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Ag Policy Agenda – Climate Change Issues; Weather Concerns; Trade Developments; School Lunch Program; and Political Notes
Ag Policy Agenda – Climate Change Issues
DTN Ag Policy Editor Chris Clayton reported yesterday that, “Agriculture policy should focus on job creation in 2010, the chairman of the Senate Agriculture Committee explained to DTN in a December interview.
“Much of the policy focus for Congress will be to attempt to finish work started in 2009 while gauging just what is practical before November’s mid-term elections.
“Senate Agriculture Committee Chairman Blanche Lincoln, D-Ark., said her committee will work on green energy with the goal to ‘create jobs and put our economy back on the right track … We’re going to be looking towards focusing on creating jobs in rural communities. That will probably be a big issue for us.’”
The DTN article added that, “Lincoln said she plans to work with Secretary of Agriculture Tom Vilsack to see what more can be done with USDA’s Rural Development to expand job opportunities in areas such as energy and rural broadband, as well as help farmers who are struggling with crop disasters.
“The Senate Agriculture Committee also will take up a child-nutrition bill after extending the current legislation when the Senate got bogged down in the health-care debate. The bill needs to be done by March, because of the way Congress sets baselines for budgets, Lincoln said. Such an effort could be complicated by continuing issues being raised about the safety of school-lunch programs.”
Mr. Clayton also pointed out that, “One key area to watch in the Senate early this year is just how much emphasis Senate leaders will place on passing a climate or energy bill. Lincoln said she thinks there is support in the Senate for a bill that adopts a national renewable energy portfolio that would more quickly spur job growth.
“Lincoln said she wouldn’t characterize it as a ‘trimmed-back version’ of climate legislation.
“‘I think you can just say it’s a more pragmatic approach,’ she said.”
Also on the climate debate, yesterday’s DTN article stated that, “‘The message I’m getting from agriculture on that is they don’t want anything to do with it,’ [House Agriculture Committee Chairman Collin Peterson (D-Minn.)] said. ‘They are not sold on this at all. I tried to carve out a place for them, and it hasn’t gone over too big.’
“If the Senate were to complete a climate bill, Peterson said he isn’t certain he would take part in conference talks, even though his committee would be directly affected.
“Lincoln added that concentrating on a renewable energy standard would create jobs now when they are needed. A problem with a cap-and-trade approach is the unknown timeline for how long a new trading market would take to fully develop and work, said Lincoln.”
Chairman Peterson’s assessment of farmer reaction to cap and trade legislation was reiterated by Max Armstrong on WGN’s Morning Show program Saturday where he noted that the cap and trade legislation has farmers “on the edge of their seats,” and that they are “extremely nervous” in Rural America about the cap and trade bill.
To listen to an excerpt from the WGN radio program, in which Orion Samuelson questions Secretary of Agriculture Tom Vilsack on cap and trade, and Max Armstrong provides additional analysis on the issue, just click here (MP3- 6:00 minutes). The entire WGN Morning Program can be heard here.
In other climate related news, Ben Geman reported yesterday at The Hill’s Energy and Environment Blog that, “Sen. John Barrasso (R-Wyo.) on Tuesday called for hearings on the use of intelligence satellites for gathering images of changing climate conditions, alleging that Central Intelligence Agency work with scientists on climate change is sapping the agency’s focus on preventing terrorism.
“A New York Times story Tuesday details CIA collaboration with climate scientists.
“Barrasso renewed his attacks on the agency’s recent establishment of a Center on Climate Change and National Security, calling the agency’s work on the issue inappropriate in light of the failed Christmas Day airplane bombing.”
Weather Concerns
Maria Newman reported in today’s New York Times that, “As a cold spell continued its rigid hold on much of the eastern United States on Tuesday, farmers in central and southern Florida were bracing for freezing temperatures overnight that could damage orange, strawberry and tomato crops.”
The Times article explained that, “‘This cold snap is lasting longer than normal,’ said Rick Davis, a meteorologist with the National Weather Service in Tampa, Fla., where the temperature can fall below freezing several times a year but will usually rebound by the next day. ‘We’ve had it the last three or four days, and it will last for the better part of the week and this coming weekend, so we’re going to have a solid 7- to 10-day stretch of lower-than-normal temperatures.’
“Mr. Davis said the conditions were particularly problematic for farmers, especially in central and southern Florida, where January is the middle of the growing season for strawberries and citrus fruit.
“Gov. Charlie Crist signed an executive order giving state agencies the authority to provide growers help.”
Today’s article pointed out that, “Farmers are so worried about the effects of a prolonged freeze that Charles H. Bronson, Florida’s agricultural commissioner, asked Mr. Crist on Tuesday to lift a weight limit on trucks that haul produce.
“‘That way farmers can load up the crops they’re already harvested and get them out of harm’s way,’ said Terence McElroy, press secretary for the State Department of Agriculture and Consumer Services. ‘This thing isn’t over yet, and we don’t know where we’ll be at the end of it.’
“Mr. McElroy said agriculture, the state’s second-biggest industry after tourism, had an economic impact in excess of $100 billion a year.”
Trade Developments
Reuters writer Ralph Jennings reported yesterday that, “Taiwan reversed a food safety law on Tuesday to ban some U.S. beef imports, sparking an angry response from its biggest ally, the United States, which said the move undermined the island’s credibility as a trading partner.
“The U.S. government ‘deeply regrets’ parliament’s decision to reinstate the ban over widespread fears of mad cow disease, Washington’s de facto embassy said in a statement, hinting at a chill in U.S. support for Taiwan’s World Trade Organization role.
“Taiwan’s handling of the issue has caused confusion for U.S. beef exporters in their sixth-largest market by value, worth $114 million as of the end of October compared to overall U.S. exports valued at $14.5 billion for the first 10 months of last year.”
Bloomberg writer Chinmei Sung reported yesterday that, “Taiwan’s parliament voted to reinstate a ban on imports of U.S. ground beef and offal amid mad cow concerns, challenging a decision by President Ma Ying- jeou to allow some shipments and risking a dispute with the U.S.
“Lawmakers passed a final reading to amend the Food Safety Law to back the ban, according to a broadcast today on national television that cited Legislative Speaker Wang Jin- pyng. Ma is required to sign the bill for it to pass into law.”
The Bloomberg article noted that, “Today’s vote came after legislators from Taiwan’s two main political parties — the Democratic Progressive Party and Ma’s Kuomintang – ‘agreed in principle’ last week to amend the law to bar imports of U.S. ground beef and offal.
“U.S. beef exports to Taiwan last year may have topped $128 million, a record set in 2008, the Denver-based U.S. Meat Export Federation said today in a statement. The new legislation would bar any country from exporting beef to Taiwan for a 10-year period following its most-recent mad cow case, the Meat Export Federation said.”
Robin Kwong reported yesterday at the Financial Times Online that, “Parliament’s decision to block a deal to expand US beef imports will damage Taiwan’s standing and ties with one of its biggest allies, Ma Ying-jeou, the president, said on Tuesday.
“Mr Ma spoke after legislators amended food safety laws that bar the import of offal and ground beef from regions affected by ‘mad cow disease’ in the past 10 years. This in effect reverses an agreement that Taipei and Washington reached last October to lift Taiwan’s US beef ban, and drew a rebuke from the US.”
Other reaction on this development from yesterday included:
- Senate Ag Committee Chairman Blanche Lincoln (D-Arkansas)- “I am severely disappointed by Taiwan’s decision to impose restrictions on imports of certain U.S. beef products, effectively reversing the agreement on this matter reached between the governments of the United States and Taiwan last October. Taiwan’s own risk assessment, as well as studies conducted by the World Animal Health Organization (OIE) and others, has proven that U.S. beef is safe. With this action, Taiwan has chosen to disregard sound science, therefore forcing us to question our ability to depend on them as a reliable trading partner.”
- Senate Agriculture Committee Ranking Member Saxby Chambliss (R-Georgia)- “[Sen. Chambliss] today sent a letter to President Ma Ying-jeou expressing serious concern regarding a measure passed by Taiwan’s Legislative Yuan that bars the import of certain U.S. beef and beef products. Sen. Chambliss said the action has no basis in sound science and represents a step backward in trade relations between the U.S. and Taiwan. The two countries came to a bilateral agreement just two months ago regarding expanded beef trade.”
- Nebraska GOP Senator and former Sec. of Agriculture Mike Johanns- “This is an unfortunate and unnecessary setback in our relations with Taiwan. I am disappointed that they are reversing their position on an agreement we just signed and I will work with the Obama Administration to resolve this important issue for Nebraska and other beef-producing states.”
- National Catttleman’s Beef Association (NCBA) news release- “The [NCBA] is extremely disappointed that Taiwan has reversed its decision on a carefully negotiated science-based bilateral beef trade protocol. Despite a recent agreement to allow a full reopening of the Taiwan market to U.S. beef, lawmakers in Taiwan announced this morning that additional restrictions would be placed on U.S. beef imports, due to alleged safety concerns.
“‘In our view, the issues expressed by politicians in Taiwan have absolutely no basis in scientific fact and fly in the face of Taiwan’s own risk assessment,’ said Gregg Doud, NCBA chief economist. ‘To suggest that there are any safety concerns related to U.S. beef is outrageous.’”
Meanwhile, Ting-I Tsai reported in today’s Wall Street Journal that, “Taiwan President Ma Ying-jeou pledged to try to repair ties with the U.S. Tuesday after lawmakers passed an amendment to resume a ban on certain U.S. beef imports.
“Parliament’s move to enact into law last week’s proposal to reinstate the ban has prompted concerns in the U.S. and may stall the island’s long-delayed trade talks with Washington. Mr. Ma said at a hastily convened news conference after the lawmakers’ vote that the new restrictions would damage ties with the U.S. and hurt Taiwan’s reputation.
“The parliamentary move came in response to public concern that Taiwan lacks sufficient safeguards to prevent mad-cow disease. Tuesday’s action reverses Mr. Ma’s decision in October to again allow imports of U.S. ground beef, bone-in beef and cow offal, which came after two years of protracted negotiations between Taipei and Washington. U.S. congressional representatives from beef-producing states had pressed Taiwan to allow all kinds of U.S. beef to enter the island.”
Today’s Journal article added that, “The trade friction comes at a time when Taiwan is waiting for Washington to approve the sale of various weapon systems to the island. China, Taiwan’s longtime military rival, is watching the approval process closely. According to the state-run Xinhua news agency, Beijing Tuesday again urged the U.S. to cancel its planned arms sales to the island. Taiwan Prime Minister Wu Den-yih said earlier Tuesday that the beef spat wouldn’t affect the arms sales.”
In a separate trade dispute, Dow Jones news reported yesterday (article posted at DTN, link requires subscription) that, “Russian officials are scheduled to arrive in the U.S. for talks later this month over Russia’s decision to implement an import restriction on Jan. 1 that halted the country’s imports of U.S. chicken, according to U.S. government and industry officials.
“The Russian officials are expected to arrive in the U.S. during the week beginning Jan. 17, a U.S. Department of Agriculture spokesman said Monday.”
In other trade related news, Reuters reported yesterday (article posted at DTN, link requires subscription) that, “The National Cotton Council, a leading organization in the U.S. fiber industry, on Tuesday urged Washington to ask for a new panel in the World Trade Organization if Brazil retaliates over a contentious cotton trade dispute.
“The WTO in 2009 gave Brazil permission to impose sanctions against the United States after ruling that Washington spent too much on subsidies for American cotton farmers and on an export credit guarantee program.”
The article added that, “In a speech to the annual Beltwide Cotton Conference, NCC chairman Jay Hardwick said the NCC has held meetings with the U.S. Trade Representative on the issue.
“‘We have encouraged them (the USTR) to prepare to call for a new panel if Brazil announces retaliation and that retaliation is excessive,’ Hardwick said.”
Yesterday’s Reuters article noted that, “The U.S. cotton program has been accused of depressing prices and badly damaging African cotton farmers. The issue has become a bone of contention in the Doha round of farm trade talks.
“The allegation is rejected by the U.S. cotton industry, with officials saying U.S. cotton plantings had declined over 40 percent since 2006/07 so U.S. supports could not possibly depress prices.
“In fact, cotton prices at the ICE Futures U.S. in New York rose nearly 55 percent in calendar 2009 to end at 75.60 U.S. cents per lb.”
School Lunch Program
Barbara Barrett reported today at the Chicago Tribune Online that, “As the economy struggles to regain its footing, more children than ever receive free or reduced-price lunches in the nation’s school cafeterias. Some advocates suspect even more children could use the help.
“As of last month, 62 percent of public school students who participate in the National School Lunch Program have shown they cannot afford the average $2.92-a-day price for a hot lunch, according to the U.S. Department of Agriculture’s Food Nutrition Service. More than 31.2 million children receive the benefit.”
The article noted that, “A USDA study in 2009 found disparities among states in signing up children who receive food stamps for the school lunch program. And although most families routinely receive applications before school starts, many don’t know that they can sign up midyear if a parent loses a job or faces some other hardship.”
Political Notes
Aaron Blake and Alexander Bolton reported yesterday at The Hill Online that, “In a move that will rock the 2010 Senate landscape, Sen. Byron Dorgan (D-N.D.) unexpectedly announced Tuesday evening that he will not seek reelection.
“Dorgan, who is in his third term and has been in Congress for three decades, said in a statement that he is moving on to pursue other interests.”
Chris Cillizza reported in today’s Washington Post that, “Dorgan’s decision is likely to have a considerable impact on the national landscape, coming less than a month after similar announcements by four House Democrats representing conservative districts. Democratic strategists continue to insist these decisions are unique to the specific lawmakers and not indicative of any broader national trend. But Dorgan’s retirement complicates that argument — the 67-year-old was on no one’s retirement list at the start of this election cycle.”
And Adam Nagourney reported today at The New York Times Online that, “Senator Christopher J. Dodd, the embattled Connecticut Democrat who was facing an increasingly tough bid for a sixth term in the United States Senate, has decided not to seek re-election this year, Democrats familiar with his plans said Wednesday.”
The Times article noted that, “The decision came hours after another Democratic senator, Byron L. Dorgan of North Dakota, also announced that he would not seek re-election this November. The developments underscored the fragility of the Democrats’ 60-vote Senate majority, which is just enough to block Republican filibusters. Democratic incumbents also face serious challenges in Arkansas, Colorado, Nevada and Pennsylvania among other states.”
With respect to Arkansas, the AP reported yesterday that, “A former lawmaker who ran unsuccessfully for the U.S. Senate in 2004 says he’s running again for the Republican Senate nomination.
“Former State Sen. Jim Holt’s campaign said Tuesday he planned to formally announce his bid for the Senate in a series of events around the state next week. Holt did not immediately return a call on his cell phone.
“Holt held a pair of fundraisers in northwest Arkansas last week and had said he was likely to run again for the Senate this year. He becomes the eighth Republican to announce he’s seeking the party’s nomination to challenge Democratic Sen. Blanche Lincoln.”
Keith Good
