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Senate Ag Appropriations Hearing; Disaster Payments- Biodiesel Tax Credit; Climate Issues; Livestock Issues; and Trade
Senate Ag Appropriations Hearing
Philip Brasher reported yesterday at the Green Fields Blog (The Des Moines Register) that, “The Obama administration doesn’t want to spend as much money on land conservation as the 2008 farm bill calls for, but the programs would still grow under the president’s budget, says Agriculture Secretary Tom Vilsack.
“That was his pushback when fellow Iowan, Sen. Tom Harkin, argued at a Senate appropriations hearing today that the budget would result in a 4-million acre cut to federal conservation programs.
“It’s a cut because the administration is asking for less money than Congress authorized, but the total spending and acreage would actually increase from this year to next, which is Vilsack’s point.”
Yesterday’s update noted that, “Vilsack allowed that the USDA probably won’t enroll the full amount of acreage, 12.8 million, allowed for the Harkin-authored Conservation Stewardship Program. The enrollment will be closer to 12 million acres, he said. The president’s budget had proposed reductions in authorized acreage for several programs, including CSP.”
(Note: To listen to the entire exchange yesterday between Sen. Harkin and Sec. Vilsack regarding conservation issues, just click here, (MP3-6:58)).
Mr. Brasher noted that, “Vilsack also had to defend, as he did in the House last week, the administration’s efforts to slash payments to crop insurance companies and the independent agents who sell the federally subsidized policies. Iowa Republican Sen. Charles Grassley has been strongly critical of the proposed cuts, saying he was particularly concerned about the impact on agents. Harkin, by contrast, has largely been silent on the issue and responded, ‘You make a strong point,’ when Vilsack summarized his case for the cuts.
“Agent commissions skyrocketed in recent years because they are tied to the value of the policies, which are in turn linked to the prices of the covered commodities. Vilsack said agent earnings should be based on the number of policies that agents handle instead. ‘It’s not all that difficult to sell this product,’ Vilsack said.”
To listen to part of yesterday’s exchange on crop insurance issues between Sen. Harkin and Sec. Vilsack, just click here (MP3- 3:11).
Also at yesterday’s hearing, Sen. Sam Brownback (R-Kansas) asked Sec. Vilsack about the status of getting an increase in the ethanol blend in gasoline from 10% to 15%, to listen to this exchange, just click here (MP3-3:42).
And Sen. Herbert Kohl (D-Wis.) asked Sec. Vilsack about dairy prices and sought an update on the status and implementation of some USDA programs relating to dairy; this discussion from yesterday is available here (MP3-2:05).
Disaster Payments- Biodiesel Tax Credit
DTN Ag Policy Editor Chris Clayton reported yesterday that, “A $1.5 billion disaster package advocated by Southern farmers and a renewal of the $1 biodiesel tax credit are part of the latest tax-extenders and jobs bill released Monday by the Senate Finance Committee [text of package].”
The DTN article explained that, “Mixed into the tax bill is a $1.5 billion disaster package for the 2009 crop year being pushed by Senate Agriculture Committee Chairman Blanche Lincoln, D-Ark. Farmers would be eligible if they suffered a crop disaster or are located in counties declared disaster areas that had at least one crop suffer a 5 percent yield or quality loss due to the disaster, the bill states. Payments would equal up to 90 percent of the farmers’ direct payments for 2009.
“Producers who did not have crop insurance would still be eligible for the disaster aid, but would be required to buy crop insurance in 2010.
“Lincoln, who is facing the toughest political battle of her career for re-election, has argued the disaster payment is needed because the new permanent disaster program, the Supplemental Revenue Assistance Payments program, SURE, would take too long to get aid to farmers. Still, House Agriculture Committee Chairman Collin Peterson, D-Minn., has questioned the validity of making payments to farmers who suffer just a 5-percent crop loss. Peterson said the disaster package would open farm programs up to even more public challenges due to demands to cut federal spending.”
Chairman Lincoln issued a news release yesterday on this development, which included more background and information on the disaster provision.
Climate Issues
Marin Cogan reported yesterday at Politico that, “House Republicans are pushing a resolution that would block the EPA’s regulation of greenhouse gases, throwing a wrench in the Obama administration’s attempts to bypass Congress and regulate carbon emissions.”
The article stated that, “[Minority Leader John Boehner (R-Ohio)] joined House Conference Chairman Mike Pence (R-Ind.) [Pence news release], Darrel Issa (R-Calif.), Joe Barton (R-Texas) [Barton news release] and Marsha Blackburn (R-Tenn.) in introducing a resolution, which is similar to a resolution recently proposed by Democrats Collin Peterson (Minn) and Ike Skelton (Miss). Senator Lisa Murkowski (R-Alaska) will push the same proposal in the Senate.
“Blackburn argued that the GOP resolution reflects growing frustration with the EPA among her constituents.”
A related news release issued yesterday by Rep. Jerry Moran (R-Kansas) indicated that, “Congressman Jerry Moran sponsored legislation this week to overturn an Environmental Protection Agency (EPA) rule, that would make carbon dioxide and other greenhouse gases a danger to public health.
“Moran was the first member of the House of Representatives to introduce legislation to prevent EPA regulations on greenhouse gas emissions back in December 2009. Today, Moran joins more than 80 House Members to re-introduce the disapproval resolution, as required by the Congressional Review Act.
“‘Allowing the EPA to move forward with this rule would have a devastating effect on the economy and job creation – especially in the agricultural and energy sectors…’”
Molly Hopper reported yesterday at The Hill’s Energy and Environment Blog that, “The resolution is thought to face a high hurdle in the House, however. Speaker Nancy Pelosi (D-Calif.) is a strong proponent of greenhouse gas curbs and EPA’s efforts.”
Bloomberg writers Simon Lomax and Kim Chipman reported today that, “President Barack Obama’s top environmental regulator will testify before Congress today amid growing opposition to her agency’s proposed limits on the pollution linked to climate change.
“Lisa Jackson, head of the Environmental Protection Agency, will face lawmakers a day after Democratic Senator Jay Rockefeller of West Virginia called for a two-year delay on greenhouse-gas regulations and top House Republicans demanded they be stopped altogether.”
“Jackson is scheduled to appear at a hearing of a Senate Appropriations Committee panel on the environment,” the Bloomberg article said.
Meanwhile, Reuters writers Richard Cowan and Thomas Ferraro reported yesterday that, “The idea of imposing a broad cap-and-trade system to cut America’s greenhouse gas emissions is dead and will be replaced with a new approach, an influential Republican senator said Tuesday.
“Lindsey Graham, one of three senators working against daunting odds to produce a compromise climate bill, has recently turned against imposing the kind of cap-and-trade system used in Europe, which involves companies buying and selling pollution permits.
“Graham did not specify whether another mechanism or some sort of cap-and-trade would be used more narrowly, such as to control emissions in the power utility sector.”
Yesterday’s article noted that, “U.S. Energy Secretary Steven Chu said there was still a chance the Senate would pass a climate bill this year with a cap-and-trade program.
“‘It is not dead,’ Chu told Bloomberg TV, referring to the cap-and-trade approach. ‘We need a comprehensive bill. We would very much want and need it this year.’”
The Reuters article explained that, “Democratic Senator John Kerry told reporters he hoped a compromise climate control bill could be put together this month, although many meetings still must be held. Graham told reporters it will be ‘weeks’ before a bill is ready.
“But Senator Joseph Lieberman, an independent working with Graham and Kerry, said a detailed outline of a bill could come within days and that it will have to include a ceiling on greenhouse gas emissions that drops in future years.”
Ben Geman reported yesterday at The Hill’s Energy and Environment Blog that, “The Senate trio trying to salvage climate legislation this year plans to begin circulating details of their long-awaited proposal very soon, said Sen. Joe Lieberman (I-Conn.), one of the architects of the measure.
“‘Hopefully within a week or so we will have at least a detailed narrative to share,’ Lieberman told reporters in the Capitol Tuesday afternoon.
“Lieberman and Sens. John Kerry (D-Mass.) and Lindsey Graham (R-S.C.) discussed their plan for over an hour with a group of colleagues in the Capitol Tuesday.”
Yesterday’s update added that, “The three senators are planning a climate and energy measure that scraps the ‘economy-wide’ cap-and-trade plan that the House approved last year, but has not gained traction in the Senate.
“It remains unclear if their approach – which might include a cap-and-trade program for power plants and a carbon tax or fee on motor fuels – can fare any better and win a spot on the election-year floor agenda.”
Washington Post writer Juliet Eilperin reported yesterday at the Post Carbon Blog that, “Senators John Kerry (D-Mass.), Lindsey O. Graham (R-S.C.) and Joseph I. Lieberman (I-Conn.) had a closed-door meeting with some moderate senators to drum up support for their bipartisan climate package Tuesday afternoon–but the session failed to produce a breakthrough.
“The only Republicans who showed were George Voinovich (Ohio) and Judd Gregg (N.H.), though Gregg didn’t stay for long, due to a conflict. The Democratic attendees included Debbie Stabenow (Mich.), Carl Levin (Mich.), Sherrod Brown (Ohio), Jeff Bingaman (N.M.), Mark Warner (Va.), Thomas R. Carper (Del.), and Max Baucus (Mont.).
“The three senators did not distribute paper on their plan, according to sources familiar with the meeting, promising they would deliver a detailed outline on Friday. As one Senate aide noted, time is running out.”
Amy Harder reported yesterday at the National Journal Online that, “After meeting today with roughly a dozen senators — mostly moderate Democrats and two Republicans — Sen. John Kerry, D-Mass., signaled cautious optimism about attracting support for the climate and energy bill he and Sens. Lindsey Graham, R-S.C., and Joe Lieberman, I/D-Conn., are drafting.
“‘They have concerns, they expressed them, but they weren’t concerns that… we can’t address,’ Kerry said. Graham said earlier today that it would be ‘weeks’ before they release a bill.”
Also on the climate issue, Ben Geman reported yesterday at The Hill’s Energy and Environment Blog that, “Sen. Byron Dorgan (D-N.D.) on Tuesday continued his push for Senate action on a package of energy measures that omits greenhouse gas limits, appearing unmoved by plans to overhaul climate legislation.
“Sens. John Kerry (D-Mass.), Lindsey Graham (R-S.C.) and Joe Lieberman (I-Conn.) — who are trying to draft a compromise climate bill — are moving away from the sweeping cap-and-trade plan that has failed to gain traction in the Senate.
“But Dorgan, who opposes cap-and-trade, isn’t biting, at least not for the moment. He wants the Senate to take up a package of energy measures that the Energy and Natural Resources Committee approved in June.”
The Hill update indicated that, “‘I want to bring the energy bill to the floor of the Senate,’ he told reporters in the Capitol Tuesday. ‘The way to lower emissions is actually to change the policies as we’ve done in the energy bill itself.’
“‘We are not going to do cap-and-trade or a first cousin of cap-and-trade this year, in my judgment, but it would be unfortunate if we ended the year by not doing the things in energy policy that actually reduce the rate of carbon emissions. We have the capability of doing that and we ought to do it,’ added Dorgan, a senior member of the Energy committee who is retiring from the Senate at the end of this year.”
Interestingly, Stephen Power reported in today’s Wall Street Journal that, “The Environmental Protection Agency is riling many businesses with proposals to regulate greenhouse gases for the first time, but data suggest it has been slow out of the gate under President Barack Obama in enforcing existing regulations on traditional pollutants.
“In fiscal 2009, the EPA’s enforcement office required polluters to spend more than $5 billion on cleanup and emission controls—down from $11.8 billion the previous year, according to a report recently published by the agency. The report, which examines the EPA’s performance in enforcing limits on pollutants like sulfur oxides, nitrogen oxides and soot, covers the fiscal year ended Sept. 30, a period that covers the last 3½ months of President George W. Bush’s watch and the first 8½ months of Mr. Obama’s.
“Defendants in agency enforcement cases committed to cut pollution by about 580 million pounds in fiscal 2009, down from 3.9 billion pounds in fiscal 2008, according to the report.”
And in other climate news, David Adam reported on Monday at the Guardian Online that, “The scientist at the centre of a media storm over global warming research admitted today he had sent ‘awful emails‘ but said he expected to be cleared of accusations that he tried to pervert the scientific process.”
Livestock Issues
Lauren Etter reported in today’s Wall Street Journal that, “As livestock operations have grown more industrialized, residents across rural America have banded together to try to keep them out. They say the bigger farms are wreaking havoc on their communities, polluting waterways with manure that can kill fish and sicken people. A popular tool has been county-level ‘local control’ ordinances that govern where a large farm can locate.
“While many states have retained authority over the siting of livestock farms, Missouri has a staunch local-control movement that took root in the early 1990s as corporate-controlled hog processors moved in. In 1999, the Missouri Court of Appeals held that a county can implement an ordinance governing livestock farms, including where they are located, if it is rooted in concerns over public health. Today, more than a dozen of Missouri’s 114 counties have the ordinances.”
Trade
Reuters news reported yesterday that, “Top U.S. and Russian officials are looking at poultry processing alternatives to chlorine in the hopes of finding a solution to a trade spat that has shut U.S. chicken out of its top export market, U.S. Agriculture Secretary Tom Vilsack said on Tuesday.
“After two days of talks, Jim Miller, the USDA’s undersecretary charged with trade matters, will remain in Moscow, Vilsack said.
“‘Hopefully, we get something done in the next couple of days,’ he told reporters on the sidelines of a hearing on Capitol Hill.”
Reuters writer Doug Palmer reported yesterday that, “President Barack Obama’s plan to negotiate an Asia Pacific free trade pact could have a devastating impact on the dairy, sugar and textile sectors in the United States, U.S. industry groups warned on Tuesday.
“Negotiators from the United States, New Zealand, Australia, Peru, Vietnam, Chile, Singapore and Brunei will meet in Melbourne, Australia on March 15 for the first round of talks on the proposed Trans-Pacific Partnership (TPP) pact.
“It is Obama’s first big trade initiative since taking office.”
The article explained that, “Although most major U.S. farm and business groups support the proposed agreement, domestic dairy, sugar and textile groups and their supporters in Congress worry about possibly having to open the U.S. market to foreign competitors.
“‘Any expansion of dairy trade between the U.S. and New Zealand would impose considerable economic harm on U.S. dairy producers, as well as on many in the U.S. dairy processing sector,’ the National Milk Producers Federation said in remarks prepared for a U.S. International Trade Commission hearing on the proposed pact.”
Xinhua News reported today that, “U.S. Secretary of State Hillary Clinton arrived in Brazil Tuesday on a whirlwind visit to meet President Luiz Inacio Lula da Silva and Foreign Minister Celso Amorim to discuss controversial issues.”
The article noted that, “Brazil’s decision to apply sanctions, authorized by the World Trade Organization, against the United States in a dispute over U.S. cotton subsidies is also expected to be discussed between Clinton and Miguel Jorge, Brazil’s development, industry and trade minister.
“On March 8, the Brazilian government will officially disclose a list of goods that will suffer increases in export tariffs to compensate for losses due to those subsidies.”
Keith Good
