A bipartisan group of senators is pushing the Treasury Department to restrict the new 45Z clean fuels tax credit to domestically sourced feedstocks. That would prevent imports of used cooking oil from qualifying for the tax subsidy.
In the past year, “used cooking oil imports from China and other countries have averaged over half a billion pounds per month,” Sen. Roger Marshall’s office said in a news release. “As a result, there has been downward pressure on the price of American soybeans, corn, and its derivatives.”
The senators say in a letter to Treasury, “If more is not done to support the production and utilization of domestic feedstocks, the U.S. will see its renewable fuels industry shift focus from domestically oriented feedstocks towards imports. Allowing U.S. tax credits to fund the importation and use of foreign feedstocks to produce biofuels would put U.S. agriculture at the back of the line, while foreign agricultural producers are subsidized by U.S. taxpayers.”
The Kansas Republican co-led the letter with Sen. Sherrod Brown, D-Ohio. Other signers were Sens. Jerry Moran, R-Kan., Eric Schmitt, R-Mo., Mike Braun, R-Ind., Todd Young, R-Ind., Dick Durbin, D-Ill., Tammy Duckworth, D-Ill., Deb Fischer, R-Neb., Pete Ricketts, R-Neb., Tammy Baldwin, D-Wis., Debbie Stabenow, D-Mich., Joni Ernst, R-Iowa, Tina Smith, D-Minn., Gary Peters, D-Mich., and Amy Klobuchar, D-Minn.
Mexican rail challenges hinder U.S. ag shipments, commodity groups warn
Twenty-six farm and commodity groups are warning federal officials that Mexican rail disruptions fueled by insufficient infrastructure are hindering the delivery of U.S. agricultural products.
In a letter, the groups urge Surface Transportation Board Chair Robert Primus, Agriculture Secretary Tom Vilsack and U.S. Trade Representative Katherine Tai to press the Mexican government for additional investments in the country’s rail network amid embargoes, congestion and service delays that are hindering rail carrier Ferromex’s delivery of agricultural products. Migrants have also added to the delays by stopping trains, the groups say.
Roughly two-thirds of $30 billion in ag products are exported to Mexico every year. In the case of grain, about two-thirds of exports move by rail, the letter says. The groups say rail capacity challenges could force Mexican importers to look to competitors like Brazil and Russia for supplies, hindering U.S. trade.
"USMCA passed Congress on an understanding that U.S. goods would be sold to Mexico and vice versa based on market forces,” the groups say. "The rail capacity constraint is challenging trade and placing Ferromex in a position of having to choose products to ration rail service, resulting in U.S. agricultural products bearing the brunt of the rationing."
ITC reopens investigation into impact of Mexican tomatoes
The International Trade Commission has reopened an antidumping investigation into Mexican tomatoes.
In a notice published in the Federal Register today, the ITC says it will conduct a review on the issue of low-priced tomatoes from south of the border. U.S. tomato producers are seeking to terminate a “suspension agreement” that has allowed tomatoes to flow into the country from Mexico.
“Whatever data the Commerce Department uses, the record is clear: Mexican tomatoes have been consistently dumped in the U.S. market over the last 30 years,” Michael Schadler, executive vice president of the Florida Tomato Exchange, said after that decision was issued. “The record is also clear that none of the suspension agreements have worked.”
Democrats celebrate aid for farmers who faced loan discrimination
USDA says 43,000 farmers and ranchers across the country will get a total of $2 billion to make up for past discrimination in farm loan programs.
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The Discrimination Financial Assistance Program was created through the Inflation Reduction Act and offers assistance to practicing or prospective farmers and ranchers who faced discrimination before January 2021.
Senate Ag Committee member Raphael Warnock of Georgia pushed USDA to act on the issue and said he was glad to see farmers will be getting relief soon. “These farmers have been waiting a long time, and they've been a part of a struggle just to maintain their livelihood,” Warnock told Agri-Pulse.
House Ag Committee ranking member David Scott, D-Ga., says in a statement the assistance delivers on commitments to “invest in equity, fight for fairness and uplift our producers who have faced discrimination.”
Read more about USDA’s announcement in our story here.
7 million pounds of ready-to-eat meat and poultry products recalled over listeria outbreak
Boar’s Head Provisions Co., Inc., has recalled about 7 million additional pounds of ready-to-eat meat and poultry products after a sample tested positive for a listeria outbreak strain.
The company previously recalled all liverwurst product and deli meat products made on the same line and on the same day as the adulterated liverwurst, according to USDA’s Food Safety and Inspection Service. This totaled about 207,500 pounds of product.
As of July 30, agencies have identified 34 sick people in 13 states, with 33 hospitalizations and two deaths associated with this strain of listeria.
The latest recall includes 71 products produced between May 10 and July 29 and distributed nationwide under the Boar’s Head and Old Country brand.
Final Word: “Yes, we want to show where our Republican Senate colleagues are. We want to show that they’re out of touch with their House Republican colleagues who are often more conservative than they are.” – Senate Majority Leader Chuck Schumer, D-N.Y., acknowledging that today’s tax bill vote is intended to put GOP senators on the record on a popular measure.
The bill passed the House overwhelmingly earlier this year, but Senate Republicans argue the issue should be left to next year, when parts of the Tax Cuts and Jobs Act expire.
