Washington Outlook

by Robert L. Redding Jr.

House Leadership Introduces Fourth COVID-19 Stimulus Package

The U.S. House of Representatives passed the HEROES Act, what is now being touted as the fifth COVID-19 stimulus package by a vote of 208-199 largely along party lines.

Previous COVID-19 economic stimulus legislation signed by the President included: • Coronavirus Preparedness and Response Supplemental Appropriations Act - March 6. • Families First Coronavirus Response Act - March 18; • Coronavirus Aid, Relief, and Economic Security (CARES) Act - March 27 • Paycheck Protection Program and Health Care Enhancement Act - April 24

The HEROES Act bill expands upon current farm payment programs and provides for increased nutritional assistance.

As reported last month, upon introduction, the following agricultural provisions are part of the legislation: • Expanded direct payment provisions for price losses due to the virus • Specialty crop block grants to state departments of agriculture • $50 million to support local farmers • $50 million for beginning farmers and ranchers • Assistance for food processing facilities • $20 million for mental health programs for farmers • Additional broadband funding • Additional $10 billion in SNAP funding • Additional $1.1 billion for Women Infants and Children (WIC) nutrition funding • Includes $150 million for The Emergency Food Assistance Program (TEFAP) • $3 billion for Child Nutrition Programs.

The U.S. Senate is discussing their fifth COVID-19 economic stimulus legislation. It is not anticipated that the Senate will consider the HEROES Act but possibly use some of the House provisions as part of their package. The Senate will likely move their bill prior to leaving town for the August break.

President Trump Signs Paycheck Program Flexibility Act

A number of farmers and agribusinesses have participated in the Paycheck Protection Program (PPP) established in the third COVID-19 stimulus legislation or CARES Act. Congress has moved forward with additional reforms for the PPP program through the passage of the Paycheck Protection Program Flexibility Act.

Key provisions: • Extends the forgiveness period to 24 weeks. • Replaces the 75/25 rule with at 60/40 rule. • Allows all new PPP loans to receive a 5-year maturity. Existing loans will remain at a 2-year maturity. • Allows businesses that receive forgiveness to also receive payroll tax deferment. • Ensures small businesses won’t be penalized by high unemployment benefits. • Creates a safe harbor for businesses that are required to open at only 50 percent capacity.

The House and Senate Small Business Committees have held numerous hearings on the PPP and other USDA COVID19 stimulus related programs. At a June 10 Senate Small Business & Entrepreneurship Committee hearing, with U.S. Treasury Secretary Steven Mnuchin and Small Business Administration (SBA) Administrator Jovita Carranza testifying, the discussion included comments about the needs for additional economic stimulus assistance. Separately, there are coalitions in Washington seeking long-term capital economic assistance for businesses.

Ahead of the fifth stimulus consideration in the Senate, Senate Small Business Committee Chairman Marco Rubio, R-Florida, is discussing moving an additional PPP reform bill. The Senate has not scheduled this legislation to date.

Congressional Committee Update

House and Senate committees continue to meet with varying formats, including virtual hearings, limited member in-person attendance in committee rooms (speakers only) and special social distance spacing in the committee rooms.

Both the House and Senate Agriculture Committees have been meeting and the House Agricultural Appropriations Subcommittee will mark-up their Fiscal Year 2021 legislation in early July. The U.S. Peanut Federation has requested peanut aflatoxin research funding for the U.S. Department of Agriculture’s Agricultural Research Service.

USTR Robert Lighthizer Testifies before Congress

U.S. Trade Representative Robert Lighthizer testified before the House Ways and Means Committee and the Senate Finance Committee to discuss the President’s 2020 trade policy agenda. Ambassador Lighthizer’s opening remarks before the Ways and Means Committee follow:

“We’ve been going through two crises. These are indeed challenging times. I thought of many of you often during these crises. I’m confident that if we work together in good faith, as we have in the past, we will get through these problems, heal and move forward. Hopefully, things will be even better than they were before. In some ways these problems make talking about international trade seem less important. But in other ways perhaps rebuilding our economy, helping to create good paying jobs for all Americans, securing fairness for our businesses and bringing back manufacturing can be part of the solution to bringing us all together as one great country again.

“We have been isolated and quarantined so long that I fear we might forget the great achievement of the last few months. Together Republicans and Democrats, House and Senate, worked closely with the Administration to write and pass the biggest – and I would say best –trade agreement in American history, USMCA. We should not forget how important that was for our country and for our workers and businesses and ranchers and farmers. I’d like to again thank all of you for working with me on that. Together we had an historic accomplishment.

“I would also like to thank you for your support and help as we worked our way through the China Phase One Agreement – the Congress had an important role in that – a very important US-Japan Agreement, and numerous smaller trade achievements during the last year. Together I think we have helped our workers, farmers, ranchers and businesses.

“Going forward there is much to achieve. As we all know, we have active negotiations ongoing with the United Kingdom. We will very soon commence negotiations with Kenya. Finally, we have active engagements on trade with numerous other countries and, of course, I look forward to working with Members on the crucial issue of the WTO.

“Thank you to all Members for working so closely with me, for making time to talk to me and to meet with me, for having your staffs work so closely with USTR, and for making our end product consistently better than it would have been without your involvement.”

Farm Service Agency County Committee Nominations

USDA’s Farm Service Agency (FSA) began accepting nominations for county committee members on June 15, 2020. Elections will occur in certain Local Administrative Areas (LAA) for these members who make important decisions about how federal farm programs are administered locally. All nomination forms for the 2020 election must be postmarked or received in the local FSA office by Aug. 1, 2020.

Agricultural producers who participate or cooperate in an FSA program, and reside in the LAA that is up for election this year, may be nominated for candidacy for the county committee. Individuals may nominate themselves or others, and organizations, including those representing beginning, women and minority producers, also may nominate candidates.

Committee members are vital to how FSA carries out disaster programs, as well as conservation, commodity and price support programs, county office employment and other agricultural issues.

Nationwide, more than 7,700 dedicated members of the agricultural community serve on FSA county committees. The committees are made of three to 11 members and typically meet once a month. Members serve threeyear terms. Producers serving on FSA county committees play a critical role in the day-to-day operations of the agency.

Producers should contact their local FSA office today to find out how to get involved in their county’s election. Check with your local USDA service center to see if your LAA is up for election this year. To be considered, a producer must sign an FSA-669A nomination form. The form and other information about FSA county committee elections are available at fsa.usda.gov/elections.

Election ballots will be mailed to eligible voters beginning Nov. 2, 2020.

USDA Issues First Coronavirus Food Assistance Program Payments

U.S. Secretary of Agriculture Sonny Perdue recently announced the USDA Farm Service Agency (FSA) has already approved more than $545 million in payments to producers who have applied for the Coronavirus Food Assistance Program. FSA began taking applications May 26, and the agency has received over 86,000 applications for this important relief program.

“The coronavirus has hurt America’s farmers, ranchers, and producers, and these payments directed by President Trump will help this critical industry weather the current pandemic so they can continue to plant and harvest a safe, nutritious, and affordable crop for the American people,” says Secretary Perdue. “We have tools and resources available to help producers understand the program and enable them to work with Farm Service Agency staff to complete applications as smoothly and efficiently as possible and get payments into the pockets of our patriotic farmers.”

FSA will accept applications through August 28, 2020. Through CFAP, USDA is making available $16 billion in financial assistance to producers of agricultural commodities who have suffered a five-percent-or-greater price decline due to COVID-19 and face additional significant marketing costs as a result of lower demand, surplus production, and disruptions to shipping patterns and the orderly marketing of commodities.

New customers seeking one-on-one support with the CFAP application process can call 877-508-8364 to speak directly with a USDA employee ready to offer general assistance. This is a recommended first step before a producer engages the team at the FSA county office at their local USDA Service Center.

Producers can download the CFAP application and other eligibility forms from farmers.gov/cfap. More information can be found at farmers.gov/coronavirus.