grain pictureCGFA logo
Conveyor Currents                               January 17, 2014
Upcoming Dates

2014

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.

Annual Convention - Room Reservation Link to Sheraton

This is the link for the on-line reservations for the CGFA Annual Convention - April 23-26, 2014.  

 

 

Mahalo!

 

 

 

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
Governor's Budget Funds Water Action Plan
Governor Declares Drought in California
Senator Kevin de Leon to Become Next Senate Pro Tem
2014-2015 State Budget Affects Agriculture Education
Dairy Deal Close, Farm Bill Could Head to Floor after Next Week.
Negotiators Still Wrestling with Farm Bill Payment Limitations
Congress Sends to Obama $1.1 Trillion Spending Bill Heavy with Policy Add-ons
GAO Tells EPA to Move on Ag, Stormwater Runoff
Farm Bill Update
2013 Dairy Exports Expected to Break Record
House Subcommittee Acts to Limit EPA on GHG Emissions
Mandatory OSHA Reporting Requirements

Governor's Budget Funds Water Action Plan - Proposes Additional Regulation on Groundwater


The Governor included an entire section on his Water Action Plan in his recently released proposed budget.  The budget summary cites climate change, drought, and population growth as reasons for a comprehensive near term plan to invest in water.  The budget includes $618.7 million in strategic investments to begin implementing the Water Action Plan.  The proposed budget summary includes very aggressive language that in order to protect groundwater basins from permanent damage, the State Water Resources Control Board will serves as a "backstop" to sustainably manage groundwater basins. 

The proposed investment schedule is as follows:
  • Expand ground water storage capacity - $7.8 million, monitor and manage groundwater.  Specifically, fund ten positions at the State water resources Control Board (SWRCB) to act as a backstop when local or regional agencies are unable or unwilling to sustainably manage groundwater basins.  Additionally fund Groundwater monitoring and further develop online well completion reporting system.
  • Safe Drinking Water - $11 million drinking water and waste water actions in disadvantaged communities. Interim funding for safe drinking water for severely disadvantaged communities while the SWRCB establishes alternative governance structures for providing safe drinking water.
  • Water and Energy Efficiency - $20 million DWR to fund water and infrastructure efficiency projects that also result in energy savings.
  • Protect and restore ecosystems - $30.4 million to Department of Fish and Wildlife for protection of coastal and mountain watersheds.
  • Increase Flood Protection - $77 million for State Flood Control Infrastructure.  Funds Flood SAFE for flood response, flood management planning and flood control projects. 
  • Regional Self Reliance - $472.5 million for Integrated Regional Water management Programs.  This is Prop 84 funds for grants to support local projects that increase regional self reliance.  10% of the funds will be used to address critical water needs in disadvantaged communities.

Below are links to the Natural Resources budget summary, and the overall budget summary:

 

http://www.ebudget.ca.gov/2014-15/pdf/BudgetSummary/NaturalResources.pdf  

 

http://www.ebudget.ca.gov/2014-15/BudgetSummary/BSS/BSS.html 

 
Governor Declares Drought in California

For the second time in his three terms as Governor, Jerry Brown is facing a severe drought.  On Friday, January 17, the Governor made a drought declaration official.  In brief remarks, the Governor stated "We can't make it rain, but we can be much better prepared for the terrible consequences that California's drought now threatens, including dramatically less water for our farms and communities and increased fires in both urban and rural areas," said Governor Brown. "I've declared this emergency and I'm calling all Californians to conserve water in every way possible."

 

In the State of Emergency declaration, Governor Brown directed state officials to assist farmers and communities that are economically impacted by dry conditions and to ensure the state can respond if Californians face drinking water shortages. The Governor also directed state agencies to use less water and hire more firefighters and initiated a greatly expanded water conservation public awareness campaign.

 

In addition, the proclamation gives state water officials more flexibility to manage supply throughout California under drought conditions.  Specifically, the declaration establishes "emergency conditions" which allows for certain laws to be bypassed and efficiencies.  Specifically, transferring water and moving water through the system, can both occur more efficiently, receive faster regulatory approval and require less "carriage loss." 

 

State water officials say that California's river and reservoirs are below their record lows. Manual and electronic readings record the snowpack's statewide water content at about 20 percent of normal average for this time of year.

   

 

Below is a link to the Governor's press release and declaration:

 

http://gov.ca.gov/news.php?id=18368 

 

 
Senator Kevin de Leon to Become Next Senate Pro Tem

 

Following a Senate Democrat Caucus on Tuesday, California Senate President Pro Tem Darrell Steinberg said that "it is clear" Sen. Kevin de Le�n will be the next leader of the state Senate.  Steinberg said he told fellow Democrats that he intends to remain the leader of the state Senate until his term ends in November, and that he will call for a vote on de Leon's leadership after the budget is complete in June.

 

Senator de Leon represents the 22nd Senate District including the cities of Alhambra, Maywood, San Marino, South Pasadena, Vernon and Los Angeles.   Prior to serving in the Senate he was an Assembly member and is currently the Senate Appropriations Committee chair.  He is termed out in 2018.

 
2014-2015 State Budget Affects Agriculture Education

In his 2014-15 State Budget released last week, Governor Brown proposed the complete elimination of funding for the Agricultural Education Incentive Grant, which supports Agricultural Education standards in our schools. As a reminder this grant program is designed to provide matching funds for districts who commit to meeting state-approved program standards in Ag Education, including classroom instruction, supervised agricultural experience projects, and leadership training through the Future Farmers of America (FFA) student organization.

 

What this means is that the funding that would have been allocated to districts who meet the requirements of the Incentive Grant, will go into the general fund to be spent at the districts' discretion.  With this reallocation of funds the Agriculture program could potentially have to compete with other programs for the use of the released funds.   

 

Members are encouraged to send letters  to the Governor's office asking him to reconsider cutting the funds for Agriculture education in this year's budget.  

 

You may contact Governor Jerry Brown by mail at:

 

Mailing address:

 

Governor Jerry Brown
c/o State Capitol, Suite 1173
Sacramento, CA 95814

 

Phone: (916) 445-2841
Fax: (916) 558-3160

 

Dairy Deal Close, Farm Bill Could Head to Floor after Next Week

With word House Agriculture Committee Chair Frank Lucas (R, OK) has come up with a compromise to end the dairy supports/production control battle between his ranking member Rep. Collin Peterson (D, MN) and House Speaker John Boehner (R, OH), a dust-up that's delayed final conference committee action on the Farm Bill for nearly 10 days, insiders say the completed conference report could be on the House floor the week of January 27.  That timetable could slip given the House GOP leaves for its annual retreat on Wednesday that week.  

 

Word of the Lucas plan emerged early this week, but he did not release details while Peterson said this week he can likely live with the compromise - though he's not committed himself yet because he hadn't seen Lucas's final language - it "sounds like" it sends signals to farmers not to overproduce milk, and support among both Senate and House conferees is reportedly growing.  Boehner has not publicly blessed the deal.  Details are to be worked out during a week-long Martin Luther King holiday recess beginning January 20.   

 

The dairy battle centers on language requiring milk production controls or what industry calls the "Dairy Market Stabilization Program" (DMSP).  The language is in the Senate dairy title. It says if a producer wants his/her margin insurance support - tagged to the price of feed/cost of production -- then he/she agrees to periodic, price-related supply controls.  Boehner calls it "Soviet-style" industry manipulation; Peterson says supply controls are necessary so USDA can control dairy program costs.

 

The Lucas compromise would keep the dairy margin insurance program, but dump the milk supply control component. Further, there is no Milk Income Loss Contract (MILC) program included as an option either in current or modified form. Reports indicate Lucas's plan supports dairy farmers based on milk price, but limits assistance so it doesn't push out smaller producers with lower production. The Secretary of Agriculture would be given annual authority to adjust the margin insurance premium paid by a farmer up to 5% up or down. The "gross margin insurance indemnification" would be a so-called "blended payment," based on a whether a producer exceeds his/her historical milk production base. Each farm would receive an individual farm calculation. A full payment would be received on a two-month base production calculation; a farmer would receive only 75% of his payment on production exceeding that base. The Lucas deal may also contain USDA "emergency" authority to buy limited amounts of surplus milk.
     
Negotiators Still Wrestling with Farm Bill Payment Limitations, Eligibility

With many Farm Bill conferees calling it the last major hurdle, Sen. Chuck Grassley (R, IA) continues to battle to keep language in the Farm Bill conference report limiting federal payments to eligible farmers, but changing that eligibility by redefining what an "actively engaged" farmer is.  

 

Both House and Senate bills contain language - authored by Grassley and Rep. Jeff Fortenberry (D, NE) - creating "hard caps" on payments, excluding crop insurance, at $250,000 a year for a farming couple, and $125,000 for a single farmer or for the first time, a single "manager" on a single farm.  While Senate Agriculture Committee Chair Debbie Stabenow (D, MI) supports keeping the language in the final report, Rep. Frank Lucas (R, OK), chair of the House ag panel, and Sen. Thad Cochran (R, MS), ranking member of the Senate ag committee, want those limits removed or increased. House Agriculture Committee ranking member Rep. Collin Peterson (D, MN), who is not actively negotiating the payment limits issue, said this is a fight "between the North and the South."  

 

Current eligibility requirements call for demonstrating "involvement" in the farming operation, but stop short of a recipient actually stepping foot on the farm.  Grassley's goal is to ensure anyone getting a USDA check has day-to-day active engagement in the farming operation, including actually being on the farm.  Rep. Rosa De Lauro (D, CT) got into the fray this week by saying she supports keeping the Grassley language because the current definition "would allow multimillionaires to collect taxpayer subsidies by padding their payrolls with people who've never stepped on the farm."

 

While the battle was essentially political up until this week, the Congressional Budget Office (CBO) handed Grassley a major weapon when it released a new "score" on the payment limit savings that pegged dollars saved at $387 million over the next decade, compared with an original estimate of about $177 million over 10 years. 

 
Congress Sends to Obama $1.1 Trillion Spending Bill Heavy with Policy Add-ons

 

The House and Senate this week approved the FY2014 omnibus spending bill, clearing it for President Obama's signature and avoiding another potential government shutdown.  However, for many in Congress, avoiding the shutdown trumped their opposition to a host of policy riders included in the package, the 2014 equivalent of political earmarks.

 

The 1,600-page omnibus bill includes 12 individual appropriations bills, but while the President has pledged to sign the bill, he's not happy that in real dollars it provides less federal discretionary spending to appropriators than during President George W. Bush's last year in office.

 

For agriculture, USDA receives $20.9 billion overall, about $350 million more than in FY2013.  Research gets $2.6 billion, including $316 million for the Agriculture & Food Research Initiative (AFRI) and the National Institute of Food & Agriculture (NIFA). APHIS gets $821.7 million, about the same as last year, and the Farm Service Agency (FSA) gets $1.5 billion, again equal to FY2013.  

 

In related agriculture policy actions, the report accompanying the bill includes language by Sen. Mike Johanns (R, NE) that restricts OSHA from regulating small farms by redesignating them as "grain handlers," and defining grain storage, drying and fumigating as OSHA-regulated activities.  The bill also withholds money from USDA horse slaughter inspection, prohibits GIPSA from interfering in contract grower negotiations and disputes and stops the department from releasing regulations designed to regulate the private contract relationship, and the omnibus "warns" USDA to delay implementation of country-of-origin labeling of meat products.

 

Appropriators allocated $215 million for the Commodity Futures Trading Commission (CFTC), $10.1 million more than the pre-sequester FY2013 enacted level, but $100 million less than requested by the White House.  Of that total, $35 million is designated for information technology investment, but the commission is allowed to "reprogram" up to $10 million for salaries.  $2.55 billion is appropriated for the Food & Drug Administration (FDA), $96 million more than the 2013 enacted level. It also preserves user fee funding and returns to FDA lost income due to sequestration.

 

Appropriators added language on the new Food Safety Modernization Act (FSMA) implementation, saying FDA "significantly underestimates" the potential cost of the new rules to the food/feed industries.  "The agency has indicated that significant changes will be needed in key provisions and is encouraged to re-propose a rule that provides the necessity, location, and frequency of testing based upon risk-cost benefit and other established verification activities," the report says.

 

A significant increase in funding for waterways was also included in the Energy & Water title, with the Army Corps of Engineers getting $1.6 billion, along with the promised revisions in funding to guarantee completion of the Olmsted Lock and Dam project.   

 
GAO Tells EPA to Move on Ag, Stormwater Runoff

The Government Accountability Office (GAO), the investigative arm of Congress, this week released a report saying EPA needs to write rules that tackle ag operation runoff as well as stormwater runoff if that runoff heads for "impaired waterbodies."  GAO says voluntary measures aren't working.

 

However, EPA doesn't appear to be eager to shift from voluntary to mandatory runoff regulations because when it tried similar action back in 2000, Congress intervened, with the agency adding "this recommendation might be better directed at Congress than EPA."

 

The report says the mandatory limits are needed to control maximum daily loads (TMLs) and meet EPA's obligations under the Clean Water Act (CWA).  The voluntary program has resulted in only about 20% of state programs achieving targets, compared with 83% for permitted or mandatory discharge levels, GAO said.

 

"The goals of the act are not being met," GAO said. "Without changes to the act's approach on nonpoint source pollution, the act's goals are likely to remain unfulfilled."

 
Farm Bill Update: Progress is Very Slow, But Still Continuing

Although there was no formal conference meeting on the farm bill this week, slow progress continued to be made toward a final conference agreement.  Optimism fills the air on the House and Senate Agriculture Committees as the few remaining thorny issues appear headed toward some type of resolution. 

 

From outward appearances it would appear that little progress has been made because the main issues still remaining are the "regulatory issues" (which include the "King amendment" regarding interstate commerce, country of origin labeling, and the regulation of the use of pesticides in or near navigable waters), in addition to issues in the commodity area involving overall dairy policy and commodity program eligibility requirements involving payment limits, actively engaged, and AGI limits.  Although these issues have been quietly worked on, worked over, or ignored for a while, now rumors are circulating that substantive compromise proposals are being considered. 

 

In any event, the final coup de grace on these outstanding issues will have to be delivered by the members sometime soon either in a formal full conference meeting (unlikely now because of time constraints) or by a four principals agreement approved by a majority of the conference (more likely) because Speaker Boehner has indicated that he wants the bill on the floor the week of January 27th.  The House Republican Conference is scheduled for a retreat that week and there is a desire to finish the bill prior to the retreat.  That would allow the conference retreat to focus on other issues and avoid the repeat of last year where farm state lawmakers continually pressed the need to complete the farm bill. 

 

Of course, any of these outstanding issues could resist resolution and still delay completion of the farm bill-particularly the regulatory ones.  In addition, other unrelated issues could emerge such as including Payments In Lieu of Taxes (aka PILT program) which was not funded in the omnibus appropriations bill that passed the House and Senate this week (reducing farm bill savings but most likely increasing support for the bill).  One still hears talk about offsetting the cost of extending unemployment compensation with the savings generated in the farm bill.  In spite of all these challenges, forward momentum is being made.

(Source:  Cornerstone Governmental Affairs - Food & Ag Regulatory and Policy Roundup)
 
2013 Dairy Exports Expected to Break Record

USDEC projects another record-breaking year for dairy exports in 2013 and credits manufactuerers' commitment to make the U.S. a reliable global supplier and efforts by industry organizations to expand trade.

The 2013 year-end tally on U.S. dairy exports won't be known until next month, but given the fact that exports through November were 17 percent higher than all of 2012, it's destined to be another record-breaking year.U.S. Dairy Export Council reported Jan. 8 that exports in the first 11 months of 2013 were valued at $6.1 billion and were on pace to approach $6.7 billion for all of 2013. That compares with exports worth $5.2 billion in 2012.Exports of nonfat dry milk/skim milk powder, cheese, high-value whey protein concentrates and isolate, lactose, and fluid milk were all on pace for record highs in 2013.

On a volume, 2013 is on track to be the fourth-consecutive record year and the ninth record year in the last 10 years, USDEC reported.Strong global demand, domestic supply shortages in China and Russia and milk production shortages for major exporter New Zealand resulted in tight global dairy supplies in 2013, and U.S. prices were competitive with those of other exporting countries.That helped boost exports in 2013 by a projected 30.4 percent in value and 17.5 percent in volume over 2012, representing 15.5 percent of U.S. milk production.But the real highlights of the year lie behind the numbers, USDEC President Tom Suber said in a press release.

 

House Subcommittee Acts to Limit EPA on GHG Emissions

 

A subcommittee of the House Energy & Commerce Committee this week approved a bill that would restrict how EPA seeks to control greenhouse gas (GHG) emissions from new power plants, action insiders say will affect how the agency tries to control similar emissions in other industries.

 

The party line vote in the subcommittee on energy and power subcommittee approved a bill that would require any agency rules to control emissions from new coal-powered utilities that rely on "new" control technologies to be built with technology that has been used at several facilities on a full commercial basis over at least the previous year.

 

While not restricting EPA requiring use of the best and "cleanest technologies" commercially available, supporters argued the current EPA power plant rulemaking is designed to end construction of new coal-power plants, and the carbon capture/storage technologies contemplated by the agency are costly and generally not available commercially.  

 

As for existing power plants, the bill would require Congress enact a separate law creating a start date for those actions, with the EPA administrator required to report to Congress.  The report would contain the text of the proposed rule, the economic impact of the rule and the level of emissions expected to be reduced compared to similar emissions globally.

 
Safety Corner: 
Landscaping - Machinery

The Menace of Motion

 

Almost 200,000 workers are injured every year by machinery. Ten of every one hundred workers hurt on the job are hurt by machinery.

 

There are two kinds of motion in machinery: rotating and sliding (reciprocating).

 

Rotating - Shafts rotates. Drills, mower and chipper blades, pulleys, and gears spin. Rotating machinery can grab loose clothing, hair, and jewelry and pull you into moving parts.

 

Sliding - Forklift assemblies, trimmers, and compactors slide up and down or sideways with great force. These motions can pinch, crush and chop misplaced fingers, hands and arms.

 

Machines are everywhere. Recognize and avoid the hazards of machinery wherever you are working.

 

Important points to remember when working with machinery:

 

  • Operate a machine only if you are fully trained and authorized to use it.
  • Use a machine only the way it is designed to be used and according to all the manufacturer safety requirements.
  • Make sure that all safety guards are in place and that you and everyone else are clear of moving parts. Never remove any guards.
  • Do not reach into any hazard area or moving portion of a machine to remove a blockage, etc. without first implementing proper Lockout/Tagout procedures.
  • Perform Lockout/Tagout whenever doing machine maintenance and repair. Always disconnect the main power and release all stored energy.
  • Use machines only if they are properly maintained and in safe working condition.
  • Operate only when you are dressed properly (no loose hair, jewelry, or clothing).
  • Turn off the machine when you are finished using it.
  • Wear all Personal Protective Equipment (PPE) necessary to safely use the machinery. A job hazard analysis should be completed to indemnify needed PPE such as, hearing protection, eye protection, gloves etc.



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

[email protected]

 

Let our experience guide you.