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House Ag acts on grain export inspections, livestock reports

 

 

By SUSAN BLOWER

Indiana Correspondent

 

WASHINGTON, D.C. — Concerns about federal oversight of grain exports during disruptions, such as labor disputes, have fueled congressional debate over the U.S. Grain Standards Act, portions of which will expire Sept. 30.

HR 2088, the U.S. Grain Standards Reauthorization Act of 2015, recently passed the House Agriculture Committee and will next go to the full House of Representatives for a vote. The Senate began hearings on the matter last week.

"It is essential for grain inspections to take place in a timely fashion, given that 95 percent of the world’s population resides outside the U.S. These inspections guarantee that we have access to global markets," said Mike Conaway (R-Texas), chair of the House Agriculture Committee.

Indiana exports $1.7 billion of soybeans and another $800 million of feed grains, which support better prices for Hoosier grain farmers, according to the Indiana Soybean Assoc.

In addition, new language in HR 2088 establishes a clear timeline for federal intervention to inspect bulk grains and oilseeds during a crisis. The labor dispute at the Port of Vancouver last year highlighted the need for more clarity, according to grain commodity groups, who lobbied for the measure.

"If, in the unlikely event that grain inspections are disrupted, like in the case of the Port of Vancouver last year, the bill gives USDA a clear timeline to resume inspections or to bring in another state inspection agency," said Collin Peterson (D-Minn.), ranking Democrat on the House Ag Committee.

The American Soybean Assoc. (ASA) and the National Assoc. of Wheat Growers (NAWG) said that disruptions at ports in the past two years have threatened the reliability of grain exports.

NAWG sent a letter to the House Ag Committee that reads in part: "The sort of disruption to our export system that occurred last year at a United Grain facility in the Pacific Northwest cannot be allowed to occur again. Vessels were not loaded, barges could not deliver, the rail transportation system slowed down, and our foreign customers began to question our ability to deliver on contracts."

ASA director Bill Gordon testified last week before a Senate committee about the concerns of all grain commodities in light of previous disruptions.

"Our industry and our foreign customers are highly dependent on having a reliable and transparent export inspection and marketing system. It is critical that the requirement for mandatory official inspection of exported grains and oilseeds under the Grain Standards Act be maintained," Gordon said.

"In addition, there must be no question that, in the event of a disruption of services, (the Federal Grain Inspection Service) will continue to be required to step in to ensure the reliability and reputation of the U.S. inspection and weighing system," Gordon said.

The U.S. Grain Standards Act was first enacted in 1916 to authorize the federal government to establish official marketing standards of grains and oilseeds. It also provides federal oversight of inspections and weighing, as well as setting grain standards of quality.

Most of the act is permanently authorized, such as mandatory inspection and weighing of exported grain. However, certain provisions are set to expire this September. A lapse in authorization could disrupt the system of inspections and weighing but not halt official inspections. (www.NationalAgLawCenter.org)

Peterson told Farm World he expects the House to support the bill, but he doesn’t know when it will go to the floor for a vote.

"The Republican majority controls the calendar, and a date for consideration has yet to be announced. The Senate will also have to take up the legislation," Peterson said last week.

"The U.S. Grain Standards Reauthorization Act of 2015 will continue the inspections provided by the Federal Grain Inspection Service. These inspections provide a ‘gold standard’ assurance, backed by the federal government, to both grain buyers and sellers. The current system is working well and this bill will ensure that we have quality, qualified inspectors on the job," Peterson said.

Specific grains overseen by the U.S. Grain Standards Act are barley, canola, corn, flaxseed, oats, rye, sorghum, soybeans, sunflower seed, triticale, wheat and mixed grain.

Through 2011-2013, about 273 million metric tons of grain – about 56 percent of U.S. production – was annually inspected by officials on average. Of the inspected amount, 62 percent was for domestic shipment and the rest for export. Domestic shipments do not require official inspection, but the service is available and often performed, according to the National Ag Law Center.

A second bill, the Mandatory Price Reporting Act of 2015, also was approved by the House Ag Committee. It would reauthorize livestock mandatory price reporting, which has become an essential tool for producers and packers to compete as the industry continues to evolve, Conaway said.

Peterson said that HR 2051 would give producers access to transparent, accurate and timely market information.

"This bill makes mandatory price reporting ‘essential’ in case we ever find ourselves in another government shutdown," Peterson said.

Speaking of both bills, Conaway said, "These are important laws for agriculture, and I appreciate the input from industry and stakeholders, and the diligence of my colleagues on the committee. These bills promote competition and certainty."

5/13/2015