Speaker Boehner (R-OH) withdrew his bill to prevent the expiration of the '01 and '03 tax cuts after failing to secure enough Republican votes to pass the measure.
The House has adjourned subject to the call of the chair on 48 hours' notice.
"Now it is up to the president to work with Senator Reid on legislation to avert the fiscal cliff," Boehner said in a statement. "The House has already passed legislation to stop all of the January 1 tax rate increases and replace the sequester with responsible spending cuts that will begin to address our nation's crippling debt."
Speaker Boehner's plan had been to pass legislation (H.J. Res. 66) that would extend all of the expiring '01 and '03 tax cuts, but add a new 39.6% income tax bracket for households earning more than $1 million.
In addition to the tax issues, President Obama and Speaker Boehner differ over how much to cut spending. The White House maintained that it had offered a plan to raise $1.2 trillion in new tax revenues and $1.2 trillion from spending reductions, including $400 billion in savings from health programs, $200 billion in savings from non-health entitlements, and $200 billion in discretionary spending cuts.
Before Speaker Boehner withdrew his bill, the House voted 215-209 to pass a separate bill (HR 6684) to replace the defense portion of the sequester by making deeper cuts in non-defense spending. The bill would partially repeal and replace scheduled spending cuts under a '11 anti-deficit law.
The Spending Reduction Act of 2012 (H.R. 6684) was approved by a 215-209 vote, with one member voting "present." The bill is an updated version of legislation that passed the House in May on a mostly party-line vote, the Sequester Replacement Reconciliation Act (HR 5652). It wouldrepeal cuts to defense-related mandatory spending.
Leaders of the House and Senate agriculture committees continued efforts to find a way to attach a five-year farm bill to a legislative vehicle, but Speaker Boehner was quoted as saying he could not add the farm legislation to a deal on the fiscal cliff over concern that it would result in the loss of Republican votes.
Chairwoman Stabenow (D-MI) has shifted her attention to support of an agriculture disaster assistance package offered as an amendment to the supplemental appropriations bill being considered by the Senate. She has continued to express opposition to an extension of current law.
The most immediate consequence of there being no further action on farm legislation is the triggering of the '49 Act provisions on dairy. News outlets have begun to pick up the story that fluid milk prices could increase dramatically beginning in early January if the provision is not addressed.
Lucas Names Subcommittee Chairs
House Agriculture Committee Chairman Lucas (R-OK) named five subcommittee chairs and the Democratic Caucus approved several members to join the Committee for the 113th Congress.
The subcommittee chairmen are: Rep. King (R-IA), Department Operations, Oversight, and Nutrition; Rep. Conaway (R-TX), General Farm Commodities and Risk Management; Rep. Thompson (R-PA), Conservation, Energy, and Forestry; Rep. Austin Scott (R-GA), Horticulture, Research, Biotechnology, and Foreign Agriculture; and Rep. Crawford (R-AR), Livestock, Rural Development, and Credit.
"I am pleased to announce the Committee's leadership team for the next Congress," Lucas said. "Our subcommittee chairmen have demonstrated a commitment to ensuring the success of American agriculture and rural economies."
Ranking Member Peterson (D-MN) announced that four new members have been selected by the Democratic Caucus to join the Committee for the 113th Congress. The Democratic members are: Reps.-elect McLeod (D-CA), Vela (D-TX), Grisham (D-NM) and Kuster (D-NH). Additional members will be named later.
"Our Democratic Caucus is the most diverse in the history of Congress, and each of our Members will bring a unique perspective to the great challenges of our day, from job creation and economic growth to innovation, education reform, and clean energy development," Democratic Leader Pelosi (CA) said in a press release.
The Democrats will join seven new Republican members on the Committee that were announced by Committee Chairman Lucas on Dec. 5: Rep. Denham (R-CA) and Reps.-elect Benishek (R-MI); Collins (R-NY); Davis (R-IL); Hudson (R-NC); LaMalfa (R-CA), and Yoho (R-FL).
Lucas said, "I am pleased to welcome our new Republican Members to the House Agriculture Committee. I look forward to working with all of them in the next Congress as we continue to ensure the health and vitality of production agriculture and rural economies."
In other developments, Rep. Aderholt (R-AL) will chair the House Appropriations Agriculture Subcommittee in the 113th Congress and the Senate Appropriations Committee will be chaired by Sen. Mikulski (D-MD). The chair was vacant due to the death of Sen. Inouye (D-HI). Both Senators Leahy (D-VT) and Harkin (D-IA), the next most senior members of the panel, chose to continue to chair their respective committees -- Judiciary and Health, Education, Labor and Pensions -- opening the position to Sen. Mikulski as the most senior member.
Sen. Boxer to Retain EPW Chair
Sen. Boxer (D-CA) will remain as chair of the Senate Environment and Public Works Committee in the 113th Congress according to committee assignments approved on Dec. 12 by the Democratic Steering Committee.The assignment is subject to approval by the full Democratic caucus and an organizing resolution by the full Senate when the next Congress convenes in January.
There was earlier speculation that Sen. Boxer might move to chair the Foreign Relations Committee if Sen. Kerry (D-MA), the committee's current chairman, resigns from the Senate to lead the Defense Dept. On Dec. 11, Sen. Boxer told reporters that she would consider leaving the chairmanship of the Senate Environment Committee "under no circumstances."
Sen. Vitter (R-LA) will take over as the committee's Ranking Member, replacing Sen. Inhofe (R-OK). Self-imposed rules by Republicans limit them to six years in committee leadership positions.
H.R. 872, a bill that would amend the Federal Insecticide, Fungicide & Rodenticide Act and the Clean Water Act to override a Sixth Circuit ruling requiring EPA to permit certain pesticide uses, was passed by the House in '11. The Senate parliamentarian erroneously assigned it to the Agriculture Committee. Sen. Boxer put a hold on the bill and negotiations for her release of the bill were futile. If H.R. 872 is introduced during the 113th Congress as a stand-alone bill, it will be assigned to Sen. Boxer's committee where it is sure to die.
New Particulate Matter Standard Issued
On Dec. 14, EPA issued its long-awaited final rule revising the particulate matter air quality standards. The rule lowers the primary annual fine particulate matter (PM2.5) standard from 15 micrograms per cubic meter of air (µg/m3) down to 12 µg/m3.Fine particles are 2.5 micrometers in diameter and smaller, and coarse particles are larger than 2.5 micrometers but smaller than 10 micrometers.
The Clean Air Act requires the agency to review and consider revising air quality standards every five years. EPA reviewed the particulate matter standards most recently in '06.
Fine particles are emitted from sources such as vehicles, smokestacks and fires. The final rule also will require near-roadway monitoring in each urban area with a population of 1 million or more.
EPA estimates the new standard will cost industries as much as $350 million a year but will generate annual health benefits of $4 billion to $9 billion. The agency expects that fewer than 10 counties, out of the more than 3,000 US counties, will need to consider any local actions to reduce fine particulate pollution in order to meet the new standard by '20. The rest can rely on air quality improvements from current federal rules to meet the new standard.
Although the agency reduced the standard for fine particulates, it did not change the other particulate matter standards. It retained the existing daily standard of 35 µg/m 3 for fine particles and the existing daily standard of 150 µg/m 3 for coarse particulate matter. Agricultural interests earlier had voiced their opposition to more stringent "farm dust" standards.
EPA issued a proposed rule on June 14 that would have set a separate secondary daily standard visibility but the agency did not finalize that provision, stating that public comments made clear that the existing standards are sufficient for visibility protection.
Food Safety Registration Extended
As a part of the Food Safety Modernization Act (FSMA), all facilities (including cotton gins and cottonseed storage) that manufacture, process, pack or hold food for human or animal consumption within the United States or foreign facilities that export to the United States must re-register in even numbered years beginning with '12 (see 10/26/12 Cotton's Week).
However, the Food & Drug Administration (FDA) issued a guidance document stating that because there was a delay in FDA's implementation of biennial registration renewal for the '12 cycle, and registration renewal did not become available until Oct. 22, '12, FDA intends to exercise enforcement discretion with respect to registration renewals submitted to FDA after Dec. 31, '12 for a period of 31 days -- until Jan. 31, '13. The guidance document can be found by going to www.fda.gov/Food/GuidanceComplianceRegulatoryInformation/GuidanceDocuments/default.htm and finding the recently-added link: Questions and Answers Regarding Food Facility Registration (Fifth Edition).
National Cotton Ginners Assoc. Executive Vice President Harrison Ashley reiterated that there is no cost for gins or cottonseed storage facilities, which this year and biennially thereafter must re-register (or register this year if not previously registered).
The NCC was one of 107 local, state and national trade associations that signed a letter to President Obama urging immediate action to ensure that a strike affecting the East and Gulf Coast ports does not occur when the current contract extension between the International Longshoremen's Association (ILA) and the US Maritime Alliance (USMX), expires on December 29, '12. The letter is on the NCC's website at www.cotton.org/issues/2012/upload/12multiassociationportstrikeletter2.pdf.
Both sides have been negotiating their contract since March of this year, which covers ports from Maine to Texas. The letter encourages the President to use whatever means necessary to ensure a strike does not occur. Earlier this month, a coalition that included the NCC sent a letter to the ILA and USMX encouraging both sides to stay at the negotiating table.
NCC Planting Intentions Survey Underway
The NCC's annual survey of '13 planting intentions was mailed to upland and extra-long staple (ELS) cotton producers across the Cotton Belt. The survey, conducted each year to aid with industry planning and policy deliberations, provides the basis for the economic outlook presented to delegates during the NCC Annual Meeting in Memphis, TN. Survey results will be presented during the Joint Meeting of Program Committees on Saturday morning, Feb. 9.
To enhance the survey's accuracy, producers are encouraged to respond by the Jan. 16 deadline. The current survey has been distributed through a combination of regular mail and email with the intent of reaching all cotton farms across the Belt. Growers who do not receive a survey may contact the NCC via email at econsurvey@cotton.org for survey instructions.
"Crease Culture" Campaign Launches In UK
Cotton Council International rolled out its COTTON USA "Crease Culture" campaign in the United Kingdom (UK), and the campaign has populated more than 50 publications, among them high-circulation national UK newspapers such as The Sun, The Independent, The Daily Telegraph, The Daily Mail and The Daily Express.
Celebrity images, including those of Prince William and David Beckham, supported media messaging that men are loyal to natural, quality fabrics, even as they experiment with style and color at work. After only a few weeks, COTTON USA's "Crease Culture" promotion created nearly 250 million opportunities-to-see with an earned advertising value of $2.8 million thus far.
Sales Strong, Shipments Steady
Net export sales for the week ending Dec. 13 were 347,800 bales (480-lb). This brings total '12-13 sales to approximately 8.8 million bales. Total sales at the same point in the '11-12 marketing year were approximately 10.5 million bales. Total new crop ('13-14) sales are 532,400 bales.
Shipments for the week were 181,100 bales, bringing total exports to date to 3.1 million bales, compared with the 2.5 million bales at the comparable point in the '11-12 marketing year.
Effective Dec. 21-27, ’12
Adjusted World Price, SLM 11/16
63.34 cents
*
Fine Count Adjustment ('11 Crop)
0.74 cents
Fine Count Adjustment ('12 Crop)
0.94 cents
Coarse Count Adjustment
0.00 cents
Marketing Loan Gain Value
0.00 cents
Import Quotas Open
13
Special Import Quota (480-lb bales)
851,698
ELS Payment Rate
0.00 cents
*No Adjustment Made Under Step I
Five-Day Average
Current 5 Lowest 3135 CFR Far East
83.59 cents
Forward 5 Lowest 3135 CFR Far East
NA
Coarse Count CFR Far East
NA
Current US CFR Far East
85.80 cents
Forward US CFR Far East
NA
'12-13 Weighted Marketing-Year Average Farm Price
Year-to-Date (Aug.-Oct.)
69.84 cents
**
**Aug.-July average price used in determination of counter-cyclical payment
