News Update
October 28, 2011
Expanding Trade One Handshake at a Time
“Business is often built on relationships rather than contracts,” said Kansas Governor Sam Brownback in an editorial distributed by the National Cattlemen’s Beef Association (NCBA). “Many deals have been made on a handshake. Realistically, in today’s world, you still need the contract to complete the deal. However, building a strong relationship and a great deal of trust must come before that contract is even a possibility.”
Brownback recently returned from a trip to Russia and Kazakhstan with Kansas Secretary of Agriculture Dale Rodman and ranchers from Kansas, Colorado and Montana. While abroad, the delegation toured ranches and spoke with producers and government leaders about opening their countries to more ag trade from Kansas and the rest of the United States.
“My goal for this trip was to begin developing these relationships,” said Brownback in an opinion piece distributed by the National Cattlemen’s Beef Association (NCBA). By laying the foundations for trade, we allow American farmers, ranchers and agribusiness to do what they do best –– produce the superior livestock, beef and other agriculture products that other countries demand.”
Brownback said the trip focused on livestock genetics, sharing that live animal exports from the United States to Russia for the first 10 months of fiscal year 2011 were valued at a record $21 million. That’s up from $150,000 in 2007.
“Russia and Kazakhstan are looking around the world for genetics, but they want the best,” Brownback said. “There’s no doubt in my mind the best livestock genetics in the world reside in the United States. This is a great opportunity for American ranches to take advantage of the multigeneration investment they have made in developing superior genetics in their cattle.”
Brownback said the delegation encouraged the countries to consider commercial cattle, embryos and semen in addition to purebred genetics. Cattlemen there will need assistance, he said, in animal health, ranch management expertise, farm equipment and feed ingredients to succeed in the beef business.
“Russia’s meat and poultry demand is expected to increase by approximately 14% in the next few years,” Brownback said. “We need to take advantage of this growing demand, both as American ranchers looking to do business and agriculturists looking to feed a growing world population.”
Conservation Options for Future Farm Policy
Conservations options for future farm policy will be the subject of the Farm Foundation® Forum scheduled for Wednesday, Nov. 9.
The Forum will open with presentations by Iowa farmer Jim Andrew; David DeGennaro, Environmental Working Group; Bruce Knight, Strategic Conservation Solutions; Georgia farmer Ronnie Lee; and Wyoming rancher Patrick O’Toole. After their brief presentations, the floor will be opened for discussion.
There is no charge to participate in the Nov. 9 Forum, but registration is requested by noon Monday, Nov. 7. Click here to send your e-mail registration.
The Forum will be 9 a.m. to 11 a.m. at the National Press Club, 529 14th St. N.W., Washington, D.C. Coffee will be available at 8:30 a.m.
Who should participate: People with an interest in agricultural, food and rural policy, including members of Congress, congressional staff, executive branch officials, industry representatives, NGO representatives, academics and members of the media.
The Forum: Farm Foundation NFP organizes these public forums to engage all stakeholders in informed dialogue on food, agricultural and rural policies. Participants examine current policies, explore and analyze alternative policy proposals, and give voice to new proposals.
Costs of Senate Inaction on Reducing Regulatory Burdens Act
The Washington Examiner published the following opinion/editorial by Agriculture Committee Chairman Frank Lucas Oct. 26, calling on the Senate to take action on H.R. 872, the Reducing Regulatory Burdens Act. The legislation would ensure that businesses are not subject to redundant pesticide permitting requirements.
“It’s no secret that Americans are frustrated with the government right now. They are facing unemployment levels of 9% — meaning that nearly one in 10 people are out of a job. They are looking to their representatives in Washington to take action to jump-start the economy and boost employment.
“Although Republicans and Democrats disagree over how best to do that, there is one measure that has enjoyed broad bipartisan support. It is a commonsense initiative that would ensure that business owners are not subject to two separate federal regulations where one would suffice. It frees up capital to be spent on job-creating investments, instead of fighting red tape.
I’m referring to the Reducing Regulatory Burdens Act (H.R. 872). This legislation became necessary because of a misguided court order released in 2009. A federal appeals court determined that the U.S. Environmental Protection Agency (EPA) must issue permits for pesticide use near waterways.
This decision was made despite the fact that pesticide use is already heavily regulated under a federal statute that governs the sale, use, registration and labeling of pesticides throughout the United States.
Because pesticides are already subject to comprehensive regulations, the court order requiring EPA permitting does not create any new environmental or safety benefits.
What it does create are substantial new costs for farmers, ranchers and other business owners. That slows down economic activity and hurts job growth, at a time when we can ill afford to do so.
“A wide range of organizations will be affected by these requirements: agricultural producers, foresters, mosquito control districts, public health agencies, the federal government, state agencies and regular citizens.
Instead of investing in new jobs, these companies will be forced to invest time and money to comply with a duplicative regulation.
The House of Representatives responded to this problem with the Reducing Regulatory Burdens Act. This bill would eliminate the second, redundant permitting process.
How important is this legislation? In a time of staunch partisanship, it passed the House of Representatives with strong support from both Republicans and Democrats.
The same language was also included in H.R. 2584, the Interior Appropriations bill. The Senate Agriculture Committee took up the fight next, passing the legislation out of committee in June.
“Despite the strong bipartisan support for this commonsense initiative, Senate Majority Leader Harry Reid has refused to bring the measure to the full Senate for a vote.
That’s unacceptable. With the Senate in recess, there remains no time to pass a legislative fix before the Oct. 31 deadline takes effect. Because of delays and inaction from extremist Democrats in the Senate, business owners, farmers and ranchers across the country will soon be tied up in yet another layer of red tape, hindering their ability to do business.
I have repeatedly called on Sen. Reid to bring this legislation to the floor so that we can prevent another unnecessary burden on America’s businesses.
Furthermore, Dan Pfeiffer, White House communications director, echoed these sentiments just this week when he said “The only way we can truly attack our economic challenges is with bold, bipartisan action in Congress.”
I agree, and so do my House colleagues from both sides of the aisle. The cost of the Senate’s inaction on H.R. 872 is significant and time is running out.”
New Agricultural Center Proposed
The Kansas City Star reported Oct. 25 that American Royal leaders unveiled at a press conference a $70 million proposal to raze Kemper Arena and build an equestrian and agricultural center that would provide stability for the 112-year-old American Royal. The estimated $70 million includes $50 million for new construction, $10 million for demolition and upgrades to the existing American Royal complex, and $10 million to pay off debt for improvements made to Kemper in the mid-1990s.
Members of the Kemper family present at the press conference, one of whom, Mariner Kemper, is a member of the American Royal board, committed to raising private funding of $10 million as a foundation for the new center, while admitting that public funding would also be required. R. Crosby Kemper Jr., father of Mariner, provided the land and funding for the present complex in 1972 to honor his father, who had just died. Kemper Arena opened in November 1974.
In addition to demolishing the present arena, the proposal includes a 5,000-seat coliseum with a 125-foot-by-250-foot events floor; a pavilion with optional open sides that could accommodate livestock and horse shows, with space available for a showring, other festival-type events and animal stalls. The proposal also includes an outdoor plaza with both hard surfaces and landscaping that could host the barbecue contest and other events. The American Royal contributes an estimated $70 million to the city’s economy every year.
The 19,000-seat Kemper Arena has been operating under a deficit of more than $1 million per year since the Sprint Center opened in 2007, and the city, who has 34 years to go on a 50-year lease with the Royal, is responsible for about $20 million in deferred maintenance it is obligated to satisfy under the lease agreement.
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