Bill Huffman
Director - Government Relations

January 30, 2009

The House of Representatives passed its version of the Obama stimulus package this week, now it is up to the Senate to act.  The President has met with and will continue to meet with Senate Republicans urging their support for his stimulus package. We can expect there will be major Senate modifications to the House passed version of the stimulus package, especially as it relates to perceived “pork” type expenditures added by House Democrats. The Senate is expected to take up the stimulus package Monday.

USDA News

Newly confirmed Agriculture Secretary Tom Vilsack is now on board at USDA.  One of his first actions was to reverse two decisions of the Bush Administration from the final days of that administration. Secretary Vilsack withdrew a Bush plan to use $3.2 million from a fruit and vegetable block grant program to enforce a mandatory country-of-origin labeling program for agricultural products including meat and seafood.  Secretary Vilsack also expanded the comment period for an additional 60-days for the newly proposed farm subsidy payment limit rules having to do with “actively engaged” and the “adjusted gross income” test.  Vilsack said the additional time will give the Obama Administration time to study the proposed new rules to develop a system that will eliminate payments going to people that aren’t eligible for such payments.  Mr. Vilsack said “this does not mean that we plan to modify the rules for the 2009 crop year, especially since sign-up has begun in the respective farm programs”.

Reaction to Vilsack’s announcement was mixed with some farm groups expressing concern that the Obama Administration might propose major changes in the proposed new rules. Senators Charles Grassley, R-Iowa and Byron Dorgan, D-N.D. were pleased about the new USDA review of the draft rules.

Jim Wiesemeyer, veteran Washington journalist and writer for AgWeb.Com said in his column this week, “We will see how much of an activist Vilsack will be when he has to confront Southern lawmakers and better yet, cotton and rice producers about this issue.”

Secretary Vilsack’s Priorities

In a teleconference with agriculture and other reporters this week, Secretary Vilsack laid out his priorities as Secretary of Agriculture.  Here are some of his thoughts:

• Programs to combat childhood obesity and enhancing health and nutrition.
• Advancing research and development and pursuing opportunities to support the development of biofuels, wind power and other renewable energy sources.
• Making progress on major environmental challenges, including climate change.
• Supporting the profitability of farmers and ranchers by providing a safety net that works for all of agriculture, including independent producers and local and organic agriculture, and enforcing the Packers and Stockyards Act.
• Quickly implementing the 2008 Farm Bill, modernizing the food safety system; and investing in programs that alleviate hunger and suffering overseas and support long-term agriculture development.
• Restoring the mission of the Forest Service as a protector of clear air, clean water, and wildlife habitat; a provider of recreation opportunities; a key player in reducing greenhouse gas emissions and carbon sequestration.
• Moving quickly on closing the final chapter of the Department’s struggle with civil rights and modernizing USDA’s computer systems.

Vilsack, who was formerly Governor of Iowa, brings a much different perspective to the U.S. Department of Agriculture than we’ve seen in recent years.

The next few years may be challenging times for agriculture as our country moves forward under the new leadership in the White House and at the Department of Agriculture.