October 3, 2023
Contents
- What We’re Watching
- Notable News
- Upcoming Hearings
- Contact the Team
What We’re Watching
The Torrey Advisory Group team extends our deepest condolences to the loved ones, colleagues, and staff of Senator Dianne Feinstein (CA).
Congress
Appropriations
Congress narrowly avoided a shutdown this weekend, passing the House version of a Continuing Resolution (CR) to keep the government funded until November 17. The CR continues funding for appropriated accounts and provides the US Department of Agriculture (USDA) with authority to utilize funds for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) in order to maintain participation. It also included funding for direct and guaranteed farm loans and an extension for the Livestock Mandatory Reporting program. Notably, the CR did not contain funding for Ukraine aid or border security.
As of October 3, the House has only passed four of its twelve FY24 appropriations bills: State, Homeland Security, Defense, and Military Construction-VA. The House Agriculture-FDA appropriations bill for FY24 was defeated last Thursday in a vote of 191 – 237 – due in large part to abortion provisions added to the FDA part of the bill – and its fate remains unclear. The Senate has yet to approve any of its twelve appropriations bills after a three-bill minibus stalled but could regain momentum with the CR out of the way.
On Monday evening, Congressman Matt Gaetz (R-FL) made good on his months-long threats to Kevin McCarthy’s (R-CA) speakership and introduced a motion to vacate, which will have to be brought to a vote within two legislative days. As of Tuesday at noon, there has not been a scheduled vote, but this will continue to develop over the week. A motion to vacate will dramatically change floor schedules, delay other votes, and diminish the House’s ability to advance additional spending bills before the November 17th CR deadline. Both the Republican Conference and the House Democratic Caucus are currently having respective meetings on how to vote.
Farm Bill
The 2018 Farm Bill expired on September 30th with no path forward for a new bill or an extension. Many programs within the bill may not feel the impact of the bill expiration until the December 31st deadline. However, some programs are already being affected as a result of the expiration. For example, a ban that prohibits swipe fees on retailers who accept the Supplemental Nutrition Assistance Program (SNAP) Electronic Benefits Transfer cards could introduce new costs to grocers, mostly impacting smaller brick and mortar stores.
In the House, Agriculture Committee Chair GT Thompson (R-PA) has been clear he will wait to introduce farm bill text for a committee mark-up until there is a week of designated time on the House floor – which has become more difficult given the ongoing appropriations process. In the Senate, Agriculture Committee Chair Debbie Stabenow (D-MI) and Ranking Member John Boozman (R-AR) have been in public disagreement over whether Inflation Reduction Act conservation funding should be allowed in the farm bill. Both House and Senate dynamics could indicate a possible extension, but how long the extension will last is still uncertain.
Bill Introduced on Congressional Trade Task Force
Senators Bill Cassidy (R-LA), John Boozman (R-AR), Tommy Tuberville, (R-AL), Joni Ernst (R-IA), Cindy Hyde-Smith (R-MS), and Roger Wicker (R-MS) are co-sponsoring the Prioritizing Offensive Agricultural Disputes and Enforcement Act. It was also introduced in the House by Congressman Rick Crawford (R-AR). The bill would call for the creation of a task force of US Department of Agriculture (USDA) and US Trade Representative (USTR) members to identify agricultural trade barriers, specifically naming the barriers with India on rice and wheat, that should be challenged at the World Trade Organization. The task force would have to engage with Congress and proactively monitor upcoming Chinese industrial subsidies.
House Agricultural Labor Survey Deadline
The House Agriculture Committee Labor Working Group has been requesting feedback from industry stakeholders on workforce issues. To ensure that responses are considered before the report is written, the ideal deadline was September 29th and therefore responses moving forward may not be considered.
Administration
FDA Releases New Chapters for Human Food Rule
The Food and Drug Administration (FDA) has released two new chapters for the Draft Guidance for Industry: Hazard Analysis and Risk-Based Preventative Controls for Human Food. The guidance is designed to help food facilities comply with preventative controls for the human food rule, which is mandated by the FDA Food Safety Modernization Act. One chapter, Chapter 11 – the Food Allergen Program, establishes a food allergen program that protects food from cross-contact and labeling. The other chapter, Chapter 16 – Acidified Foods, would provide practices for manufacturers of acidified foods to meet regulations.
USDA Expands Climate-Smart Practices Under IRA Eligibility
The USDA will be making $3 billion available for agricultural producers and forest landowners to participate in voluntary conservation programs for fiscal year 2024 through funding provisions in the Inflation Reduction Act (IRA). Eligible programs have been expanded to now include livestock feed management, waste storage facility development, and waste separation; irrigation practices; and cover cropping. This comes as the Natural Resources Conservation Service (NRCS) saw record levels of interest through 2023.
Judge Rules Allowing Department of Labor H2-A Wage Changes
A new rule from the Department of Labor will allow wage rates for H2-A workers to be calculated based on USDA’s Farm Labor Survey of farmworker wages. For some jobs, such as truck drivers, the Bureau of Labor Statistics will be conducting the wage survey. If there are jobs with more than one classification, then the department will base the wage rate off the highest wage of the applicable job. Recently, a federal judge rejected an injunction request to stop the enforcement of this new rule, citing that they had not shown why they were likely to succeed on the merits of the case.
Energy Department Confirms GREET Model for Sustainable Aviation Fuel
While the Treasury Department has not yet released guidance on Section 40B, a sustainable aviation fuel tax credit that was included in the Inflation Reduction Act, it has been confirmed by a Department of Energy official that the GREET model will be included as an option for lifecycle modeling of feedstocks. “Both models will be options to use, whichever works best for your particular pathway,” said Jim Spaeth, manager of the System Development and Integration Program in DOE’s Bioenergy Technologies Office. This confirmation comes after months of lobbying from airlines and agriculture groups for the use of the GREET model due to it’s more accurate and up-to-date representation of feedstocks such as corn and soybeans.
Notable News
- Republican Moderates Stymie McCarthy on Agriculture, FDA Bill – The Hill
- Detroit Small Grocers Worry Government Shutdown Impact on Food Stamps Could Put Them Out of Business – CBS Detroit
- Takeaways from the Second Republican Presidential Debate – CNN
- Chile Trade Mission Comes at Momentous Time for Country, US Ag – AgriPulse
- ‘Rome’s Burning’: Small Farmers Complain Biden Administration is Fiddling as They Vanish – Politico
- Shutdown averted: What now? – The Hill
- In a Remote Patch of California, A Battle is Raging Over Carrots – Associated Press
- The Life and Legacy of Dianne Feinstein – New York Times
- Newsom picks Laphonza Butler as Feinstein replacement – Politico
Upcoming Hearings
Wednesday, October 4
- 2:00 PM: The Senate Commerce, Science, and Transportation Committee will hold a hearing on “CHIPS and Science Implementation and Oversight”
Contact the Team
Feel free to contact Michael Torrey, Tara Smith, Cassandra Kuball, Barbara Patterson, Katie Naessens, Caroline Snell, Danielle Nelson, Julie McClure, Ashley Smith, Olivia Lucanie, Heath Brandt, or Tracy Boyle with any questions or comments.
Food and agricultural organizations that need the right results in Washington, D.C. can trust Torrey Advisory Group to put its relationships, reputation, and expertise to work on your issue. Since 2005, the firm has successfully provided legislative and regulatory guidance, issues management, and association management services to a wide variety of clients. Learn more about us at torreydc.com.
