Washington Report for 2-4-13

By Steve Kopperud

Everyone Has an Immigration Plan

After more than four years of inaction save for killing off the DREAM Act twice – legislation to give the children of illegal immigrants deferred deportation status if they’re in school or the military – Congress may send immigration reform legislation to the President, possibly this year. Four immigration reform plans are out for public scrutiny, most released in the last 10 days. “Frameworks,” or policy points, have been released by President Obama, a group of eight bipartisan Senators, with four other Senators touting their own specific issue bill, and it’s reported a House coalition is “secretly” drafting its own immigration reform package. These four overarching reform plans do not include several bills already introduced to fix specific parts of federal immigration law. However, the political battles have yet to begin in earnest and the biggest sticking point – as it’s been in all previous congressional debates over immigration reform – is how to provide a means by which undocumented workers can achieve citizenship without granting “amnesty” for entering the country illegally. 

Plans Offered So Far:

White House: The President’s plan has four major components: Strengthen border security through hiring of more agents, as well as use of technology and infrastructure advances to remove criminals and other national security threats; crack down on employers who hire illegal aliens, but give responsible companies a way to accurately assess worker citizenship status; create a  path to earned citizenship by providing a way for illegal workers to pay back taxes, play by the rules, pass national security and criminal background checks, go to the back of the line on entrance applications and learn English before they can become citizens; and lastly, rework the system so it is simple and efficient. Obama’s White House fact sheet specifically mentions “Agricultural workers and those who entered the U.S. as children would be eligible for the same programs.”

“Gang of Eight” Senators: As in the President’s plan, the eight bipartisan Senators lead off with enhanced border security using best available technology and infrastructure, including the use of unmanned drones and other surveillance equipment. The group specifically talks about the importance of ag workers and how they’ll be treated “differently” on the path to citizenship than other illegal immigrants. One recommendation in the framework is an uncapped agricultural worker visa program, under which two options would be provided. First, so-called “at-will” workers move from job to job without contracts, and would enjoy an 11-month visa term with a USDA-registered employer. They’d have to return home for 30 days when the visa expired, but there would no limit on how many repeat visas a worker could get. The second option would allow contract employees to work a fixed term with an employer and enjoy a 12-month visa – renewable indefinitely – but they’d have to return to their home country at least once for a 30-day period every three years. The eight also would require the government to establish an effective “entry-exit” system to track temporary visa holders who are expected to report their departures when their visas run out, but the government has not actively enforced the visa requirement. The path to citizenship proposed by the Senators would require undocumented aliens to pass background checks, pay fines and back taxes and earn a probationary legal status allowing them to work in the U.S. These probationary workers would go to the back of the line when seeking green cards. These workers would also pass a second background check, pay taxes, learn to speak English, take civics courses and prove they’ve worked in the U.S. before getting a green card. No probationary worker could receive entitlement program or other benefits. The plan also includes the DREAM Act as a path to citizenship for the children of illegals, and would create a separate green card path for ag workers. Immigrants who earn doctorates or masters degrees in science, technology, engineering or math would also earn green cards. As to employer verification, the Senators would set up stiff fines and criminal penalties for employers who knowingly hire illegals, but would allow companies to hire immigrants if they show an American won’t do the job. The eight Senators are Sens. John McCain (R-AZ), Jeff Flake (R-AZ), Marco Rubio (R-FL), Lindsey Graham (R-SC), Charles Schumer (D-NY), Dick Durbin (D-IL), Robert Menendez (D-NJ) and Michael Bennet (D-CO).

“High Tech” Immigration Plan: A bipartisan quartet of Senators waded into the immigration reform flurry of options, saying their plan – a bill introduced just before the President publicly disclosed his framework – would allow the U.S. to retain and attract highly skilled technical workers. The biggest part of the narrowly-focused bill would automatically grant greens card to foreign graduates of U.S. universities with similar degrees in science, technology, engineering and math, or so-called STEM jobs. The approach is similar to the Gang of Eight proposal. Green cards would also be granted to the families of qualified immigrants so as not to draw down the pool of available H-1B worker visas too quickly, and to mollify supporters in both chambers who demand families be equally considered when an individual is up for his/her green card. This is aimed as responding to business complaints that workers with temporary H-1B visas are encouraged to seek overseas employment since the U.S. system grinds so slowly. The bill would lift the cap on the number of such visas from 65,000 annually to 115,000 or more, depending on demand. Senators involved in this plan are Sens. Orrin Hatch (R-UT), Marco Rubio (R-FL), Amy Klobuchar (D-MN) and Chris Coons (D-DE). 

“Secret” House Draft: Politico, a newspaper covering Capitol Hill, reports that an eight-person bipartisan group in the House is working up a framework on immigration reform. The group had hoped to release the principles it’s pursuing last week, but said it will likely be mid-February before details are released to the public. The group is expected to be talking principles and talking points rather than policy recommendations, and acknowledged to Politico that their biggest hurdle is path to citizenship. The eight members of the group are Reps. Zoe Lofgren (D-CA), Xavier Becerra (D-CA), Luis Gutierrez (D-IL), John Yarmuth (D-KY), Mario Diaz-Balart (R-FL), Sam Johnson (R-X), John Carter (R-TX) and Raul Labrador (R-ID).

Ag Groups Ready for Immigration Reform

Most of the immigration reform plans floated so far – including President Obama’s – make specific reference to the critical or “special” need to protect farm workers as part of the reform effort, and while most in agriculture praise the overall effort to deal with immigration reform, most are keeping their powder dry until legislative language is released. General farm groups, fruit, vegetable and specialty crop groups whose industries rely heavily on seasonal workers have been in talks with the United Farm Workers union to find consensus on how ag workers will be treated in any comprehensive immigration reform legislation enacted by Congress. While those talks continue, other ag groups, including livestock and poultry producers, have pledged to work for reform. The groups actively negotiating with the unions on how best to treat ag workers have formed the Agriculture Workforce Coalition, and the American Farm Bureau Federation – which praised “bipartisan reform efforts which recognize agricultural provisions must be part of any agreement” – acknowledged the Gang of Eight Senators want the coalition to come to an agreement with the unions at least on major reform components. One major area of contention is a push by farmers to scrap the seasonal worker H-2A visa program in favor a more inclusive system that would serve farms needing year-around employees, including poultry, dairy and other livestock operations, as well as crop and produce producers. About 55,000 H-2A visas were issued in 2011, according to reports. Union spokespeople said any agreement on replacing the visa program must afford workers “an opportunity to earn legal status in the future.” Other members of AWC praising the reform efforts so far include the National Council of Farmer Cooperatives, Western Growers, United Fresh Produce Association and the National Restaurant Association.

Harkin, Chambliss Announce Retirements

Sen. Tom Harkin (D-IA) and Sen. Saxby Chambliss (R-GA) announced they will not seek re-election in 2014. Their departure will signal the loss of two of agriculture’s most ardent supporters. Harkin, who was a member of the House Agriculture Committee before jumping to the Senate, served as chairman of the Senate ag panel on two different occasions, and was considered by many in Washington, D.C., ag circles as the “trifecta of influence.” He left the ag chair – but stayed on the committee – to take the reins of the Senate Health, Education, Labor & Pensions Committee, which has jurisdiction over the Food and Drug Administration and food safety law, and was a senior member of the Senate Appropriations Committee, with strong influence over USDA/FDA annual funding. Harkin’s explanation for retiring was that “it’s time,” while Chambliss, also a former chairman of the Senate Agriculture Committee and also a former House ag committee member, made it clear his frustration with Senate gridlock and partisan infighting was the major reason he’s decided not to run again. Chambliss sits as ranking member of the Senate Select Committee on Intelligence.

Roberts, Johanns Introduce Pesticide Permit Fix – Again

Legislation to overturn duplicative Environmental Protection Agency pesticide permit registrations was introduced this week by Sen. Pat Roberts (R-KS) and Sen. Mike Johanns (R-NE) after similar legislation failed to see action in the last Congress. The Roberts-Johanns bill amends the Federal Insecticide, Fungicide & Rodenticide Act to change Clean Water Act permitting so that new CWA registrations for use near water are not necessary if the product is already registered with EPA. The House approved a similar bill in the last Congress and the Senate Agriculture Committee also approved Roberts-Johann legislation, but the full Senate did not take action due to opposition from Sen. Barbara Boxer (D-CA), chairwoman of the Senate Committee on Environment & Public Works.

MFG Bankruptcy Update

The New York Times reported the federal bankruptcy court handling the MF Global bankruptcy was on track to approve a proposal by the MFG trustee that would ultimately return about 93 percent of missing money to MFG customers. Currently, the average return to customers is about 80 percent. While the agreement would close out several aspects of the nation’s eighth largest bankruptcy, federal investigations – one by the Commodity Futures Trading Commission and another by the Justice Department – continue.

Public Meeting on FSMA Proposed Rules Set for February 28-March 1

The Food and Drug Administration announced that it will hold a public meeting – the first in a series of three – to explain proposed rules required under the Food Safety Modernization Act. The rules on produce safety and preventive controls for human foods will be discussed at meeting to be held Feb. 28-March 1, in Washington, D.C., at the U.S. Department of Agriculture Jefferson Auditorium, 14th & Independence Ave. SW. “The purpose of the meeting … is to discuss the proposed rules to establish standards for growing, harvesting, packing and holding of produce for human consumption … and for current good manufacturing practices and hazard analysis and risk-based preventative controls for human food,” FDA said. Attendees can register online at www.fda.gov, or by contacting Courtney Treece at ctreece@fda.hhs.gov. Details on the remaining meetings will be released shortly, FDA said.

FDA Commissioner’s Office Moves to Consolidate Vet Medicine, Food

The Food and Drug Administration announced creation of its “commissioner-level Office of Foods and Veterinary Medicine.” While many of the functions of the newly formed office have been in place for months, many see the move as part of FDA Commissioner Margaret Hamburg’s desire to re-align operations in the agency. The Office of Foods was created in 2009 “to elevate leadership of food and feed safety” and the latest moves are part of the Food/Veterinary Medicine Strategic Plan 2012-2016, reflecting implementation of the Food Safety Modernization Act, the most sweeping changes in FDA authority in 70 years. While re-aligning reporting responsibilities, the move also creates several new levels of operation with the office of Deputy Commissioner for Foods Michael Taylor. In addition to giving Taylor a new associate commissioner, it creates an Office of Resource Planning and Strategic Management; a communications and public engagement staff; a chief science officer/research director; and a new “Executive Secretariat” staff. The FDA Center for Veterinary Medicine, which regulates the feed industry, and the Office of Food Safety & Applied Nutrition operations are not affected by the “consolidation” in the new office.

Senators Call on Obama to Replace EPA’s Jackson Quickly

Sixteen Senators sent a letter to President Obama urging him to waste no time in naming a replacement for Environmental Protection Agency Administrator Lisa Jackson who’s announced she’s leaving her job. “We believe it is critical you appoint an (EPA) administrator who has both a vision and demonstrated record of working to safeguard our children and families,” the Senators wrote. “The EPA nominee must also build on (Jackson’s) critical work to protect the air we breathe and the water we drink.” The letter was signed by Sen. Barbara Boxer (D-CA) – chairwoman of the Senate Committee on Environment & Public Works – and senior Sens. Dick Durbin (D-IL), Debbie Stabenow (D-MI) – chairwoman of the Senate Agriculture Committee – and Dianne Feinstein (D-CA), among others.

LaHood to Leave Cabinet in February

Secretary of Transportation Ray LaHood, a former member of the House and one of the only Republicans in the Obama administration, announced that he’ll leave his job in this month. LaHood, a former chief of staff to House minority leader Rep. Bob Michel (R-IL), served in the House from 1982-94, sitting as a member of the agriculture committee.

Federal Court Rules Cellulosic Ethanol Mandate “Unreasonable;” EPA Sets 2013 RFS

The federal mandate that gasoline refiners blend specific percentages of cellulosic ethanol as part of the federal Renewable Fuel Standard was struck down by a federal appeals court as “unreasonable” since no commercial cellulosic ethanol is currently available to oil companies. Meanwhile, the Environmental Protection Agency ignored the court ruling and released its proposed 2013 RFS on various biofuels, including cellulosic ethanol. The U.S. Court of Appeals for the District of Columbia said EPA overstepped its authority by enforcing the RFS on cellulosic ethanol, finding in favor of the American Petroleum Institute, saying the EPA action “did not take neutral aim at accuracy,” and “was an unreasonable exercise of agency discretion.” In 2012, EPA said 8.7 million gallons of the biofuel was to be blended with gasoline, but only about 20,000 gallons was produced by industry. For 2013, overall RFS volumes and standards for various biofuels are as follows: Biomass-based diesel – 1.28 billion gallons (1.12 percent); advanced biofuels (including biodiesel and renewable biodiesel) – 2.75 billion gallons (1.6 percent); cellulosic biofuels – 14 million gallons (0.008 percent); and total renewable fuels – 16.55 billion gallons (9.63 percent). The RFS proposal is open for 45 days for public comment. In a related note, porkNetwork reported that U.S. ethanol production has fallen to its lowest levels since the government began keeping tabs on the fuel, citing high corn prices and low gasoline demand for the drop, action that’s resulted in several plant closings.

Senate Passes Debt Ceiling Bill, President to Sign

A House-passed bill extending the U.S. Treasury’s borrowing authority through mid-April was approved by the Senate, despite the fact it holds congressional paychecks hostage if both chambers don’t approve budget resolutions by April 14. However, the President is expected to sign the bill when it reaches his desk.

President Signs Superstorm Sandy Aid Bill

The Senate approved a House bill providing the U.S. Department of Agriculture with $224.4 million in disaster aid money as part of a $50-billion Superstorm Sandy aid package. Of the total USDA aid money, $218 million is slated for emergency conservation and restoration efforts, as well as flood prevention and watershed repairs.” 

USDA Announces Commodity Credit Corporation Lending Rates for February 2013

The U.S. Department of Agriculture's Commodity Credit Corporation announced interest rates for February 2013. The CCC borrowing rate-based charge for February 2013 is 0.125 percent, unchanged from 0.125 in January 2013. For 1996 and subsequent crop year commodity and marketing assistance loans, the interest rate for loans disbursed during February 2013 is 1.125 percent, unchanged from 1.125 in February 2013.

Interest rates for Farm Storage Facility Loans approved for February 2013 are as follows, 1.250 percent with seven-year loan terms, up from 1.125 in January 2013; 1.875 percent with 10-year loan terms, up from 1.625 in January 2013 and; 2.125 percent with 12-year loan terms, up from 1.875 percent in January 2013. The interest rate for Sugar Storage Facility Loans for February 2013 is 2.375 percent, up from 2.125 in January 2013.

The maximum discount rate applicable for February 2013 for the Tobacco Transition Payment Program is 5 percent, unchanged from January 2013. This is based on the 3.250 percent prime rate plus 2 percent, rounded to the nearest whole number.

Past monthly releases announcing interest rates charged by CCC on commodity and marketing assistance loans disbursed for that particular month reflect the interest rate the U.S. Treasury charged CCC for that month. This was the interest rate specified by CCC since Jan. 1, 1982, but the process of establishing the interest rate was changed by a provision of the Federal Agriculture Improvement and Reform Act of 1996 (the Act), enacted on April 4, 1996.

Section 163 of the Act requires that monthly interest rates applicable to commodity and marketing assistance loans are to be 100 basis points — or 1 percent — greater than the rate determined under the applicable interest rate formula in effect on Oct. 1, 1995. This formula resulted in a rate equivalent to the amount the U.S. Treasury charged CCC for borrowing, for the month.

Further program information is available from USDA Farm Service Agency's Financial Management Division at 202-772-6041.