• Apply the same rules to on offshore markets trading in the United States as those that apply to U.S. exchanges,require sharing of trading data and adopt limits on the number of futures contracts an investor can own.

• Commodity Futures Trading Commission (CFTC) would limit holdings a speculative investor can have for all agricultural and energy commodities.

• CFTC could place limits on over-the-counter traders.

The White House threatened to veto H.R. 6604, citing a CFTC report released last week that “confirms that swap dealers and index traders are not driving high oil prices.” The vote margin is enough for a veto override. The bill must now be taken up by the Senate, and there were indications this week that the commodity trading legislation may be attached to the Senate’s energy bill.

Kam Quarles, NCFC’s Vice President for Government Affairs, announced this week that he was departing the organization to join the legislative affairs staff of the United Fresh Produce Association. Quarles, who has been with NCFC for four years, handled a range of issues for the association, including trade, immigration, specialty crops and appropriations.

Prior to joining NCFC, Quarles had served as the Washington-based government affairs representative for Sunkist Growers, an NCFC member cooperative.

“It has been a pleasure to work with Kam over these past four years, and his presence on the NCFC staff will be truly missed,” said Terry N. Barr, NCFC’s interim president. “However, we realize that this position at United Fresh offers an outstanding opportunity for Kam, and we wish him the best of luck in his new job.” Quarles will be with NCFC through mid-October.

On September 16 the House passed the “Comprehensive American Energy Security and Consumer Protection Act.” H.R. 6899 includes extension of the placed-in-service date for the Section 45 renewable energy credit; a one-year extension of the $1.00 per gallon production tax credit for biodiesel and 10 cents per gallon small biodiesel producer credit; and a one-year extension of $1.00 per gallon production tax credit for diesel fuel produced from biomass. The credit for production of diesel from biomass would be available only for diesel produced solely from biomass; diesel fuel created by co-processing biomass with other feedstocks [e.g., petroleum] will be eligible for the 50 cents per gallon tax credit for alternative fuels. The House bill also would increase the 30 percent alternative refueling property credit for businesses (capped at $30,000) to 50 percent (capped at $50,000) and would extend the credit through 2010.

The House bill would deny Section 199 benefits for major integrated oil companies (“major” is defined as daily worldwide production of 500,000 barrels and annual gross receipts exceeding $1 billion) and oil companies controlled by foreign governments. It would freeze current law Section 199 benefits at 6 percent for oil and natural gas production income of other taxpayers. The deduction is slated to increase to 9 percent in 2010 for other types of domestic production.

Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Chuck Grassley (R-Iowa) on September 16 announced an energy tax package that contains many of the provisions found in the House bill. Baucus and Grassley said their bill also would include AMT protection for the middle class and extensions of expiring family and business tax cuts. The bill also will contain $7 billion in tax relief for victims of disasters.

Trade negotiators sat down in Geneva, Switzerland, this week to discuss ways in which to restart talks in the Doha Round of the World Trade Organization (WTO). NCFC, along with a number of other agricultural organizations, has sent a letter to U.S. Trade Representative Susan Schwab reinforcing concerns that the primary goal of the negotiations for U.S. agriculture—increased and meaningful market access—is not being achieved in the negotiations.

With Congress beginning its last week in session before the October recess, NCFC will be monitoring and responding to several hearings next week that are expected to touch on several environmental issues of interest to agriculture.

In the House, the Committee on Oversight and Government Reform will hold a hearing on implementation of the Clean Water Act; the hearing is part of an effort to draw attention to the Clean Water Restoration Act of 2008, legislation pending in the House that would delete the word “navigable” from the Clean Water Act (CWA) provisions. This would mean that every body of water—from Lake Superior to an isolated prairie pothole— would fall under the CWA. NCFC has gone on record in strong opposition to this legislation, and will be working with the Waters Advocacy Coalition next week to make sure that our message is heard during the hearing. In addition, the House Energy & Commerce Subcommittee on Environment & Hazardous Materials will hold a hearing on reporting under CERCLA/EPCRA (aka, the Superfund Act and the Community Right to Know Act). The hearing comes as EPA is considering a final CERCLA rule in regards to animal agriculture, a rule endorsed by both NCFC and the National Milk Producers Federations (NMPF). NCFC will be working with NMPF and others to submit statements for the congressional record.

Finally, in the Senate, the Committee on Environment and Public Works will hold a hearing entitled “Bush Administration Environmental Record at the Department of Interior and the Environmental Protection Agency.” Among the issues likely to come up during the hearing is DOI’s proposed modifications to the Endangered Species Act (ESA) that will clarify the process and replace ambiguous definitions. NCFC, as part of the Pesticide Policy Coalition, supports these changes as streamlining the review process, and will be closely monitoring the hearing.

Congress Faces Busy Week Before Recess; Appropriations Likely Pushed Until Lame Duck

Congress will work feverishly next week to wrap up a number of issues before heading home to campaign ahead of the November elections. With the House passing both an energy bill and a commodity trading bill this week (see stories above), it was expected that the Senate would work on energy next week. However, it is now apparent that the bulk of floor time in both chambers next week may be reserved for the legislation proposed by Treasury Secretary Henry Paulson to address the economic crisis and stabilize Wall Street and the wider economy.

Among the issues remaining on the agenda are the FY 2009 appropriations bills, including the one funding agriculture programs. With the limited time remaining before the start of the new fiscal year on October 1, Congress will most likely pass a continuing resolution (CR) next week to fund the government until November 17th, when Congress plans to return in a lame duck session.

• September 25-26, 2008—Executive Council Meeting—Washington Court Hotel, Washington, D.C.

• October 2-3, 2008—LTA Chairs & Vice Chairs Meeting—The Meritage Resort, Napa, Calif.

• November 14-15, 2008 –NCFC Government Affairs Meeting – Scottsdale, Ariz.

• February 4-6, 2009—NCFC Annual Meeting—Westin Maui Resort, Lahaina (Maui), Hawaii

Pierre SD…South Dakotans Charles Olsen and Donald Fieber joined an elite group of South Dakota cooperative leaders when the two were inducted into the South Dakota Cooperative Hall of Fame Sept. 9 in Pierre, S.D.

“In recognition for the decades of leadership experience on electric and telephone cooperatives in eastern South Dakota, the two became the 47th and 48th inductees into the Hall of Fame which was created to provide recognition for a person contributing in especially significant ways to cooperatives.” said Brenda Forman, Executive Secretary of the South Dakota Association of Cooperatives and a member of the Hall of Fame selection committee.

Charles Olsen began his tenure on the Turner-Hutchinson Electric Cooperative board of directors in May 1985. In 1992, he was elected to represent the cooperative on the board of East River Electric Power Cooperative in Madison, S.D., and, in 1997, he was selected East River’s representative on the South Dakota Rural Electric Association board of directors.

Among Olsen’s most memorable co-op moments: introducing the Consumer Bill of Rights at the 1999 NRECA annual meeting in Anaheim, Calif., and then presenting the document to Senators Tom Daschle and Edward Kennedy.

Olsen said the best part of being a member of a cooperative is the ownership role members have. “You have a say on what goes on. You elect the directors to conduct the co-op business,” Olsen said.

In nominating Olsen for induction to the Hall of Fame, Southeastern Electric manager Brad Schardin noted Olsen’s leadership throughout the cooperative’s consolidation and merger endeavors. “By carefully listening during board discussions and clearly articulating his opinions, Charles quickly gained the respect and confidence of his fellow board members. With the wisdom of an elder statesman, Charles was the voice of reason that helped lead the cooperative down the right paths,” wrote Schardin.

In addition to his work with cooperatives, Olsen has served on church boards in Viborg and Irene, is involved in the Masonic Lodge, was an original incorporator of the S.D. Yorkshire Association and was a member of the Irene School District board of education. Additionally, he is a member of several grain, farmers, telephone and elevator cooperatives.

He and wife, Mary Lou, live in Viborg. They have three grown children, five grandchildren and three great-grandchildren.

Donald “Don” Fieber joined the Deuel Telephone Cooperative board in 1960 and continued to serve on the board and its successor, the Interstate Telecommunications Cooperative board in Clear Lake, for 45 years.

“His vision, involvement and leadership as an officer and board member provided for the enhancement and advancements of the telephone system that serve the members of the cooperative yet today,” wrote ITC general manager Jerry Heiberger in Fieber’s nomination. “Specifically, the system evolved from an aerial eight-party service in the 1960s to a buried single-party type of service that continues to provide reliable services.’

Fieber was instrumental in the consolidation of Deuel Telephone Cooperative and Brookings-Lake Telephone Cooperative in 1988. The result of the consolidation was the formation of Interstate Telecommunications Cooperative. Fieber also served 30 years on the South Dakota Association of Telecommunication Cooperatives and 9 years on the South Dakota Association of Cooperatives board.

In addition to his work with co-ops, Fieber served two years in the U.S. Army during the Korean War, is a Eucharist minister and serves on the board at Kranzburg Holy Rosary Church, served as a 4-H leader for 15 years and is a charter member of the Deuel County Lions Club. He served on the Deuel County Extension board and the Advisory board of the Clear Lake FFA chapter. He designed and originated the Goodwin Volunteer Fire Department where all seven of his sons were members and served on the Goodwin Town board for 45 years, 40 as mayor.

Fieber and his wife, Orma, have raised 11 children, have 42 grandchildren and 26 great-grandchildren.