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Conveyor Currents February 24, 2012
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| Upcoming Dates |
2012
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
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| Quick Links |
California Dept. of Food & Ag
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| State and Federal Agency Release Water Allocation | |
Facing stubbornly dry conditions, state and federal agencies released low water supply allocation estimates today for 2012. The California Department of Water Resources reduced its estimated water supply deliveries from 60% to 50% of contractors' requests, a rare action.
The U.S. Bureau of Reclamation has released similarly low allocation estimates for contractors of the federal Central Valley Project. Agricultural water contractors will receive 30% of supplies, municipal and industrial contractors 75%, and, in a move not seen since 1977, some pre-CVP water rights holders will receive just 75% of requested supplies.
The estimates come against the backdrop of an unusually dry winter which has produced just half the normal precipitation so far and less than a third of normal snowpack. DWR's rain and snow runoff for the year is forecasted to be far below average in both the Sacramento River and San Joaquin River systems. The median runoff forecast for the Sacramento River system would be the 16th driest in 106 years, while the Feb. 1 median water year runoff forecast for the San Joaquin River system would be the 21st driest in 111 years.
In addition, DWR's eight-station index gauging runoff from Shasta Lake to the American River basin is at just 51% of its seasonal precipitation average. The Bureau bases its allocations in part on DWR's runoff forecast, and contractors whose allocations are based on pre-established Shasta inflow criteria are facing reductions.
Both agencies may update the allocations as conditions change. The Bureau is developing the CVP Water Plan 2012 to support water management efforts this year.
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| Final Day to Introduce Bills | 
Today, February 24th is the final day to introduce bills this session. As of yesterday morning there were 2210 Assembly Bills and 1332 Senate Bills introduced this session. Advocates expect several hundred more bills to be introduced in each house by the end of the day. Bills of interest include:
AB 1313 (Allen) This measure would require overtime for agricultural field workers after 8 hours in a day or on the 6th work day in a week. The bill will be heard in Senate Industrial Relations and along with our association, there is a large group of ag and employer groups opposing the legislation.
AB 1544 (M. Perez) Attempts to develop a state program to allow for the "legal" hiring of undocumented workers. Specifically requires EDD to make a finding that not enough "legal" residents are available to fill the ag jobs and then authorizes the department to provide a license to hire undocumented workers in agriculture. Assembly member Perez is attempting to push the national debate on immigration reform and is asking agriculture to participate.
AB 1623 (Yamada) This bill would authorize local county boards of supervisors to raise weights and measures fees to cover the local county costs. This bill is a priority because there are hundreds of other programs administered by the local ag commissioner whose fees are set by the state either through agency action or in statute. This bill could start an unwanted precedent.
SB 964 and SB 965 (Wright) Both these bills are intended to address regulatory reform at the regional water quality control board. Specifically the measures address ex parte communication with board members, align the conflict of interest provisions and address the adoption of regulation process. These bills coupled with SB 900 (Steinberg) that would reorganize the State and Regional Water boards, are bringing much legislative attention to the issues surrounding the water boards authority, regulatory process and activities.
Food safety and labeling is an issue that is garnering attention. AB 1616 (Gatto) would allow exemptions to food safety, sanitation and preparation requirements for "cottage food industries." SB 1293 (Emmerson) would require department of public health to develop regulations guiding the terms "gluten free" and "wheat free." SB 1106 (Strickland) is a "spot bill on food safety and food labeling.
Theft of agricultural materials and implements as well as Inedible Kitchen Grease has been increasing as commodity prices have skyrocketed. Legislators have taken notice and introduced a host of laws governing this area including AB 1996 (Huber) currently a spot bill but will increase fines for theft and illegal transportation of Inedible Kitchen Grease. This bill is sponsored by the Pacific Coast Rendering Association. AB 1971 (Buchanan) AB 2003 (Torres) and AB 2105 (Grove) all increase requirements or regulations on junk dealers or recyclers to address theft.
Fertilizer use, nitrates and water quality are issues that have come to the forefront over the past year and will be highlighted in a critical report from the UC to be released later this spring. AB 2174 (Alejo) will direct the mill fee assessed on fertilizer to additional research and water clean up.
Water continues to be a topic of bills. AB 2000 (Huber) is her annual proposal to impact the Bay Delta process and require a vote of the legislature before any Delta conveyance facility is developed. AB 2075 (Fong) would make it state policy that water efficiency, conservation and recycling is the best most cost effective manner to address water supply in the future.
AB 1187 (Rubio) is a measure sponsored by the California Seed Association to modernize the seed law.
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USDA Chief Economist Gives Forecast at Outlook Conference
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Referring to 2011 as a "very good year for agriculture," USDA Chief Economist Joe Glauber this week outlined what he sees coming in 2012. His forecast included the following:
- Exports for this year are forecast at $131 billion, down $1 billion from last year, but the second highest on record. Glauber said this reduction reflects record global crop production with weaker prices and export volumes;
- China became the U.S.'s largest export customer in 2011, buying just under $20 billion in various commodities. Exports in 2012 will drop 15% reflecting that nation's concentration on bulk commodities like soybeans and cotton; China is expected to purchase 10% of the U.S. soybean crop this year;
- U.S. corn stocks are expected to increase in 2012 assuming a return to trend yields, with livestock producers seeing increasing margins toward the end of the year; world corn stocks for 2011-2012 have tightened and are estimated at 52.3 days' use, the lowest since 1973-74;
- Corn-for-ethanol use is seen flat through the year, forecast down by 21 million bushels for 2011-2012; ethanol production at the end of 2011 is running close to capacity, and U.S. ethanol exports hit record levels in 2011 at 909 million gallons. That figure is expected to drop signaling a 50-million-bushel decrease in corn for ethanol demand this year;
- Conservation Reserve Program (CRP) enrollments are expected to be down in 2012-2013, with total CRP projected at 30 million acres, 6.8 million less than the peak in 2007-2008, and
- Corn plantings are expected to hit 94 million acres, with wheat going in on 58 million acres, and soybeans being planted on 75 million acres.
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EPA Revised Final Rule "Streamlines" Feed Mill Emission Standards
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A December, 2011, EPA final rule on feed mill air emission standards, effective February 23, revises a 2010 rulemaking setting general clean-up and efficiency standards for cyclones on pellet mills. The revisions to "Hazardous Air Pollutants for Prepared Feed Manufacturing" are a victory for the American Feed Industry Assn. (AFIA), National Grain & Feed Assn. (NGFA) and U.S. Poultry & Egg Assn. which demonstrated to EPA that its 2010 requirement that mills formally certify a cyclone can reduce particulate emissions by 95%, along with three alternatives identified by the agency to achieve that target, were not only difficult to achieve, but in some cases, impossible and would force replacement of a large number of existing cyclone units. Under the 2011 revisions, mills must still supply a formal certificate on new cyclones, but the agency acknowledges it never intended to force the replacement of existing equipment. The changes apply most directly to the requirements for existing cyclones, allowing them to operate under good air pollution control practices. The new rule also simplifies inspection procedures, recordkeeping, and clarifies provisions on bulk loads and door operation.
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House Small Biz Committee Looks at Ag, Regulatory Burden
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In a roundtable discussion of the regulatory burdens on agriculture held late last week by the House Small Business Committee, a new and unexpected political ally in the upcoming Farm Bill battle may be emerging. Committee chair Sam Graves (R, MO) said he called for the discussion to "advocate for agriculture and small producers," emphasizing the need for regulatory reform. One participant pointed out more than 50% of his group's members are small businesses by federal definition, and another executive said the Farm Bill is critical to these small business people and their ability to create and maintain jobs. Members of the committee said they'd heard more about protecting crop insurance, maintaining research and development and conservation than any other farm policy topics. Invited participants included the American Farm Bureau Federation (AFBF), National Corn Growers Assn. (NCGA), United Fresh Produce Assn. (Unifresh), National Association of Wheat Growers (NAWG), International Dairy Foods Assn. (IDFA), American Soybean Assn. (ASA); National Pork Producers Council (NPPC), Dairy Farmers of America (DFA) and the National Cattlemen's Beef Assn. (NCBA).
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CGFA Annual Convention - Monterey April 18-21, 2012
|  The California Grain & Feed Association is proud to announce its 88th Annual Convention. The convention committee has been working hard to prepare a quality program for this year's convention. We are facing new challenges in our markets, and coming together to network as an industry will be key to our continued success.
This year's event will be in Monterey at the Hyatt Regency Monterey Hotel & Spa from April 18-21, 2012. The facility and setting are the perfect combination for interacting with everyone in our industry. I would like to personally invite you to participate in the 2012 convention. We have lined up some outstanding speakers who will address what the future holds for agriculture and what challenges we face as an industry.
The CGFA Annual Convention traditionally draws attendees from across the nation. It is an essential link in bringing greater communication and stability within the grain & feed industry. Your support and participation are invaluable in keeping our Association strong.
All the forms, program, and information are on our CGFA website at:
Hotel Reservations on-line |
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EPA Dials Back Dioxin Risk Assessment; Recognizes Successes, Little Risk
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The highly controversial, 30-year effort by EPA to assess the risks to human health from dioxins - including PCB and PBBs - was finalized in part late last week when the agency released its final non-cancer risk assessment and applied a reference dose or safe level of exposure to only a single form of dioxin. In earlier iterations going back to 1986, EPA said 95% of dioxin exposure in humans is through foods of animal origin as dioxin, an airborne contaminant, is ingested during grazing and feeding and pools in animal fat. Further, in the mid-2000s, EPA talked about "mitigation" steps that may be needed to decrease dioxin exposure, including limiting certain feed ingredients. The release late last Friday was a simple posting to the agency website, and the EPA press release stated there is no significant risk to human health from dioxin exposure since over 90% of controllable dioxin emissions have been halted due to regulation and industry action, and the last uncontrolled source of dioxin is backyard burning. Both USDA and FDA have no plans for any regulatory actions based on the EPA release, but will continue to monitor for the presence of dioxin as part of their respective routine testing and sampling programs. The EPA decision was greeted as a major victory by the Food Industry Dioxin Working Group, an ad hoc ag/food industry coalition coordinated by AFIA, but the coalition continues to monitor EPA actions on dioxin.
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Vilsack Wants "Comprehensive" Immigration Reform as Administration Shuts Down Enforcement Program
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"The sad reality is that crops will be raised in this country this year that may not be harvested because there simply is not the workforce to get the job done," Secretary of Agriculture Tom Vilsack told the USDA Outlook Conference this week, calling on Congress to enact comprehensive immigration reform legislation soon. Meanwhile, the Obama Administration said this week it will end a program that deputizes local police to be immigration officers. The deputizing program, run by Immigration & Customs Enforcement (ICE), deputizes local law enforcement to act as immigration officers in jails or in the field, checking citizenship status on suspects, ordering detention, etc.
Only eight local police departments signed up under the ICE program during the Obama Administration - none since August, 2010 - and the overall number is down from 60 local agencies during the Bush Administration. The FY2013 budget request for DHS indicates the department will be signing no new contracts and cancelling the "least productive" of the existing contracts. DHS says other programs are more efficient and effective. As for Vilsack, citing agriculture's reliance on immigrant labor, he said Congress needs to fix "this broken system and fix it now," even though the chances of Congress tackling as controversial an issue as immigration during an election year are remote. The major roadblock is how to treat the millions of illegal immigrants already in the U.S. without being accused of granting "amnesty" for illegal acts. Also sharply criticized by farm organizations, particularly dairy and the fruit/vegetable growers, is the H-2 seasonal worker temporary visa program, which they call cumbersome and expensive. There is legislation pending on Capitol Hill to revise this program, but so far, there's been no agreement on how to move reform forward.
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Federal Government to Increase "Farm-based" Product Purchases
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President Obama and Secretary of Agriculture Tom Vilsack this week announced the federal government will step up its purchases of products made from agricultural inputs, part of a White House program to stimulate rural economies and create jobs. The effort is designed to increase demand for biobased "sustainable" products - made from "biological products, renewable agriculture materials or forestry materials" - that are used in manufacturing, including plastics, furniture, cleaning supplies, inks, hydraulic fluids and personal care items.
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House Walks Away from Five-Year Highway Bill
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In yet another example of election year politics and budget hawk pressures, House GOP leadership this week announced they'll abandon plans to try and pass a five-year, $260-billion federal highway program reauthorization, opting instead to try and pass an 18-month extension of highway infrastructure and urban commuter program funding. One report indicated the reason was mounting opposition to the mammoth reauthorization bill, particularly among conservative Republicans. One staffer is quoted saying the new bill will "still provide plenty of time for a new Congress and a new President to enact a long-term reauthorization." Leadership is also reportedly abandoning its effort to tie funding for highway programs to a source other than the Highway Trust Fund, which is funded by gasoline, diesel and highway use taxes. Part of the reason a shorter bill is now being contemplated is that offsets for the cost of the bill have now disappeared, having been used to pay for other programs. Also, the Senate is working a $15-billion two-year bill, and reconciling House and Senate versions will be easier. House leaders said, however, they'll still try and pay for part of the shorter-term bill through ties to fees to be collected from new federal permits for oil and gas exploration. The new bill will be passed on its own and then likely attached to a previously passed energy production bill and sent to the Senate as a package, according to a source close to the situation.
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House Ag Leaders Tell CFTC to Ramp Up Ag Advisory Committee
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For 20 years, the Commodity Futures Trading Commission (CFTC) has had an Agricultural Advisory Committee to inform the commission on actions and decisions that directly affect production agriculture. This week House Agriculture Committee Chair Frank Lucas (R, OK) and Rep. Mike Conaway, chair of the committee's subcommittee on general farm commodities and risk management, told CFTC Chair Gary Gensler in a letter, it's time to reinvigorate that committee by naming a chair to replace Commissioner Mike Dunn who resigned to join a Washington, DC law firm. Lucas and Conaway said in their letter, "The Agricultural Advisory Committee is intended to 'be utilized by the Commission in assessing issues affecting agricultural producers, processors, lenders and others interested in or affected by the agricultural commodities markets.' They pointed out that passage of the Dodd-Frank Act and its ensuing regulations, as well as the MF Global bankruptcy, demand the commission "have the benefit of the insight of the Agricultural Advisory Committee. It's important the Committee have the leadership necessary to ensure its active role within the Commission," Lucas and Conaway said.
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Safety Corner:
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Preventing Common Injuries
Common injuries and their causes: Fingers and hands are injured more than any other part of the body. Many times these injuries occur due to lack of an understanding of the hazards that exist or lack of Personal Protective Equipment.
Personal protective equipment (PPE): PPE is designed to guard against any risk present in the workplace. This can be things like molten metal, falling debris, electric shock, etc. Injuries occur when employees choose not to wear designated Personal Protective Equipment or use the wrong type of equipment.
Important pointers on how to avoid common injuries:
- In most cases, gloves have to be used to prevent hand injuries.
- For each job, complete a written Hazard Assessment to ensure that the proper kind of protection is always available for the various exposures.
- Before handling, inspect materials for slivers, jagged edges, burrs, and rough or slippery surfaces.
- Get a firm grip on the object.
- Clear a path of travel and a set point.
- In the case of repetitive motion tasks, be aware that gloves or other PPE can restrict movement which results in greater stress. This must be accounted for.
- Keep fingers away from pinch points when setting down materials.
- Care should always be taken when wearing gloves while working with or around rotating machinery.
- When handling lumber, pipes, or other long objects, keep hands away from the ends to prevent them from being pinched or from sharp edges.
- Wipe off greasy, wet, slippery, or dirty objects before trying to handle them.
- Keep hands free of oil and grease.
- If injuries do occur have them treated immediately. Cuts or scratches can become infected unless properly cared for.
- Report accidents immediately; following procedures for initial response and containment of the incident.
(Source: InterWest Insurance Services Inc.)
Safety Meeting Topic IdeaInfluencing Attitudes for Safety - English Describes the role of worker's attitudes in workplace safety. Influencing Attitudes for Safety - English Influencing Attitudes for Safety - Spanish Describes the role of employees' attitudes in workplace safety. Influencing Attitudes for Safety - Spanish |
| Capture Your Favorite Agricultural Moment | 
If you've ever watched the documentary Food, Inc., you may recall the point the film makes about American agriculture falsely portraying itself in advertising. The claim is that agriculture in America today is nothing like the iconic pictures of farmers in blue jeans and cowboy hats, propped up against the backdrop of red barns and corn fields. Instead, the movie depicts an industry of windowless barns, suffocating chickens and cows being pushed around by forklifts. So which is the truth? Strictly speaking-both. There's no denying that some aspects of agriculture are far from pleasant-especially those practices we as an industry do not condone. However, the Food, Inc. claim that the picturesque imagery associated with agriculture no longer exists is far from the truth. Every day, everywhere across California and American agriculture, there are picture perfect moments that capture the essence of our lifestyles. The hard working father and son team on a combine harvester; a wife bringing her husband a mid-day lunch in the field; a rancher on horseback at sunset. These are the images we create as still frames in our minds all the time, and that we often take for granted. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ This week on KnowACaliforniaFarmer.com , we're asking you to capture your favorite picture perfect agriculture moment-unscripted and unedited. Collectively and together, we can refute the notion that our unique and special life in farming and ranching exists only in an artist's imagination. Let's show consumers the real side of farm families in California. |
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