In This Issue:

• NBGA Summer Meeting Info
• Farm Bill Updates
• NBGA Urges EPA to Include Drift Reduction Adjuvants Among ESA Mitigations
• EPA Holds ESA Mitigation Workshop
• Outlook for FY25 Appropriations Process & Questions on Scab Initiative Funding
• USDA Awards $300 Million for RAPP

NBGA Summer Meeting Info

June 18-June 20, 2024

Country Inn & Suites

2221 Killebrew Drive

Bloomington, MN 55425

The next NBGA Board of Directors meeting will begin on Tuesday, June 18th at 1pm in Minneapolis, MN. We'll conclude business items in time for a 6pm dinner. The following day on Wednesday, June 19th, we'll reconvene the Board at 8:30am and around 11:30 will board busses to head to Rahr Malting and Dual Citizen Brewing. On Thursday, June 20th, we'll meet from 8am-12pm to discuss final business items.

*NBGA's hotel block has closed*

Please reach out to Blair Elias (belias@gordley.com) with any questions!

Farm Bill Updates

On May 23rd, the House Ag Committee passed a Farm Bill proposal put forth by Chairman Thompson (R-PA). The mark-up started at 11:00 am and did not conclude until after midnight. Most of the discussion and amendments considered during the mark-up were related to the Supplemental Nutrition Assistance Program (SNAP). In the end, four Democrats joined all of the committee Republicans to vote in favor of passing the bill out of committee. The four Democrats were Caravao (CO), Davis (NC), Sorenson (IL) and Bishop (GA). One notable amendment that was proposed and withdrawn by Rep. Dusty Johnson (R-SD) would require a mandatory base acre update. After a brief discussion on the issue, Rep. Johnson withdrew his amendment. It is unclear when or if the Farm Bill will be considered on the House floor. Chairman Thompson indicated it would be September at the earliest, citing the full floor schedule in July and the congressional recess in August. It is also uncertain that the bill would have sufficient support to pass on the House floor at this time. Attention will now shift to the Senate where Senate Ag Committee Ranking Member Boozman (R-AR) s expected to release his proposal in early June. This will hopefully lead to negotiations with Chairwoman Stabenow (D-MI) on a version that can achieve the bipartisan support needed to clear the Senate.  

Highlights of House Chairman Thompson’s proposal:

Reference Price Increases

Barley – $4.95 to $5.45 (10.1%)

Corn – $3.70 to $4.10 (10.8%)

Wheat – $5.50 to $6.35 (15.5%)

Corn – $3.70 to $4.10 (10.8%)

Soy – $8.40 to $9/95 (18.5%)

Other oilseeds (canola, sunflower, etc.) – $20.15/cwt to $23.75 (17.9%)

Dry peas – $11.00/cwt to $13.10 (19.1%)

Lentils – $$19.97/cwt to $23.74 (18.9%)

Small chickpeas – $19.04/cwt to $22.66 (19%)

Large chickpeas – $21.54/cwt to $25.65 (19.1%)

Base Acre Increase

Available to all farmers whose average plantings exceeded their Base acreage between 2019-2023. Farmers can count up to 15% from non-covered commodities toward eligible acres. The areas of the country that would see the highest base increases include Montana, North Dakota, some parts of Idaho and Eastern Washington.

Crop Insurance - The Supplemental Coverage Option (SCO) would be expanded to cover 90 percent of the expected county yield, with the premium subsidy increased 80 percent.

Marketing Assistance Loans

Loan rates for most commodities increased by 10%.

Other (non-farm programs)

Doubles funding for Market Access Program (MAP) & Foreign Market Development (FMD).

Provides $2.5 billion in mandatory funding for ag research facility upgrades.

Funding offsets (used to pay for the increases/expansions in the bill)

Commodity Credit Corporation – the bill would eliminate the Secretary’s discretion to use the Commodity Credit Corporation (CCC). The savings from this policy change is the funding offset used to pay for the changes to the farm safety net (PLC/Reference Prices, ARC, Base acre increase, Crop Insurance).

SNAP/Thrifty Food Plan - The bill includes language that would prohibit the Secretary of Agriculture from increasing the cost of the Thrifty Food Plan based on a reevaluation or update. This change would prevent a future Administration from increasing SNAP benefits and is a point of general opposition among Democrats. Funding from this change is used to pay for several items in the bill including the doubling of MAP/FMD. 

NBGA Urges EPA to Include Drift Reduction Adjuvants Among ESA Mitigations

NBGA was among 32 ag groups that submitted a letter to EPA urging the Agency to add Drift Reduction Adjuvants (DRA) to the list of mitigation options available to pesticide users for Endangered Species Act (ESA) compliance. The letter noted that EPA is moving quickly to implement ESA related proposals, and “pesticide users and applicators need as many effective, practicable, and affordable options as possible to meet ESA obligations. We strongly urge EPA to add to the approved mitigation list DRAs and other adjuvants that can be effective in reducing off-target pesticide movement while providing pesticide users a practical compliance option.”

EPA Holds ESA Mitigation Workshop

EPA held an ESA-FIFRA Mitigation Workshop on May 9, 2024 which include several presentations detailing how the proposed mitigations would impact growers in different regions. Following the workshop EPA indicated that they “heard a strong interest in incorporating existing state, local, and other voluntary conservation programs into the final Herbicide Strategy Framework for runoff and erosion mitigation. We recognize the desire to hear from EPA on the requirements for such programs as well as the need to develop supportable ways to capture the benefits of these programs for listed species. We recognize that stakeholders need support, including education and training, financial, and technical assistance, to effectively implement the proposed mitigation strategies. We also heard the need to simplify the implementation process for growers. There were several great suggestions for EPA on how to best define mitigations and the need for flexibility in the descriptions. EPA also described the types of information that they need to support additional mitigation options. All the presentations and discussions will help to inform the mitigation options in the final Herbicide Strategy Framework that will be released by August 30, 2024. They will also help inform the draft Insecticide Strategy that will be released for public comment by July 30, 2024.”

Outlook for FY25 Appropriations Process & Questions on Scab Initiative Funding

House Republicans are moving ahead aggressively on FY2025 Appropriations actions. Last week, new Committee Chairman Tom Cole (R-OK) announced the subcommittee funding allocations and an early and aggressive schedule for subcommittee and full committee mark-ups. The allocations represent a 6% cut in non-Defense programs, with some subcommittees getting cut by larger amounts, up to 11%. The reduced spending levels conform to the 2-year top line budget agreement that then Speaker McCarthy reached with Democrats and was passed by Congress. The Ag Appropriations bill allocation is down 2% at $25.8 billion for FY25 compared to $26.2 billion for FY24, which is relatively good compared to the 6% reduction in appropriations overall. The Ag Appropriations bill is scheduled for subcommittee mark-up on June 11 and full committee on July 10. The Senate will not be moving so quickly and may not move forward much, if at all, prior to the November elections.

NBGA is also investigating potential cuts to the Wheat & Barley Scab Initiative that have been indicated by USDA Ag Research Service (ARS). At this time it is unclear how these cuts are being implemented and we’re working with congressional offices to get clarification on the final funding decisions that were made for FY2024 as well as plans for FY2025. 

USDA Awards $300 Million for RAPP

On May 21^st, USDA announced the funding awards for the Regional Agriculture Promotion Program (RAPP), which included $17 million for the U.S. Grains Council and $2 million for the Brewers Association. The RAPP is intended to build demand for American food and farm exports in high-potential markets around the globe.

Secretary Vilsack launched RAPP in October 2023, authorizing $1.2 billion in Commodity Credit Corporation funding to help U.S. exporters expand their customer base beyond traditional and established markets, focusing on regions such as Africa, Latin America and the Caribbean, and South and Southeast Asia, where consumer demand and purchasing power are growing.