USTR challenges Canadian tariff rate quotas again

The Office of the U.S. Trade Representative is moving forward and seeking a second dispute settlement panel against Canada and its dairy policy. The United States won its first dispute panel over Canada’s unwillingness to obey the tariff-rate quota provisions of the U.S.-Mexico-Canada Agreement. Canada revised its approach to TRQs this past year, but the USTR contends the new policy also provides unfair advantages to Canadian dairy processors. “Canada’s TRQ allocation system is not only a violation of USMCA, it directly harms American dairy farmers, processors and other workers by unfairly restricting access to their market,” said Jim Mulher, president/CEO, National Milk Producers Federation.

Ready to complete the farm bill this year
House Agriculture Committee Chairman Glenn “GT” Thompson is committed to passing a new farm bill this year. “An extension is not what I prefer; I want to get the job done,” Thompson said. “I’m confident that if we lean in together and we do this in a bipartisan way and a bicameral way, we get this done before it expires at the end of September.” A divided government often brings fear of gridlock. Thompson said the thin margin will keep Congress more realistic and thwart unreasonable amendments. “This is probably the most important bill for people that eat,” he said. “Oh, that would be every American.”

Federal order reform coming
Federal Milk Marketing Order reform will be part of the farm bill debate. “You can’t keep doing what you’ve always done and expect different results,” Thompson said. “We’ve been bleeding dairy farms; (Without change,) we will get to the point where we will be buying fluid milk and dairy products from other countries and that is food insecurity.” Thompson said Dairy Margin Coverage has worked well, but his committee will learn more during the hearings and regional farm bill listening sessions.

An opportunity for legislation that everybody needs  
Neither party has an overwhelming majority in Congress. Minnesota Rep. Michelle Fischbach sees a silver lining to the situation. “I see it as an opportunity because I think then you’re going to get bills that reflect what everybody needs and what the country needs,” Fischbach said. “We can’t just put something out and say take it or leave it; we’re going to have to be talking about it and make sure it fits what people need.” Speaker Kevin McCarthy has agreed to an open rule, leaving the possibility for hundreds of amendments to a bill. That could be a negative situation with a complex farm bill. Fischbach is a member of the House Rules Committee and believes this can be addressed. “Each bill gets a different rule,” she said. “I think the farm bill is probably a little bit more delicate, so you’ll probably see either a structured rule or potentially a closed rule where there won’t be amendments on the floor but amendments in the other committees.” Fischbach is also a member of the powerful Ways and Means Committee, which has jurisdiction on everything from taxes to trade.

House ag committee passes RFA funding bill
The Minnesota House Agriculture Finance and Policy Committee approved two identical bills that would appropriate $50 million from state bond proceeds for the Rural Finance Authority. HF103 is sponsored by Badger, Minnesota, Republican John Burkel, and HF463 is sponsored by Brooklyn Center, Minnesota, DFL’er Samantha Vang. RFA funds can be used for beginning farmer loans, loan restructuring, ag improvement and livestock expansion loans. The House Capital Investment Committee is the next step for these bills.

Bill guarantees paid family leave
The beginning of the legislative session typically happens at a slow, methodical pace. That has not been the case this year in St. Paul, Minnesota. One of the bills on a fast track would require Minnesota businesses to provide up to 12 weeks of paid family leave and up to an additional 12 weeks of paid sick leave. Cory Bennett, of Bennett Government Consulting, said this proposal would impact farmers. “That’s certainly something that employers are going to have to provide if they’re not providing it already at a certain level; the same with sick time as well,” Bennett said. “After 80 hours, employees can start to accrue hours (for paid family leave), and they will start to have to provide that sick time as well.”

EWG highlights lenders in latest farm payment database
The Environmental Working Group is out with its latest farm subsidy database. Rather than releasing the names of farmers receiving government payments, the U.S. Department of Agriculture is now releasing the name of the bank or financial institution financing the farm’s operating loan. EWG said the Price Loss Coverage program paid out the most money to lenders, accounting for 6% of farm subsidies from 2019 to 2021. The Farm Service Agency received the most payments in 2021 at $87 million. AgriFund, which does business as Ag Resource Management, received nearly $35 million. AgCountry Farm Credit Services is ranked third at $18 million.
 
EWG database described as ‘misleading’
The Environmental Working Group’s so-called Farm Subsidy Database has been highlighting farm program payments since 1995. Rather than releasing the names of all farmers receiving payments, USDA now lists the lender. AgCountry Farm Credit Services President and CEO Marc Knisely said the EWG information is misleading. “The only time a lender is listed as having received this support payment is when the farmer actually makes an assignment to a lender,” Knisely said. “This money does not come to the lender for the lender’s benefit. It is provided on behalf of the farmers and ranchers as a payment to be applied to their loan.” Knisely also takes issue with the EWG characterizing farm program payments as a subsidy. “It is just unfortunate; causing a rift by using terminology like that is disappointing,” he said.

IDFA names chief economist
Mike Brown is the new chief economist for the International Dairy Foods Association. Previously, Brown was the director of the dairy supply chain for the Kroger supermarket chain.

Peterson to consult for IDFA
The International Dairy Foods Association has added three dairy policy consultants. The trio includes former House Agriculture Committee Chairman Collin Peterson, who now leads The Peterson Group. In addition, Chip English of the Davis Wright Tremaine LLP law firm and Steven Rosenbaum of the Covington law firm have signed on with IDFA. Both have experience with federal milk marketing orders.

AgriGrowth executive committee elected
The 2023 AgriGrowth officer team is in place. Associated Milk Producers Inc. CEO Sheryl Meshke succeeds Rod Hebrink of Compeer Financial as AgriGrowth’s chair. Jake Hamlin of CHS is vice chair.

Trivia challenge
Poutine is a classic Canadian dish featuring fries, cheese curds and gravy. That answers our last trivia question. For this week’s trivia, what year did John Deere start producing and selling lawn and garden tractors? We will have the answer in the next edition of Dairy Star.
    Don Wick is owner/broadcaster for the Red River Farm Network, based in Grand Forks, North Dakota. Wick has been recognized as the National Farm Broadcaster of the Year and served as president of the National Association of Farm Broadcasting. Don and his wife, Kolleen, have two adult sons, Tony and Sam, and five grandchildren, Aiden, Piper, Adrienne, Aurora and Sterling.