A September to remember

Presented by Center for Science in the Public Interest: Delivered every Monday by 10 a.m., Weekly Agriculture examines the latest news in agriculture and food politics and policy.
Sep 05, 2023 View in browser
 
POLITICO's Weekly Agriculture newsletter logo

By Garrett Downs

Presented by

Center for Science in the Public Interest

With help from Meredith Lee Hill

QUICK FIX

— The Senate returns to Washington this week with less than four weeks to fund the government through fiscal year 2024. The House, set to return next week, is still in shutdown limbo.

— Appropriations and the farm bill are both running up against a Sept. 30 deadline. MA breaks down the pitfalls and hurdles for each.

— MA caught up with the National Corn Growers Association to break down the trade group’s top priorities as Congress hurdles toward reauthorizing a farm bill.

HAPPY TUESDAY, Sept. 5. Welcome back 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 Center for Science in the Public Interest:

The 2023 Farm Bill is an opportunity to make sure everyone has access to affordable, nutritious food, regardless of income. Crucial changes can and should be made to ensure money isn’t a barrier to basic nutrition. Everyone deserves the opportunity to thrive. Learn more here.

 
Driving the day

FALL FOLLIES: The return of the Senate on Tuesday is the starting gun for a pair of sprints: funding the government through fiscal 2024 and reauthorizing a farm bill for the next five years before a critical Sept. 30 deadline.

Starting with approps: The Senate has already advanced all 12 appropriations bills from committee. Senate Majority Leader Chuck Schumer (D-N.Y.) said in a “Dear Colleague” letter last week that the Senate’s “focus will be on funding the government and preventing House Republican extremists from forcing a government shutdown.” That likely means the Senate will begin considering them on the floor this session.

“We cannot afford the brinkmanship or hostage-taking we saw from House Republicans earlier this year when they pushed our country to the brink of default to appease the most extreme members of their party. … I have urged House Republican leadership to follow the Senate’s lead and pass bipartisan appropriations bills,” he added.

Complications: While Schumer says the Senate will lead the way on appropriations, there’s no easy way around a House mired in gridlock.

The debt limit deal struck by Speaker Kevin McCarthy and President Joe Biden was supposed to pave the way to a neat and tidy appropriations process, but House conservatives didn’t get the memo. Instead, they pressured McCarthy and appropriations leaders to undercut agreed to spending numbers in the debt limit deal, resulting in partisan bills filled with massive cuts and wishlist conservative policy riders — and the ultra-conservative Freedom Caucus still wants more.

On Ag-FDA: House Republican leadership tried and failed to pass the Agriculture-FDA spending bill before they left for August recess, but that bill never even made it past the Rules Committee. Among the controversial issues were steeper cuts to the USDA’s agriculture and nutrition programs and a rider to ban mail-order sale of the abortion pill mifepristone.

 

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The Countdown

TICK-TOCK ON THE CLOCK: Finding a way to crack the impasse on spending will need to happen before Sept. 30, the end of the fiscal year and the last day before a potential government shutdown. The farm bill will also expire on Sept. 30.

Congressional leaders have said a CR is likely coming, due to the time crunch. The farm bill will also likely need an extension to keep critical farm programs up and running before Congress passes a new one. Key agriculture lawmakers have noted that appropriations, a backup at the Congressional Budget Office and the debt limit fight have delayed work on the farm bill.

Even a CR will be hard: According to Playbook, McCarthy last week urged his members to simply back a stopgap and hold their policy demands for long-term government spending bills, a fight that will come later in the year. The Freedom Caucus said two weeks ago that they would do no such thing, and would only support a CR with their priorities and no additional funding for Ukraine.

That’ll be a problem for the Senate and the White House, which are more amenable to folding a supplementary budget request from the White House into a CR.

Among the White House’s asks for ag in their so-called “anomalies” report to tag along on the CR: $1.4 billion for the Special Supplemental Nutrition Program for Women, Infants, and Children; modifying loan eligibility at USDA to provide more loans to non-socially disadvantaged farmers; and reauthorizing the mandatory livestock reporting program.

Kicking the farm bill can: Notably, Schumer’s “Dear Colleague” did not mention the farm bill — something that raised eyebrows among ag circles.

As it stands, getting the farm bill done by Sept. 30 with a government shutdown looming seems all but impossible.

“We are continuing to work on a bipartisan farm bill,” said a Senate Ag Committee staffer on the omission.

 

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FARM BILL BATTLES

CORN GROWERS Q&A: MA caught up with Brooke S. Appleton, vice president of public policy at the National Corn Growers Association, via email to break down the group’s big farm bill priorities.

The answers have been edited for clarity.

MA: What are NCGA’s top priorities for the farm bill?

Brooke S. Appleton: As grower leaders for NCGA testified this spring, crop insurance is our number one priority in the farm bill. Federal crop insurance has a proven track record of helping producers quickly respond to natural disasters.

As one corn grower recently said in an interview, risk management is all about “crop insurance, crop insurance, crop insurance.”

NCGA supports increasing the affordability of crop insurance for producers, and we are working with coalition partners to defeat efforts to restrict producer access to crop insurance products or make harmful program cuts.

Corn growers are also committed to strengthening the producer safety net. And we are seeking improvements to strengthen the Agriculture Risk Coverage and Price Loss Coverage commodity programs. These two programs support farmers only when they face significant drops in commodity prices or revenues.

USDA trade promotion programs are also top of mind. We are asking Congress to increase funding in the farm bill for the Market Access … and the Foreign Market Development programs. These programs promote U.S. agricultural products overseas and connect potential foreign customers to American farmers and their products, returning an average of $24 per dollar spent.

And finally, we are highly supportive of USDA’s voluntary conservation programming, which plays an important role in helping advance the adoption of climate-smart agricultural practices.

MA: NCGA recently made a proposal to do a mandatory base acre update in the farm bill. Why do corn growers want that, and what is the consensus on the Hill on the chances for that?

BA: Corn growers believe that the base acres used for commodity programs should better reflect today’s risks and recent crop planting rotations. At NCGA’s Corn Congress in July, grower delegates voted to support a nationwide mandatory base acre update. A one-time reset of base acres would help producers across the country who either have limited or no access to the commodity programs due to a lack of base acres for their farms. Young and beginning farmers particularly need new base acres and access to these farm programs.

Compared to the current system, an update to base acres would provide more equity for producers, reform the underpinning of the commodity programs and may ultimately provide savings which could be used to further strengthen the safety net programs. Inaction will only make the gaps between base acres and recent plantings wider.

MA: The farm bill is barreling toward an extension. How does that impact corn growers? What would happen if Congress doesn’t pass an extension?

BA: While Congress has very few legislative days left before September 30, corn growers continue to focus on a full reauthorization of the farm bill.

The farm bill plays a critical role in helping growers navigate risks outside of their control and the certainty provided by USDA programs is important for farmers, who are already making decisions for the 2024 crop year based on markets, growing conditions and risk calculations. NCGA supports a bipartisan, comprehensive agriculture and nutrition reauthorization as soon as possible.

MA: Increasing reference prices are a big ask for most major commodity groups. What is the status of that push? Are corn growers concerned there won’t be enough money to increase reference prices? How much money would there need to be to create a significant boost?

BA: Corn growers value having the Price Loss Coverage program, particularly during periods of deep and sustained low commodity prices. The current statutory reference price for corn is well below current market prices and long-term historical average prices. However, a major challenge for commodity organizations in evaluating and advocating for potential changes to farm programs is the bearish projections by the Congressional Budget Office for long-term commodity prices, particularly compared to projections from USDA and land-grant institutions.

With the potentially high costs of raising statutory reference prices, we have focused on a more cost-effective way to improve the PLC program. The effective reference price escalator mechanism was added in the 2018 farm bill and allows the program to have more responsive levels of protection that can rise in response to actual market prices to enhance risk protection for producers. Additional improvements to the effective reference price will provide meaningful support to corn growers throughout the life of the 2023 farm bill even if commodity prices continue to be volatile or decline.

MA: Corn growers have been out front on trade issues lately. How can the farm bill address trade concerns?

BA: Yes, NCGA and state corn growers have been sounding the alarm for the last year about Mexico’s troubling position on biotech corn imports. The situation underscores the importance of holding trading partners responsible for the agreements they sign, in this case the U.S-Mexico-Canada Agreement. On the upside, the highly effective approach Ambassador Katherine Tai, USDA Secretary Tom Vilsack and Chief Agricultural Negotiator Doug McKalip have taken on this issue serves as a model of how we can enforce these agreements.

In terms of the farm bill, Washington needs to increase its investments in programs that help grow foreign markets for American farmers. … [W]e are poised to export our goods to new regions of the world that need our products. But we need mechanisms in place that will help facilitate those relationships.

 

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Row Crops

DTN’s Progressive Farmer looks into the latest WOTUS rule, which is notably less restrictive but still has ag groups up in arms.

The Washington Examiner mulls why agriculture isn’t a bigger issue in the presidential race.

— When drought hit Minnesota in 2021, farmers cranked up their water usage, reports The New York Times.

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 Center for Science in the Public Interest:

Sixty percent of people who participate in SNAP still can’t afford enough healthy food. Access to healthy food shouldn’t depend on how much money you have. It’s time for Congress to support access to healthy, affordable food through SNAP in the 2023 Farm Bill by increasing participants’ purchasing power for nutritious foods and investing in research to strengthen food and nutrition security. Learn more here.

 
 

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