www.Agri-Pulse.

com 1

Rep. Steve
Southerland, R-Florida

Sept. 10, 2014 Volume 10, Number 34
House votes to gut EPA plan for Waters of U.S.
Defying a White House veto threat, the Republican-controlled House of Representatives passed a
bill Tuesday that would prohibit the EPA from implementing a proposed rule aimed at clarifying
which waters of the U.S. are under its jurisdiction as part of the Clean Water Act (CWA).
Before the 262-152 vote, Rep. Doug Collins, R-Georgia, took to the House floor and described
the EPA proposal as an unprecedented land grab based on a desire to put a political agenda
over the rights of property owners. He and other Republicans argued that the proposed rule
would place a heavy and unneeded regulatory burden on farmers, ranchers, miners, builders and
other developers. Major agricultural groups including the American Farm
Bureau Federation and the National Cattlemen's Beef Association have
made the same arguments.
Rep. Steve Southerland, the sponsor of H.R.5078, said the measure
provides a safeguard against the federal governments overreach.
His bill, dubbed the Waters of the United States Regulatory Overreach
Protection Act of 2014, would also require the EPA to consult with state
and local officials for a regulatory proposal that would identify the scope
of waters covered and not covered under CWA.
The vote was mostly along party lines, with all but one Republican
supporting the bill. One of the 35 Democrats who said yea was Collin
Peterson of Minnesota, the ranking member of the House Agriculture Committee, who said
the proposed rule demonstrates the EPA does not seem to understand the real-world
effects these regulations have on farmers. Thirteen of the 21 Agriculture Committee
Democrats voted for the bill.
Following Peterson on the House floor was Oklahoman Frank Lucas, the Republican chairman
of the committee, who said the EPA proposal was an underhanded way to harm agriculture
and a threat to the countrys food security.
Leading the opposition to the bill was Rep. Alsee Hastings, D-Fla., who criticized his colleagues
across the aisle for wasting time on legislation that isnt going to go anywhere in the
Democratic-controlled Senate.
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Sen. Pat Roberts, R-Kan., the ranking member of the Senate Agriculture Committee, agreed that
H.R. 5078 would have little effect. Speaking to a gathering of the United Fresh Produce
Association in Washington earlier in the day, Roberts said there are hundreds of bills that
gather dust on the desk of Senate Majority Leader Harry Reid and he doesnt expect this
bill to be any different.
The White House yesterday also issued a policy statement that said President Obamas top
advisers would recommend a veto if the bill were to be approved by Congress.
The EPA's proposed rule is grounded in science and responsive to calls from Congress,
industry and community stakeholders as well as decisions of the U.S. Supreme Court, the
White House said in a Statement of Administration Policy (SAP). The EPAs rulemaking, it said,
is essential to ensure clean water for future generations and reduce regulatory uncertainty.
If the President were presented with the H.R. 5078, his senior advisers would recommend that
he veto the bill, the statement said.
Probably the most dramatic speech on the House floor came from Rep. Marcy Kaptur, D-Ohio,
who held up a glass jar filled with what she said was poisonous green algae scooped from Lake
Erie, partly the result of uncontrolled agricultural runoff. The contamination left about 400,000
people in parts of northwestern Ohio and southeastern Michigan without clean tap water for two
days in August.
Shame on you, Kaptur said, gesturing toward her Republican colleagues, who she said
were pushing a bill that was an embarrassment to the United States and would take
America backward in the campaign for clean water.
Several outdoor groups held a conference call Tuesday morning in a futile bid to get the House to
reject H.R. 5078, Whit Fosburgh, president of the Theodore Roosevelt Conservation Partnership,
said the EPAs rule is very modest, and that if stakeholders from agriculture or other industries
have problems with the proposal, there is comment period going on right now and they can
have their voices heard and have [the rule] changed for the better. The extended comment
period expires on Oct. 20. The other groups were the American Fly Fishing Trade Association
and the National Wildlife Federation.
Railroads gaining steam on grain backlog, but harvest woes mount

A rail backlog that has kept grain bins full in the Dakotas, Montana and some adjacent states is
improving, but rail companies still have a long ways to go.

Observers point to a variety of causes, including a shortage of rail cars, locomotives and crews to
run them, as well as the North Dakota oil boom. According to numerous reports the backlog has
left some of the 2013 grain harvest stuck in storage across the upper Midwest, particularly in
North Dakota, even as the 2014 corn harvest is getting underway.

Last week, the federal Surface Transportation Board (STB) held a field hearing in Fargo, North
Dakota, featuring nine panels of witnesses as well as remarks from elected officials in North
Dakota, South Dakota, and Minnesota.
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Burlington Northern Santa Fe and Canadian Pacific, the two main rail providers in the region,
have been filing weekly reports to the STB. On Friday, BNSF reported 2,231 orders past due
with an average of nearly nine days late. On J uly 18, BNSF reported 6,154 past due orders, down
from 11,127 on J une 13, with an average of at least 23 days late.

Progress from CP is more difficult to gauge. Recently, CP instituted a new ordering system for
rail cars, which some lawmakers say is resulting in reports that show improvement that is not
warranted. In a release on his website, Rep. Kevin Cramer, R-N.D., said the reduction in CPs
open request appears to be primarily the result of orders being canceled, rather than
fulfilled. CPs report to the STB said as of Sept. 5, customers had removed 23,968 open
requests from their system, and 6,762 requests remain open.

North Dakota Wheat Commission Administrator Neal Fisher said the marked difference in
progress between the two different companies has not gone unnoticed.

We have two major railroads out here, and Id have to say that I think one of them is
performing better than the other, Fisher said in an interview with Agri-Pulse, noting the
efforts of BNSF. The answers the CP give dont seem to be quite as satisfying just yet.

Fisher said local producers and rail companies had previously been working toward improving
North Dakotas system together. On one hand, producers and local cooperatives made
improvements in consolidating smaller elevators and improving grain loading systems. On the
other hand, rail companies have made improvements in recent years in terms of improved rail car
velocity and getting grain out faster. We always ask the question: Who made whom efficient
here?

The corn and soybean harvests will likely begin in earnest in North Dakota in late September or
early October, but 2014s spring wheat harvest has been the latest on record. USDAs weekly
Crop Progress Report said just 42 percent of the states spring wheat was harvested as of Sept. 7,
compared to the 74 percent five-year average.
Aside from local issues of grain
storage and decreasing cash prices, rail
backlogs are also causing problems for
domestic and international customers.
While increased freight costs are
typically passed on to the producer,
National Grain and Feed Association
President Randy Gordon said some
customers in the Pacific Northwest have absorbed some transportation-related costs by bidding
higher on available grain, thereby reducing, to some extent, the basis impact on producers.

Internationally, Fisher said importers get nervous when they see difficulty moving a crop,
which he said is damaging the reputation of North Dakotas wheat crop.

This has always been the most reliable supply center of the world (for wheat), Fisher
said. If (importers) start looking to Canada or Australia or to someone else, thats a habit
a producer doesnt want to have them get into.

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Looking forward, USDA is not backing down from predictions of another solid crop in the
region and across the country, which means already occupied grain storage space will soon be
needed for 2014s harvest. In an e-mail to Agri-Pulse, Gordon expressed concern that rail
problems that are slowly but surely being alleviated may come up again.

There is no question that shippers of grains, oilseeds and other agricultural products and many
farmers are starting from behind this year in terms of moving out last years crop, Gordon
said. Given the likely prospect of another bin-busting crop this year, we expect rail service to be
bumpy and uneven, and very challenging for the remainder of this crop year and well into 2015.

Gordon said this only further illustrates the need for infrastructure improvements that could help
with future bumper crops.

Producers, the grain, feed and processing industry, and indeed shippers of non-
agricultural products all need a national commitment to invest in transportation
infrastructure if Americas tremendous productive capacity and job creation is to have a
chance to attain its full potential, Gordon said.

The Senate Commerce Committee has scheduled a hearing today at 2:30 p.m. EDT entitled
Fright Rail Service: Improving the Performance of Americas Rail System. The committees
website says the hearing will focus on rail service issues throughout the country, including
congestion and locomotive and railcar shortages.

Dairy cooperative merger unites large, innovative farms

Two dairy cooperatives comprised of some of the nations largest dairy farms in the Midwest and
Southwest have merged, creating what could become the fifth-largest U.S. milk producer co-op
with many of the industrys most innovative products and processing technologies.

Select Milk Producers, based in New Mexico, and Continental Dairy Products, an Ohio co-op,
announced the merger effective Sept. 1, with the new entity retaining the name Select Milk
Producers with headquarters in Artesia, New Mexico. The two have shared common
management.

Prior to the merger, Select consisted of 61 dairy farms in
Texas and New Mexico that together milk some 136,000
cows and produce about 4.3 billion pounds of milk
annually. Its market is primarily cheese and fluid milk
plants in the region. Continentals members before the
merger were 36 large farms in Ohio, Indiana and Michigan
with approximately 76,000 cows that yield about 2 billion
pounds of milk a year. Member farms cows produce an
average 29,716 pounds of milk each in a year, compared
with a national average of less than 22,000 pounds.

In terms of milk marketed annually, Selects 6.3 million pounds of milk would rank behind Dairy
Farmers of America, Kansas City, Mo.; California Dairies, Visalia, Calif.; Land OLakes, St.
Paul, Minn., and Northwest Dairy Association, Seattle.
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Select, created in 1994, was a pioneer in ultra-filtration or reverse osmosis facilities that remove
water from milk to reduce transportation costs. It is in a joint venture with DFA and Irelands
Glanbia in New Mexicos Southwest Cheese, believed to be the largest cheese manufacturing
plant in the U.S. It also produces a sports recovery drink marketed nationally by Coca-Cola.

Select has patented filtration technology that separates fat from protein from sugars from calcium
and other solids from water in milk and recombines them in different ratios to provide a different
profile of milk, its president, Brad Bouma, told a House Agriculture Committee hearing in 2009.
The double sugar, lactose, is converted to two simple sugars, glucose and galactose. These
sugars are sweeter than lactose and thus the carbohydrates in the drinks can be reduced while
maintaining the same sweetness of milk, he said.

Select CEO Mike McCloskey, who also is third vice president of the National Milk Producers
Federation, said that the merger facilitates milk marketing strategies, eliminates market
confusion with regard to identity by presenting one face to the market, and expands geographic
coverage and influence for the combined entity. The merger also expands future borrowing
capacities, decreases financing costs, provides access to capital markets and creates increased
potential for expanding the customer base of the combined operations.

Could bat listing debate drive changes in Endangered Species Act?

The U.S. Fish and Wildlife (FWS) is debating whether to list the northern long-eared bat (NLE)
as an endangered species, adding fuel to the ongoing controversy surrounding the Endangered
Species Act (ESA), according to witnesses at a House Natural Resources Committee field
hearing this week.

During the hearing at the state capitol in Harrisburg,
Pennsylvania, J im Brubaker, an official with the
Pennsylvania Farm Bureau, testified that listing the bat
would create an undue financial burden on farmers, while
not addressing the root problem: a fungal disease fatal to
bats known as white-nose syndrome.

With a range of 38 states and the District of
Columbia, and the fact that this species of bat is 15 to
20 times more common than other non-listed bats in
some areas, the potential scope of this listing and the
impact on agriculture could be unprecedented,
Brubaker said. He noted that the bat species settles in barns, sheds and a wide variety of
timberline. "What if the bats in my barn are the NLE bat? Would I be prohibited from
changing or making repairs to my barn?"

Republican Pennsylvania state Rep. J eff Pyle, R, who participated as a witness, said the potential
NLE listing shows that federal ESA listings are unpredictable and often unwarranted, due to
limited or shielded data. "The crux of the matter is...until you change the ESA, anything can
happen," he said.
Northern long-eared bat
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The FWS made a settlement with environmental groups in 2011, and agreed to systematically,
over a period of six years, review the needs of hundreds of species listed on the 2010 Candidate
Notice of Review, to determine which species should be added to the Federal Lists of
Endangered and Threatened Wildlife and Plants.
According to FWS, the plan was first developed through an agreement with the WildEarth
Guardians and filed in the U.S. District Court for the District of Columbia in 2011. Later that
year, the Service reached an agreement with another plaintiff group, the Center for Biological
Diversity (CBD), which reinforces the multiyear work plan.
According to the CBD, the agreement requires FWS to make initial or final decisions on whether
to add up to 757 species of imperiled plants and animals to the endangered species list by 2018.

Mollie Matteson, a senior scientist for the CBD, said the NLE population will become extinct
without an ESA listing. "Without this bat the challenges farmers and the timber industry face will
grow, not lessen," she said, noting that the insect-eating bat "provides a valuable population
check" on moths and beetles that attack timber and crops. It's important that we
safeguard survivors from as much harm as possible, including habitat loss."
In response to a petition from the Center for Biological Diversity in 2010, the FWS published a
proposal in 2013 to list the Northern Long-Eared bat as endangered throughout its range under
the ESA.
"The primary threat to the northern long-eared bat is a disease, white-nose syndrome, which has
killed an estimated 5.5 million cave-hibernating bats in the Northeast, Southeast, Midwest and
Canada," FWS noted in its proposal. "Populations of the northern long-eared bat in the Northeast
have declined by 99 percent since symptoms of white-nose syndrome were first observed in
2006."
Under the ESA, an endangered animal is one that is in danger of becoming extinct. If a final
decision is made to list the northern long-eared bat, the species will be protected and the
government will work to conserve the bat's habitat, as well as form a recovery plan for the
species.
FWS said its final decision on the listing will be made no later than April 2, 2015 six months
later than an earlier deadline. Rep. Glenn Thompson, R-Penn., said this is a sign that the agency
recognizes problems with a potential NLE listing.
Rep. Doc Hastings, R-Wash., the chairman of the Natural Resources Committee, said the FWS
recognizes that the white-nose syndrome, a disease transmitted from bats to other bats, is the
primary cause of population decline for the species-- not habitat decline.
"It seems to me that efforts should focus on that issue, rather than creating a federal
endangered-species solution in search of a problem," Hastings said. Federal edicts that
ignore state efforts and data and impose one-size-fits-all solutions are not the most
cooperative way to achieve this objective.
Since the ESA requires the FWS to focus on habitat preservation, a listing for the species would
disrupt several states' economies, without actually helping the bat, said Paul Lyskava, the
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executive director of the Pennsylvania Forest Products Association. If the bat is listed as
endangered, the FWS will likely restrict tree removal activities, he noted.
In an interview with Agri-Pulse, Rep. Thompson said more transparency from the FWS about its
data and scientific process could improve the ESA. The House in J uly passed the 21st Century
Endangered Species Transparency Act (H.R. 4315), which would require the federal government
to disclose to affected states the data used before making an ESA listing decision, and to require
FWS to report the federal taxpayer funds used to respond to ESA lawsuits. The Senate has not
acted on the legislation. Some Democrats say the bill is an attempt to weaken the ESA.
"Environmental groups bring lawsuits against the Fish and Wildlife Service, and almost force
them to do things that are not successful for the species," Thompson said.
Lyskava said the ESA is "poorly suited" to help species suffering from wildlife diseases. He also
said the debate over the NLE listing is "our spotted owl moment." The northern spotted owl
has been listed as endangered for more than 20 years. During that time the Northwest's timber
industry has been in decline, but the spotted owl population continues to fall due to aggressive,
larger barred owls.
"It is my concern that federal listings of this scope and magnitude should not be driven by
arbitrary court-settlement deadlines or be based on unpublished or sketchy data or personal
opinions by federal bureaucrats, Perry said during the hearing, adding that the proposed listing
could significantly impact Pennsylvania industries, "while doing little if anything to help
the declining population of long-eared bats.

U.S. dairy industry disputes Canadas increase in EU cheese quota

U.S. dairy exporters and trade groups want the Obama Administration to pressure Canada to
back out of the part of a new trade agreement that grants preferred access to cheese from the
European Union and restricts U.S. sales to an already-tightly-restricted Canadian cheese market.

Their letter to U.S. Trade Representative Michael Froman and Agriculture Secretary Tom Vilsack
said that the pending Canada-EU trade agreement would give the EU exclusive access to more
than 70 percent of Canadas Most Favored Nation cheese imports. The 16 dairy companies and
groups said that the increased quota for the EU contravenes the 1994 General Agreement on
Tariffs and Trade (GATT), which bars countries from using such agreements to restrict trade.

They asked Froman and Vilsack to insist that Canadian officials abide by their obligations under
GATT and refrain from implementing this provision in the pending pact. Canada has said that it
intends to allocate 800 tons of its current cheese quota to the EU, according to the letter. Such a
step would reduce access to the Canadian cheese market for non-EU countries from 6,386 tons to
5,586 tons. This reduction of 12.5 percent is significant given the tightly limited access the U.S.
currently has to the Canadian cheese market, and will have a detrimental impact on the ability of
U.S. cheese producers to export their product to Canada for consumption, the groups said.

This move is also of concern to dairy exporters in other countries, including New Zealand,
Norway and Switzerland, the U.S. industry letter adds. We understand that dairy exporters in
those countries will express similar concerns to their respective governments, and there may an
opportunity for coordinated representations to the government of Canada.
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The Canada-EU free trade agreement was already problematic because it bars U.S. companies
from using several common cheese names on products headed across our northern border, said
Tom Suber, president of the U.S. Dairy Export Council (USDEC). And now it is clear that the
same FTA would reserve 800 tons of an already low quota for cheese imports for the EU.

Clay Hough, senior group vice president of the International Dairy Foods
Association, said the concessions Canada granted the EU are
disconcerting for IDFA and U.S. cheese exporters, and we will continue to
support improved, not diminished, market access for U.S. dairy exports. . .
. [A]s negotiations continue in the Transatlantic Trade and Investment
Partnership (T-TIP) between the United States and the EU, protecting
common cheese names will be a top priority for IDFA.

In addition to USDEC and IDFA, the letter was signed by Atalanta Corp., Elizabeth, N.J .;
Darigold, Seattle; Dairy Farmers of America (DFA); Emmi Roth USA, Monroe, Wis.; Fonterra
USA; Kraft Foods Group; Land O Lakes; Gellert Global Group, Elizabeth, N.J .; MCT Dairies,
Millburn, N.J .; Norseland, Darien, Conn.; Tipico Products, Lakewood, N.J .; Trugman Nash Inc.,
Millburn, N.J ., and the Wisconsin Cheese Makers Association (WCMA).

More changes under way at your local FSA office

President Barack Obama wants to know whats happening at your local Farm Service Agency
(FSA), so shouldnt you, too?

Agriculture Secretary Tom Vilsack said he told the president and vice president during a White
House briefing Monday that the agency has the foundation for a system that brings FSA
technology into the 21
st
century. In addition, Vilsack said he briefed both men about a wide
variety of issues, including school nutrition, problems with rail capacity in the upper Midwest,
and the California drought.

We now have the capacity for a producer to go into a county office.and be able to access
their records from multiple county locations. Thats an important convenience for
producers, Vilsack emphasized during a conference call with reporters.

Vilsack said USDA is also putting the finishing touches on additional modernization of the
technologies so that we can keep a good eye on the integrity of the payments to make sure that
we are recording them and reporting them accurately.

One part of this technology allows FSA to check with the Internal Revenue Service about farm
incomes to make sure that individuals who are in fact entitled to payments can receive them.
Another enhancement, expected this fall, will go a long way toward helping USDA to ensure that
proper payments are, in fact, being made and being made in a timely manner, explained USDA
Under Secretary for Farm and Foreign Agriculture Services Michael Scuse.

Vilsack said he also talked to the president about the need for FSA offices to have a broader
portfolio of opportunities to help producers, in addition to the important work thats done in
providing disaster assistance and assistance under the programs and farm loans.

IDFAs Clay Hough
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We would like to see many in the FSA offices be able to provide advice and counsel to
producers who are looking for creative ways to use their land and maybe a local and regional
food system opportunity, maybe a conservation easement possibility, it may be participating in a
new ecosystem market or being part of a co-op that puts together a new bio economy
opportunity, he explained during the call. We want FSA offices to be places where farmers can
at least get the first bit of information that allows them to maximize opportunity. All of that was
discussed with the president.

In other FSA news, Scuse said FSA has delivered $2.6 billion to 240,000 producers thus far
under the livestock disaster programs provided in the 2014 Farm Bill.

Weve had a tremendous volume of workload, but weve been able to get the payments out the
door, Scuse told Agri-Pulse in an interview. The other important thing that we want to get
out is that we need these ranchers some who have never walked into their local FSA office
before - to contact their local office before Oct. 1 so that their livestock disaster payments
will not be sequestered. The Budget Control Act will reduce payments that have not been
requested prior to Oct. 1 by 7.3 percent.

Scuse said that he is looking forward to releasing the next phase of MIDAS (The Modernize and
Innovate the Delivery of Agricultural Systems project) initially conceived in 2004 which
aims to replace the aging 1980s style computers at the over 2,200 FSA offices and streamline all
of the data required to administer USDA programs.

We are working very hard on the acreage crop reporting streamlining initiative, Scuse said.
The initiative will tie FSA and Risk Management Agency data together and enable single crop
reporting for producers. A pilot program that was conducted in one Illinois county last year will
be expanded to several other counties across the U.S. this year in an effort to demonstrate that the
system works.

Comcast/Time Warner Cable merger highlights rural access, RFD-TV

Sen. Chuck Grassley, R-Iowa, wants to know what allowing No. 1 cable company Comcast to
acquire No. 2 company Time Warner Cable (TWC) might mean for Americans who live in rural
areas.
The senator wants answers before the Federal Communications
Commission (FCC) and the J ustice Department rule on whether the
proposed $45.2 billion merger is in the public interest and complies with
antitrust laws. So far, Grassley says theres been a lack of discussion of
the impact of the merger on rural America. He warns that with the
merger decision being made by the FCC and the J ustice Department,
too often bureaucrats looking at these mergers dont know enough
about rural America or maybe forget about it, and forget that rural
America has different challenges than urban centers.

Grassley tells Agri-Pulse he also worries about RFD TV, which provides
24-hour coverage of rural issues. A year ago, Comcast abruptly stopped carrying RFD TV in
Colorado and New Mexico. That cancelation unleashed a flood of complaints to Comcast and
was a major issue in congressional hearings this spring.
Sen. Chuck Grassley
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In one House J udiciary subcommittee hearing, the panel chairman, Spencer Bachus, R-Ala.,
cautioned Philadelphia-based Comcast Executive Vice President David Cohen that what may
be a consumer in Philadelphia and what may be a consumer in Coosa County, Alabama,
which is an agricultural county, or in Colorado, is a totally different consumer.

When Bachus asked why Comcast stopped carrying RFD TV, Cohen answered that our local
teams made a judgment that it was more important for us to add more high definition channels of
popular programming like the Smithsonian Channel and the Food Channel, that those were more
valuable to the customers in that market. Cohen also said we are primarily an urban-
clustered cable company, in explaining why RFD-TV was dropped.


Cohen insisted that our getting bigger is better for consumers. He predicted that consumer will
benefit because the merger will provide more investment and technology and new services
such as faster Internet speeds, a more reliable and more secure network, net neutrality protection,
low-cost Internet access, and programming diversity to more American homes and businesses.

Cohens answers dont impress Patrick Gottsch, the founder and chairman of the Rural Media
Group, the parent company of RFD TV, Rural TV, FamilyNet and Rural Radio. In an Agri-Pulse
interview, Gottsch explained that its extremely frustrating to contend with the disconnect
between some urban executives and the issues that are important to rural America. He
said its frustrating because a couple of Comcast executives used their gatekeeper power to cut
off RFD-TV service in Colorado and New Mexico and because with over 57,000 of the
75,000 public comments made to the FCC being about the importance of rural TV programing
and protecting rural America, there appears to have no effect on Comcasts urban-clustered
attitude.

Based on Comcasts estimate that its post-merger audience will be 14 percent rural, Gottsch says
that even if Comcasts rural viewers are only 14 percent, that is four and a half million homes
and Comcast doesnt seem to want to carry even one channel to serve those rural interests. . . .
Out of the 400 channels, cant there be at least one channel thats totally dedicated to the
news of rural America?

In a direct response to Gottsch in August, Cohen said, Your efforts to drive a wedge between
Comcast/Time Warner Merger Timetable

J uly 10: Public notice of Comcasts petition to purchase Time Warner
Cable starts the FCCs 180-day clock.
Aug. 25: Public comment period closed. 75,671 submissions received.
Sept. 23: Responses to the comments are due.
Oct. 8: Deadline for commenting on the Sept. 23 responses.
Oct. 8 & 9: Comcast and TWC shareholder meetings to consider the
merger and the bonus payments to TWC executives.
J anuary 2015: The FCCs goal is to grant an application, set conditions,
or schedule a hearing by the 180
th
day.
www.Agri-Pulse.com 11

Comcast and rural viewers as a means to promote your own business interests is unfair and
grossly inaccurate.

Meanwhile, at least one company is stepping in to fill a demand for rural news. On Sept. 8,
AT&T announced a distribution agreement to deliver RFD-TV to AT&T U-verse customers. We
strive to carry content that appeals to a wide variety of audiences, said Aaron Slator, president,
content development, for AT&T. Were excited to be able to bring RFD-TV programming to our
customers.

In sharp contrast with Comcast, Gottsch says, the AT&T executives reacted to the congressional
hearings in Washington, D.C., by reaching out to us . . . They have followed up, they have
educated themselves, and they decided that carrying RFD-TV was a good deal, especially with
their interest in expanding broadband to 15 million more rural homes.

Cohens urban-clustered cable company answer may not have impressed FCC Chairman Tom
Wheeler either. Last week, Wheeler pointed out that Americans living in urban areas are three
times more likely to have access to high-speed broadband than Americans living in rural areas.
Without mentioning Comcast or the merger, he warned that we cannot tolerate the broadband
digital divide getting larger.

Some observers say Wheelers warning could spell trouble for the pending Comcast/TWC
merger. It also could be a signal that TWC Chairman and CEO Rob Marcus shouldnt start
spending the $81.8 million hes been promised as a bonus for agreeing to have his company
absorbed by Comcast. Its at least possible that the FCC will either reject Comcasts merger
plans or place restrictions on the enlarged Comcast such as Gottschs request for specific
conditions protecting rural and other underserved programming. Wheelers warning also
could affect another pending merger: AT&Ts $48.5 billion bid for DirecTV.

Explaining that competition is the most effective tool for driving innovation, investment, and
consumer and economic benefits, Wheeler considers it important to ensure that broadband will
continue to be responsive to competitive forces.

FCC Chairman Tom Wheeler:
. . . where competition cannot be expected to exist, we must shoulder
the responsibility of promoting the deployment of broadband. One
thing we already know is the fact that something works in New York
City doesnt mean it works in rural South Dakota. We cannot allow
rural America to be behind the broadband curve. Our universal service
efforts are focused on bringing better broadband to rural America by
whomever steps up to the challenge not the highest speeds all at
once, but steadily to prevent the creation of a new digital divide.

Rural TV viewers may have another ally in New York Mayor Bill de Blasio. He warns in a letter
to Wheeler that a series of similar mergers has already reduced competition in the cable and
broadband sectors, leaving Americans vulnerable to increasing rates and declining customer
service. He adds that the Comcast/TWC merger may reduce competition between distributors
and programmers, with Comcast potentially favoring its own programming and limiting
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independent programing, as in the case of Comcast canceling RFD-TV for Comcasts 470,000
subscribers in Colorado and New Mexico.

Rice exporters see unfair overseas competition

Two separate perspectives saying much the same are coming soon to federal trade officials,
warning that U.S. rice exporters face a near-crisis level of unfair and ever-stiffening competition
from the Far East.

USA Rice Federation and Firstgrain Inc., a Texas-based rice market consulting and analysis firm,
are finalizing presentations to the U.S. International Trade Commission (ITC) that will specify
how U.S. rice exports are being squeezed by multiple factors. They include everything from the
trade policies of foreign governments to surplus production patterns in Asian countries such as
India, Thailand and Vietnam that continue to shrink the U.S. share in the always competitive
global rice market.

A hearing scheduled for today at the ITC, at which both USA Rice and Firstgrain were going to
testify, was cancelled. USA Rice Federation Chief Operating Officer Bob Cummings said the
group is in regular touch with ITC investigators and is finalizing its report, while FirstGrain
founder and senior economist Milo Hamilton said he plans an informal visit to the commission
today instead.

The broad argument were going to be making is that when youre looking at factors that impact
the competitiveness of the rice industry, on one hand on the domestic side youve got a clear
pattern of support from the U.S. government for the rice sector, Cummings told Agri-Pulse.

At the same time, if you look at some key foreign rice producers who also happen to be very
large exporters and therefore competitors of ours India, Thailand, Brazil theres a steady
increase in support provided by those governments for their exports. And particularly with India,
Thailand and Vietnam, when those countries produce more rice than they consume, theres a
surplus and downward price pressure.

Similarly, Hamilton also said rice prices in Asian countries have been kept below market rates,
hurting U.S. export efforts. He blamed government subsidies, which are far more
pronounced in the Far East than in America. What is saving U.S. rice producers, Hamilton
said, is that most of their exports are going to countries in the Western Hemisphere such as
Uruguay, Argentina and Brazil, which have lighter subsidies.

Hamilton plans to present his book, When Rice Shakes the World, to the commission. The
book examines the social, economic and political history of the grain, focusing on its effect on
financial markets and governmental stability. He said he hopes the commission can learn from
the history he unearthed and how it has affected Asian countries trade policies.

The Great Wall of China is held together with a mixture of sticky rice, he said. But its
not just the cement of the Great Wall, used for military protection against the Mongol hordes. It
is a cultural cement throughout Asia in the minds of the older generation something to be
protected and specially guarded. Its a very closely held commodity in these countries. Almost an
obsession.

www.Agri-Pulse.com 13

The worsening trade outlook is not quite new. Cummings pointed to a Rice Federation study in
2011 that examined rice support programs by the governments of Thailand, India, Turkey and
Brazil to see if they were compliant with the Uruguay Round agreement under the World Trade
Organization.

We focused on whether the support provided by those governments to their rice producers was
consistent with the obligations of those countries, he said. We found, in all cases, rice was
being supported by those countries in excess of what was allowed. So this is not a story that
has just come out this year, but were educating people about it.

Both Cummings and Hamilton said one bright spot for U.S. rice producers is the possibility of
opening up markets in China, although several hurdles remain. Trade talks with China over the
issue have languished for seven years because of difficult Chinese demands, Cummings said. But
Hamilton said he is optimistic because the Chinese will eventually start diversifying the
countries from which they purchase rice, potentially including the U.S. sometime soon.

The House Ways and Means Committee in May tasked the ITC with investigating the openness
and competitiveness of global rice markets, a review which the commission launched in mid-
J une. There is a Dec. 9 deadline for written submissions to the commission, and ITCs report to
the panel is expected April 14, 2015.

The report is supposed to be a fact-finding document only, although some legislation or changes
in trade policy could result. ITC Public Affairs Officer Peg OLaughlin said the report will be
made public when it is available.

Cummings said USA Rices report should be submitted within a week and will be posted on the
federations Web site.

News Briefs:

Lawmakers disagree on split farm bill: Two legislators with 52 years in Washington
between them acknowledge the 2014 Farm Bill was difficult to pass, but disagree on whether the
nutrition program should be in separate legislation. Speaking to the produce organization United
Fresh in Washington on Tuesday, Rep. Doc Hastings, R-Wash., who is retiring at the end of this
term, said the current ratio of nutrition to agricultural programs nutrition funding accounts for
83 percent of farm bill spending - is unsustainable, and that a stand-alone farm bill wouldnt be
all that bad. Sen. Pat Roberts, R-Kan., the ranking member of the Senate Agriculture Committee,
told the same group he thought the Supplemental Nutrition Assistance Program begged for
reform, but he hoped nutrition will not be split from the Farm Bill. Roberts pointed to the
successful coalition farm and nutrition groups enjoyed in the past and said splitting the bill could
force the legislation to get wrapped up in something else that wouldnt be called a farm bill.
FMC builds up. Pending regulatory approval, Philadelphia-based FMC agreed to acquire
Danish pesticide maker Cheminova for $1.8 billion, including $340 million in debt. CEO Pierre
Brondeau said he wanted FMC to have a higher focus on agriculture, health and nutrition. He
said that Cheminova brings complementary technologies in insecticides and herbicides,
significantly enhances FMC's fungicide portfolio and adds a growing micronutrient business.
Cheminova has a portfolio of more than 60 active ingredients, over 2,300 registrations and a
www.Agri-Pulse.com 14

pipeline of active ingredients currently under development. It is the addition of this broad suite of
technology that is particularly exciting to us, and we firmly expect to increase our pace of new
product launches in the coming seasons as a direct result of adding Cheminova's capabilities to
ours," said Brondeau. In addition, Cheminova's direct market access in Europe, combined with
its strong position in Latin America, will help bring greater balance to our business. Its
technology will allow us to expand our position in existing crop segments and provide
accelerated access to additional crops, such as cereals. It will also strengthen our offerings to
existing customers, especially in sugarcane, soybeans and cotton," he said. FMC will modify its
previously announced separation plans by pursuing a sale of Alkali Chemicals the worlds
largest maker of soda ash to make paper and glass - while FMC Lithium will be retained as a
separate operating segment.
Bayer opens research greenhouse. Bayer CropScience is celebrating the grand opening of
its newest research facility, a $17 million, 76,000 square-foot greenhouse at its facility in
Memphis, Tennessee. The greenhouse, located at Agricenter International, is part of Bayers
commitment to invest almost $1 billion in research and development as well as expanded
production capacities and seed breeding facilities globally, between 2011 and 2016. The
greenhouse will accommodate research to increase the number of traits available for cotton
varieties in the United States and international markets. The company also recently opened an
$80 million site in West Sacramento, California, designed to support the research and
development of biological crop protection products and vegetable seeds.
CDC issues red flags on sodium. A 2009-2010 survey that estimated childrens sodium
intake based on interviews found that more than 90 percent of U.S. children aged 6-18 eat more
sodium than recommended, putting them at risk for developing high blood pressure and heart
disease later in life and putting new pressure on food manufacturers to reduce sodium levels.
Interestingly, the report found that children who qualified for reduced price school meals had the
lowest average sodium intake. U.S. school-aged children consumed an estimated 3,279 mg of
sodium daily, with high school aged children recording the highest total intake and intake per
1,000 kcal (1,681 mg), according to the Centers for Disease Control (CDC) Vital Signs report.
The target is 2,300 mg daily, a decrease of approximately 40 percent from current intake. About
43 percent of the sodium came from 10 food categories: pizza, bread and rolls, cold cuts/cured
meats, savory snacks, sandwiches, cheese, chicken patties/nuggets/tenders, pasta mixed dishes,
Mexican mixed dishes, and soups, according to the survey. Too many children are consuming
way too much sodium, and the result will be risks of high blood pressure and heart disease in the
future, said CDC Director Tom Frieden. Most sodium is from processed and restaurant food,
not the salt shaker. Reducing sodium intake will help our children avoid tragic and expensive
health problems.

Farm Hands on the Potomac . . .
Jim Nussle, 54, former eight-term Iowa congressman and director of the White House Office of
Management and Budget for President George W. Bush, will soon assume a new role as the
president and CEO of the Credit Union National Association. A member of the founding board of
Growth Energy, a trade association of renewable energy companies and industry partners, he was
named president and COO of the group in November 2010. He is the founder of The Nussle
Group, a multi-disciplined public affairs and strategic consulting firm.
www.Agri-Pulse.com 15

The National Cotton Council has hired Reece Langley to run its Washington operations.
Langley joins NCC from USA Rice Federation where hes been serving as vice president of
government operations since 2005. Starting Oct. 13, Langley be working closely with the man
hell replace, John Maguire, until mid-February when Maguire retires. Raised on a cotton farm
in Athens, Alabama, Langley earned his bachelor's degree in Agricultural Economics and an
MBA, both from Auburn University.
Californian Kari Barbic has joined the Communications Department of the American Farm
Bureau Federation in the newly created position of media specialist. Among her other duties,
shell be coordinating the AFBFs weekly Focus on Agriculture column. Another new AFBF hire
is Lindsay Calvert. The Iowa State grad is now the groups director of leadership development in
the Organization Department.
CHS Inc. named David Black as its chief information officer, based at the companys
headquarters in St. Paul, Minnesota. Black comes to CHS from Monsanto where most recently he
was vice president, information technology. CHS is the nation's leading farmer-owned
cooperative and a global energy, grains and foods business.
FLM+has announced three new team members. Jon Montgomery is the new creative director
in the Minneapolis office where hes joined by production assistant Molly Heinz. The companys
Indianapolis office is welcoming Cole Strasburg as an associate client relationship team leader.
Strasburg is a 2014 Kansas State grad and a former state president of Kansas FFA.
A change of governance is in the works at dairy producer Danone. On the recommendation of
Chairman and CEO Franck Riboud, the companys board voted to separate the functions of
chairman and CEO, with Riboud remaining as chairman and his deputy, Emmanuel Faber,
assuming the chief executive job. Riboud said he wants to focus on the future of the $45 billion
company. This is the first time in the company's history that the roles of CEO and chairman have
been split. The changes take effect Oct. 1.
Paul Wilkins has joined the Theodore Roosevelt Conservation Partnership as chief conservation
officer. Wilkins spent the past decade working with Max Baucus, former Democratic senator
from Montana and current U.S. ambassador to China. Most recently he served as Baucus chief
of staff. Wilkins grew up on a sheep ranch in Melstone, Montana, and holds a bachelors degree
from Gonzaga University and a masters from Fordham University.
Congratulations to Trevor White, who will work with Combest, Sell & Associates as a member
of the 2014-2015 class of Bryce Harlow Foundation fellows. The fellowships are awarded
annually to graduate students interested in careers in lobbying, advocacy and government
relations. During the year, fellows work full-time on Capitol Hill or in government while
attending graduate school part-time. Combest, Sell & Associates is led by Larry Combest, a
former Republican chairman of the House Agriculture Committee from Texas.
The National Potato Council has hired Steve Holton as its director of corporate and public
relations. Holton is a former legislative aide with the Senate Agriculture Committee and with
Rep. Virginia Foxx, R-N.C., during her time as a member of that committee. The Alabama native
takes over NPCs public relations reins from Mark Szymanski, who recently accepted a position
as communications director with the Iraq and Afghanistan Veterans of America.
www.Agri-Pulse.com 16

Zach Clark is joining the National Farmers Union government relations team in Washington. He
comes to NFU from the staff of Rep. J oe Courtney, D-Conn., a member of the House Agriculture
Committee, where he was a legislative aide.
Kansas City, Missouri-based FarmLink has hired Paul Konrad as its managing director of
business development. Most recently Konrad served as executive vice president for agronomy at
West Central, one of the countrys 20 biggest grain companies. Among other things, FarmLink
operates the largest combine leasing fleet in the U.S., under the MachineryLink brand.
Agriculture Secretary Tom Vilsack this week announced the re-appointment of eight members
and the appointment of three new members to the Council for Native American Farming and
Ranching. The appointees are: John Berrey, Quapaw Tribe, Sperry, Oklahoma; Tawney
Brunsch, Oglala Sioux, Kyle, South Dakota; Gilbert Harrison, Navajo, Shiprock, New
Mexico; Henry Holder, Choctaw, Soper, Oklahoma; Derrick Lente, Sandia Pueblo, New
Mexico; Jerry McPeak, Muscogee Creek, Warner, Oklahoma; Angela Sandstol, Native Village
of Tyonek, Alaska; Edward Soza, Soboba, Banning, California; Mary Thompson, Eastern
Band of Cherokee, Cherokee, North Carolina; Sarah Vogel, Bismarck, North Dakota; and Mark
Wadsworth, Shoshone-Bannock, Blackfoot, Idaho. Four USDA officials were also appointed to
the Council. They are: Chris Beyerhelm, director, Farm Loan Programs, Farm Service Agency;
Val Dolcini, administrator, Farm Service Agency; Joe Leonard, assistant secretary for Civil
Rights; and Leslie Wheelock (Oneida), director, Office of Tribal Relations.
The employees of Chick-fil-A are in mourning after the death of S. Truett Cathy, the companys
founder and chairman emeritus. He died on Monday at the age of 93. Cathy opened a tiny diner
in the Atlanta suburb of Hapeville, Georgia, in 1946 where he created the original Chick-fil-A
sandwich. He eventually turned this enterprise into one of the nation's largest family-owned
companies as Chick-fil-A reached $5 billion in annual sales in 2013. The company currently has
more than 1,800 restaurants operating in 40 states and Washington, D.C. A devout Southern
Baptist, Cathy incorporated biblical principles into the workplace, including a Closed-on-
Sunday policy at his restaurants that continues to this day. Cathy's oldest son, Dan, became
president of Chick-fil-A in 2001 and chairman and chief executive officer in 2013.
Best regards,

Sara Wyant
Editor

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