Apple holdings and other top headlines

Waiting for the USDA AMS to restart the pilot program for apple slices, the apple industry could certainly use the help. Meanwhile, the U.S. Apple Association released the storage numbers for February 1, and the highlights are listed below.


From the U.S. Apple Association:

January movement of fresh and processing apples was 7 percent above the same month last year and 14.4 percent higher than the past five-year average in January.

U.S. fresh-market apple holdings of 74.8 million bushels on Feb. 1, 2009, reflect a 16 percent decrease from January and a 26 percent increase over February 2008.

The total number of apples in storage on Feb. 1 was 104 million bushels, 16 percent less than last month, 15 percent more than last February’s total and 10.6 percent higher than the five-year average of 94 million bushels.



TK: One market source in Washington said smaller sizes have tended lower over the past several weeks, with reds and golden delicious 125s trading at near $10-12 per carton. With a 110 million box fresh crop in Washington this year, shippers will concede lower prices on the smaller fruit but hope to hold on to profitability for larger fruit. Diversions to processing are fairly heavy.


Other headlines snatched from the Web this afternoon:

Consumer credit fall more than expected in December From AP
The Federal Reserve said Friday that consumer borrowing dropped at an annual rate of 3.1 percent in December. The $6.6 billion decline was nearly double what analysts expected. It followed an $11 billion drop in November that was the biggest monthly plunge on records going back to 1943.

Obama vows to turn to housing crisis From LA Times
As Congress prepares to pass his economic rescue plan, President Barack Obama today promised to turn immediately to the housing crisis, saying he would soon offer more details on how to address "the root of our economic challenges."


Congress readies for final vote on stimulus package AP


Fresh food a must Calgary Herald

Harkin: Highlights of stimulus

From the office of Sen. Tom Harkin:



Senator Tom Harkin (D-IA) today said the economic recovery package expected to pass Congress today contains key provisions that will direct crucial funding toward rural development, nutrition and conservation initiatives, many of which were included in the farm bill. Harkin is Chairman of the Senate Committee on Agriculture, Nutrition and Forestry.

“The economic downturn has cut across all sectors of our country, further straining the rural and agriculture economies and increasing food insecurity,” said Harkin. “This bill sends urgently needed aid to these targeted communities, and it comes in the form of grants and loans and services like broadband. At the same time, it creates jobs and puts food into the hands of those who need it most – one of the best economic stimulators.”

Rural Development Highlights

“From increasing loans to rural businesses to ensuring broadband coverage, this economic recovery package connects rural America with the services residents’ need, while at the same time, creates jobs,” said Harkin.

Broadband: $2.5 billion for grants, loans and guarantees through the Rural Utility Service, to provide improved broadband availability in rural areas.

Rural Water and Waste Disposal Loans and Grants: $1.38 billion to support $968 million in grants and $2.8 billion in loans to eliminate the approved application backlog.

Agricultural Research Service Building Improvements: $176 million in funding to address the deferred maintenance of the ARS’s aging laboratory and research infrastructure. Funding from this provision could be used to address the over $20 million in improvement need at the Animal Disease Lab in Ames, Iowa.

Rural Housing Assistance: $200 million to support $11.4 billion in direct and guaranteed loans that will provide home ownership opportunities for low to moderate-income families in rural areas.

Rural Community Facility Program for towns of under 20,000: $130 million to support $1.17 billion in loans and $67 million in grants with an emphasis on day care and elder care facilities, hospitals, health clinics and public safety.

Business & Industry Loan Guarantee Program: $150 million to support $3 billion in guarantees and $20 million in related grants particularly important for many businesses facing credit difficulties. These loans and grants will help bolster the existing credit structure to improve, develop, or finance business, industry, and employment to improve the economic climate in rural communities of fewer than 50,000 people.

Food and Nutrition Highlights

“Food insecurity is rising, but this package supports some of our most vulnerable communities. And we know that one of the best economic stimulators is food aid,” said Harkin.

The Emergency Food Assistance Program (TEFAP): $150 million to help supplement the diets of low-income individuals, including elderly people, through foods provided at food banks, community food pantries and soup kitchens and shelters.

Women, Infants and Children Program: $400 million in added funding to help meet the need for supplemental foods, health care referrals, and nutrition education for low-income pregnant, breastfeeding, and non-breastfeeding postpartum women, and to infants and children up to age five who are found to be at nutritional risk.

Supplemental Nutrition Assistance Program (SNAP). To help families obtain food, the bill provides a temporary increase in food assistance benefits provided through the Supplemental Nutrition Assistance Program, benefitting 31 million Americans.


Conservation Highlights

“The work to clear debris can be substantial, but this effort puts real money in the pockets of farmers who will spend it locally and will help create well-paying construction jobs in rural areas. The funding has the additional cost benefit of taking land highly susceptible to floods out of crop production. It is also particularly helpful for Iowa producers still reeling from Midwest floods,” said Harkin.
Watershed Flood and Prevention Operations: $290 million was provided for this program, with $145 million set aside for the purchase and restoration of floodplains. The floodplain easement funding is particularly important to Iowa, which has an existing backlog of floodplain easements.

DeLauro: audit FDA oversight of state inspection contracts

From the office of Rep. Rosa DeLauro

Congresswoman Rosa L. DeLauro (Conn. -3), in a letter to the Inspector General at the Department of Health and Human Services, called for an audit of the Food and Drug Administration’s oversight of state inspection contracts. The recent salmonella outbreak involving peanut butter has raised serious questions about whether the agency is effectively overseeing its state contracts. While in 2007 and 2008 the FDA noted that the regional office in charge of the plant in Blakely, Georgia, which appears to be at the center of the outbreak, met or exceeded the minimum audit rate as required, FDA inspections after the outbreak was underway found more serious problems.

“I am very concerned that the recent salmonella outbreak involving peanut butter products has exposed a continuing problem at the FDA regarding oversight of the agency’s state inspection contracts. This is a weakness at FDA that the Inspector General’s office at the Department of Health and Human Services first reported on in June 2000.” DeLauro writes in the letter.

“It is imperative that your office conduct an updated audit to determine whether the FDA is overseeing its state contracts adequately,” the letter continues. “It is critical that we obtain this information in a new audit so that measures could be taken to prevent another major food-borne illness outbreak.”

Below is the text of the letter.

February 13, 2009

Daniel R. Levinson

Inspector General

Office of Inspector General
U.S. Department of Health and Human Services
Room 5541 Cohen Building
330 Independence Avenue, S.W.
Washington, D.C. 20201

Dear General Levinson:

I am very concerned that the recent salmonella outbreak involving peanut butter products has exposed a continuing problem at the Food and Drug Administration (FDA) regarding oversight of the agency’s state inspection contracts. This is a weakness at FDA that the Inspector General’s office at the Department of Health and Human Services first reported on in June 2000. I strongly urge your office to perform an updated audit to the June 2000 report to determine whether the FDA has improved upon its performance and has followed through with the list of recommendations that were outlined by the IG in 2000.

In the June 2000 report, the HHS Inspector General’s office concluded that the Food and Drug Administration (FDA) failed to oversee its state inspection contracts vigorously. Specifically, the IG found that the FDA audits very few state inspection contracts, and that 14 of its 17 regional offices had no formal criteria for reviewing states’ performance.

During its investigation into the salmonella outbreak, the FDA indicated that the yearly minimum audit rate for the food contract program is seven percent of the number of contract inspections found in the contract. The implementation of this requirement is conducted through both contract audits and joint inspections. For 2007 and 2008, FDA noted that the regional office in charge of the plant in Blakely, Georgia that reportedly is the center of the outbreak, met or exceeded the minimum audit rate as required.

There appeared to be a problem with the oversight of this particular contract because of the failure of these inspections to uncover glaring unsanitary conditions that were discovered later after the salmonella outbreak. Given the varying standards of inspection programs across the country, it is probable that there are other states with similar situations.

This is why it is imperative that your office conduct an updated audit to determine whether the FDA is overseeing its state contracts adequately. If you move forward with this audit, I urge that your updated report include the following:

· An audit of all human food and animal feed safety inspection contracts that FDA has with state agencies for the past five years.

· A detailed outline of the services the state agencies provided to the FDA.

· An assessment of the quality and timeliness of information provided to FDA by the state agencies.

· An assessment of how FDA headquarters personnel used the information transmitted by state agencies.

· An assessment of FDA’s information technology capability to collect information transmitted by state agencies.

· An assessment of the training provided by FDA to state agencies tasked with inspections.

· An assessment of the performance audits conducted by FDA of the state agencies with which the agency contracted and an estimate of the percentage of inspections that the FDA conducts jointly with state agencies to oversee the state’s ability to enforce FDA food safety standards.

· In the June 2000 report, the IG stated that the FDA did not use risk-based inspection guidelines on state inspections for which the agency contracts. This new audit should examine whether the FDA began implementing risk-based inspection guidelines subsequent to the IG report.

It is critical that we obtain this information in a new audit so that measures could be taken to prevent another major food-borne illness outbreak. Thank you very much for your consideration of this request.

Sincerely,

ROSA L. DeLAURO

Chairwoman

House Appropriations Subcommittee on Agriculture
Rural Development, Food and Drug Administration,

and Related Agencies

Bittersweet - Philpott will be missed

From the inbox this morning, news that Amy Philpott has found a new opportunity in crisis communication at a DC public relations firm. From Amy's note:

After nearly five years at United Fresh, I am leaving to pursue a career more focused on crisis communications and issue management - two areas of public communications that I am particularly interested in. As you may know, last May I earned a master’s degree in public communications, while working full-time. During my studies and through my experience here at United Fresh, I have realized that I would like to focus professionally on issues management and crisis communications, and will be able to devote myself to these areas in my new position with Watson & Mulhern, a D.C. public relations agency that specializes in crisis communications and issue management for the food and agricultural industries.

While I am very sad indeed to leave the United Fresh team, I am grateful for the opportunity to have worked at United Fresh and with such a wonderful group of employees and industry members.

TK: Amy has been the type of person who answers the phone with a smile in her voice. She has been an outstanding asset for United and I am sure she will do tremendously well with her new opportunity. Meanwhile, United's institutional knowledge has taken a big hit but the staff there - including communications point person Patrick Delaney - is more than capable to rise to the challenge.

Fresh produce can send you to the doctor

From Science Daily, a story that points the finger at fresh produce as an increasing source of foodborne illness outbreaks. No earth shattering news in this story, but it draws from an international perspective. From the piece:

In Europe, recent outbreaks have revealed new and unexplained links between some bacterias and viruses that cause food poisoning and imported baby corn, lettuces, and even raspberries. In the USA, recent outbreaks of E Coli infections have been linked to bagged baby spinach, and Salmonella to peppers, imported cantaloupe melons and tomatoes as well.

Other headlines snatched from the Web:

Ecuador rejects EU call to drop banana suit Reuters

USDA: Farm income to drop 20% in 2009 From Reuters
Net farm income will remain 9 percent above the 10-year average, USDA said, pointing out that government payments will be at their lowest level since 1997.

PMA study shows produce packs economic force Coverage from The Packer

Yakima Herald: Public can't be testing ground for food safety

Mexico's drug turf battles near Mexico City From AP

Florida tomato supply gap to hit in March Coverage from The Packer

Union Pacific to raise shipping rates by 5% to 6% in 2009 Dow Jones

Corn for ethanol use to rise in 2009 Reuters
Overall, ethanol is forecast to command about 33 percent of the corn crop compared to 30 percent in 2008/09.

Conference report posted online

Here is the Web page that has links to the conference report of the American Recovery and Reinvestment Conference Report. Here is a summary of the bill from the Appropriations Committee:


The United States is facing its deepest economic crisis since the Great Depression, one that calls for swift, bold action. The goals of this legislation are the same as they have been from day one: to
strengthen the economy now and invest in our country’s future. This legislation will create and save jobs; help state and local governments with their budget shortfalls to prevent deep cuts in basic services such as health, education, and law enforcement; cut taxes for working families and invest in the long-term health of our economy. We do all of this with unprecedented accountability, oversight and transparency so the American people know their money is being invested responsibly. To accomplish these goals, The American Recovery and Reinvestment Act provides $311 billion in appropriations, including the following critical investments:
Investments in Infrastructure and Science - $120 billion
Investments in Health - $14.2 billion
Investments in Education and Training - $105.9 billion
Investments in Energy, including over $30 billion in infrastructure - $37.5 billion
Helping Americans Hit Hardest by the Economic Crisis - $24.3 billion
Law Enforcement, Oversight, Other Programs - $7.8 billion
Investments in Infrastructure and Science include:
Infrastructure Improvements
‐ $7.2 billion for Broadband to increase broadband access and usage in unserved and underserved
areas of the Nation, which will better position the U.S. for economic growth, innovation, and job creation.
‐ $2.75 billion for the Department of Homeland Security to secure the homeland and promote
economic activity, including $1 billion for airport baggage and checkpoint security, $430 million for construction of border points of entry, $210 million for construction of fire stations, $300 million for port, transit, and rail security, $280 million for border security technology and communication, and $240 million for the Coast Guard.
‐ $4.6 billion in funding for the Corps of Engineers.
‐ $1.2 billion for VA hospital and medical facility construction and improvements, long-term care
facilities for veterans, and improvements at VA national cemeteries.
‐ $3.1 billion for repair, restoration and improvement of public facilities at on public and tribal lands.
‐ $4.2 billion for Facilities Sustainment, Restoration and Modernization to be used to invest in
energy efficiency projects and to improve the repair and modernization of Department of Defense
facilities to include Defense Health facilities.
‐ $2.33 billion for Department of Defense Facilities including quality of life and family-friendly
military improvement projects such as family housing, hospitals, and child care centers.
‐ $2.25 billion through HOME and the Low Income Housing Tax Credit program to fill
financing gaps caused by the credit freeze and get stalled housing development projects
moving.
‐ $1 billion for the Community Development Block Grant program for community and economic
development projects including housing and services for those hit hard by tough economic times.
‐ $1 billion for the Bureau of Reclamation to provide clean, reliable drinking water to rural areas
and to ensure adequate water supply to western localities impacted by drought.
Transportation
‐ $27.5 billion is included for highway investments
‐ $8.4 billion for investments in public transportation.
‐ $1.5 billion for competitive grants to state and local governments for transportation investments.
‐ $1.3 billion for investments in our air transportation system.
‐ $9.3 billion for investments in rail transportation, including Amtrak, High Speed and Intercity
Rail.
Public Housing
‐ $4 billion to the public housing capital fund to enable local public housing agencies to address a
$32 billion backlog in capital needs -- especially those improving energy efficiency in aging
buildings.
‐ $2 billion for full-year payments to owners receiving Section 8 project-based rental assistance.
‐ $2 billion for the redevelopment of abandoned and foreclosed homes.
‐ $1.5 billion for homeless prevention activities, which will be sent out to states, cities and local
governments through the emergency shelter grant formula.
‐ $250 million is included for energy retrofitting and green investments in HUD-assisted housing
projects.
Environmental Clean-Up/Clean Water
‐ $6 billion is directed towards environmental cleanup of former weapon production and energy
research sites.
‐ $6 billion for local clean and drinking water infrastructure improvements.
‐ $1.2 billion for EPA’s nationwide environmental cleanup programs, including Superfund.
‐ $1.38 billion to support $3.8 billion in loans and grants for needed water and waste disposal
facilities in rural areas.
Science
‐ $1 billion total for NASA.
‐ $3 billion total for National Science Foundation (NSF).
‐ $2 billion total for Science at the Department of Energy including $400 million for the
Advanced Research Projects Agency—Energy (ARPA-E).
‐ $830 million total for the National Oceanic and Atmospheric Association (NOAA).
Investments in Health include:
‐ $19 billion, including $2 billion in discretionary funds and $17 billion for investments and
incentives through Medicare and Medicaid to ensure widespread adoption and use of interoperable health information technology (IT). This provision will grow jobs in the information technology sector, and will jumpstart efforts to increase the use of health IT in doctors offices, hospitals and other medical facilities. This will reduce health care costs and improve the quality of health care for all Americans.
‐ $1 billion for prevention and wellness programs to fight preventable diseases and conditions with
evidence-based strategies.
‐ $10 billion to conduct biomedical research in areas such as cancer, Alzheimer’s, heart disease and stem cells, and to improve NIH facilities.
‐ $1.1 billion to the Agency for Healthcare Research and Quality, NIH and the HHS Office of
the Secretary to evaluate the relative effectiveness of different health care services and treatment
options.
Investments in Education and Training include:
‐ $53.6 billion for the State Fiscal Stabilization Fund, including $39.5 billion to local school
districts using existing funding formulas, which can be used for preventing cutbacks, preventing
layoffs, school modernization, or other purposes; $5 billion to states as bonus grants for meeting key performance measures in education; and $8.8 billion to states for high priority needs such as public safety and other critical services, which may include education and for modernization, renovation and repairs of public school facilities and institutions of higher education facilities.
‐ $13 billion for Title 1 to help close the achievement gap and enable disadvantaged students to reach their potential.
‐ $12.2 billion for Special Education/IDEA to improve educational outcomes for disabled children.
This level of funding will increase the Federal share of special education services to its highest level
ever.
‐ $15.6 billion to increase the maximum Pell Grant by $500. This aid will help 7 million students
pursue postsecondary education.
‐ $3.95 billion for job training including State formula grants for adult, dislocated worker, and youth programs (including $1.2 billion to create up to one million summer jobs for youth).
Investments in Energy include:
‐ $4.5 billion for repair of federal buildings to increase energy efficiency using green technology.
‐ $3.4 billion for Fossil Energy research and development.
‐ $11 billion for smart-grid related activities, including work to modernize the electric grid.
‐ $6.3 billion for Energy Efficiency and Conservation Grants.
‐ $5 billion for the Weatherization Assistance Program.
‐ $2.5 billion for energy efficiency and renewable energy research.
‐ $2 billion in grant funding for the manufacturing of advanced batteries systems and
components and vehicle batteries that are produced in the United States.
‐ $6 billion for new loan guarantees aimed at standard renewable projects such as wind or solar
projects and for electricity transmission projects.
‐ $1 billion for other energy efficiency programs including alternative fuel trucks and buses,
transportation charging infrastructure, and smart and energy efficient appliances.
Help for Workers and Families Hardest Hit by the Economic Crisis includes:
‐ $19.9 billion for additional Supplemental Nutrition Assistance Program (SNAP), formerly Food
Stamps, to increase the benefit by 13.6 percent.
‐ Child Care Development Block Grant: $2 billion to provide quality child care services for an
additional 300,000 children in low-income families who increasingly are unable to afford the high
cost of day care.
‐ Head Start & Early Head Start: $2.1 billion to allow an additional 124,000 children to participate
in this program, which provides development, educational, health, nutritional, social and other
activities that prepare children to succeed in school.
‐ State and Local Law Enforcement: $4 billion total to support law enforcement efforts.
‐ $555 million to expand the Department of Defense Homeowners Assistance Program (HAP)
during the national mortgage crisis.
Unprecedented Oversight, Accountability and Transparency
The American Recovery and Reinvestment Plan provides unprecedented oversight, accountability, and transparency to ensure that taxpayer dollars are invested effectively, efficiently, and as quickly as possible.
‐ Funds are distributed whenever possible through existing formulas and programs that have proven track records and accountability measures already in place.
‐ Numerous provisions in the bill provide for expedited but effective obligation of funds so that
dollars are invested in the economy as quickly as possible.
‐ The Government Accountability Office and the Inspectors General are provided additional funding for auditing and investigating recovery spending.
‐ A new Recovery Act Accountability and Transparency Board will coordinate and conduct oversight of recovery spending and provide early warning of problems.
‐ A special website will provide transparency by posting information about recovery spending,
including grants, contracts, and all oversight activities.
‐ State and local whistleblowers who report fraud and abuse are protected.
‐ There are no earmarks in this bill.