Senate Ag Committee Chairwoman Debbie Stabenow and Ranking Member Pat Roberts held the first Farm Bill field hearing at Michigan State University Tuesday. The discussion was focused on how the committee can strengthen the 2012 Farm Bill to boost the economy and create jobs. Stabenow says the ag sector has grown at a faster rate than the rest of the economy – and she is committed to keeping that momentum going. Roberts says the perspective of the 15 witnesses at the hearing- and that of other farmers and ranchers – will be critical in drafting policies that provide producers and rural America with the tools necessary for success.

The ag spending measure approved by the House Appropriations Committee includes language that would prevent USDA from implementing the so-called GIPSA rule. The National Cattlemen’s Beef Association, National Pork Producers Council and National Turkey Federation praised the move. The legislation to fund USDA, FDA and related agencies for fiscal year 2012 denies money for GIPSA to promulgate the proposed livestock and marketing regulation. NCBA President Bill Donald says this will prevent government intervention into the private marketplace. According to Donald – the marketplace works well without government intrusion.

National Turkey Federation Secretary-Treasurer John Burkel says the GIPSA rule affects all farmers and ranchers – limiting their ability to enter into marketing agreements. He adds it would result in job losses – and commends the Appropriations Committee for putting the brakes on the rule. NPPC President Doug Wolf says the committee’s action will give livestock and poultry producers a much-needed timeout on the GIPSA rule and prompt USDA to write a regulation that’s consistent with what Congress asked it to do.

According to National Farmers Union President Roger Johnson – farmers and ranchers understand the need to do their part to trim the deficit – but says the ag spending bill approved by the House Appropriations Committee has agriculture shouldering a disproportionate share of the burden. He notes the economy – especially in rural areas – is on the edge of recovery. When funding is slashed for research, rural development and renewable energy – Johnson says we’re taking our foot off of the accelerator and stepping on the brakes.

Johnson believes the most egregious part of the proposal is language that would stop the writing and implementation of the proposed GIPSA rule. He calls the language a blatant attempt to advance a policy goal through appropriations – and urges that funds for the enforcement of the rule be reinstated in future versions of the ag appropriations bill

The House Appropriations Committee has approved the Ag Appropriations bill for fiscal year 2012. The legislation includes 125.5-billion dollars in discretionary and mandatory funding – more than seven-billion dollars less than the President requested. Discretionary spending is down 2.7-billion from last year’s level – a cut of more than five-billion dollars from the President’s request. Committee Chairman Hal Rogers says the legislation reflects the hard decisions to cut lower priority programs, reduce spending in programs that can be scaled back and target funds where they are needed most. Admitting the cuts are significant – Rogers says the bill provides the funding needed to encourage the economic development of rural communities, sustain the food and nutrition programs that assist low-income families and keep the nation’s food supply safe.

Several amendments were adopted at the full committee mark up of the Ag Appropriations measure. One that would prohibit funding for USDA inspections at U.S. horse slaughter facilities – which would essentially prevent horse slaughtering at these facilities was approved on a 24 to 21 vote. The committee voted 29 to 20 to approve an amendment that would prohibit funds to the FDA for rulemaking activities or guidance unless the Ag Secretary bases decisions on hard science and determines the benefit of the rule or guidance justifies action. And an amendment to prohibit funds for certain direct farm bill payments for applicants with incomes exceeding 250-thousand dollars passed on a voice vote.

Gary Wheeler, Vice President of Operations and Grower Services talks about the Missouri Corn Growers upcoming golf tournaments, the benefits of membership and how the Missouri Corn Growers Association continues to grow…..

Last week, Iowa Governor Terry Branstad signed legislation that encourages the production and distribution of biodiesel. The legislation creates a system that encourages availability of biodiesel at the pump, provides an incentive for local production, and invests in the infrastructure needed for wide distribution. The National Biodiesel Board says the new law will help put Americans back to work while enhancing the Heartland’s contribution to national energy security.

Shelby Neal, director of state governmental affairs for the National Biodiesel Board, says – the bill positions Iowa among the elite states in terms of having a comprehensive set of biodiesel policies that help create a positive business climate. Iowa has 15 biodiesel plants and like many other states, its production facilities were mostly idle or forced to drastically cut production in the past year.  That reduction was largely due to the lapse of the federal tax incentive, which has since been restored.

The Iowa law will enhance the state’s role in meeting the demand created by the federal Renewable Fuels Standard-2.  The legislation provides retailer credits, a biodiesel producer incentive, funds the state’s Renewable Fuels Infrastructure Board, and provides the Iowa Biodiesel Board with representation on the Renewable Fuels Infrastructure Board. The biodiesel industry is poised to sell 800-million gallons of biodiesel nationally this year. Iowa’s capacity is about 300-million gallons a year.

According to an update from the National Pork Producers Council, Agriculture Secretary Tom Vilsack has said he will not withdraw a proposed rule on buying and selling livestock and poultry. The statement came following a letter the Secretary received from 147 House lawmakers asking that the proposed rule be withdrawn and that USDA propose a regulation – more consistent with the intent of Congress as outlined in the 2008 Farm Bill.

Under the farm bill, USDA is to promulgate new regulations under the Packers and Stockyards Act to address five specific areas related to livestock and poultry contracts. The bi-partisan letter highlighted concerns about the process and cited this as the reason the USDA should withdraw and re-propose.

A recent analysis of the proposed regulation conducted by Informa Economics found that it would cost the U.S. pork industry nearly 400-million dollars annually, resulting in 2,000 direct pork related job losses. NPPC – like the 147 bi-partisan House members – has strongly urged USDA to be open and transparent in its regulatory dealings with the U.S. pork industry.

Funding for agricultural research, rural development, conservation programs and nutrition was cut significantly in the proposed House Ag Appropriations bill for fiscal year 2012. The measure also includes a rider preventing implementation of the proposed GIPSA Rule. National Farmers Union President Roger Johnson wrote a letter to the House Appropriations Committee saying fiscal responsibility shouldn’t entail cutting costs to realize short-term savings that result in increased long-term expenses.

Johnson says the proposed ag spending cuts will be a serious mistake as the U.S. tries to emerge from the economic downturn. He also says the GIPSA rule is long overdue as it proposes to restore competition to the livestock and poultry marketplace. He urges Congress to ensure funding reductions are proportionate across all federal program areas – not unfairly burdening agriculture with cuts. Agriculture’s budget – under the proposed bill – will have been cut 26-percent in the past two years.

The American Farm Bureau Federation says a new three-percent withholding tax on government payments for goods and services has the potential to reduce the effectiveness of USDA programs that are designed to protect and improve the environment. AFBF says it would oppose the new withholding tax – which is slated to begin in 2013. The organization says the tax has the potential to create cash-flow problems for farmers and ranchers. Reducing farm revenue by three-percent of government safety net payments – AFBF says – will make it harder for farmers to purchase supplies and equipment they need to do their jobs.

Another problem AFBF says potentially could come from the tax is the availability and affordability of health care in rural America. Even though nearly 25-percent of the population lives in rural areas – AFBF notes only 10-percent of physicians practice in rural America – and there are far fewer specialists. Twenty-three-percent of rural Americans are on Medicare – and AFBF says withholding three-percent of Medicare payments will make it harder to maintain rural health facilities and more difficult to attract doctors to rural areas.

Cliff Becker from CMA Consulting works with the Center for Food Integrity.   He visits with KFEQ Farm Director Tom Brand about the center’s animal agriculture committee and the Kansas Soybean Commission’s involvement.

The Center for Food Integrity’s animal agriculture committee brings together a national network of well-informed, well-prepared, highly motivated organizations and individuals that collaborates to build public trust and confidence in U.S. animal agriculture. That is accomplished through shared values; being the ethical choice for people, animals and the planet; and supporting food choices. Those messages are shared through public speaking, media interviews and social-media engagement. The committee met in Chicago earlier this month, and the Kansas Soybean Commission has a seat at the table because it understands domestic poultry and livestock production is the No. 1 customer for U.S. soybeans. About 98 percent of the soybean meal used in the United States goes into livestock and poultry feeds.