Policy Updates and Issue News December 2022

Washington Overview

Congress Passes Government Funding

As 2022 and the 117th Congress came to a close in late December, after lengthy negotiations Democrats and Republicans agreed on a final bipartisan compromise in the form of a $1.7 trillion omnibus government funding bill. In doing so, Congress was able to avoid a government shutdown for another year and increase spending on both non-defense discretionary programs at $772.5 billion and defense funds at $858 billion.

As the last piece of legislation to move through Congress before the conclusion of the current term, the bill also included many provisions inspired by legislation that had been introduced this Congress but which would expire if not acted on before the end of the year. Major examples of these provisions include $45 billion in assistance to Ukraine, increased disaster aid, overhaul of Congressional procedures related to electoral vote counting, changes to Medicaid and Medicare, increased funding for higher education, increased financial support for active duty military and veterans, strengthened nutrition assistance programs, assistance for child care and utility bills, adjustments to retirement savings, investments in affordable housing, and increased resources for mental health and substance abuse programs.

Beyond the more general changes made in the spending bill, a number of provisions were included of particular interest to the National Grange and rural America. The bill included some significant agriculture related provisions including the Growing Climate Solutions Act, which would establish USDA regulated voluntary carbon credit markets to reward farmers for actions they take to decrease emissions, and the SUSTAINS Act, which would allow private entities to fund conservation projects with matching support from USDA, both of which the National Grange supported. Yet more, the bill includes funding increases for agricultural research on energy efficiency, genetically modified/engineered organisms, and more. The bill also included significant disaster relief targeted towards agriculture, increases in foreign food aid purchases, reauthorization of Pesticide Registration programs and deadline extension for pesticide review, and increased funding for farm business programs.

Outside of agriculture, important healthcare and telecommunications provisions which would affect rural America were included. The spending bill includes key extensions of the Federal Communications Commission’s spectrum auction authority and flexibilities which have allowed for the increased use of telehealth though Medicare. As well, the bill included funding for Medicare support for an increased variety of healthcare services including vaccines and mental health coverage. Other mental and behavioral health programs which received increased support included opioid abuse programs and funding for mental health programs targeting youth and underserved communities. Finally, the bill included funding for hospitals at risk of closure, many of which exist in rural America.

Agriculture and Food

Additional Challenge to Canadian Dairy Quotas

The U.S. Trade Representative is seeking a new dispute settlement resolution to the ongoing dairy trade dispute with Canada.  A three-member US-Mexico-Canada Agreement dispute panel agreed in December 2021 that Canada was manipulating the quota system.  The U.S. has rejected successive Canadian proposals to address the dispute panel’s decision and is broadening the scope of its challenge to Canadian restrictions on U.S. dairy exports.

More Liability Protection for Donated Foods

In late December, Congress passed legislation to improve protection for farmers, processors, supermarkets and other businesses that donate food.  The bill is designed to extend liability protection to donors when food is given directly to a person in need rather than a nonprofit intermediary. It explicitly states, “A qualified direct donor shall not be subject to civil or criminal liability arising from the nature, age, packaging, or condition of an apparently fit grocery product that the qualified direct donor donates in good faith to a needy individual at zero cost.”

Farm Share of Food Dollar Hits Historic Low

USDA says that farmers and ranchers now get 14.5 cents from every food dollar spent by consumers.  That’s down from 15.5 cents in 2020. Eating out at higher prices apparently caused most of the farm share decrease along with supply chain disruptions, avian influenza and war in Ukraine.

“Smart” Agriculture Drawing Billionaire Investments

Billionaires historically have used their investment capital to tackle public policy issues.  Today 95% of billionaires see it as their responsibility to use their business resources to generate impacts to global challenges.  Areas where billionaires see the greatest potential to make positive impacts are smart agriculture, clean water, poverty alleviation, green energy and education.  Smart agriculture leverages technology to improve productivity and reduce environmental damage.

Foreign Ownership of Farmland Update

Foreign entities own 37.6 million acres of U.S. agricultural land which includes forest land, crop land and pasture land.  More states are becoming concerned as farmland sales in their state go to foreign buyers.  Representative Dan Newhouse (R-4-WA) and 50 other members of Congress in September asked USDA and other agencies to take action to address potential national security risks that might arise from such transactions.  Foreign countries with the largest shares of U.S. land ownership are Canada followed by Netherlands, Italy, United Kingdom, Germany and China.  Real estate brokers say foreign investors generally have no connection to agriculture but see U.S. farmland as the best place to invest their money.

Climate and the Environment

Billionaires Guiding Climate Policy?

Though not elected to any office, the world’s billionaires may have more environmental influence than many heads of state.  The Washington Post says their role as shadow policymakers has grown amid the evolution of the Biden administration climate agenda and the recent U.N. Climate Change Conference in Egypt.  Billionaire engagement in climate action is growing as nations lean on private companies and philanthropists willing to make big bets on decarbonization.  According to the Post, the United States has failed to muster the political support for regulations that limit emissions and force companies to reshape their operations, so the government is looking to billionaires to help redirect the economy to where mainstream science says it needs to go.  Billionaires are investing heavily in technology development such as carbon capture, traveling wave nuclear reactors, green hydrogen, carbon credit trading and more.

Climate Projects Target Minority Farmers

Agriculture Secretary Tom Vilsack has announced project grants to develop markets for lower-carbon farm commodities in an effort to ensure minority farmers benefit from shifts in agricultural practices to address climate change.  A total of 65 projects will receive $325 million to measure and verify the impact of climate-related farm practices and to test ways to market commodities produced with a smaller carbon footprint to apparel and food companies.  The project’s partners include the Federation of Southern Cooperatives, Intertribal Agriculture Council, South Carolina Black Farmers Association, Kansas Black Farmers Association, Field to Market, Prairie View A&M, Alcorn State University, Lincoln University and more.

Health Care

USDA Joins Cancer Moonshot Initiative

The Moonshot is the administration’s goal to reduce the death rate from cancer by 50% over the next 25 years.  As part of the Moonshot, Secretary of Agriculture Vilsack will establish an Agricultural Science Center for Nutrition and Diet.  Its purpose will be to bring together scientists, partner organizations and communities to focus on science-based solutions that improve the health and well-being of Americans, particularly in underserved communities.  According to the World Cancer Research Fund, 20-50% of all cancer cases are preventable by following a healthy diet and active lifestyle.

Food As Medicine A Farm Bill Priority

Senate Agriculture Committee member Cory Booker (D-NJ) aims to incorporate the concept of “food as medicine” into the upcoming 2023 farm bill.  His aim is to increase consumption of fruits and vegetables. One of Booker’s suggestions is for USDA to create a new specialty crop food box program to provide locally sourced fruits and vegetables to Medicaid patients.  Fellow committee member Roger Marshall (R-KS), a physician, says he plans to introduce legislation with Chairwoman Debbie Stabenow (D-MI) for a large-scale pilot program to evaluate the cost savings and health benefits to Medicare recipients who are sent home from hospital stays with medically tailored meals.

Telecommunications

Look for Broadband Coverage Gaps

If you don’t have high speed internet coverage at your home, farm, ranch, business or community, you need to become involved in broadband map verification.  In late November, the Federal Communications Commission released updated broadband coverage maps which more precisely pinpoint gaps in broadband access.  These maps are much improved compared to previous maps, but they aren’t perfect.  After a month of review by the telecom industry, there are still areas misidentified on the new maps.   If you do not have high speed internet, Google and contact your state broadband agency.  Your agency can verify or challenge the accuracy of your area map and clear the way for internet service providers to bring service to you.  Feedback from local Granges indicates that the new broadband maps still contain inaccuracies over the rural landscape.

Senate Hearing Raises Concern

At a December hearing of the Senate Subcommittee on Communications, Media, and Broadband, witnesses told Senators that the “once-in-a-generation” broadband expansion funding approved last year by Congress will only close the digital divide when underserved communities gain full connectivity.  The witnesses voiced concerns about billions of dollars in resources failing to go to the neediest areas due in part to inadequate coordination by government agencies.  Success will require disciplined execution between over 100 programs administered by a dizzying array of government agencies, according to witnesses.  National Grange voiced similar challenges following passage of the 2021 Infrastructure Investment and Jobs Act which provided this internet funding.

Of Interest

The American Chestnut is Coming Back

During the first half of the 20th century, billions of American chestnut trees died from an exotic fungus blight brought to this country on Japanese chestnut stock.  The trees not only supplied nuts but also wood for the home, coffin and furniture construction, and the raw material for making railroad ties, shingles, telephone poles, fences and leather tannins.  The USDA just released a draft environmental impact statement and plant pest risk assessment that, if approved, would allow the unrestricted planting of blight-tolerant GE chestnut trees on public and private lands.

Perspective
“Blow, blow, thou winter wind, thou art not so unkind as man’s ingratitude.”   ~   William Shakespeare

“The hard soil and four months of snow make the inhabitants of the northern temperate zone wiser and abler than his fellow who enjoys the fixed smile of the tropics.”  ~  Ralph Waldo Emerson

“A snow day literally and figuratively falls from the sky-unbidden-and seems like a thing of wonder.”  ~  Susan Orlean

“In winter, I plot and plan. In spring, I move.”  ~  Henry Rollins