Monday's Ag Headlines

“Farmer Leaders of Major Commodity Groups Defend Farm Bill Safety Net”

The leaders of the organizations participating in Commodity Classic took an opportunity to reiterate the importance of the farm safety net as written in the 2008 Farm Bill Friday. Together the groups - including the National Association of Wheat Growers, National Corn Growers Association, National Sorghum Producers and American Soybean Association - represent nearly 90-percent of the nation’s crop area planted. The producers who lead these groups said in a statement that the government’s small investment in ag programs provides an excellent return for the American people.

The statement points out that production ag is a volatile business and that a workable safety net is vital to the security of the industry. A change to the safety net - they continue - will impact the continued production of an abundant, affordable and safe food and feed supply for Americans and those the U.S. exports to around the globe. Because a five-year farm bill is designed to provide stability to producers, agricultural operations and the food system - the major commodity organizations says the 2008 Farm Bill shouldn’t be reopened before it expires in 2012.

The statement concludes with a pledge to work with the Obama Administration and Congress to ensure farm program monies are spent wisely.

David Cleavinger - a wheat producer from Wildorado, Texas - is president of the National Association of Wheat Growers. Laurel, Nebraska corn grower Bob Dickey is president of the National Corn Growers Association. Toby Bostwick is chairman of the Board of the National Sorghum Producers and a sorghum producer from Melrose, New Mexico. The American Soybean Association president is Johnny Dodson - a soybean producer from Halls, Tennessee.
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“Another Lawmaker Voices Opposition to President’s Farm Policy Proposal”

Just as commodity group leaders spoke out regarding the farm safety net Friday - more reaction to President Obama’s budget proposal came from the halls of Congress. House Ag Committee member Jerry Moran - who represents the First District of Kansas - stated his opposition to proposed farm policy changes. Moran said his farmers have made it clear that the direct payment program is the best safety net available to help them meet the challenges of high diesel and fertilizer costs - as well as the costs associated with potential increases in environmental regulation. Moran also believes direct payments are the most market oriented and least disruptive of trade.

Given the economic challenges facing the country - Moran says now is not the time to re-visit the farm bill debate. He notes commodity programs were already significantly cut less than one year ago. Among Moran’s concerns is the provision to change the test that determines who can receive direct payments - and the call for changes in the crop insurance program. According to Moran - the President and Ag Secretary Tom Vilsack have taken a position that is out of touch with production agriculture.
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“GOP Leaders Take Hard Line on Obama Budget”

Agriculture wasn’t at the center of comments made by the House and Senate Minority Leaders - but they are vowing to oppose the President’s budget priorities. They criticized the proposal for a new cap-and-trade system for carbon emissions allowances and tax increases on small businesses, family farms, middle-class families, charities and Americans with a 401k.

House Minority Leader John Boehner (bay-ner) called the proposed cap-and-trade system a code word for a carbon tax on Americans that would help other countries that do not have similar carbon emissions restrictions. And as for the taxes - he promised his Republican colleagues - and a lot of Democrat members of the Congress - would never stand for having taxes raised on Americans.
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“Bullard Visits with Vilsack”

R-CALF USA CEO Bill Bullard recently spoke with Ag Secretary Tom Vilsack about the challenges facing independent cattle producers - as well as remedies available to improve the live cattle industry in the U.S. Bullard discussed how concentration in the feedlot and packing sectors has harmed producers and resulted in an exodus from the industry - and how current trade policies, relaxation of border restrictions and ongoing efforts to implement a mandatory National Animal ID System are disadvantaging the competitiveness of domestic cattle producers.

According to Bullard - the cattle industry desperately needs reform - but is also uniquely positioned to help revitalize the U.S. economy. He says that’s possible without government expenditures if fundamental changes are made to fully restore competition in the marketplace.

Bullard says Secretary Vilsack was attentive, asked questions and took notes. He credited the Secretary with giving more consideration to the issues of importance to independent cattle producers than any of the three secretaries who preceded him.
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“Federal Drought Action Team Activated”

Secretaries of the Interior and Agriculture have created a Federal Drought Action Team that will work cooperatively to respond to communities facing significant drought. The Team includes representatives appointed by Secretary of the Interior Ken Salazar and Secretary of Agriculture Tom Vilsack, along with representatives from other federal agencies.

Immediately the Team is beginning to work with California officials. That state is currently facing one of its worst droughts in decades. The announcement follows an earlier announcement by the Department of the Interior's Bureau of Reclamation that based on water forecasts; water allocations for the Federal Central Valley Project will be significantly limited for agricultural, municipal, industrial, and environmental uses.

Interior Secretary Salazar said, - the drought situation in California is dire. Farms, ranches, and communities across the Central Valley are withering on the vine and in need of any help the federal government can provide. Ag Secretary Vilsack says - it is essential that farmers, ranchers, and rural communities have confidence that the government will be working together to ensure they have access to every tool available.
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“Wind Power to the People”

Federal regulators will allow wind developers to build transmission lines. Initially, Chinook Power Transmission and Zephyr Power Transmission have received Federal Energy Regulatory Commission approval to proceed with projects covering more than two-thousand miles. By the time the lines are finished in 2014, the construction of three-thousand megawatts of wind power generation will have been completed.

The two companies propose to take a new approach, entering into an agreement to provide half of the capacity on their new transmission lines to wind developers. The agreement will help finance the transmission lines and convince utilities that the project is viable. The remaining half of the transmission line will be available for other power generators.

One transmission line will run from Medicine Bow, Wyoming to just south of Las Vegas. The second line will run from Harlowtown, Montana to Las Vegas. Each transmission line is expected to cost three-billion dollars and have a capacity of 3-thousand Megawatts.
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“UL OKs 15 Percent Ethanol Blend”

It was well documented when, a few years ago, Underwriters Laboratories gave the OK to pump a ten- percent ethanol – 90 percent gasoline blend through existing gasoline dispenses. Just a few days ago a group of Governors asked the Environmental Protection Agency to OK a 13 percent ethanol mix. Now, Underwriters Laboratories says its data shows existing gasoline dispensers can safely dispense ethanol blends up to 15 percent.

Recent statements credited to Underwriters laboratories sent mixed signals as to whether a higher blend is permitted. In a statement clarifying the matter, the UL notes that its researchers found that – using equipment certified to UL 87 to dispense ethanol blends with a maximum ethanol content of 15 percent should not result in critical safety concerns.
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“Looking for Rust Susceptible Proteins”

Domestic soybean cultivars have little resistance to soybean rust, and now America's second largest crop is severely threatened by this relatively new disease. The detection of three-thousand proteins produced in plants of common beans could help breeders develop resistance against the bean rust fungus - a major concern for domestic dry bean and snap bean growers. It is hoped the discovery of the dry bean rust disease resistance proteins will help identify similar proteins in soybeans and advance soybean breeding efforts as well.

The symptoms of this rust initially appear as small white flecks on the upper leaf surface, then develop into reddish-brown pustules. When severe infections occur, the leaves curl upward, dry, turn brown, and drop prematurely, and pod set, pod fill and seed size are reduced.

Plant pathologist Bret Cooper, at the ARS Soybean Genomics and Improvement Laboratory in Beltsville, Maryland, leads the research, which could help scientists determine which proteins produced in bean plants are involved in providing resistance to rust fungus.
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