Harkin Congratulates Fellow Iowan Tom Vilsack on Confirmation as Agriculture Secretary
On Tuesday, January 20, 2009, just hours after President Barack Obama was sworn in, the U.S. Senate approved several pending nominations, including that of former Iowa Governor Tom Vilsack as Agriculture Secretary. Harkin is Chairman of the Senate Committee on Agriculture, Nutrition and Forestry, the Committee that held nomination hearing on Vilsack's appointment.
"President Obama could not have made a better selection for Agriculture Secretary than Tom Vilsack," said Harkin. "He knows how to bring change that will help to strengthen and rebuild the farm and rural economy on a sound foundation. As governor, Tom Vilsack was committed to better nutrition and providing food assistance to those who need it. He built a strong record in promoting renewable energy, rural economic opportunity, and conservation. These qualifications will serve him well as he transitions into Agriculture Secretary. Tom Vilsack's confirmation signifies new leadership for the USDA, but also a new focus on the issues important to all Americans, including nutrition, conservation, energy and promoting the rural economy."
Harkin Applauds Vilsack Extension of Public Comment Period in Farm Payment Limitations and Eligibility Rulemaking
In his first teleconference as Agriculture Secretary, Tom Vilsack announced the new administration's approach to farm bill implementation. Secretary Vilsack said the Department is extending for 60 days a comment period on regulations governing payment limitations and eligibility requirements, including adjusted gross income benchmarks and requirements for contribution of active labor and management.
"I commend Secretary Vilsack for using his first news teleconference to discuss his approach to farm bill implementation," said Harkin. "This was already a basically sound rule, which reflects the stronger limitations eligibility requirements we fought to get into the farm bill. Some are concerned about the rule, so Secretary Vilsack is giving folks an additional 60 days to comment on the rule. At the end of 60 days, USDA can re-evaluate and determine whether and how the rule might be improved."
The farm bill provided three new income eligibility limits. A person or legal entity is not eligible to receive commodity program benefits, if the average adjusted gross income (AGI) from nonfarm sources exceeds $500,000. Similarly, a person or legal entity is not eligible to receive direct payments if the AGI from farm sources exceeds $750,000. And a person or legal entity is not eligible to receive conservation program benefits if the AGI exceeds $1,000,000 unless two-thirds of the income is derived from farming, ranching, or forestry operations.
Administering these new limitations and requirements may appear to complicate the farm programs, but the vast majority of Iowa farmers should be able to certify that their average adjusted gross income is less than $500,000. Senator Harkin is working to ensure that any supporting documentation regarding AGI that producers are asked to provide is manageable and reasonable.
The rule also clarifies the general provisions for determining whether a person or legal entity (such as a partnership or corporation) is actively engaged in farming, which is a basic eligibility requirement for receipt of farm commodity program payments. The rule provides that a contribution of active personal labor, active personal management, or a combination of labor and management, must be provided by each member or shareholder who has an ownership interest in an entity that receives program benefits. Collectively, such contributions must be significant and commensurate with the person's ownership interest or share in the entity. Contributions of active personal labor or active personal management must be made to the farming operation on a regular basis and must be identifiable and documentable as a separate and distinct contribution from that of any other member or shareholder in the farming operation. Previously, the requirement of active personal labor or management contribution could be made by only some of the stockholders or members of the entity, while all of the stockholders or members (even inactive ones) could still realize benefits indirectly through the legal entity.
Harkin Pushes for Increased Investment in Renewable Energy in Economic Package
The Senate bill contains a number of provisions aimed building vital infrastructure and boosting the economy in rural America. But the bill, according to Senator Harkin, in his capacity as a senior member of the Appropriations Committee, misses an opportunity to provide crucial investments in farm and rural renewable energy and USDA support for broadband service.
"The bill contains key investments that will not only stimulate the economy but lay the foundation for economic recovery," said Harkin. "But I do want to mention what I see as a problem of balance. The Senate bill includes about $40 billion for energy programs through the Department of Energy, but only $250 million for the energy programs we have at USDA.
"Those USDA programs are every bit as critical for the whole nation. Developing and commercializing advanced biofuels absolutely depend on those USDA energy programs that we put in the farm bill, and that are critical to resolving our oil problem. I hope we can fix this."
National USDA Highlights in the Economic Recovery Bill:
· Water and Waste Water Program - $1.375 billion to support $2.82 billion in loans and $963 million in grants.
· Community Facilities Program - $127 million to support a program level of $1.546 billion.
· Farm Loan Programs - $42.4 million to support a program level of $650 million.
· USDA Business and Industry Program - $150 million to support a program level of $3.01 billion.
· Biorefinery Assistance Program - $200 million.
· Rural Energy for America Program - $50 million.
Iowa Senators Seek Clarification on Federal Crop Insurance Rules
On January 23, Iowa Senators Tom Harkin and Chuck Grassley sought clarification from USDA regarding the basis and operation of rules governing federal crop insurance under circumstances in which adverse weather either delays or prevents the planting of crops. The senators wrote the Risk Management Agency based on the experiences of Iowa farmers who faced planting restrictions after the excessive rains and flooding last summer. Harkin and Grassley are both members of the Senate Committee on Agriculture, Nutrition and Forestry; Harkin chairs the Committee.
"After last summer's disastrous weather, many Iowa farmers were faced with late planting and prevented planting rules of the federal crop insurance program. Some farmers found those rules confusing and difficult to understand, so Senator Grassley and I are seeking clarification on the rationale behind these rules," said Harkin. "The federal crop insurance program has always been strongly supported and bought into by Iowa farmers, and we want to ensure that it functions as intended, as a crucial component of the safety net for American farmers."
The full text of the letter can be found here.
USDA's Final Rule on COOL Did Not Go Far Enough, Says Harkin
On January 15, USDA published the final rule to implement country of origin labeling (COOL) for beef, lamb, pork, goat meat, fish and shellfish, fruits and vegetables, peanuts, macadamia nuts, pecans and ginseng. The final rule was slated to become effective March 16, 2009. On January 20, the new Administration stated it would delay the effective date of COOL by 60 days to allow more time to review the final rule.
"By and large, I think USDA did make some improvements in the final rule compared to earlier versions of it, but the Department did not go far enough in clarifying the meat labeling provisions to ensure that meat exclusively of U.S. origin is accurately labeled for sale to consumers and that comingled food products are properly labeled," said Harkin.
The 2008 farm bill created distinct labeling categories such as: 1) product from animals born, raised and slaughtered in the United States, 2) product from animals from multiple countries, 3) product exclusively from a foreign country, and 4) product imported for immediate slaughter. A labeling category is also created for ground meat, which will require the label to include the names of all countries from which the meat possibly originated. Additionally, COOL-related recordkeeping requirements were clarified and streamlined for the benefit of producers and others in the production chain. Meat from live animals that were in United States on or before July 15, 2008 may be labeled as product of the United States since some producers may not know the origin of livestock that entered the United States before that date.
The final rule unfortunately deviates from Congressional intent by not clarifying that packers and retailers may not label all product as originating from multiple countries – such as "product of U.S., Canada, and Mexico" – even when a portion of the product is exclusively from the United States and could be accurately labeled as such without undue burden. It is important that the COOL regulations ensure that meat exclusively of U.S. origin is properly and accurately labeled and made available for consumers who want to purchase it. This outcome can be achieved while still allowing operating flexibility for the packing industry in segregating animals and meat products for accurate labeling. The regulations should also be modified to remove their present exemption from COOL for several food products, such as mixed or comingled vegetables and canned foods, which consumers would reasonably expect to carry country-of-origin labeling.
As Harkin Urged, Producers Who Sold Livestock to Agriprocessors Will Get $2 Million
On January 30, USDA announced that previously unpaid livestock sellers will receive full payment for animals sold to Agriprocessors, Inc., of Postville in the months before it filed for Chapter11 Bankruptcy protection. In early December, Harkin wrote to USDA asking that the Department intervene on behalf of producers and auction barns who had not received payment. The Packers and Stockyards Act requires that packers maintain a bond and trust for the benefit of sellers to ensure they are paid in full.
"Getting these producers and auction barns paid is long overdue," said Harkin. "The Packers and Stockyards Act clearly provides protections to producers to ensure they receive prompt payment for livestock or poultry."
According to USDA, 24 sellers filed valid claims with the packer and with USDA's Grain Inspection, Packers and Stockyards Administration (GIPSA) for sales of livestock to Agriprocessors that occurred between Sept. 14 and Oct. 24, 2008. Sellers began receiving payments from the bankruptcy trustee on claims ranging from under $1,000 to over $500,000 on Wednesday, January 28.
Harkin, 34 Senators Urge Help for Ailing Dairy Industry
In a letter to Secretary Vilsack, Senator Harkin and a bipartisan group of 34 senators from across the country urged USDA to take action to help alleviate the financial difficulties facing dairy farmers and to make more dairy products available to low-income families and students in school nutrition programs. Since last summer, the domestic dairy industry has been grappling with a serious supply and demand imbalance that threatens the stability and future of American dairy farmers.
"In the current downturn, a USDA initiative that helps dairy farmers while providing help to hungry people with food made right here in the U.S.," said Harkin. "We boost the domestic dairy industry while providing dairy products to those most in need."
The letter urged the Secretary to buy products such as in consumer-sized packages that would allow for easy distribution to low-income families. In addition, the purchases will help to improve the milk prices for dairy farmers across the country.
