U.S. Has Opportunity to Sell Top End Beef

Growing volumes of U.S. beef are anticipated to begin arriving in the European Union following agreement for a duty-free, high-quality beef quota. An expert with the U.S. Meat Export Federation says a lack of grain-fed beef in the market makes for a big opportunity. Thad Lively, senior vice president of policy, planning and research for USMEF, says the quota might not necessarily mean massive volumes but it does open the door to the highest value end of the market.

The EU has realized it will be a beef importer rather than exporter so it is looking to diversify its sourcing beyond South American suppliers. Under these circumstances, this spring Washington worked out a deal whereby the EU's 20 percent tariff is eliminated. As a result, Lively says - he expects that within the next three to five years, the United States will be sending as much as 70-thousand metric tons of beef annually to the EU at prices that are - probably twice the average level of prices in the rest of the export markets.

Lively says - I think the fact that we're talking about occupying the very top end of the market makes our product and the idea of importing from the U.S. a lot less threatening to European producers. He adds, - if we were trying to ship a product over there that was going to compete directly with European beef, which is what Brazil, for example, is doing, then clearly European producers start to feel as if they're going to have trouble competing against this inexpensive meat from Brazil. We don't have that problem, because by occupying this niche at top of market, if anything we're going to pull prices up instead of pulling them down.

Snowmass Raises the Nutritional Bar

A new high-yielding variety of hard white winter wheat that has shown high yields and overall disease resistance in Colorado has been released to the Colorado Wheat Research Foundation. Snowmass has demonstrated such superior mixing and baking quality characteristics that it was accepted into the CWRF Ultragrain Premium Program with ConAgra Mills.

This program will pay producers a premium of 30 cents per bushel over the market price for the 2010 crop, plus a protein premium of up to 40 cents based on the protein content of the wheat.

Snowmass wheat will be used to make Ultragrain flour, a100 percent whole wheat flour that combines the nutrition and benefits of whole grains with the finished recipe qualities of refined flour. ConAgra Mills’ John Bartels says - Ultragrain flour is transforming the grain based product industry - supporting the development and growth of new consumer products like whole wheat white bread.

Wheat breeder Scott Haley, professor in the Soil and Crop Sciences Department at CSU, says - in several years of field testing throughout eastern Colorado, the Snowmass wheat variety has shown exceptional yield under dryland conditions, and excellent disease resistance. Snowmass may be grown and sold only as a class of certified seed by Colorado Seed Growers Association members licensed by CWRF.

Report: Program Payment Belt Tightening Ahead

It’s been learned that USDA officials plan to use their regulatory authority to further tighten farmer eligibility for farm program payments. USDA is expected to make an official announcement as early as next month and give the public an opportunity to provide feedback. This move would deliver on one of President Barack Obama’s campaign pledges.

Groups representing growers of southern crops told Agri-Pulse the changes on tap for the 2010 crop year include a more objective definition of what it means to be "actively engaged" in farming as well as a tightening of the provision that allows spouses to be considered separate persons for payment limitation purposes.

New Web Site has Information on Ethanol

Growth Energy has announced the launch of a new online resource to help consumers learn more about the - tremendous benefits - of ethanol for America’s environment, economy and national security. The site includes answers to many frequently asked questions about the ethanol industry, as well as retail information.

Growth Energy CEO Tom Buis calls - DrivingEthanol.org - a one-stop shop to learn more about the remarkable benefits of high-tech, homegrown ethanol. Buis says, - ethanol is affordable and available now to grow our economy, green our environment and enhance our national security. Buis invites consumers and retailers to visit DrivingEthanol.org to learn more about the promise of ethanol.

The web site also contains helpful retail information such as E85 and blender pump locations, uses of ethanol and a listing of the Flex-Fuel Vehicle models on the market today. The site also provides valuable resources for prospective ethanol retailers including information on tax incentives, pump installation and conversion, as well as ethanol purchase.

Warning: Face Climate Change Now Not Later

An Iowa State University assessment of climate change legislation concludes that while cap-and-trade legislation - introduces uncertainty,- failing to act now could lead to even more uncertainty, more downside risk and - a much greater technological challenge. AgMRC co-director Don Hofstrand concludes with a pay-me-now or pay-me-more-later warning: - not developing greenhouse gas reduction technologies today will lead to the need for developing technologies to help us adapt to climate change in the future. Hofstrand believes - this will be a much greater technological challenge.

Hofstrand adds up the potential negative impacts that the House-passed Clean Energy and Security Act could have on U.S. farmers and ranchers due to higher energy prices. He finds - the overall impact on net farm income is expected to be relatively small . . . down about 1 percent in the next decade, decreasing by about 7 percent by mid-century. Hofstrand says - even the 7 percent drop may be an overestimate since farmers have a long track record of improving productivity.

On the plus side, Hofstrand sees farmers and ranchers earning substantial income from selling carbon offsets. He says no-till farming already gives farmers a way to store large amounts of carbon in the soil. As new technologies are developed, he sees far greater income opportunities from increasing soil carbon sequestration with charcoal, capturing ethanol plant emissions, developing new feedstocks for nitrogen fertilizer, and transforming livestock manure emissions from a greenhouse gas problem to a major energy source.

Update on Algae Research Reported

At the recent “Algae-to-Energy in the South” regional summit held in St. Louis, academic and industry experts from ten states reported on the wide range of algae based research underway around the country. Projects range from improving algae's ability to capture solar energy, to identifying best practices for removing oil from algae. Research touches on every aspect of algae and recognizes the vast opportunities for growth, improvement and eventually commercialization. The Center for Evergreen Energy, the St. Louis Regional Chamber and Growth Association and the Southern Growth Polices Board hosted the event.

One of the reports focused on the development of a non-destructive oil extraction process, sometimes referred to as "milking the algae," that is capable of continuously removing oil from living algal cultures. The program is considering what strains perform best and how the process may benefit production efficiency by removal of contaminants.

Dr. Richard Sayre, Director of the Enterprise Rent-A-Car Institute for Renewable Fuels, explained that oil based fuels, such as biodiesel, have many benefits. They boast twice the energy density of alcohol; oil producing plants have reduced impact on the environment; and algae based biodiesel can be produced on land not suitable for other uses and result in higher oil per acre than currently available.
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Funding Released for Alternative Fuel Vehicles

Energy Secretary Steven Chu says 25 cost-share projects have been selected to receive total funding of 300-million dollars under the Clean Cities program. These projects will speed the transformation of the nation’s vehicle fleet, putting more than 9-thousand alternative fuel and energy efficient vehicles on the road, and establishing 542 refueling locations across the country. The Department of Energy also estimates the projects will help displace approximately 38 million gallons of petroleum per year.

The vehicles and infrastructure being funded include the use of natural and renewable gas, propane, ethanol, biodiesel, electricity, and hybrid technologies. And with the cost share contributions from the recipients, every federal dollar spent will be matched by nearly two dollars from the project partners.

Under the Recovery Act, the Clean Cities program will fund a range of energy efficient and advanced vehicle technologies, such as hybrids, electric vehicles, plug-in electric hybrids, hydraulic hybrids and compressed natural gas vehicles, helping reduce petroleum consumption across the U.S.

NRCS Issues Estimated CSP Payment Ranges

USDA has issued an estimate of 12 to 22-dollars per acre of cropland and 7 to 14-dollars an acre of pastureland as the ranges that the Natural Resources Conservation Service might issue annually to those who contract to participate in the new Conservation Stewardship Program. CSP sign-up is open now through September 30th, with the program’s interim-final-rule public-comment period open until September 28th.

In a statement, NRCS says the payment ranges are based on projections about acreage enrollment and conservation performance, and are only intended as estimates.

To manage funding and meet legislative requirements, the agency says it will use enrollment data from the sign-up and the program’s first ranking period as a payment-discovery period to arrive at a uniform payment rate pre land-use conservation performance point. NRCS anticipates that discovery-period data will assist in determining set payment rates for future contracts.

The agency has posted several documents on its web site – nrcs-dot-usda-dot-gov - to explain CSP.

OMB Increases Costs for Food Stamp

The Office of Management and Budget has released the Mid-Session Review, updating the Administration’s economic forecast. The report shows a smaller 2009 deficit but larger out-year deficits than previously projected. The expectation is for a 262-billion dollar improvement in the projected 2009 deficit, now projected to be 1.58 trillion – or 11.2 percent of GDP.

Certain spending programs, such as unemployment insurance and food stamps are expected to increase and, at the same time, revenues are expected to decline. And, assuming the Waxman-Markey bill passes, the White House forecast assumes there will be at least 600 billion dollars in revenue over the next decade from polluters. They will have to buy credits under new climate change rules contained in the bill.

The OMB report sets public debt at more than 61 percent of the GDP by the end of next year. That would be the highest since 1952. And debt could reach 68 percent by the end of 2019.

Staples Disappointed With Dalhart Pork Plant Closure

A Smithfield Foods Inc. subsidiary will lay off 117 workers at it's Dalhart, Texas hog farm. The layoffs will begin by mid-October and fewer than 25 employees of the company's Premium Standard Farms LLC unit will continue to work at the site in Dallam County. The layoffs, effective Oct. 16, will be permanent.

In other Smithfield news, GE Capital said Monday that it had provided $150 million for Smithfield's previously announced $1 billion revolving credit facility. Smithfield Vice President Carey Dubois said GE "accounted for the largest portion of the... credit facility, helping provide Smithfield with the liquidity it needed." Smithfield announced last Friday that it had finished the sale of $225 million in senior secured notes. CEO C. Larry Pope said that would help "strengthen our balance sheet."

Texas Commissioner for Agriculture Todd Staples expressed disappointment with the news and said the pork industry has an $860 million impact with direct sales of $172 million. "Yes, pork producers are suffering today and much of that is due to the overall economic decline." He is outraged that media "professionals" continue to refer to H1N1 incorrectly as swine flu. He believes that this has led to the drop in prices and demand for the industry.

Staples introduced a resolution to other ag commissioners in the United States, as well as in Canada and Mexico, to urge politicians and media outlets to refer to the outbreak by it's correct name: H1N1. His comments can be heard below under GUEST INTERVIEWS for Wednesday August 26th, 2009.

Ag Secretary talks with All Ag, All Day

U.S. Secretary of Agriculture Tom Vilsack spoke with All Ag, All Day on Monday afternoon about the Obama Administration's proposed Climate Change legislation. Vilsack said he believes the analysis demonstrates the economic opportunity for farmers and ranchers can significantly outpace for climate legislation. In the short-term he said, the economic benefits will likely outweigh the costs and in the long-term they will easily trump the cost based upon the offset market set up in the measure approved by the House. Vilsack noted that producers should share in about $1 billion in net income over the first few years after implementation, with the potential of $20-$50 billion over "the course of time".

The Chicago Climate Exchange hosts a trading platform for carbon credits today, where credits are sold on a voluntary basis. One year ago the credits were trading in the neighborhood of $3.40 per ton, whereas today the market has dropped to under 30-cents per ton. When asked if USDA used this information in their calculations, Vilsack responded that it was not taken into consideration because it was not part of a national or international effort and was instead part of a voluntary effort. He also said that a realistic price for credits would be $15 to $16 per ton based upon a nationwide cap and trade system. With this being a mandatory system, a one billion tons of domestic offsets by law, the opportunities for agriculture are huge.

Vilsack also said at stake was more than the climate. Without the U.S. taking a lead in the climate change arena, international trade would be in jeopardy too, he said. He concluded by reminding those who oppose the legislation to remember the opportunity that will exist for rural communities to prosper under the plan.

Report Questions Atrazine Levels in Water

The Natural Resources Defense Council reports that drinking water containing the herbicide – atrazine - could pose a greater public health risk than previously thought because regular municipal monitoring doesn't detect frequent spikes in the chemical's levels. The NRDC says the missed spikes likely occur after rain and springtime application of the herbicide. Scientists with atrazine manufacturer Syngenta called the NRDC report - alarmist - and said the spikes fall within one- and 10-day limits that the EPA considers safe.

The NRDC reported documented spikes in atrazine in the water supplies of Midwestern and Southern towns in agricultural areas, where the herbicide is applied to the vast majority of corn, sorghum and sugar cane fields. Atrazine is an endocrine disrupter and can interfere with the body's hormonal activity and the development of reproductive organs. NRDC senior scientist Jennifer Sass says - our biggest concern is early-life-stage development. If there's a disruption during that time, it becomes hard-wired into the system. These endocrine disrupters act in the body at extremely low levels. Therefore, - these spikes matter.

Syngenta toxicologist Tim Pastoor says, - atrazine is one of the best studied, most thoroughly regulated molecules on the planet. He says, - those momentary spikes are not going to be injurious to human health. NRDC scientists and lawyers argue that the EPA's limits are too lenient, given studies showing the effects of low levels of atrazine on rats and other animals and the fact that it is nearly impossible to epidemiologically trace the chemical's effects on humans.

Animal Well-being Commission Formed

Leaders from academia and the beef industry are announcing the formation of an independent advisory group to focus on beef cattle health and well-being. The North American Food Animal Well-being Commission for Beef - which includes world-renowned experts in animal well-being—will advocate for increased research funding for animal well-being, facilitate the communication of research results in a more timely manner, advance best management practices in cattle health and welfare, and serve as an unbiased, science- and production- based group to address concerns about animal well-being.

Joseph Stookey, professor of applied ethology, Western College of Veterinary Medicine, University of Saskatchewan, will serve as co-chair of the commission. Stookey says - this as a very unique opportunity for all of us to serve the various segments of the beef industry, society and ultimately the animals, in a responsible, scientific and unified manner. According to Stookey, - this initiative has a tremendous amount of potential, and I'm excited to help lay the foundation for this important work.

The commission’s public outreach efforts will focus on a number of groups across all levels of the beef chain, including: farming and ranching organizations, consumer groups, beef harvesting companies, veterinary groups, food retail and restaurant groups, and animal welfare groups.

Chickpeas Have Brighter Future

Chickpeas, high in protein, fiber and other nutrients, are important legume crops the world over. But the crop suffers from the larval stage of the beet armyworm moth which likes to eat the crop's leaves. New lines of resistant chickpeas called “CRIL-7” have been developed by Agricultural Research Service scientists and their collaborators. Thid development could put the kibosh on this crop-damaging pest's voracious appetite, and potentially save on chemical insecticides used to fight it.

The "CRIL-7" chickpeas were conventionally bred from a cross between wild and cultivated species by a team of scientists from the ARS Plant Germplasm Introduction and Testing Research Station in Pullman, Washington; Washington State University's Department of Horticulture and Landscape Architecture; and the International Crops Research Institute for the Semi-Arid Tropics in India. In 2005, India led the world in chickpea production with 6.6 billion tons

in 2006-07 greenhouse trials, 28 to 62 percent of beet armyworms that fed on the leaves of resistant chickpeas died within a few days of hatching from eggs. The surviving worms were smaller and shorter than usual. The CRIL-7s outperformed commercial cultivars used for comparison of resistance, but still require agronomic testing under field conditions as the next step towards commercialization.

More Learned About Colony Collapse Disorder

Researchers say they now have the first hard evidence of what is happening physiologically inside bees during Colony Collapse Disorder. Using a tool called a genome-wide microarray, researchers at the Agricultural Research Service and University of Illinois found a large amount of abnormal ribosomal RNA (rRNA) fragments in the guts of honey bees in CCD colonies. Ribosomes are the cellular factories in which proteins are made. The fragments indicate the protein construction system is compromised and honey bees in colonies diagnosed with CCD had reduced ability to synthesize new proteins.

Entomologist May Berenbaum believes the loss of ribosomal function would explain many of the phenomena associated with CCD. Berenbaum adds, - if the bees' ribosomes are compromised, then they can't overcome exposure to pesticides, fungal infections or bacteria or inadequate nutrition because the ribosome is central to the survival of any organism.

Researchers say almost all CCD colonies tested had a higher level of picorna-like viruses, which attack the ribosome. Picorna-like viruses that attack honey bees include deformed wing virus and Israeli acute paralysis virus. The varroa mite, a major honey bee parasite, is known to transmit picorna-like viruses. Bees in CCD colonies did not show significantly active pesticide response genes.

Report Projects Reduced Domestic Fuel Production

The American Petroleum Industry has released a report on how implementation of the Waxman-Markey bill would affect domestic fuel production. The report projects that by 2030, U.S. refining production could drop 17% from today's levels if the climate bill is passed as currently proposed. The study says the drop would have to be made up by foreign imports, meaning the U.S. could end up relying on other countries for 19.4% of its refined fuel -- nearly twice the amount it imports today.

Average U.S. refinery output would drop to 12 million barrels a day in 2030 from about 14.5 million barrels a day currently, if nuclear power, technology to reduce carbon emissions and the use of international offsets fail to become widespread. Refinery utilization rates could drop to 63.4%, from about 83% today. The API-backed study concludes that if the U.S. puts a price on carbon emissions, domestic production would decrease as U.S. refiners deal with higher costs and lower demand for fuel.

Even beyond the recession, industry experts expect demand for gasoline to continue declining as vehicle mileage improves and new biofuels are developed. Last month, Valero Energy Corporation, the largest U.S. refiner by volume, posted a quarterly loss and analysts are expecting at least one refinery to shut down due to slackening demand. Without the restrictions of a Waxman-Markey bill, the study predicts U.S. production rates would grow to an average 16.4 million barrels a day in 2030.

CFTC Chairman Recommends Additions

The chairman of the Commodity Futures Trading Commission, Gary Gensler, has some changes he would like to see made in the Obama administration’s proposed changes in regulating the complex financial instruments blamed for hastening the global economic crisis. Gensler has urged changing the measure to eliminate exemptions from new requirements for foreign-currency swaps and small firms dealing in derivatives, among other things.

In a letter to committee leaders in the House and Senate, Gensler said the administration’s proposal will go a long way toward reducing risk and bolstering the transparency and integrity of the 600-trillion dollar derivatives market, But, - I believe the law must cover the entire marketplace without exception. As for foreign-currency swaps, Gensler said in his letter, - excluding foreign-currency swaps from the new restrictions as the White House bill proposes is overly broad and could enable dealers to structure other swaps transactions in a way to skirt regulation. He says - the administration and Congress have an historic opportunity to repair shortcomings in our regulatory system.

Study of Fertilizers Costs-Benefits Released

The Fertilizer Institute has released a report it hopes will influence the U.S. Senate as it considers climate change legislation. TFI President Ford West said, - we urge the Senate to review this report with an eye toward potential valuable job losses among the domestic fertilizer industry that could take place if, as we anticipate, climate change legislation leads to higher energy prices.

The study, conducted by Charles River Associates International, reveals that the U.S. fertilizer industry supports 244-thousand jobs and adds 57.8-billion dollars in value to the U.S. economy. The study also found that, in 2006, the fertilizer industry directly employed more than 24,800 people who produced fertilizers valued at 15.1-billion dollars. These jobs had an average annual compensation of 76-thousand dollars, which was almost 80 percent higher than the U.S. average compensation across all industries.

Fertilizer manufacturing is a trade and energy intensive industry and is uniquely sensitive to the price of natural gas, which is required to make nitrogen. The industry uses natural gas as a feedstock in a fixed chemical process that combines nitrogen from the air and hydrogen from the gas to produce nitrogen fertilizer, in a form that the plant can take up.

President Expects End of Year Immigration Legislation

As he wrapped up his trip to Guadalajara, Mexico, on Monday, President Obama seemingly put immigration on the back burner, saying – efforts to change the immigration system would have to wait until next year. He wants to focus on health care reform, energy legislation and financial regulatory changes. Still, the President indicated his administration will begin working on a comprehensive overhaul of the U.S. immigration system this year - but that no action on legislation will happen before 2010.

The President said there needs to be - a pathway to citizenship - for millions of illegal immigrants in the United States, and the system must be reworked to avoid tensions with Mexico. Without it, he said, Mexicans will keep crossing the border in dangerous ways and employers will continue exploiting workers. Mr. Obama believes, - we can create a system in which you have . . . an orderly process for people to come in, but we're also giving an opportunity for those who are already in the United States to be able to achieve a pathway to citizenship so that they don't have to live in the shadows. The President admits, - this is going to be difficult.

GAO: Food Prices Climb Four-Times Faster Than Crop Prices

The Government Accountability Office reports that supermarket prices for food have climbed by 128-percent since 1982. That’s four times the increase in crop prices for farmers. The GAO report found that during the time period - farmers have generally received higher monthly prices for their commodities - but these prices have increased less than food prices and inflation in the broader economy.

Tom Buis - CEO of Growth Energy - says last year the Grocery Manufacturers Association developed a multimillion dollar misinformation campaign to blame American farmers and ethanol producers for higher food prices. He says this is another study that shines the light of truth on the whole food-versus-fuel fiction that Big Food was peddling. Buis adds that whatever is driving up grocery prices won’t be found on the farm - and he says it merits further investigation by Congress.

Specifically - farmers saw prices for beef, pork, dairy, grains and other commodities increase by 34-percent from January 1982 to April 2009. For the same period - food prices rose by 128-percent and prices in the general economy rose 102-percent. The study was requested by Senators Herb Kohl of Wisconsin and Chuck Grassley of Iowa.

Farmland Values Drop

After going up for 21 consecutive years - farmland prices dropped this year. Experts say this trend is reflective of the recession. At the start of 2009 - the value of all land and buildings on farms averaged 21-hundred dollars an acre - down 3.2-percent from a year earlier. In its annual report - USDA said prices in Corn Belt states fell 2.2-percent to $3,620 an acre. In Montana - they plunged 22-percent to 700-dollars. In comparison - home prices in cities were down 19-percent last year and led to a 35-percent plunge in commercial values from an October 2007 peak.

The Department of Agriculture reported that Northeast states were the most expensive of the 10 regions in the lower 48 states with an average price of $4,830 an acre. The least-expensive area was the Mountain states at $922 an acre. Even after the declines - the value of U.S. farmland - excluding Alaska and Hawaii - was the second-highest on record - above the $2,010 mark of 2007.

Jeff Conrad at Hancock Agricultural Investment Group in Boston is optimistic. He sees farmland starting to pick up and judges it may return 10-percent a year as the recession eases. Conrad adds population, more Western-style diets and land availability all point toward more growth.

Jason Henderson - a Vice President with the Federal Reserve Bank of Kansas City - says rural property values fell less than city prices because farmers’ debt loads are the lowest in the last 50 years. USDA forecasts the ratio of debt to assets will be 9.1-percent this year - less than half the levels seen at the peak of the 1980s farm crisis.

Recent Study Shows Benefits of Cellulosic E85

WorldAutoSteel released a study Tuesday that shows cellulosic E85 is the best fuel to reduce greenhouse gas emissions compared to other alternatives like hybrid technology or fuel cells. Growth Energy CEO Tom Buis says the report reinforces the promise of ethanol as the cleanest, greenest fuel for cars. Unfortunately - he notes - a government cap on the amount of ethanol that can be blended with gasoline is stifling second-generation biofuel development and commercialization. He says that needs to be increased.

Buis adds automakers need to manufacture more flex-fuel vehicles so they can utilize higher blends of ethanol. He says these common sense solutions can speed the introduction of cellulosic ethanol to the marketplace while creating green collar jobs and reducing the nation’s dependence on foreign oil.

Farm Safety Net Not in Jeopardy

North Dakota Senator Kent Conrad told those attending the 26th International Sweetener Symposium in Park City, Utah, that the farm safety net was not a problem in setting federal spending. The Chairman of the Budget Committee said the 2008 Farm Bill already included steep cuts for agriculture. Plus - he said agriculture is not the big problem.

Instead - he suggests the problem areas include Social Security, healthcare and inadequate revenue collection. Conrad said agriculture would be in good shape during future negotiations. Conrad also said targeting sweetened soft drinks to help raise funds to pay for healthcare reform is now unlikely. The vast majority of soft drinks are sweetened with high fructose corn syrup, not sugar. Sugar producers oppose the proposed soda tax because, as the American Sugar Alliance put it, - such a tax would penalize our colleagues in the corn farming business and wrongly demonizes sweetened products.

Food Safety Bill Passes House

The U.S. House of Representatives passed sweeping changes to the nation's food safety system late Thursday afternoon by a vote of 283-142. The vote came one day after Rep. Frank Lucas (R-OK), Ranking Member on the House Ag Committee, led a charge to defeat the measure. Wednesday afternoon, H.R. 2479, the Food Safety Enhancement act of 2009, failed to win passage by the U.S. House of Representatives. The legislation will increase funding and give more authority to the Food and Drug Administration to police food safety. The vote Wednesday was 280 to 150. A two-thirds super majority was necessary for passage.

Under the legislation, the FDA will be able to order food recalls; require the agency to inspect food facilities more often; and would give FDA authority to set production and record-keeping standards to prevent contamination and more easily trace outbreaks. Food facilities would be required to register and pay an annual 500 dollar fee.

Before the vote, Representative Frank Lucas of Oklahoma said the bill would – lead to huge regulatory burdens on our nation’s farmers and ranchers and it would contribute little to the goal of safer food. He offered an amendment to force half of the funds collected by FDA to be invested in inspections.

The Senate is expected to wait until fall to consider similar legislation. That is when Representative Louise Slaughter will begin to push her antibiotics legislation in the House.

Legislation Would Encourage Local Wind Investments

Legislation has been introduced that would make it easier for farms and small-business owners to invest in wind energy. The Wind Energy Promotion Act - introduced by House Agriculture Committee Chairman Collin Peterson and fellow Minnesota Representative Tim Walz - would expand the eligibility of those who can receive benefits from the Renewable Energy Production Tax Credit. This legislation would not limit the ability of the current beneficiaries of the PTCs to continue receiving them.

PTCs are only useful to corporations and to individuals with large amounts of taxable investment income. As a result - most wind energy investments today are made by foreign multi-national companies and not by groups of Americans who want to join together to produce renewable energy.

The Wind Energy Promotion Act would amend the tax code to allow up to 40-thousand dollars of the PTC to be used against ordinary income. This passive loss exemption is similar to a 25-thousand dollar passive loss exemption that currently exists to encourage investments in oil and gas development and real estate.

U.S. Sorghum Again Going to Mexico

Once a robust market for U.S. sorghum - the U.S. Grains Council says Mexico is back. During the past three months - Mexico has purchased 22-million dollars worth of U.S. sorghum. U.S. Grains Council Senior Director Chris Corry says these sales would not have happened without the investments of Council members.

Starting in April - special funding from the Council’s sorghum members allowed a series of teams of Mexican importers and buyers to travel to the United States for a firsthand look at U.S. sorghum production and transportation. That opened the door - and since then 89-thousand tons of U.S. sorghum has been shipped to Yucatan, Mexico. And the purchase of another 31-thousand tons could be made through November.

Arturo Basulto - purchasing manager for feed grains and oilseeds at Inter Industrial in Yucatan - says the Council has provided the connections to grain farmers, agribusiness representatives and the field specialists needed to improve our operations. Basulto adds that this information and assistance is not always available.

Research Betters Ethanol Production

Agricultural Research Service scientists have developed a new yeast that makes ethanol from both five-carbon and six-carbon sugars without needing oxygen. ARS molecular biologist Stephen Hughes developed the strain to grow on xylose - a five-carbon plant sugar. Hughes works at the ARS National Center for Agricultural Utilization Research in Peoria, Illinois.

Producers already make grain ethanol by using yeast to ferment six-carbon plant sugars like glucose. But cost-effective production of cellulosic ethanol will require using both six-carbon and five-carbon sugars in the process. The importance of this research is that in industrial ethanol production - it's difficult to control oxygen levels as yeasts ferment sugars into ethanol. The new yeast strain would help alleviate this problem.

The process makes available glucose that might have been otherwise used by the yeast to grow and reproduce is now available for fermentation - and the rate of ethanol conversion increases.

Senators Question Livestock Indemnity Program

A coalition of eight U.S. Senators have signed a letter to Secretary of Agriculture Tom Vilsack in which they question if several new rules of the Livestock Indemnity Program will actually help farmers and ranchers if their herds incur losses from harsh weather. The letter was sent by Senators Chuck Grassley, Tom Harkin, Mike Johanns, Ben Nelson, Pat Roberts, Sam Brownback, Tim Johnson and John Thune.

The Senators specifically addressed the need to come up with a more precise methodology to calculate death losses for non-adult beef animals and the necessity to set a payment rate utilizing values corresponding to the time when the livestock were lost - such as monthly or quarterly price points.

Cheatgrass Good at Reproduction

Cheatgrass is a real problem. Especially in the vast rangelands of the American West. Cheatgrass is a weedy invader that looks something like a scraggly wheat plant. This fast-growing intruder crowds out native plants that cattle or wildlife could otherwise eat. And, because it burns hot and fast, cheatgrass boosts the wildfire hazard.

ARS researchers at the Exotic and Invasive Weeds Research Unit in Reno, Nevada have been looking at how the plant fertilizes, or pollinates, its tiny flowers. The scientists found that, contrary to the generally held opinion, cheatgrass is exclusively self-pollinating.

Cross-pollination is a plus for cheatgrass and here’s why. The exchange of pollen among individual cheatgrass plants can yield offspring with a genetic base that's broader, or more diverse, than that of either of the parents. A broader genetic base may give the new generations a greater ability to adapt to a wider range of environments and stresses than plants that only self-pollinate.

Turning Feather Meal Into Biodiesel

Scientists continue to prove that you can turn almost anything into an energy source. Researchers at the University of Nevada in Reno have developed a new and environmentally friendly process for developing biodiesel from commercial feather meal. Based on the amount of feather meal produced by the poultry industry, it is estimated the process could create up to 200 million gallons of biodiesel in the United States annually and 593.2 million gallons annually worldwide.

The process extracts fat by boiling feather meal and then transesterifing the fat into biodiesel using potassium hydroxide and methanol. The Researchers, Mano Misra and Susanta Mohapatra, say analysis confirms the biodiesel - is of good quality and comparable to other biodiesels made from other common feedstocks.

Administration Backs Brazil Tariff

The riff over the Administration’s stance on the tariff on Brazilian ethanol may have come to an end. In a statement, the Obama administration says it has no plans to change the current policy. The policy came into question when Thomas Shannon, the President’s nominee for Ambassador to Brazil, called removal of the tariff - beneficial. The Administration says - it has no plans to change it. The Obama Administration says it is - committed - to developing our domestic biofuels industry and to help the international market for biofuels grow.

The CEO of Growth Energy applauded the Administration for reinforcing its commitment to homegrown ethanol. Growth Energy CEO Tom Buis said - keeping the tariff on Brazilian ethanol will ensure the development of a domestic renewable fuel industry, which creates green collar jobs, reduces our dependence on foreign oil, strengthens our national security, and improves the environment.

WASDE Report Released

The monthly World Agriculture Supply and Demand Estimates report has been released by the U.S. Department of Agriculture and its’ World Agriculture Outlook Board. The report utilized information from the National Agricultural Statistics Service.


*WHEAT*

The Department raised U.S. wheat supplies for 2009/10 as higher area and yields add 96 million bushels to forecast production. Feed and residual use is raised 10 million bushels. Exports are projected 25 million bushels higher with smaller crops in major exporting countries. The ending stocks projection is raised 59 million bushels. The first 2009/10 by-class wheat supply and demand projections indicate larger supplies of hard red spring, white, and durum wheat and lower supplies of hard red winter and soft red winter wheat from year-ago levels. The 2009/10 marketing-year average farm price is projected at $4.80 to $5.80 per bushel, down 10 cents on both ends of the range.

Global wheat supplies for 2009/10 are projected lower this month as a 1.0-million-ton beginning stocks reduction more than offsets a 0.4-million-ton production increase.


*COARSE GRAINS*

U.S. feed grain supplies for 2009/10 are projected by USDA to be higher this month. Corn supplies are projected at 14.1 million bushels, up 335 million bushels from 2008/09. Feed and residual use for 2009/10 is raised 50 million bushels as increased supplies and lower prices are expected to boost feeding demand. Exports are raised 50 million bushels and ending stocks are projected at 1.6 million bushels. The 2009/10 marketing-year average farm price for corn is projected at $3.35 to $4.15 per bushel, down 55 cents on both ends of the range.

Global coarse grain supplies for 2009/10 are projected 13.0 million tons higher this month mostly reflecting higher corn beginning stocks and production in the United States. World coarse grain imports and exports are both projected slightly higher for 2009/10.


*RICE*

U.S. total rice supplies for 2009/10 are projected at 253.7 million cwt, down 4 percent from last month. U.S. rice production is projected at 211.0 million cwt, 4 percent below last month, but 4 percent above 2008/09. Long-grain rice production is projected at 151.0 million cwt, about 11 percent below last month; while, combined medium- and short-grain rice production is projected at 60.0 million cwt, nearly 18 percent above last month. Beginning stocks for 2009/10 are lowered nearly 7 percent, while imports are lowered about 5 percent.

The 2009/10 season-average farm price range is raised $2.75 cents per cwt on each end to $13.25 to $14.25 per cwt compared to a revised $16.05 per cwt for 2008/09. The long-grain season-average farm price range for 2009/10 is increased $2.50 per cwt on each end to $12.00 to $13.00 per cwt compared to a revised $14.85 per cwt in 2008/09. The combined medium- and short-grain farm price range is increased $4.00 per cwt to $19.50 to $20.50 per cwt compared to a revised $21.50 per cwt in 2008/09.

Global 2009/10 rice supply and use are little changed from last month’s projections.



*OILSEEDS*

U.S. oilseed ending stocks for 2009/10 are projected at 8 million tons, up 1.1 million from last month. Higher soybean stocks account for most of the increase. Oilseed production is projected at 96.3 million tons, up 1.8 million tons, with increased

soybean production accounting for most of the change. The U.S. season-average soybean price for 2009/10 is projected at $8.30 to $10.30 per bushel, down 70 cents on both ends of the range. Soybean meal prices are projected at $255 to $315 per short ton, down 20 dollars on both ends. Soybean oil prices are projected at 31 to 35 cents per pound, down 2 cents on both ends of the range.


*SUGAR*

Projected 2009/10 U.S. sugar supply is decreased 100,000 short tons, raw value, from last month. Beginning stocks are lowered 100,000 tons. imports from Mexico are increased 150,000 tons while imports under the tariff rate quota are decreased 40,000 tons. Sugar use is increased 100,000 tons to reflect the refined portion of the increase in imports from Mexico.


*LIVESTOCK, POULTRY, AND DAIRY*

Total U.S. meat production for 2009 is reduced as lower beef output more than offsets higher pork and poultry production. The Cattle report, to be released on July 24, will provide an indication of breeding herd retention and the number of cattle outside feedlots. Meat production for 2010 is raised as higher pork and broiler production outweigh slightly lower beef production.

Turkey export forecasts for 2009 and 2010 are reduced largely because of expected lower shipments to Mexico. Export forecasts of other meats are unchanged. Price forecasts for 2009 are lowered for hogs, generally reflecting a higher production forecast. Cattle and broiler forecasts are unchanged. Egg prices in 2009 are forecast lower on softer demand.

For 2010, higher forecast pork production is expected to weigh on supplies and price forecasts are reduced. Prices for cattle and broilers are unchanged. Egg price forecasts are reduced as the current market weakness is expected to carry into 2010.

The milk production forecast is raised fractionally for 2009 as the reduction in cow numbers is slightly slower than expected. Milk production for 2010 is unchanged. Imports for 2009 on a skim-solids basis are forecast lower; the commercial export forecast is unchanged from last month. For 2009 and 2010, Class III prices are reduced as lower cheese price forecasts more than offset higher whey prices. The Class IV price forecast is reduced in line with lower butter and NDM prices in both 2009 and 2010. The all milk price is forecast at $11.85 to $12.15 per cwt for 2009 and $14.85 to $15.85 for 2010.


*COTTON*

The U.S. cotton supply and demand estimates for 2009/10 show lower beginning stocks offset by lower exports, leaving ending stocks unchanged from last month at 5.6 million bales. Production is estimated at 13.25 million bales, the same as last month. Domestic mill use also is unchanged, but exports are reduced 600,000 bales to 10.2 million due to lower U.S. supplies and reduced foreign import demand. The forecast range of 48 to 60 cents per pound for the marketing-year average farm price is the same as last month.

A combination of higher beginning stocks and lower consumption are raising this month’s projected world 2009/10 cotton ending stocks by about 2 percent.

Second Dairy Buyout Set

Cooperatives Working Together has announced details of its second herd reduction program this year aimed at reducing milk production and boosting prices. CWT spokesman Jim Tillison says the organization will – accept as many bids as we can get - at 5.25 per hundredweight or below. The reduction is limited to the program’s available budget, which has not been announced. The deadline for bids is July 24th.

The first herd reduction was the largest dairy herd retirement program ever conducted. 101,040 cows were removed from production in 41 states. Those cows produced almost two billion pounds of milk.

Jerry Kozak, chief executive of the National Milk Producers Federation said this second offering should - give us a double-barreled attack on milk production - in a very short period of time. He expects recovery of the farm level price several months sooner than would otherwise occur. The federation manages Cooperatives Working Together.

Development of New Plan to Catch Illegal Workers Underway

Last Wednesday - Homeland Security Secretary Janet Napolitano announced that starting in September - President Obama will require federal contractors to confirm the identities of four-million workers against federal databases. As for the 2007 rule that would have sent Social Security no-match letters to 140-thousand employers - warning them to fix discrepancies or fire suspect workers within 90 days to avoid facing criminal penalties - Napolitano says the department will overturn it. Analysts say this is the clearest sign of Obama’s efforts to plan a middle course on immigration enforcement so far.

Napolitano said the department will take a new, more modern and effective approach - requiring nearly 170-thousand federal contractors to confirm immigration and Social Security data of new hires through E-Verify. Alabama Senator Jeff Sessions says making the government system permanent and mandatory for federal contractors would be a big step toward meeting the public’s expectations. But Spokesman for the U.S. Chamber of Commerce Angelo Amador said business groups are going to fight the contractor requirement in federal court because they don’t think Congress ever intended to make participation in the worker verification program mandatory.

Another viewpoint comes from New York Senator Charles Schumer. He doesn’t think E-Verify goes far enough - and has proposed using a verification system based on fingerprints, eye scans and other unique identifiers of workers.

Ag Secretary Names FSA Administrator

Secretary of Agriculture Tom Vilsack announced Jonathan Coppess Thursday as Administrator for the Farm Service Agency. Coppess previously worked for U.S. Senator Ben Nelson as his Legislative Assistant for Agriculture, Energy and Environmental policy. Secretary Vilsack says Coppess brings a wealth of agricultural policy experience to USDA’s leadership team - and his farm background will be invaluable as President Obama and Vilsack work to assure the soundness of the safety net for American farmers and ranchers. Coppess will replace Doug Caruso who just stepped down after a short two months on the job.

Johanns Wants to Investigate Costs of Cap and Trade

Former Agriculture Secretary Mike Johanns says farmers deserve answers on the costs of cap and trade. The Nebraska GOP Senator says farmers and ranchers across the country are concerned about how the House cap and trade bill will impact them. He says Ag Secretary Tom Vilsack should provide the Senate and America's farmers with an answer to one simple question - how much does USDA estimate America's ag producers will pay under the House bill? Johanns has called for a Senate Ag Committee hearing where Vilsack can provide the answer.

Senator Johanns notes the administration has wholeheartedly endorsed the House bill - though farm group after farm group has opposed the legislation. Johanns questions how Vilsack is serving his primary mission of supporting U.S. agriculture if he doesn't know the impact of the bill on the producers he's taken an oath to serve.

Johanns has written Senate Ag Chair Tom Harkin and Ranking Member Saxby Chambliss to request that the committee investigate and analyze the economic impact of cap and trade legislation on farmers and ranchers.

New Livestock Indemnity Program Begins

Agriculture Secretary Tom Vilsack has announced details of a new livestock Indemnity Program which will provide livestock producers with a vital safety net to help them overcome the damaging financial impact of natural disaster. Ranchers and livestock producers can begin applying for benefits under the provisions of the Livestock Indemnity Program in the 2008 Farm Bill.

Using funds from the Agricultural Disaster Relief Trust Fund established under section 902 of the Trade Act of 1974, the program is administered by the USDA Farm Service Agency. LIP compensates livestock owners and contract growers for livestock death losses in excess of normal mortality due to adverse weather, including losses due to hurricanes, floods, blizzards, disease, wildfires, extreme heat and extreme cold. Eligible losses must have occurred on or after January 1, 2008, and before October 1, 2011.

Specific provisions for the other supplemental agricultural disaster assistance programs authorized by the 2008 Act will be implemented through separate rulemaking and announced at a later date.

EU to Place Anti-Dumping Duties on U.S. Biodiesel

The European Commission is proposing to impose anti-dumping duties on U.S. biodiesel imports. The proposal has been adopted by the 27-country bloc's finance ministers at a meeting in Brussels. The Commission suspects U.S. biodiesel is heavily subsidized. The duties will come into force by July 12 and range from 23 Euros to 41 Euros per 100 kilograms or about 160 pounds. The duties would last for up to five years.

The stakes are high as biodiesel represents around 80 percent of the total production in Europe of biofuels, which have become an important pillar of the EU's efforts to fight global warming. While both the United States and the EU support the use of biofuels, the group claims that US biodiesel is being sold at below US producers' costs thanks to generous subsidies.

In response, Manning Feraci, Vice President of Federal Affairs for the National Biodiesel Board, called the move - an unfortunate decision. Feraci insists - we have constantly put data on the record that clearly shows the European biodiesel industry was not being harmed by U.S. competition. In fact, he added, some EU companies have fared quite well. He blamed factors outside U.S. control for problems within the EU biodiesel industry.

Sorghum Research Funding Secured

New funding secured by Kansas Senator Sam Brownback in appropriations legislation will provide new breakthroughs in sorghum research that will deliver better supply and demand modeling, new uses and agronomic solutions to producers' fields. That's according to National Sorghum Producers Board member Ken Georg. He says the one-million dollars in funding secured for the Great Plains Sorghum Improvement and Utilization Initiative is a huge victory for the nation's sorghum producers.

Kansas State University, Texas Tech University and Texas A&M University will use the funding to work on plant breeding and genetic improvement, new uses, economics, education, plant stress and agronomic issues like water use and weed control.

World Fertilizer Outlook Released

In its Fertilizer Outlook for 2009 through 2013, the International Fertilizer Industry Association suggests that, after the sudden fall in demand during the 2008/2009 fertilizer campaign, a rebound may be expected for the following year. IFA believes the improvement will be realized because of - stable growth trends that have been experienced so far in the agricultural sector. Agricultural commodity prices are expected to remain attractive, thus encouraging farmers to increase crop production.

In its baseline scenario, IFA estimates that the economic crisis can be translated in one to three years of lost growth in fertilizer demand. Nevertheless, a gradual rebound might be felt as early as in the next six months. For the 2009/10 campaign, a growth of 3.6%, representing 165.4 million tons of nutrients, is envisioned. In 2013/14, a growth rate of 2.3% per annum could be anticipated, representing up to 187 Million tons of nutrients by the end of that period.

IFA also forecasts a potential fertilizer supply surplus for the years to come. In the short term, the depressed demand for fertilizer and, in the long run, new projects coming into production in several countries are the main factors supporting the potential surplus argument, in particular in the potash and phosphate sectors. The report doesn’t address pricing.

Dairy Export Incentives Announced

Agriculture Secretary Tom Vilsack has announced initial allocations under USDA's Dairy Export Incentive Program for the year beginning July 1, 2009. The program helps U.S. dairy exporters meet prevailing world prices and encourages the development of international export markets in areas where U.S. dairy products are not competitive due to subsidized dairy products from other countries.

Under U.S. World Trade Organization commitments, USDA is allowed to provide bonuses for dairy products on a yearly basis of 68,201 metric tons of nonfat dry milk; 21,097 metric tons of butterfat; 3,030 metric tons of various cheeses, and 34 metric tons of other dairy products. The balances being made available through the new Invitations for Offers will count against the 2009-2010 U.S. WTO commitment levels.

In making the announcement Ag Secretary Tom Vilsack pointed an accusing finger at the European Union when he stated - it appears our international markets continue to erode and the European Union has shown no indication that it will refrain from providing dairy export subsidies. The Secretary pledged - we will continue to use this program in a responsible manner in support of U.S. dairy farmers.

National Corn Yield Contest Deadline Ahead

The National Corn Growers Association’s popular National Corn Yield Contest is underway. The final deadline for entries is August 1.

State and national corn yield contest winners will receive national recognition in publications, such as the NCYC Corn Yield Guide and at the National Awards Banquet and State Awards Breakfast at the 2010 Commodity Classic in Anaheim, Californina. More importantly, growers experience the challenge and satisfaction of learning production techniques that will enhance their corn yields.

NCGA utilizes the wealth of information from the contest to study production trends. Growers’ information is used by NCGA and others to statistically demonstrate the production efficiencies of corn growers and their dedication to soil and nutrient conservation.

Michigan Legislators Pushing for Livestock Standards

Lawmakers in Ohio aren’t the only ones taking a proactive approach to livestock care standards. Michigan State Representatives Mike Simpson and Jeff Mayes introduced a group of bills last month to standardize livestock care requirements by establishing the Department of Agriculture and Agriculture Commission as the sole authority in regulation of livestock health; implementing science-based standards farmers must use by 2020 and more. Two State Senators have introduced identical bills. They were referred to the Senate Ag and Bioeconomy Committee.

Representative Mayes said these new standards will ensure people think of quality products when they think of Michigan agriculture - but certain animal rights organizations - like Farm Sanctuary - feel they would be harmful to livestock for many reasons. Farm Sanctuary Director of Legal Campaigns Delcianna Winders says the legislation would create a council dominated by the agricultural industry and codify the procedures that Farm Sanctuary believes are inhumane.

Winders says Farm Sanctuary will probably work with the Humane Society of the United States to reach out to people to oppose it. But that could be a challenge since the legislation has the support of more than 15 ag organizations - including Michigan Farm Bureau. Michigan Farm Bureau President Wayne Wood says these bills provide a balanced approach that is good for animals, people, rural communities and the state of Michigan.

EPA Approves California’s Long-Requested Pollution Rule Waiver

The Environmental Protection Agency gave California permission Tuesday to pursue more stringent air pollution rules than required by the federal government - clearing the way to implement a state pollution law requiring new cars to increase their fuel economy to 35.5 miles per gallon by 2016 - which is what President Obama would like to see happen. Governors and officials from many states ready to adopt California’s standard - such as New York, Arizona, Connecticut and Maine - welcome this development.

California has been trying to implement the law for five years - but was denied by the Bush administration. This decision is seen as something that will set the stage for tougher national vehicle fuel economy requirements President Obama promised in May. EPA Administrator Lisa Jackson says the decision reinforces the historic agreement on nationwide emission standards announced by Obama.

President of the Alliance of Automobile Manufacturers Dave McCurdy says the group is hopeful this waiver won’t undermine the efforts put forth to create a national program. California Senator Barbara Boxer says this decision is putting science and the law back into the driver’s seat rather than politics and special interests.

CSP Signup Expected Soon

The Chief of the Natural Resources Conservation Service says USDA has nearly completed work on the economic analysis and rules for the new Conservation Stewardship Program. According to Dave White - USDA plans to deliver proposed rules to the Office of Management and Budget yet this week. He’s hopeful sign up for fiscal ’09 will begin in August or September - with field verification done in September and contracts offered in October.

According to White - the minimum requirement for the new CSP is meeting one resource of concerns on the entire operation. An example is meeting soil erosion on an entire farm. The states will determine what the resources of concern are - so while air quality might be a resource of concern in California - it might not be in Alaska. White says a producer also must be willing to meet one additional priority resource of concern within the five-year contract.

The new Conservation Stewardship Program can enroll 12.7-million acres each year from 2009 to 2012 at a national average of 18-dollars per acre. But White says USDA won’t know what the reimbursement per acre will be until they’ve had the first sign up. Future sign ups will offer a fixed national price per acre for each type of land based on that first sign up.

Study Shows Spraying Herbicides on Invasive Weeds Not Necessarily Good Idea

Rangeland Ecologist Matt Rinella at the Agricultural Research Service Lab in Miles City, Montana has conducted a 16-year study that shows it may not always help for ranchers to use herbicides to kill invasive weeds like leafy spurge. In fact - it may actually cause the weeds to increase. Even though the herbicide would have dissipated within a few years - it seemed to have long-term effects and caused a plant community shift.

The plots in the study were either grazed and sprayed, grazed but not sprayed, not grazed but sprayed or not grazed and not sprayed. Cattle grazing helped maintain native plant numbers when herbicide was sprayed. Since cattle grazing can help native forbs thrive - most native forbs did well with or without cattle grazing when herbicide wasn’t used. This study suggests that applying herbicides over large areas of land with herbicide-sensitive plants isn’t always the best thing to do.

Climate Bill’s Progress Delights Obama - Not Its Tariffs

Though President Obama said Sunday that the House took an extraordinary first step by passing a climate bill on Friday - he’s hopeful Congress will remove a clause that would impose a tariff in 2020 on imports from countries without systems for pricing or limiting carbon dioxide emissions. Obama says the nation has to be very careful about sending protectionist signals right now - when the economy is still deep in recession. He believes there are other ways of making sure there’s a level playing field internationally.

The bill passed in the House with a vote of 219 to 212 - but could face a more difficult challenge in the Senate where concerns about its effect on the economic recovery are strong. Without Republican support - the votes of all 58 Democrats and two independents are needed to bring the bill to a vote. President Obama has asked Senators to disregard what he calls misinformation offered by critics of the bill. Obama said the misinformation suggests there’s a contradiction between investing in clean energy and economic growth - which just isn’t true.

Missouri Senator Claire McCaskill said she hopes leaders can fix cap and trade so it doesn’t unfairly punish businesses and families in coal dependent states like Missouri. Obama said he has broad criteria the House bill meets. He knows there will be provisions in the House and Senate bills that he questions as to their effectiveness - so he will take a look at the final product and embrace the bill - if it meets those broad criteria.

Graves Proposes Bill for Accelerating Energy Projects; Calls For Less Bureaucracy

Congressman Sam Graves of Missouri has reintroduced legislation to streamline the approval process for energy related projects - including ethanol plants and wind farms - that would increase the nation’s domestic energy supply, create jobs and help alleviate the high energy prices people are facing. The legislation would require federal agencies to expedite their review of permits and take other actions necessary to speed up the completion of energy related projects. The bill also establishes an inter-agency task force to monitor and assist federal, state and local agencies in their efforts.

Graves said the country hasn’t built a new refinery in over 20 years because bureaucratic red tape has delayed production of the energy needed. He says this bill will simplify the process - while not changing current environmental laws. Graves says the bill is a step in the right direction - but is only part of the solution to reducing prices at the pump and weaning consumers off of foreign oil. He says it’s important to pass common sense legislation that makes the nation more energy independent and creates jobs.

The legislation - H.R. 3005 - has been referred to the Committee on Energy and Commerce.

ARS Scientists Conducting Research on Deadly Cattle Disease

New research from USDA Ag Research Service scientists focuses on the relationship between compounds and a disease that affects grazing animals and costs the cattle industry nearly 600-million dollars a year. Tall fescue - a main forage grass in many states - can cause Fescue Toxicosis in cattle if it’s infected with endophytic fungus. The disease causes lameness and reduces production efficiency - and can also be fatal if infected animals are in stressful situations like extreme heat or long-distance transport.

Scientists believe symptoms of toxicosis are caused by ergot alkaloids. One sign of the disease is a narrowing of blood vessels. Three alkaloids have been tested - and one - ergovaline - was most effective at making veins contract. More research is underway to figure out how these compounds influence other tissues, organs and physiological systems. Information from this research could help scientists determine which compounds are most toxic and how to protect cattle from them.

R-CALF USA Calls for National Disease Strategy, Not NAIS

R-CALF USA recently sent a letter to the Chairwoman of the House Appropriations Subcommittee on Agriculture Rosa DeLauro expressing its appreciation for her decision to hold back further funding for the National Animal Identification System until USDA finishes its listening sessions. R-CALF USA states in its letter that the U.S. needs to create a national strategy to improve livestock disease prevention, control and eradication instead of implementing NAIS.

According to the letter - the NAIS proposal tramples over the rights and privileges of U.S. family farmers and ranchers - and the program isn’t an effective vehicle to achieve animal health and livestock market benefits. Along with saying ‘no’ to NAIS - R-CALF says farmers and ranchers across the country have said at listening sessions that USDA is inviting the introduction of diseases into the U.S. R-CALF President Max Thornsberry says it’s unconscionable that USDA is knowingly introducing dangerous diseases - they cite BSE from Canada and TB from Mexico - while blaming livestock producers for not cooperating with its failed NAIS program.

R-CALF CEO Bill Bullard says DeLauro has been informed of an eight-point plan that should be the starting point for the creation of a national disease strategy that will better protect the health of the nation’s livestock and the safety of meat produced from the livestock. Bullard says R-CALF is hopeful USDA will redirect its resources to begin development of a national disease prevention strategy.

House Passes Historic Climate Change Legislation

The U.S. House of Representatives passed sweeping Global Climate Change legislation late on Friday afternoon by a vote of 219-212.

The National Farmers Union was behind the package’s passage. NFU President Roger Johnson said a strong offset program and the recognition of early actors will ensure America’s farmers and ranchers can be a part of the climate change solution. But the American Farm Bureau Federation sent a letter to each member of the House Thursday - stating the bill would unquestionably impose enormous costs on the American economy - including agriculture.

But according to a Farm Bureau economic analysis net farm income will decline by five-billion dollars a year by the year 2020 at a minimum. AFBF President Bob Stallman said those estimates don’t begin to tell the story of what will happen when the program mandated by this legislation fully takes hold.

Farm Bureau is concerned because they believe the bill would result in a net economic cost to farmers with little or no environmental benefit. In addition - the group says it creates an energy deficit for the United States by curtailing the use of fossil fuels without supplying any realistic alternative to make up the lost energy.

Farm Bureau Says It’s Time to Implement Farm Bill

Representatives for the American Farm Bureau Federation, National Corn Growers Association, National Cotton Council, National Association of Wheat Growers and National Farmers Union all testified before a House Ag Subcommittee Wednesday to review the implementation of the 2008 Farm Bill. Farm Bureau President Bob Stallman told lawmakers it’s time to implement the bill and outlined several components of the bill that need quick action - including disaster assistance, payment eligibility and the collaboration between the IRS and USDA. He said the farm bill touches the lives of every U.S. producer - and Farm Bureau wants to ensure their best interests are of paramount importance during the implementation process.

Stallman noted many farmers faced major disasters in 2008 - yet there are still no rules for the disaster program or a target date for when producers will receive assistance. He told the General Farm Commodities and Risk Management subcommittee these rules need to be released so those farmers who had their operations devastated can receive help.

Regarding payment eligibility - Stallman expressed that the rule put forward in late December needs to be fixed by 2010. While USDA is making progress - he said delays have left a great deal of uncertainty in the countryside this planting season. And when it comes to collaboration between the IRS and USDA - Stallman said Farm Bureau will be watching closely - noting any proposal allowing IRS information to become public through the Freedom of Information Act is unacceptable to the group.

Ohio Lawmakers Back Constitutional Amendment on Animal Care

A proposed state constitutional amendment in Ohio is directed at the ballot initiative put forth in that state by the Humane Society of the United States. The amendment would establish a 13-member Livestock Care Standards Board. The board would be charged with developing and enforcing guidelines for livestock and poultry care. Joint resolutions proposed late last week in the House and Senate - if passed - would get the amendment before voters on November 3rd.

Ohio Governor Ted Strickland and legislators from both parties and representatives of animal agriculture support the amendment. However - the Humane Society of the United States says the amendment would thwart meaningful reform in the housing of farm animals. Paul Shapiro of HSUS says this is a constitutional power grab on behalf of big agribusiness.

Keith Stimpert of the Ohio Farm Bureau points out that the proposed animal care board would pull together the best expertise and operate in full public view. The Ohio Farmers Union expressed concern about creating a new board - citing another level of bureaucracy - and potentially a need for more funding at a time of severe state budget cuts.

The council would include three family farmers, two veterinarians, a food safety expert, a representative of a local humane society, two members from statewide farm organizations, the dean of an Ohio agriculture college and two members representing Ohio consumers. The director of the Ohio Department of Agriculture would serve ex-officio as a 13th member.

Senator Tester’s Request to Reconsider FMD Lab Relocation Greatly Appreciated

The Department of Homeland Security made a last-minute decision to uproot its Plum Island foot-and-mouth disease research facility off the coast of New York and move it to Manhattan, Kansas on January 12th. The Department asked for public comments on its proposal - but made its decision before the public comment period had closed. And when the Senate Committee on Homeland Security and Governmental Affairs considered President Obama’s nomination for Under Secretary for the Science and Technology Directorate last week - Montana Senator Jon Tester urged O’Toole to direct the department to reconsider its decision.

R-CALF USA President Max Thornsberry said the decision hasn’t been implemented yet and work is being done to encourage the Senate to take steps to reverse this decision before the health of the nation’s cattle is put at risk. Thornsberry says those who oppose the move are thankful Senator Tester has taken an important step to reverse this decision and are hopeful his actions will cause the new administration to act appropriately without need for congressional action.

Study Shows Excessive Speculation in Wheat

A year-long bipartisan Senate probe shows excessive speculation in the wheat market helped fuel last year's record jump in prices. According to the report - large wheat purchase on the Chicago Board of Trade drove future prices higher, disrupted convergence between futures and cash prices and increased costs for farmers, the grain industry and consumers. The study was released by Carl Levin - Chairman of the Senate Permanent Subcommittee on Investigations - and Ranking Member Tom Coburn late Tuesday.

Levin calls it another case of speculative money overwhelming a market - and federal regulators failing to take the steps needed to protect the market. He says it's time for the Commodity Futures Trading Commission to change course, rein in commodity index traders and clamp down on excessive speculation that is disrupting commodity prices. CFTC Chairman Gary Gensler says the Commission will continue its own analysis and appropriate regulatory responses - and will give Levin's recommendations the utmost attention and careful consideration.

The study shows commodity index traders increased their holdings from about 30-thousand daily outstanding wheat contracts in 2004 to 220-thousand in mid-2008 at the largest wheat futures market - the Chicago Mercantile Exchange - before dropping to about 150-thousand contracts at year's end. Index traders - overall - held between 35 and 50-percent of the outstanding wheat contracts since 2006. While the contracts held by index traders soared - so did the gap between futures and cash prices - which rose from 13-cents a bushel in 2005 to $1.53 in 2008.

New Equipment From NSA Boosts ARS Sunflower Research

Researchers at the Agricultural Research Service Sunflower Research Unit in Fargo, North Dakota are looking for sunflowers that resist insects and two types of fungi using state-of-the-art equipment. SRU scientists - with researchers around the world - have found new sources of resistance to yield-reducing pests. One geneticist has found unique genes that form the basis for new sunflower breeding lines.

The geneticist has developed Red Sunflower Seed Weevil and Banded Sunflower Moth-resistant germplasm - and he will test experimental hybrids from these later in the year. This research is facilitated by the National Sunflower Association’s efforts and 400-thousand dollars worth of new, donated equipment.

New Climate Change Cost Analysis Released

The Congressional Budget Office has added some fuel to the fire when it comes to the debate over the climate change bill moving in the U.S. House. The CBO reports the legislation would cost U.S. households an average of 175-dollars a year in 2020. While that undercuts frequent Republican claims that the bill would cost households as much as 31-hundred dollars a year. But according to Frank Lucas - Ranking Member of the House Ag Committee - the CBO study does not examine the full impact the entire bill will have on American families, farmers and small businesses. He says it only points out how much we still need to learn about the consequences of passing the measure.

The CBO found the gross annual cost of the bill in 2020 would be 110-billion dollars - mostly from the purchase of allowances and the financing of special projects in the farm and forestry sectors. The price of an allowance in that year would be 28-dollars per ton of emissions.

The report says about 47-billion would be allocated to industry - which would benefit the public indirectly through increased returns on investments. Another 10-percent would go to the federal government and states - while seven-percent would go toward overseas programs. Of the total cost - about 30-percent - or 28-billion dollars - would be allocated back to households directly.

Doha Talks to Move Forward

As the United States changed administrations - the pace of the Doha Round of trade talks slowed to a crawl. But - it appears they are now picking up steam - as several key WTO members - including India and the U.S. - have expressed a desire to return to full-scale negotiations. David Walker - the Chairperson of the negotiating group on agriculture - has announced that agriculture negotiations will return to a multilateral process - establishing a schedule for negotiations before the summer break in August and early September.

Last week in Washington - India’s Commerce and Industry Minister said New Delhi is ready for give and take without being frozen in pre-negotiating position. India and the U.S. had disagreements over the level of protection subsistent farmers should have from the opening of global markets.

Key Planted Acreage Numbers Changing

USDA will release its planted acreage report next Tuesday (June 30). Seeing a fairly big switch from corn to soybean acres this spring - Informa Economics is estimating planted corn acreage will be 83.1-million - 1.9-million less than USDA's current estimate - and 800-thousand below Informa's May estimate. For soybeans - Informa's 78.8-million acre estimate is up 500-thousand acres from the May estimate - and 2.8-million acres above USDA's current forecast. Informa's spring wheat acreage estimate is 100-thousand acres more than USDA's estimate.

Meanwhile - Allendale estimates soybean acres will be up almost 2.5-million acres from USDA's March planting intentions - while corn acres will decline 211-thousand acres. Allendale's estimates are at 84.7-million acres for corn - and 78.4 million acres for soybeans. Allendale estimates a 302-thousand acre decline in wheat acres from the March intentions.

As for farm income - IHS Global Insight economist John Kruse says the outlook for 2009 has deteriorated significantly because of lower commodity prices and cash receipts. Total cash receipts are now expected to drop nine-percent from last year - with the reduction split evenly between the crop and livestock sectors. Last year’s income level was by far a record - so historically speaking - this year's farm cash receipts will still be relatively high.

Nestlé Recall Causes Officials To Search Possibilities To Solve Mystery

E. coli 0157 has been linked to Nestlé’s refrigerated cookie dough - and scientists are trying to figure out how the bacteria could have ended up in a product that seems unlikely to contain it. Nestlé USA Vice President Laurie MacDonald says the company recalled all its refrigerated cookie dough products - about 300-thousand cases - within 24 hours of being notified of the suspected problem by FDA. They also suspended operations at the plant that makes the dough. It is important to note – however – that investigators haven’t confirmed the presence of the bacteria in any Nestlé product at this time.

The outbreak - which comes as the government is trying to reform the nation’s food safety system - has made at least 65 people in 29 states sick. More than two-thirds of the victims - according to the Federal Centers for Disease Control and Prevention – are under the age of 19. The appearance of E. coli 0157 in cookie dough is unusual – so investigators are looking at all possible factors, analyzing ingredients, the plant’s equipment, the health of workers and whether the facility is located near cattle. Officials are also considering the possibility that the dough may have been contaminated intentionally.

Nestlé has a good reputation within the food industry for manufacturing practices designed to prevent contamination and has cooperated fully with the investigation - according to Assistant Commissioner for Food Safety at FDA David Acheson.

Lucas Speaks Out Against Climate Change Bill, Process

The Ranking Member of the House Ag Committee - Frank Lucas - notes the National Pork Producers Council is just one of the latest agriculture groups publicly expressing opposition to the Waxman-Markey legislation. He says the list of ag groups opposed to the climate change bill has grown from 23 to 115 in just a month's time. He says it's clear the ag community doesn't believe this bill is in the best interest of farmers and ranchers. Lucas joined the Ranking Members of the seven other committees with jurisdiction over the bill for a press coference to oppose efforts by Democratic leaders to block full and open debate on the measure.

During the press conference Friday - Lucas pointed out the agriculture committee has had one hearing on this bill without a markup in sight. He says the eight witnesses at that hearing - covering a variety of rural interests - did not endorse the bill as it currently reads. Even Ag Secretary Tom Vilsack - he noted - called the bill a work in progress. According to Lucas - this is not the way you create law.

Crapo Intends to Stand in Way of Clean Water Act

Shortly after the Clean Water Act was passed out of the Senate Environment and Public Works Committee last Thursday (June 18) - Senator Mike Crapo placed a “hold” on the bill. Crapo voted against the bill in committee and has now said he plans to use every tool and privilege afforded to slow - if not stop - the bill.

The legislation would allow the U.S. government to regulate virtually all interstate and intrastate waters and their tributaries. This would include almost every location where water is held or flows. Crapo says the language in the bill does more than restore the regulatory environment which existed prior to a Supreme Court ruling.

Another Republican and Ranking Member of the Committee - James Inhofe of Oklahoma - said Democrats are moving a bill that amounts to the biggest bureaucratic power grab in a generation. He said it’s directed right at America’s heartland.

Sow Reduction Program Stalled

The producer supported Producer Retirement Program - which was designed to reduce the U.S. sow herd - has stalled. According to Chuck Wirtz - Chairman of the Board of Directors of PRP - most producers with sows are no longer in a financial position to support the program - which was set to begin June 17th.

The PRP was designed to supplement the cull price that the members would otherwise receive for their sows if they decided to exit sow production for two years. The retirement program was dependent on enough pork producers with sows signing up and paying a 20-dollar per-sow subscription.

Meanwhile - Secretary of Agriculture Tom Vilsack says his department is in the process of taking a look at ways they can be of assistance. The Secretary admits they are a bit limited in terms of capacity to purchase pork because of restrictions that have been placed on use of funds by Congress. Still -the Secretary says they will continue to look for ways to help pork producers.

Energy Legislation Approved by Senate Committee

The Senate Energy Committee voted 15 to 8 to approve draft comprehensive energy legislation Wednesday. Four Republicans - including the Ranking Member - supported the measure - while two Democrats opposed it. The measure would mandate a sharp increase in electricity generated from renewable sources, open new areas of the Gulf of Mexico to oil and gas drilling and make it easier to site power transmission lines.

Congressional Quarterly reports the bipartisan support is a result of compromises engineered during a series of markups by Chairman Jeff Bingaman. While the bill isn’t expected to reach the floor until the fall - there’s already speculation the compromises could easily unravel. Senate Majority Leader Harry Reid has signaled hope to combine the bill with climate change legislation the Environment and Public Works Committee aims to mark up this summer.

The key provision of the measure would mandate that 15-percent of the nation’s power come from renewable sources like wind and solar by 2021 - including up to four-percent from improved efficiency. That’s lower than the President’s preferred mandate of 25-percent by 2025 and the House Energy’s standard of 20-percent by 2020.

Brazil Conducts Sting at LBS and Others

JBS SA - the world's biggest beef processor - and others are under investigation by Brazil's federal prosecutor's office in a widespread corruption case. Several meatpackers and leather and hide companies are part of the investigation - which began about a year ago. The public relations department of Brazil’s federal prosecutor's office released a statement saying several people were being rounded up and held in police custody following police sting operations. The prosecutor's office said it was investigating the bribing of public officials, racketeering, corruption, fraud and collusion.

Wednesday - JBS S.A. officials denied the company is involved in crimes associated with the Brazilian government’s probe. JBS said it cooperated with the police - which collected documents including audit reports and copies of plant operations licenses. The company said no electronic data storage devices, computer or any other kind of equipment was seized - due to a lack of evidence that any crime was committed.

Senators Chambliss and Klobuchar Introduce Bill to Improve Food Safety

The Ranking Member of the Senate Ag Committee Saxby Chambliss and Minnesota Senator Amy Klobuchar introduced the Food Safety Rapid Response Act of 2009 Tuesday. The bill - which complements the Food Safety Modernization Act of 2009 introduced in March - calls for an increase in participation of public health and food regulatory agencies and laboratories to share findings and develop a centralized database. The measure was created to promote a more effective national response to outbreaks of food-borne sickness.

Senator Chambliss says the recent nationwide salmonella outbreak demonstrates the need for better coordination between public health agencies when responding to a food-safety crisis. Chambliss believes this legislation will expedite needed improvements to identifying and responding to food-borne illnesses throughout the country. Senator Klobuchar says the government can save lives and money by strengthening the nation’s food safety system.

GET IT Pushing Conventional Beef Production

The Growth Enhancement Technology Information Team - or GET IT - is launching a marketing campaign trumpeting the economic and environmental benefits of conventional beef production over those of grass-only or natural beef production systems. GET IT is made up of animal-health manufacturing executives who say the program will provide beef producers with facts about the eco-friendly and economical benefits of conventional beef production.

A key message is that conventional beef production is environmentally friendly compared to grass-only or natural beef-production systems. GET IT’s Paul Parker says it may seem counter intuitive that conventional beef production has less environmental impact than grass-only, natural or organic beef production - but he points out that cattle finished on grain-based rations using growth-enhancing technologies are more land efficient and reduce greenhouse gas emissions.

With U.S. consumers facing rising food costs in a tight economy - Parker adds beef producers have a great opportunity to be proactive and positive with messages about beef's affordability and environmental and economic sustainability. GET IT cites an Iowa State University study which showed that conventional production reduces by two-thirds the amount of land needed to produce a pound of beef.

National Ethanol Vehicle Coalition to Partner with Growth Energy

The National Ethanol Vehicle Coalition announced at the 2009 Fuel Ethanol Workshop that it plans to join forces with Growth Energy and become Growth Energy Market Development. NEVC is the second ethanol association to join Growth Energy. This will help the coalition continue its 13-year task to increase availability of higher ethanol blends and flex fuel vehicles. Co-Chairman of Growth Energy - Retired General Wesley Clark says Growth Energy is excited for NEVC to join the company and continue its work as part of the company.

Phil Lampert - Executive Director of NEVC since 1997 and Vice President of Market Development for Growth Energy - says notes there were 10 E-85 pumps and 500 flex fuel vehicles in the U.S. in 1995 - and now there are more than two-thousand pumps and over eight-million flex fuel vehicles. Lampert looks forward to doubling or tripling those numbers in the next few years with the help of supportive groups and individuals.

LMA’s 46th World Livestock Auctioneer Championship Concludes

The Livestock Marketing Association’s 46th Annual World Livestock Auctioneer Championship took place Saturday, June 13th at the Fergus Falls Livestock Auction Market in Minnesota. The WLAC - an actual sale where contestants are scored on vocal clarity, talent at keeping the sale going and bid-catching ability - is held every year to spotlight competitive livestock marketing and the auctioneer’s role in that process. In his 12th WLAC - Montana auctioneer Ty Thompson won the title of World Champion.

Thompson received five-thousand dollars, the Champion’s sculpture and a new 2009 Chevy Silverado Quad Cab truck from LMA - among other things. Thompson will appear at livestock markets and other events across the country for LMA. He says he’s looking forward to doing so because livestock marketing has been good to him and his family - and he wants to give something back.

Quarterfinals to qualify contestants for the 2010 WLAC are already planned and will be held at four different locations on four separate dates: September 25th at Public Auction Yards in Billings, Montana – October 9th at Crawford Livestock Market LLC in Crawford, Nebraska – October 15th at Calhoun Stockyard in Calhoun, Georgia – and December 2nd at Parsons Livestock Market in Parsons, Kansas. The 2010 WLAC will take place at the Oklahoma National Stockyards in Oklahoma City on June 19th.

Preconditioning Could Help Calf Profitability

A 2007 survey of Oklahoma livestock markets - conducted by Oklahoma State University - revealed that only 11.9-percent of the calves sold through the surveyed markets were considered preconditioned - or value-added. And because of the economy - many market watchers believe cow/calf producers face stagnant to lower markets this fall and potentially slimmer profit margins. So - they say having preconditioned calves now can be a financial advantage in the near future.

Dr. Frank Hurtig - director for Veterinary Services for Merial - says cow/calf producers need to start exploring every possible avenue for adding value to their calves and bottom line. Hurtig adds since feedyards will likely be feeding fewer cattle than most years - buyers are more likely to be picky on sale day - potentially giving producers who follow a preconditioning program an edge.

Preconditioning programs are designed to help reduce stress for calves at weaning and improve their immune systems - which helps them to perform better postweaning. Dr. Jeremy Powell - professor of Animal Sciences at the University of Arkansas - says if buyers can spend about 20-dollars more per head and as a result save 75-dollars in medical expenses and performance losses because calves stay healthy - they’ll do it.

Meat and Poultry Industry Big Contributor to U.S. Economy

The American Meat Institute released a new Economic Impact Study Friday that shows the nation’s meat and poultry industry contributes roughly 832-billion dollars - nearly six-percent of total Gross Domestic Product - to the U.S. economy along with nearly 6.2-million jobs and 200-billion dollars in wages and benefits.

President and CEO of AMI J. Patrick Boyle says companies and individuals in America that produce, process, distribute and sell meat and poultry products continue to be a vital part of the U.S. economy.

According to the study - conducted by John Dunham and Associates in New York City - the industry also generates sizeable tax revenues - more than 81-billion dollars in revenues to federal, state and local governments and more than 2-billion dollars in state sales taxes.

The complete study - which includes state-by-state and Congressional district breakdowns - is available online at www.meatfuelsamerica.com. Boyle says he hopes the interactive format to drill down to the state and congressional district level will be useful to media who cover the industry - and lawmakers wanting to understand the impact of public policy initiatives in their states.

Pressure to Make NAIS Mandatory

It’s been no secret that Rosa DeLauro - the Chairman of the House Appropriations Ag Subcommittee - wants a mandatory National Animal Identification System. And this week - she emphasized that message - telling USDA and the livestock industry to agree to a mandatory program or the program will be zeroed out in the 2010 fiscal year budget. The program has already been reduced to zero in the Ag Appropriations measure approved last Thursday (June 11) by the Subcommittee.

DeLauro charged that USDA has mismanaged the program while spending millions. She says a mandatory program is needed to provide assurance against economic calamity and to protect our export markets. The move was not totally unexpected. Earlier Collin Peterson - Chairman of the House Ag Committee - said he would support cutting off funding for the program unless USDA finds a way to make the program mandatory.

To date - only 35 percent of animal premises across the nation have been registered. USDA has found - through its recent listening sessions around the country - almost no support for a mandatory program. In fact - they are finding an organized uprising that is calling for an elimination of the program.

NCGA President Responds to Food Inc Documentary

National Corn Growers Association President Bob Dickey says the producers of the new documentary Food Inc. don’t like the steps government, the food industry and commodity groups like NCGA have taken to keep food prices low and help feed the world’s hungry. But instead of offering a workable solution - he says they suggest more outdated practices that will reduce yield and drive up costs - ultimately ensure fewer mouths are fed at a higher cost. Dickey says they need to look at the real costs and causes of obesity and its related health issues and recognize - as scientific experts have - that corn is a healthy and safe natural food product.

Dickey says U.S. corn farmers are proud of their work that results in a versatile product used for countless products from food to fuel to fiber. He notes growers are planting, growing and harvesting the crop in a more efficient and environmentally sustainable manner each year thanks to reliable technology in the seed and in the field.

Cap & Trade Study Released

The Heritage Foundation’s Center for Data Analysis has released an economic study regarding the impact a cap-and-trade system would have on the agriculture community. The study maintains that cap-and-trade is - an energy tax in disguise - that will cause farm income to drop dramatically because of higher operating costs. It further argues that people living on fixed incomes and struggling in tough economic times can expect higher food prices as the result of this policy.

The Heritage Foundation study projects that farm income - after expenses – will drop 8-billion dollars in 2012, 25-billion in 2024, and over 50-billion in 2035. Decreases of 28%, 60%, and 94%, respectively. The report projected an average net income loss over 25 years of 23 billion dollars. Also, Construction costs will increase 10 percent, gasoline costs will increase 58 percent and electric rates will go up 90 percent over the 25 year period.

House Ranking Member Frank Lucas says - no wonder agriculture groups are increasingly coming out against the Waxman-Markey bill. They know agriculture is a target. They know that cap-and-trade promises to destroy their livelihoods. According to Lucas, - a bill of this magnitude deserves thoughtful consideration and debate. Instead, Speaker Pelosi is rushing it through Congress to the detriment of all of us.

Ag Subcommittee Holds Stimulus Hearing

The House Agriculture Subcommittee on Rural Development, Biotechnology, Specialty Crops and Foreign Agriculture held a hearing on Wednesday to review USDA’s rural development programs and the status of American Recovery and Reinvestment Act funds for these programs. Subcommittee Ranking Member Michael Conaway said - testimony highlighted several critical barriers to getting funding to where it is most needed in rural America, and we hope USDA will be able to address those problems quickly.

The Subcommittee heard testimony from two panels of witnesses, including Under Secretary for Rural Development Dallas Tonsager, who spoke about USDA's rural development programs as well as American Recovery and Reinvestment Act funds targeted for those programs. Congressman Mike McIntyre of North Carolina is Chairman of the subcommittee.

McIntyre said. - from key infrastructure and housing to broadband and business loans, federal funds are playing a critical role in helping communities move forward, and it is critical that these dollars are spent wisely and appropriately. McIntyre pledged - this subcommittee will continue to do all we can to support Rural America and ensure that taxpayers' dollars are being spent in the most efficient manner.

New Test Available for Angus Influenced Cattle

Neurophathic Hydrocephalus is a lethal genetic defect that affects Angus and Angus-influenced cattle. Calves carrying two recessive genes—resulting from the mating of two carrier animals—are born dead with an extremely large cranium with little or no brain matter or spinal cord. A large percentage of mortalities relating to NH occur through embryonic or fetal loss during gestation, which causes the defect to go misdiagnosed or unnoticed.

Dr. Jon Beever at the University of Illinois and Dr. David Steffen at the University of Nebraska-Lincoln, in collaboration with the American Angus Association, have identified the gene mutation responsible for NH and a commercial test has been developed and validated. The new diagnostic test is now available through Pfizer Animal Genetics.

Also, Pfizer Animal Genetics has been approved by the American Angus Association as an NH testing laboratory. Pfizer Animal Genetics has proactively worked to expand its testing capacity in order to provide results to producers in a timely manner. Samples are being tested in the order in which they are received at the new laboratory located in Kalamazoo, Michigan.

Dairy Farmers Receiving Early Payments

The dairy farmer-owners of Associated Milk Producers Incorporated are getting a financial boost. Payments, normally mailed out in December, are being mailed ahead of schedule to help dairy farmers weather difficult economic times. Members are receiving 2.1-million dollars in past earnings from the cooperative.

Rice Lake, Wisconsin Dairy Farmer and AMPI chairman Paul Toft announced the board’s vote to move up payments normally made in December. Toft said, - AMPI has long been recognized for its timely equity revolvements. We’re living up to our reputation, he said. The June payout is a portion of the projected equity payments AMPI members will receive in 2009.

AMPI’s earnings come from adding value to every hundredweight of milk produced by its dairy farmer-owners. Member milk is manufactured into a complete line of packaged dairy products, including the cooperative’s award-winning cheeses. The cooperative packages dairy products under hundreds of leading labels to fulfill orders from retail, food service and food ingredient customers.

Light on Immigration Bill Flickers to Life

Senate Majority Leader Harry Reid says passing a comprehensive immigration bill this session is one of his top priorities. His other two priorities are health care and energy. Reid’s comments seemed to give new life to the immigration issue. But, Congress and the White House are preoccupied with a packed legislative calendar and immigration reform looks unlikely to pass this year.

Senator Charles Schumer plans to draft and introduce a new immigration measure later this year. That could result in Congressional movement on the issue.

In the meantime, the White House will host a meeting of key lawmakers and advocacy groups to discuss immigration. The administration continues to say that Obama wants to - start the debate this year, - but the President has not asked for a bill to sign in 2009.

Interior Department Establishes Youth Corps

Secretary of the Interior Ken Salazar has signed a Secretarial Order establishing an Office of Youth in Natural Resources at the Department of the Interior. The office will coordinate present and future youth initiatives, the signature program of which will be a 21st Century Youth Conservation Corps. The corps will be modeled after the Civilian Conservation Corps that provided 3-million men with jobs in the 1930s. By comparison, the 21st Century Youth Conservation Corps will include women as well as men and strive for greater diversity.

The Secretary said the Interior Department expects the American Recovery and Reinvestment Act funds to result in the employment of an additional 5-thousand young people by this summer. In making the announcement Salazar said, - President Obama and I believe that during tough economic times, a new national youth program is needed to provide jobs, outdoor experiences and career opportunities for young people –especially women, minorities, tribal and other underserved youth.

The program will engage thousands of young men and women in all states and territories, from diverse backgrounds, including tribal and underserved populations and those who have little opportunity to experience the outdoors.