Farm groups are worried that USDA is close to running out of money to make farm bill payments that are due next month and are pleading with Congress to replenish the department’s Commodity Credit Corp. account.
The reason for the concern is that USDA is expected to announce any day a second round of Coronavirus Food Assistance Program payments using $14 billion that Congress provided the department earlier this year. If all of that $14 billion were used for CFAP-2, the CCC account would be left with just $2 billion, according to a new analysis by the American Farm Bureau Federation.
AFBF economists say USDA owes producers $4.6 billion in farm program payments in October plus another $2.3 billion in conservation program payments.
“Without immediate CCC reimbursement, payments and programs would be significantly delayed, jeopardizing operations across the country,” says a letter to congressional leaders signed by more than 40 farm groups.
Keep in mind: The CFAP-1 payments have so far totaled $9.9 billion, well short of the $16 billion originally estimated.
The CCC replenishment would likely have to be attached to a continuing resolution that Congress needs to pass to keep the government running into the new fiscal year, which starts Oct. 1.
Dems reject compromise COVID aid
The prospects for a new coronavirus relief package seem to get bleaker by the day. On Tuesday, the bipartisan House Problem Solvers caucus offered a compromise plan worth roughly $2 trillion, but a group of House Democratic committee leaders quickly rejected it as inadequate.
The Problem Solvers proposal includes $25 billion in new aid for farmers and $12 billion for broadband.
House Speaker Nancy Pelosi, who spoke Tuesday with members of the National Farmers Union, insisted she still wants a deal on COVID relief. “You have to have a massive problem met by a massive response to it,” she said.
House Dems set vote on SRE transparency
The House is expected to consider legislation next week containing language requiring more transparency around small refinery exemptions from the Renewable Fuel Standard.
The bill is unlikely to go anywhere in the Senate. But Democrats are looking to make a campaign issue of the waivers, and the provisions in the bill are sponsored by House Agriculture Committee Chairman Collin Peterson, D-Minn.
“I’m getting tired of solving problems that were created by the administration in the first place. These waivers never were justified,” Peterson told NFU members.
Peterson’s provisions, which are part of the House Energy and Commerce Committee’s Clean Economy Jobs and Innovation Act, would set an annual deadline for refiners to request exemptions and require EPA to make public the names of refiners requesting waivers.
Senators weigh new Clean Water Act rule
A prominent Iowa farmer is telling a Senate committee today that the Trump administration’s new rule re-defining the reach of federal water pollution regulations is providing “clarity, certainty” and a “common sense” approach to farmers.
The new Navigable Waters Protection Rule replaced the Obama-era “waters of the United States,” or WOTUS, rule that had increased the number of wetlands and other areas under the jurisdiction of the Clean Water Act.
In his prepared testimony, Ray Gaesser says that the WOTUS rule “threatened my farm with jaw-dropping penalties and even criminal prosecution for plowing or spraying a ‘water of the U.S.’ But it was so broad and vague that under the “water of the U.S.” definition, most any land where water sometimes flowed or ponded after a rain, would be regulated by the federal government.”
He adds that, “Farmers have been calling for clean water and clear rules for years, and now, with the Navigable Waters Protection Rule, we know it’s possible to have both. Gaesser is a former president of the American Soybean Association.
The Senate Environment and Public Works Committee also will be hearing from a New Mexico state regulator and a Florida developer.
EPA reviewing Florida plan to take over CWA regulation
EPA is reviewing Florida’s plan to take over regulatory responsibility for the Clean Water Act’s Section 404 program, which governs the filling of wetlands and other waters of the United States under the Clean Water Act. Only two other states, New Jersey and Michigan, have assumed control of the 404 program.
Industry in the state has long sought for the state to take over the program. But former governor and senator, Bob Graham, argued in an op-ed earlier this year that the Army Corps of Engineers would lose oversight “an indeterminable number of projects that may dredge or fill in tens of thousands of acres of wetlands.”
Sen. John Boozman, R-Ark., with Rep. Mike Conaway, R-Texas, at the unveiling of the former House Ag chairman's portrait. (Twitter)
China wins WTO case against US tariffs
China will now have the WTO on its side when it argues that the U.S. tariffs on $234 billion of Chinese exports are unjust. But China’s victory at the WTO Tuesday likely won’t provide much more than bragging rights.
Even though a WTO panel ruled that the U.S. was unjustified in slapping tariffs on China in 2018, the decision is not expected to have anything more than a symbolic effect because the WTO’s appeals court is essentially defunct, a result the U.S. blocking new judge appointments. If the U.S. appeals, then the case will just idle, says Veronica Nigh, an economist with the American Farm Bureau Federation.
The WTO panel also ruled the U.S. was unjustified in trying to confront China over allegations of technology theft outside of the international trade body. But that just reinforced the U.S. position that the WTO cannot deal with the situation.
“This panel report confirms what the Trump Administration has been saying for four years: The WTO is completely inadequate to stop China’s harmful technology practices,” said U.S. Trade Representative Bob Lighthizer said.
She said it. “A thousand people infected, several people died, and the settlement was $13,000. I mean, really?” – House Speaker Nancy Pelosi, referring to a proposed OSHA fine for a meatpacker’s handling of the COVID-19 pandemic. Packers say the fines were unfair, citing their uncertainty about proper practices.
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