the Summer 2017
Official Newsletter of the NATIONAL WATERMELON ASSOCIATION
TAMPA, FL 33634
www.watermelon.ag
The White House released their proposed budget for
FY 2018. The drastic cuts to agriculture and rural
development programs seem (to some agriculture
groups) misguided given the large role that agriculture and rural America played in electing President
Trump. These cuts go towards increases in defense
spending and even allocates $1.6 billion for the
border wall. While it is important to remember this is
only a proposal and Congress has the final say on the
government’s budget, there were still several items of
concern we will be keeping an eye on going forward.
Under the President’s proposed budget, the Department of Agriculture would be funded at $137 billion, 8 percent less than current funding levels, and
would shrink the workforce by over 5,200 jobs. This
includes cuts to the Farm Service Agency’s staff by
around 970 positions. Programs which would be eliminated altogether under the proposal are the Specialty
Crop Block Grant Program, Market Access Program,
Foreign Market Development Cooperator Program,
Farmers Market and Local Food Promotion Program,
and the Value-Added Producer Grants among others.
According to budget documents “there is no federal
purpose” for these programs. Part of the President’s
plan also seeks to cut crop insurance by $29 billion
over ten years and would cap premium subsidies at
$40,000 per farmer and would be limited to producers with less than $500,000 in adjusted gross income.
This $500,000 threshold would also apply to commodity and conservation assistance subsidies. The
Supplemental Nutrition Assistance Program (SNAP)
would see reduced funding of $193 billion over 10
years and the Food Insecurity Nutrition Incentive
Program (FINI) would receive mandatory funding
of $25 million in 2018 under the proposed budget.
The Specialty Crop Research Initiative (SCRI) would
be funded at $80 million for 2018 with $25 million
reserved for the Emergency Citrus Disease Research
and Extension Program.
Outside of the Department of Agriculture, there are
$83 million in proposed cuts at the FDA mainly
targeting food safety program funding and a call for
reducing staff levels through attrition. This comes as
the agency is rolling out implementation of the Food
The President’s
Budget Proposal
Dawn Of A
New Day?
Trump begins NAFTA
Renegotiation Process
Labor Department Withdraws
Obama-Era Guidance On
Misclassification, Joint Employment
In a welcome development for employers, Secretary
of Labor Alexander Acosta announced that the U.S.
Department of Labor (USDOL) was immediately
withdrawing guidance published during the Obama
administration that had hampered businesses when
it comes to independent contractor misclassification
and joint employment standards. While the guidance letters did not carry the force of law, they were
relied upon by USDOL investigators and courts
when examining allegations of wrongdoing, and
were often cited by plaintiffs’ attorneys to support
their demands.
Their withdrawal is one of the first concrete steps
taken by the Trump Department of Labor to free up
employers to conduct business in a less burdensome
regulatory environment. Although employers still
need to proceed with caution when developing policies and practices involving classification and joint
employment principles, this development might
signal the dawn of a new day.
Short But Sweet Announcement From
Labor Department
Without prior fanfare, the USDOL issued a three-sentence news release this morning announcing the
withdrawal. “U.S. Secretary of Labor Alexander
Acosta today announced the withdrawal of the U.S.
Department of Labor’s 2015 and 2016 informal
guidance on joint employment and independent
contractors,” the release read. In fact, if you search
for the informal guidance letters on the USDOL’s
website as of this morning, you will now find a
blank page reading: “Page Not Found – The page
you requested wasn’t found on our website.” The
release then reminded employers that they are still
on the hook for potential violations of wage and
hour statutes such as the Fair Labor Standards Act
(FLSA), and concluded by stating the agency “will
continue to fully and fairly enforce all laws within
its jurisdiction.”
The words might be brief but their impact is powerful. With a sweep of the digital pen, Secretary
Acosta has scrapped the guidance that had troubled
businesses for the past several years.
2015 Misclassification Guidance Deemed To Miss
The Mark
In July 2015, the USDOL – then headed by Obama
appointee Tom Perez – issued Administrator’s
Interpretation No. 2015-1, subtitled “The Application of the Fair Labor Standards Act’s ‘Suffer or
Permit’ Standard in the Identification of Employees
U.S. Trade Representative Robert Lighthizer in May
notified Congress that President Trump intends to renegotiate the North American Free Trade Agreement. By
law, the administration is required to advise Congress of
its intent to engage in negotiations for a new or modified trade agreement 90 days before such negotiations
may commence. Negotiations will begin no earlier than
August 16th.
NAFTA is a multi-layer free trade agreement
between the United States, Canada & Mexico.
U.S. Trade Representative
Robert Lighthizer
Canadian Minister of
Foreign Affairs Chrystia
Freeland
“Today, President
Trump fulfilled one of
his key promises to the
American people,” Mr.
Lighthizer said. “For
years, politicians have
called for the renegotiation of this agreement,
but President Trump
is the first to follow
through on that promise.
U.S. T.R. will now continue consultations with
Congress and American
stakeholders to create an
agreement that advances
the interests of America’s
workers, farmers, ranchers and businesses.”
Canadian Minister of
Foreign Affairs Chrystia Freeland said in
response to the administration’s notification
to Congress, “NAFTA’s
track record is one
of economic growth
and middle-class job
creation, both here in Canada and throughout North
America. Nine million American jobs depend on trade and
investment with Canada. Our integrated economies and
supply chains support millions of jobs across the continent.
“We are at an important juncture that offers us an opportunity to determine how we can best align NAFTA
to new realities and integrate progressive, free and fair
approaches to trade and investment,” Ms. Freeland said.
“We are steadfastly committed to free trade in the North
American region and to ensuring that the benefits of
trade are enjoyed by all Canadians.”
