January 2009

Direct Line Keeping Our Members Informed kpa@kspork.org • www.kspork.org

Volume XXVIII

2601 Farm Bureau Road • Manhattan, KS 66502 • (785) 776-0442

KPA Annual Meeting to be held February 16 in Topeka All members of the Kansas Pork Association are invited to attend the KPA Annual Meeting to be held Monday, February 16, 2009, beginning at 11:45 a.m., at the Senate Suites, 900 SW Tyler in Topeka.

Four positions on the Kansas Pork Association Executive Board will be elected during the KPA Annual Meeting.

Each position serves a three-year term.

Tom Frederick, Hugoton, is eligible for his second term. Any KPA member may run for an Executive Board position. If you are interested, please call Tim Stroda.

The KPA Policy Handbook was adopted at last year’s annual meeting.

To recieve a copy of the handbook please contact the KPA office. If you would like to suggest revisons to this policy document, please call Tim Stroda at the KPA office.

CAFO’s Subject to New Reporting Rule The Environmental Protection Agency, under the Emergency Planning Community Right to Know Act, has released a final rule on the reporting of emissions from large confined animal feeding operations (CAFOs). Included among facilities that must comply are those confining more than 1,000 beef cattle; 700 mature dairy cows; 1,000 veal calves; 2,500 swine, each weighing 55 lbs. or more; 10,000 swine, each weighting less than 55 lbs.; 500 horses; or 10,000 sheep. The rule requires these CAFOs report ammonia and hydrogen sulfide emissions to state and local emergency response officials if the

operation emits 100 lbs. or more of either substance during a 24-hours period.

Telephone notifications need to be made to emergency officials as soon as possible. A written report is to be submitted within 30 days thereafter to avoid severe penalties. Documents used to estimate emissions and report the information to the appropriate authorities are available on the KPA website or by calling the KPA office.

NPPC Sues EPA On Emissions Reporting Rule On January 19, 2009, the National Pork Producers Council filed a lawsuit in federal court challenging the U.S. Environmental Protection Agency’s decision to require livestock farms to file reports under the Environmental Protection and Community Right To Know Act (EPCRA). NPPC also is alleging that EPA violated the due process rights of farmers by failing to develop an adequate system to accept the reports, making compliance with the law impossible.

“In sticking the agricultural community with this unworkable rule,” said NPPC President Bryan Black, a pork producer from Canal Winchester, Ohio, “EPA not only failed to provide any guidance to farmers on compliance with the new regulation or develop an adequate system to handle the volume of reports that would be filed, but it actively engaged in efforts that undermined the ability of farmers to comply with this new, stringent rule.”

Among those efforts, EPA told state officials not to accept reports and provided on its Web site false and out-ofdata information on filing reports. Additionally, the agency did not issue guidance for complying with the rule until 4:30 p.m.

January 2009

Jan. 16 – the last business day before the filing deadline – giving America’s 67,000 pork producers and hundreds of thousands of other livestock farmers only 30 minutes to receive, read and interpret the guidance and to develop and file the appropriate emissions report.

In the lawsuit it filed in the U.S. Court of Appeals for the District of Columbia Circuit, NPPC is challenging EPA’s decision to exclude livestock operations from the EPCRA agriculture exemption and asking the court to enjoin EPA from enforcing the rule until the agency develops a system that will allow producers to comply.

Legislative Report for January 23, 2009 Up to this point in the session, legislative activity has been dominated by budget discussions.

The Senate Ways & Means Committee has been working on their budget proposal. The Senate proposal could hit the Senate floor for action in the last week of January.

Several of the Committees continued their review of the various state agencies. The Senate and House Agriculture Committees have reviewed the Legislative Post Audit Committee’s report that recommended the combining of the Kansas Animal Health Department and the State Conservation Commission into the Department of Agriculture.

The KPA will host its annual Legislative Reception Monday, February 16, 2009 from 5:00 to 7:00 pm at The Senate Luxury Suites in Topeka. Producers are encouraged to attend the event. Please RSVP with names and the number attending by contacting the KPA office.

Regional seminar explores new lending solutions for pork producers The Kansas Pork Association, the Missouri Pork Association, the Nebraska Pork Producers Association, the Iowa Pork Producers Association, the National Pork Board and National Pork Producers Council teamed up to host a one-day education seminar for 25 agriculture lenders December 11, in St. Joseph, Mo. The goal of the conference was to give lenders an overview of the current situation in the pork industry and educate them on how they can better serve their porkproducing clients.

“Because of the current economic crisis facing the pork industry, many producers are suffering financially and are having difficulty finding ways to remain in business,” said KPA President-CEO Tim Stroda. “The speakers presented the severity of the situation; however, they also highlighted the reasons many pork producers are encouraged by the opportunities for profitability in the next few years.”

Presentations included: Situation Analysis - Mike Laughery,

National Pork Board.

Mike provided a short and long term view of what lies ahead for the pork industry. Attendees can utilize this information when serving their pork clients needs.

Market Outlook on Grain and Pig Prices - Steve Meyer, Paragon Economics Grain and soybean meal prices are in uncharted territory and hog futures are following.

For the first time in 30 years the agricultural market is being driven by macroeconomic factors, global economic growth, international credit and monetary policy, energy markets and related policies on climate and biofuels. This presentation looked at these factors and participants learned how this affects the pork industry.

The Glass is Half Full - John Green, National Pork Board The demand for pork in the U.S. and abroad is strong and growing. This presentation will detail the domestic demand growth of pork at restaurants and at the local grocery store. In addition, the inter-

Direct Line Keeping Our Members Informed

national market for U.S. Pork has been expanding at a record pace in 2008. Can these trends continue and what does that mean for U.S. pork producers in 2009 and beyond?

Risk Management - Tom Clark, CME Group Risk Management has always played a key role in a successful agri-business. Today’s producers face unprecedented price, volatility and uncertainty in the markets.

Tom discussed how producers can use futures and options for risk management, to lock-in production price levels and input costs by hedging.

Responsible Pork Initiative Dallas Hockman, National Pork Producers Council Dallas gave a history of this producerled initiative as well as providing a general outline for the program’s future activities.

Power points of the presentations are available on the KLA website or contact the KPA office.