Policy Updates and Issue News June 2016

June 24 2016

FOOD & AGRICULTURE ISSUES

Genetically Modified Organisms (GMOs) Labeling Deal Reached

A Senate agreement on national disclosure standards for foods that may contain GMO ingredients has been reached.  The agreement between Senate Agriculture Committee Chairman Pat Roberts of Kansas and ranking Democrat Debbie Stabenow of Michigan would allow the disclosure of GMO ingredients through digital codes rather than on-package language or symbols.  The agreement would restrict the definition of genetic engineering and bioengineering to traits developed through recombinant DNA techniques which involve transferring a gene from one organism to another.  This narrow definition of genetic engineering would exempt newer biotech methods such as gene editing and RNA interference from national disclosure standards.  The full senate could vote on the agreement the week of June 27.  The House, not in session until July 5, will still have to approve the agreement legislation since the House labeling bill passed last July differs substantially from the Senate version.

Some other key parts of the agreement are:

• USDA is given two years to finalize the regulation governing disclosure
• Meat and dairy products would not be considered GMOs just because the animals were fed GMO feed
• “Very small” food manufacturers (to be defined by USDA) would be exempt from disclosure
• Products that are certified organic by USDA could be labeled as non-GMO

Congress has been under the gun to preempt state GMO labeling laws before the July 1 implementation of Vermont’s first-in the-nation mandatory on-package labeling law.  For months, the Senate Agriculture Committee has been trying to reach a compromise between proponents of mandatory labeling of all foods which may contain GMO ingredients and those who advocate a certified GMO-free label for foods that contain no GMO ingredients.  The House previously approved a certified GMO-free label, but because of pressure from the organic community, the House bill was a non-starter in the Senate.

Waters of the United States (WOTUS)

The next battle to override the contentious WOTUS rule will be the 2017 Interior-Environment Appropriations bill moving through the Senate.  The spending bill includes a rider to stop the WOTUS regulation from being enforced in case a court stay gets lifted.  Because of the WOTUS rider and other environmental add-ons, the bill may face Democratic opposition on the Senate floor.  A similar provision is included in the companion House measure.

Supreme Court Rules for Landowners

The U.S. Supreme Court has come down on the side of landowners in a fight with the federal government over whether their property includes protected wetlands.  The justices, in a rare unanimous decision, said property owners can go to court immediately and obtain a “prompt judicial review” of claims by federal environmental regulators that their land may be a wetland.  Both the Army Corps of engineers and the EPA have Clean Water Act (includes wetlands) enforcement jurisdiction.  When challenged in the past, the agencies said landowners must apply for a permit (costly and years to complete) or go to court (years long process).  Chief Justice Roberts wrote that property owners “need not assume such risks (of huge fines) while waiting on EPA to drop the hammer in order to have their day in court.”

Ag Labor Still Scarce

A bipartisan group of 102 members of Congress has asked Labor Secretary Thomas Perez to fix the administrative backlog crippling the H-2A agricultural worker program.  Employers are experiencing devastating delays of 30 days or more in the processing of labor certificates, visa petitions, interviews for final border crossing and arrival on farms and ranches.  In the meantime, crops are rotting in the field on many farms.  The demand for H-2A workers has tripled over the last five years as state and federal authorities became tougher on producers caught using undocumented workers.

Farmers Markets are Changing

Traditionally, farmers markets have been a collection of freshly harvested fruits, vegetables and baked goods.  The customer base was concerned with the future of local and sustainable agriculture.  Farmers markets have grown from 4,385 in 2006 to around 8,550 now.  But the market demographics are changing.  Sales of fresh fruits and vegetables are flat.  Competition from brick-and-mortar retailers and online delivery services is increasing.  A new generation of shoppers views these outdoor markets more as a lifestyle choice (they come to socialize) than an opportunity to support local agriculture.  In many areas, the clientele have plenty of disposable income, like good food and don’t like to cook much. Increasingly, farmers markets cater to this new shopper class with artisan foods and hot prepared meals.

HEALTHCARE ISSUES

House Approves Healthcare Reimbursement Arrangements ( HRAs)

The National Grange has been a strong opponent of an Affordable Care Act provision that requires small businesses to offer group health insurance in addition to an HRA or face fines up to $100 per day per employee.  The House of Representatives has passed the Small Business Health Care Relief act (H.R. 5447) by voice vote.  This action will allow businesses with 50 or fewer employees to provide tax-free health cost reimbursement HRAs to employees with individual personal health insurance without the threat of outrageous fines.  Focus will now turn to the Senate where the companion bill S.1697 appears to have bipartisan support.

Rural Health Care Connectivity Closer

Skilled nursing facilities will soon be able to provide better telemedical services to rural patients. Legislation, the Rural Health Care Connectivity Act,  championed by Senator John Thune, R-S.D. permits these facilities to apply for support from the Universal Service Fund’s Rural Health Care Program (RHCP).   This RHCP support will allow skilled nursing facilities, through internet –based connections, to remotely connect rural patients with hospitals and physicians over long distances.  Thune’s bill was sent to the President in the Senate-House conference report on the Toxic Substances Control Act.

Medicare Part B Threats Continue

The National Grange is partnering with several state Granges to raise awareness of significant reimbursement reductions proposed for Medicare Part B.  The pending cuts could greatly reduce the quality and accessibility of care to patients with cancer and other complex conditions.  This is especially worrisome for rural residents who depend on local physicians for the administration of cancer and other specialty drugs.  Since Medicare payments are generally lower than private payment, smaller private practices would be disproportionately damaged by reimbursement reductions.  If reductions cause rural oncology physicians to limit their practices or even withdraw from the field, rural residents will have to travel even greater distances to get vital therapy.

OTHER ISSUES

Non-Crop Pesticides Threaten Bees

Honey bees collect most of their pollen from plants other than crops.  New Purdue University research on pollen samples taken from hives at three Indiana sites indicates the highest concentrations of pesticides in bee pollen were pyrethroids.  These are insecticides used to control mosquitos and other nuisance pests which suggest bees picked up these chemicals from use by homeowners, gardeners and urban landscapers.  The pollen collected by Purdue contained pesticides from nine chemical classes which indicate the overall level of exposure for honey bees in the Corn Belt could be higher than previously thought.

Outreach Down on the ‘Adventure’ Farm

When driving through the Midwest this summer, a stop at Fair Oaks Farms in Fair Oaks, Indiana will be a unique experience.  Located between Chicago and Indianapolis near I-65, Fair Oaks combines large production agriculture, agrotourism and a big idea interactive educational experience to help people who don’t touch agriculture learn firsthand about what producers do and how they do it. First there was Fair Oaks Dairy Adventure then came Fair Oaks Pork Adventure.  The Winfield Crop Adventure has been just been added.  In the next few years, Fair Oaks expects to include new adventures for poultry, beef and machinery technology.  The farm attracts over 350,000 visitors annually, most from communities within a 100 mile radius.