On Tuesday, a news release from the House Appropriations Committee indicated that, “The House Appropriations Committee today released the fiscal year 2018 Agriculture Appropriations bill, which will be considered in subcommittee [on Wednesday]…The bill totals $20 billion in discretionary funding, which is $876 million lower than the fiscal year 2017 enacted level and $4.64 billion above the President’s budget request. The legislation prioritizes this funding in programs for rural communities, farmers, ranchers, food and drug safety, and nutrition for those in need.”
Farm Policy News
EPA Moves to Rescind “Waters of the U.S.” Rule
Coral Davenport reported yesterday at The New York Times Online that, “The Trump administration on Tuesday took a major legal step toward repealing a bitterly contested Obama-era regulation designed to limit pollution in about 60 percent of the nation’s bodies of water. The rule, known as Waters of the United States, or Wotus, had extended existing federal protections of large bodies of water, such as the Chesapeake Bay and Puget Sound, to smaller bodies that flow into them, such as rivers, small waterways and wetlands. Issued under the authority of the 1972 Clean Water Act, the rule has been hailed by environmentalists. But farmers, ranchers and real estate developers oppose it as an infringement on their property rights.”
Interest Deduction Tax Proposal Concerns Farmers
Richard Rubin reported yesterday at The Wall Street Journal Online that, “Republicans looking to rewrite the U.S. tax code are taking aim at one of the foundations of modern finance—the deduction that companies get for interest they pay on debt. That deduction affects everyone from titans of Wall Street who load up on junk bonds to pay for multibillion-dollar corporate takeovers to wheat farmers in the Midwest looking to make ends meet before harvest. Yet a House Republican proposal to eliminate the deduction has gotten relatively little sustained public attention or lobbying pressure.”
Farm State Senators to USTR: On NAFTA, “Do No Harm.”
The Senate Finance Committee held a hearing yesterday to examine the administration’s approach to trade policy, and heard testimony from U.S. Trade Representative Robert Lighthizer. Farm state lawmakers expressed concern regarding agriculture and NAFTA renegotiation, admonishing the executive branch to “do no harm” with respect to gains in agricultural trade that have resulted from the agreement. Timelines for the renegotiations were also discussed, as well as agricultural trade issues with China. Potential future bilateral trade negotiations were also mentioned.
As Mexico Explores Options to Reduce Reliance on U.S. Ag Imports, NAFTA Ag Ministers Meet in Georgia
Wall Street Journal writer Jacob Bunge reported late last week that, “Friction between the U.S. and Mexico over trade is starting to cut into sales for U.S. farmers and agricultural companies, adding uncertainty for an industry struggling with low commodity prices and excess supply. Over the first four months of 2017, Mexican imports of U.S. soybean meal—used to feed poultry and livestock—dropped 15%, the first decrease for the period in four years, according to data from the U.S. Department of Agriculture. Shipments of U.S. chicken meat fell 11%, the biggest decline for the period since 2003. U.S. corn exports to Mexico declined 6%. Mexico is the largest U.S. export market for those commodities.”
Rural America “Stranded in the Dial-Up Age,” Rural Broadband Issues
Last month, a Wall Street Journal article provided an in-depth look at a variety of statistical indicators from rural America in an article titled, “Rural America is the New, ‘Inner City.'” That article explained that, “In terms of poverty, college attainment, teenage births, divorce, death rates from heart disease and cancer, reliance on federal disability insurance and male labor-force participation, rural counties now rank the worst among the four major U.S. population groupings (the others are big cities, suburbs and medium or small metro areas).” The Journal continued its “One Nation, Divisible” series with a front page article in Friday’s paper that focused on a different aspect of rural development: Broadband Internet access.
Senate Ag Committee Holds Farm Bill Hearing Focusing on Agricultural Research
The Senate Ag Committee held a Farm Bill hearing yesterday that focused on agricultural research. Recall that the Committee convened its first Farm Bill discussion back in February in Manhattan, Kansas, and conducted an additional hearing on Farm Bill related issues last month in Frankenmuth, Michigan. And on May 25th, the Committee heard testimony from the USDA Chief Economist as it examined the state of the farm economy. Today’s update highlights some of the issues that lawmakers focused on at yesterday’s hearing, including the extension service, animal related diseases, and the Trump administration’s agricultural budget proposal.
At Senate Appropriations Hearing, Secretary of Agriculture Sonny Perdue Discusses White House Budget- Crop Insurance, Research, and Dairy
The Senate Appropriations Subcommittee on Agriculture held a hearing yesterday to discuss the President’s FY2018 budget request and heard testimony from Agriculture Secretary Sonny Perdue. Recall that late last month, Sec. Perdue discussed the executive branch agricultural budget outline before the House Appropriations Subcommittee on Agriculture. Recent news articles have documented concerns about the President’s budget proposal, particularly when it comes to crop insurance and the SNAP program (food stamps). Today’s update highlights three issues that Senators discussed at yesterday’s meeting: Crop insurance, federal agricultural related research, and dairy issues with Canada.
House Ag Committee Farm Bill Hearing- SNAP in Focus
The House Ag Committee of the 115th Congress has conducted full Committee and Subcommittee Farm Bill hearings over the past few months on a variety of issues, including: the farm economy; conservation; rural development and energy programs; specialty crops; livestock and dairy issues; farm policy and farm credit, and cotton. In addition, the Committee also heard perspective on the farm economy and farm policy last month from Secretary of Agriculture Sonny Perdue. Last week, the House Ag Committee continued its policy work by holding two hearings: one, which covered SNAP (food stamps) technology and modernization issues, and another that underscored the importance of international food aid. Today’s update focuses on the developments related to the SNAP program.
Agriculture “Holding Its Breath” as NAFTA Renegotiation Nears
Andrew Soergel reported earlier this week at U.S. News Online that, “As President Donald Trump’s administration sifts through its trade toolbox, preparing to tinker with the North American Free Trade Agreement, the agriculture world is holding its breath.”
U.S. Ag Exports to China: Soybeans and Corn
Mary A. Marchant indicated recently at Choices Online that, “International trade deficits have recently been reputed as ‘bad’ for the economy; however, agriculture has posted a trade surplus since 1959. For U.S. agriculture, trade represents 20% of farmers’ income on average, and more for specific commodities—70% for cotton and tree nuts; 50% for wheat, rice, and soybeans: and almost 20% for meat and dairy products. Thus, tossing trade would be comparable to U.S. farmers destroying 20% of their yields. China, which has advanced to become the United States’ largest agricultural export market in an unprecedented time frame, plays a key role in the economic wellbeing of U.S. agriculture.”
Concerns Over Trump Ag Budget Proposal Persist– Crop Insurance, SNAP
Recent news articles have pointed to ongoing concerns with respect to President Trump’s budget proposals, specifically when it comes to proposed cuts to crop insurance and the SNAP program (food stamps). Late last month, lawmakers on the House Ag Appropriations Subcommittee discussed these issues with Secretary of Agriculture Sonny Perdue, and today’s update provides additional perspective on these budget items.
Federal Reserve: Observations on the Ag Economy- May ’17
On Wednesday, the Federal Reserve Board released its May 2017 Beige Book update, a summary of commentary on current economic conditions by Federal Reserve District. The report included several observations pertaining to the U.S. agricultural economy.
Wall Street Journal Looks at Rural America, “The New ‘Inner City'”
Janet Adamy and Paul Overberg reported on the front page of Saturday’s Wall Street Journal that, “At the corner where East North Street meets North Cherry Street in the small Ohio town of Kenton, the Immaculate Conception Church keeps a handwritten record of major ceremonies. Over the last decade, according to these sacramental registries, the church has held twice as many funerals as baptisms. In tiny communities like Kenton, an unprecedented shift is under way. Federal and other data show that in 2013, in the majority of sparsely populated U.S. counties, more people died than were born—the first time that’s happened since the dawn of universal birth registration in the 1930s.”
Senate Ag Committee Examines the Farm Economy
Yesterday, the Senate Ag Committee held a hearing titled, “Examining the Farm Economy: Perspectives on Rural America,” where lawmakers heard testimony from four witnesses, including the Chief Economist from USDA, and a Federal Reserve Bank district economist. Today’s update provides an overview of yesterday’s meeting with particular emphasis on crop prices, land values, and trade. Recall that the House Ag Committee held a similar hearing on the farm economy back in February.
At Appropriations Hearing, Secretary of Agriculture Sonny Perdue Discusses White House Budget- Crop Insurance, SNAP
Yesterday, the House Appropriations Subcommittee on Agriculture held a hearing with Secretary of Agriculture Sonny Perdue to discuss the Administration’s priorities for the Department of Agriculture and to review the President’s proposed 2018 budget. Today’s update highlights two issues that lawmakers discussed at yesterday’s meeting: Crop Insurance and the SNAP (food stamps) program.
In Budget Proposal, White House Seeks Cuts To Agriculture
Reuters writer P.J. Huffstutter reported earlier this week that, “The White House budget on Monday proposed $46.54 billion in cuts to federal government funding for the agriculture sector over the next 10 years. President Donald Trump’s biggest cut would come in the form of a $38 billion bite out of farm supports, including new limits on federal subsidies for crop insurance premiums and caps for commodity payments.”
Ag Economy: Farmers “Battle for Profits”
Donnelle Eller reported on the front page of Sunday’s Des Moines Register that, “This year could be pivotal for many Iowa farmers, battling to turn a profit as they plant 23.4 million corn and soybean acres across the state. Financial pressure is beginning to show.”
NAFTA Renegotiation Formally Launched– Agricultural Perspectives
Shawn Donnan and Jude Webber reported on Thursday at The Financial Times Online that, “Donald Trump has fired the starting gun on renegotiations of the North American Free Trade Agreement with Canada and Mexico, with his administration notifying Congress on Thursday that it planned to begin formal talks as soon as August.”
Secretary Perdue Provides Outlook and Overview at House Ag Committee Hearing
Secretary of Agriculture Sonny Perdue testified before the House Agriculture Committee yesterday at a hearing on the “State of the Rural Economy.” Today’s update includes an overview of the testimony provided by the former GOP Governor of Georgia, as well as as some of the issues lawmakers addressed during the hearing, which lasted over three hours.