How the Biden Administration May Impact the Food Industry

Economic and infrastructural policy. The Biden Administration has yet to articulate a comprehensive economic policy. In all likelihood, the administration’s economic policy will be determined by how and whether the coronavirus pandemic affects the economy between now and January 2021. In the meantime, farmers across the country will continue to experience adverse impacts due to the imposition of tariffs on Chinese goods and the ongoing trade war. Although Biden has been critical of the prior administration’s approach, his administration has not clearly articulated exactly how it will deal with the trade war.

One interesting question involves the intersection between climate policy and economic policy. On the one hand, if the Biden administration lifts tariffs on Chinese products, that could be a significant boon to farmers by reopening Chinese markets to U.S. agricultural products. At the same time, the expected focus on reducing the use of and reliance on fossil fuel emissions could have a correspondingly negative effect on demand for biofuels, such as ethanol.

In terms of infrastructural policy, the Biden administration seeks to invest $20 billion in rural broadband infrastructure, and to triple broadband access funding in rural areas. This reflects much needed and long overdue support to agribusiness, which is predominantly located in rural areas. A new stimulus package is also likely after the inauguration. As of late November, it appears unlikely that Congress will be able to pass a stimulus package before 2021.

Climate and immigration. Not surprisingly, immigration and climate change are two areas where the policy differences between the incoming and outgoing administrations are most apparent. Whereas the previous administration was known for being largely anti-immigration, Biden is pressing for a more permissive immigration framework, especially as it relates to agricultural immigration. Biden seeks to work with Congress to enact compromise legislation between farmworkers and the agricultural sector that would grant legal status based on, among other things, agricultural work history. In the current political climate, and especially if the Senate remains under Republican control, it will be difficult to pass any meaningful legislation, much less immigration reform legislation, which remains anathema to the Republican base. Thus, we are most likely to see implementation of lesser reforms that are achievable through executive action.

While President Trump has historically expressed skepticism about climate change and the need to address it, Biden has made it one of his signature issues. Biden recently named former Secretary of State John Kerry as his climate czar. The administration aims to lay the groundwork for achieving a 100% clean energy economy and net-zero emissions by 2050, and to expand the federal Conservation Stewardship Program, a partnership between the government and farmers/ranchers to implement sustainability improvements and reduce emissions. Such a partnership would likely provide a host of new opportunities for small to mid-size agricultural interests but would also increase the industry’s regulatory burden.

Change Takes Time

I hope this article offers a better understanding of what the new administration will mean for the food industry. However, as momentous as a presidential election is from a historical standpoint, it is important to maintain an appropriate amount of perspective. As a practical matter, it is important to note that significant change typically takes significant time. The United States government is a bureaucratic colossus. In recent decades, we have faced a nearly constant barrage of tribalistic, partisan-based fearmongering. With each election, we are made to believe we face tremendous danger; however, the reality is more mundane. Yes, the United States faces significant challenges, domestically and internationally. It always has. Democracy is loud and messy. But, whether you were happy with outcome of the election or not, the reality is that, for most people, our day-to-day lives are unlikely to significantly change as a result of any single presidential administration or who happens to control the House or Senate.