NASDA News -- August 4, 2009

6TH CIRCUIT DENIES PESTICIDE CASE REHEARING REQUEST
Published: August 04, 2009

The Sixth Circuit Court of Appeals yesterday rejected a request by a coalition of agriculture organizations for the entire Sixth Circuit to rehear an earlier decision by the Court regarding pesticide applications near water.  A three-judge panel of the Sixth Circuit ruled in January that pesticide applications in, over, and near water require National Pollutant Discharge Elimination System (NPDES) permits under the Clean Water Act. 

NASDA strongly opposed the Court’s decision and petitioned the Court for a hearing.  In a letter filed with the Court in May, NASDA argued that the decision significantly undermines NASDA members’ authority under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).  The decision will also result in a significant increase in the number of NPDES permits issued, creating strain on the permitting system.  NASDA also expressed concerns with the financial impacts the decision will have an agriculture producers and their exposure to citizen action suits under the Clean Water Act.

The agriculture petitioners will have 90 days to decide whether to appeal the decision to the U.S. Supreme Court. 

Separately, EPA sought—and received—a two-year stay of the decision in order to allow for time to develop a permit.  EPA is currently developing a narrow general permit to comply with the decision.  Reports indicate a prototype could be circulated to stakeholders by the end of this month for input and discussion.  (Contact: Nathan Bowen)

FOOD SAFETY LEGISLATION PASSES THE HOUSE
Published: August 04, 2009

Last week, the House of Representatives passed sweeping food safety legislation, the Food Safety Enhancement Act of 2009 (H.R. 2749).   On Wednesday, the bill failed its first test in the full House as it failed to reach the two-thirds majority required under expedited suspension of the rules procedures (Roll no. 657).  However, after further negotiations between leaders from the Energy and Commerce and Agriculture Committees, the legislation eventually passed on Thursday afternoon (Roll no. 679).   

Leading up to the debate and subsequent final vote on the House floor, NASDA weighed in against passage of the bill.  Even though critical improvements for the agricultural industry were made through the negotiations, such as additional exemptions for farmers, which will still be regulated by USDA, the legislation did not include issues important to the states.  Specifically, the legislation lacked an integrated federal, state and local food safety system and a mechanism to assure capacity building grants to state and local agencies.  (Contact: Bob Ehart)

USDA INCREASES DAIRY SUPPORT PRICES
Published: August 04, 2009

Agriculture Secretary Tom Vilsack announced an increase in dairy support prices to provide immediate assistance to the struggling dairy industry.  This increase, which was heavily supported by the dairy industry, as well as on Capitol Hill, will provide $243 million in increased revenue to American dairy producers.  The support price increases, which will be in effect from August 2009 to October 2009, include nonfat dry milk from $0.80 per pound to $0.92 per pound, cheddar blocks from $1.13 per pound to $1.31 per pound, and cheddar barrels from $1.10 per pound to $1.28 per pound.  (Contact: David Hickey)

SENATE POISED TO LEAVE MAP FUNDING INTACT
Published: August 04, 2009

The Senate is expected to vote today on the FY 10 Agriculture Appropriations bill (H.R. 2997).  As reported by the Senate Appropriations Committee, the bill includes full funding of $200 million for the Market Access Program (MAP) and $34.5 million for the Foreign Market Development program (FMD).  Twelve Senators have agreed to sign Senator Dianne Feinstein’s (D-CA) letter to Office of Management and Budget (OMB) Director Peter Orzag and Agriculture Secretary Tom Vilsack in support of full funding for MAP and for maintaining branded promotion as an important component of the program.  The twelve Senators include Barbara Boxer (D-CA), Charles Grassley (R-IA),  Charles Schumer (D-NY), Debbie Stabenow (D-MI), Tom Harkin (D-IA), Saxby Chambliss (R-GA), Blanche Lincoln (D-AR), Mark Pryor (D-AR), Max Baucus (D-MT), Bill Nelson (D-FL), Mike Crapo (R-ID) and Patty Murray (D-WA).  (Contact: Amy Mann)

ADMINISTRATION CONVEYS SUPPORT FOR ETHANOL TARIFF
Published: August 04, 2009

Key Obama Administration officials conveyed their support this week for the controversial U.S. ethanol tariff.  In a letter responding to concerns by Senator Chuck Grassley (R-IA) over the Administration’s nominee for ambassador to Brazil, Secretary of State Hillary Clinton and U.S. Trade Representative Ron Kirk clearly laid out their support for the $0.54 per gallon tariff on foreign ethanol.  The letter states, "The Obama administration is committed to developing our domestic biofuels industry in order to reduce U.S. dependence on oil imports and increase our use of renewable energy resources. There has been no change of policy with respect to the U.S. import surcharge of $0.54 per gallon on ethanol.  The administration has no plans to seek changes to the import surcharge." (Contact: David Hickey)

COMMENTS SOUGHT ON FREE TRADE AGREEMENTS
Published: August 04, 2009

The United States Trade Representative (USTR) has published two requests for comments regarding the free trade agreements (FTAs) with Korea and Colombia.  The first, published July 27, seeks an assessment on how and to what extent the US – KOREA FTA (signed on June 30, 2007) makes progress in achieving the applicable purposes, policies, priorities, and objectives of the Bipartisan Trade Promotion Authority Act of 2002 and carries out the provisions of the May 10, 2007 Congressional-Executive Agreement on Trade Policy. The second request, published July 29, seeks input on labor-related issues in the context of the US – COLOMBIA FTA (signed on November 22, 2006, and amended on June 28, 2007).  Neither FTA has yet entered into effect. Written comments for both requests are due by noon, September 15, 2009. Additional information on the Korean FTA is available here and information on the Colombian FTA is available here.  (Contact: Amy Mann)

RURAL DEVELOPMENT LOAN APPLICATIONS AVAILABLE
Published: August 04, 2009

USDA is now accepting applications for up to $1.7 billion to fund projects through the Rural Development Business and Industry Guaranteed Loan program.  This funding, which was provided by the American Recovery and Reinvestment Act of 2009, is made available to help spur business activity and economic growth in rural communities by supporting the development of private businesses.  USDA will accept applications for the Business and Industry Guaranteed Loan program until Sept. 15, 2010, or until all funds are expended.  (Contact: David Hickey)

FDA ANNOUNCES DRAFT GUIDANCE DOCUMENTS FOR 3 CROPS
Published: August 04, 2009

The FDA Friday announced it is seeking comment on its draft guidance documents to improve the safety of tomatoes, leafy greens and melons.  These Commodity Specific Guidance documents (CSGs) are intended for growers, packers, processors, transporters, retailers, and others throughout the supply chains.  The documents can be found here.  (Contact:  Bob Ehart or Amy Mann)

BIOMASS CROP ASSISTANCE PROGRAM OFFICIALLY BEGINS
Published: August 05, 2009

Last week, USDA Farm Service Agency (FSA) Administrator Jonathan Coppess announced the beginning of the application process for the Biomass Crop Assistance Program (BCAP).  This program, which will provide matching payments for the collection, harvest, and storage (CHST) of eligible material delivered to biomass conversion facilities, was established by the Food, Conservation, and Energy Act of 2008 (2008 Farm Bill).  At a rate of $1 for $1 per dry-ton equivalent, the matching CHST payments are capped at $45 per dry-ton equivalent. For more information on BCAP, biomass conversion facilities and material owners or producers should contact their FSA state office or visit www.fsa.usda.gov.