Wednesday, February 15

Title: Energy and Economic Growth for Rural America

Wednesday, February 29

Title: Strengthening Conservation through the 2012 Farm Bill

Wednesday, March 14

Title: Healthy Food Initiatives, Local Production and Nutrition

Wednesday, March 21

Title: Risk Management and Commodities in the 2012 Farm Bill

“We would like to see the whole thing just completely be removed because it’s going to prohibit our ability to train the next generation to come back home and take over the family farm.”

While there were indications that the parental exemption would be removed from the proposed rule – Chinn tells Brownfield they’ve seen nothing in writing from the Labor Department and that’s what’s making the ag industry nervous.

“Even if they take the parental exemption out it still leaves the question, can grandkids still go work on grandma and grandpa’s farm – or, can kids go work on their aunt and uncle’s farm,” says Chinn, “And that was some questions we brought up during the hearing last week but we never did get an answer on those questions.”

Chinn says the proposed rule runs the risk of keeping her kids from working on a relative’s farm, “Our son collects eggs from grandma’s hens and she pays him for that. He helps her clean up the hen house,” Chinn says, “Our daughter helps grandma breed sows up in the hog barn. She also does some power washing of alley ways and stuff for grandma, as well, for payment. So, these are all things under the new proposed regulations our children would no longer be allowed to do.”

Chinn says the rule would also prevent the use of hand or foot-powered machinery by children under 16 to include garden hoses, flash lights and similar things used on the farm. She says children need safety on the farm but they also need hands-on experience in order to learn.

AUDIO: Chris Chinn (4:00 mp3)

The average projection for 2011/12 corn ending stocks, via Dow Jones Newswires, is 797 million bushels, compared to the 846 million in December’s report thanks to good export demand. Soybeans are pegged at 269 million bushels, compared to 275 million a month ago, and wheat is seen at 868 million bushels, compared to 868 million last month. A year ago at this time, 2010/11 corn ending stocks were 1.128 billion bushels, soybeans totaled 215 million, and wheat ending stocks were 862 million bushels.

Also on Thursday, USDA will be updating the global balance sheet with South American production numbers hotly anticipated following extremely warm and dry weather during critical growth periods. Argentina’s corn crop is estimated at 22.5 million tons and soybeans are placed at 48.5 million tons, while Brazil’s corn is pegged at 59.8 million tons and soybeans are seen at 71.7 million tons. Last month, USDA put Argentina’s corn crop at 26.0 million tons and soybeans at 50.5 million, while Brazil’s corn crop was estimated at 61.0 million and soybeans were projected at 74.0 million tons.

The numbers are out Thursday, February 9 at 7:30 AM Central.

The proposed rule requires all cattle operations meeting the regulatory definition of a CAFO to report a long list of information about their operations to EPA, including the exact location of the production area.

NCBA deputy environmental counsel Ashley Lyon says the rule is not only a serious overreach of EPA’s authority under the Clean Water Act, it could also put the nation’s food system at risk.

“This information will be uploaded to EPA’s web site on an easily-searchable database—and that is accessible across the globe,” Lyon says.

Which raises numerous concerns, Lyon says. “One of which is harassment by environmentalist extremist groups here in the states—as well as terrorist  attacks from foreign and domestic entities.”

A representative of EPA who attended NCBA’s annual meeting in Nashville last week—Ellen Gilinksy—told the group that the agency understands the industry’s biosecurity and privacy concerns, and is open to ideas on how to improve the proposal. 

Lyon said she was encouraged by the comments made by Gilinsky.  But she says the way the reporting rule was developed by EPA—through a consent decree or settlement agreement with environmental groups—is also a big concern.

“We call those sweetheart agreements that require the agency then to promulgate rules that they may not even have the authority to do under the law,” she says.

“That’s obviously extremely concerning and we only see the agency engaging in more of those agreements and promulgating more rules—where the industry is not at the table—and that are going to be economically devastating to the cattle industry and agriculture as a whole.”

According to the EPA, the final CAFO reporting rule will be released in mid-July.

AUDIO: Ashley Lyon (3:21 MP3)

Wheat came out at 14.505 million bushels, down 4.291 million from the week ending January 26 and 16.113 million lower than the week ending February 3, 2011. At this point in the 2011/12 marketing year, wheat inspections are 671.398 million bushels, compared to 786.771 million in 2010/11.

Corn was reported at 39.389 million bushels, up 16.555 million from the previous week and 10.188 million higher than this time last year. So far this marketing year, corn inspections are 710.614 million bushels, compared to 712.063 million a year ago.

Soybeans were pegged at 37.292 million bushels, 4.464 million less than the week before and 7.217 million below a year ago. For the marketing year to date, soybean inspections are 755.595 million bushels, compared to 1.024 billion last year.

Sorghum inspections totaled 573,000 bushels. That’s an increase of 284,000 bushels from the prior week but a decrease of 592,000 from last year. 2011/12 sorghum inspections are 32.816 million bushels, compared to 60.616 million in 2010/11.

Asked by reporters whether the USDA will insist on mandatory funding for Value Added Producer Grants, Merrigan said they know the program works – but Congress writes the farm bill. “I’m too poor to put any money down on the table what’s happening this farm bill season. I’m as confused as can be.”

Merrigan says the Value Added grants DO help producers – and will be featured in the USDA’s report about the Know Your Farmer – Know Your Food Initiative as mandated by the Fiscal Year 2012 appropriations bill, “Generally, we think anything that helps farmers improve their bottom line, whether they’re doing local, whether they’re doing export markets – that’s the business of USDA and we’re going to stay in that business.”

Merrigan said Living Water Farms, in Strawn, Illinois, is one of the grant recipients – using the funds to expand their hydroponically-grown greens for specialty markets – their current customers include Illinois grocery stores, restaurants in Chicago and St. Louis and a “Midwest college food service program.”

AUDIO: Deputy Secretary Kathleen Merrigan, Conference Call (18:00 mp3)

USDA – Value-Added Producer Grants

The group stated: “American agriculture stands out as one of the few sectors of the economy that has, throughout the economic downturn, still contributed positively to our nation’s balance of trade while helping to create jobs and put this country back on its economic feet.” They stressed the need to have farm policy in place when the current farm bill expires. “If Washington provides America’s farmers and ranchers with some certainty, we can continue to help lead our nation’s economic recovery.”

The groups involved are:

• American Farm Bureau Federation
• American Soybean Association
• National Association of Wheat Growers
• National Barley Growers Association
• National Corn Growers Association
• National Cotton Council
• National Farmers Union
• National Sorghum Producers
• National Sunflower Association
• Southern Peanut Farmers Federation
• US Canola Association
• USA Dry Pea & Lentil Council
• USA Rice Federation

Wheat came out at 518,900 tons (19.1 million bushels), down 14% from the week ending January 19 but up 22% from the four week average. Unknown destinations bought 254,700 tons and Nigeria picked up 105,700 tons. At this point in the 2011/12 marketing year, wheat sales are 796.0 million bushels, compared to 1.053 billion in 2010/11. Sales of 35,200 tons (1.3 million bushels) for 2012/13 delivery were to Mexico (28,400 tons) and unknown destinations (6,800 tons).

Corn was reported at 912,000 tons (35.9 million bushels), with sales to Mexico (442,200 tons), Japan (306,500 tons), and a handful of others partially offset by cancellations ranging from 7,500 to 23,000 tons. So far this marketing year, corn sales are 1.087 billion bushels, compared to 1.151 billion this time last year. Sales of 63,000 tons (2.5 million bushels) for 2012/13 delivery were to China (50,000 tons) and Mexico (16,000 tons); Japan did cancel on 3,100 tons of new crop sales.

Soybeans were pegged at 308,400 tons (11.3 million bushels), were 34% less than the previous week and 43% lower than the four week average. China bought 246,100 tons and the Netherlands purchased 139,600 tons while unknown destinations canceled on 208,100 tons; some of that was switched to other destinations. For the marketing year to date, soybean sales are 967.0 million bushels, compared to 1.410 billion a year ago. Sales of 60,000 tons (2.2 million bushels) for 2012/13 delivery were to unknown destinations.

Soybean meal was reported at 74,700 tons, 40% under both the week before and the four week average. Venezuela picked up 43,500 tons and Guatemala canceled on 14,800 tons. Cumulative sales for the current marketing year are 4,560,300 tons, compared to 5,186,800 tons last year.

Soybean oil came out at 6,700 tons as sales to Algeria (4,000 tons) and Morocco (3,000 tons) were partially offset by a cancellation from Canada (400 tons). 2011/12 soybean oil sales are 199,400 tons, compared to 1,045,500 tons in 2010/11.

Net beef sales totaled 4,100 tons. The reported buyers were Mexico (1,300 tons), Canada (1,200 tons), South Korea (700 tons), Russia (400 tons), and Japan (200 tons). Vietnam canceled on 200 tons.

Farm operators in those counties, who meet eligibility requirements have eight months from the date of the declaration (Jan. 27, 2012) to apply for loans to help cover part of their actual losses. Information is available at local Farm Service Agency (FSA) offices.

In a conference call with reporters on Wednesday, February 1, officials with the Department of Labor explained their decision to re-propose the ‘parental exemption’ portion of the child labor in agriculture rule which has been in existence for 40 years.

“Corporate structures of farms and ownership of farms and how farms are operated has changed,” said a DOL official. “So consequently we are wanting to take advantage of all of these really amazing and important comments that we’ve received to ensure that what we do put out as final, is now informed by this really important comment process.”

The Department of Labor’s re-propose portion of the rule is expected to be published sometime this summer at which time public comments will be accepted. In the meantime the DOL will continue to review public comments already received on the remaining portions of the proposed rule.

The agency official, in the statement read to reporters, said that until the revised exemption is final, the DOL will revert to its earlier enforcement practice.

”The parental exemption to situations in which the parent or person standing in the place of a parent is a part owner of the farm, a partner in a partnership or an officer of a corporation that owns the farm if the ownership interest in the partnership or corporation is substantial. This approach is consistent with guidance the Wage and Hour Division has provided to the public on its website for the past several years.”

Audio: Department of Labor Statement (2:25 MP3)