Category: Ag Policy

Setting the Stage for the Next Farm Bill

On By Kyle ClineIn AFBF, Ag Policy, farm billLeave a comment

Over the years, the agriculture industry and farming have evolved in very positive ways, but have also faced a myriad of growing economic, environmental and social challenges that did not exist at the levels they do today. As a result, there is no shortage of policy issues for the modern farmer and agricultural advocate to engage. For example, environmental policy and regulatory pressures, transportation and infrastructure funding, international trade, tax reform, immigration, healthcare and energy, just to name a few.

However, despite all of these growing complexities and issues impacting the farm, one policy issue continues to stand above the rest, and that of course is the farm bill. Over the last several months, agriculture and non-agricultural groups alike have been lining up to make statements, publish reports, and blast the airwaves with the issues of the farm bill they find most important to their members or stakeholders.

Farm Bureau is also in the process of taking deliberate steps to ensure that the farm bill continues to work for the American farmer. The American Farm Bureau Federation (AFBF) has appointed an advisory group consisting of state staff, including Indiana, to discuss what’s working in the current farm bill and what isn’t. The working group, along with AFBF staff, has published over 50 policy background papers and several videos on various issues and individual titles of the farm bill for farmer members to review. The goal is to prepare farmers for discussions about what they would like to see in the next farm bill so that Farm Bureau can effectively advocate for their needs.

At the state level, Indiana Farm Bureau (INFB) is also developing a process to receive grassroots feedback and policy to shape the next farm bill. A survey has been launched for Indiana Farm Bureau members, a state-level working group has been established consisting of farmer volunteers, and a series of educational seminars and listening sessions have been scheduled with partners at Purdue University. All of these activities culminate to the annual INFB state convention in December, where there will be a farm bill listening session followed by the delegate session where policies will be considered and voted on.

Many other state Farm Bureaus are also planning similar activities and outreach to their farmer members and families. If you live outside of Indiana, you are encouraged to contact your own state Farm Bureau staff to learn more.

There is no doubt that we are going through challenging times in farm country right now. Many farm families are dipping into reserves as they face prices at break-even levels or below. According to the USDA, net farm income for 2016 is at $54.8 billion, compared to $123.3 billion in 2013. Despite these harsh realities, there is no shortage of critics calling attention to the amount of risk management funds going to farm families at this critical time. Yet this is exactly how the farm safety net is designed to work. It pays during times of serious economic decline and does not pay out when the farm economy is on more sound footing. Current budget projections indicate we are likely to have less money to spend on the next farm bill than we had when we wrote the last one. So farmer engagement and grassroots feedback is more critical than ever to assist Farm Bureau in the prioritization of programs.

AFBF President Zippy Duvall has used the metaphor of the farm bill as a barn-raising. He states that “this barn raising is one of the biggest events coming up on the ag calendar, and it’s important that we do everything in our power to make sure Congress gets it right, with squared-up corners and leveled-up beams.” A proper barn-raising in this context is not complete or successful without the participation of the entire community. Farm Bureau and agriculture need farmers to step up and ensure that our collective futures are served by a properly functioning national farm policy. Take the first step and check out the resources and activities that can help you engage and shape this future by visiting http://www.fb.org/farmbillresources/.

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

On By Kyle ClineIn AFBF, Ag Policy, CongressLeave a comment

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

On By Kyle ClineIn Ag Policy, Member D.C. TripsLeave a comment

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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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Election Year Activities Heat Up in the Hoosier State

On By Kyle ClineIn AFBF, Ag PolicyLeave a comment

Following a successful 306-117 vote last week in the U.S. House on the Farm Bureau-supported GMO labeling bill, Congress adjourned for its annual August Recess.  Given this is an election year, lawmakers will have more time at home than normal to allow for their attendance at the national party conventions.

Last week was a big week in politics for Indiana, as Governor Mike Pence was selected as Donald Trump’s vice presidential running mate, which was formally confirmed this week at the Republican National Convention in Cleveland.  Another big announcement was that former U.S. Senator Evan Bayh was returning to politics to seek the open Senate seat being vacated by Senator Dan Coats, which resulted in Baron Hill’s exit as the Democratic Party candidate. These developments also triggered a series of announcements by others, such as Congressman Todd Rokita and Congresswoman Susan Brooks each declaring their intent to run for the vacated governor’s seat.  Their fate will be determined by a 22 person state committee of Republican leaders who will meet next week to decide who the gubernatorial candidate will be.

With the eyes of the nation squarely on election year activities and developments, the American Farm Bureau Federation has developed an Election ‘16 website with resources and information on the upcoming November elections.  The website “gives rural voters an informative look at everything from the campaign for president to local issues.”  Visitors to the website are able to select their state and receive relevant information.  While Indiana Farm Bureau does not make endorsements for president, we encourage members and rural residents to familiarize themselves with each candidate and their respective positions on the issues that impact rural Hoosiers the most.  The AFBF website is one resource that can be used in making an informed vote.

Congress Sends GMO Labeling Bill To President

On By Kyle ClineIn Ag PolicyLeave a comment

Last week, the U.S. House passed S. 764, the Roberts/Stabenow biotechnology food labeling bill, by a vote of 306-117.  The vote included 205 Republicans and 101 Democrats voting in the affirmative, including the entire Indiana Congressional Delegation with exception of Congressman Luke Messer.  The bill establishes federal pre-emption of state-by-state mandatory GMO labeling laws while providing consumers with information about their food that is balanced and accurate.

Indiana Farm Bureau supported the measure and thanks all members voting in favor of S. 764.  The House vote last week followed passage of the same bill in the Senate just a week prior and ended a nearly year-long negotiation and debate that included many starts and stops.  Both Senators Donnelly and Coats supported the measure.

See the previous blog post “Big Week Ahead for Biotech” for a brief summary of the legislation.

Big Week Ahead for Biotech

On By Kyle ClineIn Ag Policy, LobbyingLeave a comment

After months of negotiations, Senate leaders finally reached a historic deal in late June to set national labeling standards for foods that contain genetically engineered ingredients.

The agreement between Senate Agriculture Chairman Pat Roberts and ranking Democrat Debbie Stabenow caps off a long and winding path of negotiations that included a series of starts and stops.  Farm Bureau is supporting the Roberts-Stabenow GMO food labeling compromise and is currently asking members to contact Congress to urge for the bill’s passage.

Below is a rundown of what the legislation would actually do:

  • The legislation would block Vermont’s GMO labeling law that took effect July 1, protecting interstate commerce. States would not be allowed to have labeling laws that differ from the federal standard.
  • It would require food companies to disclose biotech ingredients but provides one of three options for doing so: 1) a scannable code, such as the QR codes on labels that can be read by smartphones, 2) on-package symbol or 3) text on the package indicating the presence of biotechnology.
  • Small companies would be exempt from the labeling requirements.
  • Meat and dairy products also would be exempt from the disclosure standards. Eating biotech feed wouldn’t be enough to qualify as a biotech product.
  • Provides USDA the authority to determine what on-package disclosure will look like.
  • Includes a narrow and strong definition of biotechnology that protects future breeding technologies from being stigmatized as being GMO.
  • Establishes that a manufacturer cannot label a product as non-GMO simply because it is not subject to the bill’s labeling requirements.
  • Also establishes that products already qualified as certified organic will be able to market as non-GMO.
  • Saves the average consumer hundreds of dollars each year.

Time is limited for Congress to take action on the legislation prior to July 15, when both chambers are scheduled for an extended break due to party conventions and August Recess. However, the process for approval is already underway.  Last week, the Senate voted 68-29 on a procedural motion that initiates the process for floor action.  There will be one more procedural vote to “invoke cloture”  followed by final consideration and a vote on the bill, which may take place next Friday, July 8 according to sources.  Assuming everything goes as anticipated, the House is expected to take action on the legislation during the week of July 11.