*California Walnut Commission Content
The California Walnut Commission remains engaged on a number of current and future issues impacting our industry. Many of these issues impact agriculture as a whole, necessitating we work collaboratively with our colleagues and stakeholders in agriculture, along with congressional representatives, to ensure our potential success through coalition engagement, work groups and direct outreach.
USDA recently announced $4 billion in spending to strengthen critical supply chains through the Build Back Better initiative. The new effort is designed to strengthen the food system, create new market opportunities, tackle the climate crisis, help communities that have been left behind and support good-paying jobs throughout the supply chain. In the months to come, specific program details will be announced regarding funding, such as grants, loans and innovative financing mechanisms for four priority areas: food production, food processing, food distribution & aggregation, and markets & consumers. These funds are in addition to $1 billion to purchase healthy food for food-insecure Americans and build food bank capacity. The CWC remains engaged with USDA on opportunities that benefit our producers and processors. We have been in discussion with USDA on purchases of walnuts we anticipate to come through the healthy food for food-insecure Americans program in the coming weeks.
Trade Policy –
As the Issues Management Committee reported at the May Board meeting, the United States Trade Representative (USTR) is working on immediate priorities: to resolve the long-standing Boeing-Airbus dispute, address digital service taxes and conduct a comprehensive review of policies regarding China.
- Earlier this month the U.S. and the EU reached an interim agreement on the Boeing-Airbus dispute, agreeing to suspend tariffs for five years as both sides work to resolve the dispute.
- G-7 leaders agreed to a global minimum corporate tax of at least 15%. The new tax replaces digital services taxes that the U.S. had proposed to retaliate against leading trade partners. The Organization for Economic Cooperation and Development (OECD) will be working with partner countries over the coming months to firm up the commitment before the October 2021 date agreed to.
- The U.S.-U.K. Free Trade Agreement remains on hold with talks not expected to resume until after the mid-term congressional election. On July 1 Trade Promotion Authority (TPA) officially expired. This congressional authority is what is used to establish trade negotiating objectives, notification and implementation procedures legislation. The authority can be reinstated at a future date. USTR’s Katherine Tai has said the administration wants to win bipartisan support for renewal and wants to rethink the objectives of trade agreements before seeking the authority.
- The CWC worked with the CA Congressional Delegation on a letter to USTR encouraging California agriculture, particularly walnuts, be a priority in all current and future trade negotiations, specifically tariff reduction in India.
Climate legislation is at the forefront of lawmakers here and abroad.
- The Senate recently passed the Growing Climate Solutions Act to help farmers, ranchers and foresters to access carbon markets by creating a third-party verification program through USDA. The House has a companion bill that remains in negotiation.
- The EU has adopted the Climate Law, a bill that upholds the bloc’s 2050 and 2030 climate goals in legislation and increases the bloc’s 2030 emission reduction target to 55%, up from 40%. This legislation is the underpinning of the EU Green New Deal to be climate neutral by 2050. Under the Green New Deal is the Farm to Fork strategy to accelerate the EU transition to a sustainable food system that has a neutral or positive environmental impact; ensures food security, nutrition and public health; and ensures access to sufficient, safe, nutritious, sustainable food. We continue to monitor these legislative actions, as potential targets are expected to result in downward pressure on maximum residue limits. Further, the EU is also exploring a Carbon Border Tax that would tax imported goods based on the greenhouse gases emitted to make them. We remain engaged on and are monitoring these legislative initiatives for impacts to industry and will advise accordingly.
The following is a snapshot of some of the other recent issues we are engaged on. While not all are included, there are a number of tariff and non-tariff trade barriers impacting our export markets that we remain engaged on, as well.
Federal
- Supply Chain – The CWC submitted comments in response to USDA’s request for comments on food system supply chains for the production, processing and distribution of agricultural commodities and food products.
- Transportation – The CWC joined 70+ other organizations in the Ag Transportation Coalition’s letter to President Biden on the prolonged situation with regard to the port issues and access to containers. Legislation is now advancing on Capitol Hill, by members of the U.S. House Transportation & Infrastructure Committee, which includes several provisions to amend the U.S. Shipping Act, overseen by the Federal Maritime Commission (FMC). Details will be forthcoming.
- Immigration/2021 Farm Workforce Modernization Act – The House passed the act, which includes improvements to the H-2A Program, earned legalization for certified ag workers and a mandatory e-verify program for the ag sector, among others. The legislation does not address all of the needs of agriculture, but we, along with other ag groups, support the effort to move it forward and have signed on to a letter urging the Senate to take action. Congressional leadership remains engaged on this topic; however, no further action has been taken to date.
- Waters of the United States (WOTUS) – Earlier this month the EPA repealed the navigable water rule under the Clean Water Act. The impacts are yet to be known; however, the ag sector has expressed concern that the removal of “navigable” could impact converted cropland.
- EPA – The CWC has provided comments on the importance of glyphosate as a tool for industry, as the regulatory review of glyphosate is currently underway. The CWC is also working on getting an integral crop protection product, oxytetracycline, available for usage in blight control for walnuts. Regarding re-registration, protecting and preserving the use of Mancozeb, Propargite, Spirodiclofen, Propylene Oxide (PPO) and Phosphine and Metal Phosphide (PH3), formal comments have also been provided on behalf of the industry.
State
California Department of Pesticide Regulation (CDPR) Proposed Pesticide Mill Assessment Tax Increase – The CWC has been actively involved in a working group regarding the proposed mill tax increase and has stated our objections through the coalition. In the Governor’s May revised budget it was concluded that no mill tax increase would occur for the next two years. The CWC expects this issue to return and will be working with our colleagues/legislators on future alternatives.
The agricultural community has been engaged on the Governor’s Early Action Budget Plan – Drought, Safe Drinking Water, and Water Supply Reliability, as well as climate programs. Following are highlights of program priorities:
- Department of Water Resources – $1 billion for Sustainable Groundwater Management Act funding for critically overdrafted basins to be used for: SGMA planning and projects, including groundwater recharge and repurposing land to be followed under SGMA.
- Drinking Water – Support $500 million for California Community Water Emergency Investment Fund for one-time grants to communities for immediate drinking water expenditures and additional funds to Groundwater Sustainability Agencies (GSAs) relating to SAFER Needs Assessment.
- Water Efficiency in Food Processing Plants – Provides $60 million for CA food processors to implement water efficiency projects either through the Department of Water Resources Commercial Industrial Institutional (CII) program, California Department of Food and Agriculture or other means.
- California Department of Food and Agriculture Climate Smart Agriculture – Support ongoing funding for the State Water Efficiency & Enhancement Program (SWEEP) and Healthy Soils Program (HSP).
- Regulatory Drought Assistance Requests – Streamline and remove barriers to water transfers allowing for an expedited pathway to implement transfers, urge any state regulatory adjustments to the water system to provide even single-digit increases in the water allocation.
- State Water Resources Control Board should allow blanket flexibility on “place of use” restrictions applicable to the Central Valley Project and the State Water Project.
- Dry Year Purchase Program – Requested state funding to cover those in-Delta losses and requested that the state calculate those losses in a timely manner or set a fixed percentage of losses to allow buyers to understand the ultimate cost of the water and the net quantities to be received.
- Funding Agricultural Replacement Measures for Emission Reductions (FARMER) Program Funding – Provides $579 million for ag equipment based upon air district data and need.
- Alternatives to Open Burn Incentive Programs – Provides $290 million for the transition away from Ag burning in the San Joaquin Valley.
- Food Production Investment Program – Provides $100 million to reduce greenhouse gas emissions at food processing plants.
*California Walnut Commission Content
