Vilsack discusses latest ag sector aid, pork line speed case impacts, biofuels with AgriTalk
USDA Secretary Tom Vilsack discussed the department’s latest Covid-19 aid announcement, including assistance for the biofuel sector, and the department’s plan to help pork producers impacted by a recent court decision limiting line speeds at a handful of processing plants. Vilsack made the comments during an interview today on the AgriTalk radio program.
Vilsack described the latest aid, part of the department’s “Build Back Better” initiative, as a “combination of a number of opportunities,” including elements focused on production and processing. On production, Vilsack again gave the example of transition assistance such as “providing resources to farmers to successfully transition to certified organic practices if they choose to do so for that value-added opportunity.” On the processing side, he reiterated the department’s focus on bolstering small- and mid-sized operations to expand overall capacity.
Pork line speed case
Regarding ongoing litigation over pork line speeds, Vilsack again said the decision on appealing a ruling that reimposed limits on how fast lines can operate at several processing plants rests with the US Solicitor General. However, he pointed out USDA is stepping in to help affected producers with $50 million set aside to aid those “who end up having to go into the spot market and don't get the benefit of a contract, if there is in fact a reduction in line speed that causes a disruption in the market.”
In terms of resolving the suit, Vilsack expressed hope that talks between the labor unions that brought the challenge and affected companies might produce an amicable solution. “The parties are talking right now in the case… the ruling doesn’t go into effect until the end of the month, and so hopefully something can be worked out between the workers and the companies.”
Plans to revisit rulemaking on the Packers and Stockyards Act (P&SA) also surfaced, with Vilsack saying one objective is to “make sure that we have a clarification of the scope of Packers and Stockyards, whether it's necessary to demonstrate harm or likely harm to the entire industry or to the individual producer, so essentially the scope of the act needs to be better defined.” Other topics of rulemaking include making clearer “what constitutes unfair practices, or undue preferences or prejudice to particular producers,” and fairness for payments made using poultry ranking systems.
Special investigator for meatpacking competition
Vilsack also expanded on comments he made during a Senate appropriations hearing yesterday (June 15) regarding his endorsement of a legislative proposal from Sens. John Tester (D-Mont.) and Chuck Grassley’s (R-Iowa) called the Meat Packing Special Investigator Act. The measure would create an “Office of the Special Investigator for Competition Matters” within USDA’s Packers and Stockyards Division, with subpoena power to investigate issues around market competition.
“An investigator would give us the capacity to get information that we're currently not getting, which may aid in price discovery,” Vilsack explained, adding “there's some concern that we may not have full transparency when it comes to pricing.” However, he noted he does not believe the appointment of a special investigator needs to come ahead of P&SA rulemaking. On prospects and a timeline for the legislation to move forward, he said it is “anybody’s guess how quickly that can be considered in a bipartisan way,” but called Tester and Grassley’s support behind the measure a “good sign.”
Biofuels, hog euthanization aid
One component of USDA’s latest aid announcement was aid for biofuels producers, who have been left out of earlier assistance — both from mitigating trade-related losses and losses caused by the Covid-19 pandemic. Vilsack said USDA is “still working on the details” adding “the notice of funds availability, which is the structure by which these payments will be available, will be likely published at the end of this month.”
Also included in the aid package is more assistance for contract hog producers, which Vilsack indicated will be “primarily targeted” towards those who were forced to euthanize animals because of processing bottlenecks during the pandemic. “This was one area that didn't receive help and assistance, and we thought it was necessary to do so.”
EPA RFS moves
Vilsack was also asked to comment on reports that the Environmental Protection Agency (EPA) is considering lowering blending mandates under the Renewable Fuel Standard (RFS) and may be considering issuing new small refinery exemptions (SREs). He said EPA is dealing “with a tough situation over there, because they are dealing with the consequences of decisions that were made in the previous administration in terms of what happened in 2020 and what's happening in 2021.”
Once RFS levels for 2021 and 2022 are announced, Vilsack said, “it's going to be important before we make judgment about this, to take a look at the total package, to see exactly where we are at the end of the day.” For USDA’s part, he said the department expressed the need to support the biofuel industry, adding that biofuels will play a major role as the Biden administration looks to ramp up efforts to address climate change.
