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AG NEWS 2010/03/11

“Tax Extenders Bill Passes Senate”

Farmers affected by weather-related disasters are one step closer to receiving relief, after the U.S. Senate approved by a vote of 62 to 36 a disaster package as part of the Tax Extenders Act of 2009.  Senate Ag Committee Chairman Blanche Lincoln says – we cannot afford to see our farmers forced out of business because of weather conditions out of their control. This will provide the relief producers need to stay in business.

The legislation, introduced by Lincoln, would provide an estimated 1.1-billion dollars in supplemental payments to producers who suffered crop losses in counties declared “primary” disaster areas by USDA. It also includes a clause extending the biodiesel tax incentive. If passed, the biodiesel tax incentive would, in effect, permit biodiesel producers to increase or, in some cases, resume production.

Also included is 300-million to assist specialty crop producers, 75-million in emergency loans to poultry producers, 50-million in assistance for livestock producers, 25-million in aquaculture assistance and 42-million dollars to aid first handlers of cottonseed.

Iowa Senator Chuck Grassley voted against passage of the Tax Extenders Act based on the addition of another 100-billion dollars to the federal budget deficit. He said this action – hurts economic recovery efforts and America’s financial stability for Congress to continue rampant deficit spending. Senator Grassley says, – it was irresponsible and even offensive for congressional leaders to make the extension of important renewable energy tax incentives contingent on adding to the federal budget deficit.
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“ASA Looks for Quick Final Agreement on HR 4213 Between House and Senate”

The American Soybean Association is applauding Senate passage of the American Workers, State and Business Relief Act – also known as the Tax Extenders Act – which includes a retroactive extension of the biodiesel tax credit. But there are differences between the Senate-passed measure and the version approved by the House that must be worked out. ASA is urging Congress to work quickly to seek agreement on a final bill so the extension of the tax incentive is enacted as soon as possible.

The December 31, 2009 expiration of the credit has essentially caused the production and use of biodiesel to cease in the U.S. – placing thousands of jobs supported by the domestic biodiesel industry in jeopardy.

ASA notes biodiesel has provided a significant market opportunity for U.S. soybean farmers – as well as jobs and economic development for rural communities – and helps reduce the nation’s dependence on imported petroleum.
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“Subcommittee Reviews USDA’s IT Systems”

The House Agriculture Subcommittee on Department Operations, Oversight and Forestry met to review USDA’s information technology systems Wednesday. USDA’s Chief Information Officer Chris Smith and Farm Service Agency Administrator Jonathan Coppess testified before the subcommittee – as did representatives from ag organizations interested in improving the IT systems at USDA.

Subcommittee Chair Joe Baca says efficient and cost-effective information technology programs at USDA are critical to the successful delivery of thousands of nutrition and farm programs. He says the hearing provided an excellent opportunity to understand the scope of technological problems at the Department – and collaborate on the important steps that must be taken to resolve them.

According to Ranking Member Jeff Fortenberry – technology is advancing at a dizzying rate – and to serve agricultural producers more efficiently – USDA must integrate technological advancements into its existing infrastructure. He says it’s important to ensure necessary reforms provide a reliable, secure system so that all stakeholders can have confidence in the delivery of our farm bill programs in a timely manner.
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“NFU Participates in Technology Hearing”

National Farmers Union President Roger Johnson told the House Ag Subcommittee that American farmers are being asked to produce more food, fiber and fuel with greater precision and efficiency, and they are answering the call by investing in new technological systems. He says it’s only logical that USDA would do the same.

The USDA Farm Service Agency computer system remains unstable which has resulted in service disruption to producers. The Appropriations Committee has been in search of a means to pay for the necessary upgrades for several years, yet is still unable to guarantee the funding will be available at the end of the appropriations process.

Johnson says – we are confident that with proper management strategies, adequate resources and proper planning, USDA can meet the challenge of harnessing information technology in a way that will benefit our nation’s farmers and ranchers.
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“NACD Testifies on Importance of Technology to Efforts”

The National Association of Conservation Districts was also among those represented at the House Ag Subcommittee hearing on USDA’s information technology systems. Speaking on NACD’s behalf – conservation district supervisor Jim Krosch of the Stevens Soil and Water Conservation District in Minnesota urged Congress to continue to invest in and improve the software and technology that enables conservation districts and their federal partners to help landowners plan and implement appropriate conservation practices and programs.

Krosch told subcommittee members that USDA relies on conservation districts and other partners to help deliver local technical services to farmers, ranchers, private landowners and urban communities. But conservation district employees also rely on USDA data and technical tools to support local conservation efforts. He said the better the technology we have, the better we can serve our producers – and in the end achieve our goal of putting conservation on the ground.
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“Tainted HVP Forces More Recalls”

Windsor Foods operations in Lampasas, Texas and Oakland, Mississippi are recalling approximately 1.7 million pounds of ready-to-eat beef taquito and chicken quesadilla products that may be contaminated with salmonella. And, Denison, Texas-based Ruiz Foods is recalling approximately 116-thousand pounds of a ready-to-eat beef product. Each company’s products contain Hydrolyzed Vegetable Protein.

HVP was recalled on March 4 after a potential salmonella contamination was found in the product. FSIS has received no reports of illnesses associated with the consumption of these products.
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“AVMA Questions Dropping Animal ID Program”

A recent decision by USDA to scrap a national animal identification system could seriously hinder U.S. veterinarians’ ability to track diseased animals and prevent the spread of those diseases. Dr. Ron DeHaven, chief executive officer of the American Veterinary Medical Association, says – by having an animal ID program in place, we can more quickly contain and eliminate disease. According to DeHaven – doing so not only minimizes economic impact, but by minimizing the number of animals affected, we reduce animal suffering.

DeHaven is also critical of the USDA announcement that cattle branding—an outdated form of theft deterrent—will be an acceptable form of animal identification in the new system. DeHaven says – it’s hard for me to imagine how this ancient technology will fit into a modern, interstate system to trace animals.

A new proposed system will be administered by individual states and tribal nations. Each will be allowed to use its own system of identification. Dr. DeHaven questions if – these programs will be compatible with each other.  He asks, – will we actually be able to trace animals as they move from state to state with different systems in each state or tribal nation?
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“Pork Board Sets New Vision for Industry”

The National Pork Board has set a new vision for the pork industry.  The vision statement, “Leading a world-class food industry – Responsible. Sustainable. Professional. Profitable.” – comes from a strategic five-year plan also developed by the board. Tim Bierman, a Larrabee, Iowa, pork producers and president of the National Pork Board said the vision was – built by pork producers, for pork producers.

Part of what it means to be a world-class pork industry includes: Being socially responsible; Adopting ethical production practices; Acting in a professional and competent manner at every level of the industry; and Providing top-quality food products for consumers at a reasonable price.

Bierman said – these points describe core industry values that all members of our industry should strive to implement on a daily basis.
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“Competition and Regulatory Workshop Set”

The Departments of Justice and Agriculture have announced an updated schedule and panelists for the first joint public workshop to explore competition and regulatory issues in the agriculture industry. The goals of the workshop is to promote dialogue among interested parties and foster learning with respect to the appropriate legal and economic analyses of these issues, as well as to listen to and learn from parties with experience in the agriculture sector.

U.S. Senators Saxby Chambliss and Pat Roberts sent letters to Secretary Vilsack and Attorney General Holder urging the Administration to ensure the events are balanced and reflective of the diverse agriculture industry.  The Senators further expressed concern that any review include careful consideration of any unintended consequences of government intervention in the market and that the workshops themselves not be used as a venue for public scrutiny of agricultural businesses that are already subject to existing antitrust laws.

This first workshop will be held tomorrow (Friday) in Ankeny, Iowa, at the FFA Enrichment Center at Des Moines Area Community College. U.S. Attorney General Eric Holder, U.S. Agriculture Secretary Tom Vilsack and Assistant Attorney General for the Justice Department’s Antitrust Division Christine Varney will participate in the workshop. Also participating will be Iowa Lt. Governor Patty Judge, Iowa Attorney General Tom Miller and Iowa Agriculture Secretary Bill Northey.

They will participate in a roundtable discussion with presentations on current issues affecting farmers. Testimony and roundtable discussion by a panel of farmers will follow. The workshop will also feature two panels focusing on the competitive dynamics in the seed industry and trends in contracting, transparency and buyer power. The workshop will end with an enforcer roundtable and public testimony.
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“Hormones Help Cotton Growth in Arid Areas”

The Agricultural Research Service reports that a naturally occurring class of plant hormones called cytokinins has been found to help increase cotton yields during drought conditions. John Burke, director of the ARS Cropping Systems Research Laboratory in Lubbock, Texas, found that applying cytokinins to cotton crops can increase yields in water-limited environments with reduced irrigation or no irrigation. Commercially produced cytokinins are routinely applied in apple and pistachio orchards to promote fruit growth.

Half of the U.S.-produced cotton is grown in the arid high plains of Texas. In addition to a short growing season, 60 to 65 percent of the acreage in the area is dry land and relies on rainfall for soil moisture. Young cotton seedlings have small root systems, making it difficult for them to reach available soil water. Cytokinins trick the young plant’s water stress defenses, prompting the plant to quickly build a bigger root system to access deep soil moisture. They also stimulate the growth of a protective wax on the surface of the plant that helps reduce water loss.

Tests conducted by Burke found one application of cytokinins produced a 5 to 10 percent increase in yields under water-reduced conditions. Additionally, tests determined that cytokinins didn’t help or hinder yields under fully irrigated or rainy conditions, making it safe for use in all weather environments. Cytokinins can be applied when conducting normal weed-management practices early in the season.

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