Policy Updates and Issue News August 2019

Hemp Farmers – Be Enthusiastic But Cautious

New hemp farmers should be excited about the huge potential of industrial hemp ranging from medical uses to bioplastics, chemicals, fuels, paper and animal feed.   But they are advised to proceed with caution.  That’s the advice USDA Under Secretary Greg Ibach gave to the National Industrial Hemp Council recently.  Lots of regulatory work must be done before hemp can be a commonplace commodity option for producers.  Ibach has been working with numerous other federal agencies to develop rules and regulations to fully legalize production, sale and interstate commerce.  This new regulatory framework should be in place this fall to include testing requirements, farm inspections and the destruction procedures for any hemp crop that tests above 0.3 percent THC.  In the meantime, the FDA is moving as rapidly as possible to issue regulations but says it is moving cautiously because there is still too much we don’t know about CBD such as cumulative exposure risks and long term effects.

Cities like Denver, Colorado are selling CBD-infused beer, food and dog treats.  But an American Herbal Products Association conference there recently heard FDA‘s concern about unsubstantiated heath claims that CBD cured everything from Alzheimer’s to cancer.  It is prohibited to add CBD to food at this time because there is a significant amount of data needed to understand the effects on human exposure and the long term effects of regular consumption.

Another Court Finds “Waters of the U.S.” Rule Legally Deficient

A federal district court in Georgia has ruled the EPA and Corps of Engineers overreached their jurisdiction in asserting federal authority over activities in interstate waters, tributaries and adjacent waters.   The judge found the WOTUS rule’s vast expansion of jurisdiction over waters and land traditionally within states’ regulatory authority cannot stand absent a clear statement from Congress (congressional intent) in the Clean Water Act.  Since no such statement has been made, the WOTUS rule is unlawful under the CWA according to the court.

Grange Supports Ag Research

The National Grange sent a letter to the leadership of the Senate agriculture and appropriations committees in support of the American Growers Act unveiled by Senator Dick Durbin (D-IL) in early August.  He intends to formally introduce the bill with cosponsors in September.   The Act would authorize a five-year 5% inflation-adjusted annual agriculture research funding increase for the National Institute for Food and Agriculture, Agriculture Research Service, Economic Research Service and National Agricultural Statistics Service.

Presidential Candidates Pay Attention to Ag

Democratic presidential candidates are beginning to court agriculture more than usual as they roll out farm policy platforms to woo voters in Iowa.  Senator Bernie Sanders has a sweeping 10-year plan to carry out the Green New Deal and reshape U.S. agriculture through regulations and subsidies to reduce its environmental impact and push farmers into smaller scales of production and organic methods.  Specifically he would pay farmers to capture carbon in soil through environmental practices, pay states to develop food recovery systems, transition large-scale confinement animal feeding operations into “ecologically regenerative practices”, pay urban and suburban dwellers to transform their lawns into food-producing or reforested space that sequesters carbon and saves water, and bring back Depression-era supply management and grain reserves to prop up commodity prices and cut food waste.  Senator Elizabeth Warren’s ag proposal would break up big corporations such as meat packers and pesticide manufacturers, encourage climate-friendly practices, control overproduction, guarantee prices at the cost of production (known as “parity”), and rely upon the government to stabilize the market by storing surpluses. Senator Amy Klobuchar takes a more moderate approach to focus on expanding farm support programs, tie farm subsidies to the cost of production, increase the portion of crop insurance premiums covered by taxpayers and expand rural jobs.  The one common theme of all Democratic candidates from top to bottom of the polls is climate change and that farmers will benefit from addressing it.

Where are Seniors’ Drug Rebates and Discounts Going?

A new report from the Government Accountability Office (GAO) addresses the growth of manufacturer discounts and rebates in the Medicare Part D program.  Patient costs for health care have become a focus of public policy on the Hill and in the Administration.  Patients are intended to share in the $166 billion in rebates and discounts biopharmaceutical companies pay to insurance companies, the government, Pharmacy Benefit Managers (PBMs) and others in the drug supply chain.  Here are some facts about the report’s findings.

• The bulk of these savings are not reaching America’s seniors at the pharmacy counter. Insurance companies say they use rebates and discounts to keep premiums low.  But a Kaiser Family Foundation February poll found a majority of seniors said a lower copay for prescription drugs at the pharmacy was more important than lower insurance premiums.
• The three largest PBMs own or are owned by insurance companies. The lion’s share of PBM rebates are passed through to insurance companies.   But the PBM and insurance markets are heavily integrated as evidenced by CVS Caremark’s merger with Aetna, Express Scripts ownership by Cigna and OptumRx ownership by United Healthcare.
• Fees paid to PBMs have quadrupled in the past two years. Regardless of whether they pass rebates to insurers, Part D is a significant revenue stream for PBMs.

The National Grange continues to work with other patient groups to find ways to reduce the price of prescription drugs at the pharmacy counter.

Canadian Patients Who Cannot Wait Come to America

The Fraser Institute reports that 63,000 Canadians left their country to have surgery in 2016.  The Canadian universal health care system is often referred to by proponents of nationalized or socialized health care.   Surgeries in both Canada and the United States are normally scheduled after patients are seen by the surgeon after first being referred by their own physician.   In the U.S., 70% of patients were seen by specialists within four weeks after referral whereas in Canada less than 40% were seen in four weeks.  After being advised a procedure is necessary, 61% of Americans had their surgery within a month compared to only 31% of Canadians. Our American health care system needs to be improved and made more cost effective.  However, the Canadian system may not be the best model to follow.

AT&T and T-Mobile Team Up to Counter Robocalls

AT&T and T-Mobile working together have begun to deliver caller authentication technology that works across both their networks.  This is an important first step toward industry-wide call verification.  Nearly 48 billion robocalls were received by U.S. mobile customers last year.  Unwanted robocall attempts will continue but caller verification will help customers better decide which calls to answer or ignore.   A call that is “spoofed” showing a faked number will fail the SHAKEN/STIR Caller ID verification and will not be marked as verified.  Conversely, verification will confirm a call is coming from the identified number.

Future Farming Will Demand 5G Wireless Internet Service

An op-ed by National Grange President Betsy Huber and published by Agri-Pulse says that expanding wireless internet access in rural areas will continue to fuel the truly game-changing advances made by precision agriculture. These include new ways to grow crops by using less water, seed, fertilizer and pesticides.  Made possible by a faster mobile internet, precision agriculture will continue to support new innovations like driverless tractors, robots and drones which are already increasingly handling farming tasks.

Keep Voice Services in the Lifeline Program

In a letter to the commissioners of the Federal Communications Commission (FCC), National Grange President Betsy Huber urged the Commission to maintain support for Lifeline voice services at the December 1, 2018 levels and to not eliminate support for voice services as proposed for 2021. Many senior, handicapped and veteran rural Americans still depend upon voice services to access health care, contact social services agencies, find jobs and keep connected to family and friends.  The Washington Post recently published a letter to the editor from Crystal Rhoades, a member of the Nebraska Public Service Commission, who pointed out that federal Lifeline program smartphones are the simplest and most efficient way to connect low income Americans.   She says she relied on Lifeline to gain a solid footing and pursue her education as a single parent.

Some Good News

During the recent G7 summit in France, President Trump and Prime Minister Abe of Japan announced they had reached an agreement in principle to lower Japanese tariffs and increase market share for U.S. agricultural commodities.   U.S. Trade Representative Robert Lighthizer who led the negotiations says the new deal will eventually pave the way for an additional $7 billion in agricultural exports to Japan. The agreement is expected to be a major benefit for beef, pork, wheat, dairy products, wine, ethanol and a variety of other products.  Earlier in August, Lighthizer announced a deal whereby the U.S. would get exclusive access to a large portion (80%) of Europe’s tariff rate quota for beef.  The agreement is expected to go into effect later this fall following European Parliament approval.

Some Bad News

The economic effects of the trade war with China that affected so much of agriculture is now spreading through the American landscape.  True, it is a war that needed to be fought to curtail China’s monetary and intellectual property shenanigans that threaten so much American business.   But trade wars take their toll on both countries and this one is no different.  High tariffs and more expensive goods cut into the economies of both countries.  More tariff escalation is set to go into effect September 1.  In the meantime, President Trump has announced that talks will resume with China.  Our best analysis is….”Stay tuned”.

Mark your calendars for the tentative dates of February 7-8, 2020 for the “First in the Nation” presidential primary in New Hampshire. The National Grange has traditionally held its fly-in every four years in New Hampshire to allow Grangers to participate in the presidential campaigns of the candidates of their choice.  It has proven to be an outstanding experience for Grange youth and young adults.  Note: If another state sets their primary earlier than February 11, New Hampshire will adjust their date to match it in order to continue their “First in the Nation” legacy.