NASDA News - December 1, 2009

EPA DELAYS PIVOTAL BLEND WALL DECISION
Published: December 01, 2009

The Environmental Protection Agency (EPA) announced they will be delaying their decision on the controversial ethanol “blend wall” issue until mid-2010, thus vacating the initial deadline of Dec. 1, 2009.  In response to a request from Growth Energy, the EPA has been analyzing the potential effects an increased blend of ethanol in gasoline may have on the transportation sector, particularly fuel, engine, and emission control systems in vehicles. 

Currently, the limit of ethanol blended in gasoline is at ten percent; the Growth Energy request is to increase the level to 15 percent.  Even though they have announced that the decision will be delayed, EPA does concede it will be necessary to increase the blend limit in order to reach the mandated renewable fuels standard of 36 billion gallons by 2022.  In a letter to Growth Energy, EPA Assistant Administrator Gina McCarthy explains, “To achieve the renewable fuel requirements in future years, it is clear that ethanol will need to be blended into gasoline at levels greater than the current limit of 10 percent.” 

McCarthy further discusses the reason for delay, as well as a brief outlook, “As we are evaluating your E15 waiver petition, we want to make sure we have all necessary science to make the right decision.  Although all of the studies have not been completed, our engineering assessment to date indicates that the robust fuel, engine and emissions control systems on newer vehicles (likely 2001 and newer model years) will likely be able to accommodate higher ethanol blends, such as E15.  However, we continue to evaluate the question of component durability when E15 is used over many thousands of miles and there is an ongoing study being conducted by DOE that will provide critical date on this issue.  We are told by DOE that this program involves the complete testing of 19 vehicles to examine the long term emissions impacts of higher ethanol blends on newer motor vehicles, and is expected to be completed by August 2010.  Presently data are available on only two vehicles, however it is expected that testing will be completed on an additional 12 vehicles by the end of May.  As a result, EPA expects to have a significant amount of the total data being generated through this testing program available to us by mid-June.  Should the test results remain supportive and provide the necessary basis, we would be in a position to approve E15 for 2001 and newer vehicles in the mid-year timeframe.  Of course, if the data highlight potential problems, then the decision may need to be delayed until all testing is received and reviewed.” 

Proponents for the increase in ethanol blends have had mixed reactions of the EPA announcement.  Gen. Wesley Clark, Co-Chairman of Growth Energy, believes the delay for more testing is not a hindrance, but actually is a positive sign.  “This announcement is a strong signal that we are preparing to move to E15, a measure that will create 136,000 new U.S. jobs, cut greenhouse gas emissions and lessen America’s dependence on imported oil.” 

Meanwhile, Renewable Fuels Association President and CEO Bob Dineen observes the postponement to be detrimental to the future of domestic renewable fuels.  “This delay threatens to paralyze the continued evolution of America’s ethanol industry.  As EPA itself indicated, the scientific data to date has demonstrated no ill-effects of increased ethanol use in any vehicle currently on the road…In order to avoid paralysis by analysis, EPA should immediately approve intermediate ethanol blends, such as E12.  Allowing for a 20 percent increase in ethanol’s potential share of the market would provide some breathing room for the industry while EPA finishes its testing on E15.  Additionally, it would represent a good faith gesture that underscores the commitment President Obama has pledged to biofuels.” (Contact: David Hickey)

FEINSTEIN FOOD SAFETY BILL TAKES AIM AT FOOD PROCESSORS
Published: December 01, 2009

Yesterday, Senator Dianne Feinstein (D-CA) introduced legislation that would require food producers to take responsibility for keeping food free from harmful pathogens. 

The bill, The Processed Food Safety Act (S. 2819), would amend the Federal Meat Inspection Act, the Poultry Products Inspection Act, and the Federal Food, Drug and Cosmetic Act to prohibit the sale of any processed food that has not been certified to be pathogen free.

In announcing the bill, Senator Feinstein said, “It is the responsibility of the food producer, not the consumer, to make sure our food is safe to eat.”

The Processed Food Safety Act (S. 2819) at a Glance:

• Prohibits the sale of any processed poultry, meat and FDA-regulated food that has not either undergone a pathogen reduction treatment, or been certified to contain no verifiable traces of pathogens
• Requires that labels on ground beef, or any other ground meat product, specifically name every cut of meat that is contained in the product
• Does away with loopholes in current laws that allow for producers to add coloring, synthetic flavorings and spices to their products without informing the consumer
• Requires HHS to promulgate regulations under Section 415 of the FD&CA to require application of pathogen reduction treatments.  Section 415 is the registration requirement for food producers, which exempts farms.  (Contact: Bob Ehart)

ESTATE TAX VOTE EXPECTED LATER THIS WEEK
Published: December 01, 2009

Democratic leaders in the House of Representatives are expected to have a vote this Thursday on legislation to make the current estate tax exemption permanent.  The bill, the Permanent Estate Tax Relief for Families, Farmers and Small Businesses Act of 2009 (H.R. 4154), which was introduced by Rep. Earl Pomeroy (D-ND), would permanently extend the current exemption amount of $3.5 million ($7 million for a married couple) and the maximum tax rate of 45 percent.  Without this change, the estate tax exemption would be repealed for 2010, and then revert to an exemption of only $1 million and maximum tax rate of 55 percent in 2011.  It is anticipated the legislation will be included with the Statutory PAYGO Act of 2009 (H.R. 2920), a bill to require Congress to provide funding for any new spending.  This coupling may help for passage in the House, however, it could provide for heated debate in the Senate.

Another proposal to permanently extend the estate tax is still being discussed in Congress and has received support from the American Farm Bureau Federation, a group that has fought for a full repeal in past years.  The legislation (H.R. 3905), which was introduced by Rep. Shelley Berkley (D-NV) in the House and is supported by Sen. Blanche Lincoln (D-AR) and Sen. Jon Kyl (R-AZ), would increase the exemption level to $5 million and decrease the maximum tax rate to 35 percent.  This proposal, unlike H.R. 4154, would be indexed for inflation.  (Contact: David Hickey)

PETITION AGAINST EPA FILED IN CARBOFURAN DISPUTE
Published: December 01, 2009

FMC Corporation and a group of U.S. crop commodity associations have jointly filed a petition in a U.S. Federal Court concerning the Environmental Protection Agency’s refusal to hear objections on the recent ban of carbofuran, a pesticide widely used in corn, potatoes and soy.  In May of 2009 EPA revoked all tolerances of carbofuran, effectively prohibiting the use of the pesticide.   Since then, EPA warned growers that carbofuran should not be applied to any food crops after December 31, 2009.  Use of carbofuran after this date could result in adulterated food products, which would be subject to enforcement by the U.S. Food and Drug Administration. 

In June of 2009, FMC filed several amendment proposals to its registration under the Federal Insecticide, Fungicide, and Rodenticide Act in an effort to keep carbofuran on the market.   EPA refused to review the proposals and rejected subsequent hearing requests from FMC on the grounds that they were “irrelevant, and thus immaterial” to the decision to revoke tolerances of the pesticide. 

"EPA remains closed-minded about mitigation measures, even though FMC proposals have clearly demonstrated how such mitigation is possible and indeed allow product use to meet the EPA safety standard even under the Agency's worse case assumptions," said Dr. Michael Morelli, Director of Global Regulatory Affairs at FMC.

EPA has said that FMC would be able to continue to pursue proposed amendments to its carbofuran registration and to re-establish tolerances in light of the amendments.  (By: Ethan Mathews, Policy Contact: Nathan Bowen)

MULTI-STATE PARTNERSHIP/SAADRA INAUGURAL MEETING
Published: December 01, 2009

Agriculture and emergency management representatives from twenty-two states convened at the Raleigh Convention Center earlier this month for the inaugural meeting between the Multi-State Partnership for Security in Agriculture (MSP) and the Southern Agriculture and Animal Disaster Response Alliance (SAADRA).   The event, held November 2 – 4, provided the organizations with a forum to share information and strategies on agriculture emergency preparedness and response.

“When you look at some of the threats and challenges facing the states in the [Multi-State] Partnership, things like floods, droughts, and foreign animal diseases, you start to realize every bit of this can and does happen in the South,” said Dr. Jimmy Tickel, a veterinarian with the North Carolina Department of Agriculture and Consumer Services, and North Carolina’s representative to SAADRA.  “So we saw a great opportunity to bring the two groups together to talk about what’s been done to solve these problems and how we can work together to solve them in the future.”

The organizations met jointly for two full days to discuss, among other topics, Foot and Mouth Disease (FMD) response planning.  FMD has been identified by both organizations as a considerable threat to the nation’s agricultural economy.  The organizations held separate breakout sessions on Day Three.   MSP talked about future collaboration with SAADRA on a number of initiatives, including biosecurity standards, improving communications and IT capabilities, and resource sharing.  SAADRA discussed the roles and responsibilities of ESF-11 in an emergency and later participated in a table-top exercise involving a Category 4 hurricane.

The Multi-State Partnership is composed of 13 Midwestern states, including North Dakota, Oklahoma and Ohio.  SAADRA has ten member states, including Texas, North Carolina and Florida.  Kentucky is represented in both organizations.  The two groups hope to continue meeting jointly and support other areas of the country in the development of agricultural security partnerships.  (Contact: Joseph Gilroy, joseph.gilroy@ncagr.gov)

CONSUMERS TO FIND MORE AVAILABILITY OF BIODIESEL BLENDS
Published: December 01, 2009

Agriculture officials in Minnesota and South Dakota are applauding a decision by a petroleum distribution company to increase the availability of winter biodiesel in their states.  Minnesota Agriculture Commissioner Gene Hugoson and South Dakota Agriculture Secretary Bill Even say the decision of Magellan Midstream Partners, L.P., to install winter biodiesel blending equipment at their Sioux Falls terminal is a win-win situation for farmers and biodiesel consumers in both states.

Commissioner Hugoson says the Minnesota Biodiesel Task Force has been working to find a company that would be willing to install biodiesel blending equipment at a major fueling terminal to serve southwestern Minnesota.  

“Magellan has been a good partner for the state of Minnesota as we developed our biofuels programs,” said  Hugoson.  “Magellan has supported the biodiesel industry since its infancy and they have been instrumental in ensuring the safe and effective blending of ethanol and biodiesel.”

South Dakota Agriculture Secretary Even says the facility will allow diesel consumers to gain better year-round access to quality biodiesel blends.  “This decision will have positive implications for smoother distribution of biodiesel blends in South Dakota, Minnesota and surrounding states,” Even said.  “This facility is another step toward reducing our dependency on foreign oil.”

Magellan’s COO, Mike Mears said “our multi-million dollar investment in biodiesel infrastructure at the Sioux Falls terminal comes at a time when our customers are looking for state-of-the-art systems that accurately, efficiently and safely blend biodiesel into diesel fuel.”

No state funds were used for the project.  Magellan officials say installation of the new equipment at the Sioux Falls terminal is expected to be completed in 2010 with winter biodiesel blends available by next fall.  (Contact: Margaret Hart, Margaret.hart@state.mn.us)

NC: POINSETTIAS BRIGHTEN UP THE HOLIDAYS
Published: December 01, 2009

The poinsettia is a decorating staple for the winter holidays. The plant makes a beautiful addition to any event or household with a multitude of shades - red, pink, white and marble - that can match any décor. But many may not know that North Carolina is the second largest producer of poinsettias in the United States.

“North Carolina produced about 4.6 million poinsettias in 2008 and generated cash receipts of $17.9 million,” said Agriculture Commissioner Steve Troxler. “Overall, floriculture contributes more than $207 million to our state’s economy, and poinsettias play an important role in that industry.”

Poinsettias are grown in greenhouses across the state under specific climatic requirements. The plants must receive a balance of sunlight and darkness to produce quality plants for the holiday season.

“In addition to being useful in your own holiday decorating, poinsettias make great gifts,” said Troxler. “You can purchase poinsettias at nurseries, farmers markets, garden centers, florists and even grocery stores.”

Numerous informational events will take place across the state in the coming weeks with information for both growers and consumers. Homewood Nursery and Garden Center in Raleigh will host a poinsettia open house on Wednesday, Dec. 2, from 8:30 a.m. to 6 p.m. Mitchell’s Nursery and Greenhouse in King will host a poinsettia open house Sunday, Dec. 6, from 12:30 to 4:30 p.m. The N.C. State University National Poinsettia Trial Open House will be held at the Horticulture Field Lab next to the J.C. Raulston Arboretum on Wednesday Dec. 2, from 9 a.m. to 2 p.m. for growers, and for the public on Sunday, Dec. 6, from 1 to 5 p.m.  (Contact: John Aydlett, john.aydlett@ncagr.gov)

PA: RENDELL URGES USDA, CONGRESS TO ACT QUICKLY ON BEHALF OF PA DAIRY PRODUCERS
Published: December 01, 2009

Requests USDA Release $290 Million in Funds, Make $60 Million in Cheese Purchases; Asks Congress to Consider Risk Management Subsidy for Producers

With Pennsylvania’s dairy farmers continuing to struggle with low milk prices and rising debt, Governor Edward G. Rendell is calling on the U.S. Department of Agriculture and Pennsylvania’s Congressional delegation to act quickly and help ease the crisis.

“Pennsylvania’s dairy farmers are struggling with a price crisis the likes of which we have never seen before,” said Governor Rendell. “This risks serious damage to our dairy producers, our consumers, and the state’s economy. It is my hope that the USDA and Congress will act quickly to release critical dollars that will help our farmers gain a financial foothold.”

Governor Rendell is calling on USDA to provide support to Pennsylvania’s 8,600 dairy farm families by releasing $290 million in dairy payments this month that is authorized under the 2010 federal agriculture appropriations bill. The funding will enable producers to continue their dairy operations during this very difficult economic time.

In addition, Governor Rendell asked Congress to encourage USDA to immediately make $60 million in cheese purchases to benefit the nation’s emergency food programs. This would raise the price of cheese and aid dairy producers, while also helping Pennsylvanians who are food insecure.

To help producers manage unpredictable fluctuations in the prices of dairy products, Governor Rendell also requested consideration of a federal subsidy that would enable dairy producers to enroll in risk management programs like Livestock Gross Margin, or LGM, for Dairy.

LGM for Dairy is an insurance option that helps farmers manage risk and protect their income. The program ensures the margin between the cost of feed and price of milk. Producers who are enrolled in the program can insure their margin and protect themselves from wild swings in the price of milk or feed.

Pennsylvania’s dairy industry, as its largest agricultural sector, supports more than 40,000 jobs and contributes more than $4 billion annually to the state’s economy.  (Contact: Justin Fleming, 717-787-5085)

WI: NEW PUBLICATION OFFERS REAL WORLD LESSONS FOR MARKETING GRASS-FED DAIRY PRODUCTS
Published: December 01, 2009

Grass-based Dairy Products: Challenges and Opportunities, a new publication authored by the grazing specialist at the state agriculture department, offers lessons from 11 dairy marketers using grass-fed milk in their products.

Dairy artisans use unique recipes and sometimes unique raw ingredients to make their products special. Grass-fed milk, or milk from cows that graze fresh pasture, may be one of those ingredients.  It’s gaining popularity for its unique flavor, color, and physical properties, says Laura Paine, grazing specialist with the Wisconsin Department of Agriculture, Trade and Consumer Protection. The University of Wisconsin-Madison’s Center for Integrated Agricultural Systems published the document.

One of the best known among the new grass-fed products is Pleasant Ridge Reserve cheese made by Uplands Cheese Company near Dodgeville. Dairy farmers Mike Gingrich and Dan Patenaude developed this cheese in 2001 after researching European cheeses from traditional grass-based dairies in the Alps.

“Mike and Dan have a great success story,” Paine said.  “They came up with a cheese recipe that complements the flavor and texture of grass-fed milk. Their cheese won ‘Best of Show’ the first time they entered it in the American Cheese Society contest. That got them off to a good start!”

Not all of the marketing efforts summarized in the publication have gone so well. Some have struggled to gain a foothold in the marketplace and one or two didn’t survive. The process of pooling milk from multiple grass-based dairies, getting it to a processing plant, making a consistent, high quality product, and getting it onto store shelves has proved  challenging for some of these mostly farmer-owned companies.

“My goal with this publication was to help this fledgling sector grow by allowing them to learn from both the successes and the challenges that others have had,” said Paine. “This is how the grazing community has built its collective grazing skills. Now we can help each other build the market side of the industry.”

Paine is also coordinating a three-year research project to investigate the differences between grass-fed and conventional milk. “Processors who have worked with pasture milk know that it looks, handles, and tastes different,” she said. “Our goal is to characterize those differences and match this specialty milk to the types of products that are best suited to it.”

The research team includes some of the farmer-marketers highlighted in the publication, plus University of Wisconsin forage, dairy, and food scientists.  “We’re also working with two chefs who are helping us understand the culinary differences of grass-fed milk,” said Paine. “With the research project and the publication, we’re hoping to build a strong foundation for a grass-fed dairy market.”  (Contact: Laura Paine, 608-224-5120)

VA: CHRISTMAS SPIRIT FOUNDATION DELIVERS HOLIDAY CHEER TO TROOPS AND MILITARY FAMILIES
Published: December 01, 2009

The 2009 Trees for Troops program, sponsored by the Christmas SPIRIT Foundation and FedEx Corp. and the Virginia Christmas Tree Growers Association (VCTGA) will be making stops in Harrisonburg, Louisa, Radford, and Whitetop, Virginia to collect trees donated by Christmas Tree Growers throughout the Commonwealth of Virginia.

Volunteers will collect, prepare and load hundreds of donated trees onto FedEx Freight trucks that will be delivered to U.S. military bases. Over 700 trees are expected to be donated by Virginia Growers.

For the fifth consecutive year, Christmas Tree Growers nationwide have donated real Christmas Trees for military families. This year, 15,000 trees are expected to be delivered to U.S. military bases, as well as an international shipment to military bases overseas.  (Contact: Elaine Lidholm, Elaine.Lidholm@vdacs.virginia.gov)