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Conveyor Currents            August 28, 2015
In This Issue
CGFA District Meeting: October 12th
FDA Feed FSMA Rule Due Any Day; Lawmakers want Help for Industry on October Produce Rule
U.S. Ethanol Exports Climbing
California Legislative Update
2015 Farm Income Dropping to Lowest since 2002
ND Federal Judge Blocks WOTUS in 13 States; EPA Says it will Enforce for Rest of Country
Organic Food Recalls Spiking
White House Owns up to Immigration Order Breaches; Judge Wants Ideas on Penalties
USDA Sued for Allegedly Violating FOIA, "Withholding" GM Crop Information
Agriculture Energies Group Invests $3 Million to Support Renewable Energy Irrigation Well Projects
CGFA Careers Center
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2016

October 12: CGFA Day At The Races Fresno

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January 13-14, 2016: 

Grain & Feed Industry Conference

The Embassy Suites on Monterey Bay

April 27-30, 2016:

CGFA Annual Convention The Manchester Grand Hyatt San Diego 

 

May 4-5, 2016

 California Animal Nutrition Conference at the DoubleTree by Hilton Fresno Convention Center      

Fresno, CA 

 

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CGFA District Meeting: October 12th Day At The Races
Pleas join California Grain & Feed Association on
Monday, October 12, 2015
 The Big Fresno Fair in Fresno, CA at the Races
 
Live horse racing is back in the Brian I. Tatarian Grandstand at The Big Fresno Fair, with plenty of hoof-pounding action!  Don't miss the excitement of live horse racing; it's only here once a year. Your registration includes admission to the fair and an air conditioned seat at the exclusive Turf Club. Dinner will be on your own after the races - some may want to stay at the fair and enjoy the other activities and others may want to head out after the races - we'll leave that to you.
 
Win, Place or Show - You Will Want To Be There!!  
Meet the group at 23:30 PM - Post Time is 1:15 PM- Limit First 40
 
QUESTIONS? Call us at (916) 441-2272 
Email Donna Boggs  [email protected] 
Email Nicole Dominguez  [email protected]

[Click here to register]


FDA Feed FSMA Rule Due Any Day; Lawmakers want Help for Industry on October Produce Rule
FDA's final rule on preventive controls for the feed and pet food industries - as well as that rule's human foods equivalent - are due to be published any day, as the agency meets a court-ordered August 30 deadline. 
 
In addition to the human food preventive rule, a separate rule governing for the first time how produce farmers operate, due in about 60 days, is getting serious attention from a handful of Democrat lawmakers, who are pushing the agency to set up "technical assistance" and "training programs" to help small farmers, producers and fruit and vegetable wholesalers comply with the contamination prevention rules.
 
Citing "confusion and misinformation that is already circulating," Democrat lawmakers in the House and Senate in a letter to FDA said their concern is not only for the produce-specific rule, but the preventive controls rule for human food. 
 
"Small farmers will need time, training and relationships with regulators in order to effectively navigate the new guidelines," they wrote. "Many small farms are diverse and have multiple profit centers...[and] while we understand the [produce] preventive controls rule is still being developed, we feel strongly that the final rule provide clarity on what qualifies as a 'facility' and what farmers must do to ensure compliance."
 
The preventive control rules for both food and feed will require companies to conduct detailed risk analyses, development of detailed hazard identification plans with control contingencies, increased recordkeeping, and special treatment of small businesses.  Larger companies will have one year to comply; businesses with less than 500 employees will have two years, and "very small" businesses will have three years to meet the rule.
 
U.S. Ethanol Exports Climbing
A joint USDA-industry ethanol export promotion effort will yield 2014-2015 ethanol exports of around 850 million gallons, up from 768 million gallons exported last year, and valued at nearly $2 billion, the U.S Grains Council (USGC), a promotion program participant, said last week.  Besides USDA's Foreign Agricultural Service (FAS) and USGC, the export program partners are Growth Energy and the Renewable Fuels Assn. (RFA).

Ethanol marketing this year is expected to see the second largest export number on record, USGC said, and for the first 10 months global ethanol exports posted an 11% gain over a year earlier.  The Council said while exports to Canada, the U.S.'s largest customer, are down 26% by volume, all other markets for U.S. ethanol have posted increases based on demand and U.S. pricing.

Brazil and the Philippines, the second and third largest importers, showed 71% and 44% increases in demand, respectively.  Other markets with significant growth are Korea, Mexico, the European Union (EU) and Tunisia, with Korea alone increasing its purchases by 92% for industrial purposes. 
 
California Legislative Update 
By Dennis Albiani, Legislative Advocate 
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Appropriations Slows Some Bills, Others Progress

As the sprint to the end of the Legislative year begins, the leaders of the Assembly and Senate have one last opportunity to manage the bills in the Appropriations Suspense file.  On Thursday, leaders held several high profile bills in committee, essentially ending the bills progress for this year.  Of the 400 bills on suspense in both houses, almost 300 were voted out and a little over 100 held.

Of the bills not making it out were two key labor bills.  SB 3 (Leno) and  AB 20 (Alejo)  created a five dollar increase in the minimum wage and a unique legislative attempt, AB 20 (Alejo) created a guest worker program for agriculture workers living in California illegally. SB 3 was opposed by agriculture and AB 20 was supported.    

A host of bills that were seeking funds from the Global Greenhouse Gas Emission Reduction Fund (Cap and Trade) program were supported by ag and were held in Committee.  AB 590 (Dahle) which is seeking funds for biomass plants and two bills that were attempting to implement the Governor's "Healthy Soils Initiative" AB 367 (Wolk) and AB 761 (Levine) were all held in committee.  Attempts to secure funding for these programs continue in the bills appropriating funds from the account.

Controversial energy bills were voted out of committee after the chair recognized that "even though these bills will be significantly and substantively amended in the coming week we are voting them out of committee."  SB 350 (de Leon) which will mandate a 50% electricity Renewable Portfolio Standard, 50% more efficient buildings and 50% reduction in fossil fuel consumption by 2030 passed committee as did SB 32 (Pavley) which creates an interim GHG reduction mandate of 40% by 2030. 

The legislation session has two more weeks and will wrap up on September 11. 

Ag Bills Pass Legislature

A host of ag industry specific legislation continues to progress through the process, some being sent to the Governor's office.  For livestock producers, two key bills that would further manage the manner in which livestock producers use antibiotics have both progressed past major legislative hurdles.  SB 27 (Hill) is a measure that has been heavily negotiated by agriculture and will make measureable changes to antibiotic sales, tracking and stewardship passed the Assembly Committee without major amendments.  The bill is opposed by environmental and consumer groups saying the regulations do not go far enough. SB 770 (Mendoza) sponsored by the California Grain and Feed Association, which would ensure that the medicated feed program remain at CDFA passed both houses and is headed to the Governor. 

AB 689 (Dodd) which will increase enforcement of the Shell Egg Program and provide additional tools to the County Ag Commissioners passed off the Senate floor and AB 264 (Dahle) which makes significant reforms to the Seed program was sent to the Governor on a unanimous vote this week.   

2015 Farm Income Dropping to Lowest since 2002
Net farm income will be $58.3 billion in 2015, down 36% from 2014, 53% off the record $123.9 billion in 2013, and the lowest since 2002 when inflation adjusted, USDA said last week.  The department delivered this sober message as it forecast 2015 profits across all farm operations will drop for the second straight year.  Net cash income is forecast at $100.3 billion, off 21% from 2014.  All is blamed on "lower crop and livestock receipts," leading to government payments to producers from all programs projected to rise 16% to $11.4 billion.

As retrenchment continues, farm input suppliers and processors are feeling the drop in sales.  USDA says farm expenses will decline only about 0.5%, as labor costs and increased interest and taxes offset lower prices for feed, fuel and fertilizer, the department said. 

Crop returns are expected to decrease to $12.9 billion, led by a $7.1-billion drop in corn receipts, $3.4 billion soybean returns and $1.6 billion wheat receipts compared to 2014.  Livestock receipts will drop by $19.4 billion, down 9.1% from 2014, mainly on lower milk and hog prices, USDA said.
The livestock sector, while down, benefited from its access to varied markets.  However, dairy producers are "squeezed," says USDA, due to a strong dollar, lower exports, higher imports, flat domestic demand and production running about 1% over last year.  Grain and alfalfa prices generally are lower this year, with USDA estimating dairy producers are looking at feed costs of about $12 cwt. of milk produced, down $4 from last year at this time.  
ND Federal Judge Blocks WOTUS in 13 States; EPA Says it will Enforce for Rest of Country
A federal judge late August 27 blocked EPA's controversial "waters of the U.S. (WOTUS)" rulemaking, just hours before the rule was to take effect, a partial victory for opponents as the federal court preliminary injunction applies only to the 13 states which joined in filing for the order. Two other requests for preliminary injunctions sought in District Courts in Georgia and West Virginia were denied. 
 
The Administration immediately announced the rule will take effect in all other states on August 28 as scheduled.  The states where the preliminary injunction is in force and the rule is blocked are Arkansas, Alaska, Arizona, Colorado, Idaho, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota and Wyoming.  EPA said, "In all other respects, the rule is effective on August 28.  The agencies are evaluating these orders and considering next steps in the litigation."
 
The August 27 order came after the North Dakota attorney general last week argued the rule should be held in abeyance until the court decides on a federal law suit challenging the rule file by North Dakota and several states.  More than 24 states and a dozen organizations have filed federal suits in various jurisdictions to block the WOTUS rule, which EPA calls its "Clean Water Rule."  EPA has asked all suits be consolidated into a single case to be heard by the U.S. Court of Appeals for Washington, DC, a move strongly opposed by the states and industry groups.  However, the federal judges in Georgia and West Virginia agreed with EPA in denying preliminary injunctions. 
 
Judge Ralph R. Erickson, writing for the U.S. District Court in North Dakota, said, "...the States are likely to succeed on their claim because (1) it appears likely that the EPA has violated its congressional grant of authority in its promulgation of the rule at issue, and (2) it appears likely the EPA failed to comply with APA (Administrative Procedures Act) requirements when promulgating the rule.  Additionally, the court finds the other factors relevant to the inquiry weigh in favor of an injunction."
 
"Once the rule takes effect, the states will lose their sovereignty over intrastate waters that will then be subject to the scope of the Clean Water Act," Erickson said, also referring to the scope of the rule, adding the "exact amount of land that would be subject to the increase is hotly disputed."
 
"On balance, the harms favor the states.  The risk of irreparable harm to the states is both imminent and likely," Erickson wrote.  "More importantly, delaying the rule will cause the agencies no appreciable harm.  Delaying implementation to allow a full and final resolution on the merits is in the best interests of the public. "
 
EPA Administrator Gina McCarthy says the final WOTUS "will make it easier to identify protected waters and will make those protections consistent with the law as well as the latest peer-reviewed science."  She also stressed there will be no new permitting requirements for agriculture under the final rule, and reiterated all current agriculture and farming exemptions from Clean Water Act (CWA) permitting will remain in effect. "The rule does not add new requirements for agriculture," McCarthy said.
 
Opponents, including most of agriculture and agribusiness, say the rule is regulatory overreach, threatens private property rights and will allow EPA to impose new permitting to regulate just about any body of water in the U.S., even those which present themselves only occasionally.  Groups representing state and local officials oppose the rule because they say EPA did not adequately consult with them in developing the rule, and as written, the rule threatens state and local authorities.  Dozens of members of Congress from both sides of the aisle and both chambers have called on EPA to withdraw the rule and reissue it after greater outreach to stakeholders.  The House narrowly approved a bill to require EPA to withdraw the rule, but the Senate has not acted.  The federal Small Business Administration (SBA) has also asked the rule be withdrawn and reproposed.
 
Agriculture groups say they will move forward with plans to assist their members in complying with the rule in those states where the order is not in effect.  EPA is expected to roll out components of the rule gradually, while restraining its enforcement actions.  The agency also promised to publish a guidance document on compliance, as well as a question/answer document. Neither have been published, industry sources said. 
 
Organic Food Recalls Spiking
A company handling food recalls for business reported last week it's seeing a spike in the frequency of food recalls involving organic foods, the New York Times' Stephanie Strom reported.  Stericycle says that based on data from FDA, organic products accounted for 7% of all "food units" recalled so far in 2015, up from 2% for all of last year.  In 2012 and 2013, the Times reports, only 1% of total food units recalled were organic.
 
"What's striking is that since 2012, all organic recalls have been driven by bacterial contamination, like salmonella, listeria and hepatitis A, rather than a problem with a label," said Stericycle executive Kevin Pollack in the article.  "This is a fairly serious and really important issue because a lot of consumers just aren't aware of it."
 
Stericycle says the overall number of food recalls has increased this year, continuing a trend since 2012, and predicts there will be a 24% jump in overall recalls this year. 
 
The Organic Trade Association (OTA) says Stericycle is too hard on organic foods, adding its "quick analysis" of recall statistics from FDA and USDA shows organic products making up just less than 5% of recalls, "in line with the percentage of organic food sold out of total retail sales of food." OTA says the increase is not because organic food is less safe, but rather that organic sales have been "dramatically increasing." 

White House Owns up to Immigration Order Breaches; Judge Wants Ideas on Penalties
While the Department of Homeland Security admitted it was out of line in providing benefits to illegal immigrants under President Obama's executive orders - and has taken "extraordinary measures" to rescind those actions - a Texas federal judge wants to hear from the White House and from 26 states suing to stop the Obama immigration orders on how he should treat the violations of his original order blocking DHS implementation of the orders.
 
U.S. District Court Judge Andrew Hanen ordered both sides of the case to file by September 4, recommendations on what actions he should take on the DHS violations.  Hanen previously blocked implementation of two executive orders to defer deportation of certain undocumented aliens; DHS admitted it had provided work permits and other benefits in spite of the order.  While the states have previously said it may take "an external compliance monitor" to ensure the government is following Hanen's order, the judge also ordered the Department of Justice to file compliance update reports by September 26 and May, 2016.
 
The judge has called out DHS for its "cavalier attitude" for violating the court order, and said department failures to correct some violations were "completely unprofessional."  
 
 USDA Sued for Allegedly Violating FOIA, "Withholding" GM Crop Information
The Center for Food Safety (CFS), renown for how often it sues the federal government to block technology, last week filed suit against USDA - specifically the Animal & Plant Health Inspection Service (APHIS) - alleging the agency has withheld information on genetically modified crops requested by the group.
 
The suit alleges APHIS violated the Freedom of Information Act (FOIA) on multiple occasions, withholding information on GM crops - wheat, rice, alfalfa, sugar beets, bent grass, corn and others - from CFS for as long as 13 years.  CFS focuses on an FOIA request related to information on 2008 proposed APHIS GM regulations that were withdrawn this year.  The suit also says the agency failed to respond to its request for information related to USDA's investigation of an unapproved GM wheat variety found in 2013 in an Oregon field, and also wants information on crops it alleges have not been reviewed or approved. 
 
CFS wants the federal court to declare APHIS's lack of response unlawful and to order the agency to produce all records requested by a deadline to be set by the court. 
 
Agriculture Energies Group Invests $3 Million to Support Renewable Energy Irrigation Well Projects in West and Midwest United States
Agriculture Energies Communications
Release No. 006970
Contact: Office of Communication (520) 369-2474
 
Funding Supports Solar Energy Projects to Promote Energy Independence
 
TUCSON, ARIZ, August 25, 2015 - Agriculture Energies today announced $3 million in available power purchase agreements for an estimated 12 renewable energy irrigation well projects in the West and Midwest states.
 
This funding will have far-reaching economic and environmental impacts throughout the region. Investing in renewable energy irrigation projects supports home-grown energy sources, reduces greenhouse gas pollution and helps usher in a more secure energy future for the nation.
 
These off-grid irrigation projects are expected to generate and save 1 million kilowatt hours (KWh) of energy - saving the farmer both on fossil fuel costs as well as reducing maintenance of the existing generator equipment.
 
For example, a farmer in California is selected for a photovoltaic-hybrid pump power system on his farm, and with just one of his current 90 HP pumps, the system will generate nearly 170,000 kilowatt hours of electricity annually from the sun.  In the 1st year he is expected to save $11,800 in diesel fuel costs, by year 5 the system is producing enough to save $21,600 annually, and by year 20 the total savings are $880,700.
 
These selected farms will include center pivot and flood irrigation systems to agricultural producers that are currently running with off-grid power.  Funding for the projects is contingent upon the recipients meeting the terms of the power purchase agreement. Here are preliminary guidelines of selection standards:
  • Well site location is within the United States, preferably in the West or Midwest states with high solar radiance.
  • Diesel or propane (feasibly natural gas) off-grid powered pumps without access to grid electricity.
  • Current off-grid generator pump and motor power larger than 50 HP.
  • Irrigation watering season longer than 6 months annually.
The next application deadline for this round of funding is September 31, 2015. Agriculture Energies will issue a notice of available funding with more details on how to apply for power purchase agreement to those who make contact before application date.
 
Agriculture Energies plans to support renewable energy irrigation well projects throughout the West and Midwest United States.  During this period, the group is planning on providing more than $3 million in off-grid irrigation well project power purchase agreements with the anticipated benefits to agricultural producers including: no capital outlay for the photovoltaic system, no installation / maintenance / monitoring responsibilities of the photovoltaic system, and pay for the produced power only. This results in a reduction of the agricultural producers exposure to fossil fuel price volatility*, reduced maintenance of current fossil fuel system, reduction of carbon emissions, and reduced noise pollution.
 
If you have any technical questions, we are happy to discuss:  (520) 204-4223.  If you have questions about Agriculture Energies power program activities, please visit our Power Purchase Program page. This feature is designed to assist you in obtaining the information you are seeking. 
 
CGFA Careers Center
The CGFA Careers Center can help connect you with qualified and talented employees searching for dynamic and challenging career opportunities. After registering, you can post job & internship openings available at your company, as well as view potential candidates' resumes and upcoming career fairs.

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