Washington Outlook by Robert L. Redding Jr.
COVID-19 Economic Stimulus Update
Growers Support CCC Funding
Although the U.S. House of Representatives has passed its version of the fifth COVID-19 Economic Stimulus legislation, the HEROES Act, the U.S. Senate has not reached agreement on their package to date. Senate Republicans have proposed two “skinny” or less costly versions of their economic stimulus initiatives. Both of these have been rejected by Senate Democrats. Proposals have included $20 billion in additional funds for agriculture. Legislation currently being considered includes agricultural processors, in addition to growers, as part of the economic assistance program at the U.S. Department of Agriculture (USDA). USDA is preparing to release a new Coronavirus Food Assistance Program (CFAP) which should include a revised CFAP program or CFAP 2.0. It is anticipated that the new program will be streamlined and more inclusive as to commodities.
Growers have been concerned about the resources for the Commodity Credit Corporation (CCC). The U.S. Peanut Federation joined other agricultural organizations in a letter to House and Senate leaders requesting that Congress reimburse CCC for funds that have been spent to assist American Agriculture. The full text of the letter dated Sept. 15, 2020, is below.
House Approves Peanut Aflatoxin Research Project The U.S. Peanut Federation (USPF), association comprised of the Southern Peanut Farmers Federation, American Peanut Shellers Association and the National Peanut Buying Points Association, had proposed a USDA Agricultural Research Service (ARS) project at the ARS Dawson Peanut Lab in cooperation with Fort Valley State University earlier this year. U.S. Congressman Sanford Bishop, D-Georgia, chairman of the Subcommittee on Agricultural Appropriations, asked that the Committee include $1.5 million for peanut aflatoxin research. The Committee accepted Congressman Bishop’s proposal and these funds have been approved by the U.S. House of Representatives. Peanut Research—The Committee provides an additional $1,500,000 above the fiscal year 2020 level to support research activities to mitigate aflatoxin contamination in peanuts. The Committee directs ARS to enhance ongoing collaborations with land grant institutions to further advance research efforts. The U.S. Senate has not taken up their version of the Fiscal Year 2021 Agricultural Appropriations bill as of yet. It is anticipated that Congress will move a Continuing Resolution prior to October 1, 2020, in order to keep the government funded then address the Fiscal Year 2021 legislation after the election.
Peanut Industry Continues EU Aflatoxin Regulation Efforts The U.S. Peanut Federation is pursuing a resolution to aflatoxin policy concerns relative to the European Union. USPF has met numerous times with USDA and consulted with the Office of the U.S. Trade Representative about the increase in EU rejections of U.S. peanuts at ports. The USPF will update the industry as this issue moves forward.
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Southeastern Peanut Farmer October/November 2020
Dear Majority Leader McConnell, Speaker Pelosi, Leader Schumer and Leader McCarthy, As Congress assembles a continuing resolution to extend government funding, we respectfully ask that you provide the U.S. Department of Agriculture (USDA) with the resources necessary to continue assisting American farmers and ranchers. To that end, reimbursement for the Commodity Credit Corporation (CCC) must be included in any measure to keep government operating past the current fiscal year. For decades, CCC has been regularly replenished to fund programs integral to the farm safety net that Congress has worked tirelessly to craft. Producers count on programs like Agriculture Risk Coverage, Price Loss Coverage, Dairy Margin Coverage, Marketing Assistance Loans, conservation programs, and many others as they provide food, fuel and fiber for our nation. Without immediate CCC reimbursement, payments and programs would be significantly delayed, jeopardizing operations across the country. More than ever, farmers and ranchers need the certainty and support provided by farm programs. Low commodity prices, unjustified retaliatory tariffs, natural disasters, and a global pandemic have placed a tremendous burden on farm country. USDA’s most recent farm income projections forecast that cash receipts will be at their lowest level in more than a decade. Coupled with rising farm debt and a decrease in working capital, producers face challenges not experienced in decades. As the industry continues to endure hardships during this unprecedented time, we urge you to include CCC reimbursement in a continuing resolution. Thank you for your consideration and continued efforts on behalf of American agriculture.
