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Conveyor Currents                                August 30, 2013
Upcoming Dates
               
2013
 
September 17, 2013  Feed Manufacturing Study Group Meeting at the DoubleTree in Modesto

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 

May 14-15, 2014 California Animal Nutrition Conference,  Radisson Hotel in Fresno, CA

 
2015
 
April 22-25, 2015   CGFA Annual Convention - The Monterey Plaza Hotel on Cannery Row.

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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
Governor Drops Prop 65 Reform
Efforts to Reform Unemployment Insurance Unravels
Green Chemistry Regulations Finalized
California High-Speed Rail Authority Has Major Setback
Judge Tentatively Sides with California in Cap-and-Trade Challenge
All Quiet on the Farm Bill Front
Comments Wanted by USDA on Federal Ag, Forestry Climate Change Report
Activist Groups Sue EPA over CAFO Data Collection
USDA Reports Upward Trend in On-Farm Income
Goodlatte Tells DHS of Concern over Immigrant Asylum Requests
Nearly 260 Groups Demand EPA Ban Atrazine
USDA Designates California Ag Counties for Drought Disaster Assistance
Aloha CGFA - Your Input Is Needed ......

 

Attention  Members;

 

I know it is early, but I am working on our 2014 Annual Convention - April 23-26 at the Sheraton Hotel in Maui.

 

In order to make sure we have enough rooms at the Sheraton Hotel in Maui I need to ask if everyone would please fill out this very brief survey?

 

Our convention dates fall just after Easter and I know the hotel will sell out so I am trying to make every effort to insure everyone has the room nights they need.


Thank you in advance for your cooperation!

 

CLICK HERE --  http://www.surveymonkey.com/s/NVFS3PF 

 

Mahalo!

 

 

Governor Drops Prop 65 Reform

 

In an email to stakeholders involved in Prop 65 reform, administration officials announced not moving forward this year with Prop 65 reform, citing inability for consensus around the Governor's proposed amendments to the 27 year old law.   The officials thanked Senator Lieu and Asm Gatto for their willingness to engage and all the stakeholders for their work, but said they did not believe there was adequate agreement to move this proposal forward. 

 

Proposition 65 continues to be a challenge for food producers and processors.  Several suits have been filed against food companies concerning compounds such as sulfur dioxide, used in dried fruit and as a preservative in natural foods, methanol which can be found in juice drinks, and other naturally occurring materials often found in the soil such as boron and lead.  The Governor's stated desire was to reduce litigation exposure and abuse and to provide more clarity in warnings.  The effort stalled this year due to a lack of consensus surrounding the issues.    

 
Efforts to Reform Unemployment Insurance Unravels

Efforts to negotiate a reform package for Unemployment Insurance (UI) with the Administration and labor representatives have collapsed. The UI trust fund is currently insolvent and has been borrowing from the federal government over $10 billion dollars during this most recent economic downturn.  Assessments on employers repay the fund over time.  Stakeholders were meeting to explore various reform alternatives to allow the trust fund to be paid back; employers were attempting to include reforms in the program to offset some of the increased costs being demanded.   In the end, the Administration refused to consider bonding the UI trust fund debt to the federal government, leaving an employer tax-only solution. 

 

For the coming year, the FUTA tax credit reduction paid by employers will increase to $71 per employee.  On November 30, the federal government will assess California roughly $430 million in interest on the unpaid debt.  Last year, EDD paid that interest by borrowing from the Disability Insurance trust fund, and have indicated they will do that again this year.    

 

Green Chemistry Regulations Finalized

 

On August 28, the Office of Administrative Law approved the Department of Toxic Substances Control's landmark Safer Consumer Products regulations, which take effect Oct. 1, 2013.  The regulations require manufacturers to seek alternative safer chemical ingredients in widely used products. This is one of the first programs of its kind in the world. This concludes a regulatory process that started with legislation signed in 2008, and signals the beginning of the next steps: Publishing an informational list of Candidate Chemicals, preparing guidance for conducting Alternatives Analyses and, by April 1, 2014, a list of proposed Priority Products.

 

It is important to note that California's Green Chemistry law does not impact pesticides or any material regulated under FIFRA. Food is also expressly exempted.  However, it may impact other materials and chemical compounds used in the manufacture of these products. 

 
California High-Speed Rail Authority Has Major Setback

 

The California High-Speed Rail Authority ("Authority") had a major setback on Friday when Sacramento County Superior Court Judge Michael Kenny ruled that the Authority had "abused its discretion by approving a funding plan that did not comply with the requirements of [Proposition 1A]" and failed to identify "sources of funds that were more than merely theoretically possible."    

 

Proposition 1A, which voters passed in 2008, requires the Authority to identify the funding for the entire first segment of the high-speed rail project and clear all environmental review prior to commencing construction.  Last summer, lawmakers authorized selling $2.6 billion in state bonds for construction of the first segment, the 130 miles from Madera to Fresno, and allowed the state to tap $3.3 billion in federal matching funds.  During the hearing, the Authority argued that it had complied with Proposition 1A because the requirements only apply to the construction of the first 130-mile segment.

 

However, Judge Kenny ruled that the plain language of Proposition 1A indicates that financing and environmental clearances should be completed for the initial operating segment, the 290 miles from Merced to the San Fernando Valley, which is estimated to cost between $24 billion and $31 billion.  Furthermore, the Authority has only received environmental approval for the first 28-mile section of the first segment, which the judge held does not satisfy the requirement under Proposition 1A.

 

The decision by Judge Kenny was a result of a lawsuit filed in 2011 by Central Valley landowners and the Kings County Board of Supervisors.  The judge will hold a second hearing to determine the remedy and whether there shall be any penalties assessed against the Authority.  A date for the second hearing has not yet been set.

 http://www.jdsupra.com/legalnews/california-high-speed-rail-authority-vio-98014/ 

 
Judge Tentatively Sides with California in Cap-and-Trade Challenge

Sacramento County Superior Court Judge Timothy M. Frawley said in the ruling that Assembly Bill 32 gave the Air Resources Board discretion to decide whether to adopt a cap-and-trade program and design the method for distributing pollution allowances. The judge heard arguments Wednesday from attorneys for the conservative Pacific Legal Foundation and the California Chamber of Commerce, which filed similar lawsuits earlier this year and last fall as the carbon program was getting underway.
 
All Quiet on the Farm Bill Front

Recess rhetoric on the will-there, won't-there status of the 2013 Farm Bill eased off this week as members of Congress shifted deeper into the vacation portion of the August recess.  Concern is still focused on whether or not a reconciled, final Farm Bill can be accomplished before the September 30 end date of the current extension of the 2008 Farm Bill.  Most agree it's pretty obvious with only nine working days in September - and most of that time likely to be taken up dealing with spending issues - an extension of law is needed, and likely one that runs at least through the end of November.

 

The only new word on scheduling came out of North Dakota this week where House Majority Leader Eric Cantor (R, VA) was touring the state's oil shale/oil sand operations.  He confirmed House Speaker John Boehner (R, OH) will name Farm Bill conferees in September, but only after the House passes its stand-alone nutrition program reform package.  Likely seeking to cut $40 billion over 10 years out of federal food stamps, the House-passed nutrition bill will not get Senate action, but will be the roadmap for House negotiations over nutrition program cuts during Farm Bill conference.    

 

While the town hall statements reported this week continue the finger pointing over the lack of a 2013 omnibus Farm Bill, there was an uptick in the number of House and Senate members going to bat in the media for a strong crop insurance program, one that suffers no more cuts than it's sustained over the last six years. 

 
Comments Wanted by USDA on Federal Ag, Forestry Climate Change Report

 

A request for comments was published this week by USDA on its report "Science-Based Methods for Entity-Scale Quantification of Greenhouse Gas Sources and Sinks from Agriculture and Forestry Practices."  The report is the department's fulfillment of the White House's order that all parts of the federal government report on which regulated industries contribute to climate change and what steps can be taken to reduce that contribution.  Comments are due to USDA 45 days after August 28.

 

The report was created by 38 scientists "from across academia, USDA and the federal government who are experts in greenhouse gas (GHG) estimation on cropland, grazing land, livestock and forest management sectors.  The peer review was done by 29 other scientists, the department said.

 

USDA's Climate Change Program Office is seeking comments as part of its charge to "ensure USDA is a source of objective, analytical assessments of the effects of climate change and proposed response strategies."  

 

The report contains "consensus methods for quantifying entity-scale greenhouse gas (GHG) emissions and removals...USDA anticipates that the methods will be used by landowners and USDA to improve the management practices and identify actions to reduce GHG emissions and increase carbon sequestration. The guidelines and methods could also be used by farmers, ranchers and forest owners to facilitate their participation in voluntary state and regional GHG registries and programs."

 

The report is found at  

www.usda.gov/oce/climate_change/techguide/USDA_CCPO_GHG_draft_082213.pdf 

 

An index of USDA climate change activities is found at www.usda.gov/oce/climate_change/index.htm 

 
Activist Groups Sue EPA over CAFO Data Collection

 

EPA's decision to withdraw a proposed rule on data collection from an estimated 20,000 U.S. confined animal feeding operations (CAFOs) has drawn a lawsuit from a coalition of activist groups.  Participants in the lawsuit are the Center for Food Safety, the Environmental Integrity Project and the Iowa Citizens for Community Improvement, Food & Water Watch and the Humane Society of the U.S. (HSUS).    

 

The groups are represented in federal court by the Columbia University School of Law Environmental Law Clinic which filed the suit this week saying the agency's decision "lacks the rational basis required by the law."  The coalition says the information needed - "accurate and consistent information on (CAFO) size, location and waste management practices" - is no different from information required by the agency of power plants, waste treatment plants and large manufacturing facilities.

 

EPA withdrew the rule July 20, after strong opposition from national agriculture groups, abetted by congressional support.  The agency says it won't use Clean Water Act (CAA) authority to gather information directly from farmers and ranchers, but will obtain the information from state agencies and other federal entities.   

 

Food & Water Watch and other activist groups filed a Freedom of Information Act (FOIA) seeking all state and federal CAFO data on hand at EPA.  The release of that data, however, included several bits of personal information about individual farms and ranches, setting off a firestorm of outrage from ag groups.  EPA asked the groups to return the data, but Food & Water Watch refused.  After its analysis, the activist group said state information is inaccurate, inconsistent or nonexistent and says EPA's action is "arbitrary because alternative courses of action cannot provide the crucial information."

 
USDA Reports Upward Trend in On-Farm Income

 

On-farm income is on its way toward $120.6 billion in 2013, a $6.4-billion or 6% increase in net income, according to USDA predictions, but the total is down $7.6 billion from the department's February forecast.  The predicted total is still expected to be the second highest on record when adjusted for inflation even in the face of 2013 production expenses predicted to be at a record high if trends continue, USDA said.  

 

"This week's forecast...is a testament to the resilience and productivity of U.S. farmers and ranchers, and a further sign of the positive momentum they've achieved over the past five years," said Secretary of Agriculture Tom Vilsack in a statement, which included a pitch for finishing the Farm Bill and completing immigration reform.  "A 6% increase in this key measure would be the second highest inflation-adjusted amount since 1973, even as agriculture has worked hard to recover from a record drought and other disasters."

 

However, net cash income is seen falling by 10% again this year to a predicted $120.8 billion, the fourth year in a row of declining cash income. Net cash is calculated as the difference between cash taken in and the combination of production sold, including other income.  If this year brings a return to trend yields for corn and soybeans based on predicted record production, this would lead to higher supplies and on-hand inventories, but would likely reduce cash receipts by about 5.5%.   The full farm income report is available by going to www.usda.gov.

 
Goodlatte Tells DHS of Concern over Immigrant Asylum Requests; Vitter Embarrassed by State Sheriff's Refusal to Enforce Federal Immigration Law

House Judiciary Committee Chair Bob Goodlatte (R, VA) last week expressed concern over the dramatic increase reported in the number of immigrants seeking asylum at U.S. ports of entry, particularly Mexicans.   Goodlatte, who wrote to Department of Homeland Security (DHS) Secretary Janet Napolitano, says so-called "credible fear" requests on which asylum is requested have increased from 5,500 in 2009 to 8,100 in fiscal 2012, to 14,610 in the first nine months of fiscal 2013.

 

Goodlatte says his committee will conduct oversight hearings on the matter, and will attempt to remedy the problem through House immigration reform legislative efforts.  

 

Meanwhile, Sen. David Vitter (R, LA), ranking member of the Senate Committee on Environment & Public Works,  wrote to Marlin Grusman, sheriff of Orleans Parish, urging him to reverse an earlier decision to reject detention requests from federal Immigrations and Customs Enforcement (ICE).  Orleans Parish has been the subject of recent media reports of a "dysfunctional" and "out of control" Orleans Parish Prison.  Vitter said it's an embarrassment that the sheriff is now "telling the country that you will actively prevent federal enforcement of immigration law."

 
Nearly 260 Groups Demand EPA Ban Atrazine

A letter signed by 259 environmental, organic production, animal rights and other activist groups demanding EPA ban the use of atrazine was filed this week to the long-standing EPA docket on the future of one of the world's most popular weed killers.

 

"This dangerous pesticide is the most commonly detected pesticide contaminant of ground, surface and drinking water," the group wrote.  "Atrazine is a powerful endocrine disruptor that is already banned in the European Union.  Atrazine causes complete sex reversal in male frogs at concentrations lower than what the U.S. allows in drinking water."

 
USDA Designates California Ag Counties for Drought Disaster Assistance

DAVIS, CA - Aug. 29, 2013 - The U.S. Department of Agriculture (USDA) has designated 57 of California's 58 counties as natural disaster areas due to damages and losses caused by extreme drought in 2013. San Francisco is the only county not designated.

 

"Just about everyone in California agriculture has been negatively affected by drought this year," said Val Dolcini, Farm Service Agency State Executive Director. "California's diverse farmers and ranchers of all sizes and backgrounds have experienced drought conditions and water shortages and may find help at FSA offices."

 

Agricultural operators in all counties designated as natural disaster areas may qualify for low interest emergency (EM) loans from USDA's Farm Service Agency (FSA). The agency will consider each loan application on its own merits, taking into account the extent of losses, security available and repayment ability. The maximum amount for an EM loan is $500,000.

 

Counties that are contiguous to the primary disaster counties declared also qualify for USDA natural disaster assistance. California county drought disaster declarations from the USDA Secretary of Agriculture, Tom Vilsack began early this year in February.  With the addition of 25 primary disaster counties declared this month, all but one county in California are now primary or contiguous disaster assistance-eligible counties.

 

Farmers and ranchers in designated counties have eight months from the date of the declaration to apply for the EM loan to help cover part of their actual losses. To verify the deadline for application in your area, contact your county's Farm Service Agency Office.  You can visit http://www.fsa.usda.gov  to get the location of all FSA offices in any state.

 

The Natural Resources Conservation Service (NRCS) has conservation-related disaster assistance to protect soil, water and habitat ( www.nrcs.usda.gov).  Small, non-farming businesses in USDA disaster-designated counties may be eligible for disaster assistance from the U.S. Small Business Administration (SBA) (www.sba.gov/disaster).  For a comprehensive online source for all federal disaster assistance, visit www.disasterassistance.gov .

 

The Farm Service Agency's Emergency Conservation Program may also help restore conversation-related farm property and facilities. And the Noninsured Crop Disaster Assistance Program is available for producers who have enrolled in this annual protection program prior to the deadline earlier this year. For further information, contact your local USDA Service Center regarding all program eligibility requirements and application procedures. Additional information is also available online at http://disaster.fsa.usda.gov.

 

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USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users).