Ag News: Monday, November 21

"House Passes Budget Plan, NFU & NACD Disappointed"
The House passed its budget reconciliation legislation by an extremely narrow two-vote margin in the early hours of the morning Friday. The legislation includes 3.7-billion dollars in cuts to farm and food programs - including more than a-billion in cuts to domestic commodity programs in 2006 through 2010. No Democrats voted for the legislation. And according to Congressional Quartely - GOP leaders had to agree to several demands late Thursday to win the necessary votes of GOP moderates to pass the 49.9-billion dollar spending cut bill. National Farmers Union says passage of the Deficit Reduction Act is the wrong move at the wrong time. NFU President Dave Frederickson says it's already a tough time for farmers because of low commodity prices - high energy costs and adverse weather conditions. And he says the House plan makes the bad situation even worse - placing an even bigger burden on U.S. farmers and ranchers. NFU isn't alone in expressing concerns about the proposed cuts to federal farm program spending. The National Association of Conservation Districts is urging the chairmen of the House and Senate Ag Committees to treat conservation programs fairly in the House-Senate conference on budget reconciliation. NACD President Bill Wilson says - while cuts to conservation programs seem inevitable - NACD remains deeply concerned about proposed cuts to conservation programs. But with the Senate passing a plan to cut just 35-billion dollars in federal spending - the House-Senate conference will likely be extremely difficult. And if conferees ever reach a final agreement - adoption of that plan in the House could prove tough as well.

"House Speaker Promises MILC Extension"
Things are looking up for supporters of the Milk Income Loss Contract program - or MILC - a program that expired on September 30th this year. Many in the dairy industry had given up on an extension of the program - even though the Senate included a two-year extension of MILC in its budget reconciliation package. While that was a positive step for MILC supporters - the House did not include an extension in its version of the budget reconciliation. But now - according to Wisconsin GOP Congressman Mark Green - House Speaker Dennis Hastert is promising to order House negotiators to include a MILC extension in the House-Senate budget reconciliation conference report. Green says nothing is set in stone - but with Hastert's instruction to his conferees - and MILC supporter Jim Nussle of Iowa chairing the conference committee - Green says this is a huge step in the right direction. MILC won't be extended in its original form. The Senate did make changes to the program. But Green says just carrying the program through to the next farm bill is important. The primary opposition to the MILC program comes from western states with larger dairy operations. But MILC does have the support of President Bush - who spoke in favor of extending MILC during his 2004 re-election campaign.

"NCBA: Don't Re-open Border to Canada Until Animal Health Issues Resolved"
Last week - APHIS Administrator Dr. Ron DeHaven said USDA would expedite new rules to allow Canadian cattle over 30-months of age back into the U.S. R-CALF USA immediately condemned the move as a threat to U.S. animal and public health. And now - the National Cattlemen's Beef Association says it also opposes re-opening the border to older Canadian cattle - but for a different reason. NCBA says it will not support trade with Canada on cattle over 30 months old until science-based harmonization is achieved on all animal health issues. NCBA is particularly concerned about Canada’s restrictions on U.S. breeding stock and feeder cattle related to anaplasmosis and bluetongue. NCBA says those restrictions have placed undue hardship on America’s cattle producers for too long. NCBA says it will never favor any change in trade policy that threatens our herd health or the safety of our food supply. But NCBA says it doesn't believe Canadian cattle pose any such threat - and they say it is irresponsible to suggest otherwise. NCBA CEO Terry Stokes met last week with Canadian officials on the anaplasmosis and bluetongue issues. He says he expects a successful resolution to those problems by mid-2006.

"Legislation to Repeal Delayed Implementation of COOL Introduced"
The fiscal year 2006 ag appropriations bill signed by President Bush earlier this month included another delay in implementation of mandatory country-of-origin meat labeling. COOL supporters are fed up - and Thursday - a bi-partisan group of U.S. Senators announced the introduction of a bill that would restore implementation to September 30th of 2006. R-CALF says the continued support of Senate members is extremely important and appreciated. But the organization understands that getting the bill through Congress will be an uphill battle - particularly in the House. But R-CALF is confident that - with the support of COOL champions in the Senate and House - farmers and consumers can look forward to the implementation of M-COOL. The bill's primary sponsor - Montana Republican Conrad Burns - is joined by Democrats Max Baucus of Montana, Kent Conrad and Byron Dorgan of North Dakota, Tim Johnson of South Dakota and Iowa's Tom Harkin - as well as Republicans Craig Thomas and Michael Enzi of Wyoming, Chuck Grassley of Iowa and John Thune of South Dakota.

"Johanns In Rome for FAO Ministerial"
U.S. Ag Secretary Mike Johanns is in Rome leading the U.S. delegation to the 33rd Ministerial Conference of the United Nations Food and Agriculture Organization - or FAO. During the conference - Johanns will present the U.S. view on the state of food and agriculture - and will meet with ag ministers from around the world - and high-level FAO officials. Johanns says the conference brings FAO and World Trade Organization member countries together and provides an opportunity to bridge differences so a framework for completing the Doha Round can be set. That conference started on the 20th and wraps up on the 23rd.

"Johanns Announces Replacement for Davidson"
U.S. Ag Secretary Mike Johanns has named a replacement for former Risk Management Agency Administrator Ross Davidson. The new RMA chief is Eldon Gould. Johanns says Gould's experience at the local, state and federal levels - along with his personal history of agricultural production - make him qualified to lead RMA into the future. According to USDA - Gould has served on a number of boards of directors - including for the Illinois Farm Bureau - the U.S. Grains Council - and the U.S. Meat Export Federation - among others. Gould has also been involved with organizations like 4-H. Gould will be charged with managing the Federal Crop Insurance Corporation Board and implementing the crop insurance program - which includes evaluating new products and promoting risk management strategies.

"Chambliss, Harkin Introduce POPs Bill"
Currently - the U.S. is only an observer at the table where decisions on international pesticide policy and regulation are made. But Senate Ag Committee Chairman Saxby Chambliss and Ranking Democratic Senator Tom Harkin would like to change that - and believe legislation they introduced Thursday is a positive step toward that goal. According to Chambliss - the bill will implement America's pesticide-related obligations under agreements for a group of 12 toxic chemicals known as persistent organic pollutants - or POPs. He says passing the bill will help the U.S. reclaim its position as a world leader in the safe management of hazardous chemicals. Harkin says the legislation is critical to the control and elimination of the use of chemicals with the greatest potential for long-term damage to the environment. Implementing legislation would prohibit the sale, distribution, use, production or proposal of toxic POPs - and would add export reporting and labeling requirements - among other things.

"Budget & Strategic Plan Approved by National Pork Board"
The National Pork Board has approved its 2006 strategic plan and budget - calling for 48.8-million dollars in Pork Checkoff revenue to address nine critical issues already identified by the board. The issues identified in the 2006 strategic plan as critical include promoting domestic demand - early identification and management of issues - transfer and deployment of knowledge to producers - developing partnerships and alliances inside and outside the pork industry - improving the overall image of the pork industry - resolution of the swine welfare issue with customers - developing a long-range strategy for U.S. pork exports - continuing to develop the industry’s future leaders - and finding answers to the odor issue. About half of the recommended budget would be used for demand-building efforts - including continuing the new 'Don't Be Blah' campaign. Another 10.5-million is earmarked for promotion, research and consumer information programs at the state level. According to NPB President Danita Rodibaugh - the board's budget decisions are based on an industry forecast that 104.2-million hogs will be marketed at a live weight average of 271 pounds - with market prices expected to average between $42.50 and $45.80 per hundredweight - and pork producers contributing four-tenths of one-percent from the sale of their hogs to the Checkoff. U.S. Ag Secretary Mike Johanns must now approve the Pork Board's strategic plan and budget.