News Update
Feb. 3, 2009

USDA Announces Planting Transferability Pilot Project in 7 States

Agriculture Secretary Tom Vilsack today announced that a new pilot project will permit producers in Illinois, Indiana, Iowa, Michigan, Minnesota, Ohio and Wisconsin to plant such vegetables as cucumbers, green peas, lima beans, pumpkins, snap beans, sweet corn or tomatoes for processing on base acres under the Direct and Counter-Cyclical Program (DCP).

“This program offers producers in these seven states opportunities to diversify their crop production and better use their base acres. It’s an important step in implementing the 2008 Farm Bill, providing farmers with additional sources of revenue and supporting the production of healthy fruits and vegetables,” Vilsack said.

Authorized in the 2008 Farm Bill, the Planting Transferability Pilot Project (PTPP) allows producers to plant approved fruits or vegetables for processing on a farm’s base acres. Without the PTPP, planting these crops on base acres would be prohibited. Base acres on a farm will be temporarily reduced each year, on an acre-for-acre basis, for each base acre planted with an approved fruit or vegetable on that farm.

Eligible participants must agree to produce one of the approved crops for processing and to provide the county FSA office with a copy of the contract between the producer and processing plant. Participants must agree to produce the crop as part of a program of crop rotation on the farm to achieve agronomic, pest and disease management benefits, and to provide disposition evidence of the crop. Participants must complete form CCC-749 (available at www.fsa.usda.gov) and file it with their county FSA office.

The sign-up period for the PTPP begins today, Feb. 3, 2009, and will end March 2, 2009. USDA will not accept applications filed after that date.

For more information on PTPP or other farm programs, visit your local USDA Service Center or the Farm Service Agency web site at www.fsa.usda.gov.

— Adapted from a USDA release.

NFU President Testifies on Market Speculation

National Farmers Union (NFU) President Tom Buis appeared before the House Agriculture Committee today in support of increased oversight and transparency of the commodities markets. Buis, citing last year’s record-high commodity prices, followed by a historic collapse in the grain, livestock and dairy prices, said unabated speculative commodity futures trading is increasing market volatility.

“Speculators created a market bubble and false sense that higher prices were here to stay and, as a result, producers locked in higher-priced input and feed costs. The economic collapse and bursting bubble have jeopardized the economic livelihoods of many Americans and is rippling throughout our rural communities,” Buis said.

Buis commended the committee’s commitment to addressing market speculation and increasing transparency and called for passage of the Derivatives Markets Transparency and Accountability Act (DMTAA) of 2009.

“This legislation will increase transparency in the commodity markets, allowing for an open process that will keep the public apprised of those involved in commodity markets,” Buis said. “The Commodity Futures Trading Commission will finally have the necessary tools to ensure markets remain open, fair and transparent.”

Buis commended the legislation’s requirements for transparency when considering prospective over-the-counter (OTC) transactions and requirements for the CFTC to study and report on the effects of potential position limits within OTC trading.

“This information will enhance the public’s confidence that markets are not being manipulated, fraudulently exploited or overwhelmed by speculation. And if so, corrective action can be launched,” Buis said.

— Release provided by NFU.

A New Political Climate: What Does It Mean?

The new presidential administration, a changed political climate and the implications for the cattle industry were discussion topics for a National Cattlemen’s Beef Association (NCBA) Issues Forum during the 2009 Cattle Industry Convention last week in Phoenix, Ariz.

Sharing some of their views and expectations with NCBA members were speakers Charlie Stenholm, former congressman from Texas, and Sara Wyant, veteran agricultural policy reporter and president of Agri-Pulse Communications Inc.

Stenholm said he fears the congressional agenda will continue to be complicated with rampant partisan politics. The environment in Washington, D.C., he said, “is the worst that I’ve seen it.” On the positive side, he believes President Obama has made some good choices of people to fill his cabinet.

“Tom Vilsack is a pretty good choice,” Stenholm said. “I think he should make a good hand. He seems very teachable.” Stenholm said implementing an economic stimulus plan presents a huge challenge, for there is a limit to how much money the world will lend to the U.S. Fundamentally, he added, the country has to make changes in the way it does business. The former congressman warned that U.S. Department of Agriculture (USDA) must “get its act together” and become the poster child for agency efficiency or face losing regulatory authority over food safety to the Food and Drug Administration (FDA). On the issue of country-of-origin labeling (COOL), Stenholm said he can’t see how creating trade barriers will benefit the beef industry. However, he called repeal of COOL impractical.

“Let’s see if we can somehow make it work as passed — at least for awhile,” he advised. Neither is Stenholm optimistic about repeal of the death tax. He does sense, among members of Congress, some willingness to increase exemption levels. He believes a $6 million to $10 million exemption would allow most family farms and ranches to pass to the next generation.

In her comments, Sara Wyant said, “President Obama is off to a very good start in carrying out his pledge to be transparent. Many of his cabinet picks are very centrist, which could be favorable for agriculture and rural America.” However, Wyant expressed uncertainty and even concern regarding some of the new president’s choices for advisors and regulatory “czars.” Noting how some appointees have extreme environmentalist and animal rightist leanings, she worries about how much weight their extremist views will carry in the new administration. Wyant said she also worries about some of Obama’s own statements, which suggest he may be listening to those who unjustly accuse agriculture of contributing to dangerous greenhouse gas emissions, high food prices and diet/health issues that increase health care costs. Obama may be off to a good start, but Wyant wonders where he will land on a number of “wild card issues.”

– by Troy Smith

For additional coverage of the 2009 Cattle Industry Annual Convention and NCBA Trade Show, including additional insight into the current state of the beef industry, visit www.4cattlemen.com. The site is provided by Angus Productions Inc. (API) and Biozyme.

— compiled by Shauna Rose Hermel, editor, Angus Productions Inc.