Monday, June 26, 2023

A farm bill test run

Presented by Organization for Competitive Markets: Delivered every Monday by 10 a.m., Weekly Agriculture examines the latest news in agriculture and food politics and policy.
Jun 26, 2023 View in browser
 
POLITICO's Weekly Agriculture newsletter logo

By Garrett Downs

Presented by Organization for Competitive Markets

With help from Marcia Brown and Meredith Lee Hill

QUICK FIX

— The Senate’s committee-approved bill to fund the Agriculture Department and Food and Drug Administration could be a test run for the farm bill.

— MA has your recap of the Senate’s Agriculture-FDA spending bill, which is headed for a showdown with its vastly different House counterpart.

— FIRST IN MA: Sen. John Fetterman (D-Pa.) asked USDA for its plans to implement food assistance changes made in the deal to raise the debt ceiling.

— FIRST IN MA: A new bill aims to make it easier for chicken farmers to pull through deadly avian flu outbreaks — without falling behind on their mortgage or losing their farm.

HAPPY MONDAY, JUNE 24, welcome to Morning Ag. I’m your host, Garrett Downs. Send tips to gdowns@politico.com and @_garrettdowns and follow us at @Morning_Ag.

 

A message from Organization for Competitive Markets:

Former Rep. Steve King’s controversial “King Amendment” returns with a new name: the “EATS Act.” Backed by Rep. Hinson and Sen. Marshall, it would eliminate pro-family farming laws across the country and abolish states’ abilities to pass laws that best fit the needs of their farmers and ranchers. This proposed federal power grab is divisive enough to jeopardize passage of any Farm Bill. Support America’s farmers and ranchers. Say NO to the King/Hinson /Marshall EATS Act.

 
Driving the day

FARM BILL TEST RUN: The farm bill will get a test run when the Senate votes on its newly approved Ag-FDA appropriations bill, Sen. John Hoeven (R-N.D.) told reporters last week.

Context: The spending bill could reach the floor as soon as July. Typically, spending bills allow senators ample opportunity to propose amendments, some of which could be aimed at farm bill programs.

With the farm bill not set to hit the floor until later this year, lawmakers will be paying close attention to the amendments offered during the appropriations process. They could serve as a precursor to what senators will offer when it comes time to vote on a farm bill — and give Senate Ag Committee leaders time to prepare to fend off amendments that could derail the farm bill.

What they’re saying: “It could be a good thing to get some indication in terms of where the support is on some of these things, in terms of putting the farm bill together,” Hoeven said. “It could be helpful.”

More amendments, more problems: Amendments pose a perennial hurdle for farm bill leaders, as the bill’s opponents will likely try to insert amendments to weaken the support of the overall legislation.

One target will likely be crop insurance. While moderates hold that insurance should be left untouched in the farm bill, liberal and conservative lawmakers tend to have some disdain for the program’s subsidies — which can pay as much as 60 percent of premiums regardless of farm income. Liberals contend the policies benefit the most successful farms that don’t need the support, while conservatives say the taxpayers should not be guaranteeing income for farmers.

 

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Budget

APPROPRIATIONS COMPARISON: The Senate on Thursday unanimously approved its bill to fund the USDA and FDA through fiscal year 2024, teeing up a spending showdown with the bitterly divided House.

The bills approved by both chambers’ committees stand in stark contrast to each other. The House GOP passed a deeply partisan spending bill, cutting spending by around $8 billion while taking aim at nutrition programs and ending a slew of Democratic priorities. The Senate bill, meanwhile, passed without Republican dissent in the Democratic-controlled Senate, hews to the agreed spending numbers in President Joe Biden and Speaker Kevin McCarthy’s debt limit deal, and fully funds most programs.

Here are the topline spending numbers: 

— The Senate bill funds the agencies at $26 billion. The House bill funds them at $17.8 billion.

— The Senate bill would fund the Special Supplemental Nutrition Assistance Program for Women, Infants and Children, or WIC, at $6.3 billion. The House bill would fund the program at $6 billion, and rescind $500 million in unobligated balances from its account.

— The Senate bill would increase WIC fruit and vegetable cash vouchers to “an amount recommended by the National Academies of Science, Engineering and Medicine and adjusted for inflation.” The House bill would cut the vouchers in half from their current levels.

— The Senate bill would fund USDA’s ReConnect broadband program at $98 million. The House bill would actually fund ReConnect higher, at $260 million.

— The Senate bill includes far fewer rescissions than its House counterpart. The Senate package rescinds several hundred million dollars from various accounts, mostly based in rural development. The House bill, meanwhile, takes an $8 billion razor to the Inflation Reduction Act’s clean energy programs and equity programs, and various other USDA programs.

Senate amendments of note: The Senate adopted a managers amendment with various technical changes and riders.

Included are two riders relating to USDA’s overhaul of school meal programs. One would require USDA to reimburse flavored milk in its final rule. Another would require certain foods to be exempted from the proposed sodium limit, like sodium used for food safety or in making cheese.

 

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FARM BILL BATTLES

FETTERMAN ASKS USDA FOR ANSWERS: In a letter provided exclusively to MA, Sen. John Fetterman (D-Pa.) and Democrats on the Senate Ag Committee’s nutrition subpanel asked USDA to detail how the debt limit deal will affect the Supplemental Nutrition Assistance Program.

The lawmakers said they “remain concerned about the changes to eligibility and increases to work requirements overall,” and are seeking more information on how the changes will impact the SNAP population.

What they’re asking for: The group asks USDA to detail the net change to the SNAP population as a result of the new laws enacted in the debt limit deal, and for a timeline of when the USDA will release state-level changes. It also asks USDA to break down the net changes on a national level by race, ethnicity, gender and age. And it asks USDA for its strategy to communicate the new eligibility changes to affected participants.

Why it matters: The debt deal increased the number of SNAP recipients who have to meet more complex work requirements, and created new exemptions for homeless individuals, veterans and youth aging out of foster care.

The agency is now under immense pressure from Democrats to enact those new exemptions swiftly, but it is a herculean task. USDA’s response to Fetterman will be an early indication of how the agency intends to execute the new work requirements. It will also provide new, official demographic data on how the juiced-up work requirements will affect recipients.

AVIAN FLU: Sens. Chris Coons (D-Del.) and Roger Wicker (R-Miss) are zeroing in on a new way to help farmers weather outbreaks of avian flu. 2022 was the deadliest outbreak on record, affecting nearly every state and forcing culls of more than 50 million birds. Coons has a particular interest: Delaware is a top poultry-producing state, with around 1,300 commercial poultry farms and $5 billion in sales last year.

Their bill, which the senators plan to introduce next month, would expand eligibility for farmers to get checks from USDA who are forced to cull their herds or keep their poultry barns empty for an extended period of time. The bill also boasts support from the National Chicken Council, which represents poultry processors, and more than a dozen state farm bureaus, according to a Senate aide granted anonymity to discuss internal conversations.

“This bipartisan bill would ensure that every farmer who does their part to contain an outbreak is fairly compensated for their financial harm, and it simplifies the compensation process so farmers can get back on their feet quickly after losing their flock,” Coons said in a statement.

Eleven co-sponsors include senators on the left, such as Fetterman, and on the right, like Sen. Tommy Tuberville (R-Ala.). According to the aide, Coons and Wicker aim to include the proposed legislation in the farm bill.

Ag committee ranking member Sen. John Boozman (R-Ark.) is not on the bill, but Coons has worked closely with his and Chair Debbie Stabenow’s (D-Mich.) staff, the aide said.

Background: Chicken farmers often take on enormous loans to build highly specialized barns to raise tens of thousands of chickens. Nearly all chickens are raised on contract with major poultry processing companies such as Tyson or Pilgrim’s Pride.

During an outbreak, USDA policy sometimes prevents companies from placing birds in areas where flocks were recently contaminated — known as control areas. That means farmers, many of whom already struggle with tight margins, don’t get paid.

Historically, such as during the 2014-15 outbreak, the control area blocked placements for weeks. But the most recent outbreak was much worse, and USDA had to stop poultry farming in some areas for months.

 

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Row Crops

— Ag Secretary Tom Vilsack will travel to Michigan on Tuesday to meet Stabenow in her home state. The two will visit a local market and a site for summer school meal distribution.

— Democratic senators introduced a bill to help small farmers access funds in the Environmental Quality Incentives Program, a key farm bill conservation program. The bill would create a subprogram tailored to the needs of small farms.

— Bamboo farming is taking off in Alabama, the Greenville Advocate reports.

THAT’S ALL FOR MA! Drop us a line: gdowns@politico.com, meredithlee@politico.com, marciabrown@politico.com, mmartinez@politico.com, abehsudi@politico.com and ecadei@politico.com.

 

A message from Organization for Competitive Markets:

Farmers and ranchers need less DC in their lives. Yet the Hinson/Marshall “EATS Act” would give federal bureaucrats more control. It would wipe out state laws that benefit dairy farmers, cattle ranchers, egg producers, and family-owned pig operations. Congress said NO to this controversial idea in 2013 and 2018 because it dismantles states' rights, assaults local control and empowers foreign corporations at the expense of our agricultural heritage. China’s ownership of US farmland is bad enough, but nullifying all state laws that give family farmers the little protection they have against foreign corporations, makes matters even worse for rural communities. EATS ACT: Good for China, bad for us.

 
 

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