Whipsaw Wednesday

Another huge drop in the Dow today, and more activity - this time from the House Ag Committee - on derivatives. From the House Ag Committee:

WASHINGTON - Today, the House Agriculture Committee held a hearing to review the role of credit derivatives in the U.S. economy, and the role they may have played in the recent credit and financial crisis affecting markets around the world.

"We need to get a handle on these credit default swaps and determine the regulatory modifications that are needed to minimize the systemic risk to the economy that I am concerned they pose right now," said House Agriculture Committee Chairman Collin C. Peterson of Minnesota. "There is an estimated $55 trillion in credit default swaps somewhere out there, but no one knows for sure if any of these swaps offset each other, exactly who is on the hook for these swaps, who is trading with who and on what terms; and worst of all, no one has any idea who is solvent and who is upside down. The first step we need to take is to shed some light on just how the unwinding of these obligations will take place."

"Today's hearing was an opportunity for us to learn more about the role credit default swaps play in the marketplace, and how they contributed to the current economic crisis," said Committee Ranking Member Bob Goodlatte of Virginia. "It is important for us to understand how our regulators are addressing this issue and what steps should be considered for providing greater transparency with credit default swaps and reducing systemic risk."

The hearing examined the role of credit derivatives, and credit default swaps in particular, and the role they may have played in the series of recent failures and government takeovers of large financial institutions that engage in credit derivative transactions, including American International Group (AIG), Lehman Brothers, Bear Stearns, and Washington Mutual, among others.

The credit derivative market has grown dramatically over the last 15 years, with credit default swaps accounting for the most widely used derivative product by volume. The notional amount of credit derivatives is estimated to exceed $55 trillion.

The Committee heard testimony from two panels of witnesses, comprised of government regulators, academics, and industry stakeholders. The panelists testified about the current regulatory structure for regulated exchange and over the counter derivatives markets as well as possible arrangements for the clearing of credit default swaps.

Witness testimony is available on the Committee website: http://agriculture.house.gov/hearings/index.html. A full transcript of the hearing will be posted on the Committee website at a later date.

House to CTFC: Stop excessive oil speculation

Oil prices aren't going down, despite the fact that some economists say that supply and conditions don't warrant $130/barrel pricing. The House Agriculture Committee issued this press release yesterday about a new bill designed to curb "excessive speculation" in the energy futures market. From the House Agriculture Committee:


Today, the House of Representatives passed a bill requiring the Commodity Futures Trading Commission (CFTC) to utilize all its authority, including emergency powers, to take steps to curb excessive speculation in the energy futures markets. H.R. 6377, the Energy Markets Emergency Act passed the House overwhelmingly by a bipartisan vote of 402-19. "A growing number of people believe a flood of speculative money into energy futures is driving the record prices in crude oil," said House Agriculture Committee Chairman Collin C. Peterson of Minnesota during floor debate on the bill. "CFTC must take immediate steps to ensure that index and hedge fund money is not the cause for price manipulation and should take any necessary action to curb excessive speculation in the markets. These steps will help restore consumer confidence and reassure the American taxpayer that the futures markets are unctioning properly."

H.R. 6377 directs CFTC to use all its authority, including its emergency powers, immediately to curb the role of excessive speculation in the energy and swaps futures markets and take other corrective actions as necessary to eliminate any market disturbance that prevents energy arkets from accurately reflecting the forces of supply and demand.

CFTC is the chief regulator of futures and option markets in the United States. It was created as an independent agency in 1974 with the mandate to enforce and administer the Commodity Exchange Act, to ensure market integrity, to protect market users from fraud and abusive trading practices, and to prevent and prosecute manipulation of the price of any commodity in interstate commerce.

Congressional oversight of CFTC is under the jurisdiction of the House Agriculture Committee, chaired by Congressman Peterson. The Farm Bill, enacted into law earlier this month over the President's veto, reauthorizes CFTC through 2013.

In July, the House Agriculture Committee will examine legislative proposals that would affect CFTC's authority over energy futures and swaps markets. Several bills affecting regulation of the energy futures and swaps markets have been introduced and referred to the Committee in the 110th Congress.

"The Committee will thoroughly and carefully examine legislative proposals that would affect regulation of these markets," Peterson said. "Our review will be comprehensive and public so that we may work toward a consensus, bipartisan bill that will strengthen CFTC's ability to identify fraud and manipulation in the markets."

Final note - Farm bill override

The 2008 farm bill is officially in the books, at long last. From the office of Rep. Collin Peterson yesterday:


This afternoon, the U.S. House of Representatives voted to override President Bush's second veto of the Food, Conservation and Energy Act with a bipartisan vote of 317-109.

"Today's vote will ensure that all parts of the Food, Conservation and Energy Act are enacted into law," Agriculture Committee Chairman Collin Peterson said. "Particularly considering the serious concerns about rising food prices and severe flooding affecting crops in the Midwest, this Farm Bill provides a critical safety net for families and farmers."

Last month, Congress approved the conference report for the Food, Conservation and Energy Act (H.R. 2419). When that bill was sent to the White House, one of the bill's 15 titles was inadvertently left out of the official copy of the bill vetoed by the President.
Congress overrode the veto of H.R. 2419, which enacted 14 of the bill's 15 titles into law.

To ensure that all 15 titles are properly enacted, the House passed the Food, Conservation and Energy Act a second time with a new bill number (H.R. 6124). That bill was sent to the White House, and following President Bush's veto, the House voted today to override the veto.

From the office of Sen. Tom Harkin:

Senator Tom Harkin (D-IA) today issued the following statement in response to the Senate vote of 80 to 14 to override the veto of the Food, Conservation and Energy Act – the new farm bill – in the Senate. Earlier today, the House of Representatives voted 317 to 109 to override the measure. Harkin chaired the Senate-House conference committee on the new farm bill. He is Chairman of the Senate Committee on Agriculture, Nutrition and Forestry.

“It has been a long time coming, but today’s veto override in the Senate completes action on the new farm bill, enacting the full bill, including provisions on foreign food assistance and agricultural trade. The White House repeatedly tried to veto this measure, but could not stand in the way of critical farm, food, conservation and energy investments becoming law. Not only did this bill pass both chambers with an overwhelming majority, but with the override votes, we held our majorities. This proves we have a good, strong, bipartisan farm bill. And after all of our hard work, it is a proud result for Congress as this critical legislation becomes law.”

TK: Also note the House Agriculture Committee schedule next week:

AGRICULTURE COMMITTEE SCHEDULE
UPDATED
June 18, 2008

(UPDATED)
Tues., June 24th - 9:00 a.m.
1300 Longworth House Office Building
Subcommittee on Livestock, Dairy, and Poultry - Public Hearing.
RE: To review advances in animal health within the livestock industry.


(NEW)
Thurs., June 26th - 10:00 a.m.
1300 Longworth House Office Building
Subcommittee on Horticulture and Organic Agriculture - Public Hearing.
RE: To review the status of pollinator health including colony collapse disorder.

Peterson and Goodlatte: All but one title enacted

From the office of Rep. Collin Peterson:

House Agriculture Committee Chairman Collin Peterson of Minnesota and Ranking Member Bob Goodlatte of Virginia issued the following statement today:
"Following veto override votes of 316-108 in the House and 82-13 in the Senate, the Food, Conservation and Energy Act of 2008 has been enacted into law, with the exception of the bill's trade title.
"The trade title was included in the conference report passed by Congress but was inadvertently left out of the official copy of the farm bill that the President vetoed. Today, the House also took action to correct the clerical error that resulted in the unintentional omission of the trade title from the enrolled farm bill and ensure that the entire farm bill is enacted into aw swiftly. Most of the farm bill is now law and the Administration can begin implementing the new programs and policies immediately.
"The Food, Conservation and Energy Act makes historic new investments in food, farm and conservation programs that are priorities for all Americans, which is why a broad, bipartisan coalition voted overwhelmingly to pass this bill.
"While no one got everything they wanted in this Farm Bill, we struck a balance that meets the pressing needs of working American families struggling with high food prices and that supports America's farmers and ranchers as they continue to provide a safe, abundant, homegrown supply of food and fiber while protecting our natural resources and developing new sources of renewable energy."

Waiting for the inevitable

Ryan McLaughlin, spokesman for the Specialty Crop Farm Bill Alliance, reports the group is hearing the official White House veto and possibly a House override will occur on Wednesday.

From the office of Rep. Collin Peterson:


Today, Congress sent H.R. 2419, the Food, Conservation and Energy Act of 2008 to President Bush. The bill passed the House of Representatives with a vote of 318-106 and passed the Senate with a vote of 81-15 last week.

"I hope that President Bush will seriously consider the many positive steps this bill takes to improve nutrition programs that are important to so many Americans, particularly during these difficult economic times; to expand and improve conservation programs that help farmers protect the environment; to continue and improve the safety net for farmers; to support fruit and vegetable producers and to encourage renewable energy production from cellulosic sources," Agriculture Committee Chairman Collin Peterson said.

"We made every effort to work with Administration officials throughout the Farm Bill process, even when they showed no interest in coming to compromise on these important issues," Chairman Peterson said. "While the President has pledged to veto the bill, I hope that the strong, bipartisan votes in the House and Senate will demonstrate its importance to the American people and lead him to sign it into law."

The current extension of the 2002 Farm Bill expires on Friday, May 23, 2008.

Sen. Harkin sends his congratulations

From the office of Sen. Tom Harkin:

Senator Tom Harkin (D-IA) today issued the following statement in response to the House’s passage of the farm bill conference report – the Food, Conservation and Energy Act of 2008. The measure now goes to the Senate. Harkin is Chairman of the Senate Committee on Agriculture, Nutrition and Forestry and the Senate-House conference committee on the new farm bill. “I congratulate and commend Chairman Peterson, Ranking Member Goodlatte and the House Agriculture Committee for gaining House passage of the farm bill conference report .“The House passage of the farm bill conference report on a strong, bipartisan basis demonstrates support for core farm bill initiatives – conservation, energy, nutrition and rural development – while continuing and strengthening farm income protection. This bill benefits every American, from our smallest towns to our biggest cities, urban and rural residents, farmers and non-farmers. I now look forward to the Senate approving the measure with a strong vote."

News conference rescheduled

Update on the news conference from House leaders:




House Agriculture Committee Chairman Collin Peterson (D-MN) and Ranking Member Bob Goodlatte (R-VA) will be joined by members of the Farm Bill Conference Committee and members of the House Agriculture Committee to discuss today's expected vote on the 2008 Farm Bill conference report. The press conference will be held at 4:30 p.m. Eastern Time in room 1300 of the Longworth House Office Building.

WHO: House Agriculture Committee Chairman Collin C. Peterson, Ranking Member Bob Goodlatte and members of the Farm Bill
Conference Committee and House Agriculture Committee

WHEN: Wednesday, May 14, 2008 at 4:30 Eastern Time
WHERE: 1300 Longworth House Office Building

Live video of the press conference will be available on the House Agriculture Committee website:
http://agriculture.house.gov/hearings/audio.html

Counting their chickens

Even before debate has begun, a press conference has been scheduled to discuss the farm bill vote. From the office of Rep. Collin Peterson:



House Agriculture Committee Chairman Collin Peterson (D-MN) and Ranking Member Bob Goodlatte (R-VA) will be joined by members of the Farm Bill Conference Committee and members of the House Agriculture Committee to discuss today’s expected vote on the 2008 Farm Bill conference report. The press conference will be held on at 2:00 p.m. Eastern Time in room 1300 of the Longworth House Office Building.

WHO: House Agriculture Committee Chairman Collin C. Peterson, Ranking Member Bob Goodlatte and members of the Farm Bill Conference Committee and House Agriculture Committee

WHEN: Wednesday, May 14, 2008 at 2:00 p.m. Eastern Time

WHERE: 1300 Longworth House Office Building

Live video of the press conference will be available on the House Agriculture Committee website: http://agriculture.house.gov/hearings/audio.html

All done but the shouting

From the office of Sen. Tom Harkin:


Congressional negotiators will announce a final farm bill conference agreement TOMORROW, May 8, 2008 at 1:30 PM EDT in 1300 Longworth House Office Building. The bipartisan, bicameral group will discuss the details of the final bill, which makes investments in conservation, energy, nutrition and rural development while continuing and strengthening farm income protection.

The event will also be webcast on the House and Senate Agriculture Committee Websites at: http://agriculture.house.gov/hearings/audio.html or http://agriculture.senate.gov/.

WHO: Senator Tom Harkin (D-IA), Chairman, Senate Agriculture Committee
Congressman Collin Peterson (D-MN), Chairman, House Agriculture Committee
Senator Saxby Chambliss (R-GA), Ranking Member, Senate Agriculture Committee
Congressman Bob Goodlatte (R-VA), Ranking Member, House Agriculture Committee
Senator Kent Conrad (D-ND), Chairman, Senate Budget Committee
Senator Max Baucus (D-MT), Chairman, Senate Finance Committee
Senator Chuck Grassley (R-IA), Ranking Member, Senate Finance Committee
Congressman Earl Pomeroy (D-ND), Member, House Agriculture and House Ways and Means Committees


WHAT: Agriculture leaders to announce farm bill conference report
WHEN: TOMORROW, May 8, 2008
1:30 PM
WHERE: Longworth House Office Building
Room 1300
Washington, D.C

One and done

Sen. Larry Craig, R-Ida., has said he won't support another extension of the current farm bill unless everything is agreed to and all that needed to be done was to write up the language. Craig, a big supporter of specialty crop provisions, nevertheless feels that farmers need certainty as planting season is already underway, one of his staffers told me today. The House-Senate conference is expected to meet again tomorrow, and we shall soon see by the tone of the news releases from Harkin and Peterson what we can expect.

Senate counter offer

Sen. Harkin leads off today's farm bill conference with a counter offer to the House; $10 billion package he said is basically agreed to (if offsets can be found) and $2.4 billion additional in another package.

House Agriculture Chairman Collin Peterson said there is significant progress (what the White House is looking for) but finding the offsets is still a problem.

Still some distance to go on a final deal....but enough for another week of deal making?

Coming together?

From the office of Chairman Peterson Friday:

“The Senate’s Farm Bill counter-offer today affirms the House position on the core Farm Bill policies and shows how close we are to an agreement on those issues but also demonstrates that there is still work to do on financing the bill and other extraneous issues.
The Senate’s proposal only further muddies the water on funding for the Farm Bill by scrapping the offsets recommended by the House and failing to offer alternative funding sources that are acceptable.
The Senate’s $12.5 billion offer also breaks the previous agreement to limit above baseline spending in the bill to no more than $10 billion. When we can’t agree on offsets for the core Farm Bill issues, adding $2.5 billion in tax giveaways that don’t even belong in the Farm Bill is counterproductive.”


Meanwhile, from Chairman Harkin in the Senate:

WASHINGTON D.C. – Senator Tom Harkin (D-IA), Chairman of the Senate-House Conference Committee on the farm bill, today announced a meeting for all Senate and House farm bill conferees.

The conference committee is scheduled for Monday, April 14, 2008, at 3:30 PM in room 325 of the Russell Senate Office Building (Russell Caucus Room).

The proceedings will be available live via webcast at http://agriculture.senate.gov/.

Back to Chairman Peterson

Can House Agriculture Committee Chair Collin Peterson work his Jedi master will over the Senate and deliver a farm bill by next week? In a teleconference today, Peterson said he and Goodlatte had found an offset (credit card reporting guidelines) as a way to find about $5 billion over baseline for farm bill funding. What's more, while the White House isn't doing back flips, the offset isn't a deal breaker, either. Things are looking up....

Finally movement?

From the House Ag Republicans:

Opening Statement of Rep. Bob Goodlatte

Ranking Member, House Committee on Agriculture

Meeting of House and Senate Conferees

April 10, 2008

Thank you, Mr. Chairman. Suffice to say, this day has been a long time coming and while we still have a significant amount of work to do, it is a good sign that we are all meeting in this room here today. As we sit around the table today, we all have different ideas about what should be in farm bill based on what we think is best for the farmers and ranchers in our districts or states. But as the 60 Members of the Congress selected by the Leadership to guide this legislation through this process, we have an obligation to approach these negotiations with a broader perspective: the overall good of American agriculture.

American agriculture is best served by us working together in a collaborative fashion to put together strong agricultural policy that allows this sector of the economy to flourish. Farm bills contain much more than just farm policy, yet without farm policy, our nutrition programs, conservation programs and energy initiatives would suffer. The agriculture sector is directly responsible for meeting some of our most fundamental needs, yet it is target of constant criticism and litigation. Yet, here the 60 of us sit, charged with the significant responsibility of ensuring that our food and fiber supply remains safe, abundant and affordable and no matter how progressive our reforms in some areas or expansion of programs in other areas, it will not be enough for farm bill critics.

So, why bother? Because if we don’t, no one else will and it is not just the American farmer or rancher that will the feel the effects of our inaction, but every person that eats a meal, buys groceries, drives a car, reads a book, takes a prescription medication or relies on food stamps to get the daily nourishment they need. If we are not willing to put aside our differences and truly work together in a bipartisan, bicameral way to put together a solid, reform-minded bill, we cannot succeed. I encourage you to bring your ideas to the table and we will have serious discussions and deliberations about the issues in the farm bill, but we must all be willing to compromise.

It is imperative that we get straight to work and finish this bill as quickly as possible so that we do not have to keep prolonging this process without end. We are days away from the extended extension of the 2002 Farm Bill and it is not realistic to think we will be able to finish this conference, pass the conference report through both chambers and get the bill to the President for his signature in the next week. We have entered peak planting season. Weeks ago farmers began planting their crops without any idea of what

policy, if any, would be in place when they pull their crops out of the ground. And we’ve yet to resolve the uncertainty that inaction on the farm bill has caused them. This is unacceptable. Our farmers and ranchers have already waited too long, we must act with purpose and haste to resolve the differences between us.

And no one knows more than Chairman Peterson how important finishing this bill is. I want to commend the efforts of Chairman Peterson who has worked tirelessly to move this bill forward. Between his meetings with House Members, Members of the Senate and the Administration, farm groups and various other constituent groups, dealing with media inquiries on a constant basis, I’m not sure there’s anybody he hasn’t talked to about the farm bill. But all of those conversations and all of those meetings have helped us get where we are today and I want to thank him for his leadership and his efforts to make this process as bipartisan, bicameral, and transparent as possible. Thank you, Mr. Chairman.

I look forward to working with my colleagues on both sides of the aisle and both sides of the Capitol to bring this bill to the finish line. I believe we CAN produce a modern, forward-looking farm bill that addresses the needs of all areas of American agriculture and will win the support of the House, Senate and the President.

Conference assignments - Farm Bill

This is admittedly "inside the beltway" info, but here - from the House Agriculture Committee - are section assignments for House conferees on the farm bill:

Several of you have asked for the section assignments for the House conferees named last night. The 14 members of the Agriculture Committee named to the conference will participate in all aspects of the conference meetings. The other 35 Members named to the conference will only participate in the specific areas of jurisdiction their committees are involved in. As the conferees were named last night, they were assigned specific sections of the farm bill that they will be involved with. The following is the text of what was read by the Clerk on the House Floor last night:
The Speaker appointed conferees - from the Committee on Agriculture for consideration of the House bill (except title XII) and the Senate amendment (except secs. 12001, 12201-12601, and 12701-12808), and modifications committed to conference: Peterson (MN), Holden, McIntyre, Etheridge, Boswell, Baca, Cardoza, Scott (GA), Goodlatte, Lucas, Moran (KS), Hayes, Musgrave, and Neugebauer.
The Speaker appointed conferees - from the Committee on Education and Labor for consideration of secs. 4303 and 4304 of the House bill, and secs. 4901-4905, 4911, and 4912 of the Senate amendment, and modifications committed to conference: Miller, George, McCarthy (NY), and Platts.
The Speaker appointed conferees - from the Committee on Financial Services for consideration of sec. 11310 of the House bill, and secs. 6501-6505, 11068, and 13107 of the Senate amendment, and modifications committed to conference: Kanjorski, Waters, and Bachus.
The Speaker appointed conferees - from the Committee on Foreign Affairs for consideration of secs. 3001-3008, 3010-3014, and 3016 of the House bill, and secs. 3001-3022, 3101-3107, and 3201-3204 of the Senate amendment, and modifications committed to conference: Berman, Sherman, and Ros-Lehtinen.
The Speaker appointed conferees - from the Committee on the Judiciary for consideration of secs. 11102, 11312, and 11314 of the House bill, and secs. 5402, 10103, 10201, 10203, 10205, 11017, 11069, 11076, 13102, and 13104 of the Senate amendment, and modifications committed to conference: Conyers, Scott (VA), and Smith (TX).
The Speaker appointed conferees - from the Committee on Natural Resources for consideration of secs. 2313, 2331, 2341, 2405, 2607, 2607A, 2611, 5401, 6020, 7033, 7311, 8101, 8112, 8121-8127, 8204, 8205, 11063, and 11075 of the Senate amendment, and modifications committed to conference: Rahall, Bordallo, and McMorris Rodgers.
The Speaker appointed conferees - from the Committee on Oversight and Government Reform for consideration of secs. 1501 and 7109 of the House bill, and secs. 7020, 7313, 7314, 7316, 7502, 8126, 8205, and 10201 of the Senate amendment, and modifications committed to conference: Waxman, Towns, and Jordan.
The Speaker appointed conferees - from the Committee on Science and Technology for consideration of secs. 4403, 9003, 9006, 9010, 9015, 9019, and 9020 of the House bill, and secs. 7039, 7051, 7315, 7501, and 9001 of the Senate amendment, and modifications committed to conference: Gordon, Lampson, and McCaul (TX).
The Speaker appointed conferees - from the Committee on Small Business for consideration of subtitle D of title XI of the Senate amendment, and modifications committed to conference: Velazquez, Shuler, and Chabot.
The Speaker appointed conferees - from the Committee on Transportation and Infrastructure for consideration of secs. 2203, 2301, 6019, and 6020 of the House bill, and secs. 2604, 6029, 6030, 6034, and 11087 of the Senate amendment, and modifications committed to conference: Oberstar, Norton, and Graves.
The Speaker appointed conferees - from the Committee on Ways and Means for consideration of sec. 1303 and title XII of the House bill, and secs. 12001-12601, and 12701-12808 of the Senate amendment, and modifications committed to conference: Rangel, Pomeroy, and McCrery.
The Speaker appointed conferees For consideration of the House bill (except title XII) and the Senate amendment (except secs. 12001, 12201-12601, and 12701-12808), and modifications committed to conference: DeLauro and Putnam.

House Farm Bill Conferees named (finally)

We are down to the last week of farm bill negotiations before the April 18 deadline, and House Speaker Pelosi finally gave the green light to name House conferees. From the office of Chairman Peterson, chair of the House Ag Committee:

Agriculture Committee Chairman Collin Peterson today announced the list of Representatives appointed by the Speaker of the House of Representatives to participate in the conference committee that will negotiate the 2008 Farm Bill.

"The Members serving on this conference committee have a challenging job as we work to come to an agreement that will move the Farm Bill forward," Chairman Peterson said. "I'm confident that if everyone comes to the table willing to negotiate and compromise, we
can pass a new Farm Bill that will expand important nutrition and conservation programs and provide new resources for fruit and vegetable producers and renewable energy programs while improving the farm safety net."

The Democratic Members of Congress selected to serve on the conference committee are:
From the Agriculture Committee:
Agriculture Committee Chairman Collin C. Peterson of Minnesota
Congressman Tim Holden of Pennsylvania
Congressman Mike McIntyre of North Carolina
Congressman Bob Etheridge of North Carolina
Congressman Leonard Boswell of Iowa
Congressman Joe Baca of California
Congressman Dennis Cardoza of California
Congressman David Scott of Georgia

Conferees on Farm Bill provisions with jurisdiction beyond the Agriculture Committee:
Congressman George Miller of California (Education and Labor)
Congresswoman Carolyn McCarthy of New York (Education and Labor)
Congressman John Dingell of Michigan (Energy and Commerce)
Congressman Frank Pallone of New Jersey (Energy and Commerce)
Congressman Paul Kanjorski of Pennsylvania (Financial Services)
Congresswoman Maxine Waters of California (Financial Services)
Congressman Howard Berman of California (Foreign Affairs)
Congressman Brad Sherman of California (Foreign Affairs)
Congressman John Conyers of Michigan (Judiciary)
Congressman Bobby Scott of Virginia (Judiciary)
Congressman Nick Rahall of West Virginia (Natural Resources)
Delegate Madeline Bordallo of Guam (Natural Resources)
Congressman Henry Waxman of California (Oversight and Government Reform)
Congressman Edolphus Towns of New York (Oversight and Government Reform)
Congressman Bart Gordon of Tennessee (Science and Technology)
Congressman Nick Lampson of Texas (Science and Technology)
Congresswoman Nydia Velasquez of New York (Small Business)
Congressman Heath Shuler of North Carolina (Small Business)
Congressman Jim Oberstar of Minnesota (Transportation and Infrastructure)
Delegate Eleanor Holmes Norton of the District of Columbia (Transportation and Infrastructure)
Congressman Charles Rangel of New York (Ways and Means)
Congressman Earl Pomeroy of North Dakota (Ways and Means)

The Republican Members of Congress selected to serve on the conference committee are:
From the Agriculture Committee:
Agriculture Committee Ranking Member Bob Goodlatte of Virginia
Congressman Frank Lucas of Oklahoma
Congressman Jerry Moran of Kansas
Congressman Robin Hayes of North Carolina
Congresswoman Marilyn Musgrave of Colorado
Congressman Randy Neugebauer of Texas

Conferees on Farm Bill provisions with jurisdiction beyond the Agriculture Committee:
Congressman Todd Platts of Pennsylvania (Education and Labor)
Congressman Joe Barton of Texas (Energy and Commerce)
Congressman Spencer Bachus of Alabama (Financial Services)
Congresswoman Ileana Ros-Lehtinen of Florida (Foreign Affairs)
Congressman Lamar Smith of Texas (Judiciary)
Congresswoman Cathy McMorris-Rodgers of Washington (Natural Resources)
Congressman Jim Jordan of Ohio (Oversight and Government Reform)
Congressman Michael McCaul of Texas (Science and Technology)
Congressman Steve Chabot of Ohio (Small Business)
Congressman Sam Graves of Missouri (Transportation and Infrastructure)
Congressman Jim McCrery of Louisiana (Ways and Means)

The Members of Congress selected from Leadership to serve on the conference committee are:
Congresswoman Rosa DeLauro of Connecticut
Congressman Adam Putnam of Florida

The throng at the gates and looking for Mr. Daschle

While United Fresh lobbyist Robert Guenther said tenuous progress is reported in farm bill negotiations, nothing is certain yet. Meanwhile, I read in some farm bill coverage that the process needs a "stopper" to get this thing to an end game, much like Tom Daschle, former Democratic Senator from South Dakota, did in 2002 farm bill negotiations. From Delta Farm Press:

Where’s Tom Daschle when you need him? The last time Congress wrote a farm bill, Daschle, or so the story goes, called agriculture committee leaders in at one point and told them to pass a farm bill. Period. End of story.
House and Senate conference committee members went back to work, compromised on some tough issues, voted out a conference report that was passed by both Houses and signed by President Bush on May 13, 2002.
By the time Daschle, the then-Senate majority leader, took action, House and Senate conferees had been meeting from January until April — longer than they’ve been negotiating the current bill. The conference committee for this farm bill has yet to meet.
That’s not the only difference. In 2002, the Bush administration played the role of observer, providing deputy undersecretaries to answer questions about how USDA mght implement provisions of the bill.
Then-Agriculture Secretary Ann Veneman made general statements about administration policy on the farm bill but did travel around the country telling groups how the president would veto the farm bill if it (1) contained tax increases or (2) did not include reforms such as a lower adjusted gross income ceiling on payments.
Both Secretary Ed Schafer and Deputy Secretary Chuck Conner, have missed few opportunities to get out and claim the House and Senate farm bills raise taxes and “do not target support to producers who need it the most.”
In response, House and Senate agriculture leaders claim the bills are more about closing tax loopholes and requiring royalty payments on offshore oil wells. And they note they are paying for the farm bill as they go rather than simply increasing spending as the administration has done with the economic stimulus package.
The House and Senate conference committee could reconcile the two versions of the farm bill within a matter of days — once House leaders actually name the House members. Instead, committee leaders have spent most of the last three months trying to compromise with the White House.
Reps. Collin Peterson and Bob Goodlatte, the chairman and ranking member of the House Agriculture Committee, and Sens. Tom Harkin and Saxby Chambliss, chairman and ranking member on the Senate Agriculture Committee, reportedly have agreed on a spending figure of $10 billion over the baseline projected for the farm bill.
But that has caused other committee members such as Finance Committee Chairman Max Baucus, D-Mont., and Budget Chairman Kent Conrad, D-N.D., to call the compromise “dead on arrival” because other spending priorities will not leave the $5.5 billion they need for their permanent disaster program.
For now, Congress is working on a new deadline of April 19 to replace or extend the current law. After that, the fall elections will begin to prove more distracting. If farmers are to have a new law in 2008, it’s time for Senate Majority Leader Harry Reid or House Speaker Nancy Pelosi to step up and do a “Tom Daschle.”

TK: Farmers aren't the only ones upset at the process. This column Ditch this farm bill by Deroy Murdock, takes a more acidic view of the farm bill and the "family farm."

In short, Congress shakes down taxpayers (many in foreclosure) for $286 billion to subsidize farmers already in cornucopian bliss. Their record crop prices, in turn, fatten supermarket and restaurant tabs, which squeeze taxpayers' wallets yet again. Frightfully, these factors stir Third World hunger and chaos.

If this were Bourbon, France, citizens would be at Versailles' gates, justifiably screaming for justice.

Extension amendment on the slate

The Senate passed a short term extension yesterday, and House will consider a similar amendment today.April Slayton of the House Agriculture Committee passes on this language:

H. R. 5578

To extend agricultural programs beyond March 15, 2008, to suspend permanent price support authorities beyond that date, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

March 11, 2008

Mr. PETERSON of Minnesota (for himself and Mr. GOODLATTE) introduced the following bill; which was referred to the Committee on Agriculture, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

---

A BILL

To extend agricultural programs beyond March 15, 2008, to suspend permanent price support authorities beyond that date, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. EXTENSION OF AGRICULTURAL PROGRAMS.

(a) Extension- Except as otherwise provided in this section and notwithstanding any other provision of law, the authorities provided under the Farm Security and Rural Investment Act of 2002 (Public Law 107-171; 7 U.S.C. 7901 et seq.) and each amendment made by that Act (and for mandatory programs at such funding levels), as in effect on September 30, 2007, shall continue, and the Secretary of Agriculture shall carry out the authorities, until April 18, 2008.

To the brink

Congress and White House are going to the brink in farm bill negotiations, and the White House over the weekend presented Congressional leaders with a list of ten demands they require of the bill is funded $10 billion over the baseline. From coverage by Sally Schuff of Feedstuffs, noted this morning by Luis in the Fresh Produce Industry Discussion Group:

Key among the 10 demands is one that would end farm program eligibility for participants who pay income tax on an adjusted gross income (AGI) of more than $500,000 annually.

TK: Sally Schuff also notes the 3-page White House letter demand the elimination of new subsidy programs and elimination of the prohibition of the planting of fruits and vegetables on farm program base acres. She also notes that "a number of miscellaneous provisions were also opposed by the Administration." Let's hope that number doesn't include the fruit and vegetable program for schools, which has raised some objections from the White House in earlier position papers. Peterson indicated to Schuff that Congress would consider the White House demand but wouldn't allow terms to be dictated. I'll see if Kate Cyrul at Harkin's office or Robert Guenther at United has a copy of the White House letter we can post to discussion group.

USDA Ag Outlook Forum - Notables

Here are some other presentations fr on the USDA Ag Outlook Forum that might be worth a look:

Procedural Impediments to Regulation—The Ossification of the Rulemaking Process: Interesting presentation on the barriers to rulemaking that exist in the federal government and possible shortcuts - such as issuing "guidance" - that may be ways around the problem. By Jeffrey S. Lubbers Washington College of Law American University JSL26@aol.com


The Challenge of Increasing Trade: How to Address Linkages and Barriers Drawing lessons from two specific examples —Avocados and Apples: Presentation by David Orden and Everett Peterson: Fascinating presentation drawing comparisons between opening of U.S. market for Mexican avocados and the potential opening of the U.S. market for Chinese apples. I pulled some highlights on apple in the following excerpts:


On apples:
Apple production in China has increased substantially in recent years and now accounts for nearly half of the total global output. Correspondingly, China has highlighted apples (and also pears) as products for which it has sought market access in many of its negotiations with trade partners about agricultural technical barriers. China’s apple exports have skyrocketed as markets have been opened. In the 2004/05, China exported 850,000 metric tons of fresh apples, a nearly five-time increase in the export volume over five years. A large proportion of the increase in Chinese apple exports has gone to Pacific Rim markets. In North America, the importation of Chinese fresh apples from approved orchards and packers in selected provinces has been authorized by Canada since November 2004 but importation of fresh apples remains banned by the United States.
Opportunity: It is not as obvious that there is an economic opportunity for Chinese apples in the U.S. mark et as in the case of Mexican avocadoes. Chinese apples have obtained only about a 3-percent share of Canadian fresh apple consumption. The Chinese apples imported by Canada are mainly sold in the Asian communities at relatively high prices as a somewhat specialty product. In the European Union, Chinese fresh apples account for only about a 1-percent market share. Imported Chinese apples would similarly be likely to enter the U.S. market as a specialty item. This limits the economic gains but also limits the pest risks which increase a larger volume of trade.

On apple science:
Science: Since there has not been a U.S. risk assessment, the scientific evidence is less cohesive at this point in time. One can examine the risk assessments that Canada and other countries have made and the risk-mitigation measures they have imposed. From this, one can describe a prototype or hypothetical systems approach that might be adopted by the U.S. The decision by Canada provides some evidence that a risk assessment can support Chinese apple imports with feasible risk-mitigation requirements. Canada identifies 10 pests of concern and its risk-mitigation implementation is closely coordinated with Chinese sanitary authorities. But a process of pest identification, data collection, risk assessment and analysis of mitigation measures has only progressed to an early stage for the U.S.

On political will:

Political Will: The current political environment does not seem conducive for decisions that open U.S. markets further to imports from China. At the macroeconomic level, there is a large U.S. bilateral trade deficit and arguments are made that the Chinese currency should be revalued. There is concern about industrial competition in general from this lower-wage country. And the safety of products from China, from pet food to pharmaceuticals, has
made front-page international news. In this context, it would be difficult for the two governments to agree to intense efforts to reduce phytosanitary barriers for a new product.
It can be argued that NAFTA was also controversial when negotiated. But once a high-level political decision was made to reach the NAFTA accord it provided an institutional impetus for various bilateral trade issues to be addressed. There is no similar high-level accord currently under discussion between China and the U.S.

Analysis:
Without considering pest risk, it is assumed that Chinese exports to the U.S. would achieve about a 3-percent share of the total U.S. apple consumption and sell at a price above the U.S. market average, similar to the situation for Canada in 2003-2004. This results in small economic gains. Next the outcomes are evaluated with pest risks and related control costs taken into account. The probabilities of U.S. pest outbreaks due to the importation of Chinese fresh apples are not known. Thus, the risk probability levels are estimated that cause the expected change in U.S. welfare due to granting market access to Chinese fresh apples to fall approximately to zero. Higher levels of risk from trade would result in expected welfare losses.
In the case of the assumed lowest costs from pest infestations, an expected frequency of a trade-related pest outbreak of approximately 0.2 per year, or one every five years, leaves U.S. welfare unchanged. For the cases of assumed “average cost” and “high cost,” the expected frequency of an outbreak that leaves U.S. welfare unchanged drops to once in 16.7 and 50 years, respectively.

From the report's conclusions:
There are several general lessons from this case-study evaluation:
• In some instances, calls to reduce technical trade barriers may not be matched by real economic circumstances that would result in trade.
• In other cases, where exporters rightly perceive a real economic opportunity, they face multiple challenges. These challenges should figure into their business calculations and industry strategy.
• An industry seeking market opening needs to send the “A team” into the fray and even then recognize that its fate depends in part on contextual forces beyond their control.
• Appreciation is gained of the complex environment in which regulators operate. This may be no surprise for those with experience, but the point needs to be widely understood. Such understanding will enhance the functioning of the regulatory process.