Policy Updates and Issue News May 2022

Washington Overview

Primary Season Heats Up

As Spring turns to Summer, many states are currently holding primary elections for the Fall midterms. In both the month of June and the month of August 15 different states will hold their primaries, meaning that many elected officials are turning their focus more towards winning reelection at home than writing legislation in Washington.  Both Republican and Democratic primaries this year feature fraught battles between the more moderate and extreme wings of each party with the results likely to have serious impacts on both the general election in the Fall and legislation to come in the next Congress.

Another Reconciliation Package?

Ever since the demise of Build Back Better, the party-line Democratic effort to pass a large package of social and climate spending funded through tax increases targeted towards corporations and the wealthy in late 2021, questions have swirled about the prospects of another bill targeting similar issues. In order to pass a new bill, Democrats would need to have the support of all 50 Democratic Senators including moderates such as Kyrsten Sinema (D-AZ) and Joe Manchin (D-WV) who sunk the previous package in December of 2021. So far, both Sinema and Manchin have publicly declared their interest in some sort of package which would include climate and energy provisions (though omitting previous social welfare programs) along with tax increases and other efforts to reduce the federal deficit and inflation such as new drug pricing regulations. However, as each day passes without concrete details of another package emerging, it becomes less likely that a package will be able to materialize before Congress turns entirely towards focusing on reelection and the Fall midterms.

Competition/Supply Chain Bill Negotiations Continue

As we reported in April’s View from the Hill, the House and Senate have moved to the negotiations phase on a large package which includes many provisions designed to address competition with China, and long-term supply chain issues. A bipartisan group of negotiators from the House and Senate have been meeting privately for the past month in an effort to reconcile discrepancies between their respective versions of the bill. So far, little has been released about the progress of negotiations; however Republican Senators have made clear that the final version must look closer to the bipartisan bill they passed in the Senate than the mostly Democratic House bill. It is unclear what the final timeline for the bill will be, but this is likely to be one of the last major bills that will be passed before the conclusion of this Congress.

Gun Control on the Agenda

Following a series of tragic mass shootings in recent weeks, Democrats in Congress and the White House have renewed efforts to pass gun control measures of varying severity. In the House, a variety of bills have emerged including measures to raise the age limit to purchase semiautomatic guns, ban new high-capacity magazines, strengthen federal firearm trafficking laws, prevent straw purchases, and address gun storage rules. For the most part these measures have seen little interest from Republicans and are not likely to receive bipartisan support in the House. Meanwhile in the Senate proposals have been less specific as small groups of bipartisan Senators seek to find some compromises on issues such as red flag laws and increased funding for mental health. Despite the bipartisan nature of conversations in the Senate it remains unlikely that anything will move forward. Nevertheless, Congress will spend significant time in the next few months on negotiations over new measures to address gun violence.

Agriculture and Food

Agriculture Supply Chain Disrupted by Railroads

Grain shipment delays have been threatening to add to food, fuel and feed shortages across the country.  The House Transportation and Infrastructure Subcommittee held a hearing in early May to receive testimony from the Surface Transportation Board (STB) and to explore solutions.  The National Grange and members of the Rail Customer Coalition wrote Subcommittee Chairman Payne stating their opinion that the STB has the necessary authority to ensure a competitive and reliable freight rail network and suggested the STB consider several reforms.  For now, the STB ordered the four major railroads, BNSF, CSX, Norfolk Southern and Union Pacific, to submit service recovery plans and temporarily report biweekly on their progress toward making improvements.

Food Inflation Investigation

The House Agriculture Committee passed the Meat and Poultry Special Investigator Act of 2022 by a vote of 27-21 to probe allegations of unfair practices by meat and poultry processors.  The Act would create a special investigator’s office at USDA in addition to its Packers and Stockyards Division.  A companion bill sponsored by Senator Tester (D-MT) is pending before the Senate Agriculture Committee.  The meat industry says the bill duplicates existing authorities at USDA and the Department of Justice and is unnecessary. Senators Warren (D-MA) and Rounds (R-SD) have introduced a Senate resolution which directs the Federal Trade Commission to report to Congress within one year on the extent of anticompetitive practices and violations of antitrust law on the beef packing industry.

Canada’s Dairy Quotas Fix Still Unacceptable

Secretary of Agriculture Vilsack says Canada’s second proposal to alter its tariff rate quotas on U.S. dairy products is still not good enough.  Following a trade panel dispute ruling in December, Canada agreed to increase U.S. access for milk, cheese, cream, skim milk powder, butter, ice cream and whey.  U.S. distributers say they are still largely shut out of the Canadian market.

Transforming Our Food System

The Biden administration plans to spend over $2.5 billion on a new “food transformation network.”  Major elements of the plan include $650 million for meat and poultry processing projects, $600 million to improve the food supply infrastructure, and $300 million for organic farming transition.  Additional projects will target the creation of regional food business centers, reducing food deserts, reducing food loss and waste, and help for fruit and vegetable growers to comply with food safety regulations.

Conservation and Environment

Proposed Rulemaking Adds Regulatory Burden

A proposed regulation on climate disclosure aimed at publicly traded companies could add another regulatory burden on farmers and ranchers.  The Securities and Exchange Commission would like to require public companies to disclose their Scope 3 greenhouse gas emissions all the way down their supply chain.  This means that even the smallest family-owned farm and ranch would be required to supply a significant amount of climate-related compliance information which they are not equipped to do.  The National Grange and other representatives of the agriculture community are encouraging members of the House to sign on to a letter to SEC Chairman Gensler and his fellow commissioners suggesting the time, energy and cost of complying with this regulation is an inappropriate burden on farmers and ranchers.

USDA Allows Early CRP Termination

In an effort to stimulate additional food production, the USDA will allow Conservation Reserve Program contract acres expiring September 30 to terminate early without penalty.  This will allow producers to hay, graze, till or plant a fall-seeded crop prior to October 1.

Ag Research Can Improve Climate Outcomes

The National Grange and a diverse group of cosigners sent a letter to the appropriations committees’ leadership on Capitol Hill to request USDA research funding in the FY ‘23 spending bill be increased to include development of technologies and practices that improve climate resilience and sustainability on farms and ranches.  Agriculture production accounts for about 10 percent of total U.S. greenhouse gas emissions and that can be reduced with the proper tools.

Direct Air Carbon Capture

The Department of Energy will fund $3.5 billion in carbon dioxide removal by direct air capture.  The plans are to develop, build and maintain giant machines to suck greenhouse gas out of the atmosphere and permanently store carbon dioxide.

Health Care

Leverage Federally Qualified Health Centers in Rural Areas?

Federally Qualified Health Centers (FQHCs) provide comprehensive care on rural and other underserved areas.  They grew out of President Johnson’s War on Poverty over fifty years ago.  Today, there are 1,368 such centers in the country but they cannot begin to fill the health care desert in rural America.  FQHCs receive grant funding from the Health Resources and Services Administration plus reimbursement from Medicare and Medicaid.  Therefore, FQHC’s can serve rural populations without the financial strain faced by rural hospital systems.  There are also over 12,000 additional private similar providers across the country and many of these are struggling to survive financially.  Is it possible for FQHCs and rural health systems to collaborate and cooperate for sustainable patient care?  Fortunately, there already examples of success stories in several parts of the country where FQHCs have strategically taken over some critical services while the private rural health care systems retained others.

Patient Groups Say Pharmacy Benefit Managers Harm Drug Access and Affordability

The National Grange and over 100 patient groups filed comments with the Federal Trade Commission on the impact of Pharmacy Benefit Manager (PBM) practices and the ability of patients to access and afford their prescription medications. While originally intended to process pharmacy claims, PBMs have evolved into one of the largest drivers of determining prescription access and affordability.  The FTC will investigate the impact on patients.

Grange Helps Launch Hear Well Campaign

The National Grange joined the Hearing Loss Association of America, the Hearing Industries Association, and numerous medical and patient groups to launch the “Hear Well” campaign.  The purpose of the campaign is to educate the public on hearing loss and the critical role hearing professionals play in the diagnosis and treatment of this common medical condition.  An estimated 48 million Americans have some form of hearing loss, making it one of the most prevalent medical conditions in the country.

Telecommunications

Unserved Must Get Broadband First

The National Telecommunications and Information Administration (NTIA) is ready to issue its guidance to the states as they apply for the broadband deployment funds provided by the Infrastructure Investment and Jobs Act.  The National Grange joined 34 rural, agriculture, business, education, health care and veterans’ groups to reiterate the intent of Congress to NTIA head Alan Davidson.  Congress was clear that the $65 billion in broadband funding was to connect the unserved first and the underserved next before all other needs.   Congress also mandated a technology neutral approach to making these broadband connections so that the most appropriate and cost-effective technology for the area can be used by the internet provider.

New Program Cuts Internet Costs

The Biden Administration has rolled out the Affordable Connectivity Program that will be available to customers of 20 internet providers who cover about half of the country’s rural residents.  Cost savings will be up to $30 per month.  Eligibility will be determined by current participation in several government programs such as SNAP, Women, Infants and Children Program (WIC), and free and reduced school lunches.

More

Water for the West

The drought-stricken West will be receiving $240 million from the Interior Department’s Bureau of Reclamation to repair existing worn and failing water infrastructure in 12 western states.  Repairs will include irrigation systems, canal liners, locks and other similar upgrades.  California will have 20 of the 46 approved projects mostly in the Yuma Valley area served by the Colorado River.  Additional projects include the Glen Elder Dam in Kansas, Deer Creek Dam and Davis Aqueduct in Utah, Truckee Canal in Nevada and the New York Canal in Idaho.

Perspective

“It is the farmer who faithfully plants seeds in the Spring, who reaps a harvest in the Autumn.”  ~   B.C. Forbes   ”

“Bad seed is robbery of the worst kind: for your pocket-book not only suffers by it, but your preparations are lost and a season passes away unimproved.”   ~  George Washington

“To own a bit of ground, to scratch it with a hoe, to plant seeds, and watch the renewal of life, this is the commonest delight of the race, the most satisfactory thing a man can do.”  ~  Charles Dudley Warner

“When people try to bury you, remind yourself you are a seed.”  ~  Charles Dudley Warner.