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Conveyor Currents January 25, 2013
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| Upcoming Dates |
2013
March 14, 2013 - CGFA District Meeting and Golf Tournament in Madera, CA (flyer)
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
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California Dept. of Food & Ag
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| CDFA Temporarily Raises Producer Milk Prices |
The temporary price increases are the outcome of a Dec. 21 hearing called by CDFA Secretary Karen Ross.
The increases by class are:
- Class 1 -- approximately 5 cents per hundredweight
- Class 2 and 3 - approximately 10 cents per hundredweight
- Class 4a and 4b - approximately 30 cents per hundredweight.
- The adjustment will increase the monthly pool price in California's two marketing orders by approximately 25 cents per hundredweight.
A more detailed explanation of the department's decision can be found on the Dairy Marketing website www.cdfa.ca.gov/dairy by clicking on the Hearing Matrix.
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| Governor Gives Upbeat State of the State |
Saying California was "back" and "on the move," a chipper Gov. Jerry Brown urged lawmakers in his annual State of the State speech January 24 to streamline funding for schools, focus on implementing federal health care reform and keep a tight rein on spending so the budget stays balanced. He addressed the following issues by stating:
Water
Central to the life of our state is water and one sixth of that water flows through the San Joaquin Delta. Silicon Valley, the Livermore Valley, farmers on the East side of the San Joaquin Valley between Fresno and Kern County and farmers on the West side between Tracy and Los Banos, urban Southern California and Northern Contra Costa, all are critically dependent on the Delta for Water.
My proposed plan is two tunnels 30 miles long and 40 feet wide, designed to improve the ecology of the Delta, with almost 100 square miles of habitat restoration. Yes, that is big but so is the problem. The London Olympics lasted a short while and cost $14 billion, about the same cost as this project. But this project will serve California for hundreds of years.
Climate Change
When we think about California's future, no long term liability presents as great a danger to our wellbeing as the buildup of carbon dioxide and other greenhouse gases in the atmosphere. According to the latest report from the World Bank, carbon dioxide emissions are the highest in 15 million years. At today's emissions rate, the planet could warm by more than 7 degrees Fahrenheit by the end of the century. California is extremely vulnerable because of our Mediterranean climate, long coastline and reliance on snowpack for so much of our water supply.
Again California is leading the way. We are reducing emissions as required by AB 32 and we will meet our goal of getting carbon emissions to 1990 levels by 2020. Key to our efforts is reducing electricity consumption through efficiency standards for buildings and appliances. Over the last three decades, these pioneering efforts have saved Californians $65 billion dollars. And we are not through yet.
We are also meeting our renewable energy goals: more than 20% renewable energy this year. By 2020, we will get at least a third of our electricity from the sun and the wind and other renewable sources-and probably more.
High Speed Rail
Last year, you authorized another big project: High Speed Rail. Yes, it is bold but so is everything else about California. Electrified trains are part of the future. China already has 5000 miles of high speed rail and intends to double that. Spain has 1600 miles and is building more. More than a dozen other countries have their own successful high speed rail systems. Even Morocco is building one.
The first phase will get us from Madera to Bakersfield. Then we will take it through the Tehachapi Mountains to Palmdale, constructing 30 miles of tunnels and bridges. The first rail line through those mountains was built in 1874 and its top speed over the crest is still 24 miles an hour. Then we will build another 33 miles of tunnels and bridges before we get the train to its destination at Union Station in the heart of Los Angeles. It has taken great perseverance to get us this far. I signed the original high speed rail Authority in 1982-over 30 years ago. In 2013, we will finally break ground and start construction.
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| Governor Calls Special Session on Health Care | |
Yesterday, Governor Brown called for a special session of the Legislature to focus lawmakers on implementation of the federal Affordable Care Act, which significantly expands eligibility for Medi-Cal, the state's health care system for the poor, and creates a host of other "incredibly complex" challenges, Brown said. "Given the costs involved, great prudence should guide every step of the way," Brown cautioned, noting that total costs of implementing the act were still unknown. Specifically the proclamation focuses on three areas:
- California Governor Calls Special Session on Health Care's private health coverage market, and rules and regulations governing the individual and small group markets related to guaranteed issue of coverage, pre-existing condition exclusions, rating restrictions, and any other requirements necessary to conform state law to federal rules.
- California's Medi-Cal program and changes that are necessary to implement federal law, including requirements for eligibility, enrollment, and retention.
- Options that allow low-cost health coverage to be provided to individuals who have income up to 200 percent of the federal poverty level within the California Health Benefit Exchange, to the extent allowed by federal law or regulations.
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| Governor Makes Two Appointments to State Board of Food and Ag |
Bryce Lundberg of Butte, and Miles Reiter of Aptos were appointed this week to the California State Board of Food and Agriculture. Lundberg has been owner and partner at B and E Lundberg Farm since 1985 and has held multiple positions at Lundberg Family Farms since 1985, including owner, vice president of agriculture, director of organic certification and board member. He currently serves as chair of the Northern California Water Association and is a government affairs committee member at California Certified Organic Farmers. Lundberg is also a board member of the Western Canal Water District and of the California Farm Water Coalition.
Reiter worked at Driscoll Strawberry Associates Inc. as chief executive officer since 2000 and chairman since 1988. He was president at Aptos Berry Farms Inc. from 1977 to 2000. Reiter served on the Produce Marketing Association Board of Directors from 2007 to 2010 and on the retail board from 2003 to 2006. He served on the Western Growers Association Board of Directors from 2002 to 2009.
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| President Obama Takes Oath of Office; Moves to Fill Cabinet Slots |
President Obama's policy agenda for his second term had few surprises as presented in his inaugural speech January 21. The President laid out broad priorities for the next four years, including climate change, immigration reform, sustainable energy, gay rights, protection of federal entitlements, including Medicare, Medicaid and Social Security, and equal pay. And typical in a reelected President's second term, the White House is moving to fill cabinet and high-ranking administration slots soon to be vacant due to resignations.
This week, Sen. John Kerry (D, MA), Obama's nominee to succeed Secretary of State Hillary Clinton, underwent his first confirmation hearing before the Senate Foreign Relations Committee, a panel he chaired. Former Sen. Chuck Hagel (R, NE) is the nominee to replace departing Defense Secretary Leon Panetta, and his confirmation hearings will begin next week. White House Chief of Staff Jack Lew has been nominated to replace Secretary of the Treasury Tim Geithner, and John Brennan, a former CIA operative, has been nominated to head the intelligence agency. This week, Obama also nominated Mary Jo White, a former federal prosecutor and lawyer, to head the Securities & Exchange Commission (SEC).
Members of Obama's cabinet who've announced they're staying include Secretary of Agriculture Tom Vilsack, who said in a statement he shares the President's "deep appreciation for rural America...(and) I am pleased to continue working alongside President Obama to grow more opportunity in rural America." Others include Attorney General Eric Holder, who's said he'll stay on for at least another year; Secretary of Health & Human Services Kathleen Sebelius; Secretary of Housing & Urban Development Shaun Donovan; Secretary of Education Arne Duncan; Secretary for Veterans Affairs Eric Shinseki, and Secretary of Homeland Security Janet Napolitano.
Announced departures, but without replacement nominees, include EPA Administrator Lisa Jackson; Secretary of the Interior Ken Salazar; Secretary of Labor Hilda Solis; Secretary of Energy Steven Chu; U.S. Trade Representative Ron Kirk, and FBI Director Robert Mueller whose 10-year term expired in 2011, but who stayed on for two years at the President's request. Filling the EPA, energy and interior slots is critical to the President's energy and climate change priorities.
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| Farm Bill Makes Reid Priority List; House Ag Panel Organizes | |
Senate Majority Leader Harry Reid (D, NV) this week formally introduced his list of 10 priority bills for the 113th Congress and included reauthorization of a five-year Farm Bill as part of that list. Meanwhile, the House Agriculture Committee held its organizing business meeting, with leadership pledging Farm Bill action as well. Other bills which made it on to Reid's priority list reflect known policy priorities, and include immigration reform, gun control, infrastructure spending, veterans employment, disaster preparedness, tax reform and election reform. Key to Farm Bill action by both Senate and House Agriculture Committees, however, will be the size of the pot of federal money available to them to craft their respective Farm Bills.
The Congressional Budget Office (CBO) will release in early March the FY2013 budget baseline for the Farm Bill - available dollars based on previous program costs - and while the House has approved annual budget resolutions, the Senate hasn't passed a budget resolution for nearly four years. That changes this year given the Senate will likely "return to regular order" and approve its own budget resolution, according to Sen. Patti Murray (D, WA), new chair of the Senate Budget Committee. That the Senate will pass a budget resolution was confirmed by the Senate's third ranking Democrat, Sen. Chuck Schumer (D, NY), a senior member of the Senate Finance Committee. However, mandatory action to cut $1.2 trillion in federal spending over the next decade by March 1 - the 11th-hour fiscal cliff agreement - will complicate CBO's calculations and could delay Farm Bill actions in both chambers until at least the first part of April. Ideally, both the House and Senate would agree to identical budget resolution numbers, require the same level of savings to be reconciled and set identical target dates for action.
These procedural issues, however, have not been addressed. Reid's action nonetheless drew immediate praise from Senate Agriculture Committee Chair Debbie Stabenow (D, MI) who called the Reid list "privileged, top priority bills, underscoring his support for and commitment to enacting a new five-year Farm Bill." Stabenow, in a statement released by the committee, reiterated her committee's Agriculture Reform, Food & Jobs Act from the 112th Congress was approved by a wide bipartisan majority of the committee and passed overwhelmingly in the Senate. Stabenow said she's "committed to convening a committee markup as soon as possible".
Once the committee marks up its Farm Bill, it will be substituted for the bill introduced by Reid this week. In the House, which failed to take full chamber action on a House Agriculture Committee-approved five-year Farm Bill in the 112th Congress because leadership didn't see the votes for approval, the ag panel this week held its first formal organizing committee meeting of the new Congress following the naming of Democrat members. The committee has eight new GOP members and 11 new Democrats, with one Democrat vacancy left to fill. Chair Frank Lucas (R, OK) told his new committee that last year "we advanced a strong, reform-minded, fiscally responsible farm bill...that demonstrated the true spirit of bipartisanship...this is a new Congress and a new opportunity to reauthorize a five-year comprehensive farm bill." He stressed his commitment to ranking member Rep. Collin Peterson (D, MN) to repeat the feat this session, explaining to his newly minted committee members that ag is not a partisan issue, but has its share of regional and commodity challenges. For his part, Peterson told the committee, "I think we're going to figure out some way to sit down and see how we're going to move ahead with this." Lucas did not give a date for his first Farm Bill markup. Peterson alluded to conversations he's had this month with House Speaker John Boehner (R, OH) seeking House leadership's commitment to provide floor time for a new Farm Bill once the committee completes its action.
Boehner personally is no fan of House dairy support programs, championed by Peterson, and the Speaker at one point called the market stabilization approach favored by the National Milk Producers Federation a "Soviet-style" supply management effort. Peterson sent Boehner and Majority Leader Eric Cantor (R, VA) a strong letter in early January demanding a commitment or he would not participate in the "fool's errand" of a Farm Bill markup. Lucas, in press interviews following the committee meeting, said he shares Peterson's priority on "getting management's attention" on full House Farm Bill action.
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| Feed, Grain Support House Bill to Reform CRP |
Nine ag input and producer groups, including the American Feed Industry Assn. (AFIA), the National Grain & Feed Assn. (NGFA) and The Fertilizer Institute (TFI), this week signed a letter to House Agriculture Committee Chair Frank Lucas (R, OK) and committee ranking member Rep. Collin Peterson (D, MN) pledging support for HR 349, a bill by Rep. Martha Roby (R, AL) to reform the Conservation Reserve Program (CRP) and asking the committee leaders to include the bill as part of the committee's Farm Bill efforts. The bill would reduce the annual acreage cap in the CRP over a five-year period to 24 million acres, down from the current 32 million. It would also better target the CRP to truly environmentally fragile lands by removing Class I and Class II land capability classes from eligibility and exempt land enrolled as buffers, filterstrips and wildlife habitat. Finally, the bill would mandate USDA for FY2014 give existing contract holders the freedom to begin restoring production - before contracts expire and without penalty - on CRP acres enrolled for at least five years. The groups urged the committee to consider extending this "early out" provision beyond FY2014.
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| FSA Announces Extended Program Sign-up |
Now that Congress has extended most 2008 Farm Bill authorities through the end of September, this week the Farm Service Agency (FSA) announced it is extending deadlines for program sign-up beginning in February. Included as "extended programs" are the direct and counter-cyclical payment programs (DCP), the Average Crop Loss Election Program (ACRE) and the Milk Income Loss Contract Program (MILC). Signups for DCP and ACRE - with no changes in program provisions - for 2013 crops will be on February 19; DCP sign-up will end August 2. The ACRE sign-up will end June 3. All dairy producer MILC contracts are automatically extended to September 30. House Agriculture Committee Chair Frank Lucas (R, OK) praised the announcement, saying it gives producers "certainty for the 2013 crop year."
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| Deal with Russia to Facilitate Feed Exports Signed by APHIS |
USDA's Animal & Plant Health Inspection Service (APHIS) this week announced it signed a deal with its Russian counterpart to facilitate feed imports by Russia. The deal follows congressional enactment of the Russia permanent normal trade relations (PNTR) agreement, and will facilitate the sale of animal feeds and ingredients, particularly feed supplements and vitamin premixes containing plant-based carriers. The feeds will be for cattle, pigs, poultry, sheep, goats, horses and other animals.
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| Climate Change Initiative Shaping Up as First Major Push by the White House, Senate | |
Having clearly stated his priority on substantive action to cope with climate change, President Obama and Senate Democrats are currently weighing options on how to proceed. Obama says his initial focus in curbing greenhouse gases (GHG) will be through EPA regulations; the Clean Air Act (CAA) gives the agency authority to regulate about 70% of CHG emissions. The House and Senate, however, are expecting a flood of bills aimed at the same goal. This week, several members of the House and Senate with a priority on climate change legislation, formed a bicameral task force that will work to influence the Administration's approach to regulating GHG and other climate change initiatives. Rep. Henry Waxman (D, CA), who chaired the House Energy & Commerce Committee in 2009 and was author of comprehensive climate change legislation eventually approved in the House but died in the Senate, said the group's goal is to get the President to "develop a plan for the administration under existing CAA authority to take action without Congress."
He said such an initiative "may spur Congress to act." The group said it's imperative Congress accelerate efforts to assist in clean energy development while alerting the public it's time to adapt to a future that includes more extreme weather. Most congressional observers believe a sweeping federal approach to CHG reduction, including some proposals to resurrect the highly controversial and ultimate unsuccessful cap-and-trade schemes of 2009, and new proposals on creating a federal carbon tax, are politically impossible to get through both chambers. Sen. John Kerry (D, MA), during his first confirmation hearing this week before the Senate Foreign Relations Committee as nominee to be Secretary of State, pledged to be a "passionate" advocate of programs to combat global warming in answering a question from Sen. John Barasso (R, WY) related to the State Department's role in the review of the Keystone XL Pipeline application.
The department reviews the application because the line crosses international borders. Kerry tried in 2010 to develop a bipartisan Senate climate change bill, and told the committee "the solution to climate change is energy policy," adding he'll work to persuade coal state Senators and others in both parties that change is good. Sen. Barbara Boxer (D, CA), chair of the Environment & Public Works Committee, said her first action will focus on reducing carbon emissions from buildings and homes, saying 11% of U.S. emissions are from energy inefficient commercial and residential structures. She's planning legislation that would have the federal government lead by example, requiring the General Services Administration (GSA) to conduct federal building energy audits and to develop plans to upgrade the buildings. Her bill would also provide a combination of private and federal monies to help local communities. Sen. Barney Sanders (I, VT) said this week he'll introduce an "extraordinarily extensive" climate change bill in March that will include a "price on carbon" and heavy investment in sustainable energy.
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| Chamber Wants Obama to Prioritize Trade Promotion Authority |
The U.S. Chamber of Commerce this week urged President Obama to be more aggressive in seeking expanded U.S. trade, urging him to prioritize his request for fast-track trade promotion authority. Trade promotion authority or "fast track" as it's also known, allows the President to negotiate directly with other nations on trade treaties, calls for expedited congressional consideration within 90 days of a treaty being submitted, but restricts the House and Senate to voting on the finished product on straight up or down votes - no amendments allowed. The Chamber's request comes as the White House is moving to complete negotiations on the Trans-Pacific Partnership agreement, its top trade priority, but the business group says the Administration should push for fast track authority before the deal is done, expected by October. Trade promotion authority for the President lapsed in 2007.
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| Bill to Change Spill Control Reg Impact on Farms Introduced |
Controversial federal "oil spill" regulations will be modified as they pertain to farms and ranches under legislation introduced this week by Rep. Rick Crawford (R, AR) and 33 bipartisan colleagues. Basically the Crawford bill would require certification of compliance with EPA's spill prevention, control and countermeasure rule by a professional engineer only if the farm's aboveground storage tank holds more than 10,000 gallons, aggregate aboveground storage is more than 42,000 gallons or the farm has a history of spills. Owner/operators can self-certify if aggregate aboveground capacity is greater than 10,000 gallons but less than 42,000, and there is no history of spills. Exempt would be farms where storage is less than 10,000 gallons and there is no history of spills.
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| Legislation to Curb High-Cost Rules Re-Introduced | |
More than 120 House Republicans, led by Rep. Todd Young (R, IN), this week introduced legislation to give Congress override authority when it comes to agency and department regulations costing at least $100 million. The bill, the Regulations from the Executive in Need of Scrutiny (REINS) Act, was approved by the House in the last Congress, but languished in the Senate. The bill would require a straight up or down vote by Congress on any regulation deemed a "major rule" - bills with at least a $100-million impact on the economy.
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| Short-term Debt Ceiling Deal Holds Congressional Pay Hostage to Budget Action | |
Avoiding yet another political showdown with the White House, the House hammered together a short-term extension of the federal debt ceiling - the government's borrowing authority - extending the authority through May 18, but adding a condition that both the House and Senate must pass budget resolutions by April 15 or face suspension of member pay checks. The action is expected to be approved in the Senate and the President has said he will sign the measure. The deal effectively pushes the debt ceiling debate beyond the March 31 deadline for achieving spending cuts to meet obligations under the Budget Control Act of 2011, a measure which requires the government to chop $1.2 trillion from federal spending over the next decade.
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