COVID Relief

3 Topics Producers Should be Tracking in the Farm Bill

Wed, 31 May 2023 15:23:48 GMT

It’s no secret that conservation and insurance will be heavy topics of discussion in ongoing farm bill debates this year. But it’s difficult to understand the exact role each title will play in legislation.

There might be some insight from House Ag Committee Chairman Glenn Thompson (R-Pa.).

“We don’t need to rewrite the entire farm bill,” Thompson says. “We’re comfortable with many parts of the 2018 bill and there aren’t many tweaks or changes, instead things we need to protect and invest in more.”

With Thompson’s words in tow, Kala Jenkins, Pinion ag consultant, and her colleague Bill Penn, Director of Farm Program Services, have carved out their own theories on what to expect in farm bill 2023.

Here’s a highlight of what they’re tracking as we move through the year.

1. Program Limitations with FSA

USDA defines a small farm as one that sees gross cash farm income under $250,000. According to the agency’s 2021 data, large farms—operations that gross more than $250,000—account for 85% of ag’s market value.

But these income brackets often leave small producers emptyhanded when it comes to disaster programs, according to Senator Chuck Grassley (R-IA).

“The 2018 Farm Bill was intentionally written to help the largest farmers receive sometimes millions of dollars of subsidies from the federal government each year,” Grassley said to USDA Secretary Tom Vilsack in a Senate Ag Committee hearing. “I’m asking that you would now work with me to stop this needless abuse of taxpayer dollars.”

Related story: Crop Insurance, Production Costs, ERP Among Key Topics at Senate Ag Farm Bill Hearing

Penn, who formerly served as USDA’s Assistant Deputy Administrator from 1985 to 1993, doesn’t see the aid differences as abuse and wants aid to go to the producers who make the biggest difference.

“Congressmen always like to talk about how 10% of the producers are getting 70% of the payments, but those 10% of growers are producing 85% of our supply,” Penn says. “If the goal of aid is to ensure America’s needs are met, we have to offer protections to those that put in the work.”

2. AGI Calculations

Adjusted gross income (AGI) is used to determine eligibility for disaster programs, through means testing.

Penn formerly served as USDA’s assistant deputy administrator from 1985 to 1993. He says in the 1980’s, disaster programs means testing was determined through gross receipts rather than AGI. Penn believes AGI is a better test for means testing than gross receipts because it is a “net income” number rather than a gross revenue number.

Related story: Paul Neiffer: PARP – Will You Get Anything?

However, in the recent WHIP+ and ERP Programs, USDA used AGI as a test to determine if someone was a farmer. In Penn’s view, gross receipts is a better measure of who is a farmer when compared to AGI.

“If a farmer has a bad disaster year, he might have a negative net income or AGI. But his wife, a schoolteacher who has a $70,000 positive, non-farm income would push them out of WHIP+ eligibility for increased limitations due to their AGI,” he says.

Penn says when the government is carving-out a disaster aid plan, it must be careful what question it is trying to answer with balance sheet numbers, or aid won’t be inclusive.

But, Penn is concerned if AGI limitations are applied to crop insurance.

3. Crop Insurance Coverage

In the past 20 years, the Federal Crop Insurance Program has covered an average of 87% of all U.S. croplands that were eligible for the program.

So, is a climate angle how crop insurance should be viewed? Jenkins isn’t convinced. She says the bottom line is in making programs voluntary.

“If we focus solely on climate and conservation in all our farm bill initiatives, could we miss something in the literature that could make certain practices mandatory instead of voluntary? That’s the concern we’re hearing from growers now.”

Related story: Commodity Programs Might See a 12% Cut in the Proposed $1 Trillion Farm Bill

Beyond conservation, Jenkins hears whispers of Title XI programs taking an entirely different direction in 2023.

“I’ve heard chatter about whether we need to change the way some of these programs work today, like whole farm crop insurance programs versus the noninsured crop disaster assistance program.” she says. “Then there are also some stakeholders questioning whether we need to link insurance to conservation, while others don’t want it to be the main focus. The needle is all over the board.”

USDA Announces Second Round of Debt Relief to "Distressed" Borrowers

Tue, 28 Mar 2023 20:02:43 GMT

USDA announced another $123 million in payments will be made in April under the Inflation Reduction Act (IRA) to provide debt relief for borrowers.

Focus for the second round of payments is on those who were:

• Past due on a qualifying direct loan as of Sept. 30, 2020, but by fewer than 60 days and are still delinquent
• Restructured a qualifying loan after Feb. 28, 2020, through primary loan servicing at FSA
• Owe more interest on a direct loan than the level of principal owed.

“In too many cases, the rules surrounding our farm loan programs may actually be detrimental to helping a borrower get back to a financially viable path. As a result, some are pushed out of farming and others stuck under a debt burden that prevents them from growing or reacting to opportunities,” said USDA Secretary Tom Vilsack. “Loan programs for the newest and more vulnerable producers must be about providing opportunity and tailored to expect and manage stumbles and hurdles along the way.”

According to Vilsack, this relief focuses on “long-term stability and success” of borrows that are in distress.

USDA’s Other Aid

The agency is still working on the payments that are to go to farmers who suffered discrimination in FSA loan programs. This falls under some $3.1 billion in debt relief that was included in the IRA.

USDA in October 2022 released more than $800 million in automatic relief payments, the first tranche from the program. That money went to about 11,000 borrowers 60 days or more delinquent on Farm Service Agency loans and 2,100 borrowers who had their collateral liquidated but still owed. The agency has been paying out more complicated cases on a case-by-case basis.

Crop Insurance, Production Costs, ERP Among Key Topics at Senate Ag Farm Bill Hearing

Fri, 10 Feb 2023 21:00:25 GMT

A Senate Ag Committee hearing Thursday on the new farm bill raised a issue that is now evident: the Title 1 farm bill safety net can no longer deal with the current ag environment of rising production costs and relatively high prices for some commodities. USDA officials also faced criticism about its handling of Phase 2 payments via the Emergency Relief Program (ERP).

Other topics that have previously surfaced included Republican concerns about climate and conservation changes to crop insurance, while Democrats continued to urge expansion of the program to more producers.

Need for change

Senate Ag Chair Debbie Stabenow (D-Mich.) said the 2018 Farm Bill largely lived up to expectations, but she suggested its successor must deal with several challenges: increasingly damaging natural disasters and accelerated costs of production.

“There are still gaps in the farm safety net as farmers continue to face global market uncertainty and climate-fueled weather disasters,” she said. “While many commodity prices are at historic highs, which is good, we also know that land and fertilizer and input costs are also near record highs.”

Farm safety net gaps

Ranking Member John Boozman (R-Ark.) said a focus on boosting nutrition and climate programs has obscured the fact that farm safety net programs like Price Loss Coverage (PLC) are ill equipped to deal with the current situation.

Related articles: Stepped-Up Basis Leaning in Favor of Rural America on House Ways and Means Panel

“Prices for many of our major commodities would have to drop sharply before the current Title 1 Price Loss Coverage safety net would start to work,” Boozman said, noting corn prices would need to plummet 46% before PLC would provide enrolled farmers any assistance. “By the time corn prices fell that low, the significant damage would have already been done.”

Sen. Tommy Tuberville (R-Ala.) asked if USDA had looked at how the two safety net programs respond to inflation, such as adjusting reference prices — which trigger payments under the PLC program.

“I will tell you my legislative staff is always quick to tell me to emphasize that Congress writes the farm bill, and then that’s going to be important here too, obviously those reference prices are in statute,” USDA Undersecretary for Farm Production and Conservation Robert Bonnie told Tuberville. “When we talk to producers, there’s lots of concern about obviously rising input costs,” he added, but then emphasized USDA can only operate farm safety net programs as dictated by Congress.

USDA disaster aid implementation was both praised and criticized

Democrats and Republicans agreed with farmers who have complained about USDA’s methodology for payments under Phase 2 of the ERP, saying they do not adequately compensate farmers for their losses. “I appreciate USDA’s efforts through Phase 1 of ERP, which generally worked well in supporting producers with crop losses and [2020 and 2021],” said Sen John Thune (R-S.D.). “But the Phase 2 methodology… often does not accurately reflect crop losses that Congress meant to cover.”

Thune urged USDA consider reverting to the approach used in Phase 1 of the ERP effort for 2022 losses, a suggestion echoed by Sen. Amy Klobuchar (D-Minn.), who said farmers in her state “are grateful for the quick and effective approach taken during the implementation of ERP Phase 1,” but “a number of them have been less enthusiastic of the income tax-based approach taken during the rollout of ERP Phase 2.”

Bonnie said USDA’s approach on ERP Phase 2 focused on ensuring more producers had access to aid, but said if there are resources remaining after the effort the department may look at a shallow loss effort to address some of the concerns with Phase 2.

Related articles: The Cost of a Farm Bill: 2023 Row Crop Priorities

Bonnie said ad hoc programs like ERP have helped farmers facing disaster-related losses, but he stressed that federal crop insurance remains a key risk management tool, and that USDA has worked to expand the program to cover more producers.

Crop insurance and climate intersect

Boozman again raised a concern voiced by many Republicans about any move to use crop insurance to incentivize climate or conservation practices — which GOP members contend could undermine the actuarial soundness of the program and move it away from its core focus as a risk management tool.

“Can you commit to making sure that any efforts to expand the crop insurance programs are science based, peer reviewed, and protect the integrity of the program,” he asked Bonnie, saying a “one-size fits all” approach that elevates certain practices like cover cropping could disadvantage farmers in areas where those practices are not practical.

Bonnie responded that “with respect to crop insurance, everything we have to do has to be actuarially sound as we’ve got to maintain the integrity of crop insurance.” He said recent incentives offered to farmers for cover cropping have taken the form of premium rebates — not changes to premiums or the overall premium subsidy paid by the government.

Stabenow praised federal crop insurance, calling it “the number one risk management tool for producers.” However, improvements are needed, she said, promising improvements to the program, “including specialty crop growers, organic producers, beginning and diversified farmers.”

Regarding prevent plant coverage

Sen. Ben Ray Lujan (D-N.M.) asked if USDA was looking at expanding prevented plant coverage under crop insurance, which pays farmers when they are unable to plant an insured crop due to extreme weathers. He noted eligibility currently hinges on a farmer being able to plant, insure and harvest crops in one of the four preceding crop years — known as the four-in-one rule — and some farmers in the West are at more risk of losing coverage due to prolonged drought conditions.

“One in four is very regionalized in a lot of cases,” acknowledged USDA Administrator Marcia Bunger. “So, for this coming year, we’ve made an exception for several western states to step outside of that one and four,” adding USDA would consult with stakeholders over the next year about a potential long-term solution to the issue.

Related articles: How USDA’s $2.8 Billion Climate-Smart Investment Might Impact Your Operation

USDA climate program efforts were raised by Sen. Chuck Grassley (R-Iowa), who noted concern over USDA’s move to tap more than $3 billion from the Commodity Credit Corporation (CCC) to fund its Partnerships for Climate-Smart Commodities (PCSC) effort that funds climate-smart ag pilot projects.

“Spending over $3 billion without input from Congress is a serious concern for everybody in the Congress,” Grassley stated.

Grassley then asked Bonnie if USDA had any plans to tap CCC for additional USDA programs. Bonnie reiterated what USDA Secretary Tom Vilsack has said — that PCSC falls within the CCC’s charter as it looks to expand and create new markets for ag commodities.

However, Bonnie ultimately said there were no plans for new CCC-backed programs under the Farm Production and Conservation (FPAC) mission area.

USDA is Making Additional CFAP 2 Payments

Fri, 13 Jan 2023 18:11:34 GMT

USDA has begun issuing additional payments under the Coronavirus Food Assistance Program 2 (CFAP 2) effort to underserved farmers and ranchers using Commodity Credit Corporation (CCC) funds except for those to tobacco farmers where payments will be funded by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

Read more: Vilsack Lists USDA’s 4 Policy Objectives for 2023

The additional payments will be equal to 15% of the producer’s previous CFAP 2 payments. The payments were to be processed and made available to county FSA offices to certify around Jan. 11. USDA said the payments would be issued within 30 days.

Read more: We Have ERP Phase II

Contract growers are not eligible for these additional payments.

The payments were part of a final rule on CFAP and other aid efforts released Jan. 11 and are expected to total $325 million.

Read more: Secure 2.0 Finally Arrives

Vilsack Lists USDA's 4 Policy Objectives for 2023

Wed, 11 Jan 2023 14:16:20 GMT

USDA Secretary Tom Vilsack has a history of making key announcements during visits, and that was the case during his appearance at the American Farm Bureau Federation’s annual meeting in Puerto Rico.

Some of them include:

1. ERP Phase 2

Vilsack announced Phase 2 of the ERP, which will provide help to producers for production and quality losses of eligible crops, utilizing calculations of a producer’s decrease in gross revenue.

Those were about to be released months ago but were pulled back at the last minute due to lawmaker and farmer complaints. USDA eventually announced anyway.

USDA said in documentation on file at the Federal Register that using that approach will reflect the losses “without requiring the more extensive calculations and documentation required under previous programs” for disaster-related crop losses. USDA said this streamlines the aid to minimize the burden on producers and processing of applications by county FSA offices. Using that process also means it will address losses for a qualifying disaster event whether it happened before or after harvest.

ERP Phase 2 will be available for a decrease in gross revenue in 2020 or 2021, primarily to those with losses not covered by Federal Crop Insurance or the Noninsured Assistance Program (NAP).

The application period is Jan. 23-June 2. USDA has already paid out $7.31 billion under ERP Phase 1 as of Jan. 8, up from $7.28 billion the prior week, including $6.23 billion for non-specialty crops ($6.21 billion prior) and $1.09 billion for specialty crops ($1.08 billion prior). A total of $10 billion was earmarked for ERP.

USDA projects outlays for ERP Phase 2 payments will be $1.2 billion and will likely be pro-rated as USDA projects total gross outlays at $1.5 billion.

Phase 2 Reflection

Phase I was highly successful and it worked well. Phase 2 has tons of problems. Comparing schedule F in relevant years to past years doesn’t reflect losses. A farmer may have had to sell land or livestock when they didn’t want to. They may have sold a previous year’s crop in the year in question. These and other things skew the schedule F. There is also the issue of forcing farmers to share schedule F info with local FSA offices.

2. Pandemic Assistance Revenue Program (PARP)

Vilsack announced PARP payments for producers that suffered a 15% or greater decrease in allowable gross revenue for the 2020 calendar year compared with either 2018 or 2019. This effort, Vilsack said, aims to “fill in gaps” for losses covered by either Phase 1 or Phase 2 of ERP.

The payments will have a factor of 80% (90% for underserved farmers and ranchers) and will be reduced by 2020 ERP payments, and pandemic assistance under either the Coronavirus Food Assistance Program (CFAP) 1 or 2 and other pandemic aid.

Payments will be limited to $125,000 per person or entity and USDA may set a lower maximum payment amount per person if total payments exceed available funding and USDA expects that to be the case — PARP outlays are projected at $250 million with gross outlays pegged at $2.66 billion.

USDA also will expand payments under prior efforts such as CFAP 2 and others. The total payments USDA projects under the ERP Phase 2, PARP and expanded other programs is $1.82 billion with gross amounts at $4.54 billion.

3. U.S.-Made Fertilizer

USDA will seek public comment on 21 potentially viable projects totaling up to $88 million to boost U.S. fertilizer production via the first round of USDA’s Federal Production Expansion Program, a $500 million effort announced earlier this year.

The projects are in Alabama, Arizona, Colorado, Florida, Iowa, Louisiana, Massachusetts, Minnesota, Missouri, Montana, Ohio, Oregon, Texas, Washington, and Wisconsin. USDA is seeking comments through Feb. 8 on the environmental impacts of the projects.

4. Meat and Poultry Processing

Vilsack announced three projects in Ohio, Michigan and Minnesota which will expand independent meat and poultry processing capacity via the Meat and Poultry Processing Expansion Program.

The projects total $12 million and are in addition to other recently announced efforts in the sector.

More on policy:

We Have ERP Phase II
Policy and Payments: What Producers Can Expect in 2023

Policy and Payments: What Producers Can Expect in 2023

Thu, 05 Jan 2023 14:00:38 GMT

The calendar flip to 2023 signals a new Congress and, this year, a new farm bill. With that comes unpredictability. Jim Wiesemeyer, Pro Farmer policy analyst, lays out what could be ahead for ag policy in coming months.

Passing a Farm Bill

Rep. Glenn Thompson (R-Pa.), the new House Ag Committee Chairman, intends to hit the ground running on the farm bill as early as next week, with the first farm bill hearing taking place in his home state of Pennsylvania on Saturday.

“I think now the odds we could get a new farm bill this year because the sensitive issues such as climate change and food stamps weren’t totally settled in the omnibus spending bill ,” Wiesemeyer says.

Upon his election, Thompson said the committee will keep it’s “foot on the gas” to deliver a farm bill that will “prioritize” the needs of the farmers, ranchers and foresters.

The committee has six months to make headway on farm bill negotiations before Congressional recess starts in June.

Pandemic Assistance Programs Continue

The Office of Management and Budget (OMB) will also be busy aiding ag in 2023, as they formulate a plan to implement Phase Two of Emergency Relief Payments (ERP) .

Each Monday, the OMB releases an announcement to showcase how much funding has been dispersed through the phase. Phase Two will likely run on the same process, but have different operating components, according to Wiesemeyer.

“Farm groups still tell me, from the last thing they’ve heard from USDA, they won’t like how Phase Two operates,” he says. “We’ll see how this all plays out, pending any last-minute changes from USDA.”

According to Wiesemeyer, Phase One dispersal was slow and rocky, but the funding amount was plentiful.

Lock-In WOTUS

An official definition of Waters of the U.S. (WOTUS) is also on the horizon in 2023, following an interim definition proposed by the EPA last week. However, the final ruling might not be what some had hoped.

Wiesemeyer says some analysts feel, following the interim proposal, the government now has more room to interpret the court’s WOTUS decision. He sees how this could be the government’s strategy.

“A number of lawmakers did not want the EPA to come out with any ruling on WOTUS, no matter if it was interim or not,” Wiesemeyer says. “But you know lawyers—once they think they have more flexibility, they’ll use it.”

More on policy :

4 Ways to Advocate for Ag in the New Farm Bill
EPA Releases New WOTUS Rule, with the Supreme Court Ruling Pending

What's in it for Ag in the New Spending Bill?

Wed, 28 Dec 2022 03:26:54 GMT

The House on Friday averted a government shutdown by voting 225 to 201 in favor of the Consolidated Appropriations Act of 2023. The $1.7 trillion omnibus bill includes 12 separate bills that cover everything from natural disasters to military pay to foreign aid.

Sanford Bishop Jr., ag, rural development and food and drug administration subcommittee chairman, says the bill is “crucial” to America’s economic success.

“These federal programs make our country a world leader in agriculture, ensure that we have safe, abundant food and medicine to lead healthy lives, support America’s farmers and ranchers, and provide Americans with the materials that clothe us and build our communities,” Bishop says.

Here are highlights of the key ag-sector funding from the omnibus:

Insurance

• Directs USDA to index all administrative and operating expense in the crop insurance program for inflation.

Research

• Agricultural research: Ag research funding will increase by $175 million to $3.45 billion in 2023, including monies for Agricultural Research Service, National Institute of Food and Agriculture, Agriculture and Food Research Initiative, and Sustainable Agriculture Research and Education program.

Conservation

• Includes the SUSTAINS Act, which allows corporations and other private entities to contribute funding for conservation projects and authorize USDA to match the donations.

• Reauthorizes the Pesticide Registration Improvement Act, which imposes fees for maintenance and registration of active ingredients. It boosts registration and maintenance fees 30% and allows EPA to raise fees by 5% in 2024 and 2026.

Infrastructure

• $1.48 billion is included on top of annual appropriations funding for the Army Corps of Engineers to make emergency repairs and navigation improvements needed after extreme weather events, including low water on the Mississippi River.

“One of the best returns on investment is when we pump money into our infrastructure, especially the great waterway system,” Jim Wiesemeyer, ProFarmer policy analyst told AgriTalk Host Chip Flory. “This town [Washington, D.C.] has had a mindset change on pumping more money, not only in the new projects, but restoring some of the water transportation endeavors of the past. It’s good news.”

Relief Aid

• $3.7 billion in farm disaster aid, to cover eligible 2022 crop and livestock losses, with $494.5 million to be used for livestock losses due to drought or wildfires, as part of overall $40.6 billion for disasters.

• Requires USDA to make a one-time payment to each rice producer on a U.S. farm in the 2022 crop year. USDA will determine payment rates based on yield history and acreage.

• Authorizes $100 million for the USDA to make pandemic assistance payments to cotton merchandisers that purchased cotton from a U.S. producer from March 1, 2020, through the measure’s enactment date.

• $25 million for specialty crop equitable relief.

Broadband

• USDA’s ReConnect loan and grant program for rural broadband will get $348 million for fiscal 2023.

Food Assistance

• Make permanent a summer EBT (food stamp) program to provide up to $40 a month per child. It allows grab-and-go or home delivery of meals to kids in rural areas as an alternative to meals in group settings Any summer meals benefits issued to a household in the summer of 2023 couldn’t exceed $120 per child. USDA will be required to establish a program beginning in the summer of 2024 and annually thereafter to issue EBT benefits to eligible households to ensure continued access to food when school isn’t in session in the summer.

• Aid for Food for Peace ($1.8 billion) and McGovern-Dole International Food for Education ($248 million) programs.

Carbon

• Includes the Growing Climate Solutions Act, which authorizes USDA to oversee the registration of farm technical advisers and carbon-credit verification services

Wiesemeyer says the swift passage of the spending package signals the coming farm bill might be easier to pass than some had previously thought, despite the new congress moving in next week.

“Congress put more than a few dollars in this for farm bill-related topics, especially food stamps and some of the climate change funding,” he says. “I think this really increases the odds that both the Senate and the house should get a new farm bill done in 2023.”

The bill will now move to President Biden’s desk, where he is expected to sign it this week.

More on policy :

4 Ways to Advocate for Ag in the New Farm Bill
U.S. Defense Spending Bill Leads to China Taking Aim at Taiwan

How the $1.7 Trillion Omnibus Spending Package Might Impact Your Operation

Tue, 20 Dec 2022 17:19:29 GMT

Text of the $1.7 trillion omnibus spending package was released early Tuesday morning. The Senate will vote first and intends to pass the measure before Thursday, leaving the House no time to demand changes before the Christmas holiday.

Here are the details that might impact your farm:

Disaster Relief

• $250 million in aid to rice producers and $100 million to cotton merchandisers to make up for losses related to the pandemic or supply chain disruptions. USDA previously provided $80 million in aid to textile mills and other cotton users. For rice, USDA would determine payment rates based on yield history and acreage.

• $40.6 billion for drought, hurricanes, flooding, wildfire, natural disasters and other matters — $3.7 billion in disaster aid for farmers to cover 2022 crop and livestock losses.

Food Aid

• Funds two programs that provide foreign food aid. These include the Food for Peace Program (PL 480), which is funded at $1.8 billion, and the McGovern-Dole International Food for Education Program, which is funded at $248 million, for an increase of $11 million over fiscal year 2022.

• Summer Meals Program Modernization: Updates the summer food service program to permanently allow states to provide non-congregate meals and summer electronic benefit (EBT) options nationwide to eligible children in addition to meals provided at congregate feeding sites. Non-congregate meals, such as grab-and-go or home delivery, would be provided in rural areas to eligible children, and summer EBT benefits would be capped at $40 per child per month. This provision is fully offset and based largely on the Hunger-Free Summer for Kids Act, which Boozman authored and introduced earlier this Congress.

• Supplemental Nutrition Assistance Program (SNAP) EBT Skimming Regulations and Reimbursement: Requires USDA to coordinate with relevant agencies and stakeholders to investigate reports of stolen SNAP benefits through card skimming, cloning and other similar fraudulent methods. This provision aims to identify the extent of the problem, develop methods to prevent fraud and improve security measures, and provide replacement of benefits stolen through these fraudulent actions.

Conservation

• Cracks down on “conservation easements,” which allow tax breaks when land is dedicated for conservation purposes. The IRS has identified the transactions as a method for avoiding taxes. The conservation easement provision was expected to raise between $6 billion and $7 billion.

• SUSTAINS Act: Enacts a House bill that allows corporations and other private entities to contribute funding for conservation projects and authorizes USDA to match up to 75% in matching the donations.

Inputs

• Pesticide Registration Improvement Act (PRIA 5) Reauthorization: Reauthorizes pesticide registration and review process user-fee programs administered by the Environmental Protection Agency (EPA) and increases registration and maintenance fees to support a more predictable regulatory process, create additional process improvements, and provide resources for safety, training, bilingual labeling, and other services to advance the safe and effective use of pesticides.

• Pesticide Registration Review Deadline Extension: Extends deadline for EPA to complete registration review decisions for all pesticide products registered as of October 1, 2007. EPA is facing a significant backlog of pesticide registrations due to a variety of factors over the past several years, which raises potential implications for continued access to numerous crop protection tools. The agency will be allowed to continue its registration review work through October 1, 2026, as a result of this extension.

Climate

• Growing Climate Solutions Act: Incorporates updated language from the Growing Climate Solutions Act, which directs USDA to establish a program to register entities that provide technical assistance and verification for farmers, ranchers and foresters who participate in voluntary carbon markets with the goal of providing information and confidence to producers.

Farm Business

• $1.92 billion for farm programs, which is $55 million above the fiscal year 2022 enacted level. This includes $61 million to resolve ownership and succession of farmland issues, also known as heirs’ property issues. This funding will continue support for various farm, conservation, and emergency loan programs, and help American farmers and ranchers. It will also meet estimates of demand for farm loan programs.

• Funding for specialty crops and remarks on crop insurance/A&O. Some $25 million is being made available for specialty crop equitable relief and report language directing USDA to use its legal authority to index all A&O (crop insurance program) for inflation and provide equitable relief for specialty crops going forward.

Livestock

• Livestock Mandatory Reporting Extension (LMR) Extension: Extends livestock mandatory reporting requirements until September 30, 2023. LMR requires meat packers and importers to report the prices they pay for cattle, hogs, and sheep purchased for slaughter and prices received for meats derived from such species to USDA who then publishes daily, weekly, and monthly public reports detailing these transactions.

Markets

• Commodity Futures Trading Commission (CFTC) Whistleblower Program Extension: Enables CFTC to continue payment of salaries, customer education initiatives and non-awards expenses related to the whistleblower program to ensure it can continue to function even when awards obligated to whistleblowers exceed the program fund’s balance at the time of distribution.

Some ag sector items that did NOT make the omnibus package:

Nothing for the proposed farmworker labor reforms from Sen. Michael Bennet (D-Colo.) and others. The bill also left out legislation to reform cattle markets or appoint a special investigator at USDA to investigate possible anti-competitive behavior in the meatpacking sector.

We’ll be updating this article as more details become available.

More on policy :

Water Resources Bill Reauthorized with a Component that Will Impact Producers
European Union Clinches a Deal on a Carbon Border Tax
U.S.'s “Candid” GMO Corn Conversation With Mexico Results In Changes To Looming Trade Dispute
Senate Clears Annual Defense Policy, Pushing $858 Billion to Military

USDA Announces Phase 2 of ERP Along With New Aid Opportunities

Thu, 17 Nov 2022 15:05:21 GMT

USDA announced the launch of Phase 2 of its Emergency Relief Program (ERP) with Phase 1 paying out $7.15 billion to eligible producers.

Who Qualifies for ERP Phase 2?

Phase 2 is targeted to those who suffered losses in 2020 and 2021 but may not have received any payments under Phase 1 for losses in allowable gross revenue for traditionally insurable crops and specialty crops intended to be commercially marketed.

The payments will be based on the difference in farm revenue between a typical year and the disaster year and are to avoid windfall or duplicate payments.

USDA said that the signup deadline for Phase 1 ERP, which was previously extended indefinitely, will now be set to Dec. 16.

Can You Defer ERP Payments?

As you’ll recall from Paul Neiffer’s article , only certain ERP payments can be deferred.

According to Neiffer, if the payment relates directly to damage occurred in 2021, then the payment can’t be deferred until 2023. But if the damage if really for the crop that was harvested in 2022 and damage was for drought during the growing period, then it should be able to be deferred.

As a reminder, here are the three requirements to defer crop insurance proceeds:

• Farmer is on the cash method of accounting (almost all are),
• Farmer normally reports more than 50% of total sales in the year after harvest (most do), and
• The farmer can only defer to the year after the damage was incurred

The last item is what blows up any ability to defer Phase 1 payments. These payments are for damage that occurred in 2020 and 2021. 2022 is the latest you could defer 2021 payments and since you collected them this year, you are stuck with reporting these payments in 2022.

More Payment Opportunities

USDA also mentioned the new Pandemic Assistance Revenue Program (PARP) will be available to help those with ag commodities that saw revenue declines in calendar 2020 compared with 2018 or 2019 due to the COVID-19 pandemic.

The agency said PARP is aimed at addressing “gaps in previous pandemic assistance which was targeted at price loss or lack of market access, rather than overall revenue.”

Under PARP, USDA says producers will use revenue information available from “most tax records,” and urged producers to have those documents available for the past few years along with supporting materials.

According to USDA, the documentation is similar to what producers had to provide for the Coronavirus Food Assistance Program 2 (CFAP 2) effort which allowed for 2018 or 2019 to be used as the benchmark year.

More on ag business:

Can You Defer 2022 ERP?
Paul Neiffer: When Can Inflation Help You?

$670 Million Awarded by USDA to Farm, Meatpacking and Grocery Workers for their 'Essential Role' in U.S. Food Systems During Pandemic

Wed, 05 Oct 2022 19:37:10 GMT

USDA announced 15 groups will get $670 million in funds to farm and meatpacking workers that were negatively impacted during the pandemic, incurring expenses via the outbreak as they were deemed essential workers.

The funds would amount to $600 per person and start in the fall, USDA said. $20 million was also earmarked for a pilot program that would recognize the efforts of grocery workers.

The aim is to defray some of the costs incurred by workers relative to personal protective equipment, child care, and expenses for testing and quarantining.

Farm/meatpacking and grocery worker pilot program grant recipients:

(Farm Journal)

“Please note that payments are not yet available and each organization may have application periods that begin at different times,” said USDA’s Agricultural Marketing Service.

However, according to the announcement, these workers should be given the money from their organizations this fall.

Vilsack Announces $2B in Funding to Transform U.S. Food System

Thu, 02 Jun 2022 00:38:43 GMT

Transforming the U.S. food system by improving supply chains and addressing issues exposed by the Covid-19 pandemic will be detailed today by USDA Secretary Tom Vilsack during a speech at Georgetown University.

The over $2 billion package includes previously announced funding to expand meat and poultry processing and to finance new infrastructure such as cold storage facilities, but there $600 million in new aid to support food supply chain infrastructure outside meat processing. The plan also includes $400 million for regional food business centers, up to $300 million for a new organic transition initiative and $75 million to support urban agriculture.

The initiatives are funded through the American Rescue Plan that was enacted in March 2021 and other relief legislation. On Thursday, Vilsack will be in Ohio with Democratic Rep. Marcy Kaptur to visit a full-service grocery store in central Toledo called Market on the Green.

The package includes $650 million in funding and loan assistance for meat and poultry processing projects, including $275 million to help entrepreneurs who have had trouble getting credit. Another $100 million would go toward training workers in meat processing. Another $600 million is earmarked for improving food supply chain infrastructure, including cold storage and refrigerated trucks, outside of meat and processing.

Other funding in the plan includes:

$200 million to help fruit and vegetable growers comply with food safety regulations.
$400 million to create regional food business centers that will provide coordination and technical assistance and other support to small and mid-size businesses involved in processing, distribution and aggregation.
$155 million to expand USDA’s Healthy Food Financing Initiative, which is aimed at reducing food deserts.
$90 million to prevent and reduce food loss and waste.
$60 million farm-to-school programs that increase markets for smaller-scale farmers through child nutrition programs.

The announcement comes as supermarkets and distributors are pushing back on higher prices from food makers, as escalating inflation drives more consumers to rethink their spending. The Wall Street Journal reports ( link ) that Kroger Co. and other grocery chains said they are asking brands to prove why higher prices are necessary before accepting them, and warning manufacturers that they will stop carrying products if food companies won’t negotiate prices. Some companies said they are switching to new meat suppliers with cheaper products and are delaying price changes for items like canned goods.

Retailers generally have been passing price increases along to consumers, and executives have said that for months shopper demand has remained strong. Industry executives said that is starting to change, as consumers increasingly look for ways to stretch their dollars.

Time is Ticking on the 2021 Policy Clock

Tue, 28 Dec 2021 14:30:24 GMT

The House and Senate are on recess this week, but work is ramping back up to finalize 2021 legislation before the New Year begins.

Build Back Better

Last week, Sen. Joe Manchin (D-W.Va.) said he cannot support the House-passed version of the $1.75 trillion social spending package that would have extended child tax credits and provided new subsidies for childcare, preschool, and elder care.

“My Democratic colleagues in Washington are determined to dramatically reshape our society in a way that leaves our country even more vulnerable to the threats we face,” Manchin issued in a statement. “I cannot take that risk with a staggering debt of more than $29 trillion and inflation taxes that are real and harmful to every hard-working American at the gasoline pumps, grocery stores and utility bills with no end in sight.”

Pro Farmer policy analyst Jim Wiesemeyer doesn’t know “how and when the bill will pass,” but believes the BBB will go through once it has been scaled-back to remove items like childcare credits that he thinks will be included in separate bills.

WHIP+

AgriTalk hosted USDA Secretary Tom Vilsack in late November to discuss the House passage of the BBB. In the episode, Vilsack said the$10 billion Wildfire and Hurricane Indemnity Program Plus (WHIP+) payments could be sent by the end of 2021.

Wiesemeyer says WHIP+ is the “worst implemented program” he’s seen come from the Farm Service Agency (FSA) due to the delayed payout. He does, however, see these payments hitting bank accounts by early 2022.

As it stands, the $10 billion in disaster assistance will include:

• $9.25 billion in disaster assistance to aid producers who suffered losses due to droughts, hurricanes, wildfires, floods and other qualifying disasters. The funding will extend WHIP+ to cover losses in calendar years 2020 and 2021.
• $750 million for livestock producers for losses incurred during 2021 due to drought or wildfire. This disaster assistance, the first specifically for livestock producers since 2008, will build on top of existing farm bill programs for livestock producers.

Details on the USDA’s plan and timeline for distribution have not yet been released.

NCBA Policy Team Reflects on 2021 Campaigns, Forecasts 2022

Thu, 23 Dec 2021 17:32:38 GMT

Earlier this week, the National Cattlemen’s Beef Association (NCBA) policy team convened to summarize their efforts on The Hill in 2021.

With 2020 as a backdrop, NCBA shifted their energy in 2021 to producer profitability throughout the supply chain.

COVID-19 and Retail

Ranchers and packers experienced many processing issues because of the pandemic. NCBA Vice President of Government Affairs Ethan Lane says the NCBA has spent numerous hours on The Hill advocating for accessible and fair market competition.

“We’re continuing to reiterate to the administration that we need to diversify and regionalize packing capacity to create new capacity in areas that are underserved,” says Lane. “We have a tremendous amount of demand right now—both nationally and internationally—that we need to capitalize on.”

Lane says the NCBA’s 2022 agenda includes finding price discovery options to make sure producers are able to choose “the best marketing method for their cattle, rather than a government mandate telling them how to market their cattle.”

Earlier this year, the National Economic Council officials studied earnings statements from Tyson Foods, the chicken producer and biggest U.S. meat company by sales; Brazil-based JBS SA, the world’s biggest meatpacker; Brazilian beef producer Marfrig Global Foods SA which owns most of National Beef Packing Company; and Seaboard Corp RIC.

Those statements showed a 120% collective jump in their gross profits since the pandemic and a 500% increase in net income, the analysis shows. These companies recently announced $1 billion in new dividends and stock buybacks, on top of the more than $3 billion they paid to shareholders since the pandemic began.

The USDA announced investments to expand processing capacity and increase competition in meat and poultry processing to make agricultural markets fair and competitive. NCBA anticipates these payments will be distributed to state and regional packers after the New Year.

Sustainability and Climate

Lane is “extremely pleased” by the difference in how grazing and cattle production is being treated in the policy conversation in Washington following the release of the industry’s sustainability goals that include a climate net neutrality by 2040.

“In previous administrations, we’ve always been thought of as a threat or an impact.” Says Lane. “We’re now being embraced as a climate solution.”

The “America the Beautiful” climate initiative—the Biden administration’s version of what is commonly known as “30x30”, the goal of conserving 30 percent of the nation’s land and waters by 2030—has yet to be addressed.

The Biden administration has released a statement of principles which outlines their goals for 30 by 30, but doesn’t include plans to make changes through policy proposals. Lane is unsure whether the proposal will come to fruition, saying “the White House will never placate the environmental community with anything they do in this space.”

WOTUS

United States Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers published a rule in the Federal Register in early December, initiating updates to the definition of the waters of the United States (WOTUS) that reflect the pre-2015 regulatory definition.

The proposed rule comes following a June 2021 statement made the Biden administration, detailing plans to repeal the Trump administration’s Navigable Waters Protection Rule (NWPR) promulgated under WOTUS in 2020. New regulations defining federally protected waterways under the Clean Water Act were then announced in November by the EPA and the Army Corps of Engineers.

EPA Administrator Michael Regan says the proposed transition was created to bring clarity and consistency to WOTUS:

“Through our engagement with stakeholders across the country, we’ve heard overwhelming calls for a durable definition of WOTUS that protects the environment and that is grounded in the experience of those who steward our waters.”

Scott Anderson of the Texas Cattle Feeders Association says the NCBA’s work with the EPA in the past four years is under review and will be revised or altogether rescinded. However, the NCBA has launched a public relations campaign to demonstrate the WOTUS rule’s impact on agriculture.

“We’re really focused on making sure that whatever comes out of this process does not effectively duplicate the rule that we saw from the Obama administration, which is an over-expansive rule.”

For more on the NCBA’s 2022 policy priorities, click here .

USDA Clarifies Cattle Categories in CFAP Program

Thu, 28 Oct 2021 19:18:55 GMT

There have been a lot of questions about where specific groups of cattle fit into the categories outlined in the Coronavirus Food Assistance Program. USDA released some clarification as to where cattle fit in each category.

Check out this helpful chart from USDA:

Common Name	Description	CFAP Category
Newborn Calf	Calves from birth to days old	Feeder Cattle: < 600 lbs
Calf	Calves still nursing the cow, animals that generally weigh less than 500 pounds	Feeder Cattle: < 600 lbs
Bucket Calf	Orphan or newborn calf normally purchased when they are 1 to 10 days old	Feeder Cattle: < 600 lbs
Heiferette	A female bovine animal that has not calved and weighs more than 500 pounds; OR a heifer placed on feed following the loss of a calf or an open heifer placed on feed following the breeding season	Feeder Cattle: < or > 600 lbs, as applicable
Steer	A castrated male bovine animal that generally weighs more than 500 pounds	Feeder Cattle: < or > 600 lbs, as applicable
Weaner or Weaned Calf	Animal between 105 and 355 days coming from cow-calf	Feeder Cattle: < or > 600 lbs, as applicable
Backgrounded Cattle	Steers and heifers that are fed a warm up or conditioning ration are normally fed to approximately 700 pounds, and then sold as feeders or shipped to another feedlot to be finished for the slaughter market	Feeder Cattle: < or > 600 lbs, as applicable
Stockers/Feeders/Feeder Calves	Young weaned steers or heifers, weighing approximately 400-800 pounds usually grazing on pasture and/or feed ration to prepare for shipment to feeders intended for slaughter or selected for replacement stock	Feeder Cattle: < or > 600 lbs, as applicable
Yearlings	Calves between 1 and 2 years of age	Feeder Cattle > 600 lbs
Open Heifer	Non-pregnant female bovine	Feeder Cattle: < or > 600 lbs, as applicable
Replacement Heifers	A heifer that has been selected to be bred and placed in the beef herd	All Other Cattle
Bred Heifers	A female bovine that is pregnant with her first calf	All Other Cattle
First Calf Heifers	A young female that has had only one calf	All Other Cattle
Bred Cows	A female bovine animal that has borne at least one calf	All Other Cattle
Open Cows - Retained in Herd	(Non-pregnant) cows at the end of the breeding season	All Other Cattle
Open Cows - Slaughter	(Non-pregnant) cows at the end of the breeding season	Slaughter Cattle: Mature
Cows-Culled (Beef and Dairy)	A cow that is removed from the main breeding herd or dairy production for one or more reasons (i.e., age, poor production, physical ailment, poor disposition, genetic selection, etc.) and is generally sold for slaughter and not destined to be a replacement	Slaughter Cattle: Mature
Herd Bulls-Culled (Beef and Dairy)	A mature (approximately 24 months of age or older) uncastrated, male bovine removed from the main breeding herd sold for slaughter and not destined to be replacement	Slaughter Cattle: Mature
Herd Bulls (Breeding-Beef only)	A mature (approximately 24 months of age or older) uncastrated, male bovine used for breeding purposes	All Other Cattle
Finished Cattle (1200 lbs or more)	Cattle that have reached the optimal weight and conditions ready for slaughter	Slaughter Cattle: Fed
Fat Steer/Heifer (1200 lbs or more)	Cattle that have reached the optimal weight and conditions ready for slaughter	Slaughter Cattle: Fed

To see answers to frequently asked questions about CFAP related to the dairy industry, visit: www.milkbusiness.com/CFAP .

Ag Commissioner Sues Biden Administration Claiming American Rescue Plan Discriminates Against White Farmers

Fri, 30 Apr 2021 21:53:20 GMT

The nearly $2 trillion stimulus known as The American Rescue Plan Act of 2021 is already facing a lawsuit over its provisions targeting farmers of color.

The Texas Tribune reports Texas Ag Commissioner Sid Miller has filed a personal lawsuit against the federal government. He says the COVID relief plan discriminates against some white farmers and ranchers because it offered targeted relief to “socially disadvantaged” farmers and ranchers, which the plan defines as people of color.

The plan designates roughly $5 billion for things such as loan repayments and program awareness. Miller’s complaint against USDA says the definition in the program fails to include “white ethnic groups that have unquestionably suffered” because of ethnicity, such as those of Irish, Italian, German, Jewish and eastern European heritage.

The lawsuit is seeking class action status.

CoBank: COVID-19 Will Continue To Steer Economy In 2021

Tue, 22 Dec 2020 17:52:19 GMT

A new report from CoBank details 10 key factors driving and shaping the economy in 2021. There is one big factor that weighs heaviest on the pace for economic recovery—the speed and reach of the COVID-19 vaccinations. CoBank expects that as the vaccine is distributed more broadly, the latter half of 2021 will show stronger consumer demand.

“The coming year will be a recovery year for most Americans and the businesses that make up the U.S. economy,” said Dan Kowalski, vice president of CoBank’s Knowledge Exchange division. “The early part of the year should look very different than the latter, but in total, economic growth is estimated to be about 4%, following a retreat of roughly 4% in 2020.”

We march through the final days of 2020, here are those 10 factors to watch in 2021:

1. Global Economy: Uneven Recovery Ahead

CoBank economists say COVID-10 will steer the global economy in 2021 and the pandemic will continue the trend of uneven economy recovery. It’s noted China has recovered fastest from the pandemic, and Europe has suffered the most. The pandemic’s long-tail will be the government debt around the world.

From CoBank: “Our confidence in GDP forecasts has increased since mid-2020, but uncertainties related to the dissemination and uptake of vaccines mean timing the recovery is still exceedingly difficult.”

2. U.S. Economy: COVID is Still the Economy

The next couple of months are critical in for domestic economy as fiscal policy decisions are made.

From CoBank: “Roughly 10 million Americans who lost their jobs early in the pandemic have yet to find work, and many of them are receiving some form of public support. If and how Congress chooses to fund further relief will impact the speed of the recovery.”

3. Monetary Policy: Less Dramatic but No Less Critical

CoBank cites central banks as “economic heroes” through the pandemic, giving the Federal Reserve’s quick action in the early weeks and continued stabilization as an example.

From CoBank: “With short term interest rates firmly at zero, the Federal Reserve will manage a few levers in the coming year, advocating for fiscal policy and keeping a close watch on longer-term rates and inflation, among other things.”

4. U.S. Government: Sweeping Leadership Changes

With the new Biden administration and narrow margins of power in Congress, CoBank cites managing the pandemic as the primary focus before infrastructure, trade policy, social justice or climate change can take precedence.

5. U.S. Farm Economy: A Strong 2020 Finish Boosts Potential

After more than one-third of net farm income from government payments in 2020, the new year starts with higher commodity prices and low interests, which will provide an “important financial buffer” in the year ahead. CoBank expects farmland values to remain stable in 2021.

6. Specialty Crops: Preparing for More Shifts in Consumer Demand

Less foodservice and more food being bought via retail has brought historic shifts in logistics and supply chains. This will bring further adaptation in the specialty crop industry.

From CoBank: “Some growers, packers, and processors have successfully managed to increase or reroute products into retail channels like grocery stores and home delivery of food boxes. However, steep financial losses from the loss of foodservice contracts will ultimately result in the rationalization of some processing assets and production acreage.”

7. Grain, Farm Supply and Biofuels: Recovery in Motion

From CoBank: “The outlook for grain is more favorable than a year ago, although carry has evaporated with the inversion of futures prices. The outlook for farm supply cooperatives is positive for 2021 following a very orderly harvest, rising grain prices and decent farm liquidity. The ethanol outlook is stable but guarded, with considerable growth and margin opportunities favoring ethanol co-products vs. fuel. After experiencing a near 50% reduction in demand during mid-March 2020 to mid-April 2020, fuel ethanol in the U.S. has recovered to about 90% of pre-COVID levels.”

8. Dairy and Animal Protein: Higher Feed Costs and Restaurant Reboot

The top challenge for livestock in the year ahead is shaping to be rising feed costs as corn and soybean meal prices are at multi-year highs. Domestic demand is dynamic with the changes in foodservice demand, and international demand is also in question.

From CoBank: “China’s rebuilding of the nation’s hog herd brings into question its appetite for foreign protein in 2021 as supplies climb. The U.S. dairy sector stands to benefit from the rebound in Chinese hog production with dry whey used as a protein supplement in China’s hog feeding rations.”

9. Rural Electricity: From Reactive to Adaptive

One big area of change CoBank expects in 2021 is an increase in solar. Its economists point to one report claiming solar is the cheapest form of energy in history and business leaders are pointing to the renewable source to be included in climate change mitigation efforts.

10. Rural Communications: Big Spending Not Likely, But Regulatory Change Is

From CoBank: “We expect a good bit of gridlock in Washington in 2021. It’s likely that any COVID-related stimulus will focus on near-term economic needs versus investing in projects that take years to produce results. That leaves the Federal Communications Commission (FCC) as the remaining institution in Washington to enact policies that will help rural communication providers. In 2020 the FCC held its Citizens Broadband Radio Service (CBRS) spectrum auction that was much more rural friendly than any of its past auctions. And as a result, rural operators are now able to build carrier-grade fixed wireless networks at significantly reduced costs.”