February 7, 2003, Issue XI, Number 5

A publication of the National Association of State Departments of Agriculture
1156 15th Street, N.W., Suite 1020
Washington, D.C. 20005
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nasda@nasda.org



NASDA URGES CONGRESS TO SUPPORT DISASTER ASSISTANCE AID AND SPECIALTY CROP BLOCK GRANT FUNDING

USDA ANNOUNCES NEW WAREHOUSE PROGRAM

BALDACCI ANNOUNCES ROBERT SPEAR AS NOMINEE FOR DEPARTMENT OF AGRICULTURE

NASDA MEETS WITH AGRICULTURE SECRETARY AND SUBCABINET MEMBERS; FY04 BUDGET TOPIC OF INTEREST

HOMELAND SECURITY UNDER SECRETARY ASSURES SMOOTH TRANSITION

USDA AND HHS SECRETARIES ADDRESS FOOD SAFETY SUMMIT

SPECIALTY CROP TASK FORCE SETS PRIORITIES

NASDA COMMITTEES PROPOSE OUTREACH & MERGER INITIATIVES

HOUSE AGRICULTURE PANEL ANNOUNCES NEW SUBCOMMITTEE CHAIRMEN

SENATE AGRICULTURE ORGANIZES SUBCOMMITTEES

USDA RELEASES EQIP RULE

State News--ODA DIRECTS INDUSTRY-FUNDED PROGRAM TO FIND SOLUTIONS FOR STATE'S #1 AG INDUSTRY

State News--COMMISSIONER PETERSON TO PROMOTE UTAH FOOD PRODUCTS IN MEXICO

State News--JOB OPPORTUNITY--MANAGING ENTOMOLOGIST


Past Issues

January 28, 2002

January 17, 2002

January 10, 2002

January 3, 2003

December 20, 2002

December 13, 2002

December 6, 2002

November 26, 2002

November 22, 2002

November 8, 2002

November 1, 2002

October 25, 2002

October 18, 2002

What's New on the NASDA Website

Disaster Letter Sent to Conferees

Updated Midyear Conference Agenda, Committee Materials

American Food Fair

U.S. Food Export Showcase

Farm Labor Information, U.S./Mexico Working Group

Final CAFO Rule

NASDA's Warehouse Task Force webpage

2002-2003 NASDA Calendar

Biosecurity and Farm Bill Implementation Guides

Materials for NASDA 2002

Disaster Assistance Letter

U.S. SUPPLIER LIST ONLINE
A "one-stop" information source for U.S. exporters and international buyers to research, plan, and evaluate potential trade opportunities. For information, go to NASDA's website at http://www.nasda.org/. FAS' "Exporter's Matrix: Handbook for U.S. Agribusiness" export guide is available. Please contact NASDA to request a copy.


NASDA URGES CONGRESS TO SUPPORT DISASTER ASSISTANCE AID AND SPECIALTY CROP BLOCK GRANT FUNDING

        On February 3, NASDA sent a letter to congressional appropriators reiterating its support for disaster assistance to all producers who suffered losses due to natural disasters in 2001 and 2002. The letter, signed by NASDA President and Idaho Agriculture Secretary Patrick A. Takasugi, indicated NASDA's appreciation to the Senate for passing a disaster aid package and that NASDA is encouraged Congress is acting to provide necessary assistance to producers. NASDA does have reservations about the method of delivering disaster payments authorized in the Senate version. The letter said, "Providing supplemental payments equal to 42 percent of 2002 direct farm program payments seems an equitable approach for a nationwide economic disaster program, but the recently passed farm bill was designed to deal with this problem. In the case of natural disaster losses, we believe that program delivery requires producer eligibility determinations beyond residence in a county with a disaster declaration." NASDA believes the emphasis on cost control in this package is also good reason for disaster payments to be directed to and received by those most needing meaningful assistance.
        NASDA also expressed its strong support for the provision in the FY03 Omnibus Appropriations Bill that would provide $100 million for a specialty crop block grant program and asked that funds be directed to the state entity responsible for agricultural production and regulation. A similar appropriation that was received by state agencies two years ago has been a resounding success (see story on Specialty Crop Task Force).
        As of today, conferees of the FY03 Omnibus Appropriations Bill were still negotiating a final package. Reports indicate that the $3.1 billion disaster aid package is still in question and that House appropriators have balked at using discretionary offsets to pay for the agriculture aid. In a statement of administration policy, the White House stated that it prefers to see the money come from mandatory accounts authorized by the farm bill. In the Senate bill, the $3.1 billion is paid for by 2.9 percent across-the-board cut that was also used to pay for increases in education and election reform. Back in September 2002, in a letter to Congress, NASDA suggested that the farm bill should remain intact and not be changed. (Contact: Jennifer Yezak Molen)

USDA ANNOUNCES NEW WAREHOUSE PROGRAM

        This week, USDA announced actions to increase producer protection in federally licensed grain warehouses under the U.S. Warehouse Act. The changes are intended to improve producer protection requirements already in place for grain storage obligations and extend, for the first time ever, protection to producers who sell grain to federal licensees. NASDA was briefed by Bert Farrish, deputy administrator, commodity operations, Farm Service Agency, on Feb. 2 during NASDA's Rural Development and Financial Security Committee meeting chaired by North Dakota Agriculture Commissioner Roger Johnson.
        The enhanced federal licensing program coverage provides in the event of a warehouse insolvency that (1) for producers and other entities (depositors) who hold title to grain stored in a federally licensed warehouse, continued 100% coverage for these storage obligations; (2) for producers with NON-CREDIT TYPE SALES CONTRACTS where grain has been delivered but payment has not been received, 80% coverage; and (3) for producers with CREDIT TYPE SALES CONTRACTS, where grain has been delivered but payment has not been received, 80% coverage on the first $25,000 and 50% coverage on the balance.
        USDA also modified the existing financial requirements for federal licensees in order to lower the risks and enhance protection for producers and depositors. Those changes include increasing the basic net worth requirement a warehouse operator must have to qualify for a license from the current $50,000 to $150,000 and increasing the level of auditing required of the warehouse operator's financial statements by an independent certified public accounting firm.
        In the event of an insolvency of a federal licensee, USDA will first dispose of stocks and use the liquidation proceeds to compensate depositors and producers with these sales contracts. Producers with storage obligations will be paid first. If the liquidation proceeds are insufficient to cover producers with storage obligations losses or are insufficient to cover producers with sales contract losses, the losses up to $5 million will be paid from funds obtained from an assessment levied on all grain federal licensees. For losses in excess of $5 million but less than $15 million, payments to producers will come from a nationwide insurance policy funded by federal licensees. No federal funds will be used to make these payments.
        As a condition of obtaining a federal license, each federal licensee agrees to pay this assessment based upon a combination of licensed capacity and producer contract volume. For the additional $10 million in coverage, USDA will obtain a comprehensive insurance policy on behalf of the federally-licensed grain warehouses to losses in between $5 and $15 million. Federal licensees will pay a proportionate share of the insurance policy premium as an additional licensing fee.
        USDA's primary objective in making these modifications is to provide a consistent program of improved producer protection nationwide. USDA designed this approach to be the least disruptive to existing state programs, taking into account the need for USDA to have a uniform policy for all producers who deal with federally-licensed warehouses.
        The federal license agreement or federal examinations will not regulate certain activities in federally licensed grain warehouses. Those activities such as security interests, the calibration and testing of scales conducted by state weights and measures officials, producer-funded commodity promotion and research programs, producer-funded indemnity funds and environmental programs will be specifically exempted in the licensing agreement.
        USDA worked in recent months with NASDA's Warehouse Task Force chaired by Montana Agriculture Director Ralph Peck and NASDA had opportunities to comment on various proposals. NASDA appreciates USDA's efforts for working with NASDA to develop federal merchandising regulations that protect producers even though the discussions did not result in resolution of this issue.
        During the NASDA meeting this week, questions continued to be raised about states' ability to regulate grain merchandising; how state indemnity programs would be affected; the coverage levels for credit contracts; and why the changes were being made in licensing agreements and not through rulemaking.
        NASDA approved an action item re-enforcing NASDA's support for federal and state grain storage and merchandising requirements that: (1) are transparent for producers and the grain industry, (2) are codified in statute or promulgated rule to insure input from all interested parties and to provide stability of regulatory guidelines, and (3) ensure a partnership between federal and state grain regulatory programs.
        NASDA will be requesting USDA to withdraw the current rule to provide for additional negotiations with states and allow for a comment period for drafting a new rule. In addition, NASDA will ask USDA to develop a cooperative federal-state regulatory system and refrain from adopting a federal preemptive program. In the event that a mutual resolution with USDA cannot be achieved, NASDA plans to request congressional support to resolve the grain regulation issue.
        USDA also officially extended the moratorium on accepting new federal license applications under the U.S. Warehouse Act through February 14, 2003. The extension has provided the time needed to implement the enhancements to the federal licensing program. USDA will provide the new licensing agreement to current federal licensees this month with a 30-day window for review and return to USDA. USDA will complete the compliance program by the end of April. Beginning February 17, 2003, after expiration of the moratorium, USDA will begin accepting applications for new federal licenses. (Contact: Jennifer Yezak Molen)

BALDACCI ANNOUNCES ROBERT SPEAR AS NOMINEE FOR DEPARTMENT OF AGRICULTURE

        Maine Governor John E. Baldacci has announced that he has nominated Robert W. Spear to continue as commissioner of the Maine Department of Agriculture, Food and Rural Resources.
        Spear has agreed to serve in this position for up to two years. Ned Porter, deputy commissioner, will also continue in his current position. Porter previously served as a longtime legislative assistant focusing on agriculture for then Congressman Baldacci. Baldacci was a member of the House Agriculture Committee.
        Spear has led the department since 1999. He served in the Maine House of Representatives from 1990 to 1998. Since graduating from the University of Maine in 1965, he has worked at and runs Spear Farms, Inc., a family-owned dairy and vegetable farm.
        "Bob's experience at the Department and the Legislature, and his years of leadership in the farm community makes this an easy reappointment," Governor Baldacci said. "I look forward to working with Bob and Ned to find solutions to the challenges facing Maine agriculture."
        Spear said that his immediate priority would be to provide short-term relief for Maine's dairy farmers. "We've got legislation we're working on to make emergency payments but it is essential that all sides cooperate in designing a strategy to provide long-term stability for Maine's dairy farmers and processors," he said.
        Farming provides many benefits for Maine. First and foremost farmers provide locally grown and nutritious food. Agriculture is the cornerstone of much of rural Maine--its economy and its community.
        "The best way to way to ensure that all Mainers will continue to enjoy those benefits is to keep farming profitable and that will keep families on working farms," Spear said.
        The department is the state's lead agency dealing with all aspects of the food system from the field to the table. Its mission is to foster opportunities for the agriculture community while promoting the stewardship of Maine's natural resources. With an annual budget of $24 million and 160 employees, the department houses programs as varied as animal welfare, weights and measures, and certification of seed potatoes.
        "These are demanding times and experience matters. I need people who know budgets," Baldacci said. "Performance is key and Bob has delivered, whether Senior FarmShare for the elderly, a nutrient management program for dairy farmers, or assistance for farmers who need to irrigate. I look forward to even more from his department during the next four years." (Contact: Rick Kirchhoff)

NASDA MEETS WITH AGRICULTURE SECRETARY AND SUBCABINET MEMBERS; FY04 BUDGET TOPIC OF INTEREST

        On February 3, NASDA members sat down with Agriculture Secretary Ann Veneman to discuss the FY04 budget and critical issues facing agriculture. By meeting at USDA, NASDA members had the opportunity to meet with Veneman and USDA's under secretaries and receive a comprehensive overview of USDA and its mission areas. Participants included: Under Secretary for Farm and Foreign Agriculture J.B. Penn; Under Secretary for Food Safety Elsa Murano; Under Secretary for Natural Resources & Environment Mark Rey; Under Secretary for Rural Development Thomas Dorr; Under Secretary for Marketing & Regulatory Programs Bill Hawks; and Under Secretary for Research, Education, and Economics Joseph Jen.
        The FY04 budget for USDA programs and services includes record spending for farm conservation measures, food safety protections, and nutrition and food assistance programs. The $74 billion request is 2% higher ($1.4 billion) than the previous year and $5.4 billion higher (or 8% growth) since FY01. "This budget reflects this [a]dministration's continued commitment to strong conservation practices to help farmers, protection of our food supply and ensuring strong nutrition programs for a healthier America," said Veneman. "We have seen USDA's budget grow by 8 percent since this Administration came to office, representing a strong record and commitment to farmers and ranchers, trade expansion and rural development."
        The budget seeks record-level support for USDA's Food Safety Inspection System (FSIS) meat and poultry food safety programs as well as increases to strengthen agricultural protection systems. FSIS funding will increase to a program level of $899 million, an increase of nearly $42 million over the FY03 and represents a $117 million (or 15%) increase in food safety programs since FY01. Funding for FSIS will support 7,680 food safety inspectors, an increase of 80 inspectors, and provide specialized training for the inspection workforce, increase microbiological testing and sampling, strengthen foreign surveillance programs, and increase public education efforts.
        Regarding homeland security and agricultural protection programs, the budget includes nearly $47 million in new funding to strengthen laboratory security measures; conduct research on emerging animal diseases; develop new vaccines; create new bio-security database systems; and continue development of the unified Federal-State Diagnostic Network for identifying and responding to high risk pathogens. The Animal Plant Health Inspection Service (APHIS) would receive a $30 million increase for inspection services; expanding the availability of foot-and-mouth disease vaccines; providing protection against chronic wasting disease and poultry diseases; and expanding diagnostic and other scientific/technical services. In addition, $200 million is requested for the National Research Initiative.
        The budget supports the continued implementation of the 2002 farm bill, which includes providing historic increases for conservation funding and protecting natural resources. Total program level funding for farm bill conservation programs increases by $1.7 billion, from $2.2 billion in FY01 to almost $3.9 billion in FY04. This includes $432 million for conservation technical assistance in support of farm bill implementation.
        The FY04 budget continues a strong commitment to export promotion and foreign market development efforts by proposing $6.2 billion in spending. This represents an 18 percent increase since the administration came into office, or $961 million in additional spending since FY01. Included is funding for USDA's market development programs, including the Market Access and Cooperator Programs, which are increased by $15 million. The budget establishes a new, centralized fund of $6.6 million to support important, crosscutting trade issues, compliance monitoring, dispute resolution, and biotechnology activities within the department.
        The administration proposes spending $11.9 billion for rural development programs. The budget supports the president's homeownership initiative, particularly for minority families with a 50 percent increase for single family housing. The water and waste disposal program is maintained at its FY03 level of $1.5 billion. The budget proposes $196 million for broadband loans and loan guarantees to rural telecommunications providers in FY04, building upon a $1.4 billion program developed over the past two years.
        The FY04 budget proposes $4.9 billion for U.S. Forest Service programs. The budget includes the highest level ever requested for fire suppression and dramatically increases efforts to improve forest health through the president's Healthy Forests Initiative. Approximately $1.57 billion is requested for the National Fire Plan, an increase of $173 million over FY03. The Forest Legacy Program is funded at $91 million, a $21 million increase over 2003, and represents a $61 million increase since FY00. (Contact: Jennifer Yezak Molen)

HOMELAND SECURITY UNDER SECRETARY ASSURES SMOOTH TRANSITION

        On February 3, Asa Hutchinson, under secretary, border and transportation security, at the newly created Department of Homeland Security (DHS) addressed NASDA members about DHS' role in protecting America's food and agricultural sector. "Animal and plant resources are important to Homeland Security and to the U.S. economy. The knowledge and expertise of the USDA inspectors who transfer to DHS will be preserved and enhanced. In fact, I hope that merging our border inspection agencies will bring even more attention to agriculture," Hutchinson said.
        The first phase of the new department's creation will bring together all the United States' uniformed inspection services including the Customs Service, the border security functions of the Immigration and Naturalization Service, the Transportation Security Administration, and USDA's Animal and Plant Health Inspection Service's (APHIS) agricultural quarantine inspection (AQI) work force. March 1, 2003, is the target date for the transfer of these agencies. He informed NASDA that DHS' goal is to make this transition as smooth as possible so that there will be no interruption to the protection of our nation's borders.
        A policy council consisting of the leaders of all the agencies involved in border and transportation security was established by Hutchinson and members discuss issues with him on a weekly basis. APHIS Administrator Bobby Acord participates in these meetings. In addition, several working groups are hard at work developing structures and processes to ensure that DHS can function effectively on March 1.
        Currently, APHIS has a physical presence at 143 ports of entry, including international airports, land border crossings, and sea ports. The majority of the inspectors working in these locations will transfer to DHS. Border and Transportation Security is working with APHIS to ensure that there will be no interruption to communications between these inspectors and those in APHIS who provide policy and technical guidance. The agricultural inspectors will have access to the same data, policy guidelines, and treatment manuals that they have always used.
        While many of the agricultural inspectors will transfer to DHS, APHIS will continue to set agricultural import policies, supervise the training of agricultural inspection officers and detector dogs, and identify pests at ports of entry. APHIS will also administer fumigations and other treatments for pests and diseases, work to combat the smuggling of agricultural goods, and conduct commodity preclearance and domestic passenger predeparture programs. Additionally, APHIS will continue to conduct its domestic plant and animal health programs and agricultural trade support activities, including export certification. To ensure total continuity of service, some of the APHIS personnel transferring to DHS may continue performing these functions during the transition while APHIS adjusts its staffing levels. (Contact: Jennifer Yezak Molen)

USDA AND HHS SECRETARIES ADDRESS FOOD SAFETY SUMMIT

        Agriculture Secretary Ann M. Veneman and Health and Human Services (HHS) Secretary Tommy Thompson opened the special Federal-State Food Safety Summit on February 4 during NASDA's Midyear Conference. The forum was led by Nathan Rudgers, commissioner of the New York Department of Agriculture and Markets and chairman of NASDA's Food Regulation and Nutrition Committee. Richard Melton, deputy director of the Utah Department of Health, led the effort for the Association of State and Territorial Health Officials (ASTHO).
        Participants who attended the summit were the state agricultural commissioners, secretaries, and directors; senior administration officials; and state health agency directors. It was the first time that state agriculture and health directors met together to discuss critical food safety and security issues. The session focused on the role of the states in protecting the food supply. Secretaries Veneman and Thompson emphasized the need to enhance cooperative working partnerships between local, state, and federal agencies. They also outlined the activities their departments have undertaken.
        The interactive program allowed state and senior administration officials to have serious discussions on critical food security issues. Federal officials who participated in the session included Garry McKee, administrator of USDA's Food Safety Inspection Service (FSIS); Joseph Levitt, director of the Food and Drug Administration's (FDA) Center for Food Safety and Applied Nutrition (CFSAN); Bobby Acord, administrator of USDA's Animal and Plant Health Inspection Service (APHIS); and John Taylor, FDA associate commissioner for Regulatory Affairs. During the afternoon session, four regional workshops were held for states to identify needs and concerns. In the coming week, a summit report and follow-up for future activities will be sent to participants and NASDA members. (Contact: Charlie Ingram)

SPECIALTY CROP TASK FORCE SETS PRIORITIES

        On February 1, California Agriculture Secretary Bill Lyons chaired the Specialty Crop Task Force meeting during NASDA's Midyear Conference. The following twenty-five states were represented at the meeting: California, Florida, Arizona, Texas, West Virginia, North Dakota, Louisiana, Maine, Massachusetts, New Jersey, New York, Indiana, Michigan, Iowa, Minnesota, Maryland, North Carolina, Washington, Wisconsin, Idaho, Delaware, Virginia, South Carolina, Arkansas, and Alabama.
        During the meeting, all states unanimously supported the values and benefits of the Specialty Crop Block Grant Fund Program. The task force also agreed that flexibility is a key component of the program. That flexibility may include funding programs such as research, nutrition, promotion, food safety and security, conservation, agricultural education, pests and disease risk analysis at the discretion of the state agricultural agencies.
        The task force approved to accept the proposed FY03 version of the specialty crop block grant to state departments of agriculture or designated state agriculture agencies. The current FY03 grant proposal is $100 million for fruits, vegetables and tree nuts, which is included in the $3.1 billion disaster assistance package approved by the Senate and being considered by the Appropriations Conference Committee. NASDA staff was directed to inform and communicate to Congress the success and acceptance by the nation's agricultural community regarding the Specialty Crop Block Grant Program as administrated by the state departments of agriculture. A letter was sent to congressional appropriators requesting support for a specialty bloc grant program. (See disaster assistance story.)
        In regards to the FY04 appropriations cycle, the task force agreed to pursue a funding mechanism for a Specialty Block Grant Program as originally provided for by Congress two years ago. Forty-two states have responded to NASDA's Specialty Crop Block Grant Survey which will be the basis for a report to Congress. The task force did discuss the definition of "specialty crop" and will continue to have this as a discussion item. The goal is to request additional information from the National Agricultural Statistics Service (NASS) and all states on definitions of specialty crops. (Contact: Jennifer Yezak Molen)

NASDA COMMITTEES PROPOSE OUTREACH & MERGER INITIATIVES

        NASDA's Natural Resources and Environment Committee and Pesticide Regulation Committee held joint meetings for the first time on February 1 and 2. One of the main topics discussed was how state departments of agriculture can work better with the Environmental Protection Agency (EPA) and USDA on environmental issues affecting agriculture.
        During the February 1 session, the committees held an interactive session with senior EPA and USDA officials to discuss a variety of policy issues on air quality, water, pesticides, and waste management. Participants included: G. Tracy Mehan, III, EPA assistant administrator for water; Adam Sharp, deputy associate administrator for prevention, pesticides & toxic substances; John Pemberton, chief of staff, EPA office of air and radiation; and Tom Christensen, NRCS division director, animal husbandry & clean water programs. Tracy Mehan emphasized his priority to build a partnership with the agriculture community in 2003. Three critical issues for agriculture are: (1) implementation of new rules for concentrated animal feeding operations (CAFOs); (2) proposing a new "watershed" rule to replace the controversial rulemaking on the Total Daily Maximum Load (TMDL) clean water program; and (3) implementing a new voluntary Water Quality Trading Policy to address nonpoint pollution.
        On February 2, committee members recommended an "outreach initiative" to conduct quarterly "communication sessions" by conference call with NASDA members and senior officials from EPA and USDA. NASDA members also approved a proposal to merge the Natural Resources and Environment and Pesticide Regulation Committees. Members said a merger, combined with executive level conference calls, would enhance NASDA's ability to work with EPA and USDA on key agricultural issues. They noted that consolidation of the two committees would: (1) provide a more effective and efficient way to coordinate NASDA policies and activities; (2) reflect the organizational structure of EPA; and (3) recognize the interrelationship of agriculture-environment-stewardship issues (air, water, waste, and pesticides). (Contact: Charlie Ingram)

HOUSE AGRICULTURE PANEL ANNOUNCES NEW SUBCOMMITTEE CHAIRMEN

        House Agriculture Committee Chairman Bob Goodlatte (R-Va.) has announced the new subcommittee chairmanships and jurisdictions for the 108th Congress. There are major changes at the subcommittee level due to changes in the membership of the committee.
        Rep. Frank Lucas (R-Okla.) is the only returning chairman from the previous congressional session and will continue to lead the Conservation, Credit, Rural Development and Research Subcommittee. The panel will have expanded jurisdiction over soil, water, resource conservation, small watershed programs, agricultural credit, rural development, rural electrification, farm security and family farming matters, agricultural research, education and extension services, plant pesticides, quarantine, adulteration of seeds, insect pests and biotechnology.
        Rep. Jerry Moran (R-Kan.) will serve as new chairman of the General Farm Commodities and Risk Management Agriculture Subcommittee. This subcommittee has jurisdiction over programs and markets related to cotton, wheat, feed grains, soybeans, and other commodities, crop insurance and commodity exchanges. Rep. Bill Jenkins (R-Tenn.) is the new leader of the Specialty Crops and Foreign Agriculture Programs Subcommittee. Rep. Gil Gutknecht (R-Minn.) will be the new chairman of the Department Operations Oversight, Nutrition and Forestry Subcommittee, which was the subcommittee Goodlatte chaired previously. This subcommittee covers agency oversight, special investigations, food stamps, nutrition, and forestry. Rep. Robin Hayes (R-N.C.) will be chairing the Livestock and Horticulture Subcommittee, which has jurisdiction over livestock, poultry, meat, seafood and seafood products, inspection, and marketing. (Contact: Charlie Ingram)

SENATE AGRICULTURE ORGANIZES SUBCOMMITTEES

        New Senate Agriculture Committee Chairman Thad Cochran (R-Miss.) announced new subcommittee chairmen this week. There are significant changes in the panel's leadership for the 108th Congress with the GOP in control and new members.
        Sen. Michael Crapo (R-Idaho) will lead the Subcommittee on Forestry, Conservation and Rural Revitalization. Sen. Peter Fitzgerald (R-Ill.) will chair the Research, Nutrition and General Legislation Subcommittee. Two freshman Republicans will lead other subcommittees. Sen. Elizabeth Dole (R-N.C.) will chair the Subcommittee on Production and Price Competitiveness. Sen. James Talent (R-Mo.) will lead the Marketing, Inspection and Product Promotion Subcommittee. (Contact: Charlie Ingram)

USDA RELEASES EQIP RULE

        USDA's Natural Resources Conservation Service (NRCS) has released a proposed rule for the Environmental Quality Incentives Program (EQIP), a conservation program that offers cost-sharing as an incentive for farmers and ranchers to install soil and water conservation, air quality and other practices. The 2002 farm bill made several important changes in EQIP including recommendations proposed by NASDA.
        Highlights of the revised EQIP program include: (1) reductions in the amount of planning requirements needed to develop a contract; (2) providing up to 90 percent cost share for limited resource and beginning producers; (3) providing livestock producers with cost share assistance for waste storage facilities regardless of size, and development and implementation of Comprehensive Nutrient Management Plans (CNMPs); (4) allowing producers to have more than one contract per tract at any given time. The farm bill also allocates sixty percent of EQIP funds towards livestock related practices and eliminates the program's dual administration by delegating EQIP to the Natural Resources Conservation Service (NRCS).
        Comments on the EQIP proposal will be accepted for 30 days. Comments received from the public will be used to make revisions, if necessary, that will be issued in a final rule. Additional information on EQIP and other conservation programs is on the Internet at http://www.nrcs.usda.gov. (Contact: Tom Sommer)


STATE NEWS


ODA DIRECTS INDUSTRY-FUNDED PROGRAM TO FIND SOLUTIONS FOR STATE'S #1 AG INDUSTRY
--Research grants address nursery industry problems

        With a production value of $680 million, Oregon's greenhouse and nursery industry is a major economic player, particularly in the urban counties of the Portland metropolitan area. So when a pest or disease problem shows up on Oregon nursery stock, it can have potentially damaging results.
        That's why the industry values research to the point of literally taxing itself so that researchers can help. Part of the fee collected by the Oregon Department of Agriculture for a nursery license goes to support a nursery research grant program that annually awards funds for worthy projects, ranging from finding biological control agents that fight plant pests to developing hardier landscape plants.
        "Industry support for nursery research is critical for Oregon growers to maintain their competitive advantage," says Mark Krautmann of Heritage Seedlings, Inc. in Salem, and current president of the Oregon Association of Nurserymen (OAN). "Especially now, when traditional Oregon State University research funds are being cut drastically during the current state fiscal crisis, Oregon nursery growers realize that our independent funding for research is key to keeping Oregon 'The Nursery State'."
        ODA collects and administers the money used in the grant program. A nursery advisory committee and members of OAN decide which projects should be funded and by how much. For 2003, $130,029 has been allocated to seven projects and to the Horticultural Research Institute, which issues additional grants. The industry and OAN kick in more money so the best of the proposals are funded as fully as possible.
        "Oregon is a bit unique in that it is one of the states where the industry itself puts money into a pot to fund research projects," says Gary McAninch, supervisor of ODA's Nursery and Christmas Tree Program.
        Three holdovers from previous years are on this year's list of funded projects, including biological control of an insect pest known as cherry bark tortrix. ODA entomologist Dr. Barry Bai has worked on a project that is now being funded for the fourth straight year. Along with principal investigator Dr. Lynell Tanigoshi of Washington State University's (WSU) Vancouver Research and Extension Unit, Bai has been trying to find a natural enemy of the damaging moth. The grant provides an additional $4,000 to continue the project.
        "The pest attacks cherry, peach, plum, and apple trees among other plants," says Bai. "We have landscape trees of these varieties planted along streets and in parks. The pest can get into orchards and cause damage to the fruit producing industry as well. Quarantines are certain to be established with an infestation."
        In the adult stage, the tortrix moth is harmful only because of reproduction. But in the caterpillar stage, tortrix bores deep into the bark and can effectively girdle the tree. That can lead to damage and eventually death of the tree. Pesticide treatments can be expensive and not always effective.
        After infesting trees in British Columbia in the late 1980s and Washington in the 1990s, cherry bark tortrix was eventually detected in Oregon in July 2000, continuing its southerly migration. The cooperative project between ODA and WSU has resulted in some promising biological control tools. In particular, a parasite of the pests eggs, Trichogramma cacoeciae, is successfully being reared in a laboratory facility and then distributed in cherry bark tortrix breeding areas in Portland with high hopes that a natural enemy can halt the spread of a damaging pest.
        Another project receiving an additional round of funding is much needed research on sudden oak death, which remains a major threat to many susceptible nursery crops. ODA has initiated a quarantine in a small area of Curry County in response to the detection of Phytophthora ramorum, the fungus responsible for the disease that has devastated parts of Northern California. In addition, eradication efforts have kept the disease from spreading in Oregon. Meanwhile, researchers, including those at Oregon State University, are trying to learn more about the mysterious disease. A $25,000 grant will help Dr. Jennifer Parke at OSU continue work on learning how the disease spreads and potential ways of controlling it.
        The third project to receive repeat funding is the development of new, superior cultivars of landscape plants. The Landscape Development Center, which is nationally based in Minnesota, is receiving $10,000.
        First time funding is being provided to:
        * Dr. Leslie Fuchigami of OSU for work on disease control for bare root nursery trees ($24,929).
        * Dr. James Altland at Osseous North Willamette Research and Extension Center for eradication of the weed, yellow nutsedge, in field nurseries ($22,000).
        * Dr. Altland to determine soil and tissue test standards for field-grown shade trees ($15,000).
        * Dr. Tanigoshi of WSU for preventative management of root weevils in container-grown nurseries ($14,100).
        For more information, contact Gary McAninch at 503/986-4644.

COMMISSIONER PETERSON TO PROMOTE UTAH FOOD PRODUCTS IN MEXICO

        Utah Agriculture Commissioner Cary G. Peterson met this with Mexican Secretary of Agriculture Javier Usabiaga Arroyo this week to discuss the expansion of U.S.-Mexico agricultural trade. Commissioner Peterson joined Utah Governor Mike Leavitt and other Utah trade delegates for talks which began February 3, 2003, in Mexico.
        Peterson has been promoting Utah's growing turkey industry which saw exports to Mexico increase from one million pounds in 2001 to 1.2 million pounds in 2002. Commissioner Peterson also promoted Utah's apple industry as well as animal health issues with Secretary Arroyo.
        This week's visit is one of several trade missions scheduled by the governor for 2003. The Utah trade delegation has visits planned for Mexico, Canada, Japan, Korea, China, Great Britain, Germany, and other foreign and domestic cities. The governor will also visit key cities in the United States to promote Utah, following the successful 2002 Winter Olympic Games. Prior to the games, the state hosted a series of Torch Relay Receptions throughout the country where key business leaders and "Friends of Utah" gathered to share in the magic of the Olympic Torch. These receptions opened up a world of opportunity for partnerships with Utah companies.
        Peterson is representing Utah's agribusiness industry that generates more than $4 billion dollars to the state's economy each year. According to the U.S. Department of Commerce, Utah exports more than $300 million a year in food and agricultural products around the world, $12 million of which goes to Mexico. Utah exported a total of $110.5 million to Mexico in 2000. Agriculture and food products represent the state's fourth largest export sector to that country.
        The domestic trade missions will be used to further develop the state's economic ecosystems through key national contacts. The ecosystems include medical devices, biotechnology, aerospace, agribusiness, web services and digital media. (Contact: Larry Lewis, 801/538-7104)

JOB OPPORTUNITY--MANAGING ENTOMOLOGIST

        The Washington State Department of Agriculture (WSDA) has a position opening for a managing entomologist. The managing entomologist is responsible for maintaining the state's environmental quality and ensuring access into channels of trade for Washington horticultural, forestry and agricultural products by exclusion, detection, isolation, eradication, control, and public information efforts relative to high risk insect pests. The incumbent directs and supervises scientific and support personnel in projects that defend the state's resources against exotic or invasive pest insect species. Reporting to the Pest Program Manager, the managing entomologist assists in developing policies regarding insect exclusion and quarantine matters, including prioritization of projects, choice of methods used, and writing and interpretation of rules, contracts, and international/interstate agreements.
        Position qualifations and application procedure are available at http://hr.dop.wa.gov/statejobs/bulletins/CURRENT/Mgmtcurrent/030122agr1.htm. (Contact: Linda Pentt, 360/902-1979)