The federal fiscal year ends on September 30^th and with the annual appropriations bills not complete, Congress passed a Continuing Resolution (CR) to keep the government functioning. The CR will run through December 3^rd. The CR also includes $10 billion for agriculture disaster assistance to cover losses in 2020 and 2021 due to drought, hurricanes, wildfires, etc. The ag disaster assistance will be administered by USDA using a similar structure as was used for the WHIP+ program for losses in 2018 and 2019.

Progressive Democrats want to enact a Reconciliation package of “human infrastructure” programs and policies that total $3.5 trillion. Included in the proposal would be significant funding for agriculture research and conservation programs, which would also increase the baseline spending for the next Farm Bill. However, moderates believe the package should be much smaller than $3.5 trillion. Democrats have no votes to spare in the Senate and only a three-vote margin in the House.

The proposed Reconciliation package would be offset with revenues from changes in tax policies, including increases in the top rates for individuals and changes to capital gains and corporate tax rates. On September 8^th, NBGA signed on to a letter to Congress regarding the need to preserve stepped-up basis, like-kind exchanges, the Sec. 199A small business deduction, and current estate tax exemption levels for farms. The letter was signed by 327 national, regional, and state trade associations. In a positive sign, the proposal unveiled by the House Ways & Means Committee preserved stepped-up basis and like-kind exchanges. However, the Senate has not yet released its proposed tax offsets. 

On September 27^th – or the morning of September 28^th for the participants in China – the U.S. Grains Council (USGC) hosted a webinar to educate potential buyers in China on the production characteristics and marketing structure of the U.S. barley industry. Dr. Frayne Olson, Crop Economist and Marketing Specialist at North Dakota State University, provided an overview of barley production and marketing and barley growers and state staff from North Dakota, Montana, and Idaho provided direct perspectives. The webinar is intended to be the beginning of a renewed dialogue among stakeholders to determine if viable opportunities exist for establishing and expanding barley exports to China.

Field to Market staff provided an update to NBGA and state barley representatives on September 30^th on the environmental and sustainability related barley production trends in their National Indicators Report which will be released later this year. NBGA and state barley organizations will be following up with growers, industry and Field to Market staff on the data to ensure it accurately reflects what’s occurring in barley production.

On September 29^th Secretary Vilsack announced a set of investments to address challenges facing America’s agricultural producers. These include assistance to address challenges and costs associated with drought, animal health, market disruptions for agricultural commodities, and school food supply chain issues. Secretary Vilsack also outlined and requested public comments on a new climate partnership initiative designed to create new revenue streams for producers via market opportunities for commodities produced using climate-smart practices. 

Secretary Vilsack announced a new initiative to finance the deployment of climate-smart farming and forestry practices to aid in the marketing of climate-smart agricultural commodities. Guided by science, USDA will support a set of pilot projects that provide incentives to implement climate smart conservation practices on working lands and to quantify and monitor the carbon and greenhouse gas benefits associated with those practices. The pilots could rely on the Commodity Credit Corporation’s specific power to aid in expansion or development of new and additional markets. The Department published a Request for Information (RFI) seeking public comment and input on design of new initiative.

On September 13^th President Joe Biden announced the selection of Elaine Trevino, a former California deputy secretary of food and agriculture, to be his chief agricultural trade negotiator. Trevino is currently President of the Almond Alliance of California. President Biden has not yet nominated a USDA undersecretary for trade and foreign agricultural affairs.