WASHINGTON OUTLOOK

By Robert L. Redding Jr.

USPF Testifi es at U.S. House Ag Committee Hearing

The U.S. House Committee on Agriculture held a hearing on “A 2022 Review on the Farm Bill: Commodity Group Perspectives on Title I.” Chairman David Scott, D-Georgia, opened the hearing stating, “As we look ahead to the 2023 Farm Bill, I am committed to making sure that the full breadth of voices from our farmers, ranchers, foresters, and consumers is represented in our efforts. Today’s panel is an integral piece in that process, and I look forward to the months ahead as we discuss the other farm bill titles and issue areas.”

Nine commodity groups testifi ed at the hearing including Meredith McNair Rogers, a Camilla, Georgia peanut grower representing the Georgia Peanut Commission and the U.S. Peanut Federation. Rogers discussed the rising costs of inputs in peanut production and related analyses from representative farming operations.

“When I met with the General Farm Commodities and Risk Management Subcommittee early last fall, I spoke of increased input costs such as fertilizer and equipment. In addition, I shared with you the delays in equipment parts and repair. Since the Subcommittee’s Roundtable last year, the Center for Rural Prosperity and Innovation at Abraham Baldwin Agricultural College in Tifton, Georgia, has completed its review of U.S. Representative Peanut Farm data covering all the peanut production regions. These 22 peanut farms, from Virginia to New Mexico, have been reviewed for 21 years (2001-2022). What we have learned from this most recent, comprehensive data is that peanut growers have struggled to cover their cost of production.”

Rogers provided the committee specifi c data from representative peanut farms that demonstrated the increases in cost of production: “… The 2021 representative farm update revealed the average expected peanut yield to be 4760 lbs. per acre. In a cash fl ow analysis, the 2021 total cash fl ow was $545.97 per ton. The projected 2022 peanut total cash fl ow cost to produce a ton of peanuts is estimated to be $666.94. This is approximately a 22 percent increase over the 2021 cost of production.”

The House Agriculture Committee is expected to continue its hearing process in preparation for the 2023 Farm Bill. Fifteen members of the committee are from peanut producing states. Hearings to date include a review of the Conservation Title for the 2023 Farm Bill. The U.S. Senate Agriculture Committee will begin fi eld hearings in the spring for the farm bill.

Ag Trade Nominations Update

USDA has yet to nominate an Under Secretary for Trade. This is a key position for agricultural organizations to communicate on important trade issues. This is the highest ranking political position at USDA for trade matters and serves as an advocate for American agricultural trade issues.

In addition, Elaine Trevino, the Administration’s nominee for the deputy position for agriculture at the Offi ce of the U.S. Trade Representative has withdrawn her nomination. Trevino, a former almond industry executive, had been nominated by the President some time ago but had not been scheduled for fl oor consideration.

Peanut Appropriations Projects Included in FY 2022 Law

After months of negotiations, the U.S. Senate has sent the White House the Fiscal Year 2022 appropriations legislation. Included in the bill were two top peanut projects, afl atoxin and peanut nutrition. The U.S. Peanut Federation and the Georgia Peanut Commission worked with U.S Congressman Sanford Bishop, D-Georgia, chairman of the Subcommittee on Agriculture Appropriations, on these projects. In its second year of funding, USDA’s Agricultural Research Service (ARS) and Fort Valley State University were approved for $3 million to pursue afl atoxin research.

The new law includes an additional $1 million for peanut nutrition research through ARS. The Peanut Institute worked with USPF on this initiative.

USPF Holds Capitol Hill Fly-In

Participants in the recent U.S. Peanut Federation Washington, D.C. fl y-in discussed the rising cost of production for peanuts, the Price Loss Coverage program (PLC) and trade with members of Congress and the Administration.

USDA Under Secretary for Farm Production and Conservation Robert Bonnie briefed peanut leaders on the Administration’s new Partnerships for Climate-Smart Commodities initiative, conservation and Farm Service Agency issues.

USPF Joins Organizations Seeking Increase in RUTF Funding

The U.S. Peanut Federation and other agricultural organizations have joined together in a request of the U.S. House and Senate Appropriations Committees to increase funding for ready-to-use therapeutic food.

In a letter to appropriations’ leaders, the coalition stated: "The U.S. is already one of the world’s largest and most cost-effi cient producers of RUTF and the agricultural inputs needed to produce it."

View the full letter on page 29. 

The Honorable Sanford Bishop Chairman U.S. House of Representatives Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Washington, D.C. 20515

The Honorable Tammy Baldwin Chairwoman U.S. Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Washington, D.C. 20510 The Honorable Andy Harris Acting Ranking Member U.S. House of Representatives Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Washington, D.C. 20515

The Honorable John Hoeven Ranking Member U.S. Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Washington, D.C. 20510

Dear Chairs Bishop and Baldwin and Ranking Members Harris and Hoeven, We, the undersigned organizations, write to you in support of ready-to-use therapeutic food (RUTF) as a proven intervention to address global hunger and childhood malnutrition. Malnutrition claims the lives of more than three million kids each year – more than AIDS, malaria, and tuberculosis combined. Children suffering from severe malnutrition, or wasting, require immediate nutrition intervention in the form of RUTF to survive. RUTF is a medical food paste made of peanuts, powdered milk, vegetable oil, sugar, soy and multivitamins that can bring a wasted child back from the brink of death in a matter of weeks. This energy-dense, fortifi ed paste is shelf stable for up to two years and does not require mixing with potentially contaminated water. RUTF is specially formulated to contain the essential nutrients and ingredients in requisite amounts determined by experts convened by the World Health Organization (WHO) to be scientifi cally essential for nourishment of these vulnerable children.1 A typical treatment regimen consists of three RUTF packets every day for about six weeks and costs less than $1 per day. Up to 90 percent of children treated will recover. Despite being ranked as one of the most effective child survival interventions, RUTF is vastly underfunded and underprioritized by the international community. Globally, only $200 million is invested annually in RUTF production, which is only enough to treat 25 percent of children suffering from wasting. The U.S. is already one of the world’s largest and most cost-effi cient producers of RUTF and the agricultural inputs needed to produce it. The U.S. Agency for International Development (USAID) reports roughly $45 million in annual procurement of RUTF, which supports the sourcing of peanuts, soy protein, dairy, vegetable oil and sugar from across the country. American farmers have the capacity to expand production to begin meeting more of the emergency global need, but the missing ingredient is funding. An additional $200 million per year for U.S. RUTF procurement would double the global supply to fi nally reach the majority of wasted children with this lifesaving treatment. As Congress turns its attention to fi scal year 2023 appropriations legislation, we encourage you to consider this opportunity to address global childhood malnutrition while simultaneously stimulating the domestic agricultural economy. Specifi cally, we are requesting that $200 million be set aside for procurement of WHO guidance2compliant RUTF from funding provided for the P.L. 480 Title II program, the United States’ premier international food assistance program.

Sincerely,

American Soybean Association American Sugar Alliance National Council of Farmer Cooperatives National Milk Producers Federation U.S. Dairy Export Council U.S. Peanut Federation