Climate Legislation

Ben Geman reported yesterday at The Hill Online that, “White House climate czar Carol Browner downplayed the idea that the absence of a domestic emissions law would hinder U.S. leverage in Copenhagen and said the U.S. could tout major accomplishments heading into next month’s international climate talks.

“ In wide-ranging remarks at a climate conference in Washington, D.C., Wednesday, she also said President Barack Obama and Chinese President Hu Jintao made substantial progress in their Beijing discussions this week.”

The article added that, “Obama and Hu, according to the White House, reached agreements on a number of areas, including that each country would take ‘significant’ efforts to curb emissions, and that the Copenhagen political accord should include emissions mitigation commitments by developed and developing nations. They also agreed that both nations would stand behind its commitments, among other areas.”

Juliet Eilperin reported in today’s Washington Post that, “The United States and China have agreed to cooperate on developing an inventory of China’s greenhouse gas emissions, the Environmental Protection Agency announced Wednesday, an initiative that appears be a response to criticism of Beijing’s data collection.

“Several senators whose votes are key to passage of domestic climate legislation, including Sen. Evan Bayh (D-Ind.), have questioned whether they will be able to trust any greenhouse gas reductions China reports to the international community. China has surpassed the United States as the world’s largest emitter of greenhouse gases; together they account for roughly 40 percent of the world’s output.”

Meanwhile, the AP reported yesterday that, “National forests can be used as a carbon ‘sink’ with vast numbers of trees absorbing carbon dioxide to help slow global warming, the Forest Service chief said Wednesday, but that goal must be balanced.

“He’s also concerned about the risk of catastrophic wildfires that produce massive amounts of carbon dioxide.

“Forest Service Chief Tom Tidwell said his agency is trying to manage forests to combat climate change while still easing the risk of wildfires that have increased in frequency and intensity, in part because of global warming.”

Andrew Higgins reported in today’s Washington Post that, “Across a patch of pineapples shrouded in smoke, Idris Hadrianyani battled a menace that has left his family sleepless and sick — and has wrought as much damage on the planet as has exhaust from all the cars and trucks in the United States. Against the advancing flames, he waved a hose with a handmade nozzle confected from a plastic soda bottle.

“The lopsided struggle is part of a battle against one of the biggest, and most overlooked, causes of global climate change: a vast and often smoldering layer of coal-black peat that has made Indonesia the world’s third-biggest emitter of greenhouse gases after China and the United States.”

The Post article indicated that, “Amid often-acrimonious debate over how to curb global warming ahead of a critical U.N. conference next month in Copenhagen, ‘peat is the big elephant in the room,’ said Agus Purnomo, head of Indonesia’s National Council on Climate Change. Dealing with it, he said, requires that the world answer a vexing question: How can protection of the environment be made as economically rewarding as its often lucrative destruction?

“Carbon trading was meant to do just that by allowing developing countries that cut their emissions to sell carbon credits. But this and other incentives for conservation developed since a U.N. conference in Kyoto, Japan, in 1997 have done nothing to protect Indonesia’s abused peatlands.”

In opinion regarding climate issues, The Washington Post editorial board noted in today’s paper that, “Climate change was at the top of President Obama’s agenda in China Tuesday, just three weeks before representatives from 192 countries meet in Copenhagen for a much-anticipated international climate conference. And he came tantalizingly close to saying what the rest of the world has been waiting years to hear: that next month the United States, the largest per capita emitter of greenhouse gases, will finally come to the table with a specific carbon reduction target.

“In a news conference after his meeting with Chinese President Hu Jintao, Mr. Obama supported Danish Prime Minister Lars Loekke Rasmussen’s proposal for a far-reaching political agreement at Copenhagen — one that ‘covers all of the issues in the negotiations, and one that has immediate operational effect.’ And the joint statement that Mr. Obama and Mr. Hu released indicated that a Copenhagen agreement, while not legally binding, should ‘include emission reduction targets of developed countries and nationally appropriate mitigation actions of developing countries.’

“The United States is the only developed country that has yet to announce a carbon target, even as developing economies such as Brazil have unveiled mitigation policies. China, meanwhile, has talked of a significant reduction in the carbon intensity of its industry, and Tuesday’s joint statement indicates it might enshrine that in an international agreement — a big step that probably depends on American movement.”

The opinion item added that, “The House has endorsed a 17 percent reduction in carbon emissions from the 2005 level, and the Senate is considering a 20 percent cut. The administration is also moving forward with Environmental Protection Agency regulation that does not require congressional approval. Mr. Obama should be able to produce a number or a range of numbers that reflects the level of emissions reduction the United States can achieve.”

Food Safety

Reuters writer Christopher Doering reported yesterday that, “A U.S. Senate committee voted unanimously on Wednesday to increase government oversight of food safety but the first significant overhaul in 50 years may not happen until 2010.”

The Reuters article explained that, “[T]he full Senate probably won’t vote on the bill until 2010 as Congress is currently mired in debate about overhauling the U.S. healthcare system, said Tom Harkin, chairman of the Senate Health, Education, Labor and Pensions Committee.

“‘I really, honestly, I just don’t see how we’ll get to it before Christmas,’ Harkin said of the food safety bill.

“The Senate bill would expand U.S. Food and Drug Administration (FDA) oversight of the food supply and shift its focus toward preventing, rather than reacting, to foodborne outbreaks. FDA would have the power to order recalls, increase inspection rates and require all facilities to have a food safety plan.”

Mr. Doering noted that, “The Senate bill is similar to legislation passed by the House in July in many key areas. One area where they differ is the Senate bill does not include a yearly fee to help pay for the increased oversight.

“The House would require processing plants to pay $500 per year.

“The Senate version could include a fee once the nonpartisan Congressional Budget Office determines the price tag of the Senate bill, Harkin said.”

Philip Brasher reported yesterday at The Des Moines Register Online that, “The Senate [food safety] bill, unlike the House measure, would not impose fees on processors to pay for the increased inspection and regulation and also would not require companies to trace the origin of ingredients in processed foods.

“But Harkin said the Senate bill ‘comprehensively reforms our current food system yet is adaptable enough to keep pace with an evolving industry,’ Harkin said.”

Bloomberg writer Brian Faler reported yesterday that, “Though the [food safety] legislation was unanimously approved, with Republicans praising the measure, some Democrats said it didn’t go far enough on some issues.

“Senator Sherrod Brown, an Ohio Democrat, said it wouldn’t do enough to ensure the FDA could trace illness outbreaks involving processed foods. Senator Jack Reed, a Rhode Island Democrat, said the measure wouldn’t adequately address the use of antibiotics in livestock, which he said is producing a growing population of antibiotic-resistant viruses.”

U.S. Senators Saxby Chambliss (R-Ga.) and Johnny Isakson (R-Ga.) issued a news release on the food safety development yesterday, as did Sen. Pat Roberts (R-Kansas).

Michael Moss reported in today’s New York Times that, “Citing public concern that meat companies and federal regulators are not doing enough to make ground beef safe, Senator Kirsten Gillibrand, Democrat of New York, has introduced legislation that would require companies to test for a deadly E. coli strain.

“The bill, the E. Coli Eradication Act of 2009, is focused on the slaughterhouse trimmings and other meat components commonly used to make ground beef. It would require testing at the slaughterhouses and then at grinding facilities before the trimmings are mixed.”

Food Security

Bloomberg writer Karl Maier reported yesterday that, “World governments pledged a renewed effort to halve world hunger by 2015 at a United-Nations backed summit that even the host said failed to produce concrete measures to achieve the goal.

“‘This declaration does not contain any quantified objective nor any precise deadline which would have made it possible to better track its implementation,’ Jacques Diouf, director general of the UN’s Food and Agriculture Organization, said at the closing of the three-day meeting in Rome.

“The document promises no new financial commitments and says governments will ‘reinforce all our efforts’ to halve hunger within five years, a goal first aired at a food summit in 1996. The number of hungry has risen by 140 million to more than 1 billion since FAO’s previous summit last year, which coincided with record food prices and produced aid pledges of $11 billion.”

Trade

With respect to the Doha Round of WTO trade talks, Reuters news reported yesterday that, “Some of U.S. President Barack Obama’s fellow Democrats urged him on Wednesday to abandon the Doha round of global trade talks and start over with an agenda to protect labor rights and environmental standards.

“‘We believe the Doha round should be declared dead,’ Representative Michael Michaud, the chairman of a working group of U.S. lawmakers on trade issues, said at a news conference.”

The article added that, “Michaud said that 127 fellow lawmakers — close to half the U.S. House of Representatives’ Democratic caucus — had joined him in co-sponsoring legislation to require a comprehensive review of the economic impact of existing trade deals before any new ones are agreed.

“The administration should start trying to reshape the World Trade Organization instead of expanding it next week at a three-day WTO ministerial conference in Geneva, the lawmakers said.”

Meanwhile, Sam Youngman reported yesterday at The Hill Online that, “President Barack Obama said Tuesday he’ll work to win congressional approval of a controversial trade deal with South Korea in 2010.

“Obama told Fox News Channel’s Major Garrett that ‘I want to get the deal done.’”

Biofuels

Steven Mufson reported yesterday at The Washington Post Online that, “The nation’s largest producer of corn-based ethanol said it has slashed the cost of producing cellulosic ethanol from corn cobs and that it will be able to compete with gasoline in two years.

“POET, which currently produces 1.5 billion gallons a year of ethanol from corn, said its one-year old pilot plant has reduced the cost of making ethanol from corn cobs from $4.13 a gallon to $2.35 a gallon by cutting capital costs and using an improved ‘cocktail’ of enzymes.

“Moreover the company said that it can use a byproduct called lignin as fuel and that it would provide all the energy needed for the cellulosic plant as well as 80 percent of the energy that would be needed by a conventional corn-based distillery making twice the amount of ethanol.

“‘Two years ago I would have told you this was a long shot,’ said POET chief executive Jeff Broin. ‘Now I’ll tell you that we will produce cellulosic ethanol commercially in two years.’”

Meanwhile, the USDA’s Economic Research Service (ERS) issued a report yesterday titled, “Ethanol and a Changing Agricultural Landscape.”

An ERS summary of the report stated in part that, “The Energy Independence and Security Act (EISA) of 2007 established specific targets for the production of biofuel in the United States. Until advanced technologies become commercially viable, meeting these targets will increase demand for traditional agricultural commodities used to produce ethanol, resulting in land-use, production, and price changes throughout the farm sector. This report summarizes the estimated effects of meeting the EISA targets for 2015 on regional agricultural production and the environment. Meeting EISA targets for ethanol production is estimated to expand U.S. cropped acreage by nearly 5 million acres by 2015, an increase of 1.6 percent over what would otherwise be expected.”

For a look at other recent issues regarding biofuels see, “Biofuel Policies on the Table in December,” which was posted yesterday by Chris Clayton at the DTN Ag Policy Blog.

Animal Agriculture

Sarah Muirhead reported earlier this week at Feedstuffs Online that, “The science is in, and it shows that controlled-atmosphere stunning (CAS) offers no significant welfare advantage over conventional low-voltage electrical stunning in the commercial processing of chickens.

“Behind the first-ever evaluation of CAS at the commercial level are McDonald’s Corp. and two of its chicken suppliers: Tyson Foods Inc. and Keystone Foods LLC.

“CAS uses a gas such as carbon dioxide to render chickens and other poultry unconscious and insensible to pain prior to slaughter. The conventional technique U.S. poultry processors employ uses low-level electrical stunning to do the same thing.”

The article added that, “The two-part study looked specifically at the pros and cons of each stunning method at the commercial level, said Todd Bacon, U.S. quality systems for McDonald’s U.S. supply chain.”

Meanwhile, the AP reported today that, “Are cramped chickens crazy chickens?

“Researchers are trying to answer that question through several studies that intend to take emotions out of an angry debate between animal welfare groups and producers.

“At issue are small cages, typically 24 inches wide by 25 1/2 inches deep, that can be shared by up to nine hens. About 96 percent of eggs sold in the United States come from hens who live in the so-called battery cages from the day they’re born until their egg-laying days end 18 to 24 months later.”

The article stated that, “‘Is this animal cruelty? This absolutely is not,’ said Bob Krouse, an egg producer based in Mentone, Ind., and president of the United Egg Producers industry group.

“Or as K.Y. Hendrix, owner of Rose Acres Farms in Seymour, Ind., puts it, ‘We can produce a better egg, produce a healthier chicken if we keep them inside.’”

CFTC Issues

Reuters writer Charles Abbott reported yesterday that, “The Senate Agriculture Committee chairman said on Wednesday she intends to draft legislation ‘that will bring much-needed transparency and accountability to the over-the-counter derivatives market.’

“Chairman Blanche Lincoln outlined her plan during a hearing on proposals to bring the $450 trillion market in OTC derivatives under federal regulation. Last week, the Senate Banking Committee chairman unveiled a panoramic reform of financial regulation, including derivatives.”

The Reuters article added that, “The Republican leader on the committee, Saxby Chambliss, said some regulatory changes are necessary and called for more reporting of trade data as part of more transparency in the now ‘dark’ market.”

DTN Political Correspondent Jerry Hagstrom reported yesterday (link requires subscription) that, “The chairmen of the U.S. Senate Budget and Agriculture committees said Wednesday they oppose the Federal Reserve Board becoming a regulator for the futures industry.

“Budget Chairman Kent Conrad, D-N.D., said at a Senate Agriculture Committee hearing that he would oppose proposals to make the Fed a regulator of futures and derivatives markets.

“‘It is critically important to commodities that the regulator understand commodities,’ Conrad told Commodity Futures Trading Commission Chairman Gary Gensler.”

(Note: To listen to part of the comments made by Sen. Conrad at yesterday’s hearing, click on this FarmPolicy.com audio link (MP3-5:29)).

Mr. Hagstrom added that, “Agriculture Committee Chairman Blanche Lincoln, D-Ark., added that she ‘echoed’ Conrad’s position. If the proposal were to move forward, exchanges like the Chicago Mercantile Exchange, the Kansas City Board of Trade and the Minneapolis Grain Exchange could be regulated by the Fed as well as by the CFTC.

“The comments made by Conrad and Lincoln were similar to those made Tuesday on the House side by House Agriculture Committee Chairman Collin Peterson, D-Minn.”

(Note: Nebraska GOP Senator and former Agriculture Secretary Mike Johanns also participated in yesterday’s hearing, to listen to some of his comments, click on this FarmPolicy.com audio link (MP3-7:40)).

Keith Good