This week, the Senate Committee on Agriculture, Nutrition and Forestry passed legislation to reauthorize and overhaul farm, conservation and nutrition programs through fiscal 2017 while cutting spending by $24.7 billion over the next 10 years. The vote, including proxy votes, was 16-5. The amended draft measure would end direct payments to grain and cotton growers and would replace those subsidy programs with a revenue protection plan that would offer "shallow loss" coverage for farmers who experience price and crop yield losses. The measure would consolidate a variety of conservation programs to save $6 billion over a decade. As amended, it would provide $800 million in mandatory funding to continue a variety of energy programs that were re-authorized by the original draft bill with no mandatory funding.  

The future of the Senate bill is still unclear.  Senate Majority Leader Harry Reid (D, NV) has told Ag Committee Chair Debbie Stabenow (D, MI) if she were able to pass a bipartisan bill out of committee he would make floor time for consideration.  However, southern and plains states Senators are still unhappy about how rice, cotton, peanuts and wheat fared in the bill.  Stabenow repeatedly pledged to try to address the concerns of rice and peanut growers. The bill abolishes the $5 billion in annual direct payments to farmers and landowners and replaces the direct payment program with the new Agriculture Risk Coverage program, which is designed to cover drops in revenue, and a special insurance program for cotton. Also eliminated is a counter-cyclical program created in 2002 to provide subsidies when commodity prices fall below target levels. Rice growers wanted that program continued if they couldn't keep their direct payments. Under the bill, they would have neither option.

Senator Kirsten Gillibrand (D, NY) objected to the bill because of cuts to nutrition programs, and she also raised concerns about a new program designed to protect revenue of dairy farmers. She said small-scale farms can't afford the payments the program requires.

Before the final vote, the Committee amended the bill to add $800 million in mandatory funding to programs in the energy title, including loan guarantees for biorefineries and subsidies for biofuel feedstocks and rural energy projects. The Congressional Budget Office had estimated the bill would save $24.7 billion over 10 years prior to the aforementioned Committee amendment.

Two bills that focus on reforming the State and Regional water boards moved through the key water committees this week. AB 1063 (Alejo) which would align ex parte communications with regional and state water boards more closely with other state agencies such as the Coastal Commission passed the Assembly Water Parks and Wildlife Committee. Dennis Albiani, testifying on behalf of the association, discussed the challenge that farmers, processors and other key stakeholders have in communicating very complex issues to the boards, through staff only communications. SB 965 (Wright) also passed the Senate Environmental Quality Committee with some amendments. Both of these bills will help facilitate communication with board members and allow the members to seek answers directly from stakeholders which currently is barred. The association is working aggressively to get these reforms enacted.

The Senate Appropriations Committee on Thursday approved a draft fiscal 2013 spending bill by a vote of 28-1 with Sen. Ron Johnson (R, WI) casting the only dissenting vote. The measure would provide $20.8 billion in discretionary spending for USDA, FDA and related programs.

Agriculture Subcommittee Chairman Herb Kohl (D, WI) said the increase from fiscal 2012 is due to two anomalies: an increase in food costs that has driven up food assistance expenses and a lack of farm bill savings that were previously available. The measure, which skipped subcommittee consideration, would provide $2.5 billion for the Food and Drug Administration (FDA), roughly the same as in fiscal 2012.

The figure is $50 million less than the amount requested by the Obama administration and $1.2 billion more than the level enacted in fiscal 2012, without counting fiscal 2012 disaster funding. The bill:

• Includes an increase of $12.5 million to implement the 2011 food safety overhaul but does not include several proposed new FDA user fees that have not yet been authorized.
• Provides $7 billion for food assistance under the Special Supplemental Nutrition Program for Women, Infants and Children (WIC), $422 million more than in fiscal 2012.
• Provides $1 billion for the Food Safety and Inspection Service and $1.5 billion for foreign food assistance under the Food for Peace program.
• Provides $1.2 billion for the National Institute on Food and Agriculture and $1.1 billion for the Agricultural Research Service. The funding level is below the administration's budget request, but the panel placed additional emphasis on the Agriculture and Food Research Initiative, which would receive $298 million.
• Provides $2.3 billion for rural development and $828 million for the Natural Resources Conservation Service. It would provide $1.2 billion for salaries and expenses for the Farm Service Agency and $411 million for farm loan programs.

The panel also gave unanimous consent approval to a manager's package including policy language recommendations from several senators.

Please join California Grain & Feed Association on Wednesday, June 20, 2012 at the Eagle Springs Golf & Country Club in Friant - located right next to Table Mountain Casino for the Northern/Southern San Joaquin Valle /Sacramento Valley/South Bay District Meeting and Golf Tournament.

Registration will begin at 12:00 noon for a1:00pm shotgun start.A dinner and prize ceremony will follow at approximately 6:00 pm.Cost: $100 per player includes golf,cart, range balls, dinner and prizes. All   skill levels are welcome to attend. CGFA staff will give you a short update on the association activities during dinner.  Return your registration by June 15,2012.  

QUESTIONS? Call us at (916) 441-2272 or email Donna Boggs dboggs@cgfa.org or John Kauffmann  jkauffmann@heiskell.com. 

With state revenues slowing to a trickle as the end of April draws near, the state's top fiscal analyst said late Wednesday that California could be "a few billion dollars" shy of Gov. Jerry Brown's budget projections through June 2013. The nonpartisan Legislative Analyst's Office said total personal income tax collections would likely be more than $2 billion below Brown's expectation of $9.4 billion for the month. Because the state was already running behind, it would mean PIT revenues would be $3 billion shy for the fiscal year compared to Brown's updated January projections.

Corporate taxes are also likely to trail Brown's forecast by about $450 million for the fiscal year so far, according to LAO. Unless sales taxes are robust, that means the state would be about $3.5 billion behind for this fiscal year, and likely a "few billion dollars" through the budget cycle that ends in June 2013, the Analyst's Office estimates. Brown pegged the state's deficit at $9.2 billion through that month, and he suggested last week that the problem might be $1 billion or $2 billion worse than previously stated.

This will put pressure on all fee programs and to cut general fund programs such as pest prevention and eradication and animal diagnostic labs. The association will continue to fight to protect special fund programs from a budget raid and retain a strong plant and animal protection program at CDFA.

Read more here....

by: CGFA Lobbyist, Dennis Albiani

CGFA sponsored and Co sponsored bills:

SB 592 (Harman) Dairy Lien Law - CGFA has undertaken a two year effort to update, revise and modernize the Dairy Feed Lien Law. SB 592 is the result of that effort. We have been working closely with the Dairy Farmers and their trade associations WUD and Farm Bureau, the California Bankers Association, the California Dairy Creameries and the appropriate legislators and staff to develop a proposal that will give feed companies the tools they need to collect on defaulted accounts. This bill will be amended in the coming weeks and moved through the Assembly.  

AB 2378 (Huber) Cosponsored with Pacific Coast Rendering Association this legislation will increase penalties for repeat offenders who steal inedible kitchen grease.

Labor - There are many challenging labor bills and CGFA is working closely with other agricultural groups to in coalitions to oppose the following bills:

AB 2346 (Butler) This bill would greatly expand the heat stress requirements on employers, create joint liability for heat stress violations, provide trial attorneys a private right of action to sue employers.  

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 traduced a host of laws governing this area including our cosponsored bill  

AB 2378 (Huber) increase fines for theft and illegal transportation of Inedible Kitchen Grease  

AB 1971 (Buchanan) AB 2003 (Torres) and AB 2105 (Grove) all increase requirements or regulations on junk dealers or recyclers to address theft.  

SB 1387 (Emmerson) would increase penalties for theft of man hole covers and back flow devices.  

Water Quality and the Regional Water Quality Control Boards - for those of you on the Central Coast, this year there was a very controversial decision by the Regional Board. This highlighted the dysfunction of these boards. There is much discussion on Regional Board reform:

SB 900 (Steinberg) Addresses the make up and conflict of interest provisions for the Regional Water Quality Control Boards as well as shrink the number of board members from 9 to 7, reduce number of boards. This bill is sponsored by agriculture but is being negotiated with the Governor's office who is showing significant interest in the issue.  

SB 964 and SB 965 (Wright) AB 2063 (Alejo) all three of 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.  

SB 1146 (Pavley) Requires the Department of Water Resources to provide a report on wells, location and condition and would allow the department to charge a fee for the report.  

Water Bond - Due to the economic downturn and the challenging political climate, it is very likely the water bond scheduled for this November will be postponed until 2014.

Other Issues the Association is actively engaged:

High Speed Rail - as this project is considered, access to existing rail corridors and impact on adjacent properties, including industrial facilities, will remain an issue.

Water Board Fees - There has been an ever increasing pressure on fees all over California government, especially at the State Water Resources Control Board and their regional affiliates. We are actively engaging in these discussions and opposing unjustified fee increases.

AB 32 implementation - AB 32 mandates a reduction in Green House gas Emissions across California's economy. This has spurred additional actions such as the Low Carbon Fuel Standard and a Cap and Trade system that will be implemented this summer. The association has been monitoring these activities looking for opportunities for agriculture and processors and opposing unjustified regulatory burdens.

On Road/Off Road vehicle emissions regulations - there is increasing pressure to push for additional regulations on off road vehicles, similar to the on road vehicle rules currently being implemented. The association has been collecting data, developing substantive comments and working with the regulatory agencies to minimize impacts on the industry.

Nitrate Regulation - This spring, there will be increased attention on nitrates in ground water. Preliminary reports from the UC and other entities have found that agriculture fertilizers and manure are being identified as major contributors. We will be working with a coalition of ag entities and the department of Food and Agriculture to address these issues and minimize impacts on individual ag producers.

Anti GMO Initiative - there is a proposed initiative being circulated that would mandate labeling of all food with GMO ingredients, restrict the terms "Natural, Naturally Grown, and toher derivatives of the term natural" fro processed foods unless they were organic or certified GMO free by a third party and sets up a Proposition 65 bounty hunter law type lawsuits.  

The board voted to oppose. There is a broad coalition of "Field to fork opposing the bill including:

CA Farm Bureau and California Seed Association

Food Processors and Manufacturers

Biotech and Medical Biotechnology Companies

Grocers and Retailers

Trade Unions

Driver Safety:  Defensive Driving

A good offense may be the best defense in football, but it is the worst approach to driving.

A safe driver is a defensive driver:

• Be aware of traffic conditions all around your vehicle and far ahead.
• Be constantly alert to the possible illegal acts and errors of others.
• Be willing to yield your right-of-way to avoid an accident.
• Do not tailgate.
• Know and obey all traffic regulations.
• Be cautious when approaching intersections. Decrease the odds of an accident by taking your foot off the accelerator and being ready to brake in preparation for the unpredictable.
• Adjust your driving to accommodate:

-      Traffic conditions

-      Pedestrians

-      Road conditions

-      Weather conditions

-      Time of day

-      Your frame of mind

• Drive as if all pedestrians and all other drivers are your good friends and relatives.