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AG NEWS 2010/03/08

“Harkin Calls for Foods Safety Legislation”

In response to the FDA investigation of Salmonella in hydrolyzed vegetable protein, Iowa Senator Tom Harkin said – consumers should not have to think twice about the safety of a food item when they reach into their pantry. According to Harkin, our nation’s food safety system is outdated, lacks proper resources and, quite simply, does not adequately protect American consumers. The Senator said – we cannot wait any longer to pass comprehensive food safety legislation.

On November 18, 2009 the Senate Health, Education, Labor and Pensions Committee reported out S. 510, the FDA Food Safety Modernization Act. A similar bill is awaiting action in the House.  Harkin, who is chairman of the Senate committee, said, – it is my hope we can have a comprehensive food safety bill on the President’s desk in the very near future.

Harkin said, – we must give FDA the tools to prevent a food borne illness outbreak before it happens, rather than react when it is already too late.  And when food is tainted, we must provide the tools to respond quickly and protect consumers.
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“USDA Confirms Pork Agreement with Russia”

USDA has confirmed an agreement between the United States and Russia that will re-open the Russian market to U.S. pork. By the end of last year, Russia had delisted virtually all U.S. pork facilities, prohibiting them from shipping pork to the country.  National Pork Producer Association President Don Butler applauded the agreement.

As part of the agreement, the United States has developed an Export Verification program for pork going to Russia.  The verification program will provide a new veterinary certificate to ensure that U.S. pork exports meet specific Russian microbiological and tetracycline-group antibiotic residue requirements. U.S. plants that want to export to Russia must apply for approval with USDA’s Agricultural Marketing Service.

National Pork Producers Council President Don Butler said – our pork meets U.S. and international standards, so we did not see the need for the EV program. But the Russians wanted the program, and we wanted to get back in the market. Butler added – we now need to get China to re-open its market to U.S. pork.
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“Some Counter-Cyclical Payments Going Out”

Agriculture Secretary Tom Vilsack says USDA will issue approximately 121-million dollars in partial 2009-crop counter-cyclical payments to producers with upland cotton and peanut base acres enrolled in USDA’s Direct and Counter-cyclical Payment program. USDA will not issue final 2008-crop counter-cyclical payments for long grain rice and short and medium grain rice because their average market prices exceed levels that would trigger these payments.

The partial 2009-crop upland cotton counter-cyclical payment rate is 1.03 cents per pound, equal to 40 percent of the difference between the target price of 71.25 cents per pound and an effective price of 68.67 cents per pound.  The effective price is equal to the projected average market price of 62 cents per pound plus the direct payment rate of 6.67 cents per pound.

The partial 2009-crop peanuts counter-cyclical payment rate is $9.20 per ton, equal to 40 percent of the difference between the target price of $495.00 per ton and an effective price of $472.00 per ton.  The effective price is equal to the projected average market price of $436.00 per ton plus the direct payment rate of $36.00 per ton.

For all commodities other than upland cotton and peanuts, the market price projections exceed levels that would trigger these payments. Also, USDA will not issue final 2008-crop counter-cyclical payments for rice.
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“GHG Controls Big Question Mark”

When climate change legislation stalled in the U.S. Senate, the Obama Administration announced – Plan B – let the Environmental Protection Agency cap U.S. emissions.  But, now even that plan is in trouble as late last week Senator John Rockefeller introduced a bill that would put a two-year freeze on EPA’s ability to regulate greenhouse gases from power plants.

Rockefeller’s legislation would not affect EPA’s plans to limit greenhouse gas emissions from cars and trucks. But it would prevent the agency from implementing — or even doing much work on — caps on emissions from such “stationary sources” as power plants and factories. Experts say the bill could postpone regulations for as much as four years.

Oil and mining industries immediately started lobbying for Rockefeller’s proposal as soon as it was introduced, although Lou Hayden, a policy analyst for the American Petroleum Institute, said Rockefeller didn’t go far enough. We don’t know why the freeze on EPA authority isn’t made permanent.
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“Cellulosic Biofuel Industry Seeks Investment Tax Credit”

In a letter sent to leaders of the Senate Finance and House Ways and Means committees, advanced biofuel businesses and advocacy groups have asked that while cellulosic biofuels are currently eligible for a $1.01-per-gallon production tax credit, there is a lag in commercial production that leaves the incentive unused. The letter states, – a targeted investment tax credit will help the industry attract investment capital needed to accelerate production and meet – ambitious volume requirements of the renewable fuel standard.

The federal Renewable Fuels Standard requires the use of cellulosic biofuels beginning in 2010. However, no commercial cellulosic biorefineries are anticipated to be commissioned before next year at the earliest. The letter says the incentive is needed to boost the construction of advanced biofuel refineries.
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“Alliance Calls OPEC Report – Self-Serving”

The Global Renewable Fuels Alliance says a report to be discussed during the International Energy Forum’s meeting in Cancun, Mexico late this month, criticized biofuels while ignoring the overwhelming evidence on the devastating impact of crude oil on the environment and on our economies. Bliss Baker, spokesperson for the alliance says, – this report would be laughable if the risks associated with our dangerous reliance on oil were not so serious.

According to Baker – OPEC has dedicated its history to keeping oil prices artificially high and combating any threat to the shocking wealth of its members. He says – it was only a matter of time until it attacked biofuels. Instead, Baker called on the OPEC oil cartel to – embrace biofuels and the competition that it brings to the global fuels markets – instead of stifling competition and keeping prices high.

Baker points out, the report ignores the devastating impact of high crude prices on all economies, especially those of the developing nations and the positive impact that biofuels production is having on fuel supplies and prices. In an era of ever increasing oil prices, Baker says, – biofuels production is more important than ever.
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“E15 Decision by Summer?”

The 25X’25 program reports that an EPA decision on whether to raise the E10 blend level to E15 should not be expected before the end of the summer. EPA Administrator Lisa Jackson says the Department of Energy is scheduled to finish testing on how the fuel will affect automobile engines by April or May.  EPA will base its blend level decision on those results.

Meanwhile, Agriculture Secretary Tom Vilsack offered some optimism, telling reporters on Capitol Hill that all signals suggest the EPA will approve E15. He said – there has been some indication from DOE that in their tests of newer-model vehicles with E15, indicate it does not create any problems. Vilsack added – I think that’s a good sign.

In a recent “state of the industry” address to the annual Renewable Fuels Association meeting, RFA president and CEO Bob Dineen said EPA should – tear down the blend wall – that industry officials say it is driving ethanol to a saturation point in the U.S. transportation fuel market.
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“Work Advances on Siting Wind Farms”

The next step has been accomplished in establishing Wind Turbine Guidelines.  A Federal Advisory Committee reached consensus on a set of draft recommendations aimed at minimizing the impacts of land-based wind farms on wildlife and its habitat.  Department of Interior Secretary Ken Salazar says he will review the recommendations and take them under advisement as he asks the Service to develop guidelines for evaluating wind energy development on public and private lands.

Highlights of the committee’s recommendations include: A decision-making framework that guides all stages of wind energy development; Reliance on the best available science when assessing renewable energy projects and their potential environmental impact; and Use of landscape-scaled planning that recognizes the need to think long-term about protecting our nation’s economic and natural resources.
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“Research Changes Thoughts on Urea”

The fact that nitrogen losses to the air from surface-applied urea could not occur in the cold may only be a myth. Agrotain’s John Hassell says – the fertilizer industry has made assumptions in the past, not based on scientific proof, but rather on long held beliefs.  But, innovative new research has recorded significant losses in those very conditions.

Rick Engel, associate professor in the Department of Land Resources and Environmental Sciences at Montana State University carried out the research over five periods of time and said – we’ve actually seen some of our largest losses when our urea applications are during the late fall or early spring period, even when the soil temperatures are near freezing.

The study was designed to duplicate the common practice of fertilizer application used by wheat growers in the wheat-growing regions of Canada. In three of the first five of these cold-weather studies, more than 30 percent of the applied nitrogen was lost. More specifically, Engle said, – our losses have ranged anywhere from 3 or 4 percent up to 40 percent. He noted, – the conditions that really seem to promote these ammonia losses from urea are prolonged damp conditions.

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