Policy Updates and Issue News January 2017

January 2017

A DIFFERENT WASHINGTON

The National Grange headquarters building has a panoramic view of the White House viewing stands for the upcoming Inaugural Parade. The 115th Congress has already convened on Capitol Hill. A new President and Administration will officially take over the Executive Branch of the United States Government in Washington on Inauguration Day, January 20. For the first time since the 1928, all three elective branches of the federal government, the White House, the Senate and the House of Representatives are controlled by the Republican Party. This is both good and bad. The three points of government may be able to “get things done” despite political haggling between parties that has stymied the legislative process in recent years. Procedural pipelines for legislation should be open and fast for numerous bills to move through Congress to the White House and become law.   That’s a good thing. However, all legislation is not good legislation. Just because there are enough votes on the Hill to pass a bill and the will at the White House to sign it doesn’t automatically mean the resulting law is good for the country. Missing from one-party control of the Senate, House and the White House is a system of checks and balances.

In addition to cabinet-level appointments, the new Trump Administration will fill thousands of political appointee positions in the departments and agencies of government. Some will be presidential appointments that require Senate confirmation. However, most of these appointments will be made at the cabinet officer and agency head level. Traditionally, those first in line for an appointment are early supporters and campaign foot soldiers of the President-Elect.

GRANGE AT THE TABLE

Legislative Director Burton Eller represented the National Grange at an invitation-only listening session by President-Elect Trump’s Agriculture Transition Team recently. Eller’s presentation summarized Grange policy and priorities on farm policy, land and water issues, conservation, ag labor, death tax, crumbling infrastructure, access to affordable health care, rural broadband/connectivity, and more.

ISSUES TO WATCH IN 2017  

Food and Agriculture

Low prices in farm and ranch country is the elephant-in-the-room topic of almost every conversation about agriculture. There are no quick fixes to low prices. Some low prices are caused by oversupply, some are suffering from lower demand and a few are tied up in international market disputes. Consensus in Washington cautions against opening the current Farm Bill for minor adjustments because once the current law is opened it’s fair game for everything. Market stagnation could, however, spur lawmakers to begin work on the 2018 Farm Bill sooner than later. Preliminary Farm Bill hearings could begin in the House and Senate Agriculture Committees as early as this spring and summer. Sound Farm Bill policy is a high priority for the National Grange.
 
Regulatory Rollback

President-Elect Trump has created a new position in the White House to serve as Special Advisor on Regulatory Issues which will oversee the administration’s regulatory reform efforts.   The stated mission will be to cut through red tape, break free of excessive regulation and establish regulatory reform. Other countries like Great Britain, Canada and Australia already have rollback procedures in place based on compliance costs, streamlining regulations and the requirement that for every rule issued three existing rules must be eliminated.

Waters of the United States (WOTUS) is at the top of the rollback wish list for producers and landowners. WOTUS essentially expands EPA and Corps of Engineers jurisdiction to all land and water no matter where they are located.   WOTUS is tied up in litigation filed by more than half the states and numerous trade associations. One legal option would be for the Corps and EPA to ask the court to hold the matter in abeyance until the Trump administration decides what course to take. Then, once agency the agency people are in place, the decision could be made to reconsider the rule.
The Clean Power Plan (CPP), which is designed to reduce carbon pollution from power plants, has been stayed by the Supreme Court. But unlike the WOTUS rule, the CPP rule has been partially implemented by the electricity sector. Repealing the CPP can’t be accomplished through executive order; the administration would have to go through a whole new rulemaking.

Health Care

What to do with the Affordable Care Act/ObamaCare? Opinions run the gambit. Some lawmakers want outright repeal, some advocate repeal then replace, a growing number support simultaneous repeal and replace while others suggest tinkering with the existing framework. Vice President-Elect Pence has indicated Trump plans to take executive actions day one to start unwinding ACA. “It will be an orderly transition to something better…using executive authority to insure it’s an orderly transition,” according to Pence. There is indication these actions could occur simultaneously as Congress debates alternatives to and replacements for ObamaCare.

Broad public concern centers around the fear that ObamaCare might be repealed without a viable replacement thereby reducing or eliminating completely people’s options for health coverage. Republican leadership in both the House and Senate appear to be working on legislation that will repeal, replace and transition the Affordable Care Act to an alternative. But how to replace the Act without a costly government takeover while maintaining coverage for millions of Americans and keeping popular pieces of the law is still to be determined. House and Senate Democratic leadership have signaled some willingness to ultimately work on a replacement once Republicans come up with a plan. Of course the elephant-in-the-room debate will ultimately be who pays and how much? One thing seems certain; the ObamaCare debate will start early and dominate much of the 2017 legislative calendar. Access to dependable and affordable health care is a high priority issue for the National Grange.

Immigration

Agriculture needs labor. That’s a fact. Even in high unemployment areas, local workers are not willing to hire out to agriculture. How to get skilled as well as unskilled labor in a dependable, legal and sustainable way is another elephant-in-the-room problem. Complicating the worker issue is President-Elect Trump’s campaign rhetoric about immigration reform. Growers say the ag labor green card program discontinued decades ago actually did work. The Department of Labor’s current H-2A program is a regulatory nightmare that allows crops to rot in the field while waiting on legal labor to arrive. Resolving agriculture’s labor dilemma will continue to be a long and contentious debate. Politics of so-called sanctuary cities for undocumented immigrants further complicate any quick fix. Sanctuary locales (such as Chicago, New York, Los Angeles, Philadelphia) block local law enforcement officials from asking about immigration status during routine citizen interaction or traffic stops. Sanctuary officials refuse to coordinate with federal immigration officials or comply with federal immigration laws. Ag labor and immigration reform is a high priority issue for the National Grange.

Telecommunications

Slow but methodical progress continues toward achieving dependable high speed wired and wireless connectivity into rural and underserved areas. The federal Lifeline program which provides low-cost phone service to remote, disabled and underserved residents is in danger of being phased out. Connectivity is essential to survivability for agriculture, rural and small town citizens and businesses. Broadband expansion and related telecommunications issues are a high priority for the National Grange.

Taxes

Comprehensive federal tax reform has been cussed and discussed for several years without much agreement in Congress or the White House. The big word here is comprehensive which means to take a big look at the whole tax code, not just pieces and parts. Reforming one area of the code but not another suggests favoring one group over others. Tax reform is sorely needed; it’s been a long time since we had a real one. Foreign business tax, corporate tax rates, individual tax rates, the death tax, business deductions, individual deductions, capital gains rate, depreciation and a multitude more need to be on the operating table. Tax reform in the 115th Congress could burst out of the starting gate but fizzle on the backstretch depending on the will in Congress and the White House. Estate tax/death tax repeal is a high priority for the National Grange.

TAKEAWAYS

“The greatest gift of life is friendship and I have received it.”
~Former Vice President Hubert Humphrey

“A friend is a gift you give yourself.”
~Robert Louis Stevenson

“Forgiveness is a gift of high value. Yet its cost is nothing.”
~Betty Smith

“You don’t choose your family. They are God’s gift to you, as you are to them.”
~Desmond Tutu

“What you are is God’s gift to you; what you become is your gift to God.”
~Hans Urs von Balthasar

CAPITOL HILL

Congress Heading Home

Senators and Representatives are leaving Capitol Hill to return to their states and districts for the next six weeks.  The entire House of Representatives and a third of the Senate are up for reelection this year on November 8.  Grangers are urged to study the issues, attend rallies, organize town hall meetings, talk to the candidates and get involved in campaigns.  Exemplify the Grange motto, “American Values-Hometown Roots.”   Congress returns to Washington November 14 for a lame duck session that will have lots of unfinished business on the agenda.

No Government Shutdown This Year

Both the House and Senate passed stop-gap legislation this week to fund the federal government through December 9.  With strong bipartisan support, the measure passed the House 342-85 and cleared the Senate 72-26.  President Obama has signaled his support and will sign the bill.  Thorny issues were stripped from the measure and will be considered in lame duck.

Water Infrastructure Projects Promised

The House passed a $5 billion water infrastructure bill 399-25 this week clearing the way for negotiations with the Senate’s earlier-passed bill on a compromise version that can be sent to the President in lame duck.  Funding to correct drinking water problems for Flint, Michigan and exemptions from EPA above-ground fuel storage requirements on farms are in both bills.

FOOD AND AGRICULTURE

Agriculture Loans

As Congress prepared its Continuing Resolution (CR) to fund the federal government for the next several months, concern arose over the lack of loan funds available to the Farm Service Agency (FSA) during this stopgap period.  National Grange Master Betsy Huber joined 14 other farm and farm lending organizations to urge Congress to ensure FSA has the necessary funds to continue providing critical operating funds to approved producers in the next fiscal year.  As commodity and livestock prices continue to struggle, estimates are that FSA will enter FY2017 with a $215 million backlog in farm operating loans from 2016.

An obscure provision showed up in the National Defense Authorization Act for Fiscal 2017 9 (H.R. 4909) that would eliminate the statutory $750,000 limitation on annual receipts for a small business farm loans and direct the Small Business Administration (SBA) to set higher limits.  The National Grange joined eight other farm and rural groups on a letter to the Senate and House Armed Services Committees leadership asking Congress not to change the SBA loan limits.  SBA is allocated limited amounts of loan funding which is already inadequate for small business demand.  Since nearly 90 percent of farms have gross receipts less than $350,000, their access to credit should be protected. Larger operations usually have additional credit options.

Defining “Healthy” Foods

The FDA is considering new regulations for foods labeled “healthy” to reflect current scientific data.  New science is showing total fat to be less important than the types of fat and that Americans are not getting enough potassium or Vitamin D.  As understanding about nutrition evolves, FDA wants to make sure labeling claims stay up to date.  FDA will solicit public input on these proposed new labeling regulations.

Animal and Organic Industries Disagree on GMO Label

Under the new GMO labeling law, animal products are exempt from being designated as containing genetically modified ingredients, but can these products be labeled GMO-free?  Much of the agriculture  industry believes there’s no reason products from GMO fed-animals shouldn’t be able to carry a GMO-free label.  They say, “It’s like saying I am genetically modified because I ate an ear of corn last night”.  The organic sector disagrees maintaining that when GMO crops are involved in any way in the production of food, that food should not be eligible for a GMO-free label.  This is just one of many challenges USDA must resolve as it promulgates new GMO food labeling requirements.

Millennials Are Organic Consumers

Results from a recent Organic Trade Association study says about 52 percent of household heads that buy organic food and products fall into the millennial 18-to-34 year- old age group. The survey shows millennials put a high level of trust in the organic seal.  Behind millennials, 35 percent of Generation X 35-50 years old buy organic but only 14 percent of baby boomers, 51-69 years old, shop organically.

HEALTHCARE

Uninsured Rate Goes Down

The number of people without health Insurance decreased by 1.3 percent between 2014 and 2015 according to the Census Bureau.  The coverage gains occurred among the private insurance market, largely attributable to ObamaCare, plus government coverage like Medicare or Medicaid.

ObamaCare Exits Become Election Issues

Eight of the states that might determine the Senate majority in November could see significant reductions in the number of insurers participating in ObamaCare marketplaces according to data compiled by the Kaiser Family Foundation.  Likely departures of insurers in Arizona, Florida, Illinois, Missouri, North Carolina, Ohio, Pennsylvania and Wisconsin could push the healthcare law to the center of some of the most competitive Senate races in the country. The shrinking insurance options could cause higher premium increases, something many ObamaCare customers would be informed of just eight days before elections. One-fifth of ObamaCare customers are likely to have just one insurer to choose from this fall, increasing the scenario in which one insurer has a monopoly in the marketplace.

Employer Health Deductibles Up

Employer insurance premiums grew 3 percent for families in 2016 but deductibles grew at a faster rate according to the Kaiser Family Foundation.  The percentage of workers whose employer-provided plans have an annual deductible grew from 74 percent to 84 percent.  The average single deductible has grown as well from $991 to $1,478.

Fewer Allergies for Farm Kids

Growing up on a farm may help ward off allergies later in life.  A new study at the University of Melbourne (Australia) analyzed data from a survey of more than 10,000 adults in 14 countries in Europe, Scandinavia and Australia.  This study matches other research that suggests exposure to germs and potential allergens in early childhood could protect people against allergies later in life.

ENVIRONMENT

EPA Violated Personal Information

The Environmental Protection Agency has violated the Freedom of Information Act by releasing personal information (including names, home addresses, GPS coordinates, phone numbers and email addresses) of owners of concentrated animal feeding operations (CAFOs).  The unanimous decision by the United States Court of Appeals for the Eighth Circuit found the agency violated the personal privacy of tens of thousands of farmers and ranchers.  EPA now has to “recall” the personal information it unlawfully released, but many feel the damage is already done since the information has been in the hands of the requesters (Food and Water Watch, the Environmental Integrity Project and Iowa Citizens for Community Improvement) for three years.

EPA Overreach Under Clean Water Act

A recent Senate Environment and Public Works Committee report accuses the Environmental Protection Agency and Army Corps of Engineers of reckless and unlawful actions in enforcing the Clean Water Act and using an overtly expansive interpretation of their authority to regulate “waters of the U.S.”  The report describes many examples of regulatory overreach.  In one case, a farmer was ordered to abandon his field because his ordinary plowing was declared a violation of the Clean Water Act.  Another farmer was told he must preserve tire ruts from his own vehicle as a wetland.  A third farmer was ordered to abandon his plans to plant trees because he had never planted trees on his land before. A rancher was told he could not keep a stock pond he built for his cattle because the pond was too aesthetic to be a stock pond and it fell outside the stock pond exemption.

BROADBAND AND CONNECTIVITY

Free Data and Mobile Connectivity

Expansion of high-speed broadband connectivity into rural America and other underserved areas of the country remains a top priority for the National Grange.  The value of free data programs and mobile connectivity to rural citizens was recently emphasized by National Grange Master Betsy Huber in a letter to the commissioners of the Federal Communications Commission.  She voiced support for free data from mobile providers to help expand access to online content in rural areas and encouraged the Commission to support the evolution of these programs.  As rural Americans increasingly turn to their smartphones, tablets and other mobile devices as their primary means of internet access, their needs for and consumption of mobile data are rapidly surging. The premise behind free data programs is to allow customers to access certain content on their mobile devices that don’t count against monthly data plans which gives them more data at no added cost.

CLICK HERE TO VIEW LETTER WRITTEN BY NATIONAL GRANGE MASTER BETSY HUBER

Connecting Rural Phones

Behind the theme of “No matter where one chooses to live, phone service should be consistent and reliable,” the House passed the Communications Act Update Act of 2016 this week.  It includes provisions to combat problems of calls failing to complete to rural areas and relieves small business network operators from burdensome broadband obligations.

Feedback and questions are welcome.  Call or email Burton Eller,  (202) 628-3507 extension 114, be****@************ge.org.