Monday, December 7, 2020

Clock ticking on stimulus, spending talks — Team Biden huddles with ag leaders — Historic cannabis vote in the House

Presented by EDF Action: Delivered every Monday by 10 a.m., Weekly Agriculture examines the latest news in agriculture and food politics and policy.
Dec 07, 2020 View in browser
 
POLITICO's Weekly Agriculture newsletter logo

By Ryan McCrimmon

Presented by EDF Action

With help from Helena Bottemiller Evich

Editor's Note: Weekly Agriculture is a weekly version of POLITICO Pro's daily Agriculture policy newsletter, Morning Agriculture. POLITICO Pro is a policy intelligence platform that combines the news you need with tools you can use to take action on the day's biggest stories. Act on the news with POLITICO Pro.

DRIVING THE WEEK

IT'S THE FRIDAY COUNTDOWN! Cue the shutdown clocks: Funding for the Agriculture Department, FDA and other federal agencies expires at the end of the week. But that's not even the biggest legislative whale that lawmakers are hoping to land before they leave town for the holidays, now that talks over coronavirus relief are back on. In other words, get ready for hell week on Capitol Hill.

The latest: Bipartisan negotiators worked through the weekend to finalize a $908 billion rescue package, and they're aiming to file the legislative text any day now. The measure would allocate another $26 billion to food assistance and farm programs, along with $10 billion each for broadband efforts and the Postal Service, according to a broad framework. Small businesses would get around $288 billion in emergency loans and other support.

But, but, but: The plan ultimately needs a stamp of approval from congressional leaders and the Trump administration. And now that the stimulus and spending talks are largely linked, reaching an overall agreement on both items becomes an even heavier lift with a shrinking calendar.

Send out the punt team: That means Congress is on track to pass another short-term stopgap to keep the government's lights on for another week or so while lawmakers try to finalize their coronavirus response and an omnibus appropriations package for the rest of the year.

Reality check: There's a reason Congress hasn't approved a major aid package since April. Despite signs of progress last week, partisan disputes remain over financial aid for state governments and liability protection for businesses. Those same issues, plus disagreement about the overall price tag, have tripped up negotiations since the summer.

If record-high Covid cases and deaths aren't enough to force a breakthrough, the pandemic response and a final government funding package could be kicked to the early days of the Biden administration. That would mark another failure by Washington — but it's not the worst-case outcome. The disaster scenario is a prolonged shutdown that hampers ongoing coronavirus relief efforts (as well as the presidential transition). That seems unlikely at this point, but we can't rule anything out in 2020.

HAPPY MONDAY, DEC. 7! Welcome to your Weekly Ag report, where "lab-grilled meat" sounds pretty convenient to your host. Send tips to rmccrimmon@politico.com and @ryanmccrimmon, and follow us @Morning_Ag.

A message from EDF Action:

American farmers steward two-thirds of our nation's land, all while producing food, fuel and fiber. By adopting and maintaining conservation practices on that land, farmers can also improve soil health, protect water quality, sequester carbon and reduce risk from extreme weather.

Ultimately, building agricultural resilience is good for farmers, their communities and our country. American farms are counting on Congress' support for sustainable agriculture. Learn more at AmericanFarming.org.

 
Transition 2020

AG LEADERS MEET WITH BIDEN TEAM: The leaders of major farmer and commodity groups met with President-elect Joe Biden's transition team for USDA on Friday — virtually, of course.

Building trust: "It's my responsibility to try to build a bridge of trust with the new administration that's coming in," said Zippy Duvall, president of the American Farm Bureau Federation, who participated in the Ag CEO Council meeting Friday. It wasn't his first contact with the transition team. Duvall told POLITICO he received a call from Robert Bonnie, head of the Biden review team for USDA, on a recent Saturday and they spent about an hour on the phone talking about various issues.

More markets, please: Leaders pressed the need for better market access during the meeting, Duvall said. "We know that there were a lot of federal payments this year and we need to have strong markets so we can make our money in the marketplace," he said.

More aid in 2021? Duvall said it "still remains to be seen" how much aid agricultural producers will need in 2021. It all depends on Covid-19, trade conditions and commodity prices, he noted.

The council raised many of the issues that it flagged in a briefing document for the transition earlier this fall, which contended that the economic health of agriculture is "poor and deteriorating" despite record government payments. Other top issues presented include a Covid-19 vaccine, trade agreements, biofuels, research, rural broadband, labor, infrastructure, sustainability and climate.

A farmer ag secretary? Duvall said the group did not weigh in on whom it might prefer to lead USDA under Biden, but he said he told Bonnie that the Farm Bureau would like to see someone who has farmed in their adult life. "If not, then someone that has a deep knowledge of the issues," he said, noting that a lot of people fall into that category.

A HISTORIC HOUSE VOTE ON CANNABIS: The chamber on Friday voted 228-164 to pass landmark legislation that would scrap federal penalties on marijuana and erase cannabis-related criminal records. It's a monumental step for marijuana advocates, even if the bill is dead on arrival in the Senate, reports Pro Cannabis' Natalie Fertig.

What it signals: The vote reflects a steady shift in U.S. and global views on marijuana over the past decade. Polls show that support for legalization has climbed to 68 percent since Colorado and Washington state legalized weed in 2012. One in three Americans now live in a state where marijuana is legal for adults to use.

What's next: The House is also set to vote this week on legislation that would make medical cannabis research easier, an effort that has wider support than legalization in both parties and both chambers. Natalie has more for Pros.

 

TRACK THE TRANSITION & NEW ADMINISTRATION HEADING INTO 2021: President-elect Biden is pushing full steam ahead on putting together his Cabinet and White House staff. These appointments and staffing decisions send clear-cut signals about Biden's priorities. What do these signals foretell? Transition Playbook is the definitive guide to one of the most consequential transfers of power in American history. Written for political insiders, it tracks the appointments, people, and the emerging power centers of the new administration. Track the transition and the first 100 days of the incoming Biden administration. Subscribe today.

 
 
Trade Corner

PHASE ONE UPDATE: U.S. exports to China are still well below the pace needed to meet the Trump administration's targets under its partial trade agreement with Beijing, even after the sale of goods to China hit a record high in October, Pro Trade's Doug Palmer reports.

The latest Commerce Department trade data published on Friday reflects China's increased farm purchases in recent months as it recovers from the pandemic and works to replenish its pork supply.

By the numbers: China agreed to accelerate its purchases from the U.S. by an extra $76.7 billion this year compared with 2017 levels (and by even more in 2021). The final numbers for 2020 won't be released until February, but the October data shows Chinese imports were about $8 billion lower than during the first 10 months of 2017. In other words, China needs to buy another $140 billion worth of U.S. products between Nov. 1 and Dec. 31.

 

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In Case You Missed It

LAST WEEK TODAY — Here's your post-weekend refresher on the biggest news you might have missed.

New names floated for Biden's USDA chief: The jockeying over Biden's choice for Agriculture secretary has been dominated by Rep. Marcia Fudge (D-Ohio) and former North Dakota Sen. Heidi Heitkamp. But there are several fresh faces in the mix: Kathleen Merrigan, who was deputy Ag secretary under President Barack Obama, and Arturo Rodriguez, former president of the United Farm Workers union. Even Obama's former USDA chief, Tom Vilsack, is now seen as a possibility. Don't miss the latest from our POLITICO team.

Trump's last farm economy report card: USDA projects farm income will surge to almost $120 billion this year, the highest level since 2013 — but taxpayer subsidies account for nearly 40 percent of net earnings. The spike in income is not a surprise, as Congress and the Trump administration have flooded the farm economy with cash this year, but it highlights the dilemma Biden faces in terms of extending the payments or winding them down in 2021, your host reported for Pros.

Meet your next House Ag leaders: Reps. David Scott (D-Ga.) and G.T. Thompson (R-Pa.) will head up the Agriculture panel starting in January as chairman and ranking member. The longtime lawmakers were picked by their respective parties over several other contenders. Scott will succeed Chairman Collin Peterson (D-Minn.), who lost his re-election bid last month, while Thompson takes over for the retiring Rep. Mike Conaway (R-Texas).

 

LISTEN TO THE NEW SEASON OF GLOBAL TRANSLATIONS PODCAST: Our Global Translations podcast, presented by Citi, examines the long-term costs of the short-term thinking that drives many political and business decisions. The world has long been beset by big problems that defy political boundaries, and these issues have exploded over the past year amid a global pandemic. This podcast helps to identify and understand the impediments to smart policymaking. Subscribe for Season Two, available now.

 
 


Row Crops

— Democrat Rita Hart's six-vote loss in Iowa's 2nd District, certified last week, wrapped up a miserable 2020 cycle for Democrats in the Hawkeye State, writes POLITICO's David Siders. The party's Iowa fumbles started with the botched caucuses in February and ended with a wipeout on Election Day, as President Donald Trump crushed Biden in the state, GOP Sen. Joni Ernst comfortably won reelection and Republicans flipped two House seats.

— States are bypassing federal regulators and setting their own rules for workplace safety amid the pandemic, like requiring employers to supply masks and update staff on infected co-workers. The patchwork of regulations could be a blueprint for national guidelines promised by Biden, write POLITICO's Katherine Landergan and Katy Murphy.

— The obesity epidemic in the U.S. costs nearly $1.4 trillion, according to a new report from the Milken Institute. The latest estimate uses 2018 figures, so it doesn't take into account the sky-high economic, social and health care costs of Covid-19, a pandemic that's exacerbated by diet-related diseases. The full report is here.

— Cheesecake Factory will pay $125,000 to settle federal charges stemming from inaccurate financial disclosures, in the SEC's first case against a public company for misleading investors about the pandemic's impact on its restaurants. Pro Financial Services' Kellie Mejdrich has the details.

— The Trump administration's "public charge" rule has prompted immigrant families to turn to food banks during the pandemic instead of government food assistance, out of fear that using federal safety net programs will jeopardize their access to green cards or visas. The New York Times has more.

— NOAA is set to take on a higher profile under the Biden administration as the incoming president focuses on climate change. The Washington Post reports that NOAA veteran Monica Medina is a top candidate to lead the agency, which oversees weather forecasting, ocean research and fishery management, among other scientific areas.

— Senate Democrats from coastal states are asking the GAO to review how USDA can more effectively help fisheries by raising the volume and variety of seafood products bought by the department's Commodity Procurement Program. Read their letter here.

— New York Gov. Andrew Cuomo signed legislation banning the sale of food packaging that contains PFAS, known as "forever chemicals" because they don't break down. It's the third state to impose such restrictions, after Maine and Washington. More from Consumer Reports.

— Federal inspectors at meatpacking plants are being told to remain at work after exposure to the coronavirus, according to employees who complain that USDA isn't doing enough to keep them safe. Government Executive has the story.

THAT'S ALL FOR MA! Drop us a line: rmccrimmon@politico.com; hbottemiller@politico.com; lcrampton@politico.com; jyearwood@politico.com and pjoshi@politico.com.

A message from EDF Action:

This is a pivotal moment for American farmers. Profitability has never been more important, but is increasingly difficult to achieve.
As more frequent extreme and variable weather increases production risk, farmers need new solutions for supporting resilient operations and long-term profitability.

Farmers have a long history of innovation and stewardship, and many are turning to conservation practices that pay to manage risk and increase resilience. But they can't do it alone.

Farmers are counting on Congress to provide flexible incentives and tools that make it easier for them to adapt their operations and benefit from delivering conservation solutions.

American farmers are counting on Congress' support for sustainable agriculture. Learn more at AmericanFarming.org.

 
 

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