Gov. Gavin Newsom’s updated budget plan for the coming fiscal year is proposing a 4.5% cut to CDFA as part of a range of actions to counter a sudden state budget shortfall. The cuts would largely come from CDFA’s special fund.
The plan would also eliminate cap-and-trade spending on climate-smart grants. That would impact programs on soil health and irrigation efficiency — though Prop. 4 climate bond money would backfill some of those spending gaps — along with energy efficiency for food processors, reducing methane emissions at dairies and upgrading to cleaner tractors. The administration would shift $1.5 billion from the fund to cover ongoing firefighting expenses and annually set aside $1 billion of the roughly $4 billion pot for high-speed rail.
Yet CDFA would gain from the proposal $6 million to respond to animal disease outbreaks like bird flu. That drew relief and applause from Assembly Ag Chair Esmeralda Soria. Her Merced-based district has lost thousands of birds at its poultry and egg farms, resulting in a “severe financial strain that makes its way to the average Californian.”
The administration is also hoping to increase spending on its sustainable pest management agenda. It is asking the Legislature for an additional $1.5 million to cover CDFA’s research and consulting costs for SPM.
Newsom wants to roll back SGMA oversight
The administration has filed a budget trailer bill that would reduce the workload for the Department of Water Resources in overseeing SGMA.
State law requires DWR to investigate the conditions of California’s groundwater basins and report its findings to the governor and Legislature every five years. The new proposal would reduce that to once a decade.
Farmers and ranchers plead case for controlling coyotes
More than 1,300 farmers and ranchers have sent letters to the Fish and Game Commission asking the agency to continue to authorize coyote takes. The commission hosted a lengthy workshop last week to gather input on potentially increasing state coyote protections to only allow for nonlethal deterrents.
Kirk Wilbur, vice president at the California Cattlemen’s Association, told the committee preventative management is necessary to protect livestock during calving season. He called for narrowly tailoring any potential regulations to specific cities that face have an increased coyote presence.
Steven Fenaroli, a policy advocate with the California Farm Bureau, added that “agriculture was never the target of this conversation.” He asked the commission to leave the decision to the landowners to make on a case-by-case basis.
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Rollins: We’re working on ag labor
Agriculture Secretary Brooke Rollins says the Trump administration is having internal discussions about what to do regarding farmworkers who are in the country illegally.
Back in April, President Donald Trump said farmers would get some kind of flexibility under his administration’s mass deportation program to keep employing undocumented immigrants. But the administration has yet to follow up publicly on the president’s remarks.
During a stop in Nebraska on Monday, Rollins said she was working on the issue with her counterparts in the Labor and Homeland Security departments. “Our teams are meeting and figuring out how to make that a reality, and what that looks like and what the time frame looks like,” she said.
By the way: Rollins also said Monday that USDA was unlikely to seek another round of staff buyouts. About 15,000 USDA employees have accepted buyouts through two rounds since Trump took office. Read our report here.
USDA grants first SNAP waiver to Nebraska
In a major victory for the “Make America Healthy Again” movement, Rollins signed off on a Nebraska pilot to prevent purchases of soft drinks and energy drinks through the Supplemental Nutrition Assistance Program.
The pilot is expected to start in January and last for two years.
Following encouragement by Health and Human Services Secretary Robert F. Kennedy Jr., states have introduced and passed bills that seek similar waivers from USDA. Some go further in the number of items that could not be bought using SNAP.
So far, seven states — including Indiana, Arkansas, Texas, Colorado, Iowa and Kansas — have submitted similar SNAP waiver requests.
UK and EU will work to align food standards
The United Kingdom and the European Union will work to create a common sanitary and phytosanitary zone as part of a deal to reset the relationship more than five years after Brexit.
A forthcoming SPS agreement should eliminate certificates or border checks on “the vast majority” of animal and plant trade, according to a “common understanding” document published Monday. The document adds that the scope of the future arrangement will cover pesticide and live animal regulations, as well as food production and distribution.
Further, the U.K. also agreed to “dynamic alignment,” meaning future EU standards will also apply in the U.K., except for a “short list of limited exceptions.”
Why it matters: The U.S. recently unveiled an outline for its own trade pact with the U.K., in which the U.K. agreed to allow some U.S. beef into its market and to work together on further market access for ag.
But U.S. beef exports still have to meet U.K. standards. So, a common U.K.-EU SPS area will likely shape the future regulatory landscape U.S. beef exporters face.
Corteva scientist to discuss AI at House hearing
Corteva Agriscience is employing AI to identify molecules that can be used in crop protection, a company scientist will tell a House subcommittee today.
Brian Lutz, vice president of agricultural solutions, will present testimony to the environment subcommittee of the House Science, Space & Technology Committee. In it, he says the company recently used AI “to model how 10,000 different molecules might be used in crop protection, all within a matter of weeks.”
The model was able to identify “dozens of new potential crop protection molecules that our chemists could not have found otherwise. We are currently testing these now. This is the new face of ag innovation.”
Lutz also will say that with AI, “We can begin to predict the incredible diversity of biomolecules and metabolites that are produced by microbes and other organisms, with the goal of unlocking the secrets within plant biology to develop the next generation of safe, highly targeted, nature-inspired products.”
Final word
“No. 3, ensuring working farmland is used to farm, not to put solar panels from China on top of.” – Ag Secretary Brooke Rollins, outlining a 10-point Small Farms Policy Agenda in Nebraska on Monday. The agenda also calls for streamlining application processes for farmers and ensuring reliable access to credit.

