MONEY

5 top issues at the Iowa Ag Summit

Donnelle Eller, and Christopher Doering
DesMoines
Corn field

Bruce Rastetter, the man behind the Iowa Agriculture Summit, is determined not to give away too much about the farm issues he will press potential presidential candidates to discuss Saturday in Des Moines.

Undoubtedly, Rastetter will pepper the nation's top Republican contenders about their support for ethanol and biodiesel. Biofuels are a political hot potato that either cuts our need for foreign oil and creates rural jobs or is unnecessary because of higher domestic production, depending on which expert you talk with.

But there's a host of other issues the presidential aspirants must prepare for: free trade, immigration, conservation, biotechnology and food labeling, government subsidies, wind and solar power, and livestock production and animal welfare, Rastetter said.

"It's a great opportunity to have a conversation with potential candidates ... and get them on record about where they stand on issues in a substantive way," he said.

Here's a closer look at five top ag issues:

1. Immigration

The issue: Farm organizations say an overhaul is needed to protect undocumented agricultural workers, but it should come from Congress, not the White House. President Barack Obama tried to use his executive power to protect millions of undocumented immigrants from deportation last November, but it provided minimal relief to agriculture and has been overturned by a Texas judge. During the last Congress, the Senate passed a new immigration reform bill, but the Republican-led House failed to act.

The impact: The agricultural community is heavily dependent on immigrant workers, especially livestock, fruit and vegetable producers. As many as 1.75 million undocumented workers are in agriculture. Farm groups argue that a failure to reform the labor policy would drive more production outside the United States, putting at risk the nation's abundant and safe food supply.

What they're saying: "There are things the administration could do to make things better," said Craig Regelbrugge of the Agriculture Coalition for Immigration Reform, who acknowledged it's a challenging environment for reform. "While it may bring relief to some individuals, they don't get to the heart of the ag labor crisis. In our world, all eyes are on Congress to legislate."

Lori Chesser, a Des Moines immigration attorney, said federal law provides visas for seasonal farm workers, a move that helps vegetable and fruit growers. But that does little to help farmers in Iowa and elsewhere who need year-round workers to help raise livestock. "They don't seem to understand farming. ... Cows, pigs, chickens, they pretty much need care all year-round."

2. Water quality

The issue: Despite assurances otherwise from the EPA, agricultural groups contend the federal Waters of the U.S. rule would expand the "navigable waters" protected by the Clean Water Act to include not only rivers and lakes but also ditches, stream beds and self-made ponds that carry water only when it rains. Farmers say they would face higher costs for environmental assessments and would need to apply for permits to allow them to till soil, apply fertilizer or engage in some conservation practices.

What they're saying: Sen. John Thune, R-S.D., said there's strong, bipartisan opposition to the rule. "Any federal regulation that could make farmers and ranchers legally liable for fines and penalties for conducting normal farming practices would be an overstep of authority and an infringement on their rights."

The issue: Iowa and other Midwestern states have been under pressure to reduce the nitrogen and phosphorous that enter waterways and contribute to the dead zone in the Gulf of Mexico. The Des Moines Water Works says Iowa agriculture has done too little to reduce nutrients from waterways such as the Raccoon and Des Moines rivers, the source of drinking water for 500,000 residents. The utility has been using expensive nitrate-removal equipment to make water safe for drinking.

The utility is expected to formally agree next week to sue drainage districts in three northwest Iowa counties for contributing to high nitrate levels. A successful lawsuit could have broad regulatory ramifications for farmers across Iowa and the nation.

What they're saying: "People feel work isn't happening fast enough, but it took centuries to get to this point. You can't turn things around overnight," said Ron Birkenholz, a spokesman for the Iowa Pork Producers Association. "We're focused on improving water quality in the state. ... We want clean water just as badly as everyone else does."

Birkenholz said farmers invested $13 million last year to match $9.5 million in state money to encourage conservation practices such as cover crops, bioreactors and wetlands. "We don't need more regulations," he said. "Farmers know and understand what's needed. ... Just give us some time, and we'll do what's right."

3. International trade

The issue: Republicans and the White House have pledged to work together, and one indication of that sincerity could be trade. While much of the attention in recent months has fallen on Cuba, where Obama has proposed to normalize trade relations, a bigger boon to agriculture could come through the Trade Promotion Authority. The so-called fast-track authority, which expired in 2007, would allow Obama to negotiate trade deals, and submit them to Congress for a vote.

The impact: Obama didn't formally ask Congress to renew TPA until mid-2013, when the United States was making progress on deals with Europe and Asia that would revise trade rules covering 70 percent of the world's gross domestic product. Corn, soybean, meat and other agricultural producers could be among the beneficiaries of the trade deals.

Expanded free trade could be one of the most critical farm issues for Iowa and other states in the years ahead, and the Trans-Pacific Partnership is key, said Dermot Hayes, an economist at Iowa State University. Iowa had $13 billion in exports in 2013. The federal government says Iowa already exports an average of about $8 billion annually to countries such as Japan, Chile and Australia that are participating in the TPP talks. Trade would only grow.

What they're saying: "The potential for agricultural exports is considerable," said U.S. Agriculture Secretary Tom Vilsack. "(TPA) will help ensure that America's farmers, ranchers and food processors receive the greatest benefit from these negotiations."

Hayes said: "Asian countries typically let in our feed grains without much restrictions, but have barriers to value-added products like dairy, beef, pork and eggs. Free trade would get rid of that bias. ... Once existing countries sign it, others are in line to jump aboard, including South Korea, Taiwan and China. And that's the really big one, China."

4. Biotechnology & labeling

The issue: If more states require labeling of foods made with genetically modified ingredients, Congress could be pressured to establish a uniform, nationwide law regulating the controversial technology found in much of the U.S. food supply.

The proposals: Sen. Barbara Boxer, D-Calif., and Rep. Peter DeFazio D-Ore., reintroduced legislation in February that would impose a nationwide label on foods made with genetically modified organisms. Food and agribusiness companies support a bill from Rep. Mike Pompeo, R-Kan., that would ban mandatory GMO food labeling by states and let food companies decide whether they want to label their packages.

The impact: In the United States, up to 80 percent of packaged foods contain GMO ingredients, according to the Grocery Manufacturers Association. Greg Jaffe, director of the Project on Biotechnology for the Center for Science in the Public Interest, said a key point in the debate could come in Vermont, where opponents have sued to block the nation's first labeling law.

What they're saying: "Something could be passed into law on this issue in the 114th Congress, and part of that will be sparked by what happens in the federal case in Vermont," Jaffe said. "Both sides see benefits to a federal solution, but obviously they have different views on what that final solution could be."

Wallace Huffman, an Iowa State University economist who studies technology issues, said GMO labeling has failed in states where consumers have been brought "face-to-face with the costs" to track and monitor ingredients so products are accurately labeled. "People want to see food labels so they know what's in their food," Huffman said. "But people forget that it's costly and they would end up bearing most or all of the cost."

5. Ethanol mandate

The issue: Lawmakers and oil trade groups led by the American Petroleum Institute are opposed to the Renewable Fuel Standard, a mandate that requires a certain amount of the largely corn-based fuel to be blended into the gasoline supply. They are pushing ahead to change or repeal the 8-year-old law popular with farmers and rural America. But change appears difficult. Many newly elected Republicans support the existing measure.

The impact: Iowa and the nation need a long-term energy policy that includes guidance on renewable fuels, said Delayne Johnson, CEO of Quad County Corn Processors in Galva. It's necessary for the adoption and advancement of the next generation of renewable fuel technology, he said.

Quad County Corn is one of three cellulosic ethanol plants in Iowa, using fiber inside the corn kernel to make ethanol. Two other ethanol companies — Poet and DuPont — are using crop residue such as corn cobs, stalks and leaves to make ethanol. The Poet cellulosic plant is open in Emmetsburg, and the DuPont plant is expected to open this year in Nevada.

That means jobs in the Midwest, not the Middle East, Johnson said.

What they're saying: "We don't want to import fuel," Johnson said. "We want to produce it in America, where it's consumed."

"They still have to get the legislation passed and signed into law by the president, and I just don't see that happening," said Tom Buis, chief executive with Growth Energy, an ethanol trade group. "It's going to be an uphill climb."

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About the Iowa Agriculture Summit

MODERATOR: Bruce Rastetter, an agribusiness leader and GOP power player, will do a 20-minute question-and-answer session with each potential presidential candidate who takes the stage.

DETAILS: Doors open Saturday at 7:30 a.m. at the Elwell Family Food Center at the Iowa State Fairgrounds in Des Moines. It will run until about 3:30 p.m.

SPEAKERS' LIST: Potential presidential candidates who will speak are Jeb Bush, Chris Christie, Ted Cruz, Jim Gilmore, Lindsey Graham, Mike Huckabee, George Pataki, Rick Perry, Marco Rubio, Rick Santorum, Donald Trump and Scott Walker. All are Republicans. All the Democratic contenders declined the invitation. Prominent Iowa political and agriculture leaders also will speak.

TICKETS: All of the tickets, which were free, have been reserved. A crowd of about 900 is expected.

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Follow news from Ag Summit

Follow live coverage Saturday from the Iowa Ag Summit at DesMoinesRegister.com/AgSummitLive. The Register will also cover counter events held by a coalition including Iowa Citizens for Community Improvement.

LIVE SPEECHES: Watch livestream video of the Ag Summit, including all the speeches, and what people are saying on Twitter.

ON TWITTER: The Register political team includes Kathie Obradovich (@KObradovich), Jennifer Jacobs (@JenniferJJacobs), Jason Noble (@JasonNobleDMR), William Petroski (@WilliamPetroski), Brianne Pfannenstiel (@BrianneDMR), Josh Hafner (@JoshHafner), Annah Backstrom (@AnnahBackstrom) and Carol Hunter (@CarolHunter). Agriculture and energy reporter Donnelle Eller (@DonnelleE) also will provide coverage. They will tweet news about speeches, the atmosphere and everything in between, with the hashtag #AgSummit. Also follow photographers Charlie Litchfield (@CharlieLitch), Kelsey Kremer (@Kelsey_Kremer) and Michael Zamora (@mzamoraphoto) to see photos and other updates from the event.

DIGITAL AND PRINT: See photos, video clips of the speeches, news updates and analysis of everything said. Or pick up the Des Moines Sunday Register for comprehensive news coverage and analysis.

Find previews and full coverage at DesMoinesRegister.com/IowaAgSummit.