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Conveyor Currents                         September 14, 2012
Upcoming Dates
                  

2012


October 10, 2012   Safety Training Workshop Joint CGFA/NGFA Event in Fresno, CA

October 24, 2012  CGFA District Meeting and Golf Tournament  at Diablo Grande Golf Club in Diablo Grande, 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 

Quick Links
 
California
 Grain & Feed Assn.
      www.cgfa.org
 
California Dept. of Food & Ag 
   www.cdfa.ca.gov
 
U.S. Dept. of Food & Ag
    www.usda.gov
  
 

In This Issue
Dairy Lien Law Bill Signed
Legislature Holds Hearing On Proposition 37
Governor Makes Key Appointment to Department of Pesticide Regulation
Farm Bill Outlook
Bipartisan Discharge Petition Filed in House to Move Farm Bill to the Floor
Disaster Bill Still in Play?
House Passes Six-Month Spending Extension
USDA Supply/Demand Shows Lower Corn Yields
Pension Reform Legislation Signed
Governor Brown announces appointments to his Governor's Office of Business and Economic Development
RFS Waiver Update
Fed Q3 "Quantitative Easing" Revives Congressional Attacks
Majority of Wellness Programs Provide Positive ROI
Grain Handling Safety Seminar


  

Dairy Lien Law Bill Signed

Legislation designed to update the existing Dairy Feed Supply Lien was signed by Governor Brown yesterday. SB 592 (Harman) sponsored by the California Grain and Feed Association reforms the law by providing streamlined foreclosure practices for delinquent accounts, increasing the days of feed covered by the lien from 45 to 60, and increases transparency and notice to dairy men and senior creditors. The association worked tirelessly with other stakeholders including dairy interests, bankers and other potential creditors to fashion legislation that will eliminate barriers to collection of delinquent accounts while providing all stakeholders more notice and transparency. By creating a non judicial foreclosure process, the law eliminates the need for feed companies to go to court, reducing the time to collect by 4 to 6 months. Additionally, the legislation eliminates a 30 day waiting period after default before filing a collection proceeding.

 

The legislation goes into effect on January 1, 2013. It will cover transactions and contracts entered into after that date.

 

Legislature Holds Hearing On Proposition 37

Yesterday the Legislature held a joint Senate and Assembly Agriculture Committee informational hearing on Proposition 37, the initiative mandating labels on foods grown with GMO traits. California law mandates that the legislature have an informational hearing on all propositions put on the ballot by citizens. However, the legislature does not take positions or have the authority to change the text of the initiative.

 

There were four panels that testified. The first was the Legislative Analyst Office and Legislative Counsel, who discussed the text and fiscal impact. Second, was the Department of Public Health who discussed how the initiative would be implemented, enforced, where further clarification needs to be through regulations and other implementation issues. The third panel included the proponents who focused on their main tag line "consumers have a right to know what is in their food." The committee spent significant time exploring the citizen lawsuit provisions and lack of credible science of any health impacts from these foods. The final panel included Dr. Kent Bradford, Professor of Plant Science at UC Davis, Jamie Johansen, Second Vice President of the California Farm Bureau, and Ron Fong, Chief Executive of the California Grocers Association. This panel discussed the science behind the current food labeling regulations, the science behind the seed biotechnology approval process, the impact on farmers that do not grow GMO crops and the liability to all retailers and farmers due to the citizen suit provision and ambiguous wording. Prop 37 will be on the November ballot.


Governor Makes Key Appointment to Department of Pesticide Regulation

Tina Andolina, of Davis, has been appointed director of legislation and regulation at the California Department of Pesticide Regulation. Andolina has served as legislative consultant for Senator Lois Wolk since 2010 and was legislative director at the Planning and Conservation League from 2007 to 2010. She was campaign associate at the Coalition for Clean Air from 2005 to 2007, outreach director at the California Wilderness Coalition from 2000 to 2005 and campaign director at the Friends of the Trinity River from 1997 to 2000. The legislative Director manages the relationship between the department and the legislature and is a key position on budget, legislation and mill assessment.

 

Farm Bill Outlook - Rally, Pessimism, Options, Uncertainty

Nearly 80 national agriculture, hunger, conservation and other groups rallied on the west lawn of the U.S. Capitol this week calling for completion of a 2012 Farm Bill before the current law expires September 30. However, with less than a week of work time before Congress disappears for October campaigning, the likelihood of final congressional action is slim, and member after member used their microphone time at the "Farm Bill Now" rally September 12, to lay out their party's position, but with most agreeing a full bill will not be enacted before the election. Senate Agriculture Committee Chair Debbie Stabenow (D, MI) said the House should take the few remaining days it's in session this month and pass its committee-approved bill.

This would allow staff to work up a draft conference report for consideration by members when they return for the November lame duck session. She's optimistic if presented with a conference draft, agreement could be reached and final action taken before year's end. House Agriculture Committee Chair Frank Lucas (R, OK) said he continues to hope House leadership will clear the way for floor action despite other competing issues, but failing that he said lawmakers are likely to try for a short-term extension of current programs. House Minority Whip Kevin McCarthy (R, CA) told a Washington, DC, newspaper this week, leadership is considering a six-month extension of current programs but provided no details.

Still others in the House are recommending Congress simply allow the current Farm Bill to expire since many of the key programs within the farm package are separately authorized and would continue to operate. This option doesn't set well with those who point out that without at least an extension, many programs would revert to the original 1949 law since all subsequent Farm Bills are amendments to the 1949 act. USDA, responding to questions about the possible reversion, said the impact wouldn't be felt until early January 2013, since it would take the department at least three months to accommodate the lack of contemporary authorities across a wide array of existing programs.

The outcome of the November 6 election will dictate in large part how much will get done on key issues during the lame duck session. Lucas said he's not crazy about doing a Farm Bill during lame duck because of what he calls the "winner-take-all" mindset of winning party members, a development he said that could kill some of the carefully crafted compromises in program rewrites crafted between the House and Senate committees. At the same time, he reminded folks if House and Senate leadership agree, and the White House steps aside, the House committee-approved bill could move "at the speed of light" directly to conference with the Senate-passed bill, adding the easiest way to get President Obama's signature on the final product is to put it on his desk before the election.

 

Bipartisan Discharge Petition Filed in House to Move Farm Bill to the Floor

 

Nearly 40 members of the House, including nine Republicans, this week filed a formal discharge petition to move the House Agriculture Committee-approved 2012 Farm Bill to the floor. Such petitions need a majority of members to force leadership to bring a bill to the floor. This current effort is led by Rep. Bruce Braley (D, IA), who said the petition was signed by 30 Democrats and 9 GOPers within hours of its communication to other House members. More members are expected to sign on, but Braley complained House leadership is using procedural maneuvers to delay the petition. Some ag groups are supporting the discharge petition. The American Soybean Assn. (ASA) this week said, "While the discharge petition advanced today...is certainly an unorthodox tactic, we are now forced to support this drastic measure."

 

Disaster Bill Still in Play?

 

While attention this week was primarily on the strong likelihood Congress will not pass a Farm Bill before current law expires, congressional ag leaders continued to debate whether a comprehensive disaster aid bill can be hammered out that may carry some farm program fixes and extensions. Rep. Collin Peterson (D, MN), ranking member of the House Agriculture Committee, told ag reporters this week he doesn't see much of a chance of getting the House-passed disaster package through the Senate. Peterson said without a disaster bill, aimed at providing livestock producers and specialty crop growers assistance coming off the worst drought in 70 years, options for federal assistance dry up. However, Sen. Debbie Stabenow (D, MI), chair of the Senate Agriculture Committee, said again this week she considers the House bill "wholly inadequate," and said energy should be extended in getting the Farm Bill passed since it contains a rewrite of federal disaster assistance programs benefitting livestock and specialty crop producers and those changes are paid for. She said the House bill - opposed by 13 national groups - would have to be more comprehensive than the package passed in early August for her to even consider recommending Senate action, explaining the House bill does not "help every farmer that had a loss, doesn't do anything for dairy, doesn't address fruits losses from freezes."


House Passes Six-Month Spending Extension, Senate Expected to Act

In what's expected to be the last bill acted on before Congress recesses for October campaigning, the House this week approved on a 329-91 vote a six-month spending continuing resolution (CR) to keep the government operating through March 27, 2013. The CR was negotiated among House and Senate leadership and the White House. The Senate will likely act on the bill next week, with President Obama expected to sign it, and both chambers will likely leave town September 20. The bill has more to do with reelection politics than appropriations actions given neither party wants to campaign with the threat of a government shut-down hanging over their stump speeches and rallies.  

 

The CR means all appropriations bill are tossed out, and the federal government will see a 0.6% or $8-billion across-the-board increase in spending, the figure agreed to last autumn in the deficit reduction law. While the bill has been touted as a "clean" CR, meaning it doesn't carry parochial program spending wanted by various members, it does include more money to be spent on wildfire suppression, cybersecurity and returning war veteran benefits, as well as $100 million for war spending and $6.4 billion in "advance disaster relief funds."


USDA Supply/Demand Shows Lower Corn Yields, Oilseed Production

U.S. 2012 corn production was lowered 52 million bushels to 10.727 billion bushels, down less than 1% from last month's projection, but 11% lower than 2011-12. Yields were set at an average 122.8 bushels per acre in USDA's September 12 World Agricultural Supply & Demand Estimates (WASDE). Overall, world corn production was projected to be 8 million metric tonnes lower than projected in August, a drop of more than 1%. While harvested acreage was left unchanged in the September report, analysts expect this figure to drop in future reports based on drought conditions. Overall feed grain supplies for 2012-13 are seen slightly higher overall as drops in corn production were "more than offset" by higher projected corn carryin, USDA said. Corn supplies for 2012-13 are projected 108 million bushels higher than the month before due to an increase in beginning stocks offsetting lower production. Export projections are lower by 10 million bushels.

Feed and residual use was lower 150 million bushels. Total corn use for 2012-13 was increased with higher expected feed and residual disappearance more than offsetting lower projected exports, with feed use expected to be 75 million bushels higher than projected in August, USDA said. Ending stocks are projected to be 83 million bushels higher at 733 million bushels, but corn season-average farm prices are seen dropping 30 cents a bushel to $7.20-8.60 a bushel. U.S. oilseed production is projected at 82 million tons, down 1.4 million from August projections. Lower soybean cottonseed production was only partially offset by peanut production increases. Soybean supplies in 2012-13 are reduced based on lower production and beginning stocks, with production set at 2.634 billion bushels, down 58 million bushels. Soybean exports were reduced by 55 million bushels to 1.055 billion mainly lower supplies. Wheat projections were mostly unchanged from August.

 

Pension Reform Legislation Signed 

In a ceremony in Los Angeles, Governor Brown signed sweeping bipartisan pension reform legislation that saves billions of taxpayer dollars by capping benefits, increasing the retirement age, stopping abusive practices and requiring state employees to pay at least half of their pension costs. 
 
The pension reform law, AB 340 (Furutani), requires current state employees and all new public employees to pay for at least 50 percent of their pensions and establishes this as the norm for all public workers in California. Importantly, these new reforms eliminate state-imposed barriers that have prevented local governments from increasing employee contributions. The new law also bans abusive practices used to enhance pension payouts. AB 340 also increases the retirement age for new public workers and caps the salary amount that can go toward pensions.

 

The pension reforms do the following:  


Caps Pensionable Salaries

  • Caps pensionable salaries at the Social Security contribution and wage base of $110,100 (or 120 percent of that amount for employees not covered by Social Security). 

Establishes Equal Sharing of Pension Costs as the Standard

  • California state employees are leading the way and are paying for at least 50 percent of normal costs of their pension benefits. Requires new employees to contribute at least half of normal costs, and sets a similar target for current employees, subject to bargaining.
  • Eliminates current restrictions that impede local employers from having their employees help pay for pension liabilities.
  • Permits employers to develop plans that are lower cost and lower risk if certified by the system's actuary and approved by the legislature.
  • Provides additional authority to local employers to require employees to pay for a greater share of pension costs through impasse proceedings if they are unsuccessful in achieving the goal of 50-50 cost sharing in 5 years.
  • Directs state savings from cost sharing toward additional payments to reduce the state's unfunded liability. 

Unilaterally Rolls Back Retirement Ages and Formulas

  • Increases retirement ages by two years or more for all new public employees.
  • Rolls back the unsustainable retirement benefit increases granted in 1999 and reduces the benefits below the levels in effect for decades.
  • Eliminates all 3 percent formulas going forward.
  • For local miscellaneous employees: 2.5 percent at 55 changes to 2 percent at 62; with a maximum of 2.5 percent at 67.
  • For local fire and police employees: 3 percent at 50 changes to 2.7 percent at 57.
  • Establishes consistent formulas for all new employees going forward. 

Ends Abuses

  • Requires three-year final compensation to stop spiking for all new employees.
  • Calculates benefits based on regular, recurring pay to stop spiking for all new employees.
  • Limits post-retirement employment for all employees.
  • Felons will forfeit pension benefits.
  • Prohibits retroactive pension increases for all employees.
  • Prohibits pension holidays for all employees and employers.
  • Prohibits purchases of service credit for all employees.
Governor Brown announces appointments to his Governor's Office of Business and Economic Development (GO-Biz)

This week, Governor Brown appointed Kish Rajan as the new "GO-Biz" director. Mr. Rajan will work closely with the Governor's Senior Jobs Advisor Mike Rossi to lead the executive team in streamlining services for business leaders and enhancing job creation, economic development and international trade statewide. The Governor appointed 12 people to his team including Mr. Rajan and also notable is Paul Martin, former dairy farmer and Western United Dairyman employee and environmental consultant.

 

Rajan, 42, of Walnut Creek, has been principal at Kish Rajan Public Affairs since 2010 and has been a councilmember for the City of Walnut Creek since 2008. He was director of mobile sales at SanDisk Corporation from 2007 to 2010 and was director of alliances at Good Technology Inc. from 2004 to 2007. Rajan was regional sales manager at Siemens from 2002 to 2004. He served as chair of the Walnut Creek Transportation Commission from 2007 to 2008.

 

Paul Martin, 70, of Petaluma, has been appointed deputy director of permit assistance in the Governor's Office of Business and Economic Development. Martin was director of environmental services at Western United Dairymen from 2000 to 2012. He was a field representative for Western United Dairymen from 1999 to 2000 and owner and operator of Paul and Jill Martin Dairy from 1976 to 1999. Martin was a partner at Claude Martin and Son Dairy from 1969 to 1976. He is a member of the United States Department of Agriculture, Agricultural Air Quality Task Force and serves on the Farm, Ranch and Rural Communities Federal Advisory Committee of the United States Environmental Protection Agency. 

 

RFS Waiver Update

EPA Extends RFS Waiver Comment Period - As expected, EPA extended to October 11, the deadline for public comments on the petition by two governors for the agency to waive the ethanol Renewable Fuel Standard (RFS). The 15-day extension announced this week came after the National Corn Growers Assn. (NCGA) formally requested more time since its members were involved in harvest and the federal government needed the most accurate picture possible of available corn supplies.

 

Oil Industry Says Waiver Complicates Planning, Investment - The oil industry this week waded into the food versus fuel debate, saying if EPA Administrator Lisa Jackson grants a waiver to the ethanol Renewable Fuel Standard (RFS) as requested by eight governors, industry, hunger groups and the United Nations, the petroleum industry's investment in new production and regulatory compliance planning will be seriously compromised. Oil industry executives, meeting with EPA and other Administration officials this week, urged Jackson to "carefully weigh" the comments received on the RFS waiver petitions. EPA has 90 days to decide on the waiver petitions once the comment period closes so no final action is expected before the November election.

 

Vilsack Pledges RFS Support to Growth Energy - "I don't want anybody to leave here today thinking that at USDA there is any waiver in our support for this industry," said Secretary of Agriculture Tom Vilsack to a meeting with Growth Energy, an association of ethanol refiners and plant builders. In various media reports, Vilsack said he's told EPA Administrator Lisa Jackson about the "positive aspects" of ethanol, and while USDA is not involved in the final decision on the RFS waiver requested by several governors, the law requires EPA to consult with USDA and the Department of Energy when considering a waiver petition. Vilsack said the corn market is reacting to the drought, meaning exports will drop, feed use of corn will also be reduced, but ethanol production will also drop.

 

Farmers Don't Like Ethanol Waiver: Farm Journal - A text message poll by Farm Journal Pulse conducted this week shows 60% of farmers responding do not support a waiver of the ethanol Renewable Fuel Standard (RFS) requested by several governors because of drought-reduced corn supplies or higher prices. When asked "Do you support a waiver of the ethanol mandate due to 2012 drought concerns?," only 29% answered in the affirmative and 13% said they were indifferent. The total number of responses was not reported.

 

Fed Q3 "Quantitative Easing" Revives Congressional Attacks

The Federal Reserve this week gladdened the hearts of Wall Street traders, but drew down on itself scorn from Congress as it announced its plan to move ahead with a third round of "quantitative easing" to stimulate U.S. economic growth. Citing slow growth in employment, high unemployment, slower business investment and high prices for key commodities, the Fed this week said it would ensure inflation does not rear its ugly head by purchasing additional agency mortgage-backed securities at $40 billion per month, and will hold interest rates at essentially 0% through mid-2015. Several Republicans immediately took exception to the Fed's move, saying it's time to rein in the nation's central bank, with some contending the timing of the Fed's actions are more political than substantive. The House already passed a bill that would allow government auditors to sit in on Fed deliberations, and the audit action made it into the GOP national party platform. Fed Chair Ben Bernanke said such a move is a "nightmare scenario" and would harm the Fed's independence.

 

Majority of Wellness Programs Provide Positive ROI

A majority of employers that measure the performance of their employee wellness and value-based healthcare programs show a return on investment (ROI), with a significant number showing savings of $3 or more for every dollar spent, according to new research published by the International Foundation of Employee Benefit Plans (IFEBP).

 

The report "A Closer Look: Wellness ROI" used data from a broader survey conducted by Brookfield, Wis.-based IFEBP - its recently published Wellness and Value-Based Health Care survey - and compares results between organizations that have analyzed the financial impacts of their wellness programs and those that have not.


In all, the data found that among employers who measure their ROI, 84 percent of them are achieving healthcare savings.  "Without question, employers are beginning to understand the direct connection that wellness initiatives can have on both employee health and healthcare plan cost savings," said Michael Wilson, IFEBP CEO, in a prepared statement. "While the primary goal is reducing health costs, we're also seeing other advantages from wellness initiatives, such as higher employee morale, increased productivity and reduced disability."

 

But employers who are looking to launch an employee wellness and value-based healthcare program also need to be realistic in terms of how quickly their company can reap these savings. "You won't necessarily see in the first year whether you are getting any advantages out of a new wellness program. In fact, it may cost you in the first few years " said Julie Stich, director of research at IFEBP and a co-author of the report.

 

Read More.... 


(Source:  Rood & Dax Insurance Services)

 

Grain Handling Safety Seminar - October 10th in Fresno Sponsored by CGFA and NGFA

The California Grain & Feed Association and the National Grain and Feed Association are teaming up to provide members with a Grain Handling Safety Seminar in order to provide you with the tools needed to understand how to practically comply with federal and state regulations. This meeting will also include an update on the status of several federal OSHA related issues such as increased enforcement, sweep augers and rolling stock fall protection.

The purpose of this day is to prepare you for an inspection, teach you how to keep a safer workplace and avoid hefty fines.