Food Safety Legislation
Senator Dean Florez (D-Shafter) has authored a bill (SB 173) that has already moved through the Senate Food and Agriculture Committee that would require microbial testing of commodities at the farm level, and effectively require Hazard Analysis Critical Control Point (HACCP) plans for growers and processors. A similar bill (AB 1372) was introduced in the assembly by Mike Feuer (D-West Hollywood) that requires food processing establishments to “adopt and implement a [HACCP] plan.” Similar to Florez’s bill, AB 1372 would require the State Department of Public Health (DPH) to establish minimum standards and review the adopted HACCP plans for compliance. The bills both have mandatory reporting language, in the event a positive find comes back, the processor has to notify DPH within 1 hour for the Florez bill – within 24 hours for the Feuer bill.
The Ag Council has been actively engaged on both bills and has expressed concerns to both staff and legislators regarding the legislation as it is currently written. Ag Council staff members have been working with closely industry stakeholders to consider the impacts that these two proposed bills will have on growers and processors. Input from Ag Council members is also being solicited in anticipation of upcoming hearings.
More Budget Problems
The Legislative Analyst Office (LAO) issued a report on Thursday which explains the severity of California’s cash flow shortage. While the spotlight has been on May 19 Special Election to address the $8 – 16 billion budget deficit, the report focuses on state’s ability to pay its bills. According to the LAO, “The General Fund’s ‘cash cushion’—the monies available to pay state bills at any given time—currently is projected to end 2008–09 at a much lower level than normal. Without additional legislative measures to address the state’s fiscal difficulties or unprecedented amounts of borrowing from the short–term credit markets, the state will not be able to pay many of its bills on time for much of its 2009 - 10 fiscal year. Deterioration of the state’s economic and revenue picture (such as the $8 billion revenue
shortfall we forecasted in March) or failure of measures in the May 19 special election would increase the state’s cash flow pressures substantially—potentially increasing the short–term borrowing requirement to well over $20 billion. California is likely to have difficulty borrowing anywhere close to the needed amounts from the short–term bond markets based on the state government’s own credit.”
Although the state commonly engages in short-term borrowing to cover short term cash flow problems, California’s borrowing needs through the remaining 2009-10 budget year are estimated at $17 billion (this assumes the May ballot measures pass.) In order for the state to meet its obligations, the LAO is recommending cash flow borrowing be reduced below $10 billion. Therefore, the legislature must approve billions of dollars in additional program cuts and/or revenue increases, or scheduled payments to schools, local governments, service providers, and others must be deferred or delayed. Needless to say, there are no good options.
Budget Propositions
According to the latest polling conducted by the Public Policy Institute of California (PPIC) all five of the budget related ballot measures are failing:
- 1A, which attempts to stabilize the state budget (35% yes, 52% no)
- 1B, which establishes an education payment funding plan (40% yes, 47% no)
- 1C, which allows borrowing from the state lottery (32% yes, 58% no)
- 1D, which provides flexibility in children’s services funding (43% yes, 45% no)
- 1E, which would temporarily reallocate mental health funding (41% yes, 48% no)
The PPIC says that the level of support for each of these has fallen since March.
Grant Funding Opportunities
Three grant programs of importance to California agriculture were recently announced:
Air Quality Assistance
The USDA is providing $10.5 million to California farmers and ranchers interested in reducing air quality emissions from off-road mobile or stationary agricultural sources. The funding is being administered by the USDA’s National Resources Conservation Service (NRCS) and is a new feature of the Environmental Quality Incentives Program (EQIP). Applications will be accepted until June 26, 2009 for funds made available under a new air quality provision of the 2008 federal Farm Bill.
Funded practices include the NRCS' combustions system air emissions management practice to improve high polluting, fully functional engines with newer, reduced-emission technologies that meet or exceed current emission standards. Stationary, portable and heavy-duty off-road mobile systems will be included. Other covered air quality practices will include conservation tillage, dust control on farm roads, precision pest control, and manure injection. Additional information can be obtained at http://www.ca.nrcs.usda.gov.
Value-Added
The program’s goal is to help producer-owned entities market value-added products in order to increase total returns to producers. The proposed projects must be for either planning projects (e.g., feasibility studies, market studies, business plans) or working capital projects (e.g., operating payroll, advertising, inventory, market introduction costs). A total of $18.0 million will be made available in 2009 compared to $18.4 million last year. The maximum award for working capital projects is $300,000; the maximum for planning grants is $100,000. Additional information can be obtained at http://www.rurdev.usda.gov/rbs/coops/vadg.htm.
Emerging Markets
The USDA Commodity Credit Corporation announced the 2010 Emerging Markets Program (EMP) on April 29. Applications are due May 29, 2009. The EMP assists in developing, maintaining, or expanding exports of U.S. agricultural commodities and products by funding technical assistance activities. Projects are typically funded for $500,000 or less. A match is not required, but successful applications usually include a match of 35-75 percent. Trade associations, agricultural cooperatives, state regional trade groups, for-profit business, and consulting organizations are eligible. Additional information can be obtained at http://www.fas.usda.gov.
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