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July 4, 2008

 

NATIONAL AFFAIRS:

Weather Damaged Crop Costs Top $8 Billion - Crops have incurred more than $8 billion in estimated weather-related damage thus far in 2008, according to the American Farm Bureau Federation's June Market Update. Iowa accounts for approximately half the damage. However, there are notable problems in at least a dozen other states ranging from the excessive wetness and flooding in Illinois to drought in California. "Wet weather and flooding create issues, as farmers are unable to plant their crops," said Terry Francl, AFBF senior economist. "The crops they do plant do not sprout and grow, resulting in fewer acres harvested. Additionally, the difficult growing conditions greatly reduce the yield of the crop that is harvested." He adds that expected Iowa corn yields are reduced 16 percent for this year, and 1.5 million to 2 million acres of corn and soybeans in Iowa that farmers intended to plant this spring will likely remain fallow. This results in a $4 billion shot to Iowa's crops. Other states taking a hit from excessive wetness and flooding: Illinois, $1.3 billion; Missouri, $900 million; Indiana, $500 million; Nebraska $500 million; and an additional $1 billion in remaining wet states. Some areas are experiencing the opposite problem. Drought is taking a toll on several western states and a few states in the southeast. Northern California battled the driest spring in its history. As a whole, the state suffered $500 million in estimated damage. This equals the estimated drought-related damage in all other states combined. Nationally, the average corn yield is likely to decline some eight to 10 bushels per acre from the 2008 trend line, mostly due to inclement weather. The national average soybean yield is also likely to be down one to two bushels per acre from the current Agriculture Department projection of 42 bushels per acre. These damage estimates relate only to crop production as of the last week of June. This means livestock, infrastructure, building and equipment losses aren't considered. Additionally, the estimate assumes normal weather conditions will ensue for the remainder of the growing season. Varying weather conditions later in the season could cause the estimate to grow or contract.

 

Food Safety/Leafy Green Concept Paper Released - Last fall, USDA's Agricultural Marketing Service (AMS) published an advanced notice of proposed rulemaking on a leafy green marketing agreement. If established, the marketing program would address quality maintenance and food safety in the handling of fresh and fresh-cut leafy green vegetables. The full notice from the Oct. 4, 2007, Federal Register can be viewed by clicking here. Ohio Farm Bureau filed comments on this notice. Based on comments received, USDA has provided industry with a Leafy Green Marketing Agreement (LGMA) concept paper. OFBF is reviewing the document and will prepare additional comments. Farm Bureau supports efforts to develop food safety guidelines, based on sound science, to help prevent microbial contamination of fresh produce. Farm Bureau policy states that such guidelines must be flexible to accommodate the diversity in geography and production practices within the fresh produce industry. Furthermore, they must be practical and consistent with existing state and federal regulations.

 

rBST Debates Continues - American Farm Bureau Federation recently sent a letter to the Food and Drug Administration (FDA) regarding guidance it issued in 1994 pertaining to labeling of milk and milk products from cows not treated with rBST. Currently, all of the top U.S. grocery store chains restrict the sale of milk from cows supplemented with rBST. This milk typically sells at a premium compared to milk that is not labeled. As a result, AFBF told FDA, producers who sell to markets restricting the use of rBST are seeing lower production and lower profits during a time of record-high feed and fuel prices.

 

Farm Bureau supports the science-based labeling policy established by FDA, which states that special labeling is not required unless a food is significantly different from its traditional counterpart, or where a specific constituent is altered; voluntary labeling must use statements that are truthful and not misleading; and voluntary labeling of identity-preserved agricultural and food products should be based on a clear and factual certification process.

 

Farmers and ranchers have suffered great economic consequences from past labeling mishaps that have claimed an "absence" of a substance with absolutely no science on which to base a food safety claim. Farm Bureau believes that labels should not be required to contain information on production practices that do not affect the nutrition or safety of the product.

 

Sign-Up Open for Direct and Counter-Cyclical Programs - USDA announced that sign-up is now open for 2008 direct payment and counter-cyclical programs. Farmers should visit their FSA offices for details. When producers sign-up for the direct payment program, they will be eligible immediately for a 22 percent advanced direct payment. USDA expects these advanced checks to begin going out as early as this month. Rules for these programs are very similar to rules last year, so farmers should not expect dramatic changes. USDA has stated that the adjusted gross income compliance certification of record will carry forward this year. Adjusted gross income limit changes and the new counter-cyclical revenue program, ACRE, do not take effect until next year.

 

STATE AFFAIRS:

Two Groups, Two Challenges to Dairy Labeling Rule  - Two groups filed separate lawsuits June 30 against the state of Ohio in federal district court challenging the Ohio Department of Agriculture's (ODA) labeling rule on dairy products, saying it restricts speech rights and places an undue burden on dairy companies. The International Dairy Foods Association (IDFA) and Organic Trade Association (OTA) both filed separate federal actions claiming that the new rules, which went into effect in May 2008, that specify what claims can be made about the use of hormones on dairy labels are an unconstitutional restriction of free speech, go above and beyond federal mandates, and violate the interstate commerce clause of the Constitution. The Court has since consolidated both cases. Both IDFA and OTA testified in opposition to the rules during public hearings held by ODA. OFBF testified in support of the proposed rules as Farm Bureau policy speaks very clearly to the use of misleading, inaccurate and/or false labeling:

We oppose all use of false and misleading labels, promotional materials or other advertising for food products.

We support the science-based labeling policies of FDA, including voluntary labeling using statements that are truthful and not misleading.

 

We support:

(1) The science-based labeling policies of FDA, including:

(a) no special labeling requirement unless a food is significantly different from its traditional counterpart, or where a specific constituent is altered (e.g., nutritionally or when affecting allergenicity); and

(b) voluntary labeling using statements that are truthful and not misleading.

 

Governor Signs Great Lakes Compact - Gov. Ted Strickland finally got his opportunity to sign the highly debated HB 416, which ratifies the Great Lakes-St. Lawrence River Basin Water Resource Compact. HB 416 passed the House back in February by a vote of 88 - 3. However, the Senate refused to support the legislation until the House passed SJR 8 with the necessary three-fifths majority required for it to appear on the ballot in November.

 

Sponsored by Sen. Tim Grendell, SJR 8 is a proposed constitutional amendment to ensure private water would not be considered "public trust" under the Great Lakes Compact. Originally, the House Democratic caucus was not supportive of the measure. However, the resolution was amended to limit its focus, and it passed the House by a vote of 90 - 3.

 

Ohio Updates Fence Law - Ohio's 103-year-old fence law was finally updated last month when Gov. Ted Strickland signed HB 323. Rep. Bob Gibbs sponsored the bill, which requires a landowner, who wants to construct a fence where none existed, to be held responsible for the cost of building and maintaining the fence. The bill also creates a cost sharing mechanism for neighbors, allows neighbors to agree that no fence is needed, prohibits the removal of a fence without notification and establishes liability for damages caused by trespassing livestock. In addition, a neighbor would reimburse the fence owner if the neighbor uses the fence to maintain livestock from 50 percent of the cost of building and maintaining said fence to "one-thirtieth of the total cost multiplied by the number of years" the fence had been in place.

 

Director Boggs to Visit 28 County Fairs - Ohio Department of Agriculture Director Robert Boggs will travel to 28 county fairs this year, in an effort to get the state's agricultural message out to Ohioans. Boggs hit about 30 fairs last year, and is thus on about a three-year schedule to attend all 88 county fairs. The director is expected to talk with local fairgoers about their food and agriculture concerns, food safety, biofuels and bioproducts, the Clean Ohio initiative, as well as some core policy issues like line fence requirements.

 

Ohio Farm Bureau Organization Directors will be leading the effort again this year, where possible, to arrange fair stops for the director and his staff. To see the director's schedule click here.

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 U.S. EPA for its review and consideration. To date, U.S. 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, U.S. EPA

·         U.S. 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. 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 U.S. House of Representatives office. Deliveries will be made to U.S. 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