“Wall Street Reforms Signed Into Law”
President Obama has signed the Dodd-Frank Wall Street Reform Act into law – legislation that includes strong reforms of the derivatives market authored by Senate Ag Committee Chairman Blanche Lincoln. Obama says the recession America has faced over the past two years was caused by various factors – but a primary cause was a breakdown in the nation’s financial system. He says the reform will help foster innovation, make sure everyone follows the same rules and demand accountability and responsibility from everyone. He says it will also provide certainty to everyone – including farmers.
The President says the reforms represent the strongest consumer financial protections in history. Those protections will be enforced by a new consumer watchdog looking out for the people as they interact with the financial system. He says that’s great for consumers and the economy – and adds the reforms will help lift the U.S. economy and lead everyone to a stronger, more prosperous future.
Senate Ag Chairman Lincoln says she is proud to have played a major role in the historic legislation that provides accountability and transparency to Wall Street and brings real reform to the nation’s financial markets.
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“Senate Ag Committee Discusses Farm Bill, Renewable Energy”
The Senate Ag Committee held a hearing Wednesday on the implementation of energy and rural development programs in the 2008 Farm Bill. Ranking Member Saxby Chambliss says the goal should be to ensure farm bill programs are helping deliver new opportunities to citizens through the rural development and energy tools in order to keep a strong foundation for rural America. Chambliss says the USDA’s Rural Development program’s grant and loan programs are a crucial part of the support mechanism the government uses to complement investments and local efforts in the private sector – and it’s important to reflect on how the programs are working before considering changes to the next farm bill.
Senate Ag Committee Chairman Blanche Lincoln says it’s critical to effectively utilize every tool available to create jobs, put the economy back on track and reduce the nation’s dependency on foreign oil. She says a flourishing renewable energy industry will bring good paying jobs and investments to rural communities all over the country. She says it’s also necessary to develop biofuels and biomass energy policies that work for rural America. Lincoln asked her colleagues to imagine investing the 27.5-billion dollars the U.S. spent on foreign oil in just one month this year in renewable and clean energy development instead.
U.S. farmers, ranchers and foresters are innovative and eager to expand their role to provide an inexpensive, sustainable and safe supply of renewable fuel and energy – according to Lincoln – but they need new markets and new opportunities to help ensure prosperity in the nation’s rural communities. That is why she says it’s important to ensure the programs enacted in the farm bill achieve those goals. The Chairman also states rural America won’t be able to compete with the rest of the country without broadband Internet.
Lincoln says the farm bill is the most important piece of legislation Congress considers on behalf of rural America. She says nothing is more important than empowering the nation’s rural communities and ensuring future generations have the opportunity to enjoy the quality of life rural America offers.
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“Ag Subcommittee Reviews Specialty Crop and Organic Ag Programs”
Producers from operations of various sizes and growing a variety of products testified before the House Ag Subcommittee on Horticulture and Organic Agriculture Wednesday. The subcommittee was reviewing farm bill specialty crop and organic ag programs. Subcommittee Chair Dennis Cardoza says the hearing reminded him of the diversity of products and practices represented by the specialty and organic sectors of the nation’s ag industry. He says it’s important to address health and nutrition issues in the U.S. by increasing accessibility to healthy fruits and vegetables. The hearing – Cardoza says – made it clear there’s work to do – but we’re on the right track.
According to Ranking Member Jean Schmidt – it’s imperative to hear directly from growers – to understand what is working and what is not working. Given today’s regulatory burdens – Schmidt says programs in the farm bill will be even more important to helping the nation’s producers comply with potential federal mandates, remain competitive in the global marketplace and continue to supply the world with the safest and most plentiful and abundant food supply.
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“USDA Employees’ Resignation Center of Firestorm”
U.S. Ag Secretary Tom Vilsack has discussed a unique opportunity at USDA with the department employee forced to resign this week. Shirley Sherrod was in the hot seat because of a speech given at a past NAACP banquet. Video of Sherrod describing the first time she was faced with helping a white farmer save his farm caused quite a stir at USDA – and subsequently around the nation. But once the full story surfaced – Vilsack offered an apology – and in a briefing with reporters Wednesday afternoon – said he didn’t handle the situation well. He apologized for reacting too quickly and said he hopes Sherrod will stay with USDA. According to Vilsack – her experience, commitment and record of service at USDA would be invaluable to the department.
Vilsack said Shirley has a unique and compelling story to tell – as she and her family endured discrimination and overcame adversity. He said she has helped farmers who were struggling to keep their land, fought for women in need of social and economic justice and African-American men and women who faced discrimination. As USDA’s Georgia State Rural Development Director – Vilsack said she worked to promote economic opportunity for all people by enabling job creation and business growth. He added that she has shown tremendous character through the events of the last few days.
Sherrod had told a story of how she struggled with the fact that so many black people had lost their farmland – and she was faced with helping a white person save their land. Initially – she said she didn’t give him the full force of what she could do – and only gave him enough help to keep his case progressing. But she went on to say eventually his situation opened her eyes – that whites were struggling just like blacks – and helping farmers wasn’t so much about race but was about the poor versus those who have.
The white farming family that was the subject of the story stood by Sherrod. Eloise Spooner – the wife of farmer Roger Spooner of Iron City, Georgia – said they probably wouldn’t have their farm today if it hadn’t been for her leading them in the right direction. Spooner was hopeful Sherrod could get her job back.
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“Black Caucus Backs Fired USDA Employee”
It was the view of the Congressional Black Caucus that Agriculture Secretary Tom Vilsack should immediately reinstate Shirley Sherrod – the USDA employee he fired Monday because of a video in which she appeared to admit that she withheld assistance from a white farmer. Vilsack demanded that Sherrod resign after an edited version of the video was posted on a conservative blogger’s website.
Congressional Black Caucus Chairwoman Barbara Lee of California said Sherrod was clearly educating the public about the power of redemption. She said it was apparent Secretary Vilsack did not have all of the facts available to him and he overreacted. In a statement – Lee said the Congressional Black Caucus believed Ms. Sherrod was unfairly asked to resign – without due process – and should be reinstated immediately.
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“R-CALF Proposes Renegotiation of FTAs, Moratorium on Future FTAs”
R-CALF USA sent a letter to President Obama Tuesday saying the Free Trade Agreements between the U.S. and South Korea, Colombia and Panama must be renegotiated to incorporate provisions recognizing the unique characteristics of the U.S. cattle industry if the Administration is serious about revitalizing the largest segment of American ag. R-CALF CEO Bill Bullard says the FTAs are flawed – devoid of provisions essential to the economic well-being of producers – and likely will accelerate the contraction of the U.S. cattle industry and hollowing-out of rural communities across the nation.
R-CALF requests a moratorium on future FTAs and rejection of the aforementioned FTAs until the impacts current FTAs have on the profitability and viability of U.S. producers is assessed; the current standard of substantial transformation is revised; the disease import and food safety standards are reversed; rules including volume-based and price-based safeguards are incorporated; and cattle and beef are designated as like products. The letter states the U.S. International Trade Commission found the present, concentrated structure suggests processors can eventually pass most of any decrease in the price of wholesale beef on to cattle producers in terms of lower slaughter cattle prices – allowing beef packers to have power over the producers.
The letter also points out the South Korea FTA would allow cattle imported from China to be slaughtered in South Korea and the resulting beef would be eligible for duty free export to the U.S. – which Bullard says could put tremendous downward pressure on U.S. cattle prices. R-CALF states the current FTA for the U.S. and South Korea excludes cattle producers and benefits beef packers because it allows the packers to import cheaper cattle from Canada and Mexico and then export the beef to South Korea at a lower price. Bullard says the beef packers are the benefactors of current trade policies and practices – and he states they continue to exploit the hard-working men and women comprising the U.S. cattle industry.
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“Debate of Cattle and Beef Issues Dead Idea”
The debate proposed by a Nebraska radio station is not likely to happen. R-CALF USA CEO Bill Bullard accepted an invitation to debate the state of competition in the cattle and beef industries. But the three other cattle organizations invited say they will not participate in the proposed August program.
According to AgriPulse – American Meat Institute President Patrick Boyle said the issues that would be explored are best addressed by the larger producer community whose business models are at risk due to USDA’s recently proposed undue preference rule. The National Cattlemen’s Beef Association also declined to participate – and a spokesman for the National Meat Association said he wasn’t sure his group had been invited – but was certain they wouldn’t accept either.
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“More Farmland Owned by Foreign Interests”
USDA’s Farm Service Agency reports that through February 28th of 2009 – 22.2-million acres of U.S. agricultural land was owned in part by foreign persons. That’s an increase of 1.3-million acres from 2008. The annual FSA report shows that foreign persons have an interest in 1.7-percent of all privately held U.S. agricultural land and 0.98-percent of all land in the United States.
According to the report – 59-percent of all U.S. forestland has some foreign ownership. Fourteen-percent of the cropland and 27-percent of pasture and other agricultural land also has some foreign ownership. About one-third of that land is owned in part by Canadians. Thirty-percent of the owners are from Netherlands, United Kingdom or Germany. The states with the highest proportions of foreign owned agricultural land to all privately owned agricultural land are Maine, Hawaii, Washington, Nevada and Alabama.
Federal regulations require foreign investors who acquire, transfer or hold an interest other than a security interest in U.S. agricultural land to report such holdings and transactions to the Secretary of Agriculture. The data gained from these disclosures is used in the preparation of an annual report to Congress.
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“Milk Marketing Plan Reviewed”
The Food and Agricultural Policy Research Institute at the University of Missouri-Columbia says the National Milk Producers Federation’s proposal to replace dairy price supports with margin insurance should help reduce the financial severity of low margins and as such reduce some of the volatility in downside profitability the industry has experienced recently. FAPRI also believes that DMSP would provide a mechanism for the industry to correct excess supply periods but still allow supply growth to match growth in domestic and international markets.
FAPRI estimates the proposal would also reduce some of the high price periods that result after the loss of too many producers from the low margin period. Payments would be triggered under the Dairy Producer Margin Protection Program only when prices or returns are significantly below average. And it would provide a stronger safety net in extremely low margin events.
Compared with current dairy policy – the market effect of the program is expected to be small – FAPRI says – because its support provisions would kick in when prices or returns are well below average levels. Under the base plan it would provide more support when margins are exceptionally tight – but may provide less support than the current program when margins are higher.
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“EQIP Program Very Popular and Under Funded”
USDA’s Environmental Quality Incentives Program continues to be very popular among conservation minded land owners. During fiscal 2009 the program provided 731-million dollars in financial assistance for producer’s contracts. But applications worth an estimated 1.36-billion dollars went unfunded. Texas, California and Oklahoma led the nation in unfunded applications – accounting for almost 20-percent of the total.
Most EQIP payments cover up to 75-percent of the incurred costs and income foregone of certain conservation practices and activities. The 2008 Farm Bill authorized gradually increasing amounts for EQIP funding – reaching 1.75-billion in 2012. Appropriators have been below the bills targets. Senate Agriculture Committee Chairman Blanche Lincoln wants to use EQIP dollars to pay for increased child nutrition funding. That’s hasn’t gone over well with members of the conservation and environmental communities.
The possibility that funding for the EQIP and other conservation programs could be reduced has the National Association of Conservation Districts working to retain the funding commitment provided in the farm bill. At the same time – NACD says improving efficiency of current programs is also important. The administration wants to cut the Wetlands Reserve Program by 57-thousand acres, EQIP by 380-million dollars, the Farm and Ranch Land Protection Program by 15-million, Agricultural Management Assistance by five-million and the Wildlife Habitat Incentives Program by 12-million dollars.
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“NCBA Says Extended Comment Period on GIPSA Would Benefit All”
After the Livestock Subcommittee’s Hearing on the Farm Bill and the Grain Inspection, Packers and Stockyards Act – the National Cattlemen’s Beef Association is glad to see Congress bringing attention to the serious issue – according to NCBA Vice President of Government Affairs Colin Woodall. Woodall says while USDA officials stressed it’s only a proposed rule and the industry will be able to provide comments – they have yet to answer requests to extend the comment period. He states everyone would benefit from additional time to analyze and provide feedback on the complex rule no matter where they stand on the issue.
According to Woodall – marketing agreements have been the foundation for producer financing and producer profitability for more than 60-percent of beef marketed – and without them – all cattle could be valued on the average resulting in a generic market and product. He states history has proven generic products don’t meet consumer demand and without that demand – prices to producers fall. Woodall says the rule poses serious privacy concerns and provides no guarantee producers’ private information wouldn’t be exposed to the public and competitors. It also places producers in jeopardy of litigation by their competitors or the government – Woodall says – and NCBA doesn’t support litigation as a means of securing producer profitability.
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“Trout and Salmon Reproduction Breakthrough”
Agricultural Research Service scientists have discovered a method to efficiently and reliably produce fish with three sets of chromosomes instead of two sets – meaning the fish can’t reproduce. That would allow the energy from the food they eat to be used for growth. The goal for the scientists was to find a way to produce fish that grow faster on less feed and can’t reproduce in the wild. Scientists also found a way to validate chromosome status on 20 fish at a time. The study supports the USDA priority of promoting international food security.
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”NCBA to Present Lifetime Achievement Award at Upcoming Conference”
The National Cattlemen’s Beef Association will present its Lifetime Achievement Award to world-renowned cattle-care advocate Dr. Temple Grandin at its summer conference on July 31st. Grandin’s work has changed the way cattle handling facilities operate worldwide – with 50-percent of cattle on the U.S. and Canada being handled in equipment she created for meat plants. She has been active in developing animal welfare guidelines for the meat industry and also is a consultant for international companies including McDonald’s, Wendy’s International and Burger King. Grandin has been published in various industry publications and currently teaches animal sciences at Colorado State University.
Visit www.beefusa.org for more information on NCBA’s conference.
