Inside D.C.

Ag running behind as COVID aid backroom talks continue

As Democrats met this week in a virtual convention in Milwaukee, WI, and Wilmington, DE, to formally nominate former Vice President Joe Biden and Sen. Kamala Harris (D, CA) as their White House ticket – in the rollcall of state votes cast, cows appeared in backgrounds, biofuels were mentioned, “food” was cited – about 300 folks streaming the August 18 daytime convention highlights got a dose of “rural America day.”  The Democrat National Committee set aside the time to spotlight corporate and association-sponsored virtual symposia featuring state/local politicians, corporate execs and industry honchos. 

President Trump counterprogrammed with his rural base, appearing in Iowa to view multi-billion-dollar Derecho damage across that state; emergency aid is promised.  He was also in Arizona talking immigration. 

Meanwhile back in Washington, DC, the Democrat drumbeat was President Trump’s alleged sandbagging of the U.S. Postal Service (USPS) to mess with mail-in voting and the November election.  House Speaker Nancy Pelosi (D, CA) promptly ordered the House back from vacation to protect mail delivery by approving a bill to infuse the agency with $25 billion in federal largesse. 

Those two moves flushed out a Senate Republican draft “skinny” phase four COVID 19 economic stimulus package, but no word from Senate Majority Leader Mitch McConnell (R, KY) on whether his gang returns before its scheduled September 8 reappearance.  

The first two are election stage play; the third may work to break the stimulus deadlock and get negotiators back to the table.  Neither House nor Senate, Republicans nor Democrats have given any indication they’ll embrace the various new legislation coming

For ag, the GOP draft is problematic in that it doesn’t include the $20 billion earmarked for ag COVID relief of previous versions, including the House-approved HEALS Act.  GOP lawmakers also don’t embrace a third round of $1,200-per-taxpayer federal checks. 

Sen. John Hoeven (R, ND), chair of the ag/FDA subcommittee within the Appropriations Committee, said he’s working to get agriculture more new money.  He also acknowledges, however, he talked with Agriculture Secretary Sonny Perdue this week about how the department plans to spend the $14 billion in Commodity Credit Corp. (CCC) funding activated in July under the CARES Act.  The list of commodities eligible for payments has been dramatically expanded, but that could change.

The Paycheck Protection Act (PPP) gets a new lease on life in the GOP draft using language more generous than that in the HEALS Act.  The Senate draft would reauthorize PPP to pump out a second round of loan-to-grant aid, with eligible farmers required to show a 35% drop in Schedule F gross income between as-yet-undetermined 2019 and 2020 quarters.  The House version sets the income drop threshold at 50%.

 As expected, the Senate GOP bill includes federal business liability protections from worker lawsuits, McConnell’s big  priority.  The draft embraces chunks of the House-passed HEALS Act, albeit at generally lower spending levels.  Supplemental unemployment insurance would be renewed, likely in the $300 per week range.     

The American Farm Bureau Federation (AFBF) calls the Senate GOP draft a “step in the right direction.”  However, the nation’s largest farm group also reminded Congress and the White House this week that COVID and tariff war impact federal payments are pretty much the only things keeping farmers afloat.