Monday, June 14, 2021

Debt relief court battle heats up — U.S. agriculture exports on the line in Europe talks — USDA readies to revisit antitrust in meat industry

Delivered every Monday by 10 a.m., Weekly Agriculture examines the latest news in agriculture and food politics and policy.
Jun 14, 2021 View in browser
 
POLITICO's Weekly Agriculture newsletter logo

By Ximena Bustillo

With help from Gavin Bade

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.

Quick Fix

— The Department of Agriculture has until Friday to respond to a court's temporary restraining order on its historic debt forgiveness to farmers of color, though it already pledged to fight the case vigorously.

— Various U.S. agriculture products and equipment exports to Europe that have been hit with retaliatory tariffs will be a part of discussions when the U.S. trade representative travels to Brussels and London for talks this week.

— USDA announced it will begin drafting new rules to target antitrust issues in the meat industry. The move comes after supply chain disruptions have increased pressure on the department to intervene.

HAPPY MONDAY, JUNE 14! Welcome to Morning Ag, where your host is wishing all 2021 grads a happy graduation season, including this grad who used her senior pictures to highlight her farmworking family! Send tips to xbustillo@politico.com and @ximena_bustillo, and follow us @Morning_Ag.

 

DON'T MISS THE MILKEN INSTITUTE FUTURE OF HEALTH SUMMIT: POLITICO will feature a special edition of our Future Pulse newsletter at the 2021 Milken Institute Future of Health Summit. The newsletter takes readers inside one of the most influential gatherings of global health industry leaders and innovators who are turning lessons learned from the past year into a healthier, more resilient and more equitable future. Covid-19 threatened our health and well-being, while simultaneously leading to extraordinary coordination to improve pandemic preparedness, disease prevention, diversity in clinical trials, mental health resources, food access and more. SUBSCRIBE TODAY to receive exclusive coverage from June 22-23.

 
 
DRIVING THE WEEK

USDA TO RESPOND TO DEBT RELIEF HALT THIS WEEK: The Agriculture Department has until Friday to respond to the Wisconsin Institute for Law and Liberty's motion for a preliminary injunction that has temporarily halted the process of paying off the loans of thousands of farmers of color as part of a program issued by Congress in a Covid relief bill, reports our Helena Bottemiller Evich.

Morning Ag readers may remember that a federal court in Wisconsin issued the temporary nationwide restraining order on Thursday in response to the lawsuit brought on behalf of 12 white farmers and ranchers by a group that bills itself as a conservative and personal freedom organization.

Immediate reaction: Dozens of groups signed onto a statement released over the weekend by the Rural Coalition against the order.

USDA will "continue to forcefully defend our ability to carry out this act of Congress and deliver debt relief to socially disadvantaged borrowers," a department spokesperson said in an email.

The court order by U.S. District Judge William Griesbach says that USDA has failed to establish that the loan-forgiveness program "targets a specific episode of past or present discrimination.'' The ruling argues that any anecdotal or statistical evidence so far provided is not enough to prove intentional discriminiation, even in pandemic relief efforts and subsidies.

Meanwhile in Florida, Agriculture Commissioner Nikki Fried and two Black legislators on Friday joined in on the criticism, of banking groups for asking USDA to revise how it plans to issue payments in order to reduce how much profit smaller banks could lose.

Fried noted that agriculture is one of the largest industries in the state but the number of farmers in Florida has dwindled from 13,000 a century ago to 2,000 now.

TRADE TALKS IN BRUSSELS: Trade issues pushed to the back burner at the G-7 meeting will take center stage as U.S. Trade Representative Katherine Tai travels to Brussels this week. She will attend the U.S.-EU summit with President Joe Biden on Tuesday before heading to London on Wednesday for meetings with U.K. trade chief Liz Truss.

Two sets of tariffs and retaliatory duties are on the table impacting food and agriculture products. One set governs the Trump-era steel and aluminum tariffs in effect since 2018. EU's retaliation on that action includes steep duties on bourbon, rice, orange juice, fruits and other U.S. agriculture products.

Another has to do with the long-running dispute over aircraft subsidies that the World Trade Organization has ruled on, but which has resulted in tit-for-tat tariffs on scores of U.S. and European products. U.S. goods subject to EU duties on that matter include fish, cheese, cotton and tractors.

Clock is ticking: EU has some limits to its patience. The EU and the U.S. had agreed to suspend the retaliatory aircraft tariffs for four months, but that pause expires next month.

On Friday, Morning Trade reported that 113 U.S. and EU business groups urged negotiators to reach a deal as soon as possible to permanently remove the tariffs. They also requested a further suspension of the duties if more time is needed to conclude the talks so that shipments crossing the Atlantic aren't hit by surprise.

"Indeed, products across a range of sectors continue to face destructive tariffs that are harming competitiveness and negatively impacting manufacturers, producers, farmers and logistics providers and many others on both sides of the Atlantic," said the statement.

VILSACK TALKS CLIMATE IN MICHIGAN: Ag Secretary Tom Vilsack participated in a roundtable on Friday with Senate Agriculture Chair Debbie Stabenow (D-Mich.), Rep. Elissa Slotkin (D-Mich.) focused on the need for more resources for conservation and to help producers make sense of the emerging landscape of carbon marketplaces, according to a press release.

"We heard from a broad range of producers and conservation groups that they're doing groundbreaking work on climate within their own operations already, and if we can scale that work up on more acres across the country, we can start to see a real difference," Stabenow said. "That's going to take serious investment in climate-smart agriculture, forestry and research programs."

USDA TO TACKLE ANTITRUST CONCERNS: USDA is readying to strengthen antitrust rules enforcement, our Ryan McCrimmon reports, a move that comes after a series of supply chain disruptions have led to increased pressure to reduce concentration in the meat market.

In addition, the agency is re-proposing a rule that could allow producers to easily seek action under the Packers and Stockyards Act. Farmer advocates say the current requirements for producers to demonstrate harm to competition are too difficult to meet and effectively shield processors from legal action.

Mixed response: The Justice Department, and several agricultural groups, came out in support of the effort.

But the North American Meat Institute, which represents meat and poultry processors, said it would oppose "unnecessary and burdensome government intervention in livestock markets."

What's next: The regulatory action comes alongside a $4 billion program that USDA is developing to bolster America's food supply chain and ensure fairness in the livestock market. That includes money for small and mid-size processing plants looking to gain a foothold in the market. USDA said it will fill in the details on new financial programs and the three regulatory actions in the months ahead.

BIDEN LOOKS TO REIN LOGGING IN ALASKA: The USDA is looking to reverse a Trump administration's rule that would open over half of Alaska's Tongass National Forest to logging, mining and development, reports our Tatyana Monnay.

The back-and-forth tussle: The U.S. Forest Service, a branch of the USDA, said in a regulatory notice that it plans to "repeal or replace" the Trump administration change from October, which overrode the so-called Clinton-era Roadless Rule that barred logging and road construction on some 58 million acres of national forest lands.

But not all are on board. Alaska Gov. Mike Dunleavy tweeted Friday that he was disappointed in the Biden administration's decision to roll back commercial activity, noting it could prevent jobs creation in the state.

Potential impact: Tongass is the nation's largest national forest and is the largest intact temperate rainforest. It is also home to Alaskan bears and salmon.

What's next: The move is in line with the Biden administration's renewed focus on climate and agriculture but must go through USDA's rulemaking process, which is in the public comment period.

In the States

COLORADO TO PASS FARMWORK BILL: Gov. Jared Polis of Colorado is expected to sign into law a bill in Colorado that would provide farmworkers with increased labor protections. The measure would allow workers to join unions, receive overtime pay and impose meal and break requirements, among other provisions.

Colorado would follow Washington, and other states, in passing legislation to increase pay and labor protections for farmworkers even as Republicans and other opponents caution such laws could risk stretching the budgets of farmers and employers too thin.

 

JOIN TUESDAY FOR A CONVERSATION ON REOPENING THE U.S.-CANADA BORDER : It's been more than one year since the border between the U.S. and Canada first closed to non-essential travel due to the Covid-19 pandemic. The unprecedented and ongoing closure imposed economic and social costs in border communities and across both countries. Join POLITICO for an urgent conversation on what's at stake in the border closure, what it will take to reopen safely, and how the pandemic will change the border in the long term. REGISTER HERE.

 
 
Row Crops

— The ransomware attack on JBS didn't disrupt production for many days but restaurants and farmers felt the slow down, The Wall Street Journal reports.

— A computer chip shortage is hitting the restaurant industry hard because of a shortage of "point of sale" machines to record customer orders for existing businesses and new ones alike. The Washington Post has more.

— A student at Cornell University developed the idea to create a medical treatment for bees to help them become immune to some pesticides. WBUR has more.

— Restaurant closings shuttered the oyster market, but a year later, aquaculture farmers are readying for a summertime boost to business. The New York Times has the story.

— Gamers playing "Farm Simulator" have created another space where those who identify with the agricultural lifestyle can create community. St. Louis Public Radio has the story.

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

 

Follow us on Twitter

Pradnya Joshi @pjoshidc

Ryan McCrimmon @ryanmccrimmon

Helena Bottemiller Evich @hbottemiller

Ximena Bustillo @Ximena_Bustillo

Greg Mott @gwmott

 

Follow us

Follow us on Facebook Follow us on Twitter Follow us on Instagram Listen on Apple Podcast
 

To change your alert settings, please log in at https://www.politico.com/_login?base=https%3A%2F%2Fwww.politico.com/settings

This email was sent to doesnotmatter1@krushx.com by: POLITICO, LLC 1000 Wilson Blvd. Arlington, VA, 22209, USA

Please click here and follow the steps to unsubscribe.

No comments:

Post a Comment