Tuesday's Ag Headlines

“Administration-Moves on Deficit”

President Obama opened a “Fiscal Responsibility Summit” at the White House Monday with a pledge to cut in half the nation’s 1.3 trillion dollar deficit by the end of his first term. He also promised to observe “pay-as-you-go” budget rules. Those rules require increased spending or tax cuts to be offset by spending cuts or revenue increases elsewhere. The President’s proposed budget will be released this Thursday and could impact agriculture. Obama is expected to let some tax cuts, championed by former President Bush, expire on schedule in 2011. That would raise the tax bill for families earning more than 250-thousand dollars a year. And families with estates in excess of 3.5 million dollars would pay more in taxes.
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“House Dems Release Spending Measure”

Also on Monday, House Democratic leaders released a 410-billion dollar omnibus spending measure that would wrap up work on the fiscal year 2009 appropriations bills. The bill’s writers say this bill works in harmony with the economic recovery package, making investments that address the country’s immediate needs while investing in our long term economic strength. Of interest to agriculture, the bill would increase funding for renewable energy and energy efficiency efforts; make strong investments in cutting edge science; and addresses Healthcare Access and Affordability. The bill also reduces earmarks by 5 percent, building on last year’s reduction of 43 percent.
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"Expected Announcements from President Obama"

President Barack Obama has announced his intent to nominate Kathleen Merrigan to the Deputy Secretary of Agriculture post. Merrigan is currently an Assistant Professor and Director of the Agriculture, Food and Environment MS and PhD program at the Friedman School of Nutrition Science and Policy at Tufts University in Boston. But from 1999 to 2001 - she was Administrator of USDA Agricultural Marketing Service. Merrigan has also served as an expert consultant at the Food Agriculture Organization of the United Nations and as a staff member on the Senate Agriculture Committee. In other positions of interest to agriculture - Obama plans to nominate Joe Cannon as Deputy Administrator of the Environmental Protection Agency and Tom Strickland, Chief of Staff and Nominee for Assistant Secretary for Fish and Wildlife and Parks at the Department of the Interior.
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“Court Issues Injunction Against California.

The U.S. District Court for the Eastern District of California has issued a preliminary injunction finding that federal laws preempts a California law regarding regulations applied at federally inspected meat packing establishments. U.S. District Court Judge Lawrence O'Neill ruled that the Federal Meat Inspection Act preempts a California law that requires all non-ambulatory livestock to immediately be euthanized because the state law is different than and in addition to the federal law and usurps the authority of federal veterinarians and inspectors.
The plaintiffs, the American Meat Institute and the National Meat Association, say they will now seek a permanent injunction and declaratory judgment that the state law is preempted as it pertains to swine and other species that the Food Safety and Inspection Service allows to be processed even if non-ambulatory. There has been no word as to if the state of California will appeal the district court’s ruling.
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“AMI Reacts to COOL Implementation”

American Meat Institute President and CEO J. Patrick Boyle has responded to Agriculture Secretary Tom Vilsack's letter asking meat processors to voluntarily go above and beyond the mandatory country-of-origin labeling laws that will take effect March 16. Boyle said AMI is – gratified - that USDA will allow the final rule go into effect as scheduled. But, - it will be up to individual companies to decide whether they take labeling efforts beyond what the law currently prescribes. AMI anticipates that almost 95 percent of beef and pork products will be eligible to bear a "Product of the USA" label once the rule goes live. Boyle says - to the extent that companies are able and elect to go beyond these federal labeling requirements is an individual company decision, which will have to be made in collaboration with a company's retail grocery customers.
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“Senate Committee Members Want Review of Cuba Policy”

A report written by minority committee staffers calls for lifting Bush administration restrictions on travel and remittances to Cuba, re-instituting formal bilateral cooperation on drug interdiction and migration, and allowing Cuba to buy U.S. agricultural products on credit. The report stops short of proposing the 47-year-old U.S. trade embargo against Cuba be lifted. The Republican call for review runs parallel with Obama Administration statements. An administration official says it was - not unreasonable - to expect that Obama would ease constraints on Cuba before he attends the mid-April Summit of the Americas in Trinidad and Tobago. U.S. trading partners such as Latin America and Europe maintain diplomatic and trade relations with Cuba. The views of Indiana Senator Richard Lugar are appended to the report. Mr. Lugar wrote, - the debate is important because it has implications for security interests in the Straits of Florida, broader U.S.- Latin American relations, and global perceptions of U.S. foreign policy. Lugar emphasized, - it is clear that the recent leadership changes have created an opportunity for the United States to reevaluate a complex relationship marked by misunderstanding, suspicion, and open hostility.
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“Time to Order Fertilizer”

Last fall’s high fertilizer prices resulted in an abnormally low rate of fall application. This year, farmers may be waiting for prices to fall before they buy. But that could result in fertilizer not being available to them - or at high prices anyway. So, farmers need to bite the bullet and place their orders. According to Dr. Terry Roberts, President of the International Plant Nutrition Institute, cutting back on fertilizer below optimum rates will not reduce the cost of seed, pesticides, fuel, rent, or taxes, but it will decrease yields and it will decrease profits. Roberts reminds producers that - fertilizer is still a good investment. Each dollar spent on fertilizer can return up to two or three dollars or more in profit, depending on conditions.
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“Ag Outlook Forum This Week”

Plans for USDA’s 2009 Agricultural Outlook Forum continue to fall into place. Added to the list of speakers are Lawrence Summers, Director of the National Economic Council and Assistant to the President for Economic Policy, and Lisa Jackson, Administrator of the U.S. Environmental Protection Agency. Agriculture Secretary Tom Vilsack will deliver the keynote address and more than 140 moderators and speakers will present their expertise and outlooks on agriculture. This year’s Agricultural Outlook Forum is titled: “Global Agriculture & Rural America in Transition" and is will be held at the Crystal Gateway Marriott Hotel in Arlington, Virginia. USDA has hosted this annual event since 1923 to provide farmers and ranchers, government and agribusinesses with sound information for decision-making.