Utah Agriculture Advisory Board Minutes

MINUTES

Utah Agriculture Advisory Board Minutes

Utah Department of Agriculture and Food

April 12, 2016 @ 1:00 p.m.

Attendees:

LuAnn Adams, Commissioner UDAFKathleen Mathews, UDAF

Kent Bushman, Farmers UnionScott Ericson, UDAF

Ron Gibson. Farm BureauJohn Hilton, USDA Statistics

Bob Barry, UACDRandy Parker, Farm Bureau

Jared Gaetz, Food Mfg.Robert Hougaard, UDAF

Brent Tanner, CattlemensWeston Judd, UDAF

Allison Fiscus, Pork ProducersKaren Rhynsburger, UDAF

Matt Bartlet, President Utah Horse CouncilAndy Perucci, UDAF

Rusty Bastian, Redmond MineralsWayne Bradshaw, UDAF

Tonia Fuller, President Utah WoolgrowersCody James, UDAF

Robert McMullin, Fruit Growers Assoc.Travis Waller, UDAF

Ron Stratford, Dairy ProducersBrad Westwood, Utah State History

Scott Robins, Livestock AuctionBrent Handy, FBI

Marilyn AlbertsonThayne Mickelson, UDAF

Ex OfficioRoberta Valdez, UDAF

Ken White, Dean, College of Ag – USUJenn Harrison, Dairy Council

Brent Chuggs, LDS ChurchJoy Phillips, Dairy Council

Mark Gibbons, FSADanny McDowell, Urban Farmer

Chris Falco, Fur BreedersLindsey Usser, White Lake Farms

Sarah Buttars

Dave Brown

Kent Bushman conducted the meeting and welcomed everyone. Kent excused Cliff Lillywhite.

Commissioner Adams commented on her recent trip to Vietnam for a Trade Mission. The trip was invaluable. A gentleman traveled all day so he could meet with Commissioner Adams to discuss the export of Brine Shrimp from the Great Salt Lake. Commissioner Adams discovered that there are opportunities for dairy, powder milk, dairy cows (better genetics), hay, turkeys, powdered eggs, beef, lamb, real salt and processed foods. Seventy percent of the people in Vietnam are 40 years old and younger. They are hungry for Utah products. They feel that our products are safe. We need to keep working on getting our products in Vietnam.

Approval of Minutes

A motion was made to approve the minutes by Ron Gibson. The motion was seconded by Rusty Bastianand unanimously passed.

2016 Legislature Update

General Pay Increase

2% general pay increase

7.3 increase for health benefits

Up to $26/pay period 401k match

Budget Increases

Elk Program - $75,000 in ongoing funding

Weights and Measure Testing Equipment - $130,000 in dedicated credits

Conservation Projects - $500,000 in one-time funding received from ARDL

Conservation Employees - $3000,000 in ongoing funding from ARDL and $200,000 in

One-time funding from ARDL

Utah’s Own Program - $100,000 in one-time funding

New Building Planning - $250,000 in one-time funding

House Bills

HB211- Agriculture Exemption Amendment. It amends the duties of the state veterinarian to say the state veterinarian shall coordinated rather than direct; modifies definitions; enacts provisions related to minimum requirements for enclosures and fences for bison; and makes technical changes.

HB 213 – Agricultural Modifications. It amends the composition of the Agricultural Advisory Board; amends the composition of the Utah Horse Racing Commission; repeals the Pesticide Committee; amends the functions and duties of the Conservation Commission; amends the composition of the Domesticated Elk Act Advisory Council; and makes technical changes.

HB314 – Bedding, Upholstered Furniture and Quilted Clothing Inspection Act Amendments – This was one of our cleanup bills. It amends definitions; amends licensing provisions; amends provisions relating to unlawful acts; amends tagging requirements; and requires the sterilization of certain materials.

HB309 – Sale and Use Tax Earmark Amendments – This bill repeals certain earmarks of the state sales and use tax. If passed in its present state, ARDL will not be funded. UDAF agrees with the principle behind the bill but is concerned because it does not have a mechanism to fund ARDL. One million dollarshas been recommended to be appropriated by the sub-appropriations committee from ARDL to pay for Conservation District employees and projects, if ARDL is no longer funded, they there will be long term problems with employee and project funding. This bill did not pass committee.

HB 464- Public Lands Wildfire Study – The Public Lands Wildfire Study bill requires the Conservation Commission within UDAF to work with Utah State University and certain conservation districts to: complete a study and economic analysis of certain issues regarding wildfires on public lands within Utah, including the impact of wildfires on the state’s watershed and air quality; and report to the Legislature’s Commission for the Stewardship of Public Lands, and allows the Conservation Commission to contract with another state agency or private entity to complete the required study and economic analysis.

HJRS01- Proposal to Amend Utah Constitution – Right to Food – This Joint Resolution proposed to amend the Utah Constitution to establish a right relating to growing or acquiring farm-produced food. This Constitutional Amendment could require the State to guarantee and provide access to food. This bill was held in the House Natural Resources, Agriculture and Environment committee.

HB144 Food Freedom Act – The Food Freedom Act removes all state, county and city regulations, licensing and labeling requirements for food products sold direct to the “informed end consumer.” This includes diary, processed foods, and some poultry products. This bill was held in Committee and recommended for interim study.

HB115 and HB315 – Beekeeping Bills - HB115 makes the registration of beehives optional. HB315 changes the registration requirements for commercial beekeepers, creates a registration time period for new and renewal registrations and describes a process for moving an apiary. This bill was held in the House Natural Resources, Agriculture and Environment committee.

SB80- Infrastructure Funding Amendments – This bill provides that certain sales and use tax revenue that was deposited into the Transportation Fund shall be deposited into the Water Infrastructure Restricted Account; provides that a certain amount of revenue shall annually be transferred from the Transportation Fund of 2005 to the Transportation Fund; and makes technical changes

SB44 – Construction Code Amendments – Expands an exemption from permit requirements for structures that are used for certain agricultural purposed, such as fruit stands.

SB89 – Medial Cannabidiol Amendments – This bill allows an individual with a qualifying illness who registers with the state electronic verification system to: possess and use cannabidiol under certain circumstances. It directs UDAF to issue licenses to cannabidiol production and processing facilities. It also directs UDAF to make rules regarding the transportation of cannabidiol. In other states where medical marijuana is legal, it has become the most time and resources consuming program for each State Department of Agriculture. This bill did not pass due to lack of funding.

SB44 – Construction Code Amendments – Expands an exemption on permit requirements for structures that are used for certain agricultural purposes, such as fruit stands.

SB73 – Medical Cannabis Act – This bill allows individuals with a qualifying illness, who registers with the Department of Health: to possess and use cannabis, cannabis products, or a medical cannabis device. UDAF is to license and inspect cultivation and processing facilities and cannabis testing laboratories. In other states where medical marijuana is legal, it has become the most time and resource consuming program for each State Department of Agriculture. This bill did not pass out of the House Health and Human Services Committee.

SB144 – Dean Domestic Animal Disposal Amendments – This bill allows the owner of a dead bird to bury the dead bird on the owner’s property.

SB173- State Fair Park Revisions – This bill modifies the State Fair Board, ensures that the State Fair stays at its current location, reaffirms the importance of agriculture to the State Fair and gives the legislature more oversight.

Rules Presentation – Melissa Ure

R52-7 Horse Racing – Changes are made to allow the issuing of a three year licenses. Previously licenses were issued each year. A motion to approve the rules was made by Tonia Fuller. The motion was seconded by Scott Robin and unanimously carried.

R68-12 Quarantine Pertaining to Mint Wilt – Proposal is to revoke this rule placing quarantine on Mint. The quarantine was put into place to protect the root stock from being infected by verticillium dahlia. The mint growers in the state no longer believe the quarantine is necessary. Upon review by the department, it is believed that revocation of the quarantine will not increase the risk to mint or other crops. A motion to approve the revoking of the quarantine was approved by Tonia Fuller. The motion was seconded by Ron Gibson and unanimously carried.

R70-370 Butter - There have been some changes to the CFR referenced in this rule. The changes lead to the references regarding the regulations on butter found in the rule to be incorrect. We are updating the references. Motion to approve the changes was made by Marilyn Albertson. The motion was seconded by Rusty Bastian and unanimously carried.

R70-380 Grade A Condensed and Dry Milk Products and Condensed and Dry Whey – The ordinance adopted by reference has changed since the rule adopted it in 1995. Further, the ordinance is no longer referenced by that name. The changes updated the information to the proper name and year. A motion to accept changes was made by Ron Gibson. The motion was seconded by Marilyn Albertson and unanimously carried.

R70-550 Utah Inland Shellfish Safety Program – The rule referenced the wrong Model Ordinance and needed to be updated to the current version of the Shellfish Sanitation Program.

A motion to accept changes were made by Ron Stratford. The motion was seconded by Tonia Fuller and unanimously carried.

Loan Report – Roberta Valdez

Please see attached handout

A motion was made to approve the loans by Rusty Bastian. The motion was seconded by Marilyn Albertson and unanimously carried.

Explanation of the Loan Committee – Rob Hougaard

The code requires the Ag Advisory Board to approve all loans, renewal, methods of repayment, and interest rates for Rural Rehab Loans. In the past a committee was formed that approved the loans and at the Ag Advisory Boards meetings, the loans were ratified. Rob said we have been informed by the Attorney General’s Office that loans need to be approved by the Ag Advisory Board during a public meeting. We propose that the Ag Advisory Board schedule a monthly conference call on the 2nd Tuesday of every month at 1:00 p.m. to approve or disapprove the loans. Information will be sent a week in advance to Board Members. Votes will be taken at that time over the phone in an open and public meeting.

Rob will present policies approved by the Attorney General’s Office at the next Ag Advisory Board Meeting.

Scott commented that public dollars are being used and by law a public body in an open meeting has to approve the loans. In the past a group of four individuals was making the decision to fund the loans in a closed meeting and then sign the loans. It puts the Department and Loan Program in precarious situation because they were trying to expedite the process. We are putting together good policies that can be ready at anelectronic meeting. The work can still go forward and the Board would be able to comply with the statutory requirements. If we decide over the course of the year that it is unreasonable to have the Board meeting telephonically every month to approve the loans, we will need to change the statute to make themodification. The loans will not be signed until the Board meets and approve the loans.

It was suggested to have a telephonic meeting the second Tuesday of every month at 1:00 p.m.

A motion was made to have a telephonic meeting the second Tuesday of every month at 1:00 p.m. to address any loan issues by Matt Bartlett. The motion was seconded by Ron Stratford and unanimously passed.

Scott asked the Board when the email is sent regarding the telephonic meeting to reply via email whether or not they will be in attendance in order to make sure we have a quorum.

FSMA (Food Safety Modernization Act) – Travis Waller

The Food Safety Modernization was passed by Congress and signed into law in 2011. The FDA has been working the past five years to implement FSMA. The FDA has implemented parts of FSMA; preventative controls were implemented September 2015 along with the produce safetyrulesthat were implemented November 27, 2015. Recently FDA approached the States regarding grant opportunities for regulating the produce industry. (Handout of overview attached)

Agriculture Magazine – Commissioner Adam

A few years ago UDAF put out the Ag Magazine. Commissioner Adams asked for feedback. The magazine is asking for an endorsement from Commissioner Adams.

The discussion regarding the magazine was that the commodity groups felt costs were significantly higher for what they got, and that they could do a better job with a lot less money. They also felt harassed from the magazine. It was suggested to have a joint venture with the different commodity groups.

Round Table Report

Mark Gibbons – FSA has loaned out over 32 million dollars. They are starting to run out of funds. Last year they had over 65 million in loans. With the farm programs they paid out 40 million dollars. With the Farm Programs and Farm Loan Program they have paid out over 105 million dollars. Agriculture is an important industry to the State of Utah.

Allison Fiscus – Pork Forum was held March, 2016 in Indianapolis. There is a lawsuit with USDA and NPTC regarding Pork the other white meat logo and the pork pig. There is discussion regarding WOTUS and the TPP. Our next meeting will be Friday, July 8, 2016. The National Pork Board has a new pork safety program that will be rolled out to help producers.

Sarah Buttars – Western Ag Credit has been in a low interest environment which has helped producers, but it has started to change. Customers are doing well. March was Western Ag Credit biggest months. In Utah we have over 656 million loaned out; total amount of Western Ag Credits portfolio is 792 million dollars. They expect to see increases in their portfolio. Western Ag Credit only loans to agriculture. They are also seeing younger producers taking over their families operation.

Marilyn Albertson – High prices are hard on consumers. USU Extension continues Food Sense and educational programs to help low income households provide good nutrition for their families with limited dollars. We are encouraging everyone to have gardens.

Ron Stratford – Spring is here and dairymen are glad to get out in the fields. We have had run off issues but we are dealing with them. The number of dairy farms in the U.S is around 42,000 farms, which is down 10,000 from four years ago.

Matt Bartlett- Salt Lake County announced they are looking at potentially closing the Salt Lake County Equestrian Park and are looking at four different options. There will be a Town Hall Meeting on the April 25, 2016, Matt would like everyone to attend and speak up for agriculture. Utah and Hawaii are the only states that don’t have pari-mutual betting. There is agroup being organized to lobby the legislature for pari-mutual betting, anyone interested contact Matt. The racing industry had improved substantially with the opening of Wyoming Downs, but they are holding less race dates this year, which is harmful to the horsemen in Utah. The big hurdle for pari-mutual racing is the treaty with the Indian Nations. If pari-mutual betting was legalized in Utah, the Indians could have casinos in Utah.

Chris Falco – The market is still down in the fur industry. Denmark had a break out of a serious disease so it will reduce the amount of mink that will be raised.

Dave Brown – NRCS Fiscal Year 16 is in process. The application process has closed, and they are in the ranking and selection process and moving ahead to finalizing conservation plansand contracts with selected producers to get the financial assistance in their hands. There is one special initiative remaining on soil health with open enrollment until Friday with just a little under a million dollars available. In March there was a Soil Health Conference where over 400 individuals attended. We will promote soil health over the next year.

Tonia Fuller – The sheep industry is busy. There is a shortage of shearers. In March the Wool Growers went to Washington D.C. to meet with their Senators and Representatives. There has been a backlog of getting H2A visas approved for sheep shearers and herders. They also met with BLM and the Forest Service regarding public grazing. Japan is going to open lamb imports. There will be lower prices this fall. Wool prices have been low but expected to rise.

Dr. Ken White – Graduation season - There is a record number of graduates. The first class of students from the School of Veterinarians will graduate this year. There are a lot of changes with President Albrect stepping down as President of USU.