FarmPolicy

Budget; Farm Bill and Policy Issues (Animal Agriculture); and Biofuels

Budget Issues

Byron Tau reported yesterday at Politico that, “The Obama administration’s 2013 budget will be delayed by one week, an administration official told POLITICO.

“The Office of Management and Budget will put out next year’s budget on February 13th, instead of February 6th. Under the law, the budget is supposed to be released on the first Monday in February, but the administration has released the budget late in the past.”

In response to the President’s decision to delay the release of his Fiscal Year 2013 budget, House Budget Committee Chairman Paul Ryan (R., Wis.) issued a statement yesterday, which noted in part that, “I am deeply disappointed in this President’s abdication of leadership when it comes to prioritizing Americans’ hard-earned tax dollars.  The decision to delay the release of his budget again could not come at a more precarious moment for our fiscal and economic future.  This will mark the third time in four years the President has missed his statutory requirement to present a budget on time, while trillion-dollar budget deficits continue to mount.  As the President announces another missed deadline, tomorrow marks the 1,000th day Senate Democrats have gone without any budget at all.”

On the Senate budget issue, a news release yesterday from Sen. John Thune (R., S.D.) stated that, “I hope President Obama will show some leadership during his State of the Union address tomorrow and demand that Senate Democrats pass a budget. The Democrat-led Senate, for 1,000 days, has failed to fulfill its most fundamental and basic responsibility to taxpayers, which is passing a budget. The president likes to talk about runaway federal spending and debt, but has been unwilling to call on his Democrat colleagues in the Senate to introduce and pass a budget. Until the Democrat-led Senate gets serious about balancing the government’s books by passing a budget, dangerous levels of debt will continue to be pushed onto future generations of Americans.”

And David Rogers reported yesterday at Politico that, “If 2011 seemed like one long Civil War epic for Congress, 2012 is more like ‘Ragtime,’ a tale of small, interlocking battles, blending history and novel in the run-up to the next Big Bang — the November elections and a very bloody lame-duck session in December.”

Mr. Rogers pointed out that, “[T]uesday’s [State of the Union] speech sets the stage for the Feb. 13 rollout of his budget for the fiscal year that begins Oct. 1, and that in turn will help frame the debate over how to cope with the great leftover business of 2011 — the failure of the deficit supercommittee and the threat of $1.2 trillion in automatic cuts early next year.

“The administration’s posture is to map a path forward — averting the automatic cuts by offering deficit reductions of more than $1.2 trillion to meet the demands of the Budget Control Act agreed to last year. But there’s no confidence of real agreement before the elections, and the Pentagon — which begins to roll out its numbers this week — already faces the prospect of faster-than-expected cuts as a result of adjustments in appropriations caps dictated by the debt limit deal.

“In this context, the payroll tax fight is a major first test, but what’s most striking is how little it has to do with the payroll tax itself.”  (Note that the Conference Committee on H.R. 3630: Temporary Payroll Tax Cut Continuation Act of 2011, meets today at 2:30).

Meanwhile, Amie Parnes reported yesterday at The Hill Online that, “Even though he promised to bridge partisanship before coming into office, President Obama ‘accepts that there is still a regrettable level of hyperpartisanship,’ White House spokesman Jay Carney said on Monday.”

“The spokesman said Obama believes there’s still an opportunity to work with Congress to accomplish ‘big things.’”

The Hill update noted that, “‘He rejects the idea that nothing can get done in an election year,’ Carney said, adding that the president will ‘very much call for action’ in tomorrow’s State of the Union address.”

With respect to the makeup of Congress, Alex Isenstadt reported yesterday at Politico that, “Republicans will hold the House next year and for the next decade, House Speaker John Boehner told POLITICO in an exclusive interview.

“Boehner dismissed Democratic claims that House control is up for grabs and argued that the once-in-a-decade redistricting process has made the GOP’s hold on the majority ironclad.”

The article added that, “Not everyone sees it that way. House Minority Leader Nancy Pelosi, speaking at a POLITICO Playbook breakfast last week, said Democrats are in a position to demolish the GOP’s 25-seat majority and could even gain as many as 35 seats.”

A variable in the composition of Congress is the number of lawmakers who will not seek re-election.  Carl Hulse reported yesterday at The Caucus Blog (New York Times) that, “The race for the exits is gaining steam in the United States House of Representatives.

“Thirty-two members so far have announced they have no intention of running again for their House seats in 2012, a considerable number at this point in the election cycle. And the total is almost certain to increase in coming weeks as the calendar forces lawmakers to make what can be an excruciatingly difficult decision about whether to give it another go in November.”

Farm Bill and Policy Issues (Animal Agriculture)

Jonathan Knutson reported yesterday at AgWeek Online that, “Federal crop insurance is essential to U.S. agriculture, but the insurance can be made simpler and easier to use, said Sen. Kent Conrad, D.N.D.

“Conrad proposes to combine the SURE and ACRE crop insurance programs into a single, streamlined program that protects against what he called ‘shallow losses.’”

The article added that, “The U.S. farm bill, which is the federal government’s main agricultural and food policy tool, is up for reauthorization, and many in ag fear that federal crop insurance could see big spending cuts.

“Conrad, Senate Budget Committee chairman and a frequent critic of the growing federal deficit, said that massive cuts to the federal crop program would be a big mistake. Federal crop insurance is a partnership of private companies, which deliver insurance products and services to farmers, and the federal government, which subsidizes the cost of the insurance premium.”

Also on the crop insurance issue, Marcia Zarley Taylor reported yesterday at the DTN Minding Ag’s Business Blog that, “Iowa farmers are giving their seal of approval to the new Yield Trend Adjustment option meant to correct for yield drag in federal crop insurance coverage, attendees at a DTN-Iowa Soybean Association ‘Marketing Through Mayhem’ course told me last week.

“‘It could be a game changer,’ say enthusiasts like Wayne Fredericks of Osage, Iowa. He expects to gain more revenue/acre coverage with an 85% Revenue Protection (RP) policy than the 90% GRIP (Group Revenue Income Protection) plan he’s carried since 2004. Better yet, switching to an 85% RP policy with enterprise coverage could save him about $50/acre compared to GRIP. (Last year he spent about $86/acre for GRIP, versus an estimated $35/acre for an 85% RP policy with enterprise coverage.)”

The update indicated that, “Beginning in 2012, the Risk Management Agency (RMA) has announced that corn and soybean growers in more than 800 counties in 14 states will be able to elect a Trend-Adjusted APH Yield Option insurance plan. In effect, it will adjust their APH yields based on their county’s historical yield trend. It plans to expand to other crops and geographies in subsequent years.”

In other news, National Council of Farmer Cooperatives President and CEO Chuck Conner was a guest on yesterday’s AgriTalk radio program with Mike Adams.

In part, their discussion (MP3- 4:50) focused on the Farm Bill, and Mr. Conner indicated that,  “I think there is a reasonable case to be made that extending the current Farm Bill for a year or so may be as difficult a task as actually passing the Farm Bill in general.  And I think that point gives some hope to those who would like to get the Farm Bill done this year.  Extension may be equally difficult; therefore, we ought to just focus our time and effort on getting the longer-term bill.

“But barring those circumstances developing, Congress is going to have to look at some kind of short-term extension through 2012.  We don’t know whether or not that would include an extension of direct payments going out for what in effect would be the 2013 crop.”

In separate policy developments, a news release yesterday from the United Egg Producers (UEP) and The Humane Society of the United States (HSUS) indicated that, “[HSUS] and [UEP] announced that they will make passage of H.R. 3798, the Egg Products Inspection Act Amendments of 2012, introduced today by Reps. Kurt Schrader, D-Ore., Jeff Denham, R-Calif., Elton Gallegly, R-Calif., and Sam Farr, D-Calif., a top legislative priority in Congress this year. All of these lawmakers are deeply committed to agriculture, and their federal legislation will lead to improvements in housing for 280 million hens involved in U.S. egg production, while providing a stable future for egg farmers.

“The bill will require egg producers to essentially double the space allotted per hen and make other important animal welfare improvements during a tiered phase-in period that allows farmers time to make the investments in better housing, with the assurance that all will face the same requirements by the end of the phase-in period. The legislation is strongly supported by UEP, HSUS, American Society for the Prevention of Cruelty to Animals (ASPCA) and other animal welfare groups, National Consumers League, the overwhelming majority of egg farmers, and state agricultural and egg producer groups, including the Association of California Egg Farmers, Colorado Egg Producers Association, Florida Poultry Association, Michigan Agri-Business Association, Michigan Allied Poultry Industries, North Carolina Egg Association and Ohio Egg Processors Association.

“In recent years, a growing number of states approved often-conflicting standards for egg production, frequently applying those standards to all eggs sold in the state—including those produced out-of-state. As a result, egg farmers have said they foresee an unworkable patchwork of conflicting state laws that will make interstate commerce in eggs difficult, if not impossible. Egg farmers see a federal standard as the only solution that both enhances hen welfare and ensures a sustainable future for America’s family- owned egg farms, according to the United Egg Producers, which represents egg farmers who produce 88 percent of the nation’s eggs.”  (Note, additional background on this issue can be found here).

The National Pork Producers Council, National Cattlemen’s Beef Association and The Humane Farming Association expressed criticism of the proposed legislation in separate news releases yesterday and today.

Also, a column posted recently at Feedstuffs Online by United Egg Producers president Gene Gregory stated that, “Andy Vance’s Jan. 2 viewpoint in Feedstuffs accuses the United Egg Producers (UEP) and egg farmers, through its joint legislative initiative with The Humane Society of the United States (HSUS), of putting the fox in charge of the henhouse.

“No, Mr. Vance, UEP and our members are trying to put the farmers in charge of the henhouse. UEP and HSUS have been adversaries as HSUS advocated for only cage-free production and UEP supported all forms of production and the right of consumers to make a choice in their egg purchases. We needed a way to resolve this conflict for not only egg farmers, but our customers and consumers as well.

“In this legislative proposal, HSUS has recognized that enriched colony cage egg production can be humane. HSUS has also agreed to end any organized state ballot initiatives on eggs, given a single national standard. This does not seem much like the conduct of an organization that wants to put animal agriculture out of business when meaningful discussions are another option.”

Mr. Gregory added that, “The UEP-HSUS legislative proposal will provide farmers with certainty of their future by which they can make the necessary housing and equipment investments without fear of being legislated out of business and it will create a level playing field. UEP has always been a leader in animal welfare standards and we believe the enriched colony cage will add further improvements.

“If approved by Congress, the legislation would override any contrary state laws, just as Congress had done in the past for crop insurance, commodity futures trading, and meat and poultry inspection. Consumers will continue to have a choice about which eggs they buy and their eggs will remain affordable and safe.”

And Andy Vance noted in a related column posted recently at Feedstuffs that, “Let’s face it, agriculture may be an industry and/or community defined by a common cause –- namely, producing food and other natural resources through stewardship of the land and its bounty –- but our hopes, needs and desires are as different as the products of our efforts. This is why we have both commodity-specific agricultural organizations like the National Cattlemen’s Beef Assn. and the National Corn Growers Assn. as well as general farm groups like the American Farm Bureau Federation and the National Farmers’ Union. This also explains why these various groups, though unified on any number of policy issues, often differ sharply on others.

“I’ve been thinking about this philosophical dichotomy since reading a letter to the editor of Feedstuffs from Gene Gregory, president of United Egg Producers, an organization I took to task in Jan. 2 column. My comments (Don’t Let the Fox Roam the Hen House) centered on my basic criticism of UEP’s landmark agreement with Wayne Pacelle’s Humane Society of the United States to lobby Congress for a federal standard on hen housing systems.

“Gregory’s rebuttal to my argument, appearing in this issue of Feedstuffs, is cogent, concise and well-reasoned. We opinion writers are known for reflection, though not necessarily for admitting another writer has made a point worth comment; Gregory’s letter is worth reading.”

Mr. Vance added that, “By controlling the agenda on hen housing, UEP hopes to keep HSUS in check long enough for two things to happen: one, for Congress to enact reasonable federal legislation that will supersede the mishmash of state regulations governing egg production while not putting farmers out of business; and two, for agriculture en masse to get its act together and figure out how to deal with the HSUS problem before Pacelle achieves his goal of running all animal agriculture enterprises out of business.”

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The AP reported yesterday a California law that would require euthanizing downed livestock at federally inspected slaughterhouses to keep the meat out of the nation’s food system.

“The high court ruled that the state’s 2009 state law was blocked from going into effect by federal law administered by the Agriculture Department’s Food Safety and Inspection Service.”

A National Farmers Union (NFU) news release from yesterday noted that, “[NFU] is pleased with the U.S. Supreme Court’s recent unanimous decision in National Meat Association v. Harris in which the court ruled that hogs suffering from fatigued hog syndrome are fit for slaughter once they have rested and recovered from their travel. NFU was a party on the victorious side of this lawsuit.

David G. Savage and Matt Stevens reported today at the Los Angeles Times Online that, “Now that the U.S. Supreme Court has struck down a California law against slaughtering pigs and other animals unable to walk, activists are pressing forward with efforts to get a tough federal measure passed.”

Biofuels

The AP reported yesterday that, “Sen. Ben Cardin is calling for an end to the preferential treatment of corn-based ethanol and responsible development of alternative energy sources.

“The Maryland Democrat made the comments Monday after participating by phone in a Delaware poultry summit held to discuss issues facing the industry that employs thousands on the Eastern Shore. Cardin called for a level playing field for the poultry industry that will help producers manage energy and feed costs.”

Keith Good

Posted by Keith Good • January, 24, 2012 • 5:19 am