Friday, May 10, 2024
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USDA Updates ERP Phase Two

The USDA is updating the Emergency Relief Program (ERP) Phase Two. The goal is to provide a method for valuing losses and accessing program benefits to eligible producers of certain crops.

Those crops can include grapes grown and used by the same producer for wine production or forage that’s grown, stored, and fed to livestock, that don’t generate revenue directly from the sale of the crop. These updates ensure that ERP benefits better reflect these producers’ actual crop losses resulting from 2020 and 2021 natural disaster events. The Farm Service Agency will begin accepting Phase Two applications from eligible wine grape and forage producers once the technical correction to ERP is published in the Federal Register, which should happen by this Friday (today), June 16. The deadline to submit applications for ERP Phase Two is July 14.

FSA Administrator Zach Ducheneaux says these updates address the unique needs of different producers.

Public Lands Council, Western Governors Lead BLM Rule Opposition

A proposed rule allowing the Bureau of Land Management to offer conservation-only leases was written without consulting people like farmers and ranchers who depend on the land.

In a letter to BLM director Tracy Stone-Manning, about 60 livestock groups say cattle and sheep producers have partnered with BLM in managing 245 million acres of federal land in the West for generations. However, BLM didn’t engage them in developing the proposed rule and gave no warning ahead of time that it was developing a rule. “Individually, each of the components of the proposal would have required detailed discussion,” the letter says.

“Together, the components demand BLM do the necessary work of engaging stakeholders to avoid conflict and develop lasting outcomes.” BLM’s five public information sessions have done little to compensate for the agency’s lack of advanced discussions. Instead of engaging stakeholders where they operate, BLM is holding briefings in urban areas.

AFBF Submits FMMO Proposals

The American Farm Bureau Federation submitted multiple recommended reforms of Federal Milk Marketing Orders this week to the Department of Agriculture. AFBF Economist Danny Munch says the proposals stem from the FMMO Forum held by AFBF last fall and a proposal by the National Milk Producers Federation.

Munch; “The formal amendment process for federal orders begins with a formal submission of a petition outlining specific recommendations on a pricing topic. So, recently USDA responded to a petition from the National Milk Producers Federation by announcing an action plan, and the first step of that action plan was the request for additional proposals from other stakeholders.”

Munch explains what the AFBF proposals include; “The first part of our proposal included a refinement of what’s in NMPF’s petition. So, we support in principle most of the recommendations in that petition, which includes switching back to the higher of class one mover, increasing class one differentials, and increasing the component value used in milk pricing. We also had eight other proposals based on our existing policy. Some of the main ones there are expanding the products surveyed in the National Dairy Products Report Survey, removing advanced pricing for class one and class two milk, and then implementing uniform check requirement to improve transparency for farmers.”

Munch says a hearing could start in August; “USDA will provide a little extra time for folks to refine their proposals after going through them. Those will be due mid-next week. Then, the end of July, the Secretary will make a final determination of whether or not to hold the hearing, and their tentative start date for a hearing, if it happens, is the end of August. And hopefully, farmers will be able to testify virtually or in person throughout that process and stay involved.”

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Tentative Agreement Reached on West Coast Port Labor Contract

On Wednesday night, a tentative agreement was reached between The Pacific Maritime Association and the International Longshore and Warehouse Union that would bring an end to year-long labor negotiations at west coast ports.

The negotiations had recently turned contentious with work stoppages and more being seen in recent weeks which in turn led to slowing of cargo movement, terminal shutdowns and more. The news of a new agreement is good news, including for red meat exporters and overseas customers.

USMEF President and CEO Dan Halstrom said; “This tentative agreement that’s been reached with the West Coast longshoremen is paramount of importance for us. It’s, you know, once again, a huge percentage of our business, especially the value added chilled business, which is our highest value business for both beef and pork. It goes off the west coast for our Asian markets: Japan, Korea, Taiwan, China. These exporters and importers in these countries rely upon a certainty for stability in terms of their shipping logistics. And before this agreement was reached, there was a large level of uncertainty.”

The agreement still needs to be ratified by both sides in a process that could take multiple weeks. However, both parties have stated they believe port operations will return to normal while the agreement is being ratified.

Legislation Would Bring Whole Milk Access to All Schools

Senator Roger Marshall this week introduced legislation that amends the Richard Russell National School Lunch Act to allow schools participating in the program to serve whole milk.

The Dietary Guidelines for Americans reports that nearly 90 percent of Americans do not meet their daily dairy intake recommendations. The Kansas Republican says, “I truly believe food is medicine, and by increasing kids’ access to milk, we will help prevent health complications down the road and encourage nutrient-rich diets for years to come.”

In 2010, Congress passed the Healthy, Hunger-Free Kids Act which amended nutrition standards in the School Lunch Program. Among the changes, the law mandated that flavored milk must be fat-free within the program. In May of 2017, USDA announced a rule that allowed schools to receive waivers for low-fat flavored milk, rather than only fat-free.

Leading nutritionists have found that whole dairy fats have no negative effect on a diet, and may even reduce risk of heart disease.

US House Panel Challenges Biden on Go-It-Alone Trade Policy

The U.S. House Ways and Means Committee issued a strong rebuke to President Biden’s go-it-alone approach to a first-round trade deal with Taiwan, passing a bipartisan bill to intervene in the effort.

The committee advanced 42 to nothing a joint House-Senate resolution to approve the U.S.-Taiwan 21st Century Trade First Agreement—a partial trade framework.

But Ways and Means senior Democrat Lloyd Doggett stressed the measure’s strong warning to President Biden, who’s trade ambassador signed the deal with Taiwan on June first. Doggett said; “No enforceable trade agreement can be entered with Taiwan or any trading partner in the world, without the approval of this Congress, acting through this committee. Only Congress through legislation, can ensure that the Taiwan Initiative on 21st Century Trade is a durable, reliable, legal framework, and a starting point for our further negotiations.”

The joint resolution blocks any further agreement with Taiwan, unless Congress approves it and the president publishes its text, first. Taiwan bought nearly 4.5 billion in U.S. farm goods last year—led by soybeans, beef, wheat, poultry and corn.

But even farm state lawmakers were critical of Biden’s approach. Trade Subcommittee Chair Adrian Smith of Nebraska; “No administration can unilaterally pursue trade policy without deferring to Congress, and in turn, the American people. As highlighted in this bill, Article I, Section 8, Clause 3 of the Constitution, grants Congress authority over international trade. No president can enter into a binding trade agreement without approval from Congress.”

A message even stronger coming unanimously from both parties to a president insistent on doing non-market access framework deals and trade missions instead of politically difficult free trade agreements.

Farm Action Condemns Attack on USDA’s Packers and Stockyards Act Authority in U.S. House Ag Appropriations Process

Washington, D.C. — Today the FY24 Agriculture Appropriations bill passed out of the U.S. House Committee on Appropriations with a policy rider that prevents the U.S. Department of Agriculture (USDA) from “promulgating, implementing, or enforcing” its proposed rules to strengthen the Packers and Stockyards Act (P&S Act). The bill passed along party lines with a vote of 34-27.

The P&S Act is a landmark law intended to protect farmers and ranchers from abusive and anti-competitive behavior. It successfully leveled the economic playing field for decades, until the erosion of its power by courts in the 1980s allowed corporations to gain unprecedented control over meat and poultry production.

In response to the Committee’s action, Farm Action’s Chief Strategy Officer Joe Maxwell, a Missouri hog and sheep farmer, issued the following statement:

“Farm Action condemns the language of this rider in the strongest possible terms. The Committee is essentially stripping the USDA of the ability to do its most important duty: protecting American farmers and ranchers by ensuring a fair and competitive marketplace.

“Farm Action staunchly condemns the action by the House Appropriations Committee Republicans of inserting language into the appropriations bill that revokes the 100 year-old right of a farmer or rancher to bring legal action for an abuse they individually suffered at the hands of an abusive monopolistic meatpacker. This is a blatant act to protect the world’s largest corporations at the expense of America’s farmers and ranchers.

“We are grateful to Full Committee Ranking Member Rosa DeLauro, Agriculture Appropriations Subcommittee Ranking Member Sanford Bishop, and Representative Chellie Pingree for speaking out against this language at today’s markup.

“The last time USDA tried to strengthen the Packers and Stockyards Act, those reforms were defeated through backdoor appropriations riders that ran out the clock. We can’t let this happen again.

“We call on the rest of the U.S. House of Representatives to stand with farmers and strike this language from the final Appropriations bill. If the House fails to do this, we urge the U.S. Senate to right this tragic wrong against American farmers and ranchers.”

Yesterday, Farm Action and 101 farmer, rancher, consumer, labor, farmworker, and faith organizations sent a letter urging the U.S. House Committee on Appropriations to remove this policy rider from its FY24 Agriculture Appropriations bill.

USDA Launches Effort to Strengthen Substantiation of Animal-Raising Claims

The Department of Agriculture Wednesday began implementing a multi-step effort to strengthen the substantiation of animal-raising claims. The agency says the effort builds on the work of USDA to protect consumers from false and misleading labels.

Agriculture Secretary Tom Vilsack adds, “USDA is taking action today to ensure the integrity of animal-raising claims and level the playing field for producers who are truthfully using these claims.” Animal-raising claims, such as “grass-fed” and “free-range,” are voluntary marketing claims that highlight certain aspects of how the source animals for meat and poultry products are raised. These claims must be approved by USDA’s Food Safety and Inspection Service before they can be included on the labels of meat and poultry products sold to consumers.

FSIS will conduct a sampling project to assess antibiotic residues in cattle destined for the “raised without antibiotics” market. FSIS will also issue a revised industry guideline to recommend that companies strengthen the documentation they submit to the agency to substantiate animal-raising claims.

Biden Administration Outlines Strategic Priorities for Wildfires

The Biden administration Wednesday announced guidance to federal agency leaders with wildfire responsibilities outlining their vision and goals for managing wildland fires this year.

The guidance comes from a joint memo issued by Agriculture Secretary Tom Vilsack and Secretary of the Interior Deb Haaland. The memo highlights other strategic priorities to reduce wildfire risk, restore ecosystems, engage in post-fire recovery, and make communities more resilient to fire. The memo also references the National Cohesive Wildland Fire Management Strategy as a guide to working with partners to restore and maintain landscapes and help communities become fire adapted.

Vilsack says, “We need to better support our firefighters and that’s why President Biden has proposed long-term reforms that will provide permanent pay increases, better housing, better mental and physical health resources, and better work-life balance.”

USDA and the Interior Department aim to have more than 17,000 wildland firefighters on board by the end of this year to help support communities increasingly impacted by wildfires.

CRP Reaches 22 Million Acres in 2022

USDA’s Economic Research Service reports that in 2022, Conservation Reserve Program acreage rose to 22 million acres.

USDA’s Conservation Reserve Program was established by Congress in 1985. By 1986, the program began to use contracts to retire highly erodible cropland from crop production for 10–15 years. Enrollment grew quickly, reaching 33 million acres in 1990. After the initial contracts were awarded, program goals expanded to include water quality and wildlife habitat improvements in addition to soil erosion reduction. Between 1990 and 2008, CRP enrollment fluctuated around 33 million acres before falling to a 30-year low in 2021. Annual enrollment caps for eligible land are set at each iteration of the Farm Bill.

Earlier this week, Agriculture Secretary Tom Vilsack announced USDA would accept more than one million acres from the signup period this year. Offers for new land in the general signup totaled about 295,000 acres. Producers submitted re-enrollment offers for about 891,000 expiring acres.