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Conveyor Currents June 21, 2013
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| Upcoming Dates |
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
2015
April 22-25, 2015 CGFA Annual Convention - The Monterey Plaza Hotel on Cannery Row.
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| Quick Links |
California Dept. of Food & Ag
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| HOS Move Forward Despite Critics |
The Department of Transportation this week said it is on track to implement stricter hours-of-service (HOS) rules for commercial truckers next month despite House calls to delay the rulemaking until the reauthorization of federal highway programs is completed.
The Federal Motor Carrier Safety Administration (FMCSA) told a House subcommittee hearing this week it will start enforcing the tougher HOS rules July 1, even though a field study of the so-called "34-hour restart" provisions mandated as part of last year's congressional extension of current programs won't be completed. The enforcement date is also ahead of a court case brought by the American Trucking Assn. (ATA) and industry groups seeking to delay the rules.
The rules mandate a 30-minute break every eight hours and limits the use of the 34-hour restart to once a week. The restart allows drivers to start calculating new HOS after 34 hours of continuous rest. The rules are criticized by several different industries as a one-size-fits-all approach and neglects to take into account special circumstances. Safety groups argue the new rules don't go far enough to increase highway safety.
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| House Kills Farm Bill; Next Steps Under Discussion | |
In a dramatic and historic defeat for House Republican leadership and Agriculture Committee Chair Frank Lucas (R, OK), the House this week voted 195-234 to reject the 2013 five-year Farm Bill. Sixty-two Republicans joined over 170 Democrats in defeating the bill, while 24 Democrats crossed the aisle and joined 171 GOPers voting for the omnibus farm package.
Within minutes of the lopsided defeat - an outcome no ag lobbyist can remember - House Majority Leader Eric Cantor (R, VA) and House Minority Leader Steny Hoyer (D, MD) were on the House floor engaged in an exchange that can only be described as the "blame game." Hoyer said "you turned a bipartisan bill into a partisan bill," adding the Farm Bill defeat reflects poor leadership by House Speaker John Boehner (R, OH) and Cantor, both of whom had spoken favorably of the bill prior to the vote. Cantor, and later a Boehner spokesperson, slammed Hoyer for not delivering the Democrat votes promised; Hoyer responded, "It failed because 62 of your members voted against it." House Minority Leader Nancy Pelosi (D, CA) said the GOP "sowed the seeds of its own destruction." These finger pointing exercises were followed by a series of one-minute floor statements by members from both sides of the aisle, again each blaming the opposing party for the Farm Bill's defeat.
Secretary of Agriculture Tom Vilsack, representing a White House which threatened to veto the Farm Bill over proposed food stamp cuts, joined in, saying: "The failure by the House leadership, for the second year in a row, to reach consensus on a Food, Farm and Jobs Bill is a tremendous disappointment for all Americans. Twice now, the U.S. Senate has done its job and passed balanced, comprehensive legislation with overwhelming bipartisan support. Unfortunately, the House version of this bill would have unfairly denied food assistance for millions of struggling families and their children, while failing to achieve needed reforms or critical investments to continue economic growth in rural America. As a result, the House was unable to achieve bipartisan consensus."
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| Senate Immigration Reform Hangs on Border Security Amendment | |
As the Senate continues to work through floor debate on its comprehensive immigration reform bill, all eyes are focused on whether a new plan to increase border security can lure back Republican supporters who began defecting earlier in the week because they felt the bill was too soft on securing the borders.
In related action, the House Judiciary Committee this week approved its version of ag guest worker provisions, calling it "one step closer to providing farmers with a workable and reliable guest worker program." The United Farm Workers, which negotiated with ag employers the Senate guest worker language, said the House language creates "a 'servants-only' guest worker program." The House language says only people in the country illegally can apply for legal status as a guest worker for two years or until a new guest worker visa program goes into effect. Only illegal immigrants employed in agriculture are eligible for the new status as temporary guest workers, and they would have to leave the country for three months after they apply before they could reenter on a visa or as a guest worker.
In the Senate, an amendment offered by Sen. John Cornyn (R, TX), which drew sharp criticism from Democrats, was tabled earlier this week as Senators turned their attention to a new plan, one championed by Sens. Bob Corker (R, TN) and John Hoeven (R, ND), which would predicate the path to citizenship for 11 million undocumented workers based on how well the Department of Homeland Security (DHS) increases border security.
The new plan would have to be implemented before the path to citizenship portions of the law go into effect. The Corker-Hoeven amendment would double the number of border agents and spend $3.2 billion on cameras, helicopters and/or drones to "seal" the southern U.S. border, while holding DHS accountable for a plan to increase border security by putting actions and benchmarks into the law. It also strengthens electronic employment verification for companies - which would face stiff new penalties for hiring illegal immigrants - and the use of biometric surveillance at air, land and seaports.
The amendment has drawn support from more than 15 GOP Senators, including the four who are members of the Gang of Eight who drafted the original bill. Key Republican Sen. Marco Rubio (R, Fl) called the Corker-Hoeven amendment "our chance to fix the bill."
In a related immigration development, the Congressional Budget Office (CBO) this week estimated the Senate bill would reduce the federal deficit by $197 billion over 10 years, further bolstering its chances with the GOP side of the aisle.
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| Oregon GE Wheat Incident "Isolated" |
While USDA now says its survey and testing of an Oregon field where unapproved genetically enhanced (GE) wheat was found shows the presence of "only a small number of volunteer plants" and the incident is deemed to be isolated, wheat growers are calling on the department to release as many details of its investigation as possible to calm overseas buyers.
"USDA has neither found nor been informed of anything that would indicate that this incident amounts to more than a single isolated incident in a single field on a single farm," USDA said late last week, and further investigation shows no indication of the presence of the GE wheat in commerce.
U.S. wheat farmers, primarily through the National Association of Wheat Growers (NAWG), are actively working with export customers, particularly Japan, Korea and Taiwan who curtailed or halted purchases. NAWG said USDA has agreed to share any information it can with foreign customers without compromising its investigation, which is expected to continue for some time.
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| Senators Introduce RFS Repeal Bill |
A bill to repeal the Renewable Fuel Standard (RFS) was introduced this week by Sens. John Barrasso (R, WY), Mark Pryor (D, AR) and Pat Toomey (R, PA). The bill would repeal the statutory authority for the RFS as well as all regulations implementing the system. The bill mirrors similar legislation in the House introduced last month by Rep. Bob Goodlatte (R, VA). Barrasso and Toomey tried during Senate Farm Bill floor consideration to amend the omnibus farm program bill with identical language to their bill, but failed to get a vote.
While Barrasso, Toomey and Pryor were unveiling their bill, 26 national and state feed, livestock, poultry, and meat processing organizations delivered a letter to leadership on Capitol Hill calling for House and Senate members to cosponsor the repeal legislation.
The three Senators at a press conference in Washington, DC, attended by several of the nation's largest livestock and poultry producer groups, said the RFS is "fundamentally broken and beyond repair. Instead of delivering environmental benefits, it's driven up food and fuel costs for American families. This flawed program will also inevitably lead to lawsuits against American manufacturers. When Congress enacts bad policy, the right response is to scrap it and start over."
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Safety Corner:
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What are the Symptoms of Heat Stroke?
The symptoms of heat stroke often appear quite suddenly and are characterized by collapse, delirium or coma. Certain characteristics include diminished sweating; dry, hot skin and flushed face; headaches, dizziness and irritability, nausea and vomiting; an extra high body temperature ranging from 105 to 110 degrees; and an extremely rapid pulse.
Heat Strokes and Heat Exhaustion - English
Mike Taylor, CPCU
Vice President
InterWest Insurance Services, Inc.
100 Pringle Avenue, North Tower, Suite 550
Walnut Creek, CA 94596
(925) 977-4104 Office
(800) 464-0077 Toll Free
(925) 977-4150 Fax
(510) 206-5505 Mobile
CA Lic # 0B01094
www.iwins.com
mtaylor@iwins.com

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| Smithfield-Shuanghui Deal Needs Closer Scrutiny: Senators |
In a letter to Secretary of Treasury Jack Lew this week, Senate Agriculture Committee Chair Debbie Stabenow (D, MI) and ranking member Sen. Thad Cochran (R, MS) asked that both USDA and FDA be part of any review of the proposed purchase by Shuanghui International of Smithfield Foods.
In a related development, Starboard Value LP, a 5.7% shareholder in Smithfield, objected to the sale of the company, and urged Smithfield management to examine breaking up the company and selling off various parts separately rather than going forward with the $7.1 billion Shuanghui deal. Starboard contends the parts are worth far more than the whole on the open market.
The next step for the Shuanghui-Smithfield deal is review by the Committee on Foreign Investment in the U.S. (CFIUS), a nine-member panel chaired by Lew on which sit eight agency and department heads. Lew can add additional members as the situation under review requires.
The Stabenow-Cochran letter asks whether sales of U.S. companies to foreign firms are "adequately reviewed" for national security, food safety, trends in foreign ownership and safeguards to U.S. intellectual property.
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