Regulations; Ag Economy; and, Policy Issues- Wednesday Posted By Keith Good On September 10, 2014 Regulations- Water Issues, Endangered Species Act, and CFTC AP writer Matthew Daly reported yesterday that, “The Republican-controlled House on Tuesday approved a bill to block the Obama administration from implementing a rule that asserts regulatory authority over many of the nation’s streams and wetlands — an action that critics call a classic Washington overreach. “The Environmental Protection Agency has proposed a rule that it says will clarify which streams and waterways are shielded from development under the Clean Water Act, an issue that remains in dispute even after two U.S. Supreme Court rulings. “Agriculture groups and farm-state politicians call the proposed rule a power grab that would allow the government to dictate what farmers can do on their own land. They said the rule is an example of governmental interference by bureaucrats who don’t know as much as farmers and ranchers do about how to be good stewards of their land.” Mr. Daly noted that, “The House approved the bill, 262-152. Thirty-five Democrats joined 227 Republicans to support the bill. Rep. Chris Smith, R-N.J., was the sole Republican to oppose it. “The measure is not expected to advance in the Democratic-controlled Senate.” “In any case, the White House has threatened to veto the bill, saying the federal rule is needed to ensure clean water for future generations and to reduce regulatory uncertainty.” Chris Clayton reported yesterday at the DTN Ag Policy Blog that, “Thirteen of the Democrats who sided with Republicans on the bill are members of the House Agriculture Committee. “‘This legislation is necessary because, in my view, the EPA does not seem to understand the real world effects these regulations will have on farmers across the country,’ said House Ag Ranking Member Collin Peterson, D-Minn., during the floor debate. ‘We still don’t have any clear definition of a wetland, an issue dating back to the 80s and 90s. Maps used by USDA were unclear and often mislabeled wetlands. This rule would only add more uncertainty.’ “Peterson added, ‘In my state, USDA’s Natural Resources Conservation Service has done a great job working with farmers to encourage voluntary conservation efforts. This rule would severely disrupt these positive efforts.’” Mr. Clayton noted that, “Democrats opposing the bill cited current problems with water quality. The most dramatic was Rep. Marcy Kaptur, D–Ohio, who called the legislation a ‘death bill.’ Kaptur held up a Mason jar full of algae from Lake Erie. Such algae built up around an intake valve for the city water treatment plant for Toledo, Ohio, forcing city officials to warn residents not to drink city water for three days.” The DTN update added that, “‘I am pleased the House approved this bipartisan, commonsense bill to block the EPA from expanding its control of our nation’s land and water resources,’ said House Agriculture Committee Chairman Frank Lucas, R-Okla. ‘Whether it’s trying to regulate farm dust out of existence, milk as oil, or now treat ditches like major water tributaries, the EPA has demonstrated a hunger for power and a lack of understanding of how its actions impact America’s farmers and ranchers. The agency’s latest action would trigger an onslaught of additional permitting and regulatory requirements for our agricultural producers to protect not our great natural resources, but rather our backyard ponds.’” Representatives Kristi Noem (R., S.D.), Adrian Smith (R., Neb.), Kevin Cramer (R, N.D.), and Randy Neugebauer (R., Tex.) were among lawmakers that issued statements in support of the House action yesterday. DTN Political Correspondent Jerry Hagstrom reported yesterday that, “While the Republican-leaning American Farm Bureau Federation and other farm groups have opposed the Waters of the U.S. (WOTUS) rule on the grounds it will allow EPA to intrude on farmers’ property, the Democratic-leaning Farmers Union [NFU] has taken a neutral position on the rule and is participating in the rulemaking process. [EPA Administrator Gina McCarthy] spoke to NFU members Monday about WOTUS and the Renewable Fuel Standard.” The DTN article stated: “Noting that the WOTUS comment period ends October 20, McCarthy concluded that ‘EPA is not interested in moving forward with a rule that makes farming more difficult. It is about protecting the natural resources.’” Mr. Hagstrom added that, “On the Renewable Fuel Standard, McCarthy said EPA and OMB, where the rule is now under study, will take into consideration changes in gasoline usage and energy production since the proposed rule was released last spring. “‘You will see this rule coming out with changed numbers as a result,’ McCarthy said. “‘Biofuels is just getting to that point that all the investment in this foundation is starting to pay off.’” Meanwhile, a news release yesterday from the National Milk Producers Federation (NMPF) and the National Association of Clean Water Agencies (NACWA) stated that, “[NACWA] and [NMPF] signed a Memorandum of Understanding (MOU) today to promote increased cooperation and communication between the two organizations in their efforts to make watershed-level water quality improvements. This MOU marks an important milestone in efforts to strengthen ties between urban and rural sectors on conservation activities to improve local water quality and the environment.” In other regulatory developments, a news release yesterday from the House Natural Resources Committee stated that, “Today, the House Natural Resources Committee held a Full Committee legislative hearing on six pieces of legislation aimed at updating and improving the Endangered Species Act (ESA), a law that has not been reauthorized since 1988. This hearing is the latest in the Committee’s efforts to review the ESA to make sure that this important law is working in the best interests of species and people.” “Witnesses at today’s hearing reiterated that transparency, sound science, and state, local, and tribal input, should driving listing decisions not closed-door court settlements with litigious environmental organizations,” the release said. A related update yesterday from Rep. Rick Crawford (R., Ark.) noted that, “[Rep. Crawford] released a statement Tuesday expressing his gratitude to the House Committee on Natural Resources and committee chairman Doc Hastings for holding a hearing held regarding Crawford’s legislation, H.R. 4319, the Common Sense in Species Protection Act…‘The Common Sense in Species Protection Act would add transparency and accountability while also ensuring that truly endangered species are considered for protection by the Fish & Wildlife Service,’ said Crawford. ‘I believe that adding the requirement that a full economic analysis be performed and considered during the process, will afford individuals, businesses, and municipalities the opportunity to be more aware of what a critical habitat designation would mean for them and their communities.’” And a news release yesterday from Todd Staples, the Texas Department of Agriculture Commissioner, noted that, “[Staples] today testified before the U.S. House Committee on Natural Resources. Committee members considered six bills to amend the Endangered Species Act (ESA). Commissioner Staples spoke in support of H.R. 4284, the ESA Improvement Act of 2014, sponsored by Congressman Randy Neugebauer (R-TX19).” Andrew Ackerman reported in today’s Wall Street Journal that, “U.S. commodity regulators took long-awaited steps to make it easier for hedge funds and other firms to raise cash by publicly advertising stakes in their funds. “The Commodity Futures Trading Commission late Tuesday eased long-standing marketing restrictions on so-called private offerings by hedge funds and other funds sold only to wealthy investors, a move aimed at aligning the CFTC’s restrictions with similar rules set by the Securities and Exchange Commission.” Agricultural Economy Bloomberg writer Jeff Wilson reported yesterday that, “After soybean fields from North Dakota to Ohio got more than twice the normal rainfall in August, Iowa farmer Jason Marienau expects the wet weather that plumped up his beans to boost yields to a record. “The showers helped fill his pods with fatter seeds, and the crop looks so good he estimates this year 2,300 beans will weigh one pound (0.45 kilogram), compared with 3,000 in a normal year, on some of his fields near Le Mars, in northwest Iowa. Higher prices before sowing started prompted U.S farmers to plant 11 percent more than in 2013, and the bigger yields are raising the outlook for a harvest that the government already forecast at an all-time high.” The article noted that, “Production in the U.S., the world’s largest grower and exporter, will be 2 percent bigger than the government estimated last month, and inventories before the 2015 harvest will more than triple, a Bloomberg survey showed. Rising supplies will send prices that reached a four-year low last week down a further 10 percent by October, according to AgResource Co. The glut will cut feed costs for hog and poultry producers.” Mr. Wilson pointed out that, “U.S. output will jump 18 percent this year to an all-time high of 3.894 billion bushels on record yields of 46.3 bushels an acre, the average of 32 forecasts in a Bloomberg survey showed. Supplies are climbing as domestic farmers are also poised to collect the biggest corn crop ever and global wheat reserves are set to reach a three-year high, the Department of Agriculture estimates. The agency will update its crop outlook Sept. 11 at noon in Washington.” Reuters writer Julie Ingwersen reported today that, “Soybeans sagged two days ahead of a monthly U.S. Department of Agriculture crop report in which analysts expect the government to raise its already record-high forecasts for the U.S. corn and soybean crops.” From an international perspective, Reuters writer Gustavo Bonato reported last week that, “Brazilian soy farmers are about to start sowing what could be a third consecutive record crop, but caution is their motto as near-term weather forecasts are less than ideal and low grain prices combined with rising costs are squeezing margins.” And Bloomberg writer Claudia Carpenter reported yesterday that, “Soybean output in China, the world’s largest consumer, will decline more than forecast to the smallest in 22 years as farmers switch to corn, Oil World said. “The estimate is 11.7 million metric tons, down about 4 percent from last year and 10 percent below the crop two years ago, the Hamburg-based research company said in a report. The previous forecast was 11.8 million tons. The 2013 estimate was raised to 12.2 million tons from 12 million tons.” More specifically on the corn market, Bloomberg writer Lydia Mulvany reported yesterday that, “Corn futures extended a slump to a 50-month low as waning prospects for frost damage this week boosted speculation that crop yields will be bigger than the government forecast in the U.S., the world’s top producer.” Meanwhile, University of Illinois agricultural economist Gary Schnitkey indicated yesterday at the farmdoc daily blog (“Cash Rents in 2014 and Expected Cash Rents in 2015”) that, “In recent weeks, two sources released cash rent information for Illinois. The U.S. Department of Agriculture released county average cash rents for 2014. The Illinois Society of Professional Farm Managers and Rural Appraisers released 2014 and expected 2015 cash rents for professionally managed farmland. Expected 2015 rents point to decreasing cash rent levels on professionally managed farmland. Whether or not other cash rents follow professionally managed cash rents down is an open question.” Last week the National Oceanic and Atmospheric Administration (NOAA) released its Drought Outlook for September 2014. In part, the NOAA update stated that, “Drought in the far West and the southern portion of the Great Plains—regions that are already experiencing extreme and exceptional drought—will likely continue or worsen through September. Drought will also tend to continue in patches of the Southeast and may develop in portions of the Northwest. Across Arizona, western New Mexico, southeastern Colorado, Kansas, and southern Texas, drought conditions are likely to improve or end [related graph].” Henry Fountain reported in today’s New York Times that, “Long-term weather forecasters say it is now unlikely that a strong El Niño will develop this fall, dimming hopes in California for heavy rains that might bring relief from a severe drought. “In its latest monthly forecast, the federal Climate Prediction Center in College Park, Md., said that while there was still about a two in three chance that El Niño would develop, perhaps in the next two months, it would most likely be weak.” And Joshua Partlow reported this week at The Washington Post Online that, “In 1945, President Harry S. Truman signed a treaty intended to bring fair play to the fight for water in the parched deserts of the U.S.-Mexico borderlands.” The Post article explained that, “The historic drought across the western United States that has drained the water table in California and devastated rivers and reservoirs in Arizona has intensified a diplomatic dispute here along the Texas border. Under the terms of the treaty, the United States is obliged to give Mexico water from the Colorado River, while Mexico must transfer water from the Rio Grande and its tributaries. “But in recent years, Mexico has fallen behind on its obligation. The accounting for the water sharing is tallied in five-year cycles. And at this point, in the fourth year of the present cycle, Mexico owes the United States 380,000 acre-feet of water, more than all the water consumed in a year by the 1.5 million residents of the Lower Rio Grande Valley in Texas.” With respect to transportation issues, recall that the Senate Commerce, Science and Transportation Committee will hold a hearing this afternoon titled, “Freight Rail Service: Improving the Performance of America’s Rail System.” And in trade developments, Bloomberg writer John Boudreau reported yesterday that, “Talks between 12 nations drafting a Pacific-region trade agreement made progress on rules regulating state-owned enterprises, with differences over tariffs remaining one of the obstacles to a final deal, the top U.S. negotiator said in an interview. “‘There has been important progress made this week,’ Barbara Weisel said yesterday in Hanoi, where representatives from the dozen Trans-Pacific Partnership countries wrapped up 10 days of talks today. ‘We have spent successive rounds trying to narrow the gaps. There was very good progress on SOEs here.’” The Bloomberg article pointed out that, “Some of the biggest remaining sticking points concern Japan’s efforts to safeguard protections for its farmers. Japan has demanded special exemptions for its agricultural sector, with tariffs on rice, wheat, sugar, dairy, beef and pork maintained. Japan’s trade representative was more pessimistic than Weisel. “Substantial gaps remain between the U.S. and Japan and more talks are needed, Hiroshi Oe, Japan’s ambassador to the TPP, told reporters today after meeting with U.S. Trade Representative Wendy Cutler in Tokyo.” Reuters news reported yesterday that, “The United States should commit to exporting oil and natural gas to Europe under a transatlantic trade deal in light of the European Union’s geopolitical situation, the EU trade commissioner said on Tuesday. “Tension between Russia and the West over the future of Ukraine is spurring the European Union to renew efforts to end decades of dependence on Russian gas. One solution would be greater access to abundant U.S. resources.” The article indicated that, “‘I cannot imagine that there will ever be a TTIP without such (energy) provisions,’ [EU trade chief Karel De Gucht] added, referring to the Transatlantic Trade and Investment Partnership. “De Gucht was in town for meetings with U.S. Trade Representative Michael Froman, ahead of negotiations later this month on the trade pact, which aims to integrate two markets accounting for half the world’s economy.” Policy Issues- Continuing Resolution, Senate Ag Committee Confirmation Hearing David Rogers reported yesterday at Politico that, “House Republicans rolled out a stopgap spending bill to keep the government funded through Dec. 11 but also reshaping the budget landscape in a manner that tilts toward the GOP if it should win control of the Senate in November. “Included are extensions of the Internet Tax Freedom Act, as well as authority for the Export-Import Bank to continue its operations past Oct. 1. And the White House would get all of its $88 million request for new funding to cope with the Ebola outbreak in West Africa. “But as filed late Tuesday, the bill provides only a temporary solution to the threat of new domestic spending cuts that could be triggered in January. At the same time the GOP allows for up to $85.1 billion in overseas contingency funds for the military— $26.5 billion more than President Barack Obama has requested for the new fiscal year that begins Oct. 1.” The article added that, “House floor debate is expected Thursday morning, and by including an extension for the Export-Import Bank, Republicans are hoping to win business support as well as important Democratic votes.” Paul Kane and Robert Costa reported in today’s Washington Post that, “The legislation should win approval in the House by Thursday, sending it to the Senate, where it is expected to pass next week. That would avert a repeat of last October’s 17-day shutdown of the federal government, which was caused by Republicans trying to undo the health-care law. “‘People want to keep the government running. We don’t want to watch a rerun of the same movie,’ said Rep. Tom Cole (R-Okla.), a senior member of the appropriations panel.” Meanwhile, the Senate Agriculture Committee will hold a hearing this morning “to consider the nomination of Lisa Afua Serwah Mensah, of Maryland, to be Under Secretary of Agriculture for Rural Development.
Posted on: Wed, 10 Sep 2014 16:05:33 +0000
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