“Cattle Checkoff Audit Lists Discrepancies”
The Cattlemen’s Beef Board released the final report of a routine compliance review of the National Cattlemen’s Beef Association (NCBA) today (Tuesday). Robert Fountain, Jr. a cow-calf producer from Adrian, GA and Secretary-Treasurer for CBB said the findings of the review are “extremely troubling to the CBB Executive Committee”. He said that for this reason “CBB will begin a more comprehensive review of NCBA (and) will also implement monthly review procedures of NCBA’s Checkoff expenditures and will issue more detailed guidelines to all contractors”.
The report from the CPA firm Clifton Gunderson (CG), found five non-eligible overhead expenses (out of 45 tested) that should not have been allocated to checkoff programs. In addition CG reported numerous instances of improper time coding or documentation for time worked (from 25 employee time reports over two years), 18 instances of improperly coded or documented travel costs and two instances (out of four tested) where NCBA failed to provide evidence of a competitive bidding process for subcontractor selection.
NCBA was noted for having a good record on Federation Initiative projects with no exceptions identified for projects fully or partially funded with dollars by Qualified State Beef Councils.
Fountain also said that “while the compliance review findings are troubling, the project managers with all of our contractors do excellent work using checkoff dollars and we think every producer has benefited from these checkoff-funded activities.
NCBA will be responding to the audit release later today.
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“GIPSA Rule Comment Period Extended”
USDA has extended – for another 90 days – the comment period to the Grain Inspection, Packers and Stockyards Administration’s proposed rule on livestock marketing. Announced June 18th – the proposed rule suggests major changes to the way producers can market their cattle. Secretary of Agriculture Tom Vilsack called the proposal one of the most sweeping reforms of the Packers and Stockyards Act. President of the National Cattlemen’s Beef Association and Illinois cattle producer Steve Foglesong says as such – it’s extremely important that we thoroughly understand the rule and both its intended and unintended consequences on the U.S. cattle community.
Colin Woodall – Vice President of Government Affairs for NCBA – says on the surface – this rule has the potential to take the beef industry back 30 years by stifling the innovative efforts of U.S. cattle producers to add value and enhance the quality and safety of their products for consumers in the United States and abroad.
During a House Agriculture subcommittee hearing last week – Democrats and Republicans expressed to USDA that the scope of the proposed rule goes well beyond what Congress intended under the 2008 Farm Bill.
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“Largest Farm Groups Weigh In on Extension”
The American Farm Bureau Federation (AFBF) is pleased the Agriculture Department’s Grain Inspection, Packers and Stockyards Administration has extended its comment period by 90 days on its Packers and Stockyards Act proposed rule. Like other organizations – AFBF initially requested a 120-day extension to better analyze the economic and legal impacts of the rule on producers. But National Farmers Union is disappointed and calls the 90-day extension excessive.
NFU President Roger Johnson says extending the comment period gives leverage for packers to offer lower prices to producers as a fear mechanism. Johnson adds that while USDA is taking a step in the right direction with this rule – the process needs to be expedited instead of slowed down.
Farm Bureau President Bob Stallman points out that the rule’s regulatory changes will impact each operation differently. The impact will vary depending on the type of animal produced on an operation, the ways the producer markets his or her product and the location of a producer’s operation relative to slaughter and processing facilities.
Farm Bureau policy does not cover many portions of the rule so – according to Stallman – they will require additional analysis.
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“Groups Back GIPSA Proposed Rules”
A coalition of 66 farm, consumer, rural and rural development organizations from across the United States believe that GIPSA is well within its authority to issue proposed regulations clarifying how the agency intends to administer and enforce the nearly 90-year-old Packers and Stockyards Act of 1921. In a letter sent to Congress before the comment period extension was announced – the group called delaying the comment period little more than an effort to delay and ultimately derail the proposed rule itself.
The joint letter states that the Packers and Stockyards Act makes it unlawful for packers, swine contractors and live poultry dealers to engage in any unfair, unjustly discriminatory, or deceptive practice or device, or to make or give any undue or unreasonable preference or advantage to any particular person or locality in any respect, or subject any particular person or locality to any undue or unreasonable prejudice or disadvantage in any respect. R-CALF USA CEO Bill Bullard points out that GIPSA has never issued the regulations necessary to define these broad prohibitions in order to adequately enforce the protections for livestock and poultry producers.
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“CRP General Sign-up Begins Next Week”
A general sign-up for the Conservation Reserve Program begins August 2nd and will continue through August 27th. During the sign-up period – farmers and ranchers may offer eligible land for CRP’s competitive general sign-up at their county Farm Service Agency office. In making the announcement – Agriculture Under Secretary for Farm and Foreign Agriculture Services Jim Miller encouraged all interested farmers and ranchers to contact their local FSA office to learn more how to take advantage of this opportunity.
Producers enrolling in CRP plant long-term, resource-conserving covers in exchange for rental payments, cost-share and technical assistance. Participants voluntarily remove environmentally sensitive land from agricultural production by entering into long-term contracts for 10 to 15 years. In exchange – participants receive annual rental payments and a payment of up to 50-percent of the cost of establishing conservation practices.
Land currently not enrolled in CRP may be offered in this sign-up provided all eligibility requirements are met. Additionally – current CRP participants with contracts expiring this fall covering about 4.5-million acres may make new contract offers. Contracts awarded under this sign-up are scheduled to become effective October 1st of this year.
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“Democrats Face Uphill Battle”
Senator Blanche Lincoln and other Democrats are expected to continue to fight for social safety-net spending they say is being shortchanged. Lincoln’s battle for farm aid illustrates the uphill climb for Democrats in both chambers who want to save at least some of the 22.8-billion dollars in domestic spending that the House added to a fiscal 2010 supplemental appropriations bill – but the Senate rejected.
The problem is not need. It’s concern over the budget deficit, a sluggish economy and an angry electorate. Previously – lawmakers in both chambers had tried to attach agriculture disaster assistance, money to settle discrimination claims by black farmers against the government, funding for summer jobs for youths and other requests to a measure extending tax and spending programs. The Senate ultimately whittled that measure to a 34-billion dollar, six-month extension of enhanced unemployment benefits.
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“Farm Bureau Says Changes Necessary to Meet Goal of Doubling Exports in 5 Years”
The American Farm Bureau Federation, Coalition of Service Industries and National Association of Manufacturers have developed an approach to doubling U.S. exports in five years. The ways to achieve this goal – according to the organizations – include enacting the Colombia, Panama and South Korea Free Trade Agreements; pursuing new trade agreements; reducing non-tariff barriers; improving competitiveness with investments in infrastructure and trade facilitation initiatives; pursuing a Doha Round agreement that expands world trade; and improving export promotion efforts and financing policies.
AFBF Director of International Policy Rosemarie Watkins says those measures are critical for increasing U.S. agricultural competitiveness around the world and meeting the growing world demand for food with U.S. ag products. If the President’s goal of doubling exports is to be realized – CSI President Bob Vastine says the government must create a supportive trade policy environment that addresses discriminatory trade barriers established by trading partners. NAM Vice President of International Economic Affairs Frank Vargo says U.S. exports will fall nearly 300-billion dollars short of the President’s goal in 2014 if drastic changes aren’t made to work toward the goal. Vargo says the U.S. needs to enact policies to make it easier for U.S. companies to reach new markets.
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“Ethanol Groups Say EPA Must Act on Ethanol Blend Wall Issue”
The American Coalition for Ethanol, National Corn Growers Association and Renewable Fuels Association wrote a letter Monday to Environmental Protection Agency Administrator Lisa Jackson – asking her to formally approve the use of E-12 for all motor vehicles as an immediate interim step pending any ongoing additional testing on E-15. The letter points out decreasing dependence on foreign oil is key to the nation’s environmental, energy and security policy. The groups state EPA must provide a practical and workable solution to the ethanol blend-wall issue soon. They say allowing E-12 as an interim step to a full E-15 waiver is a step to solving the immediate problem.
In the letter – the groups also point out previous EPA findings, policy positions and research to demonstrate the importance of approving E-12. They say EPA has a clear basis and the authority to approve E-12. Even though they think delay on E-15 is unnecessary and will slow progress on expanding the use of ethanol – the groups say approval of E-12 is a vital step EPA can and should take.
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“Brazil Meat Packers Suspending Some Cattle Purchases”
Last year – Brazil’s three largest meat packers signed pacts to change their practices after Greenpeace released its “Slaughtering the Amazon” report exposing links between cattle ranching in the Amazon region and deforestation. Now – according Greenpeace – the meat packers have suspended cattle purchases from as many as 221 ranches located on indigenous land, conservation areas or near recently-deforested areas in the Amazon.
The AE Brazil Newswire quotes Greenpeace campaign coordinator Marcio Astrini as saying the initiative shows that meat packers understood – in a clear and definitive way – consumers’ environmental concern message. Astrini also says that by the end of the year a much larger number of ranches will be excluded from the companies’ cattle supplier list.
