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Politico
3 days ago
- Business
- Politico
USDA faces billions in cuts
Presented by Bayer With help from Jordan Wolman QUICK FIX — The Trump administration is looking to cut nearly $7 billion from agriculture funding for fiscal 2026. — The Senate is back in Washington and gearing up for a fight over reconciliation cuts to SNAP spending. — The Energy Department has expanded the range of companies that can claim federal clean fuel production tax credits, a win for biofuels proponents and producers. IT'S MONDAY, JUNE 2. Welcome to Morning Agriculture. I'm your host Grace Yarrow, missing my local Joanns. Send tips and your preferred craft suppliers to gyarrow@ And don't forget to follow us at @Morning_Ag. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. ICYMI: The Conversation kicked off with Dr. Oz In the premiere episode of The Conversation, Dasha Burns sat down with Dr. Mehmet Oz — now leading the Centers for Medicare and Medicaid Services — for a candid talk on drug prices, potential Medicaid cuts and why he's getting early morning calls from President Donald Trump. Plus, POLITICO's Jonathan Martin dished on the Ohio governor's race (featuring Elon Musk, Vivek Ramaswamy and former Ohio State football coach Jim Tressel), and Kyle Cheney unpacked Trump's legal battle over 'Liberation Day' tariffs. Watch the full episode on YouTube. And don't miss a moment — subscribe now on Apple Podcasts or Spotify to get new episodes when they drop. Driving the day FACING DOWN USDA CUTS: The Trump administration is requesting $23 billion for USDA for fiscal 2026, a cut of nearly $7 billion from the current year, according to budget documents released late Friday. The proposal follows President Donald Trump's release earlier this month of his 'skinny budget,' which outlined proposals for billions of dollars in cuts to food, forest and conservation programs and increased funding for the 'Make America Healthy Again' initiative. This more detailed release signals the spending priorities of the White House, which may not be fully embraced by Congress. The details: If Agriculture Secretary Brooke Rollins and the Trump administration get their way, USDA would deeply reduce nearly all of the department's major initiatives, from the Risk Management Agency to Rural Development to the Forest Service to the Office of Civil Rights. The budget request seeks to eliminate programs like the Source Water Protection Program, Dairy Business Innovation initiatives, direct loans for rural single-family housing, conservation technical assistance and the Rural Business-Cooperative Service. The request aims to reduce the Farm Service Agency, which supports farm loans, conservation and disaster assistance, by $372 million. It would shrink the Natural Resources Conservation Service from $916 million to $112 million. The Forest Service would decrease from $16.8 billion last year to $4 billion, as Rollins looks to transfer wildland fire management appropriations to Interior to create a new U.S. Wildland Fire Service. USDA's research arm would also take a budget hit. And more: The sweeping cuts would extend to other key areas. The budget request calls for cutting its SNAP funding allocation by more than half, along with child nutrition programs, as GOP lawmakers are looking to slash SNAP spending by up to $300 billion. And the Special Supplemental Nutrition Program for Women, Infants and Children would receive nearly $300 million less than it did last year. Read more on the budget plans from our Jordan Wolman here. Happening next: The House Appropriations Ag subcommittee will meet on Thursday morning to mark up its Ag-FDA funding bill. The full House Appropriations committee will then consider the bill the following week. On The Hill SENATE'S SNAP FIGHT LOOMS: Congress is back this week, and the Senate is gearing up for a tough fight on agriculture and nutrition policy. Senate Republicans are already looking at a 'do-over' of the bill, or taking out some provisions of the reconciliation package House Republicans passed before last week's recess, to ensure it can pass the chamber's parliamentary guidelines. Some conflicts: Controversial comments that Sen. Joni Ernst (R-Iowa) made in defense of the GOP bill during a town hall on Friday continued to reverberate on Sunday talk shows. One audience member, during a discussion of Medicaid and SNAP spending cuts, shouted at the senator: 'People are going to die.' 'Well, we all are going to die,' Ernst responded. (She's since posted a sarcastic apology video.) Sunday best: OMB Director Russ Vought defended Ernst's comments and Republicans' megabill during an interview on CNN's 'State of the Union' Sunday. He called worries like those from Ernst's constituents 'totally ridiculous,' arguing that it's 'very important to institute' work requirements for programs like Medicaid and SNAP. Meanwhile, Sen. Raphael Warnock (D-Ga.), a member of the Senate AG Committee, bashed the plans on NBC's 'Meet The Press.' 'This is an unfunded mandate at a time when Donald Trump's tariff tax is literally raising the cost of groceries,' Warnock said Sunday. MAHA CONFLICT: Agriculture lobbying groups and ag policy leaders on Capitol Hill are continuing to fight a Make America Healthy Again assessment as the White House's MAHA Commission gears up to release a full policy recommendation this summer, especially in light of errors found in the report's citations. One GOP Hill aide, granted anonymity to discuss the fallout from the report, called HHS Secretary Robert F. Kennedy Jr. a 'Democrat who profited handsomely off junk science.' 'While his report and his rhetoric are not new, it is astonishing the president and some aides continue to support him,' the aide added. ICYMI: Calley Means, a key architect of the Trump administration's MAHA goals, pushed back on ag groups' complaints that they weren't listened to in the drafting of the MAHA Commission's initial assessment. He also insisted that the commission's policy work will not impact farmers. 'There is ZERO plan - and in fact it would be insane - to do anything rash to hurt the American farmer,' Means wrote on X in response to MA's Monday edition last week. AROUND THE AGENCIES BIOFUELS NEWS: The Energy Department on Friday expanded the range of companies and producers that can claim the clean fuel production tax credit under Democrats' climate law. It's a win for biofuels proponents in the agriculture world on a tax incentive that was the subject of intense debate during the Biden administration, our Kelsey Tamborrino writes for Pros. The Trump administration announced it was updating the modeling tool used to determine eligibility to claim the credit, which it said would account for new feedstocks and methods of production like ethanol from corn wet-milling and natural gas from coal mine methane. Guidance surrounding how to claim the clean fuels tax credit, created under the Inflation Reduction Act, was intensely debated as former President Joe Biden's administration grappled with pressures from environmental and ag advocates. The Biden administration ultimately proposed guidance for the credit in its final weeks, but left key decisions for the next administration. The reconciliation bill passed by House Republicans would dismantle key elements of the climate law's tax incentives, but would update and extend the clean fuel production tax credit that is set to expire at the end of 2027. Row Crops — USDA is sending more than 150 firefighters and support personnel to help with the response to fast-moving wildfires across Canada, the department announced Friday. — The Senate Agriculture Committee will hold a hearing Tuesday on the nomination of Michael Boren to be Agriculture undersecretary for natural resources and environment. Boren is facing new scrutiny from the Forest Service, this time for diversion of a geothermal stream to a home on his Idaho ranch, as Marc Heller writes for POLITICO's E&E News. — ICYMI: A group of retired generals and admirals, known as Mission: Readiness, sent a letter to Congress opposing cuts to SNAP, arguing that the proposed House budget would hurt the nation's military readiness. THAT'S ALL FOR MA! Drop us a line and send us your agriculture job announcements or events: gyarrow@ marciabrown@ jwolman@ sbenson@ rdugyala@ and gmott@
Politico
27-05-2025
- Business
- Politico
Ag eyes next MAHA fight
Presented by Bayer With help from Marcia Brown and Samuel Benson QUICK FIX — A major Trump administration report on its 'Make America Healthy Again' goals is dividing allies in the agriculture industry and on Capitol Hill. — USDA is working to approve more statewide bans of junk food and soda purchases using federal nutrition benefits. — President Donald Trump is granting the European Union more time to strike a deal before imposing 50 percent tariffs. IT'S TUESDAY, MAY 27. Welcome to Morning Agriculture. I'm your host Grace Yarrow, back from celebrating my little sister's graduation! What did I miss? Send tips, scoops and thoughts to gyarrow@ and follow us @Morning_Ag for more. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Driving the day THE NEXT MAHA FIGHT: Trump allies on Capitol Hill and in the agriculture industry are divided over a much-anticipated report released Thursday by the White House's Make America Healthy Again Commission. Farmers, ag lobbyists and farm state Republicans lobbied furiously behind the scenes ahead of last week to ask HHS Secretary Robert F. Kennedy Jr. and other MAHA leaders to tone down rhetoric that targets use of pesticides and some food ingredients. That pressure paid off to some extent, with the report avoiding some of the language Kennedy has used in the past to argue that pesticides and other agricultural chemicals are 'poisoning' consumers. Not everyone representing farmers is relieved. Many are gearing up to continue their pressure campaign, asking MAHA leaders to keep their hands off agriculture as the commission develops policy solutions per instructions in Trump's executive order. Chuck Conner, president of the National Council of Farmer Cooperatives, said in a statement that the group has 'serious concerns' about the report's framing of pesticide use. 'The report includes statements that do not reflect the wealth of evidence developed over decades by federal agencies such as the EPA and USDA on the safety of crop inputs and food production methods,' he said. Ag groups are now looking to meet with Kennedy, USDA chief Brooke Rollins and other MAHA commission leaders to ensure the group's policy recommendations won't step on their toes. They've already been frustrated by unanswered calls made to Calley Means, Kennedy's key adviser, as MA readers will recall. SPLIT SCREEN: Top Ag committee Republicans said they were 'troubled' by the initial commission report, while their close ally Rollins praised the work. House Ag Chair G.T. Thompson (R-Pa.) and Senate Ag Chair John Boozman (R-Ark.) said in a statement after the report's release that the commission 'must move forward in a manner that avoids undermining the very systems that allow American farmers to produce the safest, most abundant, and affordable food in the world.' They urged the commission to move toward 'course-correcting to prioritize sound science, peer-reviewed research, and the buy-in of the agricultural community.' Meanwhile: Rollins, a member of the commission, said in a statement that Trump 'knows agriculture is at the heart of the solution.' 'America's farmers and ranchers dedicate their lives to the noble cause of feeding their country and the world, and in doing so have created the safest and most abundant and affordable food supply in the world,' she said. On The Hill HOUSE GOP HITS BACK: A nonpartisan analysis from the Congressional Budget Office found that increased work requirements in the House megabill would kick 3.2 million people off the program. Requiring states to share some of the costs of the program would reduce or eliminate benefits for about 1.3 million people in an average month, Marcia wrote last week. House Ag Committee GOP spokesperson Ben Nichols defended the proposal. 'No one who is able-bodied and working, volunteering, or training for 20 hours a week will lose benefits,' Nichols said in a statement, noting that some exemptions from work requirements, such as for pregnancy, remain in place. He added: 'We reject the hypothetical assumption that some states may not chip into 5 percent of a supplemental nutrition program. Federal policy should encourage states to administer the SNAP program more efficiently and effectively, and this bill does just that.' 'It is a responsible, common-sense approach that protects vulnerable families while respecting hardworking taxpayers.' FIRST IN MA: A survey of voters in key ag swing states shows support for popular Biden-era conservation programs — as congressional Republicans look to add unobligated conservation funds to the farm bill baseline and reduce climate-smart guidelines. The poll, commissioned by conservation advocacy group Invest in Our Land and conducted by firm Embold Research, surveyed 1,807 likely voters in key ag states Arkansas, Iowa, Louisiana, Minnesota, Pennsylvania, and South Dakota. The majority of respondents said they were somewhat or strongly supportive of increasing farm conservation programs. Nearly half of all voters said they were 'much less likely' to vote for a lawmaker who voted to decrease conservation funding. The House-passed reconciliation ag package aims to rescind around $10 billion in unobligated conservation programs from the Inflation Reduction Act to increase the farm bill baseline for conservation programs. SNAP BATTLE LATEST IN WAIVER NEWS: USDA has approved requests from Indiana and Iowa to ban federal food aid recipients from using their benefits to buy junk food, as our Samuel Benson reported. Indiana's waiver bars recipients of the Supplemental Nutrition Assistance Program from purchasing soft drinks and candy. Iowa's 'excludes any food item eligible for sales tax including sweetened beverages, snacks, and candy' from being purchased with SNAP benefits, per a USDA announcement. Iowa exempts most food from its state sales tax. Both states' waivers will go into effect on Jan. 1, 2026. Indiana and Iowa are the second and third states to obtain waivers from USDA limiting how benefits under the nation's largest anti-hunger program can be used. Rollins signed the first state waiver with Nebraska last week. Several other states — including Arkansas, Colorado and Utah — have requested waivers or expressed interest in doing so. And in the Cornhusker State: Nebraska's Republican Gov. Jim Pillen, who met with Rollins last week, brushed aside concerns from farmers about SNAP restrictions, especially in his state which produces corn for sweeteners like corn syrup. 'That is the last thing that comes to mind in our farmers' minds. We are making things phenomenal for our kids,' Pillen said Friday during a 'Fox & Friends' interview. 'We all like to have a can of pop, but it is not a food group, for crying out loud,' Pillen said. MORE MAHA NEWS FROM THE STATES: The Texas state legislature passed a bill that would tighten labeling requirements for food labeling and increase education about the impact of ultra-processed foods. The measure passed with support from 'MAHA Republicans and crunchy granola Democrats' and with the backing of Kennedy, as the bill's sponsor Republican state Rep. Lacey Hull said on X. AROUND THE AGENCIES NO RIFs YET: U.S. District Judge Susan Illston issued a preliminary injunction halting further agency reductions in force and reorganizations, including at USDA. The case, brought by labor unions, nonprofits and local governments, argues that the president needs backing from Congress in order to conduct such restructuring of the federal government. MA readers will remember USDA has a schedule for RIFs teed up, but the preliminary injunction means the agency likely won't be announcing anything until the case has worked its way through the courts. UPDATE ON TARIFFS: Trump announced Sunday that he's granting the European Union an extension to strike a deal to avoid his sweeping 50 percent tariffs — punting back the deadline to July 9. Trump's announcement comes after a phone call with European Commission President Ursula von der Leyen, as our Ali Bianco and Ari Hawkins wrote. The tariffs were set to take effect at the beginning of June. 'I agreed to the extension — July 9, 2025 — It was my privilege to do so. The Commission President said that talks will begin rapidly,' Trump wrote on Truth Social. The European Union now is facing the same 10 percent tariff rate as other countries, but that is scheduled to rise to 20 percent in early July if a deal is not reached within Trump's previous 90-day deadline. Row Crops — USDA is buying up to $67 million worth of domestic food for distribution to food banks through Section 32 authority. — JBS shareholders approve the company's plan to list on the New York Stock Exchange. — The House budget bill's cuts to SNAP spending could impact the seafood industry, some of which relies on federal purchases of fish. (SeafoodSource) — Texas farmers say that a looming state THC ban will destroy the state's hemp agriculture industry. (The Texas Tribune) THAT'S ALL FOR MA! Drop us a line and send us your agriculture job announcements or events: gyarrow@ marciabrown@ jwolman@ sbenson@ rdugyala@ and gmott@
Politico
19-05-2025
- Business
- Politico
GOP reconciliation bill inches forward
Presented by With help from Jennifer Scholtes, Meredith Lee Hill and Samuel Benson QUICK FIX — The House Budget Committee clears the way for Republicans' sweeping tax and spending package to move forward. — Anti-hunger advocates warn the House's cuts to nutrition assistance and other food programs will make people hungrier — and less healthy. — USDA tees up its reorganization plan for May 27, days after a court order barring further staff reductions is set to expire. The court could extend the pause on staff cuts, however. HAPPY MONDAY. It's May 19. Welcome to Morning Agriculture. I'm your host Marcia Brown. Have you seen the MAHA Commission's anticipated report or know what's in it? Get in touch at marciabrown@ or in Signal at marciagbrown.68. Follow us @Morning_Ag for more. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Driving the day BIG BEAUTIFUL BILL: Lawmakers gave the go-ahead to Republicans' tax and spending package late Sunday night, paving the way for $300 billion in cuts to the nation's largest anti-hunger program. The move comes after holdouts demanded last-minute changes to the bill. As our Jennifer Scholtes and Meredith Lee Hill write, House Republican leaders have not yet publicly detailed possible changes or briefed the full House GOP Conference, and those concessions to fiscal hawks could endanger support among moderate Republicans wary of changes like speeding up enforcement of Medicaid work requirements and swiftly ending green energy tax perks enacted during the Biden administration. NUTRITION CUTS: House Agriculture Committee's sweeping portion of the 'big, beautiful bill' includes complicated policy tweaks like limiting updates to the Thrifty Food Plan, the basis for calculating SNAP benefits, stricter work requirements and cutting smaller programs altogether. The proposal saves $300 billion, and is enough for lawmakers to include $60 billion in spending on farm bill programs like crop insurance. But anti-hunger advocates say this ultimately results in fewer people getting nutrition assistance and, over time, benefits that don't keep pace with food inflation. On average, benefits are about $6 a day. Time crunch: Stricter work requirements means millions fewer eligible people, according to the left-leaning Center on Budget and Policy Priorities. This also means that parents newly forced to meet work requirements will have less time to cook, pushing them toward quick, time-saving meals, many of which are highly processed, explains Benjamin Scharadin, assistant professor of economics at Colby College. 'These fiscal and money pushes might directly be in contrast to the MAHA pushes,' said Scharadin, noting that households with tighter budgets rely on calorie-dense foods. 'Those foods are much more convenient,' he added. 'The exact situation we're talking about with able-bodied workers now, like kids being involved in it. If you have kids, you're rushing to get them from school, and you're working. Convenient foods that are calorie dense and have a high satiation point are huge. But those foods don't necessarily have the nutrition aspect.' Nutrition education: An anti-obesity initiative at USDA would get the axe under the House approved plan, saving $5 billion. House Republicans say that the program has little evidence of efficacy, citing a 2019 GAO report. MA readers will remember that supporters say the programming has improved since the report and that killing it contradicts MAHA objectives. 'It's really MAHA for low-income people,' Jerry Mande, adjunct professor of nutrition at Harvard T.H. Chan School of Public Health, told your host. 'Not just SNAP recipients, but all low-income people.' SNAP-Ed supporters have also stood up a new website advocating to save the program. Impact on citizens: Immigrant rights' advocates are also warning that the proposal would cut SNAP access for lawfully present immigrants, including asylees, survivors of domestic violence and child trafficking. Under the GOP proposal, only U.S. citizens and lawful green card holders would be eligible. Currently, green card holders must wait five years to qualify for SNAP. These changes will likely impact U.S. citizen children, said Esther Reyes, campaign strategist for the Protecting Immigrant Families coalition. 'This would be tragic if it only affected noncitizens,' she said. 'But for U.S. citizen children, if their parents fall under one of [these categories and] lose access to SNAP, there will be greater food insecurity for the entire family.' According to the Annie E. Casey Foundation, 1 in 4 children in the U.S. live in immigrant families, 89 percent of whom are U.S. citizens, as of 2022. State burden: The biggest savings come from forcing states to pay a bigger portion of SNAP costs, including shouldering the cost of benefits — starting at roughly 5 percent depending on the state's error rate — and 75 percent of the administrative costs of the program. The plan has prompted some states, including Alabama, to warn that they just can't afford it, and would be forced to cut back benefits. GOP proponents of the plan argue it will incentivize states to root out fraud. But, but, but: The bill still has a ways to go to become law. And some key ag senators, including Sen. Chuck Grassley (R-Iowa), are already suggesting the need for 'a do-over.' AROUND THE AGENCIES USDA REORG INCOMING: Agriculture Secretary Brooke Rollins plans to announce USDA's reorganization plan and further staff reductions later this month, according to documents obtained by POLITICO your host reported late Friday evening. Rollins, who has previously said a major reorganization of USDA is forthcoming, plans to announce the details on the morning of May 27, according to the documents. A week later, on June 3, she is expected to announce a third deferred resignation program with a deadline of June 10 for a 'targeted audience.' The reorganization announcement is set to come four days after the expiration date of a court order prohibiting USDA from following through with any more job cuts and the first work day after Memorial Day weekend. IN THE STATES SNAP WAIVERS: As of May 15, seven states have requested permission from USDA to ban junk food, like soda or candy. Last week, Rollins' home state of Texas joined the group. Colorado Gov. Jared Polis became the first Democratic governor to submit a waiver request last week, too. 'We are one of the healthiest states in the nation, and these new SNAP criteria, if approved, will help bring healthier choices into food deserts and help Coloradans stay healthy while supporting Colorado farmers,' Polis said in a statement. 'SNAP provides critical help to Colorado families, and Congress should not cut the food assistance nor shift costs to the states.' Rollins has promised to rush through the requests, but USDA did not respond to a request for comment when asked for an update on the timeline for waivers. Refresh: Waivers allow states to make changes to the SNAP program with their state, but they operate like pilots. The changes must be temporary and states must report its success to USDA. Asked for comment, USDA spokesperson Seth Christensen said in a statement: 'These waivers are still under review and FNS has not approved or denied any at this time.' He added: 'This collaboration includes holding daily technical assistance calls with each submitting state as proposals are under development.' What's next: Utah House Speaker Mike Schultz told our Samuel Benson that Utah intends to submit its waiver request 'within the next few days.' They must do so before July 1, as mandated by their state legislature. Row Crops — Rollins will be in Nebraska today with Gov. Jim Pillen and Rep. Adrian Smith (R-Neb.). — Brazil announced its first outbreak of bird flu on a commercial farm. (Reuters) — The New York Times asks: What if a grocery store was more like a farmers' market? — President Donald Trump's special envoy to the Middle East Steve Witkoff said it is 'logistically complicated' to feed hungry Gazans. THAT'S ALL FOR MA! Drop us a line and send us your agriculture job announcements or events: gyarrow@ marciabrown@ jwolman@ sbenson@ rdugyala@ and gmott@
Politico
17-03-2025
- Business
- Politico
USDA preps for farm aid rollout
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 gyarrow@ As always, don't forget to follow us at @Morning_Ag for more. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. 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. THAT'S ALL FOR MA! Drop us a line and send us your agriculture job announcements or events: gyarrow@ marciabrown@ jwolman@ sbenson@ rdugyala@ and gmott@
Politico
03-03-2025
- Business
- Politico
What's next for Brooke Rollins
Presented by QUICK FIX — Donald Trump is expecting to introduce sweeping tariffs this week — and farmers are closely watching Brooke Rollins. — USDA is establishing a new program to release billions in aid to agricultural producers. — DOGE's cuts are also jeopardizing California farmers' ability to access water. IT'S MONDAY, MARCH 3. Welcome to Morning Agriculture. I'm your host Grace Yarrow, searching for a good King Cake for Mardi Gras in D.C. Don't forget to follow us at @Morning_Ag for more from your favorite ag team. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Driving the day ROLLINS TAKES ON TARIFFS: As Trump gears up to roll out his sweeping tariff threats, Agriculture Secretary Brooke Rollins is promising farmers she'd be 'in the room' to protect them from the economic repercussions. Speaking to producers and industry groups at the Commodity Classic in Colorado yesterday, Rollins promised to support farmers in the face of tariffs, the department's overhaul and the 'Make America Healthy Again' push. Trump's tariffs: Rollins has said she'll bail out farmers who are targets for any retaliation as a result of Trump's tariff threats, as former USDA chief Sonny Perdue did during the first Trump administration. (Though MA readers will recall the bucket of funds to do so are running low.) Trump pledged last week to enforce his planned 25 percent tariffs on Canada and Mexico starting tomorrow, after both were put on pause in February. It's unclear how final the president's decision might be, as our colleagues reported. 'I know firsthand how important trade is to your success,' Rollins told producers Sunday. 'And I am committed, as a very top priority, to work with this president to travel this world and expand market access for all of our crops and all of our producers.' Funding freezes: Rollins also told farmers she would release funds under the Environmental Quality Incentives Program (EQIP), Conservation Stewardship Program and the Agricultural Conservation Easement Program, acknowledging farmers' worries about the major federal spending freeze. USDA has paused much of its spending that was already allocated to farmers and programs, causing chaos and uncertainty among those who weren't sure if they'd get the money they expected. It's unclear if Rollins' announcement referred to the $20 million in already-unfrozen funds or marked a second tranche of funding released. 'I know this review process has caused concern,' Rollins said. 'And I don't say any of this flippantly. I know that among you who have participated in longstanding USDA programs, in many instances, you had no way of knowing whether these programs were funded through the farm bill or through the latest IRA funds from Joe Biden.' Department overhaul: USDA is also working (and struggling) to rehire some employees who handle the bird flu response and loans for farmers. They're also facing a major 'reduction in force' effort and are requiring employees to come back to USDA headquarters, as Rollins touted yesterday. 'My team will be available to answer your calls 24 hours a day, seven days a week,' Rollins said. 'And if not, give me their name, because as you may have heard, our team is now seeing a little bit of reduction in force across the federal government.' More economic aid: USDA will also be launching the Emergency Commodity Assistance Program, a new program the department will use to release $31 billion in economic and disaster aid allocated by Congress. Rollins said they're on track to roll out the $10 billion in economic aid to farmers in coming weeks and are focusing on streamlining applications for producers to receive disaster relief dollars. On MAHA: The secretary also said she will protect farmers' interests during discussions about policy updates to make, as farmers and food industry leaders worry about potential bans on some pesticides and GMOs. 'As we speak on efforts to make America healthy again, I am certain that we will do so in a way that does not compromise you and your farms and your farming practices,' Rollins said. Bird flu: Rollins also unveiled her initial plan to respond to the bird flu outbreak last week. But some egg producers and lobbying groups are urging USDA to keep working harder on plotting a poultry vaccine response, which they argue could be vital to protecting the industry from ruin. USDA is still negotiating with other countries like Turkey to get deals to import more eggs into the U.S. What did you do last week? USDA employees also received new requests from the Office of Personnel Management asking them to send in what they did last week, according to a copy of the email viewed by MA. Public-sector employees across the government, who have been buffeted in recent weeks by large-scale firings orchestrated by DOGE, received emails late Friday with an ominous subject line: 'What did you do last week? Part II.' USDA has since instructed employees to keep their responses short and avoid including classified information, links or attachments. The department previously told employees that replying to the email is voluntary and that there will be no penalties for non-response. On The Hill WHAT'S NEXT FOR RECONCILIATION: Both chambers have passed their budget resolutions, kickstarting the process for Republicans to enact their sweeping policy agenda. But now they have to settle on exactly how much they can trim from agriculture spending. The House's plan would require the Agriculture Committee to find $230 billion in savings, which is expected to come largely from the Supplemental Nutrition Assistance Program. Some House Republicans are worried that deep cuts could threaten benefits or doom farm bill talks, but are watching to make sure the $230 billion target comes down enough to prevent any major issues. The Senate budget plan set a floor of $1 billion in cuts from the Agriculture Committee — and Republicans in that chamber won't have enough support for cutting SNAP anywhere close to the House's target. Another thing to watch: Trump and GOP leaders are strategizing how to score and eventually count the revenue from tariffs against Canada, Mexico and China as part of their plans for a deficit-neutral bill. HOUSE AG MEMBERSHIP FINALIZED: Reps. Chellie Pingree (D-Maine) and Salud Carbajal (D-Calif.) are officially back on the House Ag Committee this Congress. House Democrats finalized waivers for members to fill up the Ag Committee's two open Democratic slots. Several Democrats who were on the panel last Congress — including a couple of senior members — will not be on the committee this year: Reps. Marie Gluesenkamp Perez (Wash.), Jasmine Crockett (Texas), Greg Casar (Texas), Darren Soto (Fla.) and Sanford Bishop (Ga.). SENATE DEMS ASK: Amy Klobuchar (D-Minn.), the top Democrat on the Senate Ag Committee, and Sen. Raphael Warnock (D-Ga.) led 13 other Democrats in writing to Rollins to encourage the swift disbursal of disaster assistance for farmers. The senators pointed to tariff threats and other economic concerns farmers are facing as they prepare for the coming months. 'Farmers are making decisions right now about fertilizer usage and their crop mix and are working with their bankers to figure out if they can secure the financing they need to continue farming this year,' they wrote. Congress passed $21 billion in disaster relief and $10 million in economic aid for farmers at the end of 2024. DOGE WATCH WATER WOES IN THE GOLDEN STATE: DOGE-ordered firings at the federal agency responsible for delivering water to farms and cities across California are getting in the way of Trump's order to maximize the state's water supplies, our Annie Snider and Camille von Kaenel write. The Bureau of Reclamation's California office has lost 10 percent of its staff due to buyouts and orders by Elon Musk's so-called Department of Government Efficiency to fire short-tenured employees, according to three people close to the office who were granted anonymity because they feared retaliation. DOGE's cuts are already hurting Reclamation's ability to move water through a sprawling system of pumps, canals and reservoirs to roughly a third of the state's farmland — and impeding the agency's ability to ratchet up deliveries in line with Trump's demand, the people said. The sharp cuts' impact on a dusty corner of the federal bureaucracy that has taken outsized importance in the president's mind offers a case study in how DOGE's bulldozer approach stands to upend one of the president's dearest policy goals. Trump's long-running feud with state Democrats over water restrictions escalated in January when the president falsely linked hydrants that had run dry during the Los Angeles wildfires to those restrictions. His first month in office was marked by an obsessive focus on the state's water issues, with the White House issuing not one, but two executive orders on the topic and ordering an abrupt water dump from a pair of dams. Row Crops — Rep. Monica De La Cruz (R-Texas) said she's working with Trump's legislative affairs team to obtain water that's owed to the U.S. by Mexico. The missing water deliveries, as required under a 1944 treaty, has hurt citrus and sugar farmers in South Texas. — The Senate Ag Committee still hasn't received paperwork required to move forward with Stephen Vaden's nomination to be deputy secretary of USDA. — Leaders of 1890 universities wrote to congressional leaders in support of USDA-funded ag research and the 1890 National Scholars Program, which was paused and unpaused by the department recently. THAT'S ALL FOR MA! Drop us a line and send us your agriculture job announcements or events: gyarrow@ marciabrown@ jwolman@ gmott@ and rdugyala@
