Does not matter: Farm spending bill set for House markup — Ag groups launch tele-town halls — Dairy’s high hopes for next U.S.-Japan deal

Jul 09, 2020

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Quick Fix

— House appropriators today will mark up their $24 billion ag spending measure. The committee laid out several directives and complaints aimed at the Agriculture Department in an accompanying bill report on Wednesday.

— After this year's ag industry conventions were scrapped because of the pandemic, major farm groups are teaming up to host a series of virtual town halls across the Midwest this summer.

— Farm-state lawmakers are hoping for a follow-up trade deal with Japan that delivers more market access for U.S. dairy farmers, despite an initial agreement that was touted as a windfall for ag exporters.

HAPPY THURSDAY, JULY 9! Welcome to Morning Ag, where we can't believe we somehow missed the "Fyre Festival of Pizza." Send tips to rmccrimmon@politico.com and @ryanmccrimmon, and follow us @Morning_Ag.

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Driving the Day

FARM SPENDING BILL SET FOR HOUSE MARKUP: The Appropriations Committee will meet at 10 a.m. to consider a trio of fiscal 2021 measures, including the Agriculture-FDA bill. The legislation filed on Sunday was widely praised by Republicans and Democrats alike at a subcommittee hearing this week, but today the amendments will start flying. That means there's sure to be some heated debate on issues like food stamps and meatpacking rules that have been in the spotlight during the pandemic.

Heads up: For anyone planning to tune in, the ag bill is expected to be considered second out of the three.

Appropriators already gave USDA an earful in their bill report released Wednesday, a largely non-binding document that spells out lawmakers' thoughts and instructions to the agencies under their jurisdiction. For one, members said the Food Safety and Inspection Service has "tragically failed to protect its workforce" during the pandemic, noting that at least four FSIS inspectors have died from Covid-19 after the department "failed to promptly provide PPE to inspectors." They directed the agency to publish data on internal Covid-19 cases and deaths as soon as the spending bill is approved by the committee.

The panel also took issue with the department's lack of transparency surrounding last year's relocation of the Economic Research Service and National Institute of Food and Agriculture from D.C. to Kansas City — an abrupt and controversial move that caused an exodus of veteran researchers from the agencies.

"The committee reiterates its frustration at the repeated difficulties it experiences in getting basic information about the move from the department," they wrote. "ERS and NIFA are shells of their former selves, and the loss of institutional knowledge each agency has suffered will take years to overcome."

Keep us in the loop: The panel also directed USDA to update appropriators about upcoming policy changes before sharing details with "non-governmental stakeholders" or the public. And lawmakers said they're "concerned about the department's tardiness in implementing new initiatives" funded in previous appropriations bills.

More highlights: The report asks USDA to prioritize coronavirus relief funds for farmers and ranchers who comply with CDC requirements to keep their workers safe through sanitation and social distancing. It also calls for a departmental plan to reduce greenhouse gas emissions in agriculture and for officials to fund research into the impact of climate change on the nutritional value of crops.

Hot hemp and Victory Gardens: Lawmakers also requested data on the number of hemp acres that must be destroyed because a crop exceeds the 0.3 percent THC limit; and they suggested that USDA leaders launch a new "Victory Garden" campaign in areas with higher hunger rates, citing past national efforts to bolster the food supply during wartime.

FARM GROUPS HOST ONLINE AG TOWN HALLS: Since there aren't many ag conventions and state fairs this year, industry groups are putting on a series of online forums for farmers and ranchers to discuss issues like trade headwinds, supply chain disruptions, rural economics and the future of agriculture. The events will run up to two hours and feature panel discussions, Q&A sessions and online polling.

Who's in? The trade groups involved run the gamut from dairy producers and exporters to corn and soybean growers. They include the National Association of State Departments of Agriculture, Iowa Soybean Association, Plant Based Products Council, National Corn Growers Association and Farmers for Free Trade, among others.

The groups plan to announce the so-called AgTalks series later today. The first session will be held in Iowa on July 30, followed by events in Minnesota, Michigan, Pennsylvania and Wisconsin in August and September, tentatively.

"We believe it is past time for a national conversation focused on solutions to help American ag rebound," they said in a joint statement, shared exclusively with MA. "The health of rural America and the hope of economic resiliency will only occur if we can create a non-political dialogue that brings the pillars of production, processing and logistics together to help redefine trade policy to best enable the most productive, safe and secure delivery of food."

THE CRITICAL NEWS AND CONTEXT YOU NEED, IN 15 MINUTES OR LESS: Covid-19 cases are on the rise, protests to address racial injustice and police reform are ongoing, and a pivotal election is just a few short months away. Struggling to keep up with this never-ending news cycle? Keep up to speed with the day's essential news with POLITICO Dispatch, a short, daily podcast that cuts through the news clutter. SUBSCRIBE TODAY.

Trade Corner

WAITING ON A 'PHASE TWO' TRADE DEAL WITH JAPAN: A bipartisan group of lawmakers from major dairy states is pressing Agriculture Secretary Sonny Perdue and U.S. Trade Representative Robert Lighthizer to secure more access to Japan's massive agricultural market than other dairy exporting competitors.

The letter to Perdue and Lighthizer is led by Reps. Ron Kind (D-Wis.), Lloyd Smucker (R-Pa.), Josh Harder (D-Calif.) and Roger Marshall (R-Kan.), along with dozens more members. They argue that the Phase One deal that took effect at the end of 2019 was a good first step for helping farmers boost their exports to Japan, but it's not nearly enough.

The initial deal secured better "tariff treatment" for U.S. dairy goods, the members wrote, but "our farmers and processors remain at a disadvantage to our competitors due to the preferential access" they get through the 11-nation TPP and a separate Japan-EU agreement. They cited big opportunities to expand access for specific products including milk powder and butter.

"Given the fact that our domestic market is a top destination for Japanese exports, Japan must ensure that the terms of trade offered to the U.S. are better than those offered to other, less valuable, markets," the letter says.

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Row Crops

— Bayer will withdraw a piece of its legal agreement to resolve thousands of lawsuits over its Roundup weedkiller. The $10.9 billion settlement last month included $1.2 billion for an independent scientific review of the glyphosate-based herbicide's health effects, but a federal judge questioned whether such a study would remain relevant for future cases as the science advances. POLITICO Europe's Eddy Wax has the details.

— The risk of obesity for children in poverty decreased significantly because of school nutrition standards enacted a decade ago, according to a new study published in Health Affairs. The prevalence of obesity in 2018 was an estimated 47 percent lower than it would have been in lieu of healthier school meals. The Robert Wood Johnson Foundation, which backed the study, today is calling for universal free school meals for the upcoming school year.

— The FDA tested more than 100 cannabidiol products that indicated a specific level of CBD, and in more than half of those goods, the purported concentration was off by at least 20 percent. The study, shared with Congress and obtained by POLITICO, was part of the agency's effort to understand what's being sold in the booming CBD market, reports Pro Cannabis' Paul Demko.

— The House filed an amicus brief backing a multistate lawsuit to block USDA's crackdown on eligibility for food stamps, the Agriculture Committee announced. A federal court has temporarily stayed the rule, which would curb states' ability to waive work requirements under the Supplemental Nutrition Assistance Program for certain able-bodied adults without dependents, or ABAWDs.

— The worsening pandemic overshadowed a White House event on Wednesday to celebrate USMCA. President Donald Trump and his Mexican counterpart held a symbolic signing ceremony, even as both leaders are struggling to stem the domestic spread of the coronavirus and economic fallout. Pro Trade's Gavin Bade and Sabrina Rodriguez have the story.

— USDA announced an initial $27 million purchase of a vaccine for foot-and-mouth disease for the new national vaccine bank established in the 2018 farm bill. Georgia-based Boehringer Ingelheim Animal Health said it received part of the vaccine bank contract. More here.