USDA preps for farm aid rollout

Politico

17-03-2025

Presented by Bayer
With help from Jordan Wolman and Samuel Benson
QUICK FIX
— The Agriculture Department is gearing up to roll out $10 billion in economic assistance for farmers by the deadline this week.
— Hill Democrats are urging USDA to explain and reverse the axing of two local food purchasing programs.
— Ag groups are making louder pleas for exemptions as President Donald Trump continues his tariff battles.
IT'S MONDAY, MARCH 17. Welcome to Morning Agriculture. I'm your host Grace Yarrow. Happy St. Patrick's Day — and, perhaps more importantly for readers of this newsletter, happy National Agriculture Week! Send tips, scoops and how you're planning to celebrate to [e-mail]. As always, don't forget to follow us at @Morning_Ag for more.
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Driving the day
CLOCK IS TICKING: The Agriculture Department is expected to open applications for economic aid to farmers by the deadline of Friday.
USDA chief Brooke Rollins promised farmers at the Commodity Classic at the beginning of March that the funds would be ready by that deadline. Senate Ag Chair John Boozman (R-Ark.) told MA on Friday he's spoken with Rollins and expects the funds to start flowing on time.
Sen. John Hoeven (R-N.D.) confirmed USDA is 'very close' and said last week that farmers can expect an announcement of open applications soon.
Next on the to-do list: Lawmakers haven't gotten clarity on timing for another $21 billion in disaster aid to help farmers recover from last year's hurricanes, floods, droughts and more. A group of representatives from the Southeast urged Rollins in a letter last week to expedite the process.
AROUND THE AGENCIES
REVERSING BIDEN'S FORMULA MOVES: In a series of executive orders Friday, Trump revoked former President Joe Biden's use of the Defense Production Act to speed up manufacturing of U.S.-made infant formula after a major recall and shortage of formula in 2022.
Biden's order directed USDA and HHS to use the Defense Department's commercial aircraft to pick up products from overseas 'so it can get to store shelves faster.'
More background: The Biden administration faced aggressive calls to take more action as parents struggled to find the critical products after a monthslong shutdown of the Abbott Nutrition plant in Sturgis, Michigan.
The White House did not respond to a request for comment about any predicted changes in availability or cost of baby formula as a result of Trump's revocation.
On The Hill
FIRST IN MA: Dozens of Democratic lawmakers are expressing their 'deep dismay' over USDA's halting of more than $1 billion for programs that gave schools and food banks money to buy food from local farms and ranchers.
Rep. Chellie Pingree (D-Maine) led 81 other Democrats in a letter asking Rollins for answers on why the programs were cut and how USDA will help farmers and organizations that relied on those initiatives for markets and local foods.
The lawmakers called the cancellations 'reckless and cruel' as farmers face harsh economic conditions and uncertainty, and consumers continue to experience high grocery store prices for local or nutritious food.
FROM THE UPPER CHAMBER: Thirty-two Senate Democrats, led by California Sen. Adam Schiff, also wrote to Rollins asking for more clarity on the decision to stop funding for the local food purchasing programs.
'At a time when food insecurity remains high, providing affordable, fresh food to food banks and families while supporting American farmers is critical,' they wrote.
TARIFFS, TARIFFS AND TARIFFS
CHANGING THEIR TUNE? Some agriculture groups are growing tired of feeling like their private requests for exemptions or support for farmers during Trump's tariff wars are failing to result in any tangible change.
Trump deployed a lower tariff on potash from Canada, a key fertilizer ingredient that powerful ag lobbying groups and GOP lawmakers urged the president to prioritize. That declaration opened the floodgates of industry lobbyists asking for more exemptions or lower tariffs for their industries behind the scenes.
'Everyone I've talked to is still largely taking the tack of making kind of dry public statements when they have to make them, and making stronger private appeals,' said one ag advocate, granted anonymity to candidly discuss thinking around how to respond to Trump's policies.
Another ag industry representative added that the tone of groups' approaches has started to change.
'Everyone was trying to play nicely, meaning we were just saying, 'We understand what you're doing Mr. President,'' they said. 'I think everyone's saying now, 'Wow, we're disappointed.''
More background: Ag groups pressed for Trump to exempt potash and other ag inputs from his tariffs, as farmers face already-high input costs. Groups like the American Farm Bureau Federation counted that change as a win, and a sign that Trump was listening to farmers' needs.
Now, they're asking the administration to provide more certainty on what comes next, as Trump has delayed tariffs on Canada and Mexico and as worldwide 'reciprocal' tariffs are on the horizon next month.
One 'perfect' example: Alcohol importers and producers are warning that they'll be hit hard by tariffs on imports from other countries impacting popular products, including European sparkling wines like champagne and prosecco and Mexican spirits like tequila and mezcal.
Chris Swonger, president and CEO of the Distilled Spirits Council of the U.S. recently told MA he's pushing harder to receive a spirits exemption from Trump after seeing other carveouts for the auto industry and potash.
'We are going to work hard to make sure these tariffs are removed. We are the perfect model of a category where there should be an exemption,' Swonger said.
TRUDEAU'S ORANGE A-PEEL: When former Canadian Prime Minister Justin Trudeau announced retaliatory tariffs on 1,256 items — from household appliances to coffee — he encouraged Canadians to 'do your part' by picking domestic products at the grocery store, 'foregoing Florida orange juice altogether,' our colleagues write.
The economic benefits between Canada and Florida go far beyond tourism. Canadians get 40 percent of their seafood from Florida and import loads of produce such as citrus, watermelon, strawberries and tomatoes.
Florida citrus producers are already grappling with disease and hurricanes, and U.S. consumers are drinking less orange juice. Developers are also increasingly building homes in orange-producing areas, shrinking land that was once used for orange groves, per The Associated Press.
Row Crops
— Eggs are so expensive that people are smuggling them in from Mexico. (The Wall Street Journal)
— As world leaders grasp for a response to Trump's tariffs, they have two models to study — and both have plenty of pitfalls, our colleagues write.
— The Forest Service has informed California's Department of Fish and Wildlife that it will not be able to proceed with a nearly $1 million grant awarded by the state for the purpose of removing waste left by illegal cannabis cultivation sites on federal lands, our Natalie Fertig writes.
— A major climate lawsuit is heading to trial next week, and experts say the case brought by a Peruvian farmer against German energy giant RWE could set a crucial precedent in holding polluters accountable for climate change. (The Associated Press)
— House Ag Chair G.T. Thompson (R-Pa.) told the Pennsylvania Capital-Star that 'at this point in time' he's planning to stay in Congress and not run for Pennsylvania governor.
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