A shutdown has been averted, but the battles over federal spending likely are just beginning.

The Republican-controlled House pivots back to debating individual appropriations this week after Congress cleared a stopgap spending bill this week that will keep the government funded through Nov. 17. The House is set to turn this week to the Energy-Water bill that includes funding for the Army Corps of Engineers, and the Legislative Branch measure that funds the operations of Congress. 

We’ll be watching: To see how hardline conservatives respond to what transpired this weekend. Rep. Matt Gaetz, R-Fla., has repeatedly threatened to act to remove House Speaker Kevin McCarthy, R-Calif., but the GOP leader hasn’t been deterred so far. “McCarthy appears to believe his opponents lack the votes to remove him – at least for now,” according to an analysis by Michael Best Strategies.

Still, Gaetz told CNN on Sunday that he intends to file a motion to vacate this week. “I think we need to rip off the Band-Aid. I think we need to move on with new leadership that can be trustworthy,” Gaetz said.

Meanwhile, the hardliners are relishing the chance to keep debating the fiscal 2024 spending bills one at a time. Doing so enables the hardliners to force colleagues to vote on a wide range of spending cuts and ideological issues.

Take note: The continued focus on spending issues is almost certain to keep a farm bill on hold for the foreseeable future.

US, Mexico still working on GM corn dispute panel

The U.S. and Mexico are still working to seat members of a dispute panel will rule on the U.S. argument that Mexico’s effective ban on genetically modified white corn. The initial deadline for the formation of the panel was last week. 

Chief U.S. Ag Trade Negotiator Doug McKalip told reporters recently that he expects that the USMCA dispute could be resolved as early as April 2024. 

Judge rejects challenge to H-2A methodology rule

A federal judge has rejected farm employers’ request for an injunction that would halt the Labor Department’s enforcement of a rule increasing wages for H-2A workers.

A judge in North Carolina said the two dozen employers, including USA Farm Labor, a major farm labor contractor, had failed to show why were likely to succeed on the merits of their case. He did, however, allow the case to proceed.

Martin Reidinger, chief U.S. District Judge in the Western District of North Carolina, said the Labor Department adequately considered the cost of higher AEWRs on producers. He also said an injunction “could cause at least as much harm” to H-2A workers “who would be deprived of wages that they are entitled to under the final rule, as a denial would harm the plaintiffs, who would potentially avoid having to pay these wages.”

DMC triggered for eighth consecutive month

Dairy producers are getting their money’s worth out of the Dairy Margin Coverage program after eight consecutive months of government payouts. DMC is the farm bill’s dairy margin risk management program that producers pay into and is designed to pay producers when feed costs go up and milk prices go down. USDA estimated DMC payments totaled $120 million for the month of August, and projected dairy producers have received more than $1.2 billion this year. 

“Dairy Margin Coverage is a key risk management tool for dairy operations to financially endure the numerous, and often unpredictable uncertainties that adversely impact market prices for milk,” said Farm Service Agency Administrator Zach Ducheneaux.

USDA launches insurance product for weaned calves

Cow-calf producers in Colorado, Nebraska, South Dakota and Texas will have the option starting in January 2024 to purchase a new insurance product offering coverage levels between 50 and 85% of losses. 

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The Weaned Calf Risk Protection policy, offered by USDA’s Risk Management Agency, offers Actual Production History coverage for beef cow-calf producers to insure revenue from their spring calving operations. The coverage provides for a decline in price and loss of yield due to a decrease of overall weaning weight like revenue coverage offered for other crops, according to a USDA release.  

“There are many variables and pressures involved in running a cow/calf operation, making it even more important that ranchers have a variety of insurance options available similar to the wide range of options available to crop growers,” said RMA Administrator Marcia Bunger. “The introduction of Weaned Calf Risk Protection reflects our priority to always pay attention to the evolving needs of producers and create options that can meet their unique situation.”  

EPA approves Ohio pollution diet for western Lake Erie Basin

Ohio must use “all means” to reduce the amount of phosphorus in the western Lake Erie Basin from concentrated animal feeding operations, the U.S. EPA said Thursday in approving a plan submitted by Ohio EPA this summer.

Reducing and eliminating harmful algal blooms “will depend on increased engagement and appropriate controls by CAFOs in the basin,” EPA regional Water Division Director Tera Fong told Ohio EPA Director Anne Vogel in a letter.

“CAFOs contribute 10%-12% to nutrient loading in the basin through land-applied manure and discharges from drain tiles conveying nutrients into nearby streams,” Fong said. “There must be a focus on reductions from CAFOs by all means – including vigorous enforcement – so that all CAFOs only land apply manure consistent with their nutrient management plans.”

Correction: Agri-Pulse previous reported that a USMCA panel had been formed to rule on the U.S.-Mexico dispute over genetically modified corn. An administration official says the panel will be formed, but there are procedural delays.

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