May 22, 2012

Congressman Smith: inaccurate information led to BPI plant closings (AUDIO)

Congressman Adrian Smith regrets a negative label seems to have stuck to a beef product, crippling sales and forcing the closing of three plants.

BPI has been unable to shake the tag “pink slime” from the product it calls “lean, finely textured beef” that has been produced under federal approval since 1974. The company, located in South Dakota, has announced it will close factories in Amarillo, Texas; Garden City, Kansas; and Waterloo, Iowa. A plant in South Sioux City, Nebraska will remain open at reduced capacity. The move will leave 650 people without jobs.

Smith says the loss of those jobs could have been avoided with accurate information about the product.

“So there was a deliberate effort, really, to describe an industry in a way that was inaccurate,” Smith tells Nebraska Radio Network. “That’s what’s unfortunate, especially when it takes health-care away from hard-working Americans.”

The uproar crippled BPI sales. Efforts to turn the tide have proven ineffective.

The company blames the loss in sales which led to the decision to close plants on unfounded attacks on a product that has been used as a filler for years. BPI produces the product by heating bits of beef and treating them with small amounts of ammonia to kill bacteria. It meets federal food safety standards.

Critics used social media to spread concern about the product, calling it “pink slime”. The label became a byword among agricultural groups which worked hard to overcome the tag and assure the public the product was safe. Nothing seemed to work. An online petition seeking to end its use in schools attracted hundreds of thousands of supporters.

Smith isn’t as critical of how the USDA reacted to the controversy as some, though he says he would have liked to have seen a more aggressive response by the Department of Agriculture.

Smith says it has yet to be seen what effect, ultimately, the controversy will have on BPI.

“It could very well cause some permanent damage. I mean, time will tell,” Smith says. “I do have hope, though, that consumers will say, hey, we want the affordable, safe alternatives that technologically are available. Let’s continue to engage in the marketplace and create a demand that will bring back some of these plants.”

BPI plans to close the plants on May 25th.

AUDIO: Brent Martin interviews Congressman Adrian Smith on BPI plant closings. [3:33]

Cong. Smith takes input from Nebraskans on building new Farm Bill

Cong. Adrian Smith

The House and Senate versions of the Farm Bill will look much different, according to Nebraska Congressman Adrian Smith.

During a recent public meeting near Crofton, Smith says farmers told him the Senate version would cover shallow losses under crop insurance, but they want the House to include catastrophic coverage.

Smith says that will only happen with the current budget problems if farmers pay higher premiums.

“I hear from producers across the 3rd District of Nebraska who want to go more toward that deep, deep loss,” Smith says. “That’s a principal of risk management in general where you really buy insurance for the more catastrophic events rather than some of the other dips that can take place.”

Farmers told Smith they support the Senate eliminating direct payments and target prices, however that was heavily criticized by House Ag Committee Chairman Frank Lucas. Smith says those programs will be tough to defend.

“I don’t think he will succeed in restoring direct payments,” Smith says. “Practically every meeting I’ve had, which is several across rural Nebraska in the 3rd District, they tell me that direct payments are unnecessary, in fact sometimes are even counterproductive. I don’t see that part of farm policy coming back.”

Smith says while both chambers would like to pass a Farm Bill by fall, a short-term extension is possible until after the November election.

By Jerry Oster, WNAX, Yankton

Proposal to keep college student loan rates from doubling fails (AUDIO)

It seems both sides agree on the goal, but Republicans and Democrats in the United States Senate differ greatly on how to reach it.

A proposal to keep college student loan interest rates from doubling has failed in the Senate, as Republicans prevent it from getting the 60 votes needed.

Sen. Mike Johanns voted against the proposal. Johanns, a Republican, complained the solution proposed by Democrats will hurt the economy by increasing the Social Security and Medicare payroll tax on high-earning stock holders and privately owned corporations. Johanns, in a Senate floor speech, told colleagues no one truly believed the proposal would win approval.

“It’s time to look for practical solutions that can actually pass the Senate and help the American people,” Johanns stated. “Americans are getting sick and tired of election-year voting where we face legislation that we all know is designed to fail with the singular focus of generating good campaign talking points.”

Johanns said increasing the payroll tax would harm job creation, adding that job creation is more important than lowering the student loan interest rate.

“Young Americans would have greater prospects for the future in an economy that generated jobs and is growing income,” according to Johanns.

The interest rate on Stafford student loans will double, jumping from 3.4% to 6.8% if Congress doesn’t act by July 1st. Current Senate rules require 60 votes to advance debate.

Republicans have proposed paying for the proposal by doing away with a preventive health fund created in the 2010 health care overhaul.

“There’s been a lot of finger-pointing on this issue, but in reality everybody agrees interest rates on the Stafford loans should not double when the economy is struggling,” Johanns said. “The only disagreement is over how to pay for the relief.”

The issue has become an issue on the campaign trail. President Obama has harshly criticized Republicans for blocking efforts to keep the student loan rate from doubling.

AUDIO: Sen. Mike Johanns addresses the Senate during the student loan debate. [7 min.]

Cong. Smith: Military may be subject to spending cuts

Cong. Adrian Smith

If Congress can’t reach an agreement on spending soon, an automatic process called “sequestration” will start on January first.

It’s a holdover from the failed “supercommittee” process of last winter. That bi-partisan group couldn’t agree on cuts needed to reduce the federal deficit.

Nebraska Congressman Adrian Smith says at least the tone of the debate has changed — from how much to spend to how much to cut.

“We’re working and doing the right thing to make sure cuts are in the right place,” Smith says. “There is some bipartisan concern that some of these changes would undermine the security of our country with the military. We can always look for a better way, a more efficient way of spending dollars, even in the military.”

Smith says he doesn’t agree that defense cuts should be off the table completely.

“I don’t want to be that arbitrary about it,” Smith says. “We need to be very careful in how we move forward. There is bipartisan concern that some of these cuts would undermine the security of our country, and that’s what I don’t want to do, but at the same time, I think we need to look for ways to prevent spending hundreds of dollars on hammers.”

The other part of the spending equation is the so-called Bush tax cuts, which will expire at the end of the year without action. Smith says it would be a big financial shock if they are not extended, sparking the largest tax increase in American history.

He says we need to take a look at the “economic consequences” of such a move.

By Jerry Oster, WNAX, Yankton

Head of DHHS hopes state is ready to look forward in child welfare services (AUDIO)

Nebraska’s child welfare system is undergoing change and the man in charge hopes that means the state is ready to look forward.

State lawmakers focused on child welfare during the legislative session, passing a series of bills to fix problems in what many called a broken system. The legislature followed up criticism leveled against the system by a state audit and two separate legislative committees. Some of the criticism was harsh.

Health and Human Services CEO Kerry Winterer took the brunt of the criticism. Winterer says the department is ready to get past that and incorporate changes approved by the legislature.

“I think the criticism in terms of where we have been has very much fallen off and I think most people are focused on where do we go from here and the more positive things that we can be looking at,” Winterer tells Nebraska Radio Network in an interview.

Winterer says the legislation approved this past session will incorporate more segments of government in the system and broaden the effort to make improvements. Case management has returned to the state, with one exception. Caseloads have been reduced in the Omaha and Lincoln areas. Work remains in rural Nebraska. Winterer says DHHS has plans in place to make comparable caseload reductions in outstate Nebraska.

One piece of legislation will help DHHS fulfill another mandate approved by the legislature. The legislature, in LB 949, requires the department to develop a strategic plan for improvement; a plan that would include goals, benchmarks and progress reports. Winterer says the Children’s Commission, created by LB 821, will aid DHHS in developing that strategic plan. The governor’s office has begun seeking applications for the commission.

Not every aspect of the experiment in privatization has been brushed away. Nebraska Families Collaborative continues to deliver child welfare services in the Omaha area as a pilot program. Winterer says NFC should provide an example of how privatization can work and he adds that what might work in Omaha, might not work in the rural parts of the state.

Other bills approved by the legislature increase foster care payments, require DHHS to apply for a federal foster care demonstration project, create an Inspector General for child welfare, and changes provisions for managing child welfare cases.

AUDIO: Brent Martin reports [:45]

AUDIO: Brent Martin interviews DHHS CEO Kerry Winterer [9:35]