House Democrats are plotting their next steps on the farm bill after meeting Thursday to debate a brief summary of the latest GOP proposal for the legislation.
Rep. Chellie Pingree, D-Maine, said Democrats had nothing more to go on than the document, which is mostly an outline of how Republicans would address some Democratic priorities.
Another House Ag member, Rep. Jonathan Jackson, D-Ill., said Democrats were working on a counter-offer but stressed that they will “hold a firm line on the nutrition programs.” Democrats have been consistently opposed to proposed GOP restrictions on how USDA goes about updating SNAP benefit levels.
Rep. Jim McGovern, D-Mass., said, “I didn’t come to Congress to increase hunger. I came to Congress to end hunger.”
Take note: The summary Democrats were given refers at one point to “Democrat priorities,” not "Democratic," the Democrats’ preferred adjective.
Take note: House Ag has a new Republican member of the Rules Committee, Rep. Austin Scott, R-Ga. Rules works with leadership to decide which amendments are debated on the floor. McGovern is the ranking Democrat on Rules.
Rising interest rates could hit farmers hard, experts say
The rapid increase in interest rates should be a major concern for borrowers who will increasingly face higher rates for their operating loans, farm credit experts said at a conference in Kansas City Thursday put on by the Commodity Futures Trading Commission.
“Operating credit is going to be more expensive, adopting technology and the capital costs that come with that are going to become more expensive, with increased interest rates,” said Scott Donnelly, a senior credit risk specialist at Farm Credit Administration.
The “most prominent risk” going forward likely will be associated with borrowers who have high levels of debt and are either taking on more debt or or experiencing repricing of large land notes “at interest rates that are much higher than then they were originated at,” said Kansas City Fed economist Ty Kreitman.
“And in this era of lower commodity prices, thinner profits, I think it could be difficult for some operations to service high levels of debt at current interest rates.”
The Federal Funds Effective Rate, the target interest rate used by commercial banks to borrow and lend extra reserves to one another overnight, has gone from 0.8% in February 2022 to 5.33% currently.
Agencies taking an ‘all of government’ approach to avian flu outbreak
FDA Commissioner Robert Califf appeared before the House Oversight Committee Thursday and was quizzed on a variety of issues, including agency efforts to address the recent spread of avian flu in cattle.
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“This is really an all-of-government effort,” Califf said. “We’re starting with a lot of uncertainty and working our way through it.”
The latest outbreak has presented a relatively new challenge because of its spread to cattle in multiple states, Califf said. There are multiple calls daily between USDA, FDA, CDC and other stakeholders to discuss the issue, with frequent communications going to the public, he continued.
HPAI hits South Dakota dairy herd
South Dakota has become the eighth state to report a detection of highly pathogenic avian influenza in dairy cows.
“South Dakota Dairy Producers encourage all dairy producers to closely monitor their herd and contact their herd veterinarian immediately if cattle appear symptomatic,” says Marv Post, chairman of the group, in a news release from the South Dakota Animal Industry Board and the state's Department of Agriculture and Natural Resources.
“USDA continues to emphasize that pasteurization kills the virus and that milk and dairy products are safe to consume.”
EPA: Ag emissions down in 2022
Carbon emissions from U.S. agriculture fell in 2022 to the lowest level since 2012, the Environmental Protection Agency says in its latest annual report on U.S. greenhouse gas emissions. The ag sector produced 593 million metric tons of CO2 equivalent in 2022, compared to 605 million in 2021 and 575 million in 2012.
Bottom line: Ag emissions accounted for 9.4% of all U.S. carbon emissions in 2022.
Potato-state senators press concerns about Japan
A bipartisan group of senators used the Japanese prime minister’s visit to Washington to highlight U.S. potato growers' concerns about access to the Japanese market. Fumio Kishida addressed a joint session of Congress on Thursday.
In a letter sent Thursday, the 10 senators say “substantive technical discussions” on market access for potatoes grown for human consumption are being delayed by Japan’s Ministry of Agriculture, Farming and Fisheries.
One of the holdups, they say, is that the ministry last fall refused to provide a pest risk assessment to USDA “or any timetable for delivering one,” but instead “indicated they would review individual pests over the next year.”
Achieving Japanese market access, the senators say, will create an additional $150 million annually in exports. About 20% of U.S. potatoes are now exported.
FWS rule aims for more species protection through conservation agreements
The Fish and Wildlife Service has released a new rule designed to encourage more landowners to seek permits allowing “take” of listed or at-risk species so long as they undertake measures to conserve them.
The rule says little specifically about agriculture, but in response to one comment, the service said, “In general, take associated with working agricultural lands that are managed in a sustainable fashion to improve conditions for listed and at-risk species may be appropriate for permitting through a conservation agreement, depending upon the proposed covered activities.”
He said it. “If they’re serious about trying to get Democrats on this farm bill, then stop screwing poor people.” – House Ag Committee Democrat Jim McGovern, D-Mass., reacting to the GOP’s farm bill proposal for SNAP.
Noah Wicks, Steve Davies and Rebekah Alvey contributed to this report.
