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June 1, 2001

Under the current farm bill, in order to be eligible for LDPs, the producer needed to sign a PFC during the enrollment period. There was no provision to enroll land at a later date. The Agricultural Risk Protection Act of 2000 amended the farm bill to provide LDPs to producers who produced a 2000 crop contract commodity on a farm not covered by a PFC. This was only for the 2000 crop year.

Congress is expected to address the issue in July, but no legislation has been introduced. Farm Bureau is currently working to locate a sponsor to introduce legislation to make all producers of program crops eligible for LDPs regardless of whether the producer has a PFC. In the long term, the American Farm Bureau Federation Board has approved this as part of their recommendations for the next farm bill.
Source: USDA Release/AFBF Speedline, May 16, 2001

Farm program field hearings to be held

House Agriculture General Farm Commodities Subcommittee Chairman Saxby Chambliss (R-GA) has announced a series of field hearings to provide producers from around the country an opportunity to discuss in- depth how individual farm programs affect them.

Expanding on last year's series of full committee hearings in rural communities, the General Farm Commodities Subcommittee hearings in June will explore the structure of loan rates, aspects of continuing the current transition payments, the trigger mechanisms for counter-cyclical income support, as well as other farm bill components.

The purpose of the hearings, according to Chambliss, is to improve on proposals and existing programs as Congress moves to complete the re-authorization of the farm bill in Chairman Larry Combest's time frame.

The full House Agriculture Committee has been setting the stage for the new farm bill for the last two years, beginning with a series of field hearings on general farm policy, followed by a comprehensive look at farm policy proposals from 15 commodity groups. House Agriculture Committee Chairman Combest (R-Texas) anticipates writing an entire farm bill by early August, to make the agricultural legislation available for House consideration in September.
Source: AFBF Speedline, May 2001

USDA pledges to fix price reporting glitches
U.S. Agriculture Department officials have said that problems with the mandatory price reporting system for livestock have been fixed and revisions in the reports will be issued soon.

"The system has now been fixed, well at least that's what I have been told," said Agriculture Secretary Ann Veneman. "We are very concerned about it and want to make sure we don't have any other issues with this mandatory price reporting system."

USDA chief economist, Keith Collins recently said the agency would reissue the correct livestock prices "within days."

The mandatory price reporting system, which went into effect on April 2, requires large packers to report to USDA the transaction details involving purchases and sales of livestock, boxed beef, boxed lamb and lamb carcasses.

Veneman would not directly answer reporters' questions regarding compensation for industry losses that resulted from the technical glitches.

"We are still addressing the issues of what the losses may have been," Veneman said. "I don't even know if (compensation) is an option."
Source: AFBF Executive Newswatch, May 22, 2001


Diesel rule compliance could diminish supply
A recent report by the Energy Information Administration (EIA), Department of Energy, states that compliance with the Environmental Protection Agency's rule calling for low-sulfur diesel fuel to be produced will cause the diesel market to tighten and costs to refiners to rise as much as 6.8 cents per gallon in 2006.

Short-term costs to the refining industry by the 2006 implementation date will cause the production costs of on-highway diesel fuel to be 5.4 to 6.8 cents per gallon higher than they would be without the rule. A total of 1.1 cents per gallon can be added to the cost estimates to obtain the price-at-the pump expected increases due to the rule.

EIA's long-term cost analysis for 2008 to 2011 expects the cost to range between 8.4 cents to 10.7 cents per gallon.

The final rule, which would cut sulfur in highway diesel fuel by 97 percent, was published Jan. 18, two days before the end of the Clinton administration, with an effective date of March 19. After a review by the Bush administration, however, EPA decided on Feb. 28 not to delay the rule's implementation date.

The rule will require the sulfur content of diesel fuel to be reduced from its current level of 500 parts per million to 15 ppm. Engine makers will be requied to install effective, modern, pollution-control technology on trucks and buses.
Source: PPB-Speedline, May 10, 2001