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AG NEWS 2010/01/28

“Cattlemen Surround Alamo”

More than 52-hundred cattle producers and industry representatives converged on San Antonio this week for the Annual Cattle Industry Convention and Trade Show. The event – marking it’s first trip back to Austin since 2005 – are coming off a year of low prices and unprecedented attacks on the industry. Both have been hot topics, especially during the 17th Cattlemen’s College. Presentations by NCBA’s Colin Woodall (Executive Director of Legislative Affairs in Washington, DC) and Gregg Doud (Chief Economist) detailed attacks by the Humane Society of the United States (HSUS) and others (including Michael Pollan – author of “Food Rules”) and possible modes of action the industry may use to counter the misinformation.

Attendees also heard a riveting presentation from Chris Gardner (author of the bestseller “Life Lessons in The Pursuit of Happiness” – and main character in the Will Smith movie “The Pursuit of Happiness”).  He challenged cattlemen to keep their goals in mind and to hang in despite tough circumstances.
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“Administration Rephrasing Cap-and-Trade”

The Obama Administration is beginning to talk more about clean energy legislation and tying it to job creation and less about Cap-and-Trade. At Wednesday’s clean energy forum, White House energy and climate adviser Carole Browner stressed the need for legislation to eliminate dependence on foreign oil, put a price signal on carbon emissions and mandate an increase in electricity from renewable sources. She said – this is about creating a new generation of clean energy jobs that will position us in a global market, and we need the legislation to do that.

Meanwhile, White House officials say increased spending on alternative energy research will emerge relatively unscathed from the President’s proposed spending freeze. Rob Nabors, deputy director of the White House’s Office of Management and Budget says – not everything in the budget is of equal importance to the country. Those things that are the most important to the President, the things like education, things like energy research – they’re at the top of the list.

Senators leading efforts to write a bipartisan climate bill have signaled they will keep pushing hard for legislation that would curb emissions of greenhouse gases and boost development of alternative energy.
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“U.S. Unprepared for Bio Attack”

A congressionally appointed commission reports that the United States remains unprepared to respond to the threat of large-scale bioterrorism. The report measured the government’s performance in 17 key areas. It gave the White House and Congress “F” grades for not building a rapid-response capability for dealing with disease outbreaks from bioterrorism. But the commission did give “A” grades for government programs that secure dangerous viruses and bacteria.

The panel cited the government’s faltering response to the H1N1 flu epidemic as evidence of a lack of preparedness for a large-scale crisis, adding that the blame for the failures is shared by various administrations and branches of government. Former Senator Bob Graham co-chaired the panel with former Senator James Talent. They say – each of the last three administrations has been slow to recognize and respond to the biothreat.
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“Montana Beef Processing Plants to Open”

The chief executive officer of American Food Products believes his company can -resurrect the beef business in Montana. Ron Oberlander told Meatingplace that finding a steady source of supply in Montana and other northern states has been a challenge, but he believes that his products can re-establish demand.

American Food Products, based in Florence, Montana, will open the first of two meat processing plants next month in Laurel, Montana. That plant is expected to produce up to 60-thousand pounds of product per month.  A second plant in the area could open 12 to 24 months later and nearly quadrupling monthly production.

Those products, marketed under the Montana Cattle Company brand name, would include sausage, jerky, deli meats and cooked ground beef. The key ingredient would be omega-3 fatty acids, a claim that has been approved by USDA.
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“R-CALF USA Questions Beef Checkoff Direction”

Delegates to the R-CALF USA annual convention in Rapid City, South Dakota last week passed a proposed resolution that brings into question control of National Beef Checkoff Program funds. At question is what R-CALF USA calls a battle between the Cattlemen’s Beef Board and the National Cattlemen’s Beef Association regarding NCBA’s efforts to gain additional control over National Beef Checkoff Program funds.

R-CALF USA directors have been adamant that the Beef Checkoff Program should not be controlled by a politically motivated entity such as the NCBA. R-CALF USA CEO Bill Bullard says – we’re hopeful the CBB folks will look out for the interests of actual cattle producers, and we certainly hope they will stand their ground and refuse to be intimidated into granting even more control to NCBA.

Former R-CALF USA Region IV Director Jay Platt indicates that many of the individuals serving on the Arizona Beef Council are not, in fact, full time cattle producers. Platt points out that – someone who does not make a living as a full-time producer will view very differently how dollars ought to be spent on projects than someone who does indeed make their living running cows would view how those dollars are spent.
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“Canadian COOL Law Being Pushed”

Canadian Pork Council chair Karl Kynoch says Canadian pork producers are increasingly concerned that the U.S. Mandatory Country of Origin Labelling law has made it more difficult to move Canadian product into the United States, while American product continues to flow freely into Canada. According to Kynoch, a growing number of Canadian pork producers believe Ottawa needs to impose the same labelling rules on U.S. pork entering Canada as is required for Canadian product entering the U.S.

Kynoch points out – we’re going through the World Trade Organization to try to resolve the dispute of COOL and the impact that it’s had. He says – if we were to lose this case and those labelling restrictions stay in place some of our producers are starting to push for equivalency in labelling laws coming into Canada.  25 percent of the product that goes across the shelves in Canada comes out of the U.S.

Canadian and U.S. producers have worked together to achieve equivalency on food safety and animal welfare laws but, according to Kynoch, when we see stricter labelling laws on one side of the border, it disrupts that equivalency. A delegation representing Manitoba Pork Council was in Minneapolis, Minnesota last week and is in Des Moines, Iowa this week for a series of trade advocacy meetings and to discuss issues of common concern with their U.S. counterparts.
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“NFU Wants Support for Crop Insurance Funding”

National Farmers Union President Roger Johnson has written Ag Secretary Tom Vilsack expressing concern regarding potential cuts to the Federal Crop Insurance Program in the Fiscal Year 2011 Budget. While Congress provided significant funding through the 2008 farm bill, administrative and operating reimbursement was reduced by 2.3 percent and program outlays were reduced by 3.9-billion dollars over five years. NFU emphasizes that cuts should not be made to programs that are critical to the operation of agricultural producers.

Johnson points out that – beyond the farm gate, the crop insurance program is important to millions of Americans because of the food security it provides. He notes, – during periods of disaster such as those we have recently experienced in Florida and California, farm operations are able to remain economically viable to provide a steady and consistent food supply.

NFU is further concerned that any such cuts will result in a reduction to the overall farm bill baseline, an action that would have consequences in both the near and long term. Johnson said – it’s vital that the crop insurance program is adequately funded to continue providing critical support to America’s farmers.
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“Have Aflatoxins Met Their Match”

Pistachios, almonds and other popular tree nuts might someday be routinely sprayed with a yeast called Pichia anomala.  Laboratory and field studies by Agricultural Research Service plant physiologist Sui-Sheng (Sylvia) Hua have shown that the yeast competes successfully for nutrients–and space to grow–that might otherwise be used by an unwanted mold, Aspergillus flavus. A. flavus and some other Aspergillus species can produce troublesome toxins known collectively as aflatoxins.

Tests conducted in a California pistachio orchard found that spraying the trees with the yeast inhibited incidence of A. flavus in pistachios by up to 97 percent, compared to unsprayed trees. Hua has received a patent for use of the yeast as an eco-friendly way to protect tree nuts, as well as corn, from becoming contaminated with aflatoxins.

The yeast can also be sprayed on the harvested or stored crop instead of on trees before the harvest. Researchers also believe the versatile yeast may also be effective in protecting other crops against any of at least half a dozen other species of microbes that can ruin a food’s taste, texture, yield, safety or other attributes.
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“Speaker Announced for USGC Meeting”

The U.S. Grains Council’s agribusiness and U.S. farmer members will head to Puerto Vallarta, Mexico for the USGC 7th International Marketing Conference and 50th Annual Membership Meeting February 12-17, 2010. On Sunday February 14th, Carol Brookins will offer the keynote address. Brookins is currently a managing director of Public Capital Advisors LLC, as well as a director on both corporate and non-profit boards.

USGC President and CEO Thomas Dorr says – council members will hear creative perspectives on the current and future outlook for commodity markets, agriculture, international trade, global development and public policy.

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