May 31, 2010
This week’s issue of the AgNews Update is sponsored by The NC Growers Association (NCGA), a non-profit cooperative that consists of approximately 750 North Carolina grower-members who grow a wide variety of diversified crops from flowers, turfgrass, and Christmas trees to tobacco, cucumbers and sweet potatoes. NCGA provides its members a labor force via the H-2a program, which is a legal guestworker program, authorized by the Immigration Reform and Control Act (IRCA) of 1986. H-2a enables farmers to secure a legal and adequate labor force that is available and capable of assisting with the seasonal/temporary manual labor associated with some agricultural crops. In order to utilize the H-2a program, growers must certify with USDOL they have first engage in independent positive recruitment of US workers through the local employment security commission, word of mouth with other growers and by placing ads in newspapers and on the radio, as well as soliciting the return of any former, qualified workers..
International NEWS
Ban on Tobacco Product Ingredients: The WHO Framework Convention on Tobacco Control (FCTC) finally released the guidelines regarding ingredients in tobacco products. The guidelines are very similar to the Canadian C-32 legislation and ban all flavorings and ingredients based on “attractiveness”. Draft guidelines of articles 9 & 10 of the FCTC recommend a ban of ingredients used in the manufacturing of tobacco products. If implemented this would virtually eliminate traditional blended cigarettes, which account for approximately half of the global market. The impact on growers who supply the tobacco varieties used in these products would be dramatic. “These recommendations have been made by bureaucrats, mostly from wealthy countries who know nothing about tobacco growing. Their recommendations could wipe out the livelihoods of millions of tobacco growers all over the world,” said António Abrunhosa, CEO of The International Tobacco Growers Association (ITGA). “For some inexplicable reason, tobacco growers, the very people most affected by the guidelines, are officially excluded from any discussions. Even ministries of agriculture or economy seem unaware of the discussions taking place within the FCTC. There doesn’t seem to be any balanced form of representation whatsoever.”
National NEWS
EPA to Investigate CAFOs: The EPA recently reached a settlement with environmental groups over water pollution concerns. The groups targeted a rule that they alleged allowed runoff of animal waste from thousands of farms into waterways they claimed were protected by the Clean Water Act. As a result of the settlement, EPA will gather information and allow a period of public comment to determine if concentrated animal feeding operations require regulation.
House Ag Committee Hears From Commodity Groups: Asking members of the House Committee on Agriculture to keep the basic structure of the 2008 Farm Bill entact, individuals representing commodity groups and crop insurance industry did suggest making major changes to ACRE and SURE along with other new programs. Commodity representatives asked committee members to keep direct payment and marketing loan options, as well as increasing crop insurance coverage and making premiums more affordable.
House to Vote on Tax Legislation: The House is expected to vote on legislation that contains important tax provisions for farmers and rural America. The legislation, the American Jobs and Closing Tax Loopholes Act, includes provisions for the biodiesel tax credit and incentives to upgrade operations, donate food, and preserve farmland. The House is expected to extend the standard deduction for state and local real property taxes and the deduction of state and local sales taxes.
Legislative NEWS
NC Senate Committee Approves Package to Attract Business: To attract a plant that converts wood pulp to paper, two computer data centers, and an energy turbine manufacturer, the Senate Finance Committee approved a package that would increase tax breaks to lure jobs to NC. If the companies came to NC, they would create more than 1,500 jobs and bring nearly $2 billion in investment. NC could expect to lose about $9 million in taxes next year if the deals go through.
Fuel & Energy NEWS
Ethanol Plant Running Soon: Clean Burn Fuels is in the final stages of testing and expects to be producing 5 million gallons of ethanol a month in July. The factory is located in Hoke County and plans to ultimately employ about 100 employees.
Surry County Ends Chicken-Litter Incinerator Deal: Negotiations with Surry County Board of Commissioners and Fibrowatt LLC have ended. The commissioners voted unanimously to end talks with the company over its plans to build a chicken-litter incinerator near Elkin. In a letter to Fibrowatt, the commissioners said they plan to sell the land to an industry that the community would support.
Recovery Act Funds Support Innovative Energy Projects : Eighteen innovative North Carolina projects, 17 using solar technology and one using landfill gas, will receive a total of about $2.3 million in federal Recovery Act funds to implement energy conservation projects that invest in energy technology, Gov.Perdue announcedthis week. The 18 projects represent $26.3 million in total costs and will generate 31.8 million kWh of electricity annually (enough for 2,610 average homes for a year) or 2.6 billion BTUs (enough to provide hot water to 287 average homes for a year), depending on the specific project.
Business NEWS
General Mills Joins Research Campus: Two General Mills employees will begin work in June at the NC Research Campus. General Mills will focus its research on vegetables and whole grains.
Hired Workers Up, Wages Up: Farmers hired more workers during the week of April 11-17, up 10% from last year, for a total of 997,000 workers. Wages for hired workers averaged $10.83/hour, down 1¢ from last year. Field workers averaged $10.04/hour, up 5¢ from last year, and livestock workers averaged $10.31/hour, up 6¢. The combined wage rate for field/livestock worker was $10.13/hour, up 6¢ from last year. In most regions, hired worker wage rates generally fell below last year.
Yarn Maker Plans Expansion: Frontier Spinning Mills plans to expand its Sanford factory, creating 45 jobs over five years. The Sanford-based yarn company will spend $15.5 million on the expansion.
Campaign NEWS
Marshall Hires Ex-Rival: Ken Lewis will now be working as Elaine Marshall’s campaign chairman. Last week, Lewis endorsed Marshall over her opponent, Cal Cunningham. Lewis finished third in the Democratic primary.
Cunningham Picks Up Endorsement From Neal: Cal Cunningham, a Democratic candidate for Senate, has received the endorsement of Jim Neal. Neal ran for U.S. Senate two years ago and has urged his supporters to vote for Cunningham who will face Elaine Marshall in a runoff on June 22.
NC GOP Backs D'Annunzio's Rival: NC’s five Republican congressional members have given their support to Harold Johnson in the 8th Congressional District GOP primary runoff. Reps. Howard Coble, Sue Myrick, Walter Jones, Virginia Foxx and Patrick McHenry have united in their support of Johnson saying he reflects the party’s conservative values.
NCDA NEWS
NCDA&CS to Treat Gypsy Moth Infestation in Currituck County: NCDA&CS will soon treat a localized gypsy moth infestation in Currituck County in cooperation with the U.S. Forest Service and the Gypsy Moth Slow the Spread Foundation Inc. The treatment is scheduled to occur between June 1 and 5, depending on weather conditions and insect development. The 3,524-acre treatment block, in northeastern Currituck County, is centered roughly between the towns of Corolla and Carova. It includes the northern and southern edges, respectively, of both towns. Mating disruption was determined to be the best option for this treatment block. Prior to the time that adult gypsy moths would normally mate, low-altitude fixed-wing aircraft will apply miniature plastic flakes infused with the naturally occurring gypsy moth pheromone. For maps and a description of the proposed treatment area, go to www.ncagr.com/gypsymoth/ or contact NCDA&CS toll free at (800) 206-9333.
USDA NEWS
Obama to Protect Poultry Competition: During the second of five workshops planned by USDA and the Department of Justice, U.S. Attorney General Eric Holder told poultry producers that the Obama administration means to ‘vigorously’ protect competition in the poultry industry. Holder added that the administration will investigate why producers and farmers are struggling to survive.
USDA Offers Discrimination Settlement: Though the settlement has not been finalized, the Obama administration offered $1.3 billion to settle lawsuits filed by Latino and female farmers who say USDA discriminated against them. Congress is already set to approve a $1.25 billion settlement with African-American farmers over USDA discrimination. A lawyer representing the Latino farmers, who are seeking more money than the other parties, say the settlement will not be enough to end the lawsuits.
Commodity NEWS
New Tobacco Insecticide for Budworms: A new insecticide from DuPont, Coragen insecticide (Rynaxypyr or chloran-traniliprole), has been registered for use in NC tobacco to combat budworms. This is the second Group 28 (ryanodine receptor inhibitor) insecticide to be registered for use in tobacco. Foliar and transplant water applications are labeled. For more info on the product, go to msds.dupont.com/msds/pdfs/EN/PEN_09004a3580515c9c.pdf
China Importing More U.S. Corn: China, the second-largest corn consumer, plans to buy almost 1 million metric tons of corn from the U.S., the largest purchase in 14 years. As the Chinese economy grows, it is expected to import more, leaving the U.S. in a good position to double or triple its sales to China. USDA reported that China bought nearly 600,000 tons of U.S. corn in the past month.
Mark Your Calendar
AgForum with Butterfield: On June 7, the NC Agribusiness Council will host an AgForum with Congressman G.K. Butterfield at the Martin County EDC in Williamston, NC. RSVP required. Seats are limited.
AgDay at the NC Capitol: On June 23 the NC Agribusiness Council will host a series of events for NCAg members in Raleigh. Events include an AgBreakfast with NC House and Senate Agriculture Committee members, an AgLuncheon with Council of State members and a Legislative AgReception at the Governor’s Mansion.
Senate Committee On Agriculture/Environment/Natural Resources will meet on Tuesday, June 1 at 11:00 a.m., 544 Legislative Office Building.
House Committee On Agriculture will meet on Wednesday, June 2 at 12:00 noon, 1228 Legislative Building.
The Agricultural Development and Farmland Preservation Trust Fund Advisory Committee will meet by conference call at 9 a.m. Wednesday, June 2. Members of the public can listen to the call by coming to the Hall of Fame Room at the Agriculture Building, 2 W. Edenton St. The committee will hear an update on projects that the trust fund intends to fund this year. For more info, go to www.ncadfp.org.
Western workshops, “Making Media Work for Your Food Business”, originally scheduled for Aug. 10, will be held Aug. 11 at the Virginia Boone Building at the Western N.C. Ag Center in Fletcher and registration will open July 6th. “The Secrets of Marketing and Selling Success” will be held Nov. 9 and registration will open Oct. 2. Space is limited - register at www.ncagr.gov/markets/agbizmarketing.htm.
Eastern workshops “Making Media Work for Your Food Business” will be held Aug. 17, and “The Secrets of Marketing and Selling Success” will be held Nov. 16 at the Conference Center at the Cunningham Research Station in Kinston. The workshops were previously planned for Carteret Community College’s Small Business Center in Morehead City. Registration will open July 1 for the Aug. 17 event and Oct. 4 for the Nov. 16 workshop. The workshops, hosted by NCDA&CS, will be held from 8:30 a.m. to 4:15 p.m. Each workshop costs $30, which covers materials and lunch. Space is limited - register at www.ncagr.gov/markets/agbizmarketing.htm.