Farm Bill Deal or No Deal?, Funding Headaches, Energy Bill and more

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	February 27, 2008 Farm Bill Deal or No Deal?  A new growing season, but no new farm bill. This week, House Agriculture Committee Chairman Collin Peterson (D-MN) told reporters he has confidence in a farm bill package that includes roughly $10 billion in additional spending. Congressional Democrats seem determined to get a farm bill passed, despite Senate Agriculture Committee Chairman Tom Harkin’s (D-IA) recent comments that a two-year extension is "looking increasingly inevitable," blaming the White House for being inflexible. Even if a deal can be reached quickly, finalizing details before the March 15th deadline would be difficult, and another temporary extension through April is possible.     Show Me the Money Funding is at the centerpiece of the 10-week farm bill stalemate, with no agreement on how to include a permanent disaster program or how much to increase nutrition spending. Both the House and Senate are now looking at a 10-year farm bill package, using budget techniques to create offsets in later years to pay for conservation, nutrition and fruit and vegetable programs over the life of the bill. An estimated $1 billion in savings could be generated with the inclusion of the Average Crop Revenue (ACR) program, providing more funding under tight budget constraints. However, House packages don’t include this reform-minded safety net program.   Lights, Camera... Action? What's Happening With Energy Bill Implementation So what's next for the energy bill? The rulemaking and implementation process. An important step that ensures what was passed in the bill translates into working programs on the ground. Experts at the Environmental Protection Agency (EPA) and Department of Energy (DOE) will consult with stakeholders across the environmental, energy, transportation, and agriculture communities before publishing draft rules for each component of the bill. However, the process will be informed by two recent studies published in Science that cast doubt on the potential for biofuels to help reduce global warming and will no doubt affect the regulatory process for the new Renewable Fuel Standard—one of the most contentious elements of the energy bill.  The 2007 Energy Bill’s fivefold increase in ethanol production by 2022 reflects Congress’ excitement about ethanol’s promise. To address environmental concerns, the bill includes the Renewable Fuel Standard that requires ethanol— regardless of its source—to achieve at least a 20 percent reduction in greenhouse gases compared with conventional gasoline. "Conservation programs are needed now. In 10 or 20 years it will be too late." Farmers Carry the Farm Bill Message Varel Bailey and Jim Andrew from Iowa, Rich Rominger from California, and Ernie Averett from North Carolina recently carried important AFT farm bill messages to Capitol Hill. In several meetings with Congressional staff, they spoke about the need for increased funding for conservation programs, the Average Crop Revenue safety net, and healthy, local foods. Watch the podcast about their discussions around farm bill negotiations in a very tight budget climate.   Media Update Don't Wait for a Farm Bill Veteran farm bill watcher and ag journalist Jim Wiesmeyer gave Nebraska farmers an update on the farm bill negotiations. The White House and the Senate are several billion dollars apart on the total cost of the next farm bill, but farmers need a bill signed soon, because the federal budget picture is worsening. Wiesmeyer also mentioned the importance of a safety-net to the audience in this Lincoln Journal-Star article. Veto Threat is the Lever on Farm Subsidies A Reuter’s article quotes the Senate’s chief proponent of tightening farm subsidy payments, Chuck Grassley (R-IA), as optimistic that rules on who receives payments and at what levels will be strengthened since the White House has threatened to veto a farm bill without the changes. Second Generation Ethanol Plant Now Online and Fueling Race Cars The first ethanol plant using second-generation cellulosic materials to derive ethanol in the United States has gone online in Wyoming. A joint effort of the South Dakota School of Mines and Techonology and the KL Process Design Group, the facility uses waste wood chips to produce the biofuels. Corvette Racing has announced they’ll be trying cellulosic fuels on the American LeMans Series this year.
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