2013 Agricultural Policy Outlook Unpredictable

No matter where one sits in the world of agriculture, weather matters. While the past season’s drought is fresh in everyone’s minds, Mother Nature provided equally taxing incidences that placed agriculture in the opposite circumstance of floods with very much the same outcome. Whether it’s a drought or a flood, we are in the business of helping customers operate with maximum productivity. Much like the weather, the strength and direction of public policy is often unpredictable. Using this analogy, I characterize the 2013 policy outlook as cloudy with a strong chance of rain.

While the cloud of policy gridlock is very much in the news, inaction rarely extends to the activities of federal regulators and the outside stakeholders they impact where it seems to be raining much of the time. From the environment to fertilizer transportation and security, developments in Washington, DC, and in the states during the coming year are worthy of retailers’ attention.

All Shapes & Sizes

Policy developments come in many shapes and sizes, so it’s important to focus on more than government activity. Many times our challenges originate outside the government and instead come from environmental organizations and are concerned with the impact that we might have on the environment and particularly in their own community. Very often these groups’ legal or advocacy efforts engage the attention of policymakers who then step into action.

The push and pull between the industry’s stewardship of resources, policymakers and non-governmental organizations’ questions about the depth of our commitment — is the figurative umbrella under which all of our challenges sit. In many arenas, we are being evaluated not on practice but on performance. It’s really no different than how you evaluate any of your employees: It’s not what you say you want to do, but the manner in which you are carrying out the job and making a positive difference.

Water quality issues remain front and center for the retail community largely as a result of EPA’s ongoing action in watersheds and individual states. In this policy area, litigation is often a large part of the equation. Under a process that is called “sue and settle,” an environmental group will sue EPA, upon which time EPA will settle the suit which allows the agency to move forward with regulation which it does not have a Congressional mandate to enact.

At presstime, developments in Florida regarding EPA’s action to impose numeric nutrient criteria on agribusiness and others look to be moving in a positive direction, with EPA indicating that it plans to step back and allow the state to resume much of its role in regulating water quality. Make no mistake — regardless of who ultimately comes out on top in this battle, water quality will continue to be regulated. It is worth noting that the any net positive that results in Florida resulted from a strong legal and lobbying response to EPA from the fertilizer industry, farmers, municipalities, state and national politicians, and the business community.

Water Issues Heating Up

On a related issue, we anticipate that action will continue to heat up in March of 2013 in regards to the Mississippi-Atchafalaya River Basin (MARB) and the northern Gulf of Mexico. Gulf Restoration Network has filed a legal challenge of EPA’s denial of a petition to establish numeric nutrient criteria and a Total Maximum Daily Load to address excess nitrogen and phosphorus levels in the MARB and the northern Gulf of Mexico.

As was the case in Florida, it is reasonable to expect the EPA’s nutrient limits could be very stringent and in some cases impossible to meet. Furthermore, it would be enormously expensive to implement the limits, assuming they could even be met. Just for Florida freshwater systems, the cost was estimated at $298 million to $4.7 billion a year, increasing Floridians sewer utility bills by a range of $570 to $990 per year per household. Because most all states would like to maintain control over regulating their own waters, many states have directly stepped in as parties supporting our intervention in this litigation.

Remember what I said earlier about the necessity of “walking the walk.” Here is where your customers’ implementation of 4R nutrient stewardship (use of the right nutrient source at the right rate, time and place) can play a positive role in keeping nutrients out of the environment in the first place. If you don’t already have one in place, you should consider developing a plan for assisting your growers implement all four of the Rs. This step will not only have benefits for the environment and associated policy but will benefit your customers’ financial bottom line.

Quality is not the only water related challenge for the industry. Our attention is also on the river system and its ability to function for the transport of fertilizer during the spring season. As mentioned earlier, the impact of the drought of 2012 continues to be felt in agriculture, both in your customers’ fields and here in Washington, where there is much attention on the Mississippi River system and its critical role in transporting fertilizer products. Although the Corps of Engineers Annual Operating Plan for the Missouri River requires water releases from dams on the upper Missouri River be scaled back each year, we are asking for a Presidential disaster declaration for the Mississippi River to allow the Army Corps of Engineers to take emergency action that will keep the river open. Without such action, the fertilizer delivery system may be extremely challenged before and during the spring planting season. If you depend on the river, we encourage you to keep in touch with us regarding opportunities to weigh in with your elected officials now and in the future to let them know how important the river transit system is to your business.

Product Security

Moving beyond water issues, product security remains an issue of concern. Earlier this year, The Fertilizer Institute was contacted by the U.S. Department of Defense regarding the use of ammonium nitrate in improvised explosive devices that are being used against American servicemen in Afghanistan. While the fertilizer used in these explosive devices is not from American sources, ammonium nitrate is again in the public spotlight and has garnered the attention of reporters from large circulation publications such as the Washington Post. With this attention, it is incumbent upon retailers who handle ammonium nitrate to take every step possible to ensure that the product is secure and sold only to legitimate farmers.

While the implementation of an ammonium nitrate regulatory program is pending at the Department of Homeland Security (DHS) retailers shouldn’t wait for its implementation. The recommended steps from the industry’s “Be Aware for America” program apply as much today as it did more than 10 years ago when the initiative was launched. As a reminder those steps are: Know your customer, protect your product and make the right call to law enforcement if there is a theft of ammonium nitrate or if you notice other suspicious activity.

So there you have it, with the weather as an analogy, I have laid out the cloudy portion of the weather forecast for the policy year ahead. Unlike the weather, however, the prospects for staving off rain are partially in your hands.

As we start the New Year, I encourage you to remain aware of the policy challenges that our industry faces and to get proactively involved in your community, watershed and in the political system as an advocate for fertilizer retailers.

Topics: ,

Leave a Reply

Legislation Stories

Corn Field
LegislationTFI Hopes Court Dismissal Is ‘Final Chapter’ Of Des Moines Water Works Lawsuit
March 20, 2017
The Fertilizer Institute (TFI) released the following statement from President, Chris Jahn on the March 17, 2017, federal court dismissal Read More
Sonny Perdue
LegislationARA: Sonny Perdue Confirmation Delay Simply A Paperwork Snaffu
March 9, 2017
It’s been seven weeks since the White House named former Gov. Sonny Perdue (R-Ga.) as the nominee for the next Read More
Roy Blunt
LegislationARA Recognizes Blunt, Heitkamp For Legislative Efforts Supporting Agriculture
February 17, 2017
Agricultural industry continues to face federal regulatory challenges. Thankfully, agriculture’s allies in the U.S. Senate stepped forward. The Agricultural Retailers Read More
LegislationThe Fertilizer Institute Commends Senate On Confirmation Of New EPA Administrator
February 17, 2017
The Fertilizer Institute (TFI) President Chris Jahn issued the following statement on the Senate confirmation of Oklahoma Attorney General Scott Read More
Trending Articles
AdjuvantsA New Weed-Control Era Begins: But First, One Last Obstacle
March 4, 2017
There is trepidation, there is reluctance, and there is excitement. Ag retailers feel it all about the new dicamba and Read More
LIFT Academy video screenshot
Crop InputsLIFT Agriculture Academy: A Q&A With West Central Distribution’s Dean Hendrickson
March 1, 2017
West Central Distribution recently launched its LIFT Agriculture Academy, a new, premiere training and professional development resource for West Central’s ag Read More
Farmer and aptop
Matt Hopkins10 Warning Signs Your Website Is Grossly Outdated
February 8, 2017
Your Website is often a visitor’s first impression of your ag retail business. A positive first impression can set the Read More
AgriSync
Matt Hopkins17 Agriculture Apps That Will Help You Farm Smarter In 2017
December 9, 2016
Ag professionals are working smarter, not harder, than ever before. Smart farming technologies have enabled them to reduce costs, maximize Read More
R4023 Sprayer, John Deere
CropLife 100Ag Retail Equipment Report: The Green Party Continues
December 7, 2016
In the annual race for sales in the ag retail equipment marketplace, the color schemes for participants are a little Read More
Mike Stern
Precision AgClimate Corp. CEO Talks Retailer Support For Digital Ag
December 1, 2016
CropLife Magazine’s sister publication, AgriBusiness Global, recently sat down with Mike Stern, CEO of The Climate Corp., following the Monsanto subsidiary’s Read More
Latest News
ManagementThink You Know Water? Take WinField United’s R…
March 22, 2017
Water is among our most precious resources, and arguably the hardest working, with just one percent available for human use, Read More
Corn Field
LegislationTFI Hopes Court Dismissal Is ‘Final Chapter’…
March 20, 2017
The Fertilizer Institute (TFI) released the following statement from President, Chris Jahn on the March 17, 2017, federal court dismissal Read More
Wheat Growers
Industry NewsWheat Growers CEO Dale Locken To Retire
March 20, 2017
CEO Dale Locken has announced that he plans to retire from Wheat Growers. Locken has served almost 15 years as Read More
Bayer Monsanto
Eric SfiligojBayer-Monsanto: Life, LibertyLink, And The Pursuit Of R…
March 20, 2017
As the calendar officially turns to spring, life is in full renewal mode. Flowers are blooming, birds are singing, and Read More
Corn Field
Crop InputsUltra Yield Micronutrients Acquires Kronos Micronutrien…
March 16, 2017
Ultra Yield Micronutrients, Inc. ”Ultra”, an affiliate of Cameron Chemicals, Inc., is pleased to announce that it has acquired the Read More
ManagementSnowstorms, Asset Sales, and Soybeans Prices
March 16, 2017
Editors Paul Schrimpf and Eric Sfiligoj discuss the weather, precision ag, crop protection company mergers, and commodity prices in this Read More
Soybean Field
Seed/BiotechBayer Invests $8.1 million In Soybean Advancement In Th…
March 16, 2017
Growers in Illinois and across the Midwest now have the added benefit of a state-of-the-art soybean research facility, increasing accessibility Read More
CHS
CropLife 100CHS Acquires Western Co-op Transport Association
March 16, 2017
CHS Inc., North America’s leading farmer-owned cooperative and a global energy, grains and foods company, has purchased Western Co-op Transport Read More
Young corn plants in soil
HerbicidesBest Management Practices To Control PPO-Resistant Weed…
March 14, 2017
Weeds resistant to the class of herbicides called protoporphyrinogen oxidase (PPO) inhibitors are spreading at a faster rate than weed Read More
Photo credit: The United Soybean Board/The Soybean Checkoff.
Eric SfiligojFungicide Resistance On The Horizon
March 13, 2017
For many years now, the agricultural market has struggled to keep ahead of an ever-growing number of herbicide-resistant weeds. According Read More
Management2017 Commodity Classic Review
March 10, 2017
Editors Paul Schrimpf and Eric Sfiligoj discuss what happened at the recent Commodity Classic in San Antonio. Read More
Farmer using AgriSync
ManagementMajor AgriSync Update Aims To Extend Ag Experts’ Power …
March 10, 2017
AgriSync announced a major update to its leading collaboration and service management tool for professional ag advisors and their farmer Read More
Agrible Pocket Spray Smart App
EquipmentNew Agrible Pocket Spray Smart App Alleviates Spraying …
March 10, 2017
There’s a new app to help farmers decide when to spray their fields. Pocket Spray Smart is a free iOS Read More
BPIA logo
Crop InputsBiological Products Trade Association Changes Name, Exp…
March 9, 2017
The Biological Products Industry Alliance (BPIA), formerly the BioPesticide Industry Alliance, is the new name of the rapidly growing U.S.-based Read More
BBI MagnaSpread Salford BBI
Equipment14 Fertilizer Spreaders For 2017
March 9, 2017
Application equipment manufacturers stressed flexibility and accuracy with this year’s crop of fertilizer spreaders. From AGCO’s TerraGator TG9300B and Case IH’s 810 Read More
Sonny Perdue
LegislationARA: Sonny Perdue Confirmation Delay Simply A Paperwork…
March 9, 2017
It’s been seven weeks since the White House named former Gov. Sonny Perdue (R-Ga.) as the nominee for the next Read More
Storage Tank The Andersons
CropLife 100The Andersons To Sell Farm Center Locations In Florida
March 8, 2017
The Andersons, Inc. has signed an agreement to sell its farm center locations in Florida to Wedgworth’s Inc., of Belle Read More
Nebraska landscape Photo courtesy of Richard Hurd
ManagementNebraska Water: Another Opportunity To Sell Value
March 8, 2017
Keith Byerly has been an Advanced Cropping Systems (ACS) Manager with York, NE-headquartered, No. 13-ranked CropLife 100 retailer Central Valley Read More