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Conveyor Currents March 15, 2013
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| Upcoming Dates |
2013
March 20, 2013 - California AG Day at the Capitol, Sacramento, CA (click)
April 24-27, 2013 CGFA Annual Convention ~ The Hyatt Regency, Huntington Beach, CA (click)
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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| Quick Links |
California Dept. of Food & Ag
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No Farm Bill Action Until After CR, Budget Resolution, Debt Ceiling... | |
While there will continue to be rhetoric about the need for a Farm Bill, when trying to reauthorize a five-year law like the omnibus ag program bill - one that costs in excess of $1 trillion when all is said and done - it's good to know how much money you can spend. This is the unknown and the roadblock facing both House and Senate Agriculture Committees in trying to move toward a markup of the new 2013 Farm Bill. While the Congressional Budget Office (CBO) said there will be less money to spend in the next five years than there was in the last five, Congress must first pass a new continuing resolution (CR) to keep the federal government operating at last year's spending levels, and the deadline for that action is March 27. Then, both chambers are required to pass budget resolutions - non-binding guidance on how the chamber believes money should be spent - and the deadline for those actions is April 14. By then Congress will have received the President's budget recommendation, due on the Hill February 2, and that will send additional signals on how dollars should be allocated. Around that time, Congress will be confronting another round of political boxing over the debt ceiling, or how much money the Administration can borrow to keep its programs up and running. Bottom line: No real Farm Bill action is expected until late April or early May at the earliest.
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| Slaughter Introduces Bill to Limit, Ban Antibiotic Use in Feed, Water - Again |
Rep. Louise Slaughter (D, NY) has introduced for the third time her Preservation of Antibiotics in Medical Treatment Act (PAMTA). The bill, which lays the root cause of antibiotic resistant bacteria in humans at the feet of animal agriculture, would eliminate "critical" antibiotics used in human medicine from use in feed and water for livestock and poultry. In public statements about the new bill, Slaughter contends FDA knows there's a human health risk from agricultural use and is choosing to ignore it. The bill has never seen action in either chamber. In a related development, Germany's Bundestag - the equivalent of Congress -- approved a measure that would reduce or eliminate the use of antibiotics in livestock production. While the measure has a long way to go before it becomes law, the action parallels laws in Denmark and the Netherlands that ban antibiotics for feed efficiency and growth promotion.
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FDA, USDA Set Series of Antibiotics Public Meetings
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FDA and USDA will cooperate in a series of five public meetings to talk about "challenges faced by the animal agriculture industry and practicing veterinarians as FDA implements its initiative for the judicious use of medically important antimicrobials in medicated feed and drinking water of food producing animals." The meetings will be held April 9 in Bowling Green, KY; April 23 in Olympia, WA; May 8 in Ft. Collins, CO; May 21 in Pierre, SD, and June 4 in College Station, TX. Additional information on the meetings can be found at
www.gpo.gov/fdsys/pkg/FR-2013-03-07/pdf/2013-05339.pdf.
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| Governor Brown Announces Appointments to Water Board | |
This week the Governor made three important appointments to the State Water Resources Control Board. He reappointed Tam Doduc, 46, of Sacramento. Doduc has held multiple positions at the California Environmental Protection Agency since 2000, including deputy secretary for environmental quality, assistant secretary for air and chemical programs, assistant secretary for agriculture and chemical programs and assistant secretary for technology certification. She was an air resources engineer at the California Air Resources Board from 1997 to 2000 and was special assistant to the secretary at the California Environmental Protection Agency from 1995 to 1997. She earned a Master of Business Administration degree from the University of California, Berkeley and a Master of Science degree in Civil Engineering from California State University, Sacramento.
The Governor reappointed Frances Spivy-Weber, 68, of Redondo Beach. Spivy-Weber was a consultant to Los Angeles Deputy Mayor Nancy Sutley in 2006 and executive director for policy at the Mono Lake Committee from 1997 to 2006. She served as director of international programs at the National Audubon Society from 1983 to 1992 and legislative assistant at the Animal Welfare Institute from 1978 to 1982. Spivy-Weber earned a Master of Arts degree in International Relations from the Johns Hopkins School for Advanced International Studies.
Governor Brown also announced the following changes to the State Water Resources Control Board. Both changes will become effective upon the retirement of Board Chair Charles R. Hoppin in April.
The Governor appointed Dorene (Dee Dee) D'Adamo, 52, of Stanislaus, D'Adamo has been senior policy advisor for Congressman Jim Costa since 2013. She was senior policy advisor for Congressman Dennis Cardoza from 2003 to 2012 and was legal counsel for Congressman Gary Condit from 1994 to 2003. D'Adamo was a visiting instructor at California State University, Stanislaus from 1992 to 1998 and an associate attorney at the Law Offices of Perry and Wildman from 1992 to 1994. She was a policy consultant at Dee Dee D'Adamo Consulting from 1991 to 1992 and legislative director for Congressman Gary Condit from 1990 to 1991. She earned a Juris Doctorate degree from the University of the Pacific, McGeorge School of Law. The association strongly supported Dee Dee for appointment.
The Governor also named board member Felicia Marcus, 57, of Emeryville, chair. Prior to serving on the board, she was the western director for the Natural Resources Defense Council from 2008 to 2012 and was executive vice president and chief operating officer at the Trust for Public Land from 2001 to 2008. Marcus served as the regional administrator at the U.S. EPA Region IX from 1993 to 2001. She was commissioner and president at the Los Angeles Board of Public Works from 1989 to 1993. Marcus served on the Delta Stewardship Council from 2010 to 2012 and currently serves as an appointee to the Commission on Environmental Cooperation-Joint Public Advisory Council (US, Mexico, Canada). She earned a Juris Doctorate degree from New York Univeristy School of Law.
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CGFA's 89th Annual Convention Plans
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It is time to mark your calendar and book your room for the 2013 CGFA Annual Convention.
April 24-27, 2013 Hyatt Huntington Beach Resort and Spa
Highlights from the Business Session & Speakers - Doing What Matters - Steering Science to Inform Public Policy
- by Frank Mitloehner, Ph.D., UC Davis
- U.S. Didn't Fall Off the Cliff...Now What? Impacts: Economy/Markets /Policy
- by Jim Wiesemeyer, Senior VP, Farm and Trade Policy, Informa Economics, Inc.
- CGFA Annual Meeting and Report
- by President John Pereira, Frontier Ag Group & EVP, Chris Zanobini
- The U.S. Dairy Market Outlook and What It Means to California
- by Mary Ledman, Daily Dairy Report, Dairy Economist
- Weather Trends, Climate Change, and Energy: Implications for California Agriculture
- by Steve Goreham, Climate Science Coalition of America
- Keynote Speaker: Mack Dryden
Registration Materials and Packets of Information have been mailed! Contact Donna Boggs @ dboggs@cgfa.org with any questions.
www.cgfa.org/events
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| House Budget Resolution Targets $31 Billion in Cuts; Senate Version at $23 Billion |
As he did last year around this time, Rep. Paul Ryan (R, WI), Budget Committee chair, this week cited record on-farm income from alternative fuels and exports and said it was time federal ag spending was reallocated to reflect this "record-breaking prosperity," all by way of explaining why his committee-passed budget resolution cuts $31 billion to farm programs and crop insurance subsidies as part of an overall reduction in ag spending of $209 billion for FY2014. Of that total, Ryan's panel proposes to take a whopping $135 billion out of USDA's various nutrition programs, including the Supplemental Nutrition Assistance Program (SNAP), better known as federal food stamps. On the Senate side, the Budget Committee approved its first budget resolution in over four years, targeting ag cuts at $23 billion or the amount Sen. Debbie Stabenow (D, MI) and her panel achieved in the Senate-approved bill in 2012. House Agriculture Committee Chair Frank Lucas (R, OK) put the Ryan plan in context: "Because we need to write a new comprehensive five-year Farm Bill, the House budget I view as guidance...and we'll craft a balanced bill that provides a safety net.
The Budget Committee gave us a number, not a long list of instructions. That's the key...they gave us a number and we're going to do our best to meet it." Part of that "guidance" is a recommendation the committee "revisit" the current federal crop insurance program structure to reflect that farmers need to assume the same level of insurance risk as other non-ag companies. Rep. Collin Peterson (D, MN), committee ranking member, said the Ryan budget was difficult to fully understand, and said last year's committee-passed Farm Bill actually achieved $35 billion in overall savings. Peterson said his read of the budget includes $18 billion in conservation "savings," and $130-150 billion cuts in nutrition programs, a number he said will not get his party's support. Peterson reiterated his desire that House Speaker John Boehner (R, OH) and Senate Majority Leader Harry Reid (D, NV) "make a deal and give us a number (on non-nutrition savings), and whatever that number is, if it's $30 billion, $35 billion $25 billion, we can do it. But give us a number that's agreed to so we don't get caught up in this war between the two chambers... (then) give us a number on SNAP...and we'll do it."
On the Senate side, Sen. Chuck Grassley (R, IA) said payment limitations will be part of the Senate Agriculture Committee's move to achieve the recommended $23 billion. "All Farm Bill spending will be on the table for spending reductions, including nutrition programs, Grassley said. However, it's expected the ultimate savings number will mirror what the committee approved last year.
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| Governor Appoints Modesto Native to Delta Stewardship Council | |
Frank Damrell, 74, of Sacramento, has been appointed to the Delta Stewardship Council. Damrell has been counsel at the law offices of Cotchett, Pitre and McCarthy LLP since 2012. He was a judge at the United States District Court for the Eastern District of California from 1997 to 2011. Damrell practiced law privately from 1968 until 1997 and served as deputy district attorney for Stanislaus County from 1966 to 1968 and deputy attorney general for the State of California from 1965 to 1966. Damrell earned a law degree from Yale Law School.
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CGFA District Meeting in Madera
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Over 50 golfers attended the March 14th district meeting and golf tournament and sliced, hooked, birdied and eagled their way on the links at Riverbend Golf Club. Our thanks to all those who participated and supported the event and to our Chairmen, John Kauffmann and Jerry Marshall for putting together a great tournament. At the BBQ dinner we were fortunate to have a guest speaker, Assembly Member Frank Bigelow. He spoke about current legislation, legislation he is sponsoring, his committee assignments and his efforts to work with both parties for the common good. Assembly Member Bigelow remains active in the operation of his family's cattle ranch Bigelow Farms. Additionally, Executive Vice President Chris Zanobini gave an update on the CGFA activities and issues that the Association is working on in Sacramento. Zanobini also spoke with members about specific issues including metal theft, labeling and dairy concerns. All in all it was great day to mix business with pleasure. Hope to see you at the CGFA convention in Huntington Beach.
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| USDA Deputy Secretary Merrigan Leaving USDA | |
Deputy Secretary of Agriculture Kathleen Merrigan, the department's number two executive, surprised the Washington, DC, ag community this week by announcing her resignation from USDA. She did not give a reason for her leaving or a time line on her departure. Secretary of Agriculture Tom Vilsack praised Merrigan's leadership as the budget officer for USDA, her direction of the "Know Your Farmer, Know Your Food" program, and her shepherding of protections for the department's organic program. Merrigan, in a statement released after the announcement and after Vilsack's statement, said she was grateful for the opportunity, and cited "implementation of the 2008 Farm Bill, improving school meals, expanding opportunities for American farmers, spending countless hours in the White House situation room, shepherding budgets through challenging times, and it has been an honor to play a small part in history... I hope that during my tenure I was able to help open USDA's doors a little wider, inviting new and discouraged constituencies to participate in USDA programs. With Secretary Vilsack at the helm...I am able to leave fully confident...USDA will thrive."
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| New Form I-9 and New Handbook for Employers Available |
On March 8, U.S. Citizenship and Immigration Services (USCIS) made available the much anticipated new Form I-9, which is available on their website. (click here) The new form has a revision date of "03/08/13". While employers may begin using the new form to document new hire eligibility immediately, older forms with a revision date of "02/02/09" and "08/07/09" may be used through May 7. The new form is officially nine pages, though six pages are instructions. Purpose of Form :Form I-9 is used for verifying the identity and employment authorization of individuals hired for employment in the United States. All U.S. employers must ensure proper completion of Form I-9 for each individual they hire for employment in the United States. This includes citizens and noncitizens. Both employees and employers (or authorized representatives of the employer) must complete the form. On the form, an employee must attest to his or her employment authorization. The employee must also present his or her employer with acceptable documents evidencing identity and employment authorization. The employer must examine the employment eligibility and identity document(s) an employee presents to determine whether the document(s) reasonably appear to be genuine and to relate to the employee and record the document information on the Form I-9. The list of acceptable documents can be found on the last page of the form. Employers must retain Form I-9 for a designated period and make it available for inspection by authorized government officers. NOTE: State agencies may use Form I-9. Also, some agricultural recruiters and referrers for a fee may be required to use Form I-9.
In addition, on March 11, the USCIS released a revised M-274, Handbook for Employers, also available on the USCIS web site. Staff responsible for employee verification should carefully review the new I-9 form as well as the new Handbook for Employers before altering existing work processes. |
| Natural Resources Agency Releases Bay Delta Conservation Plan | |
On Thursday march 13th, the Natural Resources Agency released the first section of the administrative draft of the Bay Delta Conservation Plan. The release of these first chapters is another major milestone in the seven-year effort to restore the Sacramento-San Joaquin Delta ecosystem and provide a reliable water supply for two-thirds of California's population.
Below is a link to the plan.
http://baydeltaconservationplan.com/BDCPPlanningProcess/KeyAnnouncements.aspx
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| Waste Discharge Requirements for Growers in the Eastern San Joaquin River Watershed Challenged From All Sides | |
On December 7, 2012, the Central Valley Regional Water Quality Control Board ("Regional Board") adopted a novel state discharge permit for irrigated agricultural lands located in the Eastern San Joaquin River watershed. (Order No.R5-2012-0016, Waste Discharge Requirements General Order for Growers in the Eastern San Joaquin River Watershed that are Members of the Third-Party Group ("WDR").) The WDR was issued to implement the irrigated lands regulatory program for the watershed, and rescinds the previously issued conditional waiver of waste discharge requirements for that area. Draft waste discharge requirements have also been circulated, but not yet adopted, for irrigated lands in the Tulare Lake Basin.
The WDR, which may serve as a model-Waste Discharge Requirement for growers in other watersheds within the Central Valley, has been challenged by both agricultural and environmental coalitions. Three petitions have been filed with the State Water Resources Control Board, representing over a dozen separate interests in challenging the legality of the WDR.
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| Hours of Service Rules on Ag Exemptions Published | |
The Department of Transportation this week published its final rule on hours of service and formally designating statutory exemptions for drivers hauling agricultural commodities included in last year's enacted surface transportation law. The rules are effective March 15. States are to adopt their rules as quickly as possible. The two exemptions are carriers transporting ag commodities and farm supplies, as well as a statutory exemption from most regulations for covered farm vehicles by farm and ranch operators, their employees and certain other specified individuals under certain circumstances.
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| Senate Struggles with FY2013 Spending Package as 100 Amendments Filed | |
Sen. Barbara Mikulski (D, MD), chair of the Senate Appropriations Committee, is working with Senate Majority Leader Harry Reid (D, NV) to keep her committee's FY2013 continuing resolution (CR) on track despite her colleagues' lining up to amend a bill crafted to get Senate approval and fairly quick House agreement. While the House bill takes the current CR and adds additional spending for the Department of Defense and for military construction the last six months of FY2013, Mikulski broadens her bill to include additional money for USDA/FDA, the Departments of Commerce and Justice, and new dollars for federal science programs. The House has quietly signaled it can live with Mikulski's additions. She is also trying to preserve language in her bill that would give federal agencies additional flexibility on how to administer spending reductions required under sequestration.
At the same time and despite House Speaker John Boehner's (R, OH), warning to the Senate to not "load up" its bill with special interest language, more than 100 amendments have been filed ranging from how USDA approves biotech crops to the labeling of genetically enhanced Atlantic salmon. Only a few amendments received votes when the Senate took up the bill on Thursday, with an amendment by Sen. James Inhofe (R, OK) to exempt farmers from EPA's oil spill prevention regulations being accepted by unanimous consent despite strong opposition by Sen. Barbara Boxer (D, CA), chair of the Senate Environment & Public Works Committee, on which Inhofe sits. Another controversial section of the Mikulski bill is a provision carried over from the current CR that would require USDA to approve the sale and use of biotech seeds even if a court has deemed the environmental assessment of the seeds inadequate.
While the Biotechnology Industry Organization (BIO) says the provision provides farmers "certainty" in making planting decisions, Sen. Jon Tester (D, MT) is trying to kill the language. Unresolved between Reid and Senate Minority Leader Mitch McConnell (R, KY) is how many more amendments will be acceptable to both sides for debate and votes and this pushed action on the package from this week into next week, with Reid hoping to resume consideration on Monday. Reid contends most of the amendments should not be part of a six-month CR.
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| House Ag Committee Takes on Derivatives Rules | |
Requirements to strictly regulate derivatives trading included in the Dodd-Frank law are under assault in the House Agriculture Committee as the panel held a hearing this week to review seven bills aimed at modifying current law. The goal, said Chair Frank Lucas (R, OK), is to make sure derivatives trading does get so expensive as to discourage companies from using it to hedge risk. The ag panel held the hearing, featuring testimony by Commodity Futures Trading Commission (CFTC) Chair Gary Gensler and a panel of financial companies, to examine "legislative improvements" to the Dodd-Frank requirements on derivatives. Dodd-Frank regulates the $600-trillion derivatives market for the first time, and its requirements were supposed to increase "transparency" and reduce risk. One bill under review would exempt end users, those who actually use the markets to hedge risk and are non-financial companies, from new margin requirements under Dodd-Frank.
Another would ensure that "inter-affiliate" transactions, those within the same company, are not regulated as swaps so as not to subject companies to double margin requirements. There's also a bill to "soften" requirements that banks spin off their derivatives trading arms as separate businesses. The CFTC and the Securities & Exchange Commission (SEC) have wrestled with how to implement the new requirements. Most of these bills were approved by the full committee last year, and some of them actually passed the House, but saw no action in the Senate. As to whether any of the bills will be enacted by Congress this session, ag committee ranking member Rep. Collin Peterson (D, MN) said this, "Despite the bipartisan support that some of these may have, I just don't see how they have a chance of passing the full House."
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| Deal Cut on New Senate Waterways Reauthorization |
Sen. Barbara Boxer (D, CA), chair of the Senate Environment & Public Works Committee, and her panel's ranking member, Sen. David Vitter (R, LA) have cut a deal on reauthorizing a new Water Resources Development Act (WRDA), setting markup on the bill for March 20. WRDA controls project designation and funding for locks, dams, flood control and ecosystem restoration projects across the U.S. waterway system. Key aspects of the draft bill include all tax revenue collected from the Harbor Maintenance Trust fund will be spent on actual port maintenance and dredging projects; a pilot program that would allow the Corps to hand off management of some projects to state and local governments; any cuts in the annual appropriation for the Army Corps of Engineers below the previous year's level would require two-thirds of the Senate to approve; environmental reviews of waterway projects would be streamlined; heavy budget penalties would be imposed on the Corps and other federal agencies for missing construction deadlines, and the Corps would be allowed to dredge eligible ports and harbors to 50 feet to accommodate larger cargo ships that will transverse the expanded Panama Canal. The draft does not include an increase in diesel barge taxes since that issue is the jurisdiction of the Senate Finance Committee.
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