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Conveyor Currents                           November 21, 2012
Upcoming Dates
                  

2012


December 12, 2012   CGFA Member Outreach Meeting & Christmas Luncheon in Ontario, CA

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
Happy Thanksgiving
Cost of Thanksgiving Dinner "Just a Bit More" this Year
Fiscal Cliff Talks Continue; Political Grandstanding, Demands Abound
EPA's Failure to Waive Ethanol RFS Draws Frustration from Food/Ag
Grain & Feed Industry Conference
Superstorm Sandy to Spawn Super Disaster Bill
California Egg Farmers File Suit Against the State of California
Loss of GM Labeling Ballot Item Produces Boycott, National Effort
EPA Sets Pesticide Dialogue Committee Meeting for Late November
CGFA Member Outreach Meeting & Christmas Luncheon
U.S.- EU Trade Talks must Include Ag Coalition
Treasury Exempts Foreign Exchange Swaps
House Passes U.S.-Russia Trade Bill, but Senate Hurdles Remain
Safety Corner
The Case for Taking a Real Lunch Break
Happy Thanksgiving

 

   

 

Have a great Thanksgiving Holiday We realize you are all very busy at this time of the year as the major holidays approach...be sure to take a minute to slow down and appreciate your loved ones and blessings.

  

We would like to express our appreciation to our members for their continued support of the California Grain & Feed Association and extend our best wishes to you and your family for a wonderful holiday season. 

 

Warm Regards,

 

The Directors and the Staff at the  

California Grain & Feed Association 

 

 

Cost of Thanksgiving Dinner "Just a Bit More" this Year 

The traditional Thanksgiving dinner of turkey with all the fixings will cost American consumers less than 1% more this year than last, according to the American Farm Bureau Federation's (AFBF) 27th annual survey of the price of holiday favorites. While making no scientific claims for the study, AFBF said the average cost of this year's dinner for 10 is $49.48 - less than $5 per person - and just 28 cents more than a year ago. A 16-lb. turkey will cost about $22.23, up about 66 cents over 2011. The combined cost of a miscellaneous group of dinner items - coffee, onions, eggs, sugar, flour, evaporated milk, butter - increased a bump in price from 2011 to $3.18, with breads increasing slightly. Price decreases, however, were recorded for whipping cream, stuffing mix, sweet potatoes, a gallon of whole milk, and various fruits and vegetables.

 

Fiscal Cliff Talks Continue; Political Grandstanding, Demands Abound
 

With congressional leaders focused on their united commitment to finding a solution to the looming fiscal cliff crisis, key House, Senate and White House staff got off to a rocky start this week over just how that solution will be crafted. For agriculture, enactment of a five-year Farm Bill - and its $25-35 billion in savings - is the top priority, while action to repeal the estate tax or prevent rates/exemptions from returning to Clinton era levels are also high on the list, as is avoiding an increase in capital gains tax rates from 15% to 23.8% should no fiscal cliff deal get done. Reports surfaced this week producers are beginning to accelerate land sales to get deals completed before the end of the year should Congress fail to act on the capital gains fix.

 

President Obama, in statements made after his White House meeting with leaders last Friday afternoon, said the deal will likely include a six-month extension the deadline for mandatory Budget Control Act 8% across-the-board federal spending reductions, a down payment of spending cuts and revenue raisers to reduce the deficit - with a commitment to pony up the rest of the reductions by a date certain - while "tweaking" the expiring Bush Administration personal and corporate tax rates.

 

Media reports continually say the whole solution is a deal to be worked out between House Speaker John Boehner (R, OH), Obama and Senate Majority Leader Harry Reid (D, NV) - House Minority Leader Nancy Pelosi (D, CA) said late this week the price for her support for any deal is a seat at the negotiating table. Sen. Tom Harkin (D, IA) and Sen. Jay Rockefeller (D, WV) continue their message that Medicare, Medicaid and Social Security must be walled off from any program cuts, even as Obama restates his support for entitlement program reform. Sen. Richard Durbin (D, IL), Senate majority whip, told the press higher tax rates for the nation's wealthy must be part of any fiscal cliff solution, though he neglected to define "wealthy" or set a rate the "most fortunate among us" must pay. He and Pelosi issued separate statements that simply closing tax code loopholes will not generate the dollars needed to meet savings targets. The GOP says higher taxes for any group is a non-starter. The ag priorities notwithstanding, group after group, union after union, in Washington, DC this week listed various parochial programs they contend must be spared the budget knife, with the list ranging from endangered species to the exclusion of all military spending.

 

EPA's Failure to Waive Ethanol RFS Draws Frustration from Food/Ag 

EPA's finding of no economic harm in its decision not to waive the ethanol Renewable Fuel Standard (RFS) in response to petitions from eight governors last week generated outrage, frustration and disappointment from agriculture and food groups. These groups continue to contend the RFS has arbitrarily increased demand for corn, reduced availability for food and feed uses and caused near-record increases in corn prices, and are pledging an all-out assault on the RFS when Congress returns in January.

 

The American Feed Industry Assn. (AFIA) called the EPA decision "disappointing and shortsighted." AFIA said EPA ignored the larger issues of access to corn supplies by all end users, including livestock and poultry feed manufacturers and makers of pet food. "The U.S. priority on food security must be at least as high as the priority placed on future energy security," said AFIA President Joel Newman, adding AFIA strongly supports legislation introduced this session by Reps. Bob Goodlatte (R, VA) and Jim Costa (D, CA) with 30 bipartisan cosponsors that would create a "trigger" requirement that would automatically reduce the RFS for ethanol when corn supplies fell below set levels. One media report cited the temporary insulation from higher prices for some corn-users who hedged their needs, but said those contracts are coming due and new contracting will bring the economic pain EPA says does not exist.

 

A coalition of 26 national agriculture groups which petitioned separately for the waiver said it was "extremely frustrated and discouraged" that EPA chose to ignore the clear evidence of economic harm from "tens of thousands of family farmers and livestock and poultry producers." They reiterated the increasing number of farm bankruptcies in the wake of record corn prices and historically low supplies. The coalition said there is now about one-third less corn than is needed to supply feed, ethanol, exports and healthy carryover levels. The Grocery Manufacturers Assn. (GMA) said EPA's decision was ultimately "unfortunate for consumers." "The RFS has and will continue to disrupt commodity markets and exacerbate the impact of last summer's devastating drought on food prices at time when Americans can least afford it," GMA said, adding EPA's decision to not waive the RFS despite "safety valves" built into the original law "suggests it is time to rethink the flaws of the RFS and move away from misguided food-for-fuel policies once and for all."

 

The National Farmers Union (NFU) supports the EPA decision, saying the RFS has helped the U.S. reduce its dependence on foreign oil and "supports almost 500,000 jobs and generates $53 billion in economic activity each year."


Grain & Feed Industry Conference 

The final plans are underway for the 2013 Grain & Feed Industry Conference.  Mark your calendars for January 16-17, 2013 at the Embassy Suites on Monterey Bay.  Registration materials will be mailed out in the upcoming week to the membership. 

 

Our theme this year is:  Develop a Culture of Safety and Quality in the Modern Feed Mill 

 

Hotel Reservations Can Be Made ASAP - Click here for on-line reservation form.   

  

Topics will include:

 

Wednesday: Jan. 16th

  • Safety: Confined Space Hazards / DVD: Roberta's Request WorkplaceTragedy
  • Case Studies of Grain Explosions
  • Fire Safety: Preplanning Guide and What To Do In Case of Fire at the Mill
  • Group Luncheon: Networking Opportunities for Grad Students/ Internships
  • Virtual Feed Mill Tour / What's New in Feed Mills / Project Showcase
  • Feed Food Modernization Act Update
  • Trucking Safety:    I Track / Drive Cam        
  • New Innovations by Vendors: Panel of Vendors
    • Roll Speed Measurements
    • Inventory Management Systems
    • Flow Measurements - Dry Products
    • Rail
  • Table Top Exhibits and Social Hour
  • Group BBQ Dinner Buffet and Fun Casino Night

 

Thursday: Jan. 17th

  • Labor Laws - Employers Rights & Obligations 
  • H.R./ People Management / Time Management / Stress Management / Motivational
  • Closing, Grand Prize and Group Lunch Buffet  
  • Golf at Pacific Grove Municipal Course
 

 

 

 

Superstorm Sandy to Spawn Super Disaster Bill 

The East Coast devastation of "Superstorm" Sandy last month has Congress expecting to receive proposals for an extensive disaster assistance package, as well as a request from the Administration to increase on an emergency basis funding for disaster response. The White House last week asked agencies to come up with cost estimates for aid package that can be submitted to Congress after Thanksgiving, and while damages are not certain, estimates range from $30 billion by New York Gov. Andrew Cuomo to $50 billion by various analysts. If the dollars are allocated as emergency funding, then no offsets are needed in other federal spending. The Senate is looking at a series of assistance spending bills, rather than a single package, action taken after Hurricane Katrina devastated the Gulf. The Federal Emergency Management Agency (FEMA) says it's spent over $600 million so far on Sandy-related damage, but that once rebuilding begins, these costs are expected to increase significantly.

 

California Egg Farmers File Suit Against the State of California

Challenging the Constitutionality of Proposition 2


Egg Farmers Fear Lack of Clear Standards Will Result in Criminal Prosecution

 

SACRAMENTO, CALIF. (November 19, 2012) - California's egg farmers filed suit Friday in Fresno County Superior Court seeking a determination that Proposition 2 - a law regulating egg-laying hen enclosures - is unconstitutionally vague. The law's lack of clarity in size and density requirements prevents egg farmers from modifying their housing facilities in time to comply with the January 1, 2015, implementation date.

 

"California's egg farmers have spent the last four years attempting to gain a clear understanding of how to comply with Proposition 2 but, unfortunately, we are no closer today to knowing how to comply than we were when the law first passed in 2008," said Arnie Riebli, president of the Association of California Egg Farmers (ACEF). He added, "Given the ambiguity in Proposition 2 and the risk of criminal prosecution for violating it, egg farmers have no choice other than to challenge the validity of the law."

ACEF's members support the goal of providing appropriate space to egg laying hens and have worked to establish a national standard for egg laying hen enclosures. Last year, ACEF joined with the Humane Society of United States (HSUS) and the United Egg Producers to support congressional efforts to establish national standards on egg laying hen enclosures, including dimensions and other key elements that are not found in Proposition 2.

 

"Time has become a major issue for California egg farmers who need to know the size and density requirements for the enclosures they must build now prior to the law's compliance date in 25 months." added Debbie Murdock, Executive Director of ACEF. "The lack of clarity regarding hen enclosure standards has become dire because it will require an investment of more than $400 million from the state's egg farmers and an estimated three years to construct new facilities in California."

 

Since the passage of Proposition 2 in 2008, ACEF has advocated the use of housing systems that provide 116 square inches of space per hen compared to 67 square inches of space in a conventional cage. But the HSUS - the author of Proposition 2 - says that Proposition 2 requires anywhere from 200 square inches of enclosure space per bird to a cage free environment. However, HSUS has never explained how they reached either interpretation.

 

"While we know that Proposition 2 does not require California egg farms to be cage-free, the law is very ambiguous and provides no clarity as to what is required to comply with Proposition 2," said Dale Stern, attorney for ACEF. He added, "With the law taking effect in just over two years, egg farmers cannot afford to wait any longer to begin construction on new hen enclosures but their dilemma is making a multi-million dollar investment in new housing systems that could end up being considered illegal. The California Attorney General has been unwilling or unable to take a position on this key point. The State Department of Food and Agriculture commissioned a study at the University of California at Davis which concluded that the law is unclear. As a result, ACEF has no choice but to reluctantly seek invalidation of this poorly drafted proposition."  

 

If California egg farmers decide it is easier to relocate to another state to produce eggs rather than risk trying to comply with an uncertain law and be found in violation, a reduction in locally-produced eggs will have many ramifications for California consumers. Not only will egg prices to consumers substantially increase, but jobs will be lost, adding to increased costs to taxpayers for required social services. There will also be more truck traffic on roads to transport eggs from other states, further adding to pollution and impacted roadways.

 

Said ACEF's Riebli, "Unfortunately, consumers need to realize that the availability of safe, fresh California eggs may no longer exist in the very near future. We filed this lawsuit because without some clarity, many California egg farmers are now being forced to rethink their plans to operate in California in the years ahead."

 

The Association of California Egg Farmers (ACEF) is a statewide trade association representing California's egg farmers. ACEF serves as the voice for the egg farmer and the state's egg industry which produces approximately 5 billion eggs per year with approximately 20 million laying hens.


Loss of GM Labeling Ballot Item Produces Boycott, National Effort 
 

The 53-47% defeat of Prop. 37, a ballot item on mandatory labeling of foods containing genetically modified ingredients sold in California, is eliciting significant sour grapes from the losing side, and a call for a boycott of "natural" and organic products sold by national food companies who financially supported efforts to defeat the ballot question. This week the Organic Consumers Assn. (OCA), one of the leaders in the California Right to Know Campaign, announced a national boycott of food products owned by 10 parent companies that contributed dollars to defeat Prop. 37. OCA also wants other consumer groups, public health, agriculture, natural health, environmental and political groups to join in the boycott. "Among the largest bankrollers of 'No on 37' were huge multinational food and beverage companies whose subsidiaries make billions selling popular organic and "natural brands," OCA said. "It's time to send these companies a message: Either start supporting GMO labeling initiatives...or consumers will stop buying your products."

 

The companies targeted are PepsiCo, Kraft, Safeway, Coca-Cola, General Mills, ConAgra, Kellogg's, Smucker's, Unilever and Dean Foods. Supporters of the labeling initiative, criticized as badly written and confusing, but which critics also contend carried language on "natural" labeling in the state unrelated to GM ingredients, say the battle nationally over GM labeling is not over despite the food industry's spending nearly $50 million to defeat the California ballot language. OCA said the next likely ballot initiative will be in Washington State in 2013, where volunteers are already gathering the 320,000 signatures needed to qualify Initiative 522 for the ballot. Unrelated to the OCA initiative, this week the Cincinnati City Council voted 8-1 to approve a resolution "to support the mandatory labeling of genetically engineered products...so consumers are informed that the potential long-term risks of genetically engineered products to public health and the environment are largely unknown..."


EPA Sets Pesticide Dialogue Committee Meeting for Late November 

 

EPA announced this week it has scheduled November 28-30 public meetings in Arlington, Virginia, for its Pesticide Program Dialogue Committee (PPDC). Three PPDC workgroups will meet on November 28, including the workgroups on pest management, comparative safety statements and pollinator protection. The workgroup on 21st century toxicology/integrated testing will meet on November 29. All meetings are free and open to the public, and details, including agendas, can be found at

CGFA Member Outreach Meeting & Christmas Luncheon in Ontario 

 

Wednesday, December 12, 2012

11:30 am-2:00 pm

Ontario Airport Hilton

700 North Haven Avenue, Ontario, CA 91764

(909) 980-0400

 

CGFA EVP Chris Zanobini will update members on issues affecting the Association.   Local Legislators have been invited to attend and participate in our discussions. Please join us for fun and fellowship with CGFA Members during this Holiday Season.

 

$20.00 per person  - Jingle All The Way Buffet

For reservations contact the

CGFA office at: (916) 441-2272

 

 

U.S.- EU Trade Talks must Include Ag Coalition 

U.S. discussions with the European Union (EU) over the possibility of a free trade agreement between the two economic powerhouses must include agriculture and the EU must address non-tariff trade barriers, a coalition of ag groups said this week. While supporting the discussions and the possibility of a trade pact, the coalition, led by the National Pork Producers Council (NPPC), said in a letter signed by 60 groups and sent to U.S. Special Trade Ambassador Ron Kirk that any deal must include solutions to "impediments" to agriculture trade. The agreement must be a "high-standard, 21st century agreement," the group wrote, unlike other deals negotiated by the EU with other trading partners. The EU has cut trade deals in the past that violate World Trade Organization (WTO) rules, including restrictions on genetically modified crops and labeling, which the group said works to restrict U.S. sales of corn, soybeans, and by extension through the use of these commodities in feed, beef, pork and poultry sales. Because of various restrictions placed on the talks by the EU Parliament, the group said, "We cannot help but be skeptical that the EU is prepared to undertake a U.S.-style comprehensive negotiation and to include the agricultural sector."


Treasury Exempts Foreign Exchange Swaps

In the ongoing tug-of-war over regulation of swaps dealers, definitions of exactly what is a "swap dealer," and implementation of Dodd-Frank rulemakings, the Department of Treasury this week said it will exempt foreign exchange swaps and forwards from the clearing and trading requirements under Dodd-Frank designed to enhance derivatives trading "transparency." The department said foreign exchange swaps are short-term transactions with high transparency and risk management and therefore qualify for the exemption that was pushed hard by Deutschebank AG, Bank of New York Mellon Corp. and UBS AG (UBSN) among others. The notion of the exemption is resisted by regulators and Democrats, including Sens. Carl Levin (D, MI) and Maria Cantwell (D, WA). The Commodity Markets Council (CMC), which represents ag and energy interests, said the exemption will undermine broad regulatory overhaul under Dodd-Frank, and increase "systemic risk." Foreign exchange swaps and forwards represent about a $4 trillion daily market for foreign exchange.


House Passes U.S.-Russia Trade Bill, but Senate Hurdles Remain 

While the House overwhelmingly last week approved a bill to expedite trade between the U.S. and Russia, human rights concerns continue to snag the bill in the Senate. The legislation would grant Russia, now part of the World Trade Organization (WTO), permanent normal trade relations (PNTR) with the U.S., and remove 1970s restrictions on U.S.-Soviet Union trade based on the old USSR's blocking of Jewish emigration to Israel. The bill passed by the House addresses long-standing human rights concerns, its supporters say, because it allows for sanctions against Russian human rights violations, including requiring the President to create a list of human rights violators whose assets can be frozen and U.S. visas revoked. The Senate wants to expand this section to include sanctions globally, not just against Russia. Critics of this stand say such language will complicate trade and diplomatic relations with China, South and Central Asia, Africa and Latin America.

 

Safety Corner:

New Videos from ERI Safety Videos

 

The titles of new training programs are:

  • Survive Inside: Employee Safety in Confined Spaces
  • Forklift Safety Lessons for the Safe Pedestrian
  • Forklift Safety Lessons for the Safe Operator
  • Hang Up and Drive: The Jacy Good Story

 

If you would like to preview any of these programs or need help selecting programs on other topics, please give me a call or reply to this email.  And don't forget the year-end "Buy Two, Get One Free" sale applies to all our programs, not just these.  Visit www.erisafetyvideos.com and get sale pricing applied when you add items to your shopping cart!

 

The Case for Taking a Real Lunch Break

Eight out of ten employees now gulp a quick lunch at their desks, says a new survey. But not taking a breather during the day, even for just a few minutes, is a recipe for burnout.

 

FORTUNE -- Lunching al desko again today? You've got lots of company. Only 21% of people now regularly leave their workstations for a midday meal, according to a poll of 1,023 U.S. employees by talent development consultants Right Management.

 

These days, "far fewer employees are feeling comfortable enough with their work loads to take time away" for a quick bite, notes Michael Haid, a senior vice president at the firm.

 

Haid adds that many companies' cultures make people feel they need to apologize for stepping away from the grindstone even for 30 minutes. "One has to ask if such pressure, without any let-up, actually benefits the individual or the organization," Haid says. "I mean, does it really improve performance? We are definitely not talking about a return to the days of the three-martini lunch, but have we gone too far in the other direction?"

 

He thinks so. Employees fearful of being seen as slackers "begin to sacrifice their own break times in order to keep up with their workloads. So, whether the organization is imposing unrealistic workloads or whether employees are progressively giving up their own break times, leaders need to pay close attention and understand the early warning signs" of burnout, Haid says.

 

 Read more... 


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