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Conveyor Currents                              October 12, 2012
Upcoming Dates
                  

2012


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

November 15, 2012 
December 10-12, 2012  California Alfalfa & Grains Symposium

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
Senate Select Committee to Hold Hearing On Delta Sustainability
Senate Agriculture Committee Holds Hearing on the Future of Fairs
California "Approved Mills"
CGFA District Meeting
Law Requiring Agreements for Commissioned Employees
Replacement Tractors Funds Available
California Department of Food and Agriculture SAFE Feed Education Program Announces the CA Feed Workshop
USDA Again Lowers Corn Crop Estimate
Letters Fly, Dueling Studies Mount as EPA RFS Waiver Comments Filed
Romney Iowa Speech Yields Farm Bill
USDA Holds First Drought Workshop
In Memory of Richard Brown
Senate "Gang of Eight" in Quiet, Intense Meetings
CFTC Rulemakings Come in for GOP Attack.
EPA Sets October 22 Rural, Ag Committee Teleconference
2012 California Ballot Propositions


  

Senate Select Committee to Hold Hearing On Delta Sustainability

 

Senator Wolk (Davis) is holding a Senate Select Committee on Delta Stewardship and Sustainability Hearing on Monday, October 15th.  The focus of the hearing is to identify near term projects beneficial to all Delta stakeholders. An informal working group has been tasked with identifying and implementing near term actions that will benefit the Delta and fisheries habitat.  A healthier Delta helps everyone, from water exporters to fisheries, recreation and municipalities.  The first panel at the hearing will discuss and identify projects. The second panel will include the Legislative Analyst to discuss funding options and funding mechanisms.  Finally, the local and state interests will address their actions and needs. 

 

Senate Agriculture Committee Holds Hearing on the Future of Fairs

Senator Cannella (Ceres) hosted a hearing at the Big Fresno Fair discussing the future of California fairs. Representatives attending were from the fair industry, including racing fairs agricultural interests and fair board members. Senator Berryhill and Senator Cannella are working on developing legislation that will reduce the bureaucratic impediments to fair operations. Their goal is to have fairs operate in a more competitive manner to attract sponsorships, support and public private partnerships. 

 

California "Approved Mills"

The Pest Exclusion Branch of the California Department of Food and Agriculture (CDFA) along with the County Agricultural Commissioners maintain an "Approved Mill" program to expedite movement of feed grain into and within the state.  The program's goal is to prevent the introduction and movement of feed borne pests.

 

Why would CA want to exclude feed borne pests?  Weeds have the potential to adversely alter ecosystem function, reduce farming and ranching productivity and profitability, and seriously limit the long-term sustainability of agricultural and natural resources. They may also increase the risk of fire, increase costs to infrastructure maintenance, and reduce the amenity of recreation areas.  

 

Feed grain imported from other states and countries has the potential to be infested with weed seeds that do not occur or have limited distribution in California. If grain shipments are not properly treated or cleaned, these pests can escape into the environment causing infestations in new areas.

 

What is the advantage of being on the CDFA's approved lists?  There are multiple advantages for an "Approved Mill."  First, interstate and foreign shipments for feed grain arriving at California's border are allowed to proceed to approved mills even though they may contain weed seeds that would otherwise be prohibited from entering the State.  Second, while state law requires notification and holding of each shipment at destination, an "Approved Mill" may be afforded conditions that waive the notification and hold requirements for each shipment since they're capable of receiving, handling and treating grain that may be infested with feed borne pests.  Shipments to non-approved mills are required to be held and must be inspected and found free from weed pests before they can be moved or processed.  Weed infested shipments must either be returned out-of-state or diverted to an approved mill.    

 

CDFA's Plant Quarantine Manual (PQM) lists California's "Approved Mills" which can be found at:  http://pi.cdfa.ca.gov/pqm/manual/htm/112.htm

 

What is the role of CDFA and the County Agricultural Commissioners?  Through compliance agreement, County Agricultural Commissioners are responsible for setting forth conditions under which approved mills operate. They also must annually inspect mills to determine if approval should be continued and draw samples at least twice a year to determine effectiveness of processing.    The county notifies CDFA of approved mills.  CDFA maintains a listing of approved mills and establishments showing their locations, weed seed pests each may receive, and the approved methods of handling infested feed grain in the PQM.   

 

What does a feed mill need to do to become approved?  Any feed mill can request to become "approved." Approved mills operate under compliance with the County Agricultural Commissioner and must have systems and/or equipment in place to mitigate the risk of weed seed dissemination through finished product and waste. Mitigation methods may include cleaning, heat treatment, or grinding.  Final approval will be based on a sample pulled from the finished product and tested in CDFA's Seed Laboratory to ensure it is not capable of containing viable weed seeds. Mills wishing to become approved should contact their local County Agricultural Commissioner's office for more information.   Contact information for California Agricultural Commissioners can be found at:  http://www.cdfa.ca.gov/exec/county/countymap.

 

CGFA District Meeting

Please join California Grain & Feed Association on Wednesday, October 24, 2012 at the  Diablo Grande Golf & Country Club in Diablo Grande, CA for the Northern/Southern San Joaquin Valley / Sacramento Valley/South Bay District Meeting and Golf Tournament.

Registration will begin at 11:00 am for a 12:00 noon shotgun start. A dinner and prize ceremony will follow at approximately 5:00 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 October 15th PLEASE NOTE THAT THERE WILL BE NO CHANGES ACCEPTED WITHIN 48 HOURS OF THE TOURNAMENT.

QUESTIONS? Call us at (916) 441-2272 or email Donna Boggs dboggs@cgfa.org /Jerry Marshall Jerry.Marshall@Simplot.com

 

 Click Here for Brochure

 

 Law Requiring Agreements for Commissioned Employees Goes Takes Effect January 1


By January 1, 2013, California employers must put all commission agreements in writing.  

 

To help explain the requirement, the California Chamber of Commerce has created a white paper, "Don't Forget Commission Agreements Deadline."

 

Although the new law appears simple and straightforward, a number of potential pitfalls within the law could result in wage-and-hour claims filed against employers, the CalChamber warns.

According to the law, by January 1, 2013, any employee hired to perform work for commissions in California must receive a written contract that includes the method for calculating and paying the commissions.

 

The mandate was put in place by AB 1396, enacted in 2011. The requirement applies to employers located inside and outside California.

AB 1396 amended Labor Code Section 2751, which previously applied only to employers with no fixed California location.

 

The white paper covers the following critical information:

  • What Is a "Commission?"
  • Recordkeeping and Procedures for Compliance
  • Employer Pitfalls
  • Best Practices

 

Replacement Tractors Funds Available

The San Joaquin Valley Air Pollution Control District will begin accepting applications at 7:30 a.m. Oct. 15 for funding requests for the replacement of older in-use, off-road tractors that are used in agricultural operations. Once approved, growers are able to access incentive funds to assist them in replacing older higher-emissions tractors with one that is newer and emits fewer emissions. The amount of funding offered is based upon dollars per horsepower.

 

 Click here to view a flyer describing the program. Here is a link to view and download the application which may be submitted beginning Oct. 15. For additional information and/or questions, contact the District at (559) 230-5800 or weberip@valleyair.org.

 

 

California Department of Food and Agriculture SAFE Feed Education Program Announces the CA Feed Workshop

 
CA FEED INDUSTRY WORKSHOP


NOVEMBER 15, 2012
8 am: Registration
Workshop: 9 -3 pm
Harvest Hall
3800 Cornucopia Way Suite D&E Modesto, CA 95358

 Click Here for Brochure


 

USDA Again Lowers Corn Crop Estimate, U.S., World Stocks Decline

 

The 2012 U.S. corn crop continues to decline and is now estimated at 10.7 billion bushels, down slightly from last month's estimate and 13% lower than 2011, USDA announced this week in its October 11 Crop Production Report. In its World Agricultural Supply & Demand Estimate (WASDE) also released October 11, the department says U.S. feed grain supplies are projected to continue their decline based on less carryin and production since September. 2011-2012 corn supplies are seen decreasing 214 million bushels and 2012-2013 beginning corn stocks were lowered 193 million bushels. Corn use was estimated to decline about 100 million bushels based on declining exports, and ending stocks for 2012-2013 were pegged at 691 million bushels. World corn stocks are estimated to drop 5.4%, to 117.27 million metric tons or about a 50-day supply, the tightest global stocks in 39 years. The department estimates average U.S. 2012 per-acre yield at 122 bu., down nearly a bushel from the September forecast, 25.2 bu. below last year and the lowest average per-acre yield since 1995. Harvested acres ticked up just under 1% to 87.7 million acres.


Letters Fly, Dueling Studies Mount as EPA RFS Waiver Comments Filed

 

Untold trees died for the paper and Internet electrons flew as thousands of public comments - and the inevitable press releases - on the need for EPA to waive the ethanol Renewable Fuel Standard (RFS) in the wake of the worst U.S. drought in nearly 75 years, dwindling corn supplies and spiking prices were filed this week. The filing deadline was October 11, extended at the request of the National Corn Growers Assn. (NCGA). The National Chicken Council (NCC) and the National Turkey Federation (NTF), two of the most active among the 20 national agricultural organizations, including the American Feed Industry Assn. (AFIA), calling for a temporary waiver of the ethanol RFS and the groups likely to lead the charge to repeal the authorizing law in the next Congress, said in press statements that between the two associations and their members, over 12,000 comments calling for the RFS waiver were hand-delivered this week to EPA.  

 

The Renewable Fuel Assn. (RFA), dedicated to convincing EPA no waiver is needed, released a letter signed by 22 presidents and CEOs of various ethanol and renewable fuel companies, and sent to EPA this week supporting the RFS and thanking EPA Administrator Lisa Jackson "for your commitment to the RFS...we applaud your continued efforts to reject calls to waive or alter the RFS." The letter said, "The U.S. ethanol industry spent nearly $40 billion on raw materials, other inputs and goods and services to produce 13.9 billion gallons of ethanol during 2011." RFA also "reminded" stakeholders in an October 11 email the governors of Iowa, Illinois, Minnesota, South Dakota and Oregon wrote to EPA supporting the RFS with no waiver.  

 

Those calling for the RFS waiver, include the governors of Arkansas, North Carolina, Delaware, Maryland, Virginia, Texas, New Mexico and Georgia - the EPA call for public comment was based upon the formal petitions filed by Arkansas and North Carolina - along with nearly 200 bipartisan members of Congress, environmental, consumer and hunger groups and the United Nations' Food & Agriculture Organization (FAO). EPA's deadline for a decision on the waiver is mid-November.


Romney Iowa Speech Yields Farm Bill, Rural Challenge; Obama Shoots Back

 

Republican presidential candidate Gov. Mitt Romney - keenly aware House and Senate GOP candidates are taking campaign heat for the lack of new 2012 Farm Bill - this week took his message to Van Meter, Iowa, using the rural setting and his audience of about 1,200 to blame President Obama for his administration's failure to "lead Congress" on passage of a five-year 2012 Farm Bill. In addition, the Romney campaign released a 16-page white paper that keyed on reducing taxes on farmers and ranchers, expanding access to trade, regulatory reform and North American energy independence by 2020. "The big difference between the president and me, he has no plan for rural America, no plan for agriculture, no plan for getting America back to work," Romney said.  

 

The Obama campaign criticized Romney for telling farmers "a series of falsehoods," failing to mention the House Farm Bill hasn't been acted upon because House GOP leaders have refused to give the bill floor time, and slamming his white paper for its lack of details. Several Democrat House members, including agriculture committee ranking member Rep. Collin Peterson (D, MN) - who called Romney's remarks "unfair and it shows a complete lack of understanding of what's going on" - acted as surrogates for the president in rebutting Romney, and National Farmers Union (NFU) President Roger Johnson slammed the GOP-controlled House for failing to act on the ag committee-approved Farm Bill, and promoting a bill more in line "with the draconian principles outlined in GOP Vice Presidential nominee Rep. Paul Ryan's budget." The Romney white paper can be found at  http://www.mittromney.com/blog/agricultural-prosperity-mitt-romneys-vision-vibrant-rural-america. 

 

USDA Holds First Drought Workshop, More to Follow

USDA this week held its first drought workshop in Omaha, Nebraska, and has scheduled three more. "The purpose of these workshops will be for us to listen to producers and communities regarding the intermediate and long-term challenges created by the current drought," said Secretary of Agriculture Tom Vilsack, saying USDA needs a "partnership" with local communities, states, tribes and federal government. At the Omaha meeting, USDA, along with the federal Small Business Administration and the National Credit Union Administration, outlined individual agency and department efforts to provide drought relief, as well as interagency efforts. The remaining workshops will be held in Pueblo, Colorado; Pine Bluff, Arkansas, and Archbold, Ohio.


In Memory of Richard Brown

We regret to inform you of the passing of Richard Brown from Brown Feed and Seed in Riverdale.   Our thoughts and prayers are with his family and many friends in the industry.

 

Richard joined the Marine Corps in December of 1957. He trained at Camp Pendleton in California and served as a gunnery instructor. After his stint in the Marine Corps he returned to Riverdale and joined the family business. To say that Richard knew the dairy feed business from top to bottom would be absolutely true. He started as a young boy, pushing a broom. He graduated to milling and sacking grain. He also loaded, weighed and drove the semi-trucks. Richard spent time visiting customers, learning their problems and cattle-feeding needs. He worked outside sales, purchased the grain commodities and equipment, fixed and repaired everything from diesel trucks to feed mill equipment and elevators. He formulated specialized horse and cattle rations, worked with government regulations and finally , in 1961, he succeeded his father as President and CEO of Brown Feed & Seed, Inc., a company that made and delivered feed to dairies, feed lots and cattle ranches from Riverdale to Sacramento. They hauled feed to large operations and tiny ones in some very hard to get to locations.

In 1965 Richard and Charlotte (Bunny) Erickson were married in Easton, CA. In 1976 and 1982, they were blessed with two sons, Richard Eugene (Reb) Brown and Erick Charles Brown.

 

In 1970, Richard and Bunny purchased land in Riverdale and began farming and ranching. In 1990, Richard closed down the milling portion of Brown Feed, found alternate jobs for each and every employee, and turned full time to farming alfalfa, corn, almonds and pecans in Riverdale, wine-grapes in the Easton area and a beef cow-calf operation on ranches in the Los Gatos Canyon area northwest of Coalinga. Richard and Bunny also raised stock horses and Appaloosa and Thoroughbred race horses (some faster than others). Some of his favorites were record-holder "John's Policy" (who retired as the 5th winningest Appaloosa racehorse in the U.S.), and Thoroughbreds "This Cats a Flying" and "HotRod Kelly" who also provided great thrills. "Call Me Tough", "Lucky & Tough" and "The Wuggis" are currently in training with Don Collins and Duane Offield.

 

Richard, an avid traveler, hunter and fisherman, enjoyed taking his family on trips and teaching his sons to hunt and fish. He started fishing as a young boy with his father, Gene, on his tugboat, the Sheboygan, docked at Morro Bay. He loved to gather abalone in the waters off of Cayucus.

 

Richard was a true man of the West. (Once a Marine, always a Marine.) He was strong and strong-willed. He was a man of the soil, but yet kind and loving with a great sense of humor. He protected his family and guided them well. He instilled his ethic for Christian living, love of family, hard work, honest business practices as well as his gift for repairing equipment. He will be greatly missed by his family, friends and customers.

 

Richard is survived by his wife of 47 years, Charlotte (Bunny) Brown, sons Richard (Reb) and Erick and his wife Lisa, cousin Nancy Fiorini and her daughter, Catherine, and son, Marco; brother-in-law, Van Erickson and his wife, Vicki, daughter, Ilene, and son, Charles. He was predeceased by parents Gene and Zedda Brown and sister, Jeannie Hohlbauch.  In lieu of flowers, donations in Richard's memory may be sent to Kings Christian School, 700 D Street, Lemoore, CA 93245, or Grace Bible Church, 707 W. Fargo Ave., Hanford, CA 93230.


Senate "Gang of Eight" in Quiet, Intense Meetings to Avoid Fiscal Cliff

What used to be the Gang of Six is now the Gang of Eight bipartisan Senators who have been meeting quietly on a weekly basis in hopes of finding a legislative solution to expiring tax cuts and mandatory federal budget reductions, collectively known as the "fiscal cliff" looming January 1, 2013. At issue during three days of meetings this week are about $4 trillion over the next 10 years in expiring personal and corporate tax rate reductions - the "Bush tax cuts" - and sequestration, a mandatory across-the-board 3% cut in federal spending mandated in last year's debt ceiling/deficit reduction agreement.  

 

The eight Senators plan to have what's being referred to as a "grand bargain" framework to offer colleagues when they return for the November lame duck session, but no announcement is expected before the election because control of the House and Senate will have obvious impact on what's included in any deal. The eight are focusing on a plan worked out by the Commission on Fiscal Responsibility & Reform, headed by former Sen. Alan Simpson (R, WY) and former Clinton chief of staff Erskine Bowles, a proposal that pushes a combination of tax cuts, federal revenue increases and entitlement program rewrites as the only logical way an effective deficit reduction plan can work. Over the next couple of weeks, the eight Senators are expected to begin expanding their work group, as well as including key House members in the discussion. The eight Senators are Sen. Mark Warner (D, VA), Sen. Richard Durbin (D, IL), Sen. Tom Coburn (R, OK), Sen. Saxby Chambliss (R, GA), Sen. Mike Crapo (R, ID), Sen. Kent Conrad (D, ND), Sen. Mike Bennet (D, CO) and Sen. Mike Johanns (R, NE).


CFTC Rulemakings Come in for GOP Attack

Commodity Futures Trading Commission (CFTC) action to finalize its major rules required by the Dodd-Frank law on financial reregulation has come in for heavy criticism from House Republicans. Treasury Secretary Tim Geithner this week received a letter from GOP members, including House Agriculture Committee Chair Frank Lucas (R, OK), urging him to delay several pending CFTC rulemakings, including regulations on non-banks being defined as "swap dealers," derivates trade by the foreign subsidiaries of U.S. companies. At the same time, a group of GOP House members said CFTC action to set speculation position limits is ideologically and politically motivated.  

 

The Geithner letter said the CFTC's actions are creating uncertainty and "widespread confusion" among market players, and said the commission is promulgating rules and has no plan on how to enforce them. The Republican members said the Financial Stability Oversight Council, which Geithner chairs, could vote to defer the rules "based on market stability and regulatory harmony." On the speculative position limits criticism, CFTC Chair Gary Gensler was the target of a letter that demanded the commission detail the labor costs connected to the position limits rule, and reminded Gensler a U.S. District Court judge struck down the rulemaking on September 28 saying the CFTC didn't show proper justification for the rulemaking.


EPA Sets October 22 Rural, Ag Committee Teleconference

 

EPA's Farm, Ranch & Rural Community Committee - an advisory panel designed to ensure EPA understands the impact of its rulemakings on rural America and food producers - will hold a teleconference on October 22 from noon to 2 p.m. EDT. The agency said the teleconference is needed "to discuss specific topics of relevance for consideration by the committee in order to provide advice and insights to the agency on environmental policies and programs that affect and engage rural communities." The Agricultural Retailers Assn. (ARA) said listening in on the committees meeting will allow comments to be brought forward on a variety of issues, including NPDES/Clean Water Act (CWA) permitting; Army Corps of Engineers/EPA CWA authority expansion; greenhouse gas regulations; Florida nutrient criteria, and drift reduction issues. For more information on how to participate, contact Alicia Kaiser at  kaiser.alicia@epa.gov.

 

2012 California Ballot Propositions - Remember to Vote

Below is a link for the Proposition Voter Guide outlining the California Farm Bureau Federation, the Western Growers Association and the California Chamber of Commerce's positions on the statewide ballot measures that will be before California voters in the November 6 general election.

 Proposition Voter Guide