S P E C I A L
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‘Lame Duck’
Congress’ to-do list for a post-election session is growing | 4 June 11, 2012 Vol. 91
‘Labor’
DOL formally withdraws ag youth labor rule | 3
‘Farm Safety’ Farm Bureau conference highlights safety, health | 8
1940 Census, a step back in time
No. 11 fbnews.org
Senate moves forward on farm bill The Senate on June 7 voted overwhelmingly in favor of proceeding with a debate on the 2012 farm bill. The procedural vote of 90-8 allows the Senate to consider the dozens of amendments that have been offered on the bill and vote, most likely this week, on passage. The American Farm Bureau Federation sent a letter to the Senate ahead of consideration of the farm bill, outlining the organization’s priorities and concerns with the Agriculture Reform, Food and Jobs Act (S. 3240). AFBF President Bob Stallman wrote
that with Farm Bureau’s suggested improvements, he believed the bill would move toward the organization’s core principles for rational, acceptable farm policy and AFBF would support it. According to Stallman, Farm Bureau places a priority on several of the committee’s decisions, including using the $23 billion in savings suggested to the Joint Committee on Deficit Reduction last fall; protecting and strengthening the federal crop insurance program; developing a commodity title that attempts to encourage producers to follow market
signals rather than make planting decisions in anticipation of government payments; and refraining from basing any program on cost of production. “While the legislation addresses many Farm Bureau policy priorities, it is our sincere hope there will be additional opportunities to make adjustments and refinements to improve this legislation,” Stallman said. Some of the areas Farm Bureau believes would benefit from additional policy work include adFarm bill Continued on Page 6
Senate farm bill is good for young farmers
By Stewart Truelsen Earlier this spring the National Archives released the 1940 Census to the public. If you are wondering what took them so long, there is a 72-year waiting period required by law to respect the privacy of the respondents.
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THE FARM BILL NOW BEING CONSIDERED in the Senate includes programs to help young farmers and ranchers. Michigan fruit grower Ben LaCross said that if the Senate bill was already enacted, “I would have the opportunity to cover more of my crops.” The bill would increase crop insurance assistance for beginning farmers. Ben LaCross, a young fruit grower and Farm Bureau member from Michigan, last week urged Congress to pass the Senate Agriculture Committee-passed farm bill this year. Speaking on behalf of the American Farm Bureau Federation at a press event on Capitol Hill on the eve of a successful vote to proceed to consideration of the farm bill, LaCross said that without the bill crop losses could be catastrophic, especially for beginning and young farmers. A heavy snow storm in early March was followed by unusually warm weather and then a frosty April in Michigan. LaCross said his state has lost an estimated 90 percent of its apple crop, 85 percent of its grapes, 95 percent of its peaches and 85 percent of its cherries.
“If the committee’s farm bill were in existence today, I would have the opportunity to cover more of my crops under crop insurance, using new programs that would provide better coverage at a lower cost,” he said. “It would also provide the ability to use more realistic production numbers by increasing the ‘yield plug’ in years like this one, when my production is going to be almost zero. Importantly, the bill also increases crop insurance assistance to beginning farmers. “In a normal year, my farm would produce 4 million pounds of cherries. This year, we will be lucky to harvest 40,000 pounds— only 1 percent of my normal production,” continued LaCross. “Crop insurance helps keep families like mine in business.”
Before introducing LaCross, Sen. Debbie Stabenow (D-Mich.), chair of the Senate Agriculture, Nutrition and Forestry Committee, said that the Senate farm bill (S. 3240) saves more than $23 billion in taxpayer money as it strengthens economic growth and job creation. “This bill has garnered widespread praise from hundreds of farm, food and conservation organizations for its common sense reforms, deficit reduction and investments in our economic future,” Stabenow said. Much of the current farm bill will expire at the end of September. The Senate farm bill also continues the Beginning Farmer and Rancher Development Program, Farmers Continued on Page 6
Viewpoint
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June 11, 2012
The
Bob Stallman
President, American Farm Bureau Federation
Immigration war hitting too close to home Labor shortages have been a significant challenge to U.S. agriculture for as long as I can remember. On my rice farm in Texas, growing up, it seemed we were always running short of farmhands when it came time to harvest. But now, unlike the simpler days of my youth when we could just hire teenagers and retirees, farmers and ranchers are facing new challenges with labor issues. From border security concerns and state versus federal authority questions, to I-9 audits and governmentcaused labor delays under the H-2A program, finding a reliable workforce is becoming more and more difficult. From the border to the court Farmers and ranchers in states like Mississippi and Arizona are currently caught in the crosshairs of an immigration battle that’s been waged over state versus federal control. Arizona took its case for state authority (based on legislation S. 1070) all the way to the U.S. Supreme Court in May and is expecting a decision later this month. In the meantime, other states are waiting in the wings to determine the impact the court’s decision will have on them. For Arizona farmers, S. 1070 is only a Band-
Aid that has been applied over the festering, underlying problem of border security and of reforming the visa program to enable farmers to get the temporary and seasonal workers needed for their farms. Farmers and ranchers who live along the Mexican line deserve a secure border and a major component is having a visa program that allows a legal flow of workers back and forth across the border so border security officials can concentrate their resources on the illegal activities. The American Farm Bureau Federation supports federal jurisdiction, as well as increased presence and cooperation of all branches of law enforcement on both sides of our borders, to eliminate border challenges facing many of our members, like theft, drug and human trafficking and illegal crossing. We must secure our borders by the most technologically advanced means possible and in a way that has minimal impact on farmers and ranchers. Stepping off the fence With proposed implementation of mandatory E-Verify (a system that allows businesses to determine the eligibility of their employees to work in the U.S.) in our near future, an agricul-
tural guest worker program that addresses farmers’ unique needs has become a necessity. AFBF will only support a mandatory E-Verify program if there is a workable solution for agriculture. Absent that solution, if E-Verify is implemented, agriculture faces losing millions of dollars in productivity, because of labor shortages. In hopes of finding a workable solution that meets the needs of our members, Farm Bureau created a work group charged with looking at labor challenges more closely and how best to use our policy to resolve them. Made up of Farm Bureau leaders and staff from across the nation, the work group is looking at all parts of the equation, including options that provide a secure workforce, allows portability, addresses the needs of all commodities and limits bureaucratic red tape. Everyone is affected by the ensuing immigration battle playing out in our nation. Unfortunately, no one feels its impact more than farmers and ranchers living and working on our borders, as well as those who are continually faced with labor shortages on their farms. Band-Aids will not work. Congress must get to the root of the problem by providing a guest worker program that works for the entire agricultural sector.
Senate legislation is not your father’s farm bill By Tracy Grondine Farm bill legislation (S.3240) that’s working its way through the Senate is not your father’s typical farm bill. It’s about the future. The Agriculture Reform, Food and Jobs Act recognizes that U.S. farmers are aging and something needs to be done to ensure that the future of agriculture is viable. S. 3240 includes significant measures to address this demographic predicament. According to the Agriculture Department’s most recent census, the average age of the American farmer is 57 years old. Further, a quarter of American farmers are 65 or older. The future of American agriculture depends on the next generation of farmers and ranchers. More than any previous farm bill, this one takes direct aim at providing retiring farmers extra benefits for passing their farms on to beginning farmers. Probably most importantly, the bill provides nearly $200 million in new funding for expanded ac-
FBNews
cess for crop insurance for beginning farmers. These improvements will lower the cost of crop insurance for beginning farmers, allow the Risk Management Agency to consider a beginning farmer’s previous experience in calculating their production history, and it will provide additional assistance when beginning farmers face natural disasters. Farmers like Michigan fruit producer and Farm Bureau member Ben LaCross understand the importance of this provision first hand. In a normal year, his farm produces 4 million pounds of cherries. Due to extremely bad weather conditions, this year he’ll be lucky to harvest 40,000 pounds—only 1 percent of his normal production. This level of losses is tough on any producer, but especially catastrophic for a beginning farmer who is still trying to build up equity. If S. 3240 were in existence today, Ben and others like him would have the opportunity to cover more of their crops under crop insurance, using
Don Lipton, Executive Director, Public Relations Lynne Finnerty, Editor Erin Anthony, Assistant Editor Phyllis Brown, Assistant Editor Sarah Bittner, Contributing Writer
June 11, 2012 Vol. 91
new programs that would provide better coverage at a lower cost. In other areas, the bill continues the Beginning Farmer and Rancher Development Program, which offers education, training, outreach and mentoring programs to ensure the success of the next generation of farmers. It also increases access to capital and prioritizes the needs of beginning farmers to ensure they have access to programs like the Environmental Quality Incentives Program, a program that is critical to farmers and ranchers striving to be good stewards of the land and trying to meet tough environmental mandates. The bill makes significant strides in increasing lending to beginning farmers by expanding eligibility, removing term limits on guaranteed lending, and providing opportunities for beginning farmers to earn direct loan access. For the first time, USDA will have the ability to create pilot programs in the Farm Loan Programs exclusively targeted to beginning farmers.
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Finally, the farm bill legislation encourages older farmers to help beginning farmers get started by providing two extra years of Conservation Reserve Program participation to retiring farmers who transition their expiring CRP land to beginning farmers. Unlike past farm bills, this one is about the future. It’s about farmers like Ben LaCross who want to pass their farms to their own children.
Tracy Grondine is AFBF director of media relations.
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Capitol View
DOL formally withdraws agricultural youth labor rule With publication of a notice in the May 29 Federal Register, the Labor Department has made it official: it has withdrawn the socalled child labor rule. The department’s Sept. 2011 proposal to toughen regulations concerning the types of work that children could do on farms was widely opposed by farmers and ranchers. DOL said it was withdrawing the rule after receiving more than 10,000 comments on it, many of them from “parents who own or operate farms who believed that the department’s proposal would limit their ability to employ their own children on their farm and to provide their children with hands-on experiences in agricultural occupations.” While the department announced in late April that it would withdraw the proposal, the American Farm Bureau Federation was eager to see the decision made official, according to Kristi Boswell, AFBF labor specialist. “It was critical that DOL take the steps necessary to formally
withdraw the proposal,” she said. “Now we have certainty that this particular proposal is dead.” Boswell said the department’s retreat was a great victory for agriculture. The rule was confusing in terms of what kinds of work kids younger than 16 would be allowed to do, and could have seriously weakened the exemption for children working on their own families’ farms. With a prohibition on operating power-driven equipment, for example, the rule would have prevented kids from using battery-powered tools or fueling up tractors, if interpreted literally. The withdrawal was also a tribute to grassroots efforts, Boswell said. “Farmers and ranchers across the country talked to their members of Congress, made note to the Department of Labor about the true effect that these regulations would have had on farms and ranches across the country and not only to the farmers, but to the youth who are learning skills on these farms and raising money for college...,” she said.
“The reaction in the countryside is relief,” she added. DOL, in its official withdrawal, said that commenters included 153 members of Congress, 42 senators and a number of agricultural education instructors who emphasized the importance of preparing the next generation of farmers and ranchers and stated that the proposal would unduly limit the work that young people could be employed to do on farms and thereby limit their opportunity to learn about farming, as well as discourage them from entering the field of farming. Now, instead of imposing new regulations, the department is working with Farm Bureau and other agricultural groups to develop safety programs that are
locally controlled and involve farmers and ranchers, according to Boswell. “Farm Bureau is looking forward to promoting farm safety, as it always has, across the country,” Boswell added. “Our state Farm Bureaus have a lot of programs currently in place and the USDA has reached out to [AFBF] and other interested ag groups to encourage those programs and assist [in] promoting farm safety.”
From Switzerland to Virginia—an IFYE experience This is the fourth in a series of articles about the International Four-H Youth Exchange (IFYE) Program. By Pirmin Zurfluh I was a 2011 IFYE (International Four-H Youth Exchange) participant in Virginia for three months. I started with a three-day orientation in Washington, D.C., with other inbound IFYEs. We received information about our host families, Virginia 4-H and the state in general, and toured Washington, D.C. My first host family, Lewis and Gayle Moore and daughter Whitney, live on a beef farm near Staunton. They made me feel right at home. During my three weeks with them, I helped on the farm. We went to the fields to make round hay bales. I also used the backhoe and turned a big compost pile around. That is really fun. The first weekend, we drove two and a half hours to their other home at Smith Mountain Lake. Even though it was late when we arrived, my eyes grew large when I saw a really big house on a beautiful, paradise lake. I also saw a little boathouse with a boat on the shore. I asked Lewis, “Is that your boat?” He said, “Yes, we will play tomorrow—wakeboarding and water skiing.” I remember having a huge smile! The next morning after breakfast, we took everything we needed for wakeboarding to the boat and went out on the lake. I had never seen such a nice morning at such a beautiful place. It felt like paradise. I was there for Whitney’s 23rd birthday, so we celebrated with a trip to Busch Gardens in eastern Virginia. People who live in Europe will think when they hear the name that it is a park with bushes, but that is completely wrong. It is a large amusement park with a really big roller coaster, like Europe Park, but a little bit bigger. We had a great time. My second host family was Geary and Ethel Showman in Woodstock, Va. Geary is a chief building inspector. That is an occupation that we do not have in Switzerland, and for me really interesting. He took me to his work to understand what he does. It was great because I’m a carpenter and a draftsman. I spent time with my host mother, Ethel, a 4-H volunteer who involved me in 4-H activities, including an interstate 4-H All Star conference. The Shenandoah Valley is beautiful with lots of Civil War history, caverns and a great county fair.
My last host family was near Blackstone— Hugo and Tracey Jones, son T.R. (25) and daughter Coley (31), on their 300-cow dairy farm. Laura, another inbound IFYE from Finland, was there at the same time. During this time on the farm, a lot was going on. Our first work was to chop corn (top of the list), but first we had to fix the broken chopper in the workshop. I drove one of three dump trucks. I drove the whole day with full loads of corn silage. I wore a big smile all day long. In the first two weeks we cut 250 acres of corn. After that, the silo became full. T.R. let me drive a huge vehicle, much bigger than my lovely red dump truck. I loved helping on the farm, but we had time to visit other places, too. Did you hear about
the earthquake that occurred in Virginia? We were at Kings Dominion amusement park, sitting in an old wooden roller coaster, and it was shaking more than usual! I’m glad that nothing bad happened. We also visited Virginia Tech, home of the Virginia State 4-H office. The university was very impressive, with nice gray stone buildings. We also went tubing and hiking in the mountains. I had a wonderful IFYE experience, but then I had to say goodbye. Thank you to my three host families, 4-H and the state of Virginia. If you wish to apply to participate as an exchangee or open your home and be a host family, regardless of your residence state, please contact Alan Lambert, IFYE Association president, at alanelambert@gmail.com.
While harvesting corn silage in Virginia, Pirmin Zurfluh drives his host family’s dump truck, a monster of a vehicle compared to the one he has at home in Switzerland. Far from his first turn at the controls, another of Zurfluh’s host families had him use a backhoe to turn a large compost pile around.
Lame Du
Farmers watching the calendar as estate tax hike nears Unless Congress acts, in six short months the estate tax exemption will shrink to $1 million per person with no spousal transfer and the top rate will jump to 55 percent, putting the future of hundreds of the nation’s family farms and ranches at risk. Until the end of the year, the estate tax exemption is $5 million per person and the top rate is 35 percent. Also in effect only through Dec. 31 is a provision allowing a surviving spouse to use the unused portion of a spouse’s exemption. Until estate taxes are permanently eliminated, farmers want Congress to keep the current exemption, indexed to reflect land values, maintain spousal transfer and continue the top tax rate.
If Congress does not do so by the end of the year, many more surviving farm family members could be forced to make critical decisions on selling land, buildings or equipment to generate enough money to pay the tax. “A higher exemption and lower rates will give family farms and ranches a better chance to remain in operation when transferring from one generation to the next,” explained Pat Wolff, American Farm Bureau Federation tax specialist. The estate tax burden falls heavily on farmers because it takes a lot of capital assets, such as land and equipment, to generate the same dollar in income that another type of business could generate with less. While estate taxes are first and
foremost for farmers and ranchers, there are a number of other critical tax provisions that expire at the end of the year, including several related to renewable energy. To boost renewable technologies and support development of the necessary market infrastructure, long-term extensions of renewable tax incentives, like those for biodiesel and electricity produced from wind and biomass, are needed. Incentives to build pipelines and pumps for renewable fuels should also be extended, Farm Bureau said in recent testimony to the House Ways and Means Subcommittee on Select Revenue Measures. Congress should reinstate and extend the deduction for health insurance premiums against income taxes, as well as continue the bonus depreciation deduction, which can be used immediately when growers buy equipment. Similarly, Section 179 allows small businesses to expense the cost of qualified property in lieu of depreciation. Another cash flow-related tax provision is that for the five year depreciation of farm equipment. This provision, which needs to be reinstated and
extended, matches the fiveyear period of debt service typical for farm equipment to the number of years allowed for depreciation of business machinery or equipment. Rural health care provider, food donation and farmland preservation incentives are also important to farmers and ranchers. Tax extenders may be on some lawmakers’ lists too, but not necessarily at the top. House Speaker John Boehner (R-Ohio) said recently that his chamber will act soon to “extend all of the current tax rates,” but House Minority Leader Nancy Pelosi (D-Calif.) said her Democratic colleagues are more focused on taking up middle-income tax cut legislation. On the other side of Capitol Hill, talk among the senators about the tax extenders has been minimal at best. “While it’s impossible to predict what Congress will do, it’s probably safe to say that tax extenders legislation won’t be ready for the president’s signature until after the election at the earliest,” Wolff said.
Ag appropriations could be punted to lame duck The 2013 agriculture spending bills are moving in the House and Senate, but they still may not be finalized before the November elections. “As we move toward July, the August recess and the fall campaign season, chances are getting slimmer that lawmakers will have time to approve the spending bills in their respective chambers and conference on a single bill to send to the president for his signature,” explained RJ Karney, American Farm Bureau Federations appropriations specialist. “It’s possible Congress will punt the 2013 ag approps bills to the post-election, lame duck session.” If it does come to that, lawmakers will have to extend this year’s appropriations to keep funding in place through the start of the 2013 fiscal year, which begins on Oct. 1, Karney noted. Earlier this year, Farm Bureau shared with lawmakers its top priorities for funding in the agricultural spending bill. Among them are programs that promote animal health, renewable energy and rural communities. Other programs on the list include: conservation, export markets for agriculture, food safety, crop protection tools, wildlife services and agricultural research. Of its priorities, AFBF supports a
$5.3 million increase for the Animal and Plant Health Inspection Service to a total of $14 million for voluntary animal disease traceability. As for conservation, the organization supports funding for conservation programs but prioritizes working lands programs over retirement-type programs. Within food safety, AFBF would like to see increased education and training of inspectors, as well as additional science-based inspection, targeted according to risk. Indemnification for producers who suffer marketing losses due to inaccurate government-advised recalls or warnings is also important. In addition, agricultural research funding is critical, the organization said in letters to the House and Senate agriculture appropriations subcommittees earlier this year. “Agricultural research is vital, particularly research focused on meeting the growing challenges of production agriculture,” wrote AFBF President Bob Stallman. “The United Nations’ Food and Agriculture Organization predicts that farmers will have to produce 70 percent more food by 2050 to feed an additional 2.3 billion people around the globe. America’s farmers are the most efficient in the world, but without a commitment to further agricultural
research and technological advancement, even America’s farmers could be hard-pressed to meet these challenges.” The full House Appropriations Committee has yet to approve the
2013 agriculture spending bill. On the Senate side, the measure is ready for floor action, but Majority Leader Harry Reid (D-Nev.) has not signaled when he will begin votes on the appropriations bills.
How the duck became ‘lamed’ The term “lame duck” has come to mean an elected official who won’t be remaining in office, because he or she has lost an election, resigned or retired. Lame-duck sessions of Congress can take place after the election of the new Congress but before the current Congress’ term ends, i.e. before Congress adjourns sine die (Latin for “without day,” meaning that Congress has not set the date for its next meeting). There have been 18 lame-duck sessions from 1935 through 2010. In 1933, Congress set members’ terms to begin and end on Jan. 3 of odd-numbered years. Previously, sessions began in March—after the election of the next Congress. However, lame-duck sessions occurred, as Congress routinely would convene in the prior December, after the November election but before the new Congress was sworn-in in March. One purpose of the 20th Amendment to the Constitution, according to the Congressional Research Service (CRS), was to change this schedule that routinely resulted in lame-duck sessions. The expression originated in 18th century Britain, according to CRS, and referred to businessmen who had gone bankrupt and were powerless, like a game bird that had been shot. By the 1830s, the usage had extended to officeholders. While those 18th century businessmen were out of money, today’s lame-duck Congresses are almost out of time. This year’s expected lame-duck Congress will have only a few weeks to deal with expiring tax provisions, the nation’s debt limit, funding the government for fiscal 2013 and possibly a new farm bill.
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Workers to be hit with payroll tax increase in January The expiration of the Social Security payroll tax cut at the end of this year is yet another policy, in addition to other expiring tax provisions, that Congress must deal with by January. Without an extension of the payroll tax cut, workers’ taxes will increase 2 percent at the start of next year. The payroll tax cut would have expired last December 31, but Congress extended it for two months, and then in February passed another extension for the rest of this year. The payroll tax increase will be in addition to higher income tax rates also scheduled to take effect in January. The payroll tax and income tax increases together will be 5 percent to 7 percent, depending on income levels. The situation has led to the use of frightening imagery in Washington. Looming tax increases have been dubbed “Taxmageddon,” and some are warning that the U.S. is headed for a “fiscal cliff,” with higher taxes and, to a lesser extent, deep federal spending cuts also set to take effect in January combining to weaken the U.S. economy. Now, Congress faces tough decisions about how to reduce the federal budget deficit without raising taxes or cutting spending so abruptly as to throttle our slowbut-steady economic recovery. Lawmakers are not expected to tackle the issues until a lame-duck session after the November elections. That gives them just about six weeks to come up with solutions that have eluded them for years. “Congress must make difficult,
complex tradeoffs,” said Pat Wolff, American Farm Bureau Federation tax specialist, “between reducing the deficit and trying to keep our economy expanding. It’s going to make for an exciting post-election debate.” AFBF has not taken a position on the Social Security payroll tax, but it does support extending lower income tax rates. Farmers and ranchers won’t have as much money to reinvest in their operations if income taxes go up, AFBF says. That would have ripple effects throughout the economy, especially in rural areas. “We recognize that compromises will have to be made,” Wolff explained, “but Farm Bureau does not believe it would be wise to pull the rug out from under stillstruggling rural economies.” According to the Congressional Budget Office, allowing current tax cuts to expire will lead to slower growth as households and businesses restrain their spending. “That drop in demand will, in turn, lead businesses to lower their production, employment and investment,” the CBO said in a report on the effects of current tax and spending policies. For agriculture, higher taxes and a possible double-dip recession could reduce demand for agricultural products, such as dairy, steaks and other high-end meats. That’s what happened in late 2008 and early 2009, when the economy nosedived and consumers ate out less and looked for cheaper foods at the grocery store. Forest products also could see continued weak demand if a slow-
down in the economic recovery puts further pressure on new home construction. CBO projects that the economy will grow by just half a percentage point next year if Congress lets taxes go up and spending go down. Based on historical trends, such a contraction probably would be deemed a recession, the agency added. That compares to growth of 4.4 percent next year if Congress extended expiring tax provisions and put off the scheduled spending reductions. On the other hand, letting the tax cuts expire this year would lower the federal budget deficit by $607 billion. A slower economy would diminish the positive impact a bit due to less tax revenue, bringing the deficit reduction to $560 billion. Over the long term, fiscal restraint would bring significant deficit reduction and help to keep interest rates low. However, given the short-term costs to the economy, CBO said
policymakers could make changes in taxes and spending in 2013 while reducing deficits later in the decade—suggesting Congress might consider at least a shortterm extension of tax cuts. “It’s a balancing act,” said Wolff. “The question later this year will be how to balance the right amount of long-term costs in terms of deficits with the shortterm costs of a slower economy— how to keep us from going over the ‘fiscal cliff.’ ” While CBO has answered the question of the economic effects of current tax policy, the question of whether Congress has the political will to resolve these issues remains unanswered. “So far, there hasn’t been much of an outcry about these tax hikes,” Wolff said, “but the public has been distracted by the presidential election. Once that is over and the tax increases are more imminent, the volume will go up and there will be more pressure for Congress to act.”
Get ready for debt limit debate, round two Last summer’s battle royal between Democrats and Republicans, Congress and the White House, over an increase in the U.S. debt limit is about to play out again. As part of last summer’s Budget Control Act, a deal to raise the debt limit to $16.39 trillion, Congress required $2.1 trillion in debt reduction over the next 10 years, of which almost $1 trillion takes place in 2013. The deficit-reduction “super committee” grew out of that deal and was tasked with negotiating the spending cuts needed to achieve the required savings— or else automatic cuts or sequestration would kick in. The super committee failed to reach an agreement, and now the U.S. faces acrossthe-board cuts in everything from military spending to social programs and funding for food safety inspections. Lawmakers will work through the end of this year and potentially into early next year to find more palatable replacements for the automatic spending cuts. Meanwhile, the U.S. is about to hit the debt ceiling yet again. The federal debt at the beginning of June was $15.69 trillion. U.S. Treasury Secretary Timothy Geithner has said that we could hit the debt ceiling by
U.S. Treasury Secretary Timothy Geithner has said that we could hit the debt ceiling by the end of this year. the end of this year. If Congress does not increase it again, the U.S. will default on some of its debts, most likely resulting in a lower credit rating that will make it more difficult, or costly, to borrow money to operate the federal government. House Speaker John Boehner reportedly has said that Republicans in Congress will only agree to another increase in the debt limit in exchange for additional spending cuts, setting up another showdown over what and how much to cut. Whether the result of the spending cuts already agreed to, or additional cuts to come from a new debt ceiling increase, the situation adds urgency to everything from writing a new farm bill to enacting new tax policies, says Pat Wolff, American Farm Bureau Federation tax specialist. “Congress already will have much less
money to work with next year, and then if there are additional spending cuts to come from another debt ceiling deal, then funding policies and programs that are important to farmers and ranchers will just become that much more difficult,” Wolff explained. The Senate started floor debate on the farm bill last week and the House Agriculture Committee is expected to begin writing its version of the new farm bill in just a few weeks. But leaders in both the House and Senate have given strong indications that completing the new farm bill will most likely have to wait for a post-election, “lame-duck” session of Congress. Debate over extending certain tax cuts originally enacted in 2001 and 2003 also is expected later this year as their Dec. 31 expiration looms and the “fiscal cliff” of scheduled spending reductions makes it tougher to renew them after this year. “The sooner Congress deals with these issues, the better,” said Wolff. “Otherwise, policies that are important to agricultural profitability will be caught up in and overshadowed by the much larger crisis of a debt ceiling deal.”
Capitol View News Briefs
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June 11, 2012
Bill advances to halt EPA’s water guidance
Ag exports forecast at $134.5 billion
A House committee on June 7 passed a bill to prevent the EPA and Army Corps of Engineers from using a guidance document they developed to broaden federal control over more water bodies and land. The Preserve Existing Rights and Responsibilities with respect to Waters of the United States Act (H.R. 4965) passed in the Transportation and Infrastructure Committee on a bipartisan vote of 33-18, clearing the way for the bill to be considered by the full House. Farm Bureau urged members to vote in favor of the bill. “In Farm Bureau’s view, the agencies’ proposal improperly changes the law of the land,” wrote AFBF President Bob Stallman to the committee members. AFBF said that the agencies would use the guidance to expand federal jurisdiction under the Clean Water Act “well beyond the words and intent of Congress and the limits affirmed by the Supreme Court.” Rep. John Mica (R-Fla.), committee chairman and sponsor of the bill, said the “so-called ‘guidance’” went beyond clarifying the scope of federal jurisdiction to significantly broadening it. The bill was introduced in April by members from both political parties. A Senate version (S. 2245) is pending in that body’s Environment and Public Works Committee.
USDA has raised this year’s agricultural export forecast to $134.5 billion, up $3.5 billion from the February forecast, but $2.9 billion below last year’s exports. The department’s latest Outlook for U.S. Agricultural Trade shows agricultural imports at a record $107.5 billion; however, the trade balance for 2012 is a surplus of $27 billion. Grain exports are forecast up from February indications, with increased values for wheat, rice and feed and fodders more than offsetting a reduction for coarse grains. Also up in terms of either value, volume or both: oilseeds, tree nuts, cotton and livestock, poultry and dairy. Exports to Mexico, Canada and China are raised, while exports to the European Union are down $1.5 billion due to increased grain and oilseed competition. Continued economic turmoil in Europe also is placing pressure on exports to the region. Asian markets show strong but slowing growth. “The main risk to world growth is a significant spillover of the Eurozone problem to North America and Asian financial institutions and markets,” the report said.
Committee investigates ESA settlement costs The House Natural Resources Committee this month will continue its series of full committee oversight hearings to examine how the Endangered Species Act could be improved to help species and people. The hearing, titled “Taxpayer-Funded Litigation: Benefitting Lawyers and Harming Species, Jobs and Schools,” will focus on how litigious groups use the ESA and other federal laws to hinder species recovery, jobs and societal needs like education. Committee Chairman Doc Hastings (R-Wash.) has sent several letters to the Obama administration requesting information on how much the federal government spends on ESA-related litigation. The Interior Department and the National Oceanic and Atmospheric Administration are involved in more than 200 lawsuits and legal actions concerning the ESA, according to the committee. Such lawsuits are often settled, costing taxpayers millions of dollars.
Ethanol saves consumers 29 cents per gallon of gas Ethanol reduced wholesale gasoline prices by 29 cents per gallon between 2010 and 2011, according to a study from Iowa State University. Last year, it was even higher: reducing the cost of gasoline by $1.09 a gallon. That was a record; the average savings has been 29 cents for several years. Why such a jump last year? “You remember what oil prices were last year,” explained Todd Davis, American Farm Bureau Federation crops economist. “The average oil price was $95 per barrel and that was up from $80 a barrel. Ethanol is blended in with gasoline at a rate of about 10 percent. And so what that does is just makes more gasoline available.” Ethanol production has increased each year, he added, which has kept the cost of the renewable fuel, made mostly from feed corn, relatively low. Using ethanol as an oxygenate in gasoline has benefitted consumers during tough economic times, Davis said. “When you think about how much gas you buy throughout the year, the average American family saves about $340 a year,” he said.
1940 Census, a step back in time Continued from page 1 The personal information had been anxiously awaited by the growing number of amateur genealogists trying to fill out a family tree and learn more about their ancestry. Prior to the release, the 1930 Census was the latest available. A census of the population has been taken every 10 years since 1790, primarily for the apportionment of members to the House of Representatives. However, it also provides a useful snapshot of the population of America; in 1940 it would have been a Kodak Brownie black and white photo. The population of the United States was 132.2 million then, including the territories of Alaska and Hawaii; a little more than 5 million were farmers. By the 2010 Census, the population had more than doubled to 308.7 million and there were 751,000 full-time farmers, ranchers and agricultural managers. The decline in farm population started well before the 1940 Census and was expected to continue. The Agriculture Department reported that at least twice as many
young people were maturing each year in rural areas than would be needed on the farm. The transition from horsepower to tractor power, which was still going on, reduced the need for farm labor. This was a real concern because the national unemployment rate in 1940 was 14.6 percent. There weren’t many jobs to be found in the cities to accommodate rural youth. Besides, not all were anxious to leave the countryside. Writing in the 1940 Yearbook of Agriculture, Harvard University philosophy professor William Hocking said, “The farm has an opportunity for normal family life which is still definitely superior to that of the city, in spite of rapid recent changes.” Hocking even warned that “no civilization survives when the urbanite becomes the model for all groups.” The American Farm Bureau Federation didn’t find farming entirely superior. In 1940, it sought to raise farm prices relative to industrial prices and create a fair economic balance between farmers and other groups. Sadly, Americans who filled out
Farm bill is good for young farmers Continued from page 1 which offers education, training, outreach and mentoring programs to ensure the success of the next generation of farmers, according to AFBF. Further, it increases access to capital and prioritizes the needs of beginning farmers to ensure they have access to programs like the Environmental Quality Incentives Program, “a program that is critical to farmers and ranchers striving to be good stewards of the land and trying to meet tough environmental mandates,” AFBF says.
The bill also encourages older farmers to help beginning farmers get started in the business by providing two extra years of Conservation Reserve Program participation to retiring farmers who transition their expiring CRP land to beginning farmers. “The Senate Agriculture Committee’s 2012 farm bill legislation would be very helpful to me personally and other fruit and vegetable producers in Michigan,” said LaCross. “But, more importantly, it is a good bill for young and beginning farmers and ranchers.”
the census forms in 1940 had no idea that the fighting in World War II would erase more than 400,000 of their names from the next tally, including young farmers and ranchers. The postwar years saw rapid change. Suburban living became the compromise between choosing to live in the city or rural countryside. The unemployment rate plunged as manufacturing and construction grew and the Baby Boom Generation was born. The snapshot of America taken in 1940 became quickly outdated by all these events, but its release this year gives many of us a chance to find and appreciate our connection to that difficult yet interesting time.
The official website of the 1940 Census is www.1940census. archives.gov.
Stewart Truelsen is a regular contributor to Farm Bureau’s Focus on Agriculture series of articles.
Senate moves forward on farm bill Continued from page 1 dressing the net effect of the Agriculture Risk Coverage Eligible Acres provisions to ensure a true “planted acres” approach and avoid recreating “base acres” issues that have raised equity and planting distortion concerns; and re-instituting current payment limitations and the Adjusted Gross Income provisions in current law. “Fundamentally, Farm Bureau continues to support a single program option for the commodity title that extends to all crops,” wrote Stallman. “We believe the safety net should be comprised of a strong crop insurance program, with continuation of the marketing loan program and a catastrophic revenue loss program based on county level losses for each crop. According to Farm Bureau, this approach can easily be tailored to provide a safety net that meets
regional and commodity differences while also meeting the established savings target. Catastrophic loss events are typically beyond any producer’s control and endanger the financial survivability of the farm—the type of events that in the past have prompted enactment of ad hoc disaster programs. Having a catastrophic loss program in place would protect farmers from these situations and extend benefits only when needed, rather than potentially being a supplemental source of annual income. Stallman said that after recently analyzing numbers from the Congressional Budget Office, Farm Bureau now believes it is possible to provide support at the 80 percent revenue level of coverage for all program crops and five fruits and vegetables, instead of a more limited group of crops at a lower revenue level, as AFBF originally proposed.
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State FB Links
State quota, Navigator status As of May 17, 2012 Quota states Mississippi: 199,502 member families Navigator states Montana: 16,896 member families Pennsylvania: 54,725 member families
Newsmakers
State Focus
Montana Farm Bureau skeptical on bison hearing numbers
Ohio budget appropriations include agricultural funding
2011 drought still challenges pastures, producers
Meetings were held recently across Montana by the state’s Fish, Wildlife and Parks (FWP) Department regarding an Environmental Impact Statement on actions the state should take in managing wild bison. Proposed actions include maintaining the status quo of no free-roaming bison in the state. “Although FWP has reported attendance has been balanced between for and against free-roaming bison, the truth is the vast majority of people who have attended these meetings are not happy about having wild buffalo crushing their fences, eating their hay and bringing in disease,” said John Youngberg, MFBF vice president of governmental affairs. MFBF members who attended the meetings agreed. Jim Bowman, MFBF District 7 director, said that the general feeling among most people is that introducing bison is an affront to private property rights. “Most landowners don’t have a problem if someone is putting buffalo on his private land and taking care of them. A real concern is FWP wants to introduce them, but then doesn’t want to have any responsibility taking care of them. Any costs associated with these bison would be at the taxpayers’ expense. A lot of people don’t realize that,” Bowman said.
The Ohio House and Senate approved final versions of the state’s midterm budget bill and sent it to Gov. John Kasich for his expected signature. The bill was a rare reopening of Ohio’s multi-billion dollar budget during the normal two-year budget cycle. Beth Vanderkooi, Ohio Farm Bureau Federation director of state policy, testified in support of Clean Ohio Agricultural Easements to be included in the legislation. The final version of the bill includes $42 million for the Clean Ohio fund that preserves farmland and green spaces and another $3 million for a Lake Erie protection program. “Clean Ohio was initially passed as a $400 million bond program in 2000. In 2008, voters overwhelmingly approved the renewal of the program. Ohio Farm Bureau has been a longtime supporter of the Clean Ohio program, especially the Agricultural Easement Purchase Program,” Vanderkooi said. “The Clean Ohio Agricultural Easement Purchase program has preserved more than 20,000 acres of Ohio farmland. Farm Bureau also supports the use of Clean Ohio Green Space Conservation funds for the preservation of farms that contain creeks, streams, woods or natural wetlands.”
Agricultural consultants and researchers at the Samuel Roberts Noble Foundation are encouraging producers to not be overconfident by nice spring conditions. According to the foundation, the flush of annual grasses is beginning to subside, revealing that the perennial pastures were severely damaged by last year’s drought, especially Bermuda grass pastures. The 2011 drought produced the driest four months in Oklahoma since 1921, causing complete crop losses for farmers and causing ranchers to completely destock herds, according to the foundation. The economic ramifications were as severe as the heat and lack of precipitation with an estimated $6 billion loss across the Texas and Oklahoma economies. While the Southern Great Plains experienced wetter conditions this spring than in previous years, April was still warmer and drier than average for the region. According to the U.S. Drought Monitor, parts of southwestern Oklahoma and much of Texas are still experiencing abnormally dry conditions, as are areas farther west and parts of the Southeast, especially Georgia. The Samuel Roberts Noble Foundation is an independent, non-profit institute that conducts direct operations, including assisting farmers and ranchers, and conducting plant science research and agricultural programs.
‘In My Barn’ game helps young students build math skills A new online game developed for pre-kindergarten and kindergarten students is now available on My American Farm (www. myamericanfarm.org), the popular agricultural gaming site. “In My Barn” is the 16th game created for My American Farm and is the first one built for a pre-K-K audience. Students use math skills to help Farmer Faye, a character in the game, care for her animals. As they play the game, students earn points to help them fill a grain silo and earn a stamp for a Passport to Sustainability. “In My Barn” is closely aligned with the PBS Kids Ready to Learn Math Framework, which supports STEM (science, technology, engineering and math) learning. The game also meets national standards for mathematics instruction. My American Farm, a special project of the American Farm Bureau Foundation for Agriculture, is made possible by the generous support of title sponsor, Pioneer Hi-Bred, a DuPont business.
A new communications and public relations model has been implemented by Nebraska Farm Bureau. Communications and issues management have been merged into a new department called the Communication, Strategy and Issues Management Department. Two long-time staff members will fill two new positions: Tina Henderson as the vice president, communication strategy and Craig Head as the vice president, issues management. Henderson has served as NEFB’s director of communication services for the past 15 years. Head has been in the governmental relations department for the past 14 years, most recently serving as the state director of governmental relations and regulatory affairs. Tennessee Farm Bureau Federation is merging two departments—Public Affairs and Commodity Activities—into what will now be called the Public Policy Division. Stefan Maupin, a 17-year TFBF employee, has been named the director of this new division. Maupin most recently served as associate director of TFBF’s former Public Affairs Department. Tiffany Howard will be the associate director of the new division. Howard has been with TFBF since 2007 as part of the former Commodity Activities Department as coordinator of the Tennessee Farm Fresh program. The Public Policy Division staff will also include Ryan King as associate director. King recently served as a regional field service director. Rhedona Rose, executive vice president of TFBF, will have oversight of the Public Policy Division activities and remain the lead lobbyist.
Grassroots
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Farm Bureau conference highlights safety, health Presentations covered protective equipment, farm shop safety Saving lives and improving the health of farmers, ranchers and other rural residents was the focus of the American Farm Bureau Safety and Health Network Conference May 2123, in Oklahoma City, Okla. “Farm Bureau has a long history of advocating safety and health on the farm and ranch,” said Kim Baker, AFBF program assistant. According to Baker, more than 30 participants from 12 states attended the event. “This is a great opportunity to share ideas and network with safety experts from around the country,” said Justin Grego, Oklahoma Farm Bureau Safety services director. “Everybody here at this conference has one goal and that’s learning more ways to save lives.” The conference included presentations on protective clothing and equipment, the impact of older farmers having more accidents, farm shop safety programs and first aid on the farm. “About half of all adult farm fatalities involve individuals over the age of 55,” said Dr. Deborah Reed, associate professor, University of Kentucky. “This translates into a terrible loss for the American farmer and those families that are involved.” In her presentation addressing the aging farming and ranching population, Reed said slowing down and taking more frequent breaks are
Karen Gilmore, program director at the Southwest Center for Agricultural Safety and Health, shared her organization’s efforts to teach youth about farm safety and what to do when emergencies arise. photo by sam knipp, oklahoma farm bureau
Agri-Safe Network’s Carolyn Sheridan spoke to conference attendees about head-to-toe protective equipment and how to avoid fall injuries in the workplace.
photo by gail banzet, oklahoma farm bureau
good ways to prevent accidents. “The situation is that the work still has to be done and this group has an extremely high work ethic,” Reed said. “We hope to share ideas through our network of safety and health experts to help farmers understand the consequences of accidents.”
Applications soon available for County Activities of Excellence Applications for the American Farm Bureau Federation’s 2013 County Activities of Excellence (CAE) program will soon be available on AFBF’s website, www.fb. org. The award program offers county Farm Bureaus an opportunity to share their innovative efforts to enhance their communities and Farm Bureau. The CAE program recognizes successful county Farm Bureau programs around the country. Up to 25 county Farm Bureaus will be selected to display information about their programs at the AFBF annual meeting tradeshow, Jan. 13-14, 2013, in Nashville, Tenn. The winners also receive $2,250 to cover the costs of traveling to and exhibiting at the convention. New last year, 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; 5,00112,000 members; and 12,001+ members. Last year, 125 county Farm Bureaus applied for the CAE program. Winning activities included a county crop tour; a pizza garden; a DVD to educate the public about local agriculture; a mobile exhibit; hands-on farm safety and rescue training for emergency medical services and fire personnel; and a video game. County Farm Bureau applications must be received by the state Farm Bureau office no later than Aug. 31, 2012. For a CAE application, go to www.fb.org, click on “Programs” on the right-hand side of the menu bar, then scroll down to “County Activities of Excellence.”
During her protective equipment presentation, Agri-Safe Network’s Carolyn Sheridan, emphasized head-to-toe safety. She discussed how to combat risks from loud equipment, sun exposure and working with agricultural chemicals. Having the right equipment is key, she said, but using it and storing it properly are equally important. In addition, Sheridan spoke about preventing slips, trips and falls. She gave attendees guidance in creating an action plan to diminish or even eliminate workplace hazards that could result in fall injuries. She also pointed them in the direction of the Occupational Safety and Health Administration’s standards relating to slips, trips and falls.
Karen Gilmore of the Southwest Center for Agricultural Safety and Health talked about her organization’s efforts to educate young people about farm safety and how to respond in emergency situations. The center offers a DVD about livestock safety and an interactive CD that teaches 5th and 6th graders first aid and injury prevention skills. The conference also provided an opportunity for state Farm Bureaus to share their new health and safety-related endeavors. Mississippi Farm Bureau made a special presentation about its shop safety program, while Oklahoma Farm Bureau showcased its fire safety trailer and DUI prevention effort.
Corner Post Confidence in the U.S. Food Supply 2012 — 69% 2010 — 69%
2008 — 68% 2007 — 69%
Since 2007, Americans’ confidence in the safety of the U.S. food supply has remained high, with more than two-thirds of consumers indicating they are “somewhat or very confident” in the safety of the food supply.
Source: IFIC, 2012 “Consumer Perceptions of Food Technology” survey