ARA: Chemical Security, Biotech Labeling Among Key Issues In 2015

Crop Protection Bulk StorageThe 2014 mid-term elections could have a significant impact on the policy landscape for agribusiness in 2015-16. Republicans now have their largest House majority since 1928 and have picked up at least eight Senate seats — enough for a majority.

However, I deliberately used the word “could” rather than “would” above because federal elections including this one seem to be more about votes against something or someone rather than votes in favor of something. The electorate is tired of the status quo — fed up with bickering and political posturing. What they’re looking for, in my opinion, are leaders from both political parties — or outside of them — that are able to work together to develop solutions to important national priorities. Now that Republicans control Congress, they must demonstrate an ability to govern or they will be on the losing end of the 2016 elections. Likewise, the White House also has an opportunity to demonstrate leadership.

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Key issues that need to be addressed include employment, the federal budget, entitlement reform, energy security and investments in infrastructure. Getting all these policies right will be critical ingredients to our nation’s future success in the 21st century.

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Here is a synopsis of some policy issues we’re working on and hoping to move forward in this year.

Chemical Security

Much attention in the chemical security arena has been focused on the president’s executive order, issued in response to the West Fertilizer tragedy in April 2013. The Agricultural Retailers Association (ARA) continues to monitor this initiative to encourage a balance between appropriate regulation and operational and financial efficiency. Specifically, we have been pushing back against proposals to regulate fertilizer grade ammonium nitrate (FGAN) under the EPA’s Risk Management Program (RMP) and efforts to apply process safety management (PSM) criteria to ag retail operations. RMP is a Clean Air Act program that was never intended to address a product like FGAN; it would be the proverbial square peg in a round hole solution. PSM is intended for manufacturing operations and cannot be applied to retailers in a practical manner.

Instead, ARA supports common sense, workable proposals such as passage of a multi-year Chemical Facility Antiterrorism Standards reauthorization; removal of the outdated retail exemption from the Emergency Planning and Community Right to Know Act reporting requirements; and implementation of the Safe Handling of Ammonium Nitrate Act, which has been pending at the Department of Homeland Security for seven years.

National Pollutant Discharge Elimination System

This issue carries over as our No. 1 priority from 2014 and it is a major industry problem that would have been solved earlier this year if not for the objection of one Senator. Legislation (HR 935) to correct the problem passed out of both House and Senate Agriculture Committees as well as the House of Representatives. However, HR 935 was never allowed to be considered for a vote on Senate floor or included in the 2014 Farm Bill Conference Agreement despite strong bipartisan, bicameral Congressional support and endorsement by an overwhelming majority of the ag sector. This is one issue that the change in Senate leadership should help favorably resolve.

Water Quality

The news stories about the drinking water of Toledo, OH, being adversely impacted by algae blooms caused in part by fertilizer run-off was the latest in a series of issues around water quality. Nutrient run-off has been a continuous issue in the Chesapeake Bay, the state of Florida, the lower Mississippi River and several state regulatory actions. While agriculture is not the only cause of these water quality challenges, we must continually seek ways to improve our performance in this area. 4R nutrient stewardship must be adopted more widely so that our industry can meet stewardship obligations and retain our license to operate. There are great things being done at the state and local level in many sensitive watershed areas involving retailers, state agribusiness associations, regulators and other stakeholders. Ohio and Illinois are two excellent examples. We need to stay on top of this and make sure we are part of the solution.

EPA Regulatory Issues

There are numerous regulatory issues in the pipeline at EPA, and both history and public statements suggests that the Administration’s foot will remain on the accelerator for the next two years. They include pollinator protection, worker protection standard, Waters of the U.S., a decision (someday) on the 2014 Renewable Fuel Standard and others.

Endangered Species Act (ESA)

There are some fundamental changes that need to be made in ESA, but these are extremely difficult to do and unlikely in the near future due to political concerns. They include improvements to the process and scope of applying economic analysis to listing decisions and limiting the ability of activist organizations to get their legal fees reimbursed when they sue the government. This one provision has created a financial incentive to sue and taxpayers end up paying the bill.

Biotech Labeling, Approval

For many years, the U.S. was a good example of a science-based, predictable regulatory process for biotechnology traits in ag. Our process has become unpredictable, long, expensive and no longer purely scientific. As a result, new technology is harder to bring to market and we no longer have firm ground to stand on in making the case for trading partners to accept our technologies. Confidence of U.S. consumers has also eroded as noted by the perennial ballot measures on biotech crop labeling. A more solid and assertive tone by the government would be helpful and welcome as U.S. ag continues to innovate to meet new challenges.

In Conclusion

Whether in the nation’s capital or in state capitals, or increasingly at the county commission and the city council, involvement in these policy issues by everyone in our industry is becoming increasingly important. Much of this can be coordinated and supported through the various trade associations and serve our industry, but the actual interactions need to be personal — making sure our friends (both live and on Facebook), fellow school parents and soccer parents, community organizations and neighbors know who we are, what we do and why and how we do it. Our collective success in telling our story will have a profound effect on our ability to write the next chapter.

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