House, Senate Pass Debt Ceiling Agreement, Heads to President for Signature, Could Ease Pathway for Farm Bill
President Biden and House Speaker Kevin McCarthy (R-CA) on Saturday announced that they had reached an agreement on the debt ceiling. The House on Wednesday passed the legislation by a wide bipartisan margin of 314-117. On Thursday evening, the Senate took up the resolution, where it passed 63-36. Following the Senate’s vote, President Biden stated, “No one gets everything they want in a negotiation, but make no mistake: this bipartisan agreement is a big win for our economy and the American people.” Among its provisions, the deal suspends the federal government’s borrowing limit until January 1, 2025. It would keep nondefense, discretionary spending roughly flat in the 2024 fiscal year and increase it by one percent the following year. The bill matches Biden’s proposed defense budget of $886 billion and allots $704 billion for nondefense spending. The bill also requires Congress to approve all twelve annual appropriations bills by September 30 of each year or face a snapback to spending limits from the previous year, which would mean a one percent cut. The deal rescinds between $50 and $70 billion in unspent COVID funds and redirects $10 billion per year for the first two years away from the IRS and towards other needs. It requires the Administration to end the pause on student loan repayments and also imposes a statutory administrative PAYGO requirement that requires the Administration to pay for administrative decisions that cost money. Finally, the deal eases energy production permitting. All in all, the bill is estimated to save $1.5 trillion over the next 10 years, though some say the savings is as high as $2.1 trillion. House Agriculture Committee Chairman, Congressman G.T. Thompson (R-PA), applauded the legislation, stating, “The Fiscal Responsibility Act is a sensible proposal to begin to regain control of the American economy by simplifying and streamlining onerous permitting processes, limiting costly and excessive regulatory actions, and expanding access to employment and training for those in need. It’s about time Washington took steps to get our country’s fiscal house in order.” The Ranking Republican Member on the Senate Agriculture Committee, Senator John Boozman (R-AR), stated,” While not perfect, this agreement represents important progress in putting our country on a sustainable fiscal path while honoring our financial obligations and supporting seniors and veterans… I know there is more work to be done, and I will continue advocating for more responsible budgets along with my colleagues, but this is a good start.” Another major provision included in the final agreement included certain work requirements for assistance programs such as SNAP for able bodied adults without dependents. The final agreement will phase in higher age limits for work requirements, from age 49 to age 54. This provision getting addressed through the debt ceiling debate should be a major step forward for Farm Bill progress, as SNAP work requirements were a key point of contention in negotiations in both the 2014 and 2018 Farm Bills. Read more here.
Report: House Agriculture Committee Leaders Considering Modifying Reference Prices Using Relative Input Costs for Various Crops
House Agriculture Committee Chairman, Congressman G.T. Thompson (R-PA), and House General Farm Commodities, Risk Management and Credit Subcommittee Chairman, Congressman Austin Scott (R-GA), are reportedly considering modifying reference prices based upon relative input costs. Chairman Thompson stated, “Farming is a business. It’s not what you bring in, it’s what you’re left with after you pay your bills. Every commodity is different, right? Some commodities are starting to get to the point where they’re above water and there’s others that are probably still struggling with [the] inflation we have right now.” Chairman Scott shared a similar sentiment with reporters recently, stating that “commodities that require more input costs probably are the ones that need the reference price [increase] the most.” The report cites Dr. Bart Fischer, a Farm Bill veteran and current Co-Director of the Agricultural and Food Policy Center (AFPC) at Texas A&M University. Dr. Fischer and his colleagues at AFPC are key advocates for updating cost of production figures, but also recognize that each commodity group may have different requests and that Congress must continue to be sensitive to the unique needs of each group. Read more here.
USDA Extends Application Deadline for ERP Phase II, Pandemic Assistance Revenue Program, Cites “Learning Curve” as Cause for Extension
USDA’s Farm Service Agency recently announced an extension for applications in both ERP Phase II and the Pandemic Assistance Revenue Program (PARP), pushing the deadline to July 14, in a tell-tale sign that the program hasn’t performed as well as intended. Farm Service Agency Administrator, Zach Ducheneaux, stated, “Farm Service Agency recognizes that there is a learning curve for producers applying for our new revenue-based programs and we want to make sure producers have the time they need to apply for assistance.” Paul Neiffer, Tax Expert and Contributor to AgWeb, stated, “We had heard from various tax preparers being behind in getting these applications done for their farm clients. The FSA continues to tout how easy these applications are but we are the first to admit that it is not a simple matter to calculate these claims when crop insurance, federal payments, and livestock related revenue is involved. This new deadline should give farmers sufficient time to get these claims calculated, but we believe most farmers will find they do not qualify for much since their Allowable Gross Revenue has not fallen enough to qualify.” Read more here.
EPA Finds No PFAS Residues in Tested Pesticides, Rebutting Previous Reporting in Journal of Hazardous Materials
EPA on Tuesday announced the conclusion of a study in which ten pesticides were evaluated for the presence of “per- and polyfluoroalkyl substances (PFAS),” which are often referred to as “forever chemicals” and linked to serious health concerns. The Journal of Hazardous Materials previously published ten pesticides that reportedly contained PFAS residues. However, EPA’s Tuesday announcement rebutted those findings. According to the release, “EPA did not find any PFAS in the tested pesticide products, differing from the results of a published study in the Journal of Hazardous Materials. EPA is also releasing its newly developed and validated analytical methodology used in the testing process alongside the summary of its findings. EPA is confident in the results of this newly released method, which is specifically targeted to detect the presence of PFAS in pesticide products formulated with surfactants.” Read more here.
USDA Trade Official to Lead Trade Mission to Japan, Joined by Producers, Agriculture Groups, State Agriculture Officials
USDA Undersecretary for Trade and Foreign Agricultural Affairs, Alexis Taylor, announced on Tuesday that she would lead an agricultural trade mission to Japan next week. The group consists of producers, leaders from agriculture groups and state-level agriculture officials. Undersecretary Taylor stated, “As one of the world’s leading economies, Japan is an important market for U.S. food and agriculture exports. It is an incredible honor to lead this delegation as we work to expand our bilateral trade relationship even further.” According to the announcement, “Japan is the fourth-largest market for U.S. food and agricultural exports. In 2022, U.S. exports matched the previous record, totaling $14.6 billion, with exports of soybeans, dairy and other products reaching new highs. The United States is vital to ensuring food security in Japan, with nearly a quarter of all Japan’s food and agricultural imports coming from U.S. exporters.” The trade mission will take place from June 5 through 8. Read more here.
