NASDA News --July 28, 2009

USDA PREDICTS AG BENEFITS FROM CLIMATE BILL, BUT QUESTIONS STILL UNANSWERED
Published: July 28, 2009

USDA predicts positive outcomes for agriculture in its new economic analysis of the American Clean Energy and Security Act (H.R. 2454), the climate change legislation which passed the House of Representatives last month. Agriculture Secretary Tom Vilsack, along with other critical agriculture stakeholders, testified on the new report and the potential impacts of the climate legislation.

USDA’s analysis shows that the agricultural sector will have modest short-term costs and net benefits, with possible significant long term benefits. Secretary Tom Vilsack said that short term costs of the bill would remain low because of the bill’s provisions to keep fertilizer prices low. The impact on net farm income is less than a one percent decrease. He said that the agricultural offset market should cover the costs, and fertilizer manufacturing would be unaffected until 2025. Longer term costs would rise, but remain relatively low, ranging from 3.5 to 7.2% decreases in net farm income.

Vilsack said this analysis is conservative because it assumes no technological change, no alteration of inputs in agriculture, and no increase in demand for bio-energy as a result of higher energy prices. He said that the offset market would be highly beneficial to farmers. Selling carbon offsets “could generate gross domestic agricultural and forestry offset revenues of $2 billion per year in real 2005 dollars in the near term, rising to about $28 billion per year in real 2005 dollars in the long term.”

This early USDA analysis reports similar conclusions to the University of Missouri’s Food and Agricultural Policy Research Institute (FAPRI) report. The FAPRI report is criticized for only focusing on the bill’s impact on Missouri agriculture. The FAPRI report predicts relatively modest impacts such as an 8.8% cost increase for irrigated corn in Missouri by 2050. The American Farm Bureau Federation (AFBF) predicts a 9% increase in corn production costs by 2020.

The Farm Bureau also assumes that 40 million acres of crop or pastureland could be converted into forestry in the bill’s aforestation language. When questioned regarding the affects of aforestation efforts, both Secretary Vilsack and Environmental Protection Agency (EPA) Administrator Lisa Jackson failed to provide specifics about the amount of land taken out of production and the price increases of commodities, food and feed.

Senator Mike Johanns (R-NE), a former Agriculture Secretary under President George W. Bush, warned Secretary Vilsack, “Unless you can quantify this, you can’t sell this plan. It’s only a hope and a prayer. It is no conciliation to stand with one foot in the campfire, one in the ice bucket and say on average, I’m in good shape.” Other Senators also conveyed concerns regarding the new report, which included a lack of information regarding the likely impacts on ranchers and the livestock industry, as well as the legislation’s potential effects on food prices.  (By: Kasey Miller, Policy Contact: David Hickey)

SENATE EXAMINES GREEN JOBS
Published: July 28, 2009

Climate change legislation continued to draw attention on Capitol Hill this week as the Senate Environment and Public Works Committee held a hearing on Tuesday concerning the relationship between climate change legislation, jobs and economic growth. Senators heard testimony from the governors of Colorado, Washington, North Dakota and New Jersey, along with other local officials, concerning the impacts the American Clean Energy and Security Act (H.R. 2454), climate change legislation which passed the House of Representatives last month, will have on their local economies.

Chairwoman Boxer (D-CA) stated that “we are facing two historic challenges today – the current recession, and the dangers of unchecked global warming.” “We have the opportunity to address both with a single solution that will create millions of clean energy jobs in America, reduce our dependence on foreign oil, and protect our children and grandchildren from pollution.”

Critics of the climate change legislation acknowledged the fact that something needs to be done concerning climate change legislation, but are concerned about what affects new “green” jobs created by the bill would have on current jobs. The Honorable John Lowrey, a member of the Arkansas House of Representatives, noted for the committee that passage of H.R. 2454, as it stands, would “destroy more jobs than it would create and that a cap and trade system would spell economic disaster.” Lowrey also stated that “rural America would perish” if Waxman-Markey was passed as it is currently worded. (By: Austin Miles, Policy Contact: David Hickey)

CLEAN WATER ACT EXPANSION SCRUTINIZED IN HOUSE HEARING
Published: July 28, 2009

Efforts to expand federal jurisdiction under the Clean Water Act faced opposition during a hearing of the House Small Business Committee last week. Representatives from the agriculture industry and small business advocates testified in the hearing that proposals to extend jurisdiction would negatively impact agriculture producers and other rural small businesses.

Members of the Committee on both sides of the isle expressed serious reservations over legislation that passed out of the Senate Environment and Public Works Committee last month. The legislation, the Clean Water Restoration Act (S. 787), would extend federal jurisdiction over such waterways as intrastate waters, isolated ponds, and intermittent streams, by removing “navigable” from the definition of “waters of the United States.” 

Witnesses before the committee cited increased costs, new regulatory burdens, and threats of lawsuits as the likely results of the proposed legislation. 

Members of the committee expressed similar concerns and pointed out that the current permit backlog of 15,000 to 20,000 requests would be compounded by thousands more if the legislation was enacted.  (Policy Contact: Nathan Bowen)

CONGRESS SEARCHING FOR ANSWERS TO DAIRY CRISIS
Published: July 28, 2009

Congress is searching for answers to the nationwide dairy crisis. The House Agriculture Subcommittee on Livestock, Dairy and Poultry has held two hearings of a three hearing series to understand the plight of the dairy industry and to find possible solutions.

Possible short term solutions given by representatives of the dairy industry were varied, and included raising the support price, raising Milk Income Loss Contract (MILC) payment percentages, setting a definite price floor, stopping the import of foreign dairy products, and just letting the market cycle.

Dairy organizations of all sizes were represented at the hearings, including the Associated Milk Producers, Inc., Georgia Milk Producers, National Family Farm Coalition, National Farmers Union and independent dairy farmers.   (By: Kasey Miller, Policy Contact: David Hickey)

NEW CATEGORY PROPOSED FOR CERTAIN NURSERY PLANT IMPORTS
Published: July 28, 2009

The US Department of Agriculture Animal & Plant Health Inspection Service is proposing to establish a new category of regulated articles in the regulations governing the importation of nursery stock, also known as plants for planting, and will consider any comments received on or before October 21, 2009.

The new category would list taxa of plants for planting whose importation is not authorized pending pest risk analysis. In addition, this new category would allow APHIS to take prompt action on evidence that the importation of a taxon of plants for planting may pose a risk while continuing to allow for public participation in the process.

If scientific evidence indicated that the taxon of plants for planting is a potential quarantine pest or a potential host of a quarantine pest, APHIS would publish a notice that would announce its determination that the taxon is a potential quarantine pest or a potential host of a quarantine pest, cite the scientific evidence it considered in making this determination, and give the public an opportunity to comment on the determination. If the Department received no comments that prompt a change to its determination, the taxon would subsequently be added to the new category.

Any person would be able to petition for a pest risk analysis to be conducted for a taxon that has been added to the new category. After the pest risk analysis was completed, further action might be to remove the taxon from the category and allow its importation subject to general requirements, allow its importation subject to specific restrictions, or prohibit its importation.

USDA would consider applications for permits to import small quantities of germplasm from taxa whose importation is not authorized pending pest risk analysis, for experimental or scientific purposes under controlled conditions.

The proposed rule can be found here. (Contact: Amy Mann)

USDA AND ENERGY ANNOUNCE BIOFUEL RESEARCH FUNDING
Published: July 28, 2009

Agriculture Secretary Tom Vilsack and Energy Secretary Steven Chu jointly announced awards of $6.3 million for biofuel production research efforts. The grant funding will focus on fundamental genomics-enabled research, which researchers believe will lead to the improved use of plant feedstocks for biofuel production. Through a joint Department of Energy (DOE) and Department of Agriculture (USDA) program, which began in 2006, these grants are primarily utilized to research the potential for lignocellulosic materials for bioenergy and biofuels. For more information on the individual awards and the DOE-USDA biomass genomics research program, click here.

USDA ANNOUNCES NEW EU DAIRY EXPORT SYSTEM
Published: July 28, 2009

USDA has announced that a new system for dairy exporters to request European Union Health Certificates electronically. It allows exporters to apply via the internet and then track their application once it has been received, accepted and processed by USDA’s Agricultural Marketing Service.   This replaces the current system which requires applications to be sent through regular mail or fax and does not allow progress tracking of applications. Instructions and the electronic request form for export documents can be found on online.

USDA-NASS RELEASES NEW GEOSPATIAL DATA PRODUCTS
Published: July 28, 2009

USDA’s National Agricultural Statistics Service (NASS) has released new satellite images depicting agricultural land cover for the 2008 crop year. The images, referred to as the Cropland Data Layer (CDL), identify geospatial crop locations in three U.S. regions: the Mid-Atlantic and, for the first time, the Southwest and Southeast.

The CDL information is a useful tool for projects ranging from monitoring crop rotational patterns, land use change and environmental modeling, to water resource and carbon emission management. Agribusinesses and farmers, as well as government, researchers and academic institutions, use the CDLs to study pesticide risk, epidemiology, transportation, fertilizer usage and potential, market data analysis and carbon dioxide fluxes.

The entire inventory of CDL products, including metadata and accuracy assessments, is available online at the USDA National Resource Conservation Service’s Geospatial Data Gateway at: http://datagateway.nrcs.usda.gov) and the NASS website at: http://www.nass.usda.gov/research/Cropland/SARS1a.htm. (Contact: Charlie Ingram)  

MI: DEPARTMENT OF AGRICULTURE GOES SOCIAL
Published: July 28, 2009

The Michigan Department of Agriculture (MDA) has gone social! MDA has unveiled its updated Facebook site, Twitter account @MichDeptofAg, and its miagriculture YouTube Channel as part of its efforts to connect Michigan citizens with their agriculture roots, showcase the state’s growing opportunities in the agri-food sector, and quickly notify consumers when their food may be at risk.

“Consumers, businesses, and industry leaders can find out about food safety threats, farmers’ market events, features on ag-based businesses, and fun facts about Michigan’s $71.3 billion agri-food industry,” said Don Koivisto, MDA Director. “It’s a tremendous opportunity for consumers to learn more about the industry that grows and produces the food we eat everyday.” You can follow MDA on Twitter at www.twitter.com/MichDeptofAg. Fan us on Facebook by visting www.Facebook.com, searching for the Michigan Department of Agriculture, and click on fan. Or, find us on YouTube at http://www.youtube.com/miagriculture, or visit MDA’s home page at www.michigan.gov/mda and click on the Twitter or Facebook icon for direct link to MDA’s pages. (Contact: Jennifer Holton at: 517-241-2485 or holtonj@michigan.gov).

KY: COMMISSIONER FARMER ISSUES ‘EAT LOCAL’ CHALLENGE
Published: July 28, 2009

Agriculture Commissioner Richie Farmer challenges all Kentuckians to buy local Kentucky Proud foods and eat locally as often as possible.

When you buy local, you’re buying fresh, wholesome food for your family,” Commissioner Farmer said. “You’re also helping Kentucky’s economy. If everybody in Kentucky planned just one meal a week featuring all Kentucky Proud products, we could add an enormous amount of money to our hard-working farm families’ bottom lines.”

About 2,000 Kentucky farmers’ market vendors rang up an estimated $8 million in sales in 2007, up from $5.4 million in 2003. The Good Foods Market & Café in Lexington has joined Kentucky Proud and more than 50 food co-ops nationwide to challenge consumers to eat local this summer.

Kentucky Proud is the Commonwealth’s official farm marketing program. Kentucky Proud has generated $250 million in retail sales of Kentucky farm products through member retailers in the past three years, including $100 million in 2008. To find out more about Kentucky Proud, go to www.kyproud.com. For more information on farmers’ markets in Kentucky, go to www.kyagr.com, click on Programs, and click on Farmers’ Markets. For more information on the Eat Local, America! challenge, go to http://www.eatlocalamerica.coop/. (Contact: Bill Clary at: (502) 564-1137).

NY:DAIRY POWER PROJECT COMING TO STATE
Published: July 28, 2009

New York State Agriculture Commissioner Patrick Hooker and New York State Energy Research and Development Authority (NYSERDA) President and CEO Francis J. Murray, Jr. recently announced that New York State has been selected to host the Dairy Power Project, a pilot project coordinated by the Innovation Center for U.S. Dairy, which will aid New York’s dairy farms with managing manure waste.

The goal of the project is to set a national model for using methane digesters on dairy farms as a means of creating electricity and thereby reducing the farm’s carbon footprint. Successful use of this technology has the potential to reduce the dairy industry’s greenhouse gas emissions by 25 percent by 2020 which is equivalent to removing 1.25 million passenger cars off the road every year.

Currently, digester adoption in the U.S. has been limited by economic, institutional, technological and cultural barriers. This project will address those barriers and will coordinate efforts amongst the dairy and energy industries to help shape government regulations and conduct a market assessment to identify and prioritize regions with the greatest opportunity for methane digester adoption. For more information on the Dairy Power Summit, please contact Ron Rausch at New York State Department of Agriculture and Markets at 518-457-2771 or Jessica Chittenden at: 518-457-3136.