All Ag News

AG NEWS 2010/07/26

“Support Remains to Do Something on Energy”

Senate leaders recognize they don’t have the votes to pass climate change legislation with a carbon cap or renewable electricity standard before the August recess – and so the hope of passing a comprehensive energy bill this summer is gone. But Senate Majority Leader Harry Reid does intend to act on energy. The items likely to find their way into the new bipartisan, energy-only measure will be popular ones supported by Senators on both sides of the aisle. Those items would include ways to address the Gulf of Mexico oil spill and relatively non-contentious energy initiatives – such as promotion of home energy efficiency and vehicles powered by natural gas. Reid says this isn’t the only energy legislation the Senate will do – but is what they can do now. He notes lawmakers are running out of time. Senate Democrats hope to find GOP support for the bill and pass it in the next two weeks.

President Obama says he will intensify efforts to find votes for climate legislation. But several Democrats – including Mark Pryor of Arkansas – note that past energy bills typically consumed three to six weeks of floor time. He says that kind of time just doesn’t exist this year.

Growth Energy CEO Tom Buis is hopeful the Senate takes this opportunity to add measures to reduce the nation’s addiction to foreign oil. He says Growth Energy urges the Leader and his fellow Senators to include measures to build out the infrastructure for greater use of home-grown ethanol. He notes ethanol is America’s fuel – grown by America’s farmers and produced by American workers – it is the only viable alternative we have today to imported oil.

Speaking of Growth Energy – the National Sorghum Producers want policymakers to evaluate the group’s Freedom Fueling Plan – which outlines the process of redirecting a portion of the ethanol tax incentives to build out a critically needed renewable fuels infrastructure. NSP encourages Congress and the ethanol industry to develop a plan that provides stable policies – yet looks at the long-term needs of the industry.
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“Committee Could Cut Ethanol Subsidy”

The House Ways and Means Committee is considering a 20-percent cut in the ethanol subsidy that is otherwise set to expire this year. A committee spokesman says a reduction of the tax credit from 45-cents to 36-cents per gallon was among ideas the panel was considering for a green-energy bill. The subsidy would be extended through next year. Even though a draft of the proposal will soon be released – Committee action is not expected until September.

Groups including the Renewable Fuels Association and the National Corn Growers Association say they want the existing tax credit extended. However – Democratic Representative Leonard Boswell says it may come down to either extending the ethanol credit another year at 36-cents or not extending it at all. But Chairman of the House Agriculture Committee Collin Peterson says a cut of that size could doom the bill.
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“Senators Urge USDA for GIPSA Comment Period Extension”

Senate Ag Committee Chairman Blanche Lincoln, Ranking Member Saxby Chambliss and 15 other Senators sent a letter to Ag Secretary Tom Vilsack Friday asking for a 120-day extension on the comment period for the Grain Inspection, Packers and Stockyards Administration’s proposed rules. Lincoln says the proposed rule will have a tremendous impact on rural communities, the ag industry and the economy as a whole – so it’s only fair to allow adequate time for all stakeholders to be able to review and comment on the changes that will impact how they do business.

The letter states the Packers and Stockyards Act is one of the most important laws governing competition within the livestock industry. The Senators are concerned USDA is missing a unique opportunity to hear directly from the various stakeholders on the issue. They believe USDA could benefit from information gathered during the listening sessions and think the comment period should extend beyond the December 6th conclusion of USDA/DOJ workshops in order to review all comments gathered in the USDA and Justice Department listening sessions.

The letter also states that GIPSA’s proposed rules significantly change the way the Act is interpreted – and the impact of the rule on producers will vary according to various factors. Chambliss says the proposal goes well beyond the requirements of the farm bill, exceeds USDA’s legislative authority and will have consequences for the livestock and poultry producers it is designed to protect. He is concerned the proposal will dramatically alter livestock and poultry production – harming the farm and ranch families that the rule is meant to protect. Chambliss says USDA should carefully consider the issues as it moves forward and provide an extension so those affected have an opportunity to offer their perspective on the proposal.
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“Senators Say EPA’s Dust Regulation Proposals Defy Common Sense”

A group of Senators – led by Iowa Senator Chuck Grassley – sent a letter to Environmental Protection Agency Administrator Lisa Jackson Friday – calling on her to use common sense on future dust regulations and reminding her of the Administration’s focus on rural America and the negative impact the regulations could have on Main Street. The Senators say the second draft recently released would establish the most stringent and unparalleled dust regulation in U.S. history if approved. Though they respect the efforts for a clean and healthy environment – the Senators say that shouldn’t come at the expense of common sense.

The letter states the EPA’s identified levels for particulate matter will be extremely burdensome for farmers and livestock producers to attain. The Senators point out dust is a naturally occurring event – whether its livestock kicking up dust, soybeans being combined on a dry day in the fall or driving a car down the gravel road. Producers could potentially be fined for not meeting the particulate matter standards while still practicing good management practices on their soils – according to the Senators. If the rule is published – they say economic development could slow down and significant costs to farmers and businesses could be imposed. Grassley says he is greatly concerned that this puts the U.S. one step closer to imposing more regulations on farmers.
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“WTO Report Indicates Cooperation is Necessary”

Trading in natural resources creates a great many challenges both for importing and exporting countries. Governments need to cooperate more intensively if these challenges are to be adequately addressed. In the WTO flagship publication World Trade Report 2010 – WTO economists maintain that in a world where scarce natural resource endowments must be nurtured and managed with care – uncooperative trade policies could have a particularly damaging effect on global welfare.

The Report examines the characteristics of trade in natural resources, the policy choices available to governments and the role of international cooperation – particularly of the WTO – in the proper management of trade in this sector. WTO Director-General Pascal Lamy says he not only believes there’s room for mutually beneficial negotiating trade-offs that encompass natural resources trade – but also that a failure to address these issues could be a recipe for growing tension in international trade relations.

Lamy says well designed trade rules are key to ensuring that trade is advantageous – but they are also necessary for the attainment of objectives such as environmental protection and the proper management of natural resources in a domestic setting.
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“USDA Foreign Ag Services Under Secretary Explains Keys to Growing Exports”

USDA’s Under Secretary for Farm and Foreign Agricultural Services Jim Miller told the U.S. Grains Council Board of Delegates at its 50th annual meeting that the U.S. has been in an enviable position with its ability to post an ag trade surplus year after year. He says the trend will continue in the 2010 fiscal year – when the ag trade surplus is projected to be nearly 28-billion dollars. That would be the second largest in history. Miller states the agriculture trade recovery – from the economic downturn – is well underway – with ag exports estimated to reach 104-billion dollars this year.

Miller says exports are key to growing the economy and aiding the economic recovery because jobs will be created when exports increase – that is why the Obama Administration has launched the National Export Initiative with a goal of doubling exports by 2015. He says there are four areas in ag where a renewed effort will pay dividends – one being market development programs like those by USGC. A budget request for increased market development funds has been sent to Congress – according to Miller – and he says USDA will be aggressive in making sure those funds are used in a way that allows efforts to maximize.

Miller also states that bilateral and multilateral trade talks are important aspects that will benefit agriculture – along with ensuring the enforcement and compliance of current trade agreements. He says ag trade is dependent on the ability to market products that come from new technology – and that biotechnology is at the forefront of that agenda. Another way to boost ag exports Miller states is in the effort to help educate people, build infrastructure and promote free and open markets through the global hunger and food security initiative.
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“Colombia Ambassador: U.S.-Colombia FTA Needs to Be Ratified Soon”

U.S. ag exports to Colombia have significantly dropped due to the non-ratified free trade agreement between the U.S. and Colombia. That’s according to Carolina Barco – Colombian Ambassador to the United States. Barco says Colombia has a preference to the U.S. as a way to strengthen Colombia’s economy – but the lack of a ratified FTA with the U.S. definitely has a cost if it’s not carried out. Ag Exports to Colombia in 2008 were near 1.2-billion dollars – but they dropped to roughly 600-million dollars in 2009 – with corn and wheat seeing the biggest losses.

Barco says Colombian exports have tripled since 2002 – going from two FTA’s with five countries to currently 11 FTA’s with 47 countries. She points out that represents nearly 1.5-billion consumers. Barco says the sooner the U.S. and Colombia Trade Promotion Agreement is ratified – the better.
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“U.S. Exporters, Cotton Producers Welcome Pakistani, Bangladeshi Manufacturers”

Textile executives from textile mills in Bangladesh and Pakistan are touring the U.S. Cotton Belt to familiarize themselves with cotton production, processing and marketing in the U.S. and to meet with U.S. exporters. The trip started yesterday (Sunday, July 25th) and ends Monday August 2nd. The purpose of the tour and all COTTON USA Special Trade Missions is to build trading ties between the U.S. cotton industry and key textile manufacturing leaders – the main goal being to help U.S. cotton gain more market share across the world.

The U.S. supplies more than half of the cotton that the eight participating textile manufacturers from the two countries import each year – according to Cotton Council International President Wallace Darneille. He says the tour presents a wonderful opportunity to give the important cotton customers an intimate look at the industry infrastructure of the U.S. and commitment to reliably supplying quality fiber to the world marketplace. The touring manufacturers are important because they represent some of the largest cotton consumers in the world – Pakistan being 3rd largest and Bangladesh the 6th largest.
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“Filter Can Reduce Storm Water Runoff”

Agricultural Research Service scientists and their collaborators have improved on an existing method for removing contaminants from storm water runoff from point sources such as construction sites and urban landscapes. By using “filter socks” containing compost tucked into mesh tubes – researches have been able to capture some of the silt, heavy metals, fertilizers and petroleum products washed from compacted surface areas into nearby streams and rivers.

The work was based on how waste water treatment plants use flocculation agents to help sediments and pollutants form clumps large enough to be filtered out of the water even when the substances are in a dissolved state. The team added flocculation agents to the compost socks and then ran laboratory tests to see how well the socks trapped.

The ARS researchers found that the compost socks with flocculation agents removed 10-percent more of the ammonium nitrogen; 24-percent more of the E.coli bacteria; 15-percent more of the motor oil; and 11-percent more of the available gasoline.
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“FAS Review Gives USMEF Highest Rating”

The U.S. Meat Export Federation’s program and Unified Export Strategy for 2010 have been rated as highly effective – according to Foreign Agriculture Services Cooperator Programs Director Bonnie Borris. She says USMEF does an excellent job of adjusting to market conditions and making changes to marketing plans accordingly. FAS reviews participants in programs for USDA Foreign Market Development and Market Access Program funds.

USMEF President and CEO Philip Seng says the feedback is great news for USMEF members because MAP and FMD funding are key components of the revenue mix that enable USMEF to multiply the value and strength of the Checkoff dollars of producers.

According to Seng – USMEF anticipates spending roughly 18.7-million dollars from USDA’s MAP and FMD programs this fiscal year – with most of the funds applied to programs supporting beef and pork exports. Those funds are combined with funding from the Beef Checkoff and Pork Checkoff, sizable contributions from the Corn and Soybean Checkoffs and substantial foreign third-party contributions to USMEF promotions. The funding formula grows the purchasing power of the producers’ checkoff dollars to nearly 300-percent – with USDA, third-party contributors and Corn and Soybean Checkoff programs adding more than $2.99 for every one-dollar supplied to support USMEF’s programs.

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