Georgia Farm Bureau's Leadership Alert - October 23, 2013

October 23, 2013

www.gfb.org

Vol. 31 No. 43

MARKET ACCESS LOAN REDUCTION DRAWS QUESTIONS FROM CONGRESS Georgia members of both houses of Congress have sent inquiries to Agriculture Secretary Tom Vilsack regarding a Sept. 30 USDA announcement that Marketing Access Loans (MALs) would be reduced by 5.1 percent under sequestration rules.

The adjustments were to go into effect on Oct. 1 and applied to loans issued by the USDA’s Farm Service Agency (FSA), marketing associations and loan servicing agents.

Georgia Rep. Sanford Bishop (D-2nd District) wrote to Vilsack on Oct. 15 asking that the USDA refrain from imposing the MAL loan reductions. A group of 14 senators, including Georgia’s Saxby Chambliss and Johnny Isakson, wrote to Vilsack on Oct. 17 asking for an explanation on multiple aspects of the loan reduction decision.

The impact of the loan rate reduction was emphasized in both letters. The reduction would result in a corresponding reduction of commodity prices farmers receive for their crops. Bishop pointed out that the price per ton received by peanut producers could be reduced by $18.11 and cotton producers could lose $13 per bale as a result.

“While I understand there is a requirement to reduce outlays through sequestration, applying sequestration to market assistance loans is unlikely to achieve any significant savings since loans are repaid with principal and interest. The impact of these actions will have a severe effect on the peanut and cotton industries in my district and nationwide, with a negligible contribution to budget savings,” Bishop wrote. Bishop’s letter can be seen at http://tinyurl.com/l7dd7x7.

The timing of the reductions means less operating capital for farmers during harvest, and the timing of the announcement - one day prior to the reductions taking effect - left farmers no time to put alternate financial plans into place. The senators pointed out that some producers would have to seek loans from other more costly sources to maintain anticipated cash flow and many would suffer unrecoverable income losses working under “option-to-purchase” contracts. They also noted that farmers would not be the only stakeholders affected.

“Growers, marketing cooperatives, private merchandising firms and agribusinesses were unable to make any alternative plans to mitigate the financial hardship imposed by the decisions,” the senators wrote. The senators’ letter can be seen at http://tinyurl.com/l75xxle.

The senators also asked for explanations on why sequestration was not applied to 2012 or early 2013 MALS, why the sequestration cuts were not announced earlier, why software adjustments were not started earlier to minimize loan processing delays and whether the USDA took the economic impact into consideration when deciding to sequester MAL funds.

Leadership Alert page 2 of 5 SHUTDOWN OVER BUT EFFECTS LINGER FOR SOME PROGRAMS The U.S. House and Senate each passed a continuing resolution to reopen and fund the federal government through Jan. 15, 2014.

The Senate passed the bill by an 81-18 vote on Oct. 16, and the House passed it 285-144 the same day. Both of Georgia’s senators voted for it. The nine Republican members of the Georgia House delegation voted against it, while the five Georgia Democratic representatives voted for it.

President Obama signed it into law on Oct. 17.

The bill set up a number of measures moving forward, including the formation a budget resolution conference committee. Georgia Rep. Tom Price (R-6th District) is one of the House Republican conferees. The committee is scheduled to produce a conference report by Dec. 13.

The bill facilitated the reopening of the federal government. The USDA website, which was disabled during the shutdown, was reactivated, though some of the department’s functions were delayed or canceled.

According to a USDA press release, the National Agricultural Statistics Service (NASS) and the World Agricultural Outlook Board (WAOB) canceled or postponed publication of some statistical reports that were affected by the shutdown. Because NASS was unable to collect data and perform analysis during the shutdown, the NASS’ Crop Production and Cotton Ginnings reports and the WAOB’s World Agricultural Supply and Demand Estimates (WASDE) scheduled to be released on Oct. 11 were canceled. The next scheduled release for those reports is Nov. 8. The NASS Crop Progress Reports scheduled for Oct. 7 and 15 were also canceled, while Oct. 18 reports on Cattle on Feed and Peanut Prices were postponed.

The USDA began distributing Conservation Reserve Program rental payments, and distribution of direct payments and Average Crop Revenue Election (ACRE) are expected to resume on Oct. 24. Payments in these programs were scheduled to be issued earlier but delayed by the shutdown.

SUPREME COURT TO REVIEW EPA GREENHOUSE GAS RULES The U.S. Supreme Court has agreed to review cases prompted by the EPA’s 2009 endangerment finding regarding greenhouse gases (GHGs).

The endangerment finding allowed GHGs carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride to be classified as pollutants under the Clean Air Act, enabling the EPA to move forward with regulating emissions from cars and light trucks. The agency also used the endangerment finding to justify regulation of stationary emitters of GHGs, including power plants and potentially some farms.

The EPA’s GHG rules were upheld in June 2012 by the U.S. Court of Appeals for the District of Columbia Circuit.

The American Farm Bureau Federation is one of numerous plaintiffs on the issue. While the cases against the EPA centered on a variety of legal issues, the Supreme Court agreed to consider “whether the EPA permissibly determined that its regulation of greenhouse gas emissions from new motor vehicles triggered permitting requirements under the Clean Air Act for stationary sources that emit greenhouse gases.”

AFBF opposes the regulation of GHGs.

Leadership Alert page 3 of 5 NEW PACKING DATE RULES IN PLACE FOR VIDALIA ONIONS In a change from past practice, Vidalia onion growers will be operating under firm packing date rules beginning in 2014.

The new rule establishes 12:01 a.m. on the Monday of the last full week of April as the opening of the Vidalia onion marketing season. No onions sold under Federal Marketing Order 955 may be packed or sold before that date, which in 2014 falls on April 21. “Baby” Vidalia onions with greens attached may be shipped earlier in the season.

According to the Georgia Department of Agriculture, the move to a firm date was prompted by quality concerns. In the past, growers could pack and ship their onions prior to the official marketing season opening date with Federal-State Inspection certificates stating the onions met established grade requirements under Positive Lot Identification as approved by the FederalState Inspection Service.

The packing date was put in place to help ensure retailers and consumers receive Vidalia onions with the characteristics that made the onion famous.

“Our growers are committed to assuring the consumers that when the famous Vidalia sweet onion is available, they are getting the very best,” says Bob Stafford, director of the Vidalia Onion Business Council (VOBC).

The VOBC met over the summer and decided to make the change, which was approved by Georgia Agriculture Commissioner Gary Black.

FARMERS, MOTORISTS URGED TO DRIVE SAFELY DURING HARVEST Nine deaths resulted from 429 crashes involving farm equipment in 2012 and 185 people reported injuries, according to the Governor’s Office of Highway Safety (GOHS). In an effort to reduce accidents involving farm equipment on rural roads, the GOHS held a press conference Oct. 16 at Sunbelt Expo to publicize the need for safety on Georgia’s rural roads.

“Accidents involving farm equipment is a serious problem, and we’re serious about it. That’s why two years ago we joined forces with the Georgia Department of Agriculture and Georgia Farm Bureau to educate farmers and motorists to be careful on rural roads,” said GOHS Director Harris Blackwood. “We’re going to work until we get the number to zero. That’s the only acceptable number.”

Farmers were urged to make sure their equipment is marked with the nationally designated slow-moving vehicle sign – a red reflective triangleshaped reflector - that warns motorists that the equipment is likely to travel no faster than 25 mph.

“We’re asking ag producers to have slow-moving vehicle signs on all their vehicles and to make sure they’re clean,” Georgia Commissioner of Agriculture Gary Black said. “Many producers put flashing amber lights on the back of their equipment to also warn motorists to slow down.”

Motorists were urged not to text while driving and to drive patiently when coming upon farm equipment on the road.

“One injury affects many people in a community. Please listen to our plea to drive carefully and let’s have a safe harvest season,” GFB President Zippy Duvall said. Duvall also suggested that, when possible, farmers have a family member or farm worker drive a truck with flashing lights behind farm equipment being driven on roads.

Leadership Alert page 4 of 5 AGCHAT, AFBF PARTNER TO HELP BLIZZARD VICTIMS In an effort to bring emergency relief to ranchers affected by the Winter Storm Atlas, AgChat Foundation is partnering in a fundraising effort with multiple organizations, including American Farm Bureau Federation. Contributions are 100 percent tax deductible and will be distributed to rancher-led organizations in South Dakota, Nebraska and Wyoming. Funds will be equally distributed between the states. Contributions may be made online at http://tinyurl.com/kxarakd.

Additional organizations are encouraged to join these efforts. For more information contact Executive Director Emily Zweber at 651-341-0430 or visit http://www.agchat.org.

GA. AGRIBUSINESS COUNCIL TAKING SCHOLARSHIP APPLICATIONS The Georgia Agribusiness Council (GAC) for the William C. “Bill” Baisley “Sumpin' Big” Scholarships. Two Baisley Scholarships will be awarded to qualified college students or incoming college students who are majoring in an agriculture-related subject. At any accredited college or university in Georgia. Scholarship recipients will be selected by agricultural interest, leadership experience and financial need. Winners will be announced in November and publicly recognized at GAC's Harvest Celebration on Nov. 22. Applications must be postmarked by Oct. 25. To download the application, visit http://www.ga-agribusiness.org/.

PUMPKINPALOOZA Weekends through Oct. 27 Warbington Farms Cumming This annual family-fun event offers hay rides, pony rides, jumpy houses, a giant inflatable slide and obstacle course, a corn pit, petting zoo and more. Warbington Farms is open to the public 11 a.m. – 6 p.m. Fridays and Saturdays and 1 p.m. - 6 p.m. on Sundays. Weekend admission is $8 for children ages 12 and under and $5 for ages 13 and up. For more information call 770-3802920 or visit http://www.warbingtonfarms.com GFB TAKING HAY CONTEST ENTRIES Georgia Farm Bureau members who grow Bermuda grass hay are encouraged to enter the GFB 2013 Quality Hay Contest. Hay entered in the contest will be tested at the University of Georgia testing lab using the Relative Forage Quality (RFQ) test, which predicts fiber digestibility and likely animal intake of hay. Contest entry forms are available at county Farm Bureau offices or online at http://www.gfb.org/commodities/hay_contest.html. Producers may enter more than one sample. Entry fees are $15 per entry to cover the cost of the lab tests. Nov. 1 is the deadline to enter. Winners will be announced at the GFB Hay Committee meeting on Dec. 9 during the annual GFB Convention on Jekyll Island. Prizes will be awarded for the top five places.

Contact Joe McManus at 1-800-342-1196 for more information.

GFB TAKING LISTINGS FOR HAY DIRECTORY GFB members with hay for sale are invited to list their farm in the 2014 GFB Quality Hay Directory. The directory will be printed in late November. Producers should complete a form and send to the GFB office in Macon along with a check for $10 for each listing. Checks should be made out to Georgia Farm Bureau. Nov. 1 is the deadline to submit listings. Because this directory is used for the entire year, producers should include normal and projected production of round and square bales they anticipate selling. The directory is also listed on the GFB website.

Forms for the directory are available at your local Farm Bureau office or on our website http://www.gfb.org. Contact Joe McManus at 1-800-342-1196 for more information.

Leadership Alert page 5 of 5 ESTATE PLANNING FOR LAND AND TIMBER RESOURCES Nov. 11-12 Georgia Center for Continuing Education Athens This course provides a working knowledge of federal estate and gift tax laws and regulations which enhance communications with estate planning advisors. Content includes addressing tax law changes to protect forestry assets. Registration fee is $295 through Oct. 21 and $345 after.

Spouse fee is $145 and optional Georgia real estate and continuing legal education credits are available for additional fees. For more information contact Ingvar Elle at 706-583-0566 or jelle@warnell.uga.edu.

SOUTHEAST QUALITY MILK INITIATIVE SURVEY The Southeast Quality Milk Initiative is conducting a survey with the goal of improving milk quality and developing strategies to control mastitis in the Southeast. The survey, collaborative effort between six land grant universities, including the University of Georgia, was sent to milk producers in mid-September and producers are requested to return them by Dec. 1. For more information, or if you are a milk producer who did not receiver a survey and would like to participate, contact Dr. Steve Nickerson at scn@uga.edu or 706-542-0658.

BEYOND THE FARM GATE SOCIAL MEDIA SEMINAR Dec. 17 UGA Tifton Campus Conference Center 8:45 a.m. – 5 p.m.

Tifton This free event, funded under a USDA Beginning Farmer & Rancher Grant, will help farmers gain the skills and knowledge they need to establish and maintain an effective online presence for their farm or ranch. The deadline to register is Dec. 10. To register or for more information, contact Chris Morgan at 706-542-7102 or acm@uga.edu, or visit http://www.depts.ttu.edu/aged/beyondthefarmgate/events.html.