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Conveyor Currents                                  May 3, 2013
Upcoming Dates
               
2013

May 15-16, 2013   California Animal Nutrition Conference.  Radisson Hotel in Fresno, CA
 (click here for program)

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
CGFA Annual Convention Recap
Immigration Reform Action Begins in House with Goodlatte Ag Worker Bill
Lucas Set to Go on Farm Bill Markup
2013 CA ARPAS & CGFA Internships With CDFA
Minimum Wage Bill Passes First Hurdle
Governor Brown Concerned About Progress of CEQA Reform
Bay Delta Conservation Plans Moving Froward
Budget Picture is Brighter, Governor Urges Caution
New Trucking Regulations Will Increase Costs for Ag Shippers
Farm Machinery Theft
Boxer to Hold Oversight Hearing on West
House Committee Takes Comments on RFS Impact on Agriculture
Chemical Industry Weighs in on Anti-Competition Action Against Rails
Court Dumps Enviro Suit Against EPA
USDA and Other Administration Changes
Master the Maze of Health Care Reform: Providing Clarity on the Affordable Care Act
CGFA Annual Convention Recap

Last week, 300 attendees gathered at the Hyatt Huntington Beach Resort for the CGFA 89th Annual Convention.  The business program was packed with attendees as they listened to informative speakers on key issues facing our industry such as Economics, Science, Dairy Market Outlook and Climate Change, as well as, the CGFA annual meeting and reports by EVP Chris Zanobini and our Legislative Advocate, Dennis Albiani.

President John Pereira gave a heartfelt speech at the group luncheon inspiring involvement and participation in the association. In addition to his remarks, he presented plaques of appreciation to our retiring board members (pictured below) and announced the new incoming officers and directors:

Retiring Board of Director Members
    Brian Balukoff, Adams Grain
    Glenn DeJong, Alfalfa Supply
    Mark Krebsbach, Western Milling
    Jerry Marshall, J.R. Simplot AgriBusiness
    Ken Zeman, Harris Ranch

New Board of Director Members
    Phil Wadell, Foster Farms
    Frank Garczynski, Agro-Pomace
    Kevin Shore, ReConserve
    Stephen Silva, E.B. Wakeman Co.
    Dan McGregor, Union Pacific Railroad

Continuing Board of Director Members
    John Pereira, Frontier Ag Co. (Past President)
    Peter Hanlon, Hanlon Trading, President
    Glenn Bach, Frizelle Enos Feeds
    Geoff Holland, NuWest Milling LLC
    John Kauffmann, J.D. Heiskell & Co.
    Michael Koewler, Sacramento Rendering Co.
    Bruce Leach, Leach Grain & Milling
    Dennis Morrison, IGM
    Tom Prokop, Imperial Western Products
    Doug Reynolds, H & H Engineering Construction
    Gerrit Van Leeuwen, Star Milling Co.


(pictured here: Mark Krebsbach, John Pereira, Jerry Marshall and Ken Zeman)


We want to thank our many generous sponsors for their support.  Without the support of these companies we could not bring you the quality program and caliber of speakers that were enjoyed this year.  Please click on sponsor link for a list of names and thank them when you get an opportunity.


A special word of thanks to the 2013 Convention Committee who worked extremely hard to put together this top-notch program:  John & Caroline Pereira, Frontier Ag Co.,  Bob & Faith Gallagher, A.L. Gilbert Co., Gerrit and Carol Van Leeuwen, Star Milling Co. and Ron Seley, Seley & Co.

We look forward to having you all attend our 90th Annual Convention at the Sheraton in Maui!   Start looking at airfares over the next few months - you would be surprised at the great deals offered by many airlines such as Alaska Airline and Hawaiian Air.  Please take our survey when you see it come to you about your plans for next year so I can block an adequate number of rooms for those of you that want to stay a day or two before/after the convention program.

April 23-26, 2014

  

Immigration Reform Action Begins in House with Goodlatte Ag Worker Bill

While the Gang of Eight Senators pushing bipartisan, comprehensive immigration reform legislation the Senate preps for Judiciary Committee markup of the bill May 8.  The House made good on its word to move its version of immigration reform legislation through a series of shorter focused bills rather than a single legislative package.                                

 

Rep. Bob Goodlatte (R, VA), chair of the House Judiciary Committee, introduced his ag guestworker visa bill.  The Goodlatte bill would allow more ag workers into the country than the Senate bill, capping a new H-2C visa program at 500,000 workers compared with 112,000 in the Senate version.  Goodlatte's version would allow workers to stay in the country for up to three years, but they would be required to leave the country periodically. The Senate bill allows for a five-year period before a worker would need to leave the country.   

 

The bill also covers jobs in meat processing. Further, Goodlatte's bill lacks the "fast track" green card option available in the Senate bill that would allow undocumented aliens in the program to qualify after five years. While the meat and poultry industries praised the bill, the United Farm Workers, which negotiated with ag growers on the Senate language, strongly criticized the legislation.  The ag growers coalition said its support remains with the Senate bill.  Goodlatte said this week he expects to introduce a series of reform measures over the next several weeks.

 

Lucas Set to Go on Farm Bill Markup; Stabenow Could Move Next Week

House Agriculture Committee Chair Frank Lucas (R, OK) this week not only confirmed he's on track to mark up a five-year 2013 Farm Bill May 15, but this year's version will cut $38 billion out of USDA spending over 10 years, $11 billion more than his committee's 2012 version. More than half of the cuts will come from the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, but he declined to detail where the other $20 billion will be cut, other than to say the $5-billion-a-year direct payment programs are history.  

Meanwhile, Sen. Debbie Stabenow (D, MI), chair of the Senate Agriculture Committee, is reportedly set to gavel her committee into markup next week, according to Sen. Charles Grassley (R, IA).  "That's what I've heard and that's what I'll be ready for," Grassley told reporters.   Both chairs want their bills ready for full House and Senate floor action by mid-June, with conference action in enough time to get a new comprehensive law in place by the end of September.  As expected, the Senate Farm Bill will be almost identical to the bill passed by the full Senate in 2012. The big difference will be the commodity title, Grassley said, describing it as the only title in the Senate's bill not resolved for the most part.  The Senate bill will seek to cut about $23 billion, the same total savings achieved in 2012. 

However, the Congressional Budget Office (CBO) now scores the 2012 Senate bill at about $13 billion in savings, so Stabenow is going to have to get more creative or cut deeper into some programs.  The Senate only cut SNAP funding by about $4 billion last year and Democrat resistance to cutting more runs deep. However, Sen. John Thune (R, SD) has a bill that will cut SNAP by $30 billion over 10 years, and Stabenow may allow cuts in food stamps to be fought out on the floor.  Grassley says there may also be a proposal to further reduce federal crop insurance funding, but they won't succeed.  Cutting crop insurance premium subsidies will just lead to the likelihood of higher disaster payments, Grassley said. Further complicating Senate committee consideration is whether or not Stabenow will allow the United Egg Producers-Humane Society of the U.S. (HSUS) "enriched cages" hen housing bill to be included in the committee bill that's presented for markup.  
 
2013 CA ARPAS & CGFA Internships With CDFA 

SCOPE OF WORK - POSITION #1:

Using the CAL POLY Feedmill as an example facility the intern will create a document where all pre-requisite programs required under the Food Safety Modernization Act are developed and implemented.  This includes: Standard Operating Procedures, Good Manufacturing Procedures, hazard analyses, preventive controls, verification and validation, and recordkeeping.   Based on the materials developed, a how-to booklet with example documents for the CA feed industry will be developed.

 

SCOPE OF WORK - POSITION #2

The intern will compile all the data from the 2012 corn crop survey and publish the survey results summary.  This would be distributed on the FEED website, and shared with FDA Center for Veterinary Medicine, and CA ARPAS.  The intern will also be working with Toxicologists (@ UC DAVIS) on compiling data of all feed trials/studies associated with new and/or undefined feed ingredients.  The intern will work with CDFA Feed Inspection field staff in obtaining samples, requesting nutrient profiles, and compiling all data findings.  The data compiled will be utilized the by SAFE Technical Advisory Sub-Committee.

 

ADDITIONAL SCOPE OF WORK, IF TIME PERMITS:

Either or both Intern(s) can work with the FEED and SAFE Program staff on designing a SAFE Program Newsletter template.  This publication will be distributed to all CA feed licensees bi-annually.

 

Each intern will receive up to $2000.00 (200 hours at $10/hr; ~8 weeks).  Lodging and Mileage are not funded.  Position #1 will require some time in San Luis Obispo and Sacramento.  Position #2 will be based in Sacramento.  Internships will begin about June 17th.

 

Please send resume, letter of interest that includes which position you are applying for and two (2) letters of reference to:  Dr. Marit Arana, ARPAS Scholarship Chair, PO Box 38, Oakdale, CA 95361 or marit.arana@algilbert.com. The deadline for application is May 31, 2013.  All materials must be received by Dr. Arana on or before May 31st.

 

Minimum Wage Bill Passes First Hurdle

A bill that would raise the minimum wage and index it to inflation passed it's first committee last week.  AB 10 (Alejo) passed Assembly Labor and Employment Committee on April 24.  The bill would increase the minimum wage to $8.25on January 1, 2014 then further increase the minimum wage, on and after January 1, 2015, to not less than $8.75 per hour, and on and after January 1, 2016, to not less than $9.25 per hour.  The bill also would index the minimum wage to the Consumer Price Index for Inflation, creating an annual trigger for wage increases. 

 
Governor Brown Concerned About Progress of CEQA Reform

In a news article recently Governor Brown stated that meaningful changes to CEQA was unlikely this year.  As he toured China, viewing the many large infrastructure projects he discussed how difficult many of these projects are to build in California.  When asked by reporters about his efforts to reform the law the Governor was very concerned that the current efforts are stalled.

 

In fact, some efforts to expand CEQA are moving forward.  SB 617 (Evans) would expand the definitions of "environment" and "significant effect on the environment" and would require the lead agency to include in the EIR a detailed statement on any significant effects that may result from locating development near, or attracting people to, existing or reasonably foreseeable natural hazards or adverse environmental conditions. Some are concerned that this would spur another round of litigation to establish the parameters of these expanded terms and provide additional opportunities for opponents of a project to force delay.   
 
Bay Delta Conservation Plans Moving Froward

There were several news articles that discussed the future operations of a delta water conveyance system.  Southern California water agencies have been quietly negotiating with state officials to take a major role in designating and building the giant Sacramento River diversion tunnels at the core of Governor Brown's water policy for the state, according to documents that the Sacramento Bee has obtained. The tunnels are the centerpiece of the Bay Delta Conservation Plan and the State Department of Water Resources officials expect to approve the project by the end of the year.

 

In another related article, Governor Jerry Brown is asking federal officials to expedite review of his Bay Delta Conservation Plan. He sent a letter to the U.S. secretaries of Interior and Commerce urging them that they release their environmental review and file a decision on whether they can proceed with the project by this summer. The goal is to ensure their process meshes with Brown's proposed timing for completion of a state-level environmental impact report and associated planning documents.

 

Budget Picture is Brighter, Governor Urges Caution


Despite fairly strong income tax returns and a projection that the state will finish April billions of dollars ahead of estimates, Governor Brown is urging budget restraint. He dismissed a reporter's suggestion that he must be pretty happy about the projections by suggesting that any coverage may be tied up by Proposition 98, which is California's school funding guarantee. The LAO estimated that the month of April will end with about $4 billion above the administration's estimates and that by the end of the fiscal year the revenue may be a few billion dollars above estimate. Like the governor, the LAO was restrained in its assessment of the significance of any additional revenue.
 
New Trucking Regulations Will Increase Costs for Ag Shippers

By JOHN O'CONNELL

Capital Press

Agricultural shippers say they're bracing for federal trucking safety regulations that take effect July 1 and threaten to make transporting freight more costly and time-consuming.

The rule changes will reduce a long-haul driver's seven-day work week from 82 to 70 hours, counting waiting time while cargo is loaded and unloaded.

Drivers will need to take a 30-minute break for every eight hours on the road. Furthermore, regulations allowing drivers to restart their work weeks after 34 hours of consecutive time off will soon mandate the breaks include at least two nights of rest from 1 to 5 a.m., when officials reason the body needs sleep the most. The 34-hour restart, now available at a driver's discretion, will be allowed only once every seven days.

The Federal Motor Carrier Safety Administration announced the final rule specifying the forthcoming changes in December 2011, in response to litigation by safety activists. Fines for each infraction may be up to $11,000 for trucking companies and $2,750 for drivers.

In response to the new regulations, Potandon Produce, a fresh packer of potatoes in Idaho Falls, has a team studying ways to load trucks more efficiently, said Jamey Higham, vice president of sales.

Farm Machinery Theft 

 

The theft of farm machinery causes huge personal and financial losses for farmers. Tractors, plows, augers, generators, welders, pick-ups or other trucks, and things like quad runners are attractive targets for thieves. The theft of machinery parts, such as lights, batteries, and radios from tractors is a problem for many farmers.

 

The costs are high for farmers when replacing stolen equipment. If the theft occurs during critical periods of planting and harvesting, loss of productivity can compound the total financial loss.

 

What you can do

There are some things you can do to reduce the opportunity for theft. Although several of the suggestions seem pretty drastic and time consuming, they are worth while if a theft is prevented. You are the best judge of what is worth spending your time and trouble on in your particular situation.

 

Mike Taylor
925-977-4104
mtaylor@iwins.com
CA License Number 0B01094
 
Boxer to Hold Oversight Hearing on West, Texas Chemical Plant Explosion

 

Oversight hearings into what the federal government knew, what it didn't know and how it responded to the April 17 explosion at a West, Texas, fertilizer/chemical plant that killed 15 and injured hundreds will be held by the Senate Environment & Public Works Committee, announced committee Chair Barbara Boxer (D, CA) this week.  At the same time, Rep. Henry Waxman (D, CA) and Rep. Bennie Thompson (D, MS) sent a letter to President Obama demanding the creation of a "blue ribbon commission" to investigate the West, Texas, explosion.  Boxer has written to both the EPA and the U.S. Chemical Safety Board asking pointed questions, including wanting to know the extent of EPA's investigation of the explosion and any timelines; because the plant stored "large amounts" of ammonium nitrate why ammonium nitrate is not a covered chemical under EPA's Risk Management Program; what types of chemicals EPA could add to the RMP list; a list of all chemicals facilities are required to report to local officials but not to EPA; which facilities are regulated under Sec. 112(r) of the Clean Air Act, where they're located and how often they're inspected; who at EPA is in charge of these facilities; any and all fines levied against the West facility for failure to comply with safety standards, as well as general information regarding how EPA works with local agencies and how this system can be improved.  No date has been set for the oversight hearings.

 

 
House Committee Takes Comments on RFS Impact on Agriculture, Food Production

Just about all of animal agriculture, the ethanol industry and the petroleum industry sent comments this week  to the House Energy & Commerce Committee, responding to a white paper prepared and released by the committee on the ethanol Renewable Fuel Standard (RFS). The committee asked stakeholders to submit comments on the paper as well as provide answers to several questions. Growth Energy praised the RFS, calling it one of "the most successful energy policies in the last 40 years," saying it has had "a tremendous positive impact on the agriculture sector and on consumer prices at the pump." The National Pork Producers Council (NPPC) told the committee the RFS "failed to provide any flexibility to account for changes in market conditions that can greatly affect" the ag sector, and reminded the committee EPA refused to grant a waiver on the ethanol RFS in 2012.  NPPC called for reform of the RFS to "ensure a fair and equitable distribution of natural marketplace risks among all end users of corn and other grains."  The Renewable Fuels Assn. (RFA) said the RFS is part of a formula to "increase demand for agricultural products and enhance farm income," calling it the single "most important value-added market for...grain farmers, simulating investment...and enhancing economic opportunities."

 

Chemical Industry Weighs in on Anti-Competition Action Against Rails

A class action antitrust case brought by shippers against the Union Pacific, BSNF, Norfolk Southern and CSX elicited a strong statement of support this week from the American Chemistry Council (ACC).  The council said the suit, alleging fuel surcharges imposed on shippers from 2003 to 2008 represent surcharge "price fixing," "causing members of the Council and other shippers to pay excessive charges for freight rail shipments."  Because railroad mergers have led to far less competition, 75% of all freight rail stations are captive to a single major railroad, ACC said.  "This extraordinary market power has enabled railroads to charge shippers higher rates and extra fees, including fuel surcharges."  ACC said a 2006 study it commissioned showed fuel surcharges imposed by rails exceeded by $6.4 billion the actual fuel costs that the surcharges were supposed to recover, and cited a survey released in 2013 that shows chemical shippers are continuing to pay the fuel surcharges.             

 

Court Dumps Enviro Suit Against EPA


A U.S. District Court suit brought against EPA by two environmental groups alleging the registration of more than 380 chemicals negatively impacted 214 species in 49 states was dismissed this week by the court.  EPA, along with Crop Life America (CLA) filed for the dismissal of the so-called "mega suit" claiming the two enviro groups complaint lacked specific information on what the agency had or had not done relative to the chemicals.  Further, the two said the suit was filed in the wrong court and had missed the statutory deadline for filing a chemical registration challenge under RCRA. The judge told the plaintiffs -- the Pesticide Action Network and the Center for Biological Diversity -- they have 30 days to amend their complaint or appeal the judge's ruling within 60 days.  Several crop protection and chemical industry groups were granted intervenor status in the suit, which if not dismissed, would have drastically altered crop production and productivity in  the U.S.

 
USDA and Other Administration Changes

Michael Scuse, former USDA undersecretary for farm and foreign agriculture services, has been named acting deputy secretary of agriculture replacing Kathleen Merrigan, who left the department this week.  Scuse is former Delaware secretary of agriculture.  Darci Vetter, deputy undersecretary under Scuse, will become acting undersecretary and Suzanne Heinen, administrator of Foreign Agriculture Service (FAS), will move up to Vetter's old job.  Phil Karsting, former staff director for retired Sen. Herb Kohl (D, WI), becomes head of FAS.  Doug O'Brien will serve as acting undersecretary for rural development, replacing Dallas Tonsager who retired this week, and Ann Mills will become acting undersecretary for natural resources and environment.  Over at EPA, Shaun McGrath has been named regional administrator for EPA Region 8 in Denver. McGrath was former director for the American Solar Energy Society in Boulder, CO, and began his career in Kansas working in the state Department of Commerce European office.  He's the former mayor of Boulder, and spent 10 years working with the Western Governors' Assn.  Charlotte, NC, Mayor Anthony Foxx has been nominated to replace Ray LaHood as secretary of transportation.  Foxx, a former Department of Justice U.S. attorney, has a strong national reputation for intermodal investment and development on behalf of Charlotte. 

 
Run or Walk: Gains in Heart Health Similar


Walking and running have about the same health benefits, researchers found - you just have to walk more to get them.

Spending the same amount of energy yielded similar reductions in the risks of high blood pressure, high cholesterol, diabetes, and coronary heart disease, according to Paul Williams, PhD, of Lawrence Berkeley National Laboratory in Berkeley, Calif., and Paul Thompson, MD, of Hartford Hospital in Hartford, Conn.

But analysis of two large cohorts suggested that runners usually expend about twice as much energy as walkers and therefore reap greater health benefits, Williams and Thompson reported online in 

Arteriosclerosis, Thrombosis and Vascular Biology

."The more the runners ran and the walkers walked, the better off they were in health benefits," Williams said in a statement. "If the amount of energy expended was the same between the two groups, then the health benefits were comparable."