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Conveyor Currents                               January 13, 2012
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Upcoming Dates
                  

2012

 

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

April 17-18, 2012, Montana Livestock Forum and Nutrition Conference in GranTree Inn, Bozeman, MT

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
Two Important Water Bills Heard in Committee
Anti GMO Bill to be Heard In Appropriations Committee
Legislative Analyst Takes Critical View of Governor Brown's Budget.
Surprise Increase in Corn Production: USDA
USDA to Hold Public Ag Air Quality Task Force Meeting Feb 7-8
Ethanol Now Consumes More Corn than Feed Use: Private Analyst
House Listeria Outbreak Investigation Says Private Audits No Food Safety Assurance
Deadline for U.S. Appeal of WTO COOL Ruling Extended
After No Administration Response, Ag/Food Coalition Asks EPA to Suspend Dioxin Plans
USDA to Close 259 Offices Nationwide Beginning July 1
Job Opportunity
Montana Farmers File Class Action Suit against John Corzine over MF Global Debacle
NLRB Finalizes 'Ambush' Union Election Rule
Two Important Water Bills Heard in Committee

 

The Assembly Water Parks and Wildlife Committee this week considered two important two-year bills - AB 157 (Jeffries) and AB 550 (Huber). Both bills had been held over in Committee from last year. 

 

AB 157 proposes a 25% across-the-board reduction in all categories of the current water bond. After a lively debate, AB 157 was defeated on a vote of 1 Aye and 10 No votes. However, many committee members expressed an interest in keeping the discussion alive regarding revisions to the current water bond in order to make it more palatable to the public when it votes in November.   Assemblyman Huffman expressed a view that the water bond should have remained on the November 2010 ballot which he believes would have led to its defeat.

 

AB 550 prohibits construction of a peripheral canal unless (1) there is an independent cost analysis performed by the Legislative Analyst Office and (2) a vote of the legislature based upon such cost analysis. After extensive testimony, the bill was defeated on a vote of 5 Aye votes and 6 No votes - the bill needed 7 affirmative votes to pass the 13 member committee. The bill was opposed by Metropolitan Water Districts (MWD), Association of California Water Agencies (ACWA), numerous water agencies, labor unions, many agricultural groups and the LA Board of Supervisors.

 

Although these two-year bills were held in committee, it is fully anticipated that the topic of both bills will be the subject of intense debate over the next several months as decisions are made regarding the water bond on the November 2012 ballot. Also, there are likely to be introduced bills on these topics before the February 24 bill introduction deadline date.

 

Anti GMO Bill to be Heard In Appropriations Committee

 

A broad coalition of agricultural groups, food processors, biotech and pharmaceutical association
shave worked to have an anti GMO bill die in a key legislative committee. AB 88 (Huffman) which would mandate a label on GMO farm raised salmon went down to defeat 6 Yes votes to 9 No votes last summer. However, the bill was granted reconsideration. A coalition of anti biotech groups including the Center for Food Safety, Sierra Club and Commercial Fishing entities are sponsoring the bill and working hard on its passage. The bill will be heard January 18th.

 

 

Legislative Analyst Takes Critical View of Governor Brown's Budget

  

The Legislative Analyst which is a non partisan advisor to the Legislature said that the Governors budget underestimates revenues by $3.9 billion. About $3.7 billion of the difference is in estimates of state income tax collections, primarily taxes on capital gains.

 

The Democratic governor says California taxpayers will reap $65 billion in capital gains in the 2012 tax year. The analyst says $62 billion. That's roughly $3 billion of the $3.9 billion difference in expected tax revenue.  "Our revenue estimates - including estimates of state revenue gains from the governor's proposed initiative - currently are lower than the administration's," the analyst writes.

 

"Already California's budget is dependent on volatile income tax payments by the state's wealthiest individuals and the governor proposes that these Californians pay more for the next few years. As has become evident in recent years, differing fortunes for these upper-income taxpayers can create or eliminate billions of dollars of projected state revenues." The top 1 percent of filers pay roughly 40 percent of state income taxes.

 

More ominously, the analyst says, "If our current revenue estimates are closer to the target than the administration's, the Legislature will have to pursue billions of dollars more in budget-balancing solutions." Making the state's cash-starved general fund solvent can be done in one of three ways: Raising the amount of revenue it receives, reducing the cost of services it provides or a combination of the two.

 

The analyst notes that its forecasting method differs from the Brown administration making comparison difficult. But even when comparing apples to apples, the Brown administration is still far more optimistic.  For example, the Democratic governor predicts federal tax cut rates from 2001 will expire at the end of 2012, as scheduled. The analyst doesn't. Brown says the expiration will drive taxpayers to cash out capital gains in 2012 under the more favorable rates than wait until 2013.

 

So the analyst removed the tax shift effect from its assumptions.Even without it, Brown estimates $20 billion more in capital gains than the analyst each year for two years.  "Over time, (the Department of Finance) assumes capital gains begin to approach levels only experienced during previous stock market and real estate 'bubbles.' We advise the Legislature to regard these estimates with some caution."

 

The analyst also reiterates his view that the Democratic governor's plan to increase state income taxes on upper income Californians for five years and boost the sales tax by .5 percent will generate $2.1 billion less than the nearly $7 billion Brown estimates.

 

 

Surprise Increase in Corn Production: USDA

 

Commodity markets rocked and rolled today after USDA released its Crop Production 2011 Summary Report showing corn for grain production is now estimated to be 12.4 billion bushels, up 1% from last month, but still about 1% less than 2010. Average yield was also revised upward by about half a bushel per acre to 147.2 bushels, 5.6 bushels per acre below 2010. Area harvested was set at 84 million acres, up slightly from November and up 3% from last year. Soybean production totaled 3.06 billion bushels, again up from November, but still down 8% from a year ago. Average yield per acre was set at 41.5 bushels, slightly more than forecast in November, but 2 bushels less than a year ago. Harvested area was down 4% to 73.6 million acres.

 

USDA to Hold Public Ag Air Quality Task Force Meeting Feb 7-8

 

USDA's Agricultural Air Quality Task Force (AAQTF) will hold a public meeting Feb. 7-8 in Tempe, Arizona, "to continue discussions on critical air quality issues related to agriculture," with specific emphasis on obtaining "a greater understanding of the relationship between agricultural production and air quality." The committee will reserve time for public comment, the department said.

 

Ethanol Now Consumes More Corn than Feed Use: Private Analyst

 

More of the U.S. corn crop is now going to ethanol production than to livestock and poultry feed use and this trend will continue to at least 2014, according to North American Risk Management Services Inc. The market analysis company says corn for ethanol use increased 400% from 1.3 billion bushels in 2005 to 5 billion bushels last year, exceeding 40% of the crop. Feed use fell 22% during the same period as producers shifted to alternative feeds, including dried distillers solubles, an ethanol byproduct. The company says ethanol could take as much as 5.1 billion bushels in the year that began September 1, or roughly 41% of the crop. Feed demand is forecast to drop to 4.6 billion bushels, down from about 4.8 billion last year.

 

House Listeria Outbreak Investigation Says Private Audits No Food Safety Assurance

 

A House Energy & Commerce Committee investigation of a cantaloupe-related Listeria monocytogenes outbreak says relying on third party private food safety auditors is no guarantee of enhanced food safety. In an eight-page digest of staff interviews and investigations in the case of Jensen Farms, a Colorado cantaloupe grower, linked to what the committee calls the deadliest outbreak of foodborne illness in 25 years, one that killed 30 and put another 146 in the hospital, the farm owners said they thought they were enhancing food safety when they switched from a chlorinated rinse system to a non-chlorine system after discussing the move with a private food safety auditing company and an equipment broker. However, FDA now says the system switch was the likely source of the contamination. The farm had received superior ratings from Bio Food Safety, a subcontractor of the auditing company, Primus Lab. Federal officials, cantaloupe industry representatives and academics, met this week at the University of California-Davis to discuss the report.

 

Deadline for U.S. Appeal of WTO COOL Ruling Extended

 

The World Trade Organization (WTO) this week gave the U.S., along with Canada and Mexico, an additional 60 days to decide whether or not to appeal a November, 2010, WTO ruling holding the U.S. country-of-origin labeling (COOL) law violates WTO trade rules. March 23 is the new deadline for comments. Canada and Mexico filed the complaint in December, 2008, alleging the U.S. law unfairly imposes costs on their exports, reduces their markets and their competitiveness. The WTO found the U.S. law requiring the country of origin to be listed on labels for fish, fresh meats and some fresh produce in violation of global trade rules and "unfairly hurts agricultural commerce"


After No Administration Response, Ag/Food Coalition Asks EPA to Suspend Dioxin Plans

 

The Food Industry Dioxin Working Group (FIDWG), a Washington, DC, coalition of 18 farm, feed, grain, processing and retail food groups, having received no response to a December, 2010, letter to the White House, EPA, USDA, FDA and USTR, has now formally requested EPA Administrator Lisa Jackson to suspend all interagency reviews of its draft non-cancer dioxin risk reassessment until the agency meets with affected stakeholders and fulfills other legal requirements. The non-cancer risk reassessment carries a reference dose (RfD) of 0.7 picograms per kilogram per day for the average consumer, a level, the coalition says that is arbitrarily low, can be exceeded by a consumer after an average meal or heavy snack, is out of sync with the rest of the world's regulatory bodies, and ignores the fact that current dioxin exposure is less than background level, emissions having been cut by over 92% over the last 15 years.  

 

Further, the FY2012 appropriations bill instructs EPA to fix its broken Integrated Risk Information System (IRIS), a database through which suspected harmful chemicals are run, and to provide documentation on any FY2012 draft chemical actions it intends to take. The coalition, coordinated by the American Feed Industry Assn. (AFIA), represents the National Grain & Feed Assn. (NGFA), National Oilseed Processors Assn. (NOPA), American Farm Bureau Federation (AFBF) and others, in an ongoing battle over what it sees as EPA's intent to create an avoidable and unnecessary food safety scare, forcing USDA and FDA to try and calm consumer concerns.

 

USDA to Close 259 Offices Nationwide Beginning July 1

 

Citing congressional discretionary spending cuts of 12% or roughly $3 billion since FY2010, and anticipating deeper cuts in FY2013, along with a White House order to consolidate and streamline services, Secretary of Agriculture Tom Vilsack this week announced USDA will close 259 offices in the U.S. and globally to save an estimated $150 million a year in administrative costs, including rent, travel and supply purchase reductions. Vilsack, after notifying congressional leaders, made the announcement during a speech Monday at the American Farm Bureau Federation (AFBF) annual meeting in Honolulu, Hawaii, while various USDA subcabinet officers in Washington, DC, held briefings to assure stakeholders no program or service cuts will result from the facility closings since the cuts affect only USDA's administrative budget, not program budgets. The facilities slated for closing are as follows:

 

Farm Service Agency (FSA) - 131 county offices in 32 states;                                              

Food Safety & Inspection Service (FSIS) - Five district offices in five states;                      

Foreign Agriculture Service (FAS) - Two country offices;                                                    

Animal & Plant Health Inspection Service (APHIS): 15 offices in 11 states & five offices overseas;                                                                                                                                

Rural Development - 43 area and sub offices in 17 states and territories;                             

Natural Resources & Conservation Service (NRCS) - 24 soil survey offices in 21 states;  

Agricultural Research Service (ARS) - 12 programs in 10 locations, and                               

Food, Nutrition & Consumer Services (FNCS) - 31 field offices in 28 states.

 

When it comes to closing FSA offices, Vilsack faces legal restrictions in the 2008 Farm Bill, inserted shortly after then-Secretary of Agriculture Mike Johanns announced he wanted to close 600 FSA offices. USDA must now hold public hearings within 30 days if it intends to close or consolidate offices with two or fewer employees. Vilsack said those hearings are being scheduled and he'll take another 90 days to review the comments. Dubbing the effort a "Blueprint for Stronger Service," Vilsack anticipates few employee layoffs as 7,000 USDA workers have taken early retirement or separation packages over the last 15 months, and as many as 2,000 more are expected to accept the same offers by the end of 2012.

 

"Our workload is at a record high, we have less money and fewer people, and work to do and we tried to address how do you do that without interrupting service," Vilsack said to reporters. "Not all of these (vacated) positions will be filled, and employees will be given options to move to other offices within 20 miles of closed facilities," he said. In addition, Vilsack said the department is consolidating more than 700 cell phone plans into 10; standardizing civil rights training and purchases of cybersecurity products, and streamlining and centralizing USDA employee services.

 

Job Opportunity

 

NWGG CEO POSITION ANNOUNCEMENNT

 

Chief Executive Officer

 

Company Description:  

Northwest Grain Growers (nwgrgr.com) is a leading Pacific Northwest Agricultural Cooperative. The Company specializes in grain marketing and trading. It is located in Walla Walla, Washington, a thriving and vibrant community located in SE Washington State. 

 

The company has 30 employees, 1300 members of which 350 are active producers and 950 are landowners.  It includes 19 grain handling facilities, a prominent wholesale and retail seed operation, 6 trucks, 25 million bushel average yearly volume, and $200 million dollars in average annual sales.  The Company also has several affiliated business relationships with joint venture partners.

 

The current CEO is retiring after 20 years with the company thus necessitating filling his position.


CEO Responsibilities:
 

Reports to a nine-member Board of Directors

Manages and Directs operational and administrative activities in an effort to optimize profitability, personnel development, and patronage.  Executes general policies and specific plans set forth by the Board of Directors.  Executes and/or oversees the buy/sell functions of the cooperative. Has total responsibility for the protection and safekeeping of all equipment, machinery, products, records, staff, and profitability.  Represents the Company as a board member and interfaces regularly with the Company's affiliated business partners.                

Minimum Qualifications (education, experience, skills)   

10 years of relevant technical and management experience in the grain industry.

 

BA/BS preferred or equivalent experience.

 

Must understand fundamentals of the cooperative business model and be well grounded in grain trading and marketing techniques and practices.

 

Compensation:
$175K- $225K + Bonus (Up to 30%) + Profit Sharing + Employee Benefits   

Please Submit Letter of Interest and Resume to: Harvey A Meier

[email protected] (Word or PDF Attachment Only)  

Phone: 509-458-3210, Fax: 541-488-7905.

 

Montana Farmers File Class Action Suit against John Corzine over MF Global Debacle

 

A class action lawsuit was filed this week against former head of MF Global (MFG) John Corzine by Montana farmers, suing on behalf of all 38,000 MFG farmer, rancher and other clients who had accounts with the now-bankrupt trading company. ABC News reports the suit was filed against Corzine because of his "single-minded obsession" with making MFG a major player on Wall Street. The suit alleges MFG made a bad investments, including investing in European debt, and that the firm "began siphoning off funds withdrawn from segregated accounts" to pay off its debts. An attorney for the suit said MFG became what some contend was the nation's largest trading company "through Corzine's political lobbying and the commingling and looting of customer segregated accounts." Federal bankruptcy law precludes suing MFG while it's under bankruptcy protection, but does not protect the company's former executives. The suit names Corzine, other MFG executives, PricewaterhouseCoopers and JP Morgan Chase, the bank that held the MFG monies. Other suits filed on behalf of MFG customers have named Corzine and other MFG management team members, ABC reported.

 

NLRB Finalizes 'Ambush' Union Election Rule

 

April 30, 2012, is the deadline for new workplace union election procedures under a final rule issued by the National Labor Relations Board (NLRB). The NLRB rulemaking, strongly opposed by business and industry, received 66,000 comments after it was published in June, 2011, and the final rule focuses on procedures in cases where employers and unions cannot agree, including whether employees covered by a union election petition are an "appropriate voting group." If a dispute arises, the matter will go to a regional NLRB office where a director will make a decision on it and if an election will be held. The hearings that ensue from such disputes will be limited to questions of whether the election should be held, with pre-election eligibility and appeals postponed until after the election as a mechanism for speeding up the election process. The NLRB hearing officer will have broad authority, including NLRB discretion whether to even allow appeals.