ThE hog PRocESSiNg plant in Rantoul is operating again now that Rantoul Foods renovated the facility and reopened it earlier this month. ......................................2
NEW hEalTh caRE deliver y systems likely will be delivered by “creative people in their local communities,” rather than Washington lawmakers. ......4
Monday, June 27, 2011
Two sections Volume 39, No. 26
Economic bull’s-eye forming around direct payments? BY MARTIN ROSS FarmWeek
Periodicals: Time Valued
The timetable for setting “2012” farm bill spending priorities could be greatly accelerated if the U.S. economy takes another serious “shot” this summer, according to American Farm Bureau Federation chief economist Bob Young. During a teleconference with Illinois Farm Bureau board members last week, Young offered “a pretty strong case” to suggest producer direct payments could fall squarely in Congress’ crosshairs within the next several weeks. Meanwhile, IFB’s Farm Policy Task Force at an upcoming meeting will review options for preserving some form of farm safety net. Young anticipates an inflationary resurgence based on key contributors such as an upswing in housing prices linked to a rising consumer price index and the prospect of long-term bond rates climbing rapidly in coming weeks. Federal Reserve Board Chairman Ben Bernanke last
T h E i l l i N o i S Fa R M FaMiliES coalition kicks into high gear this summer by bringing a national program, “Farmers Feed Us,” to Illinois. ..............................12
week seemed “more worried about inflation than ... employment,” Young said. With the Fed’s $25 billion in weekly U.S. Treasury note purchases (a strategy aimed at spurring economic recovery) “about to dry out” and growing political uncertainty about Congress raising the federal debt ceiling, Young sees the possibility of rising interest rates and “some significant market roiling over the course of the next few weeks.” That anxiety could intensify public pressure for substantial federal spending cuts, possibly as a Democrat tradeoff for Republican support for a boost in the debt limit. Total 2012-2021 budget authority is estimated at $46.3 trillion. With hefty Social Security and veterans program spending likely “off the table,” Young sees a roughly $28.9 trillion “pot” open to selected cuts over the next 10 years. House Budget Committee Chairman Paul Ryan (R-Wis.) seeks cuts in direct payments
and crop insurance funding as part of a $4 trillion, 10-year deficit reduction plan. The Congressional Budget Office (CBO) suggests Congress could realize $40.4 billion in 10-year savings in part by reducing direct payment acres by 20 percent and limiting insurance premium subsidies to 50 percent even for higher-coverage “buy-up” policies. That basically leaves the Average Crop Revenue Election (ACRE) program, which has performed well for Illinois corn growers, and Supplemental Revenue (SURE) disaster assistance, which has drawn mixed reviews nationwide. “If we can protect what we have in ACRE and crop insurance, that might be about as good as what we could hope for at this point in time,” IFB President Philip Nelson told board members. “We’ll probably take a hit on direct payments, depending on what (cuts lawmakers) assess to the farm bill.” See Payments, page 4
QUITE A SPRING
Burton Hocking of Albion in Edwards County surveys a field of corn he planted April 8 that already is tasseling and shooting silks. While he started planting his 1,000 acres in early April, he didn’t finish until June 15, more than 10 weeks later because of the 12 to 17 inches of rain that fell in the county from May 2 to June 19. While he expects to begin harvesting early, Hocking says harvest will be a drawn-out process as well. “I should be able to start shelling around Sept. 1. However, harvest will also last about 10 weeks” because of the differing maturity of the crop, he said. (Photo by Rebecca Perry, Edwards County Farm Bureau manager)
Senate battle looming over NPDES permits
The U.S. Senate Ag Committee voted last week to block forthcoming pesticide permit requirements, but a contentious battle likely is ahead on the Senate floor. Barring congressional action, the U.S. Environmental Protection Agency (EPA) is set in November to institute a new Clean Water Act National Pollutant Discharge Elimination System (NPDES) permit for aquatic pesticide applications. The new permit system “jeopardizes the farm economy without providing any real protection to water quality,” National Corn Growers Association President Bart Schott argued. The Reducing Regulatory Burdens Act — approved by the Ag Committee in an informal voice vote — clarifies that the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) is the sole federal authority for pesticide regulation. Senate Majority Leader Harry Reid (DNev.) must OK the bill for a full Senate vote. American Farm Bureau Federation
analyst Tyler Wegmeyer sees Reid torn between two “very opinionated” lawmakers: Senate Ag Chairman Deb Stabenow (D-Mich.) and Senate Environment Committee Chairman Barbara Boxer (D-Calif.). “Boxer says no way — she opposes this altogether, thinks it weakens the Clean Water Act,” Wegmeyer told FarmWeek following a meeting with Reid last week. “She’s mad because she didn’t get jurisdiction over the bill. “Senator Boxer’s a formidable foe to agriculture with regard to environmental regulation and protecting her jurisdiction. She’ll oppose this no matter what, but will she throw herself in front of the bus to stop it? “If we can get it on the floor as a (freestanding) bill and it comes up for unanimous consent, will she hold things up or just vote no?” Wegmeyer was unsure whether supporters could garner the 60 votes needed for approval by simple consent, stressing “it
FarmWeek on the web: FarmWeekNow.com
only takes one senator to object.” However, he notes a lack of major legislative vehicles “actually passing the Senate these days,” and warns attaching the measure to a larger bill that might stall on the floor would be “counterproductive.” Land-based crop applications are exempt from forthcoming permit requirements, but the likelihood of environmentalist “citizen’s lawsuits” raises the specter of regulations beyond existing FIFRA pesticide labeling and applicator licensing-training requirements. Wegmeyer noted a “big gray area” regarding chemical use near water supplies, opening the door for EPA to expand the list of activities subject to permits. “This fix needs to happen for farmers,” he said. “It’s a double-permitting issue. You have a driver’s license to drive a car. If you had to get another permit to drive a car, to do the same thing, pay more money, fill out paperwork, it just wouldn’t make any sense.” — Martin Ross
Illinois Farm Bureau®on the web: www.ilfb.org