Georgia Farm Bureau's Leadership Alert - June 30, 2010

June 30, 2010

www.gfb.org

Vol. 28 No. 26

RUSSIA AGREES TO ACCEPT IMPORTS OF U.S. POULTRY The United States and Russia reached an agreement last week to allow U.S. poultry exports to Russia to resume, though U.S. processors will likely be required to alter their disinfectant and pathogen-removal practices.

A Russian ban on imports of poultry rinsed in chlorinated water went into effect January 1, eliminating nearly all imports of poultry produced in the U.S. Russian officials declared that chlorine on poultry presents a danger to public health.

The ban followed the lead of the European Union (EU), which has prohibited imports of U.S. poultry since 1997. The disinfectant and pathogen-removal practices employed by U.S. poultry producers have been deemed safe by EU food safety authorities and are consistent with World Trade Organization (WTO) guidelines, but the EU ban has remained in place. The EU ban is under review by a WTO investigative panel, which was formed following a request from U.S. Trade Representative Ron Kirk last fall. The panel’s ruling is expected later this year.

Following last week’s meeting between President Barack Obama and Russian President Dmitry Medvedev, Russia said it will allow imports of U.S. poultry with assurances that the carcasses have been treated with antibacterial solutions that do not include chlorine. According to published reports, Russia will accept poultry that has been treated with cetylpyridinium (sold under the Cecure brand), hydrogen peroxide or peroxyacetic acid.

“This is an important achievement for U.S. Agriculture,” said Agriculture Secretary Tom Vilsack. “Russia has long been the largest export market for U.S. poultry and regaining access to that market has been a top priority for the Obama administration. I am pleased our countries have come to an agreement that will reopen this valuable market to U.S. producers.”

Once the agreement is signed, U.S. producers can resume shipping poultry to Russia, which prior to the ban was the largest importer of U.S. chicken. In 2008, U.S. poultry exports to Russia were valued at $767 million.

Under the agreement, the U.S. will publish information on the USDA Web site about which disinfectants and pathogen reductions are approved by Russia for use in processing poultry. The U.S. will also provide information to Russia on the solutions companies use on poultry shipped to Russia and a list of poultry processing facilities authorized to ship poultry to Russia.

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DOT DELAYS PROPOSED PEANUT BAN ON AIRLINES The U.S. Department of Transportation (DOT) issued a clarification on June 22 regarding its proposed rules regarding airline travel that among other things would have imposed on-board restrictions for serving peanuts as snacks.

Transportation Secretary Ray LaHood notified multiple Congressmen, including Rep. Sanford Bishop (D-Ga.), that the DOT would comply with the provisions of Public Law 106-69. The law specifies that airlines will not be required to provide peanut-restricted areas on their aircraft until 90 days after the submission to Congress and the Secretary of Transportation of peer-reviewed scientific studies that determine “there are severe reactions by passengers to peanuts as a result of contact with very small airborne peanut particles of the kind that passengers might encounter on an aircraft.”

The notice of proposed rulemaking was issued on June 8, and on June 10 Rep. Bishop sent a letter to LaHood reminding him that the law prohibits DOT from specifically banning peanuts on airplanes.

“This is great news for all peanut producers, especially those in Georgia. We have a long and proud history of peanuts in Georgia and it has been a privilege to do all I can to protect this vital part of our state’s economy,” Bishop said.

To submit a comment on the DOT’s proposed rule, please visit www.regulations.gov/search/Regs/home.html#documentDetail?R=0900006480afe2f8, then click the “submit comment” link. The DOT is accepting public comments on the proposed rule on enhancing airline passenger protections through Aug. 9.

MARKETING FAIRNESS RULE PROPOSED BY USDA At the direction of the 2008 farm bill and at the urging of hundreds of organizations across the country, the United States Department of Agriculture (USDA) announced on June 18 that the Grain, Inspection and Stockyards Administration (GIPSA) would publish a proposed rule providing protections for livestock and poultry producers against “unfair, fraudulent and retaliatory practices.”

Agriculture Secretary Tom Vilsack heard multiple concerns during his Administration Rural Tour in 2009 and earlier this year in joint USDA-Department of Justice workshops, many of them centering on increasing consolidation and vertical integration in the livestock and poultry industries.

The proposed rule would establish new protections for producers that choose arbitration to remedy disputes, require uniform base pay to growers raising the same type and kind of poultry, require 90-day advance notice when a company intends to suspend delivery of birds, require sample contracts to be made available on GIPSA’s Web site for producers, outline protections so producers can remedy a breach of contract and place limits on exclusive arrangements between packers and dealers.

Visit www.gipsa.usda.gov for copies of the proposed rule and additional information.

GIPSA is accepting comments until Aug. 23. Comments may be submitted by email to comments.gipsa@usda.gov or by mail to Tess Butler, GIPSA, USDA, 1400 Independence Ave. SW, Room 1643-S, Washington, DC 20250-3604.

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EPA DELAYS DECISION ON BLEND RATE OF ETHANOL IN GASOLINE In a move that drew criticism from members of Congress, the U.S. Environmental Protection Agency (EPA) put off its decision on the blend rate of ethanol in gasoline until the fall, citing a need for additional testing of vehicles powered by gasoline containing 15 percent ethanol.

The EPA originally was scheduled to issue a decision in December 2009 on whether to increase the maximum ethanol blend in motor fuel from 10 percent to 15 percent, but at that time cited a similar need for more testing and delayed the decision until this month.

A decision will come after tests by the Department of Energy on vehicles built after 2007 are completed. That testing is now expected to be completed in September, according to a story in the Washington Post.

The EPA has indicated preliminary tests are positive and should be completed by early fall, but with oil consumption brought to the height of public consciousness because of the Gulf of Mexico oil disaster, there are more calls to expedite the transition to a higher ethanol content.

“The EPA’s delay is frustrating,” said American Farm Bureau Federation President Bob Stallman. “The request to increase the percentage of ethanol that could be blended into our domestic gasoline supply to E15 should be a front-burner issue for EPA. This matter has been in front of the agency since long before the Gulf oil disaster. Ethanol is a cleanburning, home-grown renewable fuel that makes sense.”

Rep. Stephanie Herseth Sandlin (D-S.D.) called the delay “inexcusable” and Sen. Tom Harkin (D-Iowa) expressed his belief that Obama administration officials are biased against ethanol.

TAX EXTENDERS BILL STALLS IN SENATE The American Jobs and Closing Tax Loopholes Act, which includes agricultural disaster relief and several other provisions favorable to agriculture, failed in the Senate after multiple attempts to reduce its costs.

The bill, H.R. 4213, which passed the House on May 28, was supported by Farm Bureau because it extended tax incentives for biodiesel and renewable diesel. The bill also included relief provisions for agricultural operations that sustained losses due to natural disasters in 2009, many of which are not eligible for assistance under the disaster package in the 2008 farm bill. The bill extended the five-year depreciation for farming business machinery and equipment. It also extended a deduction for state and local general sales taxes, additional standard deduction for real property taxes, deductions for qualified tuition and related educational expenses, a credit for electricity produced at certain open-loop biomass facilities, a tax incentive for liquid fuels derived from biomass used as fuel in transportation vehicles and provisions encouraging contributions for conservation purposes.

Those components were part of an overall bill that would have increased the federal deficit by $55.1 billion over 10 years according to Congressional Budget Office estimates, a point that drew criticisms from both parties in the Senate.

Sen. Max Baucus (D-Mont.) submitted cost-reducing amendments to address the deficit concerns, but failed to garner enough support for passage.

Leadership Alert page 4 of 4 UPCOMING EVENTS 2010 SUNBELT AG EXPO FIELD DAY July 8 Spence Field Moultrie Field tours for this annual event begin at 8:30 a.m., but visitors are encouraged to arrive early. Attendees who register by 8:15 a.m. will be entered in an early bird drawing for $100. More than 140 varieties of cotton, peanuts, corn, soybeans and grain sorghum from 25 companies will be on display. The field day will also feature plots of energy grasses and the latest pesticide and irrigation technology research.

Certified crop advisor credits will be given for attending the event. Lunch will be served around noon.

Visit www.sunbeltexpo.com or call 229-985-1968 for more information.

GFB AG IN THE CLASSROOM PLU COURSE July 13-15 FFA/FCCLA Camp Covington July 19-21 GFB Headquarters Macon This fun three-day course, which runs from 8:30 a.m. to 4:30 p.m. each day, is matched to state standards and provides two Professional Learning Units for teachers upon completion. It gives teachers a variety of classroom resources. Cost is $39 and includes lunches. To register, contact Donna Rocker at dhrocker@gfb.org or 800-898-1911, ext. 5365.

UGA TURFGRASS FIELD DAY Aug. 4 UGA Griffin Campus 8 a.m. - 2 p.m.

Griffin This event will present the latest research information on management of turfgrass varieties grown in Georgia. The morning sessions will also be offered in Spanish. Participants can earn four hours of Georgia Pesticide License Credit in category 24 and four hours in category 21. Registration fee is $50 until July 21 and $65 after July 21. For information or to register, visit www.GeorgiaTurf.com or call 770-229-3477.

PROGRESSIVE AGRICULTURE SAFETY DAY Aug. 28 Habersham County Fairgrounds Clarkesville This event, which last from 8a.m. to 5p.m., is open to children ages 5 – 13 and utilizes interactive activities to teach kids about farm and rural safety. Topics include snake and wildlife safety, ATV safety, chemical safety, meth awareness, and tractor/PTO safety. Children ages 9 and under must be supervised by an adult. For information or to register please contact Habersham County Farm Bureau at 706-7766739 or jhcanup@gfb.org.