Corn Commentary

Unemployed? Feeling Broke? Urge Congress to Pass Pending Free Trade Agreements

The majority of average Americans are still painfully cognizant of the recession’s impact upon their lives.  With high levels of unemployment and little disposable income, regular Americans wonder what the government has done to bail them out.  Right now, Congress has a chance to improve the lives of 22,500 people while improving the economy as a whole simply by passing stalled trade agreements with Korea, Colombia and Panama.

The U.S. Department of Agriculture estimates that passage of all three FTAs would result in 22,500 new jobs in that sector alone.  While this would not return unemployment levels to their pre-crisis lows, it would drastically, immediately change the lives of both the 22,500 hired as well as the approximately 67,500 people who depend upon them.  By opening these markets, Congress would directly improve the financial, physical and emotional well-being of 90,000 Americans.

Albeit in a less dramatic manner, the passage of these trade agreements benefits the entire nation.  The American Farm Bureau estimates passage of these agreements would generate an additional 2.5 billion dollars in the U.S. economy through agricultural trade alone. If Congress is willing to fight tooth and nail over cutting a few billion dollars from current spending, actually growing the national economy should be a high priority.

 

Biofuels Part of Obama Secure Energy Future

Biofuels, including ethanol, are part of the Blueprint for A Secure Energy Future outlined Wednesday by President Obama.

“In an economy that relies on oil, rising prices at the pump affect everybody – workers and farmers; truck drivers and restaurant owners,” said the president during a speech at Georgetown University. “The only way for America’s energy supply to be truly secure is by permanently reducing our dependence on oil.”

Obama voiced support for biofuels as an alternative to oil, “not just ethanol, but biofuels made from things like switchgrass, wood chips, and biomass.”

“That’s why we’re investing in things like fueling stations and research into the next generation of biofuels,” he said. “Over the next two years, we’ll help entrepreneurs break ground on four next-generation biorefineries – each with a capacity of more than 20 million gallons per year. And going forward, we should look for ways to reform biofuels incentives to make sure they meet today’s challenges and save taxpayers money.” Obama also urged the expansion of alternative vehicles in the federal fleet and announced that he is directing agencies to purchase 100% alternative fuel, hybrid, or electric vehicles by 2015.

At one point, the president seemed to channel Jon Stewart in a bit he did last June about America’s goals for energy independence. “We’ve known about the dangers of our oil dependence for decades,” Obama said. “Richard Nixon talked about freeing ourselves from dependence on foreign oil. And every President since that time has talked about freeing ourselves from dependence on foreign oil. Politicians of every stripe have promised energy independence, but that promise has so far gone unmet.”

“The Daily Show with Jon Stewart”
piece shows all of the past eight presidents, from Nixon to Obama, talking about moving “beyond a petroleum-based economy,” first playing clips of both Obama and George W. Bush saying almost the exact same words. He follows up with Clinton, Bush 42, Reagan, Carter, Ford and Nixon making similar statements and talking about ideas like solar, natural gas, fuel cells and even “gasohol.”

It’s very funny and worth seeing again even if you have already. Watch it here:

The Daily Show With Jon Stewart Mon – Thurs 11p / 10c
An Energy-Independent Future
www.thedailyshow.com
Daily Show Full Episodes Political Humor & Satire Blog</a> The Daily Show on Facebook

EPA Officials to Visit Iowa Farm

You may recall that the Environmental Protection Agency official in charge of regulating emissions admitted during a Congressional hearing a few months ago that she had never been to a farm in the United States.

epa ogeWell, that is going to be rectified this week when Margo Oge, director of EPA’s Office of Transportation and Air Quality, pays a visit to America’s heartland. Oge and Gina McCarthy with the Office of Air and Radiation are scheduled to tour a family farm and a biofuel facility in Iowa on Thursday, according to Senator Chuck Grassley (R-IA).

“We’ll begin the day with an information session, discussing low carbon fuel standards, corn and soybean technology, followed by information from the local EPA staff about Agstar program. We’ll then move to a family farm to learn about the work that farmers are doing to produce safe quality products in an environmentally friendly manner,” said the senator during a conference call with farm reporters last week. “Last, we’ll visit the Renewable Energy Group’s facility in Newton to get a tour and an overview, and update from the ethanol and biodiesel industries. I think the day will be beneficial for EPA officials writing regulations that, obviously, have a tremendable and scary impact on agriculture and family farmers.”

Okay, so maybe tremendable isn’t really a word, but that’s what the senator said – and I think we all know what he means. Grassley says he had invited EPA administrator Lisa Jackson to visit, but she is not able to make the trip this week.

Bringing Hope to Africa

Earlier this month, Agriculture Secretary Tom Vilsack and Secretary of State Hillary Clinton paid a visit to Nairobi, Kenya where they met with agricultural officials and visited the Kenya Agricultural Research Institute (KARI).

“We must help Africa produce enough food to feed its people and create economic opportunities for this continent,” Vilsack said during the appearance. “We can provide seed technologies, explain the appropriate use of fertilization, share techniques to manage land effectively, create a strong post-harvest infrastructure – so many things that could help farmers increase their income.”

USDA has partnered with KARI to prevent and control animal and pest diseases and improve food security, and develop and apply products and emerging technologies, “to cultivate hardier crops that can feed more people and thrive in harsher conditions, disease-resistant cassava plants, sweet potatoes enriched with Vitamin A to prevent blindness, maize that can flourish in times of drought.”

In her remarks, Secretary Clinton stressed the importance of agriculture to the world. “We are convinced that investing in agriculture is one of the most high-impact cost-effective strategies available for reducing poverty and saving and improving lives,” she said. “Oftentimes people think, well, if you’re modern, you don’t do agriculture anymore. Well, nothing could be further from the truth. If you don’t do agriculture, you don’t eat.”

Amen to that. Modern agricultural production is key to reducing global poverty. Our system of food production in the United States can and should be replicated. Instead of going backward, as some are advocating in this country, we can and should continue to move forward to wipe out hunger once and for all.

Obama Cabinet Kicks Off Rural Road Tour

Obama farmPresident Obama announced his National Rural Tour yesterday during an interview with National Association of Farm Broadcasting past president Michelle Rook with WNAX Radio in Yankton, SD. “Over the next few weeks and months, top officials from my administration will fan out across the country to hold a series of discussions on how we can strengthen rural America,” Obama said.

Vice President Joe Biden, Agriculture Secretary Tom Vilsack, Commerce Secretary Gary Locke, and Federal Communications Commission Chair Julius Genakowski kicked off the “rural road trip” today in Pennsylvania, announcing $4 billion in loans and grants to bring broadband internet service to rural communities. Other stops are planned in Alaska, Louisiana, Nebraska, New Mexico, North Carolina, Ohio, Virginia and Wisconsin.

During her interview, Michelle asked the president about renewable fuels. “Obviously, I come from a farm state – Illinois – and ethanol has been a big boon for a lot of rural communities,” he said. “But we also are recognizing the key for us is to move into the next generation of biofuels, how can we use wood chips and refuse and switchgrass and how can we improve the efficiency of first generation biofuels. Farmers are going to be critical to that entire process.”

Michelle also asked President Obama about a number of other issues, including the climate change bill, whether farmers should be concerned about increasing regulations, and how the government might be able to help the livestock industry.

Listen to Michelle’s entire interview with the president here:

Peterson Agrees to Climate Bill Deal

The American Clean Energy and Security Act – better known as the climate change bill – is heading for a vote on the floor this week after all, now that leadership has struck a deal with farm state opponents led by Rep. Collin Peterson (D-MN).

collin peterson“We have something that I think works for agriculture. We still have a couple little areas that may get resolved down the line. But we’ve come to an agreement,” Peterson said yesterday.

Part of the agreement includes allowing USDA to have oversight for agricultural carbon offset programs instead of EPA. “The climate change bill will include a strong agriculture offset program run by the U.S. Department of Agriculture that will allow farmers, ranchers, and forestland owners to participate fully in a market-based carbon offset program,” said Peterson. “This agreement also addresses concerns about international indirect land use provisions that unfairly restricted U.S. biofuels producers and exempts agriculture and forestry from the definition of a capped sector.”

Peterson now says he will vote for the sweeping legislation, and other Democrats on the House Ag Committee who were opposed are likely to do so as well, meaning the bill is now more likely to pass. President Obama even thanked Peterson for his work on the bill during his press conference yesterday. “We all know why this is so important,” the president said of the legislation. “The nation that leads in the creation of a clean energy economy will be the nation that leads the 21st century’s global economy. That’s what this legislation seeks to achieve — it’s a bill that will open the door to a better future for this nation. And that’s why I urge members of Congress to come together and pass it.”

Farm groups also seem happier with the agreement. Read more from the NY Times.

Keep Those Comments Coming

The Environmental Protection Agency is allowing another 60 days for comments on the proposal to allow an increase in the amount of ethanol that can be blended into regular gasoline.

epaThe original public comment period was to end on May 21 and will now end on July 20, giving farmers behind on planting more time to get comments submitted.

National Corn Growers Association (NCGA) President Bob Dickey said they were glad to hear the news. “Because of the importance of this issue to America’s farmers and the pressing need to get our crops in the ground, we asked EPA to extend the time for comments from 30 to 90 days. Our growers need this extra time to be full participants in this important public policy process,” he said.

Growth Energy CEO Tom Buis said, “We are aware of over 10,000 Americans who have already voiced their support for a higher blend of ethanol in our fuel supply and this extension makes it possible for thousands more to participate. We think it’s especially important that the American farmer, who is in the fields from sunrise to sunset this time of year, is given more time to get involved.”

The current limit on the amount of ethanol that can be blended into a gallon of gasoline is at ten volume percent ethanol (E10) for conventional (non flex-fuel) vehicles. Growth Energy and 54 ethanol manufacturers submitted the E15 waiver application on March 6, and EPA must make a decision by December 1, 2009.

Concerns Continue Over Ag Budget Cuts

The administration’s budget for USDA in 2010 is kind of like a good news, bad news scenario for agriculture. The good news is that President Obama has proposed an increase in overall spending for USDA. The bad news is that it cuts spending for farm programs, placing a hard cap of commodity program payments of $250,000, phasing out direct payments to farmers with gross sales over $500,000 and making cuts in the federal crop insurance program.

tom vilsackDuring a House Appropriations subcommittee hearing this week, Agriculture Secretary Tom Vilsack acknowledged that the proposal is meeting resistance from agricultural groups. “We’re willing to work with Congress on this,” Vilsack said. “There has been a lot of conversation about whether or not it ought to be adjusted gross income as opposed to gross sales. We’re certainly happy to look at that. We’re also certainly happy to look at the hard cap of $250,000.” Vilsack says they want to maintain a good safety net for farmers but at the same time wants that to be fiscally responsible.

National Corn Growers Association First Vice President Darrin Ihnen says the areas targeted by the president’s budget are alarming. “In agriculture today it is relatively common to see gross annual sales of over $500,000, but that does not mean net income,” said Ihnen. “Our growers need a strong safety net and our industry will be weakened if the government begins to cut crop insurance funding and basing payment eligibility on rules that ignore production costs and long term business investment.”

NCGA earlier this year joined a coalition of national farm and agricultural groups to oppose President Obama’s proposal.

Indirect Land Use Frustrates House Ag Chair

House Agriculture Committee Chairman Collin Peterson (D-MN) expressed frustration over indirect land use change penalties against biofuels in the EPA’s proposed rulemaking for the Renewable Fuels Standard during a hearing Wednesday on Capitol Hill.

“You are going to kill off the biofuels industry before it ever gets started. You’re in bed with the oil companies,” Peterson said to Margo Oge, head of EPA’s Office of Transportation and Air Quality. “Why would you put indirect costs on corn and soybeans and not put it on oil? What about all the indirect of protecting the oil shipping lanes in the Middle East? This is ridiculous what’s going on here.”

“We’re off on some peer review, why aren’t we peer reviewing all these other things? Because people don’t like corn ethanol,” said Peterson.

“I want this message to be sent back down the street,” Peterson continued. “I’m off the train. I will not support any kind of climate change bill. I don’t care. Even if you fix this. Because I don’t trust anybody anymore. I’ve had it.”

Listen to Peterson’s statement here:

Peterson’s vocal opposition to the Obama administration’s priority for climate change legislation prompted a response from Heather Zichal, White House deputy advisor on energy and climate change. “There should be no question – the Obama Administration is committed to renewable fuels,” she said in a statement.

Administration Commends Agriculture

Yesterday’s press conference with three members of the Obama cabinet about the administration’s commitment to biofuels offered some refreshingly encouraging words for our nation’s agricultural industry.

ChuProbably the best words of praise came from Energy Secretary Steven Chu, who noted that agriculture is one of the nation’s greatest resources for energy. “We have incredible capacity not only to grow the food we need and to have dynamic exports, we can also grow a considerable amount of energy,” said Chu. (Take that, fuel versus foodies!)

Lisa JacksonEnvironmental Protection Agency administrator Lisa Jackson also noted the important role agriculture has in supplying the nation’s energy needs. “In the 2007 Energy Independence and Security Act (EISA), Congress recognized the need for a homegrown fuel source,” said Jackson. “Every year, we send billions of dollars overseas, often to unfriendly places. With renewable fuels, we can send those billions to rural and farming communities, people who need help most in these challenging economic times.”

VilsackAgriculture Secretary Tom Vilsack is supposed to say nice things about agriculture, but we’ll give him some credit for saying them anyway. It was especially encouraging that he got top billing in yesterday’s press conference, which was really about the release of EPA’s proposed rulemaking for the Renewable Fuels Standard. It indicates that the Obama administration really does recognize the critical role agriculture plays in the biofuels industry, as Vilsack stated in his comments. “This reflects President Obama’s commitment to rural America. It merges and marries together rural economic development with agriculture to create clean jobs and clean opportunity. It is a firm commitment in making this industry an integral part of this new 21st century American economy,” said Vilsack. “It provides additional income opportunities for American farmers and ranchers, jobs for those who live in rural communities and energy security for every single American.”

Listen to the press conference here:



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