Capitol Comments: What You Need to Know from the State Capitol, February 24-28
As the Mississippi Legislative Session continues to unfold, Mississippi Farm Bureau Federation’s public policy team is working through critical bills and deadlines that impact agriculture in our state. With several revenue and appropriations bills currently in the works, one bill stands out: House Bill 1851, which addresses agricultural equipment tax exemptions. In addition, there is a need for movement on securing the future of the harvest permit, Senate Bill 2257 and House Bill 953.
Tuesday, March 4, marks a pivotal deadline in the Mississippi Legislative Session. This is the last day for committees to report out general bills and constitutional amendments originating from the opposite chamber. With many bills related to revenue, appropriations, and agriculture in progress, this deadline is crucial for determining which measures will move forward and which may stall.
A significant piece of legislation currently under consideration is House Bill 1851, authored by Representative Jody Steverson, Vice-Chairman of the House Ways and Means Committee. This bill introduces a new exemption from ad valorem taxation for agricultural equipment, such as tractors and implements, when they are held by bona fide dealers as merchandise. The new exemption applies to items that are kept under various arrangements, such as floor plans or consignment. This move is designed to foster a more favorable tax climate for agricultural dealers, ultimately supporting the economic viability of the agricultural sector in Mississippi.
Perhaps one of the most pressing issues facing Mississippi agriculture right now is the harvest permit, which is set to expire on July 1, 2025, unless legislation is passed to continue it. Without this permit, Mississippi farmers and producers will face significant challenges during harvest season. The permit is essential for ensuring safe and efficient transport of agricultural products, particularly during the peak harvest months.
United States Senator Cindy Hyde-Smith created special provisions in the FY24 Transportation and HUD Appropriations bill that allows Mississippi harvest permit holders to haul their products on the federal interstate system within Mississippi. However, without the harvest permit in place, Mississippi farmers may be left without this tool needed to safely transport their products, leading to delays and financial losses.
To avoid this scenario, the best legislative route is to delete the repealer in the existing Mississippi law, ensuring that the harvest permit remains in effect permanently. By doing so, we can avoid the recurring concerns of the permit expiring every few years, providing long-term stability for Mississippi’s agricultural sector.
On Friday, February 28, House Bill 953 passed out of the Senate Transportation Committee. The bill now includes a strike-all amendment that mirrors the language of Senate Bill 2257, authored by Senator Chuck Younger. SB 2257 aims to delete the repealer on the harvest permit, a change fully supported by Mississippi Farm Bureau Federation to ensure the harvest permit remains law indefinitely. We are awaiting the House of Representatives Transportation Committee to move SB 2257, which faces a Tuesday, March 4th deadline.
As the Mississippi Legislative Session progresses, Mississippi Farm Bureau Federation will continue to keep you updated on agricultural bills as they progress. With sine die only thirty-seven days away, it is important to stay informed and vigilant as we approach the end of the 2025 Mississippi Legislative Session.