October 26, 2023

Louisiana Rep. Mike Johnson Elected Speaker

In a story with many twists and turns, Republican Rep. Mike Johnson (LA) was finally elected as Speaker of the House on Wednesday afternoon. His election came after Rep. Tom Emmer (MN) was chosen as their nominee about 24 hours beforehand. Rep. Emmer had beaten out Rep. Johnson but withdrew his candidacy a few hours later after former President Donald Trump helped spearhead opposition against him. In any case, the relatively unknown Rep. Johnson now steps into one of the most powerful roles in DC. Notably, he received unanimous support from his party, resulting in a 220-209 vote.

There is plenty on the docket for the House to get to and Speaker Johnson noted he was eager to get the chamber moving along quickly. In their sights should be financial support for Israel, which the Speaker noted in his acceptance speech. Democrats and several Senate Republicans have also voiced the need for additional support for Ukraine—something many conservative House Republicans have been against. It will be an early test of his negotiating skills as many will seek to pair the two measures together.

Talks of a Farm Bill Extension Grow

While the election of a new Speaker will permit the House to resume normal legislative work, the delays have helped contribute to a Farm Bill that is significantly behind schedule. With a much more significant deadline looming on December 31^st, some important voices have now publicly expressed their desire to go for a lengthy extension. Sen. John Boozman (R-AR) recently spoke before an agricultural group and suggested that a one-year extension would give them enough time to complete the bill. He also pointed out that it doesn’t mean they need a full year to get it done—just that it would help avoid needed further extensions.

The extension talk is a challenging dilemma, as the 2024 elections make major legislative endeavors substantially harder. A one-year delay would also theoretically mean they could try to pass it during the lame duck session after the election is over. However, depending on the results, one party might be far less motivated to get it done depending on whether they won or lost support. CAFB, AFBF, and other ag groups continue to push legislators to get something done as soon as possible. With several improvements expected that would benefit western states and specialty crop growers, waiting another year—or longer—could prove costly for our industry.

USDA Announces New CCC Funding for Ag Export Promotion Food Aid

Agriculture Secretary Tom Vilsack has announced that the U.S. Department of Agriculture (USDA) is allocating $2.3 billion to assist American producers in maintaining and expanding their commodity markets and supporting increased international food aid. These funds are drawn from the Commodity Credit Corporation (CCC) and have been prompted by bipartisan requests from the Senate Committee on Agriculture, Nutrition, and Forestry. The USDA’s allocation plan is comprised of;

1. $1.3 billion for the Regional Agricultural Promotion Program, aimed at promoting and diversifying export markets, particularly for specialty crop industries.
2. $1 billion to address global hunger and enhance food aid efforts, with a focus on responding to international food insecurity.

This move seeks to address challenges in trade and food insecurity affecting U.S. farmers and the international community. Secretary Vilsack made this announcement during the World Food Prize’s Borlaug Dialogue, an event focusing on global food security issue, held annually in Des Moines, Iowa This allocation follows the 90^th anniversary of the CCC, which was established in response to the Great Depression and the Dust Bowl, providing stability to markets, and aided farmers in marketing their commodities.

The $1.3 billion investment in the Regional Agricultural Promotion Program (RAPP) aims to facilitate entry into new markets and increase market share in growth. An investment in providing targeted technical assistance to the specialty crops industry will help it enter and expand markets that often impose onerous non-tariff barriers on their products. Five years ago, in reaction to the trade war with China, USDA developed the Agricultural Trade Promotion Program (ATP). The funds from ATP will expire next year and with that, many exporters are already curtailing their activities. Without being on the ground in markets, it is nearly impossible to build the trust and relationships needed to create opportunities. The RAP Program seeks to address the critical loss and keep existing trade relationships strong.

USDA Releases New Report on Existing Voluntary Carbon Markets

This week, USDA released a comprehensive assessment of the role of agricultural and forestry in U.S. carbon markets. The report, a key deliverable under the Growing Climate Solutions Act (GCSA), offers insights into the potential and challenges of carbon markets for these sectors. Carbon markets provide an opportunity for farmers to reduce emissions or capture carbon on their lands. These credits can be sold, offering new income streams and supporting companies in achieving greenhouse gas reduction goals.

However, the report identifies several barriers that have limited agriculture’s participation in these markets, including high transaction costs and the need for greenhouse gas quantification and verification. The USDA is investigating solutions to increase participation in carbon markets. They have also invested $300 million to improve greenhouse gas measurement, monitoring and reporting in agriculture and forestry. As part of the GCSA’s implementation, the USDA is considering the establishment of a Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Program. This program aims to offer expanded technical assistance to producers interested in carbon markets and establish a process to register market verifiers. Overall, this initiative represents an effort to merge agriculture and forestry in climate practices. 

B.F. Sisk Dam Raise and Reservoir Expansion Project Plan Approved

The Department of the Interior and the San Luis & Delta-Mendota Water Authority have approved the B.F. Sisk Dam Raise and Reservoir Expansion Project in Sacramento, California. This project will expand San Luis Reservoir’s storage capacity by 130,000 acre-feet, potentially benefiting two million people, one million acres of farmland, and 135,000 acres of wildlife habitat. It’s the first major water storage project in California since 2011. The project is part of the Administration’s ongoing climate protection efforts, with a large sum of investment from the Bipartisan Infrastructure Law totaling $95 million.

The project aims to enhance water supply security for the region, particularly in the face of drought conditions. The B.F. Sisk Dam, a large earthfill embankment, is in California’s Central Valley. It will be raised by an additional 10 feet, further increasing storage capacity at San Luis Reservoir. Per the USDA, the project aims to secure a more resilient water supply for the communities, farms and wildlife surrounding the Central Valley Project. 

Farm Credit Administration Finalizes New Young, Beginning, and Small Farmer Rule

The Farm Credit Administration (FCA) has approved a final rule regarding services for young, beginning, and small (YBS) farmers and ranchers within the Farm Credit System. The rule, effective on February 1^st, 2024, revises YBS regulations to achieve various objectives. This includes expanding YBS activities to a diverse population of borrowers, strengthening the supervisory role of banks, annual reviews and approvals of YBS programs, and enhancing YBS strategic plans for director-lender associations. THE FCA’s current YBS definition will be adjusted due to inflation, increasing from $250,000 to $350,000 next year. The rule is viewed as an opportunity to better serve YBS producers and build a robust borrower base for the future. 

Matthew Viohl

Federal Policy, Director

Erin Huston

Federal Policy, Consultant

Isabella Quinonez

Public Policy Coordinator