MO lawmakers pass agriculture tax credits, but foreign ownership changes will have to wait

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JEFFERSON CITY — Missouri lawmakers passed extensions for tax credits on agricultural industries and programs, but declined to immediately address rising concerns surrounding foreign ownership of farmland in the Show-Me State.

The Senate's approval of the tax credits, which were vetoed by Gov. Mike Parson earlier this year because lawmakers had only extended them for two years instead of six, marks the end of a weeks-long special session that also saw passage of a state income tax cut. Meat processors, biodiesel and ethanol blend fuel manufacturers and a number of other industries and programs will be able to apply for the credits, which Senate President Pro Tem Dave Schatz called "a big win for rural Missouri."

Passage of the bill comes during a Missouri harvest that has seen no shortage of obstacles, with farmers throughout the state facing high temperatures and severe droughts for weeks to months on end.

Lawmakers blocked a last-minute attempt to amend the bill to exclude foreign companies from benefitting from the tax credits, but left the door open to address the lightning-rod issue of foreign farmland ownership next year.

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"We're going to definitely talk about it next session," said Sen. Jason Bean, a Holcomb Republican and farmer, on Tuesday. "I know that's a priority for several others. To what degree we talk about that, I think we're just going to put some proposals together and see what makes the most sense for Missouri farmers."

At issue is a 2013 measure approved by lawmakers that allowed foreign entities to purchase a portion of farmland in Missouri. Shortly after the legislation was approved, the Chinese company Shuanghui International Holdings purchased the U.S.-based Smithfield Foods and bought up around 40,000 acres in Missouri.

The topic has gained traction due in part to the current U.S. Senate race, during which opponents of Attorney General Eric Schmitt, the Republican nominee, have criticized him for his support of the measure as a state senator. Trudy Busch Valentine, the Democratic candidate, is airing a TV ad attacking Schmitt on the vote.

"If Eric Schmitt wanted to sell farmland to communists in China, he should have become a broker in Beijing," the ad from Busch Valentine's campaign says.

In a statement, Schmitt's campaign spokesperson Rich Chrismer called the criticism "a tired and false assertion" and that "no one's been tougher on China," pointing to Schmitt's lawsuit blaming China for COVID-19 which was later dismissed by a federal judge and has been appealed by the AG's office.

"This is a desperate attempt by the Heiress to distract voters from her positions, which are so extreme that she would embolden America's enemies like communist China with her support for extreme policies like the Green New Deal, which would kill American jobs here and ship them overseas," he said.

Lawmakers on both sides of the aisle Tuesday indicated support for restrictions on foreign ownership, but discarded it on the tax credit bill because they believed it fell outside of the scope of the special session called by the governor.

"I can confidently say the Democratic caucus has a position that Missourians and Americans should own farmland here in the state of Missouri," said Senate Minority Leader John Rizzo, a Democrat from Independence. "I think I can say that pretty confidently without a lot of backlash from my colleagues."

Parson, who signed the agriculture tax credits into law Wednesday and said farmers' "trust shall not be taken for granted" under his administration, said lawmakers could pursue the issue next session if it was a priority. But he said his office had to "walk a fine line" in drawing up the parameters of the special session.

The General Assembly's next chance to address the topic will likely be next January, when they return for their annual regular session. With both priorities of the special session on the governor's desk, lawmakers will now return to their districts to prepare for the midterm election in November.

Galen Bacharier covers Missouri politics & government for the News-Leader. Contact him at gbacharier@news-leader.com, (573) 219-7440 or on Twitter @galenbacharier.

This article originally appeared on Springfield News-Leader: MO lawmakers pass tax credits, but foreign farmland changes will wait