04/16/2012

S P E C I A L

R E P O R T

‘Environment’ Farmers use everything from the sun’s rays to walnut shells to power their farms | 4

April 16, 2012 Vol. 91

‘Ag Research’ Legislation would establish foundation to support agricultural research | 3

Darke County program showcases ‘Home Grown’ foods | 8

Thune introduces permanent estate tax repeal bill In introducing his bill to permanently repeal the estate tax, Sen. John Thune (R-S.D.) said the “death of a loved one should not be a taxable event” that forces families to sell off their farms or other businesses they’ve built across generations.

No. 7 fbnews.org

AFBF analysis sees soybeans as new market driver A new USDA report on World Agricultural Supply and Demand Estimates is setting up what could be an interesting new crop market dynamic, according to economic analysis from the American Farm Bureau Federation.

The WASDE report issued last week was largely unchanged on the corn and feedgrain side and was generally viewed as neutral, but on the soybean side, supply estimates were reduced and U.S. exports increased to help make up for smaller South American crops, according to AFBF economist Todd Davis.

“We are looking at a situation where soybeans, rather than corn, could very well become the market leader in the U.S. grain and oilseed complex,” Davis said.

“Typically, corn prices usually help drive the market prices for the other grain and oilseed commodities, but given what we now know, soybeans are ready to move to the forefront.”

Davis explained that the report, coupled with prospective planting estimates from late March, indicate the United States is in rebuilding mode in regard to the nation’s corn supply, as U.S. farm-

ers are expected to plant 95.9 million acres. This represents the highest corn acreage since 1937.

But soybean supplies are likely to move in the opposite direction and become much tighter next year as 2012 U.S. soybean plantings are expected to decline by more than a million acres compared to 2011. Complicating the picture has been the drought that has already cut into South American beans.

Soybeans were clearly the newsmaker in this April WASDE reSoybeans Continued on Page 3

Lawmakers introduce bills to block federal child labor proposal

Continued on Page 8

photo by darren youker, Pennsylvania farm bureau

n e w s p a p e r

ADAM DIETRICH, 15, of Lehigh County, Pa., climbs into a tractor on his family’s farm, something that he might not be allowed to do under the Labor Department’s child labor proposal because the tractor cab is more than 6 feet above ground level. Sens. John Thune (R-S.D.) and Jerry Moran (R-Kan.) have introduced a bill (S. 2221) to bar implementation of the restrictions.

With the average age of U.S. farmers nearing 60 years old, the government should be helping young people to learn to farm, says Sen. John Thune (R-S.D.).

Regulations proposed by the Labor Department would do just the opposite, according to Thune, by restricting the situations in which young people could work on farms and ranches and limiting the types of work they could do.

“If this proposal goes into effect, not only will the shrinking rural workforce be further reduced, and our nation’s youth be deprived of valuable career training opportunities, but a way of life will be begin to disappear,” he warned.

Thune and his Senate colleague Jerry Moran (R-Kan.) have introduced the Preserving America’s Family Farms Act (S. 2221) to block DOL from implementing regulations that, as originally proposed, would limit youth from working in orchards and fields harvesting fruits and vegetables, working with farm animals and common farm equipment and working on farms not wholly owned by their parents. A House companion bill (H.R. 4157) is sponsored by Rep. Tom Latham (R-Iowa). The American Farm Bureau Federation supports the legislation.

The DOL last September proposed new hazardous occupation

orders that would bar anyone under age 16 from using power-driven equipment, working with pesticides, working around manure pits and silos and other situations the department deems too hazardous. AFBF says a proposed ban on youths using equipment powered by anything other than hand or foot power could even make it illegal for them to use a batterypowered screwdriver or flashlight.

Those restrictions go well beyond recommendations in a National Institute on Occupational Safety and Health report on which the DOL proposal is based.

Labor Continued on Page 3

Viewpoint

fbnews.org

2|

April 16, 2012

What is it that’s so difficult about the farm bill?

By Kenneth Dierschke Everyone in agriculture knew there would be substantial cuts in the new farm bill.

Most agricultural organizations had signaled that a “proportional cut” would be acceptable. We’ve realized that preserving the most essential element of the legislation—crop insurance—would be a realistic goal.

Toward that end, the House Agriculture Committee had been working with what farmers believe is a realistic number—$23 billion in cuts to the farm bill, with $15 billion of it coming from the commodity title.

Recently, the House Budget Committee threw out a new and completely unrealistic number of $181 billion in farm bill cuts, including $31 billion in cuts to farm programs and crop insurance. This is not a proportional number and it’s hard to imagine how we can come up with a workable crop insurance program within that budget framework.

It’s hard to find a federal program that has worked as well as the federal farm program.

Its detractors are loud and persistent, but since the 1930s this legislation has ensured a steady and reasonably priced supply of food and fiber, created and sustained millions of jobs and kept farmers on the land in lean times. We’ve achieved all of this for

It’s hard to find a federal program that has worked as well as the federal farm program. an investment of less than half of 1 percent of the federal budget.

People are disconnected from the land and their food supply these days. Things that work well don’t require a second thought. That’s why people do not understand the tremendous risk and act of faith in planting a crop. It can disappear slowly in a relentless drought, like we saw in Texas just last year. It can also be lost in an hour of pounding by a spring hailstorm.

Some suggest privatizing crop insurance. It’s already a partnership of private and government resources, but that risk is so great that no private company can underwrite it all without increasing the premium beyond a level any farmer can afford to pay with the sale of a crop.

Many of the tools in the old farm program— direct payments, target prices and commodity loan programs—are all likely to be gone. We’ve pinned our hopes on a workable crop insurance program.

Without that, Americans might have to get

used to the idea that our food and fiber could soon come from beyond our own shores.

Payments to European farmers are roughly three times those received by U.S. farmers. Do we really expect farm and ranch families to compete with the treasuries of the nations with which we compete for markets?

Congress needs to get real about preserving crop insurance, the last vestige of a safety net for American agriculture.

Kenneth Dierschke is president of the Texas Farm Bureau and an American Farm Bureau Federation board member. This article first appeared on TFB’s blog Texas Agriculture Talks and is reprinted here with permission.

Reining in the Environmental Protection Agency

By Sen. Mike Crapo “In a nation that values due process, not to mention private property, such treatment is unthinkable,” wrote U.S. Supreme Court Justice Samuel Alito to describe the situation Mike and Chantell Sackett faced. On March 21, the U.S. Supreme Court ruled unanimously that the Sacketts would be permitted to challenge a U.S. Environmental Protection Agency (EPA) enforcement action against them. This ruling means the EPA will not be able to use the Clean Water Act to strong-arm Americans without the opportunity for judicial review, and highlights a need to further tighten the federal government’s reach.

The Sacketts were building a home near Priest Lake, Idaho, when ordered by the EPA and the U.S. Army Corps of Engineers to stop, restore the land and apply for a federal wetlands permit, or be fined tens of thousands of dollars per day. Concerned about their rights as landowners, the Sacketts sued the EPA, but the agency argued they were not entitled to their day in court until a final agency action was issued. The 9th Circuit Court of Appeals ruled in favor of the agency. The U.S. Supreme Court overturned the 9th Circuit

FBNews

Unfortunately, efforts are under way by the EPA to expand the agency’s regulatory reach over virtually all waters and ditches. I will continue to oppose this expansion and support legislative efforts to tighten the EPA’s reach. and made clear that landowners may bring a civil lawsuit challenging a federal government order under the Clean Water Act (CWA) prior to a final agency action.

The Sacketts’ case is not unique.

The decision will prevent other property owners from being subject to the dilemma of complying with an unjust decision or facing thousands of dollars in fines. Rejecting the EPA’s claim that issuance of the compliance order was just a step in the process, the Supreme Court determined that the compliance order represents a final agency action for which there is no adequate remedy other than the opportunity to bring a civil action to challenge the issuance of the order.

Don Lipton, Executive Director, Public Relations Lynne Finnerty, Editor Erin Anthony, Assistant Editor Phyllis Brown, Assistant Editor Sarah Bittner, Contributing Writer

April 16, 2012 Vol. 91

What does this mean for property owners? Justice Alito explained, “At least, property owners like [the Sacketts] will have the right to challenge the EPA’s jurisdictional determination.” However, he further explained, “Real relief requires Congress to…provide a reasonably clear rule regarding the reach of the Clean Water Act.” I am glad Justice Alito made this point. I understand the impact of an overly-aggressive interpretation of the CWA. Little good can come from the administration seeking to expand its authority at the expense of private property rights in contravention of congressional intent. Property owners deserve clarity so that similar situations do not continue.

We also do not need an expansion of the reach of the CWA that puts more Americans in similar messes. Unfortunately, efforts are under way by the EPA to expand the agency’s regulatory reach over virtually all waters and ditches. I will continue to oppose this expansion and support legislative efforts to tighten the EPA’s reach.

I will also continue to push for legislative remedies when the courts too strictly interpret regulations, as in the case of the 9th Circuit Court of Appeals establishing EPA permitting jurisdiction

No. 7

Published semimonthly, except monthly in August and December, by the American Farm B ­ ureau Federation, 600 Maryland Ave., SW, Suite 1000W, Washington, DC 20024.

Phone: 202-406-3600. E-mail: fbnews@fb.org. Web site: http://www.fb.org.

Periodical postage paid at Washington, D.C., and additional mailing offices. Subscription rate for officers and board members of county and state Farm Bureaus—$6, which is deducted from dues. For other subscribers—$10.

Postmaster: Send address changes to FBNews, 600 Maryland Ave., SW, Suite 1000W, Washington, DC 20024.

(ISSN 0197-5617)

over forest roads as point sources of pollution. This ruling ruined a long-standing and successful regulatory framework that gave states the responsibility for regulating runoff from forest roads. I urge the Supreme Court to take up the review of this decision and check the EPA’s regulatory powers, as it did with the Sackett case.

Everyone wants to protect the resources that make the West a wonderful place to live and raise a family, but private property rights need not be trampled to do it. A better way exists and this ruling is a step in the right direction.

Sen. Mike Crapo (R-Idaho) is a member of the Senate Banking, Housing & Urban Affairs; Budget; Environment & Public Works; Finance; and Indian Affairs committees.

Farm Bureau TV: www.youtube.com/farmbureautv

Follow us on Twitter: www.twitter.com/farmbureau

“Like” us on Facebook: www.facebook.com/AmericanFarmBureau

April 16, 2012

fbnews.org

|3

Capitol View

Lawmakers say ag research must remain a priority Scientists at Michigan State University’s AgBioResearch center have just identified the genetic region of the tart cherry where resistance to leaf spot, a fungal disease, resides.

The disease weakens cherry trees, resulting in less fruit production, and can kill young trees that aren’t cold hardy. Cherry growers use fungicides to control the disease, but the MSU research promises to make leaf spot control easier and less costly.

“This is the first step toward identifying resistance,” said Dr.

Steve Pueppke, director of the MSU AgBioResearch center. “Getting that gene or genes into commercial varieties of tart cherry would be a huge advantage.”

Pueppke says this is often what happens in agricultural research.

Scientists find a beneficial gene, but taking it to the next level where it can become commercialized requires a large investment.

“It’s going to take a serious amount of funding to continue the genetics and molecular work to create a variety that cherry

growers can use,” he said.

The kind of research taking place at MSU and many other universities and labs across the country has driven agricultural productivity gains in the U.S., gains that will need to continue in order to double food production and meet the global food demand forecast by the United Nations Food and Agriculture Organization. But public funding for agricultural research has stagnated since the 1970s. It actually has begun to decline more recently as federal and state budgets have tightened.

Sens. Debbie Stabenow (DMich.) and Pat Roberts (R-Kan.), the chair and ranking member of the Senate Agriculture Committee, have introduced a bill (S. 2274) to create a non-profit organization, the Foundation for Food and Agriculture Research, to solicit private donations to support public agricultural research and education. Similar research foundations already exist for medical, public health and safety, and natural resource research, the senators say. The foundation would foster new public-private partnerships involving USDA research agencies, academia, private corporations and non-profit organizations.

The American Farm Bureau Federation is one of many agricultural,

veterinary, nutrition and health groups that applaud the effort.

“While we continue to support greater federal investment in food and agricultural research, we understand the current budgetary constraints,” the groups wrote to the senators. “We recognize the need for innovative solutions to increase funding and to leverage current and future investments in research.”

This and prior efforts to allow for tax-exempt Agricultural Research Organizations will be a major issue as Congress writes a new farm bill with less money to work with than when the 2008 farm bill was enacted.

Public research funding is especially important to projects that deal with just one or two smaller crops, such as tart cherries, or research projects that take many years to yield results or benefit the public good rather than one company’s balance sheet, according to Kelly Day-Rubenstein, an agricultural economist with USDA’s Economic Research Service, but private-public collaboration helps further the research mission.

“What happens ideally is the public sector will bring the research up to a point where the risk-benefit ratio changes and a company can pick it up and work with it from there,” she explained.

Lawmakers introduce bills to block federal child labor rules

AFBF analysis sees soybeans as new market driver

Continued from page 1 “It could depend on how literally DOL and its staff members interpret their rules,” said Kristi Boswell, AFBF labor specialist.

“But it’s a problem if the rules are written in such a way that they give the regulators that kind of latitude. I think a reasonable person would agree that telling a 15 year-old he can’t use a flashlight or a battery-powered screwdriver isn’t reasonable and certainly isn’t an appropriate level of involvement for the federal government to have in a parent’s decision about what his or her kid is allowed to do, whether it’s on their own farm, a grandparent’s farm or a neighbor’s farm.”

The proposal has been met with a significant backlash from farm country. At www.keepfamilies farming.org, a website launched by farm-friendly members of Congress including Moran and Rep. Denny Rehberg (R-Mont.), many have written about their positive experience of growing up doing farm work and learning valuable life lessons. Moran is featuring the testimonials on his own website.

DOL has defended its proposal, saying that children working on their parents’ farms would continue to be exempt from the rules.

Opponents say that the proposal jeopardizes exemptions for farms partly owned by extended family, as is common in modern agriculture, and could leave non-farm FFA and 4-H kids who want to work on a farm to gain experience or complete a project out of luck.

Latham says that 4-H members and FFA students with whom he

Continued from page 1 port. The U.S. soybean ending stocks number was reduced by 25 million bushels to 250 million bushels. The decline was due to an increase in the expected amount of soybean crush and stronger U.S. exports to make up for the South American shortfalls.

On the world level, soybean ending stocks for 2011-12 are projected to decline to 55.52 million metric tons. The Argentina soybean crop estimate has been reduced by 257 million bushels and the Brazilian soybean crop has been reduced by 330 million bushels from November estimates—all due to the drought in those nations.

U.S. corn ending stocks for the 2011-12 marketing year were unchanged from the March report.

Pre-report estimates were for a reduction in stocks based on the March 30 grain stocks report. Da-

has met have expressed support for legislative efforts to block DOL’s proposal. “I’m proud to see so many young Iowa leaders interested in carrying on the powerful tradition of the family farm,” he said, “but this regulatory proposal…could stop them from doing so.”

The average age of principal farm operators in the U.S. was 57 according to the 2007 Census of Agriculture. The census is held every five years. If long-term trends hold, the 2012 census will find the average age has risen to 58.

Those aged 65 and up make up the fastest growing group of farm operators. The number of farm operators under age 45 declined 14 percent in the last agricultural census, contributing to concerns about whether there are enough new entrants into farming.

“Both Agriculture Secretary Tom Vilsack and Deputy Secretary Kathleen Merrigan have expressed concern about this problem of the aging farmer population and the need to help more beginning farmers and ranchers get started,” said Boswell. “They are to be commended for focusing on that. I just hope that we don’t create any new hurdles to training the next generation of food producers.”

DOL is reviewing the thousands of comments it received on its proposal and could finalize by August the list of jobs young people aren’t allowed to do. Meanwhile, congressional opposition to the proposal is growing. Almost half of the Senate—44 senators—have cosponsored the Preserving America’s Family Farms Act. The bill has 39 cosponsors so far in the House.

vis said that projected marketing year ending corn stocks of 801 million bushels is a 6.3 percent stocks-to-use ratio, or roughly a 23 day supply of corn available at the end of August.

Also related to corn, the WASDE report projects greater livestock feeding of wheat instead of corn, which will reduce the amount of corn used for that purpose. In addition, the 2012 corn crop is being planted earlier this year, so there is greater potential of the new-crop corn being harvested in southern states that could be fed in August. Davis said that “would provide some cushion.”

At the world level, corn ending stocks for the 2011-12 marketing year will be the tightest since the 2006-07 marketing year with a stocks-to-use ratio of 14.2 percent, which was the tightest ending corn inventory in recent history, according to Davis.

Environm

E15 could be coming to a gas station near you By this summer, many drivers could be refueling their vehicles with fuel that consists of up to 15 percent ethanol and 85 percent gasoline. Currently, most gas stations sell a fuel blend of 10 percent ethanol and 90 percent gasoline.

The 50 percent increase in the renewable fuel content should give consumers a little relief from this year’s high gasoline prices, according to Andrew Walmsley, American Farm Bureau Federation energy specialist.

“Ethanol currently costs about a dollar less than petroleum-derived gasoline, so using more ethanol helps lower the price at the pump,” explained Walmsley. “Meanwhile, using more of a clean, domestic, renewable fuel is good for national security and our environment.”

The EPA on April 2 approved E15 as a registered fuel. The next step is for states to clear it and for manufacturers who want to sell it to register individually.

It’s been a long road to get E15 to market.

The EPA approved the use of E15 in model year 2001 and newer light-duty passenger vehicles, in addition to flex-fuel vehicles, in two steps— first with a green light in 2010 for using it in 2007 and later model cars, and then with the approval last year to use E15 in models going back to 2001.

The American Farm Bureau Federation supported the approval of E15, calling it a step toward greater energy independence and rural job creation. The approved vehicles make up more than 62 percent of the cars, trucks and SUVs on the road, according to the Renewable Fuels Association (RFA).

Before approving the registration, the agency required the industry to develop a misfueling mitigation plan, including developing an EPAapproved fueling pump label, to ensure that the fuel isn’t used in engines for which it isn’t approved—boat and other non-road engines and passenger vehicles made before 2001. Also, as part of their applications to sell and store E15, fuel blenders have to submit data on the health

effects of using more ethanol. The RFA completed health effects testing information that E15 marketers can use for their registration; EPA approved the data in February.

“States in the Midwest have begun to address their regulatory requirements and perhaps as early as summer we could see E15 at fuel stations in the heartland of America,” said Bob Dinneen, RFA president and CEO.

NRCS report: Farmers committed to Chesapeake Bay A recent report from USDA’s Natural Resources Conservation Service shows that the growers who run the 83,800 farms in the Chesapeake Bay Watershed are taking very seriously the task of improving water and soil quality.

Last year, landowners working with NRCS implemented 60,846 conservation practices in the watershed, which includes the District of Columbia and parts of Delaware, Maryland, New York, Pennsylvania, Virginia and West Virginia. These practices, put in place on more than 650,000 acres of working land,

include planting stream buffers, restoring wetlands and managing manure, among others.

“It’s often said that actions speak louder than words,” said Don Parrish, American Farm Bureau Federation water quality specialist.

“By using

conservation practices on acreage that nearly equals the land area of Rhode Island, farmers, foresters and other landowners are saying they’re committed to a healthy Chesapeake Bay Watershed.”

Parrish pointed out that the report looks at only one year, and a mere 4 percent of the nation’s farms and ranches.

“For decades, growers across the country have been using these and many other practices to keep the land, water and wildlife healthy and thriving,” he emphasized.

Chesapeake Bay Watershed farmers used nutrient (nitrogen and phosphorous) management to improve the rate, timing and method of nutrient application on 151,689 acres, the report says.

Just slightly more than 136,500 acres were turned over to cover crops to reduce nutrient losses, while 23,848 acres were dedicated to upland wildlife habitat management to provide optimal nesting and feeding habitat as well as protective cover.

On top of that, landowners enrolled more than 2,500 acres in the Wetlands Reserve Program, which provides habitat for migratory birds, fish and other wildlife.

To help improve the Chesapeake Bay’s natural resources through voluntary conservation efforts, NRCS is working with growers to make the most of farm bill conservation programs, such as the Conservation Stewardship Program and the Wildlife Habitat Incentives Program.

For assistance above and beyond these traditional programs, the agency also has at its disposal the Chesapeake Bay Watershed Initiative, a targeted effort to reduce ni-

trogen, phosphorous and sediment loads coming from private lands.

NRCS staff use CBWI to focus financial and technical assistance on the areas most in need of reducing nutrient and sediment runoff.

Among the 11,500 new conservation practices put in place in priority watersheds last year through CBWI are 124 new waste storage facilities to help farmers manage manure; 1,132 acres of access control, which successfully kept livestock from streams on 102 farms; and 18,560 acres of no-till to reduce soil erosion and improve soil quality. Additionally, landowners put 38,352 feet of terraces in place to control soil erosion.

According to NRCS, farmers in the Chesapeake Bay Watershed are going in the right direction.

A study conducted last year of more than 800 cropland sample points in the watershed showed that farmers have made good progress in reducing sediment, nutrient and pesticide losses by adopting conservation practices such as no-till and mulch-till.

The report also highlights NRCS’ work with farmers in each of the watershed states. One example cited is a Maryland dairy farming couple who will save an estimated 990 pounds of nitrogen and 2,160 pounds of phosphorus from running into the stream next to their property after installing heavy use areas to stop erosion in the cattle travel lanes between pastures, as well as five water troughs and pipelines to ensure cows have access to clean water in each paddock. They also put measures in place to keep their cattle from stream corridors to prevent erosion and nutrient runoff.

April 16, 2012

ment

S P E C I A L

R E P O R T

Sun keeps Delaware's Woodside Farm Creamery cool There is little on Jim Mitchell’s dairy operation in New Castle County, Del., that goes unused, Mother Nature-made or otherwise. At Mitchell’s Woodside Farm Creamery, he uses the whole milk from his 32 cows to make about 35,000 gallons of ice cream annually, most of which he sells directly to the thousands of customers who flock to his operation every summer.

The sun that makes ice cream such a treat also provides about 85 percent of the electricity Mitchell uses for the freezers, homes, barns, creamery, milking parlor and other buildings on the property.

“Our biggest business expense is electricity, mostly for the freezers,” Mitchell explained. The main freezer is a 12-by-30-foot walk-in unit kept at a brisk 15 degrees below zero.

Mitchell activated his 570 solar panels, located in his pasture, in

2009, 11 years after opening Woodside Farm Creamery. The 111kW ground-mount system is netmetered, feeding directly into the grid. A two-way meter measures the electricity that the farm sends to the grid, as well as the electricity the utility provides to the farm.

The solar panels are not only cutting Mitchell’s electricity costs, but the operation’s carbon footprint, too. Conenergy estimates Mitchell’s system reduces carbon dioxide emissions by 151,894 pounds per year.

Mitchell’s herd earns its keep through more than just the ice cream. They’re a big part of his composting effort, which he approaches in a few different ways.

In one area of his operation, with the help of his cows, he’s able to compost in place, turning the manure as needed. “I use very little additional bedding for that,” Mitchell said. In other areas, though,

like the feed alley, manure is still scraped up and packed.

He also has a 5,000 gallon composter, which both his cows and his customers contribute to.

“We use manure from the milk parlor, and paper trash and ice cream containers,” Mitchell explained. “We’ve set up a recycle shed. Everything is labeled and customers can just put their trash in its spot.”

While the cows do a good job of keeping the grass cut and spreading their manure while in pasture, it’s Mitchell’s sister’s sheep who are in charge of upkeep around the solar plant.

“My sister has a portable electric fence she uses for the sheep,” Mitchell said. “About once a year we have to go in there with the weed whacker to get the stuff they won’t eat.”

Beyond composting and solar power, Mitchell’s conservation

and recycling efforts include planting ground cover on some of his fields, which helps reduce erosion and improve water filtration.

Mitchell’s practices put him in good standing not only with Mother Nature, but with his neighbors— and there are quite a few of them in the middle of New Castle County, where he farms. The county is a fast-growing area not too far Wilmington, Del., and Philadelphia.

Mitchell is the seventh generation of his family to farm in northern Delaware. His family bought the land on which the creamery now sits in 1796. From then until 1961, Woodside Farm served as a dairy farm supplying milk to local residents. During the early 1960s through 1994, the Mitchells produced various crops, eggs, poultry, sheep, beef, flowers and pumpkins. In the spring of 1995, dairy cows once again became the primary focus on the farm.

California walnut grower shelling out a lot less for energy Between the electricity, heat and propane-like gas produced from his walnut shells and energyefficiency upgrades to key parts of his farm, Winters, Calif., farmer Russ Lester is on track to meet his goal of making his walnut processing plant energy self-sufficient by the end of the year.

In 2007, Lester, an organic walnut farmer, installed a BioMax 50, a small, distributed energy biomass power system that converts a range of biomass residues—in this case, walnut shells—into heat and power and produces 50 kilowatts of electricity.

“The other side benefit of these BioMax machines is that they produce a combustible gas similar to propane,” Lester said. He uses the gas, as well as the heat the BioMax produces, to dry the walnuts during harvest.

Although Lester was the first to use agricultural byproducts with the BioMax, getting the system up and running was fairly simple, especially when compared to the interconnection hassles Lester faced with Pacific Gas and Electric (PG&E).

Hooking his solar installation up to the utility power grid in 2004 was a straightforward process and Lester expected it to be relatively the same with the BioMax 50. However, his contractual agreement with PG&E prevented him from hooking his biomass machine up to the same meter as his solar installation and making the additional connection to the grid would have been too expensive. So, while working with lawmakers to make the required changes to the law, he used the BioMax 50 to power his freezer.

Now, with a new law in place, Lester expects to be connected very soon.

“Once the BioMax 50 is on the grid, we will be producing approximately 25 to 30 percent of our energy from walnut shells,” he said.

That will double when the BioMax 100 is installed later this year, bringing the amount of walnut shell-generated energy to more than 60 percent of the walnut processing plant’s needs. Lester still plans to use the BioMax 50, although not as much, and the two machines combined will offset almost all of the propane he uses to dry the walnuts.

“Between the gas and the heat, as well as the energy-efficient air recirculation system that we put in, our propane use will drop down to almost zero,” he explained. “So, we’ll be buying little propane, if any, and on an annual basis we’ll be buying very little electricity.”

Lester pointed out that in the energy selfsufficiency equation, reducing energy use can be as important as producing it. He has cut down his freezer’s electricity needs by 50 percent by giving it an energy-efficiency overhaul.

He’s also made changes to some lights and motor controls and he has similar plans for his irrigation system. His energy-efficiency upgrades have cut his overall electricity use by 30 percent, so far.

With the two BioMax machines up and running, Lester will be using all of his walnut shells, in excess of 1.6 million pounds, which would otherwise go to waste.

Just like Lester has turned the shells into a useful byproduct of walnut processing, he’s also hoping to make something of “char ash,” the byproduct of running the biomass genera-

tor. He’s working with University of California, Davis researchers to see what happens when the char ash is mixed with the soil in his orchards.

“So far the studies are showing a nitrate groundwater reduction,” he said. There has also been a reduction in nitrous oxide emissions from the soil. The char ash ties up the excess nitrogen, so it reduces the amount of [nitrates and nitrous oxide].”

Organic walnut farmer Russ Lester uses the BioMax 50, a biomass power system, to convert his walnut shells into heat, gas and electricity.

photos courtesy of california farm bureau federation

With his two biomass energy generators running, Lester will use in excess of 1.6 million pounds of walnut shells annually.

Capitol View

6|

fbnews.org

April 16, 2012

Meats and cheese drive slight increase in food prices Retail food prices at the supermarket increased slightly during the first quarter of 2012 with protein staples—meats and cheese—showing the greatest increase in price, according to the latest American Farm Bureau Federation Marketbasket Survey.

The informal survey shows the total cost of 16 food items that can be used to prepare one or more meals was $52.47, up $3.24 or about 7 percent compared to the fourth quarter of 2011. Of the 16 items surveyed, 13 increased and three decreased in average price compared to the prior quarter. The cost for the overall basket of foods increased about 7 percent compared to one year ago.

About two-thirds of the quarter-to-quarter increase in the marketbasket of foods was due to higher retail prices for sliced deli ham, sirloin tip roast, ground chuck, bacon and cheddar cheese.

“Retail prices for meats and cheese were higher in the first quarter of the year due to generally strong demand and tight supplies, a situation that carried over from 2011,” said John Anderson, an AFBF senior economist. “According to Agriculture Department data, retail meat prices probably peaked sometime in the first quarter, and wholesale prices have declined noticeably in recent weeks. This suggests that retail meat prices may decline as 2012 progresses.”

Reversing a decline in the prior quarter, sliced deli ham increased 74 cents to $5.43 per pound; sirloin tip roast increased 60 cents to $4.75 per pound; ground chuck increased 36 cents to $3.53 per pound; shredded

Consumers paid about 7 percent more for food during the first three months of this year, compared to the end of last year. About two-thirds of the quarterly increase in food costs was due to higher retail prices for sliced deli ham, sirloin tip roast, ground chuck, bacon and cheddar cheese, according to AFBF’s quarterly Marketbasket Survey. However, food price inflation is expected to remain in line with normal price inflation across the economy, and Americans still spend an average of less than 10 percent of their disposable income for food. cheddar increased 33 cents to $4.65 per pound and bacon increased 16 cents to $4.21 per pound.

Other items that increased in price compared to the fourth quarter of last year were bagged salad, up 37 cents to $2.85 per pound; flour, up 27 cents to $2.65 for a 5-pound bag; Russet potatoes, up 26 cents to $3.01 for a 5-pound bag; orange juice, up 19 cents to $3.36 for a half-gallon; apples, up 19 cents to $1.59 per pound; toasted oat cereal, up 6 cents to $3.13 for a 9-ounce box; large eggs, up 5 cents to $1.77 per dozen; and vegetable oil, up 1 cent to $2.97 for a 32-ounce bottle.

Whole milk decreased 23 cents to $3.53 per gallon; white bread

decreased 7 cents to $1.85 for a 20-ounce loaf; and boneless chicken breasts decreased 5 cents to $3.19 per pound.

Several items showing an increase in retail price from quarter-to-quarter also showed yearto-year increases. Compared to one year ago, sirloin tip roast increased 20 percent, ground chuck increased 14 percent and sliced deli ham increased 11 percent.

The year-to-year direction of the Marketbasket Survey tracks with the federal government’s Consumer Price Index (http://www. bls.gov/cpi/) report for food at home. As retail grocery prices have increased gradually over time, the share of the average

food dollar that America’s farm and ranch families receive has dropped.

“Through the mid-1970s, farmers received about onethird of consumer retail food expenditures for food eaten at home and away from home, on average. Since then, that figure has decreased steadily and is now about 16 percent, according to the Agriculture Department’s Food Dollar Series,” Anderson said. USDA’s new Food Dollar Series can be found at http://www.ers.usda. gov/Data/FoodDollar/app/.

Using the “food at home and away from home” percentage across the board, the farmer’s share of this quarter’s $52.47 marketbasket would be $8.40.

AFBF has conducted the quarterly Marketbasket Survey of retail food price trends since 1989. The mix of foods in the marketbasket was updated during the first quarter of 2008.

According to USDA, Americans still spend just under 10 percent of their disposable annual income on food, the lowest average of any country. A total of 64 shoppers in 24 states participated in the latest survey, conducted in March.

USDA has said that food prices in general will continue to rise this year, but will do so more slowly than last year. The department predicts that prices will go up by 2.5 to 3.5 percent across the year—in line with normal price inflation. While meat price increases also lead USDA’s price surveys, the department says that fresh fruits and vegetables will show only minor price increases because of good crops and plenty of supply.

FDA issues rule on antibiotic use in livestock The Food and Drug Administration on April 11 announced that it is taking “steps to protect public health and promote the judicious use of medically important antibiotics in food-producing animals.”

FDA is proposing to phase in certain changes to how medically important antimicrobial drugs are labeled and used in food-producing animals. Under the voluntary initiative, certain antibiotics would not be used for so-called “production purposes,” such as to enhance growth or improve feed efficiency. The antibiotics would remain available to prevent or treat illnesses under a veterinarian’s supervision.

“It is critical that we take action to protect public health,” said FDA Commissioner Margaret Hamburg. “The new strategy will ensure farmers and veterinarians can care for animals while ensuring the medicines people need remain safe and effective. We are also reaching out to animal producers who operate on a smaller scale or in remote locations to help ensure the drugs they need to protect the health of their animals are still available.”

The FDA published three documents in the April 13 Federal

Register: a guidance document that recommends phasing out the agricultural production use of medically important drugs and phasing in veterinary oversight of the use of those drugs; a guidance document to assist drug companies in voluntarily removing production uses of antibiotics from their FDA-approved product labels; and a draft regulation that outlines ways that veterinarians can authorize the use of certain animal drugs in feed.

The American Farm Bureau Federation is reviewing the published documents.

In related news, a study done by Kansas State University concludes that opponents of antibiotics use in livestock production have “wildly” overestimated the amount given to food animals, according to the National Pork Producers Council.

Using data from a 2006 USDA swine survey and a 2009 survey of swine veterinarians, KSU found that annually about 1.6 million pounds of antibiotics are used in pork production for growth promotion, nutritional efficiency and disease prevention. A 2001 report titled “Hogging It,” from the Union of Concerned Scientists claimed that 10.3 million

pounds a year are used.

“The UCS report should have been titled ‘Fabricating It,’” said R.C. Hunt, NPPC president. “Pork producers do not overuse antibiotics. We work with veterinarians to carefully consider if antibiotics are necessary and which ones to use.”

Several groups and lawmakers have pushed to restrict the use of antibiotics in livestock. AFBF wrote members of Congress in

January to express opposition to the Preservation of Antibiotics for Medical Treatment Act (S. 1211, sponsored by Sen. Dianne Feinstein (D-Calif.), and H.R. 965, sponsored by Rep. Louise Slaughter (D-N.Y.)), which it said would remove important antibiotics from the market, “handicapping veterinarians and livestock and poultry producers in their efforts to maintain animal health and protect our nation’s food supply.”

Herbicide 2, 4-D to remain on market The Environmental Protection Agency announced April 9 that farmers and others can continue to use the herbicide 2, 4-dichlorophenoxyacetic acid, or 2, 4-D, denying a petition from an environmental group asking EPA to cancel the herbicide’s registration and revoke its tolerances (legal residue limits in food). Farm Bureau had urged the agency to reject the petition, and said that the issues it raised had already been investigated as part of EPA's routine regulatory process.

EPA said that it evaluated all the data submitted by the Natural Resources Defense Council to support its petition, as well as new studies, and concluded that “2, 4-D tolerances are safe” and “the science behind our current ecological and worker risk assessments for 2, 4-D is sound and there is no basis to change the registrations.”

First introduced in 1946, 2, 4-D is in some 600 products used by farmers, homeowners, golf courses and others to control broadleaf weeds.

Dow Agrosciencies, the maker of 2, 4-D, says it has become an important tool in controlling weeds in key crops ranging from corn and wheat to asparagus and stone fruits. Dow says exposures to it are well below those identified by regulatory agencies as posing any risk to human health.

April 16, 2012

fbnews.org

|7

State FB Links

Nebraska Farm Bureau challenges DOL proposal with ‘Let Me Get My Hands Dirty’ Campaign Nebraska Farm Bureau’s recently launched “Let Me Get My Hands Dirty” is a year-long campaign that encourages adults and children to voice their concerns over the Department of Labor’s regulatory proposal dealing with children working in agriculture.

The campaign’s theme centers on the idea of allowing young people to continue to “get their hands dirty” on the farm because the rule greatly limits what children under the age of 15 could do on any farm or ranch.

At the 2012 Nebraska State FFA convention last month, NeFB President Steve Nelson said his organization “will not stand by and allow the DOL to attack the core and heritage of Nebraska agriculture.”

“This proposed rule is unbelievably restrictive and it will prevent young people from being able to get their hands dirty on farms and ranches across the state. FFA students would not even be allowed to

follow their own motto, ‘Learning To Do, Doing To Learn, Earning To Live, Living To Serve,’ ” he said.

DOL’s proposed rule was originally written so broadly that it would prevent children who are working on a farm that isn’t owned by their parents from doing such basic tasks such as climbing on a ladder over six feet tall, working with

livestock, or even operating a battery-powered flashlight or screwdriver. While children working on their parents’ farms and ranches would likely be exempt, the rule would still affect a large number of children.

“The safety of children working in agriculture is always our first

priority. However, it simply does not make sense for the DOL to limit or restrict what children have historically been allowed to do on farms and ranches when all they are looking for is to gain agricultural experience or make money for college,” Nel-

son said.

Nebraska Farm Bureau is asking 4-H and FFA students, detasselers and anyone with an interest in agriculture to sign a paper handprint. The prints will be collected and eventually sent to DOL to illustrate how many people, both young and old, are opposed to the proposed rule.

At their March convention, FFA members signed more than 600 handprints.

“How can a child learn the proper way to handle livestock or the safe way to be around farm machinery if they are prevented from even being allowed to do these basic tasks? If we prevent children from doing basic chores on the farm or ranch, who will be there to feed you and your family?” Nelson asked.

Nebraska Farm Bureau is also one of many state Farm Bureaus urging individuals to share their story about how this proposal would affect the future success of agriculture. Nebraskans can do so by visiting www.nefb.org and clicking on the “Let Me Get My Hands Dirty” logo to send your story to DOL. “We hope these stories will help put a face on this issue for officials at the DOL and will clearly demonstrate how this misguided rule will do nothing but harm the future and well-being of American agriculture,” Nelson said.

Newsmakers

State Focus

Paul Nay, former president of West Virginia Farm Bureau, died on April 9. He was 94. Nay served as president of WVFB from 19611983.

New regulations could hurt Hawaiian farmers

Ohio energy bill gets governor’s signature

Texas still needs consistent rainfall to break drought

The Hawaii Farm Bureau Federation is anticipating that stricter food safety requirements will negatively affect Hawaiian farmers. A Hawaii state bill would require all market farmers to be safety certified, which HFBF says would drive up costs and put some farmers out of business. Food vendors would not be required to meet the same requirements under the proposed law.

Farmer Glenn Martinez thinks that is “kind of crazy.” “If you have been to our farmers market,” he said, “there are more food vendors serving meals than there are farmers.” Kapiolani Community College owns the Diamond Head Saturday farmers market in Oahu. It is already restricting farmers selling at the market only to those who are safety certified. “It is a mandate. It is part of their contract. It’s a liability issue overall, so I understand it, but it’s sooner than I expected,” said Dean Okimoto, president of HFBF. Okimoto expects to lose about two farms on the Diamond Head vendor list. Smaller markets will feel the effects more. “We have a handful of farmers who have gone through the [certification] process and stopped, because they couldn’t keep their prices competitive because of the paperwork,” said Annie Suite, who with a business partner operates three small Oahu farmers’ markets. They anticipate these regulations will discourage immigrant and young farmers.

Ohio House Bill 276 passed with bipartisan support in the Ohio House and Senate and was signed into law by Gov. John Kasich. The bill allows for energy sources such as biodiesel, biomass energy, electric and thermal energy and biologically derived methane gas to be included in on-farm energy production, and was one of Ohio Farm Bureau Federation’s 2012 priority issues. As a result of the legislation, a farm that uses technology like a methane digester or makes a few gallons of biodiesel will not lose its agricultural zoning or Current Agricultural Use Value as long as the energy produced is incidental to the farm and at least 50 percent of the energy feedstock is from the farm. The bill also adds agricultural production of algae or “algaculture” to the definition of agriculture. A taskforce, including a representative from OFBF, will be established to review the use of methane digesters and similar technology. Ohio Rep. Jim Buchy (R) and Ohio Sen. Lou Gentile (D), introduced the bill to the Ohio House in June of 2011. OFBF staff testified in support of the bill. “We appreciate the work of the General Assembly, particularly the leadership of Rep. Buchy and Sen. Gentile to clarify this portion of Ohio Law,” said Beth Vanderkooi, OFBF director of state policy. Encouraging the use of technologies such as methane digesters promotes energy alternatives and helps farmers handle waste, she said.

Historic drought conditions took a toll on Texas agriculture in 2011. Recent precipitation has begged the question: Is the drought broken? “The effects of a drought are cumulative,” wrote Gene Hall, director of public relations for Texas Farm Bureau. “This one, stretching over a long, dry and heartbreaking year—and coming as it did on the heels of other droughts—cannot be broken by the string of encouraging rains with which we’ve been blessed this fall and early winter. It won’t be broken by a return to normal rainfall.” In September, more than 85 percent of Texas was in an exceptional drought. It would take an estimated 24-28 inches of rain over a six-month period to break the drought, according to Hall. The recent rain helps, but the scarred ground in Texas needs consistent rainfall to replenish its vegetation and itself. The dry conditions forced cattle owners to ship their animals out of state or send them to slaughter in record numbers. More than 150,000 head have left the state for greener pastures, and almost 200,000 more beef cows were slaughtered in 2011 than the year before. This spring, farmers can plant crops with a bit more hope, says Hall, but long-term the forecast still looks dry. The recent rain has still not reached places like Lubbock or the Rio Grande Valley. The drought started in 2010 with the arrival of the La Nina weather pattern.

Mike Held, chief executive officer for the South Dakota Farm Bureau Federation, has announced his retirement effective August 2012. Held has worked for SDFB for 43 years. He joined the SDFB in 1976, as executive director. He previously worked at Wisconsin Farm Bureau for seven years.

Cheryl Stubbendieck, vice president of public relations at Nebraska Farm Bureau Federation, has retired after nearly 30 years.

Stubbendieck will continue to work on some projects for NEFB as an independent contractor.

Steve Sullivan is retiring from the Cass County Farm Bureau in Florida this year. The 83-year-old will finish his fourth term as president and then expects to turn the reins over to Dave Forgey. Sullivan intends to remain a board member.

John C. (Jack) Fisher, Ohio Farm Bureau Federation vice president, became vice chair of the Ohio State University Board of Trustees in April. He originally joined the OSU board in 2006 and his term runs through 2013. Fisher also serves as a member of the boards for the U.S. Feed Grains Council, U.S. Meat Export Federation, BioOhio and Columbus 2020.

John Dupree has joined the Accounting and Administrative Service Department of AFBF as Office Service Coordinator. Dupree has worked in support services for more than 10 years.

Grassroots

fbnews.org

8|

April 16, 2012

County Activities of Excellence: Darke County FB program showcases ‘Home Grown’ foods Over the past four summers, Home Grown in Darke County (Ohio), a four-part cooking series hosted by the Darke County Farm Bureau, has shown hundreds of people how to get their fill of fresh produce and meats from the region. The program was launched in 2008 to encourage area residents to patronize their local growers, chefs, butchers and other retailers.

The 2011 sessions were held on four consecutive Wednesday evenings in July, with each evening dedicated to different locally grown products.

Thirty-five people participated in each session during which they learned from local butchers and chefs how to select and prepare beef, chicken, pork and garden vegetables raised by growers in the county.

While the emphasis was on making a connection between farmers and consumers, area businesses of all types were involved.

For example, on the evening featuring pork, the session was sponsored by the Darke County Pork Producers and held at the KitchenAid Experience. Winner’s Beef and Pork demonstrated the cuts of pork, which were then prepared by a chef.

The beef-focused evening, sponsored by the county Cattlemen’s Association, was held at The Winery at Versailles, with the meat provided by House’s Custom Butchering and Meat Market. A chef led the cooking demonstration.

“In addition to consumer education, we wanted to target those women who wanted to buy locally grown meat and produce but might be overwhelmed when stopping at a local butcher shop or farmers’ market,” explained Mandy Havenar, Darke County Farm Bureau director. “It was also a priority

that the meals be quick and easy, and something that would be nutritious and budget friendly for families.”

Havenar said the events were also an opportunity to promote Farm Bureau to members and non-members alike.

All the entities involved, and ultimately the local economy, got a boost from Darke County Farm Bureau’s effort.

“Another reward of the program is that our chefs and butchers have noticed that after appearing in our series they have had several of the participants patronizing their businesses in the county,” Havenar said.

Darke County Farm Bureau promoted Home Grown through targeted mailings, newsletters, press releases, social media, websites and flyers. The events cost $5 per person for Farm Bureau members and $10 per person for non-Farm Bureau members for each night. Attendees could sign up for all four nights at a discounted rate or choose from one to three of the sessions. Space was limited to 35 attendees, filled on a first-come, first-served basis.

A waiting list wasn’t the only byproduct of the great interest in the program.

“The great turn-out has allowed us to make plans for another [Home Grown] series this year,” Havenar said. “We’re also thinking about adding other niche activities, like canning, gardening, bee-keeping and other programs. We’re interested in anything that can touch people with agriculture.”

Havenar said Farm Bureau also recognizes growers’ tremendous interest in farmers’ markets, so they’re considering offering a program to help them get started.

Home Grown in Darke County was recognized as one of the American Farm Bureau Federation’s County Activities of Excellence. The

awards spotlight innovative programs by county Farm Bureaus in five categories: Education & Agriculture Promotion; Leadership Development; Member Services; Policy Implementation; and Public Relations & Information.

Home Grown was categorized under Education & Agriculture Promotion.

The awards are based on county membership, so county Farm Bureaus compete against others of roughly the same size. The membership categories are broken down as follows: up to 1,000 members; 1,001-3,000 members; 3,001-5,000 members; 5,001-12,000 members; and 12,001 or more members.

More information on the County Activities of Excellence Program, including the program rules and application, can be found at fb.org, under Programs.

During the Home Grown session dedicated to pork, Chef Edward Stanziano showed his audience at the KitchenAid Experience how to make pork melba with raspberry bourbon sauce.

Thune introduces permanent estate tax repeal bill Continued from page 1 Thune was joined by 20 of his Republican colleagues in offering the Death Tax Repeal Permanency Act (S. 2242), which is identical to House legislation (H.R. 1259) sponsored by Rep. Kevin Brady (R-Texas).

In addition to repealing the estate tax, both bills would eliminate the generation skipping transfer tax, make permanent the maximum 35 percent gift tax rate and a $5 million lifetime gift tax exemption, and maintain the stepped-up basis provisions.

Under the current estate tax law, the top tax rate is 35 percent with a $5 million per person exemption. The law allows the unused portion of a married person’s exemption to transfer to the surviving spouse.

Unless Congress acts, in 2013 the individual estate tax exemption will return to its pre-2002 level of $1 million and the tax rate will soar to 55 percent. With that low of a threshold, farmland values alone could make farmers and ranchers vulnerable to the tax.

“Estate taxes can hit farm families harder than other small business owners because 84 percent of farm assets are real estate-based,” explained Pat Wolff, American

Farm Bureau Federation tax specialist. “When estate taxes are due, surviving family members without enough cash on hand may be forced to sell land, buildings or equipment they need to keep their operations going.”

It’s not only farm and ranch families that suffer, Wolff said.

“Rural communities and businesses are also harmed when farms and ranches downsize or disappear and farmland close to urban centers is often lost forever to development when estate taxes force farm families to sell off land to pay the taxes.”

The uncertainty of the estate tax law is a problem, too.

“Not knowing the estate tax rate and exemption level for future years makes it difficult, if not impossible, for farmers and ranchers to plan for the transfer of the family business from one generation to the next,” Wolff said.

Even with planning, changing asset values and family situations make it impossible to guarantee that a well thought out estate plan will protect a family business from estate taxes.

Thune’s bill has 34 cosponsors, while Brady’s bill’s tally is 204.

Brady said he is working with

House Ways and Means Chairman Dave Camp (R-Mich.) to schedule a hearing, but he expects estate taxes won’t be addressed until the end of year, along with a number

of other expiring or expired tax provisions.

The Senate Finance Committee said it is unsure what will be done with estate taxes.

Corner Post Tax Freedom Day Arrives April 17, the 107th day of 2012

Source: The Tax Foundation

Americans worked more than three months of 2012 to earn the 29.2 percent of income they will pay for this year’s federal, state and local taxes. The latest-ever Tax Freedom Day was May 1, 2000, when Americans paid an average 33 percent of their income in taxes.