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One deal to rule them all

Delivered every Monday by 10 a.m., Weekly Agriculture examines the latest news in agriculture and food politics and policy.
Jan 08, 2024 View in browser
 
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By Garrett Downs and Meredith Lee Hill

QUICK FIX

— House and Senate leaders are plowing ahead on efforts to avert a partial government shutdown that would hit USDA and FDA Jan. 20, after announcing an agreement on topline spending levels. The move is a critical prerequisite to striking a deal on full-year funding bills, after months of intense fighting.

— Ag Secretary Tom Vilsack is in battleground New Hampshire this morning, talking up the Biden administration’s efforts to increase economic security in rural communities. Vilsack will also visit Maine today to discuss the administration’s efforts to fight climate change.

— The FDA said it found a “high level” of chromium in recalled cinnamon applesauce pouches that were contaminated with lead and sickened scores of children.

HAPPY MONDAY, Jan. 8. We’re your hosts, Garrett Downs and Meredith Lee Hill. As always, send your tips to gdowns@politico.com and meredithlee@politico.com, and follow us at @Morning_Ag.

 

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Driving the day

From left, Senate Minority Leader Mitch McConnell, Senate Majority Leader Chuck Schumer, and Speaker of the House Mike Johnson, listen to remarks during a Hanukkah gathering.

Senate Majority Leader Chuck Schumer (D-N.Y.) and House Speaker Mike Johnson (R-La.) announced a topline funding deal on Sunday. | J. Scott Applewhite/AP

TOPLINE FUNDING DEAL REACHED: House and Senate leaders announced Sunday they’ve struck a deal to fund the government at nearly $1.7 trillion for the current fiscal year, a critical first step as lawmakers scramble to reach a broader deal to avert a partial government shutdown set to hit USDA and FDA.

The topline number, agreed to by Speaker Mike Johnson (R-La.) and Senate Majority Leader Chuck Schumer (D-N.Y.), is in accord with the pact reached by then-Speaker Kevin McCarthy and President Joe Biden to raise the debt ceiling. In a major victory for Democrats, the deal pegs non-defense spending at $773 billion, a total that counts tens of billions of dollars agreed to alongside the debt limit package, the so-called “side deal” conservatives tried to kill.

Race to the finish: Lawmakers have their work cut out for them when they return this week. House and Senate leaders now must scramble to piece together legislative text to fund the agencies that will run out of cash on Jan. 19, including the bill to fund the USDA and FDA. Falling back on a year-long continuing resolution would trigger across-the-board cuts agreed to in the debt ceiling deal.

Senate Appropriations ranking member Susan Collins (R-Maine) summed it up bluntly in a post to X, the platform formerly known as Twitter.

“Congress now faces the challenge of having only 12 days to negotiate and write language, secure passage by both chambers, and get the first four appropriations bills signed into law,” Collins said. “I hope this agreement will help us avoid a year-long Continuing Resolution, implementation of the [debt ceiling deal’s] CR-penalty, or a government shutdown.”

Democratic leadership said it will not agree to any “poison pills” as a part of a final full-year deal. That includes controversial House GOP abortion policy riders, like the one that whipped up a bruising intraparty battle and stalled House Republicans’ Ag-FDA spending bill.

Possible trouble ahead: The deal enraged Johnson’s right flank. The House Freedom Caucus panned it as “a total failure” in a post to X.

Democratic negotiators and the White House have tried to keep the government funding talks separate from negotiations over a supplemental funding bill progressing in the Senate, where Republicans have demanded a series of immigration policy changes in exchange for aid for Ukraine and Israel.

But House Republicans generally see both packages as part of a larger deal. And, as Meredith reported last week, even some House GOP centrists are warming to the idea of forcing a partial shutdown for border concessions.

Senior House Republicans are planning to brief groups of House GOP lawmakers on the plans later today, three lawmakers tell Meredith.

WIC fallout: The topline levels allow negotiators to avoid the House GOP’s proposed cuts to the Special Supplemental Nutrition Program for Women, Infants, and Children, should they choose. However, there is no specific agreement on WIC in the announced framework, nor is there any mention of Democrats’ (and some Republicans’) wish to fulfill Biden’s request for an additional $1 billion in funding to keep WIC afloat this year.

Schumer noted in a statement Sunday the deal protects “nutrition assistance,” among other key Democratic priorities, “from the draconian cuts sought by right-wing extremists.” Senate Democrats have been pressing to “fully fund” WIC, but several senators and aides tell MA it’s unlikely they’ll be able to secure the entire $1 billion in extra funding.

THE RURAL VOTE 2024

Agriculture Secretary Tom Vilsack walks down plane steps as he arrives with President Joe Biden at Minneapolis–Saint Paul International Airport in St. Paul, Minn., Wednesday, Nov. 1, 2022 (AP Photo/Andrew Harnik)

Ag Secretary Tom Vilsack will visit New Hampshire and Maine on Monday. | Andrew Harnik/AP

VILSACK’S NEW ENGLAND TOUR: Vilsack this morning will begin a New England day trip in Durham, New Hampshire, a key battleground that will test President Joe Biden’s electoral strength.

Vilsack will officially be in the Granite State to prop up the Biden administration’s investments in rural healthcare and the USDA’s “ongoing efforts to create jobs and economic opportunities, strengthen farming operations and businesses, and build prosperity in rural communities in New Hampshire and across the country.”

But the visit also marks an early high-profile appearance by a top Biden official to a battleground state as the 2024 election heats up. During the 2022 midterms, Vilsack dispatched to several key swing states.

He’s likely to highlight tens of billions of dollars worth of investments Biden and Democrats were able to secure for rural areas, a key plank of the Biden campaign’s electoral pitch to rural communities. That includes nearly $40 billion from the Inflation Reduction Act for climate-smart agriculture and rural development; the Bipartisan Infrastructure Law’s investments to build out broadband access; and the American Rescue Plan’s rural hospital grants and meat processing expansion payments.

The New Hampshire wrinkle: New Hampshire Democrats are holding an unsanctioned primary on Jan. 23 after Biden chose South Carolina to go first. New Hampshire chose to buck Biden and hold their primary first anyway, and he will not appear on the ballot in the state. Instead, Biden’s allies in the state are mounting a write-in campaign.

Counterprogramming: Vilsack’s visit also coincides with the Iowa caucuses, which will occur next Wednesday.

Biden’s chief rival, former President Donald Trump, gave a speech in Iowa on Saturday where he courted farmers by propping up his direct farm payments.

“Look I did get you $28 billion,” Trump said at the event, citing the taxpayer-funded bailout he gave to farmers as a salve to the fallout of his trade spat with China. “The farmers of America are not voting against Trump.”

Vilsack’s appearance will give him and the Biden administration the opportunity to respond and hit back at Trump’s claims.

Eye on the FDA

MORE APPLESAUCE FALLOUT: The FDA on Friday said it found a “high level” of chromium in recalled cinnamon applesauce pouches that were contaminated with lead and sickened scores of children.

The FDA found chromium in both the pouches and the cinnamon it collected from a linked Austrofoods production facility in Ecuador.

Remember: FDA’s Deputy Commissioner for Human Foods Jim Jones previously told POLITICO he suspects the pouches may have been contaminated on purpose, most likely as economic adulteration.

The FDA’s investigation is ongoing.

 

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Row Crops

— Germany’s government watered down a plan that had infuriated the country’s farmers. (POLITICO Europe) 

— Poland reached a deal with farmers to end a blockade of Ukraine’s border. (POLITICO Europe)

— A new proposal pays farmers to send water to the Great Salt Lake. (The Salt Lake Tribune)

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

 

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