President Peter Hanlon and the Board of Directors will soon be making committee appointments for the 2013-2014 membership year.

It is within the committees/study groups that industry problems are identified, analyzed, discussed--and where solutions and courses of action are born.  Here the individual can have his/her voice heard and contribute effectively to the process of industry self determination.  Committees and study groups also play a major role in the development of CGFA policy and the planning and scheduling of CGFA events.  The final effectiveness of this system depends on your active involvement.  Finally, study group participation enables you to receive special information mailings on areas of concern related to the study group classification.  Our government Relations Committee is devoted to maintaining liaison with state legislators and actively lobbying legislation.

Although all requests for service cannot be accommodated most members do get their first choice and practically all members get at least their second choice.  BECOME INVOLVED - indicate your first and second (There is no third choice) choices of committee/study group assignment below and return this form as soon as possible, but no later than July 1, 2013.

by:  Dennis Albiani, Legislative Advocate 

Republican Vidak Picks Up Key Central Valley Senate Seat

Republican farmer Andy Vidak defeated democratic opponent Leticia Perez 51.9% to 41.7% in the heavily democratic San Joaquin Valley district. It was a low turnout election in former Senator Michael Rubio's district. Vidak's victory shaves the democrats' margin in the Senate which will now be 28-12 with Vidak's victory.  Because this was a special election, this Senate seat will be up for vote in the new boundaries in 2014 and is expected to be a rematch between Vidak and Perez.  The new district has almost a 4% more narrow gap between Democrats and Republicans.  To further impact the Senate's supermajority,  Senator Curren Price is due to resign to take a seat on the L.A. City Council meaning the margin would go to 27-12 with another special election to be held to decide Price's seat once he officially resigns.   Below is a link to the official results from the Secretary of State's office.   http://vote.sos.ca.gov/returns/state-senate/district/16/ 

Special Election Fills AD 80

The election to decide Senator Ben Hueso's former Assembly seat was a no contest with Democrat community organizer Lorena Gonzales capturing 72.3% of the vote compared to fellow Democrat Steve Castaneda's 27.7%. http://vote.sos.ca.gov/returns/state-assembly/district/80/ 

Appropriations Deadline Looms

Today, Friday May 24, is the deadline for fiscal committees to meet and pass bills.  Both the Assembly and Senate Appropriations Committees held their "Suspense" hearing on Thursday, May 23.  Next Friday, May 31, is the deadline for bills to pass out of their house of origin.  The association is watching and reporting on key ag labor bills, CEQA bills, air quality control issues and general ag legislation.  In yesterday's Senate Appropriations Committee, most of the bills aimed at creating new taxes on Californians were held by the Senate Appropriations Committee, making it extremely unlikely that taxes on cigarettes, soda, strip clubs, plastic bags or oil extraction will become law this year.   The committee, which reviews all bills with a cost implication for the state, considered 257 bills today as it went through the so-called "suspense file." Members allowed 185 of those to advance to the Senate Floor.

Sen. Debbie Stabenow (D, MI), chair of the Senate Agriculture Committee, repeated history this week as she began shepherding her panel's second five-year Farm Bill in 12 months through Senate floor action. The White House publicly endorsed the bill, legislation that carries a 10-year $955-billion price tag, and is estimated to save about $18 billion over the same period.

As of late May 22, 194 amendments had been filed for possible consideration - many having nothing to do with the Farm Bill or USDA - and as of late May 23, only about a dozen had been resolved. While Stabenow had hoped to finish the bill this week, the Senate will resume consideration of the bill on Monday, June 3, when it returns from Memorial Day recess.  Stabenow and her ranking member Sen. Thad Cochran (R, MS) - who was relatively quiet through the floor battles - both expressed optimism the Farm Bill will be completed early the week of June 3 and the full Senate will approve the final package.

Senate Majority Leader Harry Reid (D, NV) told the full Senate he expected Stabenow and committee ranking member Sen. Thad Cochran (R, MS) to create a "finite list of amendments" leading to final passage of the bill.  This references standard floor procedure where noncontroversial and minor amendments are accepted by both sides for inclusion in the final "substitute" bill to be approved, while a short list of amendments for debate and votes are allowed, most requiring 60 votes for passage.  Reid indicated the final vote on the Senate's Farm Bill will also be the week of June 3.    

Several amendments seeking to modify the federal crop insurance program were offered, ranging from capping insurance premium subsidies at $50,000 per producer to requiring USDA to "drill down" on industry data to better detect and eliminate system fraud, waste and abuse. Stabenow hopes most will be resolved without debate or votes as part of a package of accepted crop insurance changes.  

Stabenow vigorously opposed an amendment accepted on the 2012 bill and offered again this year by Sens. Dick Durbin (D, IL) and Tom Coburn (R, OK) to cut federal premium subsidies by 15% on policies held by farmer's with incomes of $750,000 or more, but she was unsuccessful and the amendment was approved.  Stabenow warned the chamber that to approve the amendment would raise insurance premiums on affected farmers by 40%, reduce the acreage required to comply with conservation programs, and place in jeopardy a finely balanced agreement among producer groups, conservation groups and environmentalists to tie crop insurance to conservation compliance.  Durbin prevailed by invoking deficit reduction and spending cuts, echoed by Coburn. Neither the premium provision nor the compliance agreement is in the House bill.

Sen. Kirsten Gillibrand (D, NY) unsuccessfully sought to reinstate about $4 billion in committee cuts to the food stamp program, while others, including Sen. Pat Roberts (R, KS) were unsuccessful in "modifying" the food stamp part of the bill to further cut federal spending. The House bill cuts the Supplemental Nutrition Assistance Program (SNAP) by $20 billion and reconciling the two approaches will be at the heart of the Farm Bill conference committee.

An amendment by Sen. Bernie Sanders (I, VT) to give states authority to set up labeling schemes for foods containing genetically modified (GM) ingredients failed 27-71.  A nearly identical amendment failed on the Senate's consideration of its 2012 Farm Bill by a similar margin.  Sen. Jeff Merkely (D, OR) tried to bring up an amendment to block what he called "the Monsanto Protection Act," language enacted as part of the 2013 appropriations continuing resolution in March allowing farmers to plant USDA-approved seed even if a court had ruled the seed in question was improperly approved.  He was blocked by Sen. Roy Blunt (R, MO), who said the provision does not protect seed companies, but "protects farm families who have planted a crop legal to plant." If a subsequent federal court order interferes, the existing law provides a way for USDA to make the crop legal to sell.

Among amendments not yet considered is a package of technical corrections to the crop insurance program, a proposal by Sen. Barbara Boxer (D, CA) to require USDA and FDA to study GM labeling laws overseas and provide to Congress a report on how such a labeling scheme would affect U.S. industry; a Sen. Dianne Feinstein (D, CA) amendment to attach the United Egg Producers (UEP)-Humane Society of the U.S. (HSUS) "enriched environment" for egg laying hens, and an amendment by Sen. Ted Cruz (R, TX) to make all federally authorized check-off programs voluntary.

While House Agriculture Committee Chair Frank Lucas (R, OK) would not confirm the timing, sources close to development of the House's five-year Farm Bill report House leadership has told Lucas his bill will be on the floor the week of June 17.  Lucas has confirmed his goal is to have the bill completed and passed by the House before the July 4 recess.

The Congressional Budget Office (CBO) released its formal analysis of the House bill this week, estimating direct spending will total $940 billion over the next decade and the bill will save just over $40 billion during that period. That 10-year total reflects the bill's authorization of expiring programs through 2018 and an extension of those authorizations through 2023, CBO said.

CGFA is continually tracking the progress of FSMA. The development of most rules pertaining to animal feed has been slower than expected. The primary focus of FDA has been on preventive controls for human food and produce safety. However, the implementation of FSMA is proceeding, just a slower rate than originally expected. There are a few items of note for CGFA members:

1. At this point, all facilities should have re-registered with FDA prior to now. If you have not completed that step yet, please let CGFA know and we can help guide you how to get that completed immediately.
2. CGFA is developing a sample facility plan that will comply with FSMA. However, due to the lack of published regulations thus far, this has been somewhat on hold pending the draft regulations. We will at least provide a guidance document on items and issues that are undisputed that will be in the final regulations.
3. FDA has issued final rules for administrative detention of human and animal food. The link to the industry guidance document is:

If you have any questions,  please call Kevin Clutter at (559) 917-5107.

The 2013 California Animal Nutrition Conference (CANC) was held May 15 & 16 at the Radisson Hotel & Conference Center in Fresno, California.

CANC is one of the largest animal nutrition conferences in the US and attracts over 300 participants from both industry and academia.  The two-day program featured twenty speakers from across the country.  Wednesday's Technical Symposium was sponsored by Novus International Inc.  The Keynote speaker was Rob Aukerman, President, US Operations, Elanco Animal Health - "Mapping the Food Gap:  The Pathway to 2050".  The Wednesday evening social hour and Barbeque at Fresno State was once again a huge success.

The Platinum Sponsorship initiated last year, represents a $500 scholarship award to a worthy poster presenter as well as a $500 sponsorship for the CANC conference.  This year's Platinum Sponsors included:   A.L. Gilbert Company, Arm & Hammer Animal Nutrition, Associated Feed, DeGroot Dairy Consulting, LLC, DuPont Pioneer, Elanco Animal Health, Foster Farms, Kemin Industries, Mycogen Seeds, Prince Agri Products, Inc., Western Milling, LLC and Zinpro Performance Minerals.  This year's $1500 Scholarship winner is Gabriela Acetoze from the University of California, Davis.  Gabriela presented her paper to the CANC Conference on Wednesday afternoon.

This year's poster presentation winners are as follows:

1st Place - $1250 - Emma Lucille Wils-Plotz, University of California, Davis; 2^nd Place - $1000 - Clayton Neumeier, University of California, Davis; 3^rd Place - $750 - Rachel Kurzbard, University of California, Davis.  The following students received $500 scholarships for participating in the poster competition: Corey Carpenter, California State University, Chico; Grace Cun, University of California, Davis; Alexandria Glover, University of California, Davis; Michelle Moreno, California Polytechnic State University, San Luis Obispo; Kayla Susmilch, California Polytechnic State University, San Luis Obispo; Nadia Swanepoel, University of California, Davis; Yolanda Trillo Dono, University of California, Davis; Ashley Van Buren, California State University, Chico; and Samantha Werth, University of California, Davis.   Congratulations to all the poster presenters and a huge thank you to the Platinum Sponsors for supporting this important event at CANC.  Please see attached picture of the CANC poster presenters.

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Congratulations to this year's Meritorious Service Award winner Ann Quinn.  Ann is with the California Grain & Feed Association and has been the CANC Coordinator since 2001.

Thank you to the many CANC Sponsors and to the CANC Steering Committee for their support and dedication to ensuring the success of this year's program. 

After three weeks and 301 amendments offered during Senate Judiciary Committee markup, the panel this week approved the bipartisan immigration reform bill on a 13-5 vote.  The panel action drew the endorsement of the Agriculture Workforce Coalition (AWC), the United Farm Workers (UFW), the American Farm Bureau Federation (AFBF) and Western Growers.  

Senate Majority Leader Harry Reid (D, NV) told the full Senate May 23, he will meet with Judiciary Committee Chair Sen. Patrick Leahy (D, VT) to determine when the full Senate will take up the bill, but indicated it will likely be next up after the Senate finishes the Farm Bill. The Associated Press said the bill faces an "epic showdown" on the Senate floor.  In 2007, the last time the Senate tried to pass an immigration reform bill, debate raged for days, only for the bill to fail when supporting groups defected.  

Critical to moving the bill were agreements with Sen. Orrin Hatch (R, UT), ranking committee member, to approve a Hatch amendment to increase the number of visas for high tech workers sought by U.S. employers.  The committee also accepted a version of a failed Hatch amendment to create a biometric exit system at the nation's 30 largest airports to track visa holders.  However, while he voted to move the bill to the floor, Hatch said he's not yet decided if he'll vote to approve the final package during floor debate.  Several amendments were defeated or withdrawn from Senate committee consideration including one by Leahy to recognize same sex couples for immigration protection - Leahy withdrew the amendment "with a heavy heart" after committee members convinced him including it would scuttle the entire package - and another by Sen. Ted Cruz (R, TX) who sought to strip the bill's path to citizenship language. Cruz lost 5-13.   

Prospects for House acceptance of the Senate bill disappeared this week when House Speaker John Boehner (R, OH) said House will not simply take up the Senate bill, but will fashion its own legislation, adding "there are a number of ways in which the House will approach the issue differently." Boehner refused to give a timeline on House action.

For agriculture guest workers, the Senate bill reflects an agreement between the AWC and the UFW on how many workers will be allowed into the U.S., along with pay rates for those workers.  It creates a "Blue Card" program for legal status and eventual citizenship for about half of the estimated 10-12 million undocumented workers in the U.S., and creates two new visa programs allowing ag employers needing both seasonal and full-time employees a stable workforce when U.S. workers can't or won't take jobs.   

A bipartisan House group said this week its efforts remain on track, announcing a tentative agreement on how the House will approach immigration reform from a health care perspective. Nearly derailed over criticism over whether illegal immigrants waiting to be citizens will qualify for federal health care benefits, the group announced undocumented workers will not qualify for Medicare or taxpayer subsidies to join health insurance exchanges, but will have to pay their own medical bills through personal insurance or face deportation. Both Boehner and Minority Leader Nancy Pelosi (D, CA) approved the agreement.  

Meanwhile, Boehner asked separate House committees to work on portions of overall immigration reform.  The Judiciary Committee held hearings and is preparing to vote on a bill to reform the ag guest worker program, and a separate bill on enhancing the E-Verify electronic employment verification system; last week, the House Homeland Security Committee approved a bill to enhance border security.

A bipartisan agreement among 16 Senators on how to reform and reauthorize the Toxic Substances Control Act (TSCA) was announced this week by Sens. Frank Lautenberg (D, NJ) and ranking member on the Environment & Public Works Committee Sen. David Vitter (R, LA).  TSCA is the law used by EPA to prohibit toxic substances in commerce and to bar unsafe chemicals from the marketplace.

The agreement was hailed by the American Chemistry Council, the Environmental Defense Fund (EDF) and the Sierra Club, but other environmentalists, including the Environmental Working Group (EWG), fear EPA's authority in some critical areas of chemical safety evaluation is weakened.  "Deeply disappointed" is how the Environmental Alliance and the Health Alliance for Chemical Policy Reform described their reaction to the agreement.

Calling their agreement "groundbreaking," the two Senators said their pact requires safety assessments on all 84,000 active chemicals, prioritized based on the risk a chemical poses to human health and the environment.  Currently, the agency can only order a safety test after evidence is presented showing the chemical is dangerous, and only about 200 have undergone agency-ordered safety testing.  Under the agreement, EPA would have several options if a chemical is unsafe, from requiring warning labels to phasing out or banning the chemical altogether.

Lautenberg and Vitter tried to cut a deal last year, but failed. The New Jersey Senator then introduced his own TSCA reform bill without Republican support, and while it passed committee, the full Senate never took it up.

Vitter, representing his state's major chemical industry presence, is critical to the success of any TSCA reform effort, and it's hoped his alliance with Lautenberg will push committee chair Sen. Barbara Boxer (D, CA) to prioritize action on the bill once it's introduced.  Vitter is a long-time critic of EPA over-regulation, but says his deal with Lautenberg "strikes the right balance" between consumer safety and industry innovation, and will provide greater transparency to the process. 

With ongoing criticism by committee leadership of the Commodity Futures Trading Commission (CFTC) handling of Dodd-Frank rulemaking, the House Agriculture Committee is set to begin CFTC reauthorization. In a related development, the National Grain & Feed Assn. (NGFA) told the Senate Agriculture Committee in a letter this week a key job in the reauthorization process must be increased customer protection.

During a House committee hearing this week to consider swaps and CFTC action to regulate, committee Chair Frank Lucas (R, OK) said the commission's rulemaking overall lacks "sequencing and coordination," and the reauthorization process will allow the full committee an opportunity to review CFTC operations and assess how its rulemakings affect end-users and the broad ag community.

Ranking member Rep. Collin Peterson (D, MN) was less critical, but nonetheless concerned, acknowledging the commission listened to some end-user complaints about Dodd-Frank rule writing, but also pointed out how vigorous opposition has been to commission regulation development. "It's unreal how much money has been poured into stopping these regulations," Peterson said. Peterson also warned the committee during the swaps hearing not to take its eye off the main panel goal - the 2013 Farm Bill.  "It's going to take us most of June and July...to get a Farm Bill done...I hope we're not distracted by CFTC reauthorization."  

In its letter to the Senate Agriculture Committee, NGFA reported many former customers of MF Global, the eighth largest bankruptcy in U.S. history, have not received full reimbursement of funds lost.  "We believe the primary focus of the reauthorization process must continue to be enhancing customer protections with the twin goals of preventing similar occurrences in the future and providing protection to customers in the event of another futures commission merchant (FCM) insolvency." NGFA said part of this enhanced protection could be the creation of insurance coverage, and a pilot program to test introducing an optional, segregated FCM account structure for customers.

Power tools can be very dangerous when used improperly. Cuts, punctures, electric shock, and burns are common consequences of accidents involving these tools. Always exercise caution when working with or around power tools.