September 7, 2023

Congress Returns from Recess but Deadlines Approach Quickly

The Senate is back in DC as the August Recess has mostly drawn to a close—House members will join them next week. The past month has served as an opportunity for Members of Congress to travel in their respective states and districts, giving many constituents a chance to meet with them firsthand. With legislators traveling and on break, there has been a pause in legislative work on the floor. However, this hasn’t kept offices and their staff from continuing to work on the Farm Bill and other legislation.

With the end of September rapidly approaching, the Farm Bill’s original deadline for passage is expected to come and go, without a full version written and approved by that time. Instead, Congress is likely to pass some form of a short-term extension, giving them more time to come to a compromise version that can pass in both chambers. Despite the bipartisan and bicameral nature of the bill, it will still be a tall task for lawmakers to get the bill done this year. An exact timeline is not known as of yet, but with the recess nearly behind us, we should likely get a better idea in the coming weeks.

Another deadline approaches though, which is sure to add a bit of extra consternation in DC and around the country this month, as the federal government is approaching a potential shutdown should they not adopt a funding extension. In addition to flat funding extensions, the White House has also urged Congress to pass several special budget fixes known as “anomalies,” which are intended to add additional funding for several programs, ranging from those under the USDA to the Pentagon. The path ahead remains unknown for the spending bill, as House Republican leadership has not publicly outlined their priorities as of yet.

Agencies Release Revised WOTUS Rule 

On August 29th, the U.S. Environmental Protection Agency and the U.S. Army Corps released a pre-publication of a new post-Sackett WOTUS rule. Following the May 25 U.S. Supreme Court Sackett v. EPA decision, EPA and the Corps’ jurisdictional authority was greatly narrowed as the ruling eliminated the use of the “significant nexus” test as well as the agency’s definition of “adjacency”. The Court also directed the agencies to adopt the “relatively permanent” standard as the sole regulatory test moving forward. While CAFB is still currently analyzing the revised rule, it seems the new rule addresses many aspects of the Sackett ruling. However, concerns remain over several aspects of the rule. This includes the failure to give context to the scope of the “relatively permanent” standard, leaving it uncomfortably vague and uncertain for the regulated community. 

The revised rule will not be subject to public notice and comment as the agencies believe, given the Court’s direction, that they had sufficient reasoning and good cause to skip public input. Following publication in the Federal Register, the rule will go into effect immediately. Additionally, USEPA and the Corps plan to hold a webinar on September 12 on the amendments to the rule.

USFWS Issues Final Rule on Foothill

Yellow-Legged Frog

The U.S. Fish and Wildlife Service has announced a final rule that will grant endangered status for two distinct populations segments (DPSs) and threatened status for two DPS of the foothill yellow-legged frog under the federal Endangered Species Act. Both the South Sierra and South Coast DPSs have been granted endangered status and the North Feather and Central Coast DPSs have been granted threatened status. The final rule also finalizes rules under the authority of section 4(d) of the Act for the North Feather and Central Coast DPSs that provide measures that are necessary and advisable to provide for the conservation of these two DPSs. The final rules states that designation of critical habitat for the four DPSs is not determinable at this time.

CAFB Submits Comments on USFWS & NMFS Proposed ESA Regulatory Changes

CAFB recently submitted comments in opposition to the U.S. Fish and Wildlife Service and the National Marine Fisheries Service in response to three different proposed rules that would amend implementation of the federal Endangered Species Act. The proposed changes would impact the ability to consider economic impacts of listings, change how other federal agencies consult with the Services, and give threatened species the same protections as endangered species for FWS-listed species with some exceptions. Previously, under the Trump Administration, the Services finalized three new ESA regulations in 2019. One allowed agencies to consider the economic impacts of listing species and designating critical habitat and addressed the definition of “foreseeable future.” A second changed when and how other federal agencies are required to consult the Services on ESA issues. The third, issued by USFWS, reserved full protections for only endangered species, not species listed as threatened with exceptions (also known as the “blanket 4(d) rule”). The current proposed rules seek to amend those regulations.

CAFB Board Member Testifies Before House Natural Resources Committee

On August 11, CAFB member Johnnie White testified on behalf of CAFB before the House Natural Resources Committee at a field hearing in Yosemite National Park. The hearing, titled Conservation in a Crown Jewel: A Discussion About Wildfires and Forest Management, focused on the cause and effect of forest management decisions and catastrophic wildfire. Mr. White’s testimony focused on the impacts of wildfire to California agriculture including, but not limited to, wildfire smoke, insurance availability, power shutoffs, and disaster assistance. Mr. White also discussed the impacts to the state’s natural resources including air quality, wildlife habitat, and the importance of forested watersheds. The testimony also laid out several recommendations for the 2023 Farm Bill forestry title.

FMMO Hearings Underway with USDA

The USDA has been holding a series of hearings on Federal Milk Marketing Orders, which are expected to continue through the month. Kicking off on August 23^rd in Carmel, Indiana, the hearings are intended to solicit feedback on the current pricing structures for the various classes. The FMMO structure is divided into 11 separate areas, which covers about 2/3rds of the continental US, and is effectively responsible for controlling the prices for various dairy products. The system has long been criticized for its inflexible and complex nature. These faults in the system became rather glaring during the COVID-19 pandemic, as prices fluctuated wildly.

The American Farm Bureau Federation has submitted testimony twice already through their Chief Economist Roger Cryan. More information on their latest testimony can be found here. AFBF has tried to work with groups such as the National Milk Producers Federation to align many of their high-level priorities. Last year, AFBF helped host an FMMO Forum in which they signed letters of agreement with NMPF and others. It was a response to USDA Secretary Tom Vilsack’s request that the largest dairy groups get together to find common ground on recommended changes to FMMOs. For more information on the hearings, click below.

Fair Access to Agricultural Disaster Programs Act Introduced in Senate

Recently, Senator Padilla introduced a Senate bill, the Fair Access to Agriculture Disaster Program Act, that would reduce barriers that producers face in accessing agriculture disaster assistance. Identical to the version previously introduced in the House by Reps. Panetta (D-CA) and Kat Cammack (R-FL), the bill would exempt the AGI limitation for farms that get 75% of their income from farming or related farming practices including agri-tourism, direct-to-consumer marketing of agricultural products, sale of agricultural equipment owned by person or entity, and other agriculture-related activities, as determined by the Secretary of Agriculture. The bill would apply to the Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program, the Livestock Forage Disaster Program, the Livestock Indemnity Program, the Tree Assistance Program, and the Noninsured Crop Disaster Assistance Program. The bill is supported by several agricultural organizations including CAFB.

House Ag Labor Taskforce Grower Survey Portal

Earlier this summer, we shared that the House Agricultural Committee had put together a working group specifically aimed at studying ag labor challenges within the industry. Although labor is not specifically under the jurisdiction of the committee, this issue came up extensively during Farm Bill listening sessions around the country. The Farm Bill also does little in the way of addressing labor, but growing dissatisfaction on Congress’ inability to address labor availability and costs have spurred many constituents to voice their concerns.

The task force recently announced they would be taking public comments on the issue of ag labor. The button below should link to where you can share your own direct feedback. CAFB has long pushed for changes in the area of ag labor, whether it be updates to worker visas or addressing the existing workforce. Despite the committee’s lack of precise jurisdiction in this matter, it is a positive development that they’ve felt the need to look at this issue more closely. CAFB will be sharing our own comments and encourages members to do so as well.

USDA Updates Livestock Indemnity Program

Last week, the USDA announced increases to rates within the Livestock Indemnity Program (LIP) to account for extreme heat and other weather conditions. The 2023 LIP payment rate for calves over 800 pounds will now increase to $1,618, which represents a $374 increase over the current rate. That rate will be retroactive to January 1^st, meaning those eligible for losses should receive additional payments (if applicable). In their release, the USDA cited ongoing extreme heat and humidity experienced in the Midwest in particular; however, eligible losses are extended to winter storms, tornadoes, and other qualifying conditions. If you’d like to learn more, click here.

Nominations for Precision Ag

Task Force Now Open

Nominations are open through September 20^th for those interested in serving on the Precision Agriculture Connectivity Task Force, which works with both the USDA and the Federal Communications Commission (FCC) on matters related to the implementation of rural broadband and other supply chain issues as it relates to our industry. The task force was originally formed with the passage of the 2018 Farm Bill, as our industry was looking for ways to engage the federal government more closely on challenges relating to connectivity. This will technically serve as the third and final term of the task force, provided it is not renewed under the subsequent Farm Bill. For those interested in learning more, click below.

USDA Awards Specialty Crop Block

Grants to CA Groups

Last month, the USDA’s Agricultural Marketing Service (AMS) announced nearly $24 million in new funds across the state via the Specialty Crop Block Grant Program (SCBGP). The funds will filter through CDFA to 46 separate projects, all intended to help grow opportunities for specialty crop producers. Since its creation in 2006, the SCBGP has awarded over $1 billion to nearly 12,000 projects across the country. Although the FY2023 project deadline has since passed, you can expect a new portal to open up next year for those interested in potentially receiving a grant. The full list of this year’s projects can be found here.