Congress Avoids Shutdown, Tees Up Water Infrastructure Funding Before Leaving Town

This past week was a busy one for congress, as members scrambled to complete several key items prior to their scheduled break that will last until after elections. Below is a brief rundown of these provisions and the latest developments of interest to the world of agriculture.

Stop-Gap Funding Bill Passes Congress, Government Shutdown Averted For Now

In recent years, a brief government shutdown or the threat of one has become quite commonplace and expected on an annual basis. However, the fact that it is a key election year means that neither party has much appetite at all to play “hard ball” and be responsible for shutting the government down. In the end, The House passed legislation, 342-85, to avoid a government shutdown which would have occurred on September 30 if no deal was struck. The bill, which was easily passed by the Senate 72-26 earlier on Wednesday and has White House backing, would fund the federal government through Dec. 9, provide $1.1 billion to combat the Zika virus and send $500 million to Louisiana and other states facing natural disasters. One of the reasons that this legislation came down to the end of the wire was that Democrats demanded funding in the spending package for the water infrastructure problems faced by Flint, Michigan as well as other communities. After weeks of stalemate on that issue, a deal was reached by party leadership to address funding for Flint during the lame-duck session when congress returns to Washington, D.C. post-election. That funding will be considered as an amendment in a separate water infrastructure bill that I discuss below.

Waterway Infrastructure Bills Clear House, Senate

Earlier this week, the U.S. House passed a water infrastructure bill by a strong vote of 399-25. The Water Resources Development Act of 2016 companion legislation passed the Senate easily by a margin of 95-3 earlier in the month. The legislation would clear the backlog of port and waterway project authorizations and set in motion 25 projects for the U.S. Army Corps of Engineers, seven of which are navigation focused, among other things. Final passage in the House would have occurred earlier but negotiations were ongoing regarding how to handle funding for Flint, Michigan which stalled the process.

While both chambers firmly recognized the need for improved investment in our waterways infrastructure in the U.S., some differences remain between both bills. The House version limits funding and projects to Corps of Engineers projects exclusively, while the Senate bill included provisions dealing with the Clean Water Act, wastewater programs and water safety measures. Overall, however, these latest efforts demonstrate that awareness of our nation’s waterways infrastructure challenges is growing in congress and members are receptive to fixing them. Both chambers are expected to conference their respective bills during the lame-duck session with the hopes of delivering the legislation to the president for signature by the end of the year.

This issue is especially important to Hoosier farmers since so much of our competitiveness on a national and global stage is directly tied to efficiencies in sound infrastructure. According to the American Farm Bureau Federation, Over 60 percent of America’s grain exports and many other important commodities such as fuel, coal and agricultural inputs also move through our inland waterway system. Due to this importance, Farm Bureau policy explicitly supports the maintenance and improvement of our transportation infrastructure including the lock and dam system and other vital waterway infrastructure.

Court Strikes Down OSHA Memo Impacting Anhydrous Ammonia Retailers

Late last week the D.C. Court of Appeals ruled that the Occupational Safety and Health Administration (OSHA) had violated the Occupational Safety and Health (OSH) Act and the Administrative Procedures Act (APA) when it issued an enforcement memorandum on July 22, 2015, redefining the longstanding retail facility exemption to the Process Safety Management Standard (PSM) for facilities that sell anhydrous ammonia. The decision vacates the memorandum and requires OSHA to go through formal notice and comment rulemaking procedures to make any changes to the PSM regulations as it relates to agricultural retailers. According to the Ag Retailers Association, the timely court decision will save U.S. retailers an estimated $100 million in compliance costs. Process Safety Management applies to any facility storing 10,000 pounds or more of anhydrous ammonia. However, retail agriculture facilities selling more than 50 percent of the fertilizer to farmers have been exempt from PSM. OSHA’s 2015 memo eliminated the exemption.

Packers, Stockyards to See Some Modernization

This week the Senate passed by unanimous consent H.R. 5883, the Clarification of Treatment of Electronic Sales of Livestock Act of 2016. The bill is identical to S. 3350 introduced by Sens. Thad Cochran (R-Miss.) and John Tester (D-Mont.) which was quickly approved by the upper chamber after House passage.

The White House is expected to sign the bill, which will expand packers and stockyards definitions to include the use of Internet and video auctions and update payment methods to include the use of electronic fund transfers.

USDA Lockup: A Farmer’s Viewpoint

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I had the opportunity to once again lead 12 farmers on a trip to Washington, D.C. to attend the USDA Lockup and Crop Report. I’m changing things up a little this week by showcasing one of the farmers who participated in the trip. Below is C.J. Fleenor’s guest blog post:

Recently, I was given the opportunity to cross an event off my “Bucket List.” We all have one: that list of random things we would like to accomplish, achieve or experience at some point. Washington, D.C., is truly an amazing city. I have been fortunate to travel there several times over the last few years, but there was still one thing I had not experienced…

The “D.C. Lockup.”

As farmers and people in agriculture, we know of the crop reports released by WASDE and NASS. It has always fascinated me how those reports can make billion-dollar changes in our pocketbooks and the general global economy.

When my regional manager approached me about Farm Bureau sponsoring an annual trip for the lockup, I didn’t think twice when I said “YES!” This was an opportunity to cross a bucket list item off for sure. However, I didn’t realize just how much went into that report. Nor did I realize how little was analyzed for such a monumental monthly document.

The Indiana Farm Bureau delegation, led by Kyle Cline, left on Thursday. Our day started with AFBF and a brief discussion on upcoming hot topics. From there, we travelled to the office of Chuck Conner and the National Council of Farmer Cooperatives, and visited the Canadian Embassy. We discussed U.S. agricultural issues, presidential politics and the importance of the TPP and trade. Our day was capped off with dinner and sightseeing of the beautiful city at night.

Friday, we headed to the USDA. After going through extensive security, we entered the pre-lockup room. There, we deposited any electronics, phones, watches, key fobs, etc., into lockers. Then we heard from NASS employees on how the report is generated. This is where I realized that more than 20,000 points of corn are gathered…equaling up to five acres total of corn. (It’s only one acre of soybeans!) From these sample sites, test weights, kernel quality, yield, etc., are gathered each month.

Then we experience the lock-up.

11 a.m. After passing through an electromagnetic scanner and two sets of locked doors, we hear from statisticians and get a tour. They come in to analyze the data and compile the report just before midnight and can’t leave until the report is released.

11:30 a.m.: We enter the briefing room, where we read the report and speculate on its impact on the markets.

11:45 a.m.: The secretary of agriculture or his designee – in our case, the chief economist – enters the room and the official briefing begins.

Noon: The report is released and the statisticians may leave.

Everything concludes by 12:30 p.m. There were no windows, no doors outside and no communication with the outside world.

I always envisioned this as a general media report; the briefing aspect was interesting. It was a true government briefing, and we were there to witness as the chief economist realized the impact that the decreased expected fall price would have upon ARC and PLC payments, among other supply/demand concerns.

Ultimately, this was a once in a lifetime opportunity, and I would strongly encourage any member to consider attending. The security, the process, the methodology and the presentation were amazing. Not to mention getting to read a copy of the August crop report before anybody else had! I greatly appreciate Kyle and the Indiana Farm Bureau allowing me this opportunity!
C.J. Fleenor, Orange County Farm Bureau President
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