NASDA News August 1, 2007

House Approves 2007 Farm Bill
Published: August 01, 2007

The House of Representatives approved the 2007 farm bill (H.R. 2419) on July 27 after three days of debate. The farm legislation was approved on a vote of 231 to 191. The White House has threatened a veto.

Generally, farm bills are passed with bipartisan votes, but last minute actions to fund nutrition programs with tax offsets caused many Republican lawmakers to express concern and vote against the bill. The House Agriculture Committee released a statement saying the farm bill makes historic investments in fruit and vegetable production, conservation, nutrition and renewable energy while maintaining a strong safety net for farmers.

The new 2007 farm bill includes many provisions that respond to NASDA's recommendations. Those include measures that provide an economic safety net for producers and enhancing conservation programs. More than $1.6 billion is provided for specialty crops including $365 million for the specialty crop block grant program administered through state departments of agriculture. In addition, increased funding for the Market Access Program (MAP) will continue to allow state regional trade groups and NASDA to increase international marketing opportunities for producers and agricultural businesses. Enhanced nutrition programs, such as expanding the school fruit and vegetable program, rural development initiatives and more than $2.4 billion for renewable energy programs will provide for economic growth in rural areas.

The farm bill also includes provisions on payment limits to ensure that people making more than $1 million a year in adjusted gross income can not collect conservation and farm program payments. Another provision would fully implement Mandatory Country of Origin Labeling for meat. Copies of the bill and amendments that were adopted are available on the House Agriculture Committee's website at http://agriculture.house.gov/inside/2007FarmBill.html.

Governor Appoints New Montana Agriculture Director
Published: August 01, 2007

Governor Brian Schweitzer has appointed Ron de Yong as the new director of the Montana Department of Agriculture. He replaces Nancy K. Peterson who passed away last month.

"Ron is a common sense guy with a commitment to moving Montana agriculture forward," said Schweitzer. "It is an honor to have him on the team."

"I am honored to have the opportunity to serve Montanans in this capacity," said de Yong. "My experience in the day-to-day operations of a family farm, and also in policy and economics that affect our Montana agriculture producers will allow me to contribute in helping our farmers and ranchers as part of the Schweitzer Administration. I am committed to family farms and ranches and value-added agriculture in Montana."

Ron de Yong owns and operates a 320-acre family farm in Kalispell and teaches agriculture policy and economics at Cal Poly State University. He has been an economist for National Farmers Union, served as a Montana State Committee member for the USDA Farm Service Agency and has been a state director for Montana Farmers Union. de Yong has a bachelor's degree in agricultural science and philosophy from Montana State University and a master's degree in economics from the University of Montana. He is married with three children. de Yong will start on September 4, 2007.

Senate Hearing Held Oversight of Government Tax Policy in Farm Country
Published: August 01, 2007

Last week, the Senate Finance Committee held a hearing entitled "Oversight of Government Tax Policy in Farm Country." Led by Chairman Max Baucus (D-Mont.), the committee heard testimony regarding crop disaster relief, farm labor, and other rural finances. Key witnesses included National Farmers Union President Tom Buis; a specialist in immigration policy from the Congressional Research Service, Alison Siskin; and a liaison from the Government Accountability Office, Lisa Shames.

Most notably, the committee echoed the witness' sentiments of establishing permanent crop disaster assistance. As noted by Buis, "Farmers don't farm in the aggregate. Even when the ag industry as a whole is making money, some farmers can be hurting." Senators appeared to accept the program's necessity and were prepared to seek out funding and implementation methods.

The Finance Committee also heard testimony on the suitability of ending the exemption of foreign workers from paying into the Social Security program. Siskin stated that "the provision [would increase] payroll tax revenue by approximately $521 million in 2008."

The committee subsequently considered an assortment of financially based issues. On July 24, 2007, the GAO reported that between 1999 and 2005 the USDA had paid over one billion dollars in crop payments to deceased farmers' estates. The GAO also reported that 17 percent of these payments were made to individuals that had been deceased for seven or more years. Senators discussed steps the USDA is taking to ameliorate these oversights. Finally, the Committee briefly deliberated the tax treatment of CRP revenue, the effect of the estate tax on farming and ranching, and alternate ways to depreciate farm equipment.

Smith Named Acting Administrator of APHIS
Published: August 01, 2007

Bruce Knight, undersecretary for USDA's marketing and regulatory programs mission area, has announced the appointment of Cindy Smith as the new acting administrator for the Animal and Plant Health Inspection Service (APHIS).

"Cindy has been an integral part of the APHIS team for many years, and I am pleased that she has accepted this position," said Knight. "Her leadership and management experience are extremely valuable as APHIS continues to carry out its mission of protecting the health and value of American agriculture and its natural resources."

As acting administrator, Smith will manage one of USDA's most multifaceted agencies, which includes programs that are critical to the protection of America's livestock, plants and food supply. Smith is acting as a replacement for Dr. Ron DeHaven, who will retire on Aug. 3, after 28 years with APHIS. DeHaven served as administrator since 2004.

Smith began her career with APHIS in 1979 after graduating high school. Throughout her years, Smith has gained diverse experience through a number of different positions, including plant protection and quarantine, wildlife services (WS) and biotechnology regulatory services (BRS).

Since April, Smith has been APHIS' associate administrator. Before that, beginning in 2002, she served as deputy administrator for BRS and played a major role in shaping the agency's biotechnology regulatory structure, establishing more rigorous requirements for field tests of genetically engineered crops and initiating efforts to review and strengthen the agency's overarching biotechnology regulations. From 2001 to 2002, Smith was the associate deputy administrator for WS, which provides federal leadership and expertise in resolving conflicts caused by wildlife.

In 1983, Smith completed her bachelor of science degree in microbiology from the University of Maryland. She went on to earn her master of science degree in business management from the University of Maryland in 2000.

A native Marylander, Smith resides with her husband in Woodstock, Md., close to her family that includes six children and three grandchildren.

USDA Announces New Risk-Based Process for Certain Imported Fruits and Vegetables
Published: August 01, 2007

Earlier this month, Agriculture Secretary Mike Johanns announced a new risk-based process for approving the importation of certain fruits and vegetables that continues stringent protections for U.S. agriculture yet streamlines the lengthy rulemaking process, allowing USDA plant health specialists to better focus on more complex import issues.

"This new approach will allow us to focus less on administrative processes and more on the science of facilitating imports that do not pose a risk of introducing foreign pests and diseases," said Agriculture Secretary Mike Johanns. "A more efficient review process for imported fruits and vegetables should also help to expand market access for U.S. agricultural exports as other countries recognize U.S. efforts to encourage trade."

The new risk-based process for approving certain fruits and vegetables applies only to commodities that can be imported into the United States subject to one or more of five designated phytosanitary measures. These measures include port-of-entry inspection, approved postharvest treatment, a phytosanitary certificate verifying that it originated from a pest-free area, a phytosanitary certificate verifying that it is free from a specified pest or pests or that the risk associated with the commodity can be mitigated through commercial practices.

The importation of fruits and vegetables that require additional phytosanitary measures will continue to undergo the full rulemaking process.

The changes in the rule do not alter which fruits and vegetables are currently eligible for importation or how the risks associated with those commodities are evaluated or mitigated. This rule only makes more timely the approval of fruits and vegetables that are safe for importation into the United States.

The regulation of imported fruits and vegetables is a shared responsibility between USDA and the Food and Drug Administration (FDA). USDA regulates the importation of fruits and vegetables to ensure they are free of plant pests that could potentially compromise the safety of U.S. agriculture. FDA is responsible for ensuring that the fruits and vegetables consumed by Americans, whether grown domestically or imported from other countries, meet the highest health and safety standards. Both departments work closely together to safeguard U.S. agricultural health and safety.

USDA is also establishing a notice-based process for approving pest-free areas in exporting countries. A notice was issued last week stating that the pest risk analyses are complete for peeled baby carrots and baby corn from Kenya, Ribes species (i.e., currants and gooseberries) from South Africa and peppers, eggplant and okra from Ghana. USDA concludes that these commodities can be safely imported into the United States subject to one or more of five designated phytosanitary measures, and therefore are eligible for the new notice-based approval process. To learn more, visit the APHIS website at http://www.aphis.usda.gov/newsroom/hot_issues/quarantine_56/quarantine_56.shtml. This final rule was published in the July 18 Federal Register and will become effective August 17.

USDA is also in the process of creating a website that will allow customers to search, by commodity or country, for eligible fruits and vegetables and their requirements for importation into the United States. The goal is to launch the system this winter.

USDA Seeks Public Comment on Ethanol Standards
Published: August 01, 2007

USDA's Grain Inspection, Packers and Stockyards Administration (GIPSA) published earlier this month an Advance Notice of Proposed Rulemaking (ANPR) in the Federal Register seeking public comment on whether there is a market need for USDA to establish additional grain quality standards regarding ethanol. The proposed rulemaking will explore a way to describe the type and quality of grain purchased for ethanol production, such as, differentiating corn with a high total fermentable starch content from other corn types.

USDA is also asking whether there is a market need for standards to describe the type and quality of feedstuff produced during the ethanol production process and marketed as various forms of distillers grains. During fermentation, grain starch is converted to ethanol and the remaining nutrients, such as protein, fat, minerals and vitamins, end up as distillers grains or condensed distillers solubles. These co-products, such as distillers dried grains (DDG) and distillers dried grains with solubles (DDGS) are often sold as animal feed.

"We have monitored the development of this rapidly expanding industry and now is the appropriate time to seek stakeholder advice in order to foster collaboration among segments of the industry to support the marketing of ethanol co-products, " said GIPSA Administrator James E. Link.

Distillers grains are typically marketed to feed formulators and livestock producers for livestock feeding, primarily for beef, dairy, pork and poultry. One bushel of corn or about 56 pounds produces approximately 2.8 gallons of ethanol and 17 pounds of distillers grains. In 2006 1.8 billion bushels of corn produced 4.9 billion gallons of ethanol and over 26 billion pounds of distillers dried grains.

All interested parties may submit comments and supporting information to aid in GIPSA's evaluation on how we can best facilitate the marketing of distillers grains in today's evolving marketplace. USDA is seeking comment on market needs and the feasibility and desirability of GIPSA's programs to facilitate the marketing of ethanol co-products. Comments must be received by September 18, 2007. The proposed rules can be located at http://archive.gipsa.usda.gov/rulemaking/fr07/7-20-07b.pdf.

National Cotton Council Responds to Recent WTO Interim Panel Ruling
Published: August 01, 2007

Due to the confidential nature of the World Trade Organization (WTO) panel interim ruling, the National Cotton Council (NCC) has not seen the reported WTO decision. Initial press reports indicate that the panel largely sided with Brazil. If the panel ruled for Brazil on its serious prejudice claims, though, "we believe that it would be contrary to the facts in the world cotton market" according to the National Cotton Council in a news release issued last week.

U.S. actions already taken to comply with the first WTO Panel ruling have had a significant impact on U.S. cotton and U.S. cotton producers. Since the U.S. eliminated cotton's Step 2 program, U.S. cotton acreage is down 28% for 2007, U.S. exports have declined significantly and U.S. production is predicted to be only around 17 million bales in 2007, the lowest since 2002. It cannot be credibly argued that any payments under domestic support programs are causing any country serious prejudice in 2007--the first year of their operation without the Step 2 program.

In the NCC news release the organization expressed that it is incomprehensible that a WTO panel could make a finding of serious prejudice against the U.S. when the international cotton market is strong, offtake will exceed production, world prices are up and acreage is up almost everywhere in the world except the United States. Cotton production outside the U.S. mushroomed and is estimated to be a record high of 97.1 million bales. India is expected to harvest an all-time record crop and has supplanted the U.S. as the world's largest exporter to China; world prices are up; and payments under the marketing loan program have decreased to zero. In the face of these facts, the U.S. cotton industry is left to puzzle the basis of such a decision.

In addition to these changes, the farm bill passed by the U.S. House of Representatives contains a significant reduction in countercyclical program payments applied to cotton base acres. Further, Brazil is currently harvesting a cotton crop that is 38% above last year's production and actually sold government cotton stocks during 2007 in an attempt to depress cotton prices. The full text of the news release can be located at http://www.cotton.org/news/releases/2007/brazilstmt.cfm.

Groundwater Quality Database Now Available on the Web
Published: August 01, 2007

The results of 15 years of groundwater sampling are now available in an online database designed to enable the public to learn about the quality of Colorado's groundwater.

The groundwater quality data gathering and analysis is a joint project of the Colorado Department of Agriculture (CDA), Colorado State University Cooperative Extension and the Colorado Department of Public Health and Environment (CDPHE). The database can be accessed at http://ids-nile.engr.colostate.edu/webkit/Groundwater/.

The groundwater quality data is gathered by CDA field staff from irrigation, stock water, and special sampling wells in areas throughout Colorado. The groundwater is then tested by CDA chemists for the presence of fertilizers and pesticides that may have leached into groundwater. Data analysis is conducted by CDPHE. Colorado State University provides outreach to the state's farm community on farming methods that protect Colorado's groundwater from contamination by fertilizers and pesticides.

"We have taken 15 years of groundwater monitoring data and made it available in a user-friendly format that allows the public to better understand Colorado's groundwater quality with respect to agricultural chemicals," said CDA program director Rob Wawrzynski.

The extensive sampling indicates that Colorado has generally high quality groundwater.

"Although there are a few problem areas with groundwater containing nitrate-nitrogen higher than drinking water standards, the database shows that there are very few detections of pesticides at levels above drinking water standards," Wawrzynski said.

Commissioner Farmer Appoints All-Star Panel to Study Rural Health Care Issues in Kentucky
Published: August 01, 2007

Kentucky Agriculture Commissioner Richie Farmer has appointed a bipartisan, all-star panel to examine health care issues in rural Kentucky and develop recommendations for the 2008 Kentucky General Assembly.

At the Farm Credit Services of Mid-America customer appreciation dinner Tuesday in Mount Sterling, Farmer announced that Louisville attorney and business leader Vickie Yates Brown will chair the panel.

"This group's job is to comb through the numerous ideas that have been floated from both Republicans and Democrats, from industry and consumer groups, from doctors and patients, to find steps that we can take, not 20 years from now, not five years from now, but immediately to address some of the problems facing us," Farmer said.

The panel will look at the availability and affordability of health care and find ways to use fresh fruits and vegetables grown on Kentucky farms to alleviate the obesity problem in rural Kentucky. Adult obesity costs the state $1.2 billion annually, according to a 2004 study. The 2003 Kentucky Youth Risk Behavior Survey found that 30 percent of Kentucky youth are overweight or at risk of becoming overweight, and only 13 percent of Kentucky high school students eat the recommended five to nine servings of fruits and vegetables a day.

"It is time we stop using the Band-Aid approach to health care," Farmer said. "While we have been treating the symptoms, the patient has died."

Kentucky's rural areas suffer from a shortage of doctors and hospitals and soon will face a shortage of dentists, Farmer said. Rising costs have left many families and small businesses unable to afford health insurance. He said farmers throughout the Commonwealth tell him health care is one of their greatest concerns.

"This is a genuine crisis--a crisis that threatens the security of hard-working families just like you," Farmer said.

NASDA 2007 Registration Now Open
Published: August 01, 2007

The early registration discount ends August 24. After that date, the registration fee will increase by $100.00. Registration ends Sept. 14. All registrations must be made online. When registering, choose offline payment if you wish to pay by check. You can update any information by using the confirmation number emailed to you when you register.

Reserve Your Room by August 24 for Hotel Discount: The negotiated rate for a room at the Westin is $195.00 a night. Contact the Westin Hotel, 1900 Fifth Avenue, Seattle, Washington 98101, 800/228-3000. Reservation requests received after 5:00 p.m. local time at hotel on the cutoff date will be accepted at the hotel's prevailing rate based on availability--group rate name is "NASDA Annual 2007 Meeting." You can also make your reservations using the link on the NASDA website. There will not be any shuttle service to/from the airport neither by the Westin nor by Washington State staff. More information available at http://www.nasda.org/nasda2007/.