Federal News
Federal move to tighten work requirements for food stamps stirs worry about village hunger
Anchorage Daily News | Posted on January 2, 2019A new rule proposed by the U.S. Department of Agriculture has drawn alarm from food security advocates in Alaska because it would make it tougher to waive work requirements for food stamps. Some are concerned about the impact that would have on people who live in subsistence-dependent villages where there are few jobs.For years, Alaska has had a waiver that means recipients of the Supplemental Nutrition Assistance Program — also known as food stamps — are exempt from a rule about how much able-bodied adults without dependents have to participate in an employment program to get assistance.In some villages that depend on subsistence, cash economies are weak and there are not enough full-time jobs to employ all the adults. Residents contribute to the community food supply by hunting, fishing, gathering and sharing. Food stamps help supplement that subsistence diet.Earlier versions of the farm bill sought such changes to SNAP, but they didn’t make it into the final bill passed in December. The USDA is now proposing the change related to work requirements through a rule the agency announced on Dec. 20.The proposed rule would make it harder for states to get the statewide waiver, said Monica Windom, director of the Alaska Division of Public Assistance.
2018 Farm Bill: The Good, the Bad and the Ugly
Ag Policy | Posted on January 2, 2019As we began reading details from the recently passed 2018 Farm Bill, it reminded us of the old 1960s Spaghetti Western starring Clint Eastwood, Lee Van Cleef, and Eli Wallach, “The Good, the Bad and the Ugly,” except in this case no one is likely to end up with the gold. Let’s start with the good.The farm bill eliminates the long-standing prohibition against the growing of industrial hemp on US farms. In addition, the recently passed legislation increases the maximum number of acres that can be enrolled in the Conservation Reserve Program from 24 million to 27 million acres. With 5 years of generally increasing year-ending stock levels that have resulted in low crop prices, the taking of 3 million acres out of production and adding a crop that will compete with existing crops for planted acreage has to be a good thing. These changes may not be enough to restore farm profitability, but in today’s dire financial straits every little bit helps. The bad.The 2018 Farm Bill kept the payment limitation threshold at $900,000 a year in adjusted gross income instead of lowering it to the $700,000 limit that was in the Senate version. Even more troubling is the expansion of those who are allowed to receive farm program payments to more distant relatives of farmers including first cousins, nieces, and nephews, even if they aren’t directly involved in agricultural production.
More on the Farm Bill
Daily Independent | Posted on January 2, 2019But the new Farm Bill also has a lot of other good attributes. They include: — Reform of the failed insurance program for dairy farmers. The old system is known as the Margin Protection Program and it was a failure. A lot of dairy farmers facing difficult markets and prices couldn’t get relief from the program despite contributions to it. Now, according to news outlet WWNY, the new changes include improved premium programs and making it cheaper for farms of any size to enroll in the coverage.— AgWeek reported the new Farm Bill gives more flexibility between Agricultural Risk coverage and Price Loss coverage and increases commodity loan rates for many crops.— Cuts to food stamps are not in the new Farm Bill.— It costs the taxpayer nearly $1 trillion, but this is what has been budgeted. This means it will not have an additional impact on the defict, according to the Washington Post.— There is now permanent funding available for farmers markets and local food programs.Not everything in the farm bill is good. Curiously, the new farm bill allows a farmer’s cousins, nieces and nephews to qualify for commodity program payments. Sen. Charles E. Grassley told The Washington Post that “I’m very disappointed the conferees decided to expand the loopholes on farm subsidies,” Grassley said before the vote. “I’ve been trying to make sure the people who get the subsidies are real farmers. … I’ve been trying for three years, and it gets worse and worse and worse.”
The farm bill, hemp legalization and the status of CBD
Brookings | Posted on January 2, 2019Typically, cannabis is not part of the conversation around farm subsidies, nutritional assistance, and crop insurance. The new Farm Bill does not create a completely free system in which individuals or businesses can grow hemp whenever and wherever they want. There are numerous restrictions. Hemp cannot contain more than 0.3 percent THC, per section 10113 of the Farm Bill.Second, there will be significant, shared state-federal regulatory power over hemp cultivation and production. Under section 10113 of the Farm Bill, state departments of agriculture must consult with the state’s governor and chief law enforcement officer to devise a plan that must be submitted to the Secretary of USDA. A state’s plan to license and regulate hemp can only commence once the Secretary of USDA approves that state’s plan. In states opting not to devise a hemp regulatory program, USDA will construct a regulatory program under which hemp cultivators in those states must apply for licenses and comply with a federally-run program.
Bioengineered food label rules draw criticism
Capital Press | Posted on January 2, 2019While farm groups are pleased with USDA’s new disclosure standard for bioengineered foods, others are not. Some public interest and environmental advocacy groups contend the standard is deceptive and doesn’t go far enough to identify genetically modified foods and inform consumers.They take issue with the term “bioengineered,” the permitted methods of disclosure and the omission of foods they say should be labeled as genetically modified.“This deceptive rule will keep people in the dark about what they’re eating and feeding their families,” Wenonah Hauter, director of Food & Water Watch, said in a statement.“It is meant to confuse consumers, not inform them. This deception is a tool being utilized to maximize corporate profits, plain and simple, she said.The use of “bioengineered,” rather than GMOs, is a deceptive strategy because consumers don’t know what that means. In addition, the use of digital codes and other technology makes GMO disclosure more difficult for consumers, and the definitions of what triggers labeling are far too limited, she said.Options for disclosure include text, symbol, electronic or digital link, text message and a phone number or web address where consumers can access information.The standard does not apply to foods such as meat, milk and eggs derived from animals fed forage or grain developed through biotechnology. It also does not apply to highly refined products such as sugar or oil derived from biotech crops.
U.S. Farmers Fear Lucrative Japanese Exports Will Wither
The Wall Street Journal | Posted on January 2, 2019After seeing exports to China tumble, U.S. farmers and ranchers are now bracing for more losses in their next-biggest Asian market: Japan. On Dec. 30, Tokyo will begin cutting tariffs and easing quotas on products sold by some of American agriculture’s biggest competitors—including Canada, Australia, New Zealand and Chile—as part of the new 11-member Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
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China bans raising pigs in wild boar areas to block swine fever
Reuters | Posted on January 2, 2019China’s agriculture ministry will ban pig farming in areas inhabited by wild boars to prevent the spread of highly contagious African swine fever. China, the world’s top pork producer, has reported more than 80 outbreaks of African swine fever across the country since early August, leading to the culling of hundreds of thousands of pigs.The ministry said last month a strain of the virus found in a wild boar was different from the one circulating among pigs, and it warned of the risks of an additional strain infecting its domestic herd.
Farm Bill Signed, SNAP Proposal Released, and Trade Aid Payments Approved
Farm Policy News | Posted on December 27, 2018President Trump signed the Farm Bill into law on Thursday, the same day the executive branch proposed a rule that could impact participation in the SNAP (food stamp) program. And earlier this week, USDA announced that a second installment of payments would be made to some producers negatively impacted by ongoing trade disputes.
Growth in tenth district manufacturing slowing
https://www.kansascityfed.org/~/media/files/publicat/research/indicatorsdata/mfg/2018/2018dec21mfg.pdf?la=en | Posted on December 27, 2018The Federal Reserve Bank of Kansas City released the December Manufacturing Survey revealing that growth in Tenth District manufacturing activity slowed, while expectations for future activity edged slightly higher. Price indexes were mixed, with a considerable drop in month-over-month price indexes but higher prices expected in the next six months. The month-over-month composite index was 3 in December, down from 15 in November and 8 in October (Tables 1 & 2, Chart 1). The composite index is an average of the production, new orders, employment, supplier delivery time, and raw materials inventory indexes. The slowdown in factory growth was driven by both durable and nondurable goods producers, particularly metals, electronics, and petroleum/coal products. Most month-over-month indexes fell from the previous month’s reading, although the majority remained in positive territory. Exceptions included production, dropping from 24 to -18, and shipments, falling from 31 to -3, and new orders for exports, decreasing from 6 to -7. The employment index edged slightly higher, and new orders and order backlog indexes remained moderately positive. The materials inventory index rose from 15 to 19 and the finished goods inventory index also moved up.
Dairy Provisions in the 2018 Farm Bill
Farm Doc Daily | Posted on December 24, 2018Premiums and coverage levels are presented in Figures 1 and 2 for the 2014-2017 period of the 2014 farm bill vs. the 2019-2023 period of the 2018 farm bill. This comparison argues that, for dairy commodity support policy, the Bipartisan Budget Act of 2018 and Agricultural Improvement Act of 2018 should be treated as the 2018 farm bill. Taken together the two bills expand the covered milk production history that qualifies for Tier I protection by 25% (5 vs. 4 million pounds), substantially reduce Tier I premiums (for example, by 79% at the $8.00/cwt. coverage margin), adds higher Tier I coverage margins ($8.50, $9.00, and $9.50 per cwt.), and expands the share of production history a dairy can elect to cover from 25%-90% to 5%-95%, with both ranges at 5% increments. By allowing coverage down to 5%, herds with production up to 100 million pounds (approximately 4,000 average milk cows) can limit covered milk production to Tier I. In contrast, Tier II premiums are raised at coverage margins above $5.50/cwt. (for example, by 34% at the $8.00/cwt. margin). Covered production history is the largest production in 2011, 2012 or 2013.