Ag Policy Blog

We should find out this week whether the U.S. Senate is going to be able to move ahead on Trade Promotion Authority.

Sen. Charles Grassley said President Obama needs to be engaged, but the senator hasn't seen any evidence that the president is making calls to reluctant lawmakers to vote on TPA. Grassley said he believes TPA "is a heavy lift unless the president gets very much involved."

Grassley said senators will meet Tuesday afternoon to learn from Senate Finance Committee leaders Orrin Hatch and Ron Wyden about where negotiations stand on getting a bill out of the Finance Committee.

Reuters reported Monday that Hatch, R-Utah, was continuing to negotiate with Wyden, D-Oregon, on a bill and should know soon whether a deal could be reached.

"We should expect the possibility if there is an agreement that there be a pretty quick markup if an agreement is announced," Grassley said. "Right now, it looks like they made some progress. Until a week ago, I would have never thought that was possible."

Grassley said he believes some procedural issues remain the biggest sticking points. Trade adjustment assistance for people who lose their jobs also is being negotiated, Grassley said.

The senator also said he's concerned the Trans Pacific Partnership could have language in it regarding immigration, which he said trade negotiators have no business discussing in a trade deal. That could cause him to oppose a TPA

"I don't know to what extent TPP has gotten into that field, but we're told that it has and I don't think Trade Promotion Authority should be used to expand immigration," Grassley said. "That should be handled through the Judiciary Committee and not through trade, but I don't know to what extent that's going to be an issue."

Still, Grassley was confident Republicans would largely support a Trade Promotion Authority bill.

Reopening the Farm Bill

Grassley also told reporters in his weekly phone call that the budget process could lead to reopening the farm bill. If the House and Senate come together on a budget reconciliation process, then that could lead to possible program cuts or changes in program eligibility. Grassley made the comments after being asked about his view on the USDA proposal to limit general partnerships to three farm managers eligible for program payments. If farm-program savings are needed, Grassley said it could create an opportunity to tighten the rules on farm-program eligibility.

Section 179 in Limbo, Again

Grassley was also asked about tax extenders and whether it would be December for some of those key tax provisions such as Section 179 are renewed. Grassley said "everyone knows waiting until December is the wrong thing to do," but the Senate Finance Committee won't move on tax extenders until it's clear they won't get a full-blown tax reform bill this year.

"Some people think if you are talking about doing tax extenders then you are giving up on tax reform," he said.

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