Effects of Proposition 2 Grow

The seed planted by the Humane Society of the United States in California last November is growing several new offshoots. Since voters approved Proposition 2 in November - several measures have moved quickly from one chamber to the other. Others are now working through committees. In fact - the California Senate Appropriations Committee has now approved legislation that would limit the use of antibiotics by licensed veterinarians to prevent and control disease in animal agriculture.

One California Senator says the legislature is undergoing a monumental shift in attitudes - saying Prop. 2 changed a thought process. And an Assembly Member that didn’t even support Proposition 2 says the voters spoke loudly and the legislators need to listen. That’s why he introduced a measure to require all eggs sold in California come from chickens able to stretch their wings without touching a wall. That measure was passed by the Assembly shortly after legislation to ban tail docking was approved in the Senate.

Humane Society of the United States President Wayne Pacelle says it took 100 years to get farm animal legislation moving - but just 10 minutes to get these bills. Elsewhere in the U.S. - Maine recently passed a ban on veal and gestation crates and it’s been reported HSUS will pursue a voter initiative similar to Proposition 2 in Ohio - and is pushing for one in New York.

USTR Ron Kirk Travels to Russia to Discuss Trade Issues

U.S. Trade Representative Ron Kirk travels to Russia today (June 3rd) for his first meeting with senior government officials from Moscow. Kirk will participate in a dialogue with U.S. and Russian business leaders to discuss deepening U.S. and Russia commercial ties. Kirk will also meet with senior officials to discuss bilateral trade issues - including Russia’s continued bans on U.S. pork, beef and poultry products. Russian authorities haven’t indicated if they are willing to ease their restrictions.

On May 22nd – speaking to the U.S. Meat Export Federation – Kirk promised to press Russia on the meat issue. He told the USMEF that one problem facing U.S. pork exports to Russia is Russia’s application of sanitary measures that aren’t based on international standards. During the last year - Kirk said the problem has resulted in the delisting of many U.S. facilities that export to Russia.

Kirk is also expected to discuss Russia’s application to join the World Trade Organization with European Union Trade Commissioner Catherine Ashton during this week’s St. Petersburg International Economic Forum. Russia is the last major economy in the world not part of the WTO.

USDA Secretary Vilsack Encourages Skeptics to Embrace Proposal

Before traveling to Indiana for another rural community forum - U.S. Ag Secretary Tom Vilsack was in Illinois - where he urged nearly 200 people to embrace the proposal to cap carbon emissions for its potential opportunities. That’s despite fears the plan will drive up costs. Vilsack says he understands the skepticism – but believes farmers might find they can make money if they’re compensated for their changes.

The Obama administration and congressional Democrats are trying to establish a system to cap carbon emissions. The plan approved by the House Energy Committee last month would allow polluters who couldn’t come in under the cap to purchase credits in an open market. Some ag groups aren’t happy with the bill because it isn’t more clear about allowing farmers to sell emissions credits. But Vilsack says he believes the plan will be more specific by the time it gets through Congress. The Secretary urged people not to be fearful of this future – but to embrace it.

NFU-Led Coalition Urges House to Consider Climate Change Provisions

Speaking of cap and trade - National Farmers Union – along with the National Corn Growers Association, the National Milk Producers Federation and others – urged House leadership to address the beneficial role ag can play in climate change legislation. The organizations sent a letter to Speaker of the House Nancy Pelosi and House Majority Leader Steny Hoyer Tuesday stating that improvements to the climate change bill passed by the House Energy Committee are needed to ensure ag’s participation.

The groups outlined a number of priorities for consideration including granting USDA control of the agricultural and forestry offset program, basing offset credits for carbon sequestration rates upon science and making sure no artificial cap is placed on domestic offsets. NFU President Roger Johnson says enacting a robust agricultural offset program will allow producers to mitigate some of the increased energy input costs a cap and trade program will bring. Johnson also says the efforts of agricultural producers need to be recognized in any climate change legislation Congress considers this year.

Biofuels Financial Conference to Focus on Financial State of Ethanol Industry

The 5th Annual Biofuels Financial Conference - in Minneapolis, Minnesota June 24th through 25th – will focus on the financial challenges and opportunities for the biofuels industry. The question - what is the ethanol industry’s financial future - will be asked and answered by three U.S. ethanol organizations. Growth Energy CEO Tom Buis, Executive Director of the American Coalition for Ethanol Brian Jennings and Vice President of Industry Relations for the Renewable Fuels Association Jim Redding will discuss how the current financial landscape is affecting the ethanol industry now and in the future.

The event is sponsored by Christianson and Associates, PLLP, certified public accountants and consultants for the industry. According to John Christianson – participants will be educated on the current financial challenges and opportunities facing the industry and learn how to more effectively manage business during rough financial times. He notes this is a challenging time for the industry and all must learn how to manage in times of volatility.

For more information on the conference – visit www dot Christianson cpa dot com slash biofuels conference dot com (www.christiansoncpa.com/biofuelsconference.com).

Congress Back in Session

Congress is back in Washington for a four-week session. Democratic leaders will continue pushing ahead on sweeping global warming and health care legislation - but not before they quickly progress toward writing the 12 regular appropriations bills - negating the need for an omnibus spending bill for the first time since 2005. Asked about the chances of avoiding an omnibus bill - North Dakota Senator Byron Dorgan - a member of the Appropriations Committee - expressed hope it can be done.

House Appropriations Subcommittee markups of spending bills are expected to start as soon as next week (the week of June 8) and continue for another two weeks. The Senate Appropriations Committee plans to start subcommittee markups the third week of June.

New Resolution Raises Cattle Age Limits to Prevent BSE

According to the Associated Press – the World Organization for Animal Health (OIE) has adopted a resolution raising cattle age limits related to preventing BSE in international beef trade. Beef exports and imports previously were restricted to boneless beef from cattle younger than 30-months of age. Now exports and imports would be allowed for boneless beef from cattle of all ages. This change is expected to boost U.S. efforts to convince Japan - just declared a controlled-risk country for BSE last week - to get rid of restrictions on U.S. beef imports to those from cattle 20-months old or younger.

Positive Bovine TB Test in Nebraska

Nebraska’s tuberculosis-free designation from USDA is in jeopardy - as a beef herd in the Rock County area has tested positive for bovine tuberculosis. The herd has been quarantined and state and federal officials are trying to stem the spread of the disease. They also want to trace back to determine how the disease was introduced to the herd.

Nebraska Cattlemen Executive Vice President Michael Kelsey says it’s too early to know what the impact of this will be on the state’s roughly 10-billion dollar cattle industry given that the extent of the infection is unknown. But if Nebraska does lose its tuberculosis-free classification - producers shipping cattle to other states might have to prove their animals are disease-free. Kelsey says that’s an expensive proposition when margins are already tight.

Study Shows Impact of E15

According to a study released by the Food and Agricultural Policy Research Institute - increasing the amount of ethanol blended into the gasoline supply to 15-percent would have a minimal impact on ethanol, corn and food prices. In fact - the University of Missouri think tank says U.S. corn and fuel ethanol prices would rise by just four-cents each if the blend rate is increased. As for feed costs for livestock and dairy producers - the study expects an increase of just point-seven-percent. At the same time - the study shows the higher rate would help to increase farm income, cut crop subsidies by 20-million dollars a year and provide value to the nation’s economy.

At the request of five U.S. lawmakers - FAPRI examined the impacts of E15 and 10 other scenarios - including ending U.S. support for corn-based ethanol while retaining the federal mandate to use advanced biofuels. The full report is available at www.fapri.missouri.edu.

Growth Energy CEO Tom Buis says the study further reinforces that America’s farmers can produce enough corn to meet food and fuel needs without using additional land or disrupting the global food supply.

Minnesota Senate Seat in Court’s Hands

The fate of a former Senate Ag Committee member is now in the hands of the courts - as the battle for the contested U.S. Senate Seat from Minnesota continues. Lawyers for Republican Norm Coleman and Democrat Al Franken made their cases before the Minnesota Supreme Court Monday. Coleman’s attorney is challenging a trial court decision that named Franken the winner by 312 votes out of 2.9-million cast - claiming thousands of Minnesota absentee voters have been disenfranchised due to inconsistent standards the counties used for counting absentee ballots and exacerbated by court rulings. To remedy that problem - the Coleman team recommended counting thousands more absentee ballots that substantially complied with voting laws. Franken’s legal team has held that Coleman’s challenges are without merit.

The five Minnesota Supreme Court justices - two recused themselves in the case after sitting on the canvassing board that oversaw the recount - will now begin deliberations. A ruling could come in days or weeks. Franken declared victory after a trial court ruled in April. That reinforced the results of a hand recount that gave Franken a 225-vote lead.

Beef Recalls Announced

USDA’s Food Safety and Inspection Service has announced that two companies - one in Illinois and another in Idaho - have issued beef recalls. Holten Meat Incorporated - based in Sauget, Illinois - has recalled about 241-thousand pounds of ground beef product that may contain foreign materials. XL Four Star Beef, Incorporated in Nampa, Idaho has recalled about 14,500 pounds of beef primal and subprimal products that were imported from Canada and not presented for re-inspection upon entry into the United States.

The products from Holten Meat in Illinois were in 20-pound cases of "100% PURE GROUND BEEF BULK." Each case contains four five-pound Keeper Casing Chubs per box - which can be identified by the package code "12000" and the label code "1007982112000." The products were packaged for "...INSTITUTIONAL USE ONLY" - "NOT FOR RESALE."

Meanwhile - XL Four Star Beef recalled products were produced on May 22, 2009 and were distributed to various wholesalers in Arizona, California, Illinois, Missouri, Nebraska, New Jersey, New York and Oregon. The beef products were distributed only at the wholesale level before the recall - so none of the beef products would have reached consumers.

Both recalls are considered Class III recalls - which means the risk to health is low.