Ag Retailers Association

Manchin Blocks Biden's Build Back Better Climate and Social Agenda, What Happens Now?

Tue, 20 Sep 2022 02:31:47 GMT

Lawmakers may have left town, but centrist Sen. Joe Manchin (D-W.Va.) left no doubt that he cannot support President Biden’s $1.75 trillion (or higher) social and climate spending plan, imperiling the president’s agenda. Manchin cited rising consumer prices, a growing federal debt and the arrival of a new coronavirus variant as reasons he could not supply his must-have vote to help his party adopt its signature spending package.

Manchin said Sunday that he cannot support the House-passed version of the social spending package that would have extended child tax credits and provided new subsidies for childcare, preschool and elder care. “I cannot vote to continue with this piece of legislation. I just can’t,” Manchin said on Fox News Sunday. “I’ve tried everything humanly possible. I can’t get there. This is a no on this legislation.”

The Senate left town Sunday morning without voting on the bill (House departed earlier), which Democrats call Build Back Better (BBB). In a statement Thursday evening, Biden expressed optimism that talks would continue into the new year and eventually lead to an agreement. But Manchin, whose reluctance to get behind the legislation has grown as inflation has risen to levels not seen in decades, now sounds like his mind is made up. Some Democrats say this is Manchin’s typical wage of getting leverage, possibly on a pared-down version of the House-passed legislation.

“I’ve tried. I mean I really did. And the president was trying as hard as he could,” Manchin said. “He has an awful lot of irons in the fire right now. A lot. More on his plate than he needs for this to continue.”

White House Responds

The White House issued an aggressive statement on Manchin. White House press secretary Jen Psaki said had previously assured President Biden he would support some version of the bill and that negotiations were continuing. “If his comments on Fox and written statement indicate an end to that effort, they represent a sudden and inexplicable reversal in his position, and a breach of his commitments to the President and the Senator’s colleagues in the House and Senate,” Psaki said in a statement. Manchin reportedly informed the administration of his move shortly before going on television Sunday. Top White House officials scrambled to call the senator and talk him out of what he was about to do. “We tried to head him off,” a senior White House official told Politico, but Manchin “refused to take a call from White House staff.”

Manchin expanded on his no reasoning — and offered even harsher words for his fellow Democrats — in a statement issued shortly after his television appearance. “My Democratic colleagues in Washington are determined to dramatically reshape our society in a way that leaves our country even more vulnerable to the threats we face,” he said. “I cannot take that risk with a staggering debt of more than $29 trillion and inflation taxes that are real and harmful to every hard-working American at the gasoline pumps, grocery stores and utility bills with no end in sight.”

Manchin, up for re-election in 2024 in a state that Biden lost by 40 points, also cited a second Congressional Budget Office (CBO) report, which Republicans requested, that determined the legislation would cost $4.5 trillion if the subsidies and credits included were extended. The White House dismissed that CBO score as “fake,” arguing that the proposal as written would cost far less and be fully paid for.

Initial Impact

The legislation’s demise means the expiration next month of the 2021 child tax credit that had given qualifying families up to $300 per month for each child under age 6 and up to $250 per month for each child ages 6 through 17. The Biden administration is exploring the possibility of providing double payments in February to make up the shortfall, White House Press Secretary Jen Psaki said Friday. Pushing off the president’s economic agenda until next year means that the payments, which have been sent to families for the past six months but expired Wednesday, are unlikely to be ready for Jan. 15. Psaki said the delayed payments could come in February if the president’s tax-and-spend proposal, which has been put off until after the New Year, gets through Congress in January. “If we get it done in January, we’ve talked to Treasury officials and others about doing double payments in February as an option,” Psaki told reporters aboard Air Force One. The Internal Revenue Service had sought enactment of the bill before Dec. 28 to ensure Jan. 15 payments went out on time.

Other impacts include new proposals to subsidize the cost of childcare, preschool and elder care are off the table, for now. The White House had argued such benefits were a prudent response to rising inflation. Manchin’s comments put at risk a $555 billion package of tax credits, grants and other policies aimed at lowering greenhouse gas emissions.

Harsh Criticism by Sanders

Sanders comments. Sen. Bernie Sanders (I-Vt.) was among the first to react to Manchin’s statement. During an interview on CNN, Sanders said Manchin will have to explain to his constituents in West Virginia, “a state that is struggling,” why he’d stand in the way of new Medicare subsidies for dental coverage and investments aimed at combating climate change. “Let Mr. Manchin explain to the people why he doesn’t have the guts to stand up to powerful special interests,” Sanders said, calling for a full Senate vote on the legislation next month even if the bill fails. “We’ve been dealing with Mr. Manchin for month after month after month,” Sanders said. “But if he doesn’t have the courage to do the right thing for the working families of West Virginia and America, let him vote no in front of the whole world.”

Bottom line:

Manchin’s comments appear to be a solid no and lawmakers are not used to being so specific. BB is dead. Some Dems hope for a new, more Manchin-shaped bill that includes some key pieces of the Biden climate and social policy agenda.

"Better Late Than Never” Changes to Seasonal Ag CDL Program

Mon, 10 Oct 2022 19:08:55 GMT

Richard Gupton from ARA gives an update on two positive changes for ag retailers to the Federal Motor Carrier Safety Administration’s seasonal ag CDL program.

He shares in September the Federal Motor Carrier Safety Administration put in a final rule changes to the seasonal ag CDL program.

“We view it as ‘better late than never’ that they issued this final rule because it was in the bipartisan infrastructure bill that was passed by Congress last year. So it’s several months after the fact, but we’re glad they finally took that step,” Gupton says.
Previously the program had been for 180, but now, it is extended to 210 days.

“This provides an additional 30 days of flexibility for our members,” Gupton says. “When there’s changes in seasons and timing, ag retailers are able to hire those drives that are going to be desperately needed to move product in a timely way.”

So the first update is the additional 30 days, and the second update is now the program is now aligned by the calendar year.

“The 12-month window that they look for in those 210 days is January 1 until December 31,” Gupton outlines. “No longer will you have the overlap from year to year. With issues when the weather caused one season to start earlier, in the past, it prevented our members from being able to hire these drivers. And it provides more flexibility by looking at the calendar year versus overlapping a previous year,” Gupton says.

The final rule means the new seasonal ag program outlines will go into effect in 2023, however, the 24 states that participate in the program will need to take their own action.

“The states have to implement these changes at the state level, and some may be quicker than others. We’re engaging with our members and we’ve notified them as well as the state agribusiness associations–I know several of them have already weighed in with their state agencies and state lawmakers to try to get those changes in place before the 2023 season. So it may take some time depending on which state your business operations are in,” Gupton says.

Gupton says this development is particularly helpful as this previous year’s entry-level driver training program that went into effect for the CDL program has become a barrier to entry.

“It costs between $6,000 to $8,000 to train these new drivers under this regulation,” Gupton says. “If you’re somebody looking to try to get your CDL, and if you are having to foot that bill yourself and don’t have a potential employer to pay for it, just think how much more difficult it becomes to become a commercial driver.”

Gupton says there’s legislation that would exempt the agricultural industry, which is something to watch.

He also shares why Process Safety Management is back on the radar for ARA and why ag retail-ers should be aware. Listen to The Scoop podcast as Gupton shares more on EPA and OSHA activities for ag retailers to watch.

What’s Your Take on the 2018 Farm Bill?

Tue, 20 Sep 2022 02:31:29 GMT

U.S. House Agriculture Committee is seeking feedback on the previous Farm Bill in preparation for the upcoming 2023 Farm Bill .

Glenn Thompson (R-Pa.), House Ag republican leader, says farm bill feedback is “critical” with 2023 Farm Bill discussions in full swing.

“Hearing directly from farm country about what’s working and what’s not is the only way to ensure we craft a bill that meets the needs of rural America,” said Thompson.

House Ag Chairman David Scott (D-Ga.) “strongly encourages” producers to add their inputs on how the 2018 Farm Bill has or has not met their needs so as to craft a new bill that’s better suited for the people.

2018 Farm Bill feedback can be submitted through the online form .

More at Stake

Election midterms are around the corner. Randy Russell, president of The Russell Group, says the direction of 2022 elections will largely determine the 2023 Farm Bill parameters.

“If the House does flip, Glenn Thompson will become chair and that’s a very influential position over the Senate,” he says. “Even if Republicans were to take control, you’re still going to need Democratic votes to pass a farm bill.”

While party control is important to consider, Russell feels the primary farm bill angle—no matter who is running the gavel—will be focused on nutrition.

“If you take the 2023 Farm Bill and extend it for 10 years, according to the Congressional Budget Office, the total cost would be $1.3 trillion. Of that $1.3 trillion, $1 trillion is in nutrition,” says Russell. “I think that’s going to set up a debate about the role of nutrition versus farm program, among other aspects of the farm bill.”

Support for farm programs, crop insurance, trade programs, ag research and food safety will come down to balancing the scale with the $1 trillion nutrition price tag, according to Russell. He says “we’ve got to be willing to make a deal on the nutrition side” to attract votes from urban and suburban politicians.

The next 2023 Farm Bill review will take place on July 20, where House Ag Committee members will consider title XI crop insurance.

More on the coming farm bill:

Farm Bill 2023 Drives Up the Heat in House Ag Committee Hearing

Factors That Will Shape the 2023 Farm Bill

Biden's Environmental Plans Upended by the Senate's Latest Vote

Wed, 05 Oct 2022 18:44:12 GMT

On Thursday, the Senate passed a joint resolution of disapproval under the Congressional Review Act to put a stop to any changes the Biden administration might make to the National Environmental Policy Act (NEPA).

The Congressional Review Act was established in 1996 as a way for Congress to reverse rules created by federal agencies.

Why Does this Matter to Ag?

NEPA, delegated by the Council on Environmental Quality (CEQ) , contains elements of environmental legislation—including the Environmental Quality Improvement Act of 1970 and the Clean Air Act —that ultimately outlines what stake and duty federal agencies have in implementing the U.S.’s environmental legislation.

According to the White House the CEQ advises the President and develops policies on:
1. Climate change
2. Environmental justice
3. Federal sustainability
4. Public lands
5. Oceans
6. Wildlife Conservation

The Congressional Review Act, exercised by the Senate on Thursday, is an avenue to “claw back” on the Biden administration’s environmental permitting rules (NEPA), according to Jim Wiesemeyer, ProFarmer policy analyst.

What’s the Story on NEPA?

First developed in 1971 and finally issued as regulation in 1978, NEPA guidelines were in use, untouched, for more than 40 years until “wholesale” revisions took place in 2020 under the Trump administration, according to CEQ.

This year, CEQ reviewed the changes made in 2020 and decided on a phased approach to amending the NEPA regulations. CEQ issued the Phase 1 Final Rule in 2022, which restored regulatory provisions to their status prior to the 2020 amendments.

“The rule finalizes a narrow set of changes to generally restore regulatory provisions that were in effect for decades before the 2020 rule modified them for the first time, the CEQ outlined on its website. “The final rule changes better align the NEPA regulations with CEQ and agency expertise, as well as NEPA’s statutory goals and purpose of promoting sound decisions informed by science.”

But CEQ’s Final Rule didn’t sit well with some legislative officials, leading to roadblocks from the Senate.

Next Steps for NEPA

The Senate agreed on Thursday to put NEPA under lock and key, out of CEQ’s hands. However, the House will have to cast their own vote to decide the fate of NEPA.

Wiesemeyer feels the same disapproval may not carry throughout Congress, as NEPA “faces long odds against Democrats’ majority in the House.”

More on ag policy:
John Phipps: Is the Outrage By Dutch Farmers Now Being Heard by the World Enough to Prevent Policy Changes?
John Dillard: Supreme Court Fences In Federal Agencies (A Little)
China’s Latest Land Purchase Could Pose Major U.S. Security Risk

Trump waives hours of service rules for emergency transport of food

Tue, 15 Nov 2022 07:38:55 GMT

President Donald Trump has declared a national emergency because the coronavirus COVID-19 and waived the hours of service rules for truck drivers transporting emergency supplies of food.

It’s the first time since the rules were enacted in 1930 that they’ve been suspended.

The March 13 emergency declaration covers “food for emergency restocking of stores,” as well as medical equipment, hand sanitizer, masks, and other items. The waiver remains in effect until midnight April 12 or when President Trump terminates it, if sooner.

The waiver grants emergency relief form the hours of service rules. Those rules still apply for routine deliveries and mixed loads that include “essential supplies” that are not being transported in support of emergency relief efforts, according to the declaration. Drivers must start the clock when they’re dispatched to “begin operations in commerce.”

The declaration does not define what are emergency relief efforts versus a return to “interstate commerce” not supporting relief efforts for drivers supplying retailers. It does not specific if the waiver covers fresh produce and other foods being transported to processing facilities.

President Trump, Vice President Mike Pence, Agriculture Secretary Sonny Perdue and other White House officials participated in a call with retailers and industry groups on March 15.

According to published reports, executives of Walmart, Aldi, Whole Foods, Wegmans, Publix and other retailers participated.

Greg Ferrara, CEO of the National Grocers Association, welcomed the opportunity to speak to White House officials.

“While local, independent grocers are currently experiencing an unprecedented demand in store traffic and for product and goods, we continue to work closely with the president and our federal, state and local officials nationwide to ensure the resilience of both the food supply chain and our local economies,” according to a statement from Ferrara.

“Our industry has faced emergencies before from hurricanes to earthquakes, and fires to floods,” he said in the statement. “Grocers are experienced and prepared to continue serving their communities and employees as our members do each and every day.”

The Food Industry Association (FMI) also released a statement, ensuring the “viability of the supply chain and the availability of safe, affordable food.”

“We are resilient; our industry is working 24 hours a day to replenish and restock while ensuring the cleanliness of our stores and facilities,” FMI president and CEO Leslie Sarasin said in the statement. “We are seeking to be sensitive to the needs of all our customers and partners, including our WIC and SNAP shoppers and the food banks our stores support.”

Many grocery stores are expanding the hours they are closed to clean the store and restock shelves.

“As we continue to see an increase in customers, this temporary reduction in hours will allow us time to focus solely on store cleanliness and product availability,” according to a news release from St. Louis-based Schnucks. “Our supply partners and warehouse teams continue to work around the clock to ensure that product is available to our customers as quickly as possible.”

For more coronavirus coverage, check out our landing page on the topic here. To contribute to a survey on how the pandemic is affecting the produce industry, click here .

Related stories:

How the coronavirus is affecting the produce industry

Foodservice sector bearing brunt of outbreak

Sonora Grape Summit postponed, but crop report offered online

Vilsack Shares Top Three Priorities

Tue, 20 Sep 2022 06:28:28 GMT

It’s been four weeks since the New Year ball dropped in Times Square. We’ve heard some buzzing from Capitol Hill but wager there is more happening than what we are hearing.

Tom Vilsack, USDA Secretary of Agriculture, recently joined Chip Flory on AgriTalk to provide an update on his latest work in farm country in 2022.

“Rural Extraction Economy”

Vilsack says there is a valuable proposition found in rural places—a concept he has coined rural extraction economy.

“We take things like crops and minerals off the land—we extract them. We transport these goods to someplace else where value is added, wealth and jobs are created

USDA Secretary Tom Vilsack says materials like crops and minerals are extracted from the land and transported to another location where value, wealth and jobs are created. He says this is part of what he further describes as a circular economy.

“Local and regional food systems have the ability to take cattle and hogs that are being produced and, instead of trucking them hundreds of miles to get them processed—allowing a large, multinational company to benefit—we create a farmer-owned cooperative or processing facility that allows producer to profit from not only production, but also processing,” says Vilsack. “It’s a circular economy that stays in the community.”

COVID-19 Relief Payments

In 2021, the USDA promised $10 billion in COVID-19 and disaster aid payments for producers. Of the $10 billion, $750,000 was set aside for livestock. Vilsack says these payments have not been made to producers because his department is working to “simplify the payment process” by looking at previous relief payments to decide on a basis.

“A percentage of those basis payments will be made quickly—hopefully by this spring,” says Vilsack. “Then we’ll set up a second payment structure for those who didn’t make a claim.”

Vilsack hopes to have this system established and moving funds no later than spring 2022.

Trade

Earlier this month, Vilsack and Trade Ambassador Katherine Tai announced the Indian government has agreed to allow imports of U.S. pork and pork products into India.

Vilsack says the new opportunity marks the culmination of nearly two decades of work to gain market access for U.S. pork to India – and it signals “positive movement” in U.S.-India trade relations.

The revitalization of the U.S.-India Trade Policy Forum coupled with the United States-Mexico-Canada Agreement and Vietnam’s reduction in tariffs are what Vilsack attributes to record export numbers.

Vilsack also hinted there is a new trade position to be filled at the USDA. While he didn’t share the candidates name, Vilsack says the role will require an “aggressive effort” to measure up to another projected record export year.