Monday, February 12, 2024

Inside the escalating funding and farm bill battles

Presented by CropLife America: Delivered every Monday by 10 a.m., Weekly Agriculture examines the latest news in agriculture and food politics and policy.
Feb 12, 2024 View in browser
 
POLITICO's Weekly Agriculture newsletter logo

By Garrett Downs and Meredith Lee Hill

Presented by

CropLife America

With help from Marcia Brown

QUICK FIX

— The appropriations fight over a nutrition program for millions of low-income moms and their babies is reaching a fever pitch on Capitol Hill, as WIC faces a rapidly approaching funding cliff.

— Battle lines in the farm bill fight are hardening as House Ag Chair G.T. Thompson (R-Pa.) tries to rally moderate Democrats to his plans. So far, they aren’t budging.

— Is the poultry industry ready to comply with new transparency requirements? 

HAPPY MONDAY, Feb. 12. We’re your hosts, Garrett Downs and Meredith Lee Hill. Send tips to gdowns@politico.com and meredithlee@politico.com, and follow us at @Morning_Ag.

 

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Driving the day

Rep. Bobby Scott is pictured.

Rep. Bobby Scott is the top Democrat on the House Education and Workforce Committee. | Evan Vucci/AP

FIRST IN MA — WIC STRUGGLE: Democrats on the House Education and the Workforce Committee are making a full-court press to include additional WIC funding in the upcoming Ag-FDA spending bill.

The White House has requested more than $1 billion in emergency funding to stave off a funding cliff that could cut benefits and push eligible people onto waiting lists in the coming months.

Republicans in the House have pushed back on the extra WIC funding, and even sought deeper cuts to regular funding this appropriations season. In the past, WIC has been the most bipartisan nutrition program on the Hill.

What they’re saying: In a letter provided exclusively to MA, every Democrat on the committee urged House Speaker Mike Johnson, Minority Leader Hakeem Jeffries, House Appropriations Chair Kay Granger (R-Texas) and ranking member Rosa DeLauro (D-Conn.) to meet the request — with warning of harsh consequences if it is not met.

“If Congress fails to include additional WIC funding, as many as two million

young children and pregnant and postpartum adults could lose access to WIC benefits entirely,” the lawmakers wrote.

“Any funding shortfall would force eligible new parents and children (predominantly preschoolers, toddlers, and postpartum adults) onto waiting lists and deny them vital nutrition benefits and WIC services that are critical for healthy development.”

Meanwhile in the Senate: Senate GOP negotiators are roughly targeting $700 million for a WIC boost beyond regular appropriations funding, according to two lawmakers, who were granted anonymity to discuss private conversations.

House Republicans will push for the lowest number possible, according to the two lawmakers. The biggest issue is still deciding which funding offsets to use to pay for the increase, according to the lawmakers. “We’re going to have to cut some ag programs,” one of the lawmakers added.

A message from CropLife America:

U.S. farmers’ access to pesticides, which are critical for growing crops in an affordable and sustainable way, is in jeopardy because of misguided state regulatory efforts. Over 360 agricultural and other groups support the bipartisan Agricultural Labeling Uniformity Act to help the U.S. correct course while still allowing for local use case restrictions. Find out how the Agricultural Labeling Uniformity Act protects America’s farmers.

 
FARM BILL BATTLES

Rep. Glenn Thompson (R-Pa.).

House Ag Chair G.T. Thompson has been meeting one-on-one with a handful of Democrats in recent months to build support for his plans. | Francis Chung/POLITICO

TROUBLED TALKS: As your hosts scooped, House Ag Democrats huddled privately last week to dig in against GOP efforts to repurpose key climate and future nutrition funding in the farm bill to boost wider conservation projects, farm commodity programs and key Democratic priorities.

Top House Ag Democrat, Rep. David Scott (D-Ga.) and other key Democrats are trying to keep moderate members of their party from supporting the GOP plans. Though, House Democrats haven’t put forward any alternative funding plans.

Moderates’ challenges: So far, most moderate House Democrats have calculated it’s not worth the political backlash of publicly supporting the GOP plans at this point.

Some also note even if a handful or more of them do break from their party, it wouldn’t be enough to move a farm bill given a large number of Democrats that will likely be needed amid opposition from hard-right Republicans.

More than 130 Democrats will likely be needed to pass a farm bill if the legislation moves under suspension, as it’s likely headed, and Democratic leadership has pushed back against any changes to the IRA and nutrition programs.

GOP push: House Ag Republicans have proposed repurposing about $15 billion in IRA climate-smart agriculture money and restricting future Thrifty Food Plan updates to SNAP to pay for spending increases in the farm bill’s safety net and key Democratic priorities.

If Republicans insist on those reallocations from the IRA or changes to the TFP, then “a bipartisan bill is not going to come out of committee,” Rep. Jim Costa (D-Calif.) told MA.

House Ag Chair G.T. Thompson (R-Pa.), who has been meeting one-on-one with a handful of Democrats in recent months to build support for his plans, shot back in an op-ed with Agri-Pulse. The boost to the safety net and other bipartisan priorities for the farm bill would cost more than $75 billion.

“I am the only one who has put forth an actual plan to move a farm bill and pay for the bipartisan requests,” Thompson wrote, noting he’s “taken arrows and public missives at every turn.”

As we’ve reported, Senate Ag Chair Debbie Stabenow (D-Mich.) has reached out to vulnerable House Democrats to urge them not to support the GOP plans.

SENATE IMPASSE: In the upper chamber, senators are still locked in an impasse over similar funding questions.

Stabenow has tried to break the logjam by putting forward a crop insurance plan that would provide more affordable options for farmers, but also force them to opt out of separate risk mitigation programs.

Republicans have bristled at those plans. Notably, Senate Ag member John Hoeven (R-N.D.) told MA: “That’s not gonna work.”

Hoeven has been working on his own crop insurance plans, according to five people familiar with the matter who were granted anonymity to discuss private conversations. His legislation would also provide more affordable crop insurance options, but wouldn’t force producers to opt out of separate risk mitigation programs.

Funding puzzle: Stabenow doesn’t want to repurpose any climate or nutrition funding in order to fund Hoeven’s crop insurance plan. People familiar with the matter also say Stabenow discouraged Democrats from signing onto Hoeven’s plan before she circulated her own plan.

“It’s no secret that Chairwoman Stabenow is focused on improving crop insurance,” Stabenow’s Senate Ag Committee spokesperson Jay Tilton said in response. “It’s the No. 1 risk management tool for farmers, and she has been very public with her proposal. She certainly welcomes new ideas and any real, bipartisan proposal that can bring us closer to the finish line.”

Some commodity groups, including from Minnesota, have asked the state’s Senate Ag Democrats Amy Klobuchar and Tina Smith to co-sponsor Hoeven’s yet-to-be unveiled crop insurance bill. Klobuchar is in line to be the top Democrat on the panel next Congress after Stabenow retires at the end of the year. Smith chairs the subcommittee on commodities, risk management, and trade.

Both Klobuchar and Smith have been “noncommittal” about signing onto Hoeven’s bill, according to a person familiar with the matter, who was granted anonymity to discuss private conversations. The person noted that if producers opt out of separate risk mitigation programs as required by Stabenow’s plan, “you might guess right, or you might guess wrong” on coverage needed for that year.

Commodity groups now have their eyes on Sen. Jon Tester (D-Mont.), who is one of the most vulnerable Democrats up for reelection this fall.

 

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Fresh from USDA

DON’T BE CHICKEN: USDA’s first pro-competition rule, which will require poultry companies to increase transparency for farmers who raise broiler chickens on contract, goes into effect Feb. 12.

“From what I have seen, [there’s been] a lot of effort to come into compliance before it goes into effect,” said a USDA official, adding that the agency has received a lot of questions from growers about contracts and from companies.

Lawmakers and industry had pressed USDA to delay implementation of the rule to no avail. The department is racing to finalize a suite of pro-competition rules, cementing a cornerstone of the Biden administration’s anti-monopoly agenda.

The chicken industry remains hotly critical of the rule and its implementation.

“Implementation has been beyond rushed, the overwhelming majority of our questions have yet to be answered, USDA seems to be moving the goalpost even as we work towards implementation, and despite USDA having had 500+ days to work on this rule, they don’t even seem to have answers to most of the questions that are coming up,” National Chicken Council spokesperson Tom Super told MA.

Turkey growers left out?: The final rule as written won’t apply to turkey growers, a prospect that has rankled those producers. Asked about this exception, the USDA official said that the department didn’t collect enough evidence from the public to write an effective rule for turkeys, which have different biology and other distinctions that make it difficult to write a universal rule.

“Had we gone final on a rule not well-designed for turkeys, it would have put the whole rule at risk,” the USDA official said. However, turkey processing companies can still be held liable for deceptive practices and other violations of the nation’s antitrust laws, the official added.

 

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Row Crops

ICYMI: President Joe Biden and Democrats are ready to run on the economy. But Republicans are digging in too, highlighting the still painful costs of groceries and other key consumer goods, Meredith and Eleanor Mueller report.

— The Environmental Defense Fund’s annual Capitol Hill fly-in is this week, with a focus on “how Congress can align economic and environmental incentives for agricultural producers.”

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 CropLife America:

360+ agricultural groups back the bipartisan Agricultural Labeling Uniformity Act to protect our food supply, farmers’ livelihoods, and the environment. Some states are trying to enact pesticide labeling requirements that directly contradict scientific guidance from the EPA, jeopardizing farmers’ access to pesticides—a critical input for growing crops.

If not addressed, this will create an unworkable patchwork of regulations that directly impacts the availability of these essential products for farmers—lowering yields, increasing farmers’ costs, threatening domestic food security, and ultimately, raising prices for consumers, while erasing decades of conservation gains. The Agricultural Labeling Uniformity Act ensures these products remain available while not affecting state and localities' ability to restrict pesticide use, or any individual’s rights in the legal process. Learn more.

 
 

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