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September 16, 2005

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In this Issue


Senate Moving Forward with Appropriations


Akaka Moves to Prohibit Purchase of Research Animals from Class B Dealers


Despite USDA Rules, Akaka Moves Against Nonambulatory Livestock


USDA, USTR off to Paris to Talk Trade


Senate Approves ‘Combat Meth’ Act


USDA Plans to Close 665 FSA Offices


Dorgan Says ND University Study Shows Need to Harmonize US, Canada Pesticide Trade Rules


Johnson New USDA Deputy Undersecretary for Rural Development


Canada Aims for 800,000 Metric Tons of Exports by 2015, Less U.S. Market


New Bills

 

Senate Moving Forward with Appropriations

The Senate approved a $48.6 billion FY2006 Commerce, Justice, Science appropriations bill this week, the sixth of 12 annual spending bills to be approved. The House passed their version of the bill in June. The Senate has appointed Conferees to hammer out the differences between the House and Senate versions.

Under the Senate version, NASA would receive $16.4 billion and the National Science Foundation would get $5.5 billion, similar to the Bush budget.

Moving onto FDA and farm issues, the Senate has taken up FY2006 Agriculture Appropriations bill which is expected to tie up the floor all week.

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Akaka Moves to Prohibit Purchase of Research Animals from Class B Dealers

Sen. Daniel Akaka (D-HI) filed an amendment he intends to offer on the FY2006 ag appropriations bill to prohibit USDA (and FDA) funding to research institutions that purchase animals from Class B dealers. Akaka earlier this year introduced the Pet Safety and Protection Act, to completely ban research institutions from purchasing animals from Class B dealers.

Class B dealers are licensed and regulated by USDA. The dealers acquire animals from pounds and shelters, pet owners who wish to give up their ownership, and other credible sources. If adopted, the Akaka amendment has serious implications for life-saving biomedical research. Even though the number of dogs and cats involved in research has declined significantly since the 1970’s, random source animals continue to serve a valuable purpose in medical and scientific research as well as teaching. Most dogs and cats involved in research are purpose-bred animals; however, certain types of studies require animals that are not available from breeders. These studies include: vaccine, drug and therapy research for pets; orthopedic studies; cardiovascular studies; prostate cancer research, and; research into “orphan” genetic diseases.

The National Association for Biomedical Research (NABR) is asking research institutions to contact their Senators urging opposition to the Akaka amendment.

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Despite USDA Rules, Akaka Moves Against Nonambulatory Livestock

In a second agriculture appropriations amendment, Sen. Daniel Akaka (D-HI) proposes to withhold USDA funding to inspect “any cattle, sheep, swine, or goats, or horses, mules, or other equines…unable to stand or walk unassisted at a slaughtering, packing, meat-canning, rendering, or similar establishment,” his third attempt in as many congresses to take all nonambulatory livestock -- no matter the reason -- out of the food chain.

The Farm Animal Welfare Coalition (FAWC), made up of the nation’s largest general farm, livestock and feed groups, points out that USDA has already banned nonambulatory ruminants from the food supply because of BSE. FAWC sent a letter to the entire Senate arguing the Akaka amendment is unnecessary since USDA banned so-called “downers” as part of its BSE rulemakings. The group also pointed out the amendment is seriously flawed and would impact other species as well as those listed in the proposed amendment.

Known to be a high legislative priority of the animal rights group Humane Society of the U.S., FAWC had this to say about the amendment, “There has been unreasonable public speculation by HSUS and animal rights groups that USDA may amend BSE regulations to allow nonambulatory livestock to be processed for human food. While the federal BSE mitigation system is a dynamic process, Secretary of Agriculture Mike Johanns has said publicly there is no such plan at USDA at this time.”

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USDA, USTR off to Paris to Talk Trade

Secretary of Agriculture Mike Johanns and U.S. Special Trade Representative Rob Portman reportedly will be in Paris next week to meet with European, Brazilian and Indian trade officials, and could be joined by representatives of Australia and other countries, according to media reports. Neither USDA nor USTR would confirm the trip as of late Friday. One of the participants in next week’s meetings, European Union Agriculture Minister Mariann Fischer Boel, just completed a four-day trip to Washington, DC, meeting with USDA, USTR and several members of Congress. She also addressed the Commodity Club, a group of DC-based ag and food trade associations.

Both the White House and Capitol Hill have been vocal on trade this week. President Bush pushed for an end to ag trade subsidies and Senate Agriculture Committee Chair Saxby Chambliss (R-GA) called for the EU to open its markets. Chambliss also said he told Portman to make no commitments at this time on the U.S. ending domestic farm subsidies. For her part, Bohl said she’s optimistic about prospects for the Hong Kong DOHA ministerial meeting in December, but said she got mixed messages from members of Congress with whom she visited.

It’s reported Bohl delivered a message to the U.S. that the EU wants America to offer to reduce its countercyclical farm payments. The U.S. wants EU tariff cuts.

 

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Senate Approves ‘Combat Meth’ Act

The Senate this week passed the “Combat Meth Act of 2005,” a bill designed to regulate and limit the sale of pseudoephredrine, an ingredient used in the production of illegal methamphetamine. The Fertilizer Institute and others praised the action by the Senate as fertilizer and ag chemical dealers have experienced growing theft of the chemical for manufacturing the illegal substance.

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USDA Plans to Close 665 FSA Offices

USDA wants to close 665, or more than 25%, of its Farm Service Agency (FSA) offices around the country, according to a story by the Associated Press (AP) this week. While USDA did not officially verify its intent or the story, AP reported Undersecretary J.B. Penn said he had not seen a document obtained by the wire service on which it based its story, but that the numbers being cited were inaccurate.

Penn said USDA is focusing on consolidating functions and improving service, not closing offices. Penn also spoke to the chairs of the Senate Agriculture Committee and the House Appropriations subcommittee on agriculture about FSA modernization efforts. More Capitol Hill briefings are planned. State FSA directors will be in Washington, DC next week for briefings as well.

FSA has offices in nearly every county in America, many using outdated computer and technical services. In some offices, it’s estimated it costs $2 for every dollar in assistance provided.

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Dorgan Says ND University Study Shows Need to Harmonize US, Canada Pesticide Trade Rules

A North Dakota State University study released this week by Sen. Byron Dorgan (D-ND) shows his state’s farmers alone could save as much as $41 million a year if a Dorgan bill to allow free movement of pesticides between Canada and the U.S. were enacted. In a 17-state survey done by the university’s Center for Agricultural Policy and Trade Studies, the national savings from free pesticide movement would be $178 million a year.

Dorgan’s bill aims at eliminating price differences between Canada and the U.S. for the same pesticide products. He cited “unnecessary barriers to trade in pesticide” that translate to much higher prices for U.S. producers, in some cases costing a U.S. producer twice as much as in Canada for the same product, made by the same manufacturer and sold under the same product name.

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Johnson New USDA Deputy Undersecretary for Rural Development

Allan Johnson, director of legislative and public affairs in USDA Office of Rural Development since 2003, has been named by the President to be deputy undersecretary for rural development. Prior to joining USDA, Johnson was president of Farm Progress Companies, a leading farm publisher, and worked as a consultant after retiring from Farm Progress in 2000. Johnson will assist Undersecretary for Rural Development Tom Dorr.

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Canada Aims for 800,000 Metric Tons of Exports by 2015, Less U.S. Market

As part of its BSE recovery plan, the Canadian beef industry is shooting for exports of processed beef to hit 800,000 metric tons a year by 2015, while at the same time reducing its reliance on the U.S. market. The Canadian Beef Export Federation reported that based on increased slaughter capacity and slaughter rates, Canada expects to export 700,000 mt of beef by 2010, and to hit the 2015 target easily while shipping about 50% of those totals to the U.S. Currently, Canada ships about 90% of its processed beef to the U.S.

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New Bills

A number of new bills have been introduced. Click here to send a request for a copy of the text or more information about the bill.

S.1692
A bill proposed by Sen. Kent Conrad (D-ND) provides disaster assistance to agricultural producers for crop and livestock losses.

S.1695
Sen. Tom Harkin (D-IA) offered legislation giving the Secretary of Agriculture additional authority and funding to provide emergency relief, in coordination with the Secretary of Homeland Security, to victims of Hurricane Katrina.

H.R.3754
Rep. Earl Pomeroy (D-ND) introduced a bill to provide disaster assistance to agricultural producers for 2005 crop and livestock losses.

H.R.3755
Rep. David Reichert (R-WA) offered a bill providing increased penalties for methamphetamine traffickers.

H.R.3756
Reichert also introduced language to amend the Controlled Substances Act and the United States Code with respect to methamphetamine.

H.R.3757
Legislation proposed by Rep. Mike Rogers (R-AL) provides for health opportunity accounts under the Medicaid Program.

H.R.3762
Rep. Sherwood Boehlert (R-NY) introduced a bill to require higher standards of automobile fuel efficiency in order to reduce the amount of oil used for fuel by automobiles in the U.S. by 10 percent beginning in 2016.

H.R.3782
A bill proposed by Rep. Heather Wilson (R-NM) prohibits price gouging of gasoline and diesel fuel in areas declared major disasters.

H.R.3791
Rep. Sherrod Brown (D-OH) offered legislation for the deferment of acquisition of petroleum for the Strategic Petroleum Reserve.

H.R.3792
Brown also proposed language to establish a Gasoline Availability Stabilization Reserve.

H.R.3807
Rep. Robert Ney (R-OH) introduced a bill creating a uniform national standard for gasoline, eliminating “boutique” fuels and requiring the Secretary of Energy to construct, and sell to private businesses, 15 new gasoline refineries.

H.R.3808
Ney also offered legislation to provide criminal penalties for price gouging during times of disaster.

H.R.3809
Rep. Collin Peterson (D-MN) introduced a bill in response to Hurricane Katrina and other natural disasters in 2005 that adversely affect food assistance, agricultural producers and households.

H.R.3811
Language proposed by Rep. Ted Poe (R-TX) terminates the effect of laws prohibiting the spending of appropriated funds to conduct oil and natural gas leasing and preleasing activities for any area of the Outer Continental Shelf.

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