Rural Update10/31/01

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1. Harkin to Release Farm Bill This Week
2. Groups Call for Shift to Farm Based Energy
 
3. Farm Based Fuels and Market Concentration
 
4. House Leaders Piggy-Back Fast Track and GMO Labeling

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1. HARKIN TO RELEASE FARM BILL THIS WEEK

Best indications point to November 1 as the release date for Senate Agriculture Chairman Harkin's long-awaited Farm Bill proposal. Based on what we have heard so far, we expect the following from the bill: 1) a conservation title that brings real improvements in policy and includes a Conservation Security Act - like component, but provides less funding than hoped for; 2) an energy title that will promote on-farm and local level renewable energy; 3) a promising competition title; 4) a commodity title that may be problematic for family farm and sustainable agriculture groups. Washington insiders are quick to point out that Harkin's task with this farm bill is a momentous one: he needs to pass a farm bill out of a committee comprised of eight Senators who didn't vote in favor of the environment a single time in 1999-2000 and who typically side with argi-business and commodity sectors over that of family and independent farmers.. We will have a review of the bill posted on www.familyfarmer.org as soon as it becomes available.

2. GROUPS CALL FOR SHIFT TO FARM BASED ENERGY

As the Senate begins in earnest to rethink federal farm policy, a group of 20 organizations have signed a letter to Senate leaders "calling upon them to lead a bold national shift in America's economy toward greater energy efficiency and use of farm-based renewable energy." In a press release (Oct. 29, 2001) distributed by the Minnesota Project and the Institute for Agriculture and Trade policy, the groups say that the re-authorization of the federal farm bill provides "an immediate opportunity....to formulate policies that benefit farmers, energy security, and the environment." Calling for a shift away from reliance on foreign oil and vulnerable coal and nuclear power plants, they identify a suite of benefits in the development of farm-based sources of renewable energy. These include ethanol, biodiesel, biomass, methane, hydrogen and "especially wind generated power in the short term." The groups say they have received strong support for this initiative from several Senators and their farm-based energy agenda can be viewed at: http://www.iatp.org/enviroag.

3. FARM BASED FUELS AND MARKET CONCENTRATION

As policy makers begin to consider the viability of farm based energy sources as an alternative income source for farmers it's important to recognize the landscape of the market. Clearly, one of the biggest obstacles family and independent farmers face with other farm commodities is the market control by a few large agribusiness concerns. A study of the ethanol market reveals similar trends. According to statistics in a Congressional Research Service report (March 2000), the ethanol market is monopoly virtually controlled by one agribusiness giant, Archer-Daniels Midland. The CRS reports that ADM produces 797 million gallons of the 2007 million gallons of ethanol manufactured annually. This gives them an annual market share of roughly 40%, or a seven-fold increase over their nearest competitor. Moreover, according to the CRS report, a handful of companies including notables like Cargil, account for about 60% of the ethanol market.

For more information see: http://www.cnie.org/nle/crsreports/energy/eng-59.cfm.

4. HOUSE LEADERS PIGGY BACK FAST TRACK AND LABELING

Last week the House Ways and Means Committee sent a "fast track" or presidential "Trade Promotion Authority" bill to the House floor that contained a provision that would make labeling of foods, including GMO foods, an "illegal barrier to trade."

According to the National Campaign for Sustainable Agriculture, this provision would "require that U.S. trade negotiators seek an international ban on the labeling of genetically engineered ingredients and use of the precautionary principle." News of this development seems to be galvanizing a budding environmental, farming and labor alliance that is against fast track and in support of GMO labeling. The AFL-CIO has stepped up to the plate and is funding a hotline that allows callers to connect to their elected officials free of charge. They are requesting that people dial 1-800-393-1082, ask for their representatives and tell them to oppose H.R. 3005. For more information see: www.purefood.org.


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