“Fourth of Five USDA-DOJ Workshops Held”
An estimated crowd of about 13-hundred people attended the fourth of five USDA-DOJ workshops to explore the appropriate role for antitrust and regulatory enforcement in American agriculture. This event was held Friday at Ft. Collins, Colorado, on the campus of Colorado State University. This workshop, led by Agriculture Secretary Tom Vilsack and U.S. Attorney General Eric Holder, examined competition in the livestock industry and featured panel discussions on trends in the livestock industry, market consolidation and market transparency. The workshop also included opportunities for public comments.
In prepared remarks, Agriculture Secretary Tom Vilsack said – given the consolidation that has taken place in the livestock industry over the past decades, it is critical to ensure a fair market still exists to give all players an honest chance at success. The Secretary added, – a fair and competitive marketplace is important not only for producers, but also for consumers, and today’s open and transparent dialogue with ranchers, farmers, academics and other industry stakeholders will provide us with a understanding of the complex issues in this important industry.
Secretary Holder said – Ultimately, today’s conversation is about much more than simply last year’s trends or this year’s challenges. It’s about livelihoods, families, this region’s economy and our centuries-old American way of life. Holder said – we’ve made these workshops a cabinet-level priority so we can most effectively and efficiently determine how to ensure a fairer, more competitive marketplace for producers and consumers alike.
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“NFU Speaks Out at Workshop”
National Farmers Union President Roger Johnson, said – while the GIPSA proposed rule was a major point of contention, the focus of the workshop was on overall concentration in the livestock marketplace. Four companies control more than 81 percent of the total beef processing in the United States, allowing for non-competitive pricing to be forced upon producers.
In 1980, there were more than 666-thousand hog farms and 1.6 million cattle farms or ranches. Today, there are only about 71-thousand hog farms and 950-thousand cattle farms or ranches. In 1980, hog producers received half of the retail value of a hog but in 2009, they got less than one-quarter of the value. Similarly, in 1980, cattle producers received 62 percent of the retail value but in 2009 received only 42.5 percent.
Two NFU members, Iowa Farmers Union president Chris Peterson and Rocky Mountain Farmers Union member Armando Valdez served as panelists during the workshop. Peterson and Valdez each highlighted the need for reform in the livestock industry, with an emphasis on the increasing consolidation and vertical integration in the livestock and poultry marketplace, resulting in a tougher environment for independent producers. Johnson said – it is vital to have speakers from groups that represent the family farmer, not just the packer-producer organizations.
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“NPPC-NCBA GIPSA Rule Media Briefing Held”
The National Cattlemen’s Beef Association and the National Pork Producers Council held a media briefing Thursday evening before the USDA-DOJ workshop. Organizers say pork and beef producers representing more than 20 states attended the meeting to voice their opposition to the GIPSA rule, expressing the negative effect it could have on their operations.
Robbie LeValley, president of the Colorado Cattlemen’s Association; a cattle producer; and a co-owner of Homestead Meats, a family owned company marketing beef locally, said – our innovation and our willingness to do direct marketing has basically now labeled us a packer and under the proposed rule, as I read it, now limits our marketing options – meaning not being able to sell to other packers. She added – while some say that is not the intent of the rule, the vagueness of the language makes it very possible.
NPPC President Sam Carney, a producer from Adair, Iowa, said – as written, the GIPSA rule would limit my ability to sell hogs. He called it a – solution in search of a problem. The markets work, and we don’t need the government trying to ‘fix’ it. According to Carney, – the GIPSA rule is overly broad and very vague. It would inject uncertainty into the market, stifle innovation and lead to less not more competition in the livestock industry.
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“Wheat Genome Code Cracked”
British scientists have decoded the genetic sequence of wheat. University of Liverpool scientist Neil Hall, whose team cracked the code, said the information could eventually help breeders of varieties of wheat better identify genetic variations responsible for disease resistance, drought tolerance and yield. Although the genetic sequence remains a rough draft, and additional strains of wheat need to be analyzed for the work to be useful, Hall predicted it wouldn’t take long for his work to make an impact in the field.
In response to this break-through, academia is excited. One academic in the field called the discovery “a landmark.” Nick Talbot, a professor of biosciences at the University of Exeter, who wasn’t involved in the research, says – the wheat genome is the holy grail of plant genomes. Talbot adds, – it’s going to really revolutionize how we breed it. Hopefully the benefit of this work will come through in the next five years.
Wheat is a relative latecomer to the world of genetic sequencing. This year marks the 10th anniversary of the date the human genome was laid bare. Other crops have had their genetic codes unscrambled within the past few years — rice in 2005, corn in 2009, and soybeans earlier this year. Hall explains, – the reason for the delay in analyzing wheat’s genetic code is that the code is massive — far larger than corn or rice and five times the length of the one carried by humans.
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“Knowing Wheat Genome Important”
A team led by University of Liverpool scientist Neal Hall used a process called pyrosequencing to help it break the genome of wheat. This technique involves extracting DNA, suspending it in fluid, breaking it apart with bursts of gas and using chemical reactions and a high-resolution camera to infer its makeup. The team worked with wheat lines such as the Chinese spring wheat, which has a tangled ancestry, tracing its descent from three different species of wild grass. It also carries six copies of the same gene – most creatures carry two.
The cracking of wheat’s code comes at a time when prices have shot up in the wake of crop failures in Russia, highlighting how the vagaries of world food production can hit import-dependent countries such as Egypt. Nick Talbot, the professor of biosciences at the University of Exeter, notes that rice cultivation had already benefited from the publication of its genetic code — and led to the development of vitamin-enriched and drought-resistant strains.
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“Temple Grandin Winner Off Screen”
HBO’s “Temple Grandin” swept the Emmys Sunday night, capturing some of the top awards including Best Picture, Best Actress, Best Supporting Actress, and Best Supporting Actor. But there is more to “Temple Grandin” than meets the TV screen. Temple Grandin is a member of the American Meat Institute, serving as lead instructor at AMI’s Animal Care & Handling Conference and is a past recipient of AMI’s Industry Advancement Award.
AMI President J. Patrick Boyle says – Temple Grandin has done remarkable things for our industry and for people with autism. She has transformed the way we handle livestock and measure welfare. She has been a gift to so many people including those in our industry. She is incredibly deserving of the accolades she is now receiving.
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“South Korea Official: No Concessions”
Has South Korea offered concessions to the United States to gain ratification of a free trade agreement between the two countries? Speaking to reporters in Seoul, Seok-young, South Korea’s deputy minister for trade said, – it is not true. We have not made any commitments to the United States.
Some American congressmen insist that South Korea ease trade restrictions on U.S. beef. The restrictions — age limits — were first imposed during the BSE outbreak. American legislators are also looking for better terms on auto trade.
President Obama is scheduled to travel to South Korea in November to participate in a G-20 summit meeting. The two governments will need to clear up any remaining difficulties on the trade pact by then if they hope to advance the FTA any time soon.
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“U.S. Corn Important to Saudia Arabia”
Saudi Arabia imports up to 2-million metric tons of corn per year. 39 percent is from the United States. Daniel Button of Almarai, based in Saudi Arabia, came to the United States recently to meet suppliers and purchase U.S. corn. Almarai is the largest integrated dairy foods company in the Middle East. While visiting Grace Harbor in Washington, Button tendered two shuttle trains of U.S. No. 1 corn and three shuttle trains of U.S. No. 2 corn.
Alvaro Cordero, USGC manager of international operations, accompanied Button on his visit. Cordero explained – while Saudi Arabian customers don’t have a strong preference for any specific origin, they appreciate the United States’ ability to provide a stable supply of corn. He said U.S. corn is more consistant, better for flaking and less expensive in the process.
Almarai recently bought a large poultry integrator and is planning to expand production up to 3 million birds per week. The company was established in Saudi Arabia in 1976 as a partnership. Company representatives soon recognized the potential to transform traditional methods of dairy farming to better serve the needs of the Saudi Arabian market.
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“Feed Source of Egg Contamination”
Laboratory tests have confirmed that the two Iowa egg companies that have recalled over a half-billion eggs are contaminated with the same strain of salmonella blamed for a national outbreak of illness, which has sickened at least 1,500 people. The confirmation backs up suspicions by the Food and Drug Administration that tainted eggs from the two Iowa producers have caused the biggest case of Salmonella enteritidis disease that federal officials have seen since they began tracking the illness in the 1970s.
FDA investigators detected the particular strain of salmonella in two barns at Wright County Egg and in feed that the company made and gave to its own chickens. The agency also found that strain in feed that Wright supplied to Hillandale. Jeff Farrar, associate commissioner for food protection at FDA says – these are the very first results and there are many other results in the queue that may give us clues as to the extent of contamination.
According to Josh Sharfstein, deputy commissioner at FDA, – animal feed is generally heated to kill microbes, so it is possible that the feed became contaminated after it arrived at Wright County Egg. Sharfstein said – the feed facility is at the same location of all these problems so there are multiple ways it may have become contaminated. In the meantime, Wright County Egg and Hillandale are selling their eggs to facilities that pasteurize them, a process that kills salmonella.
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“FAS Attempts to Sooth Moscow Jitters”
USDA’s Foreign Agricultural Service’s Moscow office has delivered a letter to Russia providing information from the Food and Drug Administration on the recall of some 550 million eggs linked to nearly 15-hundred cases of salmonella poisoning in the United States. The letter was an attempt to calm Russia’s nerves over imports of U.S. poultry imports. FAS spokeswoman Katie Gorscak says, – the letter included assurances that U.S. broiler production is not involved in the recall.
Russian media reports say over the weekend, Russian authorities were expected to expand their list of U.S. poultry establishments eligible to export poultry to Russia. But, they weren’t happy with what they called a slow response from USDA not only on the egg recall but also their concerns about Tyson’s recent recall of 380-thousand pounds of deli products.
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“Bloomberg-Vilsack at Odds”
Bloomberg reports in its August 30 issue that the Obama administration is – redirecting who gets rural aid. The publication says – the government is shifting payments to broadband providers, land-conservation efforts and nutrition programs – and away from farmers and ranchers. Bloomberg says – to many farmers, the changes seem designed to satisfy organic-food devotees, first lady Michelle Obama’s anti- obesity cause, weekend duck hunters, and small-town Internet users –everyone, that is, except traditional farmers.
Bloomberg continues –USDA in July trimmed 6-billion dollars in payments to crop insurers such as San Francisco-based Wells Fargo & Co. for the next decade. Now he’s looking at cuts of as much as 5-billion a year from an automatic payments program that compensates farmers even if they grow nothing.
USDA Press Secretary Justin DeJong, in a Friday release, said – in recent interviews with a Bloomberg reporter, at NO time did Secretary Vilsack call for 5-billion dollars in cuts to farm programs. In fact, he pointed out how USDA already saved 4-billion that was put toward deficit reduction by renegotiating our agreement with crop insurance companies. DeJong continued, since becoming Secretary of this department, Mr. Vilsack has – advocated fiercely about the need to keep American agriculture strong through farm safety net programs.
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“Fall Corn Scouting Necessary”
Late season corn diseases such as stalk rots, ear rots and foliar diseases such as Goss’s Wilt may be the next problems impacting this year’s corn crop. So, corn farmers will be wise to scout their fields for early signs of these problems. Pioneer research scientist Scott Heuchelin, says – the warm, humid weather has primed the pump for fungal diseases in the later part of this growing season.
When the crop reaches physical maturity, it stops actively growing and uses its energy reserves to fill the ear. During this time, root and crown infections, established earlier in the year during saturated soil conditions, can take off and aggressively infect the plant’s crown and stalk tissues. Heuchelin recommends – if top dieback is evident, test the stalk integrity by pinching the base of the stalk or pushing the plant to the side to assess lodging potential. Fields with significant lodging potential should be harvested first to preserve yield potential.
Bleaching out of the ear leaf or husk leaves could be a sign of ear rots. Agronomists and researchers often see ear rots show up in Indiana, Ohio, Illinois and Ontario. This season, additional regions that experienced significant precipitation and humidity may fall victim, too. Growers may want to harvest early and dry corn to 15 percent moisture or below to prevent further molding during storage.
Goss’s wilt, historically more localized in the Great Plains, but according to Heuchelin – it’s recently been reported in eastern Nebraska, the Dakotas, Manitoba, Minnesota, Iowa, Wisconsin, Illinois and Indiana. It typically occurs as the result of hail events and storms. The Goss’s wilt bacterium can infect the leaves where they have been abraded. Fungicides will not help. Producers must manage the debris, which is the source of the inoculum, and work in rotation and tillage along with resistant genetics.
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“VP Touts Recovery Act Investments”
When Vice President Joe Biden last week, unveiled a new report on the successes of “The Recovery Act”, he pointed out that Recovery Act investments are paving the way for game-changing breakthroughs in transportation, energy and medical research. He said the Recovery Act’s 100-billion dollar investment is – not only transforming the economy and creating new jobs, but helping accelerate significant advances in science and technology.
At the same event, Energy Secretary Steven Chu said – thanks to investments made possible by the Recovery Act, we are unleashing the American innovation machine to change the way we use and produce energy in this country.
According to this new analysis, the U.S. is now on-track to achieve four major innovation breakthroughs thanks to Recovery Act investments. They are: doubling U.S. renewable energy generation capacity and U.S. renewable manufacturing capacity by 2012; cutting the cost of solar power in half by 2015; and cutting the cost of batteries for electric vehicles by 70 percent between 2009 and 2015.
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“New Colorado Lab Opened”
The state-of-the-art energy efficient, Forest Service Rocky Mountain Research Station was formally opened Friday by Ag Secretary Tom Vilsack, Colorado Governor Bill Ritter and Forest Service Chief Tom Tidwell. The new lab will support critical research on climate change, air quality, forest ecosystem adaptation processes and water resources. 29 percent of the 5.3-million dollar price tag came from American Recovery and Reinvestment Act funding.
Secretary Vilsack said – investments in research are critical in helping us enhance our understanding and management of watersheds and forests in the decades ahead. This research facility will enable scientists to conduct research on, and find solutions for, some of the toughest challenges facing America’s natural resource managers today.
Vilsack also highlighted the role the research at the new lab will play in revitalizing rural America. He pointed out that – work on carbon sequestration, water, wildlife habitats, and climate change will help quantify the value of our forested lands so we build ecosystem markets and provide rural landowners with new income opportunities.
