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News Break – October 5, 2011 – Fracking, Biofuels, China Currency, Farm Bill

October 5, 2011 By Ron Sylvester Leave a Comment

PA Governor supports tougher shale drilling regulations

Columbus Dispatch

Energy companies that drill into Pennsylvania’s Marcellus shale for natural gas would have to pay an impact fee and would face tougher sanctions for violations under a plan Gov. Tom Corbett endorsed yesterday.

The announcement is part of an increasingly tougher stance the state has taken in recent months in response to its natural gas boom, in which more than 3,800 horizontal wells have been drilled and hydraulically fractured, or “fracked” in recent years. In April, Corbett ordered a halt to the dumping of brine, a salty, toxic wastewater from wells, into that state’s streams.

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Study says biofuels costly, their impact questionable

Des Moines Register

Next-generation biofuels are so expensive and difficult to make that the nation is unlikely to meet the government’s usage mandates, according to the National Research Council.

A congressionally requested study by the research council, an arm of the National Academy of Sciences, also warns the feedstocks needed to produce the advanced biofuels could increase food prices by competing with food crops for land,  a key criticism of the corn ethanol the next-generation biofuels are supposed to replace. Producing the future biofuels also could have unintended environmental consequences in some areas because of the fertilizer and water requirements and may not do as much to reduce greenhouse gas emissions as the government has estimated, the study found.

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Vilsack says USDA food safety programs likely to be cut

Bloomberg

Food-safety programs may be less vulnerable to cuts than other areas of U.S. Department of Agriculture spending because of the importance placed on the nutrition supply, Secretary Tom Vilsack said.

“I’m least concerned about the food-safety part than any other part,” Vilsack said today at a food-policy conference in Washington. Nutrition assistance for poor families may be more vulnerable, even as it helps reduce poverty, he said.

Funding for programs that protect the nation’s food supply are being pressured by congressional spending cuts. The USDA’s Food Safety and Inspection Service budget would be reduced by 3.4 percent to $972.7 million in the year beginning Oct. 1 under the appropriations bill the House of Representatives passed in June, while the Senate’s plan would leave funding unchanged.

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Reid sets stage for next vote on China currency bill

The Hill

Senate Majority Leader Harry Reid (D-Nev.) filed a cloture motion on Tuesday night to end debate on the pending Chinese currency bill.

The legislation, designed to pressure the Chinese government to stop undervaluing its currency, already cleared one important hurdle on Monday night, advancing to the first stage of debate by a vote of 79-19. That strong show of support indicates the bill could very well clear the upper chamber by week’s end.

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Thune touts bipartisan Farm Bill proposal

Indiana Prairie Farmer

The Aggregate Risk and Revenue Management program, or ARRM Farm Bill proposal has been introduced by a bipartisan group of farm state Senators including Senator John Thune, R-S.D. So far it’s getting positive initial reaction among the agricultural community.

Thune says it builds on the Average Crop Revenue Election and the crop insurance program to provide a safety net in crop years where prices are low. However, he says it’s less complicated and less restrictive than either ACRE or SURE.

“It does away with direct payments, it does away with counter-cyclical payments, and it sort of reforms the ACRE program and acts as a compliment to crop insurance,” Thune said. “So for example if a farmer takes a crop insurance program, this would allow them to fill the gap between what crop insurance covers and what their 90% of revenue would be in any given year.”

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Filed Under: Blog Tagged With: China, Farm Bill, Fracking, Tom Corbett, Trade

NFU’s Johnson says pending free trade agreements lack protections for American workers, farmers

October 4, 2011 By Ron Sylvester Leave a Comment

National Farmers Union says Congress should oppose FTAs until the playing field is level

WASHINGTON (Oct. 3, 2011) – National Farmers Union (NFU) President Roger Johnson issued the following statement in regard to the submission of the Korea, Panama, and Colombia Free Trade Agreements (FTAs) for consideration by Congress:

“These three agreements are similar to the North American Free Trade Agreement (NAFTA) and Central American Free Trade Agreement (CAFTA). Both of those agreements have worsened the U.S. trade deficit, because the U.S. does not compete on a level playing field with other nations. America adheres to higher labor and environmental standards than other nations, so U.S. companies incur costs that companies in other nations do not.

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Filed Under: Blog Tagged With: Congress, environment, food security, labor, National Farmers Union, Roger Johnson, Trade

Krugman adds voice to Senate consideration of currency manipulation bill

October 3, 2011 By Ron Sylvester Leave a Comment

Last week on this blog we ran a release from the National Farmers Union which urged the U.S. Senate to adopt legislation that hold currency manipulators, like China, accountable. Today, Nobel Laureate and New York Times columnist Paul Krugman devoted his column to this issue. Read the excerpt below and visit the NYT to read the entire column.

…

Ask yourself: Why is it so hard to restore full employment? It’s true that the housing bubble has popped, and consumers are saving more than they did a few years ago. But once upon a time America was able to achieve full employment without a housing bubble and with savings rates even higher than we have now. What changed?

The answer is that we used to run much smaller trade deficits. A return to economic health would look much more achievable if we weren’t spending $500 billion more each year on imported goods and services than foreigners spent on our exports.

To get our trade deficit down, however, we need to make American products more competitive, which in practice means that we need the dollar’s value to fall in terms of other currencies. Yes, some people will shriek about “debasing” the dollar. But sensible policy makers have long known that sometimes a weaker currency means a stronger economy, and have acted on that knowledge. Switzerland, for example, has intervened massively to keep the franc from getting too strong against the euro. Israel has intervened even more forcefully to weaken the shekel. …

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Filed Under: Blog Tagged With: China, Currency Manipulation, Paul Krugman, Trade

NFU: Senate bill must pass to make trade agreements more fair

September 30, 2011 By Ron Sylvester Leave a Comment

Bill would help protect U.S. manufacturing & agriculture from currency manipulation by foreign governments

WASHINGTON (Sept. 30, 2011) – National Farmers Union President Roger Johnson sent a letter to U.S. Senate Leadership today urging them to pass S. 1619, the Currency Exchange Rate Oversight Reform Act of 2011. The bill would give the U.S. Treasury the authority to enforce existing currency manipulation laws with countries that trade with the U.S.

“The Currency Exchange Rate Oversight Reform Act is a comprehensive piece of legislation that uses U.S. trade law to counter the economic harm caused to U.S. farmers, ranchers and manufacturers due to currency manipulation,” said Johnson. “In addition to its 19 cosponsors, S. 1619 is supported by a broad coalition of farm, labor and manufacturing trade organizations and businesses.”

Unbalanced trade agreements have negative effects on the economy. They exacerbate our current trade deficit and cause job losses, which would be damaging to an already fragile economy.

“Before our trade can truly be fair, we need to ensure that all countries are playing by the same rules,” said Johnson. “For example, after signing the North American Free Trade Agreement, Mexico devalued its currency, wiping out most of the gains U.S. industries achieved in the agreement. This action set a precedent for our other trading partners, which continues today. As our country’s economic downturn continues, we cannot afford to continue to ignore the impact illegal currency manipulation has on the U.S. economy.”

 

Filed Under: Blog Tagged With: Currency Manipulation, NAFTA, Roger Johnson, Trade, U.S. Senate

NFU President says trade with Cuba makes sense

September 16, 2011 By Ron Sylvester Leave a Comment

WASHINGTON (Sept. 15, 2011) – National Farmers Union (NFU) President Roger Johnson issued the following statement after the U.S. Senate Appropriations Committee passed an amendment to allow direct cash transfers between U.S. and Cuban financial institutions by a vote of 20-10:

“NFU is encouraged that the Senate Appropriations Committee passed the amendment that would allow U.S. and Cuban financial institutions to directly transfer payments to each other. Currently those payments must be routed through a financial institution in another country, leading to additional fees and complications.

“NFU has long been a supporter of trade with Cuba. These self-imposed restrictions hurt our own domestic producers and make U.S. trade less competitive. The U.S. has exported $4 billion of agriculture goods to Cuba since 2000, and that number will grow with the elimination of this unnecessary trade barrier.

“At a time of high unemployment and stagnant economic growth, allowing direct cash transfers between the U.S. and Cuba provides a unique opportunity to create jobs and stimulate economic development in rural America. U.S. farmers and ranchers should be able to do business with customers in the United States’ backyard. It just makes sense. I encourage the full Senate to pass this amendment in its current form as quickly as possible.”

 

Filed Under: Blog Tagged With: Cuba, National Farmers Union, Roger Johnson, Trade

NFU Joins Call for Coherence Between WTO & Other Global Concerncs

June 21, 2011 By Ron Sylvester Leave a Comment

WASHINGTON (June 20, 2011) – National Farmers Union (NFU) joined farm groups from 60 countries from around the world in calling for better coherence between World Trade Organization (WTO) policies and other global concerns.

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Filed Under: Blog Tagged With: Agriculture, Farmers Union, Trade, World Trade Organization

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