Legislative Watch: Food, ag sectors contributed $3.01 trillion; revisit duties on imported fertilizer from Morocco; use more ethanol to lower gas prices.

P. Scott Shearer, Vice President

March 25, 2022

3 Min Read
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National Pork Board

Highlighting the importance of agriculture to the U.S. economy, a group of 30 agricultural and food organizations released the sixth annual "Feeding the Economy" report on National Agriculture Day – March 22.

The report found that 7% of the nation’s economy and 29% of American jobs are linked to the food and agricultural sectors, either directly or indirectly. The sectors contributed $3.01 trillion to the U.S. economy. 

Other findings included total jobs – 43,464,211; total wages - $2.3 trillion; total taxes - $718.15 billion; and exports - $182.91 billion. 

President Joe Biden issued a proclamation declaring March 22 as National Agriculture Day. 

The proclamation mentioned the efforts of producers by saying, "On National Agriculture Day, we recognize the invaluable contributions of American farmers, farmworkers, ranchers, fishers, foresters and other agricultural workers, who have practiced their craft for generations and touch the lives of Americans every day. Their tireless efforts growing crops, raising livestock and distributing food, fuel and fiber sustain America and the entire world. They put meals on our plates, clothes on our backs and roofs over our heads. Along the way, America's agricultural workers serve as stewards of the land; ensure the safety and health of animals, plants and people; and strengthen our rural communities with economic opportunities."

In addition, there was a "Celebration of Modern Agriculture" event on the national mall featuring the latest innovative farm equipment and precision agriculture technologies for the public to view.  Secretary of Agriculture Tom Vilsack and agricultural leaders participated in the event.

Revisit duties on imported fertilizer from Morocco
With producers continuing to face high fertilizer costs and with no end in sight, Congressional members are calling on the International Trade Commission to reconsider the duties on imported fertilizer from Morocco.

Over 60 Senators and Representatives, led by Senator Jerry Moran (R-KS) and Representatives Cindy Axne (D-IA) and Tracey Mann (R-KS), wrote the ITC asking that it reconsider the duties placed on phosphate fertilizer products imported from Morocco and suspend the current process to impose new duties on urea ammonium nitrate fertilizer from Trinidad and Tobago.

The members in a letter to the ITC said, "Currently, only about 35% of the world's traded supply of phosphate fertilizer is not subject to duties for import into the U.S. This has unnecessarily restricted supply and added costs. Historically, phosphate fertilizer accounts for 15% of total cash costs for producers. Since the U.S. Department of Commerce's decision to impose duties on phosphate fertilizer imports from Morocco, phosphate fertilizer prices have increased 93%."

Mosaic, the largest producer of potash and phosphate fertilizer, petitioned the ITC in 2020 asking it to investigate that subsidized fertilizer from Morocco and Russia had undercut its U.S. sales between 2017-2020.  The Department of Commerce and the ITC agreed with Mosaic and imposed tariffs. 

Use more ethanol to lower gas prices
Farmers and biofuels supporters from 30 states are calling on President Joe Biden to allow broader use of ethanol blends like E15 to help lower gasoline prices.

The group in a letter to Biden said, "Simply allowing gasoline blenders to sell E15 year-round would instantly help moderate prices at the pump and deliver relief to American families. Today, E15 is selling for 10-25 cents per gallon less than standard gasoline, meaning year-round use of the fuel would save the average American household at least $125-200 on its annual gasoline bill. Those savings would accrue immediately while also providing energy, environmental and economic benefits for the long-term.

"Biofuels like ethanol are underutilized in today's fuel market, largely because outdated government regulations handcuff market access and deny consumers choice at the pump."

Source: P. Scott Shearer, who is solely responsible for the information provided, and wholly owns the information. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset. The opinions of this writer are not necessarily those of Farm Progress/Informa.

About the Author(s)

P. Scott Shearer

Vice President, Bockorny Group, Inc.

Scott Shearer is vice president of the Bockorny Group Inc., a leading bipartisan government affairs consulting firm in Washington, D.C. With more than 30 years experience in government and corporate relations in state and national arenas, he is recognized as a leader in agricultural trade issues, having served as co-chairman of the Agricultural Coalition for U.S.-China Trade and co-chairman of the Agricultural Coalition for Trade Promotion Authority. Scott was instrumental in the passage of China Permanent Normal Trade Relations and TPA. He is past chairman of the USDA-USTR Agricultural Technical Advisory Committee for Trade in Animals and Animal Products and was a member of the USAID Food Security Advisory Committee. Prior to joining the Bockorny Group, Scott served as director of national relations for Farmland Industries Inc., as well as USDA’s Deputy Assistant Secretary for Congressional Affairs (1993-96), serving as liaison for the Secretary of Agriculture and the USDA to Congress.

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