Relentless attacks on U.S. sugar policy continue as we move through the agriculture appropriations process for fiscal year 2016. As of July 7, when this article is being submitted, we expect amendments in both the House and Senate Appropriations Committees over the next two weeks by policy opponents that will attempt to creatively undermine elements of our domestic sugar policy. While appropriators cannot technically “reopen” the farm bill, they can limit funding to carry out various provisions.
Once we get through the committee process, we would fully expect to face amendments on the floor of both Houses. Now the bigger question is whether agriculture appropriations for 2016 will be voted on by either body as a separate bill, or whether it will be grouped with other appropriations bills in a larger package. Past experience would argue that many appropriations bills will be bundled together for an omnibus bill, but no one knows for certain how the bills will be handled; therefore, we must prepare for challenges on the floor in both Houses.
Industry leaders are monitoring this very closely and engaging members and staff to reaffirm their commitment to work together to fight off any attacks on the farm bill. This is also the time for commodity groups and farm organizations to reaffirm their commitment to work together. All farmers, regardless of the commodities they grow, have made business decisions based on the certainty of the provisions of the farm bill being in place for the entire time of the farm bill.
Trade Negotiations
The passage of Trade Promotion Authority (TPA or “fast track”) in June was one of the most convoluted legislative paths anyone has seen in the history in granting the administration the authority to negotiate a trade agreement without congressional amendments to the trade agreement. The fight was between those who wanted the trade negotiations to conclude and those who do not like trade agreements because of the negative impact on workers. Additionally, ultra-conservatives did not want to give President Obama the authority to do anything.
In the end, the president was granted the authority and we are now focused on the final phase of negotiations for the largest free-trade agreement in the history of our nation. The Trans-Pacific Partnership (TPP) negotiations are now hoped to be in the final round for the end of July in Maui, Hawaii. We have been continually reassured by the U.S. Trade Representative that whatever is negotiated on sugar will not undermine the U.S. sugar policy in the farm bill. We are watching this very closely and will have representation at the negotiations to coordinate consultation with the industry, if needed.
The reconstitution of the Agricultural Technical Advisory Committee for Trade in Sweeteners and Sweetener Products whose members are appointed by Agriculture Secretary Tom Vilsack and U.S. Trade Representative Michael Froman include the following:
Beet and CaneGrowers and Processors
Don Phillips (American Sugar Alliance); Jim Johnson (U.S. Beet Sugar Association), Luther Markwart (American Sugarbeet Growers Association); Kevin Price (American Crystal Sugar Company), Jim Simon (American Sugarcane League of the USA Inc.–Louisiana), and Ryan Weston (Hawaiian Commercial and Sugar Company–also Florida and Texas).
Independent Refiners and Melters
Patrick Henneberry (Imperial Sugar Company) and John Yonover (Indiana Sugars, Inc.).
Sugar Users
Perry J. Cerminara (The Hershey Company); Keith Krause (McKee Foods Corporation) and Thomas Earley (Agralytica, Inc.–economist).
Others
Cassandra Kuball (Corn Refiners Association); Roland E. Hoch (Global Organics Ltd.-Cambridge, Mass.) and Arnold Coombs (Bascom Family Farms–Maple syrup producer, N.H.).
Mexico
While there is a great deal of technical work being done on the investigations, there is little to report until the Department of Commerce and the U.S. International Trade Commission make determinations in mid-September.
In the near term, it will be important to see what the July 10 projected supply and demand numbers show, which are used under the suspension agreements to make the first estimate of imports from Mexico for FY 2016 beginning Oct. 1. The Mexican import estimate will be conservative and adjusted upward in September, December, March and April if needed, as the U.S. crop and market are further assessed. Once announced, the import amount cannot be reduced, so it is designed to be conservative at the beginning and expanded later if needed.
Waters of the U.S.
The EPA first proposed the Waters of the U.S. (WOTUS) rule in March, 2014. Despite filed comments by agriculture interests and others that expressed concern that it is an example of the government’s exercise of broad control over land use, and numerous bills in both the House and Senate directing the EPA and Army Corps of Engineers to rewrite the regulations, the final rule is set to take effect Aug. 28.
A coalition of various industries and 31 states have filed lawsuits against the EPA and the Corps, claiming that the new provision goes beyond the intentions of the Clean Water Act and gives the agencies “virtually limitless power over non-navigable, intrastate waters.” The states argue that the rule violates the Clean Water Act, Administrative Procedure Act, the Commerce Clause and state sovereignty under the Tenth Amendment and ask the court to vacate (void) the measure.
Co-plaintiffs on the case include the American Farm Bureau Federation, American Petroleum Institute, American Road and Transportation Builders, Leading Builders of America, National Alliance of Forest Owners, National Association of Home Builders, National Association of Manufacturers, National Cattlemen’s Beef Association, National Corn Growers Association, National Mining Association, National Pork Producers Council and Public Lands Council.
Biotechnology
Hearings on the labeling bill sponsored by Rep. Mike Pompeo (R-Kan.)—which the broad ag and food manufacturers support—were held by subcommittees of the House Energy/Commerce and the Agriculture Committees. We expect final markups to come in July, with a possible vote this fall, and are working with members in sugar states to support the bill.
The Senate version of the language is lagging behind, but we expect it to be introduced in July. With the Vermont labeling requirement now less than a year away (still being litigated by the Grocery Manufacturers), there is greater pressure to get these bills through Congress.
With respect to county bans on growing GE crops, the Benton County, Ore., ballot initiative failed May 19 with 73 percent of voters rejecting a ban on growing GE crops in the county. This was great news, because GE sugarbeet seed is grown in that county. The planting ban imposed in Maui, Hawaii, last November was overturned by a federal judge.
ASGA Internship
Many thanks to Megan Stevens (Southern Minnesota) for being our intern this summer. She did a tremendous job on various research projects that will benefit all domestic sugar producers and specifically beet growers. She enjoyed a wide variety of experiences that will be helpful as she pursues a career in agriculture, and she was a real asset in our work on biotech issues. We encourage your talented sons and daughters to apply for the 2016 internship next year. It truly is a tremendous opportunity, and applications are available on our website.
2016 ASGA Annual Meeting
Mark your calendar. It will be held at the Marriott Camelback Inn in Scottsdale, Ariz., Feb. 7-9. Please visit the ASGA website at
www.americansugarbeet.org to register beginning Nov. 1.