Editor’s note: Daybreak will be on holiday, starting Monday through New Year’s Day, returning Tuesday, Jan. 2. In the meantime, follow developments in ag and food policy at Agri-Pulse.com.

The Treasury Department is expected today to release long-awaited rules for the new tax credit for sustainable aviation fuel. As we’ve reported, Treasury is expected to allow use of the Energy Department’s GREET model for assessing the carbon intensity of SAF feedstocks. That would be a win for the agriculture sector. 

DOE has been in the process of updating the GREET model, and it’s not yet clear what that will mean for ag feedstocks.  

Check Agri-Pulse.com for developments

Thompson tries to sell farm groups, Democrats on farm bill funding

As we reported Wednesday, Thompson’s staff has started briefing stakeholder groups on possible funding sources for the next farm bill that face resistance from Democrats, including reallocation of $14.4 billion in Inflation Reduction Act funding for conservation programs.

Thompson also has been meeting with small groups of Democrats in recent weeks to pitch his ideas. 

“We'll keep working on it,” Thompson said Thursday, when asked about this progress with Democrats. As lawmakers headed home for the holidays, Thompson also told reporters his new target for moving a farm bill is in March. 

Thompson stressed that there’s no money available outside the farm bill to fund increased reference prices and other needs. “We're going to have to really reassign … reprioritize, you know, the dollars that are within our jurisdiction,” he said. 

Vilsack defends ERP allocation

Ashley Gearhardtisn’t backing down when it comes to the way USDA distributed ad hoc disaster assistance to farmers for 2022 losses. The distribution formula has come under heavy criticism from congressional Republicans for the way it sharply cuts payments to farmers with larger losses. 

During an interview with Agri-Pulse Newsmakers, Vilsack reiterates that Congress provided funding to cover about 27% of the estimated uncovered losses. Of the 220,000 farmers who are getting ERP payments, about 180,000 are receiving more money than they would have gotten under the formula used in previous years when the Emergency Relief Program was fully funded, Vilsack says. 

“So, if Congress wants to basically ensure full funding, then all they've got to do is appropriate the money for full funding,” Vilsack says. 

By the way: Kansas Sen. Jerry Moran, a senior Republican on the Senate Appropriations Committee, said lawmakers are waiting for USDA to respond to questions about the ERP formula before deciding what steps to take. “The intention was that the USDA implement the ERP the same way they did” previously, he told Agri-Pulse

Newsmakers will be available today at Agri-Pulse.com. 

Senate panel takes aim at ultraprocessed foods, marketing

A Senate hearing Thursday put a focus on ultraprocessed foods as a possible cause behind the epidemics of Type 2 diabetes and obesity. 

Ashley Gearhardt, a University of Michigan professor of psychology, told the Senate Health, Education, Labor and Pensions Committee that an analysis of 400,000 people found that every 10% increase in ultraprocessed food intake is associated with a 12% increase in Type 2 diabetes. 

She also said there are strong parallels between ultraprocessed foods and addictive substances such as tobacco. An estimated 14% of adults and 12% of children meet the criteria for an addictive disorder based on their intake of ultra processed foods.

          Cut through the clutter! We deliver the news you need to stay informed about farm, food and rural issues. Sign up for a FREE month of Agri-Pulse here

Lindsey Smith Taillie, an associate professor of nutrition at the University of North Carolina, said many food labeling designs suggested by FDA on front-of-label packaging are still confusing to consumers.

“FDA needs to work closely with scientists to develop evidence-based labels that are easy to understand and clearly signals to consumers when products are unhealthy,” Taillie said.

APHIS extends comment period on biotech regulatory exemption plan

USDA’s Animal and Plant Health Inspection Service is reopening the comment period on a Nov. 14 proposal to add five regulatory exemptions for plants with modifications that could be achieved through conventional breeding. 

The comment period was due to close today. APHIS said it’s reopening it for 21 days.

Biotech plant developers were generally happy with the proposal, but also took note of its complexity.

FDA issues warning letters on misbranded antimicrobial animal drugs

FDA has issued nine warning letters to manufacturers of antimicrobial animal drugs that are important in human medicine and have not been reviewed under FDA’s regulatory process. 

The products in question “are marketed and labeled for minor species such as aquarium fish and pet birds,” FDA says. Companies receiving the letters include Chewy, California Veterinary Supply, Midland Veterinary Services and Kraft Drug among others.

Tracey Forfa, director of FDA’s Center for Veterinary Medicine, says the unapproved drugs pose a two-fold risk to public health: "First, these products haven't been through the FDA drug review process, and we don't know whether they're safe or effective, or even contain what the label states. Second, inappropriate use of medically important antimicrobials contributes to the development of antimicrobial resistance, which affects both human and animal health.”

New guidance released on outdoor uses of pesticides

EPA has released its final guidance for pesticide registrants on the types of analyses they need to conduct to comply with the Endangered Species Act.

The agency says the information in the guidance “is largely the same as that contained in the PRIA 5 guidance for new active ingredients and registration review. The reason is that even though a new active ingredient application and a new outdoor use application are different actions, the underlying ESA analyses are similar.”

He said it. “This is a really irritating conversation, because the problem is with Congress.” – Ag Secretary Tom Vilsack, when asked on Agri-Pulse Newsmakers about complaints from lawmakers about the formula USDA used for pro-rating ad hoc disaster assistance for 2022.