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Conveyor Currents                             December 29, 2011
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Upcoming Dates
                   

 

2012

 

January 11-12, 2012   
Grain & Feed Industry Conference, Embassy Suites, San Luis Obispo, CA


January 17, 2012  
5th  Gordon Currie "Salty" Crab Feed/North Bay District Meeting at Mister McGoos in Petaluma

April 18-21, 2012  
CGFA Annual Convention ~ The Hyatt Regency, Monterey, CA

May 16-17, 2012,  California Animal Nutrition Conference ~ Radison Hotel & Conference Center, Fresno, CA

2013

January 16-17, 2013   Grain & Feed Industry Conference, Embassy Suites, Monterey, CA

April 24-27, 2013  CGFA Annual Convention ~ The Hyatt Regency, Huntington Beach, CA


2014

January 15-16, 2014   Grain & Feed Industry Conference, Embassy Suites, Monterey, CA

April 23-26, 2014  CGFA Annual Convention ~ The Sheraton Resort, Maui, HI


In This Issue
Ethanol Subsidies End; Livestock, Poultry Industry Applaud
New Driver Hours of Service Rules in Place
FDA Withdraws Actions against Antibiotic Use in Feed
Will EPA Take a Regulatory Break During 2012?
EPA Finalizes 2012 Renewable Fuel Standard
NC House Dems Want Farm Disaster Aid Package
Crop Insurance Payout Tops $7 Billion
5th Gordon Currie "Salty" Crab Feed - January 17th
2012 Grain & Feed Industry Conference in San Luis Obispo
Ethanol Subsidies End; Livestock, Poultry Industry Applaud

 

A major gift to the livestock and poultry industries will be conveyed by Congress at midnight, December 31 as federal supports for corn-based ethanol - the blenders' tax credit and an imported ethanol tariff - expire because Congress did not act to extend them. However, livestock and poultry groups, hammered by high feed costs for the last two years because, as they contend, ethanol competition for corn supplies distorted their ingredient prices, know the battle to reform federal alternative fuel energy policy is far from over and the ethanol industry has not surrendered in the war for federal industry supports. "The blenders' credit and import tariff distorted the corn market, creating needless volatility in the cost of animal feed," said the National Turkey Federation (NTF).  

 

The National Chicken Council (NCC) said the sunsetting of federal ethanol supports was due to the "culmination of growing concern among the American public and on Capitol Hill, marked in June by overwhelming bipartisan and bicameral votes to end unnecessary federal support of corn-based ethanol." Analysts contend the loss of the federal ethanol subsidies should lead to some softening of corn demand and more price competition among ethanol plants. The broad ethanol industry, while paying lipservice to extending federal tax supports, has shifted its emphasis and is pushing hard to get an equivalent amount of support - about $6 billion in federal spending last year - shifted to federal spending on ethanol infrastructure, including loan guarantees for pipeline construction, flexfuel pump installations and federal mandates on construction of flexfuel cars and light trucks. NTF says the livestock and poultry industry will continue to push for a rewrite of the Renewable Fuels Standard (RFS), saying the artificial demand created by the fuel blend mandate is also distorting ingredient prices.

 

New Driver Hours of Service Rules in Place

 

Revised hours-of-service (HOS) rules announced by the Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) are now in place. The new rule reduces to 70 hours - a 12-hour reduction - the number of hours a driver can work during a seven-day week, but keeps the 11-hour daily driving limit - a move strongly opposed by the American Trucking Assn. (ATA). The rule also changes the 34-hour "restart" provision that had been opposed by livestock and poultry groups. "Restart" refers to drivers' ability to restart the clock on their driving hours if they take at least 34 hours off-duty. The new rule says that as of July 1, 2013, the 34-hour restart provision includes two 1 a.m.-5 p.m. periods because FMCSA says rest at night is better for the driver than rest during the day, and can only be taken once during a seven-day period. The maximum driving limit will continue to be 14 consecutive hours after coming on duty, and the final rule imposes a 30-minute break if the driver has worked more than eight consecutive hours since his/her last off-duty (sleeper berth) period of at least an hour. The battle over HOS changes isn't over, as legislation approved by the Senate Commerce, Science & Transportation Committee, but not acted on by the full Senate, would require that commercial trucks be outfitted with electronics to ensure compliance with HOS rules.

 

FDA Withdraws Actions Against Antibiotic Use in Feed

 

Two FDA notices of opportunity for hearing (NOOH) - pending since 1977 when FDA first announced it would ban certain uses of penicillin and tetracycline in animal feed - have been withdrawn by the agency, enraging critics, but setting the stage for further FDA actions. FDA announced last week its withdrawal of the NOOH was based on "statutory grounds," and saying it will now focus on "the potential for voluntary reform and the promotion of the judicious use of antimicrobials in the interest of public health." If that doesn't work, the agency said, it will consider regulation. FDA said it remains concerned about antimicrobial resistance, and said, "today's action should not be interpreted as a sign that FDA no longer has safety concerns or that FDA will not consider reproposing the withdrawal proceedings in the future.  

 

FDA has not ruled out the prospect of future regulatory action..." In a related development, Secretary of Agriculture Tom Vilsack, in a joint appearance with Secretary of HHS Kathleen Sebelius to unveil the White House Food Safety Work Group report, was asked about the FDA action in the context of recent food safety recalls said to be tied to a "resistant" form of microbial contamination. He said he'd like to see antibiotics used in the context of disease control and response, and that USDA is working with veterinarians and universities to ensure the judicious use of antibiotics. The department, however, says Vilsack's comments should not be taken to mean support for a ban or lack of support for FDA's action.

 

Will EPA Take a Regulatory Break During 2012?

 

With its status as the epitome of overzealous federal regulation firmly in place, EPA continues to draw outrage from industry groups which contend it conducts its rulemaking in a vacuum with little concern for the cost, benefit or even need for its pending regulations. This week, the American Farm Bureau Federation (AFBF) said it's possible the agency may back away from its zeal to regulate during 2012, especially given it's an election year and President Obama has proved sensitive to criticism of the impact of EPA's rules on the economy and jobs creation. The relationship between EPA and agriculture is "tumultuous," said Mary Kay Thatcher, senior director of congressional relations for AFBF. If Obama is reelected in 2012, the next four years will be "very, very difficult," she said. The GOP-controlled House has passed legislation to limit EPA's ability to regulate greenhouse gas emissions, "farm dust," industrial boilers, cross-state pollution, low-level smog and other rulemakings, but these efforts have seen no Senate action. President Obama pulled the smog rulemaking, and EPA Administrator Lisa Jackson tried to calm congressional nerves by publicly stating her agency has no intention of regulating farm dust, but there is very little trust EPA will do what it says.


 

EPA Finalizes 2012 Renewable Fuel Standard

 

The percentage standards required by federal law under the Renewable Fuel Standard (RFS2) were finally published this week by EPA, several weeks after its deadline to set the new requirements for how much biofuel must be blended with gasoline by major fuel refiners. The 2012 overall volumes and standards are as follow: Biomass-based diesel - 1 billion gallons; 0.91%; advanced biofuels - 2 billion gallons; 1.21%; cellulosic biofuels - 8.65 million gallons; 0.006%, and total renewable fuels - 15.2 billion gallons; 9.23%. The full explanation of RFS2 and the totals can be found at  www.epa.gov/otaq/fuels/renewable/regulations.htm. 

 



 

NC House Dems Want Farm Disaster Aid Package

 

While the House and Senate continue to battle over extending the payroll tax credit - including increased funding for broad federal disaster aid through FEMA - all seven North Carolina House Democrats last week proposed a separate federal disaster program for farmers and ranchers. The program is needed because farmers need money more quickly than other industries. Rep. G.K. Butterfield (D, NC) said, "Farmers often operate on shoestring budgets with tight margins and limited cash flow. If farmers are unable to go to market due to crop losses, and it takes several months to receive a Supplement Revenue Assistance payment or insurance, then they cannot pay employees, purchase new equipment or prepare for the next growing season." The current Farm Bill contains a disaster assistance section that includes feed assistance.

 

Crop Insurance Payout Tops $7 Billion

 

More than $7.1 billion has been paid out by the nation's crop insurance companies during 2011, second only to the $8.6 billion paid out in 2008, the National Crop Insurance Services (NCIS) said last week. Weather-related disasters topped the reasons for the near-record claims, said NCIS. Flooding in the Midwest along the Mississippi and Missouri Rivers, record drought in the southern plains, tropical storm damage in New England and a hard freeze in Florida were just some of the events agriculture was confronted with this year. Increased enrollment in crop insurance was possible because of federal premium subsidies, and by 2010, 256 million acres - valued at $80 billion - was under private crop insurance, NCIS said.


Governor Brown Appointments

 

SACRAMENTO - Governor Edmund G. Brown Jr. today announced the following appointments.

 

As Director, CA Department of Conservation: Mark Nechodom, 56, Sacramento, Democrat, senior advisor to the undersecretary for the US Dept. of Agriculture. Salary: $136,156.

 

At CA Environmental Protection Agency:

As undersecretary: Gordon Burns, 51, Davis, Democrat, attorney, Resources Law Group. Salary: $145,000.

 

Burns has been an attorney for the Resources Law Group since 2010. He was deputy solicitor general at the U.S. Office of the Solicitor General from 2006 to 2010 and deputy attorney general at the California Department of Justice from 1996 to 2006. From 1994 to 1996, Burns was an attorney at Downey Brand Seymour and Rohwer. This position does not require Senate confirmation and the compensation is $145,000. Burns is a Democrat.

 

As assistant general counsel for enforcement: Matthew Maclear, 39, El Cerrito, Democrat, statewide environmental circuit prosecutor, CA District Attorneys Assn. Salary: $121,800.  

 

As chief deputy director, CA Department of Conservation: Jason Marshall, 42, Sacramento, decline-to-state, deputy director, CA Department of Resources Recycling and Recovery (CalRecycle). Salary: $109,752.

 

As assistant director for policy development, Department of Resources Recycling and Recovery (CalRecycle): Scott Smithline, 41, Sacramento, Democrat, consultant, Smithline Group. Salary: $100,008.

 

 

5th Gordon Currie "Salty" Crab Feed - January 17th

The 5th Gordon Currie "Salty" Crab Feed / North Bay District Meeting has been scheduled for Tuesday, January 17, 2012.  The event begins at 6:00 pm at Mister McGoos Restaurant located at 1375 Petaluma Boulevard North, Petaluma, CA.  The cost is $45.00 per person and reservations are due by January 9th in care of Darrel Freitas.  Click here for flyer   

 

 

2012 Grain & Feed Industry Conference in San Luis Obispo

                  GFIC  ~  January 11& 12, 2012
Embassy Suites Hotel in San Luis Obispo, CA


The California Grain & Feed Association is pleased to announce the upcoming Grain & Feed Industry Conference (GFIC). The 2012 GFIC will be held January 11-12 at the Embassy Suites Hotel in San Luis Obispo, California.

 

The program topics for 2012 include:
  • Food / Feed Modernization Act
    • Dr. Jon Goodson, Evonik Degussa Corp.
    • Richard Sellers, American Feed Industry Association (AFIA)
    • Jenna Areias, CA Dept. Food & Agriculture Safe Program
  • CGFA Update
    • Chris Zanobini, CA Grain & Feed Association (CGFA)
  • Compliance Issues
    • Boiler Operators 7 State Requirements/Steps
      • Doug Vickery & Chris Eschete, RF MacDonald Co.
    • Air Quality Issues / Environmental Issues
      • Kevin Clutter, Conestoga-Rovers & Associates
  • Inspectors At Your Plant....What to do when they knock.
    • Charles Keller, Snell & Wilmer
  • Employee/Motivational
    • Dr. Scott Vernon, Cal Poly Faculty

The program begins on Wednesday morning, includes a full day of workshops, luncheon, table top exhibits/displays followed by a barbeque dinner at the CalPoly Feed Mill.   Thursday consists of workshops for ½ of the day and ends with a group luncheon at noon. Spouses who attend will be offered an opportunity to visit the local area for shopping and site seeing.   


Register today .....  it is easy as 1, 2, 3

1. Familiarize Yourself with the Program (click)

2. Book Your Hotel Room (click)

3. Register For the Conference (click)

                                                                   More details can be found at www.cgfa.org/events.html