NASDA NEWS - January 5, 2010

USDA AND IRS FORM PARTNERSHIP TO ENSURE COMPLIANCE IN FARM SAFETY NET PROGRAMS
Published: January 05, 2010

n the final day of 2009, Agriculture Secretary Tom Vilsack announced a partnership with the USDA and the Internal Revenue Service (IRS) to aid in compliance verification for their department’s farm safety net programs.  Through a finalized Memorandum of Understanding, the USDA and IRS establish an electronic exchange process to ensure compliance with 2008 Farm Bill requirements for adjusted gross income (AGI) provisions in USDA’s Farm Service Agency and Natural Resources Conservation Service.

According to Secretary Vilsack, this new information exchange will help protect the future of the safety net.  "Today's announcement will ensure that the producers who depend upon the safety net of USDA programs will have future access to these programs by enhancing the overall integrity of the programs. It will also provide more flexibility for family farm operations across the country."

In the meantime, USDA also amended the rules governing the definition of ‘actively engaged’ in farming.  Beginning with the 2010 program year, the new rules will determine eligibility for the Direct and Counter-cyclical Program and the Average Crop Revenue Election program.  In order to be considered ‘actively engaged,’ every stockholder or member of a legal entity, such as a corporation, does not have to contribute labor or management, if both of the following apply:

• at least half of the interest in the legal entity is held by stockholders or members who are providing active personal labor or active personal management that altogether qualifies as a significant contribution to the farming operation;
• the total direct payments received, both directly and indirectly, by the legal entity and each of the members does not exceed $40,000.

For more information on the new USDA/IRS partnership, as well as program rule changes, please visit the FSA website or your local FSA office.  (Contact: David Hickey)

SURE PROGRAM OFFICIALLY UNDERWAY, PRODUCERS MAY NOW BEGIN APPLYING
Published: January 05, 2010

Established in the 2008 Farm Bill, the new Supplemental Revenue Assistance Payments program (SURE) is now available for producers who suffered crop losses during the 2008 crop year.  Signups for the SURE program began at Farm Service Agency (FSA) county offices on Jan. 4.

To be eligible for these payments, producers must have suffered at least 10 percent production loss on a crop of economic significance, must meet risk management purchase requirements, and have the farming interest located in a county, or in a contiguous county, under a Secretarial Disaster Designation.  Individual producers may also be eligible, regardless of a Secretarial Disaster Designation, if a natural disaster diminished actual farm production to less than 50 percent of the normal production.  Socially disadvantaged, a beginning farmer or rancher, or a limited resource farmer may be eligible for the program without meeting the risk management purchase requirements.  

In determining payment amounts, SURE utilizes a formula of 60 percent of the difference between the SURE ‘farm guarantee’ and total farm revenue. The amount of crop insurance and Non-insured Crop Disaster Assistance Program coverage determines the ‘farm guarantee.’  Total farm revenue is a combination of the actual value of production on the farm, plus insurance indemnities and certain farm program payments.

Please visit the FSA website or your local FSA office for more information regarding the SURE program. (Contact: David Hickey)

SENATE FAILS TO ACT ON BIODIESEL TAX CREDIT, ESTATE TAX NOW REPEALED
Published: January 05, 2010

Lost in the debate over health care reform, the Senate was unable to act on the biodiesel tax credit, thus allowing the critical incentive to expire.  Even though the situation for action was appearing dire, NASDA President Ed Kee sent a letter to Senate Leadership encouraging them to address this vital tax credit.  Unfortunately, a one-year extension was included in a controversial bill extending other expiring tax provisions, as well as, codifying new spending rules.  With these extra provisions, the time ran out on the legislation.

If key Senate leaders have their way, the tax credit will only remain expired for only a short time.  Senate Finance Committee Chairman Max Baucus, D-Mont., and Ranking Member Charles Grassley, R-Iowa, sent a letter to Senate Leadership notifying them of their plan:

“We write to inform you that early in the next year, we intend to address the extension of various tax provisions expiring on or before December 31, 2009. We intend to extend the provisions without a gap in coverage, just as the House did on December 9th of this year. The legislation will extend several important tax benefits to individuals and businesses. The legislation will also extend a number of energy tax provisions, including the biodiesel tax credit, and natural disaster relief.” 

To make up for the lost time, many anticipate the legislation to be retroactive for the biodiesel incentive.

Along with the biodiesel tax credit, the Senate also failed to address the expiring estate tax.  As a result, the estate tax is repealed for 2010, and, without further action, the tax would then revert to the original levels in 2011 with an exemption of only $1 million and a maximum tax rate of 55 percent.  In 2009, the exemption amount was set at $3.5 million and the maximum tax rate of 45 percent.  Alike the biodiesel tax credit, supporters are anticipating action by the Senate early in 2010, which, could also be treated retroactively.  However, there are potential legal challenges if applied retroactively to Jan. 1.  (Contact: David Hickey)

NASDA PRESIDENT KEE APPOINTED TO USDA FRUIT & VEGETABLE INDUSTRY ADVISORY COMMITTEE
Published: January 05, 2010

Agriculture Secretary Tom Vilsack today announced the names of members of the new Fruit and Vegetable Industry Advisory Committee. NASDA President and Delaware Secretary of Agriculture Ed Kee is among those appointed to serve on the new advisory committee.

The 25 members of the committee were selected from individuals nominated by their peers. Committee members represent fresh fruit and vegetable growers/shippers, fresh fruit and vegetable wholesalers, retailers, industry trade associations, importers, fruit and vegetable processors, foodservice suppliers, fresh-cut processors, brokers and state departments of agriculture. Each member is appointed to a two-year term.

Originally chartered in 2001, the advisory committee advises the Secretary of Agriculture on issues affecting the fruit and vegetable industry. In May 2009, USDA approved a new two-year charter for this committee.

Information about the committee's first meeting for 2010 will be published in the Federal Register and at www.ams.usda.gov/fv. Information can also be obtained by emailing mrobert.keeney@usda.gov or calling (202) 720-4722.  Other members of the advisory committee can be found online.  (Contact: Amy Mann)

EPA WANTS GREATER DISCLOSURE OF INERT PESTICIDE INGREDIENTS, OTHER CHEMICALS
Published: January 05, 2010

The Environmental Protection Agency announced December 23 that taking steps to revise federal rules related to the disclosure of inert ingredients in pesticide products.  EPA’s Advance Notice of Proposed Rulemaking outlined two approaches the agency is considering.  In one approach, EPA would require all potentially hazardous inert ingredients to be disclosed on the product’s label.  The agency is also considering requiring all inert ingredients to be listed.  Pesticide manufacturers worry these requirements could undermine confidential business information and stifle innovation.  Comments are due February 22.

The Obama administration is also advocating revisions to the 1976 Toxic Substances Control Act (TSCA) that would require greater disclosure of chemicals found in other commercial products.  (Contact: Nathan Bowen) 

EPA SEEKS INPUT ON ENFORCEMENT PRIORITIES FOR NEXT 3 YEARS
Published: January 05, 2010

EPA is seeking public comment and recommendations on enforcement and compliance national priorities to be addressed for fiscal years 2011-2013.  Included on the preliminary list released by EPA are: concentrated animal feeding operations, environmental justice, pesticides at day care facilities, wetlands, and worker protection standards.  (Contact: Nathan Bowen) 

FDA TAKES ACTION AGAINST NEW JERSEY CHEESE MANUFACTURER
Published: January 05, 2010

The U.S. Food and Drug Administration announced its intentions to ask a federal court to shut down a New Jersey cheese manufacturer with an alleged history of operating under insanitary conditions and producing cheese contaminated with Listeria monocytogenes. The U.S. Department of Justice filed a complaint for permanent injunction against Quesos Mi Pueblito.  The complaint alleges that recent inspections by the FDA and the New Jersey Department of Health and Senior Services found Listeria-contaminated cheese and insanitary conditions at the Passaic company.

If entered by the court, the injunction would stop the company from manufacturing and distributing food until they can bring their operations into full compliance with FDA food safety regulations and produce cheese that does not test positive for the presence of Listeria. Quesos Mi Pueblito currently manufactures and distributes a variety of soft, semi-soft, and hard Mexican cheeses in grocery stores and supermarkets in Connecticut, Massachusetts, New York, North Carolina, Florida, Virginia and the District of Columbia. Among Quesos Mi Pueblito’s products are queso oaxaca, queso fresco, queso requeson and queso cotija molido.  (Contact: Bob Ehart)

USTR RELEASES 2009 REPORT TO CONGRESS ON CHINA'S WTO COMPLIANCE
Published: January 05, 2010

The Office of the U.S. Trade Representative presented its annual report on China's compliance with its World Trade Organization accession obligations to Congress recently. Congress mandated the report, which highlights the status of China's ongoing work in areas such as industrial policy, intellectual property rights, agriculture and services.  While the report acknowledges that progress was made in 2009 it also identifies a number of outstanding issues in a host of areas, including agriculture.

The report focuses six areas of compliance with regard to agriculture: Tariffs, Tariff-rate Quotas (TRQs) on bulk agriculture commodities, Biotechnology Regulations, Sanitary and Phytosanitary Issues, Inspection-related Requirements and Export Subsidies.

According to the report, China has timely implemented its tariff commitments for agricultural goods each year. However, China’s administration of TRQs on bulk agricultural commodities still does not seem to be functioning entirely as envisioned in China’s WTO accession agreement, as it continues to be impaired by inadequate transparency.

The report acknowledges continuing problems with China’s biotechnology approval process but indicates that major trade disruptions have been avoided so far.

Sanitary and Phytosanitary issues continue to be an area of deep concern.  Non-transparent SPS measures that appear to lack scientific bases, including BSE-related bans on beef and some low-risk bovine products, pathogen standards and residue standards for raw meat and poultry products, Avian Influenza bans on poultry and H1N1-related bans on pork all topped the list of problem areas in 2009.  In addition, China still does not appear to have notified all proposed SPS measures as required by WTO rules, although the report indicates that some progress has been made in that regard.

With regard to Inspection-related requirements, China’s regulatory authorities continue to administer inspection-related requirements in a seemingly arbitrary manner.

Finally, the report indicates that with regard to export subsidies, China has not yet notified all of its subsidies to the WTO.  This has made it difficult to determine whether China maintains export subsidies on agricultural goods.  (Contact: Amy Mann)

PEOPLE ON THE MOVE
Published: January 05, 2010

Robert Perciasepe has been confirmed by the Senate to serve as EPA Deputy Administrator.   Prior to his confirmation, he served as the Chief Operating Officer of the National Audubon Society and has also served as Assistant Administrator for the EPA Office of Water, as Assistant Administrator for the EPA Office of Air and Radiation, as Secretary of Environment for the State of Maryland and as Assistant Director of Planning for Baltimore, Maryland.   He has a Bachelor of Science degree in Natural Resources from Cornell University and master's degree in planning and public administration from the Maxwell School of Syracuse University.

Paul Anastas has been confirmed by the US Senate to serve as Assistant Administrator for the EPA Office of Research and Development - Prior to his nomination he served as the Teresa and H. John Heinz III Professor in the Practice of Chemistry for the Environment at Yale University and as the Director of the Yale Center for Green Chemistry and Green Engineering.  He is considered the 'Father of Green Chemistry.' (Contact: Nathan Bowen)

USDA SEEKS DIRECTOR FOR OFFICE OF PEST MANAGEMENT POLICY
Published: January 05, 2010

USDA Agricultural Research Service (ARS) is seeking candidates for this Senior Executive Service (SES) Career Reserved position in Washington, DC to oversee integration, coordination, and communication of USDA's pest management activities and policies.  Applications are due by January 15.  The Job Announcement Number is ARS:SES:09-06.  More information is available at usajobs.gov.  (Contact: Nathan Bowen)

PA: PREFERRED CULINARY CONNECTION AREA TO OFFER TASTINGS, COOKING TIPS AT 2010 PA FARM SHOW
Published: January 05, 2010

Renowned chefs from Pennsylvania restaurants and national television shows will help visitors to the 2010 Pennsylvania Farm Show learn how to create culinary masterpieces from locally produced and PA Preferred ingredients, through live cooking demonstrations and competitions, Agriculture Secretary Russell C. Redding said today.

“Pennsylvania is a national leader in the production of a number of agricultural products, like mushrooms, eggs, and dairy products, giving visitors a unique chance to travel from the farm to the fork without leaving the Farm Show,” said Redding. “The PA Preferred Culinary Connection showcases some of our finest ingredients in recipes created by notable chefs while providing consumers with the tips and techniques they need to recreate those recipes at home. This extremely popular attraction brings together talented chefs to share their expertise and creativity using fresh Pennsylvania products.”

The PA Preferred Culinary Connection stage, located in the Main Hall of the Pennsylvania Farm Show Complex & Expo Center, will feature demonstrations by Eli Kirshtein, who was a “chef-testant” on Bravo’s “Top Chef Las Vegas;” Howard Hemler, the world’s fastest omelet-maker who has been featured on “Oprah,” “Good Morning America” and Food Network’s “Cooking Live;” and James Batterson, Michael Geary, Mark Pawlowski, and David Stoltzfus, who make up Pennsylvania’s three-time champion Iron Chef team.

Chefs from local restaurants and cooking schools across Pennsylvania will take the PA Preferred Culinary Connection stage each hour throughout the week. Every demonstrated recipe will be sampled and with each, a Pennsylvania wine will be suggested for pairing.

Starting at 1 p.m. on Tuesday, Jan. 12, the PA Preferred Culinary Connection stage will host Stacie & Tom Feil, winners of the Keystone International Livestock Expo’s PA Preferred Best Burger Contest in 2009 and 2008, respectively. They will lead teams of local celebrities who will compete for burger supremacy using PA Preferred beef in this exciting competition sponsored by the Pennsylvania Beef Council. 

Secretary Redding urged consumers to look for the PA Preferred logo, with the gold checkmark in the blue keystone, year-round to ensure they’re buying a Pennsylvania-produced product. For a complete schedule of PA Preferred culinary events, and biographies and photos of the chefs, visit www.papreferred.com and click on “PA Preferred Culinary Connection.”

The Pennsylvania Farm Show is the largest indoor agricultural event in the nation, featuring nearly 6,000 animals, 10,000 competitive exhibits and 270 commercial exhibitors. The eight-day show is Jan. 9-16, at the Pennsylvania Farm Show Complex & Expo Center in Harrisburg. Admission is free and parking is $10 per vehicle. For more information, visit www.farmshow.state.pa.us.  

MD: MARYLAND WINS FARMLAND PRESERVATION LAWSUIT PROTECTING INTEGRITY OF PROGRAM
Published: January 05, 2010

The Court of Appeals of Maryland decided in favor of the Maryland Agricultural Land Preservation Foundation in a case that could have undermined the intent the State land preservation program and devalued the $500 million public investment in the preservation of productive Maryland farmland.  In Maryland Agricultural Land Preservation Foundation, et al v. Herschell B. Claggett, Sr. (Case No. 142), the Court ruled on Dec. 22 that a landowner cannot construct a “dwelling house for the use only of that landowner or the landowner’s child” under the terms of the land preservation easement and then immediately transfer the dwelling to a third party.  This, the Court found, would undermine the program’s purpose by facilitating potential real estate speculation on preserved land intended for family farming use.

“This is an important victory for the Maryland Agricultural Land Preservation Foundation (MALPF), the farm community and for Maryland taxpayers in ensuring that agricultural land that has been voluntarily protected forever from development remains protected as productive farmland,” said Agriculture Secretary Buddy Hance.  “Governor O’Malley is strongly committed to agricultural land preservation and has fully funded the program even in these difficult economic times as a way to ensure a local food supply and that land remains open and managed in an environmentally-sound way.”

The case involved the interpretation of a deed of easement and effect of a law enacted by the Maryland General Assembly in 2004.  The Court of Appeals of Maryland reversed a decision of the Court of Specials Appeal that could have allowed thousands of lots to be developed throughout the State on farmland that is permanently preserved by MALPF from residential development.

Created by the General Assembly in 1977, MALPF purchases agricultural preservation easements that forever restrict development on prime farmland and woodland and has permanently preserved land in each of Maryland’s 23 counties. To date, the program has preserved more than 2,000 farms on 279,125 acres representing a public investment of over $550 million. With county and other state preservation programs, nearly 535,000 acres of farmland are protected in Maryland. This is the greatest ratio of farmland preserved to total landmass of any state.

According to a survey conducted by the Schaefer Center for Public Policy last year, public opinion supports this investment. A full 97 percent of respondents believe that it is important that the state preserve farmland for farming.  Marylanders believe that farms and the products they produce should remain a part of the State’s culture and economy.  (Contact: Sue duPont, 410-841- 5889)

MN: STATE’S SUNFLOWER GROWERS APPROVE COMMODITY CHECK-OFF
Published: January 05, 2010

Farmer members of the Minnesota Sunflower Growers Research and Promotion Council have voted to approve their first promotional check-off program.  The sunflower growers voted 53 to 46 to approve a check-off amount of 4 cents per hundredweight.  The check-off rate will become effective during the next growing season.

Minnesota’s sunflower growers began the process of establishing a research and promotion council last spring to help promote their commodity.  Minnesota has several research and promotion councils dedicated to promoting and stimulating the use, sale and consumption of commodities and to improve methods of production, processing and marketing.  (Contact: allen.sommerfeld@state.mn.us)

MD: SURVEY SAYS CONSUMERS WANT TO BUY LOCAL AND PRESERVE FARMLAND FOR FARMING
Published: January 05, 2010

The 2010 Policy Choices Survey by the University of Baltimore Schaefer Center for Public Policy found that 78 percent of Marylanders are more likely to buy produce that is identified as having been grown by a Maryland farmer. Further supporting agriculture, a full 94 percent of those surveyed said that it is at least “somewhat important” that the state preserve land for farming. The results were consistent with last year’s survey, showing steady support for Maryland agriculture.  Additionally the survey revealed increased understanding of the impact of stormwater runoff from urban areas, runoff from residential areas and lawns, and growth and development as major threats to the Bay.

“Consumer response to this survey is good news for Maryland farmers,” said Governor Martin O’Malley.  “The results show that Marylanders understand that preserving farmland and buying locally are essential to keeping Maryland smart, green and growing.  This knowledge helps our efforts to protect and strengthen our growing middle class, our family owned farms and businesses, while restoring the health of the environment, especially the Chesapeake Bay, for all to enjoy.”           

Sustainable agriculture strengthens rural economies, keeps land open and in production rather than being developed, and protects natural resources and the local food supply.  Through decades of installing on-farm best practices and centuries of working the land, farmers are some of Maryland’s strongest conservationists. 

“There is nothing more important to a farmer than healthy, productive land and water,” said Agriculture Secretary Buddy Hance. “Farmers can’t make a living or provide the healthy food, scenic farms and strong quality of life that consumers want if they don’t protect our natural resources. This survey indicates public support for farming and the funding needed for farmers to continue taking the strongest environmental protection measures. It also reveals that consumers understand that there are multiple sources of Chesapeake Bay degradation.”  

For Maryland and the other Bay watershed states, all sources will need to reduce pollutant load levels to meet water quality standards mandated through President Obama’s Executive Order on Chesapeake Bay Protection and Restoration. One of the greatest challenges to Bay restoration is continued population growth and development and its associated stormwater runoff, which is now the fastest-growing source of pollution to the Bay.

The telephone survey of 815 adult Marylanders also found that residents are concerned about the environment, but did not delve into their understanding of the environmental pressures.  Industrial discharge (86%) and sewage treatment plants (76%) were perceived to pose the most serious threats to the health of the Bay.  Sixty-six percent of those surveyed identified farm runoff as having a major impact on the Bay while 61 percent said stormwater runoff from urban areas was a major impact.  Fifty-seven percent saw growth and development as a major threat (up from 50% last year) while 44 percent thought runoff from residential lawns and backyards was a major threat to the Bay (up from 31% last year). Additionally, 38 percent of respondents saw automobile emissions as a major threat (down from 46 % last year).

The Maryland Department of Agriculture has participated in the Schaefer Center Policy Choices Survey since 2002 to gauge public opinion about a number of farming issues and consumer preferences. The telephone survey is conducted annually.  The 2010 survey has a margin of error of +/- 3.43 percent at the 95 percent confidence level. 

Over the years that MDA has participated in the survey, support for farmland preservation has risen as has consumer desire for local products.  The identification of sources of impacts to the Bay has remained steady.  More information about and results from the survey can be found online at http://scpp.ubalt.edu.

CO: RUSSIAN CATTLEMEN VISIT COLORADO
Published: January 05, 2010

The Colorado Department of Agriculture, in conjunction with US Livestock Genetics Export Inc. (USLGE),  recently hosted a delegation of Russian livestock producers. The group visited Colorado to learn about livestock practices and herd health management through sessions at Colorado State University and ranch visits.

"Over the past two years, Colorado has hosted several Russian cattlemen with the goal of educating them about the benefits of buying Colorado cattle and genetics," said Dawn Velásquez de Pérez, CDA international marketing specialist. "We hope through education and cooperation, Russian cattlemen will return to Colorado in the spring when they are making purchasing decisions."

While in Colorado, the delegation visited Aristocrat Angus Ranch in Platteville, Colo.; Altenburg Super Baldy Ranch and Horton Feedlot in Wellington, Colo.; Figure Four Cattle Company in Somerset, Colo.; and Rocky Mountain Sire Services in Bennett, Colo. They also attended seminars at Colorado State University to learn about nutritional requirements, trade and disease issues, beef cattle genetics and performance evaluations.

“The state’s recent cold weather presented a great opportunity to demonstrate how similar Colorado’s climate is to Russia," said Velásquez de Pérez. “Our visitors felt that Colorado cattle would perform well in Russia and acclimation time would be minimal.”  (Contact: dawn.velasquez@ag.state.co.us)