Bill Would Lift Land Use Consideration From Energy Regs

There is a battle over regulations authorized by the 2007 Energy Bill and set by the Environmental Protection Agency. But, a bill introduced in the House seeks to correct the situation, including the elimination of the requirement that the Environmental Protection Agency consider indirect land use when calculating the greenhouse gas emissions associated with advanced biofuels.

The bill was introduced by House Ag Committee Chairman Collin Peterson, Ranking Member Frank Lucas and a bipartisan group of 42 Members of Congress. Mr. Lucas points to what he calls - the most important provision in the bill - the expansion of the acreage eligible to produce biomass feedstock. He believes - this will ease pressure on the current corn production system and open the way for more rapid development of next generation ethanol.

Growth Energy CEO Tom Buis called for the passage of the Renewable Fuel Standard Improvement Act, H.R. 2409. In a written statement, Buis lamented the fact that last minute provisions were inserted into the 2007 Energy Independence and Security Act that were never properly debated. Buis added, - Growth Energy strongly believes in the promise of ethanol and other renewable fuels to reduce our nation’s dependence on foreign oil.

Gestation and Veal Crates Banned in Maine

Another bill backed by the Humane Society of the United States was signed into law last week. Maine Governor John Baldacci signed legislation that will prohibit gestation crates and veal crates in his state. The law becomes effective in 2011.

Maine is now the sixth state to pass such legislation. Last November Californians passed The Prevention of Farm Animal Cruelty Act by a ballot initiative. Previously, Colorado, Florida, Arizona and Oregon passed similar reforms.

Guest Worker Legislation Introduced

Democratic Senator Dianne Feinstein has again introduced an agricultural guest-worker bill. Feinstein's legislation to legalize upward of 2 million illegal immigrant farm workers and their family members resembles similar bills regularly but unsuccessfully introduced since September 2003. A former opponent of the agricultural guest-worker proposal, Feinstein now says it is needed to keep farms in business.

The legislation combines streamlining the existing but infrequently used H-2A guest-worker program with a legalization plan for farm workers already in the United States illegally. Feinstein declared, - there is a farm emergency in this country and most of it is caused by the absence of farm labor.

The illegal immigrant farm workers could attain temporary legal status after meeting certain criteria, including a commitment to keep working in agriculture for several years. Eventually, they could apply to become U.S. citizens.

Edible Cutlery Developed in India

Some day farm wives carrying the noon meal to the field will not have to count the cutlery before returning to the house. Field workers will simply eat their knife, fork and spoon before returning to work. Thanks to a manufacturing process developed by Narayan Peesapaty, managing director of India’s B K Environmental Innovations, cutlery can now be made from sorghum.

Peesapaty got the idea for the edible cutlery after he observed plastic cutlery on an airplane. He began experimenting with various types of flour and ultimately settled on sorghum. He says the cutlery has added benefit as a nutritional source, citing sorghum’s rich calcium, iron, phosphorous, proteins, vitamins, minerals and fiber content.

Organizations Back Biotech Wheat

Organizations representing the wheat industry in the United States, Canada and Australia have announced they will work toward the goal of synchronized commercialization of biotech traits in the wheat crop. They agree it’s in the best interest of all three producer communities to introduce biotechnology in a coordinated fashion to minimize market disruption.

The issue of biotechnology in wheat has been a sensitive subject in some parts of the world - including major export markets like the European Union and Japan. There is currently no commercial production of genetically modified wheat anywhere in the world. Still - the groups agree it could be a significant component to tackling major issues facing wheat production.

The statement highlighted the importance of wheat to the food supply and declining acres in all three countries due in part to competition from crops that have the advantages of biotech traits. The statement also noted the slow growth trend of wheat yields compared to other crops - and the lack of public and private investment in wheat research worldwide.

Dairy Reduction Program Moves Forward

Cooperatives Working Together has tentatively accepted 388 bids in the first of a series of herd retirements planned over the next twelve months. Those 388 bids represent nearly 103-thousand cows and two-billion pounds of milk production capacity. This will be the largest single herd retirement carried out in the six year history of CWT.

Dairy farmers in 41 states submitted a total of 538 herd retirement bids. The bids selected range from farms with fewer than 50 cows to dairies with over five-thousand cows. Jerry Kozak - President and CEO of the National Milk Producers Federation - which administers the program - said the goal of the program is to adjust the nation’s dairy herd and better align supply and demand.

Starting this week - CWT field auditors will begin visiting the 388 farms whose bids were accepted. They will check their milk production records, inspect their herds and tag each cow for processing. Cows should begin moving off dairies later this month.

U.S., EU Sign Beef Deal

It's official - the U.S. has agreed to drop plans to impose additional retaliatory duties against the European Union's ban on beef fed with hormones in return for duty-free access for hormone-free U.S. beef. The deal was signed Wednesday. U.S.Trade Representative Ron Kirk notes the EU is one of the few markets to ban beef from cattle given growth-promoting hormones - despite the fact it's perfectly safe to eat - but said the agreement is seen as a pragmatic way forward.

The EU will provide duty-free access to 20-thousand metric tons of hormone-free beef from the U.S. for each of the next three years. That's reportedly in addition to an existing quota for 11-thousand-five-hundred tons for U.S. beef that carries a 20-percent tariff. The U.S. can maintain existing duties related to the EU's failure to comply with the World Trade Organization ruling against its hormone-fed beef ban.

In the fourth year - the duty-free quota can be increased to 45-thousand tons for one year. In return - the U.S. has agreed to drop all duties related to the WTO case. After that fourth year - the EU and U.S. can return to the table to discuss the possibility of continuing the agreement.

In the meantime - both sides have agreed not to take further action in the WTO dispute for the next 18 months. Either party can request a WTO dispute panel after that time - but the findings wouldn't be issued until the end of the fourth year of the agreement.

Lucas Has Cap and Trade Concerns

The Top Republican on the House Ag Committee is voicing his concerns about "Cap and Trade" contained in the American Clean Energy and Security Act. Ranking member Frank Lucas says - as a student of Agriculture economics, I have very serious concerns about Cap and Trade and its impact on rural economies. Lucas says Cap and Trade is nothing more than a national energy tax, and the effects will be far-reaching to businesses, consumers, and even more so to rural America.

Lucas sees Cap and Trade as a massive transfer of wealth in the name of saving the planet. He believes the resultant pot of money would be used to pay for nationalizing health care in the United States. He says that would – put every health care professional in the country to work for Uncle Sam.

The Congressman says there is little benefit for agriculture in Cap and Trade. But farmers will face more regulations and more cost piled on in virtually every farming or ranching activity they are involved in.

NFU Wants Action on Climate Change

National Farmers Union is calling on members of the House Agriculture Committee to remember the unique role America's farmers and ranchers can play as climate change legislation is considered in the coming weeks. In a letter sent to Chairman Collin Peterson, NFU President Roger Johnson expressed the organizations priorities and concerns relative to the cap and trade section of the American Clean Energy and Security Act of 2009.

Johnson said failure to pass climate change legislation could lead to regulation of greenhouse gas farm emissions by the Environmental Protection Agency. He warned - a purely regulatory approach to addressing greenhouse gas emissions will bring all of the downside of increased energy inputs and none of the upside of carbon offset opportunities. Balancing goals with impacts is a difficult task, yet, he says, it is imperative for Congress to act.

NFU policy supports a national, mandatory carbon emission cap and trade system, provided the U.S. Department of Agriculture is granted control of the agriculture offset program; early actors are recognized; no artificial cap is placed on domestic offsets; carbon sequestration rates are based on science; and producers are permitted to stack environmental benefit credits.

China Investing in Agriculture Production

China’s State Council says China has earmarked about 439-million dollars to support the large-scale breeding of pigs and cows in a bid to stabilize agricultural development and help raise farmers' incomes. The cabinet, urged governments at all levels to put into effect all subsidy and stimulus policies regarding pig and cow breeding.

The director of China’s rural development research institute of the Chinese Academy of Social Sciences said the announcement will help stabilize pork prices, amid fears of the AH1N1 flu. Earlier this month, pork prices in three of the biggest markets in south China's Guangzhou dropped significantly.

Further, the State Council said it plans to build a grain reserve capacity of 15 million tons, oil reserve of 1.75 million tons, sugar reserve of 400-thousand tons, and cotton reserve of 500-thousand tons within two years.

USDA Announces Peanut Loan Rates

USDA's Commodity Credit Corporation has announced the 2009-crop loan rates for four types of peanuts. The rates take effect Aug. 1, 2009, the beginning of the peanut crop year. CCC computes the 2009-crop peanut loan levels and grades based on the type, quality and location of this year's peanut crop.

For each percent of Sound Mature Kernels in a ton of peanuts, plus each percent of Sound Splits, the loan levels are:
Runner-type peanuts $4.852 per percent
Spanish-type peanuts $4.828 per percent
Valencia-type peanuts $5.205 per percent
Virginia-type peanuts $4.949 per percent
CCC uses these base levels to calculate discounts.