Monday, December 16, 2024

Collapsed farm aid deal imperils spending package

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By Grace Yarrow and Meredith Lee Hill

Presented by the National Grocers Association

From left, Mitch McConnell, Chuck Schumer, and Mike Johnson listen to remarks.

Excluding critical farm aid from the year-end talks will mean many hurting producers will have farm loans denied amid already-challenging economic conditions. | J. Scott Applewhite/AP

QUICK FIX

— Congressional talks to secure economic aid for farmers fell through over the weekend, imperiling the end-of-year spending deal to avoid a government shutdown at the end of the week.

— Agriculture groups are pushing lawmakers to not pass any stopgap funding bill without economic aid for farmers.

— Challenges to replace Rep. David Scott (D-Ga.) as the top Democrat on the House Ag Committee will come to a head today during a caucus steering committee meeting on the contested race.

IT’S MONDAY, DEC. 16. Welcome to Morning Agriculture. We’re your hosts Grace Yarrow and Meredith Lee Hill. Happy last week of Congress (hopefully) for 2024! Send tips to gyarrow@politico.com and meredithlee@politico.com and don’t forget to follow us @Morning_Ag.

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Driving the day

FARM AID FALLS APART: Congressional leaders failed to reach an agreement over the weekend around economic aid for farmers and climate funding for farm conservation programs, leaving out both from the year-end funding package, as Meredith reported.

The initial talks between Democratic and GOP leaders officially broke down overnight Friday, resulting in neither side getting what it wanted.

CR delay: Speaker Mike Johnson’s team went back to the negotiating table Saturday, trying to find a potential workaround. Johnson had intended to release the full stopgap funding bill Sunday, but pushed that timing due to fighting over the farm economic aid and other provisions in the massive spending package.

Rebellion brewing: The threat of a new wave of GOP defections among farm district Republicans presents a fresh challenge for Johnson, who is already navigating a narrow majority and opposition from his own right flank as he tries to fund the government before a shutdown Dec. 21.

And it will likely force the speaker to find more Democratic votes before the current funding runs out Friday. But Democrats are demanding their own additions in return.

GOP leaders have told lawmakers that Johnson wants to pass the entire funding measure and disaster package together, via suspension, according to two other people familiar with the matter. But that process requires a two-thirds majority, making the ag state Republicans’ votes even more critical.

Farm bill talks: Lawmakers are pushing for the year-end funding stopgap measure to include a one-year farm bill extension and separate funding for farmers hit by hurricanes and other natural disasters. But top negotiators are still exploring whether they can attach any economic aid for farmers.

Economic toll: Excluding the critical farm aid from the year-end talks will mean many hurting producers will have farm loans denied amid already-challenging economic conditions.

Republicans and some Democrats have warned of a spiraling farm crisis in rural America as a result of inflation, a delayed new farm bill and a raft of other negative factors. GOP leaders were pushing for $12 billion in additional economic aid for farmers in the final hours.

 

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IRA $: Separately, $14 billion in conservation climate funding from the Inflation Reduction Act is now likely to expire and never be reinvested in the farm bill for years to come — a huge blow to Democrats and their signature climate law. Though, lawmakers haven't yet reached a final deal.

Many agriculture Republicans wanted to reinvest the IRA funding, which would have boosted the farm bill baseline. But Democrats and Republicans have disagreed over whether to keep strict climate parameters attached to the funding.

LOBBYING EFFORTS: A slew of powerful farm groups and crop trade associations are calling for lawmakers to oppose a spending package if it doesn’t include the billions in farm aid congressional leaders are poised to leave out.

The influential, conservative-leaning agriculture lobby American Farm Bureau Federation also publicly called on lawmakers to oppose the stopgap bill if it doesn’t include farm aid.

“I call on members of Congress who represent ag to stand with farmers by insisting the supplemental spending bill include economic aid for farmers and voting it down if it doesn’t,” AFBF President Zippy Duvall said Saturday.

Pushing for economic aid has been a top priority of ag groups for months, given that talks about passing a new farm bill have been essentially stalled for months. They’d warned, too, about the impact of not passing a new farm bill reauthorization as farmers are grappling with economic downturn, high input prices and natural disasters threatening their productions.

“Lawmakers must not walk away from their responsibility to rural America,” said National Farmers Union President Rob Larew in a statement.

 

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On the Hill

DEM RANKING RACE: Rep. David Scott (D-Ga.), the top Democrat on the House Ag Committee, will face his two challengers for the role during a caucus vote today.

The House Democratic steering committee will meet today to discuss competitive committee races. Scott is facing challenges for the role from Reps. Jim Costa (D-Calif.) and Angie Craig (D-Minn.).

Behind-the-scenes: Industry groups and lawmakers have thrown their weight behind Costa and Craig. Nancy Pelosi, for one, has been making calls on Costa’s behalf to garner support for her fellow Californian. Costa and Craig have also highlighted their ag and rural experiences in pamphlets distributed to other lawmakers, arguing they can freshen up Democrats’ engagement with rural America and farmers.

Costa is also scheduled to appear on MSNBC's "Morning Joe" this morning.

Scott has faced years of questioning about his ability to lead the panel, and lawmakers have publicly acknowledged concerns they have about his health and leadership capabilities in recent weeks.

Scott hasn’t publicly talked about the ranking member race. And, in a major turn for the group, the Congressional Black Caucus still has not thrown its support behind Scott or any other candidates in contested committee races.

Costa has strong ties to a bloc of senior Democrats on the steering panel who have been pushing for him. Craig meanwhile is a frontline Democrat who has a strong relationship with Minority Leader Hakeem Jeffries and his leadership team. Jeffries, according to Democratic lawmakers, hasn't discouraged her or any other Democrat from challenging Scott and additional senior panel leaders.

According to more than two dozen House Democratic lawmakers and aides granted anonymity to discuss the matter, Scott is poised to lose the vote if he doesn’t step aside before the steering committee meets today.

Why it matters: The turmoil surrounding who will lead House Ag Democrats is particularly key given that farm bill talks will be pushed into 2025, when Democrats in both chambers will have to negotiate on their key priorities while in the minority.

That includes defending nutrition funding through the SNAP program and climate-smart ag support.

 

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Row Crops

— Agriculture Secretary Tom Vilsack called his likely successor at USDA, Brooke Rollins, and left a voicemail — but hasn’t received a response, MA’s own Marcia Brown wrote Friday.

— House Oversight Committee ranking member Rep. Jamie Raskin (D-Md.) and national security subcommittee ranking member Robert Garcia (D-Calif.) warned HHS Secretary Xavier Becerra of the need to protect ag workers from the spread of bird flu.

— Rising temperatures have made it difficult for farmers and fishermen used to being outside all day to do their jobs. Many farming communities have come up with a solution — do it at night. (Grist)

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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America’s independent grocers strongly support the FTC’s long-awaited enforcement of the Robinson-Patman Act. After decades of unchecked consolidation, giant national grocery chains were allowed to leverage their size and market power to devastate Main Street independent grocers and raise consumer costs. This oversight reduced competition and increased prices for essential goods. The FTC’s enforcement of the Robinson-Patman Act will help restore price competition across the economy, giving consumers more choices and access to lower prices at their local supermarket. By sending a clear message to giant national chains, the FTC helped level the playing field, supported businesses of all sizes, and enhanced market fairness. It's time for Congress to support the enforcement of this overlooked law to protect consumers, foster competition, and ensure a vibrant marketplace. Tell Washington that America is stronger when we safeguard competition and fairness; support and strengthen the Robinson-Patman Act. Learn more at nationalgrocers.com/antitrust.

 
 

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