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Some major farm groups aren’t satisfied with the Biden administration’s promise to revise its “waters of the U.S.” rule by September. Those groups are trying to force the administration to withdraw the rule and write a new one.
Business groups including the National Cattlemen’s Beef Association and American Farm Bureau Federation have told a district court judge in Texas that the Supreme Court’s recent Sackett decision "directly invalidates major portions of the rule" issued by the EPA and Army Corps of Engineers in January.
Keep in mind: In March, U.S. District Judge Jeffrey Vincent Brown enjoined implementation of the Biden administration rule in Texas and Idaho, but declined to issue a nationwide injunction. Nevertheless, the rule is now stayed in 27 states.
Earlier this week, EPA and the Corps told a judge in North Dakota who has already enjoined the rule in 24 states that they planned to amend their “waters of the U.S.” rule but not a wholesale rewrite.
Ag policy veteran: Farm bill asks are ‘modest’
A battle-scarred veteran of farm bill drafting says the requests ag groups are making this year are relatively reasonable given the overall size of the legislation.
“These are pretty modest programs with pretty modest requests. … I just don't see that being insurmountable,” Chuck Conner, now the president and CEO of the National Council of Farmer Cooperatives, says in an interview for Agri-PulseNewsmakers. Conner was a top adviser to then-President George W. Bush during development of the 2002 farm bill and deputy ag secretary when the 2008 farm bill was crafted.
Conner acknowledges that Senate Minority Leader Mitch McConnell, R-Ky., warned this week against expecting much new funding for the legislation. “That's something we pretty much already knew,” Conner says. “But … having that underscored by an important farm bill leader, I think, should be instructive to us.”
This week’s Newsmakers will be available today at Agri-Pulse.com.
Cuba rice purchase renews hope for US producers
A rare commercial shipment of U.S. rice arrived earlier this month in Cuba, renewing hopes by the USA Rice Federation that trade between the two countries might pick up again despite U.S. government restrictions.
USA Rice isn’t saying how much was sent to Cuba except to note that it was relatively small. Still, the group stressed that the last “meaningful commercial sale” to Cuban buyers was in 2008.
“We understand that the buyers in Cuba really enjoyed the rice we shipped, and we hope that the demand continues to grow,” said Bobby Hanks, CEO of Supreme Rice Mill – the company that sold the rice to Cuba. “If we’re successful in demonstrating demand in this market right in our backyard, maybe it will help Congress realize that it’s time for legislative changes that make doing business there easier.”
US convinces Colombia to drop poultry ban
USDA says it acted quickly when Colombia unexpectedly banned U.S. poultry earlier this month out of concerns for avian influenza. Colombia’s ag ministry instructed its ports to reject entry to any U.S. poultry on June 1.
USDA says it joined forces with the Office of the U.S. Trade Representative “to leverage our free trade agreement to pressure Colombian officials to lift the ban. In parallel, USDA staff in Colombia directed U.S. companies, Colombian importers, local trade associations, and State Department Economic officials to communicate the impact of the ban on bilateral relations with Colombia’s Ministries of Agriculture and Trade.”
By June 8, Colombia agreed to drop the ban, says USDA. Though it wasn’t in place long, the ban still managed to delay delivery of about $1.1 million worth of U.S. poultry.
USDA economists assess market concentration
USDA’s Economic Research Service is out with a new report that pulls together data on market concentration across the agriculture and food sectors.
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Key findings: Two seed companies now account for 72 percent of planted corn acres and 66 percent of planted soybean acres in the United States. The largest meatpackers account for 85% of cattle slaughter and 67% of hog slaughter. Five to six store chains account for most grocery sales in major metro areas.
Advancements in biotechnology have had a major impact on the seed sector, the 57-page report notes. While seed prices rose overall by 270% between 1990 and 2020, the seed costs for crops grown primarily with genetically modified traits increased by 463%. “The increases in seed prices reflected to a large degree the higher productivity of improved crop varieties and provided a return on investments in R&D by seed companies,” the report says.
Keep in mind: The report cautions that while high concentration can raise prices for consumers and lower prices for producers, high concentration often results “from factors like innovations or the realization of scale economies that improve productivity and reduce costs and prices.”
Take note: USDA continues to fund expansions in meat and poultry processing. The department on Thursday announced 15 new awards totaling $115 million in 17 states. The largest of the grants, for $25 million, will pay for equipping the new Cattlemen's Heritage Beef Co. southeast of Council Bluffs, Iowa.
He said it. "Supporting our small meat and poultry producers and processors is key to increasing market competition, lowering costs for consumers, and improving resiliency in our domestic supply chain.” – The top Democrat on the House Ag Committee, Georgia Rep. David Scott, on the USDA funding announcement.
Steve Davies and Bill Tomson contributed to this report.
