IATP is proud to announce that our for-profit subsidiary, Peace Coffee, was among the first Minnesota businesses to file as a public benefit corporation (PBC). This is the state’s newest form of business incorporation for for-profit and socially minded businesses.
These filings took place earlier this month on the last day of Minnesota Secretary of State Mark Ritchie’s tenure in office. Prior to his election to state office, Mark founded the Institute for Agriculture and Trade Policy in 1986, and ten years later, under his leadership, IATP founded Peace Coffee as a way to demonstrate that the policies we advocate for internationally can support fair trade businesses that provide fair prices to growers, benefit to the environment and an excellent product for consumers.
Businesses incorporating as a PBC pledge to pursue public benefits among their primary objectives. The new law (Minnesota Statutes 304A) allows for more flexible uses for profits than only dividends for shareholders. Minnesota joins at least 26 other states that provide businesses the option to file as a PBC.
Minnesota PBCs will be required to submit a public annual report that details how they met their public benefit to the Office of the Secretary of State. The public benefit of each corporation is self-defined by the corporation itself and is proclaimed in the articles of incorporation so that investors and the public know the public benefit mission of the business.
We were pleasantly surprised yesterday to learn that the European Commission has taken major steps towards respecting the rights of citizens to see what is being negotiated in the Transatlantic Trade and Investment Partnership (TTIP). It published the EU negotiating texts for eight chapters of the agreement, including Sanitary and Phytosanitary Standards (SPS – on food safety and animal welfare), Technical Barriers to Trade (which could deal with such issues as food labeling), as well as chapters on state-owned enterprises, subsidies and government to government dispute resolution. The Commission committed to releasing draft proposed texts for 16 more TTIP chapters, as well as accompanying fact sheets and position papers related to each chapter. This is a big deal. It means that civil society groups and legislators can go beyond parsing proponent claims about TTIP to see exactly what’s on the table in TTIP, at least from a European perspective.
The European Union’s Ombudsman, Emily O’Reilly, issued her recommendations to the Commission yesterday for transparency measures to govern the negotiating of EC trade and investment agreements. Ms. O’Reilly said that of the EU TTIP negotiating texts she reviewed, only those concerning market access tariffs and quotas contained commercially sensitive information that justified an EC decision not to release the proposed market access chapter. She recommended that the Commission require the U.S. to justify why each and every of the consolidated EU-U.S. draft negotiating texts should not be made public.
One of the big sticking points in the TTIP talks has been the EU’s prohibition on imports of beef treated with growth hormones. EU officials continue to insist the issue is off the table, but U.S. officials keep pushing it right back on. Just this week, U.S. Secretary of Agriculture Tom Vilsack told reporters at Politico that EU restrictions on hormone beef (and GMOs) were problem areas in the trade talks. “We should be given an equal opportunity to make the case [for U.S. farm products],” Vilsack said. “It may very well be that European consumers decide not to buy product from the United States, but they ought to be given the choice.”
Well, in fact they are given the choice, at least in the case of hormones. According to a new report by Vilsack’s own Department of Agriculture, U.S. sales to Europe of beef raised without hormones have increased substantially over the last few years. It’s an interesting story of a trade dispute spurring new, and apparently profitable, changes in production.
The EU has banned the use of growth-promoting hormones in beef since 1989 over concerns about the safety for human health. The U.S. and Canada won a WTO challenge to that decision at the WTO, winning the right to impose retaliatory tariffs on EU farm goods. In the meantime, USDA’s Agricultural Marketing Service began a Non-Hormone Treated Cattle Program, which certifies U.S. beef for export to the EU.
IATP’s commitment to take on the big issues and important fights was what first drew me to the organization many years ago. Now, as IATP’s president, I’m honored to continue that commitment. And in 2015, we are taking on big agribusiness and fighting for the kind of food and farm systems we want—now and for our children and grandchildren. 2015 is a pivotal year for many of the issues we’ve been working on for nearly 30 years, and we need your support.
In 2015, IATP will ramp up its work with allies to oppose two of the largest free trade agreements in history, TTIP and TPP, that are being negotiated in secret and Fast Track, which are projected to come to Congress in 2015. We are also working closely with European partners opposing these trade deals that put corporate interests above those of consumers, farmers, the environment and democracy.
The amazingly terrible new spending agreement reached by the House and Senate this week illustrates the heavy price we all pay for a government increasingly influenced by big corporate and financial industry donors.
This backroom deal has been marketed by some in Congress as a “monumental achievement” demonstrating how Washington can get things done. Instead, it’s really a stocking full of early Christmas gifts for corporate interests at the expense of the rest of us. Here are just a few examples relevant to food and agriculture issues:
The efforts by millions of citizens across the country to label food containing GMOs must have touched a nerve. The likes of DuPont, American Farm Bureau, Coca Cola and General Mills are lobbying hard to get a new bill passed that would prohibit state-based GMO labeling laws—also known as the DARK (Deny Americans the Right to Know) Act.
The Institute for Agriculture and Trade Policy invites you to join with the likes of the National Farmers Union, Organic Consumers Association and Right-to-Know Minnesota to tell Congress to reject H.R. 4432, The Safe and Accurate Food Labeling Act of 2014 and instead to support mandatory GMO labeling laws.
Don’t let agribusiness and big food keep us in the dark about what is in our food. Take action here!
New research shows that production from organic agriculture shapes up better against input-heavy conventional agriculture than previously thought; meanwhile, evidence for the benefits of agroecology continues to accumulate
A new study was released today examining that evergreen chestnut (to mix metaphors): does “organic agriculture” have lower yields than “conventional agriculture”? Published in the prestigious scientific journal Proceedings of the Royal Society of London by researchers at the University of California, Berkeley, the study found that some previous estimates comparing organic agriculture’s productivity were too low. What’s more, they found that there was a bias in the data in favor of conventional agriculture, which means even their updated estimate may still overestimate in favor of the current resource-intensive, high-input systems that dominate much of agriculture today.
The 20th session of the Conference of the Parties (COP), a body under the United Nations Framework Convention on Climate Change (UNFCCC), started on Monday, at the General Army Headquarters in Lima, Peru. With almost 30 tents set up across the premises, and thousands of representatives from governments and observer organizations running between plenaries, contact groups, and side events, the climate change negotiations are in full throttle.
The climate change negotiations in Peru are critical, because they will establish the foundation of a proposed new climate agreement expected to be finalized in Paris at the end of 2015. The convention’s primary objective has historically been on reducing greenhouse gas emissions. While vitally important, this approach has largely ignored the impact climate change has already taken on vulnerable regions around the world, particularly agricultural communities, that urgently need resources to adapt to an altered climate. Such communities also need funds to deal with loss and damage caused by severe weather events that have destroyed crops, increased salinization of soils, and diminished agricultural production.
For the final agreement in Paris, negotiators will consider issues like reducing emissions (mitigation), adaptation, finance, transparency of actions and support, capacity-building and transfer of technology.
But where will agriculture and land-use more broadly stand in these two weeks of negotiations? These issues fall within different tracks of the global climate talks, and are addressed in a variety of ways.
The Story of Drought has opened a new chapter in California this week, with a welcomed pouring rain storm: the most rain to fall in Los Angeles in two years. As California enters its fourth year of a drought, the immediate concern of the state’s water managers is that the rains will send the wrong signal to the population. But as crucial as water conservation is, the signal we need today is one that would begin to address the social, economic and political drivers that cause climate change.
Droughts are very slow weather disasters that can go unnoticed even as rain falls and ground water supplies are drying up. We keep saying that California and other western states are entering into the fourth year of a drought, but the real truth is, California and many areas of the west have been living for too long on borrowed water from aquifers and mountain snowpack that will not be renewed. The modern history of water in California going back to the destruction of the Paiute irrigation system and the Owen’s Valley water diversion are part of a pattern of mismanagement and abuse that is still reverberating today.
Like droughts, many of the underlying causes of climate change are not perceived as threats when first encountered. Three interconnected drivers that are major contributors to climate change are global trade, industrial agriculture and the petroleum production and consumption.
During the fight to pass and implement the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act of 2010, a favorite Wall Street lobbyist tactic was to organize small and large non-financial business owners to talk with members of Congress about the “unintended consequences” for Main Street of regulating Wall Street. Wall Street didn’t want to be seen as directly lobbying for continuing the regulatory exemptions that lead to the big bank bankruptcies and multi-billion dollar bailouts of 2007–2009.
Instead the Chamber of Commerce, International Swaps and Derivatives Association and other lobby groups’ strategy used “Main Street” clients to promote the idea that global banks such as Goldman Sachs and J.P. Morgan should operate under many of the same rules as small businesses under Dodd-Frank. In sum, they argued, it is in the interest of Main Street business to not reform Wall Street “too much.”
For example, Dodd-Frank exempts municipal electricity and gas companies from having to put money down (margin collateral) to trade to manage their price risks in the commodity derivatives market. (Derivatives are financial contracts that manage the price risk of an underlying asset, such as wheat, oil or a mortgage interest rate.) Municipal companies must provide service to all, and the cost of posting margin collateral for each trade puts them in a competitive disadvantage with electricity and gas companies that can deny service to the poor. Through their lobbying associations, Wall Street banks argued that they are essential buyers and sellers of such derivatives contracts, and sought to benefit from this margin collateral and other Dodd-Frank exemptions for derivatives trading by commercial users of commodities.