Tuesday's Headlines

“Vilsack Announced Stimulus Funding”

USDA has announced its first actions implementing the 28-billion dollars provided in the American Recovery and Reinvestment Act of 2009. In making the announcement, Ag Secretary Tom Vilsack said, - USDA will have a significant impact not only in rural communities but in communities across the country struggling with today's tough economic times.

One portion includes funds being handed out by the Farm Service Agency. FSA will use immediately 145-million dollars for its Direct Operating Farm Loan Program. Those direct loans will go to 2,042 farmers – almost 50% are beginning farmers and 10% are socially disadvantaged producers. These loans will be used to purchase items such as farm equipment, feed, seed, fuel and other operating expenses and will stimulate rural economies by providing American farmers funds to operate.

And the Natural Resources Conservation Service will release up to 145 - million dollars to restore frequently flooded land to its natural state; create jobs in rural communities nationwide when landowners establish these floodplain easements; as well as restore and protect an estimated 60-thousand acres of flood-prone lands nationwide through the floodplain easement component of its Emergency Watershed Protection Program. Signup for the easements is now underway.
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“First E. Coli Vaccine for Cattle Licensed”

Epitopix is the first ever E.coli 0157 vaccine to receive USDA Approval. The product license is conditional while additional potency and efficacy studies are completed. However, USDA is allowing Epitopix to make the vaccine and make it immediately available for use by the beef industry. E. coli O157 Bacterial Extract is the first immunological weapon available to the industry in the battle against this food safety concern.

The new vaccine is labeled for use in cattle to reduce the prevalence of the E. coli O157 carrier state and for reduction in the amount of E. coli O157 shed in feces to minimize exposure and infection of herd-mates. According to Epitopix General Manager Jim Sandstrom, our product - represents a significant breakthrough in the beef industry's on-going effort to reduce E. coli O157.

E. coli O157 is a Gram-negative bacterium known to exist in the gastrointestinal tract of outwardly healthy, normal cattle. These bacteria do not cause disease in cattle, but when the cattle are harvested, E. coli O157 bacteria can sometimes find their way into ground beef. Proper cooking easily kills the bacteria, but in cases where beef may be inadequately cooked, serious human disease can occur, especially in children, the elderly or in individuals with a compromised immune system.
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“New Coalition Lobbied Congress”

The Coalition for a Prosperous America lobbied Congress last week on the need to reverse the United States’ skyrocketing trade deficit. CPA consists of agricultural, manufacturing and labor interests which collectively seek reform of U.S. trade policy. R-CALF USA is a founding member.

William Bledsoe, a Colorado rancher, says, we urged Congress to immediately require all imports – including food and manufacturing components – to strictly meet U.S. standards and to take immediate steps to end the ongoing practice of currency misalignment.

Bledsoe says our trade policies - allow products into the United States that are only equivalent to U.S. standards. He points out - this ‘equivalent’ standard means it can be different than our U.S. standard, and that is why we’re importing unsafe food and other substandard products into our country.

R-CALF USA Co-Founder Herman Schumacher, who feeds cattle in South Dakota, said R-CALF USA’s new partnership with manufacturing interests raised more than a few eyebrows in Congress.
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“Harkin Backs Ethanol Industry Request”

Iowa Senator Tom Harkin applauds the recent request by members of the ethanol industry to the Environmental Protection Agency to authorize the blending and use of up to 15 percent ethanol in gasoline supplies. Under present regulations, only flex-fuel vehicles are authorized to use gasoline containing more than 10 percent ethanol. With total ethanol production rapidly approaching 10 percent of annual gasoline sales, this limitation is beginning to constrict ethanol markets and limiting the use of this clean domestic biofuel.

Harkin asked EPA to - move forward expeditiously with a positive ruling. The Senate Ag Chairman noted, - this waiver is necessary to open ethanol markets and enable us to stay on a path towards decreasing the use of petroleum-based fuels and increasing the use of alternative biofuels produced from domestic resources.
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“Grassley Addresses NFU Convention”

The way that wind projects have typically been financed is through tax equity financing, where an investor puts up money to build the wind project and in return gets to use the tax credits to offset its income taxes. In prepared remarks to the National Farmers Union Convention Monday Iowa Senator Chuck Grassley pointed out - many of the investors in these projects were large banks, such as Lehman and AIG, and these banks no longer have tax liabilities because they have no income. Therefore, according to Grassley, projects were stalled due to a lack of financing.

In the stimulus bill, there is a provision that allows wind companies to elect an investment tax credit that is equal to 30 percent of their investment in the wind project. Also, to deal with the fact that the tax equity financing market has dried up, wind companies can trade in their tax credits for grants from the Treasury Department. This allows these wind projects that were previously stalled to go forward, and for many good jobs to be created.

In recent weeks and months, a new phrase has been born that has gained popularity and support. The new phrase that is so in vogue in the halls of Congress and at the White House is “green jobs.” Everyone wants to create “green collar jobs.” But Grassley wondered – are the domestic ethanol and biodiesel industries included? The U.S. renewable fuels industry has been creating good-paying jobs in rural America for years.
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“New NPPC Officers Elected”

New officers were elected to lead the National Pork Producers Council on Saturday. Don Butler, director of government relations and public affairs for Murphy-Brown LLC – the livestock production subsidiary of Smithfield Foods Incorporated, was elected president. Sam Carney, a pork producer from Adair, Iowa, was named president-elect. And Doug Wolf, a producer from Lancaster, Wisconsin, was named vice president. Each will serve one year terms.

NPPC CEO Neil Dierks said of the new president, Don Butler, - Don has been a strong leader in the U.S. pork industry and brings the unique perspective of a government relations-public affairs professional to dealing with the challenges our industry faces.

The president-elect, Sam Carney, is owner and operator of Carney Farms Inc., which he runs with his son Randy. For more than 20 years, Carney has served in various pork industry leadership positions, including as president of the Iowa Pork Producers Association.

Doug Wolf, the new NPPC vice president, is a partner in Wolf L & G Farms LLC, with his wife Kris and son Shannon. All three officers have served on the NPPC board of directors for the past three years.
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“Documentary to Air on Animal Cruelty”

Remember the undercover video footage out of Ohio showing animals receiving cruel treatment? Home Box Office will be running a documentary beginning next Monday night called; “Death on a Factory Farm.” It appears in that show much of the same footage will be used. HBO’s promotion video shows several people reacting negatively to the cruelty with only one person defending the hog industry.

Producers last week at the annual Pork Industry Forum talked about the possibilities of what the show might reveal. The documentary is based on a video taken by the Humane Farming Association, an animal rights group.

Steve Weaver, president of the National Pork Board, says our detractors and special interest groups have begun to focus on specific production practices and to challenge our industry on our commitment to animal care.
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