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Lawmakers blast USDA for SNAP payment errors

Policy quick hits: USDA now offering compensation to dairy farmers affected by bird flu; senators raise concerns over Chinese cooking oil imports; U.S. and Chile clarify ag trade agreement

Joshua Baethge, Policy editor

July 1, 2024

4 Min Read
U.S. capitol building with flag background
Getty Images/franckreporter

There’s never a shortage of agriculture news. Here are a few policy stories you may have missed over the past week.

SNAP payment errors up slightly in 2023

A new USDA report shows the Supplemental Nutrition Assistance Program payment error rate from fiscal year 2023 was 11.68%. Overpayments accounted for a little over 10.03% of the errors, a slight increase from 2022. The underpayment error rate stood at 1.64%, a nominal improvement from 2022’s 1.70%.

Those rates are still well above the 7.36% overall error rate reported in 2019 before the pandemic. In a press release accompanying the statistics, USDA officials say the payment error rates are not synonymous with fraud, but rather reflect how accurately states determine eligibility and benefit amounts. They say payment errors are largely due to unintentional mistakes by either the state agency or household recipes.

Still, Food and Nutrition Service Administrator Cindy Long says high error rates in a program impacting millions of lives cannot be tolerated. She called on states to take immediate action to improve SNAP payment accuracy, warning they could face financial penalties.

“We are sending a clear message to all states: accuracy in SNAP is non-negotiable,” Long says. “We expect state leadership at all levels to be fully engaged in this effort to improve.”

In a June 28 joint statement, House Ag Committee Chair Glenn “GT” Thompson and Senate Ag Committee Ranking Member John Boozman argue USDA also shares much of the blame. They say the level of erroneous payment remains “shockingly high.”

“States must get a better handle on the administration of SNAP, but USDA is the ultimate arbiter of this program,” Thompson and Boozman say. “Secretary Vilsack needs to step up to the plate and stop making excuses for states that carelessly mishandle taxpayer dollars. USDA must intensify their oversight of states and stop distancing themselves from the administration of SNAP.”

USDA set to provide financial assistance to dairy farmers impacted by H5N1

Starting July 1, USDA is accepting applications for a new program providing financial assistance to dairy farmers impacted by H5N1 avian influenza. The updated Emergency Assistance for Livestock, Honeybees and Farm-raised Fish Program will compensate them for a portion of milk losses caused by H5N1 infected livestock.

To be eligible, farmers must have a positive avian flu test result confirmed through a USDA Animal and Plant Health Inspection Service National Veterinary Service Laboratory. They must also provide a notice of loss indicating when the test sample was collected as well as additional information regarding the number of cattle and amount of milk production affected.

Agriculture Secretary Tom Vilsack says USDA is committed to working with producers and stakeholders as the agency continues working to stop the virus’ spread.

“When something unexpected, like H5N1, threatens the economic viability of the producers we serve, we are committed to finding ways, where we have the authority to do so, to revisit existing program policies and provide the financial support needed to help producers recover and sustain production,” Vilsack says.

Six senators call on Biden administration to address used cooking oil imports

Six senators are calling for action to address the rise of used cooking oil imports. In a letter addressed to leaders from EPA, USDA and the U.S. Trade Representative and Customs and Border Protection, they say “foreign actors” may be exploiting tax incentives to meet Biden administration sustainability goals.

The senators note U.S. used cooking oil imports increased from 200 million pounds in 2020 to more than 3 billion pounds in 2023. More than half of those imports came from China.

“We understand there are good actors utilizing UCO as part of a diverse array of feedstocks in their renewable fuel production, and domestic sources of UCO are held to rigorous verification and traceability requirements,” the senators say in their letter, “However, we are concerned with the lack of transparency surrounding the United States’ efforts in the area of verifying imported UCO, specifically as it related to 1) ensuring the integrity of the imported UCO by validating that traceability requirements have been met; and 2) evaluating the chemical composition of the imported UCO.”

The letter was signed by Sens Roger Marshall, R- Kan., Sherrod Brown, D- Ohio, Pete Ricketts, R- Neb., Deb Fischer, R- Neb., and Chuck Grassley, R- Iowa, and Joni Ernst, R- Iowa.

Chile confirms market access for American meat and cheese products

U.S. Trade Representative Katherine Tai and Chile Undersecretary of International Economic Relations Claudia Sanhueza exchanged letters to confirm market access for a number of American meat and cheese products. The agreements are intended to help U.S. producers grow their business and supply specialty meats and cheeses using certain terms.

Language in the agreements will prevent U.S. producers from being adversely affected by other measures disallowing the uses of certain terms describing meat and cheese products. The letters will become part of the U.S.- Chile Free Trade Agreement.

“This represents an important strengthening of our bilateral trading relationship and will provide real and tangible benefits for American agricultural producers and Chilean consumers,” Tai says.

About the Author(s)

Joshua Baethge

Policy editor, Farm Progress

Joshua Baethge covers a wide range of government issues affecting agriculture. Before joining Farm Progress, he spent 10 years as a news and feature reporter in Texas. During that time, he covered multiple state and local government entities, while also writing about real estate, nightlife, culture and whatever else was the news of the day.

Baethge earned his bachelor’s degree at the University of North Texas. In his free time, he enjoys going to concerts, discovering new restaurants, finding excuses to be outside and traveling as much as possible. He is based in the Dallas area where he lives with his wife and two kids.

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