Monday, January 3, 2022

GMO labeling is finally here (sort of)

Delivered every Monday by 10 a.m., Weekly Agriculture examines the latest news in agriculture and food politics and policy.
Jan 03, 2022 View in browser
 
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By Helena Bottemiller Evich

With help from Ximena Bustillo

Quick Fix

— As of Jan. 1, food makers are now required to disclose their use of GMOs on packaged food labels. Even supporters of mandatory labeling are grumpy about it.

Democrats on the House Agriculture Committee are eager to bolster money for climate and disaster relief in farm bill talks after extreme weather devastated farms across large swaths of the country.

— Health officials are currently investigating three separate foodborne illness breaks tied to leafy greens, two of which have been linked to deaths.

HAPPY MONDAY, JAN. 3! Welcome to Morning Ag, where your host is filing from the Pacific Northwest, where it's been unusually snowy. I hope you had a wonderful and healthy holiday. Send me your story ideas and fun New Years resolutions: hbottemiller@politico.com and @hbottemiller, and follow us @Morning_Ag.

Driving the Day

GMO DISCLOSURE IS HERE: You'll notice we aren't calling it GMO labeling. That's because the rule that officially took effect Jan. 1 is not really mandatory labeling, but mandatory disclosure — and only in certain cases.

This used to be a hot-button issue. MA readers will recall years ago consumers and advocacy groups were pushing hard for mandatory labeling at the state level. The tiny but mighty state of Vermont actually implemented such a policy for a hot second — a move that had food and ag companies thoroughly freaked out. To avoid a regulatory patchwork, Congress intervened in the 11th hour to create a uniform national standard, and attention has since waned considerably. Now, the disclosure rule takes effect with barely a whimper of notice.

A refresher: Food makers covered by USDA's rule have several disclosure options, including text, a symbol, electronic (like a QR code), and/or a note to receive a text message. Small food companies have the option of instead including a phone number or a website to make it easier to comply.

There's also an ongoing legal challenge: A few months into the pandemic, the Center for Food Safety and a handful of co-plaintiffs, including some niche grocers, filed a lawsuit against USDA over the rule.

What is bioengineered? The groups have a long list of reasons for suing the department, but the most fundamental is the argument that the rule straight up doesn't follow the law. One biggie, they argue, is use of the term "bioengineered" while prohibiting other, more familiar monikers like GE and GMO. (Brush up on all of this from The Counter here.)

A truck-sized exemption: There's also the fact that USDA deemed "highly refined" ingredients exempt from disclosure if they no longer contain detectable modified genetic material (think high fructose corn syrup or soybean oil). That means many processed foods made with ingredients derived from GMO crops aren't covered.

Supply chain woes be damned: Some leaders in the food industry had asked that USDA push the regulatory deadline back because supply chains are already so strained, but that did not happen.

What's next? Keep an eye out for more litigation in this space as plaintiffs attorneys and consumer groups start poking around to see if food companies are complying, even with the exemptions in place.

WAS THIS AN EXPENSIVE LOW-STAKES FIGHT? It's almost hard to recall a time when GMO labeling was a major, mainstream political fight. The food industry, for its part, spent massive amounts of money fighting labeling initiatives at the state level.

The Consumer Brands Association as recently as last year was still fighting in court over an $18 million fine it faced in Washington state for violating campaign finance rules (CBA was still the Grocery Manufacturers Association at the time). This battle also helped fuel the implosion of GMA, as POLITICO chronicled. But what was actually at stake?

Research from Cornell University suggests that in the brief time Vermont had mandatory GMO labeling in place, nothing really changed: "The mandatory GMO label itself did not have any direct effect on demand, which suggests that voluntary non-GMO labels may already provide an efficient disclosure mechanism in the absence of mandatory GMO labels," the researchers conclude. Read up on that here.

DEMOCRATS SEEK TO NUDGE FARM BILL TALKS TOWARD CLIMATE: There's a lot of uncertainty around who will control writing the 2023 farm bill, but Democrats are making an early bid to shape talks around their climate and other major priorities, hoping to ensure they get at least some of what they want even if Republicans win a majority in the House this fall, reports Pro Ag's Meredith Lee. House Agriculture Chair David Scott (D-Ga.) plans to initiate farm bill negotiations in the coming weeks since the current bill expires in 2023.

"Our focus has to be on making the funding for climate change solutions user-friendly and agri-friendly," Rep. Jim Costa (D-Calif.) said in an interview.

The farm bill, which is reauthorized every five years, touches nearly everything across the agricultural sector and rural economies. It funds programs spanning farm subsidies to food assistance and rural jobs programs. Strengthening the bill's climate-related provisions would cement the Agriculture Department as a central player in government efforts to curb greenhouse gas emissions for years to come.

The growing cost of extreme weather: Lawmakers are also acknowledging they will need to address how Congress funds disaster relief as extreme weather becomes more frequent and widespread. Last year, lawmakers requested and Congress approved separate, immediate disaster relief for Western states and other regions hit by extreme weather. Requesting aid outside the farm bill is often quicker, but some lawmakers worry it undercuts the farm bill's authority.

"I think there's going to be a debate about if there is a way that we can tweak the existing programs so that ad hoc relief is not necessary to quite the same extent," said Rep. Dusty Johnson (R-S.D.).

USDA officials are also eager to overhaul disaster relief funding within the farm bill. Robert Bonnie, USDA undersecretary for farm production and conservation, said during a recent trip to drought-stricken Oregon that he's hoping there's an opportunity for "a conversation going into the next farm bill about [disaster relief] and how we make sure programs work as intended."

ANOTHER HOLIDAY, ANOTHER RASH OF GREENS OUTBREAKS: If you unplugged at all over the holidays, you may have missed the flurry of alerts over a trio of foodborne illness outbreaks tied to leafy greens — a segment of the produce industry that has problems so often that it's becoming almost cliché.

Two listeria: Just days before Christmas, the FDA and CDC announced an investigation into a deadly 13-state outbreak of Listeria monocytogenes infections "potentially linked" to Dole packaged salads that extends all the way back to 2014 — a finding that sparked an expansive recall and suspension of two of the company's production facilities. Just a few days before that, health officials announced a separate outbreak investigation of Listeria found in Fresh Express packaged salad.

One E.coli: The day before New Year's Eve, officials announced yet another leafy greens-related outbreak. This one included 13 people infected with the outbreak strain of E. coli that has been reported from six states. The outbreak has been linked to Simple Truth Organic Power Greens and Nature's Basket Organic Power Greens. Four people have been hospitalized.

 

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On the Hill

ABOUT THAT STALLED FARM LABOR BILL: The Senate failed to take action in 2021 on a House-passed measure that would expand year-round H-2A agricultural visa access, as lawmakers dealt with higher-profile matters in December including Democrats' similarly stalled social spending package, our Ximena Bustillo reported over the holidays.

Agriculture industry leaders ended 2021 disappointed that a bill with bipartisan support could not get any traction in the Senate, stymieing much-needed changes to the H-2A visa program, greater access to labor for ag employers and a pathway to legalization for workers.

State of play: Data released by the Labor Department in November shows that 317,619 H-2A visas were certified in fiscal 2021, nearly doubling the 165,741 visas certified five years earlier.

Year-round operations including dairy and pork farms rely on immigrant labor but largely cannot use H-2A visas to meet their work needs. The proposed legislation would expand the program for such employers, but it would cap those visas at 20,000 annually.

There is broad support specifically for H-2A visa reform and expansion, even from hardline Republicans including Sen. Chuck Grassley (R-Iowa), who earlier in the year slammed the broader bill as "mass amnesty."

Election looms: But many supporters of the effort fear that the upcoming November midterms will freeze Republicans' desire to put their names on a bill related to immigration reform. Proponents of the measure wanted to introduce a Senate version prior to the holiday recess, in order to avoid negotiations during midterm season. That effort — like many other attempts to create a Senate companion bill — fell through.

Reconciliation won't cut it: Some Republicans blame the stalled negotiations on Senate Democrats' recent focus on the $1.7 trillion social spending package, which many advocates hoped would include a pathway to legalization or extended protections for undocumented workers.

Now what? Any changes via budget reconciliation would not provide a pathway to legalization for future workers, and the most recent plan shot down by the Senate parliamentarian only extended protections such as the ability to acquire a driver's license. Similarly, a reconciliation package would not address the labor shortage issues or reform the H-2A visa program for agriculture producers.

Trade Corner

TAKING STOCK OF TAI'S TALL TO-DO LIST: U.S. Trade Representative Katherine Tai is closing in on the first year of her tenure, but a new year will bring new challenges. Topping the list is what to do about China, Pro Trade's Doug Palmer reports.

The shortlist: Tai is slated to confront China's shortcomings under the Phase One trade deal; tighten economic ties across Southeast Asia; and align investment and export control policy with Europe. Plus, she'll need to mediate trade partners' growing criticism that Bidenomic policies smack of protectionism.

After a year focused on repairing and rehabilitating trade relationships, pressure is building on Tai to turn goodwill into wins.

"I see 2022 as the year when the rubber hits the road," said Wendy Cutler, a former senior U.S. trade official now at the Asia Society Policy Institute. "They're going to need to show that their approach is outcome-oriented and those outcomes provide benefit."

Beginning with Beijing: The Trump-era trade deal with China expired on Friday, and the latest data, as compiled by Chad Bown at the Peterson Institute of International Economics, show Beijing is still well below its purchase commitments. Tai has been negotiating with her Chinese counterpart, Vice Premier Liu He, since October but has offered little indication of how she will address the shortfall.

 

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Row Crops

— President Joe Biden today will meet virtually with farmers and ranchers "to discuss his administration's work to boost competition and reduce prices in the meat-processing industry, where corporate consolidation has led to rising prices for consumers and lower earnings for farmers and ranchers," per the White House. Attorney General Merrick Garland and Agriculture Secretary Tom Vilsack will attend.

— Does California's Prop 12, which took effect Jan. 1, place an unconditional burden on farmers outside the state? The Supreme Court could this week decide whether to hear a challenge to the law by farm groups. More from the Food and Environment Reporting Network.

— The Supreme Court this week is slated to mull whether to review an appeals court ruling throwing out EPA's year-round E15 rule, as well as a long-fought Clean Water Act case with implications for farmers and ranchers when it comes to EPA authority, DTN reports.

— A federal appeals court ruled that a lawsuit filed by the families of four workers who died after contracting Covid-19 while working at a Tyson Foods pork processing plant in Waterloo, Iowa, can be heard in state court, the Associated Press reports.

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

 

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