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Conveyor Currents                                 August 1, 2014
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2014

September 18, 2014 - CGFA North Bay District Meeting & Golf Tournament  
2015
 
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2016

April 27-30, 2016  CGFA Annual Convention - The Manchester Grand Hyatt San Diego


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In This Issue
OSHA, with Ag Approval, Clarifies "Small Farm," "Grain Dealer" Enforcement Powers
Congress Must Take 5 ½-Week Summer Recess
White House Rolls Out Climate Change "Food Resilience" Initiative
Governor Leads Trade Mission to Mexico; CalChamber Organizes July 27-30 Trip
Stabenow Leads Senate Democrats in Calling for EPA Action on WOTUS
EPA to Try and "Clarify" No USDA Reg Role in WOTUS
Animal Food Preventive Control Rule and Other FSMA Rules to be Reissued Soon
Senators Want More Information on FDA/Industry Feed Antibiotics Cooperative Effort
Port of Vancouver FGIS Review Underway, says USDA
USDA Starts Supplemental Crop Insurance Option
OSHA, With Ag Approval, Clarifies "Small Farm," "Grain Dealer" Enforcement Powers

 

A Department of Labor (DOL) memo this week - approved by several agriculture groups asked to review it - "clarifies OSHA's longstanding position" on the limits of its authority to conduct enforcement activities on small farms. The memo is also meant to replace a 2011 version OSHA admitted contained "some confusing language."

 

The clarification is needed, DOL says, because since 1976, congressional appropriations bill language has barred OSHA from spending money to conduct any enforcement activities on farms with 10 or fewer non-family employees. OSHA, however, surprised industry several months ago by trying to exercise enforcement authority over small farms storing grain or selling stored grain off the farm, considering them "grain dealers" for the purposes of agency rules.

 

However, this week's memo lists among the agency's definition of a farming operation, "Crop farming operation activities include preparing the ground, sowing seeds, watering, weeding, spraying, harvesting, and all related activities necessary for these operations, such as storing, fumigating and drying crops grown on the farm."

 

"An exempt farm would not become subject to OSHA enforcement simply because, for example, it stores its own grain on the farm or sells that grain from the farm. Onsite storage or sale of grain would constitute a 'related activity' under OSHA's interpretation of 'farming operation' because it is necessary to gain economic value from grain grown on the farm," the memo says.

 

The memo further clarifies that if a "small farm" maintains a grain handling operation that stores and sells grain grown on other farms, it is not exempt. Further, pressing cider from apples, making "baby carrots" from large carrots or milling grain into flour to make baked goods are all examples, OSHA says, of activities that bring the farm under its enforcement power as a commercial "food processing/manufacturing" facility.

 

Congress Must Take 5 �-Week Summer Recess

Where Issues Stand

 

The Senate is in recess, but the House continues to try and get agreement on some kind of emergency spending bill aimed at the immigration border crisis in Texas. In true congressional style, both chambers crashed through a number of issues - some successfully, some not. Here's the status of some key legislation as of this writing:

 

Border Supplemental Spending Bill Punted to September - Short of a procedural miracle, an emergency supplemental spending bill to deal with the flood of illegal aliens crossing the Texas border will not see the President's desk until September at the earliest. The Senate recessed last night, but the House was the center of procedural drama as its $659-million package was suddenly pulled from the floor this week when it was apparent it lacked the votes for approval. Delaying its August recess by a day, the House GOP is regrouping around a bill that will be "tweaked" to increase sanctions on illegal immigrants, as well as a commitment from House leadership to vote on a separate measure to bar any "administrative amnesty" measures, including the President's announced plan to further delay deportations of undocumented workers already in custody. Funding only the security portion of the President's original $3.7-billion border request, a House vote on the bill appeases House members who say it's irresponsible and politically untenable to leave town without acting on the immigration crisis. The Senate, pushing a $3.6-billion package including money for USDA wildfire efforts and aid to Israel, fell apart late this week on a budget point order, with all Republicans and two Democrats voting to stop the bill. Further, Senate Majority Leader Harry Reid (D, NV) again foreclosed on any amendments in an effort to thwart GOP efforts to amend a 2007 human trafficking law as part of the border supplemental. This leaves USDA without its wildfire money and Israel without aid for its "Iron Dome" defense system. The likelihood now is that the emergency border supplemental could get tacked on to the continuing resolution expected in early September to keep the government running through FY2015.

 

Pesticide Permitting Bill H.R. 935 Passes House on Second Try - After failing to get the necessary two-thirds majority vote on Monday to pass the bill under suspension of the rules, the House approved H.R. 935 on Thursday. The bill would reverse an EPA rulemaking on pesticide permitting. The bill seeks to roll back what it sees as dual permitting requirements on pesticide applications on or near water, allowing pesticide applicators to avoid NPDES permitting if the pesticide is already registered under FIFRA. The bill was approved when 37 Democrats from farm states joined the GOP in voting for the bill. But, as has been the case for the last four years, the remedy likely will not see Senate action.

 

 

White House Rolls Out Climate Change "Food Resilience" Initiative

As part of his Climate Data Initiative to recognize climate change and help the nation adapt, this week President Obama unveiled the "Food Resilience" component of the overall program, action "empowering America's agricultural sector and strengthening the resilience of the global food system in a changing climate."

 

The program is supposed to connect producers, processors, and agribusiness with "data, tools and information" available through the federal government to deal with the climate change phenomena, including: "more intense heat waves, heavier downpours and severe drought and wildfires out West," so they can see the potential impacts and take action to mitigate changes.

 

The American Farm Bureau Federation (AFBF), while not dismissing the effort, said climate fluctuations could be the result of natural climate cycles; GOP members of Congress called the initiative a "gimmick" to justify the Obama Administration's regulatory agenda.

 

The initiative includes the following program actions, according to a White House fact sheet (http://www.whitehouse.gov/briefing-room/statements-and-releases):

  • White House meetings for food companies and technology leaders to share ways to mine federal data sources. This week, the White House invited a number of multinational food companies to a meeting to discuss the initiative. Among the companies invited were Coca-Cola, Mars, Inc., Monsanto, Nestle USA, the Kellogg Co., and Walmart, with these companies expected to announce "commitments" to the effort;
  • New features on www.climate.data.gov, including expansion of the site to include more accessible data;
  • Hosting "agriculture innovation workshops," for beginning farmers, "open data," and discussions with international partners;
  • "Private sector commitments," including a "principles for responsible investment" made up of five European investor groups to "address risks from climate change to companies with agricultural supply chains" and will include 50 companies with which the investor group will have "constructive dialogues;"
  • A series of workshops and webinars hosted by Microsoft;
  • A commitment by the U.S. dairy industry to use the Innovation Center for U.S. Dairy to conduct research and test four new "Farm Smart" modules on energy, feed, nutrients and herd management by the end of 2014, and
  • Eight more pages listing 27 public and private commitments to help educate and provide information on how the ag and food systems can best cope with climate change.

 

Governor Leads Trade Mission to Mexico; CalChamber Organizes July 27-30 Trip

Governor Edmund G. Brown Jr. returned this week from a successful four-day mission to Mexico, organized by the California Chamber of Commerce with the help of the California Foundation for Commerce and Education.

 

The July 27-30 mission was a reminder of the longstanding historical, cultural and commercial ties between California and Mexico, the state's largest export partner.

 

The Governor's schedule included high-level meetings with government officials, including Mexico President Enrique Pe�a Nieto, the Mexico Secretary of Foreign Affairs and representatives of the ministries of environment and natural resources, education, energy and economy.

 

Traveling with the Governor was a 150-member delegation, including CalChamber President and CEO Allan Zaremberg, Vice President of International Affairs Susanne T. Stirling (who spearheaded the organization efforts) and foundation Treasurer Larry Dicke, CalChamber executive vice president, finance and CFO.

 

The diverse delegation also included members of the Governor's Cabinet, legislators, and business, economic development, investment and policy leaders.

 

Full coverage of the daily activities of business delegates, including photos and news links, appears on the CalChamber blog site at http://california-mexicomission.calchamber.com.

 

First Lady Anne Gust Brown and California Governor Edmund G. Brown Jr. meet with Mexico President Enrique Pe�a Nieto on the first full day of the trade mission.
Photo by Justin Short, Office of the Governor.

 

Stabenow Leads Senate Democrats in Calling for EPA Action on WOTUS, Wants Farmer "Certainty"

Sen. Debbie Stabenow (D, MI), chair of the Senate Agriculture Committee, this week garnered the support of 12 Senate Democrat colleagues on a letter to EPA, the U.S. Army Corps of Engineers and USDA urging them to provide farmers and ranchers "more certainty" as to how the three government entities will operate under EPA's "waters of the U.S." (WOTUS) rulemaking.

 

The Michigan lawmaker said stakeholder concerns with the WOTUS rulemaking and EPA's continuing dismissal of those concerns argue the agencies must provide greater clarity and assurances to ensure WOTUS and the agency's guidance on farm exemptions "don't have unintended effects on agriculture and on critical conservation efforts."

 

"Voluntary conservation practices supported by USDA and expanded in the 2014 Farm Bill are the federal government's largest investment in the conservation of private working lands and critical to sustaining clean water, clean air, wildlife habitat and other benefits," the Senate letter says. "The proposed 'waters of the U.S.' rule and the interpretive rule could undermine progress made in the 2014 Farm Bill if they create an atmosphere of uncertainty that results in fewer conservation practices or significant new burdens for our nation's farmers and ranchers."

 

The letter was signed by Sen. Patrick Leahy (D, VT); Sen. Tom Harkin (D, IA); Sen. Kay Hagan (D, NC); Sen. Al Franken (D, MN); Sen. Amy Klobuchar (D, MN); Sen. Tim Johnson (D, SD); Sen. Jeanne Shaheen (D, NH); Sen. Sherrod Brown (D, OH); Sen. Tammy Baldwin (D, WI); Sen. Bob Casey (D, PA); Sen. Mark Warner (D, VA), and Sen. Michael Bennett (D, CO).

 

 

EPA to Try and "Clarify" No USDA Reg Role in WOTUS

 

The Administration this week said it will take steps to "clarify" again that USDA's Natural Resources Conservation Service (NRCS) will have no regulatory role if EPA is successful in expanding its Clean Water Act (CWA) authority to include all "waters of the U.S." (WOTUS).

 

EPA has been talking to NRCS and "other stakeholders" in the wake of criticism of its "interpretive rule" on how the rule will work for farmers and ranchers. These groups have strongly complained that the rule, issued along with the EPA's WOTUS rulemaking, while carrying 56 exemptions for farm practices, will require additional oversight or enforcement by NRCS if farmers are utilizing USDA conservation practices. The agency said during an American Soybean Assn. (ASA) webinar on the WOTUS rulemaking that its talks have led to the decision to issue "some clarification," but EPA was not specific, save for a comment that a new Q/A document was forthcoming.

 

Animal Food Preventive Control Rule and Other FSMA Rules to be Reissued Soon

 

While meeting with the American Feed Industry Association's Feed Regulatory Committee last week, Dr. Daniel McChesney, Director of Surveillance and Compliance at the U.S. Food and Drug Administration's Center for Veterinary Medicine, informed the committee that the reproposed rules regarding the Food Safety Modernization Act should be published in the next few weeks. In fact, the following proposed rules are all under review by the Office of Management and Budget: produce safety, preventive controls for human food, preventive controls for animal food and the foreign supplier verification program.

 

Specifically on the animal food rule, AFIA was informed that the following would be covered in the reproposal for additional comment and feedback by the industry:

  • Current Good Manufacturing Practices (CGMPs);
  • Revised definitions of: farm, holding, packing and very small business;
  • Integrated farming operations with feed mills and how they should be covered in the regulation;
  • Co-products from human food and distillers/breweries;
  • Supplier verification;
  • Product testing; and
  • Environmental monitoring.

McChesney said FDA took almost all the CMGP section comments/changes submitted by industry. AFIA participated in a coalition of feed associations that filed very similar comments to the CGMP section. He also said that the entire set of rules will be published with the new changes, and FDA will be asking for comments on the changed section, but that we could make comments to any section. A 60 to 75 day comment period is expected, and AFIA will look to our FSMA work groups to help review and provide feedback on the revised proposed rule.

 

AFIA is particularly concerned about any additional costs that might be added to the already high cost burden of the previously published proposed rules. One industry study said the costs were five times higher than FDA's announced costs. Moreover, FDA did not perform a cost/benefit analysis, as required by the Administrative Procedures Act and will hopefully provide one in this new set of proposed rules. 

 

A study by the Mercatus Center at George Mason University said the maximum benefits were estimated to be $30 million per year compared with FDA's estimate of $87 million to $129 million in costs to the industry annually. Previously, FDA reported that OMB removed three costly sections of the proposed rules they received in 2012, and these are likely the sections FDA is adding back to the newly-constructed proposed rule that will publish soon. 

 

Please contact Richard Sellers, AFIA senior vice president of legislative and regulatory affairs, at (703) 558-3569 if you have any questions.

 

 

Senators Want More Information on FDA/Industry Feed Antibiotics Cooperative Effort

 

Saying the FDA cooperative effort with industry to limit and insert veterinary oversight on the use of antibiotics in livestock feed "doesn't go far enough," Sen. Elizabeth Warren (D, MA), Sen. Dianne Feinstein (D, CA) and Sen. Kirsten Gillibrand (D, NY) wrote this week to FDA Commissioner Margaret Hamburg, MD, seeking information on how the agency will evaluate the success of its current efforts and what it plans to do if those efforts fail in "curbing the overuse of antibiotics in food animal production."

 

Praising FDA's move to eliminate antibiotic label claims for feed efficiency and growth promotion, they wrote, "We remain concerned that many of the remaining approved uses of antibiotics to contain and prevent disease are not strictly defined, and still allow for the continuous administration of low doses of antibiotics." As to the use of the Veterinary Feed Directive (VFD) through veterinary oversight in using the products in feed and water, the three Senators told Hamburg again they don't like the ongoing low-dose use of the medicines.

 

The Senators want Hamburg to tell them how FDA will know if "non-judicious" uses of antibiotics in ag decline or "simply continue under disease prevention and containment labels;" if no change in overall use occurs, what steps will the agency take to address "the public health threat?"; what will FDA do to ensure labeling does not pose "the same risks of fostering resistance" as feed efficiency/growth promotion uses?"; what is the agency's plan for completing facility inspections to ensure proper collection and enforcement of VFDs, and are additional resources needed?, and how will FDA collect and compile data from VFDs to "better track how specific antibiotics are being used in different types of animals"?

 

Port of Vancouver FGIS Review Underway, says USDA

 

After the National Grain & Feed Assn. (NGFA) and 22 state and national organizations with a vested interest in smooth operations of federal grain-for-export weighing and grading at the Port of Vancouver complained, USDA acknowledged this week it is reviewing the shutdown, but can't comment on possible actions because the review is not complete. USDA told the Hagstrom Report this week it hopes to have a response to NGFA and the other organizations within a week.

 

USDA Starts Supplemental Crop Insurance Option

 

The new federal crop insurance Supplemental Coverage Option (SCO) authorized in the 2014 Farm Bill is now available for 2015 crop year corn, cotton, grain sorghum, rice, soybeans, spring barley, spring wheat and winter wheat in certain counties. The new policy endorsement operates on a county level and is additive to existing crop insurance, the department said, and will cover that part of a loss not covered by the crop's overriding crop insurance policy.

 

If a producer decides to participate in the agricultural risk coverage (ARC) option for risk protection, they're not eligible for the SCO option on farms and or crops enrolled under ARC. However, if a farmer wants to sign up 2015 winter wheat, and has chosen or intends to choose ARC, the producer is allowed to withdraw coverage without penalty by notifying USDA by the acreage reporting date or December 15, whichever is earlier. This allows a more informed decision on whether to opt for the ARC coverage or sign up for Price Loss Coverage (PLC) programs for winter wheat. Details are available at www.usda.gov.