Monday, May 5, 2008

CDFA Budget

Although “real” budget negotiations have not yet commenced, the legislative budget committees are busy establishing a framework for the 2008-2009 Budget bill. On Monday the Senate sub-committee that oversees the Department of Food & Ag’s budget addressed several important issues that reflect a small but encouraging level of support for pest protection and eradication programs:

Private Vehicle Inspections at Border Protection Stations:
The committee discussed the importance of funding border station pest inspections. Although, there seems to be consensus for strengthening the system by providing 13 new positions along with 17 new temporary positions at a cost of $2.2 million, the desire is to provide the funds from some other source other than the General Fund. One example might be to increase DMV registration and use the funds for this purpose. After a brief discussion, no action was taken.

Light Brown Apple Moth:
Although there were a number of questions and concerns relative to the current LBAM eradication project, the committee did approve General Fund support for 18 new positions for the eradication program.

Agricultural Commissions:
Recent negative press over administrative expenditures and political activities associated with state agricultural commodity commissions stimulated committee discussion. Since commissions are entirely funded by industry, they aren’t subject to the state budget process. However, as quasi-public agencies, they are subject to state audit and review. Of specific interest was the California Tomato Commission which is under heavy scrutiny for fiscal mismanagement. Although no action was taken, the legislators are definitely honing in on the activities of state commodity commissions, which heretofore have been of little or no interest to lawmakers.

“Green Acres Blue Skies” Air Quality Conference

The UC Davis Agricultural Air Quality Research Center will be holding an Agriculture & Air Quality Conference June 2-4, 2008. The purpose of this conference is to bring together key stakeholders working towards creating a cleaner and more sustainable agricultural industry in California. The program includes representatives from agriculture, researchers, policy-makers and legal experts, regulators, environmental advocates, and providers of green technology.

The conference has been structured around 3 broad areas of agriculture – Dairy (Monday), Row & Field Crops (Tuesday), and Orchards & Vineyards (Wednesday). Each day will begin with a continental breakfast followed by a keynote presentation and an overview of the topical area. The 1st session will address sources of air pollution and areas of concern. Following the lunch break, the 2nd session will examine recent research into health and environmental effects and new regulatory initiatives. The final session will showcase research and new ‘best practices’ efforts. Each day will end with a Reception to allow for networking opportunities. For more information contact: http://www.cevs.ucdavis.edu/Cofred/Public/Aca/ConfHome.cfm?confid=365

Renewable Fuels

The Ag Council joined with a number of other ag groups (livestock, dairy and poultry) in a letter to Governor Schwarzenegger urging him to support national efforts to waive 50 percent of the federal renewable fuel standard (RFS) mandate from corn and grain-based ethanol. Although the signatories support the development of renewable fuels, they want it done in a manner that avoids negative impacts on the price or supply of grain products such as corn. The artificial demand set by the current RFS for corn ethanol has increased the price of corn from roughly $2.00 a bushel in 2004 to roughly $6.00 a bushel today, thus significantly increasing the cost of feed for livestock. California’s livestock industry relies heavily on an abundant supply of corn to produce nutritional feed for livestock. Since California’s corn production is unable to meet the 301 million-bushel supply that is needed annually to produce beef cattle, dairy cattle, sheep, swine and poultry, we import nearly 100 percent of corn used to produce feed rations. As a result California livestock and poultry producers face severe economic hardships due to the rising price of corn. Therefore, we are urging the Governor to convey his support for taking immediate action to waive 50 percent of the RFS, as allowed under the Energy and Security Act of 2007. This will help to avoid future cost increases for corn and allow the market to naturally dictate the price of corn without the artificial demand set by the RFS.