USDA-UFW LABOR PILOT BRINGS CONTROVERSY: USDA's choice to partner with United Farm Workers in a new $65 million pilot project to streamline H-2A and increase migrant worker protection has faced criticism from Republicans, who call UFW a "openly partisan advocacy organization." Origins of partnership: USDA told MA the partnership formed after it received an "unsolicited proposal from UFW … with their role being to provide technical support to provide information to USDA as USDA develops the pilot program." USDA also clarified that it will be accepting input from additional stakeholders as it "stands up" the program, such as holding listening sessions with "a variety of stakeholders … including other labor unions, grower organizations, farmworker advocacy groups, and other stakeholders that may have an interest in the grant program." The two sides have not worked out whether there will be compensation and are still in the planning stages. Republican blowback: Senate Republicans, in a scathing letter to Ag Secretary Tom Vilsack, said UFW has "a long history of actively lobbying for drastic changes in agriculture labor policy at every level of government, including during the Biden Administration," which led them to question question whether it could "accurately inform" USDA. UFW pushed back on the accusations, with spokesperson Elizabeth Strater telling MA it has worked on more than six bipartisan deals and looks forward to working with "all willing agricultural employers, grower associations, unions, farmworker organizations, and with members of Congress." Labor organizer Cesar Chavez organized UFW in 1962. The largest labor union of farmworkers, UFW has achieved important wins for farmworkers, a group excluded from some federal labor laws and historically challenging to organize. President Joe Biden, who has boasted of being the most pro-union president ever, hired a Chavez descendant, Julie Chavez Rodriguez, as a senior advisor. Employer fallout: The conservative-leaning Farm Bureau, which typically falls on the side of employers, is "concerned USDA has chosen to engage with the UFW" and not employers, spokesperson Allison Crittenden told MA. DEPARTURES ON THE AG COMMITTEE: Ag Committee press secretary Lillie Zeng departed the committee last week, the latest shakeup in the office as it gears up for the 2023 farm bill. Zeng had been with the committee for a little over a year, joining in July 2021. She has not yet announced her next move. Patrick Delaney will take over comms for the committee for the time being. Another big departure: Stabenow also lost her longtime committee chief of staff, Joe Schultz, in July. Schultz had served since 2011, moving from senior economist to chief economist in 2013 and becoming staff director in 2015 until his departure in July. Schultz has also not made clear his next move, but a committee statement said he will stay in the ag and climate space. Erica Chabot, who spent the last decade on the Appropriations Committee as legislative director and deputy chief of staff, will replace Schultz. Why it matters: The departures come right before debate is set to ramp up on the 2023 farm bill, which is renewed every five years. The departure of Schultz, who has helped write the past two farm bills with Stabenow, is particularly notable, with Stabenow saying that "he may be an Ohio State Buckeye, but he will be deeply missed." ICYMI – HIGH GROCERY PRICES STILL HERE: The latest Consumer Price Index showed that high food prices are stubborn, persisting as other inflation categories have begun to recede. In case you missed Thursday's MA, here's a recap of your host's chat with Mark Bergen, a marketing professor at the University of Minnesota and an expert in pricing and inflation. By the numbers: Overall inflation remained steady with a zero percent change in July and up 8.5 percent for the year, the first slowdown in months being led by a decrease in gas prices. But food prices rose by 1.1 percent for the month, 10.9 percent over the last year. Food at home rose even higher, ticking up 1.3 percent for the month, and up 13.1 percent for the year. What gives? : War in Ukraine has upended global grain markets; fertilizer, gasoline and other inputs have soared; drought has spiked; and a bout of avian influenza has rocked the egg and poultry market. Efforts by the White House to stem food prices have been largely futile in the face of it, and efforts to boost production are stymied by the simple fact that it takes time for food to grow. Savvy retailers also have a role to play in the increased prices. Big retailers can quickly change their calculus to pass on inflationary cost to the consumer, who can begin to expect higher prices at the grocery store. But gas prices dropped, why not food?: Inflation "rises like rockets and falls like feathers," Bergen said. Food prices, which are notoriously volatile in certain categories, will respond to inputs like gasoline or diesel dropping with a lag, according to Bergen. It will take time for the retailers and consumers to react to lower input costs. If inputs continue trending downwards, a savvy retailer could lower its prices and competition will kick in as consumers go for the lower priced products. This would ultimately have a domino effect, forcing retailers to lower prices. What can the consumer do?: Bergen said consumers can punch back at inflation by being savvy on their own and shopping around for low prices, forcing the hand of retailers by way of competition to lower their prices. "As consumers remain attentive, remain aware, when these costs start to go down, there are going to be people who pass those on faster," he said. "And if you shop there and you shop those categories in those stores and those brands, they'll win and the others will follow." Global shock: While the U.S. could see prices taper off in the near future, it's a different story globally. Read Eddy Wax and Bartosz Brzezinski's report for more on that.
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