AG Day in Sacramento Celebrates California Grown

Officially, Ag Day was more than a week ago, but California agricultural organizations, the California Department of Food and Agriculture and various state workers, elected leaders and friends will fill the State Capitol grounds next Wednesday for an Ag Day Celebration. Booths will features lots of items from flowers to trees to Foster Farms T Shirts and California Poultry Federation recipe cards. The place will be hopping. But most importantly a press event will be held at 11:30 a.m. featuring the year anniversary of the “Eat Local, Buy California Day” resolution that passed both the State Assembly and the State Senate unanimously. Speakers will include Assembly members Fiona Ma and Cathleen Galgiani, authors of the resolution and Senator Anthony Cannella who moved it in the Senate.

Foster Farms Ira Brill, director of marketing, will thank everyone for their work on this important resolution that urged Californians to mark Sunday as a day where only California Grown products are eaten. While we would like everyone to buy California Grown daily, just one day of dedicated California Grown consumption would generate more than $26 billion to the state economy. Brill will represent more than 12 associations (some will be on the stage) who sponsored the resolution, including poultry, apples, asparagus, salmon, eggs, walnuts, table grapes, wine grapes, avocados and cut flowers. The California Farm Bureau and the California Grown organizations will be on hand to support this resolution anniversary as well.

We also plan to surprise the media with a well known chef and political leader from the past… you will know more next week when you arrive in Sacramento for Ag Day!

Cost of corn putting companies out of business

The cost of corn has put many companies across the United States out of business in the past year. And today, a well known California company has announced that it will cease business by the end of the year. Fulton Valley Farms, well known for its free range, antibiotic free and organic chicken products, can no longer pay the high cost of feed and keep its doors open.

CEO Andrew Carlson said 185 jobs will be lost and he will cease production that totaled 12 million chickens per year.

Carlson says the cost of corn (which has more than doubled in the past year) is the reason for his decision. When you can’t raise the price of chicken to consumers fast enough to keep up with the ridiculously high cost of corn for feed, it’s time to go out of business.

He blames the use of corn for fuel as the reason for these outrageous corn prices. While he is a small company, loved by consumers particularly in the Bay Area and other markets throughout the West, he notes that the cost of corn as feed is also hurting larger companies in California and the nation.

Fulton Valley Farms was established in 1925 as the main processor for Central Coast Farms. Fulton Valley Farms processes their product in the heart of California near the farms where the chickens are raised.

“Our objective is met every time a customer’s needs are satisfied with our unique product,” Carlson pointed out. “We are proud to say that all our lines, organic, range, and traditional are all raised without the use of antibiotics, animal byproducts and hormones. Another trait that sets us apart from our competition is the freshness of our product. Product will leave our docks within 48 hours of the process date. This characteristic is noticed in the taste and texture, both greatly promoted by the freshness.”

Fulton Valley Farm’s closure is having an impact throughout the Valley, from feed companies and veterinary supplies to jobs at processing plants, trucking companies, distribution centers and other poultry companies. The poultry industry is not only a labor intensive business, but it impacts so many other businesses in the Valley and California.

Carlson isn’t the only company blaming the high cost of feed on ethanol mandates and subsidies. The largest squab cooperative in the world, Squab Producers of California in Modesto, also has some members who just can’t afford to pay the high corn prices and expect to make a profit. Cooperative President Bob Shipley says some of his growers have said that they may have no choice but to leave the business as well due to the feed costs.

“The ethanol mandates are foolish, and they must end FAST if we want to keep the animal protein business in a condition as we know it today,” Shipley says.

At least four U.S. poultry companies have either closed or announced they will close due to the price of corn. “If every chicken you raise is sold at a loss, how long can this go on,” one grower told me recently.

He has a point! I think Congress is listening and about to let the ethanol subsidies and tariff expire at the end of the year. We must be diligent and proactive to be sure Congress doesn’t pull any last minute shenanigans to extend either of these ridiculous laws. California’s poultry industry is joining with state and national colleagues to monitor Congress daily! Let your Member of Congress know how serious the issue of ethanol subsidies and mandates really is today, and how much more catastrophic it could be if something isn’t done soon.

The damage to our economy and to businesses continues. It is time to do the right thing and end the subsidies, then move on to the mandates themselves.

 

 

Folks… Make it a Habit to Eat California Grown Foods, Especially on Sundays!

“Eat Local, Buy California Grown Day” is now officially every Sunday following unanimous decisions in both the state Assembly and Senate. They approved Resolution No. 42 supported by almost 25 agricultural organizations, including the California Poultry Federation. Family-owned Foster Farms marketing department supported the effort as well, and helped kick off the resolution’s introduction during Sacramento’s Ag Day in March, passing out t-shirts emphasizing that when you buy California Grown, you get your chicken within 48 hours of processing.

Legislators loved the idea, and signed on in droves to support the resolution. Now we are getting resolutions passed by counties throughout the state, including Fresno, Stanislaus and Tulare counties. Merced, San Francisco and San Mateo counties are looking to pass similar resolutions in September, and we continue to work across the state for more support.

The resolution declares that “legislators and public officials should promote buying California Grown food products for the benefit of California consumers, California farmers, California employees, and California’s overall economy.”

Since California is home to the most abundant and diverse food supply in the world, there is no reason food dollars should be leaving California to support out-of–state, or even international producers.

If all Californians dedicated one day a week to eating only California Grown, it could represent a consumption increase of up to 4.2 billion pounds and $26.3 billion in sales.

On top of the financial benefits, there are other enormous pluses: California farmers and  agriculturists provide better quality, improved food safety, and higher environmental and animal welfare standards.

I’ve attached the state resolution for your perusal as we work to get more resolutions passed in cities and counties of the Golden State.

California Grown REsolution – Final

We’ve never been closer to ending the subsidy for corn ethanol than now

The U.S. Senate recently voted 73-27 in favor of an amendment by Senator Dianne Feinstein (D-Calif.) to eliminate the Volumetric Ethanol Excise Tax Credit (VEETC) and repeal the import tariff on foreign ethanol. The amendment was identical to the Ethanol Subsidy and Tariff Repeal Act, which was introduced by Senator Tom Coburn, M.D. (R-Okla.) and Senator Feinstein in May.

“Today’s overwhelming vote shows a bipartisan consensus to repeal irresponsible ethanol subsidies and tariffs,” Senator Feinstein said. “The 73 votes sent a powerful message that the days of big subsidies for ethanol are coming to a close. We must be serious about addressing the debt and deficit, and this is a good first step.”

The ethanol subsidy currently gives large oil companies 45 cents for every gallon of ethanol they blend with gasoline, even though much of that use is mandated by law. If the subsidy was repealed by July 1, as the amendment calls for, it will save approximately $2.7 billion for the remainder of 2011.

The ethanol tariff is comprised of a 54-cent-per-gallon secondary tariff and a 2.5 percent ad valorem tax. The ethanol tariff makes the United States nation more dependent on foreign oil by increasing the price of imported ethanol.

“Ethanol is the only industry I know of that receives a triple crown of government support: its use is mandated by law, it enjoys protective tariffs and oil companies receive federal subsidies to use it,” Senator Feinstein added. “These flawed policies, which cost taxpayers nearly $6 billion a year, must be changed.”

Right after this vote, the U.S. House of Representatives introduced a similar bill, led by Congressman  Wally Herger, to do just about the same thing as passed in the Senate.

But let’s not get too optimistic. The senate vote was only a primer for what’s to come, since any new legislation like this must originate in the House before the Senate can do anything. Their historic vote was huge for the anti-corn ethanol folks, like us, which is why now we see the House looking to do much the same thing.

But like everything that goes on in Washington, DC, we must be as vigilant as ever, and continue to let our leaders know how important this is to animal agriculture, the food industry, and the consumers who rely on food throughout the world. If you are concerned about jobs, then you should be with us in trying to eliminate these subsidies. These  corn subsidies have got to go, and not soon enough. But I urge you to send a note to your member of Congress, thank both Senators Feinstein and Boxer for their work to eliminate these subsidies, and make a pest of yourself.

If you are concerned about corn ethanol subsidies, don’t let today go by before contacting the office of your member of Congress. Now!

Praise Feinstein for attempt to end corn ethanol subsidies

US Senator Dianne Feinstein

A round of applause for California Senator Dianne Feinstein who has joined a chorus of influential Democrats and Republicans in calling for an end to corn ethanol subsidies. She joins just about every agricultural animal organization, the Sierra Club, United Food and Commercial Workers Union and many others in calling for the elimination of these outrageous payments. Last week she partnered with Senator Tom Coburn of Oklahoma, introducing the Ethanol Subsidy and Tariff Repeal Act, which will fully eliminate the Volumetric Ethanol Excise Tax Credit (VEETC) and fully repeal the tariff on imported ethanol. Cosponsors at that time included Democrat Senators Jim Webb (Virginia) and Ben Cardin (Maryland) and Republican Senators Richard Burr (North Carolina), Susan Collins (Maine) and James Risch (Idaho).

Feinstein said, “Ethanol is the only industry that benefits from a triple crown of government intervention: its use is mandated by law, it is protected by tariffs, and companies are paid by the federal government to use it. Ethanol subsidies and tariffs sap our budget, they’re bad for the environment, and they increase our dependence on foreign oil. It’s time we end subsidies that we cannot afford and tariffs that increase gas prices.”

What is so encouraging is that Feinstein and her democratic colleagues have joined a bi-partisan coalition of leaders in support of this legislation, including many new Tea Party members. This is truly a significant achievement for all of the animal industries and the environmental communities who don’t always agree on every issue. This week, however, we are loving the attention that the Feinstein-Coburn legislation has brought to California and around the nation. We must all do our part to educate our friends, neighbors and colleagues on the importance of ending these subsidies.

Executive Committee Lobbies Hard in Washington DC

Front: Richard Zacky, CPF Chairman; APHIS Administrator; Daniel Englejohn, USDA FSIS Deputy Administrator, Office of Policy, Program and Employee Development. Back: Bill Mattos, CPF President; CPF Past Chairman Robert Shipley; Dr. Elisabeth Hagen, USDA Undersecretary for Food Safety; CPF Vice Chairman Richie King; T.J. Myers, Associate Deputy Administrator, APHIS; Brian Ronholm, Deputy Undersecretary, Food Safety; and Judy Riggins, USDA FSIS

The CPF Executive Committee, Chairman Richard Zacky, Vice Chairman Richie King and Past Chairman Bob Shipley joined CPF President Bill Mattos in Washington, DC for two days of intense lobbying. The four concentrated efforts on legislation that would eliminate the subsidy for corn ethanol and eliminate the tariff for bringing in ethanol from outside the country.

Every California member they visited were on board with the industry’s concerns about corn ethanol subsidies. Senator Dianne Feinstein and Barbara Boxer support senate efforts to end the subsidies, while Congressional members Dennis Cardoza, Jim Costa, Devin Nunes, Jeff Denham and John Garamendi also echoed their support for ending the subsidies. Most are also in favor of ending the tariffs on ethanol coming into the United States from other countries.

The Executive Committee also met with Dr. Elisabeth Hagen, USDA Undersecretary of Food Safety, and APHIS Administrator Gregory Parham and members of their staffs.

National Chicken Council President Mike Brown and National Turkey Federation President Joel Brandenberger also joined the CPF in a dinner meeting with some members of Congress.

California’s Budget could have Big Impact on Poultry

Special Note: This is my “Viewpoint” article which will be published in the Poultry Times magazine later this month.

California is the home of the freshest poultry in America and the place where organic chicken got its name. We’ve fought for both the “fresh” and “organic” labels during the past 20 years that I’ve worked for this amazing organization. And today, our members, like most poultry companies across the country, are facing the highest feed costs in history and in many cases, national leaders who just don’t get it. Both the price of feed and our leaders’ beliefs will change, but that may take the rest of this year.

And this year we have many challenges and many opportunities. From California’s perspective, we have consumers who want to buy local products that are fresh and natural, but they are also price conscious in this time of record food and gas prices. They are being stretched like many of our companies searching for ways to make some financial sense to these challenging times.

And California certainly has its challenges. I write this column about a week from the date that our Governor Jerry Brown (we knew him as Governor Moonbeam when he first served 30 years ago) has asked for a budget. If he gets it, it would be the first time in many years that we’ve had a budget before late summer or fall. But he needs a budget so he can also get a measure on the June ballot that asks Californians to extended a tax hike (approved a couple years ago) for five more years.

Most Republicans say they will “never” vote to put this on the ballot; but there are a few (most in California’s Central Valley) who have not signed a “no tax” pledge. They want the governor to include state pension reform and a few more items in the budget before they will vote to put a tax issue on the ballot. So the next week will be one of the most interesting times in California’s governing history.

Back to Brown. He is no moonbeam anymore. Today he is married to Anne Gust, former CFO to the Gap stores and the woman credited with keeping Brown focused and on task. She sits in many of his meetings as his appointed “counsel” with no pay. She lives with him a couple blocks from the Capitol in a loft during the week, and they are seen about town surprising legislators by showing up in restaurants and asking if they can join them. They are undoubtedly Sacramento’s power couple. They spend most weekends in their Oakland Hills home.

Brown’s budget has slashed every area of California’s budget except for pensions, which Republicans are mad about. To his credit though, few areas are immune to tax cuts. He has eliminated redevelopment zones, angering cities and counties; and enterprise zones angering the poultry industry for one. We are lobbying heavily right now to keep these zones in cities where we have processing plants. These cities are located in some of the highest unemployment areas of the United States, and enterprise zones have made them better. We just have to convince enough Democrats and Republicans now!

Brown has slashed payments to poor people, university funding and wiped out $32 million going to the state and local fair industry. If the fair funding stays gone, more than 26 fairs will easily close next year. His pencil eliminated about $12.5 billion in spending from the budget, and our deficit sits about twice that. So unless California residents vote to extend the tax increases (about $12.5 billion), Brown says he will slash even more, and many businesses may start to see some of their tax breaks go away in the next round.

So you could say we are in a war of sorts right now, and while we are talking about big money, California is also the world’s sixth largest economy. We feed more people (37 million) here than anywhere else in the nation, and our 300-plus agricultural crop production has been a bright economic force during this awful recession. Many farmers have made good money the past five years with almonds, walnuts, fruits and vegetables at the top of the list.

California’s poultry and egg industry has made the right business moves to also enjoy five years of success, and now, as we begin one of our most challenging we must be prepared to tell our story, fight for what we believe in and convince consumers that “California Grown” means that our chickens cross the road, not the country, to get to their dinner tables!