numerous Federal program set- asides, tax preferences, and SBA loan programs to help small firms succeed.
Last year small businesses were able to access over $28 billion in capital and $90 billion in contracting opportunities because they met the definition of small. Many businesses used long-term loan proceeds to keep their doors open, retain employees, and create new jobs.
Since yesterday was tax day, I would also like to mention that small business-oriented tax provisions allow firms to write off expenses quickly, putting money back in their hands to create new avenues for growth.
However, the advantages conferred by this program can only occur if a business can show that they meet the industry-based definition of small business.
While, generally, SBA is tasked with defining size standards for over 1,100 industries that establish eligibility for its programs, agricultural standards have been exempted from this process.
Instead, Congress set a rigid gross revenue-base standard for all agriculture industries that has not been adjusted since 2000. However, since the time Congress first began setting the size standard, agricultural production has shifted dramatically.
The Small Agriculture Producer Size Standards Improvements Act, introduced by Mr. Bost and cosponsored by Ms. Meng, will eliminate the outdated size standard and gives SBA the authority to tailor standards that are reflective of the changes the industry has experienced as well as the variety of agricultural businesses across our country.
What is small for a cattleman is not the same for fresh produce producers or dairy farmers. The bill requires SBA to apply their current methodology, solicit feedback from industry stakeholders, and implement specific standards that can be tweaked periodically to respond to changes in the industry.
I, therefore, ask my fellow Members to support this bill.
I reserve the balance of my time.
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Mr. Speaker, like all other industries, the agricultural industry has changed over the last 30 years.
With new technologies, many agricultural businesses have been able to increase their production rates. The last Census of Agriculture found U.S. farms sold nearly $395 billion in agricultural products, a 33 percent increase from the sales of 2007. Crop sales also increased by 48 percent.
The changes made in H.R. 3714 will give SBA the tools necessary to set size standards for those in agricultural production. The bill ensures these adjustments are done with careful consideration as to the effects on small farms. I once again would urge my colleagues to support this measure.
I yield back the balance of my time.
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