Washington Outlook

by Robert L. Redding Jr.

COVID-19 Economic Stimulus Update

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.

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.

Growers Support CCC Funding

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.

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.

USDA to Provide Additional Direct Assistance to Farmers Impacted by COVID-19

PPresident Donald J. Trump Price Trigger Commodities by the pandemic since April 2020, then and U.S. Secretary of Price trigger commodities are major farmers are encouraged to apply for Agriculture Sonny Perdue commodities that meet a minimum CFAP 2. A complete list of eligible recently announced up to an 5-percent price decline over a specified commodities, payment rates and calculaadditional $14 billion for agricultural period of time. Eligible price trigger crops tions can be found on farmers.gov/cfap. producers who continue to face market include barley, corn, sorghum, soybeans, disruptions and associated costs because sunflowers, upland cotton, and all classes Eligibility of COVID-19. Signup for the Coronavirus of wheat. Payments will be based on 2020 There is a payment limitation of Food Assistance Program (CFAP 2) will planted acres of the crop, excluding $250,000 per person or entity for all begin September 21 and run through prevented planting and experimental commodities combined. Applicants who December 11, 2020. acres. Payments for price trigger crops are corporations, limited liability

“America’s agriculture communities will be the greater of: 1) the eligible acres companies, limited partnerships may are resilient, but still face many multiplied by a payment rate of $15 per qualify for additional payment limits when challenges due to the COVID-19 acre; or 2) the eligible acres multiplied by members actively provide personal labor pandemic. President Trump is once again a nationwide crop marketing percentage, or personal management for the farming demonstrating his commitment to ensure multiplied by a crop-specific payment operation. In addition, this special payment America’s farmers and ranchers remain in rate, and then by the producer’s weighted limitation provision has been expanded to business to produce the food, fuel, and 2020 Actual Production History (APH) include trusts and estates for both CFAP 1 fiber America needs to thrive,” said approved yield. If the APH is not and 2. Secretary Perdue. “We listened to available, 85 percent of the 2019 Producers will also have to certify feedback received from farmers, ranchers Agriculture Risk Coverage-County they meet the Adjusted Gross Income and agricultural organizations about the Option (ARC-CO) benchmark yield for limitation of $900,000 unless at least 75 impact of the pandemic on our nations’ that crop will be used. percent or more of their income is derived farms and ranches, and we developed a program to better meet the needs of those impacted.” Flat-rate Crops Crops that either do not meet the 5-percent price decline trigger or do not from farming, ranching or forestry-related activities. Producers must also be in compliance with Highly Erodible Land and Wetland Conservation provisions. Background: The U.S. Department of Agriculture (USDA) will use funds being made available from the Commodity Credit Corporation (CCC) Charter Act and CARES Act to support row crops, livestock, specialty crops, dairy, aquaculture and many additional commodities. USDA has incorporated improvements in CFAP 2 based from stakeholder engagement and public feedback to better meet the needs of impacted farmers and ranchers. Producers can apply for CFAP 2 at USDA’s Farm Service Agency (FSA) county offices. This program provides financial assistance that gives producers have data available to calculate a price change will have payments calculated based on eligible 2020 acres multiplied by $15 per acre. These crops include alfalfa, extra long staple (ELS) cotton, oats, peanuts, rice, hemp, millet, mustard, safflower, sesame, triticale, rapeseed, and several others. Sales Commodities Sales commodities include specialty crops; aquaculture; nursery crops and floriculture; other commodities not included in the price trigger and flat-rate categories, including tobacco; goat milk; mink (including pelts); mohair; wool; and other livestock (excluding breeding stock) Applying for Assistance Producers can apply for assistance beginning Sept. 21, 2020. Applications will be accepted through Dec. 11, 2020. Additional information and application forms can be found online at farmers.gov/cfap. Documentation to support the producer’s application and certification may be requested. All other eligibility forms, such as those related to adjusted gross income and payment information, can be downloaded from farmers.gov/cfap/apply. For existing FSA customers, including those who participated in CFAP 1, many documents are likely already on file. Producers should check with FSA county office to see if any of the the ability to absorb increased marketing not included under the price trigger cate- forms need to be updated. costs associated with the COVID-19 gory that were grown for food, fiber, fur, Customers seeking one-on-one pandemic. Producers will be compensated or feathers. Payment calculations will use support with the CFAP 2 application for ongoing market disruptions and a sales-based approach, where producers process can call 877-508-8364 to speak assisted with the associated marketing are paid based on five payment gradations directly with a USDA employee ready to costs. associated with their 2019 sales. offer assistance. This is a recommended

CFAP 2 payments will be made for Additional commodities are eligible first step before a producer engages with three categories of commodities – Price in CFAP 2 that weren’t eligible in the first the team at the FSA county office. Trigger Commodities, Flat-rate Crops and iteration of the program. If your More information can be found at Sales Commodities. agricultural operation has been impacted farmers.gov/coronavirus. t October/November 2020 Southeastern Peanut Farmer 29