THIS WEEK IN
Federal Policy News
March 10, 2022
CONGRESS WORKS TO AVOID GOVERNMENT SHUTDOWN
A government shutdown approaches by the end of this Friday—a deadline that lawmakers are actively working to avoid. While a larger $1.5 trillion package is expected to pass and keep the federal government running through September, it likely will not receive a vote until early next week due to some legislative hurdles. This means Congress will need to pass a separate, short-term stopgap to avoid a shutdown over the weekend. Although this is expected to pass prior to the Friday deadline, it has not yet been approved in either chamber as of Wednesday afternoon. 
 
The larger package represents a 7% growth over current federal spending, which includes an expansion in defense spending as well as humanitarian and military aid for Ukraine. However, the increased spending can also be attributed to the reintroduction of earmarks—a practice which has been purposely shelved since Republicans took over the House following the 2010 midterm elections. Earmarks help lawmakers secure funding for specific projects in their states and districts, often helping garner support for broader legislation. 
SENATE HOLDS HEARING ON OCEAN SHIPPING REFORM ACT
Last week, the Senate Committee on Commerce, Science and Transportation held a markup hearing on the Ocean Shipping Reform Act (OSRA). We have previously reported on CAFB’s active work in helping push lawmakers on this legislation, which would address a number of supply chain issues that have developed more sharply in recent years due to shipping container availability challenges. Much of this has been due to a relatively unregulated industry for shippers. The Senate bill’s primary sponsors, Sens. Amy Klobuchar (D-MN) and John Thune (R-SD), have offered the legislation as a fix to help prevent the billions of dollars in losses currently experienced by ag, retail and other industries. 
 
The current head of the US Federal Maritime Commission, Dan Maffei, explained that “...the law governing container shipping has been in need of updates, even before the current COVID-triggered demand surge.” Indeed, many supporters of the legislation have noted that many of these issues existed well before the pandemic—and that the last two years merely helped accentuate those pre-existing problems. The exact timeline for passage is still not clear at this time, although the House already passed their version of the bill back in December. 
USDA ANNOUNCES WATER INFRASTRUCTURE PROJECTS
Late last week, the USDA announced they would begin the initial work on 108 new infrastructure projects outlined from the Bipartisan Infrastructure Framework (BIF), totaling nearly $167 million in new investments. Although no direct California projects are included, many of the projects are aimed at improving watershed and flood prevention infrastructure across 23 states. The legislated budgeted $918 to the Natural Resources Conservation Service for a number of watershed programs, meaning this is just the beginning of some of their initial rollouts. A second round of funding for projects is also expected to be announced later this spring. 
KEY UPCOMING DEADLINES FOR USDA SIGN UP PERIODS
We wanted to share a few upcoming USDA deadlines that you might find useful: 
 
March 11 
  • Conservation Reserve Program (CRP) - This is the final week for producers to sign up for CRP. CRP is intended to provide landowners financial incentives to establish long-term, resource-conserving plant species, such as approved grasses or trees, to control soil erosion, improve water quality and enhance wildlife habitat on cropland. Signups for CRP Grasslands will remain open through May 13. To sign up for CRP contact your county FSA office. Learn more about general CRP here. 
 
March 15 
  • Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) - FSA encourages producers to contact their local USDA Service Centers to make or change elections and to enroll for 2022 ARC or PLC programs, providing future protections against market fluctuations. Learn more about ARC and PLC here. 
  • Pandemic Cover Crop Program (PCCP) - Through the new PCCP, producers who have coverage under most crop insurance policies are eligible for a premium if they planted cover crops during this crop year. Producers must file a Report of Acreage form (FSA-578) for cover crops with FSA by March 15, 2022 to receive the benefit. Learn more about PCCP here. 
 
You can keep up with important upcoming and ongoing national USDA program deadlines here. This list only included federal deadlines and does not include all local or state level deadlines. 
USDA TREE ASSISTANCE PROGRAM AVAILABLE FOR FREEZE LOSSES
Orchardists, nursery tree growers, and vineyardists who experienced losses from natural disasters during calendar year 2022, including the recent freeze, may apply for assistance from USDA FSA through the Tree Assistance Program (TAP). Growers have until 90 calendar days after the disaster event or when the loss becomes apparent to submit an application with supporting documentation. TAP provides financial assistance to qualifying orchardists, nursery tree growers, and vineyardists to replant or rehabilitate eligible trees, bushes and vines lost due to natural disasters. The loss must be more than 15% mortality (adjusted for normal mortality). Eligible trees, bushes, and vines are those from which an annual crop is produced for commercial purposes.
 
Nursery trees include ornamental, fruit, nut, and Christmas trees produced for commercial sale. Growers must have owned the trees, bushes or vines from the time of the disaster until the time that the TAP application is submitted but are not required to own the land on which eligible trees, bushes and vines were planted. Approved replacement and rehabilitation activities must be completed within 12 months from the date the application is approved. To access assistance, producers should contact their local Agriculture Commissioner to inform them of freeze damage. Producers with insured crops should also contact their crop insurance agent to report losses. Find more information about TAP here. 
HOUSE HUNTING FOCUSES ON RURAL DEVELOPMENT IN THE FARM BILL
On Tuesday, the House Agriculture Subcommittee on Commodity Exchanges, Energy, and Credit conducted a hearing reviewing rural development under the Farm Bill. Under Secretary for Rural Development, Xochitl Torres Small served as the only witness for the hearing, often highlighting the efforts made under this administration in areas such as broadband and food security. Under the BIF, over $60 billion in new funds were approved for the expansion of rural broadband for underserved communities across the country. 
 
CAFB has played an active role with the American Connection Project Broadband Coalition in making sure priorities for farmers and ranchers are included as the funding transitions to the implementation phase. While the funding represents a significant boost to expanding access for these communities, historical projects have oftentimes missed the mark in ensuring access reaches those that need it most. We will continue to ensure that those considerations are included as the implementation moves forward. 
USBR CVP/SWP TO HOLD PUBLIC MEETINGS & COMMENT PERIOD
The U.S. Bureau of Reclamation has issued a Notice of Intent stating that it intends to prepare an Environmental Impact Statement and hold public meetings analyzing potential modifications to long-term operation of the Central Valley Project and the State Water Project. Virtual public meetings are being held this month on March 8, 9, 10, 15, 16 and 17. More information on the meetings, including how to join, can be found on the USBR website here. USBR is also accepting written comments on the NOI until March 30. 
Contact Federal Policy
Sara Arsenault
Federal Policy, Director
916-561-5619
Matthew Viohl
Federal Policy, Associate Director
916-561-5612
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Erin Huston
Federal Policy, Consultant
916-849-3746