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AFBF Navigates Policy and Trump

SAN ANTONIO (DTN) -- The Trump administration rescinded its attempt at a government-wide freeze on federal aid on Wednesday, but it underscores the aggressive moves President Trump's team is pursuing to rein in spending over the next four years.

The White House Office of Management and Budget (OMB) issued another statement revoking the freeze, which had been blocked by a federal judge. Over the past two days, the freeze triggered a ripple effect of responses and actions from businesses and groups that receive federal funding.

Zippy Duvall, president of the American Farm Bureau Federation (AFBF), was conducting a policy meeting with 350 farmers on Tuesday when his staff first learned about the federal order.

"So, when we heard that, when it was reported to me, we'd already started making contacts to Congress and USDA to make sure that that executive order and that freeze would not interfere with agriculture or interrupt the food supply system, because that could convert into higher costs or higher prices to consumers, and we know this president doesn't want to see that," Duvall said.

Later in the day, Duvall learned the order had been clarified to exclude individual assistance programs for small businesses and farmers.

"OMB clarified that it would not affect agriculture and the programs around it. So, we were pleased to hear that. So just -- it looks like now -- what we interpret at this point in time -- is it will not affect agriculture and the programs around that."

Talking about the flurry of orders from the White House in the first few days of the Trump administration, Duvall said late Tuesday, "It's only been ten days."

The initial OMB order suspended funding for diversity, equity and inclusion (DEI) programs, as well as "green" programs or "woke" programs. The order included a long list of federal programs that departments may still be expected to detail and explain back to OMB. There were roughly 400 USDA programs that were part of that list.

Among the programs that could be swept up in a push against DEI were USDA programs for "socially disadvantaged" farmers. "Socially disadvantaged" is a classification spelled out in the farm bill since the 1990s. It includes farmers who are Black or African American, American Indian or Alaska Native, Hispanic or Latino, and Asian or Pacific Islander. For some, but not all, USDA programs the socially disadvantaged category also includes women, USDA states on its website.

The AFBF delegates on Tuesday added language to their policy book under "education" that opposes "any and all forms of diversity, equity, and inclusion or wokeness being forced into our public-school systems and publicly funded institutions or agencies."

When a delegate asked, "Define wokeness," Duvall chimed in, "Someone want to attempt that? I'm not going to."

But AFBF also maintained language in the group's "farm policy" section that supports "increased funding for USDA programs with specific attention to easing access for farm families and those inheriting family farms, as well as to increasing the racial diversity of farmland ownership"

In an interview, Duvall pointed out the USDA socially disadvantaged programs were written into law.

"If those programs were put into law, we would expect them to move forward with it," he said. He added, "Our policy still covers helping socially disadvantaged farmers in those situations."

In 2023, USDA issued $1 billion in loans to farmers who met the definition of socially disadvantaged. Oklahoma, with a large population of Native American farmers, accounted for $222 million in socially disadvantaged loans, followed by Arkansas, which had $112 million.

SAF AND 45Z

Among policy issues, Farm Bureau also reiterated its support for sustainable aviation fuels (SAF) and the tax credits from the Inflation Reduction Act that make it happen, notably the 45Z Clean Fuels Production Tax Credit.

A provision added to the AFBF policy book calls for ensuring farmers can participate in a public- or private-sector carbon program while selling a commodity feedstock for biofuels used in aviation fuel.

"We reinforced our position on making sure that we support homegrown feedstocks for sustainable fuel -- aviation fuel -- and trying to broaden the spectrum of conservation programs that they might ... use in some of the government programs so that they ... would benefit farmers to be able to take advantage of that because the scope of those projects," Duvall said.

AFBF noted, "Farmers are committed to growing a crop necessary for producing clean fuels, including corn, soybeans. Tax credits like the clean fuel production credit 45z that incentivize production of sustainable aviation fuel have the potential to benefit farmers while lowering America's carbon emissions. Our policy provides producers with flexibility to comply with the climate smart agricultural requirements."

Another issue AFBF stressed was that tax credits such as 45Z should be reserved for domestic feedstocks, not imported feedstocks or fuels.

"It really bothered everybody that we were bringing in feed stocks from outside, like used cooking oil from China," he said. "If we're going to have a tax credit, it should be focused on homegrown feedstocks. And the conservation programs that are going to require for it to lower their emissions should be broader so that more areas of the country could utilize it as well."

IMMIGRATION AND BORDER

AFBF adopted language supporting a continuous barrier along the U.S.-Mexico border. "The barrier needs to be impenetrable by not only persons, but also livestock and wildlife."

At the same time, AFBF supports immigration policy that recognizes agriculture "has become increasingly reliant on migrant and foreign-born workers to fill both seasonal and year-round labor needs."

This includes a comprehensive immigration reform that would support "employers and their existing workforce" and "to ensure that reforms do not disrupt agricultural production."

OPTIMISM AMID ECONOMIC CHALLENGES

Nearly 5,000 farmers and their families attended the AFBF meeting.

"Obviously, the economic situation is really bad, but they're riding a high now. There's a change in administration. They got high hopes that a lot of things are going to change. We're hoping that we're going to get back in the arena of trade, even though we hear the threats of tariffs, and we don't support tariffs, and we're concerned about that talk, but we also know it's one of his tools to bring people to the table to create trade deals. Hopefully, what he did the first time will happen this time, his commitment to farmers. We feel like he's still where he was before."