Policy Changes and Local Economies: An Impact Overview
2024 is expected to bring significant political activity in the agricultural sector as the Biden administration seeks to win over rural voters ahead of the November election. The top legislative priority is passing a comprehensive farm bill, but the U.S. Department of Agriculture (USDA) also aims to advance other initiatives such as promoting competition and expanding climate-smart agricultural opportunities.
“During the final year of a first term, especially in an election year, all agencies, including the USDA, will focus on advancing their priorities,” noted Kristi Boswell, an attorney with Alston & Bird’s legislative and public policy group.
With the administration looking to complete key initiatives, there is also mounting pressure on lawmakers to address significant farmer concerns, particularly regarding the H-2A visa program.
Key Policy Debates and Regulations to Monitor in 2024
There is a strong push to pass a farm bill before the November election and the retirement of Senate Agriculture Chair Debbie Stabenow in January 2025. After a one-year extension last fall, Congress has until September 30 to pass the $725 billion package that funds essential farm programs and the Supplemental Nutrition Assistance Program (SNAP).
Despite the urgency, partisan divides and funding constraints that delayed progress in 2023 remain. A small group of hard-right Republicans continues to block plans to increase the budget for popular agricultural programs. The legislative calendar, shortened in election years, also adds to the challenge as farm bill consideration has been delayed by efforts to reach a federal spending agreement for government agencies.
The approaching election might motivate lawmakers to reach a bipartisan agreement, particularly as Republicans aim to secure rural votes. On the other hand, Democrats might prefer to extend the farm bill if they believe they can flip the House in November, allowing for more funding for their agricultural initiatives.
“This funding debate is on everyone’s mind,” remarked Boswell. “The dynamics are uniquely challenging in this farm bill cycle.”
The Need for Swift Legislative Action
Agricultural stakeholders are urging for the farm bill to be passed promptly to provide certainty and stability for farmers who depend on the loans and grants governed by this legislation.
Expert Opinions and Forecasts
Experts believe that the political environment leading up to the election will significantly influence legislative actions related to agriculture. The Biden administration’s efforts to appeal to rural voters may expedite some policy changes, while ongoing partisan struggles could delay others. The overall impact on local economies will depend on the timely resolution of these legislative issues and their alignment with the practical needs of the agriculture sector.
Farmers Push for H-2A Visa Reform and Limits on Foreign Landholdings
Labor costs and the rise in foreign ownership of U.S. farmland are top concerns for producers. These issues are expected to receive significant attention in Congress and at the USDA.
With labor shortages and rising H-2A visa wages putting pressure on producers, there are calls for major reforms to the seasonal farm worker program. The “Adverse Effect Wage Rate,” which dictates the minimum wage for H-2A workers, increased to a national average of $17.55 an hour in 2024. This is compared to roughly $11 in Canada and $1.50 in Mexico, posing significant challenges for U.S. farmers.
Farmers are advocating for a freeze in H-2A visa wages and reforms allowing for the use of temporary workers year-round instead of just seasonally. “The fresh produce supply chain cannot survive, let alone thrive, under the constant barrage of regulatory burdens and cost increases,” said Cathy Burns, CEO of the International Fresh Produce Association. “Without a comprehensive solution to agricultural workforce challenges, Congress must act immediately to provide wage relief to producers.”
Beyond H-2A visas, there is increasing pressure on the USDA and Congress to limit foreign ownership of U.S. farmland, particularly by adversaries like China. Flaws in data collection have made it difficult for the USDA to enforce disclosure rules or accurately report foreign land ownership.
New Rules on Competition and Product Labeling
The USDA plans to update the 100-year-old Packers and Stockyards Act to crack down on anti-competitive practices by large producers. The agency aims to clarify what constitutes a violation of the law and address unjust discriminatory conduct against producers.
These changes include new transparency rules requiring meat companies to disclose growers’ costs associated with contracts, set to take effect in February. “It will be interesting to see how this rule impacts the industry,” said Audry Thompson, staff attorney with Penn State’s Center for Agricultural and Shale Law. “The real test will be in its enforcement.”
Additionally, the USDA’s Food Safety and Inspection Service plans to better define labeling for cell-cultivated meat products and clarify the use of the “Product of USA” label. New requirements for using the “USDA Organic” label will also come into effect in March, aiming to restore consumer confidence in the organic sector.
In the final year of the administration’s first term, the USDA is eager to ensure all priority areas are addressed. “You’re going to see the USDA wanting to make sure they’ve checked all those boxes,” Boswell concluded.
