The Biden administration is putting the finishing touches on its regulatory agenda ahead of President-elect Donald Trump’s inauguration. USDA is finalizing a rule barring poultry integrators from paying producers reduced rates in tournament ranking systems. The rule, being announced today, still allows for competitive bonuses.
USDA also is withdrawing a rule further defining practices that can be deemed “unfair” under the Packers and Stockyards Act, citing the “complexity and length of time needed to finalize that regulation."
“Knowing that we didn’t have enough time to finish the process, we thought it was the wisest course to withdraw the rule,” Ag Secretary Tom Vilsack told reporters.
By the way: The National Chicken Council argued earlier that restrictions on the tournament system could harm the industry’s best farmers while raising costs for consumers and stifling innovation.
To learn more, read our story at www.Agri-Pulse.com.
Warren presses Bessent on policy positions ahead of hearing
Senate Finance Committee member Elizabeth Warren, D-Mass., is demanding answers from Trump’s selection for treasury secretary, Scott Bessent, about how he plans to cut the U.S. budget deficit, preserve the independence of U.S. agencies and fund Trump’s tax cuts and tariff plans.
Bessent, an investor and hedge fund manager, hasn’t had a high-profile career in public office, Warren said in a 31-page letter with 180 questions. So, Warren is requesting clarification on Bessent’s policy positions before the panel votes on his confirmation. A hearing is scheduled Thursday.
The Massachusetts senator said the answers “will be critical to assessing how you plan to lead the Treasury Department.”
Rice producers: Dominican Republic is violating trade commitments
U.S. rice producers are accusing the Dominican Republic of violating its commitments under a regional free trade agreement.
President Luis Abinader signed a decree last month to protect the domestic rice industry. Its measures establish a tariff-rate quota for U.S. rice imports that will allow 23,300 metric tons to enter each year duty free. Any additional imports will face a 99% tariff.
Under the Dominican Republic-Central America Free Trade Agreement, the country was expected to fully open its market to U.S. rice on Jan. 1 after a 17-year tariff and quota phase-out period.
“It is frustrating to see yet another country slide back on its commitments and negatively impact U.S. rice exporters,” said Bobby Hanks, chair of the USA Rice international trade policy committee.
The Dominican Republic is self-sufficient in rice but faces high production costs. UN Comtrade data show the U.S. exported more than $32 million of rice in 2023, when it had a quota of 18,080 metric tons.
Environmental research group pushes Senate to oppose Kennedy
An environmental research group is urging the Senate to oppose Robert F. Kennedy Jr.’s confirmation as secretary of the Department of Health and Human Services, over concerns he could “wreak havoc” on U.S. agriculture.
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The Breakthrough Institute will send a letter today to Senate leaders John Thune, R-S.D., and Chuck Schumer, D-N.Y., urging them to oppose Kennedy’s nomination. Specifically, the group takes issue with Kennedy’s critical stance on pesticides and genetically modified crops.
At the helm of HHS, Kennedy would have little authority to regulate pesticides. Still, the group writes that he could more strictly enforce residue limits, impose testing requirements or pressure EPA to deny new pesticide registrations.
Additionally, the group is concerned Kennedy could prioritize initiatives like expanded safety assessments that slow biotechnology innovation or curb the use of existing genetically modified crops and livestock.
“Given his stated vision for the future of food and farming, placing Mr. Kennedy at the head of HHS could wreak havoc on U.S. agriculture,” the group says in a letter. “By hamstringing technological advances and crucial inputs key to the maintenance of U.S. agricultural abundance and global competitiveness, he will make life harder for agricultural producers, decrease food production and increase food prices for American consumers.”
State of play: The Senate will begin confirmation hearings this week for several of incoming President Donald Trump’s cabinet nominees. Kennedy’s hearing has not been set yet, but the nominee spent last week meeting with both Republican and Democratic senators.
USDA limits imports from Germany over foot-and-mouth fears
USDA has restricted imports of livestock and processed and unprocessed animal products from Germany following a detection of foot-and-mouth disease in the country. The case – Germany’s first in almost four decades – was detected in a water buffalo herd on the outskirts of Berlin.
Accordingly, USDA’s Animal and Plant Health Inspection Service has barred imports of German livestock like cattle, sheep, swine and goats. Horses will also be subject to additional procedures, including a pre- and post-import decontamination.
Processed pork and ruminant products arriving via cargo will need an APHIS Veterinary Services import permit or a certification confirming the product was treated in line with APHIS requirements. Shipments of unprocessed products are banned “with limited exceptions,” APHIS said in a statement.
Final word:
In contrast to some of the disappointment coming from the biofuel industry, Patrick Gruber, CEO of Gevo, seemed optimistic about the Treasury Department’s proposed guidance on the 45Z tax credit for clean fuel producers.
In an interview with Agri-Pulse, Gruber said the proposal successfully balanced a lot of the concerns from different stakeholders and set up a policy that is likely to endure under a Republican administration and Congress. Some of the remaining details are still to come as the industry this week awaits USDA proposed guidance on climate-smart agriculture and the updated 45Z GREET model from the Department of Energy.
“I think it was an honest effort to make something that survives regime changes, which is what we need if we're going to have investment,” Gruber said.
