Wednesday, January 16, 2013

Ag Today Thursday, December 27, 2012




Drier weather for a week in forecast; snowpack 150 percent above normal [Redding Record Searchlight]
A drenched north state may finally get a break from the string of storms that left thousands without power, closed Interstate 5 and pushed the snowpack levels to more than 50 percent above normal. "We're actually getting into more of a dry pattern that's setting up," said Craig Shoemaker, a forecaster with the National Weather Service's Sacramento office. Only 0.023 inch of rain had fallen on Redding Wednesday morning. He said a light system may move in Friday evening and drop a small amount, but the earliest a storm could drop an inch of rain on Redding appears to be Wednesday.

Siskiyou farmers win court battle over water; judge says DFG oversteps authority in requiring permits [Redding Record Searchlight]
In a decision that farmers say could have statewide implications, a judge has ruled that the state Department of Fish and Game cannot require ranchers in Siskiyou County to obtain permits to take water from the Shasta and Scott rivers. Siskiyou County Superior Court Judge Karen L. Dixon ruled the DFG overstepped its authority in requiring the permits, according to the Siskiyou County Farm Bureau. "This ruling establishes an important statewide precedent," farm bureau President Jeff Fowle said. "There is no doubt that if the DFG had been able to expand its authority here, it would have tried to regulate water rights elsewhere in the state."

A gallon of milk could cost $8 in 2013 [Washington Post]
There’s one potential casualty of the fiscal cliff that hasn’t gotten much attention at all: the price of milk. Come Dec. 31, Washington’s inaction could push the country’s milk prices to as much as $6 to $8 per gallon unless Congress passes a farm bill renewing federal support for agriculture programs. Here’s how that would happen: Without legislative action in the next five days, the government will have to revert to a 1949 dairy price subsidy that requires the Agriculture Department to buy milk at inflated prices. Much like the current fiscal cliff, the law was left on the books “as a poison pill to get Congress to pass a farm bill by scaring lawmakers with the prospect of higher support prices for milk and other agriculture products,” as Vincent Smith, a Montana State University professor, told the New York Times.  The Farm Bill isn’t technically part of the fiscal cliff. Speaker John A. Boehner (R-Ohio.) has resisted the call by Agriculture Secretary Tom Vilsack (D) to incorporate it into the budget negotiations — to avoid complicating the budget talks and losing GOP votes, a Boehner aide told Politico last week. Legislators from rural districts are also worried that crop subsidies could be a tempting target in the fiscal cliff negotiations, so they’ve been trying to push Congress toward a separate resolution, to little avail. Although producers would temporarily benefit from the hike in milk prices, it would hurt processors and consumers, and the dairy industry would prefer a long-term resolution as well.

Commentary: Estate Tax Increase Jeopardizes Future of Family Farms [Agri-Pulse]
Congress is now convened in a lame duck session, dealing with a host of issues that were postponed or bypassed in regular order earlier this year.  The farm bill is one of them.  So is essentially two years’ worth of federal budgeting.  This perpetual postponement comes at a steep price. Congress’s failure to reach a $1.2 trillion deficit-reduction package last year leaves in place the automatic across-the-board spending cuts known as a sequester.  Those cuts, like the sword of Damocles, hang over all federal programs - good and bad alike - unless Congress can devise a more sensible budget plan that funds priority programs and weeds out unnecessary and wasteful spending.  Total cuts to federal spending in 2013 would be $110 billion. Moreover, a number of tax provisions expire at the end of this year.  These expiring tax provisions are largely the culmination of temporary tax and budget bills that have deferred rather than dealt with policy differences.  The tax bill on January 1, 2013 will be $514 billion higher because of these expiring provisions.

California law tests company responses to carbon costs [New York Times]
The Morning Star Company’s three plants in California emit roughly 200,000 metric tons of carbon dioxide into the atmosphere each year — about the same amount as the Pacific Island nation of Palau — as they turn tomatoes into ketchup, spaghetti sauce and juice used by millions of consumers around the world. Beginning Jan. 1, under the terms of a groundbreaking California environmental law known as AB 32, Morning Star and 350 other companies statewide will begin paying for those emissions, which trap heat and contribute to global warming. Companies are trying to figure out how this will affect their bottom lines and have lobbied state regulators to minimize the costs. In the meantime they are weighing their options. Should they stay and adapt or move operations elsewhere? Should they retrofit and innovate to reduce emissions? Should they swallow the regulatory costs or pass them on to customers?

Delta disputes could affect Solano’s water [Fairfield Daily Republic]
Barker Slough and the North Bay Aqueduct pumps that bring Delta water to local cities sit amid an eastern Solano County region targeted by California to become a rare fish paradise. That has local water officials concerned. They fear creating rare fish habitat near the North Bay Aqueduct pumps could make it more difficult to deliver water to more than 400,000 people in Fairfield, Vacaville, Vallejo and Napa. This is water that helps keep the local economy flowing. Tidal wetlands are going to be restored in eastern Solano County, Solano County Water Agency General Manager David Okita said. “It’s just a matter of when and how big they are and whether we get adequate protection,” Okita said. “That is a real threat.”

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