Criticism of a proposal from federal bank regulators highlighted a hearing on reauthorization of the Commodity Futures Trading Commission in the House Agriculture Committee Thursday.
At issue is a plan by banking agencies including the Federal Deposit Insurance Corporation known as the Basel III endgame proposal. It would increase capital requirements for derivatives clearing services that banks offer to their clients.
Oklahoma Republican Frank Lucas said the proposed changes would reduce access to derivative products for end-users and lead to further concentration of futures commission merchants.
Lucas pushed for a re-proposal and a roundtable put on by the CFTC with bank regulators. Tom Sexton, president and CEO of the National Futures Association, agreed with the suggestion. “This is extremely important to farmers and ranchers and end-users and hedgers because of the consolidation that may occur among firms if the capital rules are put in place.”
Dems worried about farm bill prospects
The House voted for the final time Thursday until September after punting votes on some appropriations bills.
Some Democrats, including House Agriculture Committee Ranking Member David Scott, D-Ga., are worried this extended lessens the odds of passing a farm bill this year. After speaking at a Capitol Hill panel on food access, waste, security and food as medicine, Rep. Jim McGovern, D-Mass., told Agri-Pulse it’s hard to see the farm bill advanced by the House Agriculture Committee going forward, which may necessitate an extension of the 2018 farm bill.
“I don't think we're gonna get a farm bill this year,” McGovern said to the panel. “No, it's not because Debbie Stabenow is being difficult in the Senate, although I'm glad she is. It is because it's a lousy farm bill. People do not want to support a farm bill that increases hunger in this country.”
House Ag Committee Chair Glenn Thompson, R-Pa., insists he can pass a farm bill in September. He told Agri-Pulse this week that he’s not concerned about the appropriations process delaying the package.
“I just have to have patience,” Thompson said. “I'm learning patience in this process.”
Keep in mind: The House is only scheduled to be in session for three weeks between now and mid-November.
Differing reactions to insecticide strategy from EPA
Reaction has been mixed to EPA’s draft insecticide strategy released Thursday. CropLife America and the American Soybean Association both found some positive things to say. But those groups also say EPA needs to take a closer look at how it assesses the risk to endangered species.
EPA should "conduct proper risk assessments to ensure farmers are not being asked to adopt costly restrictions that are unnecessary to protect listed species, and we are not confident that is happening under this proposal,” said Alan Meadows, an American Soybean Association director and soybean farmer from Tennessee.
CLA CEO Alexandra Dunn echoed Meadows, saying her group "will continue to advocate for reforms to the risk assessment and other aspects of the process to make ESA review work for all stakeholders.”
Lori Ann Burd, environmental health director at the Center for Biological Diversity, which has used litigation to force the agency to address the risk of pesticides to endangered species, said EPA should not be deterred by “Big Ag” in adopting restrictions on chemical use.
FDA issues warning for new ground cinnamon product
FDA is advising consumers to throw away or stop using a new ground cinnamon product after the agency determined it contains elevated levels of lead. The agency has recommended the distributor voluntarily recall the item.
On Thursday, the agency issued a public health alert for El Servidor ground cinnamon products after testing by the New York State Department of Agriculture and Markets found elevated levels of lead that may be unsafe. Mannan Supermarket Inc. is listed as the retailer.
FDA says the lead concentration found was 20 parts per million (ppm), which is significantly less than the levels found in WanaBana cinnamon apple puree and applesauce products recalled in the fall of 2023. Those levels were between 2,270 and 5,110 ppm.
Following the cinnamon applesauce product recalls in 2023, FDA led a targeted survey of ground cinnamon products from discount retail stores to analyze for lead and chromium.
Farmer investment helps expand port in Washington state
An investment from the United Soybean Board will help double the export capability of Washington’s Port of Grays Harbor from 3 million to 6 million metric tons of soybean meal.
USB is putting $400,000 toward the costs of the Port of Grays Harbor’s Terminal 4 Expansion and Redevelopment Project. A check from USB will be presented at the port on July 30, where soybean farmers from across the nation will speak on increasing soybean exports.
In addition to the money from USB, funding by the Soy Transportation Coalition, Iowa Soybean Association, Kansas Soybean Commission, Nebraska Soybean Board, North Dakota Soybean Council and South Dakota Soybean Research and Promotion Council will bring the total farmer investment in the port to $1.3 million.
Rebekah Alvey and Chloe Lovejoy contributed to today’s Daybreak
