USDA Budget under the knife. As of- 4-12, the federal budget as it relates to ag is shrinking, the House is expected to find $230 billion in cuts and the Senate is looking to shed $1 billion. This is likely to be generated through consolidation, not filling positions (with reportedly 12,000 USDA personnel seeking the early buyout program), cutting programs, locations, and benefits to farm programs. Another potential cut location is SNAP (aka Food stamps) and low-income food provision programs backed by the USDA. It is being sold as making the USDA “leaner and meaner”. That sounds adversarial in relationship to the farm community or is just a good old catch phrase. I do think if the IRS said they wanted to be “meaner” people would raise an eyebrow.
The government also announced plans to streamline ag worker visas, apparently acknowledging that the temporary workers are a key component of ag. One economist noted in the manufacturing sector, Americans want to wear Nike, not manufacture Nike. The ag sector is a bit different, as we simply do not have the number of qualified people to operate certain sectors of the farm industry.
California Prop 12 push back.
This ban on certain swine production practices (like gestation crates) has impacted the pork industry. While the pork industry ultimately lost in 2023 its legal challenges, the Senate recently had a bill introduced (again) that would prohibit states from imposing pre harvest production standards or conditions for interstate commerce ag products. This is the only way that seems likely to override the state’s mandate, a federal directive.
Chapter 12 BK Filing rates are up 55% between 2023-2024. That was 219 filed which is well below the all-time record of 599 set in 2019 but the numbers seem to be rising.
FINCEN:
The Federal government has published an interim rule limiting BOI aka FINCEN reporting requirements to foreign companies. That is a change from the prior position. The government had 4 years to roll this requirement out, instead they waited until the 11th hour and then flip flopped on enforcement several times. It created, in the end but at the time critical, extra work for company owners.
