Mar 2014
House Ag Approps to hold hearings Wednesday, Thursday
March 31, 2014 | 09:53 AM
The House Agriculture Appropriations Subcommittee will hold hearings on President Barack Obama’s budget requests for fiscal year 2015 for two divisions of the Agriculture Department this week Read More...
World Farmers’ Organization makes remarkable progress
March 31, 2014 | 09:53 AM
The World Farmers’ Organization, led by former North Dakota Farmers Union president Robert Carlson, has made remarkable progress since 2010 in bringing together leaders of 70 farm groups from 50 countries to address climate change and other issues, Jerry Hagstrom writes today from Buenos Aires in his National Journal column. Read More...
Vilsack, Froman, Hamburg to testify on Hill Thursday
March 31, 2014 | 09:53 AM
Agriculture Secretary Tom Vilsack, U.S. Trade Representative Michael Froman and Food and Drug Administration Commissioner Margaret Hamburg will all testify on Capitol Hill on Thursday. Read More...
Mexico opposes U.S. sugar dumping petition
March 31, 2014 | 09:53 AM
The Mexican government will oppose the petition filed Friday by the U.S. sugar industry alleging that Mexico is dumping subsidized sugar in the United States, Fox News Latino reported. Read More...
Western Growers may withhold GOP campaign contributions over immigration
March 31, 2014 | 09:53 AM
Western Growers, which represents California and Arizona fruit and vegetable producers, is so frustrated over the Republican Party’s opposition to immigration reform that it may withhold campaign contributions unless the GOP moves forward on immigration, The New York Times reported on Sunday. Read More...
Scenes from Argentina
March 31, 2014 | 09:53 AM
When the delegates to the World Farmers' Organization meeting got tired of listening to speeches, they had the opportunity to walk outside the Sociedad Rural Argentina conference center and watch Argentine ranchers and their workers prepare for a horse sale and a show. There was also shopping for classic Argentine products available. Read More...
U.N. panel reports impact of climate change on food systems
March 31, 2014 | 09:53 AM
The Intergovernmental Panel on Climate Change, which met in Yokahama, Japan, last week, has issued a report finding sweeping impacts that place the world’s food supply at risk unless greenhouse gas emissions are controlled. Read More...
FSA encourages early reporting of records
March 28, 2014 | 03:00 PM
The Agriculture Department's Farm Service Agency is urging farmers and ranchers who plan to participate in FSA programs, particularly disaster programs, to submit updated reports on their farm records and business structures before April 15. Read More...
World Farmers’ Organization elects Kendall
March 28, 2014 | 03:00 PM
BUENOS AIRES — The World Farmers’ Organization today elected Peter Kendall, former president of the National Farmers Union in the United Kingdom, as its new president.
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House members introduce ESA bills, plan hearing
March 28, 2014 | 03:00 PM
House Natural Resources Committee Chairman Doc Hastings, R-Wash., Rep. Cynthia Lummis. R-Wyo., Rep. Randy Neugebauer, R-Texas, and Rep. Bill Huizenga, R-Mich., have each introduced a bill to make changes to the Endangered Species Act. Read More...
WFO to meet next year in Milan
March 28, 2014 | 03:00 PM
The World Farmers’ Organization will meet next year in Milan, Italy, so that delegates can attend Expo Milano 2015, the international agricultural exhibition that will be focused on “feeding the planet, energy for life.” Read More...
USDA outlines changes to farm loan programs
March 28, 2014 | 03:00 PM
Agriculture Secretary Tom Vilsack this week announced changes to Farm Service Agency loan programs to comply with the new farm bill. Read More...
McCarthy testifies on waters rule and biofuels; Vilsack says EPA listened to USDA
March 28, 2014 | 03:00 PM
Environmental Protection Agency Administrator Gina McCarthy on Thursday defended the new “waters of the United States” rule before a congressional committee, DTN/The Progressive Farmer reported. Read More...
Obama administration to release biogas map to cut methane emissions
March 28, 2014 | 03:00 PM
In June, the Agriculture Department, the Environmental Protection Agency, the Energy Department and the dairy industry will jointly release a “Biogas Roadmap” outlining voluntary strategies to accelerate adoption of methane digesters and other cost-effective technologies to reduce U.S. dairy sector greenhouse gas emissions by 25 percent by 2020, the White House announced today as part of a climate action plan. Read More...
Sugar growers file antidumping, countervailing duty cases
March 28, 2014 | 03:00 PM
U.S. sugar growers today filed antidumping and countervailing duty petitions against Mexico’s sugar industry, contending it has dumped subsidized sugar onto the U.S. market and inflicted harm on U.S. growers and taxpayers. Read More...
Raw milk bills introduced but dairy industry fights back
March 28, 2014 | 03:00 PM
Reps. Thomas Massie, R-Ky., Chellie Pingree, D-Maine, and a bipartisan coalition of 18 other lawmakers have introduced legislation to allow interstate sale of raw milk. Read More...
Court rules against AMI in COOL challenge
March 28, 2014 | 03:00 PM
In a blow to the meat industry’s campaign against country-of-origin labeling for red meat, the U.S. Court of Appeals for the District of Columbia Circuit today upheld a lower court ruling that denied a request from the American Meat Institute for a preliminary injunction on the Agricultural Marketing Service’s enforcement of the rule implementing the labeling program. Read More...
Quinn: Nominate farmers for World Food Prize
March 27, 2014 | 05:51 PM
BUENOS AIRES — More farmers should be nominated for the World Food Prize, Kenneth Quinn, president of the World Food Prize Foundation, said here today.
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Obama presents White House garden seeds to pope
March 27, 2014 | 05:51 PM
President Barack Obama today presented Pope Francis with a custom-made chest containing fruit and vegetable seeds used in the White House kitchen garden, the White House announced today. Read More...
First lady to plant 2014 White House garden next week
March 27, 2014 | 05:51 PM
First Lady Michelle Obama will plant her sixth kitchen garden next week, the White House announced today. Read More...
Fish and Wildlife lists lesser prairie-chicken as ‘threatened’
March 27, 2014 | 05:51 PM
The U.S. Fish and Wildlife Service today announced the final listing of the lesser prairie-chicken as “threatened" under the Endangered Species Act, as well as a final special rule under section 4(d) of the ESA that the agency, a division of the Interior Department, will limit regulatory impacts on landowners and businesses from this listing. Read More...
United States to participate in Expo Milano 2015 food security fair
March 27, 2014 | 05:51 PM
The United States will participate in Expo Milano 2015, a world’s fair whose theme is “Feeding the planet — Energy for life,” President Barack Obama said in Italy today, according to two National Security Council tweets. Read More...
FSIS approves final rule for Korean chicken
March 26, 2014 | 05:05 PM
The Agriculture Department’s Food Safety and Inspection Service today published a final rule that would grant equivalency status to the Republic of Korea so that it could begin to export poultry products to the United States. Read More...
Despite U.N. resistance, WFO pushes ahead on farmer representation
March 26, 2014 | 05:05 PM
BUENOS AIRES — The United Nations appears to be resisting giving farmers a formal voice in its proceedings, particularly on climate change, but the World Farmers’ Organization is continuing to press for that role and, in the meantime, is working on other issues important to farmers worldwide, Robert Carlson, the outgoing WFO president, said in a speech and interview here today. Read More...
Vilsack discusses plans for FSA office restructuring
March 26, 2014 | 05:05 PM
Agriculture Secretary Tom Vilsack outlined his 2015 budget for the Senate Appropriations Agriculture subcommittee this morning, discussed prospects for the nation's Farm Service Agency offices, and touched on expected implementation schedules for the new farm bill programs this year. Read More...
Wiedeman named EPA acting agriculture adviser
March 26, 2014 | 05:05 PM
Environmental Protection Agency Administrator Gina McCarthy has named Allison Wiedeman as her acting agriculture adviser. Read More...
World farm leaders meet in Argentina about climate change
March 26, 2014 | 05:05 PM
BUENOS AIRES — Close to 300 representatives of 70 farm organizations from 50 countries gathered here today for the fourth general assembly of the World Farmers’ Organization, a group formed in 2011 to represent the interests of farmers at the United Nations, the World Trade Organization and other international forums. Read More...
McCarthy to testify before House Appropriations
March 26, 2014 | 05:05 PM
Environmental Protection Agency Administrator Gina McCarthy will testify Thursday before the House Appropriations Committee on President Barack Obama's proposed 2015 budget for the agency. Read More...
Farm Bureau hires policy communications director
March 26, 2014 | 05:05 PM
The American Farm Bureau Federation has named Will Rodger as director of policy communications. Read More...
Hagstrom scheduled for The Kojo Nnamdi Show
March 26, 2014 | 12:48 PM
Jerry Hagstrom, founder and executive editor of The Hagstrom Report, is scheduled to appear on the Kojo Nnamdi Show on public radio today to discuss rising food prices and the impact on First Lady Michelle Obama's campaign to encourage people to eat healthier and get more exercise. Read More...
Borlaug bronze dedicated in U.S. Capitol
March 25, 2014 | 09:43 PM
Congressional leaders and Iowa officials gathered in the U.S. Capitol today to unveil the statue of Norman Borlaug, the Iowa-born scientist who developed the strain of wheat that led to the “Green Revolution” that is credited with saving 1 billion lives. Read More...
Concannon addresses Congressional intent on $20 LIHEAP-SNAP program connection
March 25, 2014 | 09:43 PM
Kevin Concannon, Agriculture undersecretary for food, nutrition and consumer services, told the House Agriculture Appropriations Subcommittee today that if Congress didn’t want states to increase energy assistance payments to food stamp recipients in order to maintain their benefits under the Supplemental Nutrition Assistance Program (SNAP), then Congress shouldn’t have written that standard into the new farm bill. Read More...
EPA, Army Corps release waters rule
March 25, 2014 | 09:43 PM
The Environmental Protection Agency and the U.S. Army Corps of Engineers today released a long-anticipated rule defining the waters of the United States. Read More...
CYMMT announces stem wheat rust alert and new partnership to boost wheat yields
March 25, 2014 | 09:43 PM
The International Maize and Wheat Improvement Center (known by its Spanish acronym CIMMYT), where scientist Norman Borlaug conducted the research that developed the high-yielding semi-dwarf wheat that created the Green Revolution, celebrated the 100th anniversary of Borlaug’s birth this week by discussing the continuing problem of stem rust and announcing a new partnership to increase wheat yields. Read More...
House Ag Approps to hold three hearings this week
March 24, 2014 | 07:11 PM
The House Agriculture Appropriations Subcommittee will hold three hearings this week on President Barack Obama’s fiscal year 2015 budget request. Read More...
Vilsack to testify before Senate Ag Approps
March 24, 2014 | 07:11 PM
Agriculture Secretary Tom Vilsack will testify before the Senate Agriculture Appropriations Subcommittee on USD’s fiscal year 1015 budget request on Wednesday. Read More...
Borlaug statue unveiling a highlight of Ag Day
March 24, 2014 | 07:11 PM
The unveiling of the statue of Norman Borlaug, the Iowa-born scientist who developed the wheat that led to the Green Revolution, will be the highlight of National Agriculture Day on Tuesday. Read More...
Vilsack blogs on women and girls in agriculture
March 24, 2014 | 07:11 PM
Agriculture Secretary Tom Vilsack on Friday blogged on the role of women in agriculture on the White House Council on Women and Girls blog site. Read More...
USDA, critics spar over NIOSH poultry inspection study as commission plans human rights hearing on issue
March 24, 2014 | 07:11 PM
Officials from the Agriculture Department’s Food Safety Inspection Service are pointing to a study released last week by the National Institute for Occupational Safety and Health as proof that the changes in poultry inspection can proceed without endangering workers, while critics say the study proves their point that the working conditions for inspectors in meat plants are dangerous. Read More...
U.S. questions India wheat subsidies
March 24, 2014 | 07:11 AM
The United States questioned India's subsidies for wheat exports at a World Trade Organization Agriculture Committee meeting in Geneva Friday, Washington Trade Daily reported today. Read More...
Inspector general: USDA needs management controls, IT security fixes amidst audits, investigations
March 07, 2014 | 04:10 PM
Agriculture Secretary Tom Vilsack and Deputy Secretary Krysta Harden have focused on the importance of avoiding fraud and payment errors within USDA, but they need to push that message deeper into the management levels of the department, USDA Inspector General Phyllis Fong told the House Agriculture Appropriations Subcommittee this week as she detailed her investigations and audits of a range of agencies. Read More...
Pennsylvania boosts LIHEAP payments to avoid SNAP cut
March 07, 2014 | 04:10 PM
Pennsylvania has become the third state and the first one run by a Republican governor to increase its payment under the Low-Income Home Energy Assistance Program to $20 per month to avoid a cut in food stamps, The Philadelphia Inquirer reported Thursday. Read More...
Froman, Vilsack: Trade progress with Vietnam, Malaysia; still working hard on Japan and Canada
March 07, 2014 | 04:10 PM
In a broadcast to farm radio stations, U.S. Trade Representative Michael Froman said today that negotiators working on the Trans-Pacific Trade Partnership have made progress in negotiations with Vietnam and Malaysia, two Asian countries with large populations, but are still pushing Japan and Canada to change their trade rules. Read More...
Fed releases comments on ag conditions
March 06, 2014 | 05:55 PM
The Federal Reserve Board on Tuesday released its regular report on economic conditions, including comments that agricultural markets have softened in several areas of the country. Read More...
USDA: Farm bill implementation started February 7
March 06, 2014 | 05:55 PM
The farm bill provisions that call for implementation of certain programs 30 days after enactment took effect immediately when President Barack Obama signed the farm bill on February 7, an Agriculture Department spokeswoman told The Hagstrom Report today. Read More...
Obama signs drought information system bill
March 06, 2014 | 05:55 PM
President Barack Obama today signed the “National Integrated Drought Information System Reauthorization Act of 2014,” which authorizes appropriations for the National Integrated Drought Information System (NIDIS) through fiscal year 2018 and requires the National Oceanic and Atmospheric Administration to report to Congress on the implementation of the NIDIS. Read More...
New Montana senator joins Ag committee
March 06, 2014 | 05:55 PM
Sen. John Walsh, D-Mont., has joined the Senate Agriculture Committee and made his first speech in the committee today. Read More...
USDA announces farm bill meetings
March 06, 2014 | 05:55 PM
The Agriculture Department has announced a series of 12 meetings on sections of the farm bill for stakeholders in each section. Read More...
CFTC nominees promise ag sensitivity as they enforce Dodd-Frank
March 06, 2014 | 05:55 PM
If futures industry executives were hoping for a lighter touch from the Commodity Futures Trading Commission after Chairman Gary Gensler left, they did not hear it today when three nominees for the commission told the Senate Agriculture Committee they would pay attention to agriculture in strictly enforcing the Dodd-Frank financial services reform act, while acting CFTC Chairman Mark Wetjen asked the House Agriculture Appropriations Subcommittee for more resources to enforce the law.
In her opening statement at a confirmation hearing, Senate Agriculture Committee Chairwoman Debbie Stabenow, D-Mich., noted that the last time the committee met to confirm a new chairman of the committee, “we were in the middle of a global financial crisis so deep that 8 million jobs were lost.”
The Dodd-Frank Wall Street Reform and Consumer Protection Act “ushered in a new era of accountability and transparency in the markets, but that only works if the law is implemented and enforced, and a significant part of that falls to the CFTC,” Stabenow told the nominees
She also told them they would have to ensure that the CFTC is “keeping a watchful eye on market participants like clearinghouses, exchanges, and swap dealers” and that they “will have an obligation to make sure that we never see another MF Global or Peregrine Financial shatter faith in either the markets or the ability of regulators to oversee those markets.”
Timothy Massad
Some futures industry executives considered Gensler to have been an overzealous regulator, but there were no signs today that Timothy Massad, the nominee to succeed him, or the other commissioner nominees propose to use a lighter touch.
Industry executives have suggested that strict U.S. regulation will send futures business overseas, but Sen. Richard Blumenthal, D-Conn., said Massad has the stature “to help impose the high bar we need on the international regime.”
Blumenthal introduced Massad, who maintains a home in Norwalk, Conn., as a constituent.
Massad, who as a Treasury official he has been working on the fiscal crisis for the past five years and worked on derivatives as a lawyer, started his testimony by pointing out that “excessive risk related to derivatives, particularly at the American International Group, was one of many factors that contributed to that crisis.”
The government has recovered every taxpayer dollar committed to prevent the collapse of AIG and made a profit, Massad said, but “We must never forget that the true cost of the financial crisis is not the fiscal cost of the programs. It is the millions of jobs lost, the homes foreclosed, the retirements postponed and the dreams deferred.”
“I believe there is nothing more important than a robust enforcement program in order to protect the integrity of our financial markets,” Massad continued.
Christopher Giancarlo
Christopher Giancarlo, a Republican nominee to replace the unexpired term of Jill Sommers, who left last year, thanked Senate Minority Leader Mitch McConnell, R-Ky., for backing his nomination.
Giancarlo, an executive with an intermediary company in the wholesale financial markets, said, “Without question counterparty exposure related to bilaterally cleared over-the-counter (OTC) swaps helped amplify and spread the financial crisis.”
“I have been a consistent advocate for practical and effective implementation of the three pillars of Title VII of Dodd-Frank: enhances swaps transparency, regulated swaps execution and central counterparty clearing,” he said. “My support for these reforms is based not on academic theory or political ideology. It is based simply on practical experience.”
But Giancarlo added that, “if excessive regulation arbitrarily increases the cost of risk management, the overall economy will suffer. If confirmed, I will commit myself to ensuring proper balance.”
Sharon Bowen
Sharon Bowen, a Democratic nominee for the seat now held by Bart Chilton — who continues to serve even though his term has expired — said she would combine her experience as a securities lawyer with her background in her approach to the agency.
“As the youngest of five children raised with modest means in the segregated, small town of St. Julien’s Creek, Va., I understand the importance of being the voice of the under-represented and small business owners who have not had a seat at the table as I do today,” she said.
Bowen noted there are differences between the securities and futures markets.
“Capital formation in the securities market is different from the management of risk and price volatility in the futures markets,” she said.
“Each has its own nuances that impact consumers and end-users. I recognize that our physical commodity markets need to be protected from excessive speculation and manipulation. And we must acknowledge that esoteric and other creative financial products don’t always benefit consumers.”
In a question-and-answer period, a series of senators asked repeatedly about speculation, position limits, end users, and the nominees’ lack of experience in agriculture.
Massad said the CFTC must make sure that end users can use the markets for price discovery. He noted that he has advised businesses that “touched” on the farm sector, including a fertilizer company that wanted to hedge its costs on natural gas and a major rural electric co-op.
Sen. Amy Klobuchar, D-Minn., said she has been worried about excessive speculation and shares the concerns of Delta Airlines about excessive speculation in the airline fuel market.
Sen. Sherrod Brown, D-Ohio, said that he worries about speculation in the aluminum market because aluminum is used by bottlers and beer companies.
Massad said that a rule on position limits in markets should be finalized. An earlier version was thrown out by the courts.
Massad also said there is a question of what businesses large banks that get help from the government should be involved in, but the question is beyond the jurisdiction of the CFTC.
Both Massad and Giancarlo said they would use the powers of the CFTC against market manipulation of any kind. Bowen said she would use “the full enforcement powers” of the CFTC against excessive speculation.
The nominees made so many statements against excessive speculation that Sen. Saxby Chambliss, R-Ga., said he wanted to make sure “you have no bias against speculators,” and they all assured him they see a role for speculators, and were only talking about excessive speculation that the CFTC by law is supposed to guard against.
Klobuchar also asked Massad for his views on the regulation of the market for the Renewable Identification Numbers (RINS) that the Environmental Protection Agency uses to track ethanol.
Klobuchar noted that she believes speculation played an “unfair” role in EPA’s decision to propose a reduction in the Renewable Fuel Standard volumetric requirements for biofuels production.
Massad said he is “concerned” about the RINs market and that the RINs market “is one we should be actively looking at and functioning properly.”
Chambliss, Sen. John Hoeven, R-N.D., and others all commented that none of the nominees has direct farm experience.
Massad said he would be sure that one of the commissioners would chair the CFTC’s agricultural advisory committee, and Giancarlo also noted that the energy advisory committee needs leadership.
In response to a question from Sen. Bob Casey, D-Pa., all the nominees said the CFTC needs more money.
“I am very, very concerned about the adequacy of resources,” Massad said, noting that the CFTC’s jurisdiction has expanded under Dodd-Frank, but the budget has not.
Bowen said the agency needs “the resources to police the market.”
Giancarlo said he agreed with the need for more resources to address the CFTC’s “extraordinarily expanded mission,” but noted that his private sector experience has shown that business as well as the government has been asked to do more with less in the last five years
He said resource allocation with the CFTC is important and that the CFTC should “take on the right things, but not too many things.”
After the hearing, Stabenow said she expects the committee to vote on the nominees by the end of March.
Mark Wetjen
Meanwhile, at a House Agriculture Appropriations Subcommittee hearing, Acting Chairman Wetjen asked the subcommittee to increase the CFTC’s appropriation for fiscal year 2015 to $280 million from the fiscal year 2014 appropriation of $215 million.
As directed by Congress, Wetjen noted, the CFTC has submitted to Congress a spending plan outlining the agency’s allocation of current resources, which reflects an increased emphasis on examinations and technology-related staff.
“The unfortunate reality is that, at current funding levels, the commission is unable to adequately fulfill the mission given to it by Congress: to prevent disruptions to market integrity, protect customer assets, monitor and reduce the build-up of systemic risk, and ensure to the greatest extent possible that the derivatives markets are free of fraud and manipulation,” Wetjen said, according to his written testimony.
Rep. Robert Aderholt, R-Ala.
House Agriculture Appropriations Subcommittee Chairman Robert Aderholt, R-Ala., said the CFTC is overstating its needs, while Rep. Rosa De Lauro, D-Conn., said the agency needs more resources, Reuters reported.
Aderholt said in a statement after the hearing that “putting forth ‘hundreds of trillions of dollars’ as the notional value as a cost justification is specious at best. That amount is several times larger than the entire world economy.”
“A more sound measure would include trading volume, amount of customer funds and the number of registered entities under CFTC oversight,” Aderholt said. “The highest metric provided is an increase of 40 percent for registered entities since the financial crisis, yet funding for the CFTC has increased percent. This hardly builds the narrative for a cash starved regulator body.”
“In a marketplace that is increasingly automated via electronic trading and algorithms, a more valid approach to creating a stable and well regulated marketplace comes from an increase in technology instead of payroll,” he added.
In her opening statement at a confirmation hearing, Senate Agriculture Committee Chairwoman Debbie Stabenow, D-Mich., noted that the last time the committee met to confirm a new chairman of the committee, “we were in the middle of a global financial crisis so deep that 8 million jobs were lost.”
The Dodd-Frank Wall Street Reform and Consumer Protection Act “ushered in a new era of accountability and transparency in the markets, but that only works if the law is implemented and enforced, and a significant part of that falls to the CFTC,” Stabenow told the nominees
She also told them they would have to ensure that the CFTC is “keeping a watchful eye on market participants like clearinghouses, exchanges, and swap dealers” and that they “will have an obligation to make sure that we never see another MF Global or Peregrine Financial shatter faith in either the markets or the ability of regulators to oversee those markets.”
Timothy Massad
Some futures industry executives considered Gensler to have been an overzealous regulator, but there were no signs today that Timothy Massad, the nominee to succeed him, or the other commissioner nominees propose to use a lighter touch.
Industry executives have suggested that strict U.S. regulation will send futures business overseas, but Sen. Richard Blumenthal, D-Conn., said Massad has the stature “to help impose the high bar we need on the international regime.”
Blumenthal introduced Massad, who maintains a home in Norwalk, Conn., as a constituent.
Massad, who as a Treasury official he has been working on the fiscal crisis for the past five years and worked on derivatives as a lawyer, started his testimony by pointing out that “excessive risk related to derivatives, particularly at the American International Group, was one of many factors that contributed to that crisis.”
The government has recovered every taxpayer dollar committed to prevent the collapse of AIG and made a profit, Massad said, but “We must never forget that the true cost of the financial crisis is not the fiscal cost of the programs. It is the millions of jobs lost, the homes foreclosed, the retirements postponed and the dreams deferred.”
“I believe there is nothing more important than a robust enforcement program in order to protect the integrity of our financial markets,” Massad continued.
Christopher Giancarlo
Christopher Giancarlo, a Republican nominee to replace the unexpired term of Jill Sommers, who left last year, thanked Senate Minority Leader Mitch McConnell, R-Ky., for backing his nomination.
Giancarlo, an executive with an intermediary company in the wholesale financial markets, said, “Without question counterparty exposure related to bilaterally cleared over-the-counter (OTC) swaps helped amplify and spread the financial crisis.”
“I have been a consistent advocate for practical and effective implementation of the three pillars of Title VII of Dodd-Frank: enhances swaps transparency, regulated swaps execution and central counterparty clearing,” he said. “My support for these reforms is based not on academic theory or political ideology. It is based simply on practical experience.”
But Giancarlo added that, “if excessive regulation arbitrarily increases the cost of risk management, the overall economy will suffer. If confirmed, I will commit myself to ensuring proper balance.”
Sharon Bowen
Sharon Bowen, a Democratic nominee for the seat now held by Bart Chilton — who continues to serve even though his term has expired — said she would combine her experience as a securities lawyer with her background in her approach to the agency.
“As the youngest of five children raised with modest means in the segregated, small town of St. Julien’s Creek, Va., I understand the importance of being the voice of the under-represented and small business owners who have not had a seat at the table as I do today,” she said.
Bowen noted there are differences between the securities and futures markets.
“Capital formation in the securities market is different from the management of risk and price volatility in the futures markets,” she said.
“Each has its own nuances that impact consumers and end-users. I recognize that our physical commodity markets need to be protected from excessive speculation and manipulation. And we must acknowledge that esoteric and other creative financial products don’t always benefit consumers.”
In a question-and-answer period, a series of senators asked repeatedly about speculation, position limits, end users, and the nominees’ lack of experience in agriculture.
Massad said the CFTC must make sure that end users can use the markets for price discovery. He noted that he has advised businesses that “touched” on the farm sector, including a fertilizer company that wanted to hedge its costs on natural gas and a major rural electric co-op.
Sen. Amy Klobuchar, D-Minn., said she has been worried about excessive speculation and shares the concerns of Delta Airlines about excessive speculation in the airline fuel market.
Sen. Sherrod Brown, D-Ohio, said that he worries about speculation in the aluminum market because aluminum is used by bottlers and beer companies.
Massad said that a rule on position limits in markets should be finalized. An earlier version was thrown out by the courts.
Massad also said there is a question of what businesses large banks that get help from the government should be involved in, but the question is beyond the jurisdiction of the CFTC.
Both Massad and Giancarlo said they would use the powers of the CFTC against market manipulation of any kind. Bowen said she would use “the full enforcement powers” of the CFTC against excessive speculation.
The nominees made so many statements against excessive speculation that Sen. Saxby Chambliss, R-Ga., said he wanted to make sure “you have no bias against speculators,” and they all assured him they see a role for speculators, and were only talking about excessive speculation that the CFTC by law is supposed to guard against.
Klobuchar also asked Massad for his views on the regulation of the market for the Renewable Identification Numbers (RINS) that the Environmental Protection Agency uses to track ethanol.
Klobuchar noted that she believes speculation played an “unfair” role in EPA’s decision to propose a reduction in the Renewable Fuel Standard volumetric requirements for biofuels production.
Massad said he is “concerned” about the RINs market and that the RINs market “is one we should be actively looking at and functioning properly.”
Chambliss, Sen. John Hoeven, R-N.D., and others all commented that none of the nominees has direct farm experience.
Massad said he would be sure that one of the commissioners would chair the CFTC’s agricultural advisory committee, and Giancarlo also noted that the energy advisory committee needs leadership.
In response to a question from Sen. Bob Casey, D-Pa., all the nominees said the CFTC needs more money.
“I am very, very concerned about the adequacy of resources,” Massad said, noting that the CFTC’s jurisdiction has expanded under Dodd-Frank, but the budget has not.
Bowen said the agency needs “the resources to police the market.”
Giancarlo said he agreed with the need for more resources to address the CFTC’s “extraordinarily expanded mission,” but noted that his private sector experience has shown that business as well as the government has been asked to do more with less in the last five years
He said resource allocation with the CFTC is important and that the CFTC should “take on the right things, but not too many things.”
After the hearing, Stabenow said she expects the committee to vote on the nominees by the end of March.
Wetjen asks appropriators for more money
Mark Wetjen
Meanwhile, at a House Agriculture Appropriations Subcommittee hearing, Acting Chairman Wetjen asked the subcommittee to increase the CFTC’s appropriation for fiscal year 2015 to $280 million from the fiscal year 2014 appropriation of $215 million.
As directed by Congress, Wetjen noted, the CFTC has submitted to Congress a spending plan outlining the agency’s allocation of current resources, which reflects an increased emphasis on examinations and technology-related staff.
“The unfortunate reality is that, at current funding levels, the commission is unable to adequately fulfill the mission given to it by Congress: to prevent disruptions to market integrity, protect customer assets, monitor and reduce the build-up of systemic risk, and ensure to the greatest extent possible that the derivatives markets are free of fraud and manipulation,” Wetjen said, according to his written testimony.
Rep. Robert Aderholt, R-Ala.
House Agriculture Appropriations Subcommittee Chairman Robert Aderholt, R-Ala., said the CFTC is overstating its needs, while Rep. Rosa De Lauro, D-Conn., said the agency needs more resources, Reuters reported.
Aderholt said in a statement after the hearing that “putting forth ‘hundreds of trillions of dollars’ as the notional value as a cost justification is specious at best. That amount is several times larger than the entire world economy.”
“A more sound measure would include trading volume, amount of customer funds and the number of registered entities under CFTC oversight,” Aderholt said. “The highest metric provided is an increase of 40 percent for registered entities since the financial crisis, yet funding for the CFTC has increased percent. This hardly builds the narrative for a cash starved regulator body.”
“In a marketplace that is increasingly automated via electronic trading and algorithms, a more valid approach to creating a stable and well regulated marketplace comes from an increase in technology instead of payroll,” he added.
GAO releases USAID food aid prepositioning study
March 06, 2014 | 05:05 PM
The Government Accountability Office on Wednesday released a study of the U.S. Agency for International Development’s program to position food aid in advance of its expected use. Read More...
Stabenow: Committee to vote on CFTC nominees by end of March
March 06, 2014 | 01:14 PM
Senate Agriculture Committee Chairwoman Debbie Stabenow, D-Mich., said today she expects the committee to vote on three nominees to the Commodity Futures Trading Commission by the end of March. Read More...
White House announces ‘Let’s Move’ recipe contest for Kids’ ‘State Dinner’
March 05, 2014 | 06:09 PM
First Lady Michelle Obama today announced that she will sponsor a third children’s recipe contest, and that the winner and a parent from each state and territory will be invited to the White House later this summer for a Kids’ “State Dinner.” Read More...
House Ag Approps schedules CFTC, Vilsack hearings
March 05, 2014 | 06:09 PM
The House Agriculture Appropriations Subcommittee will hold a hearing Thursday at 10 a.m. on the Commodity Futures Trading Commission’s budget request for fiscal year 2015. Read More...
Easter Egg Roll and events set for April 21; ticket lottery opens Friday morning
March 05, 2014 | 06:09 PM
The free ticket lottery for the annual White House Easter Egg Roll will open Friday morning, the White House announced today. Read More...
Ag committees honor centennial of Cooperative Extension Service
March 05, 2014 | 06:09 PM
House Agriculture Horticulture, Research, Biotechnology and Foreign Agriculture Subcommittee Chairman Rep. Austin Scott, R-Ga., and ranking member Rep. Kurt Schrader, D-Ore., have introduced a resolution celebrating the Smith-Lever Act of May 8, 1914, which established the Cooperative Extension System, the nationwide education system operating through land-grant colleges and universities in partnership with federal, state and local governments. Read More...
O’Brien hired as House Ag Approps clerk, Delgado joints S-3 Group
March 05, 2014 | 06:09 PM
Tom O’Brien has been promoted to clerk of the House Agriculture Appropriations Subcommittee, House Appropriations Committee Chairman Hal Rogers, R-Ly., announced last week. Read More...
Hillary Rodham Clinton to speak to United Fresh, FMI
March 05, 2014 | 06:09 PM
Former Secretary of State Hillary Rodham Clinton will be the keynote speaker at a session held in conjunction with the concurrent United Fresh Produce Association and the Food Marketing Institute conventions on June 10 in Chicago. Read More...
USDA to enforce food stamp benefit cut in March
March 05, 2014 | 06:09 PM
The Agriculture Department today told the state administrators of the Supplemental Nutrition Assistance Program that the farm bill provision lowering benefits for households that have been getting nominal Low-Income Energy Assistance Program payments will go into effect this month because the farm bill required that it go into effect 30 days after the bill was enacted. Read More...
President’s budget features proposals Congress has not favored in the past
March 04, 2014 | 07:55 PM
President Barack Obama’s fiscal year 2015 budget proposal, released today, promotes rural growth but features several items that Congress has rejected in the past or found difficult to accept: cuts to the crop insurance program, user fees for several agencies, a cut in funding for meat and poultry inspection, and consolidation of Farm Service Agency county offices. Read More...
Nutritionist to Congress: Don’t mess with school meals rules
March 04, 2014 | 07:55 PM
Congress should not take up a request from the School Nutrition Association to make legislative changes to the school meals rules announced by the Agriculture Department, a key nutrition advocate told The Hagstrom Report late Monday. Read More...
Bittleman leaves EPA for Senate Finance
March 04, 2014 | 07:55 PM
Sen. Ron Wyden, D-Ore., the new chairman of the Senate Finance Committee, announced today that Sarah Bittleman will be his legislative director and chief counsel for energy, natural resources and agriculture. Read More...
RMA announces lower price insurance base
March 04, 2014 | 07:55 PM
The Agriculture Department's Risk Management Agency on Monday announced the crop prices on which federal crop insurance will be based for crop year 2014. Read More...
SNA seeks modification of school meal changes
March 03, 2014 | 03:59 PM
The School Nutrition Association, which represents 55,000 school food service directors around the country, will ask Congress to roll back a number of changes to school meals that the Agriculture Department has implemented under the 2010 Healthy Hunger-Free Kids Act. Read More...
Peterson declines to comment on election plans
March 03, 2014 | 03:59 PM
A spokeswoman for House Agriculture Committee ranking member Collin Peterson, D-Minn., declined today to comment on a report on a Minnesota website that Peterson has decided to run for-re-election. Read More...
GAO finds decline in school meal participation, but reasons are unclear
March 03, 2014 | 03:59 PM
Nationwide, student participation in the National School Lunch Program declined by 1.2 million students (or 3.7 percent) from school year 2010-11 through school year 2012-13, but there were many nuances about that decline, the Government Accountability Office said in a study released late last week. Read More...
USDA releases transcript of Vilsack speech
March 03, 2014 | 03:59 PM
The Agriculture Department has not issued a schedule for implementation of the commodity title of the new farm bill, but has published a transcript of the speech on the subject by Agriculture Secretary Tom Vilsack on Friday at the Commodity Classic in San Antonio, Texas. Read More...
Stabenow’s star rises with farm bill passage
March 03, 2014 | 03:59 PM
Senate Agriculture Committee Chairman Debbie Stabenow, D-Mich., has become the most important agricultural policymaker in the United States and one of the most important women in agriculture in the world, Jerry Hagstrom writes in his National Journal column today. Read More...
USDA briefs school food service directors on meal rules
March 03, 2014 | 03:59 PM
The Agriculture Department is trying to deal with complaints from school food service directors about parts of the new school meals rules and questions about declines in school meal participation, a key USDA official said today. Read More...
House Budget Committee releases poverty program report
March 03, 2014 | 03:59 PM
The House Budget Committee today released a report on federal anti-poverty programs, including a chapter on domestic food. Read More...