The Ag Exemption...a critical component of Agriculture

AEG Fact Sheet

Current Agricultural Exemption to the Federal Hours of Service Rules for Truck Drivers
By Fletcher R. Hall


In 1995, Congress enacted important reforms to the exemption which applies only to agricultural commodities transported within a 100-air-mile radius from the point of harvest to the point of processing. It is absolutely necessary for the agriculture industry in all states to allow commercial agricultural transporters to be able to depend on this exemption to move commodities from farm to fork.
 
For the agricultural sector of the U.S. economy, efficient commercial agricultural transportation services are the indispensable link with outside markets and exports for most agricultural and rural communities and this dependency is growing.
 
The U.S. agricultural sector is the largest user of freight transportation services in this country. In fact, by summing the movements of raw agricultural commodities (fruits, vegetables, livestock, grains, timber) together with the movements of processed products (feedstuffs, canned food, lumber) and agricultural inputs (fertilizer, pesticides, farm machinery), agriculture accounts for nearly one-third of all freight transportation services provided in this country.
The trucking industry is essential to agriculture as trucks are now the primary transport mode for the movement of all agricultural commodities.

- Trucks are the leading transport mode for the movement of fresh fruits and vegetables in the United States, with a market share of over 90 percent. 

- Trucks are the largest carrier of produce to ocean ports for export.

- Ninety-five percent of livestock transportation is handled by truck, and fresh dairy products are primarily handled by trucks over relatively short distances
The initial agricultural exemption to the federal hours-of-service regulations for truck drivers was enacted into federal law with passage of the National Highway System Designation Act of 1995. After becoming law, regulations implementing the statute, were included in Section 395.1(K) of the Federal Motor Carrier regulations, and administered by the Federal Motor Carrier Safety Administration (FMCSA).
 
The legislation enacted on July, 29, 2005 will be codified in federal law as a NEW Section 229(x) (1) of the Motor Carrier Safety Improvement Act of 1999, replacing language now found 345 (a) (1), the National Highway System Designation Act - Public Law 104-59.
 
The current federal law reads:
"OPERATORS OF VEHICLES TRANSPORTING AGRICULTURAL COMMODITIES AND FARM SUPPLIES.
 
(a) AGRICULTURAL EXEMPTION. -- Section 229(a) (1) of the Federal Motor Carrier Safety Improvement Act of 1999 (as added by section 4115 of this Act), is amended to read as follows:
 
"(1) TRANSPORTATION OF AGRICULTURAL COMMODITIES AND FARM SUPPLIES. -- Regulations prescribed by the Secretary under sections 31136 and 31502 regarding maximum driving and on-duty time for drivers used by motor carriers shall not apply during planting and harvest periods, as determined by each State, to drivers transporting agricultural commodities or farm supplies for agricultural purposes in a State if such transportation is limited to an area within a 100 air mile radius from the source of the commodities or the distribution point for the farm supplies." (New Law)
 
(b) REVIEW BY THE SECRETARY. -- Section 229(c) of such Act is amended by striking "paragraph (2)" and inserting "paragraph (1), (2), or (4)."
 
(c) DEFINITIONS. -- Section 229(e) of such Act is amended by adding at the end the following: "(7) AGRICULTURAL COMMODITY.--The term 'agricultural commodity' means any agricultural commodity, non-processed food, feed, fiber, or livestock (including livestock as defined in section 602 of the Emergency Livestock Feed Assistance Act of 1988 (7 U.S.C. 1411) and insects).
(8) FARM SUPPLIES F0R AGRICULTURAL PURPOSES. --The term 'farm supplies for agricultural purposes' means products directly related to the growing or harvesting of agricultural commodities during the planting and harvesting seasons within each State, as determined by the State, and livestock feed at any time of the year."
 
This current legislative language provides a broader, comprehensive definition of the term agricultural commodity and Section 229(a) (1) (c) makes the agricultural exemption permanent in federal law whereby in order to revoke or substantially modify the exemption, the Secretary of Transportation must amend federal law through congressional action, Section 229 (1) (b). Under the previous law, the Secretary of DOT could have revoked or substantially amended the ag exemption by conducting a rule making proceeding.
 
Regarding the language concerning the definition of agricultural commodity, the definitions found in the definition section of The Emergency Livestock Act of 1988 (7 U.S.C. 1471), now apply:
 
"Section 1471 - Definitions: (Sub-sections 2 and 4)
 
(2) The term 'livestock' means cattle, sheep, goats, swine, poultry (including egg-producing poultry), equine animals used for food or in the production of food, fish used for food, and other animals designated by the secretary (at the Secretary's sole discretion) that -
 
(A) are part of a foundation herd (including producing dairy cattle) or offspring; or
(B) are purchased as a part of a normal operation and not to obtain additional benefits under this subchapter.....
 
(4) The term 'feed' for the purposes of emergency feed assistance, means any type of feed (including feed grain, oilseed meal, premix or mixed feed, liquid or dry supplemental feed, roughage, pasture, or forage) that,
 
(A) best suits the livestock producer's operations; and
(B) is consistent with acceptable feed practices."
 
The changes made through enactment of this legislation in the 2005 highway reauthorization bill more clearly define the specific types of commodities applicable under the ag exemption and makes the exemption permanent in federal law, subject to congressional action, in order to revoke or substantially modify this essential exemption.
 

Fletcher R. Hall is Chairman and CEO of F.R. Hall & Associates, LLC, a full-service government affairs counsel and strategic communications firm in the Washington, DC area.  Hall specializes in commercial agricultural, food transportation, and food safety.  Hall  is currently  the consultant for the Agricultural Education Group.
 

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