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Here’s what reconciliation means for ag

Delivered every Monday by 10 a.m., Weekly Agriculture examines the latest news in agriculture and food politics and policy.
Aug 01, 2022 View in browser
 
POLITICO's Weekly Agriculture newsletter logo

By Garrett Downs

With help from Meredith Lee and Marcia Brown

QUICK FIX

— The Democrats reconciliation bill a la Joe Manchin is here, and it holds a lot of money for agriculture. We broke down what it means and where it will go.

— House Ag Chair David Scott introduced his bill to boost the safety net for small cattle producers. But big cattle is already coming out against it, with the National Cattlemen's Beef Association saying it has "blind spots."

— House Ag Committee Republicans are calling on Scott (D-Ga.) to schedule a hearing with EPA Administrator Michael Regan. Regan's EPA has been a frequent target of Ag Republicans, who contend it is taking away chemical tools from farmers.

HAPPY MONDAY, AUGUST 1. Welcome to Morning Ag. I'm your host, Garrett Downs. Tips? Send them along to gdowns@politico.com and @_garrettdowns and follow us @Morning_Ag .

 

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Driving the Day

GREEN FOR GREEN AG: The surprise deal West Virginia Sen. Joe Manchin struck with Majority Leader Chuck Schumer includes $40 billion in federal investments in agriculture priorities. The deal includes investments in agriculture, forestry and rural communities that Democrats say will create good paying jobs.

Climate-focused farming: Half of the ag spending, or $20 billion, will go to currently oversubscribed USDA programs that incentivize green farming practices and limit greenhouse gas emissions. This includes strategic fertilizer use; carbon sequestration and storage practices; and greater application of cover crops.

Go deeper:

— $8.45 billion for the Environmental Quality Incentives Program (EQIP)

— $6.75 billion for the Regional Conservation Partnership Program (RCPP)

— $3.25 billion for the Conservation Stewardship Program (CSP)

— $1.4 billion for the Agricultural Conservation Easement Program (ACEP)

The green ag and conservation spending was lauded by Mike Lavender, the National Sustainable Agriculture Coalition's interim policy director, who said that "Congress is poised to make a once-in-a-generation investment in effective working lands conservation programs — such as CSP, EQIP, and others — that will put farmers at the center of our national response to the climate change crisis."

Rural development: The Inflation Reduction Act of 2022 will invest $14 billion in rural electric cooperatives and fund loans for rural communities to invest in renewable energy.

Biofuels: The bill would also provide funds for biofuels and sustainable aviation fuel infrastructure. The package also contains tax credits for biofuels, which are under the jurisdiction of the Senate Finance Committee.

Forestry: The deal funds $5 billion for fighting wildfires and boosting carbon sequestration projects. The money will also be used to plant trees in urban communities.

What didn't make the cut from BBB: $10 billion for child nutrition, $22 billion for forestry and $8 billion for conservation programs.

Looking forward: Lavender called for the measure's passage and said that if the measure is passed, it could "pave the way for a climate-focused 2023 Farm Bill." The bill is slated for the Senate floor this week.

HOUSE AG CATTLE BILL: House Ag Chair David Scott (D-Ga.) released his version of a bill to help small ranchers, which includes insurance premium subsidies and additional safety nets for ranchers.

What's in the bill: The bill, dubbed the Small Family Farmer and Rancher Relief Act, is split into two parts — one to increase the safety net for small ranchers and another to increase competition and market access.

The first section includes:

— An increased premium subsidy for ranchers insuring a herd of 100 cattle or less under the Livestock Risk Protection program.

— The creation of a Beef Cattle Spread Coverage Program at the USDA, an indemnity program that would provide relief when the farmer's share of the retail dollar falls below 51.7 percent.

— Providing resources to the USDA to educate producers and insurance agents on the utility of the new insurance and safety net programs.

The second section includes:

— The creation of a Small Rancher Market Access competitive grant program at USDA to help eligible entities aggregate, add value and market meat products to local and regional markets with a focus on direct-to-consumer and direct-to-institution sales.

— Eligible entities for the program include: individual ranchers, cooperatives of small cattle producers with a majority of members under a certain size (average of 100 head or fewer), nonprofits or land-grant universities with experience working with small cattle producers, tribal governments, food hubs or community supported agriculture programs.

— Program eligibility would prioritize underserved and limited resource producers.

Big Beef blowback: Big beef, however, is not on board with Scott's proposal.

Ethan Lane, the vice president of government affairs at the National Cattlemen's Beef Association, said the bill "prompts more questions than it provides answers," and "look[s] forward to working with our partners in the livestock community to address the blind spots in this proposal."

HOUSE AG REPUBLICANS WANT REGAN TO TESTIFY: Republican leaders on the House Ag Committee wrote a letter to Chairman David Scott requesting he hold a hearing with Environmental Protection Agency Administrator Michael Regan in September.

Context: Regan, who took the helm at EPA in March 2021, has become a frequent target of Republicans who say the agency is overstepping its authority with onerous regulatory reviews on pesticides. The Biden administration has taken a more aggressive approach to regulating pesticides that could have harmful effects on human and ecosystem health.

What they said: The group of Republicans slammed Regan's handling of the Federal Insecticide, Fungicide, and Rodenticide Act, a 1947 law that regulates the registration, sale and distribution of pesticides.

They said Regan's EPA has "weaponized the FIFRA registration review against American farmers to placate a 'cancel culture' of pesticides and curry favor with extremist groups," which has choked the toolbox of farmers and their production capacity.  
What's next: The group requested a hearing with Regan before Sept. 30, after the August recess.

Scott's office did not respond to a request for comment on whether or not he is considering a hearing.

 

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Row Crops

— The incoming president of the United Nations rural poverty agency says there's not enough money going into solving the global food crisis, POLITICO's Eddy Wax reports.

— House Ways and Means Vice Chair Suzan DelBene (D-Wash.) has joined House Speaker Nancy Pelosi on her trip to Asia. The Indo-Pacific region is one of the top targets for ag groups urging increased trade deals.

— A huge wildfire broke out in Northern California, scorching 51,000 acres and becoming the state's largest this year, The New York Times reports . 

THAT'S ALL FOR MA! Drop us a line: gdowns@politico.com , meredithlee@politico.com , marciabrown@politico.com and ecadei@politico.com .

 

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