USDA issues proposed rule

Over the past month, USDA made a string of announcements advancing the Biden-Harris Administration’s action plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain, as well as the efforts at USDA to boost competition and expand domestic production in the fertilizer industry.

Under a proposed rule issued by USDA on March 6, the voluntary “Product of USA” label will now require all steps in the production chain occur in the U.S. in order for a meat or egg product to bear the label. Secretary Tom Vilsack announced this rule while speaking at NFU’s national convention in San Francisco.

The current rules for the label allow meat from animals that spent some of their lifespan outside of the U.S. to be labeled as “Product of USA,” which runs counter to consumer expectations from such a label. While this new rule is a not a replacement for mandatory country-of-origin labeling, it is a major step in the right direction.

USDA also announced nearly $200 million in investments to increase independent meat and poultry processing capacity. The investments were announced as part of the Meat and Poultry Processing Expansion Program (MPPEP) and the Meat and Poultry Intermediary Lending Program (MPILP). The programs are aimed at helping processors increase capacity and finance independent processing startups.

As part of USDA’s Fertilizer Production Expansion Program (FPEP), USDA announced a $29 million investment to help increase production of American-made fertilizer, as part of the Biden-Harris Administration’s efforts to spur competition, provide U.S. farmers with more choices and fairer prices, and reduce dependence on foreign fertilizer sources, such as Russia and Belarus.

In May 2022, amidst robust demand, President Biden directed USDA to increase the program from $250 million to $500 million. USDA received nearly $3 billion in applications for crop years 2023 and 2024. As fertilizer prices have skyrocketed due to a lack of competition in the industry and Russia’s invasion of Ukraine, the FPEP program will be critical to ensuring the long-term availability of American-made fertilizer for farmers.

Epa Approves E15 Usage In 8 States

Throughout March, there have been several developments in Congress and from the Biden Administration that will have major implications for the production of biofuels in the years ahead.

On March 1, EPA approved petitions from eight states to allow for year-round sales of E15, starting in 2024. The proposal covers petitions from Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin. NFU has urged the Biden Administration to allow E15 usage for the upcoming summer driving season, as was done last year.

Over on Capitol Hill, two key pieces of legislation have been reintroduced in the 118th Congress. On March 14, Sens. Deb Fischer (R-NE) and Amy Klobuchar (D-MN) introduced the Consumer and Fuel Retailer Choice Act of 2023. This legislation will enable the yearround, nationwide sale of E15 and permanently extend the Reid vapor pressure (RVP) volatility waiver to ethanol blends above 10 percent, providing nationwide uniformity across U.S. fuel markets.

On March 22, Sens. Chuck Grassley (R-IA) and Amy Klobuchar (D-MN) announced the reintroduction of the Next Generation Fuels Act, with Rep. Miller-Meeks sponsoring the House companion. This legislation establishes a minimum research octane number (RON) standard of 98 for gasoline, requires the added octane value to reduce carbon emissions by at least 40 percent compared to regular gasoline, and incentivizes vehicle technologies that reduce greenhouse gas emissions and increase fuel economy.

NFU will pursue the passage of both bills this Congress. NFU supports efforts to expand the production and sale of E15, while noting use of higher-level blends of ethanol, like E30, would add additional benefits to the economy, the environment and America’s farmers.