Weekly Update for
October 3

Last week, NAWG Treasurer Jamie Kress published an oped in Capital Press on the need to pass a farm bill this year that includes NAWG’s trade and food aid policy priorities. “Wheat farmers are grateful for the work being done in Congress to create a farm bill that invests in the farm safety net, as well as the trade title. We need wheat growers to help spread the word and tell the story of why getting a farm bill done this year is necessary and how it would help grow our national economy. We encourage farmers to continue meeting with their lawmakers at home and in Washington, D.C., to reiterate the need to pass a bipartisan and robust farm bill this year. Farmers’ voices need to be heard if we are to get a farm bill done this year.” Read the entire oped below.

On October 1, dockworkers across the East Coast and Gulf of Mexico went on strike after failing to reach a labor agreement between the unions and port operators. With 40 percent of all agriculture exports sent through the area ports, this is a major industry issue. The strike affecting 36 ports is the first by the union since 1977. There are nearly 100,000 containers in New York City-area ports alone waiting to be unloaded, now frozen by the strike, and 35 container ships headed to New York over the coming week, said Rick Cotton, executive director of the Port Authority of New York and New Jersey. With each passing day, $5 billion in economic activity is lost due to the impacts on trade. USDA Secretary Vilsack weighs in on the issue, highlighting the importance of these ports to agriculture trade. He shared that the Biden administration has urged both parties to resolve their differences “we're going to figure out ways in which we can be as helpful as we can. But for now, the message is quite clear, stay at the table, continue to bargain and get it worked out.” Yesterday, NAWG joined 270 other trade associations in sending a letter to President Biden urging him to use his authority to end the port strike, get the ports open, and get the parties back to the negotiating table. Additionally, NAWG joined an Agriculture Transportation Working Group letter last week that highlighted several cross-cutting supply chain issues impacting the port strikes, rail challenges with Mexico, and historically low water levels on the Mississippi River. This letter asked for continued and urgent involvement to help mitigate these challenges as producers are facing lower commodity prices and financial strain. Read the letters below.  

Registration is now open for the NAWG/USW 2024 Fall Meeting! This event is scheduled for Tuesday, November 12 through Thursday, November 14, 2024, in Phoenix, AZ, at The Sheraton Grand at Wild Horse Pass Hotel. We would encourage officers and staff to arrive before lunch on Tuesday, November 12, in time for the National Wheat Foundation board meeting. Regarding departures, the NAWG board of directors meeting is scheduled to end at noon on Thursday, November 14. The airport is a 20-minute drive from the hotel. Please plan your travel accordingly. You will find everything you need on our Wheat Industry Fall Conference website page. The deadline to register and book your hotel room is October 18.

While the Farm Bill expired on September 30, impacts will not be immediate for most of agriculture, and Congress has until the end of the year to either pass a long-term farm bill or pass another extension. Some programs, such as crop insurance, are permanently authorized, do not expire, and would not be affected by farm bill expiration. For the commodity programs (ARC/PLC) that expire after the 2024 crop year, the consequences of expiration begin on January 1, 2025, when inactive and outdated laws—commonly called “permanent law”—would be restored when its marketing year begins. Some programs had their expiration dates extended beyond the expiration of the farm bill by the Inflation Reduction Act of 2022, extended some—but not all—conservation programs through FY2031. Enrollments in the Conservation Reserve Program will end but exiting contract holders will continue to receive payments. For programs with a fiscal year authorization that are funded with discretionary appropriations (US Wheat and Barley Scab Initiative) an appropriations act or continuing resolution could allow operations to continue.

On September 27, Reuters reports significant backlogs on the railroad trade exports from the U.S. to Mexico. Currently, Mexico’s imports of agricultural products increased by 27% from the first two quarters of the year. Union Pacific Corporation and BNSF briefly stopped issuing permits for grain trains to Mexico because of logistical issues but have now started reissuing permits. This brief permit delay has already caused significant backlog problems.  

On September 30, U.S. Trade Representative and USDA reports over $26.7 billion in market access for agriculture goods abroad. This feat includes lower tariffs in India markets and better Mexico trade relations. The USDA-USTR news release said the expanded market access has contributed to "the four largest annual export values between 2021 and 2024, including a record-high of $196 billion in agricultural exports in 2022."

On October 2, the Vice-Presidential debate had a special focus on agriculture, trade, and clean energy. Governor Walz (D-MN) highlighted the actions of farmers in support of more climate-smart practices. “'Look, I harvest corn, soybeans, and harvest wind.' We're producing more natural gas and more oil any time that we ever have. We're also producing more clean energy. So, the solution is for us to continue to move forward that climate change is real.” Senator Vance (R-OH) focused his argument on increasing manufacturing and processing back into the U.S. In the trade discussion, Walz focused on the needs of corn, soybeans, and wheat that were being exported. He stated plainly, “We need fair trading partners."

On October 2, the USDA announced an increased investment in climate-smart practices on agricultural lands in part due to the Inflation Reduction Act. This doubles conservation assistance through the Natural Resources Conservation Service. Agriculture Secretary Tom Vilsack shares, “This funding will be used to maximize climate benefits across the country while also providing other important conservation and operational benefits, which will lead to economic opportunity for producers, and more productive soil, cleaner water and air, healthier wildlife habitat, greater connectivity, and natural resource conservation for future generations.”

On October 2, the EPA announced its final ruling on the pesticide Application Exclusion Zone (AEZ) in accordance with the 2015 Agricultural Worker Protection Standard. With this action, EPA is finalizing its 2023 proposed rule without change. The final rule reinstates several 2015 WPS provisions protecting farmworkers and bystanders. This includes the AEZ suspension requirement, which will apply beyond the boundaries of the agricultural establishment, among others. EPA will release interim guidance by the end of October to support the regulated community in complying with the new rule and will accept feedback on how to improve the guidance after its release.

On September 24, U.S. Farmers and Ranchers in Action helped host the NYC Climate Week discussion on the Potential for U.S. Agriculture to Be Greenhouse Gas Negative. The conversation focused on soil carbons and how agriculture can reduce greenhouse gas emissions. As an industry partner with USFRA, the report mentioned agriculture as a solution for climate change provides significant opportunities for farmers in this changing space.

The National Wheat Foundation Fall Board meeting will be held in Phoenix, Arizona on Tuesday, November 12 1-4 pm MST. All are welcome to attend this meeting.  We have Erin Ball, Grain Foods Foundation Executive Director joining us to speak about the Dietary Guidelines, as well as our regular board business including committee reports, yield contest updates and educational program information.  Register on the NAWG website below.

The National Wheat Foundation General Counsel John Dillard has drafted a letter that informs growers on Ticket Selling Obligations. NWF highly recommends that you read the letter and watch the video below. Both are extremely helpful and necessary for sellers to gain a grasp on the Dos & Don’ts of ticket selling.