Louisiana Conservation and Commodity Updates - July Issue

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Louisiana Conservation and Commodity Updates | July 2021 Issue 7

Louisiana Conservation and Commodity Updates

July 2021, Issue 7

Family Forest Carbon Program

Led by the American Forest Foundation and the Nature Conservancy, companies and family forest owners are exploring carbon markets. Carbon payments are based on specific forest management practices that have been shown to increase carbon sequestration. The goal is to enroll nearly 300 million family-owned forests in carbon markets. The project has been piloted in the central Appalachian region. The program currently has 50 contracts for over 6,000 acres of forest land.

FY 2021 Ag. and Rural Dev. Appropriations

FY 2021 appropriations show strong support for rural infrastructure and programs that promote agricultural exports. You can read the full report here (opens in new window) . Highlights include:

  • $990 million (an increase of $435 million above FY 2020) for the ReConnect program to expand broadband service.
  • $1.45 billion for rural water infrastructure.
  • $1.088 billion for food safety and inspections programs to ensure the productivity of the meat and poultry industry.
  • $3.3 billion (an increase of $92 million above FY 2020) for agriculture research programs.
  • $2 billion for international food aid to support U.S. agricultural exports.

Supreme Court Denies Review on California's Proposition 12

Proposition 12 strengthens existing California law to ban intensive confinement of egg-laying chickens, pigs, and calves. The rule also prohibits the sale of such products from facilities that confine animals to intensive caging facilities. The Supreme Court rejected a petition seeking review of Proposition 12 and sided with prior rulings that states have the right to pass laws protecting animals, public health, safety, and prohibit the sale of such products within their borders. Many believe this state legislation can affect farm products produced in other states and sold in California.

Disaster Assistance At-a-Glance

The USDA, in 2020, developed an informational resource highlighting a list of disaster assistance programs and the agencies primarily engaged with each of those programs. With the 2021 hurricane season predicted to be above average, the document serves as a helpful resource. A snapshot of the document can be seen below. You can access the resource here (opens in new window) .

Overtime Pay for Farm Labor

Colorado became the fifth state in the nation requiring farms to pay overtime to workers. Other states include California, New York, Maryland, and Minnesota. Washington and Oregon have pursued similar actions. Colorado lawmakers passed a bill similar to those in other states that removes exemptions for farmworkers from overtime and minimum wage requirements.

  • Washington will lower the overtime threshold each year until it reaches 40 hours in 2024.
  • New York and Maryland use a 60-hour threshold per week, while Minnesota uses a 48-hour threshold.
  • In California, large farms must reach a 40-hour threshold by 2022, and small farms by 2025.

Pandemic Assistance Continues for Various Agricultural Sectors

Timber harvesting and timber hauling businesses that experienced losses during the pandemic can apply for assistance through FSA under the Timber Harvesters and Haulers Program (PATHH). Livestock and poultry producers can also apply for assistance under the Pandemic Livestock Indemnity Program (PLIP).

Hay, Graze and Chop Cover Crops Anytime

Unlike in the past, where cover crops could only be hayed, grazed, or chopped after November 1 to avoid preventive planting payment reductions, the Risk Management Agency added flexibility that would not affect preventive planting payments. Beginning in 2021, cover crops planted following a preventive planting claim are considered for conservation benefits rather than a second crop.

Revising the Clean Water Act

A federal judge granted the government's request to write a new definition clarifying what streams and wetlands fall under the jurisdiction of the Clean Water Act within the Navigable Waters Protection rule. The existing rule will remain in place while revisions are underway.

Consolidation in Agribusiness Firms

A handful of firms dominate industry sectors including seeds, fertilizers, equipment, meat processing, and grocery chains. This consolidation has drawn scrutiny and criticism.

Concerns have been raised about meat processors and their impact on cattle prices and grocery costs. Following public concern, the U.S. Department of Justice agreed to review potential market manipulation practices.

An executive order signed by President Biden sought to make it easier for small farmers to challenge unfair processor practices and included proposals supporting a “right to repair” agricultural equipment.

Raw Cane Sugar Import Quotas

In July 2021, the U.S. Trade Representative announced the reallocation of unused country-specific import quotas for raw cane sugar. The tariff-rate quota for FY 2021 was 1,117,195 metric tons raw value. A total

12/17/2021 2:06:28 PM
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