Nutrition debate could take center stage

The full Senate begins deliberation on the Farm Bill next week. 

During a conference call with reporters on Thursday, Senate Ag Chair Debbie Stabenow said she’s anticipating a lot of emotional arguments on the nutrition title. 

But, the Chairwoman says she looks at the nutrition title like she does any other part of the farm bill.  “This is about providing help when it’s needed,” she says.  “Crop insurance is available for farmers when they have a disaster.  The cost goes up when there is a disaster and goes down during good years.  The same thing should be true for SNAP (the nutrition program).”

Late Wednesday evening the House passed their version of the Farm Bill which contains much larger cuts to the nutrition title. 

Looking ahead to a potential conference of the two bills, Stabenow says there are some major differences between the House and Senate versions – especially when it comes to the nutrition title.  “I absolutely reject the level of cuts and the way this is done in the House,” she says.  “They eliminate something called categorical eligibility, which we’ve now voted down two or three times on the Senate floor on a bipartisan basis.”

The Senate is scheduled to take up the Farm Bill on Monday.

Bean meal sales top estimates

USDA reports soybean meal export sales for the week ending May 9 were larger than expected, while corn, wheat, and soybeans were within pre-report estimates, and soybean oil saw a net reduction. Physical shipments of soybeans were more than what’s needed weekly to meet USDA projections for the 2012/13 marketing year but corn and wheat fell short of their respective marks.

Wheat came out at 125,000 tons (4.6 million bushels), down 48% from the week ending May 2 and 52% lower than the four week average. The Philippines bought 65,000 tons and Egypt picked up 63,000 tons but unknown destinations canceled on 255,100 tons. With less than a month left in the 2012/13 marketing year for wheat, exports are 986.7 million bushels, compared to 1.022 billion late in 2011/12. Sales of 415,600 tons (15.3 million bushels) for 2013/14 delivery were mainly to unknown destinations (196,900 tons) and Japan (64,800 tons).

Corn was reported at 219,900 tons (8.7 million bushels), 90% more than the previous week but 24% less than the four week average. Mexico purchased 136,700 tons and Japan bought 132,900 tons, with unknown canceling on 86,000 tons. For the marketing year to date, corn sales are 672.6 million bushels, compared to 1.491 billion this time last year. Sales of 38,600 tons (1.5 million bushels) for 2013/14 delivery were to Mexico (31,100 tons) and Panama (7,500 tons).

Soybeans were pegged at 15,300 tons (600,000 bushels), with sales from 1,300 to 10,300 tons partially offset by cancellations of 1,900 and 9,000 tons. So far this marketing year, soybean sales are 1.341 billion bushels, compared to 1.290 billion a year ago. Sales of 346,600 tons (12.7 million bushels) for 2013/14 delivery were to China (275,000 tons), Mexico (45,000 tons), and unknown destinations (20,500 tons).

Soybean meal came out at 82,800 tons, larger than the week before but 44% smaller than the four week average. Colombia picked up 52,000 tons and Venezuela purchased 26,700 tons but unknown destinations canceled on 75,400 tons. At this point in the marketing year, soybean meal sales are 8,792,700 tons, compared to 6,586,400 tons last year. Sales of 109,700 tons for 2013/14 delivery were primarily to Vietnam (94,000 tons).

Soybean oil had a net reduction of 5,300 tons with cancellations offsetting any new sales. 2012/13 soybean oil sales are 827,500 tons, compared to 411,000 in 2011/12.

Net beef sales were reported at 4,700 tons. The listed buyers were Canada (2,800 tons), Hong Kong (1,800 tons), South Korea (1,600 tons), Mexico (1,200 tons), and Taiwan (700 tons). Cancellations were made by Japan (3,000 tons) and Vietnam (600 tons).

Net pork sales totaled 7,200 tons. The reported purchasers were Japan (1,900 tons), Canada (1,700 tons), Mexico (900 tons), South Korea (700 tons), and Hong Kong (600 tons).

Enlist Duo approved in Canada

Dow AgroSciences announced earlier today that Health Canada’s Pest Management Regulatory Agency has approved Enlist Duo herbicide with Colex-D Technology for use in Canada.  The approval makes Canada the first nation to authorize the herbicide and a milestone for the company’s Enlist Weed Control System which combines traits, herbicides, and stewardship.

Stan Howell, vice president, North America, Dow AgroSciences says, “The Enlist Duo herbicide approval in Canada validates the robust innovation we are bringing forward for our customers who tell us the need for new weed control tools becomes more urgent every season.”

The announcement comes just days after USDA’s Animal and Plant Health Inspection Service announced it is extending its review of 2,4-D and Dicamba herbicide traits.  A move that industry sources say could delay the introduction of new products containing those herbicide-tolerant traits to the US market for an additional two to four years.

House Ag Committee passes farm bill

The House Agriculture Committee worked late into the night Wednesday marking up its version of the farm bill.  The bill passed by a vote of 36 to 10.

As expected, the big issue was food stamps.  In the end, the committee voted to uphold an estimated 20.5 billion dollars in ten-year savings from nutrition programs.

The committee, after a lengthy discussion, defeated an attempt to change the Dairy Security Act in the farm bill. There were no changes to other commodity programs as proposed by House Ag Committee leadership.

Iowa Representative Steve King was successful in attaching his “Protect Interstate Commerce Act”, which would bar states from imposing their own animal-welfare standards on eggs, meat and other ag products brought in from other states.

The amendment is aimed at preventing farmers in other states from having to comply with measures such as California’s Prop 2 initiative that requires farms to provide more space to hens, hogs and other livestock.

Senate passes WRDA

The Senate passed the Water Resources Development Act (WRDA) on an 83-14 vote on Wednesday. The plan includes more than 20 new projects for the Army Corps of Engineers including making ports more accessible, harbor maintenance and dredging of inland waterways. 20 percent of the dredging is to be in the Great Lakes region. The bill takes another step toward upgrading the lock-and-dam system on the upper Mississippi and Illinois Rivers with a barge fuel tax. It would speed-up the environmental review process for the projects.

The plan also sets up a commission to consider defunding old uncompleted projects; the Corps has a $60 billion backlog of projects.

The $12.2 billion, ten-year plan now goes to the House for approval. Even if the House passes it, the projects would still need to be funded through the annual appropriations process.

House Ag Committee sticks with Dairy Security Act

After a lengthy discussion, the House Agriculture Committee defeated an attempt to change the Dairy Security Act in the farm bill. Congressmen Bob Goodlatte (R-VA) and David Scott (D-GA) introduced their alternative plan which would provide margin insurance for milk producers but without any supply management provision.

While the two representatives cited support for their plan from dairy processors and a number of dairy producers, ranking member Collin Peterson (D-MN) countered with producer support via the National Milk Producers Federation along with a number of ag economists. Peterson stated that margin insurance without supply management would encourage overproduction even in times of low prices.

Goodlatte noted that House Speaker John Boehner opposes the Dairy Security Act and that was one of the reasons the farm bill never came to the floor in the last Congress asking, “Do we want to run into that wall again?”

The Hill reports that while House leadership may not be on-board, Chairman Lucas acknowledged the farm bill needs Peterson and the Democrats to pass the House. In the end, Goodlatte-Scott failed with 20 voting “yay” and 26 voting “nay”. The Dairy Security Act moves forward.

The farm bill passed by the Senate Ag Committee on Tuesday also contains the Dairy Security Act.

Study: Delmarva poultry pollution ‘overestimated’

A University of Delaware-led study finds that the U.S. Environmental Protection Agency (EPA) has significantly overestimated the poultry’s industry’s contributions to water pollution in the Delmarva Peninsula.

Researchers tell the Delaware News Journal that the multi-state study, involving thousands of manure tests, discovered that actual nitrogen levels in poultry-house manure are 55 percent lower than EPA’s decades-old, lab-based standards. 

According to a meatingplace.com report, the study could force changes to cleanup efforts in the poultry-rich region.  A formal proposal for changes to the Chesapeake Bay Program’s six-state pollution forecasting model could come as early as next month.  That model is used to guide a federally backed attempt to restore the bay’s health and ecosystems.

The EPA’s efforts to control water pollution in the Delmarva are thought to be a model for possible future federal programs in the Mississippi River watershed.

House begins farm bill markup

The House Agriculture Committee began markup of HR 1947, the Federal Agriculture Reform and Risk Management Act of 2013 this morning.  In his opening comments, Committee Chairman Frank Lucas says their version of the farm bill is reform-minded and developed with true bipartisanship.  “No other authorizing committee in Congress is voluntarily cutting money from its jurisdiction to reduce the size and scope of the federal government,” he says. 

Lucas adds no one on the committee will like everything in the farm bill, including himself, but it will need both Republican and Democratic support to pass.  “The FARRM Act reforms the SNAP program for the first time since the welfare reforms of 1996,” he says.  “We also reform farm programs.  We eliminate direct payments; the FARRM Act reflects the belief in a true safety net – something used when disaster hits.”

Ranking member Colin Peterson says today is hopefully the ‘beginning of the end’ of a process that has gone on in his words ‘far too long’.  “I’m optimistic we’re going to be able to get this done,” he says.  “Hopefully in June it will go to the floor and then we can get the bill conferenced.  It would be nice to get this done before the August recess.  I think we could do that if we get on track here.”

Passing a farm bill, Lucas says, will “give certainty to an industry that has been a bright spot in an otherwise dismal economy” and offer taxpayers billions of dollars in deficit reduction.

Cattle placements may be up sharply on year

Ahead of Friday’s USDA cattle on feed report, analysts expect the update to show year to year increases in marketings and placements.

Via Dow Jones Newswires, the average estimate for placements onto feed during April is 112.1% on a year ago, mainly due to April 2012 being the smallest figure for the month since 2002 and down 15% from 2011. The range of estimates is 104.9% to 122.0%.

Marketings are pegged at 102.9% with one more business day in April 2013 than in April 2012. Expectations run from 100.0% to 104.1%.

The total number of cattle on feed in the U.S. as of May 1 is seen at 96.3%, potentially the smallest for the date since 2010. Analysts’ estimates range from 95.0% to 98.0%.

The report is out Friday, May 17 at 3 PM Eastern/2 PM Central.

Farm bill support not universal as it heads to Senate floor

Agriculture Secretary Tom Vilsack

Although support for the Senate Farm Bill has carried the measure on to floor consideration, it’s not unanimous. There were five committee votes against the Senate Farm Bill. The only Democrat to vote no was Kristin Gillibrand of New York. Following the committee’s markup of the bill, Senator Gillibrand said that she has problems with the $4 billion cut in nutrition programs.

“What we’re talking about is about $90 less a month in food assistance,” she said, “and for a family, that could mean the whole last week of their groceries.”

Republican John Thune of South Dakota dissented because he thinks the bill has more than it should have.

“What famers in South Dakota tell me is, ‘we want a good strong crop insurance program,’ and I think that this bill has that,” Senator Thune said, but he added, “a lot of these other bells and whistles being added are very costly.”

Rodger Johnson at Washington Watch 2013Specifically, Senator Thune thinks that target prices, and especially the fixed target prices for rice and peanuts should not be in the bill. Likewise, Nebraska Republican Mike Johanns thinks the day has come and gone for taxpayers to be guaranteeing a price for peanut and rice growers.

“They don’t respond to market signals because they don’t have to; we’ve covered their cost of production if not more,” said Senator Johanns, “and so at the end of the day, I just think target prices; that’s kind of 1980s agriculture.”

Meanwhile, for every no vote, there were three votes in support of the Senate Farm Bill.

What seems to result in broad committee support is that the measure ends direct payments in favor of risk management tools such as crop insurance.

2013_Carl_Zulauf_Washington_WatchIn comments during committee discussion, Senate Agriculture Chairwoman Debbie Stabenow (D-Mich.) spotlighted what she says are very significant reforms, including conservation compliance linked to crop insurance subsidies.

“The point isn’t to penalize farmers,” said Senator Stabenow, addressing the committee she chairs, “but to conserve our resources and allow farmers to be the best stewards of our land.”

Similar support is expressed by the Obama administration. While the markup was happening Tuesday, U.S. Agriculture Secretary Tom Vilsack was telling farm broadcasters that he feels it’s not unreasonable to ask farmers for something in return for crop insurance subsidies.

“We want to work with you to make sure that conservation is part of your thought process,” said Secretary Vilsack, explaining that he doesn’t think it’s unreasonable to expect something in return for taxpayer subsidized crop insurance premiums. “I think that’s a pretty good deal; I think that’s a fair deal.”

2013_AFBF_Bob_Young_Washington_WatchAlso in Washington Tuesday to address farm broadcasters, Dr. Carl Zulauf, agriculture economist at Ohio State University, said that, although not unanimous among committee members, the quick markup, reportedly only a few hours, “suggests that the bill will have an easier time than otherwise it might have on the floor,” he told Brownfield Ag News.

“There are provisions in this bill that moves it closer to the House bill,” Zulauf added, “so it suggests that we’re beginning the process of trying to reconcile and finding appropriate compromise for these farm bills.”

Farm organizations seem to have long ago conceded that cuts in the funding for such legislation are unavoidable. Their primary concern is to get a five-year farm bill passed, for which there’s higher confidence than last year.

“I think we’re going to get a farm bill done this year,” said Bob Young, chief economist for the American Farm Bureau Federation, in an interview with Brownfield Ag News Tuesday following passage by the Senate Agriculture Committee. Young also cites “right noises out of the House leadership as well about moving legislation.”

Getting ultimate passage and a signed bill in place is also a priority for members of the National Farmers Union. Their president, Roger Johnson, says the most important part of that is a farm safety net.

“We’ve long felt that a safety net should be really about two things,” Johnson told Brownfield, “it should help in times of disaster, and the other thing is it should help when the market has a long-term price collapse.”

As for the Senate Ag Committee’s performance, “they’ve done what they can with the money that was provided to them,” said Young. “They’ve been handed a very tough task with the cuts that they’ve had to come up with.”

Contributing to this article was National Association of Farm Broadcasting pool reporter Ken Root.

Photos top down: Agriculture Secretary Tom Vilsack, National Farmers Union President Roger Johnson, Ohio State University Ag Economist Carl Zulauf and American Farm Bureau Chief Economist Bob Young.

AUDIO: Bob Young (1 min. MP3)

AUDIO: Carl Zulauf (1 min. MP3)

AUDIO: Roger Johnson (3 min. MP3)

AUDIO: Tom Vilsack (4 min. MP3)

AUDIO: Senators Gillibrand, Thune and Johanns (5 min. MP3)