“USDA to Make Pork Purchase”
In Kansas City Wednesday, Ag Secretary Tom Vilsack told members of the National Association of Farm Broadcasting that USDA intends to purchase 82.6-million dollars worth of pork, cherry, plum and apple products for federal food nutrition assistance programs. The Secretary said, – these purchases will assist producers who are currently struggling due to depressed market conditions. He added, – today’s actions will help stabilize prices and markets, stimulate the economy, and provide high quality food to Americans in need of USDA’s nutrition assistance programs.
The bulk of those funds, 50-million dollars will purchase pork. The Secretary said the pork purchase will help farmers greatly reduce their sow herd in a market where production costs continue to exceed market value. And the tart cherry, dried plum and apple purchases will help alleviate the stress caused by higher inventories and low prices that farmers are receiving for their commodities.
Don Butler, President of the National Pork Producers Council, says – the pork purchase is an important step that will help our industry bring pork supply and demand back into balance and allow producers to continue providing consumers worldwide with economical, nutritious pork products.
Iowa Senator Chuck Grassley called the pork purchase a –win-win – situation for USDA that will provide the best bang for the taxpayers buck. Grassley noted, – it also provides pork producers, who have been feeling the pinch for far too long, with a market for their products.
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“Senator Wants Slaughter of Downer Cattle Stopped”
California Senator Dianne Feinstein has pledged to introduce new legislation that would close what she calls loopholes that allow the slaughter of downed calves. At the same time, she is asking USDA to more vigorously enforce federal laws which outlaw the inhumane treatment and slaughter of food animals. Feinstein says, – it is my belief that conditions in these plants reflect a system that accepts brutality. She wants to the department to hold the offenders within the industry and the Department accountable for their actions.
Present USDA regulations prohibit the inhumane slaughter of downed cattle. However, Senator Feinstein believes more can be done. Her new legislation will: 1/ Close any loopholes that allow for the continued slaughter of downed calves; 2/ Authorize new funding to hire additional inspectors, and; 3/ Create an Office of Humane Slaughter within the Food Safety Inspection Service.
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“More Doubt Cast Over Climate Change Legislation”
Indiana Senator Richard Lugar says – I don’t see any climate bill on the table right now that I can support. Lugar emphasizes that his constituents are more focused on the economy and did not see the bill authored by Foreign Relations Committee Chairman John Kerry and Senate Environment and Public Works Committee Chairman Barbara Boxer as politically viable. Lugar, the top Republican on the Foreign Relations committee, believes the Senate will have to – start from scratch – in terms of crafting climate legislation.
During a closed door session with United Nations Secretary General Ban Ki-moon, Kerry and others emphasized – that the United States was moving toward a mandatory cap on greenhouse gases linked to climate change. This was said despite the fact Kerry recognizes the uncertain political prospect of climate legislation at this point.
Ban expressed optimism that the United States could still play a key role in the Copenhagen talks beginning December 7th. He said – no country is more important than the United States in resolving these climate change issues.
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“Report: Cap-and-Trade Done Right is Good”
A University of Tennessee study states that under a properly constructed cap-and-trade program, net returns for virtually all major crops are positive. But, the study released by 25X’25, goes on to show that if carbon emissions are regulated by EPA, as prescribed under a 2007 Supreme Court ruling, net farm income will fall below baseline projections. The assessment was completed by the University of Tennessee’s Bio-Based Energy Analysis Group.
The report goes on to say that an operationally efficient cap-and-trade program that allows multiple offsets, including those for bioenergy crop production, while restricting the removal of crop residues to acceptable, environmentally beneficial levels, offers positive net returns for eight of the nine major crops analyzed. The report also reveals that at a carbon price of up to 27-dollars per metric ton – no cropland is expected to be converted to forests. The report also says, in fact, no major shifts in commodity cropland use are expected under a properly constructed cap-and-trade system.
Bart Ruth, policy chairman for 25X’25 says – the study has found that income from offsets and from market revenues is higher than any potential increase in input cost, including energy and fertilizer, if cap-and-trade is done right. Ruth says, – the study provides clear evidence that EPA regulation, as dictated by the Supreme Court, could subject agriculture to higher input costs. And there will be no opportunity for farmers, ranchers and forestland owners to be compensated for the greenhouse gas reduction services they provide.
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“EPA May Miss Deadline on Blend Wall”
The Environmental Protection Agency is not ready to move – the blend wall. Statute requires EPA to make a decision no more than 270 days from when the waiver request was filed, in this instance, by December 1. EPA’s public comment period on the requested change closed July 20. For now, it is being reported that EPA Administrator Lisa Jackson says the agency may not make a final decision by then.
Jackson said more time is needed because EPA is still reviewing the test results on how the higher blend rate would affect engines. These tests need to be completed on a wide variety of engines, including: not only cars and trucks but also smaller engines including snowmobiles, motor boats and lawnmowers. There have been some concerns about the effect of higher blends on the smaller engines.
At the beginning of March, Growth Energy and 54 ethanol manufacturers requested that EPA increase ethanol blend levels in gasoline to 15 percent. Experts say raising the blend level to 15 percent will increase the potential market for ethanol by approximately 20 to 50 percent from current levels. There is a chance EPA may take a more cautious approach to the blend level and approve a 12 percent level. Currently ethanol can be blended up to only 10 percent.
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“Secretary Reports on Commodity Promotion Programs”
Agriculture Secretary Tom Vilsack told Farm Broadcasters meeting in Kansas City Wednesday that 70 U.S. trade organizations received more than 234-million dollars in Fiscal Year 2009 to help promote American food and agricultural products overseas. The Secretary noted, – agricultural trade is absolutely crucial to the U.S. economy and providing this funding to U.S. organizations during these difficult economic times will help open new global markets for American food products. The funding was allocated under the Market Access Program and the Foreign Market Development Cooperator Program.
The Market Access Program uses funds from USDA’s Commodity Credit Corporation to share the costs of overseas market development and promotional activities with U.S. nonprofit agricultural trade organizations, state regional trade groups, and cooperatives. Activities conducted with MAP funding include market research, consumer promotions for retail products, technical capacity building, and seminars to educate overseas customers.
Under the FMD program, USDA’s CCC establishes a partnership with nonprofit U.S. agricultural trade organizations. Program activities focus on reducing market impediments, improving the processing capabilities of importers, modifying restrictive regulatory codes and standards in foreign markets, and identifying new markets or uses for U.S. products.
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“USAID Appointee Faces Challenges”
Some are questioning if Dr. Rajiv Shah will succeed as head of the U.S. Agency for International Development. Some lawmakers see that vacancy as a – glaring vacancy – on a key foreign-policy front. Development experts praised the young doctor but said he needs more authority to revive the beleaguered agency, known as USAID. J. Brian Atwood, who led USAID in the 1990s, says – I hope he has assurances he’ll have the authorities he needs to get a very difficult job done. The agency has been weakened in recent years as its budget and policy functions have been folded into the State Department.
President Obama, who appointed Shah, has pledged to double foreign assistance to 50-billion dollars a year, make economic development a pillar of his strategy in Afghanistan and push for a 20-billion dollar program in conjunction with other countries to fight hunger.
Shah’s nomination, which must be approved by the Senate, comes as the White House and the State Department are studying how to redesign the U.S. aid system. At the same time, Congress is considering overhauling the 1960s-era legislation governing assistance.
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“Minnesota Bean Growers Leave U.S. soybean Federation”
The Minnesota Soybean Growers Association has voted to walk away from its affiliation with the U.S. Soybean Federation. Lance Peterson, USSF’s first president and an MGSA past president, told Agri-Pulse, – the Minnesota group saw no reason to belong to the USSF because the federation had accomplished its primary task of supporting the national soybean checkoff program during USDA’s Request for Referendum poll. The Minnesota group is re-growing its roots with the American Soybean Association.
Peterson said – Minnesota Soybean Growers now believe it’s more important to focus on soybean policy issues and ASA is better equipped to handle the – unprecedented – number of policy and legislative challenges confronting Minnesota soybean farmers – ranging from climate change to water quality to transportation.
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