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June 20, 2008

 

NATIONAL AFFAIRS:

Congress Enacts Farm Bill -- All of It - Into Law - The Senate voted last week to override President Bush's second veto of the farm bill -- writing the final chapter on the prolonged congressional process and enacting the entire $290 billion, five-year measure into law. The 80-14 vote means the entire bill is now law. Most of the farm bill was enacted in May, when the House and Senate had their first votes to override Bush's previous veto of the legislation. But the 34-page trade title was missing from the parchment copy sent to the White House, so that section had not yet become law. President Bush's second veto of the bill last week was met with swift action on Capitol Hill. Both chambers had more than the two-thirds majority needed to outweigh the White House. The House voted 317-109 in favor of the bill. Last week's votes end more than two years of work in Congress on the law. The five-year farm bill continues most crop programs, increases funding for working-lands conservation programs and has incentives intended to spur cellulosic ethanol production. More than half of farm bill funding goes to food stamps and other nutrition programs. "I can't think of any other piece of major legislation that has been voted on as much as that one," Rep. Bob Etheridge (D-N.C.), a member of the House Agriculture Committee, said yesterday. "It was vetoed twice and overridden twice. That ought to be enough."

 

Energy Costs Main Culprit In Recent Food Price Increases - Most of the recent increase in food costs has nothing to do with biofuels, Bob Young, the American Farm Bureau Federation's chief economist, told reporters and farm leaders. Estimates as to how much of the retail food price increase can be attributed to biofuels vary from 3 percent to 30 percent, according to Young. "We need to have a long conversation about that other 70 percent to 97 percent," Young said. Young said consumers need look no further than their local supermarket. Items that have no connection at all to corn or soybeans – grapes, for example – have also increased in price. And even with a corn or corn-related product such as corn flakes, the connection to ethanol is tangential at best, he added, noting that there are only a few cents worth of corn in each box of cereal. "The box costs more than the corn," he said. Boneless, skinless chicken breasts contain about 6.5 cents worth of corn.

 

Farm Bureau, and Other Ag Groups Urge Food Price Investigation - A broad coalition of agricultural interests including the American Farm Bureau Federation called on Congress to investigate all the factors driving rising food prices. Critics, citing biofuel production and higher commodity markets, have wrongly blamed record-high food prices on farmers, the groups contend. In a letter to Congress, the groups recognize the affect higher food prices are having on consumers but stress the importance of studying the larger picture. With farmers receiving an average of just 20 cents of every food dollar consumers spend, other factors, such as labor and energy costs, financial speculation, increased demand, weather production losses, the weak dollar and even excess profiteering, have a more significant impact on food prices, the groups wrote. In addition to AFBF, the National Farmers Union, National Corn Growers Association, American Soybean Association, National Sorghum Growers Association and National Association of Wheat Growers signed the coalition letter.

 

Concerns Mount as Midwest Remains Flooded - The 2008 flood in Iowa is worse than the one in 1993, which was considered a "500-year flood," according to Iowa Gov. Chet Culver, who updated reporters about the situation recently. Iowa cropland remains flooded and one farmer died when he went to check on flood damage to his property. Mandatory and voluntary evacuation orders are in place in several Iowa counties, numerous highways around the state are closed, and more than a dozen shelters have been opened for residents fleeing rising waters. Similar conditions and crop damage are reported around the Midwest, as widespread flooding continues in several states including parts of Illinois, Missouri, Nebraska, Indiana and Wisconsin. The U.S. Army Corps of Engineers closed a 216-mile stretch of the Mississippi River (from Illinois City, Ill., to Winfield, Mo.) to barge traffic. The closure could last up to two weeks. The halting of barge traffic comes at a time of year when everything from corn to fertilizer, steel, coal and cement typically makes its way down the river. Cargill Meat Solutions and Tyson Foods Inc. have stopped slaughtering hogs at plants in flooded regions of the Midwest where more rain is expected.

 

Crop Price Volatility Worries Growers - A New York Times article published this week explores the issue of crop price volatility and what it means for growers. According to the Times, interest in the issue is so great that an overflow crowd attended the CFTC forum on the stability of agricultural markets, held this week. Today's crop prices are favorable for many farmers. But the recent extreme volatility of the markets means growers must spend more time than ever marketing the fruits of their labors. Wild swings in formerly stable cash and futures markets for crops are "turning already-busy farmers into reluctant day traders and part-time lobbyists," according to the Times. In March, traders expected wheat prices to swing up or down by more than 72 percent in the coming year – three times the average volatility for that month and the highest level since at least 1980. The price swing expected in March for soybeans was three times the historical monthly average, while the expected volatility in corn prices was twice its monthly average.  Bob Young, AFBF's chief economist, was quoted in the Times article regarding his perspective. "I tell people, 'You are not going to market the 2009 crop the way you marketed the 2007 crop. You may never market grain that way again,'" he said.

 

OCS Amendment Increases Domestic Energy Production - An amendment to the Interior Department appropriations bill up for consideration by the House could increase domestic production of oil and natural gas offshore. The Outer Continental Shelf (OCS) amendment would lift the current congressional moratorium on energy production between 50 miles and 200 miles offshore. Approval of the amendment is important, as farmers are facing historically high energy costs. The high price of natural gas is a particular concern because it factors into fertilizer, irrigation and heating costs. "For a number of years, federal energy policy has encouraged use of natural gas, particularly as a fuel for generating electricity, without making any effort to increase domestic supplies," said Anne Steckel, AFBF energy policy specialist. "Unless we work aggressively to promote exploration and development of domestic natural gas reserves, farmers and ranchers face continuing high fertilizer and energy costs." Offshore oil drilling platforms are in place off the coast of Florida, operated by Cuba (on behalf of the Chinese government), Canada, Brazil and Spain.  Farm Bureau supports passage of the OCS amendment by the House Interior, Environment and Related Agencies Appropriations Committee.

 

Chinese Commit to Purchase $4.5 Billion in U.S. Soybeans - A delegation of Chinese soybean buyers signed contracts to purchase $4.5 billion worth of U.S. soybeans during a St. Louis trade ceremony last Monday. This accounts for nearly 10 percent of U.S. soybean production. In a joint press release the United Soybean Board, United States Soybean Export Council and the American Soybean Association expressed excitement over the deal and credited the soybean checkoff for developing a strong export market for soybeans, in which China is the number one customer.

 

STATE AFFAIRS:

Strickland Signs Small Business Paperwork Waiver Measure - Gov. Ted Strickland signed HB 285, sponsored by Rep. Ross McGregor, last week. The new law grants one free pass to small businesses in the state that have committed a first-time paperwork violation. The paperwork violation waiver exempts the small business owner of fines or civil penalties. The waiver applies to a number of state agencies including the Ohio Department of Natural Resources and Environmental Protection Agency. The bill also stipulates that fines and penalties remain intact if the violation could cause serious harm or involve a criminal offense.

 

Gypsy Moth Aerial Treatments Underway in Parts of Ohio - The Ohio Department of Agriculture is beginning aerial treatments designed to disrupt the mating of the gypsy moth in multiple Ohio counties.

The following areas will be treated starting between June 19 and June 22:

·     Allen County - Total treatment of 1,770 acres in the Spencerville A&B block.

·      Clark County - Total treatment of 358 acres in the Clifton North block.

·     Gallia County - Total treatment of 264 acres in the Gallipolis block.

·     Greene County - Total treatment of 59 acres in the Cedarville block and 141 acres in the New Jasper block.

·     Hardin County - Total treatment of 943 acres in the Ada A&B block.

·     Highland County - Total treatment of 507 acres in the Greenfield block.

·     Jackson County - Total treatment of 1,078 acres in the Jackson block and 2,292 acres in the Petersburg block.

·     Madison County - Total treatment of 117 acres in the West Jefferson block.

·     Montgomery County - Total treatment of 790 acres in the Kettering block.

·     Paulding County - Total treatment of 1,009 acres in the Grover Hill.

·     Ross County - Total treatment of 51,162 acres in the Richmond Dale block and 741 acres in the Chillicothe West block.

·     Van Wert County - Total treatment of 1,014 acres in the Van Wert block.

In all counties receiving treatments, the department will use a single application of the product Disrupt II, applied via low flying aircraft just above the treetops. The treatment involves the placement of tiny plastic flakes infused with the female gypsy moth pheromone into the tree canopy. Six grams, or approximately one-fourth cup, of the product will be used per acre.

All treatments should be completed within three to four days, weather permitting.

Disrupt II does not kill the moth but disrupts the mating process by confusing the male as it searches for a female to mate with, thus reducing the gypsy moth population. Disrupt II is not harmful to birds, plants, pets or humans. More information including a fact sheet, label and material safety data sheet are available by visiting www.ohioagriculture.gov and clicking on "gypsy moth updates."

Pre-recorded daily updates on planned treatment blocks will be available to citizens by calling (614) 387-0907 or (800) 282-1955 ext. 37, after 5 p.m. Maps of application areas may also be viewed on the department's Web site.

The gypsy moth is a non-native, invasive species that advanced into Ohio from Pennsylvania and Michigan over the last several years. In its caterpillar stage, it feeds on the leaves of more than 300 different trees and shrubs and is especially fond of oak. A healthy tree can usually withstand only two years of defoliation before it is permanently damaged or dies. To date, 49 of Ohio's 88 counties have established gypsy moth populations.

Questionable Future for Southern Ohio Agricultural Assistance Agency Without Tobacco Funds - The Southern Ohio Agricultural & Community Development Foundation (SOACF), the agency charged with replacing the tobacco production in southern Ohio, is nearing the end of its Master Settlement Agreement Funding. Without an alternative funding source identified, doubts are beginning to surface as to the future of the foundation, said the Donald Branson, executive director.

The foundation lost its only source of funding when Ohio securitized its remaining payments from the 1990's settlement with tobacco companies. The original spending plan for the state's MSA payments envisioned funding the program through 2014.

The biennial budget bill, HB 119, allocated the last tobacco money for the foundation in fiscal year 2008, but lawmakers appropriated roughly $7 million in general revenue funds for FY 2009.

Mr. Branson said he anticipates working with the administration and lawmakers to identify new revenue sources for the next biennial budget.

November 2008 Ballot Issues - Last week the Ohio Farm Bureau Federation Board of Trustees discussed the issues likely to appear on the ballot this fall. Sean Logan, director of the Ohio Department of Natural Resources, was among the guest speakers. Director Logan spoke to the board regarding the Clean Ohio ballot issues.

The first three issues below will definitely appear on Ohio's November ballot because they were passed by the Legislature. The remaining two issues will likely gain approval to be on the ballot, but signatures must be finalized and certified.

 

HJR 3 adjusts pre-election deadlines - HJR 3 adjusts the deadlines for submitting initiatives and referenda to voters for their consideration. The proposal, offered jointly by Reps. Dan Stewart (D-Columbus) and Jon Peterson (R-Delaware), responds to recent situations in which the state has spent hundreds of thousands of dollars to advertise proposed ballot issues that never secured enough valid signatures to actually go before voters.

 

HJR 5 Reauthorizes Clean Ohio Bond Program- (HJR 5) Authorizes the state to borrow $400 million for environmental conservation, farmland preservation, and land revitalization purposes. (HJR 5) . The program was first passed in 2000 and would be reauthorized indefinitely under HJR 5.

 

SJR 8 (Grendell) Great Lakes Compact- introduced as a companion bill to the Great Lakes Compact bill, HB 476 (Dolan), this measure would specify that groundwater and surface water located on private property is NOT "public" waterways or property under the Ohio constitution. Essentially it protects landowners from an Ohio judge claiming that the water on their property is subject to the Great Lakes Compact.

 

Paid Sick Leave Requirement- The Healthy Families Act is a proposed initiative petition to enact Chapter 4114 of the Revised Code to require employers to provide a minimum amount of paid sick leave to employees in Ohio. Specifically, the proposal seeks to require Ohio employers with 25 or more employees to pay full-time employees at least 7 days of paid sick leave each year and part-time employees a pro-rated amount of leave to care for themselves and their families' health needs.

 

Clinton County Casino- to authorize a privately owned casino in Ohio. The petition would allow only one casino in the state to be located at State Route 73 and Interstate 71 in Clinton County. The petition requires that the casino include a hotel and other resort amenities with a $600 million minimum investment by casino developers. Under the proposal, the casino operator must pay a gross receipts tax that would be distributed among the eighty-eight Ohio counties.

 

Backers of the proposal must now gather at least 402,275 valid signatures across the state. Signatures must also be obtained in sufficient numbers from registered voters residing in at least forty-four of Ohio's counties. All signatures must be submitted to the Ohio Secretary of State no later than ninety days before the election, or by August 6, 2008. If a sufficient number of valid signatures are found, the proposal will appear on the ballot in November 2008.

 

ACTION REQUEST:

 

Approval of Ohio Department of Agriculture's (ODA) Federal Livestock Permitting Program

 

Background:

In January 2007, ODA submitted its federal livestock permitting program (officially known as the National Pollution Discharge Elimination System, or NPDES, program) application to US EPA for its review and consideration. To date, US EPA has yet to complete its review process and approve the application, even though it promised Ohio's livestock industry stakeholders that it would do so in a timely manner.

 

Action:

Over the past several months, OFBF has initiated several actions on a variety of fronts to speed-up this process. As a part of OFBF's strategy to implement its policy supporting the transferring of NPDES delegation authority for large livestock farms from Ohio EPA to ODA as approved by the Ohio General Assembly and supported by Governor Strickland's administration, we need members to sign postcards that will be delivered by OFBF staff to the following in Washington, D. C.:

·         Steve Johnson, Administrator, US EPA

·         US Senators Voinovich and Brown

·         Your respective member of the U. S. House of Representatives

For this process to be effective, OFBF needs to initiate 5,000 to 10,000 total contacts. The postcards are available at your county Farm Bureau office starting Wednesday, June 18. Please contact your respective county Farm Bureau office to obtain these postcards.

 

MEMBERS ARE NOT TO MAIL THE POSTCARD. Please return your completed postcard to your county organization director.

 

Upon receiving the postcards, OFBF staff will copy them for each US Senate and US House of Representatives offices. Deliveries will be made to US EPA and Congressional offices the week of July 13 by OFBF president Bob Peterson.

 

Who to Contact for More Information:

Thank you for your efforts on this important issue for Ohio's livestock farmers that will also help implement the following OFBF policy:

OFBF policy/Environmental Protection 421:R07

We urge that members of Ohio's congressional delegation and the Governor work to ensure that NPDES delegation authority for large livestock farms is transferred from the Ohio EPA to the Ohio Department of Agriculture.

 

If you need additional information or have any questions, please feel free to contact the following:

Adam Sharp, (614) 306-7469 or asharp@ofbf.org

David White, (614) 246-8261 or dwhite@ofbf.org