Monday, July 15, 2024

Industry makes last-ditch effort for new farm bill

Presented by National Corn Growers Association: Delivered every Monday by 10 a.m., Weekly Agriculture examines the latest news in agriculture and food politics and policy.
Jul 15, 2024 View in browser
 
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By Grace Yarrow

Presented by National Corn Growers Association

The U.S. Capitol building is pictured.

Industry stakeholders are making last pushes for their farm bill priorities ahead of a volatile campaign season. | Francis Chung/POLITICO

QUICK FIX

— Industry stakeholders are making a last-ditch effort to push for a new farm bill, but bracing for another extension amid a deadlock and turbulent election season.

— It’s RNC week. We’re breaking down how the Republican platform (to be finalized this week) would continue the party’s criticism on Democrats’ food price policies.

— USDA is reversing its decades-old marketing facilitation order on cranberry producers in several states.

IT’S MONDAY, JULY 15. Welcome to Morning Agriculture! I’m your host Grace Yarrow. What does your grocery cart say about you? Send tips to gyarrow@politico.com and follow us at @Morning_Ag.

 

A message from National Corn Growers Association:

America is in pursuit of its clean energy future, and our nation’s corn farmers are helping to put this goal within reach. Ethanol, made from corn grown on farms throughout the heartland, significantly reduces harmful tailpipe emissions, saves drivers money at the pump and strengthens U.S. energy independence. Learn more about this existing clean energy solution.

 
Driving the day

A LAST-DITCH PUSH: Industry stakeholders are making last pushes for their farm bill priorities ahead of a volatile campaign season, but are bracing for another extension.

A Sept. 30 farm bill deadline is fast approaching, and lawmakers need to decide on an extension plan before the end of the calendar year, when key programs in the 2018 farm bill expire. Congress will only be in Washington for only a few weeks between now and the November election.

The election’s impact: While lawmakers are at that impasse, industry leaders visiting the Hill have pushed for any movement on a farm bill. Some industry representatives have expressed concerns about how November election results might tilt what the final farm bill looks like, especially in light of recent campaign drama within the Democratic party.

Rep. Nikki Budzinski, a vulnerable Illinois Democrat on the House Ag Committee who voted against the House GOP-led farm bill in May, said she’s been meeting with ag stakeholders who are still hopeful for getting a bipartisan bill done. She told us discussions of how the election’s outcome could affect the farm bill and other policy talks are “hypotheticals.”

“I think what we need to be doing is working with reality,” she told MA last week. “I'm frustrated by Republican leadership that we've not seen any action on the floor even after that markup, no real conversations from what I understand between the House and the Senate on getting to a conference bipartisan farm bill. Those are things that can happen regardless of any election results.”

NCGA’s ELEVENTH-HOUR PUSH: The National Corn Growers Association is meeting with Hill staff this week to highlight their farm bill and other priorities in a last push before the election and farm bill deadline.

NCGA President Harold Wolle told MA in an interview that growers are prepared for another extension of the 2018 farm bill, but hopeful for updates that would support the industry as it grapples with high input costs and weather disaster recovery, like his own farm in Minnesota that was hit by recent flooding.

“While we can live with an extension, we are certainly advocating and want to see the improvements that are possible with a new bipartisan, full five year reauthorization,” Wolle said.

Corn producers are frustrated by the deadlock, Wolle said, but will continue to plan ahead under the provisions in the 2018 farm bill.

Wolle and other NCGA members will also visit key agency representatives to discuss future movement on sustainable aviation fuel tax credits, which are top of mind for the corn industry.

Still in a deadlock: House Ag Chair G.T. Thompson (R-Pa.) told MA last week he’s still working to find time on the House schedule for a full vote on his bill, which advanced out of committee in May.

He said a “big holdup” is the wait for updated Congressional Budget Office projections for the package, as farm bill funding has become one of the biggest contentions.

In the higher chamber: Senate Ag Chair Debbie Stabenow (D-Mich.) has been focused on other priorities in her committee, including circulating text of her cryptocurrency regulation bill soon, even as she faces doubts from ranking member John Boozman (R-Ark.), our Eleanor Mueller reported.

Though committee negotiators told MA they’ve been meeting about the farm bill in recent weeks, they’ve planned no next steps.

 

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AT THE RNC

FOOD PRICES KEY AT RNC: The proposed RNC platform, which will be finalized by a vote of the full convention body this week, highlights inflation and cost of living as key issues to tackle.

Among the 20 promises to be discussed this week is the effort to bolster domestic manufacturing, but does not explicitly mention the agricultural sector.

Project 2025, a Heritage Foundation-backed plan for a massive overhaul of the federal government in the event of a Republican presidential win, includes an entire section of how to shake up USDA and other agencies. (To be sure, former President Donald Trump has tried to distance himself from Project 2025’s proposals, insisting neither he nor his campaign are involved with it.)

Food price news: Grocery prices slowed in June, recent federal data showed. The slowdown is a positive sign for Biden and Democrats who are trying to convince consumers that the economy is strong. Democrats have acknowledged that food prices are too high, which Biden and others have blamed on corporate gouging or “greedflation.”

It’s an uphill battle for Biden as Republicans hammer his administration’s policies for inflating grocery costs and the general cost of living, a strategy they’re expected to continue this week in Milwaukee.

An RNC press release from last week blamed Bidenomics for “drain[ing] the wallets of families and businesses across the country.”

In Milwaukee this week? Don’t miss MA’s own Meredith Lee Hill at the CNN-POLITICO Grill on Tuesday in conversation with Thompson and Boozman at 11:45 a.m. CT and with Sen. John Thune (R-S.D.) at 2:30 p.m. CT. Watch live here.

ELSEWHERE IN WISCONSIN: Independent presidential candidate Robert F. Kennedy Jr. is scheduled to meet with farmers in Baraboo, Wisconsin, to discuss his regulatory plans to “favor family farms and regenerative practices” in agriculture, per a campaign announcement.

During that Wednesday trip, Kennedy is also planning to talk about removing “corporate influence” in USDA, FDA and EPA, and changing subsidy policies to “no longer support big corporate producers.”

 

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APPROPS UPDATE

OTHER HEADACHES AHEAD: House Republicans’ plan to pass seven spending bills during the last two weeks of July is even more uncertain after 10 GOP lawmakers joined with Democrats on Thursday to tank the Legislative Branch measure, our Caitlin Emma and Jennifer Scholtes report.

After this week’s break for the RNC, the Rules Committee has said it could meet the week of July 22 to tee up the Ag-FDA and other bills for floor action.

The remaining fiscal 2025 bills certainly present more pitfalls than the $7 billion Leg Branch measure, which should have been an easy layup for House GOP leaders. Any unpopular provisions in the Ag-FDA bill, which provides $25.9 billion in funding across USDA and FDA, could mean new bumps in the road when lawmakers return from this week’s RNC recess.

AROUND THE AGENCIES

CHANGES COMING IN CRANBERRY INDUSTRY: USDA is terminating a marketing order that regulates assessments and reports of cranberries grown in several states.

The marketing order was established in 1962 to give cranberry producers authority to establish volume control, recordkeeping requirements and research activities. After getting feedback from producers last summer, USDA decided there wasn’t enough industry support for the program to continue.

The agency opened public comment for the proposed termination in December and published it in the federal register Friday. That step eliminates the order in Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, Oregon, Washington and Long Island, New York.

Context: USDA has created marketing orders since the 1930s, to mixed reviews from consumers and producers, to maintain consistent market conditions for agricultural commodities through quality and quantity controls and market facilitating activities.

Most recent USDA data valued the total of cranberries harvested in the U.S. at $272 million in 2021, dominated by a handful of growers.

 

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Row Crops

— Model and TV personality Chrissy Teigen is working with USDA to promote its summer nutrition SUN Bucks program.

— Texas Farm Bureau Communications Director Gary Joiner told us damage from Hurricane Beryl has affected some agricultural producers near the coast but “could have been worse,” with most crops in affected areas salvageable.

— Extreme heat events are causing billions of dollars in damage this year that insurers won’t cover, from damaged and stunted crops to heat-related worker injuries and equipment damage. (The Wall Street Journal)

THAT’S ALL FOR MA! Drop us a line and send us your agriculture job announcements or events: gyarrow@politico.com, meredithlee@politico.com, marciabrown@politico.com, abehsudi@politico.com and ecadei@politico.com.

 

A message from National Corn Growers Association:

Ethanol paves the way for America’s clean energy future. This low-cost, low-carbon fuel already exists at gas stations throughout the country, but our decision-makers need to expand its usage and availability.

The benefits of ethanol are far-reaching. In fact, this home-grown fuel:

  • Results in up to 52 percent fewer greenhouse gas emissions than regular gasoline.
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  • Bolsters the economy, supporting nearly 394,400 direct and indirect jobs, adding $32.5 billion in household income and contributing more than $54.2 billion to the nation’s gross domestic product last year.
Learn more at NCGA.com/ethanol.

 
 

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