House Republicans are pushing forward with a fiscal 2024 spending bill that would cut funding for USDA and the Food and Drug Administration.
In a series of votes early today, the House turned back a series of amendments pushed by hard-line GOP conservatives that would have de-funded the Food for Peace food-aid program and further slashed budgets for several other USDA programs as well as the Commodity Futures Trading Commission.
The House also debated SNAP work requirements, but lawmakers didn’t have to go on record on the issue. An amendment that would block states from getting waivers from the work rules was adopted by voice vote; neither Democrats nor Republicans requested a recorded vote.
That amendment – and the bill itself – are dead on arrival in the Senate. But the SNAP issue could re-surface in the upcoming farm bill debate.
For more on the spending debate, and on the potential impact of a government shutdown, don’t miss our weekly Agri-Pulse newsletter.
Blumenauer unveils bill to cap crop insurance subsidies
Rep. Earl Blumenauer, D-Ore, introduced legislation Tuesday to cap crop insurance premium subsidies at $125,000 per recipient annually and do away with them altogether for farmers that earn more than $250,000 per year. The bill would also require that subsidy recipients actually work on farms, eliminating payments to investors who don’t actually produce crops.
“By establishing modest payment limits and a means test, we can save money while helping small farmers and ranchers who are short-changed or left out altogether,” Blumenauer said in a statement.
The legislation, likely targeted for inclusion in the 2023 farm bill, has support from the National Sustainable Agriculture Coalition, which says it would affect less than 1% of farms but save $35 billion over 10 years.
“The cost of the federal crop insurance program has quietly tripled in three years, to $19.3 billion in 2023,” said NSAC Policy Specialist Billy Hackett. “That additional spending has not curbed prices at the grocery store for struggling Americans, nor has it included an expansion of the safety net to underserved farmers.”
Bicameral bill codifies Organic Marketing Development Grant program
In May, USDA authorized $75 million of Commodity Credit Corporation funds to invest in the Organic Market Development Grant program. Legislation that will be introduced today in the Senate and House seeks to continue the program in the farm bill and maintain this year’s funding base of $75 million of CCC funds along with an additional $25 million for fiscal year 2024 and each year thereafter.
Lead sponsors include Sen. Tammy Baldwin, D-Wis., Sen. Angus King, I-Maine, Rep. Chellie Pingree, D-Maine, and Reps. Annie Kuster, D-N.H.
“As more farmers consider making the transition from conventional to organic farming, we must strengthen organic processing and storage and enhance market opportunities,” Pingree said in a statement provided to Agri-Pulse.
USDA trade mission’s second day heavy on business outreach
USDA Trade Undersecretary Alexis Taylor takes part in a cooking demonstration at the Espacio Food Service trade show in Santiago, ChileParticipants in USDA’s trade mission in Santiago, Chile, spent their Tuesday at the Espacio Food Service trade show, giving companies and commodity groups a chance to interact with potential Chilean customers.
The outreach happened in two formats: through the USA Pavilion at the trade show, which features a wide range of companies promoting American foods and even a spot where USDA Trade Undersecretary Alexis Taylor took part in a cooking demonstration in the afternoon. U.S. Ambassador to Chile Bernadette Meehan also stopped by the show Tuesday and took part in a ribbon-cutting ceremony for the pavilion with Taylor.
The private-sector representatives on the trip also had their first slate of business-to-business meetings Tuesday afternoon, giving them access to USDA-vetted buyers interested in doing business with the American companies.
EPA ag adviser emphasizes ‘independent’ nature of Science Advisory Board
EPA Agricultural Adviser Rod Snyder is stressing that the agency’s Science Advisory Board, which has called into question ethanol’s contribution to reducing greenhouse gases, is an “independent” body that provides advice to Administrator Michael Regan.
Hefty loaves of bread emblazoned with the USDA logo in flour featured at the USA Pavillion at the Espacio Food Service trade show in Santiago, ChileAt Agri-Pulse’s Ag Outlook Forum Monday, Snyder said EPA welcomes the SAB’s advice but declined to go much more beyond that.
“Everyone agrees that we need to do a better job of valuing the greenhouse gas benefits of various feedstocks,” he said. “We’re appreciative of the SAB for raising the issue.”
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He made a point, however, of noting that the SAB took the issue up itself and also touted EPA’s “set” rule, which he said includes “the largest renewable volume obligations in the history of the program.”
Last week, the Science Advisory Board agreed to “soften” language in a draft commentary before sending it on to Regan. The commentary, developed by a workgroup of the board, says “according to the best available science, it appears there is a reasonable chance there are minimal or no climate benefits from substituting corn ethanol for gasoline or diesel.” The biofuels industry had called for the commentary to simply be withdrawn.
Study: SNAP fraud costs agencies $3.85 for every $1 of lost benefits
Supplemental Nutrition Assistance Program fraud comes at a high cost to state agencies who implement the nutrition program. According to a recent release highlighting new research from LexisNexis Risk Solutions, every $1 value of lost benefits through fraud costs SNAP agencies $3.85 based on additional costs related to labor and administrative activities. This is up from $3.72 in 2022.
The release also states identity-related fraud is a leading contributor to SNAP agency fraud losses and is present in 31% of reported cases. In addition to identity theft, 25% of fraud is from account takeovers, 24% from eligibility fraud and 20% from trafficking of benefits.
“This alarming report shows that welfare fraud is real, and it impacts not only households in need, but also the taxpayers footing the bill for these programs,” said Ben Goldey, spokesperson for House Agriculture Committee Chairman Glenn Thompson, R-Pa. “Chairman Thompson has spent the last three years emphasizing his principle of integrity with respect to our nutrition programs, improving transparency and restoring accountability to the taxpayers while serving needy Americans more efficiently and effectively.”
Philip Brasher, Spencer Chase, Steve Davies and Jacqui Fatka contributed to this report. Questions, comments, tips? Email bill@agri-pulse.com
