Monday, August 5, 2024

What’s Harris’ plan to fight high food prices?

Delivered every Monday by 10 a.m., Weekly Agriculture examines the latest news in agriculture and food politics and policy.
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By Meredith Lee Hill and Grace Yarrow

With help from Marcia Brown

Vice President Kamala Harris delivers remarks at a Sigma Gamma Rho Sorority gathering in Houston, Wednesday, July 31, 2024, in Houston.

Vice President Kamala Harris told a packed campaign rally in Atlanta last week that she would “take on price gouging and bring down costs” on “Day One” of her presidency. | LM Otero/AP

QUICK FIX

— Kamala Harris is leaning into promises to fight price gouging by corporations. Hill progressives hope that means she’s open to unleashing executive powers to address high food prices.

— Lawmakers are siding with the Federal Trade Commission in its legal bid to stop the $25 billion merger of Kroger and Albertsons.

— An updated cost estimate of the House Ag Committee’s farm bill prompted more partisan squabbling, with time running out for any new reauthorization this year.

IT’S MONDAY, AUG. 5. Welcome to Morning Agriculture! We’re your hosts Meredith Lee Hill and Grace Yarrow. Happy National Farmers Market Week! Send tips to meredithlee@politico.com and gyarrow@politico.com and follow us at @Morning_Ag.

Driving the day

HARRIS’ FOOD PRICE FIGHT: Democrats on Capitol Hill are eager for Vice President Kamala Harris to focus on fighting high food prices in her campaign. And progressives are highly encouraged by recent comments the presumptive Democratic nominee made on the campaign trail as a sign she might do just that, your host reports.

Harris told a packed campaign rally in Atlanta last week that she would “take on price gouging and bring down costs” on “Day One” of her presidency.

That got the attention of progressives, who hope the vice president will be more willing than President Joe Biden to wield executive power to squeeze corporations they argue have been inflating the price of groceries and other everyday goods.

Key election issue: Those cost-of-living issues continue to be a focal point of the 2024 campaign, one many Democrats fear could drag them down in November unless they come up with a more aggressive response.

As president, Biden has promised to crack down on price gouging and so-called shrinkflation, but has so far resisted progressives’ latest call to unleash a suite of executive actions targeting food retailers and others.

While Harris has mostly echoed White House talking points on the economy, her rhetoric in recent weeks has made progressive Democrats hopeful that she could break with Biden on the matter.

“I love that,” Rep. Jared Huffman (D-Calif.) said of Harris’ recent focus on corporate price gouging. “I honestly think that Democrats should have been talking about grocery prices for the last six months.”

GOP attacks: Harris is now set to face a barrage of GOP attack ads and other critiques seeking to blame her for higher grocery and everyday costs. Sen. Rick Scott (R-Fla.) and GOP senators are already decrying “Harris price hikes,” in an effort to tie her directly to inflation and increased federal spending under Biden’s administration.

Republicans also argue high food costs and inflation are already baked into voters’ views of the Biden-Harris administration and how they plan to vote in November.

Down-ballot Democrats, many of whom worried President Joe Biden didn’t acknowledge the pain of inflation soon enough, are encouraging Harris to get ahead of the coming onslaught. Their concerns were only heightened after new economic data released last Friday showed a surprising jump in unemployment that’s now fueling talk of a possible recession.

‘Reading tea leaves’: Biden officials privately expect Harris to take the lead on more official economic and other policy rollouts that could boost her in the coming weeks, especially any focused on lowering costs.

But the White House isn’t currently working on any big price gouging policy moves that she could tout on the campaign trail, according to two people familiar with the plans, who were granted anonymity to discuss private conversations.

Huffman and progressives across Capitol Hill are hopeful Harrs’ campaign rhetoric translates into even stiffer measures to crack down on everything from big food corporations to Big Oil. But that group noted they’re “reading tea leaves” at this point.

"I think it's very unclear what the VP will prioritize on policy at the moment,” said a person familiar with White House policy discussions, who was granted anonymity to discuss private conversations. Read more for POLITICO Pro subscribers here.

Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You’ll also receive daily policy news and other intelligence you need to act on the day’s biggest stories.

On the Hill

BACKING FTC: Lawmakers are voicing support for the Federal Trade Commission’s bid to stop a proposed $25 billion grocery megamerger in a new friend-of-the-court brief.

“The proposed merger is part of an alarming trend toward consolidation in the supermarket industry,” write a group of 28 Democratic lawmakers, including Sen. Ron Wyden (D-Ore.) and Rep. Pramila Jayapal (D-Wash.), in support of the FTC’s request for a preliminary injunction, which would temporarily halt the merger.

FTC lawyers have argued that the deal, which would combine leading grocery retailers Kroger and Albertsons, would raise prices, depress workers’ wages and cut down on consumers’ choices.

The arguments: The lawmakers are especially concerned about the proposed merger’s impact on workers.

“The merger will increase Kroger’s and Albertsons’ market power specifically over unionized workers … in part, because the wages and working conditions of non-union employees are largely irrelevant to the bargaining dynamics between union workers and their employers,” they write. “Simply put, a non-union grocery job is not a reasonable alternative to a union grocery job.”

As part of its case, the FTC and states are claiming the deal would negatively impact union workers at the stores.

The companies have said that the merger would enable them to lower consumer prices and they have proposed selling nearly 600 stores to C&S Wholesale Grocers, which is largely a supplier to independent stores, in order to preserve competition within regional markets.

FARM BILL PRICE TAG: The Congressional Budget Office released an updated cost estimate for the House’s farm bill Friday, largely unchanged from previous scores but setting off a new round of partisan bickering over the stalled negotiations.

The House Ag Committee’s farm bill, which the panel advanced in May, would include nearly $33 billion in deficit spending over 10 years, per the updated estimate.

“Today’s score from CBO shows once again that the House Republican proposal is not paid for and relies on magic math and wishful thinking,” Senate Ag Chair Debbie Stabenow (D-Mich.) said in a statement.

House Ag Chair G.T. Thompson (R-Pa.) said the new score shows “there is still more to be done to make certain the bill—one that has been consistently praised by those across the agriculture value chain—can be brought across the finish line.”

Thompson said he’ll work with CBO to clarify what he said is an “underestimate” of spending that his bill would cut.

Vibe check: Lawmakers have privately signaled for months that the legislation will either be passed during the lame duck session or pushed into 2025. Some are publicly souring on any hope to wrap up the debate before the election, especially as they headed home for a long August break.

“I think, right now, we’ll be pushed into the lame duck,” Senate Ag ranking member John Boozman (R-Ark.) said in a brief interview last week before lawmakers left. “I understand how important it is to give our farmers certainty, that’s what they desperately need. On the other hand, we're not going to do something just to do something.”

Senate Ag member Peter Welch (D-Vt.) told MA last week he felt “anxious” about the farm bill’s timeline as constituents have been pressing for the reauthorization: “They just need us to get our jobs done.”

Row Crops

— The governor of fire-prone California is trumpeting new resources and attempting to make an asset out of the state's increasing flammability, our Camille von Kaenel reports.

— “Alcohol, Arrests and Acrimony”: The Wall Street Journal unpacks the legacy of the $21 billion Tyson Foods empire.

— Our Gavin Bade has a look inside how a top Donald Trump adviser is poised to pursue an even more disruptive set of trade policies under a second Trump administration.

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.

 

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