Capital Update – For the Week Ending December 30, 2022
Topline Summary of the Agriculture Provisions in the Government Spending Bill
What happened: On Dec. 23, President Biden signed into law the $1.7 trillion omnibus spending bill that averted a government shutdown and funds the government until Sept. 30, 2023. Secretary Vilsack stated, “USDA is ready to hit the ground running in 2023 to keep expanding our economy from the bottom up and middle out and ensure that rural communities, farmers, ranchers and producers are empowered with the tools necessary to thrive.”
Why it matters:
The 4,000+ page bill included several agricultural items, including:
*Disaster assistance – $3.7 billion in disaster funding for crop and livestock losses due to drought and other problems in 2022.
*Livestock Mandatory Reporting – Livestock Mandatory Reporting is extended until Sept. 30, 2023.-Price transparency – The USDA and the Department of Justice are to analyze issues regarding transparent meat pricing and price discovery for cattle producers.
*Chinese chicken – Prohibits funding to procure raw or processed chicken imported into the United States from China for the federal school lunch program.
*Foreign audits – The USDA will conduct audits to evaluate a country or region regarding veterinary control and oversight; disease history and vaccination practices; livestock demographics and traceability; surveillance practices; diagnostic laboratory capabilities; and emergency preparedness and response.
*Packers and Stockyards Act – The Agricultural Marketing Service will receive $5 million for oversight and enforcement of the Packers and Stockyards Act.
*NIFA – The National Institute of Food and Agriculture (NIFA) would receive $1.7 billion, an increase of $64 million over FY ’22. NIFA funds research at land grant universities.
*Commodity assistance – $250 million is allocated for rice producer payments to compensate for the drop in revenue this year. $100 million is provided for payments to cotton merchandisers as a result of losses related to the pandemic or supply chain disruptions.
Learn more: For additional resources regarding Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, please see: Summary | Fact Sheet | Explanatory Statement.
NPPC Supports the Growing Climate Solutions Act
What happened: The Growing Climate Solutions Act was also included in the Omnibus bill. The legislation creates a program at USDA to help solve technical entry barriers needed to support a private carbon credit offset market for farmers, ranchers and forest landowners. It would also reward the current and future contributions of pork producers and other agriculture sectors to reduce greenhouse gas emissions.
NPPC’s take: NPPC expressed its support for the legislation in a tweet and statement by Terry Wolters, NPPC president and owner of Stoney Creek Farms in Pipestone, Minnesota:
“U.S. pork farmers are committed to protecting the country’s natural resources and have been at the forefront of environmental sustainability through continuous on-farm improvements in nutrition, genetics, and overall pig care. We applaud Congress’s bipartisan effort to pass this important legislation that recognizes and rewards the pork industry’s ongoing work to reduce the carbon footprint on America’s hog farms.”
A Push for H-2A Reform in 2023
What happened: With only days remaining in the legislative session, a bill was introduced in the U.S. Senate to address the long-running labor shortage in American agriculture. Unfortunately, while well intentioned, it did not go far enough to provide meaningful assistance for the pork industry, year-round livestock farmers or the millions of American consumers already burdened by record-high food costs and rising inflation.
What did the bill state? The bill introduced last week, the Affordable and Secure Food Act, addressed the problem in part by expanding the H-2A program.
Why it matters: Farmers in rural communities are as desperate as ever for experienced workers who are crucial to the animals’ health and welfare and to provide Americans with a reliable supply of nutritious food. Declining populations and rising ages of residents in these communities often mean there simply are not local workers available.
NPPC’s take: NPPC expressed its support for visa system reform in an opinion article by Terry Wolters, NPPC president and owner of Stoney Creek Farms in Pipestone, Minnesota:
“The H-2A temporary agricultural visa program was established in 1987 and sought to help by allowing agricultural employers to hire foreign workers, primarily for seasonal demands. The problem is that not all agriculture is seasonal. Pork production, for instance, is a 365-day-a-year effort. Additionally, the cap on how many H-2A visas can be issued is far too restrictive.”
The next Congress must prioritize the H-2A visa program and move to eliminate the annual cap on the number of visas that can be issued and allow for year-round agricultural workers. Failure to do so runs the risk of making an existing crisis even worse for both farmers and the millions of Americans who rely on them.
Resources: For more information, we encourage you to visit our agriculture labor issues page.
NPPC Applauds Senate for Confirmation of Under Secretaries and Trade Negotiator
What happened: The U.S. Senate confirmed key agriculture appointments in the session’s closing hours Doug McKalip to serve as the United States Trade Representative (USTR) Chief Agricultural Trade Negotiator, Alexis Taylor as Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs and Dr. Emilio Esteban as Under Secretary for Food Safety at USDA.
NPPC applauded the appointments with public statements of support.
Why it matters: American agriculture needs experienced leaders representing the United States in international negotiations. NPPC looks forward to working with them and their teams to maintain and expand export markets for American pork producers.