Bipartisan Legislation Passes to Lower Food and Fuel Costs Amid Supply Chain Crisis

Strategic Insights -

Bipartisan legislation passed in the House of Representatives aims to alleviate the burden of rising food and gas prices on American families. The Lower Food and Fuel Costs Act, backed by Congressman Josh Gottheimer (NJ-5), targets the meat and poultry industries, the supply chain, and fertilizer production to address the root causes of the crisis. The legislation includes measures to stop collusion and price fixing in the meat and poultry industries, fix the food supply chain, and support struggling livestock and meat producers.

Key Takeaways:

  • The bipartisan Meat and Poultry Special Investigator Act will appoint a USDA special investigator to enforce price-fixing laws on major meat and poultry companies.
  • The Strengthening the Agriculture and Food Supply Chain Act requires the USDA to identify breakdowns, bottlenecks, and pain points in the food and agriculture supply chain and report back to Congress.
  • The Butcher Block Act will identify up-and-coming livestock and meat producers in need of assistance to help jumpstart the supply chain and get meat moving.
  • The bipartisan package will ensure small and medium-sized farmers, ranchers, and rural businesses have the support and assistance they need to navigate supply chain challenges.
  • The package requires the USDA to establish a program to award grants for the deployment of renewable fuel infrastructure.
  • The package authorizes USDA to implement a program to reduce dependence on foreign sources of fertilizers, support reliable access for farmers, and encourage innovation and competition in the highly concentrated fertilizer industry.

Statistics:

  • According to Congressman Josh Gottheimer, post-COVID supply chain issues, the war in Ukraine, and collusion and concentration in meat and poultry and fertilizer industries have contributed to the rise in costs.
  • The bipartisan Meat and Poultry Special Investigator Act aims to prevent $3 billion in annual lost revenue due to price-fixing practices.
  • The Strengthening the Agriculture and Food Supply Chain Act aims to report back to Congress to identify breakdowns, bottlenecks, and pain points in the food and agriculture supply chain.

Sources:

  • Congressman Josh Gottheimer (NJ-5)
  • United States House of Representatives
  • U.S. Department of Agriculture (USDA)
  • U.S. Transportation Command (USTRANSCOM)
  • Operation Fly Formula
  • Defense Production Act
  • COVID-19 Supply Chain Relief Act
  • "Ports that Perform" Incentives
  • All-of-the-Above Energy Plan
  • State and Local Tax (SALT) deduction
  • Affordable Insulin Now Act