Friday, December 20, 2013

Senator Chuck Grassley of Iowa, one of two working family farmers in the Senate, made the following comment about the current status of the farm and nutrition bill negotiations and his provisions to place a hard cap on farm payments and the actively engaged loophole.

"As members of Congress head home for the holidays, farm bill negotiators still have a to-do list.  It's my understanding that the last remaining issue to be resolved is my provision to place a hard cap on farm payments and close the loophole that tens of thousands of people are using claiming to be actively engaged in the business of farming.  These provisions are in both bills, and should not be subject to negotiation.  They should have DO NOT TOUCH stamped across that section of the bill.  Unfortunately, the minority in both the House and Senate who voted against these provisions are a majority on the conference committee, so it remains a fight to the end.  To close loopholes for food stamps, but leave open loopholes for the biggest farmers to exploit taxpayers is the wrong way to do business.  We ought to apply scrutiny and end abuse in all programs."

Letter sent to President Obama, Administrator McCarthy and Sec. Vilsack calling for reconsideration on the EPA's proposed RFS rule

(DES MOINES) - Gov. Terry Branstad has brought together a bipartisan group of six governors to sign on to a letter to President Barack Obama, Environmental Protection Agency (EPA) Administrator Gina McCarthy and United States Secretary of Agriculture Tom Vilsack expressing their support for a strong Renewable Fuel Standard (RFS) that fosters diversification of America's energy portfolio, gives consumers choices at the pump, supports economic development in rural communities and reduces harmful emissions across the nation. The EPA recently proposed a rule that would significantly weaken the current RFS, and Gov. Branstad and this group of governors expressed their opposition to the EPA proposal.

The following governors signed on in support of a strong RFS: Gov. Terry Branstad (R-Iowa), Gov. Sam Brownback (R-Kan.), Gov. Jack Dalrymple (R-N.D.), Gov. Mark Dayton (D-Minn.), Gov. Dennis Dugaard (R-S.D.), and Gov. Dave Heineman (R-Neb.).

In the letter, the governors write, "More than 400,000 Americans depend on renewable fuels for good-paying jobs that support rewarding careers in our states. According to the Renewable Fuels Association and LMC International, 44,500 of these jobs could be lost due to the EPA proposed rule. This proposed rule would greatly hinder our states' efforts to foster policies that create jobs, grow family incomes, and revitalize our economies.

"If the EPA's currently proposed rule becomes final, the negative impact would be disproportionately felt by rural America. According to an Iowa State University estimate, corn prices alone could drop nineteen cents per bushel based on the proposed rule, which could bring corn prices below the cost of production for many farmers. The proposed EPA rule could also cause a ripple effect on agri-business, our communities, and the entire economy."

The bipartisan letter is the latest effort by Branstad to fight for American jobs, rural communities and a strong agriculture industry by working to protect the RFS. Branstad, Lt. Gov. Reynolds, and other Iowa elected leaders recently requested a hearing in Iowa on this EPA proposal. On December 4, 2013, Gov. Branstad testified before the EPA in support of the RFS in Arlington, VA. The testimony followed a "Defend the RFS" rally in Nevada, Iowa, on November 22, 2013.

The full letter can be read below:

December 20, 2013

The Honorable Barack Obama

President of the United States of America

The White House
1600 Pennsylvania Avenue N.W.
Washington, D.C. 20500

Dear President Obama:

As governors who support the public policy and economic benefits that flow from biofuels, we write today to express our strong opposition to the Environmental Protection Agency's (EPA) proposed rule that would significantly reduce ethanol and biodiesel choices for consumers as enabled in the Renewable Fuel Standard (RFS). The EPA proposal would have a negative impact on family incomes, the diversification of our energy portfolio, economic development in rural communities, and emissions reduction across our nation.

The renewable fuels that are proudly used by consumers across the country, are produced with American-grown corn, soybeans, wood chips and other important biomass resources that are processed through biofuels facilities that employ thousands, all while injecting millions into agribusiness and local economies. More than 400,000 Americans depend on renewable fuels for good-paying jobs that support rewarding careers in our states. According to the Renewable Fuels Association and LMC International, 44,500 of these jobs could be lost due to the EPA proposed rule. This proposed rule would greatly hinder our states' efforts to foster policies that create jobs, grow family incomes, and revitalize our economies.

If the EPA's currently proposed rule becomes final, the negative impact would be disproportionately felt by rural America. According to an Iowa State University estimate, corn prices alone could drop nineteen cents per bushel based on the proposed rule, which could bring corn prices below the cost of production for many farmers. The proposed EPA rule could also cause a ripple effect on agri-business, our communities, and the entire economy.

We urge your Administration to use its regulatory authority in a manner that both supports a growing renewable fuels industry and meets the statutory requirements of the law. Specifically, we hope that you will encourage the EPA to increase the biodiesel volume to reflect current production levels, modify the cellulosic target to match production expectations, and reinstate the statutory conventional renewable fuel target since there is clearly no domestic supply shortage. The gradually increasing RFS levels have been an important part of diversifying our nation's transportation fuels and reducing fuel costs at the pump.

We appreciate your past support for renewable fuels and the commitments you have pledged. We hope you will protect the RFS, renew your commitment, and stand strong along with us, consumers, and agricultural producers in supporting American-made renewable fuels.

Sincerely,

Governor Terry E. Branstad, Iowa

Governor Sam Brownback, Kansas

Governor Mark Dayton, Minnesota

Governor Dave Heineman, Nebraska

Governor Jack Dalrymple, North Dakota

Governor Dennis Daugaard, South Dakota

cc:  Gina McCarthy, Administrator, Environmental Protection Agency

Tom Vilsack, Secretary, United States Department of Agriculture

December 13, 2013

Washington, D.C. - Senators Joe Donnelly (D-IN) and Chuck Grassley (R-IA) today led a group of 31 senators in writing a letter to United States Trade Representative, Ambassador Michael Froman, and U.S. Department of Agriculture Secretary Tom Vilsack about the importance of addressing barriers to market access for American pork producers in the Trans-Pacific Partnership.

The senators noted the importance of exports to the economic well-being of U.S. pork producers and the U.S. economy as a whole, writing, "U.S. pork production supports an estimated 550,000 domestic jobs, around 110,000 of which are the direct result of exports. Pork exports now make an annual surplus contribution of nearly $5 billion to the overall U.S. trade balance."

Currently, there are numerous market access barriers for U.S. pork in countries participating in the TPP, such as Japan's complex system of tariffs.  These barriers limit the contributions U.S. pork exports can make to the U.S. economy.  The senators insisted to Ambassador Froman and Secretary Vilsack that, as part of the TPP agreement, all tariffs and non-tariff barriers on pork in TPP partner nations be eliminated.

A signed copy of the letter is available by clicking here. Full text of the letter follows.

December 13, 2013

Ambassador Michael Froman

Office of the United States Trade Representative

600 17th Street NW

Washington, DC 20508

Secretary Tom Vilsack

United States Department of Agriculture

1400 Independence Avenue SW

Washington, DC 20250

Dear Ambassador Froman and Secretary Vilsack:

We write to emphasize the importance of addressing market access barriers to U.S. pork exports in the Trans-Pacific Partnership (TPP).

We know that you are both well aware how important exports are to the economic well-being of U.S. pork producers and the U.S. economy as a whole. U.S. pork production supports an estimated 550,000 domestic jobs, around 110,000 of which are the direct result of exports. Pork exports now make an annual surplus contribution of nearly $5 billion to the overall U.S. trade balance.

Around the world, however, numerous market access barriers exist that prevent pork exports from contributing even more to the domestic economy. The Trans-Pacific Partnership (TPP) negotiation presents an important opportunity to open new markets to U.S. pork in the Asia-Pacific region, to expand several existing markets, and to establish a standard for all future trade agreements involving pork. The participants in the TPP negotiations represent significant markets for increased U.S. pork exports with the successful removal of tariff and non-tariff barriers.

Currently, U.S. pork producers encounter highly restrictive trade barriers that slow the growth of U.S. exports into a number of TPP participant countries. Japan, for example, maintains a complex system of tariffs that reduces the price and quality advantages of U.S. pork. Vietnam, in addition to burdensome administrative requirements, continues a reference price scheme on imported pork that raises the cost to import certain pork cuts above the market price. Furthermore, despite an existing bilateral trade agreement, Australia still uses non-tariff barriers to limit U.S. exports to either processed pork or frozen, boneless pork for further processing.

It is estimated that if tariffs and all non-tariff barriers are eliminated in each TPP nation, U.S. pork exports will grow by over 50 percent within 10 years of implementation. We strongly urge you to insist that all tariffs and non-tariff barriers on pork in TPP partner nations be eliminated as part of the TPP agreement.

Sincerely,

U.S. Senator Joe Donnelly

U.S. Senator Chuck Grassley

U.S. Senator Amy Klobuchar

U.S. Senator Deb Fischer

U.S. Senator Tom Harkin
U.S. Senator Roy Blunt

U.S. Senator Carl Levin
U.S. Senator Pat Roberts

U.S. Senator Tim Johnson
U.S. Senator Mike Johanns

U.S. Senator Robert Casey
U.S. Senator Richard Burr

U.S. Senator Tammy Baldwin
U.S. Senator Rob Portman

U.S. Senator Debbie Stabenow
U.S. Senator Mark Kirk

U.S. Senator Mark Udall
U.S. Senator John Thune

U.S. Senator Claire McCaskill
U.S. Senator John Barrasso

U.S. Senator Sherrod Brown
U.S. Senator James Inhofe

U.S. Senator Richard Durbin
U.S. Senator John Cornyn

U.S. Senator Michael Bennet
U.S. Senator Tom Coburn

U.S. Senator Mark Pryor
U.S. Senator Patrick Toomey
U.S. Senator Jerry Moran
U.S. Senator Ron Johnson
U.S. Senator Mike Lee