Bill Huffman
Director - Government Relations

The Friday Report

May 1, 2009

Key USDA Appointments

The Senate Agriculture Committee will be meeting in the next two weeks to consider the appointment of several USDA key leadership positions by President Obama. Once these appointments are confirmed, we expect the Obama Administration will name a State Executive Director for the Farm Service Agency in California as well as a State Executive Director for the Natural Resource, Conservation and Rural Development Agency in the state.

Budget Update

Senate and House conferees reached agreement this week on a budget resolution for FY 2010. We are pleased to report that no changes were made to the 2008 Farm Bill safety net and export market development programs. The Obama Administration, as you may recall, called for cuts in agriculture expenditures, but that effort was rebuffed by the Senate and the House of Representatives. The budget resolution was subsequently approved by both houses of Congress and now becomes the overall FY 2010 fiscal plan for the next fiscal year beginning October 1, 2009.

Cuba Update

The effort to further eliminate trade restrictions facing American agriculture in its effort to be able to do more business in Cuba appears to be paying off. Lobbyists for various commodity groups, including rice, are now using President Obama’s easing of travel restrictions to Cuba as an opportunity to push for increase sales of rice, vegetables, meat and other farm goods to the island nation.

At least 15 members of the U.S. Senate have joined agriculture groups in calling for greater trade with Cuba. They include Senator Max Baucus of Montana, Chairman of the Senate Finance Committee. Senator Baucus plans to introduce legislation to make it easier for U.S. farmers and ranchers to do business with Cuba. 

Farmers’ Rice Cooperative encouraged key members of Congress we met with in February to help the U.S. rice industry open up the Cuban rice market for U.S. rice. The USA Rice Federation and other industry groups have done likewise.

Cuba imported about 176,000 metric tons of U.S. rice in 2004. In 2008, Cuba imported just 13,000 metric tons.  All of this rice was southern long grain, which is preferred by the Cuban population.

Taiwan Update

Two key members of the U.S. Rice Industry met this week with staff at the U.S. Trade Representatives office to discuss trade issues involving Taiwan and Cuba. California rice industry leader Michael Rue of Marysville and Carl Brothers from Riceland Foods were in Washington to among other things meet with key trade officials in the Obama Administration to discuss trade issues involving both Taiwan and Cuba. The U.S. rice industry is lobbying hard to get Taiwan to honor its trade commitment to the U.S. and to help open the Cuban rice market.

Port of Sacramento Update

The City of West Sacramento and the Port of Sacramento continue their efforts to gain Federal funding for deepening of the Port channel from 30 feet to 35 feet. The Deep Water Channel connects the Port to San Francisco Bay. By deepening the channel to 35 feet, Port officials say larger ships will be able to navigate the channel to Sacramento to load rice and deliver other cargo to the inland facility.

The Port is seeking a $10 million appropriation through the Energy and Water Bill with the money going to the Corps of Engineers, the Federal agency responsible for the project. City of West Sacramento and Port officials were in Washington this past week on the “Cap to Cap” tour with local area Chambers of Commerce lobbying for the funding. 

Farmers’ Rice Cooperative and more than 25 other organizations are supporting the Port’s funding request. We will be writing letters of support to key members of the House and Senate Appropriations Committee’s urging their support for this important funding.

Additionally, the City of West Sacramento is also seeking $6,725,000 in Federal funding for its FY 2010 flood protection program. The City is undertaking an effort to improve all of its levees in the community to current standards.

The Loss of a Good Friend!

Funeral services were held this morning for Robert Nickum, a native of Dixon, the owner and founder of Valley Farm Transport, the principal hauler for Farmers’ Rice Cooperative. Bob was a good friend of Farmers’ Rice and his firm provides superior service to the Cooperative and its members. He passed away on April 27th at his home in El Macero. He is survived by his wife Ann Nickum, his son David Nickum, his daughter Amy Pretti and another son Mathew Nickum.

The Board of Directors and staff of Farmers’ Rice Cooperative send their sincere condolences to the Nickum family in their time of loss.