Dairy June 2009 – Newsbites
San Joaquin Valley diesel engine permit application due July 1
Owners of agricultural diesel engines in the San Joaquin Valley that do not meet air pollution emission control standards must submit applications to bring their engines into compliance by July 1, 2009.
Non-certified (Tier O) engines greater than 50 brake horsepower must be replaced with Tier 3 engines by January 1, 2010. Rule 4702 adopted by the San Joaquin Valley Air Pollution Control District in 2006 covers both spark-ignited and diesel engines. Dairy owners must submit either an Authority to Construct (ATC) permit application or a Permit-Exempt Equipment Registration (PEER) application by the July 1 deadline.
Further information about the permit application process is available by contacting your Western United Dairymen field representative. Dairy producers learned this week that the USDA Natural Resources Conservation Service has $20.9 million in funds available to help farmers and ranchers reduce air emissions from off-road mobile or stationary agricultural sources. Applications are being taken until June 26, 2009. Dave White, chief of the USDA Natural Resources Conservation Service, made the announcement while attending the national Agricultural Air Quality Task Force meeting in Fresno.
The funds will share the costs of practices that have been shown to reduce ozone precursors—oxides of nitrogen (NOx) and volatile organic compounds (VOC)—and particulate matter, both coarse (PM10) and fine (PM2.5), emissions from agricultural sources. Applications will be ranked and funded based on the amount of the emission reductions achieved in the proposed plan.
Funded practices include engine retrofit devices (fuel management, catalysts, etc.) to reduce emissions from currently functional engines to allow the engines to continue to operate with lower emissions. Stationary, portable, and heavy-duty off-road mobile systems will be included. Other covered air quality practices will include conservation tillage, dust control on farm roads, precision pest control, and manure injection.
For a complete list of practices and information on payment calculations, see www.ca.nrcs.usda.gov/programs/eqip/2009/index.html or visit a local NRCS office.
Pacific Ethanol files for bankruptcy
Pacific Ethanol, Inc. announced May 18 that its subsidiaries which own its four wholly-owned ethanol production facilities have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware in an effort to restructure their indebtedness.
The company and its marketing subsidiaries, Kinergy Marketing LLC and Pacific Ag.Products, LLC (PAP), have not filed for Chapter 11 bankruptcy protection. The company is expected to continue to manage the plant subsidiaries under an asset management agreement and Kinergy and PAP are expected to continue to market and sell the plant subsidiaries' ethanol and feed production under existing marketing agreements.
The plant subsidiaries and WestLB AG and certain other lenders under the credit agreement dated Feb. 27, 2007 have agreed in principle to first priority secured debtor-in-possession (DIP) financing in a maximum amount of $20 million that is intended to enable the plant subsidiaries to continue to satisfy customary obligations associated with their ongoing operations. The plant subsidiaries and the lenders have negotiated a proposed DIP credit agreement. The DIP financing is subject to approval by the bankruptcy court and final documentation as well as numerous other conditions to closing.
Kinergy has renegotiated and amended its credit facility with Wachovia Capital Finance Corporation. Wachovia has agreed to continue providing up to $10 million for Kinergy’s working capital needs. The term of the amended credit facility extends through October 2010. Kinergy’s business is expected to continue uninterrupted.
To view the complete story, visit http://www.biofuelsbusiness.com/feature_stories.asp?ArticleID=102541
US to shelve Roquefort tariff hike
In the final stages of the Bush Administration, 100 per cent tariffs were placed on a swathe European goods, from Italian mineral water to certain meats, as retaliation for an EU ban on American beef that has been raised using certain growth hormones. A 300 per cent tariff was to be reserved for Roquefort alone. But despite the imposition of a 100 percent tariff in 1999, sales of the French blue-veined cheese had continued to rise.
However, the USTR and the EC have agreed to suspend the elevated tariff for at least three years, in exchange for a greater share of the European market for American beef that has not been hormone-treated.
Under the deal, the US will not impose the tariffs proposed for European ‘luxury goods’ by the outgoing Bush Administration for an initial three-year period, and will abolish all sanctions in the fourth year, the USTR said. In exchange, the US will gain duty-free access to the EU market for a further 20,000 tons of beef untreated with growth hormones, rising to 45,000 tons in year four. Both sides have arranged to try to find a longer-term agreement before the end of the fourth year.
However, the Société Roquefort, which has been campaigning against the tariffs, has expressed its displeasure about the decision. It said in a statement that it was disappointed that the 100 per cent tariff would continue for the next three years, despite the beef dispute having nothing to do with the Roquefort cheese industry.
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California Certified Crop Adviser Exam Signup Period
California crop advisers have the opportunity to register for the August 7, 2009 Certified Crop Adviser (CCA) Exam until June 26, 2009. The exam will be given at locations in Sacramento and Fresno. Training and review sessions will be held in Fresno and Sacramento for applicants.
The California CCA Program, administered by the American Society of Agronomy and overseen by a California board of directors, is a voluntary certification program for individuals that provide advice to growers on crop management and inputs. CCAs offer growers assurance that they are competent in all aspects of crop production and up to date on the latest in crop management and government mandates.
“CCAs play an important role in advising farmers on how to comply with regulations and produce crops in an economical and sound environmental manner”, said California CCA Chairman Allan Romander. He points out that, “A CCA is one of the recognized professionals that must certify nutrient management plans for dairies that are being mandated by the Central Valley Regional Water Quality Board".
Individuals may contact the California CCA program at 1143 N. Market Blvd, Suite 7, Sacramento, CA 95834 or call (916) 928-1625 for an application and more information. Exam applications are also available by going to www.cacca.org.
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