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Archives for September, 2009

Weekly Update – September 28, 2009

Tuesday, September 29th, 2009

TAKE ACTION

Support the Next Generation of Sustainable and Organic Farmers and Ranchers!  Sign the Petition.  Share the link. In the last Farm Bill, the sustainable agriculture community successfully created the Conservation Reserve Program (CRP) Transition Option.  The option offers incentives to CRP land owners who do not intend to extend or re-enroll their acreage to sell or lease the land to beginning and minority producers using sustainable or organic farming practices at the end of their CRP contract. USDA is planning to delay implementation of the CRP Transition Option for at least two years having swept the program into a CRP wide Environmental Impact Review.  Since 4.3 million acres are expected to come out of the CRP over the next two years, this USDA delay would represent a tremendous lost economic and environmental opportunity.

NSAC has launched a petition demanding that USDA implement the Transition Option now.  Join the hundreds who have already signed.  Circulate our alert and share the link to the petition far and wide.  Let’s speak loud and clear and tell USDA we can’t waste this opportunity.

LAST WEEK

Tweet, Blog, Get a Farm Loan, Calculate Your Caloric Intake: USDA continued with the roll-out of the Know Your Farmer, Know Your Food initiative this week with the launch of a website designed to start a nationwide conversation about farm and food policy. The Know Your Farmer website

has information about 20 grant and loan programs that USDA is promoting to support the development of local and regional food systems, as well alinks to nutrition information, great old USDA pictures, videos of the high points of last week’s Know Your Farmer roll-out, and lots of opportunities to provide feedback.

Agriculture Appropriations Bill Delayed:  Despite rumblings of Congress passing the Fiscal Year 2010 agriculture appropriations bill before the beginning of the new fiscal year on October 1, House and Senate conferees last week approved a Continuing Resolution — which includes agriculture appropriations — to fund government programs through the end of October at the FY 2009 levels.  The Continuing Resolution is piggy-backing on the FY 2010 Legislative Branch Appropriations Bill.  The House passed the combined Legislative Branch bill and Continuing Resolution on Friday, September 25, by a 217-190 margin.  The Senate is expected to vote on the package on Tuesday, just two days before the start of the fiscal year.

While it is likely that the FY 2010 agriculture appropriations bill will be negotiated in conference and brought to the floor in the coming week or two, the bill is competing for attention with the health care legislation and other appropriations bills that have yet to pass through the Senate.  There are indications, however, the House-Senate conference on the agricultural spending bill could take place this coming week.

That cause was helped along by a negotiated settlement, announced Friday, September 25, of the longstanding debate over imports of chicken processed in China.  A ban on the import of Chinese-processed chicken has been in place since 2007 at the insistence of appropriators.  The new deal will allow USDA to do a rulemaking on the terms of imports from China.  Under the terms of the deal reached Friday, USDA is required to increase on-site audits and inspections in China and an increase in port-of-entry inspection in the US.

Still on tap before conferees can meet on the agriculture bill is some greater agreement among key dairy state lawmakers of exactly how emergency dairy money included in the Senate version of the bill should be utilized.

Report on Leafy Green Agreement Hearing:  The first of seven hearings to be held around the country on a proposed new National Leafy Green Marketing Agreement (NLGMA) began in Monterey, CA on Tuesday, September 22 and continued throughout the week.   Several NSAC member groups testified, including the Wild Farm Alliance, California Certified Organic Farmers, and California Alliance with Family Farmers.  Also testifying and helping to coordinate farmer testimony as the National Organic Coalition.  You can watch a video of the proceedings here.

The word from our members and allies is that the hearing was grueling.  Steve Etka was on the stand for the National Organic Coalition for two hours on Tuesday responding to questions from the  proponent group and USDA.  Proponents of the national agreement are the United Fresh Produce Association, Produce Marketing Association, Georgia Fresh Vegetable Association, Texas Vegetable Association, Leafy Greens Council, California Leafy Greens Marketing Agreement, Grower-Shipper Association of Central California, the Western Growers Association and state Farm Bureau affiliates in Arizona, California and Georgia.

NSAC members’ principal objection to the NLGMA is that AMS is an inappropriate agency to take the lead on a measure designed to improve food safety.  AMS does not have a food safety mandate or staff with proper credentials and could face an inherent conflict between promoting and regulating produce.  The NLGMA process requires acceptance of the standards before they are written and a committee structure that does not properly represent small, mid-sized, diversified and organic growers or consumers and a geographic zone breakdown that gives large production states control over the process.

NSAC members also point to the abysmal results of the California LGMA over the past two years in which the “voluntary” Agreement has in effect become a marketing order because of near-universal handler sign on.  The Agreement has not stopped the proliferation of corporate “supermetrics” but has clearly led to the abandonment of important conservation practices that actually increase the safety of product in the field.  See related story in Duly Noted below about the impact of the California LGMA on small and large growers.

Please contact Kate Fitzgerald in the NSAC office if you would like copies of testimony or other information.  The rest of the NLGMA hearings are Jacksonville, FL (Sept 30-Oct 1), Columbus, OH (Oct 6), Denver, CO (Oct 8), Yuma, AZ (Oct 14-15), Syracuse, NY (Oct 20), Charlotte, NC (Oct 22).  More information on hearings is available here.

GAO Investigation of Animal Antibiotic Use Requested:  On Monday, September 21, Representative Louise Slaughter (D-NY), chair of the House Rules Committee, sent a letter  to the US Government Accountability Office

requesting a report on the use of antibiotics in livestock and poultry production.  The letter requested that GAO investigate the status of the federal government’s tracking and monitoring of antibiotic use in animals and the government’s efforts to assess and mitigate human health risks related to antibiotic use in animals.

Earlier this year, Rep. Slaughter introduced the Preservation of Antibiotics for Medical Treatment Act (H.R. 1549)

which would prevent the use of medically important antibiotics for subtherapeutic treatment of livestock and poultry.  At a hearing held by the House Rules Committee this summer, the Food & Drug Administration indicated that it did not have comprehensive information on drugs used in raising farm animals, even though this use raises threats to human health.

THIS WEEK

What’s in a Name?:  On October 1, the Cooperative State Research, Education, and Extension Service is getting a new name:  the National Institute of Food and Agriculture (NIFA).  NIFA will continue the programs and responsibilities of CSREES.  The change from CSREES to NIFA, and the renaming of the agency “Administrator” as “Director,” was required by the research title of the 2008 Farm Bill.

The idea of trying to make CSREES look more like the National Science Foundation was pushed by a well-financed lobbying campaign spearheaded by Dr. William Danforth, Professor Emeritus at Washington University in St. Louis and chairman of the Board of the Donald Danforth Plant Science Center, also in St. Louis and funding heavily by Monsanto.  Those combined forces hired a well known DC agricultural lobbying firm to work for the name change in the farm bill.

Dr. Danforth also chaired a research policy committee made up of university and business representatives that pushed hard several years ago for an increase in the amount of overhead costs that schools and labs can charge against federal agricultural research grants.

NIFA Director Announced:  Just in time for the transition of the Cooperative State Research, Education, and Extension Service to the National Institute of Food and Agriculture (NIFA), the Donald Danforth Plant Science Center announced on Thursday, September 24, that Roger Beachy has been appointed the Director of NIFA.

Since 1999, Beachy has been the Danforth Center’s president.  Beachy also teaches at Washington University, where he has spent most of his professional carreer.  The Danforth Center was a strong advocate for changing the name of CSREES to NIFA in the 2008 Farm Bill.  The Center is located in St. Louis, MO, and partners with several universities and Monsanto on biotechnology research.  Beachy also serves as the President of the International Association for Plant Biotechnology and as a member of the Public Intellectual Property Resource for Agriculture (PIPRA).

Strangely, opposite normal protocol on such matters, the announcement of this particular Presidential appointment was made in St. Louis by the Center and not in Washington by the White House or USDA.  We expect the “after the fact” announcement from the White House this week.

House Agriculture Committee Research Hearing:  On Wednesday, September 30, the House Agriculture Committee will hold a hearing on the implementation of the 2008 Farm Bill Research Title.  USDA Undersecretary Rajiv Shah, a representative of the Association of Public and Land-grant Universities, and a representative of the National Coalition for Food and Agriculture Research are expected to testify.  The hearing will be broadcast on the Committee’s website.

The 2008 Farm Bill saw the inclusion of important new priorities for the largest of the CSREES (soon to be NIFA) competitive grant research program, the Agriculture and Food Research Initiative:  classical plant and animal breeding, rural entrepreneurship, domestic marketing strategies, and renewable energy.  NSAC recently submitted recommendations to the agency about the implementation of these new priority AFRI programs in the upcoming FY 2010 Request for Applications.

Senate Climate Bill Coming This Week:  Senators Barbara Boxer (D-CA) and John Kerry (D-MA) last week confirmed that they will introduce their climate change bill on Wednesday this week.  The bill will be the starting point of the Senate debate on climate change.  The House companion bill, HR 2454, passed in late June.

Boxer, chair of the Environment and Public Works Committee, said EPW markup would follow in the coming weeks.  While EPW will be the main show and go first, the Finance and Agriculture committees will also have a bite at the apple.  Finance will weigh in on the allocation of emission allowances and international provisions, and will likely have its own mark-up.  Agriculture, on the other hand, is not likely to hold its own mark-up but will contribute to the bill’s agriculture-related provisions.  Senator Debbie Stabenow (D-MI), who sits on Finance and Agriculture, is expected to play a significant role among others in brokering the agricultural provisions.

NSAC will be submitting a revised version of its Senate agriculture-related proposals after the Boxer-Kerry bill drops and we have a chance to review it.

USDA NEWS

Fix for Beginning Farmer Value-Added Grants:  This week we have learned that USDA will accept project proposals under the the Value-Added Producer Grant (VAPG) program for group projects (farm coops, businesses, associations, etc.) in which some but not all of the beneficiaries are beginning farmers.

Under the terms of the recently issued Notice of Funding Availability (NOFA) for the VAPG program, USDA had said that VAPG grants under funds specially set-aside for beginning farmer projects had to be 100 percent owned by beginning farmers.  NSAC urged the Department to relax this ruling, pointing out that producer associations and coops would rarely if ever be entirely comprised of beginning farmers.  We pointed out that the intent of Congress in creating the set-aside was to encourage value-added projects not just from individual beginning farmers, but also from farm coops and other groups projects in which a significant number of beginning farmers could participate.

We welcome the new flexibility on the part of the Department and commend its Rural Development division for committing to fixing the NOFA language on this point for the 2010 version next year.

Applications for this round of VAPG funding — $18 million is available, enough for approximately 80 project grants — are due by Monday, November 30.  Awards will be made in early January.  For more information, see the story we ran in the September 1 issue of the Weekly Update.

Conservation Stewardship Program Update:  As of Friday, September 25, with just five days left for farmers and ranchers to submit applications to participate in the Conservation Stewardship Program (CSP) for 2009, nearly 9,000 producers had submitted applications totaling 8.2 million acres plus an unknown additional number of acres, estimated in the 4 million acre range, for applications that do not yet have acreage totals counted.  In other words, the total so far likely exceeds 12 million acres.  For 2009 and each year thereafter, the CSP will enroll 12.8 million acres of farm, ranch, and private forestry land for farmers practicing high level stewardship.

Based on these very preliminary sign-up numbers, it appears that roughly half of total acreage enrolled will be rangeland, with 40 percent or the total representing cropland, and 5 or 6 percent each for pasture and non-industrial private forestland.  To date, the top five states, in order for various categories are as follows:

• Applications:  Nebraska, Texas, Missouri, Minnesota, Iowa – (combined 46 percent of total applications)
• Rangeland: New Mexico, Texas, Nebraska, Montana, Arizona – (combined 76 percent of total rangeland acres)
  
• Cropland: Nebraska, Texas, Illinois, North Dakota, Iowa – (combined 40 percent of total cropland acres)
  
• Pasture: Texas, Missouri, Oklahoma, North Dakota, Montana – (combined 58 percent of total pasture acres)
  
• Forestland:  South Carolina, California, Oregon, Maine, Missouri – (combined 45 percent of total forest acres)
  

To repeat, these numbers are preliminary and will obviously increase further before the September 30 deadline.  Even after the 30th the acreage numbers will still just be estimates until applicants have returned to their NRCS offices and completed the Conservation Measurement Tool that will be the more detailed application and proposal to participate.  The CMT will be used for ranking and payment calculation purposes.

More interesting that rank totals will be learning what percentage of total agricultural land in each state has applied and been enrolled.  We will do those calculations once the sign-up and enrollment are over.  For now, though, we can say that overall there appears to be widespread and even distribution regionally and by state, but can also flag the few states that appear to have unusually low numbers of applications relative to the size of their agriculture.  Those would include California (other than range and forest land), Hawaii, Massachusetts, and Vermont.

NRCS Rolls Out a Mississippi River Basin Initiative: On Thursday, September 24, at the Gulf Hypoxia Task Force Meeting in Des Moines IA, USDA Secretary Tom Vilsack announced a Mississippi River Basin Healthy Watersheds Initiative (MRBI) which will provide about $320 million over the next four years for voluntary projects in priority watersheds located in 12 key states.  The states included are those bordering the Mississippi River, as well as Indiana and Ohio which have been identified by the U.S. Geological Survey as major contributors of nutrients to the Mississippi River.

The Natural Resources Conservation Service (NRCS) will administer the MRBI primarily through its Cooperation Conservation Partnership Initiative (CCPI).  The MRBI will fund projects in which federal, state, and local partners, including non-government organizations, assist farmers to control nutrient pollution in Mississippi River Basin watersheds.  The CCPI was a priority initiative of NSAC in the 2002 and 2008 Farm Bills.  The MRBI funding is in addition to the regular annual CCPI funding allocated to all 50 states.  NRCS has established a website

with detailed information on the MRBI.

New Members Announced to Organic Board:  On Wednesday, September 24, Secretary Vilsack announced five new members to the National Organic Standards Board: Joe Dickson, Certification Director of Whole Foods; Jay Feldman, Executive Director of Beyond Pesticides; John Foster of Earthbound Farms; Wendy Fulwider, organic farmer from Wisconsin who has worked on organic animal standards; and Annette Riherd, organic farmer from Oklahoma and advocate for buy fresh/buy local.  Each of the new members will begin their five-year terms on the Board on January 24, 2010.

Funds Available for Community Food Projects:  USDA issued the Request for Applications for the Community Food Project Grants (CFP) on Wednesday, September 23.  The RFP is not listed in the Federal Register and there was no USDA press release but full information can be found here.

This year CFP will be awarding approximately $5 million in grants for projects that offer long term solutions by increasing community food security while supporting economically, socially and environmentally sustainable local and regional food systems.  Applications are due on November 19, 2009.

FMPP Call for Reviewers:  Just last week USDA announced the recipients of this year’s round of Farmers’ Market Promotion Program (FMPP) grants, but already program staff are looking for reviewers for the 2010 applications.  This year there were 498 applications of which 86 were funded for a total of $4.7 million.  USDA is expecting that applications will continue to be high so are anticipating needing at least 63 reviewers.  If you are interested please contact FMPP Program Leader Carmen Humphrey at Carmen.Humphrey@usda.gov.

EPA NEWS

Groups File Petition with EPA to Increase Regulation of CAFO Air Pollution: The Humane Society of the United States took the lead in filing a legal petition on behalf of numerous environmental and animal welfare groups that would put concentrated animal feeding operations (CAFOs) on the same footing as other industries subject to the Clean Air Act.  The petitioners estimate that about 100-200 CAFOs release enough pollutants to require Clean Air Act regulation.  The petition provides scientific and legal information about the emissions of methane, nitrous oxide, hydrogen sulfide and ammonia and possible negative effects on human health and the climate.

EPA Issuing Rules for GHG Reporting in Face of Attempts in Senate to Exempt Livestock:  On Tuesday, EPA Administrator Lisa Jackson signed off on regulations that will require large emitters of greenhouse gases (GHGs) to collect and report data on their GHG emissions.  The reporting period starts in 2010 with the first reports due 2011.

EPA has estimated that for the agricultural sector only the very largest confined animal feeding operations, about 100 operations, will be required to report emissions under the regulations.  Information on the new reporting system and requirements is posted here.

The regulations as applied to livestock emissions are under challenge in Congress.  On Thursday, by a vote of 77-21, the Senate passed an FY2010 Interior-EPA Appropriations Bill which includes an amendment that would prevent the EPA from regulating greenhouse gasses generated by livestock production in FY2010.  In addition, Senators John Thune (R-SD) and Chuck Schumer (D-NY) are co-sponsoring S. 527, permanent legislation that would prohibit Clean Air Act permits for any carbon dioxide, nitrogen oxide, water vapor, or methane emissions resulting from biological processes associated with livestock production. The bill currently has 13 co-sponsors.

Jackson’s Letter to Senator Harkin on Indirect Land Use Changes and GHGs:  Another EPA greenhouse gas (GHG) regulation arose in the FY2010 Interior-EPA appropriations debates – the method for evaluating greenhouse gas emissions of renewable fuels which is included in a proposed EPA regulation for the Renewable Fuel Standards (RFS2) in 2010.  EPA’s proposed rule includes calculating indirect land use changes arising from biofuel production when land for food production is used for fuel production.  The comment period on this proposed RFS2 regulation closed on Friday.

Senator Tom Harkin (D-IA) and six other Senators had proposed an amendment to the Senate’s FY2010 Interior-EPA Appropriations bill that would have blocked EPA from spending funds in FY2010 on any RFS2 greenhouse gas formula that included emissions from international indirect land use changes.  Senator Harkin withdrew the amendment after receiving a letter from EPA Administrator Lisa Jackson with assurances that the final regulations for RFS2 would reflect scientific uncertainties in measuring indirect land use changes from renewable fuel production.

EPA Launches TMDL Program Results Analysis Website:  EPA has developed a new website to communicate information about the Clean Water Act’s Total Maximum Daily Load (TMDL) Program results to technically specialized audiences, including conservation districts, TMDL developers, state water programs, academia and other state and federal agency programs.  The TMDL Program Results Analysis Project is a multi-year effort directed at measuring and analyzing programmatic and environmental results of the program.  Under the TMDL process, an accounting is made of pollutants from both point source and nonpoint sources, including agricultural runoff.  The ultimate goal is to engage point source and non-point source polluters together in efforts to control pollution.

Over 37,000 TMDLs have been developed, and this project seeks to improve understanding of TMDL-specific program results patterns and explain these patterns.  The website provides a Clean Water Act Impaired Waters Program Pipeline navigation feature; fact sheets; EPA reports and websites; EPA grantee reports and websites; publications; and datasets related to this effort.

WTO NEWS

Isi Siddiqui Named Chief Ag Trade Negotiator:  Last week President Obama named Islam (Isi) Siddiqui the agricultural negotiator for the Office of the U.S. Trade Representative.  Siddiqui is currently vice president for science and regulatory affairs for CropLife America, the major agrichemical and biotechnology trade association and lobbying firm.  Previously CropLife’s vice president for ag biotechnology and trade, the Indian-born Siddiqui served as Under Secretary for Marketing and Regulatory Programs and as senior trade advisor to the Secretary in the Clinton Administration’s USDA.

DULY NOTED

Climate Offsets on Smaller and High-Tenure Farms:  USDA’s Economic Research published a short economic policy brief on carbon offsets and land tenure on Wednesday, September 23.  The researchers conclude that high tenure farms (those with a high proportion of land owned by the operator) are more likely to benefit from the carbon offset market than low tenure farms, given the long term nature of carbon offset contracts and the short term nature of farmland leases.  High tenure farms tend to be smaller farms and tend to be more engaged in livestock production and also more likely to be enrolled in the Conservation Reserve Program than low tenure, larger farms.  The authors speculate that high tenure farms may be more likely to agree to convert cropland to grass-based agriculture, an activity with much greater carbon benefits than alterations in cropping practices.

Food Safety Research Brief on California LGMA: A new program brief by researchers at the University of California – Davis finds that the cost of complying with the California Leafy Greens Marketing Agreement is much higher for small and large farms relative to mega farms. “Growers’ Compliance Costs for the Leafy Greens Marketing Agreement and Other Food Safety Programs” written by Shermain Hardesty and Yoko Kusunose concludes that very large farms with revenues over $10 million were more able to absorbe the costs of complying with the California LGMA and other food safety provisions — $8.29 per acre — versus large farmers with revenues between $1 and $10 million who face a cost of $18.05 per acre and small farms with revenue under $1 million whose costs average $14.82 per acre.

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Weekly Update – September 21, 2009

Tuesday, September 22nd, 2009

TAKE ACTION

NSAC’s new Farmers’ Guide to the Conservation Stewardship Program is here! The farmer-friendly guide to the new Conservation Stewardship Program is now available!  Download a copy and share widely.  The guide is also available on the homepage of the NSAC website.

First Conservation Stewardship Program Sign up Ends September 30th: Time is running out to be a part of the first sign up for the new Conservation Stewardship Program (CSP).  Farmers must take the first step in the application process by submitting a basic application with their local Natural Resources Conservation District by September 30th.   The CSP will make payments to farmers for maintaining existing conservation practices and for adopting additional practices on cropland, grassland, improved pasture, rangeland and non-industrial private forestland.  Payment will also be made for adopting resource conserving crop rotations.  A NSAC alert  is posted here.

NSAC members, the National Center for Appropriate Technology (NCAT) and the Organic Farming Research Foundation have posted a wealth of information for producers on their Websites.

NCAT and the Center for Rural Affairs are also providing phone-based sign up assistance to farmers.  Call the Farm Bill Helpline at the Center for Rural Affairs at (402) 687-2100.  The NCAT number is 1-800 346-9140 (English) or 1-800-411-3222 (Spanish).

LAST WEEK

“Know Your Farmer, Know Your Food” Campaign Launched! Last week, the much anticipated USDA campaign to ‘begin a national conversation’ about local and regional food systems’ contribution to health and economic development began with a series of funding announcements and special presentations by Secretary Tom Vilsack, Deputy Secretary Kathleen Merrigan, and other USDA subcabinet officials.  ”Know Your Farmer, Know Your Food,” as the campaign is called, is chaired by Deputy Secretary Merrigan and is also the focus of a task force of representatives across USDA who are responsible for raising the profile of, and creating synergies between, existing USDA programs that support the development of local and regional food systems.  Over time, the task force’s analysis of gaps in federal program support will help inform the creation of future programs to aid the rebuilding of infrastructure necessary to ensure that people have access to healthy food grown by producers in their region.

Last week’s launch was punctuated by a series of funding announcements that total $65 million for several programs that can provide support for regional food systems as well as announcement of $50 million a year from the DOD Fresh program to support local and regional food purchases for school cafeterias.  See the first set of stories below under ‘USDA NEWS’ for more information on the specific funding announcements that span rural development, risk management, marketing, and research.

NSAC issued two press releases during the Know Your Farmer roll-out, one on meat labeling and marketing and one on school food purchases from local and regional farmers.

News from New Senate Ag Chair’s First Week:  Last week, Senator Blanche Lincoln (D-AR) became the new chair of the Senate Agriculture Committee.  Among other news this past week:

* Lincoln announced on Friday, September 11 that Robert Holifield will serve as Staff Director to the Committee.  Holifield served as the agriculture staff person in her office from 2000-2007 and then moved on to serve as Deputy Chief of Staff for the Commodity Futures Trading Commission.

* Lincoln addressed the annual legislative conference of the National Cattlemen’s Beef Association on Tuesday, September 15, reiterating her opposition to the House-passed cap and trade climate legislation and suggesting she would not support cap and trade in the Senate.  She also spoke in support of reducing federal estate taxes, suggested she would not support Clean Water Restoration Act (a bill reported out of the Environment and Public Works Committee which seeks to reverse the narrowing of the Act by a narrowly divided Supreme Court), reiterated her opposition to Bush Administration proposals to scale back US commodity subsidies in global trade talks, and advocated for ending the Cuba trade embargo.

* Lincoln announced the formation of an Arkansas Nutrition Advisory Committee during a conference call on Wednesday, September 16 with nutrition and hunger advocates in her home state.  On the call she indicated her intent to pass a temporary extension of the Child Nutrition Act, which expires at the end of September, in the near future.  Earlier in the week, Lincoln and Senator Dick Lugar (R-IN) joined Senator Pat Leahy (D-VT) in receiving the National Restaurant Association’s Congressional Leadership Award for efforts to fight hunger.

THIS WEEK

Agriculture Appropriations Bill Likely to Pass on Schedule:  As one of only five of the twelve appropriations bills to have passed both the House and the Senate, the final 2010 agriculture appropriations bill seems likely to pass before the beginning of the new fiscal year on October 1.  Senate and House staff have been working to reconcile their differences and preparing for Agriculture Appropriations Subcommittee Members to meet for conference.  If they are to meet the October 1 deadline, the agriculture conferees will need to meet either late this week or likely at the beginning of next.  All the spending bills that are not going to be passed by October 1 will become part of a continuing resolution that Congress will also need to pass before October, extending spending at current levels for an additional month or so to give themselves more time to finish the process.

USDA NEWS

Conservation Stewardship Program Update:  As of last week, the 2009 sign-up for the Conservation Stewardship Program (CSP) has exceeded the 4 million acre level.  The truncated sign-up, which started August 10 and ends September 30, has the potential to enroll 12.8 million acres.  Farmers who still want to enroll need to get the initial, short application form into their local Natural Resource Conservation Service (NRCS) office by September 30 and then return in October to fill out the CSP Conservation Measurement Tool.

NRCS announced last week that farmers who do not currently have USDA Farm Service Agency farm record numbers and who must obtain them to enroll in CSP will now have until the end of October, instead of the end of September, to obtain them from their local FSA office.

After this first, short sign-up for the 2009 version of CSP, all future sign-ups will be year long rather than just weeks long.  The 2010 sign-up officially starts October 1, though with much to do to bring the 2009 enrollment to fruition, it is likely better for farmers to wait a few months into the new fiscal year to give NRCS staff a chance to catch up.

The public comment period on the CSP Interim Final Rule, originally scheduled to end on September 28 will now be extended for one month, until October 28.  Readers will see more attention to the comment period once October arrives.

We are very pleased to announce that following a re-examination of environmental benefit scoring, two CSP ehancement practices eligible for payment have moved up from the bottom half of the list of enhancements by environmental benefit ranking to the very top of the list.  Those two enhancements are the planting of mixed species perennials for biomass and wildlife habitat and the conversion of cropped land to grass-based agriculture.  Other top ranking practices include continous cover cropping, resource-conserving crop rotation, continuous no-till with residue management, and transition to organic cropping or livestock systems.  NSAC has requested several additional changes to the list and is awaiting word from NRCS.

Program Awards and Other Initiatives Announced in Conjunction with “Know Your Farmer, Know Your Food”:  Last week, the Department of Agriculture announced the following program awards and rulemaking during their rollout of “Know Your Farmer, Know Your Food” campaign.       

New USDA Initiative to Help Schools Purchase Local Food:  On Tuesday, September 15, Deputy Secretary Merrigan and Food and Nutrition Service Administrator Julie Paradis, announced a new set of steps to link local farmers with school meal programs.  In their announcement, Paradis said the USDA would provide an additional $50 million a year through the Department of Defense (DOD) “Fresh” program that is administered by USDA to help schools purchase local food.  USDA will clarify food procurement rules so that a wider range of locally, minimally processed foods can be purchased by schools.  Finally, the Food and Nutrition Service and Agricultural Marketing Service of USDA will work together to form “tactical teams” to help school administrators design programs to facilitate local purchasing.    

Rural Cooperative Development Grants Awarded:  On Tuesday, September 15, Deputy Secretary of Agriculture Kathleen Merrigan announced the award of $4.8 million in rural development grants.  Twenty-eight organizations in 21 states will receive funding from USDA Rural Development’s Rural Cooperative Development Grants (RCDG) program that can be used by regional cooperative development centers to provide technical assistance in developing new business cooperatives or strengthening existing ones.  In an example of how the RCDG program can help local and regional food development, the Ohio State University Research Foundation received a $200,000 grant to help manage a statewide farmer’s market cooperative.  In Pierre, South Dakota, the Value-Added Agriculture Development Center will be using their $200,000 award to educate farmers, consumers and lenders on how to take advantage of the numerous benefits of value-added agriculture.
Proposed Rule for Interstate Shipment of Meat and Poultry Products: Also on Tuesday, September 15, the Food Safety & Inspection Service (FSIS) issued a proposed rule to implement the 2008 Farm Bill’s Section 11015 provision for the interstate shipment of state inspected meat.  The provision, supported by NSAC, establishes a new voluntary cooperative program under which State-inspected establishments with 25 or fewer employees will be eligible to ship meat and poultry products in interstate commerce.  The state-inspected establishments must comply with all federal standards and state standards.  State inspectors will be trained and supervised by federal personnel to enforce the federal standards.  The products from the establishments will be eligible to receive the federal mark of inspection.  Comments on the proposed rule are due November 16, 2009; we will be sharing some thoughts on the proposed rule with readers later this fall.

Community Food Project (CFP) Grants Awarded: On Wednesday, September 16, USDA announced the award of $4.8 million in FY 2008 Community Food Project grants to twenty-one projects in 14 states.  The Cooperative State Research, Education, and Extension Service administers the program which is intended to fund projects in low-income communities to increase access to healthy food.  Many of the projects provide a direct link between local farmers and low-income communities.

Congratulations to NSAC member Florida Organic Growers for being among the grantees!A complete list of funded projects is posted here.

Farmers Market Promotion Program (FMPP) Grants Awarded:  At the opening of the Fresh Farm Market on Vermont Avenue near the White House on Thursday, September 17, Agriculture Secretary Tom Vilsack, accompanied by First Lady Michelle Obama, announced the recipients of the FY 2009 Farmers Market Promotion Program (FMPP) grants.  Eighty-six grants totaling $4.5 million were awarded to support and enhance farmers markets, CSAs, and other direct producer-to-consumer marketing opportunities across the country.  The FMPP was an NSAC-initiated idea that was incorporated into the 2002 Farm Bill and received mandatory funding in the 2008 Farm Bill.

One highlight of the FMPP is increasing the availability of fresh, local fruits and vegetables to low income consumers.  Over one-third of the 86 new grants will promote the use of Electronic Benefit Transfer (EBT) technology so farmers can sell directly to people receiving federal food assistance.  By bringing farmers markets to low income neighborhoods, USDA hopes to improve health and nutrition and fight childhood hunger in economically distressed communities. Congratulations to NSAC members Delta Land and Community, Center for Rural Affairs, and Michigan Food and Farming Systems (MIFFS) on their awards!  Other grantees include Minnesota Food Association, Maine Organic Farmers and Gardeners Association, NOFA-VT, National Bison Association, Appalachian Sustainable Agriculture Project, and Appalachian Sustainable Development.  The full list of FY 2009 FMPP recipients is here.

USDA, in conjunction with the General Services Administration, also issued a new guide book on how to open farmers markets on government property.  The book includes information on insurance, parking, utilities, and security and includes successful case studies.  To download a copy, go to www.ams.usda.gov/MarketingServicesPublications.

Risk Management Agency Partnership Agreements Announced:  On Thursday, September 17, Deputy Secretary Merrigan announced $8.6 million in Risk Management Agency (RMA) Partnership Agreements to provide training to underserved, small, beginning, and limited-resource producers, including but not limited to training to diversify their production and marketing practices and be better able to take advantage of the growing demand for locally and regionally-produced agricultural products.

Awards were made under three programs:  Crop Insurance Education in Targeted States ($4.5 million), Community Outreach and Assistance ($3.4 million), and Risk Management Educational Sessions ($0.7 million).  NSAC played a major role in securing the funding for these programs in 2000 and in fighting off major cuts to the programs in 2008.

Congratulations to the following NSAC members on their new grants:  California Farmlink, Ecological Farming Association, Georgia Organics, Henry A. Wallace Center, Land Stewardship Association, Michigan Food and Farming Systems (MIFFS), Michigan Land Use Institute, Midwest Organic and Sustainable Education Service (MOSES), and National Center for Appropriate Technology.  Congratulations also to the Southern Sustainable Agriculture Working Group, Federation for Southern Coops, Rural Coalition, Community Food Security Coalition, Southwest Marketing Network, NY SAWG, Hispanic Farmers & Ranchers Association, Growing Power, and many others!  A complete listing of Partnerships is here.

Research Funds to Study Northeast Local Food Systems:  Also, on Thursday, September 17, Secretary Vilsack announced $200,000 in funding to USDA’s Agricultural Research Service (ARS) and $30,000 to Tufts University for an ongoing study exploring the capacity of the Northeast to produce enough regionally-grown food to meet market demands.  Vilsack tied the need for research on local foods to the need to decrease the distance food travels from farm to table, and said that these studies would give “important insights into how we build and sustain local production systems elsewhere in the United States and abroad.”  ARS is currently collecting data to create a model to use in the calculation of crop potentials in the Northeast.  The project is the focus of an article in the current September issue of ARS’ Agricultural Research magazine.
Brief in Support of Farmers Filed in Wheeler Case:  The National Sustainable Agriculture Coalition joined with 53 other organizations on a friend-of-the-court amicus brief filed in the appeal of the case Wheeler v. Pilgrim’s Pride Corporation to the U.S. Court of Appeal for the Fifth Circuit.  The trial court in the case decided Pilgrim’s Pride had violated the Packers & Stockyards Act by using a formula to pay Mr. Pilgrim for his chickens that provided higher pay than the formula used to pay the plaintiff chicken growers.  The trial court refused to dismiss the lawsuit based on the claim of Pilgrim’s Pride that the farmers must show that the action hurt competition throughout the poultry sector even though the farmers had shown individual harm.  A 3-judge panel of the Fifth Circuit upheld the trial court’s refusal to dismiss the lawsuit.  Pilgrim’s Pride then requested a rehearing en banc, with all the judges of the Fifth Circuit.  The amicus brief supports the position of the plaintiff farmers that under the Packers & Stockyards Act they do not need to show that violation of the Act, which harms them, also harms competition throughout the poultry industry.  David Balto and Professor Peter C. Carstensen prepared the brief.

National Organic Program Gets New Director, Elevated Status:  On Thursday, September 17, Secretary Vilsack announced that Miles McEvoy will serve as the new Deputy Administrator of USDA’s National Organic Program (NOP).  McEvoy hails from Washington, where for 20 years he has led the Washtingon State Department of Agriculture’s Organic Food Program, one of the country’s first state organic certification programs.  Highlights from his career include helping to establish and currently serving as President of the National Association of State Organic Programs, helping state Departments of Agriculture develop state certification programs, and being the founding Director of The Food Alliance.

In his announcement, Vilsack also announced that NOP will become an independent program area within AMS with increased funding and staffing, and stated that “organically grown and marketed agricultural products are of key interest to the Obama Administration.”

EPA NEWS

Obama Administration Draft Reports Gives EPA the Lead in Stemming Chesapeake Bay Nutrient Pollution: On Thursday, September 17, federal agencies released seven draft reports on key challenges to Chesapeake Bay Restoration and Protection that focus heavily on reducing nutrient pollution to the bay from all sources, including agriculture.  In May, President Obama issued an Executive Order to the agencies to develop a strategy for protecting and restoring the Bay.  The draft reports are the first step, with preliminary recommendations.  The Federal Leadership Committee will use the reports to prepare a draft coordinated strategy which will be released, with final versions of the reports, for public comment in November.  The Administration intends to finalize the strategy in May 2010 but has indicated that some agencies can go forward with actions before the strategy is final.

The EPA is given the lead role in the strategy and has announced, without details, that it will be expanding its regulation of concentrated animal feeding operations (CAFOs).  In addition to agricultural sources of pollution, the report emphasizes the contribution of stormwater runoff from cities and suburbs to nutrient loading in the Bay.

The draft reports and additional information are available on the Chesapeake Bay Executive Order homepage.

Also on Thursday, EPA also issued notice and a request for comments on the development of a new Clean Water Act Total Maximum Daily Load (TMDL) process for addressing nitrogen, phosphorus and sediment pollution in the Chesapeake Bay.  This regulatory tool requires an assessment of both point and non-point sources of the pollutants and the adoption of measures to control levels of these pollutants that impair water quality in the Bay.  The EPA is under court orders to complete the TMDL by May 1, 2011.  Comments on the notice to prepare the TMDL must be submitted by December 18, 2009.

EPA and Department of Transportation Propose New Standards for Cars and Trucks Based on Greenhouse Gas Emission Limitations: On Tuesday, September 15, the EPA and Department of Transportation announced a proposal for new regulations to reduce greenhouse gas (GHG) emissions and improve mileage of cars and other light duty vehicles.   The proposal will be open for public comment after it is published in the Federal Register.  The proposal is the first set of restrictions on GHG emissions based on authority in the Clean Air Act, authority which could be voided by pending climate change legislation.  But reports in the past few weeks indicate that congressional action on climate change could well be delayed until next year.

DULY NOTED

Who’s That in the Hairnet? In one of the many public events during last week’s “Know Your Farmer, Know Your Food” debut, Deputy Secretary Merrigan assisted White House chef, Sam Kass with serving a specially-prepared healthy lunch at the USDA cafeteria.  Sam Fromartz, author of Organic, Inc., caught the moment on film and writes about it on his blog Chews Wise.  

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Weekly Update – September 14, 2009

Monday, September 14th, 2009

TAKE ACTION

First Conservation Stewardship Program Sign up Ends September 30th: Time is running out to be a part of the first sign up for the new Conservation Stewardship Program (CSP).  Farmers must take the first step in the application process by submitting a basic application with their local Natural Resources Conservation District by September 30th.   The CSP will make payments to farmers for maintaining existing conservation practices and for adopting additional practices on cropland, grassland, improved pasture, rangeland and non-industrial private forestland.  Payment will also be made for adopting resource conserving crop rotations.
An NSAC alert  is posted here.

NSAC is producing a guide book on the CSP that will be available soon.  NSAC members, the National Center for Appropriate Technology (NCAT) and the Organic Farming Research Foundation have posted a wealth of information for producers on their Websites.

NCAT and the Center for Rural Affairs are also providing phone-based sign up assistance to farmers.  Call the Farm Bill Helpline at the Center for Rural Affairs at (402) 687-2100.  The NCAT number is 1-800 346-9140 (English) or 1-800-411-3222 (Spanish).

CSP Comment Period Extended:  USDA’s Natural Resoruces Conservation Service is about to announce that the original September 28 deadline for public comment on the Conservation Stewardship Program interim final rule is being extended to October 28.  NSAC had requested the month extension so that the 2009 sign-up for CSP, which ends September 30, could be finished before comments are due.  NSAC has action materials, including talking points, for the comment period on our website for those who want to respond now, and then we will be back with updated materials at the beginning of October.

SARE Letter Delivered:  On Monday, September 14, NSAC will be delivering a letter to the offices of Agriculture Appropriations Subcommittee Chairs Rep. Rosa DeLauro (D-CT) and Senator Herb Kohl (D-WI) urging them to maintain the increase in funding for the Agriculture and Food Research Initiative (AFRI) that was in the Senate-passed Appropriations bill and to adopt a conference position of raising competitive grants programs equitably, including $25 million for the Sustainable Agriculture Research and Extension (SARE) program and $5 million for Organic Transitions program.

LAST WEEK

Harkin Takes HELP, Lincoln In as Ag Committee Chair:  In a rapid-fire series of events last week, Senator Chris Dodd (D-CT), next in line to take over the chairmanship of the Health, Education, Labor and Pensions (HELP) Committee from the late Senator Ted Kennedy, decided on Monday night to stay with the Banking Committee he currently chairs instead of making the widely-anticipate shift.  That opened the door to Agriculture Committee Chair Tom Harkin (D-IA), next in line on HELP, to seize the coveted position, and by Tuesday afternoon, Harkin became the new HELP chairman, throwing the Agriculture Committee to Senator Blanche Lincoln (D-AR).  While not next in seniority, all of the Senators ahead of her would have had to give up other chairs to take Agriculture and, as expected, none of them made that trade.

Lincoln becomes the first female chair of the Committee.  Harkin remains as a member of the Committee and his Committee staff is expected to stay through at least a brief transition period while Lincoln hires her new committee staff.

PAMTA Letter Delivered to the White House and Senate:  On Wednesday, September 9, a group of family farm and sustainable agriculture advocates, including NSAC, delivered a letter to the White House and to the Senate calling for restrictions on the unnecessary use of antibiotics in raising food animals.  The Preservation of Antibiotics for Medical Treatment Act of 2009 (”PAMTA”) (HR 1549 and S 619) would amend the Federal Food, Drug, and Cosmetic Act to withdraw the approval of seven specific classes of medically important antibiotics.

THIS WEEK

Clarity for Meat Labels on the Horizon? On Monday, September 14, USDA’s Food Safety and Inspection Service (FSIS) issued an advanced notice of proposed rulemaking (ANPR) to seek input on what conditions should be met for use of the “natural” meat label claim for livestock and poultry products.  A previous 2006 ANPR led to a good deal of public comment but no consensus.

Comments may address how best USDA can coordinate between the FSIS “natural” label and the Agriculture Marketing Service’s (AMS) voluntary “naturally raised” marketing claim standard (see story below).  The FSIS natural label concerns meat processing, whereas the AMS naturally raised claim concerns animal raising considerations.  Both labels have problems in their own right, and the combination of the two leads to major consumer confusion.

FSIS will continue to apply its current “natural” label — which essentially means no artificial ingredients are added and the product is only minimally processed — during the comment period.

Comments are due by November 13, 2009.  More information is at the FSIS site.

Reprieve on Naturally-Raised Meat Label:  On the last day of the Bush Administration, the Agricultural Marketing Service promulgated a final version of a naturally-raised livestock label that was strongly opposed by sustainable agriculture and consumer organizations.  While final, the new label did not become effective due to a missing step in the rulemaking process in the rush to get it out before the previous Administration ended.

Since then, NSAC and other groups have been calling on the Obama Administration to take steps to revoke the proposal, noting that the label claim standard was confusing to consumers and potentially damaging to sustainable livestock farmers and ranchers.

With the announcement of a new advanced notice of proposed rulemaking for the Food Safety Inspection Service’s natural label (see story above), USDA is holding the naturally-raised label claim in abeyance at least until the public has a chance to comment on possible changes to the natural label.  During the comment period on the natural label, the public is also invited to comment on whether or not to have a naturally-raised label.

Look for public comment materials from NSAC in the coming weeks on this important turning point in the battle over meat labeling and its impact on sustainable livestock production.

Interstate Shipment of State-Inspected Meat:  In another breaking meat story, USDA Secretary Tom Vilsack is expected to announce on Monday, September 14, that new proposed rules for the interstate shipment of state-inspected meat will be published later in the week.  If this 2008 Farm Bill provision is effectively implemented, it could be an important improvement for small and mid-sized ranchers who will be able to expand their markets beyond state borders.  NSAC will publish more information about the proposed rule as it becomes available.

“Know Your Farmer, Know Your Food” Unveiled: As mentioned in last week’s Update, USDA will be unveiling the “Know Your Farmer, Know Your Food” Initiative this week-a new campaign that emphasizes vibrant local and regional food systems.  Starting on Monday, September 14, each day will have a different theme underscoring the importance of regional food system development: Monday will focus on “Rural Revitalization” and economic development, Tuesday will focus on “Farm to Institution” (including Farm to School programs), on Wednesday the focus is “Healthy Eating” and will include a celebrity chef cooking at USDA, Thursday will focus on “Direct Marketing” and will be the day the White House launches its own farmers market in downtown D.C., and Friday the theme is “Ag is Back!” and will be the launch for the new USDA website and a live facebook chat with Deputy Secretary Kathleen Merrigan.

USDA NEWS

Obama Nominates New Under Secretary for Natural Resources and the Environment:  On Thursday, September 10, President Obama nominated Harris Sherman as USDA Under Secretary for Natural Resources and Environment (NRE).  The NRE mission area includes the Forest Service and the Natural Resources Conservation Service.  An earlier nomination for the top slot resigned before taking office, leaving the position open until now.

Sherman is the Executive Director of the Colorado Department of Natural Resources.  Previously he has served on the Colorado Water Quality Control Commission, Colorado Mined Land Reclamation Board, and Denver Regional Air Quality Council and was also Commissioner of Mines.  His nomination has been long rumored, but of several persons rumored to be in the running for the position, he was the least favored candidate of several national conservation and environmental organizations.

November NOSB Meeting Announced:  The next meeting of the National Organic Standards Board (NOSB) will occur in Washington, DC, on November 3-5.  Requests from individuals and organizations wanting to make oral presentations, as well as comments on proposed NOSB recommendations, are due by the close of business on October 19.  At the November meeting, the NOSB will begin and conclude a series of substance reviews, will present its recommendation for rule change on various definitions and the use of nanotechnology in organic standards, and will present recommendations on the development of more specific standards for the improvement of animal welfare, among other agenda items.  The meeting is open to the public and includes time for public presentations.  For meeting and agenda information, and for instructions on submitting comments and request for presentation time, click here.

ERS Updates Organic and Climate Change Briefing Rooms:  USDA’s Economic Research Service has updated two of its briefing rooms – the organic briefing room and the global climate change briefing room.  Check them out for updated material!

DULY NOTED

New Food Safety Report:  On Thursday, September 10, the Institute for Agriculture and Trade Policy and Food and Water Watch released an excellent new food safety report, “Bridging the GAPS: Strategies to Improve Produce Safety, Preserve Farm Diversity and Strengthen Local Food Systems.”  Written by Elanor Starmer and Marie Kulick, the report is a welcomed addition to the public discourse as Senator Tom Harkin (D-IA), incoming Chairman of the Senate Health, Education, Labor and Pensions Committee and other committee members consider food safety legislation (S. 510), and the Agricultural Marketing Service (AMS) of USDA holds hearings on a proposed national Leafy Greens Marketing Agreement.

PFI Featured in Documentary for CNN:  This fall, citizen journalist, Neil Moore, is paddling a canoe down the Mississippi River and documenting his visits with everyday Americans along the way.  Videos and blog posts capturing Moore’s journey will be shown on CNN.  On September 2, Moore visited a Practical Farmers of Iowa field day at Greg Koether’s farm in McGregor, Iowa.  Moore also sat down to interview Ryan and Kristine Jepsen as well as Greg Koether and his daughter Kayla, on September 3, to discuss the economics of sustainable agriculture, and visited with Kathleen Hein and other sustainable agriculture advocates in Prairie du Chien, Wisconsin on August 31.  To see both the video and blog posts on all three interviews, visit Moore’s website and scroll down for the entry on August 31, September 2, and 3.

IATP Report and Video on Antibiotic Use in Ethanol Production:  A new report and You Tube video “Fueling Resistance? Antibiotics in Ethanol Production,” written by Julia Olmstead of the NSAC member group, the Institute for Agriculture and Trade Policy, documents the use of antibiotics in the ethanol fermentation process to control bacteria outbreaks.  The report discusses documentation of antibiotic residues found in dried distillers grains (by-product of ethanol production) that is fed to livestock.  The report and video also suggest alternatives to antibiotics, including hops.

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Weekly Update – Fall Legislative Preview

Tuesday, September 8th, 2009

ACTION NEEDED

Act Now to Promote a Strong Conservation Stewardship Program! Sustainable and organic farming advocates have an important – but short – opportunity to help shape the implementation of the new Conservation Stewardship Program (CSP), a working lands conservation program that provides payments to farmers for maintaining existing conservation practices and for adopting new ones.   USDA has requested comments on the administrative rules that will govern implementation of the new CSP.   The deadline for submitting comments is September 28th.

USDA needs to hear our views.  An abundance of comments from sustainable agriculture advocates will ensure that the new CSP recognizes and rewards the multiple environmental benefits of sustainable and organic agriculture.   An action alert with talking points and instructions for submitting comments is posted here.

SPECIAL ANNOUNCEMENT

CSP CMT Net Demonstration:  The Conservation Measurement Tool (CMT) that will be filled out by all farmers signing up for the 2009 version of Conservation Stewardship Program during the month of October will be used to determine eligibility, ranking, and payments, and is thus the central enrollment feature of the new stewardship program.

A net conference to help organizations and service providers learn more about the CMT is being held on Thursday, September 10, starting at 1:30 p.m. and ending at 3:00 p.m. Eastern time.

To call in, use this toll free number:  888-946-6309.  To join the demonstration online go here.  The conference number is PW8927472 and the audience passcode is “CSP”.

Participants can join the event directly at: https://www.mymeetings.com/nc/join.php?i=PW8927472&p=CSP&t=c

Replays will be available for 30 days.  To access the Net replays of this call after September 10 visit this site.

THIS WEEK

Congress Returns to a Full Plate:  Congress returns today from its annual August recess with a crowded agenda, starting with President Obama’s Wednesday night address to a joint session of the House and Senate on health care legislation.  In addition to health care, the crowded docket of potential legislative items for the fall includes appropriations, climate change, food safety, child nutrition act reauthorization, financial regulatory reform, student loan reform, estate tax revisions, unemployment benefits extension, and more.

Congressional Ratings — While Congress was gone, the Pew Research Center for the People and the Press and the Pew Forum on Religion and Public Life conducted a national survey that concluded Congress’ approval rating has fallen to its lowest level in the 24 years the survey has been taken.  Fifty-two percent of those surveyed rated Congress unfavorably.  In general, Democrats fared better in the poll than did Republicans on a wide range of key issues, though they were in a near dead heat in terms of which party to support in the mid-term elections.

Appropriations — During recess, the staffs of the House and Senate agriculture appropriations subcommittees have started the work of reconciling the House and Senate agriculture spending bills for 2010.  That effort will continue this week and perhaps next.  Expectations are still running fairly high that the Members will approve a conference report and both houses will pass a final agricultural spending bill prior to the start of the new fiscal year on October 1.

The agriculture bill is one of twelve annual spending measures.  While the House has passed all of its bill, the Senate, which always acts second on appropriations, still has eight bills to go.  It is very unlikely it will get to all eight, though Majority Leader Harry Reid (D-NV) has commented he hopes to finish at least four more.  All bills not finished and sent to the President by October 1 will need to be part of a continuing resolution that will keep the government operating until final bills can be approved.

Hanging in the balance on the agriculture bill is increased spending for rural economic development programs, including Rural Micro-enterprise Assistance, Value-Added Producer Grants, and Rural Coop Development Grants, in the Senate version, increased competitive grant research funding (Organic Transitions in the House, Agriculture and Food Research Initiative in the Senate), and, in both bills, funding to increase the value of fruit and vegetable vouchers in the WIC program.

Climate Change — The timing for initial Senate consideration of climate change legislation has changed.  When Congress left for recess the plan was for Environment and Public Works (EPW) Chair Barbara Boxer (D-CA) to introduce draft legislation upon return and proceed to committee markup.  Under a timetable set by Majority Leader Harry Reid (D-NV), all other committees, including Agriculture, with jurisdiction over parts of the bill were to report out their legislation by September 28.

Last week, however, Boxer and her co-sponsor, John Kerry (D-MA), announced that the draft bill will not be ready until later in the month.  Reid has not yet announced a new deadline for the other committees to complete action.

The House passed its version of the climate bill in June.  NSAC is finalizing proposed revisions to the agricultural sections of the House bill to share with the EPW and Agriculture Committees.

The White House and congressional Democratic leadership had intended for Congress to approve of a climate bill prior to the start of global climate negotiations in Copenhagen in December.  That target now seems unlikely to be met.

Meanwhile, keeping pressure on Congress to act, the EPA last week sent draft rules to impose caps on greenhouse gas emissions via the Clean Air Act to the White House to review.  While regulating large industrial sources of greenhouse gas emissions is possible under the Clean Air law, if the Administration were to propose them Congress could act to block or weaken the rules.

While Congress was out of town, a poll was taken for the Center for American Progress of likely 2010 voters in 16 states that are home to key swing Senate votes on the climate bill.  In response to questions about the House passed bill, 63 percent of respondents somewhat or strongly supported the measure versus 30 percent who opposed it.  Some 60 percent of those polled said they would be more inclined to vote for a candidate who supported climate legislation versus 26 percent who said they would be less inclined.

The poll was conducted in Alaska, Arkansas, Indiana, Maine, Michigan, Missouri, Montana, North Carolina, Nevada, North Dakota, New Hampshire, Ohio, Pennsylvania, South Dakota, Virginia, and West Virginia.

Food Safety — As with climate change, the House has passed its version of a food safety bill with the Senate due to act this fall.  The main vehicle in the Senate will likely be S. 510 introduced by Senators Dick Durbin (D-IL) and Judd Gregg (R-NH).  The bill is referred to the Health, Education, Labor and Pensions (HELP) Committee, which also has its hands full with health care.  Though HELP passed its version of a health care bill, the members and staff will nonetheless be very involved with working on a final overall Senate bill.  Food safety is likely to be taken up around the edges of the health care debate, whenever time allows.

NSAC is in the process of finalizing recommendations for amending S. 510 to take into account the interests of family farms, sustainable and organic farming systems, local and regional food systems, and conservation and the environment.  Those recommendations will be shared with the HELP and Agriculture Committees.

Child Nutrition — As regular readers will recall, this is the year for Congress to reauthorize the Child Nutrition Act, setting policy and funding for the school feeding programs and setting policy for the Women, Infants, and Children (WIC) feeding program.  It now appears unlikely the bill will be taken up this fall, primarily due to lack of agreement on where the funding would come from to improve the nutritional quality of school feeding programs.  As part of the reauthorization effort, NSAC and allied groups are trying to obtain a commitment from Congress and the Administration to fund Farm to School programs across the country.

Staff for the House Education and Labor Committee and the Senate Agriculture Committee, the two committees with jurisdiction over the bill, now predict Congress will pass a short term extension of existing law so that the committees can take up the bills next spring.  Whether funding offsets will be clearer next year remains to be seen, though the hope would be that next year’s congressional budget resolution will help clarify the situation.  In the meantime, it is still possible that the committees would begin preliminary work on the bills yet this year.

NEXT WEEK

Know Your Farmer Week is Coming! Last week’s Update reported on USDA Deputy Secretary Kathleen Merrigan’s memo promoting three USDA Rural Development programs and explaining how they can be used to build sustainable local and regional food systems.  The momentum continues next week when she is expected to begin USDA’s new Department-wide initiative to explain its role to consumers and increase their understanding and connection with the farmers and ranchers that provide our food.

Beginning on Monday, September 14 there will be events each day that concentrate successively on rural revitalization, farm to institution programs, healthy eating and farmers markets.  A new USDA website to accompany the national dialogue will go online by the end of the week.

Staff in all USDA mission areas have been meeting for several months to find ways to better integrate their efforts and increase emphasis on supporting sustainable regional food systems.

NIFA News? As stipulated by the 2008 Farm Bill, on October 1 USDA’s Cooperative State Research, Education, and Extension Service (CSREES) becomes the National Institute for Food and Agriculture (NIFA).  We expect news about the appointment of a NIFA Director as well as the proposed organization of the new agency, including the possibility of sub-institutes, this week or next.  Stay tuned!

USDA NEWS

Beginning Farmer and Organic Production CRP Transition Option in Jeopardy:  Last week we reported that USDA’s Farm Service Agency is holding nine public listening sessions to solicit comments on an Environmental Impact Statement (EIS) it will prepare for the program.  The EIS must be completed before the agency issues a rule to enact the changes to the CRP Congress made in the 2008 Farm Bill.  At the current pace, the farm bill changes will not be made until 2011, the year before the current farm bill expires.

Unfortunately, upon further review, we have now discovered the EIS may now include a review of the CRP transition option, a congressional initiative to try to put land that is leaving the CRP upon contract expiration into the hands of beginning farmers and minority farmers, including those who want to transition to organic production systems.  Placing land that has leaving the program into an environmental review of land in the program seems contradictory.  With up to 7 million acres of CRP land possibly leaving the program in 2009 and 2010, the lack of a rule to implement the transition option would be an enormous lost opportunity.  Hopefully the Obama Administration will respond quickly and get the transition option moving in time for this year’s contract expirations.

The nine public CRP meetings being held this fall are in Spokane, WA (9/15), Great Falls, MT (9/21), Moorhead, MN (9/21), Manhattan, KS (9/23), Springfield, IL (9/25), Oklahoma City, OK (9/29), Clovis, NM (10/1), Albany, GA (10/6), and Harrisburg, PA (10/8).  Times, locations and contact information for each of these sessions are available here.

Reminder – Conservation Practice Standard Comment Period Extended:  USDA has extended the comment deadline on Conservation Practice Standards to September 14.  Comments can be submitted online at http://www.regulations.gov or emailed to: nrcscpta2008@wdc.usda.gov.  Comments were previously submitted by NSAC.

Leafy Green Marketing Agreement Hearing Dates Set:  USDA announced on Thursday, September 3 that the Agricultural Marketing Service (AMS) will hold seven public hearings in September and October to hear public comments on a proposed national leafy green marketing agreement.  View the full Federal Register announcement here.

The hearings are being held in response to a June request to consider a national marketing agreement submitted by produce industry representatives.  The request stems from the 2006 E. coli outbreak linked to bagged spinach and the subsequent adoption of a California marketing agreement for handlers of leafy greens.  Though voluntary, handlers representing 99 percent of leafy green marketing volume signed on to the California agreement  The agreement is widely seen as problematic for small and mid-sized farms, for diversified and organic producers, and for wildlife and biodiversity.

USDA added hearing sites in response to an NSAC and National Organic Coalition request to ensure that they hear from a more diverse cross section of vegetable producers.  The hearing schedule is:

• September 22 – 24 — Monterey, CA
• September 30 – October 1 — Jacksonville, FL
• October 6 — Columbus, OH
• October 8 — Denver, CO
• October 14 – 15 — Yuma, AZ
• October 20 — Syracuse, NY
• October 22 — Charlotte, NC

Rules Finalized for Research and Extension Programs:  On Friday, September 4, the Cooperative State Research, Education, and Extension Service issued final rules in the Federal Register on general administrative procedures for all of its competitive grants programs and also non-competitive programs other than formula funds.  Until now, many research and extension programs have not had formal rules, while those that did varied program to program.  The new effort creates a core of basic rules for all the programs, which in turn will be supplemented with program-specific rules.

The new general rules will apply to most of CSREES’ programs, including the Sustainable Agriculture Research and Education (SARE) program, Organic Agriculture Research and Extension Initiative (OREI), Agriculture and Food Research Initiative (AFRI), Beginning Farmer and Rancher Development Program, Community Food Grants, and many others.

In producing the final rule, CSREES did not accept any of the recommendations made on the interim final rule by NSAC.  Though our recommendations were of a relatively minor nature, it was nonetheless disconcerting to find that none of them were adopted and no explanation was provided.

Beginning Farmer Program Rule and Request for Comments:  Also on Friday, September 4, CSREES issued an interim final rule pertaining to the administration of the Beginning Farmer and Rancher Development Program (BFRDP).  The rules are in addition to the general administrative rules for competitive and non-competitive grants (see story above).

Public comments are being accepted through November 3.  NSAC will post a review of the rule and suggested comments in a future edition of the Weekly Update.  In particular, we will focus on elaborating and expanding on the project review criteria listed in statute and repeated in the interim rule.

Beginning Farmer Advisory Committee Nominations Open:  On Thursday, September 3, USDA’s Farm Service Agency issued a Federal Register notice inviting public nominations for the USDA Advisory Committee on Beginning Farmers and Ranchers.  The Committee advises the Secretary of Agriculture on policy to create new farming and ranching opportunities.  The statutory creation of the committee was the result of Sustainable Agriculture Coalition advocacy in the early 1990s.  NSAC and NSAC member organization staff has served on the committee at various times during its existence.

Nominations for new 2-year terms must be received by FSA by October 5.  Openings are expected for slots reserved for farmers and ranchers, State beginning farmer program staff, commercial lenders, and extension.  It is possible that a slot may also open for a non-governmental organization, depending on how many existing committee members who have not reached the maximum of three terms decide to reapply.

Rural Energy for America Program Grants:  On Wednesday, September 2, USDA Secretary Tom Vilsack announced another $13 million in Rural Energy for America Program (REAP) loan and grant awards.  REAP funds, which went to 233 projects in 38 states, may be used for renewable energy systems, energy efficiency improvements, feasibility studies and energy audits.  The complete list of awards can be found here.

More Rural Development State Directors Named:  On Friday, September 4, the Administration announced three more state rural development director appointments, this time for California, Louisiana, and Delware/Maryalnd.  Of note, the new California director is Glenda Humiston who served as USDA Deputy Under Secretary for Natural Resources and the Environment during the latter part of the Clinton Administration, recently finished her doctorate and a dissertation on “Sustainable Agriculture as U.S. Farm Policy: Opportunities and Threats to Reform.”

WTO NEWS

Restarting Doha Talks:  On Friday, September 4, 30 trade ministers meeting in New Delhi, India agreed to resume world trade treaty talks.  Preliminary discussions are to start in Geneva next week.  The Doha Round of trade talks are now in their eighth year.  The revived talks will start from the draft negotiating texts from December 2008, issued just before talks collapsed.  There is little indication as yet that anything significant has changed since the collapse, though the restart will test the Obama Administration’s approach to trade deals.

DULY NOTED

Old McDonald is Online: A new study by Nicholson Kovac, Inc., Agriculture New Media Usage Study provides insight into new media usage among corn and soybean growers.  According to Chris Clayton, who writes and blogs for the agriculture journal DTN, the study finds that 47 percent of farmers [the 230 corn and soybean farmers interviewed] spend five hours or more online each week and 23 percent spend 10 hours or more.  The study also showed that farmers are texting and sharing photos online than ever before.

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Weekly Update – September 1, 2009

Wednesday, September 2nd, 2009

BREAKING NEWS!

#1 – New and Improved VAPG NOFA Issued: On Tuesday, September 1, USDA republished the 2009 Notice of Funds Available (NOFA) for Value-Added Producer Grants (VAPG), an NSAC priority program.  The opening of the program for applications was originally published in the spring, but without key components of the 2008 Farm Bill included.  Following a protest by NSAC and by the Chairs of the House and Senate Agriculture Committees, the original notice was withdrawn and today has been reissued with substantial improvements.  Read the NSAC press release here.

Applications for this round of funding — $18 million is available, enough for approximately 80 project grants – are due by Monday, November 30.  Awards will be made in early January.

Potential applicants should refer to the Application Guide and application template available on USDA’s VAPG webpage. In addition, applicants should contact their USDA Rural Development State Office by calling 1-800-670-6553.  Applicants may submit a draft of their application to their State Office for a preliminary review anytime prior to September 30, 2009 to assess whether the proposed project meets eligibility criteria.

Among the changes made in the revised NOFA are a much stronger priority for projects targeted to small and mid-sized family farms and for projects serving beginning and socially disadvantaged farmers and ranchers.  The definition of mid-sized farm was also increased from a top cut-off of $500,000 gross sales to $700,000 gross sales (3-year average), less than NSAC requested but still a step forward.  Minority farmers will now have to represent 51 percent of producer groups and coops receiving funding under the 10 percent socially disadvantaged farmers and ranchers set-aside rather than 100 percent.  A similar provision is likely included for the 10 percent beginning farmer and rancher set-aside although details of that decision are still forthcoming.

Provisions for the 10 percent of funds reserved for funding mid-tier value chain projects was improved in several ways: language was added to allow non-profit groups and agencies helping to organize and provide technical assistance to be part of the local and regional supply network; language was deleted prohibiting the participation of any supply chain participant that markets and distributes food nationally or internationally; and language was added to clarify that farmers involved in the value chain need not retain ownership of the product throughout the entire chain provided there is clear demonstration of increased revenue returns to the participating farmers.  All three changes will make the new special focus more relevant and practical.

Clearer language was also included to promote local food products as an eligible purpose of the program.  Local food is defined as the marketing of the product within 400 miles of the farm or within the same state.  Applications under this provision must demonstrate and quantify how local marketing will result in added value.

An earlier provision limiting working capital grants to projects already marketing the value-added product was also dropped, making start-up projects once again eligible for program funding.

NSAC applauds the Department for making these important changes to the program to more fully reflect key new provisions added in the 2008 Farm Bill.  We also thank Chairmen Peterson (D-MN) and Harkin (D-IA) for their continued leadership on this matter.

#2 – Deputy Secretary Merrigan Makes a Push for Local and Regional Food Systems:  On Wednesday, August 26, Deputy Secretary of Agriculture, Kathleen Merrigan, released a memo called “Harnessing USDA Rural Development Programs to Build Local and Regional Food Systems” that is the first in what is promised to be a series of highly-anticipated Department activities to raise the profile of federal programs that support regional food system development.  The document can be forwarded to lists and posted on websites to help get the word out about these funding opportunities.

In the memo, Merrigan highlights three Rural Development programs: the Community Facilities Program, the Business and Industry Guaranteed Loan Program, and Value-Added Producer Grant Program.  NSAC has played a lead role in developing and making critical changes to the B&I loan program and Value-Added Producer Grant program over the last several Farm Bills to create specific incentives for local and regional food system development (for more information on these changes, please see excerpts from our Grassroots Guide to the 2008 Farm Bill here and here, respectively).

For her part, Merrigan states in the memo that she plans to play the role of “matchmaker” during this Administration to ensure that USDA program administrators better understand how existing programs throughout the agency can serve the efforts of building local and regional food systems.  Music to our sustainable aggie ears!

#3 – 2009 CSP Sign-Up Continues through End of September:  The 2009 farmer sign-up for the new Conservation Stewardship Program continues through the end of September.  The sign-up began on August 10.

Early Results – As of Friday, August 28, 445 applications have been submitted by farmers, covering 335,000 acres.  A slow start was expected, given the very late notice of the sign-up, though it certainly ups the ante for September.  With nearly 13 million acres available for enrollment each year, and with 2009 being the only year for which there will be just a short sign-up period rather than an entire year, this initial 2009 sign-up will likely be the least competitive, so farmers should be advised that if they are ready to go and the program looks good to them, now is the time to enroll.

New USDA Website Resources – The USDA CSP website has had numerous documents added during August.  Now available online are the Self-Screening Checklist farmers may use to help them decide if CSP is right for them, as well as the Program Application form.  Also newly posted is a revised version of the “activity list” containing the “conservation enhancements” and “conservation practices” available to CSP participants as improved or newly adopted activities to choose from.  Another new document describes the estimated average payment ranges expected for the first sign-up by land use type.

Also on the USDA CSP website is the transcript and audio from a CSP webinar sponsored by the Agronomy Society, a new two-page CSP fact sheet, and a powerpoint for use at public meetings.

CMT Demonstration – The Conservation Measurement Tool (CMT) that will be filled out by all farmers signing up for the 2009 version of CSP during the month of October will be available soon in a web-based version on the USDA CSP webpage.  The CMT will be used to determine eligibility, ranking, and payments, and is thus the central enrollment feature of the new program.

A net conference to help non-governmental organizations and service providers learn more about the CMT will be held in the very near future.  We will post information on how to participate on our homepage as soon as it is available.

NSAC and Member Group Resources – NSAC will be issuing a Farmers Guide to the CSP soon – stay tuned!  NSAC has also posted a one-page flyer that can be reproduced to promote the 2009 signup.  Also, NSAC member groups have been busy posting CSP information and guidance on their websites – see for instance, the special pages by Organic Farming Research Foundation, Center for Rural Affairs, National Center for Appropriate Technology-ATTRA, Land Stewardship Project, and Midwest Organic and Sustainable Education Service.

THIS WEEK

Last Week of Recess:  It’s September and we are back in our usual mode of weekly publication, with this issue being a catch-up issue for August.  Congress is still in recess through Labor Day, but will be back in full swing in just a week’s time.  We will preview some of the upcoming congressional action in next week’s edition of the Weekly Update.  Also coming next week will be action alerts on the Conservation Stewardship Program public comment period on the Interim Final Rule.

USDA NEWS

BFRDP Web-based Stakeholder Listening Session:  USDA’s Cooperative State Research, Education, and Extension Service (CSREES) will be holding two webinar-format stakeholder listening sessions about the Beginning Farmer and Rancher Development Program (BFRDP) on October 14 from 3-4:30pm EST and on October 15 from 9:30-11am EST.  To join the webinar, go to http://connection.extension.iastate.edu/csrees/.  Your computer must have a DSL/Cable Line or better to be able to access the webinar; a dial up modem will not work.

If you have trouble joining the webinar, you can contact a technical support person at 202-690-1095.  You can also email comments on the BFRDP directly to: bfrdp@csrees.usda.gov between October 1 and October 15.  The purpose of the listening sessions and comments are to help guide the 2010 Request for Applications and review process.

EQIP Mississippi River Basin Nutrient Management-Hypoxia Initiative Coming:  Full details may still be a week or so off, but USDA’s Natural Resources Conservation Service is planning to launch a new initiative to use Environmental Quality Incentives Program (EQIP) funding throughout Mississippi River basin states to help farmers stem excess nutrient flows that cause the large hypoxic “dead zone” in the Gulf of Mexico.  The states included in the special initiative will be Arkansas, Kentucky, Illinois, Indiana, Iowa, Louisiana, Minnesota, Mississippi, Missouri, Ohio, Tennessee, and Wisconsin.  State Technical Committees (STCs) in those states will help choose the key small watersheds to be targeted by the initiative.  STCs will also help select core and supporting conservation practices to most effectively ensure appropriate nutrient inputs, control erosion, and trap sediment and nutrients before entering water bodies.  We will report further details as soon as they become available.

Conservation Practice Standard Comment Period Extended:  On August 14, the Natural Resources Conservation Service announced in the Federal Register that the comment period on the Conservation Practice Standard was extended from August 11, 2009 to September 14, 2009.  Comments can be submitted online at http://www.regulations.gov or emailed to: nrcscpta2008@wdc.usda.gov.  For more information, please contact Norman Widman, of the NRCS at norman.widman@wdc.usda.gov.  Comments previously submitted by NSAC and by Organic Farming Research Foundation are posted online.

CRP Comments and Listening Session:  USDA’s Farm Service Agency has scheduled nine public meetings in September and October to solicit comments on how the Conservation Reserve Program (CRP) can be more effective.  Written public comments on the draft Supplemental Environmental Impact Statement are due October 19, 3009.  Comments can be submitted online or emailed to: CRPcomments@tecinc.com.

The nine public CRP meetings being held this fall are in Spokane, WA (9/15), Great Falls, MT (9/21), Moorhead, MN (9/21), Manhattan, KS (9/23), Springfield, IL (9/25), Oklahoma City, OK (9/29), Clovis, NM (10/1), Albany, GA (10/6), and Harrisburg, PA (10/8).  Times, locations and contact information for each of these sessions are available here.

GRP Interim Final Rule Comment Period Reopened: The comment period on the Grasslands Reserve Program interim final rule originally issued January 21, 2009 has been reopened after an amendment to was made that clarifies the nature of the contingent right of enforcement, expands its discussion regarding GRP policy for wind and solar power facilities, and requests comment on how GRP can be used to contribute to energy, climate change, and carbon sequestration efforts.

Comments on the amended interim final rule are now due on or before September 21, 2009.  Comments must use Docket Number NRCS-IFR-09005 and may be submitted electronically at http://www.regulations.gov or emailed to grp2008@wdc.usda.gov or faxed to 202-720-9689.  The interim final rule can be viewed here and the new amendments to it can be viewed here.

REAP Recipients Announced:  On August 10, Under Secretary for Rural Development Dallas Tonsager announced that 365 recipients had been selected to receive more than $15 million in loans and grants to install renewable energy systems and to make energy efficiency improvements through the Rural Energy for America Program (REAP).  Tonsager made the announcement on behalf of Secretary of Agriculture, Tom Vilsack, at the Midwest Rural Assembly in Sioux Falls, S.D.

Among the 365 REAP recipients is Eugene Bartz of Sisseton, SD who will receive a $62,400 grant and $60,470 loan to replace an outdated grain dryer with a more energy efficient model.  Damion Branon of Fairfield, VT will receive a $12,300 grant to replace an evaporator on his maple syrup cooker.  He plans to install a new system that will reduce his annual fuel consumption by 56%.

REAP is administered by the USDA Rural Business and Cooperative Programs office.  For more information about the program, please go to: www.rurdev.usda.gov/rbs/busp/bprogs.htm.

First Payment Made under New BCAP:  On Monday, August 31, Agriculture Secretary Tom Vilsack announced that Show Me Energy Cooperative in Missouri would be the first biomass conversion facility to receive a matching payment from the USDA’s Farm Service Agency (FSA) through the Biomass Crop Assistance Program (BCAP).  The Cooperative’s payments to producers for biomass materials are being matched with BCAP collection, harvest, storage, and transportation (CHST) program funds.  Show Me Energy has over 500 biomass producers supplying materials such as switchgrass, straw, corn stover, sawdust, woodchips, and other biomass materials.

The BCAP program’s CHST component authorizes the FSA to make matching payments to producers who sell eligible materials to qualified biomass conversion facilities that have signed agreements with FSA in advance.

For more information on FSA’s Biomass Crop Assistance Program go to: www.fsa.usda.gov/FSA/webapp?area=home&subject=ener&topic=bcap

BCAP Comments Due:  A notice announcing a Draft Programmatic Environmental Impact Statement for the Biomass Crop Assistance Program (BCAP) appeared in the Federal Register on August 10.  Comments are due September 24.  NSAC will be developing talking points and make them available in a Weekly Update in mid-September for organizations and individuals to use in developing their own comments.  More information on BCAP is available at the Farm Service Agency’s BCAP webpage.

WTO NEWS

WTO Rules Against the US in Brazilian Cotton Case:  On Monday, August 31 a World Trade Organization (WTO) panel ruled that Brazil is entitled to approximately $295 million in trade sanctions against the US as a result of lack of US compliance with previous rulings against what the panel considers illegal US cotton subsidies under international trade rules.  Brazil had sought retaliatory sanctions nearly ten times larger than that amount, while the US argued it was in compliance and should not face any sanctions, or at most $30 million in sanctions.  The level of retaliatory compensation was the second largest ever permitted by the WTO.  Still at issue or US marketing loans, counter-cyclical payments, and export credit guarantees.  The US also maintains that any further cuts to US commodity programs can only be made in the context of a successful conclusion to the currently moribund Doha Round of international trade talks.

DULY NOTED

ERS Predicts Sharp Decline in Farm Income in Their 2009 Forecast:  On Thursday, August 27, USDA’s Economic Research Service (ERS) released its updated Farm Sector Income Forecast for 2009. It estimates that net farm income will be down 38 percent from the preliminary estimate for 2008.  This estimate is $9 billion below the average net farm income of $63.2 billion over the last ten years.  The report explains that among other things, deteriorating economic conditions worldwide has dampened export demands.  Production expenses are forecast to decrease 3.2 percent in 2009, the first decrease since 2002, but production costs will still be the second highest level on record.

DOE Announces Cash Grants for Renewable Energy:  At the end of July, the Department of Energy and Department of the Treasury announced that they will be accepting applications for the 1603 grant program that will make direct payments in lieu of tax credits to companies that create and place in service renewable energy facilities.  $3 billion in financial support via the American Recovery and Reinvestment Act will be available for 5,000 bio-mass, solar, wind, and other types of renewable energy facilities.

Applications must be submitted by October 1, 2011.  For the 1603 Grant terms, conditions, guidance and sample application, please visit: www.treas.gov/recovery/1603.shtml

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