Some former top economists at USDA say it’s time for Congress to reimpose restrictions on the department’s use of the Commodity Credit Corporation, a revolving account that gives USDA broad leeway to support farm income.
“I think there should be some controls on it,” Joe Glauber, who was chief economist at USDA from 2008 to 2014, said during USDA’s annual Agricultural Outlook Forum, on Thursday. He noted that use of the CCC has grown sharply under the Trump and Biden administrations since lawmakers lifted restrictions that were imposed during the Obama administration. “Congress should be involved with this,” Glauber said.
Reagan administration official Bob Thompson said, “It’s overdue; the CCC is simply a license to steal. You never could create it today if you wanted to.”
Dan Sumner, a veteran of the George H.W. Bush administration, said putting restrictions on the CCC “makes all the sense in the world.”
But, but, but: Rob Johansson, who was USDA’s chief economist when the Trump administration used the CCC during the trade war with China, offered a note of caution. “Ultimately, I think Congress will do what it deems appropriate,” he said. “I wouldn’t describe it so much as a blank check, but it did allow the department to respond quickly to a number of unforeseen events that are outside the purview of what the farm bill normally is.”
Keep in mind: Ag Secretary Tom Vilsack is fighting efforts of congressional Republicans to restrict his CCC spending authority, pointing to many of the same reasons Johansson offered.
Vilsack calls House hearing ‘wasted opportunity’
Speaking of Vilsack and the CCC, he told reporters at the Ag Outlook Forum that he wishes he had been asked about the account during this week’s House Ag Committee hearing.
“I think that these hearings are a wasted opportunity,” Vilsack said. “It is unfortunate that there weren’t questions to explore,” such as “how could we use the (CCC) in a way that could potentially open up the revenues necessary to do a lot of good things?”
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He was referring to his suggestion of using the CCC to supplement the farm bill commodity programs. Vilsack has said using the CCC for farm payments could compensate for the lack of funding for writing a new farm bill. But he told reporters after the hearing Wednesday that lawmakers have expressed no interest in the idea.
Keep in mind: Vilsack does have congressional support for using the CCC to supplement farm bill funding for trade promotion programs.
USDA economist: U.S. farmers need to build domestic markets
USDA chief economist Seth Meyer says farmers need to build domestic markets for their crops, because U.S. exports are facing increased competition from South America and slowing growth in Chinese demand.
“You’ve got to look for some of the traditional kinds of demand that you've seen in the past and then diversify,” Meyer says on this week’s Agri-Pulse Newsmakers. “There are opportunities in the world, but we're going to have to compete for them.”
Take note: USDA is forecasting lower prices for most major crops this year, even as input costs remain elevated.
This week’s Newsmakers will be available today at Agri-Pulse.com.
EPA slows herbicide strategy release
EPA is delaying the release of its final herbicide strategy for three months to Aug. 30, to the relief of growers, applicators and herbicide registrants.
The extenson has been approved by the court overseeing the litigation that resulted in a settlement that includes deadlines for that and other pesticide strategies. Parties to the litigation, including Center for Biological Diversity and CropLife America, agreed to the delay.
In an email to stakeholders, an EPA pesticide official says the agency asked for the extension to have more time to consider public comments as well as “input [it] continues to receive about implementing [Endangered Species Act] mitigation measures, particularly on ensuring that measures are practical and effective.”
Josh Gackle, president of the American Soybean Association, said his and other groups “have significant concerns with the herbicide strategy as proposed,” including its potential to “impose enormous costs on farmers with few options to implement it, all without clear indication it is necessary to protect species.”
Sanders pushes FDA on food labeling
Sen. Bernie Sanders, who chairs the Senate committee that oversees FDA, says he’s concerned that the agency’s front-of-pack labeling requirements won’t be as tough as he thinks they should be.
“I am encouraged that the FDA has begun the process of issuing a proposed front-of-package label rule that would better inform consumers about the health impacts of their products high in added sugars, sodium, and saturated fats. However, from what I have seen thus far, these efforts do not go nearly far enough,” Sanders, the chairman of the Health, Education, Labor and Pensions Committee, says in a letter to the agency.
He goes on, “In my view, we need strong front-of-package labels so that all consumers, especially children, can understand which products are harmful to their health.” He notes that Mexico’s front-of-package label includes a stop sign on foods that should be avoided.
He said it. “You're likely to see some sales on that in the next couple of months. So, spoiler alert.” – supermarket industry official Andy Harig on the current glut of bacon. He is vice president of tax, trade, sustainability and policy development for FMI-The Food Industry Association, which represents major grocery chains.
Steve Davies, Noah Wicks and Spencer Chase contributed to this report.
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