Does not matter: Dicamba drama continues with Bayer settlement — Farmers fear cash crunch for ag inspectors — House infrastructure bill draws ag critics

Jun 30, 2020

With help from Liz Crampton and Helena Bottemiller Evich

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Quick Fix

— Largely overlooked in Bayer's $10.5 billion Roundup settlement last week was a $400 million agreement to settle claims of crop damage from dicamba drift, a deal that could help some struggling farmers stay afloat.

— The pork industry and other ag groups are warning that a budget shortfall could hamper agricultural border inspections, a top priority for the sector after African swine fever wiped out hog herds in China and other nations.

— Farm and energy groups are balking at a House proposal to expand tax credits for electric vehicles, part of the $1.5 trillion infrastructure package on the House floor this week. The Democrat-backed plan was also hit with a White House veto threat on Monday.

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Driving the Day

DICAMBA DRAMA CONTINUES WITH BAYER SETTLEMENT: Bayer's $400 million dicamba settlement announced last week could extend a lifeline to row crop farmers in the Midwest facing several years of losses allegedly due to dicamba drift, our Liz Crampton writes this a.m.

The multimillion-dollar agreement was part of a larger deal involving Bayer's popular Roundup weedkiller, which got far more attention. But for some farms, the dicamba compensation could be the difference between staying in business or going bankrupt — and it's one more twist in another frantic growing season for row crop farmers who rely on the herbicide.

Claims from the 2015 to 2020 growing seasons will be covered by the settlement, and farmers not involved in the litigation are still able to submit claims if they provide proof of damage to crop yields and evidence that it was due to dicamba, according to a Bayer spokesperson.

Just some of the legal drama: The Court of Appeals for the 9th Circuit ordered that the product be pulled from the market, saying that the EPA didn't fully consider the risks posed by the chemical. The agency later clarified that producers can spray dicamba purchased before the court's ruling through July 31.

Despite the one-two punch of the 9th Circuit ruling and the settlement, Bayer isn't backing off from its lucrative dicamba product portfolio. The company has "several dicamba formulations in our pipeline," some of which have been submitted to the EPA and others that remain in development, according to the spokesperson.

FARMERS FEAR CASH CRUNCH FOR AG INSPECTORS: As Congress prepares to start working on fiscal 2021 spending bills in the coming weeks, farm industry groups are asking appropriators to include a funding patch for ag inspection efforts that are facing a potential $630 million shortfall because of the pandemic.

"It is inconceivable that Congress would risk widespread damage to U.S. agriculture and the overall economy by not funding these inspections," wrote the National Pork Producers Council and more than 150 other ag groups in a letter to lawmakers.

How it works: The Agricultural Quarantine Inspection program, carried out by Customs and Border Patrol, is meant to prevent animal and plant diseases from entering the country and potentially wreaking havoc on crops and livestock. The program is funded by fees collected by the Agriculture Department — but the revenue has dried up because of the steep drop in travel and trade.

Even a reserve fund for the effort is expected to run dry before the end of the current fiscal year on Sept. 30, the groups warned.

For your calendar: House appropriators are planning to mark up the new Agriculture-FDA spending bill in subcommittee on July 6 and full committee on July 9. But first, the legislative text is expected to be released on Sunday, per our Pro Budget friends.

HOUSE INFRASTRUCTURE BILL DRAWS AG CRITICS: A coalition of farm and fuel groups on Monday took issue with provisions in the sweeping legislation that would boost tax incentives for electric vehicle owners, whom they called a "small and affluent segment of the driving public." The House is expected to start debating the measure today.

In a letter to top lawmakers, industry groups including the American Farm Bureau Federation, Agricultural Retailers Association and American Petroleum Institute took issue with provisions to increase limits on the electric vehicle credits and expand infrastructure like charging stations, among others. They argued that Congress should "maximize investment dollars in infrastructure that benefit all Americans, not a small subset of the automobile fleet."

Where the White House stands: President Donald Trump's advisors recommended that he veto the infrastructure package if it lands on his desk, according to a statement of administration policy released on Monday. It's not popular with Republicans on the Hill, either.

Among their complaints: The package is "heavily biased against rural America," the White House said, although the legislation includes language requiring a portion of the funds to go to communities with fewer than 10,000 people. Pro Transportation's Tanya Snyder has the story.

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Trade Corner

U.K. COMMISSION TO SHIELD FARMERS IN TRADE TALKS: London is launching an advisory group focused on protecting the interests of British farmers in trade negotiations, as the U.K. engages in high-stakes talks with the U.S. and EU, reports POLITICO Europe's Emilio Casalicchio.

Liz Truss, the U.K.'s international trade secretary, said trade pacts with other nations must be "fair and reciprocal to our farmers, and must not compromise on our high standards of food safety and animal welfare."

Those issues are among the most controversial sticking points in negotiations with the Trump administration, which wants the U.K. to ease restrictions on certain ag practices and products like so-called chlorine chicken, effectively giving U.S. farmers more access to the British market.

OTTAWA SHRUGS OFF TRUMP'S TARIFF TALK: Canadian Prime Minister Justin Trudeau panned Trump's recent "musings and proposals" about bringing back U.S. duties on Canadian aluminum, per Pro Canada's Lauren Gardner.

Trump is threatening to slap a 10 percent tariff on the metal unless Canada sets quotas on its aluminum exports. But most of the U.S. aluminum industry opposes tariffs, arguing that current import levels are in line with long-term trends.

Raining on the USMCA parade? The tariff talk comes just ahead of the NAFTA replacement deal's entry into force on Wednesday. Mexican President Andrés Manuel López Obrador is scheduled to visit Trump in Washington in early July to mark the occasion, and it's unclear if Trudeau will join them.

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Row Crops

— The food industry is ramping up its lobbying for early access to a coronavirus vaccine, once one is developed. More than a dozen trade groups including the Consumer Brands Association, National Restaurant Association and North American Meat Institute are making the case that essential food and ag workers should be the highest priority to receive vaccines — other than first responders, health care workers and high-risk individuals, per POLITICO Influence.

— China is still $139 billion short of meeting its 2020 import commitments under the phase one trade deal, even after stepping up its purchases of energy, agricultural and manufactured goods from the U.S. last month as the Chinese economy recovered from the coronavirus pandemic. By the end of May, China had purchased less than 20 percent of its target, Bloomberg reports.

— USDA is extending regulatory flexibilities to make it easier for WIC clinics to serve low-income women and children during the pandemic, the Senate Agriculture Committee said on Monday. The administration took the move after a request that was signed by nearly all members of the committee.

— Millions more U.S. homes are in danger of flooding than previously anticipated by federal emergency planners, as climate change causes increasingly severe storms and floods that threaten trillions of dollars in property, according to new analysis from the nonprofit First Street Foundation. Pro Energy's Zack Colman has the details.

— New Jersey Gov. Phil Murphy said the state will "hit pause" on reopening restaurants for indoor dining, which was set to resume on Thursday. Other states like Florida and Texas have seen spikes in coronavirus cases after moving quickly to lift lockdowns. More from POLITICO New Jersey.

— The GAO released a scathing review of FCC Chair Ajit Pai's so-called FAST Plan for 5G wireless technology, faulting Pai for failing to clearly develop "specific and measurable performance goals" to manage spectrum use associated with 5G deployment, Pro Tech's John Hendel reports.

— Josh Jorgensen is joining the National Rural Health Association as government affairs manager. Jorgensen was previously a legislative aide for Sen. Mike Rounds (R-S.D.), per Playbook.