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Volume 2, Issue 38 - December 2, 2011

 

AAM's 'Parity Perspectives' 

Your weekly insight into agriculture news, advocacy and opinions 

 

 

News

 

Bill Gates Says US Clean Energy Spending Should Equal Defense Outlay

In a recent article for Science magazine, Bill Gates advocated for spending levels for clean energy research that equal those of health and defense research. Gates specified that the government should not just be offering market incentives for research, but should actually be spearheading the efforts themselves. Along with the American Energy Innovation Council, he has also endorsed the reduction of subsidies to other "well-established" sectors of the energy industry. 

E&E News (11/21)

 

White House Refuses to Say Whether Obama Would Sign Payroll Tax Extension that Adds to Deficit

This week the White House would not say if President Obama would act to prolong income tax cuts that are set to expire at the end of the year. Congressional Republicans say these could be paid for using savings discussed by the supercommittee, included agriculture assistance.

The Washington Post (11/29)

 

US Farm Income to Reach Record $100.9 Billion, USDA Says

Farm income is increasing by 28 percent this year due to higher crop and livestock prices. The U.S. also shipped $137.4 billion in farm goods overseas, making 2011 the highest recorded year for exports of farm goods in U.S. history. The projected higher incomes and land values for farmers could help with the purchase of new equipment and building new infrastructure.

Bloomberg (11/29)   

 

Ethanol Increases Second Day on Signs of Stronger US Economy

This week is the first time since Nov. 16 where monthly ethanol futures have shown improvement. The large increase in the index is attributed to the increase in U.S. sales from last week which rose 5.4 percent compared to last year.

Bloomberg (11/29)

 

Clean Food, via Clean Fuel

CleanStar Mozambique is a business in Africa, partnered with IBC of America, which is pioneering the replacement of black carbon with clean fuels to cook food. Their upcoming facility will process cassava into an ethanol-based cooking fuel, a clean alternative.

Biofuels Digest (11/24)

 

Iowa Farmers Prep for New Cellulosic Ethanol Biofuel Plant

Project Liberty is an ethanol refinery in construction in Emmetsburg, Iowa set to open in 2013 which would be the nation’s first biofuel plant to produce ethanol from corn waste on a commercial scale. However, the POET biofuels company could see problems if the Biomass Crop Assistance Program (BCAP) receives cuts in the 2012 federal budget.

Triple Pundit (11/14)

 

Farm Bill Developments

 

Farm Bill Resets for 2012: Debate Could Center around Target Prices

The failure of the supercommittee to reach a budget deal will lead House and Senate agriculture leaders to restart the farm bill process for 2012. Leaders are expected to debate cutting direct payments, improving crop insurance programs and raising the target prices for commodities.

The Progressive Farmer (11/30)

 

Despite Public Impact, Congressional Deficit-Reduction ‘Supercommittee’ Deliberated in Private

Advocates are criticizing the supercommittee for holding most of its sessions in closed door private rooms. Only five of the meetings were public hearings and the records from the closed door sessions will not be published for 20 years.

Washington Post (11/22)

 

Advocacy & Opinions

 

Renewable Reserve Accounting: Building the Biofuels Balance Sheet

Earlier this month at the Advanced Biofuels Markets conference Ceres CEO Richard Hamilton said the biofuels industry should have its own reserve accounting system, parallel to the system for the gas and oil industries. Hamilton argues this would move biofuels companies from the ag sector to the energy sector, where there are fewer government mandates and regulations. He also said this would cost less in the long run because there would not be the cost to find and discover resources as there is with oil.

Biofuels Digest (11/29)

 

Livestock Farmers Warn Ethanol Industry’s Demand for Corn Could Lead to Meat Shortages

Livestock farmers are claiming that the current rules in the Renewable Fuel Standard should be rewritten. The law requires that the nation produce $7.5 billion gallons of renewable fuel by 2012. Cattle and hog producers state that this is too high and they want a plan in place to protect them from potential meat shortages if corn production drops.   

Washington Post (11/23)

 

NFU: Agriculture Appropriations Bill a Disappointment for Family Farmers

On Nov. 17, National Farmers Union (NFU) President Roger Johnson issued a statement about the passage of H.R. 2112. Johnson expressed disappointment with the legislation’s agriculture appropriations section that would not allow additional rulemaking for the Grain Inspection, Packers and Stockyards Administration (GIPSA) rule and would limit funding for the Commodity Futures Trading Commission (CFTC). Johnson said this legislation worked for the interests of consolidated meat processors and not fairness in the livestock marketplace.

Press Release (11/17)

 

Policy Pennings #590-592 

Daryll Ray’s and Harwood Schaffer’s three most recent weekly columns examined an economist's perspective on crop insurance, the merits of a crabgrass relative, and what to expect now that the Farm Bill is back at square one.

Agricultural Policy Analysis Center

 

Contributors: 

Jacob Antrican, Cathy Cavander and Katherine Meade

UPDATED!

USDA Commodity

Parity Index

Nov 2011 - Pages 31-33

Next release: Dec. 30, 2011

 

AT A GLANCE

 

News

Bill Gates Says US Clean Energy Spending Should Equal Defense Outlay

 

White House Refuses to Say Whether Obama Would Sign Payroll Tax Extension that Adds to Deficit

 

US Farm Income to Reach Record $100.9 Billion, USDA Says

 

Ethanol Increases Second Day on Signs of Stronger US Economy

 

Clean Food, via Clean Fuel

 

Iowa Farmers Prep for New Cellulosic Ethanol Biofuel Plant

 

Farm Bill Developments

Farm Bill Resets for 2012: Debate Could Center around Target Prices 

 

Just a Sliver of Budget-Cutting Anger

 

Renewable Reserve Accounting: Building the Biofuels Balance Sheet

 

Livestock Farmers Warn Ethanol Industry's Demand for Corn Could Lead to Meat Shortages

 

NFU: Agriculture Appropriations Bill a Disappointment for Family Farmers

 

Policy Pennings #590-592 

 

 

Contact Details

 

www.aaminc.org

 

Larry Matlack

(620) 727-0333

larry@stingerltd.com

Do you know an AAM member or ally that might like to receive our weekly "Parity Perspectives' newsletter? E-mail us at aam@kscw.com to join the list!

 

AAM stands for food and fiber producer and commodity PARITY. Parity is a term that denotes a fair commodity price adjusted for inflation to the commodity prices.  The Statutory Parity Index, established during the depression of the 1930s, reflects prices received in 1910-1914 (considered to be the last 5 normal years prior to the outbreak of World War I) when producers, middlemen, and consumers had a balanced income. Today, many commodities average less than PARITY. Meanwhile costs of trucks, combines, implements, tractors, and hired help have risen dramatically. AAM still demands a parity price for commodities. Go to AAM's website: http://www.aaminc.org for more information.