Lawmakers continue to struggle with what to do about commodity programs in a new farm bill, including how to pay for increases in reference prices. One idea is to require farmers to update their base acreage to reflect current plantings.
Doing so could save money that could be used to raise reference prices.
But an analysis obtained by Agri-Pulse shows a mandatory base update would create some major political challenges. Thirty-four states would collectively lose a net $3 billion over 10 years, according to the analysis conducted by the Senate Ag Committee’s GOP staff. The other states would gain $1.1 billion, leaving a net savings of $1.9 billion that could be reallocated.
For more on the base update analysis, read our report on the issue in this week’s Agri-Pulse newsletter.
Fischer pushing non-farm bill route for cattle markets bill
The two lead Republicans on a bill to mandate a change in the way cattle are bought and sold in the country are having a bit of a disagreement about the best way to get the bill signed into law.
Sens. Deb Fischer, R-Neb., and Chuck Grassley, R-Iowa, are the two GOP leads on the Cattle Price Discovery and Transparency Act, which would require a certain percentage of cattle sales take place on the open cash market in different regions of the country. The bill advanced through the Senate Ag Committee last year but did not gain traction on the floor, leaving many to wonder if the idea could be pursued in the farm bill.
But Grassley says Fischer has suggested to Ag Committee leadership that the measure should not be a farm bill issue, something a spokesperson confirmed to Agri-Pulse. “Strategically, the best path forward to getting Fischer’s cattle bill signed into law is as a separate legislative effort,” the spokesperson says.
Grassley’s take: Grassley told reporters Tuesday he still wants to add the legislation to the farm bill. He says he doesn’t think a rebound in cattle prices “negates the need for the legislation.”
Schumer warns of ‘dairy cliff’ if farm bill expires
Senate Majority Leader Chuck Schumer raised concerns in a speech Tuesday about reaching the “dairy cliff,” or the expiration of the Dairy Margin Coverage Program, if Congress does not succeed in passing a farm bill this year.
The Dairy Margin Coverage program, introduced in the 2018 farm bill as a replacement for the Margin Protection Program for Dairy, pays dairy producers when their production margins fall below a predetermined level. Letting the program lapse would require the federal government to purchase milk at "more than double the current market price” to stabilize prices, according to a release from Schumer’s office.
Schumer also warned that hitting the “dairy cliff” could lead to reduced access to fluid milk and increased prices for dairy products.
Pair of bills addresses farmworker concerns
Sen. Alex Padilla, D-Calif., introduced two bills to help elevate the voice of farm and food system workers. His Supporting our Farm and Food System Workforce Act would establish an office at USDA to serve as a liaison between the agency and farm workers, “providing a platform for their concerns and interests and helping develop recommendations and new initiatives for the department.”
The 2008 farm bill established a dedicated liaison for USDA and farm workers nationwide but has “lacked sufficient staff and resources to adequately address farm workers’ needs,” according to a release detailing the bills. Padilla’s Voice for Farm Workers Act would “expand the Farmworker Coordinator duties to allow for the coordinator to create recommendations for new initiatives and programs, conduct further outreach and research related to farm workers, and collaborate within the department on programmatic and policy decisions related to farmworkers.”
“Too often, lack of access to language services, outreach and USDA programs leaves them vulnerable to challenges including food and housing insecurity, lack of health care access, and inadequate job protections,” says Padilla. “These bills would equip the USDA with important tools to integrate workers’ key priorities and viewpoints, including enhancing collaboration across the department, with the federal government, and with key outside stakeholders.”
Argentine wheat again impacted by dry weather
USDA’s Foreign Agricultural Service is lowering its forecast for Argentina’s wheat production this year, but the crop will still be bigger than the drought-stricken output last year. Argentina is now expected to harvest 17 million metric tons of wheat this year. That’s down from a previous FAS forecast of 17.5 million, but substantially higher than 12 million last year, according to a new analysis out of Buenos Aires.
“Despite some recent rains that helped farmers sow wheat before the planting window closed, many fields in Cordoba and (the) northwest and southwest provinces of Buenos Aires will remain fallow over winter because of continued dryness,” FAS said.
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There are more than just weather problems. FAS says some farmers aren’t planting this season because of falling prices.
OMB guidance explains how to assess benefit of ecosystem services
Proposed guidance from the Office of Management and Budget would require federal agencies to assess the benefits of ecosystem services when conducting cost-benefit analyses.
“Failing to fully account for nature’s bounty has led to under-valuing and erosion of our nation’s natural assets,” the White House said. “When we account for our environment, we are able to harness opportunities to confront climate change, promote prosperous and resilient communities, and invest in strong infrastructure. We must measure what we value, not just value what is simple to measure.”
The guidance says it “aims to make incorporating ecosystem-service considerations easier for agencies conducting these analyses, resulting in lower analytic burdens for agencies and more sound analysis.”
The comment period on the proposed guidance ends Sept. 16.
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