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                     February 26, 2016
      


In This Issue
We Can't Keep Losing Farmland and Agriculture Students
FSMA Informational Seminar
California Legislative Report
FDA Explains How it Will Spend More Food Safety Money; Industry Says "No" to Any FSMA User Fees
Federal Appeals Court Rules on WOTUS Jurisdiction
Roberts Resets Markup on Draft Bill, Battle Over GE Food Labeling Set for March 1
House Ag Hears Vilsack on Rural Economy
TPP Shot in the Arm for Income, Exports
Over 200 Lawmakers File Amicus Brief in Clean Power Plan Federal Case
Califf Gets Senate Approval to Head FDA
CGFA Annual Convention
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2016
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We Can't Keep Losing Farmland and Agriculture Students

by Katheryn J. Boor, The Hill




report released this week by the U.S. Department of Agriculture (USDA) showed that total farmland in the United States has decreased by 1 million acres since 2014. That's a loss of 18,000 farms. An August 2013 Science magazine editorial cited a 26 percent decline in federal spending on agriculture and food research over the previous decade. These numbers are dramatic and damning, not least of all because our nation's economic health relies upon vital rural communities, but because we are losing our country's most vital technological laboratories.



Before there was Silicon Valley, there was the Fertile Crescent. The Industrial Revolution was only made possible by the Agricultural Revolution that preceded it. Flash freezing, a food technology that Cornell University helped perfect, nutritionally bolstered the growing urban centers of the early 20th-century. Agricultural technologies are the most ancient forms of innovation known to man, and yet we are quickly losing our ability to recognize the pioneering nature of agriculture, with the public and policymakers preferring what they perceive to be sexier science to the farmer next door.

 
FSMA Informational Seminar

        
Assisting Firms with Implementation Strategies


March 10th: 9:00 am - 4:00 pm
DoubleTree Hotel in Modesto
 
Sponsored by:
CDFA Safe Program
California Grain & Feed Association
National Grain & Feed Association
 


California Legislative Report
by: Dennis Albiani, Legislative Advocate


Bill Introduction Deadline Passes


Last Friday was the deadline for bill introduction in the legislative session.  The Assembly introduced 2887 bills this session, 1,338 of them were new introductions this year.  There were a total of 1,472 Senate bills introduced, of which 667 of them were introduced this year.  This equates to a total of 4,359 total bills introduced into the ordinary session with 2005 of them being introduced this year. 


The association is tracking 137 bills and has a list of 44 priority bills.  Topics include labor issues such as overtime for agricultural workers after 8 hours, further restrictions on pesticides including neonics and applications, promoting organic recycling and biomethane, increasing water regulations and oversight, and preserving agricultural land. 


Aliso Canyon Gas Moratorium Legislation Has 1st Hearing


Legislation that would place a moratorium on injecting gas into the Aliso Canyon storage facility passed the Assembly Utilities Committee this week with a unanimous vote.  The author accepted Committee amendments including a sunset clause and consultation with the local utility.  There was a lot of discussion on how this moratorium would interact with the Governors proclamation and other bills.  This conversation will continue as the bill progresses. 


This is an important issue to many large natural gas users in the southern San Joaquin Valley and Los Angeles basin.  Aliso Canyon is the largest natural gas storage facility in California.  There are 7 other bills increasing the regulation of natural gas storage and distribution infrastructure. 


Genevieve Shiroma Reappointed to the Agriculture Labor Relations Board


Genevieve Shiroma, 61, of Sacramento, has been reappointed to the California Agricultural Labor Relations Board, where she has served since 1999. Shiroma served as Chief of the Air Quality Branch at the California Air Resources Board from 1990 to 1999, where she was an air quality engineer from 1978 to 1990. This position requires Senate confirmation and the compensation is $137,956.08. Shiroma is a Democrat.

FDA Explains How it Will Spend More Food Safety Money; Industry Says "No" to Any FSMA User Fees
As FDA this week released a report detailing how it will spend about $25 million more on implementation of the Food Safety Modernization Act (FSMA) as proposed in President Obama's FY2017 budget, the regulated industry from feed and animal drug makers to food processing and retail companies told Capitol Hill appropriators there is no place in FDA's budget for FSMA registration user fees.


Committee member and leading congressional food safety advocate, Rep. Rosa DeLauro (D, CT), said during a subcommittee hearing on FDA appropriations, that even with the extra $25.3 million proposed by Obama, the agency doesn't have enough money to fully implement FSMA. 


"You don't have the money. You don't have the money to deal with what FSMA asks us to do and to protect the food supply coming in" to the U.S., DeLauro told Dr. Stephen Ostroff, acting FDA commissioner.  She noted the Congressional Budget Office (CBO) estimates FDA will need $583 million over time to fully implement FSMA.  Right now, FDA has authority for $267 million, including $104.5 million in the FY2016 omnibus spending package approved for the remainder of this year. 


The industry letter "urging" Congress to reject user fees - an annual missive sent to the Hill during the appropriations process - reminds lawmakers that "providing sufficient federal resources to adequately fund FDA's critical food safety activities without increasing costs for consumers and food makers is of paramount importance." The agriculture/FDA appropriations subcommittee head, Rep. Robert Aderholt (R, AL) says FDA has yet to make a convincing argument for user fee authority.


FDA's report says it would spend $11.3 million of the proposed new money on the National Integrated Food Safety System (NIFSS), a program under which FDA works with state, local and tribal governments, and the spending focus would be on assisting in implementation of the FSMA produce safety rule.  The states need about $100 million to meet FY2017 FSMA goals, according to the National Association of State Departments of Agriculture (NASDA). 


About $14 million would be used to implement the Foreign Supplier Verification (FSV) rule, a new regulation pulling exporters into the U.S. food safety system, which would be focused on hiring inspectors, and providing "technical assistance and outreach" to foreign governments. 
Federal Appeals Court Rules on WOTUS Jurisdiction 
The long-awaited federal court decision dealing with whether challenges to the EPA "waters of the U.S. (WOTUS)" should first be heard in federal district or in appeals courts was handed down this week, with the 6th Circuit Court of Appeals ruling it will take the first shot at various cases filed against the agency. 


The deal could unravel, however, as the appeals court majority decision is shaky at best.  One judge said he went along with the ruling because of a 2009 court action related to the Clean Water Act (CWA) and pesticide spraying, but that he also believes that case was wrongly decided.  One DC newsletter said the use of the 2009 pesticide CWA case - the National Cotton Council v. EPA - could restart old legal battles over agency permitting requirements.


Cases filed by multiple states, associations and companies argued their challenges should first be heard in federal district courts and then move to the appellate courts if necessary. These plaintiffs may petition to have this week's appeals court decision reheard.


The court's decision comes on the heels of a contentious House Agriculture Committee hearing at which EPA Administrator Gina McCarthy was taken to task by committee members for "manhandling the rights of our farmers, especially when dealing with water issues," said Rep. David Scott (D, GA).  The agency head was also castigated over a Government Accountability Office (GAO) report that said EPA broke federal anti-lobbying laws in pushing for its own final rule.  "You've basically subverted the rulemaking process," said Rep. Rick Crawford (R, AR).  McCarthy said her agency did not break the law, and that WOTUS is necessary because of Supreme Court CWA decisions.

Roberts Resets Markup on Draft Bill, Battle Over GE Food Labeling Set for March 1
With the clock ticking toward the July 1 effective date of the Vermont genetically engineered (GE) food labeling law, Senate Agriculture Committee Chair Pat Roberts (R, KS) this week postponed markup of his draft legislation in deference to his ranking member, Sen. Debbie Stabenow (D, MI). Rescheduled committee action is set for March 1.


Stabenow has blocked Senate action on any GE food/feed labeling preemption legislation, but asked Roberts to reschedule the February 25 markup because she was floor managing a bill this week to provide emergency aid to residents of Flint, Michigan, and its water system problems. 


Roberts' proposed legislative draft is an elegantly written, seven-page document that would preempt - under USDA's Agriculture Marketing Act (AMA) and FDA's Food, Drug & Cosmetic Act (FDCA) -  local, county and state governments from requiring labels on GE foods, while requiring USDA to create a voluntary GE labeling regime for foods/feeds.  At the same time, the department would be required to work with other federal agencies to publicly promote the safety, humaneness and scientific certainty of biotech-derived foods/feeds and ingredients.  Roberts said he fully expects the draft to be modified during the March 1 markup.


Meanwhile, the Coalition for Safe & Affordable Food (CSAF), agriculture producer groups, feed, and other input suppliers, processors and food retailers led by the Grocery Manufacturers Assn. (GMA), sent members of the Senate Agriculture Committee a letter signed by 652 state and national associations, as well as several companies, endorsing the Roberts draft legislative proposal to provide a federal alternative to a patchwork of state labeling regimes on GE ingredients. 


Industry contends without federal preemption, a patchwork of laws like that in Vermont, would create logistical and financial chaos for food and feed companies.  The Corn Refiners Assn. (CFA) this week released a report showing the Vermont law would increase cost of food production in the U.S. by $82 billion a year, or $1,050 per family.  Under the Vermont law, companies would be fined up to $1,000 per day per product on store shelves not labeled.  The industry also contends food companies will have to build or buy new facilities to keep GE-labeled food products separate from non-labeled products. 


At risk also is the future of agriculture/food biotechnology, say supporters of the Roberts proposal.  Zippy Duval, president of the American Farm Bureau Federation (AFBF) said this week not reaching a compromised solution is not an option. "We need the Senate to act to protect consumers from misleading labels, and an increase...in food prices. We also need to protect farmers and the food industry from a patchwork of state labeling laws...which would stigmatize a valuable agricultural technology and have a chilling effect on future innovation."


Stabenow, who agrees with Roberts on the urgency of a bipartisan federal solution, wants food companies to be required to put on packages information sources by which consumers can easily find out what is in their food.  GMA, developer of a voluntary "Smart Label" program on package information, wants such disclosures to be voluntary, though that position may have shifted in the last 10 days to where food companies may be willing to accept mandatory on-pack labeling if it stops short of a "contains or may contain a genetically modified ingredient" label legend.  Also on the table is an idea that if a voluntary labeling program is agreed to, there would be a sunset provision.  That provision would hold that if a certain percentage of food labels don't carry adequate on-pack information by a certain date, Congress could convert the voluntary program to a mandatory program.


The Michigan Democrat and former committee chair is key to bringing other Senate agriculture committee Democrats on board, and ultimately, getting the bill through the Senate.  On the agriculture panel, key and targeted Democrats who have not yet endorsed the Roberts' approach include Sen. Heidi Heitkamp (D, ND), Sen. Amy Klobuchar (D, MN) and Sen. Robert Casey (D, PA).


Another committee member Sen. Joe Donnelly (D, IN), is clearly frustrated with what he sees as partisan wrangling and the potential for misleading labels.  Donnelly favors federal preemption and giving the industry time to implement a Smart Label-like program, similar to an offer Roberts has made to Stabenow.  Donnelly says if consumers don't think they're getting enough information, then Congress can act.  His office said the Indiana lawmaker "believes we can significantly improve the availability of information for consumers without getting bogged down in partisan debates about sticking misleading labels on every food product or pretending the status quo is acceptable to consumers."  


Committee member and former panel chair Sen. Patrick Leahy (D, VT) vowed to try and block any legislation interfering with his state's labeling law, and he I s joined in that effort by Democrat presidential hopeful Sen. Bernie Sanders (I, VT), a long-time advocate of state food labeling independence.  Sen. Barbara Boxer (D, CA), author of a bill to mandate on-pack GE food labeling, says Roberts doesn't have the support to move the legislation.


Agriculture Secretary Tom Vilsack, who tried unsuccessfully to broker a deal between the CSAF and the Just Label It! coalition led by the Environmental Work Group (EWG), weighed in again this week calling on Congress to strike a bipartisan deal.  He praised Roberts' leadership on the issue, acknowledging the Vermont law would create "chaos" in the food industry.  Long an advocate of on-pack sources of information on food ingredients, Vilsack endorsed the sunset provision being discussed among lawmakers, calling it "the issue that ultimately needs to be decided." He also pointed out that the Roberts' proposal does carry a cost to his department in that he'd be required to conduct consumer education, "and frankly this Congress is not going to give us resources to do it..." 


Last summer, the House approved on a strong vote of 270-150, with 45 Democrats, a federal GE labeling preemption bill authored by Rep. Mike Pompeo (R, KS).  That bill will create a GE-free certification program, require FDA to define the term "natural" when used on a food label, and codify the USDA-FDA consultation process on biotech approvals.

House Ag Hears Vilsack on Rural Economy
Secretary of Agriculture Tom Vilsack this week told the House Agriculture Committee at a hearing on the state of the rural economy that while near-term forecasts for farm income and commodity prices are less than rosy, he remains optimistic. 


"Forecasts are obviously very important, and people have to make decisions on what they think might happen, but here's the reality:  I would rather manage change than be managed by change," Vilsack said. "I would rather be proactive. I would rather be optimistic and look at ways to improve domestic consumption."


Committee Chair Mike Conaway (R, TX), in his opening statement said USDA predicts that net farm income will fall 56% from 2013 to 2016, the largest three-year decline since the Great Depression.


"As chairman of this committee, I'm deeply concerned about the direction we're headed.  With USDA projecting no relief in sight, it's more important now than ever that we hold the line on the Farm Bill and we push back against attacks on the risk management tools that are so vital to protecting our farms and ranches," said Conaway.


Rep. Collin Peterson (D, MN), committee ranking member, said, "While the rural economy remains strong, folks are getting concerned about the potential long-term impacts of deteriorating prices.  Of course, this is why those of us on (the) committee work so hard to pass a farm bill every five years.  I don't have concerns with the current bill, but it's at low price times like this that the bill's safety net is so important."  Peterson went on to note the importance of crop insurance, telling Vilsack, "Despite what critics would lead you to believe, the crop insurance program is an effective and responsive tool for farmers."


"While Secretary Vilsack reported the farm economy is strong, many of the farmers and ranchers that we talk to are telling us the opposite," Conaway said. "

TPP Shot in the Arm for Income, Exports
As Secretary of Agriculture Tom Vilsack tried to put an optimistic spin on his department's negative forecast on farm income before the House Agriculture Committee this week, the American Farm Bureau Federation (AFBF) released a report showing the Trans-Pacific Partnership (TPP), if approved by Congress, will be a shot in the arm for U.S. ag exports and farm income.


The AFBF report shows U.S. sales to its 11 Pacific Rim trade partners will boost U.S. farm income by $4.4 billion compared to the U.S. walking away if Congress rejects TPP. 


Net trade is expected to increase for rice, cotton, beef, pork, poultry, butter, cheese, soybeans and products, and nonfat dry milk, says the AFBF report.  While the analysis projects net trade for corn will decline by 45.3 million bushels, overall demand for corn is forecast to increase by 54.2 million bushels, with corn revenues jumping $680 million per year due to higher domestic feed use generated by the additional export sales of beef and pork.


TPP means a 5-cent-a-bushel farm-price increase, with a 12-cent boost on soybeans and a 2-cent rise for wheat, AFBF said.  Beef prices would likely rise $2.66 cwt, and for pork, the increase would be about $2.45 cwt.  Poultry prices would rise by about $1.40 cwt, according to the AFBF report, and all milk prices would increase by about 21 cents per hundredweight. 


"The consequences of not approving the deal would be harmful," said AFBF President Zippy Duvall. "Clearly, American farmers and ranchers have much to gain from approval of TPP and we support its ratification."  Duvall said U.S. ag is a "growth industry" and to continue that trend, innovation is essential.

Over 200 Lawmakers File Amicus Brief in Clean Power Plan Federal Case
Led by Senate Majority Leader Mitch McConnell (R, KY) this week, 34 Senators and 171 House members joined in filing an amicus brief in the state-led federal court action challenging EPA's rulemakings on CO2/carbon recapture for new and existing power plants, the backbone of President Obama's "Clean Power Plan."


McConnell was joined in his coordination effort by Sen. Jim Inhofe (R, OK), chair of the Environment & Public Works Committee; Rep. Fred Upton (R, MI), chair of the Energy & Commerce Committee, and Rep. Ed Whitfield (R, KY), chair of the House committee's subcommittee on energy and power.


The amicus action supports 27 states, led by West Virginia, seeking to toss out the EPA rulemaking, which McConnell has dubbed "a war on coal."  The brief says, in part, "The final rule goes well beyond the clear statutory directive by, among other things, requiring states to submit for approval state or regional energy plans to meet EPA's predetermined CO2 mandates for their electricity sector." 


The lawmakers said if Congress intended for EPA to have such sweeping regulatory authority, it would have made it clear the agency has such power.  "EPA can point to no statement of congressional authorization for the final rule's central features precisely because there is none," the brief said. 
Califf Gets Senate Approval to Head FDA
Cardiologist Dr. Robert Califf was confirmed this week 89-4 by the Senate to be the next commission of FDA, but not before political horse trading succeeded in getting several procedural holds removed from his nomination. 


Sens. Ed Markey (D, MA), Richard Blumenthal (D, MA) and Joe Manchin (D, WV) all threatened to put holds on the Califf nomination over the agency's handling of prescription opioid painkillers.  Joined by Sen. Kelly Ayotte (R, NH), the Senate lawmakers contend FDA is not taking the issue of opioid abuse seriously, and even when Califf unveiled an "action plan" last week, it wasn't enough to quash opposition.  Sen. Lisa Murkowski (R, AK), fearing competition with her state's wild caught Pacific salmon market, also threatened a hold on the nomination after the agency approved a genetically engineered Atlantic salmon that grows to market weight in half the time of a conventional fish.


Califf has served as a deputy commissioner for a year, following a long tenure at Duke University where he established and ran a clinical research institute funded in large part by the pharmaceutical industry.  However, Califf argued the institute's work was never influenced by the drug companies.

CGFA Annual Convention 



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