Bill Huffman
Director - Government Relations

The Friday Report

September 18, 2009

Senator Blanche Lincoln, the newly named Chair of the Senate Agriculture Committee, speaks out on climate change legislation and other key issues. She also receives good marks from influential agriculture leaders in Washington, D.C.

Senator Lincoln Receives Favorable Comments

Former Representative Charlie Stenholm, D-Texas, a key leader in the 2002 Farm Bill and a respected governmental affairs counselor said this week that Senator Blanche Lincoln “will be up to the job.  No doubt.”  He was referring to her selection last week as Chair of the Senate Agriculture Committee.  Stenholm, a Blue Dog Democrat like Senator Lincoln worked with her on the House Agriculture Committee when she served in the House of Representatives prior to election to the Senate.

Others who expressed great satisfaction with her selection included the USA Rice Federation, the National Cotton Council and the American Farm Bureau Federation.

Mr. Stenholm said, “You are talking about someone who has grown up on the farm and has been around agriculture her whole life.” 

Senator Lincoln already has jumped into the fray over climate change legislation.  She is skeptical of the House climate change legislation and has said the Senate should focus on renewable energy instead. As Chair of the Senate Agriculture Committee, she will be in a position to put the brakes on climate change legislation or at least slow down the process to give the Senate more time to think about the ramifications of such legislation to production agriculture and to the American economy.

In a speech this week to the National Cattlemen’s Beef Association, Senator Lincoln said she opposes the climate bill passed by the House in June. She called it a “deeply-flawed bill and I’m not going to support it.”

We should be thankful that she is now in a position to influence the outcome, whatever that may be, of climate control legislation.

In one of her first appointments, she has chosen Robert Holifield as Staff Director for the Senate Agriculture Committee. Holifield, a native of Blytheville, Arkansas, most recently served as Deputy Chief of Staff for the Commodity Futures Trading Commission. He is well known to the U.S. rice industry, having worked in Senator Lincoln’s office from 2000-2007.

EPA Issues New Rule for Green-House Gases from Automobiles

Federal EPA flexed its muscles this week issuing its plan to reduce greenhouse-gas emission from cars. EPA Administrator Lisa Jackson told reporters these rules pave the way for regulating emissions from other sources very soon – within the next year. 

The new automobile emissions rule has its roots in a 2007 Supreme Court decision that the Clean Air Act authorizes EPA to regulate greenhouse-gas emissions from autos if EPA determines they can be anticipated to endanger public health or welfare. Earlier this year, EPA made such a finding.

The issuance of the rule for autos, which is being digested by every industry from the automobile industry to agriculture, sets the stage for additional rules that virtually could affect all segments of our economy. A number of industry groups say they are eager to test EPA’s authority and they can be expected to do so as EPA proceeds to define its regulatory authority. Litigation is expected.

The key is if EPA can make a finding that emissions, from let’s say a cattle feedlot, a hog farm or rice drier, “endangers public health or welfare”.  EPA believes it has broad authority under “public health and welfare” definitions to allow them to regulate emissions across the board. 

It’s going to be an interesting battle!

Taiwan Purchases Southern Medium Grain

Taiwan purchased 4,000 metric tons of southern medium grain rice, but rejected all bids for California medium grain rice in their tender this week.  Taiwan said prices for California rice were too high. They will re-tender September 29th for 18,700 metric tons of U.S. medium grain.

Korea’s tender for 6,000 metric tons of U.S. medium grain will be held September 22nd.

2010 Rice Leadership Development Program

We want to remind California rice producers that the deadline is October 3rd for applications for the 2010 Rice Leadership Development Program. This program provides a comprehensive understanding of the U.S. rice industry, with an emphasis on personal development and communications skills. During a two-year period, class members attend four one-week sessions designed to strengthen leadership skills through studies of all aspect of the rice industry.

This valuable program is managed by the USA Rice Federation and is sponsored by John Deere Company, Syngenta and Rice Tec, Inc. through a grant to the Rice Foundation.

More details about the program and an application form can be obtained on the USA Rice Federation’s website, USA Rice.Com.  The application form can be filled out and submitted on-line for any California rice producer 25-45 in age who may be interested in applying.  FRC members who may have questions about the program can contact Rob Paschoal, Vice President – Field Service, who is a graduate of the program.