Policy Updates and Issue News – March 2015
Broadband / Net Neutrality
National Grange wrote an op-ed calling for any new net neutrality regulations to find ways that increase both innovation and investment. High-speed mobile applications and broadband services are playing an increasingly vital role in agriculture, telebusiness, telemedicine and teleeducation. Yet rural Americans are among the most underserved consumers of high-speed Internet. The Federal Communications Commission (FCC) has announced its intent to regulate broadband services using outdated 1934 landline rules. The regulatory move pits 150 current internet companies against startup company executives and dedicated Web activists. While net neutrality sounds good at first blush, this latest proposal could actually slow rural high-speed broadband connectivity. This move is likely to perpetuate litigation and may have to eventually be pitched to Congress for a workable long term solution. The National Grange has long advocated that facts and evidence should guide the government’s decision- making process on any matter. We will stay close to the highly controversial net neutrality issue and strongly advocate for state-of-the –art access for small towns, rural communities and other underserved areas.
Immigration
The lack of definitive solutions to the nation’s immigration crisis from Congress is frustrating for agricultural producers, small businesses, processors, law enforcement and local citizens. A Texas judge’s recent order delayed some of President Obama’s executive actions on immigration. For the time being, this court order will discourage undocumented agricultural workers from leaving agriculture to seek better paying jobs. Employers also report evidence of an enforcement shift away from farms and businesses to the border. Although the court order and enforcement shift may relieve fears of a labor shortage for this growing season, serious concerns remain for agriculture. The House Judiciary Committee has approved H.R.1147, the Legal Workforce Act which would mandate employers to E-Verify the documentation of prospective employees. Unfortunately, as stand-alone legislation, E-Verify is problematic for agriculture until Congress addresses agricultural worker needs and creates a new guestworker program for the future. The Grange will continue to advocate for a strong and workable guestworker program to that is compatible with E-Verify for agriculture. Meanwhile, the Government Accountability Office (GAO), reports about half the employers who use the H-2A and H-2B visa programs rely upon third party agents rather than hiring directly. GAO investigators have found evidence of illegal fees, the promise of jobs that don’t exist, and failure to disclose employment information including wage levels.
Agriculture Export Promotion
The National Grange policy supports free and fair trade of agricultural products. Grange cosigned a letter to Congress urging full funding for Foreign Market Development and Market Access Programs for U.S. agricultural products on the Omnibus appropriations bill funding the Federal Government for FY ‘15. Full funding was approved. The Grange is currently supportive of Congress restoring Trade Promotion Authority (TPA) to the President. This legislation authorizes the President to negotiate trade pacts such as the pending Trans Pacific Partnership (TPP) then take it to Congress for approval. Trade Promotion Authority has both bipartisan support and bipartisan opposition.
Highway Trust Fund
Grange members were part of the effort last fall to authorize short term funding for the defunct Highway Trust Fund which allowed the revitalization projects on America’s highways and bridges to continue. Those monies run out in May and Congress is already arm wrestling about where to get future revenue to build and maintain the nation’s highways and bridges. Gas and diesel taxes, which haven’t been increased since 1993, are the traditional source. Additional potential sources being discussed are repatriating U.S. corporate taxes from abroad and increasing and redirecting certain U.S. Customs fees.
COOL
National Grange cosigned a letter to the Senate Appropriations Committee opposing inclusion of any Country of Origin Labeling “fix” language in the Omnibus government funding package. Cosigners urged Congress to wait for the WTO appeal ruling. No COOL language was included in the final appropriations legislation. Appearing at recent hearings on Capitol Hill, Agriculture Secretary Vilsack has repeatedly said, if the U.S. loses the appeal before the World Trade Organization (WTO), Congress must rewrite the law; the Secretary maintains he does not have the authority to administratively make the changes WTO may demand.
Dietary Guidelines
First issued in 1977, Dietary Goals for the United States was intended to give Americans guidance on nutritious and healthy eating habits. Dietary Guidelines, as it has since become known, is reissued every five years and has become the benchmark document for public feeding programs (SNAP, WIC, school lunch, military, etc.). This year, the independent Dietary Guidelines advisory panel convened by USDA and HHS took a paradigm deviation from the traditional role of the panel in years past; they added the environmental sustainability of foods to their agenda and recommendations on human nutrition. Of course that drew a shock wave of reaction from agriculture, the food industry, policy wonks, scientists and politicians. The final official Dietary Guidelines will be drafted by USDA and HHS. Secretary Vilsack has assured Congress he will be personally involved in writing the new dietary guidelines and will keep them narrowly focused on nutrition.
Health Insurance Tax
National Grange cosigned a letter of support to bipartisan sponsors of legislation to repeal the “HIT” tax. This is a punitive and hidden tax on small employers and the self-employed in the Affordable Care Act in the form of higher premiums for private insurance coverage.
Medicare Part D
National Grange cosigned a letter to Congress highlighting the success of the Medicare prescription drug benefit (Medicare Part D) and urging their opposition to proposals that weaken the program for seniors and individuals with disabilities. The Administration has proposed a mandatory Part D rebate which is essentially a tax that goes directly to the U.S. Treasury and would not be used for new drug development or to reduce prescription costs to the patient.
Ensuring Seniors Access to local Pharmacies Act
National Grange cosigned a letter supporting bipartisan H.R. 793 introduced by Griffin (R-VA) and Welch (D-VT). The bill would expand access to seniors in medically underserved communities by allowing any pharmacy willing to accept a plan’s terms to participate as a preferred provider.
Postal Service Cuts
National Grange publicized an article by Postal Regulatory Commissioner Goldway highlighting service reductions and plant closings in small towns and rural areas. Commissioner Goldway suggested that before proceeding with these reductions in service, the Postal Service should offer well-supported projections of the impacts and solid estimates of financial savings before embarking on this new round of service cuts and closings.
Rare and High Cost Drugs
National Grange authored an op-ed calling for an audit and increased oversight of the 340B drug pricing program. Congress created the 340B program to help medically at-risk, vulnerable, low income patients gain access to expensive specialty medicines by requiring drug manufacturer to provide prescription discounts to these individuals. Increasing numbers of hospitals and contract pharmacies are reportedly qualifying for discounted medications but may be selling them to regular patients at full price.
Rural Veterinarians
National Grange cosigned a statement of support for the bipartisan Veterinary Medicine Loan Repayment Program Enhancement Act. Even though graduating veterinarians may qualify to have their vet school loan forgiven by working in rural areas for at least three years, there is a 39 percent withholding tax levied on the loan. This Act would exempt loan repayments from withholding tax so underserved areas can actually get a veterinarian.
Taxes
National Grange supported House passage of H.R.636 to make permanent the $500,000 same-year capital expenditures write-off for agriculture and small business. Favorable Senate action is expected as well. National Grange will also cosign a letter supporting the introduction of the Death Tax Repeal Act of 2015 in both the House and Senate when the cosponsors are ready.
Farmers Market Growth Slows
A new study by USDA finds that the rate of growth in the number of farmers markets has slowed dramatically in the last five years. There seems to be evidence of market saturation. Shoppers in many parts of the country are able to choose from several farmers markets on any weekend. On the other hand, the study found that sales at so-called “food hubs” grew dramatically. Hubs are independent direct-to-consumer groups and businesses that connect farmers with consumers and include direct sales to restaurants and feeding programs such as hospitals and school systems.
Crop Insurance for Fruits and Vegetables
In response to the 2014 Farm Bill, USDA is proposing changes to crop insurance that would expand crop insurance coverage to many fruits and vegetables. The proposed rule would require the crop insurance board to consider 1) uninsured and underserved commodities, 2) inadequate coverage or low levels of participation under existing insurance, and 3) other relevant considerations.
McDonald’s to Source Antibiotic-Free Chicken
Within two years, McDonald’s will only buy chicken raised without antibiotics that are important to human medicine. Chicken producers have already been working with the Food and Drug Administration (FDA) to phase out the use of human medicine antibiotics for growth promotion purposes in chickens.
Congress will be Home for Easter
Former Speaker of the House of Representatives Tip O’Neil (D-MA) was fond of giving political advice. One of his favorites quips was “All politics is local”. Congress will be in recess the week of March 30. That’s a great time to catch up with your Representatives around events in their home district or in their district office. Want to raise Grange’s profile? Let them know they have Grangers back home.
