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Conveyor Currents                                 April 4, 2014
Upcoming Dates
2014
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
*** Information Click Here *** 
 
2015
 
January 14-15, 2015  Grain & Feed Industry Conference - Embassy Suites on Monterey Bay

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
CGFA Annual Convention
Vilsack Grilled by House Ag Committee
CGFA Update on FSMA Activities
Detailed Comments on FSMA 'Feed Rule' Filed by AFIA, NGFA
Senate Finance OK's Tax Extenders
EPA "Waters of the U.S." Proposal Targeted by AFBF
InterWest Insurance Services - Agribusiness Newsletter
Beer, Liquor Makers want FSMA Exemption over DDGs
CME Wins Grain Settlement Case
USDA Will Speed Up GM Approvals
Corn Acres at Five-Year Low, Stock Up; Soybean Acres Record High, Stocks Down
Health Tip of The Week.
California Animal Nutrition Conference
CGFA Annual Convention -Sponsor and Auction Opportunities

Aloha members - there is still time to register and join us at the 90th Annual CGFA Convention.   We are facing new challenges in our markets, and coming together to network as an industry will be key to our continued success.We have lined up some outstanding speakers who will address what the future holds for agriculture and what challenges we face as an industry.

 

The CGFA Annual Convention traditionally draws attendees from across the nation. It is an essential link in bringing greater communication and stability to the grain & feed industry.   Your support and participation are invaluable in keeping our Association strong.

 

Your support and sponsorship is the key to a successful event.  Whether you would like to sponsor the Industry Social Hour or a Golf Hole or perhaps you have tickets to a sporting event or something else you would like to share -- all levels of support and contributions will be acknowledged and appreciated.

 

Vilsack Grilled by House Ag Committee; Releases Farm Bill Progress Report

Telling the House Agriculture Committee his department has made "important progress on every title of the Farm Bill this week," Secretary of Agriculture Tom Vilsack's department released its "progress on implementation" report to back up the department head.

 

House ag panel members quizzed Vilsack on when he expects to publish the new definition of "actively engaged" farmers, key to payment limitations.  He said the process was difficult, but reiterated earlier statements that the proposed definition would be published USDA will take public comment and the definition would be finalized by the end of the year.

 

Here are some highlights of the report, which can be found at www.usda.gov by clicking the "Farm Bill" icon.

 

In the commodity title, Vilsack said USDA will publish the final rule implementing the permanent livestock disaster assistance programs and begin sign-up by April 15; country and regional loan rates were announced March 28, and USDA has published notices on the extension of the Marketing Assistance Loan program; Milk Income Loss Contract (MILC); Dairy Indemnity Payment Program; non-insured Crop "Disaster Assistance Program, and the sugar program.  The Dairy Forward Pricing Program was also re-established.

 

Under the conservation title, USDA is taking applications for the Conservation Stewardship Program (CSP) and the Environmental Quality Incentives Program (EQIP).  However, Vilsack said he's not made a decision on whether he will reopen the Conservation Reserve Program (CRP) for farmer signup given the new Farm Bill lowered the cap on enrolled acres from 32 million to 27.5 million this year, 26 million in 2015, 25 million acres in 2016, and 24 million through 2018.  He said the lower caps means USDA must be pickier about acreage enrolled in the CRP.

 

USDA will announce, under its trade title authority, new funding levels for the Market Access Program (MAP) and the Foreign Market Develop (FMD) program next week.

 

The crop insurance title will produce new documents this month to revise premium rates for catastrophic coverage (CAT) based upon "the average historical 'loss ratio'" plus a "reasonable reserve."  However, even as USDA tries to get its arms around the myriad changes in the federal crop insurance program, Sens. Jeanne Shaheen (D, VT) and Tom Coburn (R, OK) introduced legislation to limit crop insurance premium subsidies to farmers at a maximum $70,000 per farm.  The two Senators said they introduced the bill because the Farm Bill is failing to produce the savings promised.  They pointed to a Government Accountability Office (GAO) report that says their bill would only affect 1.3% of crop insurance policy holders.

 
CGFA Update on FSMA Activities

CGFA recently submitted comments to the FDA on the  Food Safety Modernization Act proposed rule on "Current Good Manufacturing Practice and Hazard Analysis and Risk-Based Preventive Controls for Food for Animals."   CGFA's  Feed Manufacturing Study Group had a productive meeting and discussion  last month to address the issues and concerns that members wanted to see included in these comments.   We would like to thank the members who responded to CGFA  member action request and submitted their own company comments to the FDA.    In our  comments we stated that CGFA is supportive of the comments and recommendations of the National Grain and Feed Association (NGFA), the American Feed Industry Association (AFIA) and the National Renderers Association (NRA) and encouraged the Food and Drug Administration (FDA) to review and respond appropriately to all of our comments and recommendations. 

 

CGFA is in the process of providing members more information and access to updates on the latest information and resources concerning  FDA on the  Food Safety Modernization Act proposed rule on "Current Good Manufacturing Practice and Hazard Analysis and Risk-Based Preventive Controls for Food for Animals."     Our website is being updated to provide a resource page and will be available by the end of the month.

 
Detailed Comments on FSMA 'Feed Rule' Filed by AFIA, NGFA

"Highly prescriptive" comments on FDA's proposed rule on how the feed and pet food industries will comply with the new Food Safety Modernization Act (FSMA) were filed this week by the American Feed Industry Assn. (AFIA) and the National Grain & Feed Assn. (NGFA). California Grain & Feed Association and nearly 20 other state feed and grain organizations signed on to the formal filings, which totaled over 100 pages each.

 

Both groups focused on FSMA statutory language instructing FDA to ensure the rules on how the feed industry must comply with new risk-identification and mitigation requirements are significantly different than the human food rule.  

 

"AFIA is concerned that FDA has failed to clearly delineate the human food rules from the animal food rules as Congress intended," the feed group's comments said.  AFIA went on to say while there may be two different rules, both "are philosophically driven by the human food approach."

 

NGFA took the agency to task for repealing the word "contamination" throughout the rule. NGFA said FDA's regulations can't "rightfully focus on preventing 'contamination,'" and recommended the agency replace it with the world "adulteration," which has legal meaning within FDA's authority.

 

FSMA calls for Current Good Manufacturing Practices (CGMPs), which currently only exist for medicated feed mills.  AFIA, pointing out the proposed feed rule bases new CGMPs on the human food rule equivalent, wants FDA to go back and rewrite its animal food requirements to be "more practical and less prescriptive," allowing members to be more innovative and give companies which have never operated under CGMPs a better understanding of the system.  

 

NGFA pointed out the feed rule contains what looks a lot like a formal prescribed Hazard Analysis Critical Control Points (HACCP) program requirement, something Congress explicitly rejected.  "While the NGFA supports the use of prudent, appropriate and risk-based practices to assure the safety of animal feed and pet food, we strongly believe FDA's proposed preventive controls regulation is clearly not aligned with the intent of Congress," the group said.

 

Both groups called on FDA to adjust the compliance dates so CGMPs can be phased in, and preventive controls can follow.

 
Senate Finance OK's Tax Extenders; Ag Committee to hold Advanced Fuels Hearing

Over 55 "temporary" federal tax credits and deductions benefitting industry and individuals broadly and which expired at the end of last year were re-extended this week by the Senate Finance Committee.  These "extenders" have a history of one-year extensions, but the committee opted to give most of them a two-year renewal, setting them up as part of the next Congress' battle over comprehensive federal tax reform.

 

The bill also includes a "deadwood" provision which eliminated several obsolete or inactive tax programs.  There's no word on when the bill will be heard on the Senate floor.

 

Included in the package are several tax credits designed to support the growing biofuels industry.  Extended for two years are the $1-per-gallon biodiesel and renewable diesel blenders' tax credits; "second generation" tax breaks for process and infrastructure for cellulosic ethanol producers, and the alternative fuel mixture tax credit, which give companies a 50-cent-a-gallon excise tax liability break for burning their own byproducts in lieu of diesel.

 

In a related development, Sen. Debbie Stabenow (D, MI), chair of the Senate Agriculture Committee, announced her panel will hold an April 8 hearing on advanced biofuels, entitled "Advanced Biofuels: Creating Jobs and Lower Prices at the Pump."  Witnesses scheduled include Dupont Industrial Biosciences; the Advanced Ethanol Council; Strategic Biomass Solutions, and Airlines for America.

Finance Committee Chair Ron Wyden (D, OR) said this bill "was the last tax extenders bill we'll take up, at least as long as I sit in this chair."  He said passing the extenders package "puts an expiration date on the status quo (and) builds a bridge to tax reform." His counterpart in the House, Rep. Dave Camp (R, MI), plans to hold hearings on his extenders package next week. Camp's plan is to try and make the extenders permanent, but his goal is the same - comprehensive tax reform.

 

The biggest battle during the markup came when supporters of wind energy tax breaks tried to get wind and solar power included in the production tax credit (PTC) and ultimately failed.  Sen. Patrick Toomey (R, PA) offered an amendment to kill the PTC for wind and solar and eliminating other tax credits for various energy products, including biofuels. He argued - as several others on both sides of the Hill have argued - the package unfairly gives some energy producers assistance while ignoring others.  Sen. Chuck Grassley (R, IA) called the Toomey amendment "intellectually dishonest" because the "100-year-old oil and gas industry continues to benefit from (tax) preferences that benefit only their industry."

 

Ag groups whose members are involved in biofuels production, including the American Soybean Assn. (ASA) and the National Renderers Assn. (NRA), thanked Wyden and committee ranking member Sen. Orrin Hatch (R, UT) for their bipartisan support for the biofuels industry based on their inclusion of the energy extenders.
 
EPA "Waters of the U.S." Proposal Targeted by AFBF

EPA's proposed expansion of authority to regulate water under the Clean Water Act (CWA) definition of "waters of the U.S.," is running into the predictable push-back from agriculture, with the American Farm Bureau Federation (AFBF) this week announcing it will fight the rule going final.

 

In a related development, EPA announced this week its Science Advisory Board (SAB) will hold two teleconferences - April 28 and May 2 - on the proposed authority expansion.  The SAB, made up of independent third party experts, will discuss and take questions on the draft advisory report - and the underlying science - provided to EPA on the proposed rule. The likely reason the SAB is holding the calls is because critics of the proposed jurisdiction rule contend the SAB had not completed the evaluation of all relevant science before EPA published its proposal.  Details on how to participate in these calls can be found at www.epa.gov.

 

AFBF said its analysis of the EPA proposal found the rule "dismaying," and if finalized would "be an end run around the limits set by Congress and the Supreme Court." AFBF President Bob Stallman called the rulemaking a "serious threat to farmers, ranchers and other landowners."

 

"Under EPA's proposed new rule, waters - even ditches - are regulated even if they are miles from the nearest 'navigable' waters.  Indeed, so-called 'waters' are regulated even if they aren't wet most of the time," Stallman said in a statement.

 

Secretary of Agriculture Tom Vilsack, appearing before the House Agriculture Committee this week, was grilled on the EPA action.  Rep. David Scott (D, GA) questioned the lack of certainty farmers have in running their farms, not knowing what eventually may be defined as a "navigable water" under EPA authority.  Vilsack repeated last week's talking points when EPA published its proposal, saying the agency reaffirms several permitting exemptions for agriculture. 

 
InterWest Insurance Services - Agribusiness Newsletter


Welcome to InterWest Insurance Services - Agribusiness Newsletter. This monthly publication is designed to share industry updates, InterWest news and current & upcoming events. 

Sent to you courtesy of:

Mike Taylor
925-977-4104
mtaylor@iwins.com
CA License Number 0B01094
InterWest Insurance Services, Inc.



 

Beer, Liquor Makers want FSMA Exemption over DDGs

 

The "centuries-old" practice by beer makers and liquor distillers of giving away or selling at a very low price the "spent grains" from their manufacturing process should be exempted from the animal feed rule proposed by FDA under the Food Safety Modernization Act (FSMA).  The alcohol refiners said this week that by giving away or selling cheaply the spent grains, they're helping farmers by providing the byproduct as animal feed. They said the product does not present a food safety risk.

 

The beer and liquor industries intensely lobbied Congress, seeking support for the exemption demand. They contend FDA is trying to get at ethanol refiners when it includes dried distillers grains (DDGs) in the FSMA proposed rule because some ethanol makers use antibiotics to assist the distilling process.

 

FDA Commissioner Margaret Hamburg, M.D., was hit full bore by members of the Senate Appropriations Committee subcommittee on Agriculture/FDA during her testimony this week.  She said she was unaware of the spent grains practice and would go back to the agency and discuss it with the Center for Veterinary Medicine (CVM) which regulates the feed industry. She added the feed rule is under "evaluation" and a publication later this spring of a revised rule is planned.

 

CME Wins Grain Settlement Case

The CME Group's rule that includes factoring in electronic trading when settling end-of-day grain futures contracts can stand, according to a judge on the Cook County Circuit Court in Illinois.  Some traders, mostly those who trade in open-outcry pits at the Chicago Board of Trade (CBOT) - owned by CME Group - challenged the rule to force CME to revise end-of-day calculation of settlement prices on grain contracts. Before CME included electronic trading in its calculations, the contract price was settled based on trading in the various commodity pits. Electronic trading, open-outcry traders allege, has cost them business and made the pits "largely irrelevant."

 
USDA Will Speed Up GM Approvals

USDA's Animal & Plant Health Inspection Service (APHIS) will reduce the backlog of genetically modified plant traits awaiting deregulation at the agency, the department said this week.

 

Ed Avalos, undersecretary for marketing and regulatory programs, told the House ag/FDA appropriations subcommittee he's working to reduce the backlog, but does not want to move too fast.  Kevin Shea, head of APHIS supported his boss, saying APHIS is committed to reducing approval times, but "we don't want to deregulate too soon and then get sued.  We want to be careful. We need to get this right."

 

APHIS has cut the backlog from 23 pending applications to 16 by changing its petition and approval process, Shea said, reducing the review time from 36 to 22 months per application.

 
Corn Acres at Five-Year Low, Stock Up; Soybean Acres Record High, Stocks Down

 

USDA reported this week acreage planted to corn this season sits at 91.7 million acres, down 4% from last year. If realized, this acreage represents a five-year low, but the fifth largest area planted to corn since 1944.  

 

Soybeans, on the other hand, have been planted on 81.5 million acres, a record and 6% higher than last year.  With the exception of Missouri and Oklahoma, all states reported higher soybean acreage.

Corn stocks in all positions as of March 1, were set by the department at 7.01 billion bushels, up a whopping 30% from last year's March 1 report. Soybeans in all positions were reported at 992 million bushels, down 1% from last year on March 1. 

 
Health Tip of The Week

7 Ways To Get Fit in Half The Time

By Jeremey DuVall for Life by DailyBurn

 

 

Don't have time for the gym? You're probably not the only one. Lack of time is one of the top reasons most individuals skip out on their sweat session. Despite the numerous benefits like reduced stress and improved mood, workouts often get moved to the back burner, replaced by chores and errands. Between packing a bag, driving to the gym and actually getting moving, workouts seem to take a large chunk of time. But with the proper tactics, it's more than possible to get an effective workout in a short amount of time. Rather than skipping out on a workout when running short on time, use the following tips to get in and out of the gym in 45 minutes or less.

 

Time-Saving Workout Tips

 

1. Try superset exercises.

Supersets are one of the oldest tricks in the book -- because they work. By performing two exercises back-to-back, lifters can not only get a workout done in a shorter amount of time, but they can also bump up the amount of calories they burn. To maintain a high intensity and get the most out of pairing exercises back-to-back, alternate between upper and lower body movements. That way, one muscle group is always recovering while the other is working.

 

 

(source: Huffpost Healthy Living)

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California Animal Nutrition Conference

   

Chairman Jeffrey DeFrain, Ph.D., DPL ACAS-Nutrition  is please to announce the 2014 CANC will be held at the Radisson Hotel & Conference Center located at 2233 Ventura Street in downtown Fresno on May 14 & 15, 2014.  The registration fee is $150.00 (pre-registered) or $200.00 (after May 5, 2014).  The fee will be refunded in full if notification is received by May 5, 2014.  The registration fee includes one copy of the conference proceedings, lunch and entry to the industry social hour and dinner on May 14th, and breakfast and lunch on May 15th.  The registration fee for students is $50.00.  The fee includes one copy of the proceedings, lunch and entry to the industry social hour and dinner on May 14th and breakfast and lunch on May 15th.  Those who require hotel accommodations should make their own reservations.  A number of rooms have been blocked at the Radisson Hotel & Conference Center at a reduced rate of $118.00.  The hotel phone number is (559) 268-1000.  Reservations must be made by April 22, 2014 to receive the reduced rate.

 

Following the Technical Symposium sponsored by Elanco Animal Health on Wednesday, the CANC Committee, along with major industry firms, will sponsor the Animal Nutrition Conference.  A poster session displaying the results of research conducted by the universities will be on display throughout the conference.  Awards will be presented to the winners on Thursday.  Please stop by and view the posters.