The House Transportation and Infrastructure Committee overwhelmingly approved a bill to eliminate the requirement for certain pesticide uses to have a Clean Water Act (CWA) permit. H.R. 872, the “Reducing Regulatory Burdens Act of 2011,” is bipartisan legislation that was introduced in the House by Water Resources and Environment Subcommittee Chairman Gibbs (R-OH), Transportation Committee Member and Chairman of the House Agriculture Committee’s Subcommittee on Nutrition and Horticulture Schmidt (R-OH), and other Members. The Committee approved the legislation by a vote of 46 to 8.
The bill reverses a ’09 decision of the Sixth Circuit Court of Appeals in National Cotton Council v. EPA. This decision vacated a ’06 EPA rule and long-standing interpretation that the application of a pesticide for its intended purpose and in compliance with the requirements of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) does not also require a separate permit under the CWA.
The court-ordered deadline for EPA to promulgate the new permitting process for pesticides is April 9, ’11. EPA has estimated that approximately 365,000 pesticide users, including state agencies, cities, counties, mosquito control districts, water districts, pesticide applicators, farmers, ranchers, forest managers, and scientists that perform 5.6 million pesticide applications annually will be affected by the court’s ruling. This mandate virtually would double the number of entities currently subject to National Pollutant Discharge Elimination System (NPDES) permitting under the CWA.
H.R. 872 exempts from the NPDES permitting process a discharge to waters involving the application of a pesticide authorized for sale, distribution, or use under FIFRA, where the pesticide is used for its intended purpose and the use is in compliance with pesticide label requirements. The legislation would amend FIFRA and the CWA to clarify Congressional intent and eliminate the duplicative NPDES requirement.
The bill was reported unanimously out of the House Agriculture Committee last week. Currently, 23 Democrats and 70 Republicans are official cosponsors. Bill proponents would like to see it pass the House within the next two weeks.
The NCC issued an Action Alert for members to contact their Representatives to urge them to co-sponsor the bill if they already are not a co-sponsor. The alert and current list of cosponsors are available on the NCC’s website at www.cotton.org.
Rep. Fincher Steps Up on EPA Dust Rule
Freshman Rep. Fincher (R-TN) has initiated both a Dear Colleague letter and a Members letter to EPA Administrator Lisa Jackson, which convey Congressional opposition to EPA’s proposal to regulate coarse particulate matter (dust) at lower levels. He is circulating these letters for signatures of other House Members. These letters are available on the NCC’s website at www.cotton.org/issues/2011/fincherdust.cfm.
Under the Clean Air Act (CAA), EPA is required to review its National Ambient Air Quality Standards every five years. Particulate matter is one of six criteria pollutants under the CAA which are subject to this periodic review.
An EPA advisory board, which helps EPA review the standards, concluded that the uncertainty surrounding current health data are such that EPA could either maintain the present standard or reduce it. Although the agency has not made a formal proposal, it is considering a threshold twice as stringent as the current standard.
In his letter to Administrator Jackson, Rep. Fincher states, “Given the difficulty and expensive process of mitigating dust in most settings, the revised standards could have a devastating impact on rural communities and greatly reduce our nation’s food security.”
Rep. Fincher, 37, was a managing partner in Fincher Farms, a W. Tennessee-based business farming cotton, corn, soybeans and wheat. He has been a farmer in the family business his entire life and lives in the Frog Jump community of Crockett County. He currently is a member of both the House Committee on Agriculture and Committee on Transportation and Infrastructure.
Bayer Ceasing Production of Key Temik Component
Bayer CropScience announced that it has decided not to restart the transitional production of methyl isocyanate (MIC) at its site in Institute, WV. As a result, the company will move forward immediately with decommissioning of the reconfigured MIC and associated production units as well as the closure of its Woodbine Temik® formulation facility in Georgia.
Following a ’10 agreement with EPA, the company agreed to phase out Temik® and had timed production to end in ’12, to allow for an orderly market exit and meet immediate customer needs. The company was planning to start the MIC unit and begin transitional production of the Temik® brand insecticide early this year, but uncertainty over delays has led the company to the conclusion that a production restart can no longer be expected in time for the ’11 growing season.
“We regret that the decision taken today (March 18) to not restart production of MIC will not allow farmers access to Temik®,” said Bill Buckner, president and CEO of Bayer CropScience in the United States. “However, we are committed to delivering the right solutions from our innovation portfolio in support of modern agriculture for our customers.”
NCC Chairman Charles Parker complimented an initiative to streamline and make government more efficient, but cautioned against making changes that would undermine the effectiveness of agencies including the Foreign Agricultural Service (FAS) and the office of US Trade Representative (USTR).
Parker, a Missouri cotton producer, was referring to President Obama’s March 11 memorandum sent to the heads of all executive branch agencies asking them to assist in the development of a plan to restructure and streamline the federal government, starting with trade and export agencies.
“Agriculture’s remarkable record in export markets is due in part to the professional staff of FAS who perform an outstanding job of gathering information and assisting U.S. exporters in successfully navigating complicated international markets,” Parker said. “Cotton Council International, the export promotion arm of the Council, was an original participant in the highly effective foreign market development program and has a valued partnership with FAS. Any cotton industry representative who has travelled internationally will attest to the indispensible assistance provided by FAS staff stationed abroad. FAS also plays a key role in providing information to our negotiators at USTR.”
Parker also expressed concern that if USTR were consolidated with an agency like the Export-Import Bank, it could increase bureaucracy and limit USTR's ability to operate efficiently.
According to the memo, Jeffrey Zients, federal chief performance officer and the deputy director for management at the Office of Management and Budget, will lead the effort. Within 90 days of the memo date, Zients must submit recommendations for presidential and, ultimately, congressional action to restructure and streamline federal government programs focused on trade and competitiveness.
Zients will establish a “Government Reform for Competitiveness and Innovation Initiative,” led by an executive director, to conduct a comprehensive review of the federal agencies and programs involved in trade and competitiveness, the memo stated. According to the memo, this will include analyzing agency scope and effectiveness, areas of overlap and duplication, unmet needs, and possible cost savings. Additionally, Zients and the executive director must consult with the heads and staff of departments and agencies, including the offices and agencies within the Executive Office of the President. They also are instructed to consult with stakeholders, including members of Congress, business leaders, unions, nongovernmental organizations and government reform experts.
At a March 11 meeting, Zients told the President's Export Council (PEC) that trade and exports would be the first area of focus. Trade issues are currently handled by 12 different agencies, which leads to “fragmentation of roles and responsibilities,” Zients said.
Parker emphasized that the NCC intends to convey strong support for FAS and USTR in Washington. “While this undertaking is commendable, we urge the leaders of this initiative to not combine FAS or USTR with other agencies in a way that diminishes their roles in trade negotiations, promotion, enforcement and policy development,” he said.
Temporary Funding Bill Passed by House and Senate
The Senate passed (87-13) a sixth resolution (H.J. Res. 48) that will keep the government running through April 8. The measure is identical to the one passed by the House (271-158). The President signed the bill into law.
In addition to funding government operations and programs, the CR also includes spending reductions totaling $6 billion. Included in the $6 billion is $3.5 billion in program cuts and terminations. They range from $50 million at the Corp. for Public Broadcasting to $276 million for flu funding to $200 million for Wildland Fire Suppression. Another $2.6 billion in savings was found by eliminating earmark account funding that was automatically renewed in the CR approved last December. The earmarks were within the Agriculture, Commerce/Justice/Science, Financial Services/General Government, and Interior subcommittee jurisdictions.
The House Appropriations Committee’s March 11 news release includes a summary of the program reductions and terminations in H.J. Res. 48. That summary is available on the NCC’s website at http://www.cotton.org/issues/2011/crup.cfm.
Panel Urges No Significant Ag Program Spending Cuts
The House Agriculture Committee is urging House Budget Committee Chairman Ryan (R-WI) not to include significant spending cuts to agriculture programs in the FY12 budget, citing projected crop-insurance savings and past multi-year reductions in other areas.
The agriculture panel approved a “views and estimates letter” to Chairman Ryan which makes the point that agriculture already has made a significant contribution to deficit reduction. The letter cites as contributions to lower spending the Agriculture Department’s projected $6 billion in savings over 10 years from limits on administrative and operating costs for crop insurance; and $7.5 billion in reductions to mandatory spending on conservation, rural development, trade, research and energy programs from fiscal years ’03-10. The committee said it will spend most of ’11 setting program and funding priorities for new farm legislation to replace the current farm law that expires in ’12. The letter also includes arguments to counter the administration’s proposal to cut nearly $5 billion a year in direct payments.
Chairman Ryan’s response is unknown but during the debate on the current farm law he supported amendments, which ultimately failed, that would have tightened income eligibility limits and reduced direct payments.
Agriculture Committee Chairman Lucas (R-OK) has consistently rebutted calls for significant changes to direct payments or other safety net programs.
“While agriculture and its related industries constitute 4.6 percent of U.S. gross domestic product, the farm safety net now constitutes less than one-quarter of 1 percent of the federal budget and roughly 13 percent of USDA’s budget,” the committee noted in its letter. “In closing, some may argue that the current agriculture economy and farm prices are strong and therefore now would be a good time to cut our agriculture policies even further — but this conclusion ignores lessons from history. The agriculture economy is highly cyclical.”
The committee offered the Supplemental Nutrition Assistance Program (SNAP) as a possible candidate for spending reductions. The panel said it might not continue the boost in monthly benefits for SNAP participants when they expire on Nov. 1, ’13. SNAP, which accounts for nearly three-quarters of the Agriculture Department’s budget, got an across-the-board increase in monthly benefits under the ’09 stimulus bill. The temporary increase was slated to end in FY18, but Congress already has tapped $14.4 billion of that increase to aid states with Medicaid, to help school districts avoid teacher layoffs and to reauthorize and expand federal child-nutrition programs. As a result, the SNAP benefit increases will expire earlier than originally scheduled.
Sales Slip, Shipments Strong
Net export sales for the week ending March 10 were -51,600 bales (480-lb). This brings total ’10-11 sales to about 15.6 million bales. Total sales at the same point in the ’09-10 marketing year were about 9.9 million bales. Total new crop (’11-12) sales are 4.4 million bales.
Shipments for the week were 336,000 bales, bringing total exports to date to 8.6 million bales, compared with the 6.1 million bales at the comparable point in the ’09-10 marketing year.
Effective March 18-24, ’11
Adjusted World Price, SLM 11/16
205.35 cents
*
Fine Count Adjustment ('09 Crop)
0.00 cents
Fine Count Adjustment ('10 Crop)
0.00 cents
Coarse Count Adjustment
0.00 cents
Marketing Loan Gain Value
0.00 cents
Import Quotas Open
0
Special Import Quota (480-lb bales)
0
ELS Payment Rate
0.00 cents
*No Adjustment Made Under Step I
Five-Day Average
Current 5 Lowest 3135 CFR Far East
222.19 cents
Forward 5 Lowest 3135 CFR Far East
145.87 cents
Coarse Count CFR Far East
NA
Current US CFR Far East
220.30 cents
Forward US CFR Far East
145.75 cents
'10-11 Weighted Marketing-Year Average Farm Price
Year-to-Date (Aug.-Jan.)
80.47 cents
**
**August-July average price used in determination of counter-cyclical payment
