The Senate, following three days of debate on more than 70 amendments, passed the Agriculture, Food and Jobs Act of 2012 (S. 3240) by a vote of 64-35. The House Agriculture Committee has scheduled consideration of its version of new farm legislation for July 11.
Senators voting no on final passage were: Rubio (R-FL), Sessions (R-AL), Shelby (R-AL), Kyl (R-AZ), McCain (R-AZ), Boozman (R-AR), Pryor (D-AR), Chambliss (R-GA), Isakson (R-GA), Landrieu (D-LA), Vitter (R-LA), Cochran (R-MS), Wicker (R-MS), Burr (R-NC), Coburn (R-OK), Inhofe (R-OK), DeMint (R-SC), Graham (R-SC), Corker (R-TN) and Cornyn (R-TX).
During the Senate debate, the Senate utilized a relatively unusual procedure dubbed a vote-a-rama. The leaders agreed to consider 73 amendments under a process that alternated consideration of amendments between Democrat and Republican sponsors with two minutes of debate followed by a roll call vote. If the amendment was germane to the bill, it required 50 votes for approval, and if it was non-germane it required 60 votes. Some amendments were accepted or rejected on a voice vote.
Senators rejected an amendment by Sen. DeMint (20-79) to require all producer check-off programs to be converted to a voluntary participation basis and an amendment by Sen. Coburn (30-69) to reduce Market Access Program funding by 20% annually and prohibit certain promotion activities.
The Senate accepted an amendment by Sen. Grassley (R-IA) (75-24) to re-institute a limit on marketing loan gains and loan deficiency payments at $75,000. The Senate also approved amendments (66-33) by Sens. Coburn (R-OK) and Durbin (D-IL) to reduce the premium subsidy available to individuals with Adjusted Gross Incomes (AGI) above $750,000 by 15 percentage points. The higher premiums would not take effect until the Agriculture Department conducts a study, in consultation with the Government Accountability Office, to determine if the implementation of the provision would result to higher costs for other participants. The Senate also approved (63-46) an amendment proposed by Sen. Coburn that terminates the Secretary's authority to grant waivers to allow individuals with AGIs more than $1 million to receive conservation cost-share payments.
An amendment to terminate the sugar program offered by Sen. Shaheen (D- NH) and one to significantly modify the program by Sen. Toomey (R-PA) were rejected by surprisingly narrow margins of 46-50 and 46-53.
As expected, there were efforts to reduce funding and modify eligibility for nutrition programs beyond the reductions and reforms included in the Committee's bill. The Senate rejected amendments by Sen. Sessions (R-AL) to limit eligibility for certain nutrition programs and to provide funds in block grants to allow states to control the programs. The Senate also rejected an amendment by Sen. Gillibrand (D-NY) (33-66) to strike a $4.5 billion reduction in funding for the Supplemental Nutrition Assistance Program (SNAP) and increase funding for the fresh fruit and vegetable program, with an offset that limited crop insurance reimbursements to providers.
The Senate also rejected (15-84) an amendment by Sen. Paul (R-KY) to deny all commodity and conservation program benefits to individuals with an AGI above $250,000. Also rejected (15-84) was an amendment by Sen. Lee (R-UT) to end the Conservation Stewardship Program.
There were no amendments offered affecting the new ARC program, the SCO insurance program or the STAX program.
The NCC issued the following statement, "The U.S. Senate today passed S. 3240, the Agriculture Reform, Food and Jobs Act. By doing so, the Senate has taken an important step in a process that has proven to be extraordinarily complex. The cotton industry has reservations about a number of provisions in the Senate-passed legislation, but believes that the cotton title will facilitate successful resolution of the cotton component of the Brazil WTO dispute. The cotton industry looks forward to working with the leaders of the House Agriculture Committee and Cotton Belt members as they develop their version of new farm legislation. It is clear that U.S. cotton farmers are willing to make a significant contribution to deficit reduction and are committed to reform farm policy in a way that allows them to manage risks that are beyond their control. It is important for Congress to complete and the President to sign, in a timely manner, new farm legislation that is balanced, stable and predictable."
Hagan Amendment Did Not Get Vote
Sen. Hagan (D-NC), in conjunction with Sen. Crapo (R-ID), had filed an amendment to the Senate farm bill which essentially included the language of H.R. 872. This bill was passed by the House in March '11 and also was passed out of the Senate Agriculture, Nutrition, and Forestry Committee. The amendment would overturn a '09 federal appeals court ruling requiring the agency to issue Clean Water Act permits for pesticides sprayed over or near water.
There were nearly 300 proposed amendments to the Senate farm bill. However, Sen. Stabenow (D-MI), chair of the Senate Agriculture, Nutrition, and Forestry Committee, released a list of the 73 amendments that would go to the Senate floor for debate -- and Sen. Hagan's was not among those listed.
The H.R. 872 language will be included in the House farm bill leaving another opportunity for its passage in the House-Senate conference.
Agricultural Appropriations Bill Approved
The House Appropriations Committee approved by voice vote the FY13 agriculture spending bill (H.R. 5973).
The bill provides funding for USDA, the Commodities Futures Trading Commission (CFTC) and the Food & Drug Administration.It provides $19.4 billion in discretionary spending, $365 million below fiscal '12. Total spending, including mandatory funding, is $140.7 billion.
During bill consideration, the Committee rejected amendments to add funding for the CFTC and world food programs. By voice vote, the Committee accepted an amendment by Rep. Flake (R-AZ) which would make individuals or legal entities with an adjusted gross income of more than $250,000 ineligible for farm program benefits. Committee members spent significant time on an amendment by Rep. Farr (D-CA) to add $44 million for the CFTC. The amendment was ultimately rejected 19-27.
The bill provides $180.4 million to the CFTC, $24.9 million less than last year and $128 million less than the President's budget request.
The Administration, meanwhile, released a statement opposing the agriculture appropriations bill, as reported by the Committee, and threatened a possible veto.
The Administration's statement said, "The bill severely undermines key investments in financial oversight in a manner that would cripple Wall Street reform. It also imposes harmful cuts in rural economic development, renewable energy development, nutrition programs, food safety, and international food aid."
The bill is expected to be considered by the House on June 26 or 27. During consideration, Reps. Flake (R-AZ) and Kind (D-WI) are expected to offer an amendment to prohibit USDA from providing funding as required under terms of the US-Brazil Framework Agreement negotiated in '10. The Agreement is designed to prevent retaliation against US exports and intellectual property while the '12 farm bill is debated. Under terms of the Agreement, Brazil has agreed not to retaliate until the '12 farm law is enacted and it can be determined whether the cotton and GSM provisions resolve the WTO dispute. If the US violates the terms of the Agreement, which would be the result of adoption of the Kind-Flake amendment, Brazil is authorized to implement retaliation measures by immediately placing prohibitively high tariffs on more than 100 US exports and ignoring intellectual property right agreements.
The NCC is prepared to work in opposition to the Kind-Flake amendment as well as any other amendment that would adversely affects commodity, conservation and crop insurance programs. The NCC also is asking
Congressional Leaders to work to remove the $250,000 adjusted gross income test language from the bill during floor consideration.
Cooperation Reinforced With African Officials
The NCC hosted a meeting in Washington, DC, with a special delegation of West and Central African ministers, ambassadors and distinguished officials. The officials represented Benin, Burkina Faso and Chad.
The discussions will build a foundation for enhanced communication and establish the necessary groundwork for cooperation on issues of mutual interest, the NCC said in a statement. The full statement is available from the NCC website's home page, www.cotton.org.
AGOA Extension Bills Introduced
Identical, bipartisan legislation was introduced in the House (H.R. 5986) and Senate (S. 3326) to extend the African Growth Opportunity Act (AGOA) third-country fabric provisions through '15. The bills also make
technical corrections to the rules of origin for apparel qualifying for preferential treatment under the CAFTA-DR Free Trade Agreement. The legislation also reauthorizes import sanctions against Burma for three years and adds South Sudan as an eligible beneficiary country under AGOA.
The Senate is expected to approve the legislation next week under unanimous consent rules without amendments. The House could then consider the legislation after the July 4th recess.
US Trade Representative Kirk welcomed the introduction of the legislation, saying it would provide an economic boost to Africa and C. America that was intended by US lawmakers. Extension of the third-country fabric provisions are set to expire in September and reports indicate orders for shipment of African exports after that date are down 35%, with African textile exports already having dropped by 27% in the last year, according to USTR.
The third-country fabric provision allows for duty-free access to the US market for apparel produced in sub-Saharan African countries using fabric produced anywhere in the world. Because a large portion of apparel produced in Africa is made with third-country fabric, the expiration of the provisions would have seriously undermined AGOA development goals, according to a Senate Finance Committee statement.
The proposed legislation also includes technical corrections and modifications to the rules of origin under CAFTA-DR. All other participating countries have adopted the changes which clarify that certain types of yarn used as sewing thread will be treated the same way sewing thread is, meaning those yarns will have to be produced in CAFTA countries to qualify for duty-free treatment. The US textile industry has expressed support for the technical corrections to the CAFTA-DR rules and for extending the third party fabric provision in AGOA.
According to USTR, the correction on sewing thread will support an estimated 1,000 jobs in the United States, C. America and the Dominican Republic.
NCC Member Appointed to EPA Committee
Patrick Johnson, Jr., a Tunica, MS, cotton producer, has been appointed by EPA to be a member of its Farm, Ranch, and Rural Communities Committee (FRRCC) to represent the cotton industry interests.
Johnson, who manages his family farming operation that produces cotton, rice, corn, soybeans, wheat and grain sorghum, is a NCC producer delegate, NCC Environmental Task Force member and NCC Cotton Leadership Program graduate. He also is a Tunica County Farm Bureau and Delta Council director.
EPA established the Farm, Ranch, and Rural Communities Committee (FRRCC) in '08 to provide independent policy advice, information and recommendations to the Administrator on a range of environmental issues and policies that are of importance to agriculture and rural communities. The FRRCC addresses specific topics of relevance to agriculture as identified by the agricultural counselor to the EPA administrator, and reports its policy advice and recommendations to that administrator through the agricultural counselor.
Johnson said he thought having a face-to-face dialogue with EPA staff will be important because he could convey how the agency's decisions will affect cotton producers.
"It's important for cotton farmers and those of us who live in rural communities to have our voice heard and be able to communicate with EPA on the major issues, such as pesticide application, involving production agriculture," he said.
USDA Approves Packaging Specifications
The '12 NCC Joint Cotton Industry Bale Packaging Committee (JCIBPC) Specifications for Cotton Bale Packaging Materials have been approved by USDA for packaging '12-crop cotton for Commodity Credit Corp. (CCC) loan program purposes. The approval letter from Juan Garcia, USDA-FSA deputy administrator for Farm Programs, noted the specifications were approved by the full JCIBPC and its executive committee earlier this year.
A new 8 ½ gauge wire specification was added in the bale tie section of the specifications. No changes were made to the "Official Tare Weights" table but the table's dates were updated. New this year is the addition of a "Test Program Review" section in front of the specifications. The review section does not affect any of the specifications' bag or tie manufacturing guidelines but it does provide a summary of the test programs that were granted by the JCIBPC for the upcoming marketing year.
Net export sales for the week ending June 14 were 20,500 bales (480-lb). This brings total '11-12 sales to approximately 13.5 million bales. Total sales at the same point in the '10-11 marketing year were approximately 15.4 million bales. Total new crop ('12-13) sales are 2.4 million bales.
Shipments for the week were 186,000 bales, bringing total exports to date to 10.3 million bales, compared with the 13.4 million bales at the comparable point in the '10-11 marketing year.
Effective June 22-28, ’12
Adjusted World Price, SLM 11/16
63.70 cents
*
Fine Count Adjustment ('11 Crop)
0.40 cents
Fine Count Adjustment ('12 Crop)
0.60 cents
Coarse Count Adjustment
0.00 cents
Marketing Loan Gain Value
0.00 cents
Import Quotas Open
13
Special Import Quota (480-lb bales)
873,675
ELS Payment Rate
0.00 cents
*No Adjustment Made Under Step I
Five-Day Average
Current 5 Lowest 3135 CFR Far East
83.70 cents
Forward 5 Lowest 3135 CFR Far East
83.81 cents
Coarse Count CFR Far East
NA
Current US CFR Far East
87.50 cents
Forward US CFR Far East
82.10 cents
'11-12 Weighted Marketing-Year Average Farm Price
Year-to-Date (Aug.-April)
91.13 cents
**
**Aug.-July average price used in determination of counter-cyclical payment
