Archives for March, 2009
Weekly Update – March 27, 2009
Monday, March 30th, 2009
>ACTION ALERT REMINDER
Act Now to Shut Down Multimillion Dollar Farm Subsidy Loophole!
The 2008 Farm Bill handed President Obama and USDA Secretary Vilsack a rare opportunity to close one of the biggest payment limit loopholes in current regulations. The nation’s largest farms collect unlimited annual production subsidies under rules that permit payments to those who provide only minimal farm management and no active labor. Their ill-gotten gains are used to bid away land from small and beginning farmers choking off economic opportunity and farm entry for the next generation of farmers.
President Obama and Secretary Vilsack need to hear a loud and clear message from farmers and other citizens who care about the future of farming: The time is now to close the loophole that allows widespread abuse of payment limitation law! Comments must be received by April 6, 2009. An NSAC Action Alert with talking points and information on submitting comments is posted here.
THIS WEEK
Budget Debate Begins: This week the House and the Senate Budget Committees approved their respective versions of the budget resolution for 2010, which serves as a blueprint for considering spending and tax bills later in the year and sets the cap on discretionary appropriations spending for the year. The bills will be on the floor of the House and Senate this coming week, with a House-Senate conference to reconcile differences to begin during the upcoming two-week congressional recess.
Three Senate Democrats flip-flop, leaving farm subsidy reform out of the budget
Thursday, March 26th, 2009
Written by Ferd Hoefner, NSAC Policy Director
Three Senators reversed their previous positions in support of farm program subsidy reform, providing the deciding votes to defeat a subsidy reform amendment offered in Senate Budget Committee by Senator Chuck Grassley (R-IA) and backed by President Obama and USDA Secretary Tom Vilsack.
Last year, all three — Robert Byrd (D-WV), Patty Murray (D-WA), and Ron Wyden (D-OR) — voted in favor of the Grassley pro-family farm amendment to the budget resolution and it passed 13-9. Today the same amendment went down to defeat on a 10-13 vote after the three reversed their vote.
Switching from anti- to pro-reform was Ben Cardin (D-MD). First time voters on this issue split – new Senator Jeff Merkley (D-OR) voted with the reformers, while new Senator Mark Warner (D-VA) voted against family farmers.
In a successful attempt to pull votes away from commodity reform, Budget Committee Chairman Kent Conrad (D-ND) offered an alternative amendment to cut crop insurance funding instead of reining in million dollar government payments to the nation’s largest farms. That amendment in support of lower crop insurance support was passed on a 14-10 vote. Conrad also played the lead role in defeating commodity payment reform during Senate consideration of the 2008 Farm Bill.
Both the successful Conrad amendment and the defeated Grassley amendment actually do the same thing — reduce spending designated for the budget function for farm support and shift part of the savings to the budget function for nutrition programs. How such savings would be ultimately achieved is up to a plan devised in the Agriculture Committees, not the Budget Committee. The Budget Committee, though, makes assumptions about where the money comes from.
The Grassley amendment savings assumed eventual passage of the Dorgan-Grassley bill, a measure to place a hard cap of $250,000 on annual payments per farm. That bill was supported by a majority of Senators during the voting on the 2008 Farm Bill and was endorsed last month in President Obama’s budget proposal to Congress.
Both the Grassley amendment and the Obama proposal would use the savings from stopping payment abuse to help pay for enhanced child nutrition. Congress will be reauthorizing the Child Nutrition Act later this year, and a significant issue will be where to find savings to bolster school feeding programs.
The effort to reform farm subsidy payments strongly supported by the White House and USDA does not die with the defeat of this amendment. Not only will the Child Nutrition legislation be pending later this year, but the Administration has a significant opportunity to reform farm subsidy programs that does not need new additional legislation. The congressional report accompanying last year’s farm bill directed USDA to rewrite the regulations for determining who is eligible to receive payments and determining what constitutes schemes and devices to evade payment limit law. The Bush Administration issued interim rules at the end of December, and the public comment period on that rulemaking expires April 6.
After that, the new Administration can produce a final rule that eliminates the biggest loopholes in current rules that allow landowners to collect hundreds of thousands and even millions of dollars of year from the taxpayer despite far lower payment limits in law.
We are disappointed by today’s vote and by the three defectors to the cause of reform. We stand ready to support the White House in its case for commodity reform and nutrition enhancement in Congress. In the meantime, the President should do what is in his power already – close the loopholes that allow the nation’s largest farms to collect unlimited annual production subsidies – by issuing a final rule with real backbone to target payments to working farmers.
Weekly Update – March 20, 2009
Monday, March 23rd, 2009
ACTION NEEDED
Act Now to Shut Down Multimillion Dollar Farm Subsidy Loophole!
The 2008 Farm Bill handed President Obama and USDA Secretary Vilsack a rare opportunity to close one of the biggest payment limit loopholes in current regulations. The nation’s largest farms collect unlimited annual production subsidies under rules that permit payments to those who provide only minimal farm management and no active labor. Their ill-gotten gains are used to bid away land from small and beginning farmers choking off economic opportunity and farm entry for the next generation of farmers.
President Obama and Secretary Vilsack need to hear a loud and clear message from farmers and other citizens who care about the future of farming: The time is now to close the loophole that allows widespread abuse of payment limitation law! Comments must be received by April 6, 2009. An NSAC Action Alert with talking points and information on submitting comments is posted here.
SPECIAL FEATURE I
Obamas Dig Up White House Lawn, Time Now to Plant and Harvest Real Policy Change
As advocates we often ask ourselves, “Do our efforts change things on the ground?” Leaders and participants of a strong grassroots effort to change the ground on the White House lawn can now say,
“Yes!”
Our hats go off to the folks at Eat the View, the WHO Farm, and the White House Farmer among others, whose tireless work led to the newly-broken ground for an organic garden on the White House lawn. Apart from having tremendous symbolic value, this act will hopefully inspire anyone with access to a small plot of land to plant some seeds and take food matters into their own hands.
As the Obamas transform their own backyard from an input-intensive monocrop that is the lawn to a diverse organic garden, there are significant opportunities to transform the nation’s land as well.
Without going through the exhaustive list of problems with our current agriculture system and policies to change them, here are examples of the low-hanging fruit that the Obama Administration can act on today (in addition to planting a White House garden!) to create a better food and agriculture system:
- Working lands can’t wait:
The Bush Administration punted the rule-making for the Conservation Stewardship Program and many other programs to the current administration. Without an interim final rule, farmers cannot sign-up for this pillar working-lands conservation program before this crop year is over. Want to foster climate-friendly farming? Get a strong rule finalized and start signing farmers up for this innovative program by late spring.
- Stimulate that economy just a bit more:
The Value-Added Producer Grant program is a successful, competitive grants program that encourages entrepreneurship and innovation in agriculture, and just happens to create jobs as well by assisting those who want to add value to their farm products by serving a burgeoning consumer market for high quality local and regional food. President Obama has signaled that it is due for a long overdue funding increase – we hope the White House budget released in April will provide no less than $30 million, with a plan to grow the program in future years.
- Give new farmers a seat at the table:
The 2008 Farm Bill established the Office of Advocacy and Outreach to serve as the go-to office at the USDA for small and mid-sized farms and beginning and socially disadvantaged farmers and ranchers. It’s time to get this office up and running so that the multiple new programs that benefit these farmers can be effectively used. And new USDA goals to increase farming opportunities can be established and agencies held accountable for meeting the targets.
- Make sure that only people who farm are “farmers”:
Funny thing happened on the way to the FSA office: I met an absentee non-farm investor walking out with a check for his participation in farm programs. The Administration can change the loopholes in the “Actively Engaged” rule, ensuring that real farmers, not those Wall Street types (aren’t TARP funds enough?), get government support for farming.
- Level the playing field:
Since all the way back to 1921 it has been illegal for meatpackers to discriminate against small and mid-sized farms. But USDA has never been keen on enforcement, permitting sweetheart deals for mega-volume producers at the expense of the little guy. The 2008 Farm Bill told USDA to write regulations to strictly enforce the law, and now its time for the Administration to face down moneyed interests and write tough regulations.
- Bring the farm to school:
In keeping with the nutrition education bonanza presented by its new garden, the White House should now insist that when Congress rewrites the Child Nutrition Act this year that it provide substantial annual mandatory funding for Farm to School projects, to provide school children all over the country to join Malia and Sasha with new opportunities to eat fresh, local and nutritious!
In addition to the symbolic new White House organic garden, these programs will break ground across the country for a sustainable 21st century food and agriculture system.
SPECIAL FEATURE II
NSAC Holds Inaugural Meeting: The National Campaign for Sustainable Agriculture held the inaugural meeting of its member organizations March 15 – 17 in Alexandria, VA. 90 people convened, including representatives from 40 of NSAC’s 65 member organizations, as well as 15 farmers associated with several of NSAC’s member organizations.
The meeting included updates on the latest happenings in DC from NSAC policy staff, including sustainable agriculture priorities in the recently passed stimulus bill, omnibus spending bill for FY2009, and upcoming FY2010 appropriations legislation. NSAC’s five Issue Committees and the Policy Council also held meetings to come to consensus on which of the many issues of concern to the diverse membership of the Coalition should be the priorities toward which the DC staff devotes its finite resources. The priority-setting process is still ongoing, but the discussions at the meeting advanced this process tremendously.
On Tuesday, March 17, NSAC meeting attendees trekked to Capitol Hill to establish and strengthen relationships with members of Congress, USDA, and the Office of Management and Budget (OMB) by visiting them in small constituent groups to discuss specific NSAC priorities with them. Over 60 legislative and 10 Administration visits were made.
Vilsack Visit: One of the highlights of the event was a visit by Secretary of Agriculture Tom Vilsack who addressed the group on the second day of the meeting. Vilsack said that if he was asked to summarize President Obama’s agenda for USDA in one word, that word might be “sustainable.” He spoke of the need for more sustainable rural communities in America, and said that farmers need greater access to off-farm income, which can be facilitated by greater rural access to broadband internet and by such initiatives as the Rural Microentrepreneurial Assistance Program.
The Secretary also highlighted the connection between agriculture and energy usage, and said transitioning away from dependence on fossil fuels will be a major priority at USDA. He mentioned improved child nutrition and access to healthy food as a major new thrust. Vilsack also spoke of the need to increase opportunities for beginning farmers, to put in place a more efficient and effective system to address food safety concerns, and to use USDA policy as a tool to stimulate the economy, especially through food assistance programs.
Secretary Vilsack made himself available for questions from the group, and Duane Sand of the Iowa Natural Heritage Society requested that he champion the Conservation Stewardship Program. Vilsack was very receptive to this, and highlighted his advocacy of conservation efforts as governor of Iowa. He said CSP offers a way to make small and mid-size farms more viable. He also noted the importance of organic programs for small and mid-sized farms, and, to great applause, mentioned the important role Kathleen Merrigan will be able to play in this area when she joins the Administration as the Deputy Secretary of the USDA.
Margaret Krome of the Michael Fields Agricultural Institute in Wisconsin asked Secretary Vilsack to champion the Sustainable Agriculture Research and Education (SARE) program and the Value-Added Producer Grant (VAPG) program. He candidly stated that he is not specifically aware of the specific budget requests for those programs, but that he would be supportive since those programs that have a demonstrable link to the Administration’s policy objectives he outlined.
In response to a question on USDA rulemakings from NSAC grassroots coordinator Annette Higby, Vilsack said that he is aware of the need for a strong new rule on what it means to be “actively engaged in agriculture” for the purpose of commodity payments, and stated that drafting a new rule to prohibit “undue price preferences” for large volume livestock producers is already under way and he is watching its progress closely.
Finally, Maria Moreira of Flats Mentor Farm in Massachusetts commended the Secretary on the recently posted Request for Applications for the Beginning Farmer and Rancher Development Program, and urged him to make sure the new Office of Advocacy and Outreach — which will oversee programs addressing small farms, beginning and socially disadvantaged farmers and ranchers — be established immediately as directed in the recent farm bill.
SPECIAL FEATURE III
PLEASE! USE OUR FARM BILL WINS! Reminders of Funding Availabilities: Last week we reported on four newly USDA requests for proposals for grant funding. A quick recap:
- Beginning Farmer and Rancher Development Program – Applications due May 13, 2009; nearly $18 million available. Look here for complete information.
- Farmers Market Promotion Program - Applications are due by April 27, 2009; nearly $5 million available. Look here for complete information.
- Rural Energy for America Energy Audit Grants - Applications due by June 9, 2009; nearly $2.5 million available. Look here for complete information.
- Agriculture and Food Research Initiative - Application due date varies by subprogram, ranging from April through August, 2009; over $200 million is available. Look here for complete information.
- Cooperative Conservation Partnership Initiative - Applications are due by April 23, 2009; over $50 million is available in project-based farmer conservation payments. Look here for complete information.
THIS WEEK
NSAC Submits Conservation Comments: The National Sustainable Agriculture Coalition this week submitted comments to USDA pertaining to interim final rules for the Wetlands Reserve Program (WRP) and Technical Service Providers (TSP).
In our WRP comments we speak out strongly against harsh restrictions added to the WRP rule by the last Administration that could force landowners to repay WRP payments even while the easement on the land would remain in place. We call instead for reasonable remedies to land transfers that do not discourage farmers from enrolling in WRP in the first place. We also oppose overly broad powers the Bush rule would grant to the government to force landowners to accept third party access to wetlands without the landowner’s agreement.
In our TSP comments we call for use of third party technical assistance provider services to be targeted to areas and situations where private providers can deliver conservation services for substantially less money than internal USDA costs and to issues where Natural Resource Conservation Service employees lack experience and skills, including organic farming and whole farm energy audits. We also call for new policies to provide farmers the same level of cost share funding whether they receive assistance from the public or private sector and to require private sector providers to abide by conflict of interest rules. Neither of those policies currently exists nor does the interim rule address the issues.
Food Supply Protection Hearing: The House Energy and Commerce Committee — the committee with jurisdiction over food safety — held a hearing on Thursday, March 19, to examine the salmonella outbreak in peanuts produced by the Peanut Corporation of America (PCA). Three witnesses, Heather Isely, Co-President of Vitamin Cottage Inc., Martin Kanan, President and CEO of King Nut Company, and David Mackay, President and CEO of Kellogg Company, represented their respective company and discussed the outbreak as it impacted retailers, distributors, and manufacturers.
Members of the Committee wanted to know why other companies did not follow Nestle USA’s approach to failed audits and send their own auditor to inspect PCA’s plant. Nestle rejected PCA as a supplier in 2006 after the plant flunked the Nestle inspection. Most other companies relied solely on third party auditors hired by PCA.
All three witnesses claimed that improvements in food safety need to come from FDA and noted that businesses can face serious economic burdens when they pay for and rely on third party auditors. Heather Isely, representing a small chain of natural food retailers, said that with over 13,000 suppliers, her company simply cannot afford third party audits for each supplier.
Kellogg’s Mackay endorsed two ideas not generally favored by industry trade associations — user fees on industry to pay for stronger food safety laws and a single food safety authority under the Health and Human Services Department. The latter idea has been backed by House Agriculture Appropriations Chairwoman Rosa DeLauro (D-CT) in her bill H.R. 825 and has been suggested as a possible option to food safety improvement by President Obama.
However, during the course of the hearing, Chairman Henry Waxman (D-CA) signaled his intention to use legislation (H.R. 759) introduced by Committee members John Dingell and Bart Stupak, both Michigan Democrats, as the foundation of any food safety overhaul the Energy and Commerce Committee takes up during this two-year session of Congress.
To read more about the hearing and testimony, go to http://energycommerce.house.gov/.
NEXT WEEK
Budget Resolution Mark-ups Pending: There are two weeks left for Congress to tackle the budget resolution for 2010 before splitting town for the two-week April recess. The budget resolution sets out broad spending goals and caps for both mandatory and discretionary spending. On the discretionary side, the budget figure determines the overall cap on the FY 2010 appropriations bills to be written later this year by Congress. On the mandatory side, the budget will determine how much new spending will be available for big ticket items like health care reform and smaller ticket items like child nutrition program reauthorization.
When the budget resolution is written, and later when appropriations bills and new authorizations like the Child Nutrition Act are voted on, the spending assumptions for those bills are determined by consulting the Congressional Budget Office March Baseline. This March baseline was released Friday, March 20. The CBO projections show a somewhat higher deficit level should Congress enact President Obama’s budget proposal than the White House projected, with FY 2010 pegged at $1.37 trillion rather than $1.17 trillion.
Over in the agriculture part of the CBO projection, the new tabulations show farm commodity spending increasing for this year and next two years relative to projections made just two short months ago in January. The 2009 estimate soared nearly $650 million to $9.4 billion while the 2010 estimate climbed by $550 million to $8.1 billion, and the 2011 projection went up $805 million to $9.1 billion.
When the Senate Budget Committee takes up its bill next week, we expect a vote on a budget instruction backing payment limitation reform to cap per farmer production subsidies at no greater than $250,000 a year. As in other recent years, that message amendment, backed by NSAC, will be brought forward by Sen. Chuck Grassley (R-IA). President Obama’s budget proposal submitted to Congress also endorses enactment of a $250,000 payment limitation.
Confirmations Hearing Hopefully Coming Soon: A confirmation hearing in the Senate Agriculture Committee has yet to be scheduled for the designees for USDA Deputy Secretary (Kathleen Merrigan), Under Secretary for Farm and Foreign Ag Services (Jim Miller), and Under Secretary for Rural Development (Dallas Tonsager). However, there is a reasonably good chance the Senate Agriculture Committee will be schedule the hearing for the week of March 30 and, if so, it will likely be followed by a full Senate vote to confirm the nominees prior to Congress leaving town for the first two full weeks of April.
House Ag Asks for Climate Views and Schedules Oversight Hearings: The House Agriculture Committee has issued an appeal for organizations and individuals to submit answers to a questionnaire on agriculture role in potential climate change cap and trade or carbon tax legislation. The questionnaire is available on the Committee’s website and responses must be submitted by April 10, 2009.
The Committee also has a series of upcoming hearings, including a review of conservation program contracts on March 25 at 10 AM eastern, a review of the state of obesity in the US on March 26 at 10 AM eastern, a review of innovative approaches to rural development on March 31 at 1 PM eastern, and a review of the farm economy on April 1 at 11 AM. All hearings can be listened to through a live audio feed from the Committee’s website.
USDA NEWS
NOSB Meeting Announced: On Friday, March 20, the National Organic Standards Board announced the agenda in the Federal Register for its upcoming May 4-6 meeting in Washington, DC. Issues on the agenda include a review of and recommendations for a number of materials permitted in organic processing, handling, and crop and livestock production. Committees will also present recommendations for strengthening the principles of biodiversity, revising the Board’s policy manual, and reviewing the collaboration with the National Organic Program. The meeting is open to the public and sets aside time for public comment on May 4 and 5. Check out the NOSB website for more information about the meeting and recommendations.
DULY NOTED
Food Safety Buzz: Amid the chatter on the blogs and foodie listserves in the wake of the introduction of several food safety bills this year in Congress, the Friday, March 20, 2009 edition of The Hill (a Capitol Hill rag read by staffers and legislators) contains a 5-page special section on Agriculture and Food Safety.
The special section includes a short piece by Rep. Rosa DeLauro (D-CT) outlining the food safety bill she recently introduced to fundamentally restructure the food safety bureaucracy by establishing a new Food Safety Administration within the Department of Health and Human Service. Another piece, by Sen. Herb Kohl (D-WI) draws the connection between food safety and food imports. Sen. Thad Cochran (R-MS) argues that food safety concerns can be addressed with improvements to the existing system and more prudent use of current funding, while House Agriculture Chair Collin Peterson (D-MN) notes his intention to conduct food safety oversight hearings regarding both FDA and USDA.
At its meeting in Washington, D.C. this week, the members of the National Sustainable Agriculture Coalition decided to form an emergency task force to discuss and analyze food safety bills and to develop policy over the next several months from the vantage point of small and mid-sized farms, of sustainable and organic operations, and of conservation impacts of food safety legislation. Stay tuned for future updates from this group.
Obamas Dig Up the White House Lawn, Time Now to Plant and Harvest Some Real Policy Change
Friday, March 20th, 2009
Written by Ariane Lotti, NSAC Policy Associate
As advocates we often ask ourselves, “Do our efforts change things on the ground?” Leaders and participants of a strong grassroots effort to change the ground on the White House lawn can now say, “Yes!”
Our hats go off to the folks at Eat the View, the WHO Farm, and the White House Farmer among others, whose tireless work led to the newly-broken ground for an organic garden on the White House lawn. Apart from having tremendous symbolic value, this act will hopefully inspire anyone with access to a small plot of land to plant some seeds and take food matters into their own hands.
As the Obamas transform their own backyard from an input-intensive monocrop that is the lawn to a diverse organic garden, there are significant opportunities to transform the nation’s land as well.
Without going through the exhaustive list of problems with our current agriculture system and policies to change them, here are examples of the low-hanging fruit that the Obama Administration can act on today (in addition to planting a White House garden!) to create a better food and agriculture system:
- Working lands can’t wait:
The Bush Administration punted the rule-making for the Conservation Stewardship Program and many other programs to the current administration. Without an interim final rule, farmers cannot sign-up for this pillar working-lands conservation program before this crop year is over. Want to foster climate-friendly farming? Get a strong rule finalized and start signing farmers up for this innovative program by late spring.
- Stimulate that economy just a bit more:
The Value-Added Producer Grant program is a successful, competitive grants program that encourages entrepreneurship and innovation in agriculture, and just happens to create jobs as well by assisting those who want to add value to their farm products by serving a burgeoning consumer market for high quality local and regional food. President Obama has signaled that it is due for a long overdue funding increase – we hope the White House budget released in April will provide no less than $30 million, with a plan to grow the program in future years.
- Give new farmers a seat at the table:
The 2008 Farm Bill established the Office of Advocacy and Outreach to serve as the go-to office at the USDA for small and mid-sized farms and beginning and socially disadvantaged farmers and ranchers. It’s time to get this office up and running so that the multiple new programs that benefit these farmers can be effectively used. And new USDA goals to increase farming opportunities can be established and agencies held accountable for meeting the targets.
- Make sure that only people who farm are “farmers”:
Funny thing happened on the way to the FSA office: I met an absentee non-farm investor walking out with a check for his participation in farm programs. The Administration can change the loopholes in the “Actively Engaged” rule, ensuring that real farmers, not those Wall Street types (aren’t TARP funds enough?), get government support for farming.
- Level the playing field:
Since all the way back to 1921 it has been illegal for meatpackers to discriminate against small and mid-sized farms. But USDA has never been keen on enforcement, permitting sweetheart deals for mega-volume producers at the expense of the little guy. The 2008 Farm Bill told USDA to write regulations to strictly enforce the law, and now its time for the Administration to face down moneyed interests and write tough regulations.
- Bring the farm to school:
In keeping with the nutrition education bonanza presented by its new garden, the White House should now insist that when Congress rewrites the Child Nutrition Act this year that it provide substantial annual mandatory funding for Farm to School projects, to provide school children all over the country to join Malia and Sasha with new opportunities to eat fresh, local and nutritious!
In addition to the symbolic new White House organic garden, these programs will break ground across the country for a sustainable 21st century food and agriculture system.
Weekly Update – March 13, 2009
Saturday, March 14th, 2009
Tom Frantzen, New Hampton, Iowa
Photo: At this year’s Organic Conference in LaCrosse, WI, Tom Frantzen and his wife Irene were named MOSES 2009 Organic Farmers of the Year. The Frantzens manage a diversified farm in New Hampton, Iowa where they grow crops for animal feed on 300 tillable acres, and sell soybeans as a cash crop. Their farrow-to-finish hog operation produces 600 head for market and 40 brood sows. They also keep 50 beef brood cows. The Midwest Organic and Sustainable Education Service (MOSES) is a NSAC member and each year announces an Organic Farmer of the Year at their annual Organic Conference in LaCrosse, WI. This year, MOSES had a record 2,600 conference attendees! Congratulations, Tom, Irene, and MOSES!
ACTION NEEDED
More Time To Submit Environmental Quality Incentives Program Comments: On Thursday, March 12, USDA issued a notice that the comment period for the EQIP Interim Final Rule has been extended to April 17, 2009. So if you did not respond to or circulate an action alert before now, you have a reprieve! An NSAC Action Alert with talking points and information on submitting comments is posted here.
Note: USDA has also extended the comment period on the Wildlife Habitat Incentives Program until April 17, 2009.
Reminder: USDA has extended the deadline for submitting Conservation Innovation Grant project proposals until March 20 and the deadline for Agricultural Water Enhancement Program project proposals until April 1, 2009.
NEWS FLASH!!
Read below under USDA News subhead for announcements that grants are now being accepted for the Beginning Farmer and Rancher Development Program, the Farmers Market Promotion Program, the Rural Energy for America Program, and Agriculture and Food Research Initiative, four NSAC priority farm bill programs! And nominations are open for the National Organic Standards Board.
THIS WEEK
FY 09 Appropriations Finally Passed: After months of negotiation, the $410 billion omnibus appropriations bill finally was sent to President Obama for his signature. On Tuesday, the Senate approved the bill on a voice vote after voting 62-35 to cut off debate, with 60 votes needed to end debate. Senate Democratic leaders won the needed support of Sens. Menendez (D-NJ) and Nelson (D-FL), who both were hesitant to support a bill that loosened restrictions on travel to Cuba. Those two were critical because three Democrats – Sens. Feingold (WI), McCaskill (MO), and Bayh (IN) — opposed the annual spending bill and only eight Republicans supported it. The Senate defeated a dozen amendments to the omnibus, in the end passing the an identical bill to the House-passed version. More on the spending levels in the bill for sustainable agriculture programs are available in the February 27 Weekly Update.
Under Secretaries for Department of Agriculture Announced: On Friday, President Obama announced that he intends to nominate Jim Miller to be Under Secretary of Farm and Foreign Agricultural Services and Dallas Tonsager to be Under Secretary of Agriculture for Rural Development at USDA. Miller is currently Chief of Staff for the National Farmers Union and previously served on the Senate Budget Committee staff, as Chief Economist for the National Farmers Union, and as Vice President for Government Relations for the National Association of Wheat Growers. Tsonager is currently a board member of the Farm Credit Administration and was previously the Executive Director for the South Dakota Value-Added Agriculture Development Center and was appointed by President Clinton as the South Dakota State Rural Development Director.
National Animal Identification System Hearing: On Wednesday, March 11, the House Agriculture Subcommittee on Livestock, Dairy and Poultry held a hearing on the National Animal Identification System (NAIS). Proponents of such a system, including Subcommittee Chairman David Scott (D-GA), maintain that it would prevent the spread of disease, save the government money, and strengthen national security in the event of bio-terrorist attacks. Ranking Subcommittee member Randy Neugebauer (R-TX) and others expressed concern over the cost of implementing such a system, and over potential government invasions of privacy and unwarranted interruptions of operations.
House Agriculture Committee Chairman Collin Peterson (D-MN7) urged that NAIS be mandatory, to ensure that any contagious disease could be reliably traced back to its source. If a mandatory system is not implemented and there is an epidemic, “I will do everything I can to make sure government doesn’t bail you out,” said Peterson to farmers and feedlots opposed to NAIS.
Subcommittee Chairman Scott asserted that small and mid-size ranchers would need government assistance to comply with a mandatory system, which would cost roughly $3-$5 per animal, and this was not disputed.
Don Butler, president of the National Pork Producers Council, emphasized the benefits of mandatory NAIS for strengthening the security of the livestock industry and maintaining access to global markets.
Bill Nutt, president of the National Cattlemen’s Beef Association, and Max Thornberry, president of R-CALF USA, each testified in favor of voluntarily implemented, market-driven animal identification systems in his operations. They maintained that mandatory NAIS would cost much more than the $200 million proposed to be budgeted for it, would unnecessarily burden US trade, and flatly stated that such a system has no connection to food safety. Chairman Scott responded that the problem with a voluntary system is that those producers who opt not to participate may harm society as a whole.
Antitrust Nominee Says Agriculture will be a Priority at DOJ: During a Senate Judiciary Committee hearing on Tuesday, March 10, Sen. Russ Feingold (D-WI) discussed his grave concerns about slumping dairy prices and the Bush Administration’s failure to take action against anti-competitive behavior in the agriculture industry. Under questioning from Feingold, Christine Anne Varney, nominee to be Assistant Attorney General of the Antitrust Division in the Department of Justice, made a commitment that that, if she is confirmed, agriculture will be a priority in the Antitrust Division. She indicated that she will examine questionable antitrust decisions of the Bush administration and order a thorough review of slumping farm-level dairy prices, which do not appear to be reflected in retail prices paid by consumers.
NEXT WEEK
Budget Resolution Mark-ups and Votes Coming: Next week the House Budget Committee will consider the FY 10 Congressional Budget Resolution, setting out broad spending goals and caps for both mandatory and discretionary spending. The full House is likely to vote on the budget the following week, with Senate Budget Committee action, and perhaps floor action, also occurring by April 3, the last day before a two week Easter recess. Under normal rules, Congress does not begin working on annual appropriations bills until the budget is finalized, setting an overall cap on dollars available for the annual spending bills.
Of particular interest to NSAC will be whether the budget proposals include a “reserve fund” for the Child Nutrition Act Reauthorization bill which funds school feeding programs. Reserve funds are often used when an authorizing committee (in this case the Senate Agriculture Committee and the House Education and Labor Committee) will be considering a bill during that particular budget year in which an increase in mandatory funding is anticipated over what would otherwise be available under a simple extension of current law.
President Obama has called for a reserve fund of $10 billion over ten years for Child Nutrition reauthorization, and proposes to pay for it by reducing direct commodity payments to farmers who gross more than $500,000 a year. The latter proposal is generally viewed as dead on arrival in Congress, although other variants on ways to raise needed funds from farm programs may still be considered.
Anti-hunger and nutrition advocates have called for a $20 billion increase over five years (which would be over $40 billion over ten years) for the child nutrition bill. They have not indicated where the funding “offsets” would come from.
While NSAC’s pursuit of at least $10 million a year in mandatory funding for Farm to School project grants is very small in comparison to the these numbers, it is nonetheless true that the bigger the overall number, the easier it will be to secure funding for Farm to School.
Drawing far more attention than the relatively speaking small child nutrition item this week has been the huge mega-reserve fund numbers proposed by the President for health care reform (paid for by tax increases for the wealthy) and low and middle class tax cuts (paid for by auctioning climate credits). Look for those debates to get a lot of ink in the coming weeks.
USDA NEWS
It’s Here! Beginning Farmer Request for Applications Announced: On Friday, March 13, the Request for Applications for the Beginning Farmer and Rancher Development Program was posted to Grants.gov. The due date for applications is May 13, 2009. We expect the RFA will appear in the Federal Register early next week. About $17.3 million is available.
BFRDP is a competitive grants program that funds education, extension, outreach, and technical assistance initiatives directed at helping beginning farmers and ranchers. A synopsis is here. The application package is available here.
The BFRDP was conceived by NSAC, championed by Sen. Harkin (D-IA), and included in the 2002 Farm Bill. However, the Bush Administration never requested any money for the program. In the 2008 Farm Bill, however, NSAC members campaigned for and won mandatory funding, the first tranche of which is now being made available.
More Good News! Farmers’ Market Promotion Program Funds Available: On Friday, March 13, the Agricultural Marketing Service (AMS) announced in the Federal Register the availability of $5 million in competitive grant funds for expanding direct producer-to-consumer market opportunities.
AMS will grant awards for projects that aim to improve or expand farmers’ markets, roadside stands, community-supported agriculture programs, agri-tourism activities, and other direct marketing of agricultural commodities from farmers to consumers. Ten percent of the funds available will be used to to support electronic benefits transfers (EBT) projects to aid low-income shoppers using CSAs and farmers markets.
FMPP grant sizes are between $2,500 and $100,000. Applications must be post-marked no later than April 27, 2009.
The FMPP was conceived by NSAC and included in the 2002 Farm Bill as a discretionary program, and for several years received an annual appropriation of $1 million. NSAC members campaigned for mandatory funding in the 2008 Farm Bill, winning $5 million a year for starters and rising to $10 million in future years. For more information see the FMPP Guidelines.
Rural Energy for America Program Energy Audit and Technical Assistance Grants: On Wednesday, March 11, USDA issued a Notice of Solicitation of Applications (NOSA) in the Federal Register for Rural Energy for America Program (REAP) grants for energy audits and renewable energy development assistance for agricultural producers and rural small businesses. Applications for the grants must be submitted no later than close of business on June 9, 2009. The maximum grant award is $100,000 and parties seeking energy audits under projects funded by the grants must pay 25 percent of the audit costs.
Many non-profit organizations, including several NSAC members, have a solid track record of providing technical assistance to agricultural producers and businesses for energy conservation and renewable energy development. The NOSA, however, limits eligible entities for the grants to state, tribal or local governments, land-grant colleges and universities, or other institutions of higher education, rural electric cooperatives, and public power entities. NSAC and other non-profit organizations emphasized, in comments submitted to USDA on REAP, the successful record of non-profit assistance and urged that the Secretary use the discretion provided in the 2008 Farm Bill to designate non-profits as eligible entities for these REAP grants.
NSAC contacted USDA officials about the omission of non-profits from the NOSA and was given assurances that non-profits will be included in a proposed rule for the REAP grants which will be issued in calendar year 2009, and subsequently will become eligible in the 2010 NOSA.
AFRI Request for Proposals Out: Back in December, USDA issued a “program announcement” with most of the details about the Agriculture and Food Research Initiative (AFRI) competitive grants program for research, education and extension. There was a delay until this week in issuing the actual request for applications (RFA) proposals due to IT problems with the government’s grant website. The full RFA is now available. Over $200 million in total is available, including at least $60 million for projects that integrate research with education or extension.
Please note that some deadlines have changed relative to what was written in the program announcement. Individual national program areas with AFRI have different proposal due dates, ranging from April through August 31. For a full list of national programs, due dates, and national program leaders, click here. Among NSAC’s high priority AFRI national programs are Agricultural Prosperity for Small and Medium-Sized Farms, Managed Ecosystems, Enhancing Ecosystem Services from Agricultural Lands, Markets and Trade, and the classical breeding portion of Plant Genome, Genetics, and Breeding.
USDA Invites Nominations for National Organic Standards Board: USDA is requesting nominations to fill 5 upcoming vacancies on the NOSB: two farmer positions, one retailer position, one handler position, and one environmental position. Each appointment will be for a 5-year term, from January 2010 to January 2015. USDA especially encourages members of minorities, women, and persons with disabilities to apply.
NOSB, established by the Organic Foods Production Act (OFPA) of 1990, is a 15-member board that is responsible for developing and recommending to the Secretary a proposed National List of Allowed and Prohibited Substances and also advises the Secretary on all other aspects of the National Organic Program. More information about submitting a nomination is available here.
EPA NEWS
EPA Issues Draft Inventory of U.S. Greenhouse Gas Emissions and Sinks: On Tuesday, March 10, EPA issued a notice of availability for public review for the Draft Inventory of U.S. Greenhouse Gas Emissions and Sinks from 1990-2007. Public comments on the draft are due April 9, 2009.
The inventory contains estimates of carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride emissions. The inventory also includes estimates of carbon fluxes in U.S. agricultural and forest lands. There is a chapter devoted solely to agricultural emissions.
The technical approach used in this report to estimate emissions and sinks for greenhouse gases is consistent with the methodologies recommended by the Intergovernmental Panel on Climate Change, and reported in a format consistent with the United Nations Framework Convention on Climate Change reporting guidelines. The Inventory is the latest in a series of annual U.S. submissions to the Secretariat for the UN Framework.
A copy of the draft report is posted at EPA’s Climate Change website.
Grant Available to Quantify Carbon Sequestration through Improved Pasture Management: EPA has issued a request for proposals for a demonstration study to quantify changes in soil organic carbon resulting from improved pasture management practices. Eligible entities with experience in implementing soil carbon measurements studies are encouraged to submit proposals. Grant proposals must be received by April 20, 2009. The full announcement with additional information on proposal format is posted here.
Proposed Rule for GHG Emission Reporting Includes Very Large Manure Management Facilities: On Tuesday, March 10, EPA announced it is issuing a proposed rule that would require mandatory greenhouse gas emission GHG reporting under the Clean Air Act by 2011. The only agricultural operations included in the proposal are large manure management systems that emit methane and nitrous oxide in amounts equivalent to 25,000 metric tons of carbon dioxide or more per year. EPA estimates that fewer than 50 large livestock operations will exceed the reporting threshold. Once the proposed rule is published in the Federal Register, there will be a 60-day comment period. A prepublication copy of the proposed rule and additional information is posted on the EPA website.
Get Ready to Partner! NRCS Issues CCPI Request for Applications
Tuesday, March 10th, 2009
Posted by Martha Noble, NSAC’s Senior Policy Analyst
On Tuesday, March 10, the Natural Resources Conservation Service,(NRCS) issued a Request for Applications (RFA) for the Cooperative Conservation Partnership Initiative (CCPI), one of NSAC’s priority issues from the 2008 Farm Bill. The RFA is posted here.
The Initiative provides farmers and ranchers with project-based conservation program funding to participate in projects that enhance conservation outcomes on agricultural and nonforest industrial land.
CCPI project applications must be submitted by April 23, 2009.
In addition, NRCS is taking public comments on the RFA through April 8, 2009.
CCPI Projects: Eligible applicants include federally recognized Indian Tribes, State and local units of government, producer associations, farmer cooperatives, institutions of higher education, and nongovernmental organizations with a history of working cooperatively with producers to effectively address conservation priorities related to agricultural production and nonindustrial private forest land.
NRCS will be drawing only on EQIP and WHIP funding for CCPI funding in FY2009, although the 2008 Farm Bill also provides that fund and acres can be drawn from the Conservation Stewardship Program as well. The CSP portion of CCPI will be available in the FY2010 RFA.
A total of $52.4 million total is available in FY 2009 (until September 30, 2009) for farmers and ranchers to be enrolled in WHIP and EQIP via participation in a CCPI project. The NRCS Chief will control $5.8 million of the funding for national and multi-state projects and the rest will be provided for state level projects.
NRCS will enter into partnership agreements with project applicants selected for an Initiative. Project applicants can identify geographic regions or particular farmers and ranchers whose participation on EQIP or WHIP can enhance the project. State Conservationists can agree to apply the rules of WHIP or EQIP in a flexible manner if it furthers the conservation goals of the project. Partnership project proposals should include requests for specific flexibilities, such as modified ranking systems, payment rates, or design standards.
Let NSAC Know If You Are Applying for Funds for a CCPI Project: NSAC played a leading role in getting the CCPI into the Farm Bill and will continue to track how it is being used in conservation projects that include sustainable and organic farmers and ranchers. Please contact Martha Noble at NSAC, mnoble@sustainableagriculture.net, if your organization is submitting a CCPI project application.
CCPI Public Comments: NRCS is taking public comments on the RFA through April 8, 2009. Public comments will help inform the implementation of the initiative in 2009 and also will be considered as next year’s RFA is developed.
NSAC is preparing an Action Alert and talking points for public comments which we will post next week. Stay tuned! In the meantime, here are some initial reactions.
We are pleased to see that the RFA includes a priority for projects that provide for outreach to, and participation of, beginning farmers or ranchers, socially disadvantaged farmers or ranchers, limited resource farmers or ranchers, and Indian Tribes within the area covered by the agreement, as required by farm bill administrative requirements for all conservation programs.
But we are concerned that State Conservationists are not directed by the RFA to seek advice from State Technical Committees about CCPI projects in the state. State Technical Committees were constructively utilized in many states in developing and ranking projects under the 2002 Farm Bill’s Partnerships and Cooperative Initiative, the precursor to CCPI.
In addition, we are supportive of the inclusion of specific ranking priority for projects that would further the Nation’s efforts with renewable energy production, energy conservation, mitigating the effects of climate change, facilitating climate change adaptation, or fostering carbon sequestration.
However, we are concerned that the RFA does not include a priority for projects which simultaneously provide major conservation and environmental benefits and community and economic benefits. Such win-win green projects advance important common objectives in a cost-effective manner.
Finally, we also note the RFA ignores the CCPI purpose specified in the 2008 Farm Bill of funding innovative conservation practices and delivery methods for specialty crop and organic production/producers. Organic oriented projects should be encouraged and submitted in 2009 and then we will see about getting that specified in the 2010 RFA to be totally clear.
Weekly Update – March 6, 2009
Saturday, March 7th, 2009
ACTION NEEDED!
The EQIP Comment Deadline Fast Approaching: You have until March 16th to tell USDA how to make EQIP work better for sustainable and organic farmers. As the Bush Administration left office, they issued an interim final rule to implement the 2008 Farm Bill changes to the Environmental Quality Incentives Program (EQIP). The interim rule has very substantial problems that need to be fixed. An action alert with four major suggested talking points is available on the NSAC website. We urge all readers and member organizations to respond to the alert and to post the alert to your membership, lists, and blogs. As always, feel free to adapt the alert to your own style and letterhead, or just forward it as is – your choice. Thanks for all you do to stimulate citizen action!
THIS WEEK
FY 09 Appropriations Hanging by a Thread: Last week we reported the House of Representatives passed the omnibus appropriations bill for the fiscal year 2009, with the Senate vote this week. Well, this week just turned into next week, as the Senate could not muster the 60 votes need to reach cloture on the bill before the week came to a close.
A small handful of Democratic Senators have either declared they are voting no or are threatening to, while a small handful of Republican Senators are supporting the bill, but not necessarily supporting the cloture vote that must first be reached in order to get to the vote on final passage.
The lack of action this week necessitated congressional action on a continuing resolution to keep the government functioning through next Wednesday in hopes the Senate will finally pass the bill on Tuesday. Congress passed the new continuing resolution after wading through votes Monday night and a dozen more Republican amendments on Tuesday, many of them message amendments designed to be tough votes politically for conservative Democrats. If any of the amendments pass, the bill will be shut down and another continuing resolution though the rest of the fiscal year will be substituted, forcing all government programs to operate at out of date 2008 levels.
Even after the protracted debate on additional amendments, it is not a sure bet that there will be 60 votes for cloture, so Senator Kennedy has been asked to be in DC and not continue his recuperation in Florida as his vote may be critical to the outcome.
NSAC sent a letter to the Senate this week supporting passage of the bill. As we noted last week, with the sole exception of the Environmental Quality Incentives Program, no farm bill mandatory programs for conservation, rural development, renewable energy, research, specialty crops and organic, and beginning and minority farmers were cut in the bill, despite earlier threats. Many of our priority discretionary programs for sustainable food and agriculture were either level funded at 2008 levels or received small increases.
Flap Over Obama Farm and Nutrition Budget Framework Continues: Following comments by USDA Secretary Vilsack to anti-hunger advocates on Monday, March 2 that seemed to pit farmers against hungry school children, the noise over the Obama budget proposal that in essence pays for $10 billion in increased spending for school feeding programs with a $10 billion cut in commodity program payments reached a fevered pitch this week. At this point, no farm state congressional proponents of commodity program reform are standing with the President and Secretary. In combination with the usual opposition from farm state backers of the status quo and the lack of a full embrace of the proposal by anti-hunger groups, this seems to suggest the proposal is dead on arrival or close to it.
NSAC continues to take a wait and see approach. We remain strongly supportive of one aspect of the Obama proposal, namely the $250,000 per farm per year hard cap on total subsidy payments. We also believe further reform is needed and is possible, though not in the specific formulation provided by the President.
The first step in the process of Congress reauthorizing the Child Nutrition Act this year is the action on the congressional budget resolution. If, as expected, the budget resolution contains a reserve fund of some multi-billion dollar amount to provide for needed increased funding for school feeding programs, there will still be a need to find offsets to pay for the increase before the end of the year. It is not unreasonable to believe that some but not all of those offsets could be from reforms to the commodity programs, particularly from stricter limits on the amounts any one farm operation may receive.
We will also continue to remind the Administration that the ball is in their court, not Congress’s court, on one critical payment reform issue – the regulatory revision to the “actively engaged in farming” rules. Report language accompanying the 2008 Farm Bill instructed USDA to rewrite these rules. The Bush Administration issued an interim rule that made some modest reforms but left the biggest loopholes open. The Obama Administration is now in a position to write final regulations later this year to close the loopholes and thereby reduce mega-subsidies to mega-farms.
Senate Child Nutrition Hearing: On Wednesday, March 4, school and non-school based programs on a panel at a Senate Agriculture Committee hearing presented the need for healthier foods and environments in their communities. Senate Agriculture Chairman Tom Harkin suggested that healthier school lunch programs may be one of the best solutions for disease prevention and nutrition improvement, adding that improved financial reimbursements might be necessary to encourage schools to provide healthier meals. Panel members encouraged the creation of national dietary guidelines and the development of a single encompassing nutrition program instead of several programs to improve efficiency and streamline administrative tasks. Testimony from the hearing can be found at www.agriculture.senate.gov, click on hearings, and then click on March 4.
Senators Call for Farm Foreclosure Forbearance: As homeowners and businesses are struggling in the current economy, farmers across the country are also struggling to keep their homes and farms due to commodity price declines and rising production costs. To help reduce farm foreclosures, Senators Russ Feingold (D-WI), Herb Kohl (D-WI), Kirsten Gillibrand (D-NY), and Sherrod Brown (D-OH) are leading an effort urging the administration to require banks that received federal bailout funds to work with farmers to restructure loans. In a letter to USDA Secretary Vilsack and Treasury Secretary Geithner, the Senators, along with 15 of their colleagues, called for these banks to restructure farm loans, much like conditions being developed for home loans to avoid foreclosure. More than 60 agriculture organizations across the country signed a letter of support.
GAO Testifies on Climate Offsets: On Thursday, March 5, John Stephenson, Director Natural Resources & Environment, Government Accountability Office, testified at a hearing on the role of offsets in climate change legislation before the House Subcommittee on Energy and Environment. The GAO stressed that credible offsets (compensating for greenhouse gas emissions in one place by reductions elsewhere) must be truly “additional” and not just what would be expected under status quo scenarios. The GAO recommended that Congress establish clear rules about the types of projects, including agricultural ones, which can be used as offsets, with a margin for the inherent uncertainty associated with offset projects.
California Low Carbon Fuel Standard: On Thursday, March 4, California regulators issued a proposal to be voted on in April by the state Air Resources Board to restrict greenhouse gases produced by gasoline and diesel fuels. The proposal would force refineries to reduce the carbon intensity of their fuel by 10 percent by 2020 and increasing percentages thereafter. The rule would include indirect land use changes in calculating the total carbon footprint, a move that could potentially change corn-based ethanol from being part of the solution to being part of the problem.
An ethanol trade group released a letter signed by over one hundred scientists criticizing the proposal, but other energy researchers supported the effort. Patricia Monahan with the Union of Concerned Scientists was quoted in the LA Times saying “It’s a complicated issue, but the basic principle is simple. Set a performance standard, let fuels compete in the marketplace to meet the standard, and keep politics from distorting the science. It’s about reducing carbon, not picking winners and losers.”
USDA NEWS
NRCS Extends Application Deadlines for CIG and AWEP: The Natural Resources Conservation Service (NRCS) has extended the deadline for submitting applications for national Conservation Innovation Grants to March 20, 2009. Grants will be awarded through a nationwide competitive process and can range up to three years in length. For more information, see the Conservation Innovation Grant website.
NRCS has also extended the application deadline for the Agricultural Water Enhancement Program to April 1, 2009 and established new ranking criteria for the program – including energy conservation, renewable energy production, mitigating climate change and facilitating climate change adaptation, and carbon sequestration. Those who have already submitted an application to the program may submit a revised application that addresses these new ranking criteria. The extension notice has yet to be posted, but basic information on the program is available here.
Effective Date of Rural Development Guaranteed Loan Interim Final Rule Delayed: On Friday, March 6, USDA’s Rural Development agency announced that the effective date for the Rural Development Guaranteed Loans Interim Final Rule (IFR) is extended until June 1, 2009. The IFR includes the regulations for implementing the 2008 provisions for Business & Industry program loans for local food enterprises and the loan component of the Rural Energy for America Program (REAP). The IFR was issued by the Bush administration on December 17, 2008. The announcement for the extension indicates that Rural Development wants additional time to complete a 60-day review of this last minute Bush administration regulation, a review of “midnight regulations” ordered by the Obama White House.
NSAC submitted comments opposing the IFR because it establishes a confusing two-tiered approach for loan applications and also ignores important components of the programs. The NSAC comments are available here.
Views Solicited on Healthy Urban Food Enterprise Development Center: The Cooperative State Research, Education, and Extension Service (CREES) is soliciting public comments until April 2, 2009 for their new competitive grants program called the Healthy Urban Food Enterprise Development Center Program. The Center, authorized and funded by the 2008 Farm Bill, aims to increase access to healthy affordable foods to underserved communities by awarding sub-grants for feasibility studies. The Center will develop and provide technical assistance and information regarding best practices for processing and marketing locally produced agricultural products and increasing the availability of these products in underserved communities. Instructions for submitting stakeholder comments are available here.
WTO NEWS
EU Imposes Tariffs on U.S. Biodiesel: On Tuesday, March 2, the EU announced that the EU Commission will act next week to impose tariffs on U.S. biodiesel imported into Europe. The tariffs will range from $328 to $511 per ton of biodiesel and will be imposed on biodiesel produced by Archer Daniels Midland, Cargill, Imperium Renewables, Green Earth Energy Fuels, World Energy Alternatives and Peter Cremer North America. According to a report in the International Herald Tribune, the amount of the tariff will vary with the type and amount of biodiesel produced by each company and the estimated amount of subsidies and other support provided to each company by the U.S. government. The EU Commission has the authority to impose a 6-month provisional tariff which could subsequently be extended up to five years.
DULY NOTED
Ecosystem Services Forum: On Thursday, March 5, the World Resources Institute hosted a conference on “Advancing Ecosystem Services Support for Agriculture.” Jim Boyd of Resources for the Future began the program putting forth the central challenge: How can agriculture be pursued in a way that enhances ecosystem services, including wildlife habitat, biodiversity, open space, flood prevention, carbon sequestration, and groundwater recharge? An obstacle to progress in creating efficient markets for environmental services that many speakers pointed out is the lack of extensive data tracking the results of conservation programs, as well as the challenge of quantifying the value of environmental public goods.
Carl Lucero of the USDA’s newly created Office of Ecosystem Services and Markets explained the mission of OESM as promoting conservation and technical assistance, and addressing the backlog of demand for these services. OESM co-sponsors www.ecosystemmarketplace.com, which provides information on market-based conservation programs, and OESM is developing a handbook on environmental credit-trading, which should be available in about a month.
David Primozich provided an overview of his organization, the Willamette Partnership, a non-profit in Oregon working to promote business models that make restoration and stewardship profitable. He explained that existing regulations are too narrowly focused on each of the numerous factors that contribute to ecological quality, and thus fail to capture potential synergies, and may sometimes even work at cross-purposes. He is working to put in place an “integrated multi-credit ecological accounting agency.”
IAASTD Discusses its Assessment of Global Agriculture: On Monday, March 2, the International Assessment of Agricultural Knowledge, Science and Technology for Development (IAASTD) held an event in D.C. to discuss the findings from a three year worldwide assessment of agricultural knowledge and practices. This was the first official presentation of the findings in the United States since the report was published. Dr. Robert Watson, Director of IAASTD, said he thinks the main challenge for sound global food policy now is understanding what small farmers want, and structuring ways to pay them for providing ecological services. More information about IAASTD and the 7-volume report is available at www.agassessment.org.
USDA Agricultural Outlook Forum 2009: USDA held its 2009 Agricultural Outlook Forum on February 26 and 27. USDA Secretary Vilsack gave the keynote address, discussing his own political career in Iowa, and outlining President Obama’s instructions to his agency. Vilsack expressed his concern at the 2007 Census of Agriculture showing shrinking numbers of medium-sized farms, and said he has asked his staff to accelerate the rule-making process for CSP.
A highlight of the Forum was a panel on USDA’s Sustainable Agriculture Research & Education (SARE) program, which featured two farmers that have used SARE grants to support their innovative techniques for sustainable farming. Karl Kupers has transitioned from crop producer to wheat flour marketer, a process stimulated by a SARE grant and fostered by thinking outside the box. Claud Evans has developed innovative techniques for managing pasture-raised goat herds in the difficult conditions of central Oklahoma. With help from a SARE producer grant, Evans initiated a three-year study that compared a variety of techniques to obtain cashmere fiber, and he invented tools to harvest cashmere fiber more efficiently and with less trauma to the goats than conventional shearing provides.
The two farmers together with two educators also on the panel, along with NSAC’s Ferd Hoefner, later had a private meeting with Secretary Vilsack to discuss the SARE program and their individual projects and interests in more detail.
Weekly Update – February 27 2009
Monday, March 2nd, 2009
ACTION NEEDED!
Tell USDA to Make EQIP Work for Sustainable and Organic Farmers: As the Bush Administration left office, they issued an interim final rule to implement the 2008 Farm Bill changes to the Environmental Quality Incentives Program (EQIP). The interim rule has very substantial problems that need to be fixed, and the public comment period ends March 16. An action alert with four major suggested talking points is available on the NSAC website. We urge all readers and member organizations to respond to the alert and to post the alert to your membership, lists, blog, etc. As always, feel free to adapt the alert to your own style and letterhead, or just forward it as is – your choice. Thanks for all you do to stimulate citizen action!
THIS WEEK
Obama Taps Kathleen Merrigan for #2 Spot at USDA: On Monday, we were delighted to learn that President Obama is nominating Kathleen A. Merrigan for USDA Deputy Secretary, the number two position at the agency. Kathleen is a longtime champion of sustainable agriculture. From 1987 to 1992, she was a staff member on the U.S. Senate Committee on Agriculture, Nutrition and Forestry, working for Chairman Patrick Leahy and drafting the National Organic Program legislation, the Sustainable Agriculture Research and Education Program, and Biotechnology Risk Assessment Program, among others. She worked at the Wallace Institute for Alternative Agriculture from 1994 to 1999 and shared offices with the Sustainable Agriculture Coalition. Kathleen is currently an Assistant Professor and Director of the Agriculture, Food and Environment Program at the Friedman School of Nutrition Science and Policy at Tufts University.
FY 09 Agriculture Appropriations Close to Final: This week the House of Representatives passed the omnibus appropriations bill for the fiscal year 2009, with the Senate vote on tap for next week. The omnibus bill, which includes the annual agricultural spending bill plus eight other spending bills, passed in the House 245-178. The Senate vote is still a bit uncertain, even as the March 6 deadline looms. The continuing resolution that the government is currently operating under runs out at the end of the week.
While the House-Senate conference to settle differences between their respective bills was largely finished in December, it was not until this week that the outcomes became public information. A quick rundown on our key programs:
The Women, Infants, and Children (WIC) feeding program received fully adequate funding for 2009, aided by the additional funding provided for it in the stimulus bill. The combined outcome ensures full benefits for the increasing caseload, while reducing pressure on the need to reduce spending for other critical programs.
No mandatory farm bill funding for conservation, rural development, organic, beginning farmers, specialty crops, or renewable energy was cut, with the sole exception of the Environmental Quality Incentives Program. EQIP was cut by $270 million to $1.067 billion. But no cutbacks at all for beginning farmer programs, organic research, CSP, WRP, and other conservation programs, etc.
The Sustainable Agriculture Research and Education (SARE) program received level funding at $19 million, as did the ATTRA program at $2.6 million and Organic Transition Research at $1.8 million. The National Organic Program received most of the increase requested by USDA with a $700,000 increase to $3.9 million.
The Value-Added Producer Grants program kept its $15 million in mandatory spending from the 2008 Farm Bill and received an additional $3.9 million in discretionary appropriations, for a total of $18.9 million. The Rural Energy for America Program (REAP) kept its $55 million in mandatory spending and received an additional $5 million in discretionary funding, for a total of $60 million.
Farm Service Agency farm loan funding for direct and guaranteed lending was all kept level at 2008 levels, despite the accelerating credit crisis. These funding levels are considerably lower than expected demand for loans. The stimulus bill did include $173 million in additional direct operating loan funding, which will provide some cushion, and FSA has the authority to move some of this funding to the farm ownership program, an authority likely to be used since farm ownership funding is under even more pressure than operating loans.
Obama Budget Framework Released: An unusual budget framework — sort of a sneak preview of the full budget request that will be delivered to Congress in early April — was released by the White House on Thursday, February 26. The hottest story in the agriculture portion of the preview was the President’s announcement that he would request legislation to deny direct payments under the farm commodity programs for any farm that grosses more than $500,000 a year and to re-impose a payment cap on loan deficiency payments and marketing loan gains to create a combined payment limit of $250,000 per person per year. The proposal was roundly criticized by many farm state legislators and commodity groups. NSAC took more of a wait and see approach, issuing a press release applauding the President for taking on the issue of subsidy reform but keeping our powder dry on the particulars until the details of the proposal are made public.
The President’s budget also calls for a $5.2 billion cut in crop insurance subsidies to farmers and crop insurance companies, the elimination of cotton storage payments, and a 20 percent cut in the Market Access Program that promotes US farm products overseas.
It is not at all clear that there will be a legislative vehicle for any of these farm bill changes to even be considered in the coming year. Normally changes like these would occur either in the farm bill reauthorization (currently scheduled for 2012) or in budget reconciliation legislation that Congress occasionally undertakes to cut government spending to reduce deficits. During the recession, when Congress is increasing spending to jump start the economy, it would be highly improbable for them to also pursue budget reconciliation.
Elsewhere in the four page USDA budget preview, the President calls for a $1 billion a year increase in mandatory funding for the Child Nutrition and WIC reauthorization legislation that Congress will be working on later this year.
The only USDA program that the President proposes to eliminate is the Resource Conservation and Development (RC&D) program, a hold over from perennial Bush Administration proposals that have been rejected every year by Congress.
In one of the only specific funding proposals named in the brief 4-page presentation, the President proposes a doubling of funding for the budget line items that include the Rural Microenterprise Assistance Program, Value-Added Producer Grants program, ATTRA program, Rural Coop Development Grants, and others. Our expectation is that most of this proposed increase will be for RMAP and VAPG, two NSAC priorities from the last farm bill. USDA Secretary Vilsack backed increases for both programs as part of the recently passed economic stimulus legislation, but Congress did not include that proposal in the final stimulus package. The exact distribution of the proposed added funding will be apparent once the full budget request is released in April.
USDA NEWS
Vilsack on Civil Rights: On February 21, USDA Secretary Tom Vilsack spoke at the Federation of Southern Cooperatives/Land Assistance Fund’s Georgia Annual Farmers Conference in Albany, Georgia, the first farm group outside Washington he has addressed since being sworn in as Secretary on January 21. Vilsack used the speech to announce his intention to seek legislation to elevate the Assistant Secretary of Administration to the level of Under Secretary and to step up efforts to resolve ongoing charges of discrimination in USDA’s administration of its programs and in its hiring and promotion of staff.
Vilsack also briefly highlighted the importance of value-added production, opportunities for agriculture to contribute to reducing and sequestering carbon emissions, and WIC and food assistance programs in the stimulus package. He discussed the recently released agricultural census finding that mid-sized farms are continuing to disappear, and set out a variety of ways the overarching priorities of USDA – a safe, sufficient, sustainable, wholesome food supply; 21st century rural communities; and sound energy and climate change policies – will help guide the Department’s approach to maintaining and increasing the number of mid-sized farms.
Request for Proposals for Ecosystem Services Research and Decision Support Tools: This week a new request for applications was issued jointly by USDA and EPA as part of the Agriculture and Food Research Initiative (AFRI) to support research on the ecosystem services in agricultural settings, including both agroecosystems and ecosystems that are impacted by agriculture, with the goal of quantifying these services, identifying risks due to different stressors, and developing strategies to reduce negative environmental impacts while enhancing ecosystem services provided by working lands. Ecosystem services of interest will be related to climate change, water availability, reactive nitrogen, pests, weeds, invasive species, and soil and land degradation. Proposals for funding are due by May 26. Approximately $4.5 million will be available under this new, first time program.
Stimulus Package Provides for Floodplain Easements: The economic stimulus package recently enacted by the federal government includes $290 million for the Emergency Watershed Protection Program, of which $190 million is for floodplain easements. The Program is intended to assist groups affected by floods, fires, windstorms, and other natural disasters, and is administered by USDA’s Natural Resources Conservation Service (NRCS). Public and private landowners are eligible for assistance, but must be sponsored by a public agency of state, county or city government, or a special district or tribal government. Information on how to apply is available on the NRCS website.
Projects funded under the program have worked to relieve hazards in a wide variety of ways, including purchasing floodplain easements. Floodplain easements protect and maintain the ecological functions of the floodplain, and protect lives and property, while removing land from production that otherwise are often repeat recipients of disaster aid. NRCS may purchase easements on any floodplains that have been impaired within the last 12 months or that have a history of repeated flooding. Landowner applications for the program currently exceed NRCS’s available funding under the stimulus bill, so new applicants probably have only a small chance of getting in on the stimulus money. Application forms and other information on the floodplain easement program are available here.
EPA NEWS
EPA Farm, Ranch & Rural Communities Advisory Committee Meeting: On Monday and Tuesday, NSAC staffer Martha Noble participated in the EPA Farm, Ranch & Rural Communities Advisory Committee meeting in Washington, DC. EPA staff presented information on development of a greenhouse gas emission life cycle analysis for renewable fuels required by the Renewable Fuels Standard provision of the Energy Independence & Security Act of 2007. A member of the EPA Science Advisory Board’s Panel on Reactive Nitrogen provided an overview of the Panel’s draft report on integrative nitrogen. The Committee approved recommendations to EPA, including one asking EPA to provide CAFO operators with more detailed information on measures needed to comply with the Clean Water Act CAFO regulations.
DULY NOTED
Clean Water Network Meeting: This week, NSAC staffer Martha Noble attended the Clean Water Network’s Clean Water Week meeting in Washington, DC. About 90 people from over thirty states attended the meeting. Highlights included keynote speaker Maud Barlow with the Council of Canadians speaking about the harms to society and the environment from privatization of water resources. The Network’s Work Groups met to approve draft work plans for the coming year. Martha serves as a Vice-President of the Clean Water Network and Co-Chair of the Network’s Feedlot Work Group. Contact Martha if you have questions about the Clean Water Network or the Feedlot Work Group.