Thursday's Headlines

“Duran Tied to ASA Investigation Request”

Agri-Pulse reports additional details behind the decision of the United States Soybean Export Council Board to place CEO Dan Duran on administrative leave. The announcement Tuesday came less than a week after Agri-Pulse received word that an internal United Soybean Board review of its contractors found USSEC to be one of the lower rated contractors. USSEC carries out checkoff-funded international marketing efforts for USB.

Misconduct by Duran was alleged when the American Soybean Association requested an audit of the soybean checkoff – including USB and USSEC.

The USSEC board says it will not comment further while it considers its current direction and the long term goals of the organization. The day-to-day operation of USSEC continues through the executive staff of the Council.
*************************************************************

“FDA Overhaul Bill Presented”

Senate lawmakers say the U.S. Food and Drug Administration should conduct more food inspections - and during an emergency the government should have better access to industry test results. Therefore, a bipartisan team of lawmakers has introduced a bill that would expand FDA funding and give the agency more power to recall food. The legislation would require importers to verify the safety of their products and directs plants to address hazards and prevent product contamination.

Senate Assistant Majority Leader Richard Durbin says it’s clear the FDA simply can't keep up with the challenge of protecting nearly 80-percent of our food supply. Republican Senator Judd Gregg says there is momentum for the measure and that there is no significant opposition to the bill.

The Senate bill also has the support of several groups including the Center for Science in the Public Interest, Consumers Union and the Grocery Manufacturers Association. Several bills have previously been introduced in Congress in the interest of food safety overhauls, but they have stalled. Lawmakers are confident this time will be different.
*************************************************************

“Spending Package Draws Opposition”

The 410-billion dollar omnibus spending package, designed to fund government until the end of the fiscal year, is finding resistance from two Democratic Senators - Russ Feingold of Wisconsin and Evan Bayh of Indiana.

Feingold objects to the more than seven-billion dollars in earmarks the bill contains for various member-backed projects. Bayh laid out his opposition in a column in the Wall Street Journal, in which he urged the Senate to reject the bill and said if it did not, Obama should veto it. Democratic leaders hope to pass the bill in time for the President to sign it by Friday, when a stopgap funding measure expires.

Meanwhile, earmark critics want to give the President line-item veto authority. Senators Russ Feingold, John McCain and Paul Ryan were expected to introduce on Wednesday a bill that would give the President the ability to rescind specific spending items in appropriations bills he has signed into law. Congress would have to vote up or down on the package.
***************************************************************

“Cap on Tax Deductions Questioned”

During a committee hearing on the President’s budget, Senate Finance Committee Chairman Max Baucus questioned the viability of a cap on tax deductions for the wealthiest Americans proposed by President Obama to help pay for an overhaul of the health care system. While questioning Treasury Secretary Timothy Geitner, Baucus said the administration should find savings within current health care programs to fund a health care overhaul, instead of resorting to a tax hike for that purpose.

The administration proposes limiting the value of itemized deductions claimed by taxpayers in the top two tax brackets - which would be 36-percent and 39.6-percent starting in 2011 - to the value the deductions would have for taxpayers in the 28-percent bracket. The plan would raise 318-billion dollars in additional revenue over a decade, but critics charge that it would discourage philanthropy.
**************************************************************

“Ag Committee Holds Second Child Nutrition Hearing”

The Senate Ag Committee held a Wednesday hearing which focused on improving nutrition for America’s children in difficult economic times. Committee Chairman Tom Harkin said the hearing continues ongoing efforts to address issues of child nutrition and health. In opening remarks, the Chairman said obesity, even among children, has reached epidemic levels in America, raising the specter that our children will not live as long as their parents. He added that a health care system that is ill-equipped to prevent disease compounds these problems.

Senator Harkin called for the reorientation of our health care system so that it focuses on preventing diet-related illnesses and promoting good nutrition and wellness. He added - our child care settings also present a unique and often overlooked opportunity to reach children before they enter kindergarten and expose them to the right kind of foods and eating habits.The first hearing on this subject was held last December.

One of the solutions, Harkin said, is to improve school meals: offering foods that have more of the good stuff such as vitamins and minerals; and less of the bad such as added sugar, sodium, and fat. That means more low- and no-fat milk, leaner meats, whole grain products, and fruits and vegetables, particularly fresh. A barrier to this, said Harkin, is cost.
*************************************************************

“Hearing Held on Smart Grid Technology.

In the first of a four-part series of key hearings to prepare for drafting a comprehensive Senate energy bill, the Senate Energy & Natural Resources Committee held hearings Tuesday on “smart grid” initiatives and technologies. Committee Ranking Member Lisa Murkowski noted that since the stimulus bill has provided 4.5-billion dollars for smart grid technology, wise policy choices must be made quickly to avoid investing in technology that may become obsolete.

An example of Smart Grid Technology is Boulder, Colorado which has claimed the nickname, “SmartGridCity”. This moniker is a result of Xcel Energy’s business strategy to focus on an “intelligent grid.” Xcel’s grid is built on a design for a fully inter-connected system that allows customers to more actively participate in decisions about their own energy use. Colorado Senator Mark Udall says Boulder residents can program their dishwashers to start when energy prices are low using their BlackBerries. And, if they have a hybrid car, they can wash clothes using the car’s battery.

Former astronaut Edward Lu leads smart grid technology development at Google. He likes to talk about a pilot program in place that allows Google employees to monitor their home electricity use from their cell phones. Lu says studies show that informed consumers cut their energy bills by up to 15-percent. He projects that if half the nation’s consumers would cut their electricity use by 10-percent - the savings would equal taking eight-million cars off the highways.
*************************************************************

“Johanns – No Cancer”

Former Secretary of Agriculture and freshman Senator Mike Johanns ' doctors have indicated they did not find any cancer during a surgical procedure to investigate a suspicious spot on the Senator's left lung. Johanns is recovering after a three-hour surgery performed Tuesday at a Washington-area hospital. During that procedure, doctors removed the lower portion of his left lung. Spokeswoman Sarah Pompei called the removal a - precautionary step.

The Senator is reportedly resting comfortably and could leave the hospital sometime today (Thursday). He intends to be back at work by the 16th.

Pompei said Johanns and his wife Stephanie are grateful for the outpouring of support - and are especially appreciative of the many prayers being offered for them.
*****************************************************************

“EPA Seeking Comment on Report”

EPA is seeking public comment on the annual Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2007 draft report. The gases covered by this inventory include carbon dioxide, methane, nitrous oxide, hydro fluorocarbons, perfluorocarbons, and sulfur hexafluoride. The inventory also calculates carbon dioxide emissions that are removed from the atmosphere by “sinks,” such as through the uptake of carbon by forests, vegetation, and soils.

The draft report shows that overall emissions during 2007 increased by 1.4 percent from the previous year. This trend was due primarily to an increase in carbon dioxide emissions associated with fuel and electricity consumption. Overall, total U.S. greenhouse gas emissions have grown by 17.1 percent since 1990 to 7,125 million metric tons of CO2 equivalent.

This report will be open for public comment for 30 days after the Federal Register notice is published.
*************************************************************

“Purdue Expert: Be Conservative and Defensive”

The extreme uncertainty of the moment implies that pork producers, like all of agriculture, should be conservative and defensive. Those are the thoughts of Purdue University’s Chris Hurt. The Extension marketing specialist says - perhaps management decisions in 2009 should be focused on increasing odds of survival, rather than looking for big opportunities.

Patience could be about to pay off. Hurt believes, pork producers - may be on the verge of returning to profitability. Losses date back to October 2007. Hurt says, in response to concerns of slowing world economic activity - hog prices are expected to rise seasonally in coming months – as feed costs continue to drop. Hurt points to average live-hog prices around 47.50 per hundredweight, but expected production costs near 45.50, which would provide a modest profit.

Hurt predicts that hog prices will not see much enhancement this year due to reductions in demand, particularly export demand. USDA expects a 14 percent drop. Domestic pork production is also expected to drop – maybe one or two percent this year. This indicates pork supplies available to U.S. consumers will rise modestly for the year. Pork available per person is expected to rise by as much as 6 percent in the second quarter.
*************************************************************

“Chile DDG Test Results Favorable”

There is certainly potential in Chile for U.S. DDGS. That’s the conclusion of Dr. Randy Shaver, a dairy science professor at the University of Wisconsin-Madison. In collaboration with a Chilean farm supply cooperative, Shaver conducted feeding trials at six selected Chilean dairy farms. He called the results of his two-season long trial – conclusive.

The trial was divided into two phases to utilize weather related conditions of the winter and summer seasons. In phase one, winter, all six trial farms showed a reduction in feed costs by an average of 17 cents per cow per day and an increase in milk income of 33 cents per cow per day. This brings the combined value of 50 cents per cow per day. The six herds averaged 167 milking cows each. Shaver says, - that means an additional revenue of $83.50 per farm per day.

During summer phase of the project, the cows receive most of their forage from high-quality pasture instead of silage. Shaver reports, - we still saw a significant increase in milk production for the farm that completed a split-herd test and a decrease in feed costs for most of the herds. Shaver feels - trials like this should certainly augment the use of DDGs in Chile and its surrounding area.
*************************************************************

“Soybean Luncheon Scheduled”

The nation’s soybean producers, through the American Soybean Association, will serve an array of soy-based foods to members of Congress, government officials and industry representatives at a special Capitol Hill luncheon. The Seventh Annual Congressional Soyfoods Lunch is slated for next Wednesday. The luncheon has become an annual forum for ASA and its sponsoring partners to showcase soy-based food products, and to demonstrate the importance and benefits of soyfoods to sound human nutrition.

Nutritionists point out that soy can complement or fortify balanced diets, rather than compete with products that are already consumed. Soy foods have become an important staple in U.S. federal nutrition programs, such as the school lunch program, where the addition of soy can benefit existing menus.

The 2009 Congressional Soyfoods Lunch menu includes: Cuban Black Soybean Soup, Crisp Edamame and Vegetable Salad, Vegetarian Beef Bul Gogi (Korean barbecue), Coconut Curry Chicken, Alfredo Primavera and SOYJOY, made with whole soy and real fruit. There will also be a refreshment bar featuring Apple Soy Chai Latte and Soy-tisfying Almond-Chocolate Cappuccino.
**************************************************************

“Commodity Classic Set Attendance Record”

It’s a new attendance record. Last week’s Commodity Classic Trade Show, held in Grapevine, Texas, had a total attendance of 4, 527 registrants. The trade show featured 236 companies exhibiting in 943 booths. That’s more than double the attendance of the first Commodity Classic held in1996.

Commodity Classic Co-chair Ron Kindred said - we were extremely pleased. He said - the WIN and Learning Center sessions were very well attended with some of the sessions having standing room only!

Commodity Classic 2010 is scheduled for March 4-6 in Anaheim, California.