CCC Funds Secured in House Vote

WASHINGTON (DTN) -- The House late Tuesday passed a continuing resolution to fund the government through December 11 including provisions to allow USDA to use the Commodity Credit Corporation to make payments to farmers with no interruption and fund a program that makes payments to families with children who are not getting their usual free or reduced-price school meals.

The bill blocks any possibility of using CCC funds for oil refineries but also gives USDA flexibility in implementing nutrition programs.

The House voted on the continuing resolution (CR) in the evening without much debate after delaying the vote on an earlier version that did not include either the CCC provision or the nutrition provisions. House Democrats had raised concerns after President Donald Trump announced a new $14 billion aid package for farmers at a political rally in Wisconsin.

The vote was 359 to 57, with 56 Republicans voting against it and Rep. Alexandria Ocasio-Cortez, D-N.Y., voting present. Fourteen members did not vote.

Republicans and rural Democrats emphasized that the CR will allow farmers to get both their regular subsidies and the second round of Coronavirus Food Assistance Program payments, while urban Democrats emphasized the inclusion of the nutrition aid. The CCC is a $30 billion line of credit at the Treasury Department that the Agriculture Department uses to make payments, mostly to farmers. The account needs to be replenished annually.

House Democratic Congressional Campaign Committee Chair Cheri Bustos, D-Ill., noted that the CR included $8 billion in nutrition aid and the CCC provision but also a restriction that the Agriculture Department could not use the CCC to provide aid to oil companies, which the Trump administration had considered for companies that did not get waivers from their ethanol obligations under the Renewable Fuel Standard.

"From those who grow our food, to those who need increased access to it, the agreement reached tonight ensures that both American farmers and families will have the support they need as we continue to navigate COVID-19," Bustos said.

"We can't feed our families without making sure that those who keep our food supply strong -- our hardworking farmers -- have the assistance they deserve," Bustos said. "I worked to make sure that this legislation not only includes critical aid for our farmers, but also increases desperately needed accountability for Commodity Credit Corporation (CCC) funds. Today's legislation stops the administration from diverting aid meant for family farmers to bail out Big Oil."

Bustos said the key provisions in the CR include:

- $8 billion for nutrition assistance for children and families.

- Critical aid for farmers through funding to replenish the CCC, in order to ensure farm aid payments will be delivered on time.

- Increased accountability for CCC funds, including protections that will prevent funds from being diverted from American farmers to oil companies.

- Funding extended for Community Health Centers and the National Health Service Corps.

- A one-year extension of the surface transportation authorization.

- Extension of the National Flood Insurance program through September 30, 2021.

Rep. Cindy Axne, D-Iowa, who had joined the entire Iowa congressional delegation in urging the congressional leadership to include the CCC provision, said, "While I am still frustrated that vital aid for Iowa's farmers was left out of this extension of government funding in the first place, I am glad that House leadership heard my concerns and reversed course on today's continuing resolution."

House Agriculture Committee ranking member Michael Conaway, R-Texas, had introduced an amendment to cover both the CCC and Pandemic EBT provision, but had it ruled out of order by the House Rules committee, Conaway said, "Had Congressional Republican leadership not stepped in, USDA would have been forced to shut down critical farm bill programs supported by wide, bipartisan margins in both the House and the Senate. This would have hurt millions and helped nobody."

Zippy Duvall, president of the Republican-leaning American Farm Bureau Federation, applauded House Agriculture Committee Chairman Collin Peterson, D-Minn. and Ranking Member Conaway for their leadership on the bill, "and House lawmakers for putting aside their differences to address the hardships being felt by America's farmers and ranchers. For years, funding the CCC has been a bipartisan commitment. While we were disappointed it recently became a political flashpoint, we are pleased lawmakers on both sides of the aisle recognize that these funds help to sustain conservation programs and stock America's pantry."

While advocates for the CCC fund stressed it has always been bipartisan, the Republican-led Congress had restricted USDA's use of the CCC funds from 2012 to 2017 under the Obama administration.

Rob Larew, president of the Democratic-leaning National Farmers Union, said in an email: "The last thing farmers and rural Americans need right now, on top of the pandemic and everything else, is a government shutdown. We are relieved that the House has come to an agreement on a stopgap funding bill that would prevent such a shutdown, and we hope that the Senate will follow their lead. In particular, we urge them to adopt the House's provisions that would help hungry families and schoolchildren access food, offer congressional oversight of farm assistance spending, and prevent oil corporations from taking advantage of Commodity Credit Corporation funds."

REACTIONS TO THE NUTRITION PROVISIONS

House Speaker Nancy Pelosi, D-Calif., noted that she had reached agreement with Treasury Secretary Steve Mnuchin on the nutrition provisions.

"We have reached an agreement with Republicans on the CR to add nearly $8 billion in desperately needed nutrition assistance for hungry schoolchildren and families," Pelosi said. "We also increase accountability in the Commodity Credit Corporation, preventing funds for farmers from being misused for a Big Oil bailout.

House Agriculture Nutrition, Oversight and Department Operations Subcommittee Chairwoman Marcia Fudge, D-Ohio, said she was proud the measure includes $8 billion in nutrition assistance to ensure children and families do not go hungry as the country deals with a public health crisis.

"With around 17 million children not getting enough to eat this summer, these child nutrition provisions will go a long way towards alleviating the child hunger crisis we currently face," Fudge said. "I am also pleased to see the bill includes my Emergency SNAP Flexibilities Extension Act to give states additional flexibility to process surges in SNAP applications. Eliminating administrative barriers is a common-sense way to help families put food on the table during this time of unprecedented struggling."

But Fudge said she is "deeply troubled by the administration's mismanagement of the Commodity Credit Corporation. After robbing Peter to pay Paul, the USDA called on Congress to replenish the very taxpayer dollars it squandered. Fortunately, Democrats were successful in securing restrictions for this funding to prevent any further waste, fraud and abuse, but further congressional oversight is still needed."

SENATE REACTIONS

It is now up to the Senate to consider the CR.

Senate Agriculture Committee Chairman Pat Roberts, R-Kan., said, "Democrats have heard our call, and the calls from farm country, to not ignore rural America when funding the government. This bipartisan deal is a step in the right direction to allow agriculture producers across America to continue feeding the country and the world, especially at a time when markets are unpredictable and prices are low."

Senate Agriculture Appropriations Subcommittee Chairman John Hoeven, R-N.D., said, "The CCC provides much-needed support for our nation's farmers and ranchers, which is why we worked so hard to ensure it is part of this funding legislation. This agreement ensures this regular CCC reimbursement continues and enables USDA to carry out important farm bill programs for our farmers and ranchers."

Senate Agriculture Committee ranking member Debbie Stabenow, D-Mich., who had raised concerns about the Trump administration's aid to farmers and proposed aid to oil companies, said, "I've always said that we need to help both our farmers and our families. This agreement will take a critical step to address the hunger crisis in our country and ensure millions of children can get the healthy food they need to learn and thrive, not just for a few months, but for the coming year.

Stabenow added, "Additionally, we secured greater accountability for farmers and taxpayers by stopping the Trump administration's misguided plan to give hundreds of millions of dollars of agriculture funds to oil companies. I remain concerned about persistent unfairness in ad hoc USDA payments and I will continue to provide strong oversight to ensure that every dollar is distributed to the farmers who need it the most during these challenging times."

DTN Ag Policy Editor Chris Clayton contributed to this report.

Jerry Hagstrom can be reached at jhagstrom@nationaljournal.com

Follow him on Twitter @hagstromreport

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