Farmers, Lenders Warn House Agriculture Committee of “Perfect Storm” Brewing for Farm Economy
On Tuesday, the House Agriculture Committee convened to assess the financial struggles in farm country with insights from key witnesses representing various agricultural sectors who highlighted the severe financial pressures faced by farmers. Committee Chairman, Congressman G.T. Thompson, emphasized that declining crop prices, rising costs and harsh weather conditions are compounding to potentially trigger a significant farm financial crisis, likening the situation to the worst since the 1970s. Projections suggest a drastic decline in farm income, with this year poised to record the largest drop ever. The full hearing, including all hearing materials, may be accessed here.
Four Corners Disagree on Path Forward for Farm Bill
Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) issued a release this week criticizing the bipartisan bill approved by the House Agriculture Committee. Ranking Member of the House Agriculture Committee, Rep. David Scott (D-GA) issued a statement chastising the House of Representatives for adjourning a week early for the August recess instead of remaining in town to complete a Farm Bill. Meanwhile, Senator John Boozman (R-AR), the Ranking Member of the Senate Agriculture Committee, reiterated he will not settle for a Farm Bill that “won’t do enough to support agricultural producers.” And Chairman Thompson reiterated his desire to complete a farm bill this year and that his door remains open to negotiation. Chairman Thompson advanced the bipartisan Farm, Food, and National Security Act of 2024 out of the House Agriculture Committee in late May. You can read Senate Ag Chairwoman Stabenow’s release here and House Chairman Thompson’s response here.
More than 500 Groups Urge Congressional Leaders to Pass Farm Bill in 2024
More than 500 groups, including National Sorghum Producers, sent a letter this week to the leaders of the House and Senate Agriculture Committees and the Majority and Minority Leaders of the House and Senate. The groups wrote, “The undersigned organizations and companies represent a diverse array of farm bill stakeholders encompassing agriculture, nutrition, conservation, environmental, rural development and many other sectors. We write to express our gratitude for your efforts to advance the 2024 farm bill within your jurisdictions and to seek your continued support for passing this critical legislation before the end of the year.” The letter continued, “If Congress does not come together this year to enact a bipartisan farm bill, the legislative process will begin anew in the 119th Congress… As committed stakeholders and beneficiaries of the farm bill, we cannot continue to wait for updated policies, provisions, initiatives and critical funding that support our collective interests.” Read more here.
Lawmakers Continue Work on FY2025 Appropriations, a Continuing Resolution is Likely on the Horizon
Lawmakers in the House and Senate worked to make progress on FY 2025 Appropriations bills this week. In the House, lawmakers advanced the Interior-EPA Appropriations bill, bringing the total number of appropriations bills passed on the House floor to five. Due to controversial amendments, lawmakers made the decision to pull the Agriculture Appropriations bill earlier this week. Financial Services and the Energy-Water Appropriations bills were also pulled from consideration in the House.
The Senate has yet to consider any of its Appropriations bills on the Senate floor, but has advanced seven out of Committee. The House Committee has cleared all 12. The full Senate Appropriations Committee is scheduled to consider the remaining five bills on August 1. With little time remaining for lawmakers to complete the annual Appropriations process by September 30, all eyes are turning toward a Continuing Resolution to keep the government funded as a bridge to eventual completion, whether in the lame duck or early next Congress. While the Senate is set to return next week for a brief work period, House Members departed Washington, D.C., this week for the August recess and plan to return the week of September 9. Read more here and here.
House Advances Water Resources Development Act in Overwhelming Bipartisan Vote
The House this week passed the bipartisan Water Resources Development Act of 2024 on an overwhelming, bipartisan vote of 359 to 13. Congressman David Rouzer (R-NC), who serves as Chairman of the House Transportation and Infrastructure Subcommittee on Water Resources and Environment, stated, “Biennial passage of the Water Resources Development Act is necessary to ensure the country’s water resources needs are addressed on a consistent basis. This bipartisan legislative package improves our nation’s ports, harbors, and inland navigation networks while strengthening U.S. and international commerce and enhancing protection of communities during national disasters. The provisions of this bill impact every facet of our water resources across the country, making a better life for every American. I look forward to its enactment upon reconciliation with the Senate.” Jim Wiesemeyer reported, “The bill will need to be reconciled with a similar Senate bill (S4367), which was advanced by the Environment and Public Works Committee and filed as an amendment to the fiscal year (FY) 2025 National Defense Authorization Act (S4368). The Senate might also consider the WRDA as a standalone measure this summer.” Read more here and here.
Rep. Finstad Leads Bipartisan, Bicameral Letter Urging Finalization of “Farmer-Friendly Guidance” for 45Z Biofuel Tax Credit
Congressman Brad Finstad (R-MN), a fourth generation Minnesota farmer and Subcommittee Chairman on the House Agriculture Committee, this week led a bipartisan, bicameral group of lawmakers in a letter to U.S. Treasury Secretary Janet Yellen, urging the Treasury to “provide farmers and biofuel producers with certainty by finalizing the rules to implement the Section 45Z Clean Fuels Production Credit.” The letter was co-led by Representatives Eric Sorensen (D-IL), Mariannette Miller-Meeks (R-IA), and Nikki Budzinski (D-IL), and Senators Joni Ernst (R-IA), Tammy Duckworth (D-IL), John Thune (R-SD), and Amy Klobuchar (D-MN). In the letter, the lawmakers urged that the Treasury Department, “1) Publish the proposed 45Z rulemaking (including any carbon models) and safe harbor guidance by September 1, 2024, and complete the final rulemaking no later than November 1, 2024; 2) Ensure that the 45Z credit is available only to domestic fuel producers; 3) As the statute requires, use the Greenhouse gases, Regulated Emissions and Energy use in Technologies (GREET) model without the additional indirect effects that were added to Section 40B GREET; 4) Include a suite of climate-smart agriculture (CSA) practices and without a “bundling” requirement; and 5) Include a broader array of industrial decarbonization technologies, feedstocks, and agricultural practices.” Lawmakers also added, “Moreover, additional biofuel feedstocks, such as sorghum, corn wet mills, additional oilseeds, and corn kernel fiber should be recognized.” Read more here and here.
Clean Fuels Alliance America Notifies EPA of Intent to Sue over Delayed 2026 RFS Volumes
Clean Fuels Alliance America last week notified Environmental Protection Agency (EPA) Administrator Michael Regan of the group’s intent to sue EPA to “enforce EPA’s nondiscretionary duty to set the Renewable Fuel Standard (RFS) volume for 2026.” According to the notice, “The deadline for EPA to set the 2026 RFS volumes is October 31, 2024 – just over three months from today… Yet, the Unified Regulatory Agenda maintained by OMB shows that EPA plans to issue a proposed rule in March 2025 and a final rule in December 2025. Clearly, EPA has already determined that it will miss the upcoming statutory deadline.” The notice continued, “EPA’s failure to timely issue the 2026 RFS volumes compounds another issue: EPA set the volumes for 2023 through 2025 too low… While EPA can and should reconsider and revise its 2024 and 2025 volumes, it should at a minimum set a timely 2026 volume. Doing so is imperative to get the program back on track by setting a robust volume that can achieve Congress’s desire to “overcome the constraints in the market by creating demand pressure to increase consumption of renewable fuels.” Read more here.
More than 300 Agriculture Groups Urge EPA to Reform ESA Processes for Pesticides
More than 300 state and national agriculture groups, including National Sorghum Producers, this week sent a letter to Jake Li, Deputy Assistant Administrator in the Office of Chemical Safety and Pollution Prevention at the Environmental Protection Agency (EPA), expressing concerns and seeking a “dialogue with EPA on ways to improve its process for assessing potential risks that pesticides may pose to endangered species and their critical habitats.” The groups wrote, “In several recent [Endangered Species Act]-related pesticide proposals, such as the draft Herbicide Strategy and Vulnerable Species Pilot, EPA has indicated it is using less refined Tier I models to predict estimated environmental concentrations (EECs) of pesticides and exposure risks to listed species and their critical habitats. The Agency often does not incorporate various available sources of real-world data that could help to better inform the exposure and effects assessments. These sources include, for example, data on pesticide usage; percent of an area cropped; percent of crop area treated; existing conservation practices that may have a protective effect for species; geospatial data; precision agriculture risk reduction benefits; more taxonomically appropriate surrogate species; and more comprehensive species sensitivity distribution, among others.” Read more here and here.
