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A publication of the National Association of State Departments of Agriculture HOUSE PANEL APPROVES 07 FARM BILL TITLES ON NUTRITION AND FORESTRY NEW U.S. ENERGY GOAL ADOPTED BY SENATE USDA TO RELEASE REPORT ON ETHANOL CO-PRODUCTS USED FOR LIVESTOCK FEED USDA REOPENS COMMENT PERIOD FOR PROPOSED RULE FOR MANDATORY COUNTRY OF ORIGIN LABELING FDA RELEASES NEW SOFTWARE TOOL FOR FOOD DEFENSE EPA ANNOUNCES NEW WEBSITE ON AGRICULTURE REGULATIONS State News--TAIWAN DEAL WILL UP DEMAND FOR MINNESOTA AGRICULTURAL EXPORTS State News--PURCHASE OF U.S. WHEAT INCLUDES SOFT WHITE FROM OREGON _________________________________________________________Past Issues What's New on the NASDA Website
NASDA's 2007 Farm Bill Recommendations NASDA's Midyear Meeting Documents NASDA's Trade Shows: USFES; AFF; IFE
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_____________________________________________________________________ INFORMATION ABOUT REGIONAL MEETINGS AVAILABLE Meeting and hotel information is available for the WASDA and MASDA annual meetings. The hotel group and registration deadlines are coming up soon, so check out the websites at http://www.nasda.org/wasda2007 and http://www.nasda.org/masda/. The MASDA 2007 hotel rate ends June 23. WASDA registration ends July 1! NASDA's ANNUAL MEETING REGISTRATION MATERIALS ARE AVAILABLE Registration and hotel information is available at http://www.nasda.org/nasda2007/. Online registration will be available this week. WSDA has organized four suites at the Seattle Mariners game on Tuesday, Sept. 25. If you wish to attend, you must RSVP because seating is limited. Please sign up before July 23 by going to the NASDA 2007 website. Because of limited space, if you do not register for the meeting by July 23, you will be dropped from the list of attendees to the game. The cost for the event is included in the meeting registration fee. _____________________________________________________________________ HOUSE PANEL APPROVES 07 FARM BILL TITLES ON NUTRITION AND FORESTRY On June 14, the House Agriculture Subcommittee on Department Operations, Oversight, Nutrition and Forestry marked up and approved two titles for the 2007 farm bill. The subcommittee approved the Nutrition and Forestry titles by voice vote and no major amendments were offered. During the session, several republicans on the panel expressed concern that proposed increased funding for the food stamp and other nutrition programs was based on "reserved funds" which may never materialize. Committee Chairman Collin Peterson (D-Minn.) said the budget issue had the attention of the congressional leadership and he hoped the issue would be resolved soon. The subcommittee approved an amendment offered by Rep. Jo Bonner (R-Ala.) to change the name of the food stamp program to the "Secure Supplemental Nutrition Access Program (SSNAP)." The panel also approved an amendment offered by Rep. Steve Kagen (D-Wisc.) to create a grant program for nutrition education. Kagen withdrew two amendments to promote "shelf stable"(canned) fruits and vegetables for low income households, and to increase funding for the USDA fresh fruit/vegetable program. Lawmakers defeated an amendment offered by Rep. Charles Boustany (R-La.) that would have allowed states to use private contractors to manage certain parts of the food stamp program. Both the Nutrition and Forestry Titles are posted on the House Agriculture Committee's farm bill website, along with a section-by-section summary, at http://agriculture.house.gov/inside/2007FarmBill.html This week, the House Agriculture Subcommittee on General Farm Commodities and Risk Management will markup the commodity title of the farm bill. A discussion draft is also posted on the House Agriculture Committee's website. News reports indicate that the subcommittee may also debate and consider alternative proposals for the commodity title such as one proposed by the Cato Institute that suggests that "Congress should consider an up-front buyout program in place of existing subsidies and price supports." The proposal can be located at http://www.freetrade.org/files/pubs/pas/tpa-034.pdf. This markup will complete subcommittee markups with the full committee taking up the bill next week. (Contacts: Charlie Ingram and Jennifer Yezak) NEW U.S. ENERGY GOAL ADOPTED BY SENATE Last week, the U.S. Senate adopted by unanimous consent a resolution calling for a new national renewable energy goal: 25 percent of the nation's energy supply from renewable sources by 2025. The resolution, which builds on a vision developed by a broad coalition of agriculture, forestry, industry, and environmental leaders, was adopted by voice vote as an amendment to the energy legislation currently under consideration on the Senate floor. A final vote on the full Senate energy package is expected this week. NASDA is a member of the 25x'25 Alliance. "The 25x'25 resolution stresses the virtue of exploring an all-inclusive renewable energy strategy by emphasizing the need to cultivate energy from all kinds of renewable resources, such as wind, biomass, solar, hydropower and geothermal sources," said lead sponsor, Sen. Ken Salazar (D-Colo.). The 25x'25 vision "is bold and fully attainable. If implemented, it would dramatically improve our energy security, our economy, and our ability to protect the environment and combat global warming," he added. The amendment also reinforces the 25x'25 principle that the U.S. agricultural and forestry industries, while producing renewable energy, will continue to produce safe, abundant and affordable food feed and fiber." Sen. Chuck Grassley (R-Iowa), another cosponsor, said the pending energy legislation "is an appropriate place to include the 25x'25 resolution. The 25x'25 vision sets workable goals for renewable energy production and use that we can all aim for with sensible policies and initiatives." Sen. Tom Harkin (D-Iowa), who is also a lead cosponsor, said "energy security is tied to national security and also means income and economic opportunity for agriculture and rural America." The resolution has the support of more than 500 national, regional and local agricultural, forestry, business, energy, environmental, and labor organizations; along with more than a third of the nation's governors and 10 state legislatures. A similar resolution, H. Con. Res. 25, is pending in the House of Representatives. (Contact: Jennifer Yezak) USDA TO RELEASE REPORT ON ETHANOL CO-PRODUCTS USED FOR LIVESTOCK FEED On June 29, USDA's National Agricultural Statistics Service (NASS) will release a report on livestock producers' use of ethanol co-products to feed cattle and hogs. The report, entitled "Ethanol Co-Products Used for Livestock Feed," will highlight results of a survey conducted by NASS with the support of the Nebraska Corn Board. NASS contacted approximately 9,400 livestock operations in 12 states to determine whether they used ethanol co-products--including distillers' grains and corn gluten feed--in their feed rations in 2006. NASS collected information regarding the volume and type of co-products fed, how the co-products were procured and used, and what concerns and barriers may have prevented operations from feeding co-products. Like all NASS reports, it will be available online at http://www.nass.usda.gov. (Contact: Jennifer Yezak) USDA REOPENS COMMENT PERIOD FOR PROPOSED RULE FOR MANDATORY COUNTRY OF ORIGIN LABELING Last week, USDA announced that it is reopening the comment period for 60 days for the proposed rule for mandatory country of origin labeling (COOL) for beef, lamb, pork, perishable agricultural commodities, and peanuts. USDA's Agricultural Marketing Service (AMS) is reopening the comment period to request general comments. Persons providing comments should take into account that AMS has changed some definitions and requirements in the Interim Final Rule for fish and shellfish, which was published after the proposed rule, that would now be applicable to all covered commodities. USDA will review the comments and information received as it promulgates a final rule for mandatory COOL for all covered commodities. When preparing comments on the proposed rule, AMS asks that interested parties consider the provisions of the Interim Final Rule for fish and shellfish and whether the definitions and requirements in the interim final rule can also be applied to beef, lamb, pork, perishable agricultural commodities, and peanuts. AMS is simultaneously reopening the comment period for the Interim Final Rule for the mandatory COOL program for fish and shellfish covered commodities. USDA published the proposed rule for mandatory COOL of beef, lamb, pork, perishable agricultural commodities, and peanuts in the Oct. 30, 2003, Federal Register. That proposed rule requires designated retailers and their suppliers to notify customers of the country of origin of covered commodities as well as requires retailers and their suppliers to maintain specific records to verify claims. The full text can be found at http://www.ams.usda.gov/cool/ls0304.pdf. Details of the comment period reopening will be published in the June 20 issue of the Federal Register. Comments are due August 20 and should be submitted online at http://www.regulations.gov. Additional information on this and the COOL program can be found at http://www.ams.usda.gov/cool. (Contact: Jennifer Yezak) FDA RELEASES NEW SOFTWARE TOOL FOR FOOD DEFENSE The U.S. Food and Drug Administration (FDA) has released a new tool to help growers, packers, processors, manufacturers, warehousers, transporters, and retailers in the food industry determine the vulnerability of individual food facilities to biological, chemical, or radiological attack. The software program, called the CARVER + Shock Software Tool, is a science-based prevention strategy to safeguard the food supply. FDA's goal in developing the CARVER + Shock software is to maximize protection of the American food supply. The risk-ranking methodology used by the CARVER + Shock software tool has been designed to assist facility operators in identifying potential vulnerabilities and assist in providing preventive measures to increase the defense of products and operations. In 2006, FDA launched the ALERT Initiative which was designed to raise industry awareness of food defense and preparedness issues. CARVER + Shock builds on ALERT, and allows a more formal and detailed food defense assessment. To see a consumer article called CARVER + Shock: Enhancing Food Defense, visit http://www.fda.gov/consumer/updates/carvershock061107.html. (Contact: Charlie Ingram) EPA ANNOUNCES NEW WEBSITE ON AGRICULTURE REGULATIONS The Environmental Protection Agency (EPA) recently announced a new website containing an easy and simple look-up tool listing federal environmental regulations that could potentially apply to agriculture. The web site is part of EPA's National Strategy for Agriculture, which was signed by EPA Administrator Stephen L. Johnson in May 2006. The strategy aims to improve communication, collaboration and innovation with the agricultural community to build a more environmentally productive relationship. More information on the agriculture regulatory matrix is available at: http://www.epa.gov/agriculture/llaw.html. (Contact: Charlie Ingram) STATE NEWS TAIWAN DEAL WILL UP DEMAND FOR MINNESOTA AGRICULTURAL EXPORTS Minnesota Agriculture Commissioner Gene Hugoson and members of two Taiwanese agricultural associations today signed an agreement to promote more corn and soybean trade between Minnesota and Taiwan. Minnesota Department of Agriculture (MDA) Commissioner Gene Hugoson signed a memorandum of understanding (MOU) with representatives of the Taiwan Vegetable Oil Manufacturers' Association and the Taiwan Feed Industry Association to actively promote trade of key agricultural products. By signing the MOU, the participants agreed to mutually cooperate on promotional trade activities including exchanging invitations to trade conferences and trade fairs, organizing trade missions, establishing links between their respective trade web sites and developing additional trade materials. The MOU also included an agreement that the terms, quantities, prices and conditions for the purchase and sale of Minnesota corn and soybean exports shall be negotiated privately between importers and private suppliers. Hugoson said signing the MOU will strengthen the state's international trade opportunities. "Having a mutually signed agreement to cooperate on trade issues will definitely help boost demand for Minnesota products in Taiwan as well as other promising markets," said Hugoson. Other dignitaries participating in today's signing included Han-yeh Wang, governor of the Taiwan Vegetable Oil Manufacturers' Association, Wen-yuh Huang, assistant general secretary of the Taiwan Feed Industry Association, Thomas Chen, director of the Taipei Economic and Cultural Office in Chicago and the group's leader, Paul Sun, chairman of the World Vegetable Center in Taiwan. Two Taiwanese trade delegations are touring the U.S. this month as part of a U.S. procurement tour. The agricultural delegation, led by Sun, is expected to sign four letters of intent with the U.S. to purchase $3.9 billion worth of soybeans, corn, wheat and beef. Taiwan is the fifth-largest overseas market for U.S. agricultural products. (Contact: Michael Schommer, 651/201-6629) PURCHASE OF U.S. WHEAT INCLUDES SOFT WHITE FROM OREGON The significance of an upcoming purchase of U.S. wheat by Taiwan is greater than the numbers may indicate. Still, Oregon stands to benefit from a letter of intent to be signed recently by a Taiwanese trade delegation to purchase 62 million bushels of wheat from the United States over the next two years, some of it the soft white class grown by Oregon wheat ranchers. "Taiwan has been a good and steady customer for many Oregon agricultural products, and we are pleased to see its continued interest in wheat," says Katy Coba, director of the Oregon Department of Agriculture. "Our wheat growers have had some tough times in recent years, but it appears their fortunes are turning around. This purchase agreement reflects the improved outlook." On Friday, June 15, representatives of the Taiwan Flour Millers Association will meet with Governor Kulongoski at the State Capitol for the signing of a ceremonial letter of intent that reflects the agreement between Taiwan and U.S. Wheat Associates to purchase $425 million of wheat in 2008 and 2009. It is estimated that about $17.4 million of the purchase will be for Oregon wheat. Oregon is the last stop in a tour of wheat producing states that stand to gain from the purchase that includes Idaho, Montana, and South Dakota. The Oregon signing ceremony will include the chairman of the Taiwan Flour Millers Association, ODA Director Coba, Oregon Wheat Commission Chair Earl Pryor, and others. As a Gilliam County wheat rancher himself, Pryor is happy with the developments. "Taiwan is a consistent and reliable cash customer that purchases 90 percent of its wheat requirements from the United States, including 4.4 million bushels of soft white wheat annually," says Pryor. "We are honored to receive the Taiwan delegation because of our long term relationship, built upon trust and mutual respect, and their continuing open dialogue that allows our wheat breeding team to maximize desirable traits in Taiwanese wheat purchases." As a customer of high quality wheat, Taiwan millers have been willing to pay for that quality and specify exactly what they want. Wheat breeding programs have developed those specific traits for the soft white wheat that Oregon grows, as well as other wheat classes. Soft white wheat is used in Taiwan to make flour for steamed buns and as an ingredient in various noodles. Oregon wheat producers average 50 million bushels of production each year. Although Oregon produces some hard red varieties, the majority of production is soft white wheat and is grown in seven counties of north central and northeast Oregon, including Umatilla, Morrow, Sherman, Wasco, Malheur, Gilliam, and Union counties. In 2006, wheat ranked sixth of all Oregon commodities with a production value of more than $192 million. That production value reached a high of $313 million in 1980 but dropped in recent years to as low as $97 million in 1999 when prices fell below three dollars a bushel. Prices and yields have fluctuated since but wheat remains a major economic driver in Oregon. The export market is critical to Oregon wheat growers. Last year, Oregon exported about 92 percent of the wheat crop. Japan, South Korea, the Philippines, and Egypt are major customers of Oregon wheat, purchasing about 500,000 metric tons each. At about 150,000 metric tons of Oregon wheat purchased annually, Taiwan is not at the same level but is considered an important export market. "This letter of intent announces a fairly significant purchase for us," says Tana Simpson, administrator of the Oregon Wheat Commission. "Some of our export markets are large swing customers. So having a consistent cash customer purchasing more than four million bushes a year of soft white wheat is important to us." The origin of exporting Oregon agricultural commodities can be traced to the wheat industry. That was also the beginning of Oregon's commodity commission system. In 1947, the Oregon Wheat Growers League realized it needed to find a new market for soft white wheat and created the Oregon Wheat Commission . With its eyes set on Japan, the commission opened a trade office in Tokyo shortly after World War II. Opening the Asian market to the kind of wheat grown in Oregon, Washington, and Idaho was a start. But the commission understood that research held the key to staying one step ahead of the customer. Researchers and wheat breeders began to enhance the quality of Pacific Northwest wheat to meet the needs of overseas buyers. The research has put Oregon State University on the world map when it comes to wheat breeding. OSU developed a variety of wheat- Stephens- that has become the largest variety grown in the Northwest in terms of acreage planted. Commission dollars have also combined with congressional funding to create the Wheat Marketing Center at Albers Mill in Portland, which contains a lab to test wheat products for the Asian palate. The history of Oregon wheat exports provides a backdrop to this week's signing of the letter of intent. It's the latest bit of good news for an industry that is overdue. Better wheat prices have combined with a general shortage of worldwide production to create a more favorable market for Pacific Northwest growers. Oregon is an important enough contributor to the overall U.S. wheat purchase by Taiwan to merit a spot on the delegation's travel itinerary. Members of the Taiwan Flour Millers Association want to see Oregon, meet its governor, and pay respects to the wheat growers who will be a part of the transaction. "It's very significant that the delegation is stopping in Oregon," says Gary Roth, administrator of ODA's Agricultural Development and Marketing Division , which has helped make arrangements for the Salem signing ceremony. "I think it pays tribute to the work done by our wheat industry, which has been very active and on the forefront in creating and maintaining export markets." Although the purchase agreement is for two years, there is every expectation that Taiwan will continue coming back for more. (Contact: Tana Simpson, 503/229-6665) |