January-February 2024

ADVOCACY REPORT

or a yearlong continuing resolution. Under the terms of the debit limit deal passed in 2023, this would force automatic funding cuts to almost every program in the government, including significant cuts to USDA programs. The Administration has requested additional funding for the wars in Ukraine and Israel as well as a domestic funding request that included $2.8 billion for farmers and ranchers experiencing losses due to natural disasters. If enacted, this additional funding could provide assistance to California growers suffering losses from Hurricane Hilary. Negotiations on Ukraine- and Israel-related funding have been tied to Congressional Republicans’ request for substantial immigration reform. This conversation has largely drowned out discussions on the domestic funding for farmers, leading federal advocates to discuss the need for disaster funding with the California delegation directly. The conversation on immigration has thus far been focused on border crossings and not on the significant workforce needed by agriculture producers. An agreement on both issues remains elusive. Congress also failed to pass a 5-year Farm Bill and extended Farm Bill programs through September 30, 2024. House Agriculture Committee Chairman Glen “GT” Thompson and Senate Agriculture Committee Chairwoman Debbie Stabenow now face the daunting task of trying to pass a Farm Bill during an election year. Expect a lot of discussion and Committee action on this in the coming year. Conventional wisdom dictates that if anything is going to happen smoothly this year, both Chambers will need to act on the Farm Bill before the month-long August recess when member focus typically shifts to campaigns and elections. While both Committees have held hearings on Farm Bill programs, neither has introduced its own version of the Farm Bill as a starting point for negotiations. Advocacy efforts by growers are critical to advancing our Farm Bill priorities. Election years have a way of grinding Congress to a halt, which means a great deal of activity at the Federal level in the form of administrative action by Federal Government agencies. The Departments of Agriculture and Health and Human Services are embarking on an update for the Dietary Guidelines for Americans to set nutrition standards for 2025-

2030. The USDA and FDA are also proposing changes to nutrition standards for school meals and mandatory food package labeling, changes that we continue to monitor for impacts on the almond industry. The President has been invited by the Speaker of the House to provide the State of the Union address on March 7. During this speech, we will learn more about the President’s election year priorities and he will outline his budget, which will be delayed until after he has addressed the nation. International Update On the trade front, engagement by our growers with the California delegation led to a letter pressing the U.S. Trade Representative (USTR) to engage the Government of Turkey to remove burdensome tariffs on the domestic almond industry. The USTR has engaged the issue and is presently working to schedule meetings with the Government of Turkey. Attacks on shippers in the Red Sea continue to present challenges. The U.S. Government has diverted military resources to the area as a part of Operation Prosperity Guardian to protect shipping lanes but stopping nimble drone attacks is difficult. Shippers are being forced to forgo shipping through the Suez Canal and reroute around the Cape of Good Hope in Africa. This adds significant time and expense to exports. Election Update And finally, 2024 is an election year. The race to temporarily replace former Speaker McCarthy in his California district is on. Governor Gavin Newsom has set March 19 as the special election date to fill the remainder of McCarthy’s term. With the passing of Senator Dianne Feinstein in September, the state has scheduled a special election to fill the remainder of her term. The Special Primary election will be held on March 5, and the Special General Election will coincide with the General Election vote for other office holders on November 5. On December 28, the Secretary of State published the list of eligible candidates for both races. President Joe Biden is running for re-election in the Democratic primary, largely unopposed. The Republican primary started out crowded but has narrowed to two main

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ALMOND FACTS

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