Washington Report for 9-7-12

By Steve Kopperud

Dem, GOP Platforms Short on Ag, Agribiz Details; Policy Statements Emerge

With Sen. Dick Durbin (D-IL) telling the media this week the least read documents in any presidential campaign are the party platforms, a comparison of the Democrat and Republican party philosophies committed to paper shows they’re short on attention to rural America and agriculture. However, some details were forthcoming in both broader policy statements issued by candidates or in their responses to media inquiries. The following is a snapshot of both candidates’ broad positions on the issues important to agriculture and agribusiness:

Farm Bill Issues: Both candidates say nice things about federal crop insurance, expanded trade, ag research and dollars for food safety. The Republicans talk about the end of direct payment programs and say risk management options, like crop insurance, are the way to go. The Democrats say much the same thing, but also talk about the need for expanded permanent disaster relief programs. The Democrat platform document also talks about rural development – as the administration has since the beginning of the Farm Bill debate – and talks about a “record number of small business owners” receiving help from the Obama U.S. Department of Agriculture (USDA), and tosses in its priority on expanded broadband Internet access and improved “rural water and sewer” infrastructure.” The Democrat platform says the party supports “agriculture from the small farm that feeds the community to the large farms that feed the world.”

Food Safety: Neither party platform talks in detail about feed or food safety, but the GOP document makes broad statements about the need for Congress to ensure the “adequate resources” for USDA to do what it’s supposed to do to keep food safe. The Democrats talk about regulations promulgated during President Obama’s first term that are the reasons “our food is safe to eat, our water is safe to drink and our air is safe to breathe.” GOP candidate Mitt Romney, in response to a United Fresh Fruit & Vegetable Association (UniFresh) questionnaire, said he favors food safety preventative controls developed by “supply chain stakeholders” and supports commodity-specific requirements for produce associated with foodborne illness outbreaks. He said his administration “will prioritize this type of cooperation and collaboration with industry on the part of all agencies charged with protecting public health.” Obama points to enactment of the Food Safety Modernization Act (FSMA) and also gives a nod to cooperation with industry, particularly to ensure small farms can “help to reduce food safety risk.” The President also talks about his creation of a Food Safety Working Group during his first 100 days in office.

Energy: Neither party or candidate talks about the Renewable Fuel Standard (RFS) and the food versus fuel debate, but Romney, in a separate policy statement, said he favors an RFS approach to emerging energy technologies. The President touts his “all of the above” strategy on developments of alternatives to imported oil, but continues to hold back on drilling on federal land. He wants 80 percent of the nation’s electricity generated by “clean energy” by 2035, and favors incentives to create more efficient homes, office buildings and government facilities. He also favors repeal of federal tax breaks for big oil and energy companies. Romney believes regulatory reform – “a free market and the public’s preferences” – is the best incentive to develop all forms of alternative energy, and believes the U.S. is underutilizing its reserves of coal, oil and natural gas. The GOP platform says “taxpayers should not serve as venture capitalists for risk endeavors.” He favors investment in nuclear energy, and says public lands must be opened to energy development, along with energy partnerships – including pipelines – with Canada and Mexico. 

Regulation: The Republicans, when it comes to regulation, contend private ownership is the best way to ensure environmental stewardship and take dead aim at the Environmental Protection Agency (EPA), again urging Congress to rein in the agency to stop new greenhouse gas regulation and proposing Congress must approve any EPA rule that costs $100 million or more. The Democrats are proud of their EPA record, saying they’ve cut pollution and are “advancing public health.” The Democrats also give a nod to global warming – “one of the biggest threats of this generation” – saying it’s a national security, economic and environmental disaster in the making. 

Immigration: Obama strongly supports the DREAM Act – legislation to allow U.S.-born under-31-year-old children of illegal immigrants to receive a deferral on deportation if they attend school or enlist in the military, and issued an executive order on deferred deportation in 2012.  He also favors a path to citizenship for illegal immigrants, supports the border fence with Mexico, but opposes English as the U.S. national language. Romney opposes the DREAM Act, and says he would veto it if Congress were to pass it. He favors allowing military veterans who are illegal immigrants to become permanent citizens, along with penalties for employers who knowingly hire illegals. He once supported a path to citizenship, but now opposes “amnesty plans,” and favors English as the national language.

Trade: Obama touts his signing of free trade agreements with South Korea, Panama and Colombia, and he points to his creation of a National Export Initiative, a move he says will double U.S. exports by 2015. Romney favors re-instatement of the President’s Trade Promotion Authority (TPA), which allows the White House to negotiate bilateral trade treaties with little interference from Congress, and is pushing completion of the TransPacific Partnership (TPP) which seeks a trade pact with Asian-Pacific nations. Both candidates support strong enforcement of penalties against China in adhering to both World Trade Organization (WTO) and bilateral trade agreements. 

Corporate Taxes: The Obama administration favors a reduction in the corporate tax rate to 28 percent, while Romney believes it should be lowered to 25 percent. Obama points to his signing of 18 separate tax cuts for small business, his extension of the federal payroll tax cut, and wants to see broad tax reform. Romney wants to make the R & D tax credit permanent, and would create a territorial tax system allowing U.S. companies to bring back overseas profits now exempt from federal tax if kept offshore. He would repeal the Alternative Minimum Tax (AMT), and would make permanent the Bush tax cuts.

Research: When it comes to technology and innovation, both candidates support federally funded research programs and regulatory decisions based on the best available science, but Romney called out the Food & Drug Administration’s (FDA) “slow and opaque” approval process on new products and technologies, and said he’d like to see cost as a major component of any regulatory decision. Obama pointed to his White House’s “investment in research,” but when it came to FDA he allowed he supports limits to the use of antibiotics on farms. 

Grassley Sees Farm Bill Extension, Stabenow Sees Disaster Aid, Lucas Wants Floor Time

Farm Bill veteran Sen. Charles Grassley (R-IA) this week said there’s no way Congress can get a 2012 Farm Bill enacted before the current bill expires at the end of the month, meaning a one-year extension of current programs is the only option left. Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI), however, said farmers can expect Congress to act on some kind of disaster/drought assistance package in the absence of a comprehensive Farm Bill, and insiders say that a drought aid package could look a whole lot more like a Farm Bill than a disaster bill. Rep. Frank Lucas (R-OK), chairman of the House ag panel, says he believes the August recess gave House members an earful on the need for a Farm Bill, that if leadership allows floor time for “20 or 30 amendments” and an open, straightforward process, the House can complete action on its committee-passed bill before the end of September. Grassley said the farm program extension would be tacked on to the agreed-to six-month continuing resolution to keep the government running, legislation expected to be acted upon in the next week or so. Grassley also agreed with Stabenow on the likelihood of a disaster package passing Congress, but one that looks a whole lot like the bill passed by the House in July. If Congress does not act on the Farm Bill but passes a disaster/drought bill, work will continue on completing the 2012 Farm Bill, sources said, and that bill would likely be taken up during the lame duck session expected after the November 6 election.

NCGA Wants Extension on RFS Waiver Comment Period

The National Corn Growers Association (NCGA) this week formally asked EPA to extend for an additional 30 days the agency’s deadline on public comment on the wisdom of waiving the ethanol Renewable Fuel Standard (RFS) as requested by eight governors. Set to end September 26, the comment period should be extended, NCGA said, because 30 days is not enough time for a thorough analysis of the waiver requests, a waiver’s impact on ethanol production or whether a waiver will even help in the wake of a drought-devastated crop, dwindling corn supplies and spiking prices. The group said farmers are consumed right now with harvest, and that it makes sense to actually know how much corn is harvested before deciding on the waiver request. EPA will likely grant the extension as the Obama White House does not want the RFS issue hitting the President on the campaign trail.

Hurricane Isaac Helps Mississippi River Levels

Rain dumped on the Mississippi River Valley last week by Hurricane Isaac helped out barge operators and other river shippers by increasing river levels as much as two feet from drought-depleted levels. A two-mile stretch near Greenville, Mississippi, is still low enough that barge traffic is limited to one-way only. The U.S. Army Corps of Engineers said without the rains, the river was heading for its lowest levels since 1988. This week the Coast Guard said it would allow lower Mississippi River movement for barges with drafts of 10 feet, up from the 9-ft draft level set over the last month, but below the normal 12-ft. draft. Tow chains are limited to no more than 25 barges on southbound routes and 36 barges – only 20 loaded – for northbound traffic, according to reports. 

Business Pushing Russian Trade Deal for September Action

Business and agriculture groups are putting a full-court press on Congress to enact a trade deal with Russia by the end of the month, and groups told House and Senate leaders this week in a letter signed by the American Farm Bureau Federation (AFBF) that giving Russia permanent normal trade relations is a top priority. Russia was allowed to join the World Trade Organization (WTO) in August, but because of Cold War legislation that must be repealed, the U.S. will not benefit from Russia’s WTO accession, the groups said. The so-called Jackson-Vanick legislation passed in the 1960s sanctioned nation’s which interfered with Jewish emigration to Israel, was aimed at the former Soviet Union, and it’s generally agreed this law should be repealed. However, congressional human rights champions believe Russia’s history argues strong sanctions language on violations of international human rights standards be included in the trade bill before Congress acts.

Minnesota Gets Food Safety Center of Excellence

The Minnesota Department of Health and the University of Minnesota School of Public Health got the nod from the federal Centers for Disease Control to create a regional “center of excellence” for food safety, according to an announcement from Sen. Amy Klobuchar (D-MN) this week. The center of excellence, authorized by the Food Safety Modernization Act (FSMA), will provide “resources for state and local officials to improve food safety through better detection and investigation of outbreaks of foodborne illness,” Klobuchar said. Klobuchar and Sen. Saxby Chambliss (R-GA) authored the FSMA section authorizing creation of the centers. The public health department will receive a $199,970 grant to help establish the center.