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Conveyor Currents                             December 14, 2012
Upcoming Dates
                  

 
2013

January 16-17, 2013   Grain & Feed Industry Conference, Embassy Suites, Monterey, CA

January 22, 2013  6th Gordon Currie "Salty" Crab Feed/District Meeting in the CGFA North Bay at Mister McGoos Restaurant

April 24-27, 2013  CGFA Annual Convention ~ The Hyatt Regency, Huntington Beach, CA

May 15-16, 2013   California Animal Nutrition Conference.  Radisson Hotel in Fresno, 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
Reminder: Commission Agreements Deadline Looming
FDA Extends FSMA Reregistration Period
New Legislation Introduced
U.S.-China Food Safety Agreement Renewed
Fiscal Cliff Negotiations Snag on Partisan Priorities
Brazil Confirms First Case of BSE Discovered Two Years Ago
As Obama Signs Russia Trade Bill Russia Restricts U.S. Pork, Beef Imports
Environmental Working Group
Senate Puts Together $60-Billion Superstorm Sandy Aid Bill
Estate Tax Emerging as Fiscal Cliff Issue
Grain & Feed Industry Conference
To Stay Fit During Holidays Bend, Don't Break Routine
Reminder: Commission Agreements Deadline Looming

Remember all employers that all commission agreements must be put in writing by January 1, 2013.

 

By that time, 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.

Passed in 2011, this mandate of AB 1396 applies to employers located inside and outside California. It amended Labor Code Section 2751, which previously applied only to employers with no fixed California location. In 2012, the law was further clarified with respect to what types of plans are excluded from the written commission agreement requirement.

 

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

 

CalChamber's white paper "Don't Forget: Commission Agreements Deadline" covers the following critical information:

  • What is a "Commission?"; 
  • Recordkeeping and Procedures for Compliance; 
  • Employer Pitfalls; 
  • Best Practices.

 

FDA Extends FSMA Reregistration Period

All companies currently registered under the federal Bioterrorism Act of 2002 are required to register with FDA under new requirements of the Food Safety Modernization Act (FSMA) of 2010, and while FDA has had problems with its registration system, this week the agency announced it is extending the deadline for reregistration until January 31, 2013. The registrations are required every two years, with the "window" for reregistration set as October 1-December 31, in even-numbered years. However, FDA's registration system didn't come online until late October, the agency said, and reregistrations were stymied. Registration under both the Bioterrorism Act and FSMA are required of companies with facilities that manufacture, process, package, receive or store food for man or animal in the U.S. Go to  www.fda.gov to get specifics on registration.

 

New Legislation Introduced
by: Dennis Albiani, Legislative Advocate

  

December 3rd, was the first day that legislation could be introduced for the new legislative session. The members then participated in training and headed home after the initial week of work. There have been a few bills introduced that could impact water policy in California.

 

Bills Introduced Impacting Agriculture

Labor issues have been the focus of significant policy discussions over the past few years. There were several bills that would impact labor introduced on day one of the legislative session. These are likely just the first bills introduced and more are expected.

  • AB 10 (Alejo) this measure would raise the minimum wage from $8 an hour to not less than $8.25 January 1, 2014, not less than $8.75 January 1, 2015, not less than $9.25 an hour on January 1, 2016.
  • SB 25 (Steinberg) This bill builds upon an earlier measure authored by Senator Steinberg and signed into law. The bill would alter a 90 day requirement following bargaining for an unfair labor practice allowing certification of the union and would apply to subsequent purchasers of the business.

Dairy Pricing Legislation Introduced

Controversial dairy legislation was introduced on the first day of the legislative session.

  • AB 31 (Pan) The bill will require the Secretary of CDFA to consider additional actions when establishing the price for cheese.

Water Quality/Nitrate Legislation

Last session, following a UC report on Nitrate contamination in the Central and Salinas Valleys, there was a group of bills introduced to help provide financial assistance for local communities to help clean their water, continue to delineate the challenges, and provide some additional research funding. Due to the late introduction, the bills failed passage. Several of those bills have been introduced and more are expected.

  • AB 1 (Alejo) Requires an integrated water quality plan for the Salinas Valley. Primarily focuses on nitrate contamination.
  • AB 21 (Alejo) Amends the Safe Drinking Water grant program for small communities to redefine "emergency" to provide access to unprivileged communities.
  • AB 30 (Perea) Amends the Safe Drinking Water grant programs to allow the deferral of interest until 2019.

CEQA

The California Environmental Quality Act has garnered much attention since its passage 40 years ago. Recently, there have been many discussions about reforming the act to allow for more expedient review of projects and to reduce delay and the perception of lawsuits purely for non-environmental purposes. CEQA reform will be a priority for the Legislature this year. Leading the discussion will be the Senate Chair of the Environmental Quality Committee Senator Michael Rubio, in close coordination with Senator Steinberg.

  • AB 37 (Perea) This bill is currently a place holder requiring a lead agency to compile a record of proceedings concurrently with the development of the EIR/negative declaration or other CEQA activities.

Water Bond

The California Water Bond was postponed from this November's election until November 2014. There is much discussion on "opening up" the water bond for renegotiation on some of the key issues, most importantly the size of the bond. Widely distributed articles quote water leaders and advocates stating a smaller bond is prudent - from $6-9 billion. While there is much speculation around the water community on the fate of the water bond measure and a desire to amend the measure to make it more palatable to voters, there will likely be bills introduced in this first year of the session but it will be difficult for agreement on the issues in a year when there is no deadline for action.

 

Proposition 39

In November, California voters enacted Proposition 39, allocating $550,000,000 dollars for the next 5 years (total of $2.75 billion) to energy efficiency programs throughout California. The priority will be on energy efficiency in schools, but all programs are eligible according to the language of the initiative. A major energy challenge is moving water. There are a host of reports that demonstrate improving water use efficiency improves energy efficiency. There are several bills introduced to create the definitions and legislative priorities for this funding. There may be opportunities for agriculture to address water use efficiency and energy efficiency activities in water districts and on farm.

  • SB 39 (DeLeon) Focuses funding on energy efficiency upgrades in k-12 education facilities.
  • AB 39 (Skinner) Establishes priorities and definitions for implementation of Prop 39.
  • AB 29 (Williams) Creates revolving loans funds for higher education facilities for California Universities and Community Colleges.

BDCP/Delta Plan

The Delta Plan is progressing towards finalization in Spring of 2013. The Bay Delta Conservation Plan DRAFT EIR/EIS on the preferred alternative is due out mid 2013. There is much discussion on several elements of the Delta plan and BDCP including the delta diversion facility size of 9,000 cfs, financing including the amount and who will pay, assurances, extent of ecosystem restoration and maintaining water quality. Currently, there are no legislative proposals introduced encouraging or creating impediments to the completion of these planning efforts or implementation. However, there have been several bills introduced each year and more should be expected. The coalition called "Restore the Delta" is still active in Sacramento and is expected to continue to promote alternatives and create impediments to the implementation of these efforts.

 

U.S.-China Food Safety Agreement Renewed

The U.S. and China this week announced they've renewed for five more years their cooperative food safety agreement first signed in 2007. The agreement, signed in the wake of the Chinese melamine-in-pet food contamination incident and problems with exported Chinese dairy ingredients in several food products, is designed to "enhance cooperation between the U.S. and China on food and feed safety." The agreement includes enhancement of FDA's identification of high-risk food products exported to the U.S.; collaboration on inspections of facilities that process and produce food; a focus on high-risk foods exported from China to the U.S., including canned and acidified foods, pet food and aquaculture, and creation of a certification process for FDA to accept "relevant, verified information" from China's government on registration and certification of food and feed facilities. The first agreement led to the opening of FDA offices in Beijing, Shanghai and Guangzhou, and allowed FDA to increase the number of facility inspections in China from zero in 2007, to 85 in 2011, the agency said. FDA and the Chinese government have conducted workshops for the Chinese industry on FDA requirements for several categories of exported food.

 

Fiscal Cliff Negotiations Snag on Partisan Priorities, Farm Bill Talks Bog Down

While insiders insist there continues to be "quiet progress" on a short-term scheme to avoid the fiscal cliff's tax increases and economic turmoil on January 1, 2013, key negotiators publicly sniped at each other throughout the week, and the broader political parties signaled their priorities on programs that "must not" be part of the final package if there is one. However, it remains clear if there's a fiscal cliff deal cut, farm programs will be part of the mix if only because of the savings they contribute. House Speaker John Boehner and the President met at the White House twice in the last 10 days - once with staff, once without - and this week exchanged what reports said were tense phone calls. Partisan rhetoric continues to fly following these meetings from both sides, fueling the media and market pessimism a deal can get done by December 31.  

 

The Washington, DC based Business Roundtable this week waded into the broad fiscal cliff negotiations fray, saying lawmakers should raise taxes if necessary - something that appears almost inevitable - to reach an agreement. "We urge you to step forward and demonstrate that principled compromise is once again possible and that the American political system...can function as designed," the Roundtable said in a letter to congressional leaders. Congress needs to agree on how to get more revenue, it said, "whether by increasing taxes, eliminating deductions or some combination thereof." However, they cautioned tax increases must go "hand-in-hand" with spending cuts and overhauling entitlement programs, including Medicare, Medicaid and Social Security. President Obama has refused to talk publicly about entitlement program cuts, though congressional Democratic leaders this week said entitlements should not be part of the fiscal cliff negotiations. The GOP said it won't talk about tax rate increases unless entitlements are on the table. Rep. Dave Camp (R, MI), chair of the House Ways & Means Committee, responded to the Business Roundtable letter by saying, "Big business may support raising taxes on small businesses, but I do not."

 

A similar scenario played out among key ag negotiators on a 2012 farm program package that may move with any fiscal cliff package. With farm program spending cuts representing approximately $32-35 billion in savings, the chairs and ranking members of the respective agriculture committees met December 12 and December 13, in hopes of hammering out at least a short-term farm program agreement. Senate Agriculture Committee Chair Debbie Stabenow (D, MI) will not accept a straight extension of 2008 programs that she says leaves 37 current programs unfunded while continuing direct payments to producers, but Rep. Frank Lucas (R, OK), chair of the House Agriculture Committee, says he can live with an extension as it provides producers operational certainty, allows USDA to prepare for new programs and cuts in old operations, and gives him and Stabenow the opportunity to hammer out a 2013 five-year Farm Bill in the spring. The two big sticking points in the ag talks are farm program payments - the Senate reinvents payment programs as risk control insurance-like programs, but the House includes marketing loans and countercyclical payments - and how much to cut federal food stamps.  

 

Among the top four House and Senate ag leaders there have been some major shifts in position, particularly from Senate leaders. Stabenow says she's willing to entertain deeper cuts to food stamp fraud, waste and abuse if it leads to a five-year package included in the fiscal cliff deal. Senate ag panel ranking member Sen. Pat Roberts (R, KS) says he'll talk about revising his chamber's Farm Bill commodity program title to include a marketing loan and/or countercyclical payments scheme - a move that would mitigate southern peanut and rice producer opposition to the Senate's risk/crop insurance approach - again if that's what it takes to get a 2012 package done. However, as of December 14, House and Senate ag negotiators began to mirror the broader party lines on the fiscal cliff negotiations, digging in and trading barbs. After the December 13 meeting among Stabenow, Roberts, Lucas and House ag panel ranking member Rep. Collin Peterson (D, MN), the Senate chided the House bill because it never received a full chamber vote. Lucas and Peterson fired back in a statement this week, "When the Senate Ag Committee starts to negotiate in good faith...rather than in the press, we stand ready to work with them." The two House ag leaders said, "Contrary to what they would have you believe, this not a rice, peanut and wheat issue...it's about making sure policy is defensible to tax payers and works for all commodities in all regions of the country."

 

Brazil Confirms First Case of BSE Discovered Two Years Ago

The Brazilian government this week scurried to calm trading partner fears after it confirmed December 7, the discovery of its first case of BSE - a discovery initially made nearly two years ago. Japan immediately banned imports of all Brazilian beef indefinitely, and South Africa and China also banned Brazilian beef imports. The Brazilian government said the 18-month delay in testing and reporting the BSE case was the result of domestic laboratory work overload and international rules which resulted in samples from the animal being classified as low priority for diagnosis. Brazil's Minister of Agriculture said the BSE animal was a breeding animal in the state of Parana, and said it has provided all relevant information to the governments of its trading partners. One Brazilian official characterized the discovery as "an old and isolated occurrence" and that the animal showed evidence of "non-classic" BSE which may have been a "spontaneous mutation" given more than 90% of Brazil's beef herd are grass-fed on pasture. OIE, the world animal health organization, says it is maintaining Brazil's BSE status as "insignificant," the lowest risk level possible, with a risk grade of level 1, a status enjoyed by just 15 countries.   

 

As Obama Signs Russia Trade Bill Russia Restricts U.S. Pork, Beef Imports

 

Just as Congress sent legislation granting Russia permanent normal trade relations with the U.S. for President Obama's signature, the Russian government formally restricted U.S. pork and beef imports - worth an estimated $500 million a year -- unless the meat carries certification the animals were not given ractopamine, a product which promotes carcass leanness. The Russian action also came on the heels of a USDA-led trade mission to Russia, a trip Under Secretary for Farm & Foreign Agricultural Services Mike Scuse said included discussions on sanitary/phytosanitary issues. Scuse told the press the talks "went better than anyone had anticipated." Some say the Russian action is in retaliation for separate Senate action on another bill to provide future sanctions on governments on human rights violations, including Russia. Secretary of Agriculture Tom Vilsack and U.S. Special Trade Representative Ron Kirk said this week since Russia is now part of the World Trade Organization (WTO); it must live by WTO rules, signaling that if Russia doesn't rescind its ractopamine program, the U.S. could file a formal WTO complaint. Vilsack and Kirk said the demand for testing and certification that meat imports are ractopamine free "appears inconsistent" with WTO standards. The U.S. Meat Export Federation said it was confident the Russian demand that exports be tested and carry a "certified-free" certificate on ractopamine could be resolved amicably. Ractopamine, an Elanco Animal Health product, is approved in the U.S. as well as several other countries, but not in Europe and China, which stand to benefit from the Russian restriction on U.S. imports.


Environmental Working Group, Tax Groups Come out Against Five-Year Farm Bill as Part of Fiscal Cliff Deal

The Environmental Working Group (EWG) and several conservative tax groups this week publicly opposed enactment of a five-year 2012 Farm Bill as part of any fiscal cliff agreement, saying, "The time to pass a farm bill has come and gone. Congress should pass a fiscally responsible one-year extension of farm and food programs and allow the House to debate the future of farm subsidies." Calling it a "secret farm bill," EWG and the tax groups held a Washington, DC press conference where they called for the one-year extension, but said direct payments must be ended immediately as a "downpayment" on the deficit. Taxpayers for Common Sense said the current farm bill approaches "save too little, preserve ridiculous crop insurance subsidies and create new entitlement programs" and called the approach "the height of fiscal irresponsibility." One of these new entitlements, said the American Enterprise Institute, is the House Agriculture Committee creation of price loss coverage, and the Senate bill's Agriculture Risk Coverage (ARC) programs. The groups said they want to see a "full farm bill process" next year, one that will result in no shallow loss program, reforms crop insurance subsidies and adds "taxpayer protections."

 

Senate Puts Together $60-Billion Superstorm Sandy Aid Bill, with Ag Chapter

A $60-billion Senate bill, set for floor action next week, and written to provide emergency assistance to the victims of Superstorm Sandy, includes $224 million for agriculture disaster assistance, a synopsis of the bill released this week by the Senate Appropriations Committee reveals. The bill mirrors a formal White House request this week - and an estimate made by Senate Majority Leader Harry Reid (D, NV) last week - for post-Superstorm Sandy emergency relief, and will likely get the grudging support of both parties and chambers despite its price tag. Of the ag allotment, $25 million will go to shore up the emergency conservation program to provide money and assistance to farms and ranches damaged by natural disasters and for emergency water conservation; $58.9 million is set aside for emergency reforestation efforts; $125 million would be available for emergency watershed protection to mitigate the effects of flooding, droughts and preventing erosion, and emergency food assistance programs would get $15 million.

 

Estate Tax Emerging as Fiscal Cliff Issue

With billionaires Warren Buffett and George Soros calling for dramatic increases in the federal estate tax, with President Obama willing to take the "death tax" back to Clinton era levels while cutting the exemption, and ag groups holding elimination of the estate tax as one of their highest collective priorities, the fate of taxes paid on estates is emerging as a singular issue in the tax reform portion of fiscal cliff negotiations. The current 35% tax rate on estates of more than $5 million is set to expire at the end of the year. Without action, the rate would jump to 55% on estates in excess of $1 million, affecting nearly 600,000 farms in the U.S. This week, analysts complicated the discussions by pointing out average-quality farmland in some parts of the country has increased in value by more than 20% during 2012, and a Purdue University study shows those values are hitting nearly $7,500 per acre, with top-quality land going for nearly $9,000 an acre, and even poor land getting more $6,000 per acre.

This runup in land values means farmers not concerned about estate taxes in the past are now paying close attention. Sen. John Boozman (R, AR) said on the Senate floor this week an increase in the estate tax would affect over 22% of Arkansas farmers. Sen. Orrin Hatch (R, UT), ranking member of the Senate Finance Committee, called on President Obama this week to ensure an increase in the estate tax rate is not included in the fiscal cliff negotiations and that there must be "an end to the death tax" as part of broader tax reform efforts next year. He was joined in his Senate floor remarks by Sens. John Barrasso (R, WY) and Sen. Roy Blunt (R, MO), Senate minority whip. Land sales, experts say, have also accelerated by more than 20% in the last half of 2012, a concern that Congress will not act on the fiscal cliff and federal capital gains taxes will jump to 20% next year, along with a separate 3.8% tax on capital gains contained in Obamacare health care law now in effect.  

 

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.    

 

Registration Forms and Detailed Information on the CGFA Website - Click here 

  

Topics will include:  (click here for program

 

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:    GPS Equipment Tracking / On-Board Cameras       
  • New Innovations by Vendors: Panel of Vendors
    • Roll Speed Measurements
    • Inventory Management Systems
    • Flow Measurements - Dry Products
  • 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
 

 

 

 

To Stay Fit During Holidays Bend, Don't Break Routine

(Reuters) - Sticking to a fitness routine is not always easy, but holiday feasting, drinking and family can make it even harder.

 

'Tis the season, experts say, to bend your fitness routine so it does not break. "Consider the holidays a time to maintain fitness, not a time to set new goals or be ambitious," said fitness expert Shirley Archer, author of "Fitness 9 to 5" and "Weight Training for Dummies."

 

The average American gains one pound (.45 kilograms) each year during the holiday season, Archer said, but it's a fate you can avoid by being active when time allows. "Research tells us that you can get an effective strength training routine in as little as 15 minutes," she said. "This is not ideal to build strength over time, but is sufficient to keep what you have during the holidays."  

 

A bare-bones cardio workout can be accomplished by fitting short, 10-minute bouts of activity into your holiday plans. Danielle Hopkins, group fitness manager and instructor at an Equinox fitness center in New York City, tells her concerned clients to try to sweat at least 20 minutes a day. "I stress the importance of keeping to your routine. The main thing is putting it on your calendar," said Hopkins, who said drinking too much makes it harder to make it to the gym. "Always make room. It's pretty easy to do. If you're traveling, bring your running shoes, or a jump rope, or look for a gym."

 

And rest assured that one night of over-indulgence won't derail a year of work. "Everyone's diet has a bit of wiggle room," she said. "I think it's good to imbibe a little, but be strategic about what you'll allow. Have a little bit." Constantly avoiding holiday temptation is tiring and in the end unsustainable, according to Gregory Chertok, a sports psychologist with the American College of Sports Medicine.

 

When navigating holiday stresses, from family to poor food choices, Chertok, who is based in New Jersey, said a simple change in attitude can yield powerful results. "Embrace challenge rather than avoid temptation," he said. "Avoidance over time can be pretty exhausting. Just like our physical muscles, our mental muscles can get exhausted. Will power requires replenishment."

 

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