Republicans on the House Agriculture Committee are promising that row crop producers will see a “meaningful” boost in reference prices in their new farm bill.
House Ag Committee Chairman Glenn “GT” Thompson, R-Pa., confirmed to Agri-Pulse Wednesday there will be different increases in statutory reference prices depending on the commodity.
Rep. Austin Scott, R-Ga., told Agri-Pulse’s Noah Wicks the boost “will be enough that it will be meaningful. It will help the farmers. …. Our goal is to push the reference prices as high as we can to where it makes for a difference the American farmer in the case of a commodity collapse, and at the same time we’re not going to do anything that guarantees anybody a profit, because that’s not good for production agriculture.”
Rep. Dusty Johnson, R-S.D., echoed that sentiment. “We need a dramatic increase in reference prices. I know that Chairman Thompson and the rest of the committee understands that, and I have every expectation that we’re going to get there.”
Keep in mind: The draft Senate bill Ag Committee Chairwoman Debbie Stabenow, D-Mich., outlined in a section-by-section summary last week would increase Price Loss Coverage reference prices for cotton, rice and peanuts by 5%.
The reference price escalator, which raises reference prices following periods of high commodity prices, would be "updated" to reflect recent price trends. PLC triggers payments for years when the average market price for a commodity is below the reference price.
Cancelled House votes delay Stabenow meeting
Stabenow was supposed to meet with House Ag Democrats this morning to talk about her draft. However, the meeting was postponed after the House cancelled votes planned for today.
The House Ag Democrats met privately Wednesday afternoon to discuss the bill. “We don’t have text yet. … We’re talking about what some of our priorities are,” said Rep. Jim McGovern, D-Mass.
“Until you see the text and know what you’re dealing with, that’s where the rubber meets the road,” said Rep. Don Davis, D-N.C.
Elanco projects Bovaer approval this month
Elanco Animal Health says it plans to start selling the methane-reducing feed additive, Bovaer, this year following approval by the FDA.
On an earnings call, CEO Jeff Simmons said the product, which Elanco is licensing from the Dutch company, Royal DSM, is now in the U.S. and ready for labeling. “It’s bagged, ready to go,” Simmons said.
FDA’s decision to clear the product for commercial use is expected before the end of the month, the company said. Full approval of two other products also is expected in the coming months, which should contribute to “an expected $600 million to $700 million of revenue from new product innovations in 2025,” Simmons said.
“We appreciate the FDA's commitment to maintaining high standards for risk and science-based review, while balancing the need to quickly bring solutions to the market,” Simmons said. “The regulatory process for Bovaer underscores the need for the FDA's innovation agenda to modernize our regulatory process.”
In February, the agency withdrew its policy that treated feed ingredients as animal drugs, a move applauded by the dairy industry in part because of the eight-year process it has taken to review Bovaer.
On those earnings: The company reported first-quarter revenue of $1.2 billion, down about 4% from a year ago. Net income also fell, from $103 million to $32 million. Cattle revenue was steady, but swine and aquaculture revenue fell. Only poultry delivered an increase, from $183 million to $197 million.
Industry, consumer groups urge Congress to address state food safety funding
A diverse slate of consumer and industry groups have joined forces to push Congress to include a line item in FDA’s FY25 appropriation to ensure stable funding for state and local food safety programs.
In a letter to House and Senate appropriators, over 21 groups highlighted the budgetary uncertainty these programs face despite their large role in the national food safety system.
States conduct a significant portion of inspections reported as completed by the FDA or through agency programs, often at a lower cost. However, these programs have historically lacked budgetary certainty or security, which impacts operations like hiring and training. Additionally, FDA recently warned that states are unlikely to receive about $34 million in carryover funds that they’ve grown accustomed to.
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“This will decimate the ability of state and local programs to continue this level of partnership and greatly reduce the activity of food protection provided by these front-line programs,” the groups say in the letter.
Signatories include representatives from Association of Food and Drug Officials, Consumer Brands Association, Consumer Reports, Consumer Federation of America, International Dairy Foods Association, National Association of State Departments and Agriculture, Western Growers, Pet Food Institute and more.
OSHA restructures to target Southeast states with food industry, chemical jobs
The Occupational Safety and Health Administration is restructuring its regional operations to better address work hazards faced by “the growing worker population” in seven southern states.
OSHA singled out “the hazardous work done by people employed in food processing, construction, heavy manufacturing and chemical processing.”
A new Birmingham, Alabama, regional office will oversee operations in that state, as well as in Arkansas, Kentucky, Louisiana, Mississippi, Tennessee, and the Florida panhandle.
On the new regional map, Arkansas and Louisiana move from the Dallas region, while Mississippi, Alabama, Kentucky and Tennessee, along with the Florida panhandle, move from the Atlanta region.
U.S., Philippines talk trade
U.S. and Philippines trade officials held a series of “constructive” meetings Wednesday on agriculture and labor issues under the two countries’ Trade and Investment Framework Agreement, the Office of the U.S. Trade Representative says.
The Agricultural Working Group “discussed ways to further strengthen agricultural trade between the two countries as well as the importance of biotechnology and innovation in meeting food security and sustainability goals,” USTR says.
USTR recently put out a report saying U.S. agricultural exports “are significantly inhibited by the high in-quota tariffs for agricultural products under the Philippines’ tariff-rate quota program,” which has subjected sugar, corn, coffee, potatoes, pork and poultry products to in-quota tariffs ranging from 30 to 50%.
The talks are in preparation for a meeting on the framework agreement in July.
He said it. "I thought that was a resounding vote that happened here. Enough of the silliness. I mean, if you're going to be in Congress, let's be serious about getting things done." – House Ag Chairman Glenn Thompson after the House overwhelmingly rejected Georgia Rep. Marjorie Taylor Greene’s motion to oust House Speaker Mike Johnson, R-La.
Rebekah Alvey, Steve Davies and Noah Wicks contributed to this report.
Questions, comments, tips? Email philip@agri-pulse.com.
