2019 National Legislative Update
There are currently a number of issues impacting the ASFMRA from Washington, D.C., particularly for appraisers. One of the biggest hot button issues revolves around “evaluations.” What are they and who is allowed to do them? USPAP briefly mentions evaluations but instructs appraisers to call them “restricted appraisal reports.” That’s all well and good, but there are a lot of potential customers that don’t want the terms “restricted” and/or “appraisal” in their work file. They simply want a number.
Okay, we can do that, right? Not necessarily. Doing so might require diverting from USPAP. Because the ASFMRA is a sponsor of The Appraisal Foundation (TAF), all ASFMRA members are required by our code of ethics to follow USPAP at all times. Executive Council and the government relations committee is currently working to find a solution to either persuade TAF to make changes to USPAP, or to find a way for our members to be allowed to do evaluations and not miss out on a work opportunity. Stay tuned.
In August, the Appraisal Standards Board (ASB) voted to raise the de minimus on residential appraisals from $250,000 to $400,000. This has since been passed by the necessary offices/committees and is now published as law in the Federal Register. Although this may not impact a great number of our members, it is believed that raising the threshold for agricultural/commercial appraisal may be next.
At the November meeting of the Appraisal Qualifications Board (AQB), it was announced that the South Dakota State University real estate program is now AQB-approved. This means that SDSU students graduating with a minor in real estate can receive qualifying credits towards obtaining an apprentice appraisal license.
AQB continues to work towards unrolling their new Practical Applications of Real Estate Appraisal (PAREA) program. PAREA will be a virtual appraisal training program that allows apprentice participants to receive approved hours while working towards licensing. The idea is that this will help remove one of the major barriers to entry into the profession: finding a willing supervisor. AQB is currently working on a second exposure draft. The public comment period is currently open if you would like to comment.
The ASFMRA recently signed onto a letter with several other organizations in support of Senate Bill S.170 and House Bill H.R.1992, the Charitable Conservation Easement Program Integrity Act of 2019. This bill is designed to put an end to fraudulent transactions by investors in conservation easements. The Department of Treasury has labeled the transactions as “abusive tax shelters.” In many instances, investors have been able to receive substantial tax deductions while shifting blame to appraisers.
The farm management side has not had the same number of issues recently, but there certainly have been major items to watch. Much of the issues the ASFMRA is watching involve trade negotiations. The recent passage of the United States Mexico Trade Agreement (USMCA) in the House clears the way for the Senate to pass it and send to President Trump for approval. This agreement is progress towards opening up trade for American farmers.
ASFMRA is also monitoring the Renewable Fuels Standards Agreement between the EPA and USDA. The EPA announced that in 2020 they will propose and request public comment on expanding the biofuel requirements. Lastly, the ASFMRA recently signed onto a letter to USDA Secretary Sonny Perdue urging the protection of crop insurance from potentially harmful cuts.
Brian Field, ARA, is 2019-20 co-chair of the ASFMRA's Government Relations Committee, and received the ASFMRA's Early Career Award in 2018.