This Week S Issue of the Agnews Update Is Sponsored by the NC Growers Association (NCGA)

June 24, 2013

This week’s issue of the AgNews Update is sponsored by The NC Growers Association (NCGA), a non-profit cooperative that consists of approximately 750 North Carolina grower-members who grow a wide variety of diversified crops from flowers, turfgrass, and Christmas trees to tobacco, cucumbers and sweet potatoes. NCGA provides its members a labor force via the H-2a program, which is a legal guestworker program, authorized by the Immigration Reform and Control Act (IRCA) of 1986. H-2a enables farmers to secure a legal and adequate labor force that is available and capable of assisting with the seasonal/temporary manual labor associated with some agricultural crops. In order to utilize the H-2a program, growers must certify with USDOL they have first engage in independent positive recruitment of US workers through the local employment security commission, word of mouth with other growers and by placing ads in newspapers and on the radio, as well as soliciting the return of any former, qualified workers.

WashingtonNEWS

Farm Bill Tanks in House: The farm bill failed in an up and down vote in the U.S. House on Thursday by a vote of 195-234, a huge margin. Of Republicans, 62 voted against and only 24 Democrats voted for the bill. Farm bill legislation typically does pass through Congress quite easily once it gets to a floor vote. Yet last week, House Speaker John Boehner called for a vote on the farm bill that twice passed the Senate and couldn’t get the votes. In general, Democrats didn’t like the bill because it cut funding for food stamps, and Republicans backed away because the bill didn’t go far enough in cutting spending. Agriculture Committee ranking member Collin Peterson (D-Minn.) blamed two amendments for the bill’s failure- an amendment by Representative Southerland (R-FL) that would have allowed states to apply work requirements to anyone receiving food stamps drove away Democrats and an amendment, which Boehner supported, that ended production limits on dairy producers. Even if the bill had passed, it likely wouldn’t have become law because the White House said it would veto the bill because of food stamp cuts. House Republicans have two options-start over or try to negotiate something with the Senate. If a new farm bill is not enacted or the 2008 farm bill is not extended, the farm bill commodity programs revert to laws contained in the 1938 and 1949 farm bills. The last time a permanent bill was enacted was 1949. All others have been only temporary bills. And, since agriculture is much different now than it was more than 60 years ago, outdated price supports would greatly increase food costs. However, food stamps and crop insurance would continue indefinitely without changes since those are permanent programs. The 2008 farm bill provisions won’t expire until Sept. 30 because they were extended as part of the fiscal cliff deal. Here’s how N.C.’s congressional delegation voted: YES: Howard Coble (R-6th), Renee Ellmers (R-2nd), Virginia Foxx (R-5th), George Holding (R-13th), Richard Hudson (R-8th), Patrick McHenry (R-10th), Mike McIntyre (D-7th), and Mark Meadows (R-11th). NO: G.K. Butterfield (D-1st), Walter B. Jones (R-3rd), Robert Pittenger (R-9th), David Price (D-4th), and Melvin Watt (D-12th).

McIntyre Co-Introduces Estate Tax Repeal: At a press conference on Capitol Hill, U.S. Congressman Mike McIntyre (N.C.-7th) co-introduced legislation in the U.S. House to permanently repeal the federal estate tax. Enacting this bill, better known as the death tax, will finally put an end to the punitive tax on family farms and small businesses upon the death of an owner. Joining McIntyre at the press conference was a broad coalition of members of Congress and national organizations. McIntyre is an original co-sponsor of the bill with Congressman Kevin Brady, R-Texas. The legislation was formally introduced in the U.S. House and U.S. Senate last week.

U.S./EU Leaders Launch Free Trade Talks: At the G8 Summit in Northern Ireland leaders of the European Union and the United States launched negotiations for a sweeping EU-U.S. trade and investment pact. The first round of talks will take place in Washington, D.C., in July. The agreement is expected to create jobs and growth by delivering better market access, achieving greater regulatory compatibility, and paving the way for setting global standards.

Senators Urge Oversight of Proposed Smithfield Purchase: Senator Debbie Stabenow, chairwoman of the U.S. Senate Committee on Agriculture, Nutrition and Forestry, and Senator Thad Cochran, ranking member of the committee, and a bipartisan group of Agriculture Committee members, raised questions regarding government oversight of the proposed purchase of Smithfield Foods and future foreign acquisitions of American agriculture companies. The senators urged Treasury Secretary Jacob Lew to include both the USDA and the FDA in the review of the proposed purchase of Smithfield foods so that the oversight process includes experts on the American food supply and food safety. The proposed acquisition by Shuanghui International, a Chinese food company, will undergo a national security review by the Committee on Foreign Investment in the United States (CFIUS), and the treasury secretary has the authority to add the agencies to the review process. The senators said that the foreign purchase of such a significant American agricultural company—the largest acquisition of any American company by a Chinese company in history—raises a number of broader questions about how such transactions are reviewed and whether the appropriate authorities are evaluating risks and ensuring American interests are protected.

Immigration NEWS

Senate Getting Closer to 70 Votes on Immigration Bill: Republican lawmakers think that there may be about 15 Republicans who would vote in favor of the Gang of Eight’s immigration bill, getting the bill’s proponents closer to the 70 votes they want. An amendment by Republican Sens. Bob Corker (Tenn.) and John Hoeven (N.D.) that would double border agents, construct 700 miles of fencing, and employ increased surveillance technology is attracting more conservatives. Senate Majority Leader Harry Reid (D-Nev.) filed cloture on the amendment and has scheduled a vote to end debate on the amendment for Monday.

House Committee Approves Bill to Create New Ag Guestworker Program: The House Judiciary Committee approved the Agricultural Guestworker “AG” Act (H.R. 1773) in a vote of 20-16. This bill creates a new temporary agricultural guestworker program to provide American farmers with access to a reliable workforce. Features of the bill include: The new temporary agricultural guestworker program removes barriers and excessive paperwork farmers face in hiring foreign workers. If a grower is designated as a registered agricultural employer by USDA and agrees to the terms and obligations of participating in the program, then they can easily hire guestworkers already admitted to the U.S. without having to file yet another petition for the individual worker; The bill eliminates the artificial government-imposed wage rate that is part of the current temporary agricultural guestworker program and replaces it with the market-based prevailing wage rate or the state minimum wage—whichever is greater. To read more, click here.

N.C. Legislative NEWS

Nominee Announced for Vacant Eastern N.C. Judicial Seat: The U.S.’ longest judicial vacancy in the federal district courts may soon be filled. President Obama announced that he will nominate Jennifer Prescod May-Parker to fill the vacancy left by federal District Court Judge Malcolm Jones, who semi-retired, in North Carolina’s Eastern District. The seat has been open since Jan. 1, 2006. In addition to two other names, Senator Kay Hagan (D-N.C.) recommended May-Parker, a federal prosecutor in EasternN.C., for the appointment. The president did not give a timeframe for the Senate hearing that would be necessary to confirm May-Parker.

Business NEWS

China Likes Investing in N.C.: North Carolina ranks fifth among states in the U.S. receiving Chinese investments, according to Reuters. The state’s three big universities-Duke, UNC-CH, and NCSU- have helped create connections with China by attracting many professors and graduate students from the country. A representative from the N.C. Dept. of Commerce said that state government offices receive a considerable number of inquiries from Chinese businesses. California, New York, Texas and Illinois rank above N.C. in attracting investments from China.

Campaign NEWS

Coble Expects to Run Again: U.S. Rep. Howard Coble is planning to run for a 16th term as long as his health allows. Coble suffered from unexplained dizziness earlier in the year but has recovered. Coble represents a large portion of the northern Piedmont. The Republican is planning a fundraiser for September but said he hasn’t yet made a final decision.

People NEWS

Former Governor Holshouser Dies: Former N.C. Governor Jim Holshouser, age 78, died last week. Holshouser was elected governor at age 38, making him the state’s youngest governor and the first Republican governor of the 20th century. Prior to his death, Holshouser remained active, working at a law firm and serving on the UNC Board of Governors as an emeritus member. Holshouser’s health had been declining in recent weeks.

Duke Energy Board Elects Lynn Good as President and CEO: Duke Energy announced that the board of directors has unanimously elected Lynn Good as its next president and chief executive officer. Good succeeds Jim Rogers, who will continue to serve as chairman of the board until his retirement on Dec. 31, 2013. Good will also serve as a director on the Duke Energy board. She will assume her new role on July 1. The Duke Energy board of directors will also name one of its independent directors chair-elect in the coming weeks. This individual will assume responsibilities as chairman of the board on Jan. 1, 2014 and will assist the new CEO and the board with a smooth transition in the coming months. Good, 54, has served as Duke Energy's executive vice president and chief financial officer since July 2009. Rogersserved as Duke Energy's president and CEO since 2006.

Commodity NEWS

NC Crop Summary for the Week Ending June 16: There were 4.0 days suitable for field work for the week ending June 16th, in comparison to 3.3 days for the week ending June 10th. Statewide soil moisture levels were rated at 3% short, 61% adequate and 36% surplus. Average temperatures were above normal for the week ranging from 66 to 79 degrees. Several areas of the state received over an inch of rainfall this week with some areas recording over 2 inches. Crop progress improved this week for most commodities with the additional rainfall in some areas and the high temperatures to dry out land in other areas. Crop progress percentages (this week/last week) for the following crops are as follows: cotton squared, 10%/n/a; corn silked, 20%/n/a; emerged soybeans ,47 % / 35% ; planted sorghum, 50%/39%; planted soybeans, 57%/46%; sweet potatoes, 70%,51%; burley tobacco, 91%/84%. Harvested hay percentages are as follows: hay 1st cutting, 88%/82%; barley, 36%/10%; oats, 24%/16%; wheat, 17%/n/a. To read the full report, click here.

Porcine Virus Spreads: The Porcine Epidemic Diarrhea Virus, discovered for the first time in the U.S. in May, has now spread to 13 states. The virus was first detected in Colorado, Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio, Oklahoma, and South Dakota and has now been detected in Arkansas, Kansas and Pennsylvania. While the virus does not normally kill older pigs, younger pigs are especially vulnerable. It’s not unusual to have 50 percent mortality among young pigs and some barns have reported mortality as high as 100 percent. The number of pig deaths is not yet known, but the pork industry is watching closely to determine how pork supplies will be impacted.

NCDA NEWS

Cogongrass Discovered in StanlyCounty: A small patch of cogongrass, considered by many experts to be one of the world’s worst weeds, was discovered recently in StanlyCounty by NCDA&CS.This is the second confirmed infestation in North Carolina; the first was in PenderCounty in May 2012.The StanlyCounty stand covers an area less than 200 square feet. The department’s N.C. Forest Service and Plant Industry Division are surveying land around the infestation and will treat the stand with herbicide. The public is encouraged to learn more about cogongrass and how to identify it by visiting . Suspected infestations should be reported to the department by calling 1-800-206-9333 or sending an email to .

First Detection of the Emerald Ash Borer in the State: N.C. Ag Commissioner Steve Troxler signed an emergency quarantine order restricting the movement of hardwood firewood, ash nursery stock, and other ash materials from Granville, Person and Vance counties following the confirmation of the emerald ash borer in trees there. This marks the first time emerald ash borer has been found in the state. North Carolina is the 20th state in the country to confirm the presence of the destructive pest. Under the state quarantine, all hardwood firewood and plants and plant parts of the ash tree -- including living, dead, cut or fallen, green lumber, stumps, roots, branches and composted and uncomposted chips -- cannot be moved outside the three counties. Home and landowners are encouraged to report any symptomatic activity in ash trees to the NCDA&CS.

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