“Federal Agencies Focus on California Water Problems”
The Obama Administration has released a coordinated interim action plan to address the water crisis in California. Nancy Sutley, Chair of the White House Council on Environmental Quality, says – the actions that Federal agencies announce will have real, on-the-ground impacts in 2010 and will complement the State of California’s ongoing response.
Secretary of the Interior Ken Salazar says – the California water crisis is a full-blown crisis that requires all hands on deck to help those who are suffering. Salazar says – we are moving aggressively to do our part to address the urgent need to provide reliable water supplies for 25 million Californians, while also protecting the Bay-Delta ecosystem upon which the supplies depend.
The coordinated federal action plan will: 1. strengthen the federal government’s coordination of actions with the state; 2. help to meet water needs through actions that promote smarter water supply and use; 3. help ensure healthy ecosystems and improved water quality; and 4. call for agencies to help deliver drought relief services and ensure integrated flood risk management.
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“Health Care Vote Thursday Morning”
As the result of an agreement between Majority Leader Harry Reid and Senate Minority Leader Mitch McConnell, the Senate is now expected to vote on the health care reform bill Thursday morning at 8:00 a.m. eastern time. Earlier, it was expected that Republican delay tactics would not permit a vote until Christmas Eve. At the same time the Senate will vote on an extension of the federal debt limit.
Tuesday, the Senate moved through more procedural votes and more preliminary votes. Preconference negotiations are expected to begin as soon as the Senate passes its bill and will continue over the holidays. Senate Finance Chairman Max Baucus says Congress will have a bill on President Obama’s desk by his state of the Union address at the end of January.
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“Hawkeye Renewables Files for Chapter 11 Bankruptcy”
Iowa’s largest ethanol producer, Hawkeye Energy, announced that a proposed plan to reorganize one of its subsidiaries, Hawkeye Renewables, LLC, has been overwhelmingly accepted by its first lien lenders. As part of the plan the company has filed for reorganization under chapter 11 of the U.S. Bankruptcy Code in Delaware. The bankruptcy affects plants in Iowa Falls and Fairbank, Iowa. The company faces debts approaching one-billion dollars.
The implementation of the plan, which has been accepted by first lien lenders but not by second lien lenders, is subject to court approval. The two plants are continuing operations including buying corn. Renewables fully expects all corn suppliers will be paid in full under normal terms for current and future contracts and that both plants will continue to meet all sales commitments to their ethanol and distillers grain customers.
Hawkeye Energy Holdings CEO Bruce Rastetter says, – while the market for ethanol has stabilized and financial performance has improved in recent months, it nevertheless became clear that a restructuring of the Renewables unit’s balance sheet would be necessary for the company to compete effectively in the future.
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“RFS Information Inadequate”
EPA’s final rule for the expanded Renewable Fuels Standard has been submitted to the Office of Management and Budget for its review – the final step before the rule can take effect. The Renewable Fuels Association points out that EPA has yet to issue the 2010 renewable volume obligations which specify the percentage of an obligated party’s transportation fuel that must be comprised of renewable fuels.
EPA has signaled that the 2010 RVOs will be specified in the final rule and that the obligations will be retroactive to January 1, 2010. However, to avoid disruptions in the ethanol blending market, RFA points out, obligated parties would benefit from knowing now what the RVOs will be for the coming year.
Renewable Fuels Association President Bob Dinneen says – in order to provide clarity to the market, we are encouraging EPA to issue these percent volume requirements prior to January 1, 2010, so both gasoline refiners and ethanol producers can operate with certainty. According to EPA public statements, the RFS is likely to be approved in the mid-January timeframe. It takes an additional 60 days for the approved rule to take effect.
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“NCBA in Support of Interstate Shipments”
The National Cattlemen’s Beef Association has submitted comments to USDA’s Food Safety Inspection Service in support of a proposed rule to allow the interstate shipping of certain meat and poultry products. The proposal would establish a new cooperative state program to permit the sale and shipment of meat across state lines. NCBA says, – the program will help small establishments grow their businesses and open up new opportunities for cattle producers to do business at the local level.
NCBA’s director of legislative affairs, Kristina Butts, says – this program is a great opportunity to grow local demand for beef and increase competition. NCBA fought for this provision in the 2008 Farm Bill, and we’re pleased that USDA is finally working toward its implementation.
At the same time, NCBA is asking FSIS to clarify guidance for establishments in states that potentially become ineligible to participate. The proposed rule states that once an establishment applies to participate, it would have to transition and become federally inspected if it were ever deselected from the program. It’s unclear, the group says, what would happen to establishments participating in the voluntary program in the event its respective state was to become ineligible to participate.
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“Upland Cotton Countermeasures Set”
Brazil has reported to the World Trade Organization’s Dispute Settlement body on the countermeasures related to the case: U.S.-Subsidies on Upland Cotton. Brazil informed the DSB that, on the basis of complete data related to fiscal year 2008 and calendar year 2008, the total amount of countermeasures authorized to Brazil would be 829.3-million dollars US. Brazil also stated that, on the basis of the same period, the threshold above which Brazil was entitled to take countermeasures in other sectors and agreements outside trade in goods would be 561-million.
Those calculated figures are based on information provided by the United states to Brazil, after Brazil has requested data required to update the value of the countermeasures authorized to Brazil.
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“World Ag Expo on Schedule”
Tulare, California hosts the 43rd Annual World Ag Expo from February 9-11, 2010. Organizers say the show is the world’s largest annual agriculture exposition. Tulare is located in the center of the state and the heart of the agriculturally-rich San Joanquin Valley. Featured will be the latest technology and agricultural equipment. The program includes a prayer breakfast on February 10th and ag leadership breakfast on February 11th.
Seminars addressing California’s water management situation will be held on Wednesday, February 10th. The first seminar addresses “Increasing the Reliability of California’s Water”. The second seminar addresses Irrigation Management in a Water Short Year. Other seminars address Biogas, air quality and livestock production.
The Agricultural Leadership alumni’s 16th annual fundraiser breakfast on Thursday, February 11th features Mark Mayfield, a humorist. Over the years the breakfast has raised 570-thousand dollars for the California Agricultural Leadership Foundation.
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“World Soy Foundation Has New Leader”
The World Soy Foundation has announced the selection of Nathan Ruby as Executive Director to lead the charitable organization effective January 4, 2010. As the foundation’s Executive Director, Ruby will lead WSF’s work to develop sustainable solutions to build healthy, thriving communities worldwide. He will work out of the American Soybean Association’s headquarters in St. Louis. Ruby previously served as the major gifts manager for the Nuts, Bolts and Thingamajigs Foundation based in Rockford, Illinois.
World Soy Foundation Board Chairman Roy Bardole, a soybean farmer from Rippey, Iowa, believes – the World Soy Foundation can play an important role in countering the sobering statistic that world hunger reached an historic high this year with one-in-six people being undernourished. The foundation works collaboratively with humanitarian organizations, corporations, public and private foundations, international organizations, U.S. and international governments, and individuals to deliver soy protein and nutrition education to people in developing nations.
