Bill Huffman
Director - Governmental Affairs

July 3, 2008

Congress is on their July 4th holiday. They will return to session next week.

California Rice Acreage

The National Agriculture Statistics Service (NASS) released its Field Crop Acreage Report on Monday. For California, NASS is forecasting 534,000 acres of rice, the same acreage number as they reported a year ago. Long grain acreage is estimated to be 9,000 acres, medium grain is forecast at 460,000 acres and short grain is estimated to be 65,000 acres. Based on field reports, we believe the short grain acreage may be slightly higher than actual plantings.

Australian Water Situation

We received a report this week that this is the worst water allocation year for the Murray and Murrumbidgee Valleys in Australia since their major storage dams were built on local rivers. The report indicates that for the first time, the irrigation season has started with what are called “high security water users” sitting on zero allocations. There is, however, enough water to supply towns for the upcoming year, as well as a 50 percent allocation for stock and domestic water. The Aussies continue to pray for rain!

Pressure Builds to Reduce Ethanol Mandate

A group of 20 House Republicans are calling on the Bush Administration and Federal EPA to cut the amount of corn-based ethanol mandated in the 2009 renewable fuel standard. House Agriculture Committee ranking member Bob Goodlatte, R-Va, headed the group seeking the reduction in the ethanol mandate.

Under current energy law, the corn-based ethanol mandate calls for 9.0 billion gallons to be blended into the nation’s gasoline supplies. Next year, that mandate increases to 10.5 billion gallons plus the mandate calls for 500,000 gallons of biodiesel and 600,000 gallows of so-called “advanced biofuels”, such as biogas produced through anaerobic processes.

In their letter to EPA Administrator Stephen Johnson, the House Republicans said, “The recent flooding in the Midwest has created devastating crop losses and these record corn prices will continue to climb. There are many factors that have increased the price of corn, but the only factor that we can immediately control is the amount of the corn supply that must be dedicated to meet the ethanol mandate”.

With rising fuel prices, there will continue to be many people call for reduction or elimination of the ethanol mandate. 

Have a Safe 4th of July!

We hope you and your family have a safe July 4th holiday.  The FRC office will be closed on Friday, July 4th so that our employees can enjoy the holiday too!