Biden: Double Crop Because 'We Can't Take Any Chances'

During the visit on Wednesday, Biden shared the USDA will raise precision ag technology funding to $500 million and open the double cropping insurance floor to a total of 1,935 counties—up 681 counties from the initial announcement.
During the visit on Wednesday, Biden shared the USDA will raise precision ag technology funding to $500 million and open the double cropping insurance floor to a total of 1,935 counties—up 681 counties from the initial announcement.
(Lindsey Pound)

Farm policy took center stage on Wednesday in Kankakee, Ill. President Biden visited OC Farms, owned by Jeff and Eugenia O’Connor.

During the visit, Biden—along with USDA Secretary Tom Vilsack—announced the administration’s latest efforts to alleviate rising costs on American’s pocketbooks through additional agricultural funding.

Fertilizer Makes Headlines

Purdue University-CME Group’s April Ag Economy Barometer showed producers experienced a challenge in sourcing fertilizer for 2022. The survey found 34% of producers reported trouble purchasing inputs, which is up 7% from surveys conducted in March.

To help mitigate costs, USDA says it will double-down on investments in domestic fertilizer production by increasing funding to $500 million. A portion of the funds will also be used to help farmers adopt precision agriculture methods that will reduce fertilizer use. 

Inaccessible Grain Opens Door fo U.S. Exports

According to Biden, Ukraine has 20 million tons of stored grain awaiting export to various countries such as Africa, their biggest importer. He says Putin’s war, not sanctions, are impacting harvests and disrupting the movement of food by land and sea to nations in need.

“We’re going to see what actions we can take to increase fertilizer supplies globally,” says Biden. “We’re also going to see how we can work together to prevent export restrictions on food and agricultural inputs and bring more global production to market which will stabilize prices and bring more certainty to our farmers and keep people from dying of hunger.”

Double Crop to Drop Inflated Food Costs

In late April, USDA  introduced a proposal to Congress, pleading for additional funding to offset costs resulting from the war in Ukraine. Part of the proposed funding included $250 million to aid U.S. producers to increase crop volumes through double cropping.

During the visit on Wednesday, Biden shared USDA will raise from $250 million to $500 million, and open the double cropping insurance floor to a total of 1,935 counties—up 681 counties from the initial announcement. 

USDA says double cropping will boost production without substituting crops or cultivating new land. While the department recognizes there are risks associated with the practice, Biden says his team has a plan to overcome those risks.

“The growing season for wheat is short and if the weather conditions aren’t ideal or there are other disruptions, then the timing of everything is thrown off,” says Biden. “But it’s a risk we need to take and that’s why my administration is looking at how to extend crop insurance coverage to give financial security to farmers.”

Following the announcement, Vilsack boarded a plane to Germany for the G7 summit where, he and fellow agriculturalists will devise a plan to overcome food loses due to Russia’s invasion of Ukraine.

“Exploitation” in the Marketplace

50 years ago, ranchers received 60¢ on the dollar for harvested beef, according to Biden. He says today, they get 39¢. Similarly, he says hogs yielded 40¢-to-60¢ on the dollar for farmers 50-years ago but pens out to “about” 19¢ today, which reflects a market “distorted” by lack of competition.

“Capitalism without competition is not capitalism,” says Biden. “It’s exploitation.”

In January, the Biden administration allocated $1 billion in American Rescue Funds to expand independent meat processing capacity as part of a broader initiative to break up what it calls a meat and poultry processor monopoly. Biden says the plan will provide producers a chance "to sue companies they contract with over unfair, discriminatory or deceptive practices," while reworking “Product of USA" label requirements.

Additionally, various Senators have introduced a bill to amend the Agricultural Marketing Act of 1946 to include a cattle contract library by way of Cattle Price Discovery and Transparency Act.

Gas Prices Continue to Soar

Biden recently announced the sale of year-round E15, which he said on Wednesday has decreased pump costs by 10¢ . However, the AAA reports regular gasoline price averages were at $4.40 on Wednesday, up 29¢ from the average reported a month ago. 

Biden maintains the price hike can be attributed to Russia’s invasion of Ukraine but says—along with Vilsack—the expanded E15 supply along with the USDA’s $100 million in ethanol infrastructure will ultimately bring prices down in the long run.

More on ag policy:

> 30% of Farmers Still Having Trouble Finding Essential Crop Inputs for This Year
>  White House Asks Congress for Additional $33 Billion in Aid for Ukraine
> Everything You Need to Know About the Proposed $500M to Ag in Biden's Ukraine Aid Program
> Biden Plan Directs $1 Billion To Impact Meat & Poultry Processing, Strengthen P&SA, Add New Labeling Rules
> E15 Summer Ban Suspended, USDA Commits $700M To Biofuels Producers
> DOE Announces Plan to Replenish Tapped Oil Reserves

 

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