Georgia Farm Bureau's Leadership Alert - October 30, 2013

October 30, 2013

www.gfb.org

Vol. 31 No. 44

CONFERENCE COMMITTEE BEGINS WORK ON FARM BILL The farm bill conference committee held its first public meeting to discuss the House version of the farm bill on Oct. 30.

The 41-member committee, which includes Georgia Rep. Austin Scott (R-8th Dist.) and Sen. Saxby Chambliss (R), was established to resolve differences between the House bill (H.R. 2642) and the Senate bill (S. 954). The committee is comprised of 17 House Republicans, 12 House Democrats, five Senate Republicans and seven Senate Democrats.

The 2008 farm bill was extended by Congress in January but expired on Sept. 30. Without a new long-term farm bill, the federal government’s farm policy reverts to permanent law from the 1930s and 1940s.

American Farm Bureau Federation (AFBF) President Bob Stallman wrote to the conferees on Oct.15 expressing AFBF’s position on a number of key provisions. These include opposition to arbitrary means testing when used to determine eligibility for commodity program benefits, as well as payment limits from those programs.

Stallman voiced the organization’s support of a provision in the House bill that would prevent states from enforcing unscientific standards on imports of commodities from other states.

According to a report from the Congressional Research Service, the House and Senate bills both would eliminate direct payments to farmers while revising and renaming counter-cyclical price and revenue support programs. Both bills would reauthorize various disaster assistance programs.

The two bills have means testing and payment limits for commodity programs.

The House version under consideration contains a provision that would make the new law permanent law and repeal the 1930s/1940s laws.

The two bills also reauthorized the Supplemental Nutrition Assistance Program (SNAP), with some key differences. The Senate’s reauthorization is for five years compared to three years under the House version. Both bills restrict how federal heat assistance recipients’ benefits affect what they receive under SNAP. The House bill includes a number of other SNAP provisions, including expanding drug testing for SNAP applicants and time limit and work requirements.

The Senate bill would reduce farm bill spending by $17.9 billion over 10 years, including $3.9 billion in cuts from the nutrition assistance programs. The House version would cut spending by $51.9 billion over 10 years, including $39 billion from nutrition programs. The Senate bill would cut $13.9 billion in agricultural program spending while the House bill would cut $12.9 billion from farm programs. Visit http://www.fas.org/sgp/crs/misc/R43076.pdf to view the extensive side-by side comparison of the two bills and current law.

Leadership Alert page 2 of 5 WEST VIRGINIA POULTRY GROWER WINS CASE AGAINST EPA On Oct. 23 a federal court ruled in favor of West Virginia poultry farmer Lois Alt in a lawsuit she brought against the Environmental Protection Agency (EPA). The U.S. District Court for the Northern District of West Virginia ruled that contrary to EPA’s contention, ordinary stormwater from Alt’s farmyard is exempt from National Pollutant Discharge Elimination System permit requirements.

Alt filed suit against EPA in June 2012 after the agency threatened her with $37,500 in fines each time stormwater came into contact with dust, feathers or small amounts of manure on the ground outside of her poultry houses as a result of normal farm operations. EPA also threatened separate fines of $37,500 per day if Alt failed to apply for a NPDES permit for such stormwater discharges. AFBF and the West Virginia Farm Bureau intervened alongside Alt as co-plaintiffs to help resolve the issue for the benefit of other poultry and livestock farmers.

In ordering Alt to seek a permit, EPA took the legal position that the Clean Water Act’s exemption for “agricultural storm water discharges” does not apply to farms classified as “concentrated animal feeding operations” or “CAFOs,” except for areas where crops are grown.

In other words, any areas at a CAFO farm where crops are not grown, and where particles of manure are present, would require a permit for rainwater runoff.

In April, the federal court rejected efforts by EPA to avoid defending its position by withdrawing the order against Alt. In opposing EPA’s motion to dismiss, Alt and Farm Bureau argued that farmers remained vulnerable to similar EPA orders, and the important legal issue at stake should be resolved. The court agreed.

HOUSE PASSES BILL TO FUND WATER PROJECTS In a move that sets federal funding levels for the Savannah Harbor Expansion Project, the U.S. House passed the Water Resources Reform and Development Act of 2013 (WRRDA) on Oct. 23.

WRRDA, which addresses multiple issues with the nation’s waterways infrastructure, passed by a 417-3 vote. All of Georgia’s 14 representatives voted in favor.

WRRDA includes provisions that reform the project delivery processes of the U.S. Army Corps of Engineers, create a prioritization of authorized improvements based upon risk of failure and economic return, and provide needed adjustments to the Inland Waterways Trust Fund (IWTF). WRRDA sets target expenditures from the Harbor Maintenance Trust Fund (HMTF), increasing each year so that by Fiscal Year 2020 and beyond, no less than 80 percent of the funds collected go to operation and maintenance activities.

The HMTF is the section under which the Savannah port expansion would be funded, clearing the way for dredging of sections of the Savannah River to allow it to accommodate larger ships that will begin moving through the Panama Canal after that facility’s expansion, expected to be completed in 2015.

The Senate passed its water resources bill in May by an 83-14 vote. The bills now move to conference committee to resolve the differences between them.

Water infrastructure bills have traditionally passed every five years, but the last two were in 2007 and 2000, creating a backlog of U.S. Army Corps of Engineers projects awaiting Congressional authorization.

Leadership Alert page 3 of 5 TYSON HALTS PURCHASES OF CANADIAN CATTLE Citing higher costs resulting from compliance with U.S. country-of-origin-labeling (COOL) rules, Tyson Foods stopped buying slaughter-ready cattle from Canada in mid-October, according to published reports. The company will continue purchases of Canadian feeder cattle that are shipped to the U.S. for finishing on feedlots before slaughter.

According to a Reuters story, COOL resulted in markedly higher costs for “additional product codes, production breaks and segregation of product.” The rules under COOL required segregation of U.S. meat and cattle from meat and cattle that was born, raised and finished outside the U.S. prior to slaughter.

COOL was intended to give U.S. consumers more information about where their food comes from, and its labeling rules went into effect in 2009. Canada and Mexico led a group of nations that filed a formal complaint before the WTO, which ruled in 2012 that the labeling requirements violate WTO rules on technical barriers to trade. The ruling, which the U.S. is appealing, exposes U.S. exports to Canada to potential retaliatory tariffs under WTO rules, including possible assessments against poultry products. Georgia poultry growers sold approximately $130 million worth of chicken products to Canadian buyers in 2012.

Georgia Farm Bureau policy supports mandatory COOL for all food products. American Farm Bureau Federation (AFBF) supports COOL within the guidelines of U.S. trade agreements, though AFBF policy supports USDA implementation of COOL rules in such a way that does not result in undue costs, liability or record keeping for farmers and ranchers.

DFA AND DAIRYLEA ANNOUNCE PROPOSED MERGER Dairylea Cooperative Inc.’s Board of Directors voted on Oct. 16 to merge with Dairy Farmers of America (DFA), according to a joint press release.

DFA’s Board of Directors has endorsed the merger with Dairylea, a 2,000-member milk marketing cooperative in the Northeast U.S. The merger requires approval by Dairylea’s members, who will be asked to vote during a special meeting in February 2014.

Since 2002, Dairylea has been a member of DFA, a national cooperative with a global footprint and expanding commercial investments in processing built around the same core values as Dairylea. The proposed merger will provide Dairylea members access to growing national and international milk markets, ongoing patronage dividends, tax benefits and other opportunities.

Dairylea members will become owners of and enjoy the value-added returns from the products, plants and partners that comprise DFA’s commercial division.

The merger provides DFA members with long-standing customer relationships in the Northeast marketplace, enhanced farm services and expanded access to capital to facilitate strategic growth.

Working together, Dairylea and DFA have created efficiencies in milk assembly, transportation and marketing, as well as joint management of farm services and membership operations in the Northeast. These cost-efficiencies are expected to continue and grow following the merger.

Six seats will be added to DFA’s Board of Directors to represent expanded membership in the Northeast, and DFA’s Northeast Area Council will maintain local governance and a grassroots structure familiar to Dairylea members.

Leadership Alert page 4 of 5 GEORGIA BEEF REFERENDUM PROCESS UNDERWAY Georgia cattle producers have until Dec. 31 to sign up with the Georgia Department of Agriculture to receive a ballot to vote in a state referendum that will determine if an assessment of up to $1 per head is collected to fund the Georgia Agricultural Commodity Commission for Beef. The proposed assessment is separate from the National Beef Checkoff (NBC). For the referendum to be valid, at least 25 percent of the total number of producers who receive ballots must vote. For the referendum to pass, two-thirds of those who vote must vote in favor of the commission. To request a ballot, visit http://agr.georgia.gov/beef-commission.aspx. Those without access to the Internet may contact their county Farm Bureau office for assistance in signing up for a ballot.

DEPARTMENT OF PUBLIC SAFETY ACCEPTING AG CDL EXEMPTION FORMS New federal highway funding legislation that went into effect on July 1 allows expanded exemptions for farmers transporting their own products, equipment or machinery, but a producer must carry a special tag or distinction on the vehicle to receive the exemption. The form may be accessed at http://gamccd.net/FarmVehicle.aspx. The form must be completed online, and the vehicle identification number (VIN) for the specific vehicle is required. Beginning January 1, 2014, no farm CDL exemptions are applicable without form TR0025 being in the vehicle.

Additional information on the exemption for farm vehicles can be found at http://www.gfb.org/legislative/map21.html.

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. Contest participants will receive a detailed copy of their hay analysis and receive a free listing in the GFB Hay Directory if they choose. 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. Directories are distributed to all county Farm Bureau offices, county Extension offices, the Georgia Cattlemen's Association, cattle producers, dairy producers, horse owners, directory participants, and at the Sunbelt Expo and the annual GFB convention. 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 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.

3rd ANNUAL GA. STALLION TO GELDING CASTRATION DAY Nov. 9 Various sites Equine veterinarians across Georgia are joining the Georgia Equine Rescue League (GERL) to host this low-cost castration clinic for $100 per horse. GERL will pay $50 and the owner/client will pay $50. For more information visit the GERL website at http://www.gerlltd.org or call Patty Livingston at 770-867-0760.

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 enhances communications with estate planning advisors. Content includes addressing tax law changes to protect forestry assets. Registration fee is $345. 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.