February 14, 2003, Issue XI, Number 6

A publication of the National Association of State Departments of Agriculture
1156 15th Street, N.W., Suite 1020
Washington, D.C. 20005
202-296-9680
fax 202-296-9686
nasda@nasda.org



NASDA REQUESTS USDA TO WITHDRAW MERCHANDISING SECTION OF WAREHOUSE RULE

NASDA URGES REVIEW ON RUSSIA AG TRADE RESTRICTIONS

CONGRESS APPROVES AGRICULTURE DISASTER ASSISTANCE

CONGRESS APPROVES OMNIBUS SPENDING PACKAGE

ON THE HILL

ALASKA GUIDE RELEASED BY NASDA

USDA SEEKS COMMENTS ON NEW FARM CONSERVATION PROGRAM

FDA BUDGET INCLUDES FOOD SECURITY FUNDING

U.S. ADVANCES PROPOSALS IN FREE TRADE NEGOTIATIONS

ENVIRONMENT BRIEFS

PESTICIDE BRIEFS

FOOD SAFETY BRIEFS

USDA NEWS

State News--GOVERNOR LINGLE APPOINTS DIANE LEY AS DEPUTY TO THE CHAIRPERSON OF AGRICULTURE

State News--ZIEWACZ AND HENERT APPOINTED TO TOP MANAGEMENT


Past Issues

February 7, 2002

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

What's New on the NASDA Website

Accord registration materials, agenda

Disaster Letter Sent to Conferees

American Food Fair

U.S. Food Export Showcase

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

NASDA's Warehouse Task Force webpage

2002-2003 NASDA Calendar

Biosecurity and Farm Bill Implementation Guides

TRI-NATIONAL AGRICULTURAL ACCORD
The 13th Tri-National Accord will be hosted by the Province of Quebec April 1 to 3, 2003, in Montreal, Canada. The meeting will take place at the Hotel Wyndham Montreal, 1225 Rue Jeanne-Mance, Montreal, Quebec. The group room rate of $130 (CND) rate (double or single occupancy) is offered until March 1, 2003. Tell reservations, 1-800-361-8234, that you are with the Trinational Accord party. Registration forms are due before March 1. Registration materials are available at http://www.nasda.org/accord.

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 REQUESTS USDA TO WITHDRAW MERCHANDISING SECTION OF WAREHOUSE RULE

        This week, NASDA President and Idaho Agriculture Secretary Patrick A. Takasugi sent a letter to Agriculture Secretary Ann Veneman outlining how NASDA believes grain merchandising regulations should be handled in the best interests of producers and respecting the rights of states. "In order for this issue of federal preemption and USDA's regulation of grain merchandising to be resolved in a fair and equitable way, NASDA requests that USDA withdraw that section of the regulation that addresses "applicability" (Subpart 735.1, Sec. (c)) and draft a new rule that would be open for public comment and additional negotiations with the states, leading to a cooperative federal-state regulatory system for grain merchandising," Takasugi said in the letter. This applicability section reads, "Compliance with state laws relating to the warehousing, grading, weighing, storing, merchandising or other similar activities is not required with respect to activities engaged in by a warehouse operator in a warehouse subject to a license issued in accordance with this part."
        NASDA continues to support states' rights to provide a dual system for licensing grain warehouses located in the United States by the federal government and respective states. NASDA believes federal and state regulations should: (1) Ensure farmer protection; (2) Preserve the federal grain storage licensing program; (3) Preserve state grain storage and merchandising programs; (4) Complement the federal-state-industry partnership; and (5) Enhance the commerce of grain commodities in the United States.
        In particular, NASDA supports 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 ensure input from all interested parties and to provide stability of regulatory guidelines; and (3) ensure a partnership between federal and state grain regulatory programs. In addition, NASDA supports states' rights and opposes the federal preemptive concept over state grain licensing programs provided in the rule released on August 5, 2002, implementing the Grain Standards and Warehouse Improvement Act of 2000.
        The letter expressed appreciation to USDA and its recent efforts to work with NASDA to develop new federal grain merchandising regulations that protect producers even though the discussions did not result in resolution of the issue satisfactory to all the states. From November 2002 through January 2003, members of NASDA's Warehouse Task Force met with USDA officials in meetings and by way of conference calls. Members provided input on concepts introduced by USDA to develop a merchandising program. However, it was made clear that NASDA did not agree with USDA's interpretation of federal preemption in grain merchandising.
        As reported last week in NASDA News, USDA was prepared to launch new licensing agreements starting February 17 that would cover both storage and merchandising obligations. Those licensing agreements and any new licenses are now on hold after Congress approved a six-month moratorium. The FY03 Omnibus Appropriations bill, approved this week, includes a provision that prevents USDA from expending funds to pay salaries on any personnel "to amend the terms of licensing agreements for a grain warehouse under the U.S. Warehouse Act or to issue a new license for a grain warehouse." Rice is excluded from this provision. This will allow time for Congress, NASDA, agricultural groups, and other interested organizations to continue working with USDA to develop a program that implements the U.S. Warehouse Act in a fair and equitable manner. (Contact: Jennifer Yezak Molen)

NASDA URGES REVIEW ON RUSSIA AG TRADE RESTRICTIONS

        NASDA joined 17 other agricultural organizations in a letter to President George Bush expressing concerns regarding trade with Russia. On January 31, Russia announced that it was revoking import licenses for beef, pork, and poultry, and implementing quantitative restrictions on the same commodities.
        These latest measures will further reduce U.S. exports of poultry to Russia, currently our largest market, and will have a negative downstream effect on U.S. prices and demand, not only on these products, but also on the feed ingredients used to produce them. The letter states that "Russia's actions to restrict imports of beef, pork and poultry and disrupt U.S.-Russian agricultural trade are particularly disturbing given Russia's desire to join the World Trade Organization and your Administration's desire to grant Russia permanent normal trade relations status. Unless Russia begins to act as a reliable trading partner, a significant United States response, including trade retaliation must be pursued."
        The groups asked the administration to self-initiate an investigation to determine whether restrictions imposed by the Russian Federation on imports of U.S. meat and poultry products require or justify trade action by the United States pursuant to Section 301 of the Trade Act of 1974. Other organizations that signed the letter are: the American Farm Bureau Federation, American Feed Industry Association, American Meat Institute, National Cattlemen's Beef Association, U.S. Wheat Associates and the National Pork Producers Council. (Contact: Jennifer Yezak Molen)

CONGRESS APPROVES AGRICULTURE DISASTER ASSISTANCE

        Congress has approved nearly $3.1 billion for farmers and ranchers that have experienced natural disasters in 2001 or 2002. The disaster assistance was included in the FY 2003 Omnibus Appropriations bill that was cleared by Congress late February 13 and is on its way to the president for his signature (see separate story).
        Producers who have sustained losses greater than 35 percent of the normal yield in either 2001 or 2002 will be able to apply for disaster assistance payments. The producer will need to choose one of the two years for payments. The assistance covers all crops, including program crops and specialty crops. The Senate provision that provided $100 million for states to grants for fruits and vegetables was not included in the final package.
        The payment rates will be based on a percentage of applicable price. It will be 50 percent for purchasers of crop insurance or CAT or if insurance is not available and 45 percent for producers who could have purchased crop insurance or CAT but chose not to. There is a benefit cap that will include a total of disaster payments, FCIC crop insurance indemnities plus actual crop value and it cannot exceed 95 percent of the crop value if no loss occurred.
        The bill includes livestock assistance through the Livestock Compensation Program (LCP) and the Livestock Assistance Program (LAP). The provisions expand eligibility for the 2002 LCP which was initiated by the administration last fall to provide assistance for selected types of livestock in counties designated as disaster counties and reestablish a more targeted LAP for producers suffering grazing losses in counties designated as disaster counties due to weather-related problems.
        USDA is provided $70 million to cover administrative costs of implementing the disaster assistance provisions and the 2002 farm bill. Other assistance included in the package includes about $60 million was provided to sugarcane producers for losses resulting from hurricanes in 2002 and another $60 million for sugar beet losses for either 2001 or 2002. There are tobacco payments to eligible persons at a $.055 per pound based on the national basic poundage quota for the 2002 marketing year. It is estimated that payments will total $53 million. Another $50 million is targeted for losses to the cottonseed industry resulting from hurricanes last year. The bill provides $250 million to replenish Section 32 funds that are used for government purchase of surplus fruits and vegetables and other commodities that are used by schools and food banks. In addition, $18 million is provided to compensate Florida growers whose trees were removed as part of citrus canker control, $15 million for bovine tuberculosis eradication, $10 million to compensate producers for Rio Grande losses of irrigation water, and $2 million to compensate New Mexico producers for losses caused by pesticide misapplications by the Forest Service.
        The disaster assistance will be funded by offsets from the new Conservation Security Program. In reaching agreement on disaster assistance, House Agriculture Committee Chairman Bob Goodlatte (R-Va.) said, "We are pleased that the final drought assistance provision provides targeted disaster relief to those farmers who need it the most. It is my hope that this approach will help countless American farmers avoid devastating financial circumstances. I am also pleased that it is paid for. However, the Committee is greatly concerned that it is paid for out of a carefully negotiated Farm Bill, and would have preferred that the funds had been found elsewhere. Breaking open the Farm Bill, before it has even been implemented, is a very serious matter. This is a dangerous precedent, which we strongly opposed throughout the course of these negotiations."
        A three-page summary of the provisions of the disaster package is available at http://agriculture.house.gov/agasisact.pdf. The full text of the conference report to accompany H.J. Res. 2 is available online at http://www.house.gov/rules/108_hjres2cr_text.htm. Division A includes the regular agricultural appropriations bill and Division M & Division N includes the agricultural disaster assistance legislation (starting on page 17 of 56 in the pdf format). (Contact: Jennifer Yezak Molen)

CONGRESS APPROVES OMNIBUS SPENDING PACKAGE

        As Congress prepared to adjourn for their President's Day recess, lawmakers approved a massive omnibus appropriations package (H.J. Res.2) late February13. The 3,000-page bill contains eleven appropriations bills for FY03 which Congress failed to approve last fall and includes a $3.1 billion disaster assistance package for farmers (see separate story).
        The huge spending measure provides almost $398 billion in total discretionary spending for FY03. It includes an across the board reduction of between .6% and .7% to offset additional discretionary funds in the bill. The package was approved in the House by a vote of 338 to 83 and in the Senate by a vote of 76 to 20.
        During debate in both chambers, Democrats sharply criticized the funding bill saying that it would cut a variety of critical programs from homeland security to education. Several environmental provisions and riders stirred the most intense complaints. One of the most controversial issues was a provision that would expand the Forest Service's authority to expedite tree thinning on federal lands. Another provision would prohibit court appeals on a pending Forest Service decision to set aside new wilderness areas in the Tongass National Forest in Alaska. The legislation also listed a ban on funding for pre-leasing studies for oil and gas drilling in the Arctic National Wildlife Refuge.
        For FY03 agriculture spending, the bill funds USDA's Animal and Plant Health Inspection Service (APHIS) activities at $105 million above last year for a total of $726 million. The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) is funded at $4.696 billion, an increase of $348 million above last year. The recommendation includes a $125 million reserve, as requested, should program costs or participation exceed estimates, as well as $25 million for the farmers' market nutrition program. The Food and Drug Administration (FDA) is funded at $1.391 billion, which is $22 million above last year. (Contact: Charlie Ingram)

ON THE HILL

~~Senate Panel Approves Conservation Tax Incentives~~The Senate Finance Committee has approved legislation which will give landowners an incentive to sell land for purposes of land conservation and preservation. The "Charity Aid, Recover and Empowerment Act" (CARE) provides several broad charitable giving incentives. Specifically, it would allow landowners to exclude from income 25 percent of the gain on sales or exchanges of land or water interests to eligible entities for conservation purposes. In addition, the bill would allow a charitable deduction for contributions of food inventories, and a tax exclusion for cost-sharing payments under the Partners for Fish and Wildlife Program.

~~New Energy Legislation Promotes Agriculture~~Sen. Blanche Lincoln (D-Ark.) has introduced seven legislative initiatives to encourage the development and use of renewable energy. One of the proposals would create tax incentives to encourage the production and use of biodiesel, a clean-burning alternative fuel produced from renewable sources such as soybean, cottonseed, rice oils, or animal fats. Another bill would encourage the production of energy from animal and agricultural waste. The legislation would classify biodiesel as an alternative fuel, giving it equal standing with other alternative motor fuels for fleet vehicles in the nation, such as ethanol and natural gas.

~~Livestock Tax Relief Bill Introduced~~Rep. Jerry Moran (R-Kan.) has introduced legislation which would provide tax relief to ranchers forced to sell their livestock due to natural disasters or to changes in government regulations on public lands. Under current law, a rancher has two years after the weather-related sale of livestock to reinvest in his herd without tax consequences. This is often not long enough to rebuild a herd. Moran's bill would give ranchers up to four years after the sale of livestock or two years after the end of the drought, whichever is longer, to replace the herd without tax consequences. This legislation would be retroactive to January 1, 2001. Moran's legislation also changes the tax deferral provisions in the tax code. Currently, a producer can defer income for a single year. This bill will give producers an additional year after the end of a drought to defer their income. In addition, the legislation includes a proposal that treats sales caused by changes in federal land management policies in the same manner as drought related sales, and a measure that would allow producers to use Farm Service Agency (FSA) information to document drought conditions

~~Lawmakers Reintroduce Renewable Fuels Act~~Senate Minority Leader Tom Daschle (D-S.D.) and Sen. Richard Lugar (R-Ind.) have reintroduced legislation that would triple the amount of ethanol and biodiesel fuels in the nation's gasoline over the next ten years. The legislation is the same bill that was added to the comprehensive Energy Bill last year, but did not pass before Congress adjourned. Specifically, the Renewable Fuels Act would: (1) expand the renewable fuels standard to five billion gallons by 2012; (2) eliminate the federal reformulated gasoline (RFG) oxygen requirement; and (3) phase down the use of MTBE in the U.S. gasoline market over four years. The lawmakers said the proposal would stimulate the rural economic development, increase the flexibility of the national fuel supply to reduce the impact of future price spikes, and protect the environment.

~~Committees Reorganize on Homeland Security~~Rep. Christopher Cox (R-Calif.), chairman of the new House Select Committee on Homeland Security, and ranking member Jim Turner (D-Texas) have announced the members of the panel. The new select committee has fifty members and was created to coordinate all House oversight of the Department of Homeland Security Department. Members of the committee include House Agriculture Committee Chairman Robert W. Goodlatte (R-Va.). In addition, House Appropriations Committee Chairman C.W. Bill Young (R-Fla.) announced a major restructuring of subcommittee jurisdictions in order to create a new Homeland Security Subcommittee. The reorganization plan will place all agencies in the new Homeland Security Department (DHS) under one subcommittee including border activities from the Animal and Plant Health Inspection Service (APHIS). (Contact: Charlie Ingram)

ALASKA GUIDE RELEASED BY NASDA

        The NASDA Research Foundation, working with the National Center for Agricultural Law Research and Information at the University of Arkansas Law Center, released a new environmental law guide for Alaska this week. The new guide entitled "State Environmental Laws Affecting Alaska Agriculture," details the state's environmental laws that affect agriculture. A separate guide on federal legislation is also available. The guides are designed to help farmers, ranchers, landowners, and their consultants understand the effect environmental laws have on agricultural operations. The guides contain useful tips about state and federal statutes and a list of agencies and organizations to contact for additional information.
        NASDA is publishing a guide for each state. The 32 state and federal guides completed to date are located on NASDA's website at http://www.nasda.org/. To access the guides, go to "NASDA Research Foundation" and click on "State-by-State Environmental Guides Affecting Agriculture." The guides are available in PDF format. (Contact: Tom Sommer)

USDA SEEKS COMMENTS ON NEW FARM CONSERVATION PROGRAM

        This week, USDA's Natural Resources Conservation Service (NRCS) released an Advance Notice of Proposed Rulemaking (ANPRM) and request for comments on the new Conservation Security Program (CSP). This is a new program authorized in the 2002 farm bill which could provide new financial rewards for producers who provide environmental goods and services to the public.
        CSP is a voluntary program that provides financial and technical assistance to conserve and improve soil, water, air, energy, plant and animal life on private working lands. Working lands include cropland, grassland, prairie land, improved pasture and rangeland, as well as certain forested land that is an incidental part of an agriculture operation. There are three tiers of participation on which payments are based. Unlike other traditional USDA conservation programs--which reward producers for undertaking new conservation efforts--the CSP provides financial assistance for maintaining conservation efforts. The CSP was developed in the farm bill legislation by Sen. Tom Harkin (D-Iowa). It includes many concepts and recommendations that are contained in NASDA's Agricultural Stewardship Block Grant Program.
        The advance notice gives the public an opportunity to comment on key issues that have been raised about implementation of the program. NRCS is specifically seeking input on 15 issues, including: (1) the criteria used to determine what is a resource concern; (2) minimum requirements that may apply to all contracts nationally; (3) conservation practices and activities eligible for payment; (4) definition of an agricultural operation; (5) calculation of payments; and (6) assessment of conservation benefits. The notice is expected to be published in the Federal Register on February 18, 2003, with a 30-day comment period ending on March 20. Later, there will be an additional opportunity to comment on a proposed rule before a final rule is issued. NASDA plans to submit comments on the CSP and is coordinating this effort with NASDA's Natural Resources and Environment Committee. The advance notice and additional information on CSP can be found on the NRCS website at http://www.nrcs.usda.gov/programs/farmbill/2002/products.html. (Contact: Charlie Ingram or Tom Sommer)

FDA BUDGET INCLUDES FOOD SECURITY FUNDING

        The president's proposed FY04 budget for the Food and Drug Administration (FDA) would provide $116.8 million for bioterror-related food safety programs at the agency. The amount represents an increase of $19 million, or 19 percent over current funding levels. Overall, the president is requesting $3.6 billion for bioterrorism funding at the Department of Health and Human Services (HHS) for research, prevention, and preparedness
        Of the $116.8 million, $20.5 million would be directed toward activities that implement the Public Health Security and Bioterrorism Preparedness and Response Act of 2002, as well as related activities to protect the food supply. The FDA budget request directs $5 million toward improving laboratory preparedness by expanding federal, state and local involvement in the Electronic Laboratory Exchange Network, which enables laboratories across the country to exchange information on pathogens in food. Another $5 million would be used to improve the quality of food monitoring and inspections through state contracts and grants. The budget proposes $10.5 million to implement a registration system for domestic and foreign food production, handling and storage facilities, as well as a prior notice system for imported food shipments. Last week, FDA proposed regulations to implement these new initiatives. President Bush's fiscal year 2004 budget request includes a $112 million increase for food safety, homeland security, and agricultural protection systems at USDA. (Contact: Charlie Ingram)

U.S. ADVANCES PROPOSALS IN FREE TRADE NEGOTIATIONS

        This week, the United States announced a comprehensive offer to eliminate tariffs and trade barriers in the negotiations for the Free Trade Area of the Americas (FTAA), a $13 trillion market of 34 countries and nearly 800 million people. The U.S. is offering to eliminate its import duties on the majority of industrial and agricultural imports from the Western Hemisphere immediately upon entry into force of the FTAA and is offering broad access to its services, investment and government procurement sectors.
        U.S. Trade Representative Robert B. Zoellick said "it is our shared hemispheric vision that free trade and openness benefits everyone and provides opportunity, prosperity and hope to all our peoples. President Bush has made the FTAA a top U.S. priority. The United States has created a detailed roadmap for free trade in the Western Hemisphere--we've put all our tariffs on the table because free trade benefits all and brings us closer together as neighbors."
        The U.S. offer sets an important benchmark in the market access negotiations and it demonstrates U.S. leadership as negotiations move into a critical and substantive phase. To encourage other FTAA countries to make equally ambitious market access proposals, the U.S. offer only extends to those FTAA countries that put their own offers on the table. Over the next several months, the United States and other FTAA countries will respond to each other's initial offers and begin negotiations in preparation for the Miami Ministerial meeting in November, which the United States is co-chairing with Brazil. The U.S. offer covers five key areas of the negotiations: consumer and industrial goods; agriculture; services; investment; and government procurement.
        Agriculture Secretary Ann Veneman said this week "a Free Trade Area of the Americas (FTAA) will boost trade and spur economic development throughout the region resulting in additional market access and opportunities for U.S. farmers, ranchers and food companies." The U.S. offers provide different rates of reductions in trade barriers throughout the region to reflect the wide disparity in economic size and development among FTAA countries. The 34 countries had earlier agreed that differences in the levels and development and size of economies should be taken into account in the development of the market access offers. The administration has consulted extensively with Congress and trade advisory groups over several months during the drafting of these offers.
        Among the highlights are that about 65% of U.S. imports of consumer & industrial goods from the Hemisphere (not already covered by NAFTA) would be duty-free immediately upon effectiveness of FTAA, with all duties on consumer & industrial products eliminated by 2015. For U.S. imports of textiles and apparel from FTAA countries, the offer is even bolder with U.S. proposing to move to zero tariffs in just five years, provided other countries reciprocate.
        About 56% of agricultural imports from the Hemisphere would be duty-free immediately when FTAA takes effect. Other agricultural tariffs fall into staging categories of five years, 10 years, or longer, tailored to individual countries. The offer to FTAA countries is designed to mesh with broad U.S. initiatives in the World Trade Organization (WTO) negotiations. For example, it is intended to spur increased cooperation in the WTO on important global issues, such as the U.S. proposal to eliminate agricultural export subsidies in all WTO members and to reduce substantially trade-distorting farm supports.
        In addition to the FTAA and WTO, the United States is pursuing an aggressive strategy of global trade liberalization through bilateral agreements. In the last month, the United States has launched FTA negotiations with five Central American nations (Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua); with Morocco; and with the nations of the Southern African Customs Union (SACU - Botswana, Lesotho, Namibia, South Africa and Swaziland). The United States also recently completed FTA negotiations with Singapore and Chile. (Contact: Jennifer Yezak Molen)

ENVIRONMENT BRIEFS

~~Farm Bureau Asks Supreme Court To Review Ag Water Case~~The American Farm Bureau Federation has filed a petition asking the U.S. Supreme Court to review a Clean Water Act (CWA) case that could affect farmers and ranchers across the nation. Specifically, the Farm Bureau petition asks the court to review the U.S. Ninth Circuit Court ruling in the case Pronsolino v. Nastri. The Ninth Circuit upheld a trial court decision, which ruled that nonpoint sources, such as agriculture, are subject to Environmental Protection Agency (EPA) regulations. The current ruling holds that federal limits on water pollution under the Total Maximum Daily Load (TMDL) water quality program apply to nonpoint sources. The Clean Water Act restricts federal regulation only to point source pollutants, such as end-of-pipe discharges. The Farm Bureau petition argues that agricultural and forestry run-off, generally the result of heavy rains, can be controlled by land-use activities, but that is a task Congress left expressly to state governments.

~~Senate Democrats Express Concern About New Watershed Rule~~Senate Democrats have sent a letter to the Environmental Protection Agency (EPA) expressing concern about the agency's upcoming new proposal on the Total Maximum Daily Load (TMDL) water quality program. The TMDL program sets limits on the amount of pollutants that a lake, river, or stream can receive and still meet water quality standards. The Clinton administration issued a TMDL rule in July 2000, but the proposal created an uproar because it included strict new controls on nonpoint agricultural runoff. NASDA and other agricultural groups opposed the rulemaking and were instrumental in getting Congress to withhold funding for the effort. Last December, EPA took steps to withdraw the original TMDL rule and announced plans to issue a new "watershed" rule sometime this spring. Sen. Jim Jeffords (I-Vt.) and seven senators said EPA's new proposal would hamper progress in reducing water pollution. The lawmakers said they would strongly oppose any changes that relaxed state schedules for setting TMDL levels, allow states to reclassify waters, or make other "weakening" changes to the current program.

~~New Chairman Seeks Changes in Environment Agenda~~Sen. James Inhofe (R-Okla.), the new chairman of the Senate Environment and Public Works Committee, this week outlined the panel's agenda for the 108th Congress. Inhofe said the committee's work would emphasize sound science and cost-benefit analysis in environmental policy decisions. He said he would push for procedural changes in committee operations and take an approach to "serving the public, rather than ruling them" and noted that extreme environmental groups and Environmental Protection Agency (EPA) bureaucrats would probably be outraged. Issues on the committee agenda include Endangered Species Act reform, water infrastructure legislation, renewable fuels, surface transportation, and President Bush's proposed Clear Skies Initiative to reduce air pollution.

~~EPA Opens New Environmental Emergency Response Center~~The Environmental Protection Agency (EPA) has opened the Environmental Response Team-West in Las Vegas, a new office with staff who will travel throughout the country to tackle environmental accidents. The Las Vegas facility houses a team of 15 emergency responders who provide 24-hour, immediate technical and scientific expertise in the following areas: air, soil and water monitoring and sampling; assessing and responding to chemical, biological, and radiological threats; on-site identification and analysis of contaminated materials; environmental risk assessments; oil spill cleanups; bioremediation; health and safety protocols; and hazardous waste cleanups at extremely complex and sensitive sites. EPA recently established a Homeland Security Research Center in Cincinnati, Ohio, to coordinate research in building decontamination, rapid risk assessment, drinking water protection and other fields.

~~House Resources Committee Announces Subcommittee Leaders~~House leaders continue to get organized for the 108th Congress, and new Resources Committee Chairman Richard Pombo (R-Calif.) has announced the leadership of the committee's five subcommittees. Rep. George Radanovich (R-Calif.) will chair the Subcommittee on National Parks, Recreation and Public Lands; Rep. Wayne Gilchrest (R-Md.) will chair the Subcommittee on Fisheries Conservation, Wildlife and Oceans; Rep. Ken Calvert (R-Calif.) will chair the Subcommittee on Water and Power; Rep. Scott McInnis (R-Colo.) will chair the Subcommittee on Forests and Forest Health; and Rep. Barbara Cubin (R-Wyo.) will chair the Subcommittee on Energy and Minerals Resources. (Contact: Charlie Ingram)

PESTICIDE BRIEFS

~~Pesticide Harmonization Bill Reintroduced~~Sen. Byron Dorgan (D-N.D.) has reintroduced legislation (S. 332) that would permit U.S. farmers to use the cheaper Canadian pesticide formulations if they are effectively the same as the formulation sold in the United States. Specifically, the bill would amend the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) to allow states to register a Canadian pesticide for distribution and use within that state if the pesticide is substantially similar or identical to a pesticide already sold in the United States. NASDA has urged passaged of the legislation to provide U.S. farmers with a level playing field and equal access to crop protection products. Dorgan has argued that cross-border trade under the North American Free Trade Agreement (NAFTA) is hurting U.S. farmers because their input costs are higher, especially costs for a number of commonly used pesticides. Other cosponsors of the bill include Senate Minority Leader Tom Daschle (D-S.D.), Sens. Carl Levin (D-Mich.), Kent Conrad (D-N.D.), and Max Baucus (D-Mont.).

~~EPA Submits Critical Use Exemptions for Methyl Bromide~~The Environmental Protection Agency (EPA) transmitted its formal nomination for "critical use exemptions" from the phase-out of methyl bromide. Methyl bromide is an important agricultural fumigant that is being phased-out under the 1990 Montreal Protocol treaty because it depletes the ozone layer. The treaty contains a provision for countries to request exemptions for uses of methyl bromide for which there are no technical or economically feasible alternatives. The United States is submitting a two-year exemption request to begin in 2005. This request is based on a joint EPA and USDA technical review process. The request notes that USDA has spent over $146 million in research related to alternatives for the crops on which methyl bromide is currently used. The critical use exemptions being requested will cover the following uses: food processing, commodity storage, forest seedlings, orchard seedlings, orchard replant, turf and sod, tomatoes, peppers, eggplant, strawberry, strawberry nurseries, cucurbits, ornamentals, ginger, transplant trays used in certain greenhouse production systems and sweet potatoes. In addition, there is a separate congressional effort to include language in the omnibus appropriations bill that would freeze production levels of methyl bromide at 2002 levels. This would allow producers to continue to have the pesticide available until a viable alternative can be found. (Contact: Charlie Ingram)

FOOD SAFETY BRIEFS

~~Senators Call for Action in Food Safety System~~Sens. Richard Durbin (D-Ill.) and Tom Harkin (D-Iowa) this week released a new food safety report and called for further federal action to keep Americans safe from foodborne illness. The report, prepared by the consumer group Safe Tables Our Priority (STOP), says that foodborne illness continues to sicken an estimated 76 million and kill 5,000 Americans each year. According to STOP, there are eight reasons why "people are still dying" from foodborne illness. The report says that measures on farms and feedlots aimed at reducing pathogens are inadequate, transportation and storage of food products are not adequately regulated, and the current recall and traceback system is flawed and ineffective. The report calls for the creation of a single, federal food safety agency and enactment of a strong, comprehensive, risk-based food safety law. Sen. Durbin said that the administration's food safety budget for FY04 was inadequate and was short by $95 million needed. Durbin also called for the creation of a single food agency, additional pathogen testing for meat and poultry, and improved inspection and safety controls on food served in schools.

~~Food Industry Opposes Administration's Inspection Fee Proposal~~A coalition of meat industry, food, and agricultural groups sent a letter to all members of Congress this week opposing "user fees" proposed by USDA to pay for meat, poultry and egg products inspection. The user fees were proposed as part of the administration's FY04 budget for USDA. The coalition said the proposed user fees for government mandated food safety inspection programs represent a tax on consumers, livestock producers, and the meat, poultry and egg processing industries. USDA has proposed user fees for food safety inspection programs for years and Congress routinely rejects them.
~~FSIS Examines Plants on HACCP Plans~~This week, FSIS Administrator Dr. Garry L. McKee said that about 130 large beef slaughter plants are now undergoing examinations of their Hazard Analysis and Critical Control Point (HACCP) plans to determine whether they are scientifically valid and are being carried out conscientiously. Last September, FSIS issued a directive that required all establishments to reexamine their food safety strategies in light of evidence that E. coli O157:H7 was more prevalent in live animals than was previously thought. The examinations are being conducted by FSIS consumer safety officers, a special group of inspectors created in the past two years who are intensively trained in the science of HACCP. According to FSIS, the examination of HACCP plans is part of the agency's continuing efforts to protect public health by strengthening pathogen prevention practices.

~~USDA To Hold Meeting on Listeria~~USDA's Food Safety and Inspection Service (FSIS) will hold a public meeting February 26 to discuss the results of a draft risk assessment for Listeria. The draft risk assessment is an important step in developing new regulations for addressing Listeria monocytogenes. FSIS conducted an extensive, scientific risk assessment to examine how Listeria may contaminate meat and poultry products during the production and packaging processes. The risk assessment also addresses the effectiveness of testing food contact surfaces and the importance of sanitation standards. The draft risk assessment will be available to the public on the FSIS website at http://www.fsis.usda.gov. The public meeting is one of a series of sessions announced last year to discuss food safety and public health issues.

~~Report on Food Security Initiatives Available~~USDA's Food Safety Inspection Service (FSIS) has issued a report on the agencies food security initiatives and activities. The report is titled "Protecting America's Meat, Poultry, and Egg Products--A Report to the Secretary on the Food Security Initiatives of the Food Safety and Inspection Service." Since the attacks of September 11, FSIS has strengthened efforts to prevent, detect, and respond to food-related emergencies resulting from acts of terrorism. The report details initiatives such as assessing vulnerabilities from farm-to-table for domestic and imported meat, poultry and egg products; enhancements to laboratory security and increasing testing capabilities; developing and distributing the FSIS Security Guidelines for Food Processors; and establishing the Office of Food Security and Emergency Preparedness. Copies of the report are available from the FSIS website at http://www.fsis.usda.gov/oa/topics/foodsecreport.pdf. (Contact: Charlie Ingram)

USDA NEWS

~~USDA Seeks Organizations to Certify as Nominators for Beef Board~~ USDA is accepting applications from organizations seeking to be certified to nominate individuals to the Cattlemen's Beef Promotion and Research Board. Organizations already certified need not reapply. The 108-member Cattlemen's Beef Promotion and Research Board was established by the Beef Promotion and Research Act of 1985. The board administers a coordinated program designed to expand foreign and domestic markets and uses for beef. Membership is comprised of cattle producers and beef importers. Upcoming state and group vacancies will require nominees from Arizona, California, Colorado, Iowa, Kansas, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Mexico, North Carolina, Oklahoma, South Dakota, Tennessee, Texas, Utah, Wisconsin, Wyoming, mid-Atlantic unit, Northeast unit, Southeast unit, and the importer unit. There are approximately 35 vacancies. Applications must be received by close of business Feb. 21, 2003. Copies of the notice, certification applications and additional information are available on the Internet at http://www.ams.usda.gov/lsg/mpb/beef/ls25.pdf.

~~Agricultural Outlook Forum Next Week~~USDA's annual Agricultural Outlook Forum is scheduled for Feb. 20 to 21, 2003, in Arlington, Va. The conference will examine the current state of U.S. agriculture and include panel discussions on various issues important to the nation's food and agriculture sector including production, trade, conservation and rural development. The forum includes an address by Agriculture Secretary Ann M. Veneman on Feb. 20 as well as speakers from other agencies and the private sector. Among the speakers on Feb. 20 are Under Secretary of Treasury for International Affairs John Taylor, USDA Under Secretary for Farm and Foreign Agricultural Services J.B. Penn and USDA's Chief Economist Keith Collins. They will be discussing 2003 market prospects and farm policy issues. Feb. 20 afternoon sessions will feature sessions on the farm and rural economy, el Ni¤o's impact, food safety and changing eating habits. Afternoon speakers include USDA Under Secretary for Rural Development Thomas C. Dorr and New York University professor Marion Nestle. USDA Under Secretary for Food Safety Elsa Murano will moderate a session with food safety experts. Sessions on Feb. 21 will provide in-depth discussion of 2003 farm and commodity prospects, conservation and environmental issues and a number of trade topics. Preregistration is required to attend the forum, which will be held at the Crystal Gateway Marriott Hotel in Arlington, Virginia. Registration details and the complete forum program are posted at http://www.usda.gov/oce/waob/agforum.htm.

~~USDA Requests Nomination for Advisory Committee~~USDA's Foreign Agriculture Service (FAS) is seeking nominations for five slots on the Advisory Committee on Emerging Markets. The 20-member committee represents a broad cross-section of the U.S. agricultural and agribusiness industry. The primary purpose of the committee is to make recommendations on policies and programs which will enhance agricultural exports to emerging markets through the use of Emerging Markets Program authority. Specifically, committee members review from a business perspective qualified proposals submitted to the program for funding assistance, principally from the private sector. This review is done prior to obtaining policy level approval and funding commitments from the agency. The program is broad in scope and it uses various forms of technical assistance to promote market development, improve market access, or assist in the development of emerging market economies. Nominations must be received by FAS by Feb. 28. Additional information may be received by contacting FAS at 202/720-4327 or at http://www.fas.usda.gov/mos/em-markets/acem.html. (Contact: Jennifer Yezak Molen)


STATE NEWS


GOVERNOR LINGLE APPOINTS DIANE LEY AS DEPUTY TO THE CHAIRPERSON OF AGRICULTURE

        Hawaii Governor Linda Lingle has named Diane L. Ley as deputy to the chairperson of the Board of Agriculture. Ley has more than 15 years of experience in Hawaii's agriculture industry.
        As administrative assistant for the Big Island Farm Bureau, Ley is responsible for the day-to-day operations and administration of the Hilo, Hamakua, Kohala, and Kona chapters of the Farm Bureau, as well as the Big Island Farm Bureau. She serves as a liaison between the Farm Bureau and county, state, and federal agencies, the legislature, commodity and community organizations, and individual farmers and ranchers.
        Ley also serves as administrative assistant for the Hawaii Farm Bureau Federation, where she coordinates various activities and programs and works with the federation's standing committees on environmental stewardship, commodity advisory group, convention and agriculture conference, membership, promotion, and the agricultural theft task force. She is also an assistant coordinator for the College of Tropical Agriculture and Human Resources (CTAHR) Agricultural Leadership Foundation.
        Ley is a board member of the Hawaii State Agribusiness Development Corporation, vice president of the Agricultural Leadership Foundation of Hawaii, interim president of the Agricultural Leadership Alumni Association, and treasurer of the Hawai`i Florist and Shippers Association. She previously was involved with the Hawaii Island Economic Development Board Agricultural Committee, Hawaii Anthurium Industry Association's annual HORT Show, Hawaii Agricultural Promotion Association, and the Papaya Administrative Committee.
        She was a general partner with Farm 49 in Volcano, owned and operated Live Christmas Tree Farm in Glenwood, and was a farm laborer with Hawaiian Herb and Spice Co. in Glenwood and Orchids of Hawaii in Hilo and Glenwood. Ley previously worked for the Hilo Main Street Program and Hilo Downtown Improvement Association as the office administrator.
        "Diane's vast knowledge of the agricultural sector, both as an administrator and former business owner, will complement the work already underway by Board of Agriculture Chairperson Sandra Lee Kunimoto," said Governor Lingle. "Sandra and Diane will make a tremendous leadership team that will help our agriculture industry grow and diversify."
        "I look forward to working with our local farmers, agricultural businesses, research community and all sectors of government to strengthen our agricultural base and lay the groundwork for the future development of the industry," said Ley.
        Ley attended University of Hawaii at Hilo and is a graduate of the CTAHR Agricultural Leadership Foundation. (Contact: Sandra Lee Kunimoto, 808/973-9550)

ZIEWACZ AND HENERT APPOINTED TO TOP MANAGEMENT

        Rod Nilsestuen, secretary of the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP), has appointed Judy Ziewacz as deputy secretary and Martin Henert as executive assistant. "I am delighted to announce the appointments of Judy Ziewacz and Marty Henert to my senior management team. These two individuals bring a wide variety of experience, skills and talent which will be great assets to DATCP and to me," Nilsestuen said.
        Ziewacz served as chief of staff to U.S. Rep. Al Baldus, who chaired the House Dairy, Livestock, Poultry subcommittee as well as its Rural Development subcommittee. Both are crucial posts for Wisconsin, Nilsestuen noted.
        She served as director of government affairs for the Wisconsin Federation of Cooperatives and played a key role in the overhaul of Chapter 96 the Agricultural Marketing Act which led to the creation of the WMMB, Wisconsin Corn Producers Board, Wisconsin Soybean Marketing Board and other commodity programs. She has worked extensively on legislation involving grain security and agricultural conservation practices, and on DATCP budgets, rural and cooperative development, and dairy marketing. Her extensive work experience includes work in dairy policy for the nation's largest dairy association.
        She served as executive director of the National Rural Cooperative Development Task Force. Judy's determination and leadership resulted in the first major reinvestment of new forms of cooperative development in over two decades. The task force resulted in the creation of 17 cooperative development centers around the U.S., an investment of over $34 million and hundreds of new cooperative initiatives.
        Since 1996, Ziewacz has served as executive director of the Cooperative Development Foundation and a vice president of the National Cooperative Business Association, a national organization for cooperatives.
        Ziewacz will work with DATCP's division administrators on agency programs and will focus on coordination of its relations with the Governor's office, the Legislature, and Wisconsin's congressional delegation.
        Martin Henert comes to the department with more than 26 years of budget and senior management experience at the Department of Natural Resources. As executive assistant, he will oversee and direct the internal operations of the agency, as well as supervise the development and implementation of the agency's budget. He will also serve as the primary liaison with the secretary of the Department of Natural Resources.
        In his career at the Department of Natural Resources, Henert has served as division administrator for the Division of Management Services, director of the Administrative and Field Services Bureau and a budget and management analyst.
        Henert is a graduate of Beloit College and holds a master's degree from the University of Chicago. He and his wife Ellen have two sons and reside in DeForest. Henert is a former member of the Natural Resources Foundation of Wisconsin and has served as president of the Beloit College Alumni Association. (Contact: Rod Nilsestuen, 608/224-5015)