President Trump released this week's budget of $ 4.7 trillion for 2020, which should increase defense spending and increase the Mexican border wall by $ 8.6 billion. The proposed budget would cut spending on Medicaid, agriculture, environmental protection, transport, education and other non-defense departments and agencies.
The USDA would be one of the departments most affected by President Trump's proposal. The budget envisages cutting agriculture by 15%, significantly cutting crop insurance, maintenance and the Supplemental Nutrition Assistance program. In addition, stricter resources will be introduced for the testing of commodity programs. Many of the budget proposals were rejected in the review of agriculture legislation for 2018.
Crop insurance: The administration proposes to cut the current harvest insurance program by 31%. Producers would pay a larger share of crop insurance premiums, which would go from the current 38% to 52% under the proposed budget. The insurance profits of insurance companies would be capped at 12%. Farmers with an adjusted gross income of over $ 500,000 could not participate in the crop insurance program.
SNAP: The argument of the farm bill for work requirements for SNAP recipients continues under the proposed budget. The budget envisages tightening SNAP work requirements by obliging almost all working adults up to the age of 65 to work or participate in an approved training program. The current work requirements are limited to working adults without dependent persons at home and under 50 years old. In addition, the budget again proposes the "Harvest Box", where some of the SNAP benefits would be in commodities. This was proposed last year by the USDA and has been widely criticized.
Commodity Programs: The commodity program averaging test would be lowered from $ 900,000 to $ 500,000 AGI.
Programs canceled: The budget proposes to eliminate a number of USDA programs, including rural enterprise programs and cooperative services, the single-family direct credit program, the McGovern-Dole international food and education program, food for progress and school materials subsidies.
User Fees: The Budget of the Administration for the financial year 20 proposes the user fees of the Food Security Inspection Service to cover all domestic inspections, import inspections and most central operating costs for federal, state and international inspection programs for meat, poultry and egg products. User fees are also imposed on animal welfare, veterinary biotechnology and biotechnology services. Congress must pass laws to enforce these usage fees, which is unlikely to be the case.
According to Congress, this budget is dead upon arrival.
Effort for extend biodiesel tax credits
Congressmen Darin LaHood (R-IL) and Dave Loebsack (D-IA) were supported by 42 congressional members in a bipartisan effort to extend the tax credit on biodiesel for several years.
In a letter to the House leadership, members say, "Biodiesel production could give 63 cents worth of each bushel of soybeans. This value is particularly important right now when farm income has reached its lowest level in more than a decade, with crop prices below production costs and farmers bearing the brunt of ongoing trade disputes. We strongly support a multiannual extension of the incentive to ensure the necessary political security so that the biodiesel industry and the rural economy can continue to grow. "
EPA proposes to allow year-round E15
The Environmental Protection Agency has published its proposed rule, which will allow E15 to sell all year round. Currently, E15 can not be sold in the summer months from 1 June to 15 September.
The National Corn Growers Association says:Selling higher ethanol blends for the whole year not only creates a domestic market for farmers, it also gives consumers more pump choice, a lower price option and greater environmental benefits from cleaner fuel. It is time to remove the barrier to all these benefits. "
The proposed rule also proposes reforms to the Renewable Identification Number markets, including:
- Prohibit certain parties from acquiring separate RINs;
- Disclosure required if RIN holdings exceed specified thresholds;
- Limiting the length of time that a non-binding participant can hold RINs; and
- Increase the compliance frequency of the program from once a year to quarterly.
The EPO plans to hold a public meeting on 29 March. In addition, the public comment period on the proposed rule ends on 29 April.
Source: P. Scott Shearer, who alone is responsible for the information provided and has the information in full. Informa Business Media and all its affiliates are not responsible for the content of this information resource.