Stimulus talks stuck on food and farm aid Presented by Boehringer Ingelheim Animal Health

With help from Catherine Boudreau, Liz Crampton and Eric Wolff

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Quick Fix

— The Senate once again failed to advance a trillion-dollar stimulus plan, with Democrats blocking procedural votes as negotiations continue behind the scenes. Among the sticking points was a partisan tug-of-war over expanding food stamps and farm payments.

— House Democrats published their own proposal on Monday night, with supplemental safety net provisions for small- and mid-sized dairy farmers, billions of dollars to boost internet access and extra funding for food banks.

— A new coalition launching today is aiming to shape federal nutrition advice with a focus on diet-related diseases like obesity, hypertension and Type 2 diabetes that disproportionately affect underserved communities.

A message from Boehringer Ingelheim Animal Health: When animals are healthy, people are, too. Our 3,100 U.S. employees enhance the well-being of animals and people by guarding against diseases that threaten their health and our food supply. We’re proud to build on our long history of supporting U.S. producers by supplying a FMD vaccine bank for the USDA. Learn more.

HAPPY TUESDAY, MARCH 24! Welcome to Morning Ag, where your host’s coronavirus quarantine will never be as productive as this Frenchman who ran an entire marathon on his 23-foot balcony. Send tips to [email protected] and @ryanmccrimmon, and follow us @Morning_Ag.

Driving the Day

STIMULUS TALKS STUCK ON FOOD AND FARM AID: The Senate remains deadlocked over a $1.6 trillion stimulus plan backed by Republicans, as House Democrats rolled out their own coronavirus response with some key differences. Farm-state senators took to the floor to air their disagreements over how to help producers who are facing economic fallout from the pandemic, while Democratic leaders pushed for expanded Supplemental Nutrition Assistance Program benefits in the legislation, Pro Ag’s Catherine Boudreau and your host report.

A corn farm. | Justin Sullivan/Getty Images

Talking trade-offs: In exchange for boosting SNAP funds by 15 percent, Democrats would accept provisions to give the Trump administration power to send more money to farmers and ranchers. Specifically, as MA readers recall, the stimulus package would replenish the Commodity Credit Corporation’s borrowing authority and hike the annual borrowing limit from $30 billion to $50 billion for the obscure agency, which was used to fund President Donald Trump’s trade bailout programs for farmers.

But Democrats are wary of giving Agriculture Secretary Sonny Perdue an even bigger “slush fund” to dole out payments to producers, according to a Democratic aide, especially given their complaints about how USDA designed the trade bailouts, which critics say unfairly benefited certain states and commodity sectors.

On the Senate floor, Republicans from major cattle ranching states said Democrats were backing out of a previous agreement on farm aid. Sen. Jerry Moran (R-Kan.) said Republicans tried to accommodate Democrats by revising the language so the CCC funds could be used not only for livestock producers but also for crop growers.

ON THE HOUSE SIDE: Democrats published a competing stimulus package that included no such expansion of CCC borrowing authority — although it did include extra assistance for dairy producers in the form of supplemental dairy margin coverage, the new safety net program enacted in the 2018 farm bill.

The House bill includes an extra $450 million boost for food banks, as well as whatever funds are needed to account for the anticipated increase in food stamp program recipients. It would also grant up to $1 billion in lending authority for USDA’s Business and Industry Loan Program to help rural businesses access credit, and shell out additional billions to keep people digitally connected, per Pro Tech’s John Hendel.

Read up: Pro Budget has a rundown of major differences between the House and Senate plans.

TUNE IN TODAY — Catherine is joining NPR’s 1A at 10 a.m. EST to talk about how the coronavirus is impacting our food system. Take a listen here. And don’t forget to sign up for POLITICO Nightly: Coronavirus Special Edition, your daily update on how the illness is affecting politics, markets, public health and more.

BRASHEARS APPROVED FOR AG UNDERSECRETARY: The Senate on Monday night confirmed Mindy Brashears for USDA undersecretary for food safety, nearly two years since Trump first nominated her. Brashears has been deputy undersecretary since January 2019, when Perdue sidestepped the Senate and named three long-stalled nominees to deputy posts that don’t require confirmation.

For those keeping score at home: USDA is still operating without a full roster of undersecretaries with less than 10 months left in Trump’s first term. Once Brashears is sworn in, five out of eight undersecretary posts will be filled, with vacancies in rural development; research, education and economics; and food, nutrition and consumer services.

AID REQUESTED FOR FRUIT, VEGGIE FARMERS: A bipartisan group of House members are requesting that specialty crop producers receive extra assistance to deal with the impact of the pandemic on their businesses. The lawmakers, led by Rep. Jimmy Panetta (D-Calif.), want USDA to use flexibility when promoting fair trade practices in the sector, as well as to commit to buying fresh fruits and vegetables for federal nutrition programs. They’re also asking for direct support to be provided to producers with customers unable to fulfill their previous purchase commitments. Read the letter here.

NUTRITION DEBATE RAMPS UP AHEAD OF DIETARY GUIDELINES REPORT: Several organizations, including the Academy of Nutrition and Dietetics, NAACP and National Hispanic Medical Association, today formed the Food4Health Alliance to lobby for federal nutrition guidelines tailored to the needs of tens of millions of Americans who have diet-related diseases like hypertension, obesity and Type 2 diabetes — conditions that disproportionately affect minorities and underserved communities.

The current Dietary Guidelines for Americans need to provide a range of recommendations that account for the differing nutritional needs of all demographics, particularly children who are most vulnerable of developing a chronic disease, the Alliance said in a statement.

Influencing Congress, federal agencies: The new coalition comes as the Dietary Guidelines Advisory Committee drafts a 2020 update to federal nutrition advice, which informs policies like the National School Lunch Program. The committee is still accepting public comments until May 11, and in the coming months it will send its report to USDA and HHS for final approval.

“[T]he period during which the scientific report is translated into the official guidelines by the federal agencies and policymakers is a critical point in the process for ensuring reliable and scientifically sound recommendations,” said Norah Deluhery, a spokesperson for the Alliance, noting that its members will be engaging with USDA, HHS and Congress.

Challenging the science: A range of interests, including proponents of certain diets like low-carb or high-fat, have criticized the Dietary Guidelines for not reflecting the best nutrition research. The Low-Carb Action Network, which launched in December, recently alleged that an advisory committee member falsely stated during a meeting that the scientific evidence on low-carb diets was “fairly limited” — when in fact there are 50 such studies.

A USDA spokesperson told MA the advisory committee is “comprehensively” reviewing all studies that meet its criteria. “The public comment remains open for the public to submit any studies for review. USDA has been committed to transparency throughout this entire process and will continue to be through the publication of the final guidelines,” the spokesperson added.

NIH researcher calls for more rigorous nutrition studies: Kevin Hall, an intramural researcher at NIH focused on nutrition and obesity, argued in the journal Science last week that the country needs to invest significantly more money in highly controlled, in-patient studies to improve the field.

Row Crops

— POET, the largest corn ethanol producer in the country, “temporarily ceased corn purchases at a number of locations,” the South Dakota-based company said in a statement. POET expects a 957-million-gallon decline in ethanol demand between March and May, as people stay in their homes and demand for gasoline plummets, our Pro Energy friends tell MA.

— A Sanderson Farms slaughterhouse worker in McComb, Miss., tested positive for the coronavirus, the first publicly confirmed case at a U.S. meatpacking plant. The facility will remain open because the infected worker was contained to a small processing table, according to Sanderson. Reuters has the story.

— The Fertilizer Institute on Monday urged state governors to follow guidance issued by DHS listing the industry as critical infrastructure, allowing employees to continue working during the coronavirus outbreak. The next six to eight weeks are crucial as farmers carry out spring planting activities to grow the food, fuel and fiber for the country, the group said.

— Farmers in Canada’s subarctic Yukon territory are reaping the rewards of increasingly warm weather by harvesting wheat in areas that were once too frigid to grow the grain, Reuters reports. Climate change could also scramble agricultural geography in the U.S., while threatening the industry more broadly with bigger weather challenges like last year’s historic flooding in the Midwest.

— Cotton growers were on the rebound after Trump’s trade war with China sent cotton prices plummeting, until the coronavirus came along, causing factories around the world to close down and slowing trade activity. Cotton prices are nearly a quarter lower than they were at the start of 2020. The Wall Street Journal has more.

— Mark Jekanowski was appointed chairman of the Agriculture Department’s World Agricultural Outlook Board, starting March 29. Jekanowski is the acting chairman of the board, which oversees development of USDA’s monthly World Agricultural Supply and Demand Estimates, an influential source of data for commodity markets. Read the announcement.



A message from Boehringer Ingelheim Animal Health: At Boehringer Ingelheim Animal Health, we know people and animals are connected in deep and complex ways, and we’re dedicated to enhancing the well-being of both. We also believe no animal should suffer from a preventable disease. Our portfolio includes some of the most highly regarded and broadly used vaccines, parasite-control products and pharmaceuticals to help protect livestock, pets and horses. Across the U.S., in places like Georgia, Iowa, Missouri and Minnesota, our 3,100 U.S. employees nurture the inextricable link between animals and people, inspired by the vision of creating a healthier tomorrow for animals and people. We’re proud to build on a long history of supporting U.S. livestock producers by fulfilling a USDA contract to help supply a foot-and-mouth disease vaccine bank. That bank will protect cattle and swine in the event of an FMD outbreak in the U.S. Learn more about Boehringer Ingelheim Animal Health in the U.S.

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