Follow us on twitter
Site Feed
Podcast
Email Updates
Climate Legislation; FAPRI Update; Food Prices; and Governor Ron Kind?
Climate Legislation
Clifford Krauss and Jad Mouawad reported in today’s New York Times that, “Hard on the heels of the health care protests, another citizen movement seems to have sprung up, this one to oppose Washington’s attempts to tackle climate change. But behind the scenes, an industry with much at stake — Big Oil — is pulling the strings.
“Hundreds of people packed a downtown theater here [Houston] on Tuesday for a lunchtime rally that was as much a celebration of oil’s traditional role in the Texas way of life as it was a political protest against Washington’s energy policies, which many here fear will raise energy prices.”
“This was the first of a series of about 20 rallies planned for Southern and oil-producing states to organize resistance to proposed legislation that would set a limit on emissions of heat-trapping gases, requiring many companies to buy emission permits. Participants described the system as an energy tax that would undermine the economy of Houston, the nation’s energy capital,” the article said.
Today’s Times article added that, “While polls show that a majority of Americans support efforts to tackle climate change, opposition to the climate bill from energy-intensive industries has become more vigorous in recent weeks. The Senate is expected to consider its own version of the bill at the end of September.”
Tom Fowler reported yesterday at the Houston Chronicle Online that, “Local energy workers jammed a downtown Houston theater today to protest climate change legislation that the U.S. Senate will take up in the coming weeks.
“The Energy Citizens rally, promoted by some major energy companies and business organizations as well as the Greater Houston Partnership, is the first of several such events planned in 19 states in the coming weeks.
“About 3,500 people, or 1,500 more than expected, filed into the facility, many donning yellow T-shirts that were being handed out that read ‘I’m an energy citizen.’ Houston Astros owner Drayton McLane Jr. was the keynote speaker.”
Meanwhile, Lisa Lerer reported yesterday at Politico.com that, “A lobbying firm working for a pro-coal industry group sent lawmakers a total of 13 fraudulent letters opposing the House climate bill — five more than initially believed, the House Select Committee on Energy Independence and Global Warming said Tuesday.
“The fake letters — sent to Reps. Kathy Dahlkemper (D-Pa.), Christopher Carney (D-Pa.) and Tom Perriello (D-Va.) — purported to be from the National Association for the Advancement of Colored People, senior citizens groups and Creciendo Juntos, a Hispanic advocacy organization.”
Ms. Lerer indicated that, “In total, the firm sent 58 letters, and committee investigators suspect several more may be revealed to be fakes. The newly discovered letters included one, allegedly sent from a senior center in Charlottesville, Va., that the lobbying firm originally claimed was legitimate, the committee said.
“Bonner and Associates, a firm that specializes in grassroots lobbying, was hired by the American Coalition for Clean Coal Electricity and by the Hawthorn Group, an Alexandria-based public affairs firm, as a subcontractor. Both companies have since denounced the company for the fake letters; Bonner and Associates has told POLITICO that the letters were sent by a temporary employee who has since been fired.”
Anna Palmer reported yesterday at Roll Call Online that, “Rep. Ed Markey (D-Mass.) has uncovered five more forged letters as part of his investigation into fraudulent correspondence sent by Bonner & Associates on behalf of the American Coalition for Clean Coal Electricity opposing the House climate change bill.
“Markey, chairman of the Energy Independence and Global Warming Committee and a co-author of the cap-and-trade bill, on Tuesday released the letters, which were purported to come from senior centers and elderly services organizations.”
Bloomberg writer Kim Chipman, in an article from yesterday, documented the perspective of a former Democrat lawmaker on the climate issue.
Ms. Chipman reported that, “Cap-and-trade legislation to limit U.S. carbon dioxide emissions has ‘gotten out of control’ and needs to be scaled back in Congress, said former Democratic Senator Timothy Wirth.
“‘The Republicans are right — it’s a cap-and-tax bill,’ Wirth, a climate-change negotiator during President Bill Clinton’s administration, said in an Aug. 14 interview. ‘That’s what it is because they are raising revenue to do all sorts of things, especially to take care of the coal industry, and it makes no sense.’”
The Bloomberg article explained that, “The [climate] measure faces more hurdles in the Senate, where regional and philosophical differences over its provisions divide Democrats.
“The legislation would require 60 votes in the 100-member Senate. Most Republicans have said they oppose the cap-and-trade measure, and at least 15 of the Senate’s 60-member Democratic majority have said the House-passed version would hurt the economy and needs to be revamped to win their support.”
“To win passage, the Senate legislation must include more agriculture-related provisions, a ‘better package’ for nuclear power, a carbon-emissions standard for new power utilities, and a strong ‘natural gas piece,’ Wirth said.”
And with respect to potential EPA regulation of carbon emissions, yesterday’s Bloomberg article stated that, “The Senate remains under pressure to pass a cap-and-trade bill because failure to act would leave regulation of carbon emissions in the hands of the Environmental Protection Agency, according to Nikki Roy, who monitors Congress for the Pew Center on Global Climate Change in Arlington, Virginia.”
More specifically from an agricultural perspective, DTN Ag Policy Editor Chris Clayton reported yesterday that, “Agricultural groups are doing more forms of outreach on climate change and asking farmers to voice their views on climate legislation and its potential impacts.
The DTN article noted that, “The National Farmers Union supports the [climate change] legislation and argues that farmers could receive a net benefit from selling carbon credits for agricultural practices and forestry. Further, legislation would be more positive for farmers than a strict regulatory approach through the Environmental Protection Agency regulating greenhouse-gas emissions. The NFU also believes the science that climate change is real and demands action.
“‘Global climate change is in fact happening, and it has these very strong correlations with greenhouse-gas concentrations in the atmosphere, and if we don’t do something to reduce and reverse, we will see more flooding and more droughts and more erratic weather patterns, insect pest and diseases move into non-traditional areas, especially further north,’ [Roger Johnson, president of the National Farmers Union] said.
“Johnson will be visiting NFU state affiliates next week in the Midwest to discuss member issues, including the impacts of the legislation.”
Mr. Clayton added that, “The American Farm Bureau Federation is taking a tough approach to defeat the bill. Bob Stallman, president of the American Farm Bureau, wrote in a column this week that the climate bill would ‘devastate’ crop and livestock production in the country. Besides increasing energy costs, Stallman said the legislation would put the U.S. at a competitive disadvantage to other countries that don’t work to reduce emissions. Stallman also states, ‘And, after all this, the measure would have little or no impact on the climate.’”
Julie Harker reported yesterday at Brownfield that, “State Fairs are not just about food, entertainment and agriculture – they’re about ag policy. On Monday, Missouri Farm Bureau sponsored its Farm Family Day and among the displays was a ‘Cap and Tax’ booth. Missouri Farm Bureau President Charlie Kruse tells Brownfield the House-passed climate change bill under Senate consideration is nothing but a tax on carbon, coal and oil, ‘If the purpose of this, from Congress’ intent, is to have the largest transfer of dollars from the private sector to federal government coffers, this is a great plan.’”
The Brownfield item, which also included an audio interview with Mr. Kruse, added that, “Kruse says – unlike U.S. Ag Secretary Vilsack and proponents of cap-and-trade – Farm Bureau sees little benefit to farmers and ranchers, ‘All the things that farmers have to buy that are so energy intensive – I just don’t believe that what little positive may come out of this for farmers is going to offset the increased costs.’”
FAPRI Update
Reuters news reported yesterday (article posted at DTN, link requires subscription) that, “U.S. hog and dairy prices are forecast to rise in 2010 from their current money-losing levels but the outlook depends in part on an overall economic recovery, a University of Missouri think tank said on Tuesday.
The Reuters article stated that, “In a mid-year update, the Food and Agricultural Policy Research Institute lowered its forecasts for farm-gate prices for corn and wheat from estimates made in a March ‘baseline’ report.
“‘The U.S. livestock and dairy sectors have experienced lower meat and dairy prices during 2009 that have left these sectors in a bleak financial situation,’ said FAPRI. ‘This outlook shows 2010 price recovery but is dependent on general economic recovery and continued supply-side reductions.
“‘For most major U.S. crops, market prices have declined from last year’s peaks but remain well above pre-2007 levels.’”
Food Prices
On Friday, the Bureau of Labor Statistics (BLS) released its Consumer Price Index, in part, last week’s report stated that, “The food and beverages index, which rose 0.1 percent in June, fell 0.2 percent in July. The decrease was caused by the food at home index, which declined for the seventh time in the last eight months, falling 0.5 percent. All six major grocery store food group indexes fell, with the largest decreases being a 1.3 percent decline in the index for meats, poultry, fish and eggs and a 0.6 percent decline in the dairy and related products index, which has now fallen for eight months in a row. The cereals and bakery products index posted the smallest decrease of the six groups, falling 0.1 percent. The indexes for fruits and vegetables, for nonalcoholic beverages, and for other food at home all declined 0.3 percent in July. The food at home index has declined 2.6 percent from its peak in November 2008. In contrast to the decline in the food at home index, the food away from home index rose 0.1 percent in July and the index for alcoholic beverages increased 0.3 percent.”
And yesterday, BLS released its Producer Price Index report, which stated that; “Prices for intermediate foods and feeds fell 2.0 percent subsequent to a 1.3-percent gain in June. Leading this downturn, the prepared animal feeds index decreased 3.3 percent in July after rising 5.3 percent in the previous month. Prices for processed young chickens, flour and flour base mixes and doughs, natural cheese (except cottage cheese), and processed cheese also turned down after rising a month earlier. The indexes for beef and veal and for shortening and cooking oils fell more than they had in June. By contrast, the cooked or smoked poultry products index turned up 3.6 percent following a 1.7-percent decline a month earlier. Processed egg prices also increased in July after falling in the prior month.”
A Daily Radio News item from USDA indicated yesterday (audio report) that, “Many farmers are suffering as prices they get for their products decline, but food shoppers are reaping the benefits as prices fall at supermarkets.”
An item posted yesterday at The Financial Times Online stated that, “‘Hope sustains the farmer,’ says the Latin proverb. So far this year, hopes of a bumper harvest have sustained investors worried about an inflation-inducing surge in food prices. The fear is that the torrent of fiscal stimuli flooding into the world economy will result in too much cash chasing too few grains, causing higher prices that stunt recovery. Yet while a global shortage has pushed sugar prices to their highest level in three decades, prices of soyabeans and corn have languished due to near-perfect summer growing conditions in the US Midwest. The US Department of Agriculture forecast last week the biggest-ever soyabean haul, a near-record corn crop and the lowest farm-gate prices for both grains in three years.”
***
With respect to food security issues, the AP reported yesterday that, “More than 1 million Kenyans affected by a prolonged drought are not getting the food aid they desperately need, the U.N.’s World Food Program said Tuesday.
“The agency already is providing emergency food aid to some 2.5 million people in this East African nation, but another 1.3 million still need help, said Gabrielle Menezes, a spokeswoman for WFP.”
***
On the issue of domestic feeding programs, Kim Severson reported in today’s New York Times that, “Ann Cooper has made a career out of hammering on the poor quality of public school food. The School Nutrition Association, with 55,000 members, represents the people who prepare it.
“Imagine Ms. Cooper’s surprise when she was invited to the association’s upcoming conference to discuss the Lunch Box, a system she developed to help school districts wean themselves from packaged, heavily processed food and begin cooking mostly local food from scratch.”
The Times article explained that, “The invitation is a small sign of larger changes happening in public school cafeterias. For the first time since a new wave of school food reform efforts began a decade ago, once-warring camps are sharing strategies to improve what kids eat. The Department of Agriculture is welcoming ideas from community groups and more money than ever is about to flow into school cafeterias, from Washington and from private providers.
“‘The window’s open,’ said Kathleen Merrigan, the deputy secretary of agriculture. ‘We are in the zone when a whole lot of exciting ideas are being put on the table. I have been working in the field of sustainable agriculture and nutrition all my professional life, and I really have never seen such opportunity before.’
“Congress, which will take up the Child Nutrition Act as soon as October, has much to do with this year’s focus on school food. The act, which is reauthorized every five years, provides $12 billion to pay for lunch and breakfast for 31 million schoolchildren.
“That the nutritional state of America’s children is a priority for President Obama doesn’t hurt, either. Mr. Obama put an extra $1 billion for child nutrition programs, including school food, in his 2010 budget proposal.”
Today’s article added that, “The Department of Agriculture is expected to upgrade school food nutrition standards this year, many of which haven’t been changed for nearly 15 years. And because many Obama U.S.D.A. appointees are focusing on improving student health through better food, the department has started an aggressive effort to study reform efforts big and small. These include the national farm-to-school program, which is in nearly 9,000 schools, and Food Options for Children in Urban Schools, a nonprofit based in New York that helps the nation’s largest districts change how they buy and prepare food.
“Congress seems likely to spend more on school food this year, but just how much is uncertain. Under newly released reimbursement rates for the coming school year, most districts receive $2.68 for each free lunch served to a child who is poor enough to qualify. The rates vary depending on poverty level and region.”
Governor Ron Kind?
Lastly today, Shira Toeplitz reported yesterday at Roll Call Online that, “If Rep. Ron Kind (D) runs for governor, his western Wisconsin swing district could be a competitive battleground in 2010.
“Kind made his interest in running for governor known as soon as Gov. Jim Doyle (D) announced Monday that he will not run for re-election next year.
“‘Since Governor Doyle’s decision has become public, people from around the state have contacted me and urged me to run for governor,’ the seven-term Congressman said in a statement from his office. ‘I thank them for their support and I am considering it. In the weeks to come I will make my decision.’”
Keith Good
