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Regulatory Issues

Warren Decries Soaring Food Costs, Profits

The CEOs of Kroger, Publix and Albertsons received a letter from U.S. Sen. Elizabeth Warren (D-Mass.), but it wasn’t to wish them happy holidays. Instead, she criticized them for inflated profits while food costs soar.

Warren asked the CEOs to justify rewarding executives and shareholders while raising food costs, according to a press release. Warren asked for steps the grocers are taking to protect consumers and whether they put profits over consumers in the midst of a public health and economic crisis.

“Large grocers are blaming high food costs on inflation, but it’s time to talk about how they’re using every opportunity to rake in profits, reward executives and big shareholders while driving up prices even more,” Warren said.

“These companies made record profits during the pandemic and when faced with the choice to retain lower prices for consumers and properly protect and compensate their workers, they greedily granted massive payouts to top executives and investors. They need to answer for these actions,” Warren said.

Grocery chains have reassured investors that only consumers – not company profits – would be hurt by rising costs, all while continuing to spend billions on stock buybacks and executive pay, Warren said.

In 2020, Kroger, Albertsons, and Publix reported increased profits and net income compared to pre-pandemic levels. Now they are pushing grocery cost increases onto consumers, blaming it on inflation and lining the pockets of executives and investors, Warren said.
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Kroger CEO Rodney McMullen told investors “a little bit of inflation is always good in our business.” Kroger and Albertsons have deprived frontline workers of hazard pay and failing to adopt necessary workplace safety precautions, Warren said.

Warren urged grocers to support essential workers that put themselves and their families at risk throughout the pandemic and ensure they have proper protections, rights and compensation. Warren has also pushed Congress to act on her Essential Workers Bill of Rights, which would bolster workplace protections for essential workers throughout the pandemic.

Warren asked the CEOs to respond by Jan. 7.

Warren also recently asked the Department of Justice to investigate the poultry industry’s anticompetitive behavior as turkey and chicken prices have soared.

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USDA and FDA Reach Formal Agreement to Regulate Cell-Cultured “Meat” Products

The U.S. Department of Agriculture’s (USDA) Food Safety and Inspection Service (FSIS) and the U.S. Department of Health and Human Services’ (HHS) Food and Drug Administration (FDA) have entered into a formal agreement to jointly oversee the production of human food products derived from the cells of livestock and poultry.

FSIS and FDA released a formal agreement to address the regulatory oversight of human food produced using this new technology. The formal agreement describes the oversight roles and responsibilities for both agencies and how the agencies will collaborate to regulate the development and entry of these products into commerce. This shared regulatory approach will ensure that cell-cultured products derived from the cell lines of livestock and poultry are produced safely and are accurately labeled.

“Consumers trust the USDA mark of inspection to ensure safe, wholesome and accurately labeled products,” said USDA Deputy Under Secretary for Food Safety Mindy Brashears. “We look forward to continued collaboration with FDA and our stakeholders to safely regulate these new products and ensure parity in labeling.”
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“We recognize that our stakeholders want clarity on how we will move forward with a regulatory regime to ensure the safety and proper labeling of these cell-cultured human food products while continuing to encourage innovation,” said Frank Yiannas, FDA Deputy Commissioner for Food Policy and Response. “Collaboration between USDA and FDA will allow us to draw upon the unique expertise of each agency in addressing the many important technical and regulatory considerations that can arise with the development of animal cell-cultured food products for human consumption.”

Under the formal agreement, the agencies agree upon a joint regulatory framework wherein FDA oversees cell collection, cell banks, and cell growth and differentiation. A transition from FDA to FSIS oversight will occur during the cell harvest stage. FSIS will oversee the production and labeling of human food products derived from the cells of livestock and poultry

President Trump, USDA Secretary Perdue Hold Farmers Roundtable

U.S. Secretary of Agriculture Sonny Perdue today joined President Trump for a “Farmers Roundtable” at the White House to address issues facing the American agriculture community, as the President signed an Executive Order establishing an Interagency Task Force on Agriculture and Rural Prosperity. The roundtable discussion allowed representatives from all corners of American agriculture to raise concerns and share ideas, just as the task force begins its mission “to promote economic development and revitalization, job growth, infrastructure, innovation, and quality of life issues for rural America,” according to the President’s order. The session capped a busy first day in office for Perdue, who was sworn in by Associate Justice of the Supreme Court Clarence Thomas as the 31st U.S. Secretary of Agriculture before greeting employees at the U.S. Department of Agriculture (USDA) and travelling to the White House for the roundtable.

“The people who are on the front lines of American agriculture don’t have the luxury of waiting to tend to their crops and livestock, so there was no better time to convene this meeting of the minds than on my first day,” Perdue said. “President Trump has made it clear that addressing the needs of rural America will be a top priority, and the message that we want to send to the agriculture community is that we are here, we are working hard, and we are on their side.”

Farmers Roundtable

perdue-trump-farmers-roundtable_originalThe Farmers Roundtable featured more than a dozen farmers and representatives of the agriculture community who discussed with President Trump and Secretary Perdue a variety of topics, including agricultural trade, regulatory reform, rural investment and infrastructure, labor issues, and the Farm Bill. Participants in the roundtable included:

• Lisa Johnson-Billy, farmer and former Oklahoma House member, Lindsay, Oklahoma
• Luke Brubaker, Brubaker Farms, Mount Joy, Pennsylvania
• Hank Choate, Choate’s Belly Acres, Cement City, Michigan
• Tom Demaline, Willoway Nurseries, Avon, Ohio
• Zippy Duval, President of American Farm Bureau Federation and a farmer from Greensboro, Georgia
• Valerie Early, National FFA Central Region Vice President and former 4-H member, Wykoff, Minnesota
• Lynetta Usher Griner, Usher Land and Timber, Inc., Fanning Springs, Florida (also farms in the state of Kansas)
• A.G. Kawamura, Orange County Produce, Newport Beach, California
• James Lamb, Lamb Farms and Prestage Farms, Clinton, North Carolina
• Bill Northey, Iowa Secretary of Agriculture and farmer, Spirit Lake, Iowa
• Jose Rojas, Vice President of Farm Operations for Hormel, Colorado Springs, Colorado
• Terry Swanson, Swanson Farms, Walsh, Colorado
• Maureen Torrey, Torrey Farms, Elba, New York
• Steve Troxler, North Carolina Commissioner of Agriculture and farmer, Browns Summit, North Carolina

“The Farmers Roundtable provided the chance for the President to hear directly from the people on the front lines of American agriculture about what they are dealing with every day,” Secretary Perdue said. “By hosting this discussion, the president has demonstrated his awareness of the plight of American farmers, ranchers, foresters, and producers, his intention to seek input, and his determination to help.”

 

President Trump’s Executive Order

President Trump’s Executive Order established the Interagency Task Force on Agriculture and Rural Prosperity “to ensure the informed exercise of regulatory authority that impacts agriculture and rural communities.” As Secretary of Agriculture, Perdue will serve as the task force’s chairman.

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The task force will examine and consider, among other issues, current barriers to economic prosperity in rural America and how innovation and technology may play a role in long-term, sustainable rural development. The panel will attempt to strengthen federalism by working with state agencies charged with implementing economic development, agricultural, and environmental programs, while also emphasizing regulatory flexibility for farms and small businesses. With a dependence on sound science, task force members will examine crop protection tools used by farmers and also address concerns regarding labor needed for livestock and year-round agricultural jobs. Additionally, the group will focus on tax policies that allow family farms to remain intact, while also protecting against federal takeover of state-adjudicated water rights, permitting and licensing, and conservation requirements beyond what is provided in law. Finally, members will look to improve food safety and the implementation of food safety laws, but also recognize the unique nature of farming and the diverse business structures of farms.

“It used to be that people in agriculture feared disease and drought as the greatest threats to their livelihoods and their mission of feeding America and the world,” Perdue said. “While those hazards remain, too often now it is the government – through interference and regulation – that poses the most existential threat to American farming. We aim to put a stop to that.”

The task force will seek input from stakeholders in the agricultural community and is required to issue a report with recommendations for legislative or administrative actions within 180 days. The task force will consist of representatives from the following cabinet agencies and executive branch departments:

• Secretary of the Treasury;
• Secretary of Defense;
• Attorney General;
• Secretary of the Interior;
• Secretary of Commerce;
• Secretary of Labor;
• Secretary of Health and Human Services;
• Secretary of Transportation;
• Secretary of Energy;
• Secretary of Education;
• Administrator of the Environmental Protection Agency;
• Chairman of the Federal Communications Commission;
• Director of the Office of Management and Budget;
• Director of the Office of Science and Technology Policy;
• Director of the Office of National Drug Control Policy;
• Chairman of the Council of Economic Advisers;
• Director of the Domestic Policy Council;
• Director of the National Economic Council;
• Administrator of the Small Business Administration;
• United States Trade Representative;
• Director of the National Science Foundation; and
• Heads of such other executive departments, agencies, and offices as the President or the Secretary of Agriculture may, from time to time, designate.