Week of May 14-18, 2007
Archive
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May 25
CONGRESS APPROVES SUPPLEMENTAL SPENDING BILL---Congress has approved a $120 billion supplemental spending bill with funding for the wars in Iraq and Afghanistan. The House passed the measure on a 280 – 142 vote, followed by a Senate vote of 80 – 14. The bill includes $3 billion in agriculture disaster assistance. It also funds the Milk Income Loss Contract program through September, which ensures its inclusion in the farm bill budget baseline.
In addition, the bill includes provisions for a phased-in minimum wage. This will be the first increase in the federal minimum wage in nearly a decade. The minimum wage will rise from $5.15 an hour to $5.85 by the end of the summer, with another 70-cent increase in 2008 and a final bump-up in 2009, bringing the minimum wage to $7.25 per hour.
The bill does not include requirements related to troop withdrawals and President Bush is expected to sign it.
AFBF supports the disaster assistance and MILC provisions in the bill, but opposes the federal minimum wage increase.
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KOREA, U.S. RELEASE TEXT OF TRADE DEAL---South Korea and the United States have released the full text of the free trade agreement between the two nations. The deal is expected to go through additional revisions to make sure it meets U.S. labor and environment standards.
“It’s a very good agreement with a very high level of sophistication,” said South Korean Prime Minister Han Duck-soo.
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May 24
ESTATE TAX BILL INTRODUCED IN HOUSE---Rep. Kenny Hulshof (R-Mo.) and Bud Cramer (D-Ala.) have introduced H.R. 2380, the Death Tax Repeal Permanency Act of 2007, with 67 co-sponsors. The bill strikes the sunset clause in current law so that when death tax repeal takes place in 2010, it will be permanent. Under current law, death taxes would be repealed for only one year and would be reinstated in 2011, with a $1 million exemption and 55 percent rate.
Farm Bureau supports permanent repeal of the death tax.
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AFBF KICKS OFF BLOG---The American Farm Bureau Federation today unveiled its new blog, written by members of the Young Farmers and Ranchers Committee. The blog is located at: www.fb.org/blog. The goal of the YF&R blog is to educate the public about agriculture issues, while giving them access to talk with young producers.
YF&R Chair Chris Chinn kicked off the blog with a post encouraging kids to stick with agriculture. New blogs from other young producers will be posted at least twice a week.
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May 22
SENATE SETS GOAL OF WRAPPING UP IMMIGRATION IN JUNE---The Senate on Monday voted to proceed with debate on immigration reform legislation. According to Senate Majority Leader Harry Reid (D-Nev.), the Senate will start working on the immigration bill this week, but will not have enough time to complete debate. Instead, the Senate will take up the bill again during the week of June 11, with a goal of voting on it by June 15.
One provision that is helpful to agriculture establishes a “Z” visa for undocumented workers. If it remains in the final version of the legislation, the Z visa could benefit America’s farmers and ranchers, according to Paul Schlegel, labor specialist with the American Farm Bureau Federation. “We need to make sure there is a practical guestworker program that allows us to bring in needed labor,” he said.
Dozens of amendments to the legislation are expected to be offered during debate.
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---OIE GIVES U.S. NEW MEAT ‘RISK RATING’---The World Organization for Animal Health (OIE) today gave the U.S. a “controlled risk” rating for meat safety. The rating, by the Paris-based organization that sets animal health guidelines for nations around the world, could be a jumpstart for U.S beef exports, which have been down since bovine spongiform encephalopathy was discovered in a U.S. cow in 2003. Since then, markets including South Korea, Japan, China and Russia have all barred U.S. beef, with only some partially reopening markets.
“We will use this international validation to urge our trading partners to reopen export markets to the full spectrum of U.S. cattle and beef products,” said Agriculture Secretary Mike Johanns in a statement today. “We are notifying our trading partners of our expectation that they commit to a timeframe to amend import requirements and expand access to their markets to reflect this controlled risk determination. We will use every means available to us to ensure that countries rapidly take steps to align their requirements with international standards.”
- · USDA statement
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---HOUSE AG COMMITTEE FARM BILL WEB SITE LAUNCHED---The House Agriculture Committee’s farm bill Web site includes preliminary discussion drafts that will be used by subcommittees to mark up proposed legislation. Discussion drafts on the conservation, credit, research and energy titles have been posted. The site will be updated periodically.
The subcommittee on Conservation, Credit, Energy and Research is scheduled to begin consideration of the conservation title today and could move on to credit, research and energy later in the week.
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FOOD BANK DONATIONS DECLINING---Nationwide, donations of imperfectly packaged canned and boxed items to food banks from processing companies have dropped sharply in recent years. Improved packaging technology that results in fewer labeling errors on boxes and cans is one reason donations have dropped. Food manufacturers are also starting to produce products in quantities that better match the needs of retailers, resulting in fewer returns that are donated to food banks.
In response to these trends, food banks have started accepting new types of food such as perishables. Direct pickup of food donations from farms is another tactic employed by some food banks to boost supplies.
May 21
HOUSE AG COMMITTEE PASSES EMINENT DOMAIN BILL---The House Ag Committee has approved H.R. 926, the Strengthening the Ownership of Private Property Act. The bill addresses the Kelo vs. City of New London, Conn., Supreme Court decision by prohibiting the distribution of federal economic development funds to states that use eminent domain for private commercial development or fail to pay relocation costs for persons displaced by such actions.
It is not known when the bill might be up for consideration by the full House. It is similar to one passed by the House in fall 2005.
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JAPAN SUSPENDS BEEF IMPORTS FROM CARGILL PLANT---The Japanese government has temporarily banned U.S. beef imports from a Cargill plant in Fort Morgan, Colo. A shipment of beef that included frozen beef liver and stomach parts arrived in Japan in early May without all required safety certificates.
The shipment may include beef from U.S. cattle older than 20 months, which violates the U.S.-Japan beef trade agreement now in place. The U.S. government must now provide Japan with a detailed explanation regarding the shipment.
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HIGHER ELECTRICITY PRICES EXPECTED THIS SUMMER---Wholesale electricity prices nationwide are likely to be higher this summer than last, due to increased natural gas prices, according to the Federal Energy Regulatory Commission.
FERC’s summer energy market assessment predicts sporadic electric grid reliability problems over the next few months. The agency weighs several factors to come up with the annual prediction for the summer months, including long-term weather forecasts, regional transmission organization predictions, and grid upgrades and investments.
Although higher prices are expected, peak demand this year is unlikely to top records set last summer, according to the commission. Electricity demand is expected to drop in California, New England, New York, Ontario and parts of the mid-Atlantic, with higher demand anticipated in the Southeast, the upper and lower Midwest, and Texas.
May 18
JAPAN UNYIELDING ON U.S. BEEF IMPORT CHANGES---Japan’s agriculture minister told Agriculture Secretary Mike Johanns he will not go along with the U.S. request for his country to begin accepting beef from U.S. cattle 20 months or older. Toshikatsu Matsuoka and Johanns met in Paris for an unofficial ministerial meeting on the Doha round of World Trade Organization trade talks.
At the end of May, the World Organization for Animal Health (OIE) is expected to announce a decision allowing the U.S. to export beef from cattle of any age. Matsuoka has said the announcement by OIE would not automatically bring a change in Japan’s import restrictions on U.S. beef.
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---CHINA CLAIMS ITS FOOD POLICIES ARE SOUND---Chinese government officials continue to maintain the country’s food is safe and inspections for the presence of melamine that tainted pet food ingredients have turned up nothing. Chinese officials joined Food and Drug Administration officials as they toured two companies implicated in the contamination.
FDA is continuing its investigation and continues to hold China responsible.
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DUKE PUBLISHES GUIDE TO ACHIEVING GREENHOUSE GAS OFFSETS
The first how-to manual for reducing U.S. greenhouse gas emissions through changes in land use and farming practices, and turning those reductions into verifiable credits for trading in carbon markets, will be available from Duke University Press in June.
“Harnessing Farms and Forests in the Low-Carbon Economy: How to Create and Verify Greenhouse Gas Offsets” is a technical guide for farmers, foresters, traders and investors. Duke's Nicholas Institute for Environmental Policy Solutions developed the guide in collaboration with the activist group Environmental Defense, with input from scientists at Texas A&M, Colorado State, Rice, Princeton, Kansas State and Brown universities.
May 16
USDA CLEARS HOGS FOR PROCESSING---Meat from hogs fed rations that included pet food scraps contaminated with melamine and related compounds is safe for human consumption, according to the Agriculture Department. Based on test results on the safety of meat products, USDA is allowing hogs now held on farms to be released for processing.
Testing indicates melamine and related compounds do not accumulate in pork and are filtered out of the body by the kidneys. The testing also bolsters the conclusions reached by a human health risk assessment that there is a very low risk of human illness from the consumption of meat from animals exposed to the feed. According to USDA, hogs known to have eaten the feed appear healthy, which will be confirmed as the animals undergo the rigorous inspection that USDA’s Food Safety and Inspection Service provides for all meat and poultry prior to processing.
Approximately 56,000 hogs ate tainted feed and were held on farms in California, North Carolina, South Carolina, New York, Kansas, Utah and Illinois. USDA will provide compensation to producers for certain additional costs incurred as a result of voluntarily holding the animals. Approximately 100 million swine are processed each year in the U.S.
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PURDUE UNIVERSITY LAUNCHES FARM BILL WEB SITE---A new Purdue University Web site covers topics that will be affected by the 2007 farm bill, including conservation, energy and commodities.
According to a Purdue press release, the site was designed to provide useful information for the debate on what the new farm bill should look like, including general background about farm policies and alternative proposals.
May 15
PRESIDENT BUSH ORDERS GREENHOUSE GAS EMISSION CONTROLS---President George Bush has issued an executive order calling on the Environmental Protection Agency, and the Agriculture, Transportation and Energy departments, to jointly write regulations that will cut gasoline use and control greenhouse gas emissions from cars and trucks. Bush’s plan to cut U.S. consumption of gasoline by 20 percent over the next 10 years leans heavily on greater production of ethanol and other renewable fuels.
The president encouraged the agencies to use his “20 in 10 plan” as a starting point for writing new regulations, rather than waiting for legislation. Requiring the annual use of 35 billion gallons of alternative fuels and increasing fuel economy standards for new vehicles are key avenues to reducing overall U.S. gasoline consumption, according to the administration.
EPA has been charged with implementing the new regulations before January 2009, when Bush leaves office. The agencies plan to release a proposed rule in a few months, with a final rule in place by the end of 2008, according to Stephen Johnson, EPA’s administrator.
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---U.S., SOUTH KOREA WILL MEET ON BONE-IN BEEF ISSUES---U.S. and South Korean officials have agreed to meet at the end of May for discussions regarding quarantine issues, including bone-in beef. The meeting will take place after the World Organization for Animal Health conference concludes in Paris on May 25.
South Korea accepts U.S. beef shipments, but only boneless cuts from cattle younger than 30 months. In 2006, three shipments of U.S. boneless beef were rejected by South Korean officials, due to the presence of bone chips. Since then, South Korean officials have said they would reject individual packages of U.S. beef containing bone fragments, rather than entire shipments.
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STUDY SHOWS LIVESTOCK COULD HELP TREAT HUMAN DISEASES---Transgenic livestock could play an important role in the development of new medicines and more affordable treatments for human diseases, according to scientists with the Council for Agricultural Technology. A new CAST paper, “The Role of Transgenic Livestock in the Treatment of Human Disease,” takes a comprehensive look at the subject.
Transgenic animals may be able to produce substances such as proteins and antibodies for treating certain infections, cancer and autoimmune diseases. They may also prove to be useful test subjects for research on human diseases.
Greater public understanding of the advantages and challenges associated with transgenic livestock is possible through education, according to Iowa-based CAST, which is an international consortium of 38 scientific and professional societies that assemble and interpret scientific information.
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USDA: LARGE RETAIL FOOD PRICE JUMP UNLIKELY IN 2007---Although corn-based ethanol production is expected to increase 58 percent in 2007, retail food prices are not expected to increase substantially during the same time period, according to Keith Collins, chief economist at the Agriculture Department.
Collins said U.S. food prices have increased about 7 percent so far this year. He attributed the increase primarily to bad weather that harmed fruit and vegetable production, as well as small Australia wheat crops. Collins predicted retail food prices, particularly for poultry and beef, will be slightly higher over the next few years due to growing renewable fuels production in the U.S.
AFBF tracks retail food price trends through its quarterly 16-item marketbasket survey. AFBF’s most recent informal survey revealed a 4 percent increase in retail prices from the fourth quarter of 2006 to the first quarter of 2007. A news release comparing first- and second-quarter retail food prices recorded by AFBF volunteer shoppers will be released in early July.
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May 14
USDA PROPOSES NEW RULES FOR RURAL BROADBAND---Agriculture Undersecretary for Rural Development Thomas C. Dorr announced last week a new proposal designed to support the development of broadband services in rural communities nationwide.
Key elements of the proposal include: Promoting deployment to rural areas with little or no service; ensuring that residents in funded areas get broadband access more quickly; limiting funding in urban areas and areas where a significant share of the market is served by incumbent providers; clarifying and streamlining equity and marketing survey requirements; increasing the transparency of the application process, including legal notice requirements, to make more informed lending/borrowing decisions; promoting a better understanding of all application requirements; and ensuring that project funding is keeping pace with increasing demand for bandwidth.
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ETHANOL CO-PRODUCT A NEW WEED FIGHTER?---Distillers dried grains (DDGs) – co-products of converting corn into ethanol -- are usually fed to livestock. But a new use could be on tap: fighting weeds and reducing herbicide use. That's the hope of plant physiologist Steve Vaughn and colleagues with the Agricultural Research Service in Peoria, Ill.
Vaughn is among approximately 100 scientists seeking to identify new, value-added uses for farm-based commodities like DDGs and help bring them to commercial fruition by developing novel processing technologies. In laboratory, greenhouse and field studies over the past few years, Vaughn has shown that applying DDGs to soil as a surface mulch can not only suppress weeds, but also bolster the growth of tomatoes and some turfgrasses. In one study, for example, Roma tomatoes in DDG-treated plots yielded 226 pounds versus 149 pounds from untreated control plots. Vaughn attributes some of the increase to nitrogen, phosphorus and other nutrients released by the DDG mulch as it decayed.
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GLAUBER TO REPLACE CROWDER AS TRADE ENVOY---Agriculture Secretary Mike Johanns announced last week that he was assigning Joseph W. Glauber, a distinguished economist and expert in the field of international agricultural trade, to the position of special Doha agricultural envoy at the office of the U.S. Trade Representative. Dr. Glauber will step into Ambassador Dick Crowder's role as lead agriculture negotiator for the Doha Round.
Glauber has served as deputy chief economist at the U.S. Department of Agriculture since 1992. In addition to his work in the Doha negotiations, he served as economic adviser at the so-called Blair House agreements leading to the completion of the Uruguay Round negotiations. He is the author of numerous studies on crop insurance, disaster policy and U.S. farm policy. Prior to his current position, he served as senior staff economist for agriculture, natural resources and trade at the President's Council of Economic Advisers and as an economist at the Economic Research Service, USDA. |
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