WASHINGTON – The National Cattlemen’s Beef Association (NCBA) submitted comments today in support of a proposed rule by the U.S. Department of Agriculture (USDA) Food Safety and Inspection Service (FSIS)  to require nutrition labeling of meat products.

“As an industry, it’s our responsibility to provide accurate information about the nutritional value of our products—because consumers have a right to make educated decisions about the food they purchase for their families,” said Steve Foglesong, NCBA president. “Cattlemen and the beef industry have a great story to tell, especially when it comes to the nutritional value of our product, and we’re fully committed to transparency as we continue to meet growing consumer demand for high-quality beef.”

If finalized, the rule would amend the federal meat and poultry products inspection regulations to require nutrition labeling of major cuts of single-ingredient, raw meat and poultry products. FSIS specifically requested comments on “lean percentage” labeling requirements and point-of-purchase vs. product labels.

NCBA supports the mandatory inclusion of both “lean percentage” and “fat percentage” on all ground meat labels. The Beef Checkoff has funded consumer research that indicates both designations are important to consumers as they decide which ground beef products to purchase. NCBA also supports requiring nutrition information to be displayed on ground beef packages, rather than at the point-of-purchase. Fat content is often hard to visualize in ground products which is why beef producers believe it’s most beneficial to have the nutrient content easily accessible on the Nutrition Facts Panel on the package.

NCBA continues to encourage FSIS to work with all stakeholders as this rule moves forward in being finalized and implemented in the marketplace. Cattlemen have long supported the inclusion of beef’s complete nutrient profile on beef products, as the information is helpful for consumers to make educated purchasing decisions. NCBA’s comments continue to encourage FSIS to include nutrient information on the label that is helpful to consumers. The comments can be found at: Nutrition Labeling Comments - March 2010

Calorie for calorie, beef is one of the most naturally nutrient-rich foods there is. A three-ounce serving of lean beef is considered an excellent source of: protein, zinc, vitamin B, selenium and phosphorus; and a good source of niacin, vitamin B, iron, choline and riboflavin. Twenty-nine cuts of beef meet government guidelines for lean, with less than 10 grams of total fat, 4.5 grams or less of saturated fat, and less than 95 milligrams of cholesterol per 3-ounce serving. Research also suggests that high-quality protein plays an increasingly important role in weight management, muscle development and maintenance, and disease prevention.

“As producers, processors and marketers of the nation’s beef supply, we’re committed to providing safe, wholesome, nutritious beef products, and to communicating accurate information about beef’s nutritional qualities and the role of beef in a healthful diet,” said Foglesong.

WASHINGTON, D.C., March 19, 2010 – The American Farm Bureau Federation is urging members of the House to “to stand with our nation’s agriculture producers” and vote “no” on the massive bill that will dramatically transform the nation’s health care system.

In a letter sent Thursday to all members of the House, AFBF President Bob Stallman said the legislation’s “negatives of new taxes, mandates, growth in government programs and overall cost far outweigh its benefits.” Stallman said Farm Bureau strongly favors health care reform, but it must be “workable, sustainable and balanced against the overall cost of doing business.”

Stallman told lawmakers that America’s agricultural producers are trapped in a broken insurance marketplace with few options and high insurance costs. “Farmers and ranchers need market-based reform that lowers costs and increases choices for private health insurance,” Stallman wrote.

“Health insurance costs are an ongoing and significant expense for farmers and ranchers who buy coverage for themselves and their families and the agricultural workers they employ,” Stallman emphasized. “The proposed framework for exchanges may help address costs and is similar in concept to association health plans which we have supported for years. Tax incentives in the proposal designed to help individuals and small employersafford health insurance costs are inadequate and temporary and their limited application will not adequately compensate employers for higher health care expenses.”

Pointing out that health care is primarily the responsibility of individuals, Stallman said Farm Bureau is opposed to government mandates that require individuals to purchase health insurance and for employers to provide it for their workers.

“Most farmers and ranchers are self-employed and buy health insurance for themselves and their workers through individual and small group markets,” Stallman said. “Passing a coverage mandate accompanied by a threat of penalty for noncompliance will only make the situation worse for people unable to afford coverage.”

Stallman told House members that Farm Bureau supports tort reform as a means to reduce health care costs. “Missing from health insurance reform legislation is meaningful liability reform that would inject fairness into the medical malpractice legal system and reduce unnecessary litigation and legal costs,” Stallman wrote.

The House is expected to vote on H.R. 4872, the Health Care and Education Affordability Reconciliation Act of 2010, on Sunday.

In February 2010, the Center for Biological Diversity (”CBD”) filed a lawsuit in the U.S. District Court for the District of Oregon alleging that the U.S. Fish and Wildlife Service (the “Service”) violated the Endangered Species Act (”ESA”) by failing to take action on a number of listing petitions. The lawsuit implicates a wide range of Pacific Northwest species including the Dusky Tree Vole, the Lake Sammamish Kokanee, the Black-Footed Albatross, and 32 mollusk species. An ESA listing of any of these species could have significant implications for activities occurring in or near areas inhabited by the species.

Under the ESA, a species may be listed as “endangered” if it “is in danger of extinction throughout all or a significant portion of its range” or “threatened” if it is “likely to become an endangered species within the foreseeable future.” The process of listing a species can be initiated by the Service or by a citizen petition. Once a species has been petitioned for listing under the ESA, the Service, “to the maximum extent practicable,” must make a determination within 90 days as to whether the petition “presents substantial scientific or commercial information indicating that the petitioned action may be warranted.” If the Service determines that a listing may be warranted, it must issue a finding within 12 months that: (i) a listing is warranted (in which case a proposed listing rule is issued); (ii) listing is not warranted; or (iii) a listing is “warranted but precluded” by higher priority actions.

All of the species at issue in CBD’s lawsuit have been petitioned for listing under the ESA. The Service issued 90-day findings that a listing may be warranted for the Dusky Tree Vole, the Lake Sammamish Kokanee, and the Black-Footed Albatross, but it has not yet issued a 12-month finding for any of those species. The Service has not yet issued a 90-day finding for the 32 Pacific Northwest mollusk species that have been petitioned for listing. CBD’s lawsuit alleges that the Service’s failure to issue 12-month and 90-day findings, respectively, for these species violates the ESA. CBD asks the Court to issue an injunction requiring the Service to make these findings by a specific date.

CBD’s lawsuit has potentially significant implications for activities occurring in or near areas inhabited by these species. The Dusky Tree Vole inhabits a wide range of forested areas throughout the Cascade Mountains in western Oregon and northwest California. The Lake Sammamish Kokanee, as its name suggests, occurs in the streams and lakes of the Lake Washington-Sammamish watershed in Washington. The Black-Footed Albatross is a large seabird that occupies areas of the Pacific Ocean and nests in Hawaii and Japan. Finally, the 32 mollusk species at issue in CBS’s lawsuit include 15 spring snails, two river snails, 13 land snails, and two slugs that occur in a variety of areas throughout the Pacific Northwest. CBD’s complaint alleges that these mollusk species are threatened by “logging, grazing, wildlife, controlled burning, road construction and maintenance, pesticide application, agriculture, recreation, urbanization, mining, the spread of invasive species, global climate change, water pollution, dams, diversions, and stream destruction and development.”

Stoel Rives has a broad depth of experience covering all aspects of the ESA. Our attorneys advise clients on various aspects of the ESA listing process as well as represent a number of clients in litigation involving significant ESA listing petitions. If you have any questions about the issues raised in this alert, please contact:

Greg Corbin at (503) 294-9632 or gdcorbin@stoel.com
Barbara Craig at (503) 294-9166 or bdcraig@stoel.com
David Filippi at (503) 294-9529 or defilippi@stoel.com
Beth Ginsberg at (206) 386-7581 or bsginsberg@stoel.com
Jeff Leppo at (206) 386-7641 or jwleppo@stoel.com
Jason Morgan at (206) 386-7641 or jtmorgan@stoel.com
Cherise Oram at (206) 386-7622 or cmoram@stoel.com
Ryan Steen at (206) 386-7610 or rpsteen@stoel.com

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(Salem) — Governor Ted Kulongoski issued Executive Order No. 10-03, determining a state of drought emergency in Klamath County as well as all bordering counties which includes Jackson, Douglas, Lane, Deschutes and Lake counties. This declaration provides the state flexible water management strategies to assist irrigators, municipalities and other water users, not generally available under Oregon law.

Governor Kulongoski also wrote to U.S. Secretary of Agriculture Tom Vilsack to request a federal natural resource disaster determination. Such a determination would provide eligible farmers and ranchers with access to two other federal financial assistance programs, in addition to three federal programs that are already available.

“The water situation presents a real threat of economic loss to those who live and work in the Klamath Basin – and the state is going to do everything in its power to help,” said Governor Kulongoski. “By issuing a state declaration and requesting a federal disaster determination, we can begin to work on emergency water strategies now while the Federal government begins the required economic assessment of the impacts.”

The Governor issued the order following a community meeting he held in the Klamath Basin last week on the water situation and after receiving a request for a drought declaration from the Klamath County Board of Commissioners. It comes as the state waits for the Federal government to determine how much surface water will be available throughout the irrigation season without harming federally-protected endangered species. The determination is expected to be made soon.

Most notably, the Executive Order means that Klamath Basin irrigators and other water users can begin to work with the Water Resources Department to apply for temporary emergency permits that are valid during the length of the declared drought. In general, these permits allow water users to use supplemental ground water sources in lieu of their surface water rights and for emergency transfers of water from one parcel of land to another.

The Water Resources Department also has dispatched additional staff resources to the Klamath Watermaster’s Office. Beginning today and through this week, water rights specialist Joel Plahn will be available to help water users apply for emergency drought permits.  Mr. Plahn will be physically located at the Watermaster’s Office (5170 Summers Lane in Klamath Falls) and also available by phone (541-883-4182). Staff will be available by appointment throughout the coming weeks and months, and reachable at the phone number above.

The Oregon Department of Agriculture will also continue to provide technical assistance and advice to farmers and ranchers. Additionally, ODA will play the important role of facilitating interaction with the U.S. Department of Agriculture regarding the federal natural resource disaster determination.

The drought declaration also puts the Oregon Military Department on notice to assist as needed. The role of the agency will be critical should water sources for home and personal use become constrained.

For the text of the Executive Order, click here.

For a copy of the letter to U.S. Secretary Vilsack, click here.

For more information, visit the state’s Klamath Basin 2010 Web site set up specifically to provide stakeholders with up-to-date information on this year’s water situation: http://www.oregon.gov/OWRD/Klamath_Basin_2010.shtml

Klamath Basin water situation overview:

With an historic low level of rain and snowpack in 2010, the Klamath Basin region is facing a challenging water year. Absent significant precipitation, it is likely the region will continue to face a major drought, potentially making this year the most significant water shortage situation experienced in the basin since 2001.

As of March 15, snowpack is 77 percent of average and year-to-date precipitation is 1.90” (3.55’’ is normal).

The current level of Upper Klamath Lake, a key surface water source, is among the lowest on record and federal requirements for the protection of endangered species require minimum lake levels before water deliveries to irrigators can begin.

Federal agencies are considering flexibility under lake level requirements that could allow some water for irrigators while still protecting endangered species.

Chief Says Wyden Bill Wrong-Headed: Former US Forest Service Chief Jack Ward Thomas wrote a guest opinion in the Oregonian newspaper, blasting US Senator Ron Wyden’s proposed bill on Eastern Oregon forests.  Thomas accurately attacked the Senator’s bill, saying, “The approach is flawed, inappropriate, less than fully-informed and has implications for management of the entire national forest system… Clearly, the governance of national forests is dysfunctional due to numerous, overlapping, contradictory laws continuously and variously interpreted by the courts. That’s the problem. Would it not be better to recognize and comprehensibly address that dysfunction?”

Ag Workers Seek Work Elsewhere: Oregon’s agriculture industry saw only a 2.2% year-over-year employment drop in the second quarter of 2009.  While the decline isn’t as severe as in the logging industry, ag workers are finding it increasingly difficult to find work in their specialty.  Ag employment experts suggest that large numbers of unemployed ag workers will retrain, relocate and ultimately leave the sector for jobs in other industries—thereby being unavailable for agriculture job openings when ag markets improve.  We suspect that this sort of exodus is occurring in the now-unemployed segment of the forest sector workforce.

Lawsuit Blocks CDF and Cal Logging: Environmentalist lawsuits were filed in seven California counties challenging California Dept. of Forestry approval of timber harvest plans on 5,000 acres of Sierra Pacific private timberland.  The suit falsely claims that CDF failed to conduct proper environmental review for many issues, such as climate change, carbon and water.  SP and the California Forestry Association dismiss the lawsuit as yet another attempt by environmental groups to cripple the logging industry, noting that 40% of the state’s sawmills have closed since 2000.

Industry Supports Haiti’s Wood Reconstruction: The American Wood Council, a trade group comprised of America’s leading wood forest products companies, pledged to help Haiti rebuild safer, more earthquake-resistant buildings after its recent earthquake.  Much of the severe devastation is from collapsed, unreinforced concrete-masonry structures, which could have been prevented if they’d been built from wood building that can withstand a 7.5 magnitude earthquake.  In addition to its structural capability, wood’s affordability, renewability, ease of handling, low environmental impact, provides the optimal combination of green building and stability for earthquake-prone areas.

National Forest Road Spending Up: The budget approved by Congress for US Forest Service road maintenance and closure will rise slightly for fiscal year 2010, which began last Oct. 2009.  National forests in Oregon and WA will get $19.1 million for road work, compared with $9.5 million last year.  The agency has simply failed to maintain its road network for the past 20 years, after the 1990 shutdown of its normal forest management program—when road maintenance was largely financed by timber sales.  The nationwide USFS road repair backlog is estimated at billions of dollars.

Two Appointed to Forestry Board: During the February Special Legislative Session, the Oregon Senate confirmed two new individuals to the 7-member Oregon Board of Forestry.  The Senate confirmed Governor Kulongoski’s nominations—forestland owner Gary Springer and conservation group director Sybil Ackerman.  They replace two term-limited board members, Bill Hutchison, a Portland attorney, and Larry Giustina, principle in Eugene’s Giustina Resources timberland firm.  Board Chair John Blackwell says Springer and Ackerman bring competent leadership to the Board of Forestry.  An excellent appointment, Springer is a forester with the family-owned Starker Forests of Corvallis, and also owns and manages his 80-acre family tree farm near Harlan.  Until the 1990s, he was a partner in Springer Logging Co.  Active in Oregon environmental groups since the 1990s, Ackerman however, is currently executive director of the Portland-based Lazar Foundation, which funds environmental projects throughout the Northwest.  More information on the Board of Forestry can be found at: www.oregon.gov/odf/board

New ‘Gilchrist State Forest’: After four years of legislative arrangements, the Klamath County Commission and Oregon’s Board of Forestry approved the purchase of 43,235 acres of lodgepole & ponderosa pine forestland, located 45 miles south of Bend and east of US Hwy 97.  The purchase is funded by a 2009 Legislature-passed law, which authorized $15 million in lottery-backed bonds.  The Forestry Board targeted the purchase to avoid its division into small real estate tracts.  An adjacent 26,453 acres is held by the non-profit ‘Conservation Trust,’ targeted for purchase within a decade using additional lottery funds.

Elliott Plan Revision Delayed: Oregon’s State Land Board and Board of Forestry both voted to delay Elliott State Forest decisions until 2011:1) an increase harvest; and 2) to drop its 10-year long effort to complete a federal Habitat Conservation Plan (HCP).  If OR Dept. of Forestry cannot satisfy the US Fish & Wildlife Service and NOAA Fisheries by the end of 2011, ODF will drop the HCP, and apply the conventional “take avoidance” species protections, similar to those used by private forestland owners.  ODF then intends to have both Boards adopt and implement a much-needed Elliott forest plan revisions during 2012, which would increase harvest to at least 40 million bdft/year.

Business, Income Tax Hikes Approved by Voters: By a 53% to 46% margin, Oregonians narrowly approved Measures 66 and 67, increasing income taxes for high earners, corporations and businesses.  But common-sense opponents say the results simply reflect the nationally bankrolled “yes” campaign, which outspent the tax opponents by over 2 to 1 margin.  Voters still want state legislators in Salem to tighten their belts in the ongoing recession, and to find solutions that reduce state government spending without even more future new taxes.

2010 Election Becomes More Important: Although business-minded Oregonians did not win January’s ballot election to turn down Democrat’s wrong-headed permanent income tax increases, public opinion is trending against Democrat policies.  Democrats still blindly push their broken policies of taxing our way out of recession, and out-of-control government spending.  Now, a majority of Oregonians are seeing that government needs huge changes in Salem and Washington, DC to return responsible fiscal policies.  January’s ballot defeat simply provides another reason for common-sense Oregonians to rally toward the 2010 general election—because public opinion is ripening for Republican gains in both Legislature and Congress.

Capitol Rally Held Feb. 15th: The campaign for 2010 has only just begun!  Hundreds of opponents to higher taxes and out-of-control government spending held a rally on February 15 at the Oregon State Capitol Building.  Angry folks from all corners of Oregon demanded fiscal responsibility from legislators, and spread the message that November’s election will elect new legislators and governor, who will not be “tax & spenders.”  New blood at the capitol can accomplish more than what defeat of 66 & 67 would have done.  Protest signs read: “We Have Only Begun to Fight” “Your Job Is on the Line Too” “Taxes Too High”

Walden Rises in Congress: US Representative Greg Walden (R-OR) in February was appointed Chairman of the Republican Leadership, by House Minority Leader John Boehner (R-OH).  Walden has been a proven leader and a champion for business and smaller government for six terms.  As chair, Walden participates in GOP leadership strategy, and continues to serve as House minority deputy whip and deputy chair of the National Republican Congressional Committee.

Forest Landowners Honored for Restoring Habitat: Three private-sector land managers received awards from the Oregon Fish & Wildlife Commission and OR Board of Forestry for their forest stewardship work to improve fish & wildlife resources—under the voluntary Oregon Plan for Salmon & Watersheds.  Bud Henderson, Hampton Resources, Astoria/Knappa, was recognized for habitat improvements and innovative forestry practices that benefit fish & wildlife on the Hampton Tree Farm.  Tom Hoesly, Menasha Forest Products, and Joel Nelson, Plum Creek, North Bend/Coos Bay, received recognition for their partnership with Coquille Watershed Assoc, ODF&W and ODF to improve habitat in 20 miles of streams in the North Fork Coquille watershed.

Summer Forecast Dry: Oregon Dept. of Forestry’s meteorologist in February looked ahead to the summer’s fire season, and forecasted the growing potential for hot and dry forest fuels over the summer.  Although too early to be certain, indicators for a possible severe fire season are beginning to catalyze.  Below normal snowpack and warmer spring temperatures could lead to early snowmelt; plus, long-range forecasts show a likelihood of below average rainfall June–August.

NAWG joined a coalition of agricultural organizations Monday in filing a joint friend-of-the-court brief to the Supreme Court in support of the petitioners in Monsanto Co. v. Geertson Seed Farms. The case will be the first on genetically modified crops that the Court has heard and will examine if a lower court acted hastily and incorrectly by banning the cultivation of biotech alfalfa despite extensive scientific evidence documenting the safety of the crop.

In their brief, the groups urge that the lower courts’ decision to approve an injunction without adequately hearing the key evidence must be reversed “to protect the farmers who choose to grow genetically-engineered crops, as well as the public benefits that agricultural biotechnology brings to producers and consumers around the world.”

In the lower court case, environmental groups and individual organic alfalfa farmers sued USDA, claiming the Department’s decision to grant deregulated status to glyphosate-tolerant, or Roundup Ready, alfalfa violated the National Environmental Policy Act.

The courts in the Ninth Circuit determined that USDA should have conducted an environmental impact statement (EIS) before it decided to deregulate, and the court ultimately enjoined almost all planting and sale of Roundup Ready alfalfa pending the issuance of the EIS.

According to the ag groups’ brief, the lower court’s injunction against biotech alfalfa, was made without the court conducting a thorough review of evidence that precluded a finding of irreparable harm. In 2005, USDA’s Animal and Plant Health Inspection Service (APHIS) concluded that there is no significant impact on the human environment due to granting non-regulated status to Roundup Ready alfalfa. Following the lower court’s ruling, APHIS completed a 1,400-page document as its draft EIS, and again has recommended that Roundup Ready alfalfa be deregulated and that farmers be allowed to grow it.

The brief also explains that the lower courts failed to consider the public benefits of agricultural biotechnology, which is widely used in the U.S. in crops including corn, soybeans, cotton and sugar beets. There is no commercialized biotech wheat anywhere in the world, but NAWG believes biotechnology’s introduction into the wheat crop is necessary for the wheat industry to increase productivity, attract acres back to the crop and feed a growing global population in a sustainable way.

Of the more than 10,000 cases appealed to the Supreme Court each year, only about 1 percent is accepted for review, and the agricultural community is closely watching to see which what the Court’s action on this one. The case is scheduled for oral argument on April 27 with a decision expected by June.

The brief was submitted by NAWG, American Farm Bureau Federation, Biotechnology Industry Organization, American Seed Trade Association, American Soybean Association, National Alfalfa and Forage Alliance, National Cotton Council and National Potato Council.

NEWPORT, Ore. – Oregon’s recreational and commercial ocean salmon seasons scheduled to open from March 15 through April 30 have been closed due, in part, to a low projected run of fall Chinook to the Sacramento River. “The closure of these March and April openings was expected,” said Eric Schindler, ocean salmon project leader for the Oregon Department of Fish and Wildlife. “This typically occurs in years when fishery managers anticipate a significant constraint to fisheries.”

Chinook salmon forecasts for numerous runs that contribute to ocean salmon fisheries off Oregon are expected to allow some fisheries in 2010, Schindler said, but, to develop the best range of fishing options for the remainder of 2010, the March and April sport and commercial ocean salmon seasons were eliminated.

“Of specific concern in the decision to cut these seasons where the continued low number of fall chinook within the Sacramento River,” he said.

The decision came during the week-long Pacific Fisheries Management Council (PFMC) meeting taking place in Sacramento. The fishing season options developed at this meeting will go out for more public comment through a series of public hearings to gather testimony. The council will adopt the final set of regulations for the ocean waters off Washington, Oregon, and California when it meets April 10-15 in Portland.

The final regulations from PFMC are also submitted to the Oregon Fish and Wildlife Commission for approval. The commission may adopt more stringent regulations for the area inside of 3 miles, but otherwise must adhere to the regulations as finalized by the PFMC.

WASHINGTON, D.C. – The American Farm Bureau Federation’s successful, six-month campaign to oppose cap-and-trade climate change legislation, “Don’t CAP Our Future,” culminated Wednesday when farmer and rancher members from across the country presented key lawmakers some of the 100,000 grassroots calls-to-action gathered in opposition to the issue.

“Cap-and-trade provisions would create an energy shortage and ultimately reduce food production. That was the driving force behind the ‘Don’t CAP Our Future’ campaign,” AFBF President Bob Stallman said at an event on Capitol Hill.

Stallman, members of the AFBF Board and additional state Farm Bureau presidents and members, warmly thanked senators attending the event who have shown outstanding leadership in the battle against cap-and-trade legislation.

“On behalf of the American Farm Bureau Federation board of directors, please accept my sincere appreciation,” Stallman said. “Thank you for your support of America’s farmers and ranchers and for your recognition of both the challenges that they face and their important contributions to our nation.”

Sen. Jim Inhofe (R-Okla.) was recognized by Stallman for “leading the charge” against cap-and-trade legislation in the Senate. Stallman and other Farm Bureau leaders also expressed appreciation to other strong supporters of the effort, including Sen. Saxby Chambliss (R-Ga.), ranking member of the Senate Agriculture Committee, and Sen. John Thune (R-S.D.), Sen. Kit Bond (R-Mo.), Sen. Sam Brownback (R-Kan.), Sen. Tom Coburn (R-Okla.) and Sen. Robert Bennett (R-Utah).

A comprehensive approach was used for the campaign, including e-mails, online petitions, signed postcards from farmer and rancher members and social media outreach.

Earlier this week, AFBF and several dozen other organizations sent a letter to the full Senate urging support for S.J. Res. 26, a resolution to disapprove the Environmental Protection Agency’s proposal to regulate greenhouse gas emissions under the Clean Air Act. Senators from “both sides of the aisle” have said throughout the climate change debate that this issue should be decided by Congress rather than EPA, the letter noted. Last week, AFBF sent a letter of support for a companion House measure.

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CORVALLIS, Ore. – Recent warm weather has prompted more than spring fever. As temperatures have climbed over 50 degrees, a potentially devastating insect pest has been detected in western Oregon and Washington.

Last fall, the spotted wing drosophila, an invasive vinegar fly native to southeast Asia, first flew onto the radar of fruit growers from California to British Columbia. Damage from the fly was rapid and intense. California lost about one-third of its cherry crop; Willamette Valley growers lost up to 20 percent of their blueberries and raspberries and up to 80 percent of their late-season peaches.

Since then, researchers from Oregon State University, U.S. Department of Agriculture-Agricultural Research Service and Oregon Department of Agriculture have joined colleagues in California and Washington in a multi-state, multi-agency effort to combat the tiny fly that threatens much of the West Coast fruit industry.

In recent weeks, researchers have seen evidence of overwintered adult spotted wing drosophila in a few monitoring traps in the Willamette Valley. The team now has launched a regional management plan, and is presenting this information in workshops throughout Oregon, California and Washington.

With the appearance last fall of tiny white maggots in a handful of blueberries, OSU researchers identified the spotted wing drosophila, a pest never before documented in Oregon. Immediately, the research team scoured agricultural records from Japan to estimate the fly’s damaging potential. In field and laboratory tests, they studied the fly’s overwintering habits, its reproduction rates and its preferred fruits, and they have tested a variety of baits, traps, and controls.

“This effort involves a big network of cooperators, including scientists of many disciplines, growers of many kinds of fruit, and state, provincial and federal agencies, all working together to monitor and control this fly,” explained Vaughn Walton, an OSU horticultural entomologist who oversees a rapidly expanding compendium of information online for growers and researchers. See the Spotted Wing Drosophila Web site.

The stakes are high, and both growers and scientists are concerned. Tests have confirmed that the spotted wing drosophila will feed on a wide range of grapes, berries, cherries, peaches, pears and plums grown commercially in Oregon, California and Washington. And unlike other vinegar fly species, the spotted wing drosophila prefers ripe ready-to-harvest fruit.

The fruit industry is a multi-million dollar enterprise in Oregon. The farm gate value of Oregon wine grapes is about $68 million, according to Oregon Department of Agriculture. Berries are valued at about $100 million; Oregon pears at $80 million.

“Since the fly is new to North America, we are learning as fast as we can,” said Amy Dreves, an OSU research and extension entomologist who is helping to design an integrated pest management strategy. “We are studying all aspects of its biology and testing tools such as monitoring, trapping, sanitation, and efficient timing of effective chemicals.”

This is not a problem that can be wiped out with a barrage of chemical sprays, according to the researchers. Controls must not harm pollinating insects or other beneficial organisms that are necessary for healthy orchards and fruit fields. In addition, chemical resistance is a problem when combating any insect with up to10 generations a year, as has been reported for this fly in Japan.

Both field and lab studies have found that these flies thrive in cooler areas and are most active at temperatures of 68 degrees. Much of western Oregon’s growing season would seem to favor these flies, according to Dreves. And because Oregon has a variety of crops that ripen at different times during the season, the spotted wing drosophila could move from one crop to another as the season progresses, and populations could build up to high numbers in many crops.

The research team is developing effective traps in Oregon and California to monitor fly activity and they are testing organic bait sprays that may be effective early in the season in reducing numbers of flies before they lay eggs in the ripening fruit. Field sanitation practices may be especially critical, to reduce habitat for overwintering flies.

Last month, the research team received $225,000 in emergency funding from the Oregon Legislature to implement a broad-based monitoring and education plan. In addition, the scientists have applied for a grant from the federal government to expand their research and outreach to growers.

The research team is presenting training sessions to growers throughout the Pacific Northwest. A public session will be held on March 30, from 1 to 5 p.m., at the Airport Sheraton Hotel in Portland. Presentations and hands-on activities focus on the fly’s life cycle, field identification and monitoring, and evolving options for control. Pre-registration is not required.

For more information on upcoming workshops, see the Spotted Wing Drosophila Web site.

By: Peg Herring
Source: Amy Dreves, Vaughn Walton

WASHINGTON, D.C. – Senators Jeff Merkley and Ron Wyden requested immediate and expansive drought assistance for Klamath Basin in anticipation of emergency drought conditions this year.  In a letter sent today, the senators urged Department of Agriculture Secretary Tom Vilsack, Department of Interior Secretary Ken Salazar, and Department of Commerce Secretary Gary Locke to take swift, coordinated action to address the projected water shortfall. “The drought currently facing the Klamath Basin would deal a devastating blow to farmers, Klamath Basin Tribes, and fishermen, as well as to the salmon and other species in the Klamath River,” Merkley and Wyden wrote.  “Nothing short of an unprecedented, integrated and expansive set of responses is required.” Merkley and Wyden urged the federal agencies to review every conceivable option to address the water shortage and provide relief to farmers.  At a minimum, they suggested the agencies consider:

·         providing funds to purchase upstream water rights voluntarily offered;
·         adjusting surface water management within parameters of the law and sound science;
·         releasing emergency funds for land idling through water banks or other programs;
·         activating emergency drought wells or other means of accessing groundwater; and
·         establishing drought assistance for all farmers regardless of crop type.

The senators requested that each secretary appoint high level contacts with decision-making authority to collaborate with Senate offices and the Governor’s office in developing a plan to save the basin from this water crisis.

BELOW IS LETTER FROM SENATOR WYDEN AND MERKELY

March 8, 2010

The Honorable Tom Vilsack
The Honorable Ken Salazar
The Honorable Gary Locke

Dear Secretaries:

We are writing to you today to request your immediate and coordinated attention to address a crisis of historic magnitude emerging in the Oregon/California Klamath Basin.  Put simply, the Klamath Lake that supplies water to the farmers and the river is at its lowest level since measurements began in the 1970s. Its current level is significantly below where it was in 1992 – the worst drought year ever in the Klamath Basin.

The drought currently facing the Klamath Basin would deal a devastating blow to farmers, Klamath Basin Tribes, and fishermen, as well as to the salmon and other species in the Klamath River.  Nothing short of an unprecedented, integrated and expansive set of responses is required.

As you well know, the Klamath Basin in northern California and southern Oregon contains approximately 1,400 family farms and ranches that encompass over 200,000 acres of farmland irrigated with water from the Klamath Lake and River.  The Klamath Basin’s agricultural industry provided over $440 million in revenue to the community in 2009.  In addition, the Klamath Basin is considered a “Western Everglades” attracting nearly 80 percent of the Pacific Flyway’s waterfowl and supporting the largest over-wintering population of bald eagles in the lower 48 states. It is also one of the most productive salmon river systems in the country.

Because of significant below-normal winter precipitation, the lake is currently two feet below the minimum refill targets in the U.S. Fish and Wildlife Service’s biological opinion.  For context, we note that this level is roughly one foot below the water level at this time in 1992, the worst drought year on record.  Consequently, there is very little chance Klamath irrigators will receive needed irrigation water either on time or at all.  With spring planting season upon us, it is critical that options be examined now to allow solutions to be presented within the next several weeks.

We ask that your departments review every conceivable option to address the water shortage and provide relief to farmers.  We believe federal agencies should consider, at a minimum:

·         Providing funds to purchase upstream water rights voluntarily offered;
·         Adjusting surface water management within parameters of the law and sound science;
·         Releasing emergency funds for land idling through water banks or other programs;
·         Activating emergency drought wells or other means of accessing groundwater; and
·         Establishing drought assistance for all farmers regardless of crop type.

We believe that no single action will adequately address the projected water shortfall caused by this year’s drought.  For example, it is our understanding that drought wells cover no more than 20 percent of the irrigated farm land in the Basin.  Swift, decisive and coordinated action is needed to provide an integrated set of solutions before the planting season begins in the next several weeks. We certainly do not want to put farmers in a situation where they need to plant their crops and then subsequently let them fail in order for the farmers to be eligible for drought assistance.

Farmers, fisherman and the resources in the Basin need a comprehensive set of options and a plan from their federal partners to address this crisis quickly.  We ask you to appoint high level contacts in each agency with decision-making authority who can collaborate with our offices and the Governor in moving forward with a plan to save the Basin from this impending crisis. We are committed to assisting and providing the leadership necessary to bringing the federal, state and local resources to bear on this situation.

We urge swift, prompt and coordinated actions to address this historic drought.

Sincerely,

Senator Merkley
Senator Wyden

Senate Bill 676, passed by the 2009 Oregon Legislature, permits production and possession of industrial hemp and trade in industrial hemp commodities and products.

What is industrial hemp?
Industrial hemp includes a number of varieties of Cannabis sativa L. that are intended for agricultural and industrial purposes. These varieties are grown for their seed and fiber content, as well as byproducts such as oil and seed cake. Industrial hemp is low in the hallucinogenic compound delta-9 tetrahydrocannabinol (THC) and high in cannabidiol (CBD).

Is industrial hemp the same as marijuana?
No. Both are varieties of Cannabis sativa L., but marijuana is high in THC and low in CBD.

What is industrial hemp used for?
Industrial hemp is primarily grown as a source of fiber principally used for textiles, rope, paper, and building materials. Hemp seed is increasingly used for food, feed, and oil. Hemp seed oil is low in saturated fats and may be used in pharmaceuticals, cosmetics, inks, lubrication, household detergents, varnishes, resins, and paints. As the biofuels industry matures, industrial hemp may play a role in cellulosic ethanol production.

Can industrial hemp legally be grown in Oregon at this time?
No. Even though Senate Bill 676, passed by the 2009 Oregon Legislature and signed into law, allows for the production and sale of industrial hemp in Oregon, the state needs to wait for the federal allowance before proceeding.

Now that the Governor has signed SB 676 into law, what is the status of a state program to oversee industrial hemp production in Oregon?
The law sets up a process for the Oregon Department of Agriculture to establish rules for production of industrial hemp once the federal prohibition is lifted. If and when the federal government lifts the ban, ODA will begin working with industry representatives and interested individuals to draft rules that will implement a state program. There is no way of knowing when that might take place.

Why is it necessary to have special rules regarding the production and sale of industrial hemp?
SB 676 clearly specifies industrial hemp as an agricultural product subject to regulation by the Oregon Department of Agriculture. The specific regulations and requirements have not been established yet and that process will not begin until the federal prohibition is lifted.

What is ODA doing in the meantime while waiting for any federal status change?
ODA is developing a list of interested individuals who would like to be kept informed on new developments regarding industrial hemp production and sale in Oregon. This electronic list will be used to share administrative information via e-mail as it becomes available. Anyone interested can subscribe to the listserv at any time.

Sacramento, California – The California Association of Nurseries and Garden Centers (CANGC) and the Oregon Association of Nurseries (OAN) today filed a suit in U.S. District Court in Columbia, South Carolina, seeking to overturn a new regulation aimed squarely at blocking California and Oregon nursery growers from shipping their plants to that state.

The USDA Animal and Plant Health Inspection Service (APHIS) maintains strict regulations related to Phytophthora ramorum (sometimes referred to as Sudden Oak Death) to protect forest health, landscapes, and nurseries across the country. Nurseries in Oregon and California have an outstanding record of compliance with these rules.

However last year, the South Carolina Assembly passed legislation that limits California and Oregon growers from shipping to that state unless they comply with additional inspection, documentation and advance notice requirements which overstep the federal rules.

States are prohibited from taking such steps under the Supremacy Clause of the U.S. Constitution and the U.S. Plant Protection Act, which gives the federal government the exclusive power to protect plants sold in interstate commerce.

The suit, which names the State of South Carolina and the South Carolina Department of Agriculture, challenges that state’s regulation as unconstitutional. “It is disappointing that the South Carolina Department of Agriculture, which runs programs to promote its home-state products for sale in other states as well as at home, chose to follow this path,” said Robert Dolezal, CANGC’s executive vice president.

California and Oregon are leading states for production of nursery products, shipping ornamental plants, trees, shrubs, bulbs, and other horticultural products to the nation and the world. Nurseries in Oregon and California have had their shipments blocked or plants destroyed as a result of the regulation.

“California nurseries are fully complying with the federal APHIS order,” Dolezal continued. “Protecting our customers in other states and shipping clean plants is in the best interest of everyone in our industry.”

OAN executive director John Aguirre agreed. “Nurseries take very seriously the threat of plant diseases,” he said. “Over 70% of Oregon’s nursery sales are destined for buyers outside our state. Oregon growers cannot allow states to violate federal law in an effort to close their markets to our growers.”

There is specific precedent for the plaintiffs’ action. In 2004, the California Association of Nursery and Garden Centers successfully sued the State of Kentucky under similar circumstances. “Despite that precedent, our polite requests were ignored and we had no other option but to defend our nurseries from being cut off from their customers in South Carolina,” Dolezal said.

“We are disappointed that we were forced to take this action, but the impact on our members’ businesses left us no choice,” said Dolezal.

The two associations seek injunctive relief to invalidate the regulation. They expect a swift ruling from the U.S. District Court in light of the clear-cut law and precedent.

The plaintiffs in the suit are represented by attorneys Jim Lehman and Daniel D’Alberto of Nelson, Mullins, Riley & Scarborough, LLP of Columbia, South Carolina, and Neil Shapiro of the Law Offices of Neil Shapiro in Monterey, California.

For more information about Sudden Oak Death (Phytophthora ramorum), go to http://www.aphis.usda.gov/plant_health/plant_pest_info/pram/index.shtml.

# # #
The California Association of Nurseries and Garden Centers was founded in 1911 as a statewide trade organization for nursery growers. It is headquartered in Sacramento, California. California nurseries and floriculture producers are the second largest agricultural commodity produced in the Golden State, after dairy, making it the largest state for shipments of nursery products in the United States. The Association is the primary advocate for the California nursery community in Sacramento and Washington, D.C.

The Oregon Association of Nurseries, based in Wilsonville, represents more than 1,300 wholesale growers, retailers, landscapers and suppliers. Oregon’s ornamental horticulture industry is the state’s largest agricultural sector, with annual sales of $820 million. For information visit www.oan.org or call 503-682-5089.

HINES, Oregon – For the second year in a row, the Extreme Mustang Makeover challenge is headed to the Northwest Horse Fair and Expo in Albany, Oregon. This thrilling competition will take place over three days, culminating in a fantastic freestyle event in front of a standing room-only crowd. The Mustang Makeover is set for March 19-21, leaving mustang trainers less than two weeks to put the final touches on their once-wild Oregon mustangs.

The Northwest event is a spin-off of the highly successful Extreme Mustang Makeover held first in Texas in 2007. The Mustang Heritage Foundation, a 501(c) 3 nonprofit organization, in cooperation with the Bureau of Land Management (BLM), created the Extreme Mustang Makeover events in order to recognize and highlight the value of Mustangs through a national training competition.

The Mustang Makeover events give the public a unique opportunity to see the results of wild horses becoming trained mounts. It is a great way to display the beauty, versatility and trainability of the rugged horses that roam freely on public lands throughout the West.

Over 30 trainers from Oregon and Washington picked up their “to-be-tamed” horses at BLM’s Wild Horse Corral Facility in Hines the first weekend in December 2009. From there, it has been a race to the finish: who can best train and show their mustang at the Northwest Extreme Mustang Makeover Challenge.

Trainers and fans alike gather at the Linn County Fair and Expo Center in Albany beginning March
19. The Mustang Makeover is one of the opening events for the Annual Northwest Horse Show and Expo. The Mustang Makeover events are as scheduled as follows:

• Friday, March 19, 6:00 p.m.: Oregon mustangs will be on competitive display. Trainers are evaluated on the body condition of their mustangs, as well as their ability to handle the horse “in hand” through a series of maneuvers including picking up the horse’s feet, maneuvering it through obstacles and loading it into a trailer.

• Saturday, March 20, 5:30 p.m.: trainers mount their animals and complete a “horse course” that includes a series of obstacles and requires the trainer to demonstrate the level of competency the horse has accomplished.

• Sunday, March 21, 10:30 a.m.: The top ten finalists compete in a freestyle event, followed immediately by an awards presentation and competitive bid adoption for the trained mustangs.

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Only qualified adopters – those who have registered and been approved to adopt through the Wild Horse Program – will be able to participate in the competitive bid adoption. Registration and approval can occur onsite at the Northwest Horse Fair and Expo before bidding begins, or ahead of time by mailing an application to BLM Wild Horse Program, 28910 Hwy 20 West, Hines, Oregon 97738. Those who apply by mail will need to check in at BLM’s mustang vendor booth upon arrival at the Mustang Makeover event.

All horse enthusiasts are encouraged to consider adopting a mustang. Their stamina, hardiness, and quick intelligence make Oregon’s wild horses excellent partners for any discipline.

For more information on the Northwest Extreme Mustang Makeover, call the Burns District BLM Office at (541) 573-4400. Additional information about the Wild Horse program is also available online at: www.blm.gov/or/districts/burns/wildhorse/index.php. Release No. OR-020-10-09 March 9, 2010

The FDA signaled that more criminal prosecutions of corporate officials for FDA-related offenses may be on the way.

Commissioner of Food and Drugs Dr. Margaret A. Hamburg March 4 said that the FDA was acting in response to an internal committee’s recommendation that the “appropriate” use of misdemeanor prosecutions be increased “to hold responsible corporate officials accountable.” Hamburg called such misdemeanor prosecutions “a valuable enforcement tool.”  According to Hamburg, the FDA has developed criteria to be considered in the agency’s selection of misdemeanor prosecution cases. She said that the criteria “will be incorporated into the revised policies and procedures that cover appropriate use of misdemeanor prosecutions.”

Hamburg revealed the actions in a letter to Sen. Charles E. Grassley, R-Iowa, that also responded to the findings of a Government Accountability Office (GAO) report released the same day. The report examined the FDA’s oversight of its Office of Criminal Investigations (OCI).

To read more, click the following link: http://www.injuryboard.com/national-news/fda-plans-get-tough-attitude-with-pharma-food.aspx?googleid=278992.

The Klamath Basin has been waging a water war of epic proportions since 2001. Although this community has had a long history of water disputes, the issue garnered national recognition in early 2001 when a drought was declared and irrigators’ water was turned off in order to protect endangered fish in the Klamath River. It took another four years of economic and environmental catastrophes before many of the parties involved would join together in July 2005 to begin to discuss a settlement agreement. At this point the real game began, and the rules started to change.

Water rights have developed over decades from a common-law basis where prior appropriation was key. Water rights are established on a timeline, with the most assured rights held by the oldest rights holder, known as “senior.” All water rights with a date filed after that time are considered “junior” to the senior water right holder. So, for example, during a drought the junior water right holder must turn off their water before the senior right holder does. The Klamath Basin Restoration Agreement signed on February 18, 2010 overturns this system and risks throwing the region into chaos.

The Process
Settlement agreement negotiations were convened by the U.S. Fish and Wildlife Service. The original objective of the participants (who consisted of federal, state and local officials, along with PacifiCorp, irrigation district representatives, and environmental and fishing organizations) was to develop a single agreement which would include all stakeholders and be an open consensus process.

However, the playing field quickly changed. First, instead of one agreement, it was decided to develop one agreement to deal with the hydroelectric impacts and a second agreement to deal with the litany of water quantity and quality issues. In addition, somewhere along the way the process was no longer based on consensus. Many of the meetings were held in secret, and certain parties were excluded from the negotiations. The reason used to justify secret meetings was that issues being discussed were of a proprietary nature. However, no matter how proprietary some of the information may have been, the results will have profound effects on citizens throughout the entire Klamath Basin and will require taxpayer funding to implement. Therefore, no reasonable excuse exists to exclude any of the parties from any portion of those discussions.

The most egregious change made to the process was when the group representing the majority of the individual irrigators, referred to as the “off-project irrigators,” were excluded from the negotiation table. Instead, a newly formed group representing only a small fraction of the off-project irrigators was invited to participate in the negotiations, which consequently did not include the viewpoint of the larger stakeholder group.

In fact, it has been revealed that the newly formed group, known as the “Upper Klamath Water Users Association,” was organized by Becky Hyde. Ms. Hyde has had direct monetary ties to both Sustainable Northwest (considered the “unbiased” facilitator during the Agreement discussions) and the Klamath Tribes. Both groups have huge stakes in reaching an agreement that likely would not be to the benefit of the off-project irrigators. This sets an ugly precedent for facilitated processes. It changes the process from facilitated negotiation to participatory extortion. In essence, either a party agrees with the settlement group, or they will be replaced with a group that will agree!

The Implementation Impacts
The results of this agreement will be significant for all Oregonians. The Agreement unfortunately picks winners and losers among farmers. Water rights in Oregon will be usurped by the Agreement. This will have long-term impacts on the way water right issues are decided statewide. In essence, the Agreement ignores the “first in time-first in right” basis of Oregon water law and requires off-project water users (which for the most part are senior water right holders) to turn off their water before the junior water right holders (known as on-project irrigators) that are a part of the federal irrigation project can be asked to limit their water use. This game-changer could set legal precedents allowing junior water right users to negotiate their way to the top of the priority line. In addition, the Agreement requires off-project irrigators, many of whom have not been a party to this Agreement, to retire 30,000 acre-feet of water.

The one critical component that brought the water users to the table to craft this Agreement was an opportunity to obtain assurances that they could continue to use water critical to generating economic stability for the community and nutritious food products for the rest of us. However, the Agreement doesn’t provide that desired assurance. Instead, it creates a deep division within the community by requiring impacts to be shouldered by one segment of the community first (off-project irrigators). When that isn’t sufficient, the rest of the community (on-project irrigators) will be in jeopardy. That doesn’t constitute assurance.

The 369 pages of the Klamath Basin Restoration Agreement contain numerous other issues critically impacting the community, tribes and the environment that have not been discussed here. But, it is important to understand that both the process used and the resulting Agreement will have lasting effects on all Oregonians, not just those residing in the Klamath Basin. When there are so many victims of the process, the one-sided adulation of the Agreement by the Governors of Oregon and California, as well as others present at the signing ceremony in the state capitol rotunda, is disheartening.

Karla Kay Edwards is Rural Policy Analyst at Cascade Policy Institute, Oregon’s free market public policy research organization. She has held positions of leadership in numerous organizations focusing on agricultural and rural industries and issues, including the Fresno (California) Farm Bureau, Washington Cattlemen’s Association and the Oregon Department of Agriculture.

Economists often like to point out that we have two hands. “On the one hand,” they’ll say as they state a fact, and then they’ll introduce an alternative viewpoint with “on the other hand.” So it’s no surprise that many of the predictions in USDA’s recent farm income forecast, released on Feb. 11, are both positive and negative, depending on which “hand” you look at.

USDA farm income report shows modest rebound Continued from page 1 USDA has forecast net farm income of $63 billion in 2010, a $6.7 billion (11.8 percent) increase from 2009. That’s welcome news after last year’s drop of more than 20 percent. On the other hand, the 2010 forecast is still far below the $87.1 billion farmers and ranchers earned in 2008.

On one hand, the forecast for this year is $1.4 billion below the average of $64.5 billion in net farm income earned in the previous 10 years. On the other hand, USDA’s economists say that the 2010 forecast is the fifth-largest amount of income earned in U.S. farming.

Last year farmers and ranchers were affected by a demand squeeze due to the economic recession. Demand for higher-end beef and pork, cheese and other dairy products shrank in 2009 as consumers ate out less and looked for ways to cut their grocery bills.

Bob Young, American Farm Bureau Federation chief economist, says the latest USDA forecast shows that the predictions of late last year that the agricultural economy would start to rebound in 2010 are coming true, but they also support the prediction that the recovery won’t be a quick one.

“This forecast is definitely good news for producers. Toward the end of last year we became optimistic that the agricultural market had already hit bottom,” said Young. “This forecast bears out that expectation. It is important to remember, though, that this is only a forecast. Different weather and production levels could change the picture. It’s still too early to take this to the bank.” The improvements will come mostly from the livestock sector, which suffered the biggest price drops in 2009. On the other hand, producers of several crops, particularly wheat and soybeans, are expected to experience price drops in 2010. The wheat price is expected to decline 34 cents a bushel as quantities sold, domestic demand and exports fall. Soybean prices are expected to fall 58 cents per bushel.

Sales of corn for grain are expected to decline 1 cent per bushel from 2009, but a decline of 1.6 percent in the quantity of corn sold is expected to take a bigger bite out of corn cash receipts. Demand for U.S. cotton is expected to be at the lowest point since 1988 and U.S. cotton exports are forecast at their lowest levels since 2001-02. However, a 2.5 percent decline in the amount of lint sold is expected to cut supply and lift prices by 10 cents per pound.

USDA forecast government farm payments would not change much this year. The department said a projected increase of $1.3 billion in ad hoc and emergency assistance payments would be more than offset by lower payments in other programs, particularly the Milk Income Loss Contract program, the certificate exchange program and countercyclical payments program.

“I think it’s important to stress that point as we seek ad hoc assistance for crop producers who have dealt with too much rain and other natural disasters,” said Tara Smith, AFBF farm policy specialist.

Dairy farmers have survived the worst milk prices since the 1970s, and so the prediction that dairy cash receipts could increase more than $7 billion in 2010 is especially welcome. USDA expects a $4-per-hundredweight (cwt.) increase in the annual average milk price this year as dairy product exports pick up and the number of milk cows declines 228,000 from 2009.

Also good news for livestock producers is the predicted drop of $1.1 billion (2.4 percent) in feed expenses. Feed prices began falling last year after shooting up $18.9 billion (67 percent) from 2005 to 2008.

As exports of beef increase nearly 8 percent, USDA is also forecasting a $2.5 billion increase in cattle cash receipts, with the price for cattle forecast to go up by about $6.22 per cwt. The price of pork is expected to increase by $3.77 per cwt. as pork production declines slightly (2.8 percent). Small increases are expected for poultry and egg receipts, as well.

Of course, the expenses side of the ledger is just as important to farmers’ and ranchers’ bottom lines as cash receipts. USDA says production expenses in 2010 will rise a bit, but less than 1 percent. The bad news is expenses will still be at the second highest level ever. On the other hand, the good news is that the increase in income exceeds the increase in production expenses, which was not the case in 2009.

“Last year will go down in the record books as one of the toughest years farmers have had since the Great Depression,” said Young. “This year won’t be great, but it certainly will be an improvement.”

A recently released report from the Oregon Department of Environmental Quality, completed as part of a federal watershed needs survey, estimates that it could cost up to $1.2 billion to restore streamside vegetation and improve streamside habitat from pollution caused by agriculture and other activities throughout the Willamette basin.

DEQ’s report, “Cost Estimate to Restore Riparian Forest Buffers and Improve Stream Habitat in the Willamette Basin, Oregon” is accessible on DEQ’s website at http://www.deq.state.or.us/wq/tmdls/docs/WillametteRipCost030310.pdf.  DEQ produced the report for the U.S. Environmental Protection Agency’s 2008 Clean Watersheds Needs Survey. EPA conducts the survey, which is part of federal Clean Water Act requirements, to help the federal government collect data about capital needs and costs to meet the act’s water quality goals

DEQ water quality analyst Ryan Michie, the report’s author, says cost estimates on streamside vegetation and habitat improvements in the Willamette basin should provide a focus point for further discussion among interested parties on how – and how much of – this work could be funded.

“This report will contribute to Willamette basin restoration planning efforts for DEQ and others interested in improving the basin’s water quality,” said Michie.

For the first time, DEQ’s cost estimate report to EPA includes estimated costs of restoring streamside vegetation and habitat from pollution caused by “nonpoint” sources such as farming, forestry and urban activities. Nonpoint source activities that result in the loss of streamside vegetation contribute to sediment discharging into streams, increased stream temperatures and diminished aquatic habitat.

The report breaks down the number of acres and cost by municipalities, agencies and various land ownerships. It estimates the number of acres and total cost to:

·         Restore stream vegetation removed by agricultural and other activities
·         Improve in-stream habitat
·         Construct fencing to protect streamside plantings
·         Pay landowners incentives and a modest rent for use of their land for restoration.

The cost estimate report also builds upon DEQ’s 2009 “Willamette Basin Rivers and Streams Assessment Report,” which concluded that more than 80 percent of agricultural and urban lands in the Willamette basin have impaired biological conditions, and that warm water temperature was the most extensive water quality impairment in the basin. The assessment, which is at http://www.deq.state.or.us/lab/wqm/assessment.htm, drew upon data collected from six different organizations in 15 different studies.

The just-released cost estimate report makes the following conclusions:

·         About 96,000 acres may need to be restored in the Willamette basin. About 70 percent of those acres are on agricultural lands.

·         Accounting for uncertainties, the total cost of restoration work in the basin could range from $593 million to $1.2 billion. This cost includes actual restoration work and 15 years of incentive and rental payments to landowners to help for use of their land.

·         About 75 percent of the total cost is related to restoration on agricultural lands, while 15 percent is related to restoration inside urban growth boundaries.

Michie noted that DEQ does not endorse any one form of achieving stream habitat and vegetation restoration. It used a land rental agreement model in its report because data on leasing land is readily available. DEQ supports a wide variety of programs or solutions that will improve water quality, not just the land rental model.

DEQ determined restoration needs for streamside vegetation by analyzing satellite images of vegetation produced by the U.S. Geological Survey. It determined the amount of needed habitat improvements by drawing on data from DEQ’s Willamette Basin Rivers and Streams Assessment, which rated streambed conditions at 246 sites in the basin. The amount of needed habitat improvement is based on the percentage of stream miles in urban, agricultural and forestry land-use categories that were rated as having “poor” streambed stability – as opposed to those rated as “fair” or “good.”

DEQ’s cost estimate report, along with other information, helps EPA determine Oregon’s need for water quality improvement projects funded through the Clean Water State Revolving Fund program. Through a formula outlined in the Clean Water Act, EPA determines allocation of State Revolving Fund amounts for states. Congress determines the actual State Revolving Fund dollar amounts allocated to states in the annual budget it authorizes for EPA.

In 2009, Oregon received $7.66 million in federal monies for State Revolving Fund projects – not including projects funded by American Recovery and Reinvestment Act stimulus funds. DEQ, under the State Revolving Fund, allocates several loans annually to communities, sanitary districts and other agencies to help finance water quality improvements. From 2004 to 2008, the city of Portland spent $2.3 million in State Revolving Fund monies restoring habitat and vegetation of streamside areas of the lower Willamette and local tributaries.

There’s no question about it. Any form of agriculture, including the production of nursery stock, requires energy. And, energy costs money. Some may see that as a burden, which it is, but here’s a chance to see it as an opportunity.

This spring, Oregon State University Energy Efficiency Center is offering rural energy audits, thanks to a grant from the U.S. Department of Agriculture. Qualified, participating rural businesses can receive a comprehensive energy audit worth $1,480, and they’ll pay just $370. As noted by OSU (PDF), “These audits are designed to help rural businesses and farms understand their energy use patterns and identify opportunities to save energy and reduce costs.”

Eligible businesses must be a small agricultural producer located in a rural area as defined by USDA (see this PDF for more info). For more information on the audit process and program requirements, check out this information sheet (PDF).

This program ties in nicely with two initiatives currently being undertaken by the Oregon Association of Nurseries. OAN launched its Sustainability Initiative last summer as well as its Climate Friendly Nurseries Project (CFNP) (in conjunction with the Oregon Environmental Council). Several of the nurseries taking part in the CFNP have conducted energy audits, and all reported that they found ways to save energy and money.

In the June edition of Digger, we’ll have more to say about sustainability, CFNP and energy audits. In the meantime, let us know if you decide to take part in the energy audits program.

Legislation by State Representative Bob Jenson (R-Pendleton) has successfully protected the estates of several local farming families and protected the Jim Boyd Hydroelectric project by passing bills through both chambers of the Legislature that will now move to Governor Ted Kulongoski for his signature. Included in one of the last budget balancing bills of the February session is a Jenson provision that provides tax credits to some 13 Oregon agricultural families that were inadvertently denied lower estate taxes.

Jenson’s amendment to the budget bill protects those families from a drafting error that occurred when the Legislature first provided the family farm estate tax cut in 2007 and amended again in 2008. “This just makes sure these 13 families are treated like everyone else who qualifies for the estate tax relief. It wasn’t fair they were left out and I am grateful to my House and Senate colleagues for being willing to fix this unintended inequity in the law,” said Jenson.

Jenson’s other bill - HB 3602 -was also passed and provides the ability for Umatilla County to transfer ownership rights of the Jim Boyd Hydroelectric Project to a new owner.

The bill’s passage ensures that the county can transfer what were expired rights on the facility and will allow new owners to refurbish and eventually re-open the facility that has been shut down since the 1990’s.

“Our ability to generate local power and provide local businesses with the opportunity to grow from the ground up will continue to help revitalize our local economy,” said Jenson. “This bill allows the county and the new owners to have a fighting chance of getting this facility back up and running, and providing much needed, inexpensive locally-grown energy for our local communities.”

House Speaker Dave Hunt (D-Clackamas County) said Jenson’s strong advocacy for farmers and rural communities in his district resulted in passage of bi-partisan legislation that clearly benefits residents of House District 58.

Last month I predicted agriculture likely will experience a net loss from the 2010 legislative session. Unfortunately, the potential for loss has shot up exponentially with the action taken Thursday on Substitute House Bill 3181.

This legislation would almost triple (to 2 percent, from 0.7 percent) the state’s hazardous substance tax, created by the voter-approved Model Toxics Control Act of 1988. It would be a triple hit on farmers and growers, between higher prices for fuel, fertilizer and crop protection products.

How much higher? We’re still trying to sort all that out (the governor’s budget office does not supply detailed breakdowns of the estimated impacts of tax increases). But SHB 3181 is expected to cost taxpayers $683 million over the three fiscal years beginning July 1. It’s the big-ticket item in the list of tax increases the governor proposed Wednesday (along with new taxes on candy, gum, and bottled water, and an increase in the tobacco tax).

Agriculture will feel the impact of this tax increase not only directly but indirectly through things like higher trucking costs. Farmers, growers and ranchers can’t pass their costs along to the consumer in the way that other industries can, either, so this will be a direct hit on the bottom line.

The bill was passed by the House Capital Budget Committee yesterday after it was amended to steer nearly 70 percent of the revenue generated straight into the state general fund through the next year and all of the 2011-13 budget cycle. That’s even more money into the general fund than the original version proposed. The rest is supposed to go toward helping local governments pay for environmental cleanup, particularly pollution in stormwater runoff.

In other words, most of the revenue from tripling this tax won’t be used for the voter-approved purpose – to clean up hazardous waste – but to plug the giant holes in the state treasury ($2.8 billion for the next year, maybe $5 billion in 2011-13) caused primarily by years of overspending.
Yesterday the bill also was amended to take effect May 1 – not July 1, the start of the 2011 fiscal year, or even June 1, as the original version dictated. And it contains the “emergency clause” that prevents a challenge from the people using their power of referendum.

Asked Wednesday how much tripling the MTCA tax might mean at the fuel pump, the governor said it might be three more cents per gallon – but why, she added, would the oil companies pass their costs on down to the consumer and cause pump prices to increase when they are making such profits? That kind of anti-business mindset is all too common around Olympia. She probably can’t imagine how prices of fertilizer and crop protection products could be affected by this tax hike, either.

Some compelling testimony against SHB 3181 was delivered Wednesday by Jim Fitzgerald, executive director of FarWest Agribusiness in Spokane (he’s pictured below, on a separate and more pleasant visit to the Capitol). He was speaking to the House Capital Budget Committee – the committee that proposes spending on public construction projects – which had the bill because the tax will help fund local stormwater projects, which are construction jobs.

Tripling the MTCA tax is liable to drive business out of Washington into other states, Fitzgerald testified, recounting a phone call to an ammonia handler to discuss the proposed increase. And he told committee members that while FarWest is sympathetic to the challenge of dealing with runoff, farmers shouldn’t be stuck with the tab. It’s the malls and streets and parking lots, with so many impervious surfaces, where stormwater concerns originate – not farms.

It was no secret the Legislature’s majority party would be raising taxes this year. I was wondering whether agriculture would be tapped on the shoulder for more money, and now we know how.

The question now is whether, when the regular session ends March 11, will our employers and families be saddled with a collection of so-called “targeted” tax increases like HB 3181 or one big tax increase, like another penny’s worth of sales tax? Or both? The governor wants $605 million in new taxes, and recent history suggests the Legislature will surpass that mark.

The last straw: When she rolled out her “targeted” proposal Wednesday the governor said she doesn’t like the idea of a general sales tax increase because it would hamper the recovery of our state economy. Does she not realize how tripling the MTCA tax will hit the backbone of Washington’s economy not once but in three places?

The revised MTCA tax bill now goes forward for a vote by the entire House. Should it pass, the bill will come to the Senate Ways and Means Committee, on which I serve.

A roundup of ag-related bills

Here’s how bills that came out of the Senate and House agricultural policy committees (with companion legislation, where noted) stood following Tuesday’s cutoff for passing bills from the “house of origin” (Senate acting on Senate bills, House acting on House bills).
Bills that require appropriations or involve taxes and are considered “necessary to implement the budget” may be considered beyond the cutoff.
Substitute Senate Bill 6210 – Agricultural resource lands; not brought up for Senate vote

Senate Bill 6228 – Organic products; not brought up for Senate vote
(companion measure, House Bill 2460, passed House and received hearing Thursday before Senate ag committee)

Senate Bill 6229 – Dairy inspection program; passed Senate, scheduled for House ag committee hearing today (Schoesler bill, companion measure, House Bill 2461, passed House and received hearing Thursday before Senate ag committee)

Senate Bill 6267 – Water right processing; passed Senate, hearing before House ag committee was Thursday

Substitute Senate Bill 6299 – Animal inspection; passed Senate, scheduled for House ag committee hearing today (Schoesler )

Substitute Senate Bill 6341 – Food assistance/dept of agriculture; passed Senate, referred to House General Government Appropriations

Substitute Senate Bill 6343 – Washington food policy forum; passed Senate, scheduled for House ag committee hearing today

Substitute Senate Bill 6520 – William D. Ruckelshaus Center; passed Senate, referred to House Local Government & Housing for hearing Monday

Substitute Senate Bill 6521 – Agriculture impact statement; passed Senate, scheduled for House ag committee hearing today

Senate Bill 6543 – Tree fruit research commission; passed Senate, hearing before House ag committee occurred Thursday (companion measure, House Bill 3095, passed House and received hearing Thursday before Senate ag committee)

Substitute Senate Bill 6556 – Agricultural burning fees; passed Senate, referred to House General Government Appropriations for hearing Tuesday

Senate Bill 6559 – Anaerobic digesters; not brought up for Senate vote

Substitute Senate Bill 6634 – Dairy nutrient management records; passed Senate, hearing before House ag committee was Thursday

Senate Bill 6653 – Farmers market/property tax; not brought up for Senate vote

Senate Bill 6745 – Veterinary technicians; passed Senate, heard by House ag committee today (companion measure, House Bill 2470, passed House, heard by Senate ag committee Thursday)

Substitute Senate Bill 6792 – Driver license/agribusiness; not brought up for Senate vote

Substitute Senate Bill 6794 – Ag landowner incentive programs; not brought up for Senate vote

Substitute Senate Bill 6816 – Farm implement permits; passed by Senate, referred to House transportation committee (Schoesler bill)

Senate Bill 6306 – state licensing of crop-insurance adjusters; passed Senate, passed Wednesday by House committee on insurance, awaiting House vote (Schoesler bill)

Substitute House Bill 1534 – Water well construction; not brought up for House vote

House Bill 2446 – Weed management on Fish & Wildlife land; waiting in House Capital Budget Committee

Substitute House Bill 2485 – Department of Fish & Wildlife land purchases; waiting in House Capital Budget Committee

Substitute House Bill 2509 – DNR/firefighting funds use; waiting in House General Government Appropriations
Substitute House Bill 2541 – Forest products industry; passed House, scheduled for Senate committee hearing Monday (companion measure, Senate Bill 6256, died in committee)

Substitute House Bill 2556 – Financial security, warehouses/grain dealers; passed House, heard Thursday before Senate ag committee (from my Ninth District seatmate, Rep. Susan Fagan)

Second Substitute House Bill 2591 – Water right permits; not brought for House vote
House Bill 2659 – Timber purchase reporting; passed House, Senate committee hearing scheduled Wednesday

Dairy stock watering bill fails to advance

What began as Senate Bill 6803 underwent two revisions in the span of one week to become Second Substitute Senate Bill 6803, with a focus solely on dairies. But it did not reach the full Senate for a vote before the Feb. 16 cutoff.

The failure of 2SSB 6803 means the dairy industry will, along with the rest of the ag industry, have to take its chances with the stock watering lawsuit and the political winds. That’s my preference, as passing the bill would have let the regulators get their noses under the edge of the tent ahead of the lawsuit’s outcome. I think it’s best when agricultural interests are able to stand united.

Update on efforts to reform government and control costs

The fate of our efforts to reform the “workers’ compensation” system – the state-run monopoly that provides industrial insurance and is full of problems – offers a perfect example of what we are up against.

The chairman of the House committee that oversees labor issues flatly said there wouldn’t be time this session to consider changes; his counterpart in the Senate said the same, then proposed a bill to study the issue – as though we don’t know already what the concerns are. Her committee moved the bill forward, but it did not come up for a full Senate before the cutoff.

It turns out that the workers’ comp system is no longer considered solely between employers and workers, with the state acting as insurance agent: the trial lawyers in our state, for whom workers’ comp claims are a gold mine, also have a seat at the negotiating table. I was surprised that fact is being admitted so openly. But it helps explain the lack of action toward reforms.

You may have heard this other bit of news already, as it’s been well-reported in our state’s media: the majority party has just about tossed out the two-thirds legislative vote standard for raising taxes. The Senate majority party passed a bill, the House made one change, and it will be back before us Monday for final agreement.

We knew this move was coming, but that doesn’t make it any easier to stomach. Officially, the two-thirds rule (created by the voters in 2007) will be suspended until after the 2011 legislative session. That will let the majority party use its majority to adopt tax increases and enable a higher level of government spending than is appropriate in light of the state’s revenue situation.

We received a new revenue forecast a week ago that indicates Washington’s economic downturn may be flattening out. That’s encouraging, and if anything it’s a reason to avoid tax increases and the undercutting effect they would have.

George Washington and agriculture
This comes not from “George, Washington” but our nation’s first President, who thought of himself first and foremost as a farmer. It’s in recognition of his birthday on Feb. 22, which was observed Monday of this week as part of the President’s Day holiday:
“It will not be doubted, that with reference either to individual, or National Welfare, Agriculture is of primary importance. In proportion as Nations advance in population, and other circumstances of maturity, this truth becomes more apparent; and renders the cultivation of the Soil more and more, an object of public patronage.”
–George Washington, Eighth Annual Message to Congress, 1796

On the calendar:
Thursday, Feb. 25 – Washington Farm Bureau Labor Conference, Wenatchee Convention Center (for more information click here or phone 360-357-9975 or 1-800-331-3276)

Thursday, Feb. 25 – Beef Day on the Hill, Washington Cattlemen’s Association north steps of the Legislative Building, Olympia; (information: 509/925-9871 or wacattle@kvalley.com)

Share Ag Alert! and suggest items for the calendar
If you have a meeting or other newsworthy event to submit for the calendar, or know someone who may want to receive Ag Alert! on a regular basis, please have them contact my legislative assistant Krista Winters at winters.krista@leg.wa.gov or phone my Olympia office (1-800-562-6000 or 360-786-7620). To receive Ag Alert! please provide an e-mail address and residential address. Thanks.