SB 592 (Harman) modernizing the Dairy Supply Lien, AB 1581 (Wieckowski) addressing floral marketing issues and AB 2378 (Huber) which increases enforcement for inedible kitchen grease theft all head to the floor next week for consideration of the entire house. These bills are supported by a coalition of ag interests and have been moving through the legislative process.

President Obama on Tuesday signed into law a bill that requires the administration to detail within 30 days how it would implement the looming spending cuts in domestic and defense programs.

The sequester transparency measure, H.R. 5832, directs the White House to spell out what kinds of reductions at the "program, project and activity level" would result from allowing slated across-the-board cuts to take place. Leaders in both parties have said that federal law should be changed to derail these currently mandated $109 billion cuts but they remain deeply split about how to find an alternative plan for deficit reduction.

Senators, citing forecasts of a shrinking corn harvest because of drought, are pressing the Obama administration to cut the federal ethanol production mandate to make more grain available to a livestock and poultry industry facing higher animal feed prices. Thirteen Democrats and 13 Republicans sent a letter Tuesday to EPA Administrator Lisa P. Jackson urging her to exercise her authority to reduce the mandate "in the event of inadequate supplies or to prevent economic harm to the country, a region or a state."  

The senators, more than half of them from top beef-, hog-, chicken- and dairy-producing states, join 155 House members in trying to turn up the heat on the administration. The House members sent a similar bipartisan letter to Jackson last week.

• Update on USDA Biomass R&D Activities
• Update on DOE Biomass R&D Activities
• Review of the recently awarded Biomass Research and Development Projects
• Review of Congressional Research Service Report--Biofuels Incentives: A Summary of Federal Programs. 

Today, the USDA released an assessment of the U.S. crop situation. The report predicts that drought-stricken farmers will harvest 123.4 bushels of corn per acre this year, which would be the lowest yield in 17 years. The estimate, the first of the season based on surveys of fields, is about four bushels below what trade analysts had been expecting.

Corn  

USDA projected total corn production at 10.8 billion bushels. That would be the smallest crop since 2006, which was before Congress raised and extended ethanol usage mandates, pushing farmers to expand acreage. Farmers harvested 12.4 billion bushels last year, and just last month USDA was still projecting production of 12.9 billion bushel in its first report based on actual field surveys.

The agency predicted record average farm corn prices in a range of $7.50 to $8.90 per bushel, up sharply from the $5.40 to $6.40 per bushel projected in July. Corn ending stocks for the 2011-2012 marketing year ending in September are projected to be 118 million bushels higher at 1 billion bushels with lower expected exports, reduced corn use for ethanol, and a small increase in imports. Corn ending stock for 2012-2013 is expected to drop to 650 million bushels, even as usage is expected to decline.  That would be the lowest carryout since 1995-1996.

In addition, USDA reduced its projection for feed use for corn, as well as the use of corn for ethanol. Corn use for feed is expected to drop to 4 billion bushels from 4.8 billion predicted last month and corn use for ethanol is expected to drop by 400 million bushels, to 4.5 billion bushels. That is likely to intensify pressure on EPA from the livestock industry to lower the Renewable Fuel Standard (RFS) for corn ethanol. The report is expected to further increase pressure on lawmakers to come up with relief for farmers and ranchers and on the EPA to lower the Renewable Fuel Standard for ethanol.

Soybeans  

Soybean futures also moved higher, supported by government forecasts projecting domestic and export demand will chew away at an expected drop in production. This year's soybean crop will total 2.692 billion bushels, down 358 million due to lower harvested area and yields. While not a large drop from prior forecasts, the crop is still not seen large enough to replenish tight supplies.

The U.S. season-average soybean price is projected in a range of $15.00 to $17.00 per bushel, up $2.00 on both ends. Soybean meal prices are projected in a range of $460 to $490 per short ton compared with $365 to $395 last month.

The Safe Animal Feed Education (SAFE) program of California uses education and a comprehensive voluntary quality assurance program to lead the nation in ensuring a safe and wholesome supply of commercial feed. The program was developed in collaboration with the feed industry to promote a cooperative relationship between the department and the feed industry. Department staff provides outreach and education to industry and an audit-based comprehensive voluntary quality assurance approach for commercial feed manufacturers.

To ensure the safe manufacture and use of commercial feed in a changing livestock feed market, SAFE uses an approach that fosters voluntary compliance with the laws and regulations. This unique approach benefits both the agricultural community and the consumer.

The amount of animal feed commodities used in California has increased substantially over the past decade, making California the largest manufacturer of animal feed in the U.S. In addition, the number of livestock production operations and dairies that mix their own feed on-farm has risen significantly. The SAFE program provides outreach and education materials to promote good manufacturing practices for on-farm feed mixing.

A comprehensive voluntary feed quality assurance program is available for you. Department staff conducts comprehensive voluntary feed quality assurance audits in feed manufacturing facilities throughout California. The review of operations includes evaluation of manufacturing practices, quality assurance protocols, process controls, ingredient storage, record keeping, product labeling, and compliance with all laws and regulations. These inspections are designed to assist firms in evaluating their current standard operating procedures and to help implement quality assurance steps to ensure compliance with the California Commercial Feed Law and Regulations.  Those facilities that use medicated feeds and those with high risk minerals should definitely take advantage of this free service.  

The SAFE program currently has three a tiered approach in place which can assist the CA feed industry in achieving compliance with current CA Feed Laws and Regulations, as well as move towards FSMA compliance.

• CA Good Manufacturing Practices (GMPs) Inspection - establishes a firm has met the minimum food safety standards for operational procedures relative to mixing feed, inclusion of livestock drugs, and recordkeeping. Those firms having met the minimum requirements are encouraged to participate in the SAFE voluntary feed quality assurance audits;
• SAFE Feed Quality Assurance Audits - a comprehensive scored audit which reviews operations and includes evaluation of manufacturing practices, quality assurance protocols, process controls, ingredient storage, record keeping, product labeling, and compliance with all laws and regulations. These inspections are designed to assist firms in evaluating their current standard operating procedures and to help implement quality assurance steps to ensure compliance with the California Commercial Feed Law and Regulations;
• SAFE Hazard Analysis & Preventative Controls Audit - Encompasses the standards established in the CA GMP Inspection and the SAFE Audit, plus includes the minimum standards accepted by industry to verify and validate manufacturing process controls. Specifically geared towards HACCP & FSMA principles and compliance.

Link to SAFE Animal Feed Education Program 

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