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Conveyor Currents January 10, 2014
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| Upcoming Dates |
2014
January 15-16, 2014 Grain & Feed Industry Conference, Embassy Suites, Monterey, CA
January 21, 2014 - 7th Gordon Currie "Salty" Crab Feed District Meeting in Petaluma (click here)
April 23-26, 2014 CGFA Annual Convention ~ The Sheraton Resort, Maui, HI
*** Information Click Here ***
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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Annual Convention - Room Reservation Link to Sheraton
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This is the link for the on-line reservations for the CGFA Annual Convention - April 23-26, 2014. Mahalo!  |
| Quick Links |
California Dept. of Food & Ag
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Grain & Feed Industry Conference - Golden Bucket Award
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If you have a project you plan on entering for the GFIC Golden Bucket Award - you can send it electronically. Our staff will have it shown on stage at the GFIC next week. Send your power point slides to dbogs@cgfa.org. (keep it under 6 slides please) Thank you.
January 15-16, 2014 at the Embassy Suites in Monterey
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| Two Legislators Introduce Legislation Regulating Antibiotics Use in Livestock |
Two legislators this week introduced bills that would severely restrict the use and availability of antibiotics for livestock producers in California. Senator Hill introduced SB 835 intended to place in statute recently released voluntary federal guidelines on the placing of antibiotics in feed and water for growth promotion. While the stated intention is to mirror the federal guidelines, the bill goes farther than restricting antibiotics for growth promotion. It would eliminate over the counter antibiotics and require a prescription and veterinary oversight for all use in livestock. Below is a link to Senator Hill's bill.
http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0801-0850/sb_835_bill_20140106_introduced.pdf
Assembly member Kevin Mullins introduced AB 1437 which is a much more far reaching and comprehensive bill. This bill prohibits medically important antibiotics to be provided to livestock for "non routine disease control" unless certain criteria are met. This section essentially bans the use of antibiotics in a "routine manner" such as placing them in feed or water without a specific disease that is already impacting the health of the animals or herd. Specifically prohibited would be growth promotion, feed efficiency, weight gain, disease prevention or non-routine disease control. The bill further requires a Veterinary-client-patient relationship with a veterinarian in order to administer medically important antibiotics and it redefines the veterinary-client-patient relationship. The bill requires reporting to the Secretary of all antibiotics administered by a livestock owner, under a veterinary-client-patient act. Finally, the bill bans all non therapeutic use of medically important antibiotics in livestock and has criminal penalties for violations. Below is a link to this legislation. http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_1401-1450/ab_1437_bill_20140106_introduced.
Advocates representing livestock groups, lead by California Grain and Feed and the Pacific Egg and Poultry Associations, have formed a coalition to address these bills and have met with both authors. We have also started meeting with legislators that represent agriculture areas informing them of current practices, federal guidelines and the regulatory process.
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| FDA Extends FSMA Feed Rule Comment Period |
FDA agreed this week to requests from the American Feed Industry Assn. (AFIA), the National Grain & Feed Assn. (NGFA), the Pet Food Institute (PFI), the National Renderers Assn (NRA) and the California Grain & Feed Association (CGFA) granting an additional 30 days to the comment period for the agency's proposed rule governing animal food preventive controls and good manufacturing practices (GMPs) required by the Food Safety Modernization Act (FSMA). Comments are now due March 31, 2014. In addition to the "feed rule," the industry is developing comments on FSMA rules covering third party auditor accreditation and foreign supplier verification. Another rule set to be published before the March 31 deadline is a proposal implementing transportation sanitation covering both rail and motor carrier transport of ingredients, feeds and human foods. At the same time, comments are also being developed on how FDA should implement the modified Veterinary Feed Directive (VFD) program that provides veterinary oversight for the use of antibiotics in livestock and poultry feed and water. |
California State Legislative Report
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Governor Brown Releases State Budget
Due to a press leak Governor Brown released his 2014-15 proposed budget two days early on January 8th. The budget calls for spending of $154.9 billion from all funds, including $106.8 billion from the General Fund. The Governor proposed a balanced budget that pays off more than $11 billion in debt and builds a rainy day fund while continuing to invest in public schools and expand health care coverage.
Maintaining Long-Term Fiscal Stability
The Budget maintains the state's fiscal stability by strengthening and investing in the state's Rainy Day Fund and continuing to pay down the "Wall of Debt" - the most immediate liability constraining the ability of the state to emerge from its fiscal troubles. Specifically, the Budget makes a $1.6 billion payment into the state's Rainy Day Fund - the Budget Stabilization Account - which marks the first deposit since 2007, and also directs $967 million to a Special Fund for Economic Uncertainties. The Budget proposes a constitutional amendment to bolster the state's Rainy Day Fund. The Budget also continues to address the $25 billion "Wall of Debt", directing more than $11 billion to pay off past budgetary borrowing. This debt, which totaled $34.7 billion in 2011, will be eliminated entirely by 2017-18.
Significant Actions Impacting Business and Agriculture
The Budget proposes to invest $850 million of Cap and Trade auction proceeds to support efforts to reduce greenhouse gases. To advance the Governor's Water Action Plan, the Budget also proposes $619 million to help expand water storage capacity, improve drinking water in communities where available supplies are substandard, increase flood protection and increase regional self-reliance.
The Governor's plan includes $20 million for the Department of Food and Agriculture to support projects that reduce GHG emissions from the agriculture sector by capturing greenhouse gases, harnessing greenhouse gases as a renewable bioenergy source, improving agricultural practices and promoting low carbon fuels, agricultural energy, and operational efficiency.
This proposal will support: 1) the design and construction of dairy digester systems; 2) research and technical assistance on reducing nitrous oxide emissions, nitrification inhibitors, water and nitrogen movement in the environment, and evaluation of water and nitrogen management practices; and 3) the development of fuel quality specifications and standards for renewable and zero emissions systems, such as biofuels produced from dairy digesters and other agricultural waste. Additionally, the veterinary diagnostic lab will receive a one-time one million dollar augmentation.
While schools are being funded an additional $6.4 billion, the Governor did cut agriculture education funding eliminating the "Ag Incentive Grant" of $4.4 million. This will dramatically impact agriculture education and FFA programs throughout the state. Advocates are working on a plan to have the funding restored.
Legislature Returns for Second Year of Session with New Faces
There are three new faces in the California Legislature. All three were elected over the interim recess and joined their colleagues this week in Sacramento. With their addition, there are more "freshman" legislators in office than at any other time in California history. Sebastian Ridley Thomas represents the 54th District, which includes Los Angeles, San Pedro and Signal Hill. Freddie Rodriguez was elected to the 52nd Assembly District representing the communities of Pomona, Chino, Fontana and Ontario. Matt Dababneh was elected to the 45th district representing the communities of Calabasas, Encino, Los Angeles, Northridge and Woodland Hills. All three new members are Democrats.
Water Board Appointees Confirmed by Senate Rules Committee
After a 6 hour hearing three appointees of the State Water Resources Control Board were confirmed by the Senate Rules Committee. Frances Spivey-Weber and Tam Doduc were both reappointed and are serving their third terms, while Dee Dee D'Adamo who was appointed in 2013 was being confirmed for the first time. While agriculture generally supported all three appointees, Commissioner D'Adamo has a long history of engagement with agriculture and garnered strong business and ag support. After passing the Rules Committee with unanimous support, approval by the full Senate is a foregone conclusion. Additionally, the appointment of Carla Peterman to the Public utilities Commission was confirmed.
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| Dairy Dispute Derails Conference Action on Farm Bill; Other Issues "Almost There" |
A continuing political face-off that escalated late last week between House Speaker John Boehner (R, OH) and House Agriculture Committee ranking member Rep. Collin Peterson (D, MN) over the fate of Farm Bill dairy supply controls derailed plans this week to release a conference framework, hold a meeting of the full conference committee, and will delay final action on the Farm Bill until late this month.
Formal conference action is now pushed into next week as lead negotiators hope the weekend will bring resolution to the dairy dispute. While lead negotiators continue to tell reporters "we're almost there," one House GOP senior staffer said the longer the draft framework is unresolved, the more likely "done" items will be reopened for further discussion.
With a week-long recess beginning January 20, Sen. Debbie Stabenow (D, MI), chair of the Senate Agriculture Committee yesterday said it is her hope "at least one chamber" would approve the Farm Bill conference report early next week. In any case, it now appears it will be late January or early February before an approved conference report will see President Obama's signature.
The central issue is whether a plan favored by the National Milk Producers Federation (NCFC) and Peterson, but opposed by dairy processors, small independent farmers and Boehner to replace existing dairy support programs with a margin insurance program and mandatory supply milk management will survive. The Senate bill contains the full dairy program rewrite, which supporters say protects the market from overproduction and avoids increased USDA payments. The supply management portion was stripped from the House Farm Bill during floor debate, Boehner calling it a "Soviet-style" program.
Late last Friday, Boehner, Peterson and Rep. Frank Lucas (R, OK), chair of the House Agriculture Committee and the Farm Bill conference committee, talked by phone. The purpose of the call was to determine if Boehner, who has personally and directly engaged on the supply control provision, was willing to compromise on the language. Boehner not only rejected any compromise, but reminded Peterson he has opposed milk supply controls during his full 23-year House tenure. He also told the ag lawmakers if the final conference report contains supply control language, he might not bring the report to the floor for a final vote.
This week Reps. Bob Goodlatte (R, VA) and David Scott (D, GA), the duo who successfully amended the House Farm Bill to strip out supply controls, released a joint statement supporting Boehner, saying there's broad industry and political opposition to milk supply management. For his part, Boehner told reporters this week he's confident he'll prevail in the political tug-of-war with Peterson.
Sen. Patrick Leahy (D, VT), former chair of the Senate Agriculture Committee and the original author of the Milk Income Loss Coverage (MILC) program, entered the dairy fray late last week in hopes of finding alternative language to satisfy Boehner and others who oppose supply controls. And while Lucas said Friday there's been no progress on dairy, it's reported one plan being examined closely is one devised by a team of Ohio State University professors. This idea would modify Milk Income Loss Coverage (MILC) so producers receive supports when milk prices drop below a target price adjusted to reflect feed costs, but doesn't include milk supply controls. Another option being considered is to give producers a choice between the current or a modified MILC contract and the new margin insurance/supply management. This is how conferees resolved differences in conflicting crop support options.
Other issues not 100% locked down and to be decided by the full conference committee include payment limits for farmers who participate in USDA programs. Sen. Chuck Grassley (R, IA), a member of the Senate ag panel but not a conferee, is lobbying both Senate and House members to support his straight $250,000 per individual/$500,000 per couple limit, along with a stricter definition of "farmer."
On cuts to the Supplemental Nutrition Assistance Program (SNAP), it's reported conferees have agreed to cut the federal food stamp program by $9 billion over 10 years. This will be achieved by rewriting eligibility rules and ending state programs that automatically enroll recipients of federal heating oil assistance. Unresolved is language sought by Rep. Steve Southerland (R, FL) to require food stamp recipients to be working or in a work training program.
Other issues include language to fix EPA's redundant Clean Water Act (CWA) rules on NPDES permitting for the use of pesticides near or on waterways; country-of-origin labeling of meats; whether the Farm Bill will move federal catfish inspection from FDA to USDA, ending a separate USDA catfish program that critics call redundant and wasteful. Also open is the so-called "King amendment" that would allow the federal government to preempt state laws that prescribe livestock and poultry production standards and then bar the sale of out-of-state products not produced under identical state standards.
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World Agricultural Supply and Demand Estimates
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WHEAT: U.S. wheat supplies for 2013/14 are unchanged this month, but lower expected use
raises projected ending stocks 33 million bushels. Feed and residual use is lowered 60 million
bushels reflecting disappearance for June-November as indicated by the December 1 stocks
released in the Grain Stocks report. Feed and residual use is lowered for Hard Red Winter
(HRW) and Hard Red Spring, and Soft Red Winter wheat. Seed use is raised 1 million bushels
based on the winter wheat planted area reported today in the Winter Wheat Seedings report.
Wheat exports are projected 25 million bushels higher, with an increase for HRW, on the strong
pace of sales and shipments and lower expected competition from Argentina, particularly in
Brazil's milling wheat market. The 2013/14 season-average farm price is projected 10 cents
lower at the midpoint with the range narrowed to $6.60 to $7.00 per bushel.
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| Boehner says Immigration Reform is a "Priority" & will Release Immigration Reform "Principles" | |
In a bid to change the GOP anti-immigration reform image, House Speaker John Boehner (R, OH) told reporters this week broad immigration reform is a priority for the House and that he and Majority Leader Eric Cantor (R, VA) will release their party's immigration "principles and standards" in a few weeks. His statement came after a closed-door meeting of House Republicans this week.
The Senate passed an omnibus immigration reform bill in 2013 with strong bipartisan support. However, Boehner has refused to take up the Senate bill, preferring to pass smaller individual bills dealing with various aspects of immigration reform. Those bills would be melded into a single package on the House floor.
Boehner's statements, and those of Rep. Bob Goodlatte (R, VA), chair of the Judiciary Committee with oversight of immigration legislation, sought to blunt criticism of the House GOP leadership's piecemeal approach to passing immigration reform. Goodlatte moved four bills through his committee in 2013, including a bill dealing with agriculture labor. But, despite Cantor's promises last fall to begin floor consideration of those bills, none have been brought to the floor.
The Republican Party's "principles and standards" are unknown. What is known is that immigration reform is a top-of-mind issue for a significant bloc of voters who voted against Republican candidates in the 2012 general election. Boehner told reporters Goodlatte has been meeting with other committee chairs and House leadership, and the product will be "(an) outline of standards, principles that would guide us in a common sense, step-by-step approach to immigration."
Immigration reform supporters are buoyed by Boehner's hiring of veteran Hill staffer Rebecca Tallent, a well-respected immigration reform expert from her years working for Sen. John McCain (R, AZ). However, they remain concerned the GOP will try and avoid granting illegal immigrants full citizenship status. Goodlatte, for instance, generally talks about granting illegal workers "legal status," one of three tenets of the Republican's policy on immigration. The other two are first and foremost border security, followed by "fixing" the immigration system.
The U.S. Chamber of Commerce this week said immigration reform is a priority issue, and it will "pull out all the stops" to see enactment of a reform bill this year. On the political side of the immigration debate, several GOP members remain concerned the White House will ignore whatever Congress eventually enacts and approach immigration with its own agenda.
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House Passes EPA Resource Conservation & Recovery Act, Rule Review Bill |
A bill designed to overhaul the way EPA reviews regulations under the Resource Conservation & Recovery Act (RCRA) was passed by the House this week on 224-188 vote. The bill requires EPA to review and change RCRA rules "as necessary" rather than on an every-three-year schedule as it does now.
House Republicans said the new requirement would let the agency get rid of outdated and unnecessary rules, but Democrat opponents said the bill is "misguided and superfluous." The White House opposes the bill, mainly based on some unrelated Superfund amendments added to the measure on the floor, signaling that Senate action is unlikely.
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| Mandatory OSHA Reporting Requirements |
At the end of each calendar year, all employers with 11 or more employees must transfer the totals from their OSHA 300 log to the 300A log and post it from February 1st thru April 30th.
WHEN MUST YOU POST THE SUMMARY?
You must post the 300A for each facility or establishment by February 1st of the previous calendar year. This log must be posted through April 30th of the current calendar year. All OSHA logs run concurrent with calendar year.
HOW LONG MUST YOU KEEP THE LOG AND SUMMARY ON FILE?
You must keep all OSHA logs for 5 years following the year to which they pertain.
DO YOU HAVE TO SEND THESE FORMS TO CAL/OSHA AT THE END OF THE YEAR?
No, you do not have to send the completed forms to Cal/OSHA unless specifically asked to do so.
Links to forms:
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Sign Up For The CGFA Crab Feed Today!
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Don't Miss The CGFA North Bay Crab Feed ---- January 21, 2014 Click on Crab Below for Flyer.....
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