The U.S. House of Representatives passed sweeping Global Climate Change legislation late on Friday afternoon by a vote of 219-212.
The National Farmers Union was behind the package’s passage. NFU President Roger Johnson said a strong offset program and the recognition of early actors will ensure America’s farmers and ranchers can be a part of the climate change solution. But the American Farm Bureau Federation sent a letter to each member of the House Thursday - stating the bill would unquestionably impose enormous costs on the American economy - including agriculture.
But according to a Farm Bureau economic analysis net farm income will decline by five-billion dollars a year by the year 2020 at a minimum. AFBF President Bob Stallman said those estimates don’t begin to tell the story of what will happen when the program mandated by this legislation fully takes hold.
Farm Bureau is concerned because they believe the bill would result in a net economic cost to farmers with little or no environmental benefit. In addition - the group says it creates an energy deficit for the United States by curtailing the use of fossil fuels without supplying any realistic alternative to make up the lost energy.
Friday, June 26, 2009
Farm Bureau Says It’s Time to Implement Farm Bill
Representatives for the American Farm Bureau Federation, National Corn Growers Association, National Cotton Council, National Association of Wheat Growers and National Farmers Union all testified before a House Ag Subcommittee Wednesday to review the implementation of the 2008 Farm Bill. Farm Bureau President Bob Stallman told lawmakers it’s time to implement the bill and outlined several components of the bill that need quick action - including disaster assistance, payment eligibility and the collaboration between the IRS and USDA. He said the farm bill touches the lives of every U.S. producer - and Farm Bureau wants to ensure their best interests are of paramount importance during the implementation process.
Stallman noted many farmers faced major disasters in 2008 - yet there are still no rules for the disaster program or a target date for when producers will receive assistance. He told the General Farm Commodities and Risk Management subcommittee these rules need to be released so those farmers who had their operations devastated can receive help.
Regarding payment eligibility - Stallman expressed that the rule put forward in late December needs to be fixed by 2010. While USDA is making progress - he said delays have left a great deal of uncertainty in the countryside this planting season. And when it comes to collaboration between the IRS and USDA - Stallman said Farm Bureau will be watching closely - noting any proposal allowing IRS information to become public through the Freedom of Information Act is unacceptable to the group.
Stallman noted many farmers faced major disasters in 2008 - yet there are still no rules for the disaster program or a target date for when producers will receive assistance. He told the General Farm Commodities and Risk Management subcommittee these rules need to be released so those farmers who had their operations devastated can receive help.
Regarding payment eligibility - Stallman expressed that the rule put forward in late December needs to be fixed by 2010. While USDA is making progress - he said delays have left a great deal of uncertainty in the countryside this planting season. And when it comes to collaboration between the IRS and USDA - Stallman said Farm Bureau will be watching closely - noting any proposal allowing IRS information to become public through the Freedom of Information Act is unacceptable to the group.
Ohio Lawmakers Back Constitutional Amendment on Animal Care
A proposed state constitutional amendment in Ohio is directed at the ballot initiative put forth in that state by the Humane Society of the United States. The amendment would establish a 13-member Livestock Care Standards Board. The board would be charged with developing and enforcing guidelines for livestock and poultry care. Joint resolutions proposed late last week in the House and Senate - if passed - would get the amendment before voters on November 3rd.
Ohio Governor Ted Strickland and legislators from both parties and representatives of animal agriculture support the amendment. However - the Humane Society of the United States says the amendment would thwart meaningful reform in the housing of farm animals. Paul Shapiro of HSUS says this is a constitutional power grab on behalf of big agribusiness.
Keith Stimpert of the Ohio Farm Bureau points out that the proposed animal care board would pull together the best expertise and operate in full public view. The Ohio Farmers Union expressed concern about creating a new board - citing another level of bureaucracy - and potentially a need for more funding at a time of severe state budget cuts.
The council would include three family farmers, two veterinarians, a food safety expert, a representative of a local humane society, two members from statewide farm organizations, the dean of an Ohio agriculture college and two members representing Ohio consumers. The director of the Ohio Department of Agriculture would serve ex-officio as a 13th member.
Ohio Governor Ted Strickland and legislators from both parties and representatives of animal agriculture support the amendment. However - the Humane Society of the United States says the amendment would thwart meaningful reform in the housing of farm animals. Paul Shapiro of HSUS says this is a constitutional power grab on behalf of big agribusiness.
Keith Stimpert of the Ohio Farm Bureau points out that the proposed animal care board would pull together the best expertise and operate in full public view. The Ohio Farmers Union expressed concern about creating a new board - citing another level of bureaucracy - and potentially a need for more funding at a time of severe state budget cuts.
The council would include three family farmers, two veterinarians, a food safety expert, a representative of a local humane society, two members from statewide farm organizations, the dean of an Ohio agriculture college and two members representing Ohio consumers. The director of the Ohio Department of Agriculture would serve ex-officio as a 13th member.
Senator Tester’s Request to Reconsider FMD Lab Relocation Greatly Appreciated
The Department of Homeland Security made a last-minute decision to uproot its Plum Island foot-and-mouth disease research facility off the coast of New York and move it to Manhattan, Kansas on January 12th. The Department asked for public comments on its proposal - but made its decision before the public comment period had closed. And when the Senate Committee on Homeland Security and Governmental Affairs considered President Obama’s nomination for Under Secretary for the Science and Technology Directorate last week - Montana Senator Jon Tester urged O’Toole to direct the department to reconsider its decision.
R-CALF USA President Max Thornsberry said the decision hasn’t been implemented yet and work is being done to encourage the Senate to take steps to reverse this decision before the health of the nation’s cattle is put at risk. Thornsberry says those who oppose the move are thankful Senator Tester has taken an important step to reverse this decision and are hopeful his actions will cause the new administration to act appropriately without need for congressional action.
R-CALF USA President Max Thornsberry said the decision hasn’t been implemented yet and work is being done to encourage the Senate to take steps to reverse this decision before the health of the nation’s cattle is put at risk. Thornsberry says those who oppose the move are thankful Senator Tester has taken an important step to reverse this decision and are hopeful his actions will cause the new administration to act appropriately without need for congressional action.
Study Shows Excessive Speculation in Wheat
A year-long bipartisan Senate probe shows excessive speculation in the wheat market helped fuel last year's record jump in prices. According to the report - large wheat purchase on the Chicago Board of Trade drove future prices higher, disrupted convergence between futures and cash prices and increased costs for farmers, the grain industry and consumers. The study was released by Carl Levin - Chairman of the Senate Permanent Subcommittee on Investigations - and Ranking Member Tom Coburn late Tuesday.
Levin calls it another case of speculative money overwhelming a market - and federal regulators failing to take the steps needed to protect the market. He says it's time for the Commodity Futures Trading Commission to change course, rein in commodity index traders and clamp down on excessive speculation that is disrupting commodity prices. CFTC Chairman Gary Gensler says the Commission will continue its own analysis and appropriate regulatory responses - and will give Levin's recommendations the utmost attention and careful consideration.
The study shows commodity index traders increased their holdings from about 30-thousand daily outstanding wheat contracts in 2004 to 220-thousand in mid-2008 at the largest wheat futures market - the Chicago Mercantile Exchange - before dropping to about 150-thousand contracts at year's end. Index traders - overall - held between 35 and 50-percent of the outstanding wheat contracts since 2006. While the contracts held by index traders soared - so did the gap between futures and cash prices - which rose from 13-cents a bushel in 2005 to $1.53 in 2008.
Levin calls it another case of speculative money overwhelming a market - and federal regulators failing to take the steps needed to protect the market. He says it's time for the Commodity Futures Trading Commission to change course, rein in commodity index traders and clamp down on excessive speculation that is disrupting commodity prices. CFTC Chairman Gary Gensler says the Commission will continue its own analysis and appropriate regulatory responses - and will give Levin's recommendations the utmost attention and careful consideration.
The study shows commodity index traders increased their holdings from about 30-thousand daily outstanding wheat contracts in 2004 to 220-thousand in mid-2008 at the largest wheat futures market - the Chicago Mercantile Exchange - before dropping to about 150-thousand contracts at year's end. Index traders - overall - held between 35 and 50-percent of the outstanding wheat contracts since 2006. While the contracts held by index traders soared - so did the gap between futures and cash prices - which rose from 13-cents a bushel in 2005 to $1.53 in 2008.
New Equipment From NSA Boosts ARS Sunflower Research
Researchers at the Agricultural Research Service Sunflower Research Unit in Fargo, North Dakota are looking for sunflowers that resist insects and two types of fungi using state-of-the-art equipment. SRU scientists - with researchers around the world - have found new sources of resistance to yield-reducing pests. One geneticist has found unique genes that form the basis for new sunflower breeding lines.
The geneticist has developed Red Sunflower Seed Weevil and Banded Sunflower Moth-resistant germplasm - and he will test experimental hybrids from these later in the year. This research is facilitated by the National Sunflower Association’s efforts and 400-thousand dollars worth of new, donated equipment.
The geneticist has developed Red Sunflower Seed Weevil and Banded Sunflower Moth-resistant germplasm - and he will test experimental hybrids from these later in the year. This research is facilitated by the National Sunflower Association’s efforts and 400-thousand dollars worth of new, donated equipment.
Tuesday, June 23, 2009
New Climate Change Cost Analysis Released
The Congressional Budget Office has added some fuel to the fire when it comes to the debate over the climate change bill moving in the U.S. House. The CBO reports the legislation would cost U.S. households an average of 175-dollars a year in 2020. While that undercuts frequent Republican claims that the bill would cost households as much as 31-hundred dollars a year. But according to Frank Lucas - Ranking Member of the House Ag Committee - the CBO study does not examine the full impact the entire bill will have on American families, farmers and small businesses. He says it only points out how much we still need to learn about the consequences of passing the measure.
The CBO found the gross annual cost of the bill in 2020 would be 110-billion dollars - mostly from the purchase of allowances and the financing of special projects in the farm and forestry sectors. The price of an allowance in that year would be 28-dollars per ton of emissions.
The report says about 47-billion would be allocated to industry - which would benefit the public indirectly through increased returns on investments. Another 10-percent would go to the federal government and states - while seven-percent would go toward overseas programs. Of the total cost - about 30-percent - or 28-billion dollars - would be allocated back to households directly.
The CBO found the gross annual cost of the bill in 2020 would be 110-billion dollars - mostly from the purchase of allowances and the financing of special projects in the farm and forestry sectors. The price of an allowance in that year would be 28-dollars per ton of emissions.
The report says about 47-billion would be allocated to industry - which would benefit the public indirectly through increased returns on investments. Another 10-percent would go to the federal government and states - while seven-percent would go toward overseas programs. Of the total cost - about 30-percent - or 28-billion dollars - would be allocated back to households directly.
Doha Talks to Move Forward
As the United States changed administrations - the pace of the Doha Round of trade talks slowed to a crawl. But - it appears they are now picking up steam - as several key WTO members - including India and the U.S. - have expressed a desire to return to full-scale negotiations. David Walker - the Chairperson of the negotiating group on agriculture - has announced that agriculture negotiations will return to a multilateral process - establishing a schedule for negotiations before the summer break in August and early September.
Last week in Washington - India’s Commerce and Industry Minister said New Delhi is ready for give and take without being frozen in pre-negotiating position. India and the U.S. had disagreements over the level of protection subsistent farmers should have from the opening of global markets.
Last week in Washington - India’s Commerce and Industry Minister said New Delhi is ready for give and take without being frozen in pre-negotiating position. India and the U.S. had disagreements over the level of protection subsistent farmers should have from the opening of global markets.
Key Planted Acreage Numbers Changing
USDA will release its planted acreage report next Tuesday (June 30). Seeing a fairly big switch from corn to soybean acres this spring - Informa Economics is estimating planted corn acreage will be 83.1-million - 1.9-million less than USDA's current estimate - and 800-thousand below Informa's May estimate. For soybeans - Informa's 78.8-million acre estimate is up 500-thousand acres from the May estimate - and 2.8-million acres above USDA's current forecast. Informa's spring wheat acreage estimate is 100-thousand acres more than USDA's estimate.
Meanwhile - Allendale estimates soybean acres will be up almost 2.5-million acres from USDA's March planting intentions - while corn acres will decline 211-thousand acres. Allendale's estimates are at 84.7-million acres for corn - and 78.4 million acres for soybeans. Allendale estimates a 302-thousand acre decline in wheat acres from the March intentions.
As for farm income - IHS Global Insight economist John Kruse says the outlook for 2009 has deteriorated significantly because of lower commodity prices and cash receipts. Total cash receipts are now expected to drop nine-percent from last year - with the reduction split evenly between the crop and livestock sectors. Last year’s income level was by far a record - so historically speaking - this year's farm cash receipts will still be relatively high.
Meanwhile - Allendale estimates soybean acres will be up almost 2.5-million acres from USDA's March planting intentions - while corn acres will decline 211-thousand acres. Allendale's estimates are at 84.7-million acres for corn - and 78.4 million acres for soybeans. Allendale estimates a 302-thousand acre decline in wheat acres from the March intentions.
As for farm income - IHS Global Insight economist John Kruse says the outlook for 2009 has deteriorated significantly because of lower commodity prices and cash receipts. Total cash receipts are now expected to drop nine-percent from last year - with the reduction split evenly between the crop and livestock sectors. Last year’s income level was by far a record - so historically speaking - this year's farm cash receipts will still be relatively high.
Nestlé Recall Causes Officials To Search Possibilities To Solve Mystery
E. coli 0157 has been linked to Nestlé’s refrigerated cookie dough - and scientists are trying to figure out how the bacteria could have ended up in a product that seems unlikely to contain it. Nestlé USA Vice President Laurie MacDonald says the company recalled all its refrigerated cookie dough products - about 300-thousand cases - within 24 hours of being notified of the suspected problem by FDA. They also suspended operations at the plant that makes the dough. It is important to note – however – that investigators haven’t confirmed the presence of the bacteria in any Nestlé product at this time.
The outbreak - which comes as the government is trying to reform the nation’s food safety system - has made at least 65 people in 29 states sick. More than two-thirds of the victims - according to the Federal Centers for Disease Control and Prevention – are under the age of 19. The appearance of E. coli 0157 in cookie dough is unusual – so investigators are looking at all possible factors, analyzing ingredients, the plant’s equipment, the health of workers and whether the facility is located near cattle. Officials are also considering the possibility that the dough may have been contaminated intentionally.
Nestlé has a good reputation within the food industry for manufacturing practices designed to prevent contamination and has cooperated fully with the investigation - according to Assistant Commissioner for Food Safety at FDA David Acheson.
The outbreak - which comes as the government is trying to reform the nation’s food safety system - has made at least 65 people in 29 states sick. More than two-thirds of the victims - according to the Federal Centers for Disease Control and Prevention – are under the age of 19. The appearance of E. coli 0157 in cookie dough is unusual – so investigators are looking at all possible factors, analyzing ingredients, the plant’s equipment, the health of workers and whether the facility is located near cattle. Officials are also considering the possibility that the dough may have been contaminated intentionally.
Nestlé has a good reputation within the food industry for manufacturing practices designed to prevent contamination and has cooperated fully with the investigation - according to Assistant Commissioner for Food Safety at FDA David Acheson.
Lucas Speaks Out Against Climate Change Bill, Process
The Ranking Member of the House Ag Committee - Frank Lucas - notes the National Pork Producers Council is just one of the latest agriculture groups publicly expressing opposition to the Waxman-Markey legislation. He says the list of ag groups opposed to the climate change bill has grown from 23 to 115 in just a month's time. He says it's clear the ag community doesn't believe this bill is in the best interest of farmers and ranchers. Lucas joined the Ranking Members of the seven other committees with jurisdiction over the bill for a press coference to oppose efforts by Democratic leaders to block full and open debate on the measure.
During the press conference Friday - Lucas pointed out the agriculture committee has had one hearing on this bill without a markup in sight. He says the eight witnesses at that hearing - covering a variety of rural interests - did not endorse the bill as it currently reads. Even Ag Secretary Tom Vilsack - he noted - called the bill a work in progress. According to Lucas - this is not the way you create law.
During the press conference Friday - Lucas pointed out the agriculture committee has had one hearing on this bill without a markup in sight. He says the eight witnesses at that hearing - covering a variety of rural interests - did not endorse the bill as it currently reads. Even Ag Secretary Tom Vilsack - he noted - called the bill a work in progress. According to Lucas - this is not the way you create law.
Crapo Intends to Stand in Way of Clean Water Act
Shortly after the Clean Water Act was passed out of the Senate Environment and Public Works Committee last Thursday (June 18) - Senator Mike Crapo placed a “hold” on the bill. Crapo voted against the bill in committee and has now said he plans to use every tool and privilege afforded to slow - if not stop - the bill.
The legislation would allow the U.S. government to regulate virtually all interstate and intrastate waters and their tributaries. This would include almost every location where water is held or flows. Crapo says the language in the bill does more than restore the regulatory environment which existed prior to a Supreme Court ruling.
Another Republican and Ranking Member of the Committee - James Inhofe of Oklahoma - said Democrats are moving a bill that amounts to the biggest bureaucratic power grab in a generation. He said it’s directed right at America’s heartland.
The legislation would allow the U.S. government to regulate virtually all interstate and intrastate waters and their tributaries. This would include almost every location where water is held or flows. Crapo says the language in the bill does more than restore the regulatory environment which existed prior to a Supreme Court ruling.
Another Republican and Ranking Member of the Committee - James Inhofe of Oklahoma - said Democrats are moving a bill that amounts to the biggest bureaucratic power grab in a generation. He said it’s directed right at America’s heartland.
Sow Reduction Program Stalled
The producer supported Producer Retirement Program - which was designed to reduce the U.S. sow herd - has stalled. According to Chuck Wirtz - Chairman of the Board of Directors of PRP - most producers with sows are no longer in a financial position to support the program - which was set to begin June 17th.
The PRP was designed to supplement the cull price that the members would otherwise receive for their sows if they decided to exit sow production for two years. The retirement program was dependent on enough pork producers with sows signing up and paying a 20-dollar per-sow subscription.
Meanwhile - Secretary of Agriculture Tom Vilsack says his department is in the process of taking a look at ways they can be of assistance. The Secretary admits they are a bit limited in terms of capacity to purchase pork because of restrictions that have been placed on use of funds by Congress. Still -the Secretary says they will continue to look for ways to help pork producers.
The PRP was designed to supplement the cull price that the members would otherwise receive for their sows if they decided to exit sow production for two years. The retirement program was dependent on enough pork producers with sows signing up and paying a 20-dollar per-sow subscription.
Meanwhile - Secretary of Agriculture Tom Vilsack says his department is in the process of taking a look at ways they can be of assistance. The Secretary admits they are a bit limited in terms of capacity to purchase pork because of restrictions that have been placed on use of funds by Congress. Still -the Secretary says they will continue to look for ways to help pork producers.
Energy Legislation Approved by Senate Committee
The Senate Energy Committee voted 15 to 8 to approve draft comprehensive energy legislation Wednesday. Four Republicans - including the Ranking Member - supported the measure - while two Democrats opposed it. The measure would mandate a sharp increase in electricity generated from renewable sources, open new areas of the Gulf of Mexico to oil and gas drilling and make it easier to site power transmission lines.
Congressional Quarterly reports the bipartisan support is a result of compromises engineered during a series of markups by Chairman Jeff Bingaman. While the bill isn’t expected to reach the floor until the fall - there’s already speculation the compromises could easily unravel. Senate Majority Leader Harry Reid has signaled hope to combine the bill with climate change legislation the Environment and Public Works Committee aims to mark up this summer.
The key provision of the measure would mandate that 15-percent of the nation’s power come from renewable sources like wind and solar by 2021 - including up to four-percent from improved efficiency. That’s lower than the President’s preferred mandate of 25-percent by 2025 and the House Energy’s standard of 20-percent by 2020.
Congressional Quarterly reports the bipartisan support is a result of compromises engineered during a series of markups by Chairman Jeff Bingaman. While the bill isn’t expected to reach the floor until the fall - there’s already speculation the compromises could easily unravel. Senate Majority Leader Harry Reid has signaled hope to combine the bill with climate change legislation the Environment and Public Works Committee aims to mark up this summer.
The key provision of the measure would mandate that 15-percent of the nation’s power come from renewable sources like wind and solar by 2021 - including up to four-percent from improved efficiency. That’s lower than the President’s preferred mandate of 25-percent by 2025 and the House Energy’s standard of 20-percent by 2020.
Brazil Conducts Sting at LBS and Others
JBS SA - the world's biggest beef processor - and others are under investigation by Brazil's federal prosecutor's office in a widespread corruption case. Several meatpackers and leather and hide companies are part of the investigation - which began about a year ago. The public relations department of Brazil’s federal prosecutor's office released a statement saying several people were being rounded up and held in police custody following police sting operations. The prosecutor's office said it was investigating the bribing of public officials, racketeering, corruption, fraud and collusion.
Wednesday - JBS S.A. officials denied the company is involved in crimes associated with the Brazilian government’s probe. JBS said it cooperated with the police - which collected documents including audit reports and copies of plant operations licenses. The company said no electronic data storage devices, computer or any other kind of equipment was seized - due to a lack of evidence that any crime was committed.
Wednesday - JBS S.A. officials denied the company is involved in crimes associated with the Brazilian government’s probe. JBS said it cooperated with the police - which collected documents including audit reports and copies of plant operations licenses. The company said no electronic data storage devices, computer or any other kind of equipment was seized - due to a lack of evidence that any crime was committed.
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