Sorghum Legislative, Regulatory and Issue Updates

LA Rep. Mike Johnson Elected 56th Speaker, Sets Aspirational Agenda, including for Farm Bill

The House of Representatives on Wednesday formally elected Congressman Mike Johnson (R-LA) to serve as the 56th Speaker of the U.S. House of Representatives. Getting back to business, even if things go according to plan and the House is able to dedicate time in December for Farm Bill consideration, there are major pitfalls, including whether to move a partisan bill where the Speaker would have a challenge keeping all of his frogs in the barrel, or a bipartisan bill where the Speaker could come under intense fire from Republican quarters for seeking to move a $1.5 trillion bill, the vast majority of which is for SNAP benefits, with few if any reforms to the program and, perhaps, too little “farm in the Farm Bill”.  The Speaker’s legislative agenda for next year is fairly limited, including completion of FY2024 appropriations, FY2025 appropriations, and reauthorization of the NDAA and the Water Resources Development Act (WRDA). Notably, the Speaker writes that the House will not recess next August unless all 12 appropriations bills have been completed by the House. Read more here.


Senate Agriculture Committee Leaders Call for Farm Bill Extension to Provide Certainty for Producers as Congress Likely Works Into Next Year to Complete a Farm Bill 

The leaders of the Senate Agriculture Committee, and other key lawmakers, this week called for an extension of the 2018 Farm Bill citing that development and passage of a new Farm Bill will likely spill into next year. Speaking to reporters in Missouri last Friday, Senator John Boozman (R-AR), the Ranking Republican Member on the Senate Agriculture Committee, stated, “We want to get the Farm Bill done as soon as possible, hopefully before the end of the year. [An extension] doesn’t preclude us from getting it done. But it gives us that time. And it gives the farmers the certainty that they will have a Farm Bill in place.” He continued, “The Farm Bill is not about Democrats and Republicans. It’s really odd in that regard. It’s about regions of the country, it’s about commodities and then you have the nutrition side and it’s all of that blended together. So, it’s manageable, we just need to work together to figure out a path forward.” A spokesperson for Senator Boozman added that an extension could potentially be added onto a Continuing Resolution (CR), which will likely be necessary to fund the Federal government beyond November 17. The spokesperson stated, “Sen. Boozman wants to ensure producers have certainty while we continue to work on the new Farm Bill so he wants to make sure that we take advantage of a vehicle like the upcoming CR to attach an extension to as it is hard to say how many opportunities for that outside that CR remain.” 

Senator Debbie Stabenow (D-MI), Chairwoman of the Senate Agriculture Committee, also called for extension in remarks on the Senate floor Wednesday. Chairwoman Stabenow stated, “Getting the Farm Bill done won’t be easy. It never is. But I am committed to doing so. Unfortunately, it looks like this will take longer than I would like. But it would be irresponsible to allow vital programs in the farm safety net to lapse and revert to Depression Era policy in January. We cannot allow that to happen, and given the chaos in the House, I know we will need an extension. But let’s be clear, it would be equally irresponsible to take our focus off of a multi-year Farm Bill that provides stability and certainty for our farmers. I am laser-focused on delivering a bipartisan Farm Bill that keeps farmers farming, families fed, and rural communities strong in the coming months.” Senator Kevin Cramer (R-ND) stated, “The sooner we do [an extension], in my view, the more breathing room we get and the more breathing room for those that are planning. But we’re to that point where the planning is well underway even as the last things are being harvested right now in the Great Plains. Those things are being determined right now and those discussions are taking place between farmers and bankers. And we have the additional inflationary costs of inputs and we have higher interest rates. And so, all the more reason for certainty and early planning to take place.” Lawmakers note that producers planting winter wheat this year and producers who will head into the fields early next year would plant with no law in place absent a one-year extension of the current Farm Bill. Read more here, here, and here.


Chairwoman Stabenow Touts $4-5 Billion in New Funds for the Farm Bill, But Ranking GOP Member, Senator Boozman, Questions Whether This Can Meaningfully Strengthen the Farm Safety Net 

Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) indicated this week that there could be anywhere from $4-5 billion new dollars available for the Farm Bill, although she did not specify where the dollars would come from or how they would be used. However, the Committee’s Ranking GOP Member, Senator John Boozman (R-AR), on Friday emphasized that that level of funding would not likely be enough to meaningfully strengthen the farm safety net. Senator Boozman has been a very key and persistent leader in calls to protect and meaningfully strengthen the farm safety net. Senator Boozman stated, “We’re trying to figure out what needs to be done and getting it scored. So, we’re not ready to say what it’s going to cost to get the risk management tools up to the latest level of inflation.” Read more here and here


USDA Announces $2.3B for Trade Promotion, International Food Aid through CCC Funding

USDA Secretary Tom Vilsack on Tuesday announced the use of the Commodity Credit Corporation (CCC) to provide $2.3 billion to “help American producers maintain and develop markets for their commodities and use U.S. commodities to bolster international food aid.” The move is the result of a bipartisan request from the leaders of the Senate Agriculture Committee, who sent a letter to Secretary Vilsack in early September requesting the use of CCC funding to support the creation of better market opportunities and enhance in-kind international food assistance. 

According to a release from USDA, “USDA will use $1.3 billion for the Regional Agricultural Promotion Program and support for specialty crop industries to diversify export markets, [and] $1 billion to help address global hunger.” Regarding the $1.3 billion used for the Regional Agricultural Promotion Program, USDA stated, “The FY23 agricultural trade deficit is $19 billion, and USDA has projected that it will grow to $27.5 billion in FY24. There is also increased competition in our export markets in Asia and Africa. Therefore, additional investments in market development need to be made to keep ahead of the competition… The new $1.3 billion investment in a Regional Agricultural Promotion Program, or RAPP, will enable exporters to break into new markets and increase market share in growth markets.” Regarding the $1 billion investment in in-kind international food assistance, USDA added, “The United States produces more commodities than are consumed, and therefore has the opportunity to extend this food, via a USDA donation, to those who are in need. USDA will purchase commodities and work with USAID, who is the lead federal agency on international emergency food aid programs, to ensure they reach those most in need around the world. The $1 billion donation will bolster ongoing efforts to address global hunger, as well as support U.S. agriculture through the purchase of surplus commodities.” USDA has not yet specified any specific purchase amounts for participating commodities. Read more here and here.

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