July 25, 2022

Contents

• Big Picture Outlook
• Thoughts from Team Torrey
• The Week Ahead
• A Quick Look Back

Big Picture Outlook

Farm Bill

On Wednesday, July 20, the House Agriculture Subcommittee on General Farm Commodities and Risk Management held a hearing to discuss the importance of crop insurance and the vital role it plays in providing risk management to farmers and ranchers across the country. Witnesses agreed that crop insurance is a critical risk management tool for farmers and urged Congress to protect the program from funding cuts in the next farm bill.  On Friday, July 22, another listening session in the series entitled “A 2022 Review of the Farm Bill: Perspectives from the Field” was held in Washington state. Stakeholders expressed concern about a variety of topics including conservation programs, SNAP, supply chain issues, and funding for small, beginning, and minority operations. Today, Rep. Angie Craig (D-MN) hosted a listening session in Minnesota.

Appropriations

The House of Representatives on Wednesday passed a “minibus” package of six annual appropriations funding bills for fiscal year 2023 with a vote of 220-207. Included in this package is the appropriations bill that provides funding for agriculture, rural development, Food and Drug Administration, and related agencies. Spending on these areas totals $195 billion, with $27.2 billion in discretionary funding. While total USDA-FDA funding is a $2 billion increase from last year, the bill is still smaller than the White House’s original proposal. While funding is focused on nutrition programs, notably, $347.4 million was included for climate-related programs. In addition, the bill includes no cuts to crop insurance. The Senate has not yet introduced its FY2023 spending bills but is expected to do so in the weeks ahead. With the September 30 deadline for funding the government about two months away, Congress is expected to focus on a continuing resolution after the August recess before reconciling differences in House and Senate funding bills later this year.

Fertilizer Tariffs  

The U.S. International Trade Commission (ITC) unanimously voted against imposing tariffs on fertilizer from Russia, Trinidad and Tabago. The decision, while unexpected, was met with appreciation from farm groups who were concerned that the expected tariffs would create additional strain on farmers who are managing increased costs for inputs, including fertilizer.

Trade

On Thursday, July 28, the Senate Finance Committee will hold a hearing to discuss the nomination of Douglas McKalip to be Chief Agricultural Negotiator in the Office of the United States Trade Representative. This hearing comes on the heels of pressure from lawmakers and farm groups alike to pursue traditional free trade agreements.

The Week Ahead

Wednesday, July 27 

• 10:00 AM EST: House Foreign Affairs holds a hearing to discuss challenges facing global food security
• 10:15 AM EST: House Education and Labor Committee will markup the Healthy Meals, Healthy Kids Act

Thursday, July 28 

• 10:00 AM EST: House Agriculture Subcommittee on Biotechnology, Horticulture, and Research holds a hearing to discuss “An Examination of the USDA Hemp Production Program”
• 10:00 AM EST: Senate Finance Committee will hold a hearing to examine the nomination of Douglas J. McKalip, of the District of Columbia, to be Chief Agricultural Negotiator, Office of the United States Trade Representative, with the rank of Ambassador
• 10:00 AM EST: House Select Committee on Economic Disparity and Fairness in Growth holds a hearing to discuss economic security programs supporting American livelihood

To see a full list of House and Senate Committee business, visit here.

A Quick Look Back

“USDA Announces Increased Funding for School Meals, Child and Adult Care Meals” USDA

“Moving Stepwise Toward State Clean Fuel Standards” Ethanol Producer Magazine

“Biden’s New Steps on Climate to Fall Short of ‘Emergency’ Designation” Reuters

“An Economic Analysis of Payment Caps on Crop Insurance Subsidies” National Sustainable Agriculture Coalition

“Russia Attacks Odessa Port a Day After Signing Grain Deal, Ukraine Says” The Washington Post

“Mexico Is Seen Risking $30 Billion Hit in US-Canada Trade Spat” Bloomberg

“Heat Wave Hits US Farms, Stressing Crops and Ranchers’ Herds” Fox Business