News Update
June 27, 2011

Help Us Start Our Facebook Presence

The Angus Journal is launching its Facebook presence. Help us get started by visiting Facebook and liking our page. Recently posted are photos from Intern Katie Gazda’s tour with the Angus Beef Leaders Institute (BLI) that took place last week.

View The Angus Report

The June 24 edition of The Angus Report, available at http://bit.ly/kLGsX1, includes comments from BLI participants, Brazilian Angus breeders and an Oklahoma rancher targeting the Certified Angus Beef® (CAB®) brand. The American Angus Association’s online news program covers a variety of topics in a traditional television news format. Watch www.angus.org for reports posted each Friday.

MU FAPRI Reports Economic Impact of Extending Ethanol Tax Credit, Tariff

Extending the current ethanol tax credit and tariff would boost corn-based fuel production — and corn prices, report University of Missouri (MU) economists.

The current 45¢ tax credit for biofuel blenders and associated 54¢ tariff on ethanol imports were studied by the MU Food and Agricultural Food and Policy Research Institute (FAPRI). Economists ran “what-if” scenarios on FAPRI computer models of the U.S. farm economy.

Both tax laws are due to expire Dec. 31, 2011.

With incentives in place, they saw fuel production from corn go up 1.2 billion gallons (gal.) per year and corn prices rise 18¢ per bushel. 

Increased demand for corn as an ethanol fuel source would expand corn acreage by 1.7 million acres, said Seth Meyer, MU FAPRI economist and author of the study, released June 27.

The report is available on the FAPRI website http://fapri-mu.org/.

“The study considers only changes in the ethanol tax credit and tariff, but not changes in current mandates to use a set amount of biofuels,” Meyer said. 

FAPRI prepares an annual 10-year baseline of agricultural production to analyze effects of policy changes on farm income.

“The baseline prepared earlier this year assumed biofuel tax credits and tariffs expire at the end of 2011, as provided in current law,” said Pat Westhoff, director of MU FAPRI. “This analysis looks at an alternative scenario that keeps ethanol tax credits and tariffs at current levels.

“There is debate about federal support of the ethanol industry,” Westhoff noted. “At a Paris meeting last week, G-20-nation trading partners raised concerns about U.S. support of biofuels.

“The revised baseline gives FAPRI a tool to study proposed policy changes.”

Under current energy legislation, blenders who add ethanol to gasoline receive a 45¢-per-gal. tax credit. A 54¢-per-gal. tariff slows import of foreign ethanol. 
Our ethanol policy is complex, Westhoff explained.

“When you give fuel blenders a tax credit, they keep part of the benefit and charge service stations less for blended fuels. In turn, service stations should charge consumers less for blended fuel at the pump.

“At the same time, blenders can pay more to ethanol plants that in turn pay farmers more for corn.

“Our work suggests that how benefits of the blender’s tax credit are shared among fuel consumers, ethanol plants and corn farmers is very sensitive to market conditions,” Westhoff said.

MU FAPRI maintains computer models of all agricultural commodities. Those are used to calculate the economic impact of changes in laws and farm policies.

FAPRI is part of the MU College of Agriculture, Food and Natural Resources.

— Release by MU Cooperative Media Group.

U.S. Fish and Wildlife Service Designates Critical Habitat for the Endangered Tumbling Creek Cavesnail

The U.S. Fish and Wildlife Service (the Service) has designated 25 acres in southwestern Missouri as critical habitat for the endangered Tumbling Creek cavesnail. The designation includes Tumbling Creek and associated springs located near Protem, Mo.

The Tumbling Creek cavesnail is a small aquatic snail known only from Tumbling Creek and a few of its small tributaries and underground springs within and near Tumbling Creek Cave in Taney County, Mo.

Under the ESA, critical habitat identifies geographic areas that contain features essential for the conservation of a threatened or endangered species and may require special management considerations or protections.

The designation of critical habitat does not affect land ownership or establish a refuge and has no impact on private landowners taking actions on their land that do not require federal funding or permits.

Federal agencies that undertake, fund or permit activities that may affect critical habitat are required to consult with the Service to ensure such actions do not adversely modify or destroy designated critical habitat.

The Tumbling Creek cavesnail was listed as endangered under the Endangered Species Act in 2002 because of a sharp drop in its population and declining water quality in Tumbling Creek. Threats to water quality in Tumbling Creek are increased siltation from overgrazing, tree removal, and other activities; and non-point source pollution within the recharge area of Tumbling Creek Cave. The area designated as critical habitat is owned by a private landowner.

For more information on the Tumbling Creek cavesnail, visit the Service’s Midwest Region website at www.fws.gov/midwest/endangered.

— Release by the U.S. Fish & Wildlife Service.

New Report Finds $90 Billion Annual Agricultural Investment Gap

The Global Harvest Initiative (GHI) today released its final policy issue brief, which estimates a $90 billion annual agricultural investment gap and outlines the significant role of the private sector in closing this gap and addressing global food security.

The policy issue brief, “Enhancing Private Sector Involvement in Agriculture and Rural Infrastructure Development,” points to the private sector as one of the key influencers in creating economic growth, raising global incomes, and feeding a population anticipated to reach nine billion people by 2050.

“With a $90 billion annual investment gap in the agricultural sector of developing countries, the task of doubling agricultural productivity in 40 years is a formidable one,” said Dr. William G. Lesher, executive director of the Global Harvest Initiative. “There are simply not enough resources in either developed or developing nations to bridge this sizable gap, so enhanced private sector involvement is the key to improving agricultural and rural development to ensure that the world’s future agricultural needs are met.”

The policy issue brief outlines several recommendations to enhance private sector involvement, including the importance of establishing government/industry partnerships, working to improve the business climate and rural infrastructure in developing countries, and encouraging these countries to devote more resources for overall development to attract private capital.

GHI Consultative Partners and advisors, who share GHI’s concern about a growing agricultural productivity gap and the need to protect natural resources while feeding an increased population, have weighed in on the role of the private sector:

“If the world does not address sustainable food production methods, we will face land degradation and extinction of vital species, and loss of natural habitats for farming and wildlife. By leveraging the expertise of corporations, NGOs, and others we can make great strides through market-oriented solutions in conservation and sustainability worldwide.”

— David H. Barron, Founder, International Conservation Caucus Foundation
 
“Whatever is sustainable today will not be sustainable in 2050 when the global population reaches nine billion. In order to achieve long-term sustainability, we must figure out how to produce more with less, and the private sector must play a crucial role if we are to be successful.”

— Jason Clay, Senior Vice President, Market Transformation, World Wildlife Fund

“Reducing hunger on a global scale will require significant involvement from the private sector, and facilitating the potential for the private sector’s support of rural and agricultural development throughout the world can help raise global incomes and alleviate hunger worldwide.”

— Margaret Zeigler, Deputy Director, Congressional Hunger Center

“The demand for agricultural commodities is rising around the globe, and we must engage the private sector as key drivers of land-use change to help make global agriculture more sustainable and protect the planet for future generations.”

— David Cleary, Strategic Director for Agriculture, The Nature Conservancy

“Many challenges lie ahead with the need to increase the annual rate of agricultural productivity growth by 25 percent. As we concluded in Farm Foundation's report on the 30 Year Challenge, we are confident the world’s agriculture producers will rise to the challenge of closing the productivity gap given the right tools and incentives for the 21st Century.”

— Neil Conklin, President, Farm Foundation, NFP and co-author, GHI GAP Report™

The information in the policy issue brief released today draws from a study commissioned by GHI and developed by Agriculture Economist William Motes, titled “Global Food and Agriculture Productivity: The Investment Challenge.”  

The recently-released series of issue briefs by GHI address five policies that will have the greatest impact on improving the rate of growth in agricultural productivity to address global food security and hunger: improving agricultural research, removing barriers to agricultural trade, strengthening and streamlining development assistance programs, embracing science-based technologies, and the policy issue brief released today on enhancing the role of the private sector in agricultural and rural development. The issue brief series can be found at: www.globalharvestinitiative.org/policy.htm.

— Release by Global Harvest Initiative.

— Compiled by Linda Robbins and Shauna Rose Hermel, Angus Productions Inc.