Does not matter: Meatpacking workers risk returning to hot spots — Next steps for online SNAP expansion

Jun 01, 2020

With help from Doug Palmer

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Quick Fix

— Meat production is returning to near-normal capacity, but protections for workers are still lacking, according to some lawmakers and labor advocates. Major meatpackers are setting up physical barriers and sanitizing stations, but without strict federal requirements, safety measures vary from plant to plant.

— Food stamp recipients in most states can now use their benefits to buy groceries online during the pandemic, but only from a handful of retailers like Walmart and Amazon. A key lawmaker is pressing the Agriculture Department to authorize more grocery stores to participate, with a focus on hard-to-reach rural areas.

— USDA expects lower farm exports in fiscal 2020 because of less demand from China. It's the latest sign that the Trump administration's trade pact with Beijing won't deliver the massive windfall for U.S. farmers and ranchers that the president had promised.

HAPPY MONDAY, JUNE 1! Welcome to Morning Ag, where your host can't believe it's already June. Send tips to rmccrimmon@politico.com and @ryanmccrimmon, and follow us @Morning_Ag.

Driving the Day

SAFETY RISKS REMAIN AS SLAUGHTERHOUSES REOPEN: As meatpacking plants across the country resume operations after coronavirus outbreaks in their facilities, plant workers are wary of returning to hot-spots of infection as the number of Covid-related deaths continues to rise, writes Pro Ag's Liz Crampton this a.m.

"A lot of people are legitimately scared right now," said Dennis Medbourn, an employee at a Tyson hog processing plant in Indiana. Medbourn tested positive for coronavirus at the end of April, one of nearly 900 cases at the slaughterhouse. The Tyson plant shut down for two weeks before reopening in May.

It's one of the many meat processing facilities coming back online following President Donald Trump's executive order in April to bolster the food supply. USDA's latest figures show that meat production is now bouncing back to nearly last year's levels.

But Trump's order didn't spell out specific protections for employees. More than 3,000 meatpacking workers have already tested positive for Covid-19, and at least 44 have died, according to the United Food and Commercial Workers Union.

Major meat processors like Tyson and JBS say they're installing plexiglass barriers, hand sanitizing stations, temperature checks and other precautions, while federal agencies have provided millions of face masks to grocery and meatpacking workers, according to a USDA spokesperson.

Still, those measures don't fully mitigate the risk to workers, most of whom are low-income immigrants or refugees, leaving many to choose between risking their lives or losing their jobs. And the government's safety recommendations aren't mandatory, meaning precautions vary from plant to plant depending on local management.

HAPPENING TOMORROW AT 9 a.m. EDT – HOW FAST, HOW SOON: REBUILDING AMERICA'S ECONOMY PART II. Join POLITICO chief economic correspondent Ben White tomorrow for a virtual interview with Senator Tim Scott, who sits on the Senate Finance Committee. Senator Scott will discuss what additional measures are needed to combat the economic fallout from the pandemic, the role that tax breaks for low-income neighborhoods can have in the recovery, and his work with the Trump administration to address the disproportionate impact that Covid-19 has had on minority communities. REGISTER HERE.

NEXT STEPS FOR ONLINE SNAP EXPANSION: USDA has done a "commendable job" quickly allowing low-income families in most states to use their food benefits online, but more sellers need to be authorized for the new program, according to the top House lawmaker in charge of the department's budget.

In a letter to Secretary Sonny Perdue on Friday, Rep. Sanford Bishop (D-Ga.) said USDA needs to approve more online retailers with a presence in rural states and communities with limited access to grocery stores. For now, only a handful of companies that meet certain e-commerce requirements can accept Supplemental Nutrition Assistance Program benefits online. In the vast majority of states, Amazon and Walmart are the only options.

"While the number of states participating is increasing, the vendors remain primarily in the northeastern area of the U.S.," wrote Bishop, chairman of the House Appropriations Agriculture-FDA Subcommittee. "Of the approved retailers, only two are national chains and only one of the national retailers can reach our most rural communities."

The department has approved about 37 states to participate, accounting for 90 percent of SNAP households. Perdue has said USDA would expand the program to include more "independently owned and operated retail stores." Bishop suggested that dollar store chains, which have rapidly grown their footprint in rural towns, could offer online SNAP purchases to low-income families in those areas.

Trade Corner

USDA LOWERS AG EXPORT FORECAST: The department on Friday reduced its estimate of U.S. farm exports in fiscal 2020 to $136.5 billion, down $3 billion from its February forecast, because of weaker Chinese demand and the "shock to world economies" caused by the coronavirus, our Pro Trade friends tell MA.

— Soybean exports are expected to total $16.5 billion for the fiscal year ending in September, which is $1.9 billion lower than USDA's previous estimate, due partly to increased competition from Brazil. The department also expects lower corn, cotton and wheat exports.

— USDA cut its export forecast to China to $13 billion, down $1 billion from its February projection, due to lower expectations for U.S. soybeans and cotton sales. "China has been sourcing record volumes of soybeans from Brazil, helped by a weak Brazilian real," USDA said.

Bottom line: The forecast is bad news for Trump's hope of a Chinese shopping spree ahead of the November election. In the phase one trade deal signed in January, China committed to try to buy at least $36.5 billion of U.S. farm goods in 2020, which would be $12.5 billion more than the nearly $24 billion it purchased in 2017.

WANT MORE INSIGHT ON CHINA? Stay in the loop with the new China newsletter from POLITICO's David Wertime.

SEED COMPANIES DODGE MORE DUTIES: The Trump administration on Friday also announced another round of products that would be excluded from tariffs on Chinese goods, and some of the biggest winners are U.S. seed companies, including Wisconsin-based A.P Whaley and California's Bejo Seeds, per Pro Trade.

The 12 new seed exclusions are backdated until September 2018, when Trump first imposed a 10 percent tariff on the seeds as part of a larger trade action. But they expire in August, meaning the companies could soon face increased duties again unless the exemptions are renewed.

The American Seed Trade Association, working with the Hogan Lovells law firm, requested the carve-outs on behalf of its members. China is the U.S. seed industry's fourth-largest trading partner. In their requests for tariff relief, the companies stressed China's importance as a supplier for certain varieties because of its ideal climate and ready availability of workers experienced in hand pollination and intensive crop management.

"Moreover, the companies cannot simply move to a new country and expect results overnight; it could take up to 10 years to duplicate what they have done with their production in China," the ASTA said in its tomato seed application.

So far, USTR has excluded 20 seed categories from the tariffs, including cucumber, cantaloupe, carrot, eggplant, kidney bean, lettuce, honeydew, mung bean, hot pepper, sweet pepper, radish, squash, tomato and watermelon seeds.

THE CRITICAL COVID-19 FACTS AND PERSPECTIVE YOU NEED, NIGHTLY: The coronavirus death count passed a grim milestone in the U.S. as a growing number of regions reopen parts of their economies. The debate on wearing masks continues to rage and schools are indefinitely closed. For critical Covid-19 insight, context and analysis from experts across our global newsroom choose POLITICO Nightly. Subscribe today.

Row Crops

— The Texas-based event planner that received a $39 million contract from USDA to supply boxes of meat, dairy, fruits and vegetables has delivered its first 235 boxes to the San Antonio Food Bank. CRE8AD8 agreed to provide 750,000 boxes to feeding organizations across the Southwest by June 30. The company's CEO said more food will be delivered this week to food banks in Arizona, Texas and Utah. More from the San Antonio Express-News.

— States are bracing for an intense hurricane and tornado season that could make managing the pandemic even more difficult. Officials from Florida to Missouri worry that large groups of evacuated people gathered in shelters could worsen the spread of the coronavirus. POLITICO's Dan Goldberg and Brianna Ehley have the story.

— The National Restaurant Association and major foodmakers on Friday sent a letter to House and Senate leaders re-upping their call for extra federal aid as negotiations over another stimulus package drag on in Congress. The restaurant industry has previously asked for its own $240 billion relief fund, per POLITICO Influence.

— USDA will compensate more Florida tree farmers for timberlands damaged by Hurricane Michael in 2018, through a $381 million block grant program offering coverage for up to 2,500 acres per forest owner, Pro Florida's Bruce Ritchie reports.

— TIME has a deep-dive on the long history of food waste amid rising hunger, stretching back to the Great Depression, when the government started paying farmers to eliminate their surplus products. Read the story.

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