NPPC promotes Adamson to Assistant V.P.
NPPC promotes Adamson to Assistant V.P.
The National Pork Producers Council has promoted Audrey Adamson to the position of assistant vice president for public policy in its Washington, D.C., office.
“This is a well-deserved promotion and reflects Audrey’s dedicated service to NPPC and to the U.S. pork industry,” said Kirk Ferrell, NPPC’s vice president for public policy. “As an example, because of her tireless efforts, the 2008 Farm Bill contains a number of provisions that will benefit pork producers.”
Adamson previously was NPPC’s director of government relations, overseeing the organization’s lobbying efforts on legislative issues, assisting in policy development and representing NPPC before Congress, federal agencies and non-governmental organizations.
Prior to joining NPPC, Adamson served as the Washington Office Director for the 13-state Midwestern Governors’ Association. She worked on the 2002 Farm Bill and on regional energy and agriculture emergency response issues. While working for Science Applications International Corporation, she managed several programs related to the U.S. Department of Energy’s environmental clean-up at nuclear weapons complexes and on technology transfer programs. Earlier in her career, Adamson worked for the U.S. Department of Commerce on a variety of international trade issues related to the steel, machine tool and semiconductor industries.
Adamson holds bachelor’s degrees in political science and history from the University of Michigan and a master’s degree in public administration from The George Washington University. While pursuing her graduate degree, she was awarded the Ford Motor Company Congressional Fellowship.
“Audrey is well-respected throughout the agricultural and meat-processing industries and on Capitol Hill,” said Ferrell. “Pork producers could have no better advocate than Audrey.”
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Waive ethanol mandate, urges NPPC
With rising pressures on this year’s corn crop, which now have been ratcheted up because of flooding in the Midwest, and the prospect of significant numbers of pork producers going out of business from the resulting higher feed costs, the National Pork Producers Council today called for the federally-mandated target for corn-based ethanol production to be cut in half.
In comments submitted to the U.S. Environmental Protection Agency, NPPC urged that the state of Texas be granted a waiver of the Renewable Fuels Standard (RFS) and that the amount of biofuels – ethanol is the only viable biofuel – that must be produced in 2008 be reduced to 4.5 billion gallons from 9 billion gallons. EPA must make a decision on the waiver requested by Gov. Rick Perry by July 24.
Pork producers have been feeling the pinch of higher prices for feed, which accounts for 70 percent of the cost of raising a hog. Feed grain prices already were increasing starting in the summer of 2006 because of the rapid rise in ethanol production. Since then, increased global demand for crops, drought conditions in parts of the world and the RFS requirement have fueled even higher grain prices. (A bushel of corn for July delivery now is selling for more than $7 compared with about $2.60 in July 2006.) From September 2007 to April 2008, corn prices rose 124 percent and soybean meal prices went up 94 percent. During that time, pork producers lost an average of $30 on each hog marketed.
“The U.S. government’s intervention in grain markets, through the RFS, has created one of the most severe economic crises to ever hit pork producers,” said NPPC President Bryan Black, a producer from Canal Winchester, Ohio. “The impact for the pork industry and its customers will be devastating as herds are culled, producers go out of business and pork prices skyrocket.”
Making matters worse are the recent flooding in much of the Heartland and delayed plantings because of a cool, wet spring, which have pushed corn yield forecasts significantly below earlier projections. USDA recently reduced to 149 bushels from 154 bushels its estimated average yield per acre. That expected shortfall along with a mandated 38 percent increase in ethanol production over last year has producers very concerned about having physical access to corn to feed their livestock, pointed out NPPC in its comments to EPA.
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Feed costs, availability will raise pork prices, force producers out of business
Retail prices of pork will rise and some pork producers will go out of business because of current crop conditions and subsequent feed availability issues, the National Pork Producers Council today warned the U.S. Democratic Steering and Outreach Committee during a meeting on rising food prices.
NPPC CEO Neil Dierks joined representatives of crop commodity organizations, hunger and food groups, labor unions, religious groups and renewable fuels organizations in a discussion with several Senate Democrats on the global and domestic impact of rising food prices, the factors contributing to the trend and possible solutions to the problem.
“Food price inflation for pork will be a reality,” said Dierks, the only representative from the livestock industry to attend the meeting, which was presided over by Majority Leader Harry Reid of Nevada and committee Chairwoman Debbie Stabenow of Michigan.
Projections are that just to allow producers to break even pork retail prices will need to increase by at least 17 percent next year because of the recent rise in feed costs, which account for 70 percent of the cost of raising a hog. Corn prices have increased by 124 percent and soybean prices by 94 percent since September. From October through April, pork producers lost an average of $30 on each hog marketed, and many producers since have been forced to quit the business.
The two-year run-up in crop prices – corn was about $2.60 a bushel in July 2006 compared with around $6.70 a bushel for July 2008 delivery – is due several factors, including the new increased demand from corn-based ethanol plants. Additional pressures on prices and availability now are being felt because of weather conditions in much of the Corn Belt. USDA yesterday revised down by 390 million bushels its forecast for the 2008 corn crop.
“Given current crop conditions and projections for next year,” Dierks told the committee, “there will be tremendous stress on pork producers.”
He pointed out that as producers leave the industry prices will rise because of less pork production, resulting in reduced feed use of corn.
One solution to the need for more corn Dierks offered the committee: release of non-environmentally sensitive acres from the Conservation Reserve Program to crop production. NPPC previously has asked USDA to consider such a proposal.
NPPC also previously has urged lawmakers to strike a balance between food, fuel and feed needs when considering energy policies, including the recently approved mandate that by 2010 15 billion gallons of renewable fuel come from corn-based ethanol. Additionally, NPPC has policy that calls for the expiration of the ethanol blender’s tax credit and the tariff on imported ethanol.
“The interrelated issues of rising food prices, how crop availability and usage come into play and national energy policy are complicated,” said Dierks. “As an industry, we need to resolve these problems for our producers and for consumers.
“NPPC is grateful to the Democratic Steering and Outreach Committee for holding these discussions,” he added, “and hopes that the dialogue will continue.”
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