NPPC Releases New Economic Contributions Report | Pork Industry Representatives Lobby for New Farm Bill This Year | Federal Court Upholds Massachusetts Question 3 | NPPC Comments on Efforts to Foster Trade in Western Hemisphere | Capital Update on Modified Schedule as Congress Takes Break

NPPC Releases New Economic Contributions Report

What happened: NPPC released a new economic contribution report detailing the significant impact America’s pig farmers have on the agricultural and overall economy in the United States. The report highlights the pork industry’s value chain contributions and trends in production and industry structure.

Among its findings, the report shows:

• The pork industry supports an estimated 573,311 direct, indirect, and induced jobs in the United States.
• In 2023, more than 60,000 pig farms sold more than 149 million hogs worth over $27 billion in gross cash receipts.
• The U.S. pork industry supports more than $37 billion in personal income and boosts economic activity in related services such as trucking, grain elevators, insurance, and other rural-based businesses.
• Approximately 25% of U.S. pork was exported abroad in 2023, amounting to nearly 7 billion pounds of pork valued at over $8 billion. Pork exports help support more than 143,000 U.S. jobs.
• The pork industry generates significant economic activity through its purchase of inputs. Feed inputs, such as corn and soybean meal, account for an estimated 52% of total U.S. production costs, with purchases valued at nearly $13 billion annually.

NPPC economist Holly Cook and Iowa State University economist Lee Schulz compiled the report. Click here to read more about the industry data.

What it means: America’s pork industry is a vital pillar of our nation’s agricultural economy, contributing over $62 billion annually and supporting hundreds of thousands of jobs across the country,” said NPPC President Lori Stevermer, a pork producer from Easton, Minn. “Producers are committed to delivering wholesome, affordable, sustainable pork products that not only feed millions of families but also drive economic growth and innovation in rural communities.”

Pork Industry Representatives Lobby for New Farm Bill This Year

What happened: Pork producers from seven state pork associations participated in an NPPC mini legislative fly-in Wednesday in Washington, DC, lobbying lawmakers on several issues important to the U.S. pork industry.  

During visits with their members of Congress, the pork producers and state executives asked them to: 

• Pass a Farm Bill that includes a legislative fix to California Proposition 12, which bans the sale in the state of pork from hogs born to sows raised anywhere in housing that does not meet California’s arbitrary standards. 
• Renew and expand key Farm Bill programs that benefit U.S. agriculture, including ones that address foreign animal diseases and promote U.S. agricultural exports. 
• Support the “Beagle Brigade Act” to provide congressional authority to USDA’s National Detector Dog Training Center, which trains canines used at U.S. ports of entry to detect agricultural contraband. 
• Reauthorize and increase funding for the federal Feral Swine Eradication Program. 

Pork producers and state executives from Colorado, Illinois, Kentucky, Michigan, Minnesota, Ohio, and Wisconsin also met with staff from Senate Agriculture, Nutrition, & Forestry Committee Chairwoman Debbie Stabenow (D-MI) and Ranking Member John Boozman (R-AR) to discuss getting a new Farm Bill approved this year. 

Featured Politico Influence, the fly-in complements recent pork industry Farm Bill efforts, including a letter sent Monday from NPPC and more than 500 other agricultural organizations urging U.S. Senate and House leaders to pass a new Farm Bill this year. The groups warned that “it may not be logistically or politically feasible to advance a new farm bill early in the next Congress” because of the legislative and administrative duties of the 119th Congress, such as picking leaders and committee members, considering administration nominations, and other necessary actions.  

The current Farm Bill expires Oct. 1, and many of its programs would cease at that time without a new bill or extension of the existing statute. So far, the only significant action on the next Farm Bill came in late May when the House Agriculture Committee approved a measure that includes several provisions supported by NPPC, including a legislative fix to California’s Proposition 12. That Farm Bill, however, still must be passed by the entire House, and in the Senate, although the Agriculture, Nutrition, & Forestry Committee has a draft 2024 Farm Bill, the panel has yet to consider it. 

Why it matters: The five-year Farm Bill sets farm, conservation, forestry, and nutrition policy and authorizes various agricultural programs, including ones related to foreign animal disease preparation and prevention and export promotion.

Federal Court Upholds Massachusetts Question 3 

What happened: A federal court judge upheld Massachusetts Question 3, which, like California Proposition 12, bans the sale of pork from hogs born to sows raised in housing that doesn’t comply with the state’s prescriptive standards.

Missouri-based meatpacker Triumph Foods sought to block enforcement of the initiative, arguing that the Federal Meat Inspection Act preempted Question 3. However, Judge William Young of the U.S. District Court for the District of Massachusetts ruled the law only bans the sale of non-compliant pork and does not regulate how meatpackers operate. This follows a ruling earlier this year, in which Judge Young agreed with Triumph and struck down an exemption within Question 3 for sales that took place at federally inspected processors within the state. Judge Young found that provision to unconstitutionally discriminate against out of state processors.

Separately, at the urging of NPPC, the Massachusetts Department of Agricultural Resources (MDAR) recently clarified that ground and comminuted – diced, chopped, or cut into very small pieces – pork is not covered by Question 3 and that the state “temporarily” will not enforce Question 3 regulations banning transshipment of non-compliant pork through Massachusetts for delivery to other states. That decision by MDAR came under a settlement agreement with NPPC and a coalition of groups representing New England restaurant and hospitality businesses.

NPPC’s take: NPPC opposed Question 3 – and California Proposition 12 – and worked to delay its implementation. It also pushed for MDAR to write the rules and regulations for the law rather than the state’s attorney general, who originally was given authority. NPPC worked with partners in Massachusetts to pressure MDAR to provide direction and certainty to the marketplace on the sale of pork in the state and New England. 

NPPC and the American Farm Bureau Federation challenged Question 3 and California Proposition 12 before the U.S. Supreme Court. While the high court ruled that the initiatives did not violate the Constitution’s Commerce Clause on interstate transactions, it nonetheless opined that the measure could be problematic for the pork industry and is Congress’ responsibility to remedy. The organizations have been working with Congress on a legislative fix to the laws. 

NPPC Comments on Efforts to Foster Trade in Western Hemisphere

What happened: NPPC on Monday submitted comments on the Biden administration’s efforts to date on the Americas Partnership for Economic Prosperity (APEP), a framework to foster cooperation related to competitiveness, supply chain resilience, prosperity, and investment in the Western Hemisphere. 

Officially launched in January 2023, the APEP includes Barbados, Canada, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, Mexico, Panama, Peru, Uruguay, and the United States. 

“The Americas region is critically important to U.S. pork producers,” said NPPC in its comments to the Office of the U.S. Trade Representative (USTR). It pointed out that the United States has free trade agreements (FTAs) with all but three of the APEP countries –Barbados, Ecuador, and Uruguay – and urged USTR to “build on the success of these agreements.” It said APEP talks “should not be a replacement for negotiating new FTAs.” 

It also asked USTR to address technical barriers to U.S. pork exports in APEP countries, citing Ecuador and Panama specifically. NPPC said the United States should use provisions in existing FTAs with those nations and World Trade Organization (WTO) rules to eliminate and discourage such protectionist impediments.

NPPC’s take: NPPC supports the goals of the APEP but has concerns that the Biden administration may forego formal trade deals in the region. It also backs efforts to eliminate tariff and non-tariff barriers to U.S. pork exports in APEP countries, noting that the best way to do that is through comprehensive free trade agreements. 

Why it matters: Forging closer economic and cultural ties with countries in the Western Hemisphere should improve prospects for increased trade among the APEP countries and pave the way for comprehensive trade agreements. The U.S. pork industry is dependent on trade, with exports accounting for more than 25% of total annual sales. In 2023, the industry shipped nearly $8.2 billion of pork to foreign destinations. 

Capital Update on Modified Schedule as Congress Takes Break 

Capital Update will be issued on an as-needed basis during the Congressional August recess. It will resume regular publication on Friday, September 13.