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Conveyor Currents February 3, 2012
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| Quick Links |
California Dept. of Food & Ag
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| Upcoming Dates |
2012
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
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| Overtime for Ag Bill Revived | |
A bill to modify the law governing overtime for agricultural field workers was taken off the inactive file in the Senate. AB 1313 (Allen) would require agricultural employers to pay overtime for any employee who works more than 8 hours a day or 40 hours in a work week. Current rules allow agricultural field employees to work 10 hours in a day and/or 6 days a week before overtime is required. The bill was held in the Senate during the last week of session last year but has been revived and is being referred to Senate Labor and industrial Relations Committee for further review. The Association is opposing the measure and will continue to work with a coalition of ag and business groups for the measure to be held.
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| Governor Makes LA Regional Water Board Appointment for Ag Spot |
Yesterday, Governor Brown appointed Lawrence Yee of Ojai, to the Los Angeles Regional Water Quality Control Board. Yee held a variety of positions at the University of California Cooperative Extension from 1975 to 2008, including director of the University of California Cooperative Extension in Ventura County. He was director of the University of California Hansen Trust, established to sustain Ventura County agriculture through research and education, from 1993 to 2008.
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| Single Payer Health Bill Fails Passage |
A measure to establish a single payer health care system for California failed passage on the Senate floor earlier this week. SB 810 (Leno) which would create a publicly funded single payer health care system with universal coverage failed to get a majority of the Senators in favor of the measure. Since the bill was held in the house of origin, the Senate in this case, the bill is dead.
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| Senate Announced Farm Bill Hearing Schedule; Commodity Groups Try for Unity | |
After two days of "consensus seeking" on how to rewrite a new Farm Bill, 13 national farm and commodity groups this week signed a joint statement calling for a bill in 2012, but with no word on how to get to that point. Meanwhile, the Senate Agriculture Committee, which is taking the lead on rewriting a new omnibus farm bill, announced its schedule of February and March hearings on the various major titles of its rewrite. The schedule begins with a February 15 hearing on energy, and includes a February 29 hearing on conservation; a March 14 hearing on "healthy food," local production and nutrition, and a March 21 hearing on risk management and the commodity programs. Sen. Debbie Stabenow (D, MI), chair of the Senate Agriculture Committee, said she and ranking member Sen. Pat Roberts (R, KS) want to move a Senate Farm Bill as quickly as possible to allow the House Agriculture Committee time to complete its work.
Stabenow, while stopping short of saying she'll use the draft deficit-reduction document developed last fall as her starting point, did acknowledge the process of developing that cost-cutting approach for the deficit Super Committee crystallized several issues for both the House and Senate ag committees. For his part, House Ag Committee Chair Frank Lucas (R, OK) said his committee is starting with a "fresh sheet of paper," according to an American Soybean Assn. (ASAS) report this week. For the House to follow the Senate is unusual, but Rep. Collin Peterson, ranking House Ag committee member, said one major reason the House has not moved more quickly is it lacks direction from House leadership. Another reason is that neither chamber is sure how $1.2 trillion in mandatory federal spending cuts called for in 2013 will impact the numbers Congress will work with to come up with a bill. Based on reports from one commodity group meeting attendee, the two-day meeting this week was basically a restatement by each of the groups on how they want their parochial programs rewritten; the only consensus point is they want the President to sign a bill in 2012.
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| House Committee Approves Highway Reauthorization; Dumps Heavier Truck Language | |
In a marathon, highly partisan markup, the House Transportation & Infrastructure Committee approved a four-and-a-half-year, $260-billion extension of federal highway and urban commuter program authorizations, clearing the bill for House floor consideration February 13. Committee Chair Dan Mica (R, FL) said the bill will provide stability in federal funding, give states necessary flexibility in how they spend the funds, streamline programs and speed up delivery of money to the states. Committee Democrats condemned the bill, saying they'd had too little time to review it and the mechanism by which the projects are paid for won't work. The bill is also seriously out of alignment with a two-year $109-billion extension bill under consideration in the Senate since last summer, setting up a major conference committee battle between the two chambers. The bill also contains extension of the ag harvest hours-of-service exemption, and a "sense of Congress" provision to ensure enough money is available for inland water dredging and port maintenance.
The House committee began its deliberations by substituting a three-year study for language that would give states the option of allowing 97,000-lb. trucks with six axles and additional braking on federal interstate highways within their borders. States would also have been allowed to restrict heavier - not longer or wider - trucks from sections of highway and bridges. Shippers, including major feed, grain, livestock and poultry production and crop production groups, strongly supported the heavier truck permissions, and said such programs are working well in Maine and Vermont where pilot programs are underway. They said the provision is a matter of states' rights and increased productivity, and that the heavier trucks are necessary to eliminate the wasteful less-than-truckload shipments they're forced to move because of the current 80,000-lb. federal weight limit. Multiple studies, both in the U.S. and Europe, demonstrate the heavier trucks are as safe and actually produce less wear and tear on highways than 80,000-lb. trucks on five axles.
The Association of American Railroads (AAR), opposed the heavier truck section of the bill, saying their shipments would drop, safety would be compromised and states would be stuck with bridge and road repairs even though major shipping companies contend hundreds of thousands of shipments would be eliminated by allowing companies to move full truckloads. The GOP says it will pay for the expansion of highway projects by using revenue from federal energy exploration permits, and the House Natural Resources Committee approved a bill this week to expedite approval of expanded federal permitting of drilling projects throughout the country and off U.S. coasts. The House Ways & Means Committee is expected to approve the bill this week. Democrats contend the fees on the energy permits won't produce significant revenue for several years, leaving the highway bill without adequate funding.
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| DOL Rewrites Child Labor Regs, but Aggies Continue Attack | |
The Department of Labor (DOL) this week said it will repropose a part of its controversial proposed rulemaking on "child labor" protections, rewriting the "parental exemption" section that allows on-farm jobs to be held by the children of active farmers and ranchers and their families. The original proposal basically eliminated any recognition of jobs traditionally handled by farm and ranch teenagers, and would have prohibited parents from allowing their children age 15 or younger to work with animals, operate equipment, work in grain elevators or other storage, etc, essentially treating production ag in the same manner as other "hazardous" industries.
More than 100 House and Senate members called on DOL Secretary Hilda Solis to scrap the rule, but the strongest opposition comes from Rep. Denny Rehberg (R, MT), chair of the House Appropriations Committee subcommittee on labor, who's running for the Senate in Montana. He said this week he does not believe the parental exemption rewrite is enough to keep DOL off the farm. "I will have a rider on my (FY2013 appropriations) bill...that will keep you from implementing this rule. I know it will pass in the House," Rehberg said to a DOL witness at a House hearing this week. While Senate Agriculture Committee Chair Debbie Stabenow (D, MI) and Secretary of Agriculture Tom Vilsack publicly praised the DOL action, House Agriculture Committee Chair Frank Lucas (R, OK) said Solis' decision is a "step in the right direction," but added "other provisions of this rule will still make it difficult, if not impossible, for young people to access comprehensive on-farm education and employment." He said despite the rewrite of the parent exemption, anyone under 16 would be barred from operating equipment. DOL said its decision to repropose the rulemaking was due to "requests from the public and members of Congress" to allow "more input on this aspect of the rule."
The current parental exemption, enacted in 1966, allows children of any age who are "employed by a parent or a person standing in the place of a parent" to perform any job on a farm owned by or operated by their parent or the stand-in. "The department recognizes the unique attributes of farm families and rural communities. The reproposal process will seek comments and inputs as to how the department can comply with statutory requirements to protect children while respecting rural traditions. DOL pledged to continue to work with USDA on the new exemption proposal, expected to be published early this summer.
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J.D. Heiskell & Co. Wins 2012 Family Biz Award
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Tulare's feed miller J.D. Heiskell & Co. is the winner of the 2012 California Family Business Award. The Hillman family was on hand to accept the award during a ceremony last night presented by The Business Journal.
J.D. Heiskell & Co. celebrated its 125th anniversary last year. President and fourth generation family member Scot Hillman said the award just might be the company's highlight of the year. J.D. Heiskell & Co. is the country's fourth-largest animal feed manufacturing company in the US. It has operations in seven other states beside California and employs about 300 people in the Valley alone.
The company was one of five finalists up for the award, now in its 23rd year. The award is presented by the Institute for Family Business at California State University, Fresno.
Criteria used to select the winner include longevity, implementing innovative strategies, incorporating family into the business, instituting a succession plan and community contributions.
CGFA congratulates J.D. Heiskell & Co. on the award!
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| CFTC Says 'Major' Progress Made on MF Global; CME Sets up Farmer Indemnity Fund | |
Commodity Futures Trading Commissioner (CFTC) Jill Sommers, who heads the investigation into what happened with MF Global's (MFG) bankruptcy, told a Washington, DC wheat meeting this week that while major progress on the MFG investigation is being made, there's still a long way to go. At the same time, the CME Group, Inc., private operator of major market exchanges, announced it's created the "Family Farmer & Rancher Protection Fund" to indemnify farmers and ranchers for as much as $25,000 in losses if a brokerage trading on the CME goes under, with the level of protection jumping to $100,000 for cooperatives. Thus far, $4.1 billion has been returned to customers, the CFTC's Sommers said at the Wheat Industry Winter Conference, and missing funds now amount to $600 million to $1.2 billion. CFTC Chair Gary Gensler, who recused himself from the MFG investigation because he once worked with former MFG head John Corzine, announced a separate investigation into how the commission regulates brokerages is now underway. Sen. Pat Roberts (R, KS), ranking member of the Senate Agriculture Committee, said of Gensler's announcement, "I find it odd and confusing that Chairman Gensler can partially recuse himself - or 'non-participate' - in matters regarding MFG, but he can direct the commission staff to make recommendations on the matter. It appears the chairman is trying to recuse himself solely from questioning before the Senate."
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| Ag, Food Groups Tell FDA: No New 'Food Safety Taxes' | |
More than 30 national agriculture production, feed, grain, livestock, poultry, meat processing and food groups this week sent a letter to Health & Human Services Secretary Kathleen Sebelius, telling her the Administration must propose more treasury funding for FDA to carry out its food safety duties, not industry-paid user fees or "food taxes." The President's budget proposal, due to Capitol Hill by February 13, is expected to attempt to broaden FDA user fee authority, including the ability to impose user fees on companies required to register with the agency under new programs authorized by congressional enactment of the Food Safety Modernization Act (FSMA) in 2011. User fees have been seized upon by agencies across the Administration as a way to create a dedicated income stream as Congress moves to cut their overall funding. The letter said user fees are de facto taxes on the food industry, and such fees raise costs of processing and production, increasing food bills to consumers. In FY2012, HHS proposed "additional food safety fees to support full implementation of the 2011 Food Safety Act." Congress ignored the proposal.
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| General CRP Sign-up Announced; CSP Sign-up Huge | |
USDA announced this week the annual four-week Conservation Reserve Program (CRP) general sign-up will begin March 12 and end April 6. Currently, there are about 30 million acres tied up in the CRP, and contracts on an estimated 6.5 million acres expire September 30. At the same time, the head of USDA's Natural Resources Conservation Service (NRCS) Dave White said his agency was "stunned" by the size of the Conservation Security Program (CSP) sign-up, calling it a "record." Over 19 million acres were offered, White told Brownfield Ag News, but about 40% of those acres won't be accepted because the total exceeds the federal limit on how many acres can be enrolled.
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Governor Brown Announces Appointment
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SACRAMENTO - Governor Edmund G. Brown Jr. announced the following appointment.
Brian Leahy, 55, of Sacramento, has been appointed director at the California Department of Pesticide Regulation. Leahy has served as assistant director for the California Department of Conservation since 2006. He was a partner at EcoFacilitation in the Netherlands in 2006, and served as executive director for the California Association of Resource Conservation Districts from 2004 to 2006. He was executive director at the California Certified Organic Farmers from 2000 to 2004. Leahy was owner and operator of Cherokee Ranch Inc. from 1980 to 2003 and also a farm operator for Ackerlund Farm Incorporated from 1992 to 1993. Leahy earned a Juris Doctorate degree from Creighton University School of Law. This position requires Senate confirmation and the compensation is $142,965. Leahy is a Democrat.
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Grain & Feed Industry Conference A Success
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The 2012 Grain & Feed Industry Conference held in San Luis Obispo was well attended and the speakers presentations were timely and provide attendees with a unique educational program consisting of both managerial and technical information specific to the industry. The Grain & Feed Industry Conference emphasizes practical skills and techniques that are of direct and immediate benefit to the participants. From the Food & Feed Modernization Act to What To Do When OSHA Knocks at Your Door -- this year's presentations provided quite a bit of valuable information to take back to the mills. A special word of appreciation to Chairman, Casey Callaghan, Cal Poly Feed Mill and his committee for putting together a wonderful program. Brian Alves, P & F Metals Barney Barnes, Arizona Grain Inc. Chris Benevedes, Ridley Block Operations Mike Bianchi, Modesto Milling Bob Gallagher, A.L. Gilbert Co. Frank Garczynski, Agro Pomace Grant Garland, Bar ALE, Inc. Geoff Holland, NuWest Milling Mike Janich, Pacific Agri Sales Rich Leendertsen, Western Milling Pat McKenna, Golden State Feed & Grain Dennis Miller, Vogel Sales Engineering Dave Newton, Associated Feed Tom Pasek, Shaggy Dog Solutions John Schroeder, Cunningham & Associates John Silva, TPi/Nutra Blend Don Sneddon, Evonik Degussa Corp. Robert Swaggerty, Pacific Agri Sales Doug Vickery, R.F. MacDonald Co. Doc Weston, California Pellet Mill Ken Zeman, Harris Feeding Co. The evening barbeque was held out at the Cal Poly Feed Mill and a terrific time was had by all. Our thanks to the team at Cal Poly for putting together this wonderful evening.   This quality of this conference is made possible by our sponsors and I would like to thank them for their generous support of the association and our activities. A.L. Gilbert Co. Adams Grain Co. Adisseo USA Agro Pomace Co. American Truck Parts Ampac Services ANBO Machining Andritz Feed & Biofuel Arizona Grain Inc. Associated Feed & Supply Baker Commodities Ball Sales & Engineering Bar ALE Inc. BioTech Associates Ltd., Inc. Bliss Industries, Inc. Boer Commodities CPM / Roskamp-Champion California Mill Equipment Church & Dwight Co., Inc. Clayton Industries Conestoga-Rovers & Associates CrimeTek Solutions Cunningham & Associates DSM Nutritional Products Degraw and Associates Design Corrugating Donaldson Co. Dorssers Inc. Evonik Industries Exopack FMC Corp. Foster Farms Frontier Ag Co. Gold Star Painting Golden State Feed & Grain H & H Engineering Construction H.J. Baker & Bro., Inc. HP Commodities Hanford Commodities Harris Feeding Co. Hayes & Stoltz Ind. Mfg. Heartland Grains & Milling High Desert Craftsmen Hilmar Cheese Company Integrated Grain & Milling International Stock Food Interstates Construction Services InterWest Insurance Services Inc. J.S. West Milling Co. JMH Railway Solutions James Farrell Co. Kemin Agrifoods North America Kings Valley Industries L.A. Hearne Co. Langston Companies Leach Grain & Milling Locke Distributing Manna Pro Mezger Brothers Milling Machinery Inc. Min-Ad, Inc. Modesto Milling Novus Int'l., Inc. Nutrius LLC NuWest Milling LLC O & M Industries P & F Metals PILR Technology Services Pacific Agri Sales, Inc. Pellet Products Penny-Newman Grain Premier Magnesia LLC Quality Scales Unlimited R.F. MacDonald Co. Richard Best Transfer, Inc. Richardson Oilseed Ltd. Ridley Block Operations Screw Conveyor Pacific Corp. Seley & Company Simplot AgriBusiness South West Locomotive Repair Star Milling Co. The Stuart Co. Thomas Products LLC / Nutra Blend Universal Industries Inc. Valley Rubber & Gasket VSI - Veterinary Service, Inc. Vogel Sales Engineering Warren Manufacturing Western Milling LLC Westway Feed Products Wilkey Industries William C. Loughlin & Co.
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