Farmers and 401(k) holders are certainly breathing a sigh of relief after President Donald Trump paused his reciprocal tariffs. But two steep tariff increases on China in the last two days will still deal a huge blow to some ag sectors.
“We run the risk of immediate impacts this growing season, along with the impacts a prolonged trade war with China will inflict on our industry,” American Soybean Association President Caleb Ragland said in a statement.
The president said in a Truth Social post Wednesday that he would hike reciprocal duties on China to 125% “effective immediately.” ASA’s director of government affairs, Virginia Houston, told Agri-Pulse she would expect the Chinese market to be “shut off” to U.S. producers under such conditions.
China was by far the largest export destination for U.S. soybeans last year, accounting for more soybean exports than the next nine export markets combined.
But, but, but: Farm groups were cautiously optimistic about the pause on some of the other reciprocal duties.
“While the pause brings some temporary certainty, questions remain about the long-term competitiveness for farmers in the global marketplace,” American Farm Bureau Federation President Zippy Duvall said in a statement.
“We encourage the administration to swiftly resolve trade disputes and to pursue strategies that will ensure America’s farmers can continue to stock the pantries of families here at home, and abroad,” he added.
House Ag leaders worry about brain drain from USDA buy-outs
The top Republican and Democrat on the House Agriculture Committee are worried USDA buy-outs will lead to a drop in productivity and institutional knowledge.
USDA employees had until Tuesday night to respond to buy-out offers through the Deferred Resignation Program 2.0. While it’s still unclear exactly how many accepted the offer, committee Chair Glenn “GT” Thompson, R-Pa., said he’s worried about institutional loss.
“I’m not a supporter of that program, I think that’s a huge mistake,” Thompson said. “If our goal here is to increase productivity and efficiency, we’re actually incentivizing losing the most experienced employees.”
House Ag ranking member Angie Craig, D-Minn., said she’s hoping to connect with USDA Secretary Brooke Rollins soon to get details on the buy-out, but told Agri-Pulse she is also concerned about brain drain.
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“What I really want to know from USDA is what are we doing to mitigate the damage of losing expertise throughout the USDA,” Craig said.
“I'm sincerely worried about whether the USDA can actually do the job at this point,” she added.
By the way: The top Democrat on the House Ag Appropriations Subcommittee, Sanford Bishop of Georgia, says the Office of Management and Budget apparently forced Rollins to cancel an appearance before the panel Wednesday.
While we’re at it: Monopoly Busters Caucus launches
Craig is a co-chair of the new Monopoly Busters Caucus, formed to fight consolidation and lower costs for producers and consumers. The caucus will “fight corporate greed and promote a pro-worker, pro-consumer, and pro-small business economic agenda,” according to a news release.
The group will focus on enforcement of antitrust laws to curb business consolidation. “At a time when the administration is launching our country headfirst into a global trade war, it’s more important than ever that we uplift small and local businesses right here at home,” Craig said.
Scoop: Senators revive measure to extend 45Z
A bipartisan Senate bill is being introduced to extend the length of the 45Z tax credit for clean fuel producers and restrict eligibility to fuels made from domestically sourced feedstocks.
Sen. Roger Marshall, R-Kan., and Agriculture Committee ranking member Amy Klobuchar, D-Minn., are cosponsoring the Farmer First Fuel Incentives Act. Reps. Tracey Mann, R-Kan., and Marcy Kaptur, D-Ohio, are leading an identical measure in the House.
In the Inflation Reduction Act, 45Z was passed as a three-year credit. The bill would extend the incentive through 2034.
Oilseed and some biofuel industry groups have raised concern that as currently written, 45Z would favor feedstocks like used cooking oil largely imported from China rather than American-made soy or corn oil. The bill addresses this by requiring that qualifying fuel comes from domestically grown feedstocks.
“The Farmer First Fuel Incentives Act is commonsense legislation that stops sending American taxpayer dollars to China, expands robust domestic markets for agriculture producers, and increases certainty for the biofuels industry,” Marshall said.
Carbaryl labels include restrictions to protect pollinators, endangered species
EPA has approved label language to protect federally listed endangered species and other wildlife from carbaryl, or Sevin. Use restrictions include buffer zones near waterways to protect aquatic habitat and limitations on applications during bloom to reduce exposure to pollinators.
“These common-sense steps by the EPA will reduce the risks this dangerous pesticide poses to endangered plants and animals and provide clarity for the industrial farming community about how to use it,” said Nathan Donley, environmental health science director at the Center for Biological Diversity.
CBD reached a court settlement with EPA requiring an assessment of the risks of carbaryl to endangered species.
Trump wins legal skirmish over independent agencies
The Supreme Court has given the Trump administration authority to remove members of independent agencies from their positions.
Chief Justice John Roberts on Wednesday granted Solicitor General D. John Sauer's request to stay lower court rulings rejecting that authority. The courts had allowed the reinstatement of National Labor Relations Board member Gwynne Wilcox and Merit Systems Protection Board member Cathy Harris.
Sauer's request, also filed Wednesday, said, "History confirms that a court may not force the president to retain the services of an executive officer whom he no longer trusts with executive power."
Take note: Harris issued an order early last month to reinstate nearly 6,000 USDA probationary employees who were fired.
Final word
"People were jumping a little bit out of line. They were getting yippy, you know? A little bit yippy. A little bit afraid.” – President Donald Trump, on why he suspended his reciprocal tariffs for 90 days.
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