Policy Updates and Issue News March 2020

“These are the times that try men’s souls. The summer soldier and the sunshine patriot will, in this crisis, shrink from the services of their country, but he that stands by it now, deserves the love and thanks of man and woman.” These words by Thomas Paine in December 1776 spoke to a deepening crisis in America, the Revolutionary War. Another crisis with a dramatically different and unseen enemy now grips the soul of our nation. But as in 1776, the patriot spirit in America is alive and well. COVID-19 has become a common enemy that is bringing us together as we tackle serious new medical, economic and societal challenges. As the infection rate from the virus rises exponentially and the death rate climbs, the medical community is trying everything in its arsenal to mitigate this disease and some interventions seem to be working. The President, governors and mayors have taken drastic but necessary lock-down steps to limit crowds and movement to slow disease transmission. Stocks tumbled and unemployment skyrocketed as a result. Congress and the President responded with financial aid packages to mitigate some of the severity of the tanking economy. The President formally triggered the Defense Production Act which gives the federal government authority to require, if necessary, industries to release supplies and step up production of respirators, masks, gowns and gloves for medical personnel. Family becomes family and neighbors become neighbors in these times. Grangers nationwide have opened their hearts, their hands, their sense of community; their halls and their wallets to stand in the gap.

One Million Meals to Rural Students/Funds for Feeding Programs

USDA is collaborating with Baylor University Collaborative on Hunger and Poverty, McLean Global and PepsiCo to deliver food boxes to rural children affected by school closures who may not know where their next meal is coming from. Each box contains five days’ worth of shelf stable food. The initiative brings industry innovations and best practices together with USDA to combat rural hunger. Additional vendors are being encouraged to participate. The partnership is expected to quickly increase from 200,000 meals per week to 1,000,000. In addition, Congress passed, and the President signed, a relief package that expands domestic feeding programs, emergency food assistance programs and suspends SNAP work requirements during the emergency.

A Bus for Lunch?

We’re aware of some closed rural school districts who are busing food instead of students. The cafeteria workers show up at 6:00 am, prepare the usual number of free meals for the day, load the meals on buses, then make normal bus routes to drop off meals instead of picking up kids.

Restocking Grocery Shelves

The nation’s food supply chain is responding to restock empty store shelves caused by panic buying and restaurant closures. There is plenty of food available, but the challenge is to keep plants staffed and running with large numbers of workers (while simultaneously preventing COVID-19 infections) to ensure a steady supply moving forward. The Administration has suspended hours-of-service rules to enable critical industries truckers to shorten delivery times.

Targeting Farmer Stress

The National Grange joined other agriculture and rural groups to request congress fully fund the Farm and Ranch Stress Assistance Network in the FY 2020 appropriations package. Mental health challenges faced by farmers, ranchers, farmworkers and rural residents are 48% higher than a year ago and 68% of rural residents live in areas with mental health professional shortages. Cost, embarrassment and stigma are the main barriers to seeking help.

Stocks Nose Dive

A resilient U.S. economy has been derailed by the COVID-19 pandemic. The stock market crash wiped out three years of gains. As events, attractions, festivals, parades, meetings, conventions and other gatherings are canceled and schools, universities and businesses close, workers, suppliers, small businesses and the economy at large lose crucial consumer spending.

Help is on the Way

A $2.2 trillion economic rescue package, the largest in U.S. history, is on the way to Americans. However, it will take some time for the benefits to trickle down to intended recipients. There’s funding for hospitals, medical personnel and scarce medical supplies; financial aid for individuals and families, small business, industries, child care, and seniors assistance; emergency education; emergency transit needs; buffer capital for Treasury Department loans; deferments on federal student loan payments until September 30; emergency feeding programs and local food systems; $14 billion to replenish USDA’s Commodity Credit Corporation fund, and $9.5 billion for livestock, dairy and specialty crops (vegetables, fruits, nuts) which have not traditionally been included in USDA aid.

Tax Breaks for Small Business

The National Grange joined independent and small business interests on a letter to President Trump, House Speaker Pelosi and Senate Majority Leader McConnell urging them to take immediate action to minimize the number of businesses closed and workers unemployed. The group suggested Washington’s response include, but not be limited to:

• Readily accessible, unsecured credit for employers of all sizes to pay workers, rent and other operating costs during this crisis
• Suspend filing of business returns and the payment of all business taxes for the duration of the pandemic
• Amend the Tax Code to restore the ability for businesses to carryback net operating losses against previous year tax payments, suspend the limit on interest expense deductions for 2020,
• Allow businesses to fully deduct any losses incurred this year.

Keep the Mail Running

The National Grange and a group of business organizations petitioned the leadership of the Senate and House Homeland Security and Government Affairs Committees to include funding in the coronavirus relief package as necessary to keep the USPS fully functional during this crisis and beyond.

Rural is not a Virus Barrier

The Centers for Disease Control warns farmers, ranchers and rural residents that remoteness is not necessarily a barrier against COVID-19, citing the flu epidemic of 1916 that spread to the far reaches of Alaska. Rural residents are urged to follow the same precautions and sanitary measures as more densely populated areas.

National Emergency Boosts Rural Hospitals

Designation of a national emergency by President Trump gives over 1,350 rural Critical Access Hospitals better funding, higher Medicare reimbursement rates, expanded bed space and the ability to keep patients longer to combat the coronavirus. The emergency declaration waives existing rules that had restricted rural hospitals and opens up access to $50 billion in funds to provide health care professionals more flexibility to fight COVID19. The 126 rural hospitals that have closed since 2010 were negatively impacted by the whittling away of Medicare reimbursement and choices of states not to expand Medicaid.

Biopharmaceutical Industry Responds

These companies are coming together to share new technology, research and treatments in the battle against COVID-19 by:

• Screening global libraries of medicines to identify potential treatments
• Initiating clinical trials to test new and existing therapies
• Sharing results in real time with governments and other companies to advance the development of additional therapies
• Dedicating top scientists and investments in new technologies to speed the development of effective vaccines
• Donating supplies and medicines
• Coordinating with governments and diagnostic partners to increase testing capacity
• Keeping plants open to maintain a steady supply of medicines for patients
• Coordinating with governments and insurers to ensure that, when new treatments and vaccines are approved, they will be available and affordable for patients

Fix COVID-19 Access Barriers

The National Grange partnered with the patient advocacy community to urge governors, Medicaid directors, insurance commissioners and state boards of pharmacy to protect rare disease patients and high-risk populations during the COVID-19 crisis by:

• Require insurers to allow a one-time 90-day refill of covered prescriptions
• Require insurers to cover off-formulary prescription drugs if a formulary drug is not available
• Ensure prior authorization and reauthorization requirements do not restrict care and treatment
• Allow home infusion and injection services and appropriate reimbursement
• Extend appeal and fair hearing deadlines for patients seeking access to care and treatment
• Use flexibilities under section 1135(b)(1)(C) of the Social Security Act

Access to Vaccines

The National Grange and the patient advocacy community are urging the House leadership to quickly pass H.R. 5076, the Protecting Seniors Through Immunization Act. The legislation will make structural fixes to the inequities of Medicare Part D, including out-of-pocket payments and access to vaccines, that will provide substantial health and financial benefits to those over the age of 65.

Essential Industries

Medical, food and supply chain businesses are essential industries in a national emergency. This means that drug companies, medical manufacturers, farmers and ranchers, suppliers, truckers, food processors, distributors, and outlets are exempt from emergency restrictions so that medical supplies and food are available to citizens.

Workforce is a Challenge

Temporary guest workers have become critical to agriculture and food production and processing. When the national emergency was first declared, it appeared borders would be closed to a vital labor force as well. Following a frenzied couple weeks, the ag worker picture is a bit brighter. After first announcing all visas processing would be suspended, Mexico reconsidered when ag workforce groups, USDA and the State Department intervened. Mexico will now continue to process H-2A visas, the State Department will prioritize H-2A visa applications, and some returning H-2A workers may qualify for interview waivers. Still, agriculture fears the available H-2A workforce will be lower this year.

Telecom Industry Steps Up

As the COVID-19 pandemic became a national emergency in mid-March , FCC Chairman Pai, broadband and telephone service providers, and industry trade associations agreed to take the Keep America Connected Pledge to:

• Not terminate service for nonpayment of bills due to the pandemic
• Waive late fees because of economic circumstances related to the pandemic
• Open WI-FI hotspots to anyone who needs them

In addition, many providers said they would prioritize connectivity needs of hospitals and health care providers, work with schools and libraries on remote learning opportunities, and relax data caps and overage fees.

But the Digital Divide is Real

Rural students face a huge obstacle to distance learning as their schools and colleges close: connectivity. Nearly 12 million rural students lack reliable broadband access at home and won’t be able to access online lessons during prolonged closures. The lack of high-speed broadband into many rural areas prevents patients from virtual medical consultation and treatment during the COVID-19 pandemic isolation. While huge progress has been made with high-speed broadband deployment in the past few years, there are huge gaps in rural connectivity yet to be filled.

FCC Appoints National Grange President Huber

The Federal Communications Commission in consultation with Agriculture Secretary Perdue has established the Precision Agriculture Connectivity Task Force to learn from on-the-ground experiences of those using technology in modern farming. Four working groups have been appointed and National Grange president Betsy Huber will serve on the Accelerating Broadband Deployment on Unserved Agricultural Lands working group.

Another Broadband Innovation Approved

The National Grange commended the Federal Communications Commission for actions in March to clear regulatory barriers for greater use of unlicensed TV white spaces to deliver broadband service to rural America. Availability to TV white space technology for broadband has been a priority for the National Grange.

Better Broadband Mapping Data

How many rural Americans lack access to broadband internet? Well, somewhere between 17 and 42 million. So, does that means we don’t really know? The previous use of census data maps was largely inaccurate to reflect actual connectivity in rural areas. Bipartisan legislation passed by Congress and signed into law by the President on March 23 aims to correct that by creating more accurate mapping and better direct public and private investment in rural broadband deployments.

Export movement

In late March, USDA announced sales of 756,000 metric tons of corn and 340,000 metric tons of hard red winter wheat to China. Also, in late March, USDA announced China’s approval of 492 beef plants and 449 pork plants which will now eligible to ship product to China.

Canada Approves USMCA

Canada’s House of Commons and Senate hurriedly passed the U.S.-Mexico-Canada Agreement before going on recess to avoid exposure to the coronavirus. All three countries have now approved the trade pact which is considered a boost to American agriculture.

Funding for Export Markets

The National Grange and a large number of agriculture, fresh produce, commodity, forest and food organizations are asking Congress to fully fund USDA’s Market Access Program and the Foreign Market Development Program for FY ’20. Both programs are contingent upon 100 percent matching contributions from participating exporters.