The congressional delegation of South Dakota was at Dakotafest on Tuesday for the “Congressional Update from Washington D.C.”

Senators John Thune and Mike Rounds and Representative Dusty Johnson  answered questions posed by American Farm Bureau Federation President Zippy Duvall regarding national issues that affect South Dakota farmers.

The current drought was discussed at length. Duvall asked the delegation about the chances of a supplemental relief bill for farmers affected being passing in Congress this year.

“Yes, I think something will get done,” Sen. Thune said, “The ag appropriations bill that was reported on last week in the Senate Appropriations Committee included more than $6 billion for the WHIP+ program, which is The Wildfire and Hurricane Indemnity Program Plus — and the plus now is drought.”

Sen. Rounds added that while he believes something could be passed, it would likely be done for the next fiscal year.

“I don’t think many of our earnest colleagues understand how cash-flow poor farming can be,” South Dakota Representative Dusty Johnson, of Mitchell, said before a gathered crowd at Dakotafest on Tuesday.

Another topic was proposed tax changes at the national level, including eliminating the “stepped-up basis,” which allows a farmer to pay capital gains taxes only on the property’s increase in value since the land was inherited and not on the full increase in value since it was purchased by that farmer’s parents or grandparents.

“The capital gains tax is at 20 percent,” Sen. Thune said. “They’re talking about moving it up to 43.3 percent … on everything over $1 million. Unrealized gain. You don’t have to sell it. You just have to be taxed on that. I mean think about it. That is unprecedented in this country as a matter of tax policy.”

Rep. Johnson added that congress in general doesn’t understand farming.

“I don’t think many of our earnest colleagues understand how cash-flow poor farming can be,” Rep. Johnson said. “The numbers look real big, but (Sen. Thune) uses the word ‘unrealized,’ and there are lots of ways in which all of the big money in ag is unrealized.”

Dakotafest continues through Aug. 19.