CINCINNATI, Sept. 25,
2024 /PRNewswire/ -- The Directions Group (formerly
Aimpoint Research) has released a comprehensive report on the
upcoming U.S. election, detailing multiple policy scenarios and
associated impacts for agriculture. The 2024 U.S. Election
Analysis for Agriculture Report is an impartial and balanced
evaluation intended to help businesses and producers identify where
positive returns can be earned no matter who controls the White
House and Congress. Along with the report, The Directions Group
will host a public webinar on October
1 to share results of the analysis.
"It is always important to monitor ag policy as a producer or
business owner, but especially in an election year and the year
following. In 2025, we are facing three hallmark pieces of
legislation that will have a very real impact on our industry. The
new Congress with the incoming administration will need to pass a
new tax bill, approve a federal budget, and address the expiring
Farm Bill," said Mark Purdy, The
Directions Group Executive Vice President of Agri-Food. "Our goal
with this analysis is to provide a deep line of sight into multiple
scenarios and outcomes that could unfold after this election cycle.
Armed with this information, businesses can put strategies in place
that will allow them to maintain success no matter what
unfolds."
The report outlines the likely policy positions for each party
and subsequent scenarios for priority areas of agriculture,
including regulatory agendas, budget and fiscal policies, tax
reform, trade and tariffs, sustainability, energy, anti-trust,
labor, as well as Farm Bill and food policy.
A new tax bill is a must do piece of legislation in 2025, as the
current bill expires at the end of the year. Regardless of party
control, a new tax code will require budgetary offsets to pay for
new or different tax provisions. Analysts identified how a new tax
bill could impact agriculture in key areas, including tariffs and
estate tax.
- Tariffs. Increasing tariffs as a budgetary offset will
increase input costs, hurting gross margins. This will also
position ag exports for retaliatory tariffs, hurting U.S. export
competitiveness and softening domestic commodity prices.
- Estate Tax. The current rate is 40 percent with an
exemption of $13.6 million; after
expiration, the rate would stay at 40 percent, but the exemption
would drop to $5 million. For
context, the $5 million exemption is
equivalent in value to an inherited 422 acres in Iowa. Any more would be subject to the 40
percent tax rate.
"Regardless of election outcomes, we expect to see tariffs
continue to play a role in trade policy. Paired with likely
retaliatory tariffs, the trade outlook for agriculture will
continue to feel pressure," said Dave
Juday, executive advisor to The Directions Group and lead
economist for the report. "We do see party positions differing on
tax reform details, including estate tax and capital gains.
Individually, each of these issues has the potential to impact ag
businesses and producers significantly, and it's critical for
producers and ag organizations to be prepared. 2025 is shaping up
to be a pivotal year for ag policy."
The Directions Group will host a public webinar on October 1 at 1 p.m.
EST/12 p.m. CST to dive deeper
into the results of the 2024 U.S. Election Analysis for
Agriculture Report. Purdy will moderate a discussion with
veteran ag economist, Juday and retired multi-national executive,
Mark Schweitzer on the factors
shaping the ag policy agenda for 2025, including potential impacts
from midnight regulations and Presidential Executive Orders, as
well as the recent Supreme Court ruling that overturned the
so-called "Chevron deference".
Juday is an executive advisor for The Directions Groups in
economics and trade, having served as an agriculture and trade
policy advisor in the U.S. Senate and White House. Schweitzer is
the retired vice president, Global Economic Research, and previous
vice president of Investor Relations, at ADM.
Visit AimpointResearch.com to register for the October 1 webinar and for more information on
purchasing the full report.
About Aimpoint Research ®
Now known as The Directions
Group, Aimpoint Research has worked extensively with agri-food
clients for decades to provide a competitive advantage through a
unique blend of military intelligence techniques and innovative
research methodologies. Led by former military intelligence
officers, agricultural experts, and research professionals, The
Directions Group agri- food team is driven by the core belief that
food security is essential to national security.
About The Directions Group
The Directions Group is a
strategic insights firm helping businesses grow, innovate, and
differentiate themselves in the marketplace through integrated
intelligence. Their team of expert advisors partner with clients to
design custom solutions that uncover the dynamic, human-centric
insights that drive business outcomes and offers expertise across a
range of industries, including restaurant, agriculture, health and
wellness, technology, financial services, and consumer-packaged
goods. The Directions Group is a privately held firm based in
Cincinnati, Ohio conducting work
globally.
Media Contact:
Laura Hahn
414-331-3503
383890@email4pr.com
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SOURCE The Directions Group
