Georgia Farm Bureau's Leadership Alert - November 24, 2010

November 24, 2010

www.gfb.org

Vol. 28 No. 47

FARM BUREAU TO HOLD 72ND ANNUAL CONVENTION ON JEKYLL ISLAND For the 47th year, Georgia Farm Bureau members will travel to Jekyll Island for the organization’s 72nd annual meeting Dec. 5-7, but the annual convention will have a new feel this year. Instead of convening at the island’s old convention center on the beach side of the island, members will gather on the marsh side of the island in Jekyll’s Historic District Convention Campus as the Jekyll Island Authority (JIA) revitalizes the island’s facilities.

“The GFB Board of Directors voted to hold our convention on Jekyll in the temporary convention facilities after considering the proposal by Jekyll officials and other possible locations for the convention,” GFB President Zippy Duvall said. “GFB has a long tradition of meeting at Jekyll, and the convention officials have assured us that the temporary facility will accommodate our event. I had the opportunity to visit the facilities in late October and was satisfied with them. It will be different from what we’ve been used to, but there will be some positives that folks will like about the temporary facilities, such as the meeting pavilions being centrally located.”

The convention kicks off at noon on Dec. 5 with registration, followed by the final round of the Young Farmer Discussion Meet at 1 p.m. The four finalists are Christy Bryan of Chattooga County, Jessica Bryant of Jackson County, Jonathan Fordham of Bleckley County and Will Godowns of Pike County, who were selected during the preliminary rounds of the competition held in July at the GFB Young Farmer Conference. The Women’s Commodity Recognition & Leadership Program will be held at 2:30 p.m. followed by a policy development committee meeting at 3:15 p.m. The last event of the day is the memorial service, vespers and awards program at 4:30 p.m.

On Dec. 6, the day will start at 7 a.m. with complimentary biscuits and beverages served at Magnolia Hall. The general session, featuring GFB President Duvall’s annual address, begins at 8:30 a.m. Keynote speakers will address topics of interest to Georgia farmers. Governor-elect Nathan Deal will speak, and A.D. Frazier, chairman of the Special Council on Tax Reform and Fairness for Georgians, will address tax reform. The county presidents/secretaries luncheon will begin at noon. Commodity conferences are scheduled for 2 and 3:30 p.m., featuring speakers who will address management and policy issues for the major commodities grown in Georgia.

“We are honored that Governor-elect Nathan Deal has agreed to be our keynote speaker, and we look forward to working with him to promote Georgia agriculture. We’re also pleased to announce that A.D. Frazier will also address our members during the Monday morning general session to discuss tax reform,” Duvall said.

Activities on Dec. 7 begin at 6:45 a.m. with the membership breakfast. Voting delegates will convene at 8:30 a.m. to discuss and approve GFB policy. Delegates will also vote on the GFB director positions that are up for re-election this year along with GFB President Zippy Duvall and GFB South Georgia Vice President Gerald Long, who serves as the organization's 1st vice president. All candidates are running unopposed for their positions.

Leadership Alert page 2 of 4 AVERAGE COST OF THANKSGIVING MEAL UP SLIGHTLY While the average cost of a traditional Thanksgiving meal rose by 56 cents, the price of feeding a gathering of 10 is still less than it was in 2008, according to Farm Bureau's annual survey of classic items found on the Thanksgiving Day dinner table.

The average price tag for a holiday meal for 10 with all the trimmings rang up at $43.47, up from $42.91 in 2009 but down by $1.14 from the 2008 average. The rise was in spite of a significantly lower average price for a 16-pound turkey, which was down by 99 cents.

“Overall, the change in the price of this year’s Thanksgiving dinner is basically in line with the modest changes that we've seen in the overall price level this year. At $4.35 per person, our traditional Thanksgiving feast is still a better deal than most fast-food value meals, plus it's a wholesome, home-cooked meal,” said American Farm Bureau economist John Anderson.

The survey involved shoppers from 34 states (including one from Georgia) collecting price data on turkey, bread stuffing, sweet potatoes, rolls with butter, peas, cranberries, a relish tray of carrots and celery, pumpkin pie with whipped cream and beverages of coffee and milk, all in quantities sufficient to serve a family of 10.

The cost of a 16-pound turkey, at $17.66 or roughly $1.10 per pound, reflects a decrease of 44 cents compared to the price from the 2009 survey. A 38-cent rise in the price of a gallon of milk and a 72-cent increase for miscellaneous ingredients (coffee, onions, eggs, sugar, flour, evaporated milk and butter) offset the decline in the price of turkey. Farm Bureau enlisted the help of more than 100 volunteer shoppers to compile the survey, which is intended as an informal gauge of price trends around the nation. The survey has been conducted yearly since 1986, and the menu has remained the same to allow for consistent price comparisons. The volunteer shoppers were asked to look for the best prices on the survey items without using coupons or taking advantage of any promotional deals.

DEADLINE TO APPLY FOR MONSANTO DONATION PROGRAM IS DEC. 31 Farmers in 25 Georgia counties have until Dec. 31 to register a community charity of their choice to possibly receive a $2,500 donation from the Monsanto Fund through its America’s Farmers Grow Communities program. Suggested charities include local 4-H or FFA chapters, community centers, fire departments, hospitals, libraries or schools. No purchase is necessary to participate.

Eligible counties are: Baker, Bleckley, Brooks, Bulloch, Burke, Calhoun, Coffee, Colquitt, Crisp, Decatur, Dooly, Early, Grady, Irwin, Jefferson, Lee, Miller, Mitchell, Screven, Seminole, Sumter, Terrell, Thomas, Wilcox and Worth.

The program is open to farmers, age 21 and over, who are actively farming a minimum of 250 acres of corn, soybeans and/or cotton or 40 acres of open field vegetables, or at least 10 acres of tomatoes, peppers and/or cucumbers grown in protected culture in an eligible county. One $2,500 winner will be drawn from each of the 25 eligible counties in Georgia.

For every farmer who applies, $1 will go to their local United Way to help charitable organizations dealing with hunger. The Monsanto Fund will announce winning farmers and their recipient organizations in February 2011. To sign up for the program, call 1-877-2673332 or visit www.growcommunities.com.

Leadership Alert page 3 of 4 GFB SUBMITS COMMENTS ON PROPOSED GIPSA RULE Georgia Farm Bureau submitted comments on a proposal by the Grain Inspection Packers & Stockyards Administration (GIPSA) that could significantly impact the livestock and poultry industries. The proposed rule issued on June 22 addresses a number of issues. In a letter to GIPSA, GFB President Zippy Duvall shared the organization’s stance on provisions in the proposed rule specifically addressed in GFB policy. Those included comments regarding sample contracts, capital investment criteria, capital investment requirements and prohibitions and arbitration.

Duvall’s letter stated that GFB supports the proposal that contractors provide sample contracts to GIPSA for publication, which would facilitate market transparency by allowing growers to know the types of contracts available to them. Duvall also asked for clarification on what constitutes a type of contract and that specific farm information be left out of published contracts. He noted that thousands of pages of contracts published on the proposed GIPSA Web site would be too overwhelming to growers to be of value to them.

While the tournament system of compensation is not specifically addressed in GFB policy, Duvall said Georgia poultry growers are concerned with the issue.

“We do not believe this rule prohibits incentive pay to growers, and we urge the USDA to specifically state that to be the case,” Duvall wrote. “A statement by the USDA is needed to eliminate the confusion and misinformation regarding this section.”

Regarding criteria for capital investments (defined as $25,000 or more), the GFB comments pointed out that the vertically integrated structure of the poultry industry - where integrators own the birds, provide feed for them and process them while growers own the facilities and provide labor to care for the birds - often results in growers taking on significant debt with poultry production being the primary way to repay it, resulting in growers having little bargaining power and being economically dependent on integrators.

Many growers believe they are manipulated into making additional upgrades to buildings or equipment without proper financial incentive to do so. Growers often feel compelled to make the additional investment for fear of losing their production contract.

Duvall also expressed concern that the natural disaster waiver in the capital investment section of the proposed rule might create opportunities for integrators to require facility upgrades that go beyond necessary repairs.

The proposed GIPSA rule includes a provision that required capital investments be accompanied by a production contract that is long enough for the grower to have the opportunity to earn back 80 percent of the investment. GFB policy does not address a specific percentage, but GFB’s membership supports the concept of longer contracts that would allow capital investments to be recouped.

The proposed rule would require growers to specify whether they agree to disputes being resolved through arbitration. GFB has policy supporting the ability of growers to decline mandatory arbitration in contracts.

The comment period ended Nov. 22. The USDA now must consider the submitted comments, make changes it deems necessary and submit the rule to the Office of Management and Budget, which must clear it before it can be finalized, a process likely to take several months. Visit http://www.gipsa.usda.gov to learn more about GIPSA.

Leadership Alert page 4 of 4 The November/December issue of the GFB News is posted online.

Visit http://www.gfb.org/news/publications and scroll down to mid-page where you’ll find a cover photo of Chrismas trees. This issue includes a preview of GFB’s annual convention, profiles of our GFB Young Farmer Achievement Contest finalists and an article discussing Monsanto’s plan in 2011 to expand the rebate program it offers on residual herbicides used to control pigweed.

DEADLINE FOR POULTRY LOSS CONTRACT ASSISTANCE IS NOV. 24 Poultry growers have until Nov. 24 to apply for the USDA’s Poultry Loss Contract Assistance Program, which was set up for Georgia poultry growers whose arrangements were terminated when Pilgrim’s Pride declared bankruptcy. Losses must have occurred between May 1, 2008 and July 1, 2010 for them to be eligible. For more information, contact the Georgia Department of Agriculture Animal Industry Division at 404-656-3671 DEADLINE FOR AQUACULTURE GRANT PROGRAM IS DEC. 1 Aquaculture producers have until Dec. 1 to apply for the USDA’s Aquaculture Grant Program. The grant program provided $102,501 to the Georgia Department of Agriculture to assist producers who sustained financial losses associated with high feed input costs during 2009. For more information, call the Georgia Department of Agriculture grants administration office at 404-463-6851.

COMMERCIAL LANDSCAPING COURSE SET Dec. 3 University of Georgia campus Griffin Set from 9 a.m. until 3 p.m. at the UGA Research and Education Garden, the class will cover site analysis and bed preparation, woody and herbaceous plant selection, fertilization, irrigation, and troubleshooting.

Participants will also learn the basics of landscape equipment selection. Commercial and private pesticide credit in category 24 will also be awarded. The program costs $40 and includes lunch. To register, visit the website http://tinyurl.com/29ux462. For more information, contact Val Schott at (770) 233-5598 or vschott@uga.edu.

GEORGIA FARM BUREAU 72nd ANNUAL MEETING Dec. 5-7 Jekyll’s Historic District Convention Campus Jekyll Island This annual event includes addresses from Governor-elect Nathan Deal and GFB President Zippy Duvall, the organization’s policy development session, commodity conferences, the final round of the Young Farmer Discussion Meet, announcement of 2010 state award winners and a trade show. For more information, contact your county Farm Bureau office.

CROP ASSISTANCE PROGRAM SIGNUP DEADLINE IS DEC. 9 The USDA is accepting applications for its Crop Assistance Program to provide financial assistance to producers of upland cotton, sweet potatoes or soybeans in Georgia counties that received a secretarial disaster designation in 2009 for losses associated with excessive rains. Contact your local FSA office for more information.

CALHOUN PERFORMANCE TESTED BULL SALE Dec. 10 NW Ga. Research & Education Center Livestock Pavilion Calhoun Sale begins at 12:30 p.m. Contacts are Ted Dyer at 706-624-1403 or tgdyer@uga.edu and Phil Worley at 706-624-1398 or nwgastn@uga.edu.

SOUTHEAST REGIONAL FRUIT AND VEGETABLE CONFERENCE Jan. 6-9, 2011 International Trade and Convention Center Savannah The North American Raspberry & Blackberry Association will hold their annual meeting in conjunction with this conference, which will include more than 85 hours of commodity-specific production training, pest management and marketing updates. For more information or to register go to http://www.gfvga.org or call 706-845-8200. Take advantage of early bird discounts by registering before Dec. 15, 2010.