June 9, 2011

AHC WASHINGTON UPDATE
Copyright © 2011 American Horse Council

USDA Releases Fourth EHV-1 Situation Report

USDA has released the fourth national EHV-1 situation report.  It is a positive sign that there were no new premises with suspect or confirmed EHV/EHM cases during this last reporting period.  However, that does not mean there is not considerable risk for future transmission, and we continue to ask all horse owners and organizations to maintain a measured and informed response along with responsible ownership practices to further mitigate the economic and health implications of this current outbreak.  A summary of the updated information is as follows:

Summary Information on Current Situation (as of 06/07/2011):

• A total of 88 confirmed EHV-1 or EHM cases have been reported in 10 states (AZ, CA, CO, ID, NM, NV, OK, OR, UT, WA)

• Of the 88 confirmed EHV/EHM cases, 58 cases are horses that were at the Ogden, Utah event. 

• There are 12 horses associated with this incident that are dead or have been euthanized. 

• There are 0 newly identified premises with suspect or confirmed cases identified this reporting period.

The complete USDA EHV-1 Situation Report is attached and provides detailed information on the number of exposed, positive, dead, and euthanized horses on a state by state level.  The AHC anticipates USDA releasing another national situation report at the end of next week. Please see the below links for additional information on EHV-1 transmission risks and disease mitigation strategies.

Additional Resources

USDA-APHIS website:

EHV information sheets, color brochures, historical information, a review of disease mitigation strategies, and an EHV-1 guidance document (which will be available later today) "Recommendations for Horses Exposed to EHV-1 or EHM" can be found on the USDA-APHIS website at the following link:

http://www.aphis.usda.gov/vs/nahss/equine/ehv/

AAEP website:

General EHV resources through the American Association of Equine Practitioners:
http://www.aaep.org/EHV_resourcesowner.htm.

Neurologic Disease Guidelines:
http://www.aaep.org/pdfs/control_guidelines/Neurologic%20Disease%20Guidelines.pdf

Equine Herpes Virus:
http://www.aaep.org/images/files/EquineHerpesvirusGuidelines051711.pdf

Biosecurity Guidelines:
http://www.aaep.org/pdfs/control_guidelines/Biosecurity_instructions%201.pdf

Biosecurity Instructions for Caretakers - English & Spanish:
http://www.aaep.org/pdfs/control_guidelines/Instructions%20to%20grooms.pdf

National Cutting Horse Association (NCHA) website:

For history of the current outbreak and additional outreach materials:

http://www.nchacutting.com/

ACVIM Consensus Statement on EHV-1:

http://onlinelibrary.wiley.com/doi/10.1111/j.1939-1676.2009.0304.x/pdf

AHC's Washington Update is Sponsored by




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The American Horse Council keeps its members up to date with electronic AHC Washington Updates that report on Congressional actions and other important federal issues affecting the horse industry.  Permission to pass this Washington Update on to your members is granted on the condition that it is forwarded in its original form.  Anyone interested in more information on federal legislation and regulatory issues affecting equine health, taxes, animal welfare, racing, recreation, and showing can visit the AHC website at www.horsecouncil.org

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Congress on a Diet: What it
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April 13, 2011

AHC WASHINGTON UPDATE
Copyright © 2011 American Horse Council

Congress Releases Details of Funding Bill for the Remainder of FY 2011

The American Horse Council (AHC) reports the details of the negotiated Continuing Resolution (CR) for funding the government for the remainder of the 2011 fiscal year, which ends September 31, have been released.  This bill will cut funding to several government agencies and programs that are important to the horse community including U.S. Department of Agriculture (USDA) and the federal land management agencies.

Background

Normally, Congress debates and approves several separate appropriation bills for each area of the federal government.  Last year, Congress failed to pass a single appropriations bill.  Since October, 2010 government agencies and programs have been funded by a series of CRs that normally continue funding at the previous year's levels with slight adjustments.  The most recent CR is scheduled to expire on April15. 

Funding the government for the rest of FY 2011 has been a contentious issue and almost resulted in a government shutdown. House Republicans originally passed a bill that would have cut $61 billion in government spending. However, the Senate refused to consider the bill. For the last several weeks the Senate, House and White House have been negotiating a bill that would scale back the spending cuts originally demanded by House Republicans and prevent a government shutdown.  

The CR  that has been crafted by House and Senate negotiators will fund the government for the reminder of the 2011 fiscal year and will cut government spending by almost $40 billion compared to FY 2010 levels. The $40 billion figure includes $12 billion in cuts made in three stopgap CRs and $28 billion in new cuts.  The CR will cut funding for several federal agencies important to the horse community. 

The CR will cut $44 million from the Agricultural Research Service (ARS). ARS is the USDA's chief scientific research agency.  ARS has played a critical role in mitigating the health and economic impacts equine infectious diseases, such as Equine Piroplasmosis, have had on the horse industry.

The CR will also cut $ 41 million from the Animal and Plant Health Inspection Service (APHIS). APHIS is a multi-faceted Agency within USDA with a broad mission that includes protecting and promoting the health of U.S. livestock, administering the Horse Protection Act, and implementing emergency response and management protocols in the event of an equine disease outbreak.

The CR contains several cuts to programs and federal land management agencies that are important to recreational riders. These cuts will impact construction and maintenance of trails that equestrians use on federal public lands.  The CR will cut $6 million from the National Forest System, $127 million from the National Park Service, and $18 million from the Bureau of Land Management.

Additionally, the CR cuts $149 million from the Land and Water Conservation Fund (LWCF).  LWCF provides funds for the federal government, states and local governments to acquire land for conservation and recreation.   Many equestrians ride on public lands and trails that were acquired with LWCF money. 

Status

Both the House and the Senate are expected to vote on the CR this week.

If you have any questions, please contact the AHC.

AHC's Washington Update is Sponsored by




and

The American Horse Council keeps its members up to date with electronic AHC Washington Updates that report on Congressional actions and other important federal issues affecting the horse industry.  Permission to pass this Washington Update on to your members is granted on the condition that it is forwarded in its original form.  Anyone interested in more information on federal legislation and regulatory issues affecting equine health, taxes, animal welfare, racing, recreation, and showing can visit the AHC website at www.horsecouncil.org

April 2011
Tax Bulletin No. 350

AHC's Tax Bulletin
Copyright © 2011 American Horse Council

2011 HORSE OWNERS AND BREEDERS TAX HANDBOOK IS HERE!

The 2006 Horse Owners And Breeders Tax Handbook has sold out. The 2011 Edition of the Horse Owners And Breeders Tax Handbook is now available to purchase online or via phone at 202-296-4031. No one involved with the horse industry should be without the Two Volume Horse Owners and Breeders Tax Handbook. Learn more about the 2011 Horse Owners and Breeders Tax Handbook Here. 

NOTICE TO ALL AHC MEMBERS:

The AHC's Members Only page has been upgraded so that you can easily access current and past AHC Tax Bulletins, Newsletters, Horse Industry Directory, and more.  When you login to the site to read the following article, use the email address that this email was sent, and use the default password 'ahcmember' to log in.  Once you have logged in, you may go to the 'Members Only' menu bar at the top and Update Membership Profile to change your password.

The Moment of Truth

By Thomas A. Davis, Esq., Davis & Harman LLP, Washington, D.C.

Last December the "National Commission on Fiscal Responsibility and Reform" released their report entitled "The Moment of Truth" finding that "our nation is on an unsustainable fiscal path."The members of the Commission were from different political parties, different backgrounds, and different parts of the country. The report proposed "a six-point plan to put the nation back on a path to fiscal health, promote economic growth, and protect the most vulnerable among us." More specifically, the plan recommended: Read More

Tax Considerations in Allocation of Purchase Price for Sales of Farm Property

By: Douglas P. Romaine

When a farm is sold, the tax law requires that the sale be "comminuted into its fragments". Accordingly, it is imperative from a tax standpoint that the purchase price be allocated among the constituent parts of the assets being sold, i.e., land, improvements, supplies, livestock, etc. The manner in which the sales price is allocated among the various types of properties being sold has a direct bearing on the gain or loss realized with respect to each type of property and thus the overall character of the gain or loss. For example, allocation away from assets which would yield ordinary income to assets which would produce capital gain would increase the overall capital gains while reducing the overall ordinary income. Similarly, the allocation of sales price may have significant consequences to the buyer as the manner of allocation may accelerate or defer the recovery, in a tax sense, of the buyer's investment in the properties purchased. This need to categorize a farm sale into its component parts may also have timing consequences where the sales price is to be paid over one or more years subsequent to the year of sale.   Read More

Copyright 2011. All rights to this AHC Tax Bulletin No. 350 is retained by the American Horse Council. No reproduction or distribution of this Tax Bulletin is permitted without prior written consent of the American Horse Council.

The AHC Tax Bulletin is a digest of current tax developments affecting the horse industry. The AHC Tax Bulletin is for informational purposes only and not intended to take the place of professional tax counsel.

Editor-in-Chief
Thomas A. Davis, Esq
Davis and Harman
Washington, DC
www.davis-harman.com

AHC Tax Bulletin Advisory Board Robert B. Dale, III, Esq
Yount, Hyde & Barbour, PC
Middleburg, VA
www.yhbcpa.com

B. Paul Husband, Esq
Husband Law Group
Universal City, CA
www.husbandlaw.com

John Kropp, Esq
Graydon, Head & Ritchey
Cincinnati, OH
www.graydonhead.com

Douglas Romaine, Esq
Stoll Keenon Ogden, PLLC
Lexington, KY
www.skofirm.com

Joel B. Turner, Esq
Frost Brown Todd
Louisville, KY
www.frostbrowntodd.com

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The American Horse Council keeps you up to date with electronic Tax Bulletins that reports on Congressional action and other important issues affecting the industry. The Tax Bulletins is a member benefit, and thus, is not intended to reproduction. For more information on federal legislation, equine health and regulatory issues, taxes, animal welfare, racing, recreation, and showing please visit our website at www.horsecouncil.org

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is June 21, 2011
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April 11, 2011

AHC ACTION ALERT!
Copyright © 2011 American Horse Council

­

Voice Your Support for the Recreational Trails Program 

The Federal Highway Administration's Recreational Trails Program (RTP) is set to expire and must be re-authorized in the next national surface transportation program (highway) bill. This week a Dear Colleague letter in support of RTP is being circulated by Congressmen Petri (R-WI) and Michaud (D-ME). (View Dear Colleague Letter)

The American Horse Council urges you to Call or Email your Representative and ask them to sign the Dear Colleague letter in support of RTP being circulated by Congressmen Petri and Michaud.

The deadline for your Member of Congress to sign the letter is Thursday, April 14.

Since its inception RTP has provided money for thousands of state and local trail projects across the country, including many that benefit equestrians.  RTP provides funding directly to the states for recreational trails and trail-related facilities for all recreational trail users.  

The current highway bill that funds RTP has been extend until September 30, 2011. However, RTP will have to be included in the next highway bill the House Transportation and Infrastructure Committee is currently writing.

Now is the time to let your member of Congress know RTP is important to you, equestrians and all trail users around the country.

Call or email them today and tell them;

"You support the Recreational Trails Program and urge them to sign the Dear Colleague letter in support of RTP being circulated by Congressmen Petri and Michaud.  The deadline to sign the letter is April 14.  You support RTP because it is a very effective, user-pay/user-benefit program and a proven success story.  It serves as the foundation for state trail programs across the country, facilitates healthy outdoor recreation, and helps spur economic activity in countless communities."

Contact information for your Representatives can be found on the House website or you can call the AHC.

If you have any questions please contact the AHC.

AHC's ACTION ALERT! is Sponsored by




and

The American Horse Council as part of its grassroots efforts regularly sends electronic AHC Action Alerts that request its members contact their elected officials concerning federal issues affecting the horse industry and other actions.  Permission to pass this AHC Action Alert on to your members is granted on the condition that it is forwarded in its original form.  Anyone interested in more information on federal legislation and regulatory issues affecting equine health, taxes, animal welfare, racing, recreation, and showing can visit the AHC website at www.horsecouncil.org

April 8, 2011

AHC WASHINGTON UPDATE
Copyright © 2011 American Horse Council

Government Shutdown Could Impact Horse Industry

The American Horse Council reports at this time Congress has failed to come to an agreement regarding a bill to fund the government for the remainder of the 2011 fiscal year.  The current Continuing Resolution funding the government is set to expire at midnight tonight.  If an agreement is not reached by that time non-essential government operations, many that impact the horse industry and equestrians, could cease.  Should a shutdown occur, it could impact the U.S Department of Agriculture's (USDA) response to disease outbreaks, procedures for the import and export of horses, recreation on federal land, and temporary worker programs. At this time, government agencies are still working on their shutdown plans and determining essential and non-essential operations.

USDA 

One of the cornerstones of the U.S. horse industry includes the import and export of domestic and foreign horses on both a permanent and temporary basis.  The horse industry relies on USDA to maintain and operate import, export, and quarantine facilities for horses traveling into and out of the U.S.  It is unclear at this time whether USDA will deem all, part, or none of these import, export, and quarantine services to be essential and therefore continue to operate in the event of a government shutdown.

USDA is also responsible for the enforcement of the Horse Protection Act (HPA), and because the HPA is related to law enforcement activities it is likely a significant part of USDA's services under the HPA will continue in some fashion.

Foreign animal disease (FAD) diagnosticians and incident command system (ICS) teams will be available on a case-by-case basis to respond to equine disease outbreaks and emergency response incidents should they occur.

For a complete list of USDA shutdown contingency plans, please visit the USDA website.

Recreation

Many equestrians are dependent on federal land for recreational opportunities.  In the event of a government shutdown, the National Park Service, Fish and Wildlife Service and Bureau of Land Management will close and secure park, refuge and visitor facilities on public lands.  National Forest recreation sites across the U.S., which require a government employee to stay open, would also be closed to the public.

Temporary Worker Programs

The horse industry relies on many semi-skilled and entry-level foreign workers provided by the H-2A temporary agricultural worker and H-2B non-agricultural temporary worker programs for many of the employment needs of the horse industry.  A government shutdown could halt the processing of applications for both the H-2A and H-2B programs and delay or prevent many employers in the horse industry from obtaining workers when they are needed.

At this time, it is not certain the government will shutdown.  If a shutdown does occur it could last as little as a few hours with little impact on the industry or last several weeks with greater consequences. 

If you have any questions please contact the AHC.

AHC's Washington Update is Sponsored by




and

The American Horse Council keeps its members up to date with electronic AHC Washington Updates that report on Congressional actions and other important federal issues affecting the horse industry.  Permission to pass this Washington Update on to your members is granted on the condition that it is forwarded in its original form.  Anyone interested in more information on federal legislation and regulatory issues affecting equine health, taxes, animal welfare, racing, recreation, and showing can visit the AHC website at www.horsecouncil.org

SAVE THE DATE
AHC's National Issues Forum
Congress on a Diet: What it
Means to the Horse Industry
Sponsored by Luitpold
is June 21, 2011
View Schedule and Learn More

MARCH 25, 2011

AHC WASHINGTON UPDATE
Copyright © 2011 American Horse Council

New Requirements for Horses from CEM-Affected Countries

The American Horse Council reports that today the U.S. Department of Agriculture (USDA), Animal and Plant Health Inspection Service (APHIS) issued an interim rule, effective immediately, amending some of the regulations regarding the importation of horses from countries affected with contagious equine metritis (CEM).  As of today, any horse imported from a CEM affected country must satisfy all of the additional requirements included in the interim rule. You may read the complete USDA notice here. 

A summary of the rule changes are as follows:

• Weanlings and Yearlings: the interim rule requires an additional certification stating the Weanlings and Yearlings have never been bred.

• Imported Stallions, Test Mares, and Imported Mares : the interim rule contains enhanced testing requirements in procedures and protocols, identifies specific locations for culture swabs, requires a 72 hour minimum between each culture and extends the timeframes for diagnostic testing from 7 days to 12 days to allow for greater flexibility with laboratory operations.

• Spanish Pure Breed Horses (from Spain), Thoroughbreds (from France, Germany, Ireland, and the UK), and Horses Temporarily Imported for Competition or Entertainment Purposes :  the interim rule requires a negative test for CEM based on cultures from three sets of specimens.  The rule provides further specificity to the anatomical location and time frames associated with the collection and testing of the specimens.

USDA-APHIS cited weaknesses in current regulations along with the 2006 and 2008 CEM incidents in explaining why the Agency published the changes and why the changes are effective immediately.  USDA will accept comments on the changes through May 24, 2011.  The Agency may still make changes to the rules pursuant to any comments received.

The AHC will submit comments to USDA on the proposed changes.















 

AHC's Washington Update is Sponsored by




and

The American Horse Council keeps its members up to date with electronic AHC Washington Updates that report on Congressional actions and other important federal issues affecting the horse industry.  Permission to pass this Washington Update on to your members is granted on the condition that it is forwarded in its original form.  Anyone interested in more information on federal legislation and regulatory issues affecting equine health, taxes, animal welfare, racing, recreation, and showing can visit the AHC website at www.horsecouncil.org

SAVE THE DATE
AHC's National Issues Forum
Congress on a Diet: What it
Means to the Horse Industry
Sponsored by Luitpold
is June 21, 2011
View Schedule and Learn More

FEBRUARY 18, 2011

AHC ACTION ALERT!
Copyright © 2011 American Horse Council

Take Action to Protect Important Funding for USDA

This week the House of Representatives is expected to approve a Continuing Resolution (CR) to fund the government for the remainder of the 2011 fiscal year.  This bill contains funding cuts to several U.S. Department Agriculture (USDA) agencies that play an important roll in combating contagious equine disease, including the Animal and Plant Health Inspection Service (APHIS) and the Agricultural Research Service (ARS).

It is hoped that the Senate will take a more measured approach to spending cuts when it debates the CR in the coming weeks.  Now is the time to contact your Senators and let them know these USDA programs are important to you.

Background

Normally, Congress debates and approves several separate appropriation bills for each area of the federal government.  Last year however, Congress failed to pass a single appropriations bill.  Since October of 2010 government agencies and programs have been funded by a series of CRs that normally continue funding at the previous year's levels with slight adjustments.  The most recent CR is scheduled to expire on March 4.

The House CR (H.R. 1) that is currently being debated would fund the government for the reminder of the 2011 fiscal year, which ends September 30, 2011.  This bill contains over $100 billion dollars in cuts to government agencies and programs, many important to equestrians.

The Agricultural Research Service (ARS) is the USDA's chief scientific research agency.  ARS has played a critical role in mitigating the health and economic impacts equine infectious diseases, such as Equine Piroplasmosis (EP), have had on the horse industry. The CR would cut $134 million dollars from the Presidents request for ARS in 2011.

The Animal and Plant Health Inspection Service (APHIS) is a multi-faceted Agency within USDA with a broad mission that includes protecting and promoting the health of U.S. livestock, administering the Horse Protection Act, and implementing emergency response and management protocols in the event of an equine disease outbreak. The CR would cut over $ 40 million dollars from the Presidents request for APHIS in 2011.

Call or email your Senators and let them know that funding for these USDA Programs are important to the horse community and to the national economy.    The horse industry, in all its segments of racing, showing, recreation and work horses, involves 9.2 million horses, nearly 2 million horse owners, has a $102 billion impact on the U.S. economy and supports 1.4 million jobs.  It involves agriculture, sport, entertainment, gaming, recreation and exercise, all built on the breeding, training, use and enjoyment of horses and horse activities.   

The U.S. horse industry involves activities in all regions of the country and the world and is dependent on its ability to move horses frequently and easily interstate and internationally.  Horses move constantly for breeding, sale, racing, showing, work or recreation.  An infectious equine disease outbreak can restrict or halt that movement.  Any loss or restriction of this mobility has a serious economic impact on the horse community and industry.  Both APHIS and ARS play a vital roll in combating contagious equine disease and protecting the welfare of domestic horses and the economic viability of the U.S. horse industry.

Action is needed now as the Senate is likely to begin debating this bill when they return from the Presidents' Day recess.  Tell your Senators to protect funding for USDA, APHIS, and ARS.
 
Contact information for your Senators can be found at http://www.senate.gov/. Please email or call your Senators as traditional mail must undergo lengthy security procedures.

If you have any questions please contact the AHC.

AHC's ACTION ALERT! is Sponsored by




and

The American Horse Council as part of its grassroots efforts regularly sends electronic AHC Action Alerts that request its members contact their elected officials concerning federal issues affecting the horse industry and other actions.  Permission to pass this AHC Action Alert on to your members is granted on the condition that it is forwarded in its original form.  Anyone interested in more information on federal legislation and regulatory issues affecting equine health, taxes, animal welfare, racing, recreation, and showing can visit the AHC website at www.horsecouncil.org

FEBRUARY 18, 2011

AHC ACTION ALERT!
Copyright © 2011 American Horse Council

Take Action to Protect Important Funding for Trails and Recreation

This week the House of Representatives is expected to approve a Continuing Resolution (CR) to fund the government for the remainder of the 2011 fiscal year.  This bill contains many cuts to programs that are important to recreational riders like the Land and Water Conservation Fund and funding for the Forest Service, the National Park Service, and the Bureau of Land Management.

It is hoped that the Senate will take a more measured approach to spending cuts when it debates the CR in the coming weeks.  Now is the time to contact your Senators and let them know these programs are important to you.

Background

Normally, Congress debates and approves several separate appropriation bills for each area of the federal government.  Last year however, Congress failed to pass a single appropriations bill.  Since October of 2010 government agencies and programs have been funded by a series of CRs that normally continue funding at the previous year's levels with slight adjustments. The most recent CR is scheduled to expire on March 4.

The House CR (H.R. 1) that is currently being debated would fund the government for the remainder of the 2011 fiscal year which ends September 30, 2011.  This bill contains over $100 billion dollars in cuts to government agencies and programs, many important to equestrians.

The Land and Water Conservation Fund (LWCF) provides funds for the federal government, states and local governments to acquire land for conservation and recreation.   Many equestrians ride on public lands and trails that were acquired with LWCF money.  It is important to note the LWCF is not paid for with tax dollars, the money for the program comes from fees paid by oil companies for offshore drilling. The House CR would cut funding for the program by over 90% ($532.6 million dollars from the Presidents requested amount for 2011).

The CR also contains major cuts in funding for the National Forests, Bureau of Land Management, and the National Parks. These cuts will impact construction and maintenance of trails that equestrians use on these federal public lands.

Call or email your Senators and let them know that funding for public lands and recreation is important to you personally and to the national economy.  Outdoor recreation and tourism are critical parts of our nation's economy. The recreational horse industry alone contributes $11.8 billion a year directly to the economy and directly employs nearly 130,000 people nationwide.  Indirectly the industry contributes an additional $20.1 billion and generates another 307,000 jobs. The Outdoor Industry Association (OIA) reports that all recreation contributes $730 billion annually to the U.S. economy and supports nearly 6.5 million jobs across the U.S.

Action is needed now as the Senate is likely to begin debating this bill when they return from the Presidents' Day recess.  Tell your Senators to protect funding for the Land and Water Conservation fund and the federal Land management agencies.

Contact information for your Senators can be found at http://www.senate.gov/ . Please email or call your Senators as traditional mail must undergo lengthy security procedures.

If you have any questions please contact the AHC.

AHC's ACTION ALERT! is Sponsored by




and

The American Horse Council as part of its grassroots efforts regularly sends electronic AHC Action Alerts that request its members contact their elected officials concerning federal issues affecting the horse industry and other actions.  Permission to pass this AHC Action Alert on to your members is granted on the condition that it is forwarded in its original form.  Anyone interested in more information on federal legislation and regulatory issues affecting equine health, taxes, animal welfare, racing, recreation, and showing can visit the AHC website at www.horsecouncil.org

FEBRUARY 18, 2011

AHC WASHINGTON UPDATE
Copyright © 2011 American Horse Council

USDA FY2012 Budget Proposal

The U.S. Department of Agriculture (USDA) released the fiscal year 2012 proposed budget on February 14, 2011.  This is part of the President's budget for operating the federal government from October 2011 through September 2012.  The USDA FY2012 budget ($145 billion) is projected to decrease by approximately $3 billion from the FY2011 proposed budget ($148 billion).

The proposed FY2012 USDA budget consists of $121 billion in mandatory entitlement programs and approximately $24 billion in discretionary spending, if Congress accepts all of the discretionary proposals.

While there remains a great deal of uncertainty regarding the FY2012 budget proposal, there are two items that warrant specific attention relating to horses in USDA's FY2012 proposed budget:

1.    USDA, Animal and Plant Health Inspection Service (APHIS) includes $22 million for FY2012 under the discretionary appropriation for "Safeguarding and Emergency Preparedness/Response" for "Equine, Cervid & Small Ruminant Health."  This is a $17 million dollar reduction from the 2011 budget, but the $17 million decrease comes from the Chronic Wasting Disease (CWD) program.  CWD disease only affects deer.

2.    There is a $400,000 proposed increase for the enforcement of the Horse Protection Act which will bring the proposed total funding for the program to $900,000 in 2012.

Following the roll out of USDA's proposed FY2012 budget, AHC participated in a conference call with APHIS-Veterinary Services (VS) management and other animal agriculture industry groups to discuss the APHIS FY2012 budget in more detail.

During that conference call, VS management provided further explanation on the $17 million reduction under the "Equine, Cervid & Small Ruminant Health" line item.  VS stated the CWD reduction will be $13.9 million and the remaining $3 million difference will be taken from the Scrapie and Tropical Bont Tick programs (the Tropical Bont Tick affects cattle, sheep, and goats).

We will continue to follow the appropriations process for both 2011 and 2012.

Please let us know if you have any questions.

AHC's Washington Update is Sponsored by




and

The American Horse Council keeps its members up to date with electronic AHC Washington Updates that report on Congressional actions and other important federal issues affecting the horse industry.  Permission to pass this Washington Update on to your members is granted on the condition that it is forwarded in its original form.  Anyone interested in more information on federal legislation and regulatory issues affecting equine health, taxes, animal welfare, racing, recreation, and showing can visit the AHC website at www.horsecouncil.org

FEBRUARY 17, 2011

AHC WASHINGTON UPDATE
Copyright © 2011 American Horse Council

Draft Forest Service Planning Rule Released

On February 14th, the Forest Service published a draft planning rule for public comment.   The Forest Service planning rule will be used to guide individual forests in setting policies over the next 15 years.  The Forest Service planning rule will impact users of the National Forests including equestrians.  

Background

The last Forest Service planning rule dates from 1982 and focused primarily on resource management. The National Forest planning rule provides the overarching framework used by individual forests to develop land management plans.  The planning rule will impact all aspects of the National Forests including recreation, wildlife and fish, wilderness, grazing rights, and timber, energy, and mineral production.

The recreational community, including the American Horse Council, had urged the Forest Service to make sure recreation was adequately addressed in the new planning rule to reflect the reality that it is a major use of our nation's National Forests.     

"We believe this rule will provide for sustainable recreational opportunities recognizing the important role that outdoor recreation plays in the economy of rural America that surrounds these forests,"  said Secretary of the Department of Agriculture Tom Vilsack  in his remarks  introducing the draft rule.

There will now be a 90 day comment period that ends May 16, 2011. The Forest Service will review all submitted comments and then issue a final rule.  More information on the proposed rule and about submitting comments are available at www.fs.usda.gov/planningrule.

The American Horse Council will be reviewing the proposed rule and its impact on equestrians and submit comments to the Forest Service.

If you have any question please contact the American Horse Council.

AHC's Washington Update is Sponsored by




and

The American Horse Council keeps its members up to date with electronic AHC Washington Updates that report on Congressional actions and other important federal issues affecting the horse industry.  Permission to pass this Washington Update on to your members is granted on the condition that it is forwarded in its original form.  Anyone interested in more information on federal legislation and regulatory issues affecting equine health, taxes, animal welfare, racing, recreation, and showing can visit the AHC website at www.horsecouncil.org

FEBRUARY 16, 2011

AHC ACTION ALERT!
Copyright © 2011 American Horse Council

House Transportation Committee to hold hearings on the next highway bill.  Voice your support for the Recreational Trails Program

 
Every several years Congress passes a multi-year national surface transportation bill.  This bill funds transportation projects and programs such as the Recreational Trails Program (RTP) which provides money for state and local trail projects.

The House Committee on Transportation and Infrastructure has announced a series of field hearings that will take place in February on the next multi-year national surface transportation bill. The Committee will seek input on priorities for the bill.

If you live near one of the scheduled hearings this is an opportunity to voice support of the RTP Program and the benefit it provides to equestrians.

Scheduled hearings
 
2/17    Philadelphia, Pennsylvania

2/18    Scranton, Pennsylvania and Rochester, New York

2/19   Columbus, Ohio - Ohio State House, Senate Finance Hearing Room, 1 Capitol Square - This field hearing of the Full Committee on Transportation and Infrastructure is scheduled to begin at 9:30 a.m.

2/19    Indianapolis, Indiana

2/20    Chicago, Illinois

2/21    Vancouver, Washington

2/22    Fresno, California

2/23    Los Angeles, California

2/24    Oklahoma City, Oklahoma

2/24    Jonesboro, Arkansas

2/25    Memphis, Tennessee

Contact your Representative's local office to get times and exact locations.

Recreational Trails Program

The RTP provides funding directly to the states for recreational trails and trail-related facilities for both non-motorized and motorized recreational trail uses. The RTP will have to be re-authorized in the next national surface transportation program bill if it is to continue.

Since its inception the RTP has provided approximately $700 million for thousands of state and local trail projects across the country, including many that benefit equestrians.   RTP projects consist of construction, maintenance and restoration of trails and trail related facilities as well as the acquisition of easements or property for trails.

Although each state manages its own program, 30% of RTP funds must be spent on non-motorized projects like equestrian trails, 30% on motorized, and 40% percent on multiuse projects.

The RTP is one of the few sources for federal funding of trail projects that are not on federal land.  The program is a great resource for equestrians to fund projects in their state and local parks.

The AHC in conjunction with a broad coalition of recreational users has been working to ensure RTP is included in any national highway bill passed by Congress. 

If you have any questions please contact the AHC.

 

 

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The American Horse Council as part of its grassroots efforts regularly sends electronic AHC Action Alerts that request its members contact their elected officials concerning federal issues affecting the horse industry and other actions.  Permission to pass this AHC Action Alert on to your members is granted on the condition that it is forwarded in its original form.  Anyone interested in more information on federal legislation and regulatory issues affecting equine health, taxes, animal welfare, racing, recreation, and showing can visit the AHC website at www.horsecouncil.org

FEBRUARY 9, 2011

AHC WASHINGTON UPDATE
Copyright © 2011 American Horse Council

NIFA Releases Open Requests for Grant Applications

The National Institute of Food and Agriculture (NIFA) released its 2011 Agriculture and Food Research Initiative (AFRI) requests for applications (RFAs) for animal agriculture.  The RFAs cover a broad range of areas including, but not limited to: animal reproduction, nutritional performance, health and disease, breeding, impact of agroecosystems, agriculture economics, etc. The following information is a summary of those areas in which livestock, including horses, are eligible.

For additional information on the AFRI program, including the anticipated release date of the Challenge Area RFAs and the NIFA Fellowships Grant Program RFA, visit the NIFA Web site at: www.nifa.usda.gov/afri.

Letters of Intent

In 2011, some Program Areas within AFRI require a Letter of Intent for submission of an application. Refer to the Program Area Descriptions to determine if a Letter of Intent is required for a specific Program Area.

Please note, the Letter of Intent Deadline for Animal Health and Production and Animal Products is February 22, 2011 (5:00 p.m. ET).  NIFA has specifically stated the Animal Health and Production and Animal Products RFA includes the broadest area of eligibility for animal agriculture, including horses.

Integrated Projects are solicited under the Agriculture Economics and Rural Communities Program Area. The level of funding available for support of the Foundational Program within AFRI has been increased to $78 million for FY 2011 from $62 million in FY 2010.

NIFA- AFRI Funding Opportunities

Below is the summary information for the 2011 NIFA AFRI Foundational Program RFA describing programs of relevance to animal agriculture, including horses.  Interested applicants can see the full RFA at www.grants.gov and at the NIFA website (http://www.nifa.usda.gov/funding/rfas/afri.html).

There are four sections relevant to animal agriculture, including horses, in the Foundational RFA:

1. Animal Health and Production and Animal Products;
2. Renewable Energy, Natural Resources, and Environment;
3. Agriculture Systems and Technology; and
4. Agriculture Economics and Rural Communities.

An environmental specialist who includes horses in his or her research may qualify under "Renewable Energy, Natural Resources, and Environment."  The best fit for agricultural animals, including horses, are in "Animal Health and Production and Animal Products" and "Agriculture Systems and Technology."

The above have very broad priorities this year.  NIFA anticipates numerous proposals for animal research, and the Agency has stated this will likely lead to low success rates compared to last year when the Foundation RFA was very specific in all areas. The change is in response to stakeholder feedback that the NIFA Director received last year.

Additional information and a complete description of the Foundational RFA, program area requirements, Letter of Intent deadlines, program funds allocated, and the appropriate contact person for each program area can be found on the NIFA website: (http://www.nifa.usda.gov/funding/rfas/afri.html).

Please contact us if you have any questions.

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The American Horse Council keeps its members up to date with electronic AHC Washington Updates that report on Congressional actions and other important federal issues affecting the horse industry.  Permission to pass this Washington Update on to your members is granted on the condition that it is forwarded in its original form.  Anyone interested in more information on federal legislation and regulatory issues affecting equine health, taxes, animal welfare, racing, recreation, and showing can visit the AHC website at www.horsecouncil.org

FEBRUARY 3, 2011

AHC WASHINGTON UPDATE
Copyright © 2011 American Horse Council

1099 Reporting Requirement Amendments Passes

This week the Senate approved an amendment to the FAA Air Transportation Modernization and Safety Improvement Act that will repeal the recent 1099 paperwork mandate.  The amendment was offered by Senator Debbie Stabenow (D-MI).

The 1099 paperwork mandate was a provision of the health care bill passed last year that imposes new tax reporting requirements, on every business in the U.S., including those in the horse industry, beginning in 2012. 

There were several attempts to repeal the 1099 requirement last Congress which failed.

The AHC supports repeal of the new 1099 reporting requirement. 

Background

The Patient Protection and Affordable Care Act ("Health Care Bill") that was signed into law last year included a provision broadly-expanding 1099 IRS form reporting requirements starting in 2012.  Currently the law requires 1099s to be sent to any independent contractor that receives $600 or more from a business in a year.  The new requirement requires 1099s be sent not only to independent contractors but also to any individual or corporation from whom a business purchases a total of $600 or more in goods or services in any given year.  Its stated purpose is to identify unreported taxable income, fraudulent tax deductions, and increase tax compliance.

This new requirement will greatly increase the administrative burden on all businesses, particularly small businesses, including those in the horse industry.  For example if a horse farm buys $600 worth of hay and grain from a particular retailer, or purchases buckets and bridles for a total of $600 from a tack shop, or an even buys office supplies of $600 from a supply store over the course of the year, or an individual buys a computer for $700 from a local store, they are required to issue each business a 1099 form that must be completed and returned to the IRS.  This reporting mandate places an added burden on each business involved.  The horse businesses would have to collect information and tax identification numbers for every entity they do $600 worth of business with and mail them forms and the business receiving the forms must complete them.

The Stabenow amendment repeals only the new reporting requirements.  Businesses would still have to send 1099s to independent contractors.


Next steps

The Senate must now approve the FAA Air Transportation Modernization and Safety Improvement Act which will then be considered by the House. Repeal of the 1099 provision has broad bipartisan support. But the larger bill may or may not pass both the Senate and the House. Therefore, repeal at this juncture is not assured.

Senator Mike Johanns (R-NE), Senator Max Baucus (D-MT), Congressman Dan Lungren (R-CA), and Congressmen Steve Scalise (R-LA), have each introduced stand alone bills that would also repeal the 1099 provision. 

The AHC supports repeal of the new 1099 reporting requirement. 

AHC's Washington Update is Sponsored by




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The American Horse Council keeps its members up to date with electronic AHC Washington Updates that report on Congressional actions and other important federal issues affecting the horse industry.  Permission to pass this Washington Update on to your members is granted on the condition that it is forwarded in its original form.  Anyone interested in more information on federal legislation and regulatory issues affecting equine health, taxes, animal welfare, racing, recreation, and showing can visit the AHC website at www.horsecouncil.org

JANUARY 31, 2011

A Note from the American Horse Council

Please help the AHC to learn more about you and the equestrian community. Take a brief five minute survey now.

We are currently conducting a survey to help us better understand the equestrian community.

We value your feedback, and would appreciate if you took a few moments to respond to some questions about your involvement with horses.

You may view and participate in the survey by visiting the following link, http://www.surveymonkey.com/s/ahcsurvey.

Please direct any questions to the AHC at info@horsecouncil.org or 202-296-4031.

WINTER 2011

AHC NEWS
Copyright © 2011 American Horse Council

Control Split as 112th Congress Convenes

The 112th Congress convened in early January facing many of the same issues left over from the last Congress.  But they may remain on the table as the emphasis in this Congress will be on cutting government programs and spending, reducing the deficit and debt, and spurring job growth.  The House of Representatives has shifted to Republican control.  Democrats still control the Senate, but the majority is smaller.  More than 100 new members have taken their seats in the House and Senate, nearly a 20% turnover. READ MORE

Republicans Make Big Gains for 112th Congress

The pollsters got it right this time.  They had been predicting a Republican wave and it swept through Washington on November 2.  The Republicans rode the 2010 voting surge into the majority in the House of Representatives and additional seats in the Senate.  This is the third straight election that Americans have voted a party out of power.  READ MORE

Congress Passes Tax Extensions and Other Benefits

Congress passed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 during the lame-duck session.  President Obama signed the $858 billion package into law almost immediately.  The Senate passed the bill on December 15 on a vote of 81 to 19.  The House followed on December 16, 277 to 148, with 112 Democrats and 36 Republicans voting no. READ MORE 

New House Committee Chairs

The election of a Republican majority in the House means that every House committee in the 112th Congress has a new chair. These chairmen/women were selected by the House Republican Caucus and were announced in December.  READ MORE

UHC's Media Roundup Continues to Educate

The Unwanted Horse Coalition's [UHC] Media Roundup reached its 14th installment and the one year anniversary of its inception. The news summary, the first of its kind issued by the UHC, has been educating its readers through articles and events relating to unwanted horses.  READ MORE

National Equine Health Program: Summary & Status Update

The US Department of Agriculture (USDA) and the AHC conducted a workshop during the 2010 AHC's National Issues Forum to discuss how USDA, state authorities, and the industry could best address, respond, and control emerging and infectious equine diseases in the U.S.  The stated benefit to implementing a proactive and coordinated approach is to mitigate the health, welfare, and economic implications emerging and infectious diseases will have on the U.S. equine population and the industry as a whole. READ MORE

Unwanted Horse Coalition's Operation Gelding Clinics Taking Place Across the U.S.

The Unwanted Horse Coalition's [UHC] Operation Gelding program is off to a successful start. The program, which was launched in August 2010 with the help of seed money from the American Association of Equine Practitioners Foundation and the UHC, is designed to offer funding assistance to organizations, associations, and events that wish to conduct a public gelding clinic under the name and guidelines of Operation Gelding. An organization that has completed an Operation Gelding clinic will receive funding of $50 per horse, $1,000 maximum, to aid in the costs associated with the clinic. READ MORE

Update on Animal ID

Over the summer, the U.S. Department of Agriculture (USDA) completed a series of public meetings on the proposed Animal Disease Traceability Program (ADTP) and USDA expects to publish a proposed rule for public comment by April 2011.  This timeline has not changed, and USDA expects the final rule to be published about twelve to fifteen months after the proposed rule is published. READ MORE

Efforts to Repeal New 1099 Reporting Requirement to Continue in New Congress

During the last Congress several attempts were made to repeal the 1099 paperwork mandate that was a provision of the health care bill and imposed a new tax reporting requirement on every business in the U.S., including those in the horse industry, beginning in 2012. Ultimately, legislation that would have done away with this requirement was never passed. READ MORE

Luitpold Renews It's Commitment to the Horse Industry in 2011
                                                              

The American Horse Council (AHC) is pleased to announce that Luitpold Pharmaceuticals, Inc. manufacturer of the joint therapy Adequan^® (Polysulfated Glycosaminoglycan) renewed their commitment to the horse industry by renewing its annual sponsorship in 2011. READ  MORE

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The American Horse Council keeps it members up to date with electronic AHC NEWS that reports on Congressional actions and other important federal issues affecting the horse industry. Permission to pass on the AHC NEWS to your members or colleagues is granted on the condition that it is forwarded in its original form or directly linked with the AHC logo and a link to the AHC website. Anyone interested in more information on federal legislation and regulatory issues affecting equine health, taxes, animal welfare, racing, recreation, and showing can visit the AHC webiste at www.horsecouncil.org

AHC Advocates for Enhanced Equine Research and Resources

Towards the end of 2010, the American Horse Council (AHC) attended stake holder meetings and submitted comments to both the National Agricultural Research, Extension, Education, and Economics Advisory Board (Board) and the National Agriculture Statistics Service (NASS). READ MORE

UHC Seeks to Expand National Speaker Program

The Unwanted Horse Coalition's (UHC) National Speaker Program has been up and running since early 2009 with approximately 100 speakers in the database. This program provides equine events around the country with UHC volunteers to speak about the issue of unwanted horses and what it means to "Own Responsibly". The UHC is looking to expand its National Speaker Program by adding additional speakers and additional events to the schedule. READ MORE

Congressional Cavalry Welcomes Members of the 112th Congress

Last week, the AHC asked members of its Congressional Cavalry to welcome members of 112th Congress and remind them just how important the equestrian community and horse industry is to the country. READ MORE

January 2011
Tax Bulletin No. 349

AHC's Tax Bulletin
Copyright © 2011 American Horse Council

NOTICE TO ALL AHC MEMBERS:

The AHC's Members Only page has been upgraded so that you can easily access current and past AHC Tax Bulletins, Newsletters, Horse Industry Directory, and more.  When you login to the site to read the following article, use the email address that this email was sent, and use the default password 'ahcmember' to log in.  Once you have logged in, you may go to the 'Members Only' menu bar at the top and Update Membership Profile to change your password.

TAX BREAKS IN 2011 GOOD FOR OWNERS AND BREEDERS

By: Thomas A. Davis, Esq., Davis & Harman LLP, Washington, D.C.

Thanks to the tax bill that was passed and signed into law just before Christmas last year, the tax rates for everyone will be the same in 2011 and 2012 as they were in 2010. The new law also has numerous other tax provisions which are beneficial for people in the horse business. The most important of those provisions are discussed in this bulletin.   READ MORE

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The American Horse Council keeps you up to date with electronic Tax Bulletins that reports on Congressional action and other important issues affecting the industry. The Tax Bulletins is a member benefit, and thus, is not intended to reproduction. For more information on federal legislation, equine health and regulatory issues, taxes, animal welfare, racing, recreation, and showing please visit our website at www.horsecouncil.org

DECEMBER 17, 2010

AHC WASHINGTON UPDATE

Congress Passes Tax Extensions and Other Benefits

Congress has passed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.  President Obama signed the $858 billion package into law almost immediately.  The Senate passed the bill on December 15 on a vote of 81 to 19.  The House followed on December 16, 277 to 148, with 112 Democrats and 36 Republicans voting no.  

Passage of the legislation avoids tax increases, scheduled to go into effect automatically on January 1, 2011, on everyone's individual income, capital gains, and dividend income and on estates.  The bill also includes other tax benefits for the horse industry supported by the American Horse Council.

After a bit of brinksmanship over extending the Bush-era tax cuts following the November elections, President Obama and Republican leadership sat down and hammered out the legislation.  There was some opposition in the House to extending the cuts for those making more than $250,000 a year and exempting estates valued at up to $5 million from the estate tax, but it was not strong enough to allow a tax increase on all Americans to go into effect on January 1.

Tax Rates

Under the legislation, individual income tax rates will remain at current levels for two more years, through 2012.  The marginal rates will stay at 10% to 35% depending on one's income bracket.  The rate structure is indexed for inflation.  Had the bill not been passed and the current rates allowed to lapse, tax rates would have risen about 4% for each bracket.   

The tax rate on capital gains will remain at 15% for another two years, rather than rising to 20%.

The tax rate on dividends will remain at 15% for another two years, rather than being taxed at the same rate as a taxpayer's ordinary income, which could be as high as 35%.

Payroll taxes for all workers will be reduced 2% from 6.2% to 4.2% for 2011 on wages up to $106,800.  This will put up to $2,136 extra in the pocket of every U.S. worker.  

Estate Tax Rate and Exemption

Effective January 1, 2011, the top estate tax rate will be 35% with an exemption of $5 million for individuals and $10 million for married couples through 2012.  This means that only estates valued at over $5 million ($10 million for married couples) will be subject to the tax.
 
Expensing Allowance Increased to 100%

Under current law, anyone who purchases a horse or other property for his horse business and places it in service in 2010 can deduct up to $500,000 of the cost.  This applies to horses, farm equipment and other depreciable property used in a business.  This limit will be eliminated for 2011 allowing horse owners and other horse businesses to write off the entire cost of most capital assets when purchased and placed in service.  This provision is retroactive and will benefit any business involved in the horse industry that purchases and places depreciable property in service after September 8, 2010 and through 2011.  

Contribution of Property for Conservation Purposes

Owners of horse farms and ranches are interested in the tax benefits available to those who contribute property for conservation purposes.  Conservation easements are one way that owners can keep their property available for farming, rather than selling it for commercial purposes, while getting a tax benefit.  Under legislation passed a number of years ago, a landowner with 50% of more of his/her income from agriculture could get a deduction for the contribution of a conservation easement up to his/her full income, with any unused amount carried forward for 15 years.  This provision had expired and the deduction was limited to 30% of income.

The tax bill reinstated the conservation easement benefit for two years, through 2012, for contributions made in taxable years after December 31, 2009.  

AHC's Washington Update is Sponsored by




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The American Horse Council keeps you up to date with electronic AHC Washington Update that reports on Congressional action and other important issues affecting the industry. The AHC Washington Update is a member benefit, and thus, is not intended to reproduction. For more information on federal legislation, equine health and regulatory issues, taxes, animal welfare, racing, recreation, and showing please visit our website at www.horsecouncil.org