WASHINGTON - Senator Chuck Grassley made the following comment after the Senate passed the farm and nutrition bill.  The final vote was 66-27.  The bill keeps intact Grassley's provisions to focus farm payments on small- and medium-sized farmers and close loopholes that allow non-farmers to game the farm program system.

"The bill that cleared the Senate tonight is a step in the right direction.  Having responsible payment limits on the commodity program is crucial to the defensibility of the farm safety-net.  We need payment caps on our commodity programs, and we need to close loopholes that have allowed non-farmers to game the system.  I hope the House takes notice at the reforms in the Senate-passed bill and sees the positive changes we made to the farm payment system.

"And, while the inclusion of my payment limits plan is very reform-minded, the target price program that is included in the final bill will take us back a step.  Target prices distort planting decisions, and I hear opposition to it from Iowa farmers all the time.  We've tried it before and it doesn't work.

"While I continue to have concerns about the potential impacts of the shallow loss and target price programs created in this farm bill, I would also agree with the overwhelming sentiment from Iowa farmers that they need to have certainty.  A five-year farm bill that includes my payment limit reforms, maintains the crop insurance program, and streamlines conservation programs gives that certainty."

Background information:

Grassley has long sought reform of the farm payment system.  His provisions that were included in the bill are nearly identical to legislation he introduced earlier this year that would place a hard cap on the farm payments an individual farmer can receive in a year and close long-abused and well-documented loopholes in the farm payment program.   The legislation would establish a per farm cap of $50,000 on all commodity program benefits, except those associated with the marketing loan program (loan deficiency payments and marketing loan gains), which would be capped at $75,000.  Thus the combined limit would be $125,000, or, for married couples, $250,000.  The $50,000 cap would apply to whatever type of program is developed as part of the new Farm Bill. The bill also closes loopholes that currently allow non-farmers to qualify for federal farm payments and would allow one off-farm manager, but only one.

Follow up to May 7 letter to USDA, USTR

WASHINGTON - JUNE 6, 2013 - Senator Chuck Grassley is asking the nominee to be the next U.S. Trade Representative, Michael Froman, for his thoughts on making it a higher priority when negotiating with U.S. trading partners to resolve the regulatory barriers facing biotech seeds.

Grassley's written questions are a follow-up to a letter he wrote with Senate Agriculture Committee Chairwoman Debbie Stabenow and 24 other senators about the need for the administration to engage U.S. trading partners in high-level discussions on breaking down barriers to biotechnology.  Grassley was not able to attend the entire nomination hearing in person, so he is asking his questions in writing to be answered for the hearing record.

"American farmers have adopted biotechnology seeds to increase production as they help feed this world.  They need to be able to get their products to market, and they need to have the confidence they can adopt the technology available to them without fear our trading partners will erect barriers," Grassley said.

Here is the text of Grassley's questions on the subject.

o   How does USTR intend to work with trading partners to improve market access for U.S. crops derived from biotechnology?

o   In regards specifically to the European Union, can you commit to me that if the United States and European Union move forward with a formal trade agreement negotiation, USTR will work to remove the regulatory barriers to U.S. biotechnology derived seeds?

Here is a copy of the text of the May 7 letter.  A signed copy of the letter can be found by clicking here.

 

May 7, 2013

Secretary Thomas Vilsack

U.S. Department of Agriculture

1400 Independence Avenue, SW

Washington, DC 20250

 

Ambassador Demetrios Marantis

Acting United States Trade Representative

600 17th Street NW

Washington, DC 20508

 

Dear Secretary Vilsack and Ambassador Marantis:

American agriculture has made significant advancements in the last 100 years. We have seen vast improvements in how farmers grow crops, raise livestock, manage risk, and conduct their operations. American farmers are constantly looking for new tools to maximize efficiencies and productivity.  Biotechnology has been one of these tools.  Biotechnology helps farmers better manage droughts, pests, and weeds with fewer resources.  Biotechnology provides a major boost to American farmers that face an increasingly competitive international market.  Biotechnology has also helped feed a growing world population with abundant, nutrient rich crops.

The U.S. Department of Agriculture estimates that as much as 90 percent of commodity crop acres utilize seeds improved through modern biotechnology. Trade disruptions caused by barriers to biotechnology derived crops hurt both American farmers and the international customers they serve. Regulatory asynchrony, zero tolerance policies, and re-registration requirements are among the most prevalent and costly regulatory hurdles.

We know and appreciate how both of you and your offices have given priority to these international regulatory challenges, and work extensively with our trading partners to find long term solutions.  For instance, USDA has been engaged in efforts to launch a pilot project with China which aims to address, bilaterally, some asynchrony issues.  We also understand that the U.S. government is engaging trading partners in multilateral efforts to discuss how to best address other critical issues, including unintended low-level presence.

Given the widespread adoption of biotechnology by American farmers, it is imperative you further raise the priority of these regulatory issues in discussions with our trading partners, emphasizing the importance of facilitating robust international trade.  We appreciate your attention to this important matter, and we look forward to working with you to address these important and complex issues.

Sincerely,

Every year is different and 2013 is not an exception to that rule.  The drought has broken, flooding is back, and the CSR ratings are being revised and will be called the CSR2 starting in October.  Change in agriculture is occurring at a record pace and landlords and tenants need to do their best to keep up with the changes.

Iowa State University (ISU) Extension is offering a Farmland Leasing workshop on Tuesday, August 6, 2013, starting at 9:00 a.m. at the Johnson County Extension Office at 3109 Old Highway 218 South in Iowa City.  Another workshop will also be offered on Wednesday, August 14, 2013, starting at 1:00 p.m. at Buzzy's at 414 Main Street in Welton.

Jim Jensen and Ryan Drollette, ISU Extension Farm Management Specialists, will be the presenters. According to Jensen & Drollette, "The 2013 Extension Cash Rental Survey is out and will be discussed as well as the profit potential for tenants." Are cash rents keeping up with land values that have increased over 100% in the past six years?

Jensen & Drollette will be discussing land values, leasing practices, and lead an interactive discussion on methods to calculate cash rent.   Jensen stated, "The most frequent stumbling block for setting a cash rental rate is determining the land quality of the farm.  Rents on various quality soils and ways to determine land quality will be discussed. Land values and cash rental rates for various grades of land have not increased at the same percentage rate.  

The Farmland Leasing workshop cost is $25 per person and includes the 2013 Farm Leasing Arrangement booklet and copies of the presentation. To pre-register call the Johnson County Extension Office at 319-337-2145 or the Clinton County Extension office at 563-659-5125.

Registration cost can be paid at the door approximately 30 minutes before the workshop begins.

For those that pre-register 1 business day prior to or at the meeting, a $5 late registration fee will be added.

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Wednesday, May 29, 2013

Senator Chuck Grassley released the following statement regarding the announcement that Smithfield Foods would be purchased by Shuanghui International.  Grassley has led efforts in Congress to keep agricultural markets competitive for market participants and consumers.  The deal needs to be reviewed by the Department of Justice and the U.S. Committee on Foreign Investment (CFIUS).

"I share the concerns of many family farmers and independent producers that the agriculture industry has consolidated to the point where many smaller market participants do not have equal access to fair and competitive markets.  Today's announcement by Smithfield and Shuanghui do not alleviate those concerns.  In fact, the two companies pointed out in their statements that the vertical integration employed by Smithfield was a major attribute to the acquisition.  The fact of the matter is that vertical integration leaves the independent producer with even fewer choices of who to buy from and sell to and hurts a farmer's ability to get a fair price for his products.  Concentration also leads to consumers having fewer choices and higher costs at the grocery store.  The Justice Department should take a close look at this agreement.

"There are also a number of points that CFIUS must consider as it analyzes this deal.  No one can deny the unsafe tactics used by some Chinese food companies.  And, to have a Chinese food company controlling a major U.S. meat supplier, without shareholder accountability, is a bit concerning.   I've always said that we are nine meals away from a revolution, so a safe and sustainable food supply is critical to national security.  That's why CFIUS's scrutiny of this acquisition is vitally important.  How might this deal impact our national security?  What role does the Chinese government play in Shuanghui, like it does so many other 'private' companies?  These are important questions for CFIUS to get answered.

"The Smithfield-Shuanghui deal also highlights the need for Country of Origin Labeling.  Like so many Americans, I would rather eat pork, beef and poultry raised in the United States.  The deal only makes it more logical to ensure that American consumers know exactly what they are paying for and eating."