January 18, 2023

Congress Nearing Short-term Funding Deal

Today, the Senate is racing to get a short-term funding extension passed and sent along to the House. With several agencies (including USDA) set to run out of funding by tomorrow night, lawmakers are hopeful that they will get the deal passed in both chambers and sent along to the President before a winter storm hits the area. The new plan will push back their bifurcated shutdown deadlines from Jan. 19 and Feb. 2 to the 1^st and 8^th of March. The extra month should (in theory) give them enough time to complete a longer-term funding deal. Border security, support for Ukraine and Israel, and a few other issues have proven more difficult to get around than expected. The House will also need to suspend the rules to pass the shorter extension due to time limitations, meaning a 2/3rds vote will be required. It remains to be seen if enough Republicans will support the deal in order to avoid the shutdown.

Michigan Representative Sends Congressional Letter on AEWR Freeze

Late last week, Michigan Rep. Bill Huizenga (R-MI04), sent a bipartisan letter with 73 of his colleagues signed on to Appropriations leaders in both the House and Senate, urging them to consider measures that would lead to a freeze of the Adverse Effect Wage Rate (AEWR). The AEWR is what dictates base hourly wages for H-2A visa contracts. California once again has the ignominious honor of having the nation’s highest base AEWR at $19.75 an hour (up from $18.65 a year ago). Last month, the American Farm Bureau Federation and its Board supported a resolution calling for an immediate push to freeze the AEWR at 2023 levels.

Although the 2023 levels were already painfully high for most producers, it would add much-needed short term relief and certainty for those planning ahead for subsequent years if a two- or three-year freeze can be passed. It remains to be seen whether the current appropriations process will allow for such a measure to make it through in the coming month or two (and whether the President would sign it), but the bipartisan letter points towards a willingness on both sides to tackle this issue. CAFB knows that more robust ag labor reform is badly needed right now, but we are assisting in efforts to stem the tide on what is a fundamentally broken wage calculation.

NYSE Withdraws Proposal to Permit Trading of Natural Asset Companies

In the fall of last year, the New York Stock Exchange (NYSE) had proposed a rule under the Securities Exchange Act to permit the listing of “Natural Asset Companies” (NACs). Companies with missions to improve public and private lands and ecosystems would have been able to be listed, with a relative dollar value placed on potential benefits to said lands. Opponents argued that this would have spurred extra conservation efforts at the expense of farmers, ranchers, and other businesses—blocking off valuable areas needed for grazing and other activities. See below for more information on its withdrawal.

USDA Reopens Signup for Continuous Conservation Reserve Program 

The USDA has now opened up applications for the Continuous Conservation Reserve Program (CCRP). This initiative provides agricultural producers and landowners with conservation opportunities, including the Conservation Reserve Enhancement Program (CREP). Producers can either enroll for the first time or re-enroll expiring contracts. The November extension of the 2018 Farm Bill ensures the continuation of the program until at least September 30^th. Producers must submit offers to their local USDA Service Center by July 31^st, 2024, for an effective start on October 1^st, 2024, on a first-come, first-served basis.

FSA is offering a 20% incentive for water quality practices within CCRP, building on changes made in 2021. CLEAR 30, an extension of the CLEAR Initiative provides an additional incentive for water quality practices in 30-year contracts. CCRP enhancements include added flexibilities in CREP for matching funds, increased staff support, and expanded opportunities for Tribal Nations’ participation. 

Matthew Viohl

Federal Policy, Director

Erin Huston

Federal Policy, Consultant

Isabella Quinonez

Public Policy Coordinator