By Pat Hill, DTN Market Reporter
DTN’s market expert provides analysis of the ag-related segments of last night’s State of the Union address.
There was no mention of cellulosic ethanol in President Bush’s final state of the union address delivered Monday evening.
In fact, much of the speech dealt in very general terms.
While he did not talk specifically about the pending farm bill legislation, the president was quite clear about his intention to resist tax increases. Very early in the speech he said, "Most Americans think their taxes are high enough. With all the other pressures on their finances, American families should not have to worry about the federal government taking a bigger bite out of their paychecks. There is only one way to eliminate this uncertainty: make the tax relief permanent. And members of Congress should know: If any bill raising taxes reaches my desk, I will veto it."
Congress will get the president’s final budget next week. Bush promised it will be one that "terminates or substantially reduces 151 wasteful or bloated programs totaling more than $18 billion. And this budget will keep America on track for a surplus in 2012. American families have to balance their budgets, and so should their government."
In another stern lecture to Congress, the president attacked the use of earmarks. He said, "The people’s trust in their government is undermined by Congressional earmarks — special interest projects that are often snuck in at the last minute, without discussion or debate. Last year, I asked you to voluntarily cut the number and cost of earmarks in half. I also asked you to stop slipping earmarks into committee reports that never even come to a vote. Unfortunately, neither goal was met. So this time, if you send me an appropriations bill that does not cut the number and cost of earmarks in half, I will send it back to you with my veto. And tomorrow, I will issue an Executive Order that directs federal agencies to ignore any future earmark that is not voted on by the Congress. If these items are truly worth funding, the Congress should debate them in the open and hold a public vote.
On trade issues, President Bush, as expected, urged completion of the Doha round of WTO talks, and he asked Congress to approve free trade agreements with Colombia, Panama and South Korea.
On energy, Bush said, "To build a future of energy security, we must trust in the creative genius of American researchers and entrepreneurs and empower them to pioneer a new generation of clean energy technology. Our security, our prosperity, and our environment all require reducing our dependence on oil. Last year, I asked you to pass legislation to reduce oil consumption over the next decade, and you responded.
Together we should take the next steps: Let us fund new technologies that can generate coal power while capturing carbon emissions. Let us increase the use of renewable power and emissions-free nuclear power. Let us continue investing in advanced battery technology and renewable fuels to power the cars and trucks of the future. Let us create a new international clean technology fund, which will help developing nations like India and China make greater use of clean energy sources. And let us complete an international agreement that has the potential to slow, stop, and eventually reverse the growth of greenhouse gases. This agreement will be effective only if it includes commitments by every major economy and gives none a free ride. The United States is committed to strengthening our energy security and confronting global climate change. And the best way to meet these goals is for America to continue leading the way toward the development of cleaner and more efficient technology."
The president renewed his call for immigration reform. After claiming advances in efforts to stop illegal crossings and work site enforcement, he said, "We also need to acknowledge that we will never fully secure our border until we create a lawful way for foreign workers to come here and support our economy. This will take pressure off the border and allow law enforcement to concentrate on those who mean us harm. We must also find a sensible and humane way to deal with people here illegally. Illegal immigration is complicated, but it can be resolved. And it must be resolved in a way that upholds both our laws and our highest ideals."
Bush turned to international issues to conclude his speech, repeating an administration proposal to provide food assistance "by purchasing crops directly from farmers in the developing world, so we can build up local agriculture and help break the cycle of famine."
Editor’s note: Hill provides hourly and daily analysis for DTN customers. Visit www.dtnag.com for more information.
