THIS WEEK IN
Federal Policy News
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Democrats Unveil New Reconciliation Bill Targeting Climate & Healthcare |
In a surprise announcement last week, President Biden and Sens. Joe Manchin (D-WV) and Chuck Schumer (D-NY) revealed they had come to a compromise agreement on a new reconciliation package, called the Inflation Reduction Act (IRA). Their belief is the legislation would lead to over $300 billion in reduced deficits, mostly through a 15% corporate minimum tax, prescription drug pricing reform, and increased IRS tax enforcement. Reconciliation bills can be passed in the Senate with a simple majority, meaning all 50 Democrats would need to support the bill, with Vice President Kamala Harris breaking the tie. At this time, it is still not known whether Sen. Krysten Sinema (D-AZ) supports the bill, but it would be crucial to its passage.
While raising revenues is a significant piece of the IRA, it also introduces roughly $370 billion in new spending for energy and climate change programs over a ten-year period, as well as $65 billion towards an extension of certain elements in the Affordable Care Act. About $20 billion of the funds for climate programs would go towards climate-friendly agriculture. This includes new funding for the Environmental Quality Incentives Program (EQIP), Conservation Stewardship Program (CSP), Regional Conservation Partnership Program (RCPP), and several others.
With Congress’ annual August Recess nearly upon us, this could be a frantic few days for Senators as they attempt to get the bill passed before leaving town. No Republicans are expected to support the bill; however, they will get a chance for a “vote-a-rama" in which they can introduce several amendments. They are expected to force difficult votes on topics such as Title 42, border security, and other contentious issues. The reconciliation bill will also need to pass what is known as the “Byrd Rule,” which requires all provisions to be tied to the budget in some way. Given these potential challenges, there is no guarantee the IRA will pass, or if it does, how much will be forced to change due to parliamentary rules.
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ERP's "Phase Two" Faces Delays |
Earlier this week, Associate FSA Administrator Steve Peterson was reported as saying that the “Phase Two” portion of the Emergency Relief Program (ERP) will likely take much longer to process than Phase One payments. The ERP is essentially the Wildfire and Hurricane Indemnity Program Plus (WHIP+), retooled under a new name after $8 billion in emergency funds were approved late last year (following support from CAFB and other organizations). After several delays in rolling out these initial funds, it appears the agency will again struggle with getting out new payments in a timely fashion.
The first phase relied on producers already utilizing crop insurance or similar support programs. This meant it was easier to identify impacted farmers and ranchers who would then receive pre-filled forms asking about disasters experienced in 2020 and 2021. The second phase would essentially be for all other producers. Unfortunately, only about 60 of 400 specialty crops in California are covered by existing crop insurance programs, meaning many of our members will rely more heavily on the Phase Two payments. CAFB is looking into the timing of these supposed delays—which we hope can be corrected and implemented in the near future. We will continue to update members as we learn more.
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Coalition Urges Senate to Move Forward on Agricultural Workforce Reform |
On Tuesday, the Agriculture Workforce Coalition (AWC) sent a letter urging Senate leaders to work towards passing legislation that would help address the significant labor challenges facing our industry. Over 400 organizations and businesses signed onto the letter, including the American Farm Bureau, California Farm Bureau, and 19 other state farm bureaus. While the letter did not specifically call for supporting the Farm Workforce Modernization Act (FWMA), the legislation still remains a key bill in Senate discussions on this topic (it has not been introduced at this time).
The letter broadly highlighted the labor-intensive nature of our industry and some of the critical issues that continue to negatively impact farmers and ranchers across the country. As labor shortages continue to cause challenges for producers, many are forced to limit production or even reconsider their financial sustainability given increased costs and reduced access. Despite Congress preparing to depart DC for their August Recess, there is some hope that lawmakers could come together on an agreement sometime prior to the end of the year—even if this means during the lame duck period.
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USDA Announces New Strategic Plan for Reforestation |
On July 25th, the USDA announced their strategic plan to handle roughly four million acres of backlogged reforestation initiatives. With funds provided in the Bipartisan Infrastructure Framework, which passed last year, hundreds of millions of dollars in new funds for these efforts will help speed up their plan to plant one billion trees over the next ten years. The detailed reforestation plan intends to make forests more resilient, particularly given the increased risks associated with ongoing droughts, wildfires, disease, pest infestation, and other challenges. With the newly-dedicated funds, there is hope that the USDA can be more proactive in heading off some of these known issues.
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Chairman Scott introduces bill focused on Small Cattle Producers |
Late last week, House Ag Committee Chairman David Scott introduced H.R. 8590, the Small Family Farmer and Rancher Relief Act which seeks to help small family farmers and ranchers with less than 100 head of sold cattle per year by providing financial assistance to small family farmers and ranchers through enhanced risk management tools and market facilitation.
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$1 Billion in Community Wildfire Defense Grants Announced |
During a keynote address at the Western Governors’ Association annual meeting last week, USDA Secretary Tom Vilsack announced the launch of the Community Wildfire Defense Grant program. The program dedicates $1 billion in funds from the Bipartisan Infrastructure Framework towards grants encouraging applicants to create and/or update their community wildfire protection plans—as well as funds dedicated to various infrastructure and resilience projects. The overall goals include restoring and maintaining landscapes, creating fire adapted communities, and improving wildfire response. Interested applicants can find more information here.
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CDFA Virtual Farm Bill Listening Sessions to Kick off in August |
The California Department of Food and Agriculture, in partnership with the California Department of Public Health, California Natural Resources Agency and Cal EPA, has announced listening sessions with farm bill stakeholders to inform California’s priorities for the 2023 Farm Bill.
Listening Session Schedule
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August 10, 9-11 AM (Virtual) - Register for Zoom here.
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August 16, 12-2 PM (In-Person & Virtual) in San Diego, CA – Register for Zoom here.
- August 23, 12-2 PM (In-Person) in Fresno, CA
- September 7, 9-11 AM (In Person) in Richmond, CA
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In addition to the listening session, written comments can also be submitted via email to CDFA at farmbill@cdfa.ca.gov. For more information, CDFA farm bill resources, and the option to submit comments online, please visit the CDFA website here.
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New Rural Broadband Projects Announced for California |
Last week, the USDA announced $401 million in investments for rural broadband across eleven states, including California. The rollouts are part of nearly $65 billion in funds set aside for such projects that originally passed in the Bipartisan Infrastructure Framework (BIF). Improving internet access for poor, rural, and traditionally underserved communities has been a priority for the administration dating back to the campaign trail. The announcement includes two separate projects for telephone companies in Alpine, Amador, Calavares, El Dorado counties, as well as Cold Springs Rancheria, totaling over $34 million in investments. |
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Sara Arsenault
Director of Federal Policy
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Matthew Viohl
Federal Policy, Associate Director
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Erin Hutson
Federal Policy, Consultant
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