NASDA News- June 8, 2009

NASDA SENDS CLIMATE CHANGE LETTER TO PELOSI
Published: June 08, 2009

On June 3, NASDA President Ron Sparks sent a letter to House Speaker Nancy Pelosi urging her to ensure the House Committee on Agriculture has the opportunity to review and amend the American Clean Energy and Security Act of 2009 (H.R. 2454), the climate change legislation currently in the House.

            The bill, which already passed the House Energy and Commerce Committee, is under the jurisdictional authority of nine committees in all, including Chairman Collin Peterson’s (D-MN) agriculture panel.  There are many issues, including an inadequate domestic offset program, which still need to be addressed in the bill.  At time of publication, the House Committee on Agriculture has only scheduled a hearing to simply discuss the legislation this Thursday afternoon (June 11). (Contact: David Hickey and Nathan Bowen)

EPA OPPOSES REQUEST FOR REHEARING OF NPDES CASE
Published: June 08, 2009

In a brief filed with the U.S. Court of Appeals for the 6th Circuit last week, the Environmental Protection Agency (EPA) opposed a request by a coalition of agricultural groups for a rehearing of National Cotton Council v. EPA.  If a rehearing of the case is not granted and the court’s original decision is allowed to stand, agricultural producers will be required to obtain permits under the Clean Water Act’s National Pollutant Discharge Elimination System for pesticide applications in, over or near water. 

            EPA argued that the agricultural coalition is reading the decision too broadly and that the court should instead grant a two year stay of the mandate to allow EPA time to implement the court’s decision. 

            In a May 8 letter to the 6th Circuit, NASDA urged the full court to rehear the case.  Separately, NASDA had asked EPA Administrator Jackson to support the rehearing request as well.  (Contact: Nathan Bowen)

SECRETARY VILSACK ANNOUNCES $1 BILLION IN ELECTRIC LOANS
Published: June 08, 2009

Last week, Agriculture Secretary Tom Vilsack announced the recipients of more than $1 billion in electric loans.  These loans, which will be distributed amongst 37 rural utilities and cooperatives in 29 states, will be utilized to build and repair more than 10,000 miles of distribution and transmission lines, and make system improvements.  This funding is provided through the USDA Rural Development’s Electric Programs.

            "President Obama is delivering on his commitment to invest in rural America's infrastructure by funding upgrades to rural utilities and cooperatives," remarked Secretary Vilsack. "Rural communities need affordable up-to-date electric service in order to broaden economic opportunities. These loans will enable cooperatives to deliver improved service to more customers."

            For more information on this program, as well as a list of the utilities and cooperatives set to receive the funding, please visit www.rurdev.usda.gov. (Contact: David Hickey

SECRETARY VILSACK OPENS 2009 USDA FARMERS MARKET SEASON
Published: June 08, 2009

Agriculture Secretary Tom Vilsack opened the 14th season of the USDA Farmers Market season on June 5 with a ceremony at USDA Headquarters. The USDA Farmers Market features farmers from Pennsylvania, Maryland and Virginia selling their locally grown produce and other items.

            “One of USDA's top priorities is to encourage eating fresh - and locally grown - fruits and vegetables” Vilsack said. “At farmers markets, especially during the summer months, these are abundantly available.” The site of the USDA Farmers Market is adjacent to “The People’s Garden,” on which Vilsack broke ground earlier this year.

            “The People’s Garden” is a vegetable garden on USDA property that recently was expanded to include sustainable landscaping for the entire grounds. Starting on May 21 and each week since, USDA has harvested and donated more than thirty 10-gallon bags of romaine, butter, red and green leaf lettuce, mixed greens of arugula, red and green chard as well as spinach, along with boxes of radishes, cilantro and sugar snap peas to the DC Central Kitchen. The DC Central Kitchen offers job training in culinary and food service skills to DC’s  homeless, which has received unsold food donations from the USDA Farmer’s Market since 1996.

            The Agricultural Marketing Service (AMS) posts a comprehensive list of farmers markets on its web site at http://apps.ams.usda.gov/FarmersMarkets. The National Directory of Farmers Markets currently lists more than 4,700 farmers markets, up from about 4,400 only three years ago. The number and popularity of farmers markets continue to increase as more and more Americans discover their many benefits. Farmers markets, an important alternative marketing outlet for farmers and food producers, offer consumers greater access to locally grown, farm-fresh produce. Farmers markets also offer consumers the opportunity to interact with local farmers and producers. Additional information about “The People's Garden” is available at www.usda.gov/peoplesgarden. (Contact: Charlie Ingram)

HOUSE AND SENATE HOLD CFTC HEARINGS

            The House Agriculture Subcommittee on General Farm Commodities and Risk Management reviewed the implications of the CFTC v. Zelener case, a 2004 federal circuit court decision that impacted the Commodity Futures Trading Commission’s (CFTC) ability to protect consumers engaging in contracts in the foreign currency exchange (forex) market.

            The Subcommittee heard testimony from witnesses about the changes the 2008 Farm Bill made to clarify the CFTC’s authority to police the forex markets and the potential implications the Zelener decision may still have for consumers. Subcommittee Chairman Leonard Boswell (D-IA) asked the three witnesses to devise a more cohesive plan.

            Daniel Roth, President and Chief Executive Officer of the National Futures Association, said it is time to restore regulatory protections to all retail customers. “This Subcommittee can play a leading role in protecting customers from the unregulated boiler rooms,” Roth said, “that are currently taking advantage of the Zelener loophole for metals and energy products.”

            Stephen Obie, Acting Director of the Division of Enforcement of the United States CFTC, said the Zelener case has created more fraudsters that are out of reach of the CFTC. He suggested that Congress expand the CFTC’s authority over boiler rooms offering metal, energy, and other commodity contracts to retail customers.

            Philip Feigin, on behalf of Monex Deposit Company, said that the states should be responsible for regulating protection through the Model State Commodity Code, instead of overtaxing the CFTC.

            In the Senate, CFTC Chairman Gary Gensler told the Senate Agriculture Committee that the Obama administration wants to regulate all Over-the-Counter (OTC) derivatives. The administration is asking Congress to take steps to make sure that such products don’t fly under the regulatory radar by strengthening their supervision. Lawmakers who favor OTC derivatives said that Treasury Secretary Timothy Geithner’s plan outlined last month does not have strong enough oversight on customized derivatives and swaps designed for specific companies. Lawmakers who oppose the OTC derivatives want customized derivatives subjected to the same regulations as all other derivatives. (Contact: Kasey Miller or David Hickey)

MONTANA CENTERS TO FOCUS ON LOCAL FOOD & BIOENERGY
Published: June 08, 2009

HELENA, Mont. -- The Montana Department of Agriculture has issued a request for proposals to implement legislation designed to help Montana agriculture meet more of the state's food and renewable energy needs.

            House Bill 583, passed by the 2009 Montana Legislature, provides $240,000 per year to fund four Food and Agriculture Development Centers to provide technical assistance needed to increase the capacity of Montana's farmers, ranchers and other Montana entrepreneurs to produce food and value-added agricultural products, including farm-derived renewable energy. Under the legislation, applicants must be Certified Regional Development Corporations or nonprofit organizations that serve at least a four-county region and have existed prior to January 1, 2009.

            The four Food and Agriculture Development Centers are intended to operate as a statewide network that can offer a broad array of value-added, agriculture-related educational and technical assistance to individuals, cooperatives and businesses seeking to develop agricultural, food and farm-based energy products. Some of these services have been offered through six regional Bio-Product Innovation Centers, which were funded under a federal Workforce In Regional Economic Development grant set to expire in January 2010.  The food and agriculture centers will be able to offer additional services including product development and testing, market research, business development assistance and education on regulatory compliance, safe storage and handling.

            Montana and other surrounding states produced most of their own food a half century ago, notes Ron de Yong, director of the Montana Department of Agriculture. That capacity was lost following World War II with the advent of cheap global transportation and centralized processing and distribution. Consumers are expressing renewed interest in locally grown food, he said, and the four centers will provide one step toward rebuilding the infrastructure to support local production.

            Continuing the energy and bio-fuels development efforts started during the past few years also is important in rural Montana. "We see this as an exciting new avenue for farmers and ranchers to diversify their operations, and for entrepreneurs to add value to Montana commodities," de Yong said.  The deadline for proposals to operate the centers is June 30, 2009.  For more information about the process or plans for the centers, contact Perri Walborn at the department at (406) 444-2402 or by e-mail at agr.mt.gov. (Contact: Ron Zellar a: 406-444-3684)

COMMISSIONER WEATHERS RALLIES SUPPORT FOR NEW PALMETTOVORE MOVEMENT
Published: June 15, 2009

Certified South Carolina Grown fruits and vegetables rallied May 20 at the South Carolina State House along with SC Commissioner of Agriculture Hugh E. Weathers and other state and industry leaders to introduce a new movement, Palmettovore, that encourages South Carolinians to purchase and consume only produce and products grown and processed in South Carolina.

            While the name may be new, Palmettovore is a tried and true concept. In other parts of the United States, people who participate in this lifestyle are referred to as Locavores, and their numbers are growing rapidly across the country. While Locavores eat food grown within 100 miles of where they live, Palmettovores have a somewhat more refined geographical preference for Certified SC Grown produce and products from the Palmetto State.

            Commissioner Weathers addressed the audience explaining the benefits of eating and buying locally and what it means to be a Palmettovore. “Eating the Palmettovore way is fresher and healthier, reduces our carbon footprint since food travels a shorter distance, and helps support our local farmers, which contributes to South Carolina’s agribusiness industry and overall economy,” said Weathers. “As the Palmettovore movement grows, it will support sustainable, local food production, processing and distribution networks that reach supermarkets and restaurants statewide.”

            Certified SC Grown fruits and vegetables were on site carrying signs with slogans such as “Home Grown and Proud” and “Eat Local, Be A Palmettovore”. Spokesman of the group, Tom Tomato, took the podium to discuss why they are very concerned about being underemployed due to South Carolinians not choosing to purchase and consume Certified SC Grown produce and products. “We need work. We are tired of being passed over by the people that could help us the most as South Carolinians.” To further their cause, Tom Tomato and his friends are starring in their own documentary that is currently featured on palmettovore.org. (Contact: Becky Walton at 803-734-2182)

VIRGINIA AGRICULTURAL PRODUCERS INVITED TO JAPANESE TRADE MISSION
Published: June 08, 2009

Travel for overseas food shows and trade missions is prohibitively expensive for many agricultural producers, so the Virginia Department of Agriculture and Consumer Services (VDACS) is bringing the trade mission to Virginia.  In cooperation with the Southern United States Trade Association (SUSTA), VDACS offers food processors the opportunity to introduce their products to Japanese buyers and a chef in Richmond on June 26 and at the New York Fancy Food Show June 27 – 30.

            “Virginia farmers are already doing business successfully with Japan,” said VDACS Commissioner Todd P. Haymore. “We export more than $25 million worth of product annually now, including poultry, meat products and food-grade soybeans.  This is a golden opportunity to expand those exports, and potentially to give some of our producers a high profile at the Tokyo Chef Demonstration in October.  I encourage producers to consider this opportunity carefully and to call quickly to schedule an appointment.  Time slots are limited, and we will accept appointments on a first-come, first-served basis.”

            Japan is the world’s largest market for imported consumer foods and the largest overseas market for the U.S.  The country boasts a strong total food market of $727 billion, with food product imports at $10 billion and growing.  Domestic farming in Japan is declining, creating a greater need for foreign agricultural imports. Japan imports a wide variety of fresh and processed foods.  The best candidates for export to Japan are cereals, berries, juices, cakes/waffles/pies, sauces and seasonings, spicy foods, canned vegetables, seafood and snack foods.

            The Japanese are particularly attracted to the U.S. market because of the strong Japanese yen versus the weak dollar.  U.S. food products appeal to the Japanese as they coincide with food preferences and trends: a willingness to pay higher prices for quality foods, emphasis on nutritious and healthy foods, growth in the ready-to-eat sector with an increase in single households and women in the workforce, and concern with food safety and demand for certifications and production information.

            Two Japanese buyers and a chef will participate in the trade mission.  Interested producers should contact Keith Long at VDACS to schedule one-on-one meetings in Richmond or at the New York Fancy Food Show.  Producers may be selected to demonstrate their products at a show in Tokyo in October 2009.  The chef and buyers will select products they would like to include in the fall chef seminar/demonstration.  SUSTA will pay for shipping samples to Tokyo. Producers interested in taking advantage of this opportunity should contact Keith Long in VDACS’ Office of International Marketing.  Call 804.371.8990 or e-mail keith.long@vdacs.virginia.gov.  For information on additional domestic and international trade events, go to the VDACS Web site at: http://www.vdacs.virginia.gov/news/t-events.shtml (Contact: Elaine Lidholm at 804-786-7686)

GOEHRING WANTS STUDY OF ECONOMIC IMPACT OF â€CAP AND TRADE BILL
Published: June 08, 2009

BISMARCK – Agriculture Commissioner Doug Goehring has asked for a university study to help North Dakota farmers, ranchers and farm organizations better understand the economic impact and other possible effects of proposed federal legislation establishing a federal “cap and trade” system for greenhouse gases.

             “The American Clean Energy & Security Act of 2009, also known as the Waxman-Markey Bill, could have a significant impact on North Dakota agriculture,” Goehring said. “It is imperative that North Dakota producers and the agricultural organizations that represent them clearly understand the implications of this bill.” Goehring has asked Won Koo, director of the Center for Agricultural Policy & Trade Studies at North Dakota State University, to conduct the economic impact analysis.“Dr. Koo and his team are respected researchers in the field of agricultural policy, especially the economics of agriculture,” Goehring said. “I am confident the model they create will shed more light on the economic impact to production agriculture and its supporting industries.”

            Goehring said several national agricultural organizations are carefully monitoring this legislation and have developed a list of principles that they feel must be included in order to support the legislation. “The principles include removing agriculture from the emissions cap and recognizing the wide range of carbon mitigation or sequestration benefits that agriculture can provide,” Goehring said. The American Soybean Association, National Association of Wheat Growers, National Cattlemen’s Beef Association, National Corn Growers Association, National Farmers Union, National Milk Producers Federation, National Pork Producers Council, and the USA Dry Pea & Lentil Council are among the organizations supporting the principles.

            “The Waxman-Markey Bill was recently passed out of the House Energy and Commerce committee, and may now be considered by other committees, including the House Agriculture Committee,” Goehring said. “Although the legislation may change dramatically as it is considered by various committees, it does not appear to be acceptable in its present state to the agricultural community.”

            Cap and trade is a policy for controlling greenhouse gas emissions. The government sets a cap on the amount of carbon emissions. Companies and other entities are issued emission permits and must hold an equivalent number of credits that allow them to emit a specific amount of carbon. The total credits cannot exceed the cap. Companies that need to increase their emissions must buy credits from those that emit less carbon in a transfer of credits, known as a trade. “Passage of cap and trade legislation, even if it excludes agriculture, may result in increased costs to business and industry – costs that will ultimately be shouldered by all segments of society, including farming and ranching,” Goehring said. “We need a detailed analysis and study to help us better understand the issues and to make informed decisions about this legislation.” (Contact: Ted Quanrud at 701-328-233 or Patrice Lahlum at 701-239-7210)