February 2015 newsletter by South Dakota Farmers Union

South Dakota

VOLUME XCVIII, NO. 2

HURON, SD

FEBRUARY 2015

UNION FARMER A PUBLICATION OF SOUTH DAKOTA FARMERS UNION

REAL

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Members Turn Out for 2015 Farmers Union Legislative Day

Young Producers Weekend

SDFU Celebrates a Century of Cooperative Leadership

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South Dakota Farmers Union Celebrates Schaunaman Farm Family Celebrating a century of service to South Dakota's farm and ranch families, throughout 2015, South Dakota Farmers Union will highlight a South Dakota farm or ranch family each month. In February, South Dakota Farmers Union features the Schaunaman family who farms near Aberdeen.

Farmers Union members and friends turned out Feb. 3 for Legislative Day.

“Thank you Farmers Union for always being there and letting us know where we should stand. I encourage you to continue to stay involved in the Legislative process and remain active,” said Shantel Krebs, S.D. Secretary of State, as she addressed Farmers Union members during the Legislative Day luncheon. “You can’t complain about the process if you don’t participate in the process.” ore than 50 Farmers Union members and friends put Krebs’ message into action when they turned out for the 2015 Farmers Union Legislative Day, Feb. 3 in Pierre.

Continued on Page 10

COOL Call to action National Farmers Union encourages consumers and cattle producers alike to reach out to Congress and urge them to not be influenced by foreign governments and foreign competitors and leave COOL alone. The main number to the Hill switch board is 202-224-3121. Turn to page 16 to read about recent lawsuit dismissal.

Brothers Craig, 55, and Kirk, 54, Schaunaman farm with their nephew, Chad Schaunaman (center), 42.

rothers and business partners, Craig, 55, and Kirk, 54, Schaunaman joke about their farm partnership, “Sometimes we work together and sometimes we work apart.” The third generation farmers have been farming together since the early 1980s when their dad, Don, welcomed them home to join him on the farm that has been in their mom, Hazel Wendt’s family, since the early 1900s. Their official partnership dates back to 1993 when their dad retired. Raising crops and a commercial cow/calf herd, the Schaunamans have slowly expanded their acres and herd size to support their growing families and support two employees, one of whom is their nephew, Chad, 42, who is the son of their oldest brother, Mark. “We’ve grown the operation efficiently and conservatively. We have tried not to make any rash changes or big leaps and bounds,” Kirk explains. “After our dad retired, we stayed the course.” Along with implementing technological advancements in their inputs and equipment, probably the two biggest changes facing the farm in the last 22 years was their transition to no-till farming and Craig accepting President Obama’s appointment to serve as State Executive Director for the Farm Service Agency in 2009. Even though Craig works off the farm five days a week, he continues to participate in daily farm decisions remotely. To learn more about the Schaunaman Family Farm, turn to page 12. By Lura Roti, for South Dakota Farmers Union

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News, Events and more online now! www.SDFU.org

Around the State with South Dakota Farmers Union

5% - 20% OFF Help Us Celebrate 100 Years! MERCHANDISE! 10% OFF GIFT CARDS!

Thank You South Dakota Farmers Union Hello to you all, We want to thank you for your generous gifts of groceries. The Christmas season has come and gone and your thoughtfulness is very much appreciated. You have given basic items that many people need and will appreciate. How great is that!! Debbie – Safe Harbor Assisting women, children & more Aberdeen, SD

Send Us Your Email Address sdfu@sdfu.org COOK’S CORNER

Do you have old photos, programs or other Farmers Union swag? Please share it with us! Give your items to state staff during any Farmers Union event and we’ll use them in a display during our 2015 State Convention Dec. 9. If you want the item returned, please label with your name, phone number and mailing address. We need all items by Dec. 1.

To celebrate Farmers Union’s Centennial, we will be releasing a cookbook and we’re calling on Farmers Union members to contribute. Please send your favorite recipes to khofhenke@sdfu.org or submit them through our website, www.sdfu.org. Each month we’ll select one recipe to feature in the Union Farmer’s Cook’s Corner.

Mexican Soup

Submitted by: Becky Casper, FUSA employee

INGREDIENTS: 2# ground beef 2 large onions (about 1-1 ½ cups) 1 (28 oz) can stewed tomatoes, NOT drained 1 (10 oz) can Ro-tel tomatoes, NOT drained 1 (15 oz) can red kidney beans, NOT drained 1 (15 oz) can whole kernel corn, drained 1# Mexican Velveeta cut into chunks

Submitted by: Vicki Soren, Kingsbury County

DIRECTIONS: Brown ground beef and onions. Drain well. In a large pot combine ground beef, stewed tomatoes, Ro-tel tomatoes, kidney beans and corn. Warm through but don’t boil. Add cubed cheese and stir over low heat until cheese is melted and blended. Serve immediately. Prep/cook time: 30 minutes. Note: Ro-tel comes in varying levels of “hot” as does Mexican Velveeta. Choose the level you like best. Editor’s Note: This is great with corn bread.

CALL KARLA AT 605-352-6761 EXT. 114 FOR YOUR CUSTOMER NUMBER AND ORDER OVER THE PHONE FOR GREAT DISCOUNTS!

CLIP AND SAVE CALENDAR FEBRUARY 16 President’s Day, State Office Closed 19-22 College Conference on Cooperatives, Minneapolis, MN 20-21 Women in Blue Jeans, Mitchell 24 Sale Barn Coffee, Huron Continental Marketing (Bales), Huron MARCH 5-6 State Board Meeting, Huron 9 State FFA Officers visit SDFU 11-12 REAL (Session 3), Sioux Falls 13 Lemmon Farm Show, Lemmon 14-17 NFU Convention, Wichita, KS 20-21 AG Day @ Washington Pavilion, Sioux Falls, SD 28 Educational Meeting, Pierre APRIL 3 Good Friday, State Office Closed 6 State Camp Planning, Huron 11 District III Meeting, Quality Inn @ Watertown

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Farmers Union Members get

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FEBRUARY 2015

UNION FARMER

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Jim Peterson is a Voice for Farmers in Pierre

eviewing the current legislative roster, Jim Peterson says, considering agriculture is South Dakota’s No. 1 industry, there aren’t enough farmers in the line-up. “Farmers have a direct knowledge of how policy impacts their farm and other farmers throughout the state. Which is why, I don’t care what political party they are in, if a legislator has an agriculture background, I am here to support them,” says Peterson who has served in the South Dakota State Legislature representing Dist. 4 since 2001. When Peterson uses the term, FARMERS, he’s Jim Peterson is a lifetime Farmers referring to folks who Union member have skin in the game. who farms near Farmers who rely on the Revillo and has land to provide for them served as a South and their families – not Dakota Legislator just individuals who since 2001. own land that is involved in production, but earn their living elsewhere. Which is the reason Peterson values Farmers Union and organizations like it. “Showing up in Pierre makes a difference. One of the most important functions of farm organizations like Farmers Union are the lobbyists they have in the Capitol. Farmers have a lot of clout in Pierre because we represent the state’s number one industry,” says the lifetime Farmers Union member. He shares an example as recent as this summer. “During the highway needs study, some city legislators wanted to tax red fuel used in ag machinery to help pay for road repairs. Farmers Union and other agriculture organizations lobbied against it and we were all happy to see that taxing red fuel was not in the Governor’s final recommendation,” Peterson says. A third generation farmer, Peterson and his son, Heath, raise corn, soybeans and wheat. For years, Peterson raised a commercial cow/calf herd and operated a 600-head feedlot. Now that Heath has taken over most of the day-to-day farming operations, he has converted the cattle feed yard into a custom, buffalo feedlot operation. Peterson got his start farming when he rented land from his grandma as a teenager. Farming those 50 acres paid his way through college. “I was able to graduate without any debt – but college was a lot less expensive in those days!” After college, Peterson spent a few years teaching science at Parker High School. His annual salary was $5,000. “When dad gave me the opportunity to come home and farm, it was an easy decision,” says Peterson of returning to Revillo to farm in the late ‘60s. When he took over the farm it was 700 acres. Over the years, he built it to its current size of 5,000 acres. Peterson and his wife, Jane, raised four sons: Heath, Timothy, Erik and Scott on the farm. Looking back, he says the farm provided the perfect platform to teach his sons about hard work and responsibility. “I think farming is the best life there is,” Peterson says. “Growing up on the farm, our boys were all involved in chores. They knew they could be involved in extra-curricular activities as long as they got their farm chores done.”

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He shares a story about his oldest son, “I think farming is the best life there is.” Scott, driving a truck Jim Peterson load of pigs to a Sioux Falls auction and backing the stock trailer up to the chute. “It was pretty impressive because he was 14 and only had his learner’s permit. My wife was with him, of course.” Today, his sons all own land on which they raise crops or livestock, and they are also self-employed agri-businessmen living in South Dakota. Called to the Capitol Peterson’s interest in politics was sparked when Gov. Dick Kneip appointed him as the agriculture representative to the State Board of Environmental Protection (i.e. Water & Natural Resources Board). “We were working on rules for feedlots, so I was traveling quite a bit speaking about what the board wanted to accomplish and getting farmers’ view points,” he recalls. That experience led him to chair a local committee of farmers who wanted to build an ethanol plant. He became the founding president of Northern Growers Cooperative, which is the principal owner of the POET® ethanol plant in Big Stone City. “When I ran for the House, it was my goal to promote ethanol and biodiesel in Pierre. Development of processing plants within our state has been so important. The ethanol industry alone has improved the local basis – the same goes for soybean processing,” says Peterson, who is an owner in five different ethanol plants, as well as South Dakota Soybean Processors in Volga. Throughout his years in service, he has introduced several bills to help increase the use of ethanol throughout the state, as well as provide incentives for processing plants; such as the bill he introduced

Jim Peterson is surrounded by his family: sons, Heath Peterson, Timothy Peterson, Erik Peterson, Scott Peterson, and wife, Jane Peterson.

that would eliminate sales or use taxes for expansion of the S.D. Soybean Processors plant in Volga. Peterson has also been an advocate for using the ag productivity method for assessing ag land value versus land sales. “We have to look at what other states are doing and try and adopt policy that will work best for farmers here in South Dakota.” By Lura Roti, for SDFU

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FEBRUARY 2015

UNION FARMER Youth Learn Legislative Process during 3-Day Trip to Pierre

hen you’re 15, Farmers Union events,” Geyer says. politics can be The reward trips coincide with the confusing. South Farmers Union mission and triangle – Dakota’s Legislature is now Cooperation, Legislation and more understandable for the Education. Their first year youth can teens who earned their way to attend State Leadership Camp at half attend the Farmers Union Two price, the second year is the Pierre Year Legislative Award Trip, Legislative trip, the third year is a trip Feb 3-5, 2015. to Minneapolis to learn about “Until we made this trip to Cooperatives and fourth year Pierre, we didn’t understand students can earn a trip to the what the Legislators do here National Farmers Union Camp in exactly; it’s been so interesting Colorado. The fifth year is their to see how it works,” said Torchbearer award, the highest honor Sammi Murtha, 15, a freshman bestowed upon youth in Farmers at Parkston High School. Union. Torchbearers earn a trip to the Her friend, Jennifer National Farmers Union Convention. Hanson, adds; “It’s one thing “These trips offer incentive as to read about the Legislative Front row (left to right): Doug Sombke, Groton, SDFU President; Jackie Nuss, well as valuable opportunities for process in school, but by being Tripp; Taylin Montague, New Underwood; Joseph Nugteren, Canistota; Bree students,” Geyer says. here in the Capitol we get to Weidenbach, Canistota; Governor Dennis Daugaard. Second row (left to right): Jonah Murtha, 16, wholeJennifer Hanson, Britton; Sammi Murtha, Dimock; Nathan Linke, Woonsocket; see it live,” says the heartedly agrees. “I’ve learned a lot Britton/Hecla High School Aaron Linke, Woonsocket. Third row (left to right): Dalton Gerlach, Stickney; about cooperatives and cooperation Jonah Murtha, Dimock; Rowdy Thompson, New Underwood. Back row (left to in general,” explains the Parkston freshman. right): Lisa Snedeker, Woonsocket, Chaperone; Bonnie Geyer, Huron, Education Like many youth who Director. High School Sophomore. become involved in Farmers The group was able to join other camp,” Montague, a freshman at New Union Youth Programs, Murtha lives in a Farmers Union members in the annual Underwood High School, explains. rural community and enjoys the opportunity Farmers Union Legislative Day activities, Along with teaching youth about how Farmers Union gives her to meet youth from attend committee hearings, observe floor their state’s government works, the across the state and learn about topics like action in both the House and Senate and Legislative Youth Trip is designed as one of leadership and cooperatives, which are not meet with lobbyists, pages and interns. The four reward trips youth can earn throughout typically taught in school. Her friend Taylin group also visited the Law Enforcement their high school years, explains Bonnie Montague, 14, agrees. Training Academy, the World War II, Geyer, Farmers Union Education Director. “Farmers Union events bring us together Vietnam and Fighting Stallions Memorials, “Within the youth program there are with other people we would not have an the Discovery Center and toured the Capitol. five levels of achievement. Students earn opportunity to meet otherwise. I live in New To learn more about Farmers Union their way to each level through community Underwood and these girls live in eastern Youth Programs, contact Geyer at (605) 352service projects, essays and participation in South Dakota – we became friends at 6761 ext. 125.

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UNION FARMER Inside Scoop on S.D. Farmers Union February’s REAL Workshop

armers Union Rural Economic and Leadership Development Program (REAL) recently completed its second workshop in Pierre Feb. 2-3, 2015. This adult leadership program is open to Farmers Union members across South Dakota with the purpose of improving leadership and communication skills. “Whether you are interested in serving as a board member, thinking about participating in local or state politics, or taking the next step personally or professionally, REAL is designed to help individuals advance their leadership and communication skills,” explains Erin Wilcox, Rural Development Director. Throughout the year, REAL hosts three two-day sessions. Each with a unique focus, the sessions are packed with top notch presenters and industry experts covering topics ranging from identifying your personal strengths and how to best implement those strengths when working with others, to understanding policy development and how to effectively communicate with the media. “Each session is carefully developed to help participants grow personally and professionally, improve their leadership and communication skills, and become more involved in their communities,” Wilcox says. “We also see REAL as an opportunity for small businesses in rural communities who may not have the resources to provide leadership and business development training to their employees.” REAL is limited to 20 class members. If you are interested in being a part of the 2015-2016 class, contact Wilcox at ewilcox@sdfu.org or call her, 605-352-6761 ext. 118.

Meeting the Communication Expections On a recent skiing trip with his family, John Beranek met a corporate banker from New York. They got to visiting and the conversation came around to communication. “He said the most common problem with new trainees is they don’t know how to be the right kind of communicator,” Beranek shares with the REAL attendees during the Feb 2-3 conference in Pierre. A motivational speaker, corporate consultant and executive coach, Beranek led two REAL workshops, one that focused on

working with media (to read more on this topic, visit the Union Farmer Archives at www.sdfu.org and read p. 16 of the Feb. 2014 issue). “The area which most young leaders have difficulty figuring out is how to communicate effectively,” Beranek says. He outlined three ways leaders can overcome their communication obstacles to communicate effectively. Slaying the invisible Dragons: The biggest John Beranek communication challenges, Beranek believes, often come from within. “Usually a bad experience from your past that becomes bigger in your mind than it truly is, and that often leads to personal self doubt,” he says. Beranek encouraged attendees to identify the experiences that are holding them back and address them. “Whatever it is, the invisible dragons or negative experiences are holding you back from communicating effectively, whether that is making a sales call or speaking up in front of a group.” Countering the negative: Dealing with people comes with its share of negative attitudes, and this, Beranek explains, can surprise young leaders. “Leaders can have the misperception that if they lead well and do what’s right, everyone around them will react in a positive way. This is simply not possible,” he says. He explains that the best way to effectively communicate, even when folks don’t respond in a positive way, is to predict behavior. “When we predict behavior, all of a sudden we take control of the situation,” Beranek says. “We can choose to present information in a different way to avoid negative reactions.” He shares examples gleaned from his years as an executive coach – and explained how beneficial talking through a tough conversation first helps you predict the response the other person will give. “This helps you prepare your reaction and not to be triggered in a negative way by others’ behaviors.” Beranek’s discussion on communication ended with a discussion on the value leaders can derive from strategic thinking. “Spending the time to strategically think about your communication will make Continued on Page 14

What Participants have to say During the second session of REAL held Feb. 2-3, 2015, class members met in Pierre for two days of exceptional speakers including: John Beranek and Joy Smolnisky (read details about their seminars above and on page 14). The group also had an opportunity to meet with their legislative representatives, representatives from South Dakota Public Utilities Commission and South Dakota Department of Environment and Natural Resources, as well as take a guided tour of the Capitol. Below REAL participants share their thoughts on what they have gleaned from the program. “I learned about Farmers Union from a friend in North Dakota and discovered the REAL program on South Dakota Farmers Union’s Website. It looked like a good opportunity. Overall, I’ve been Kim Brendsel impressed by the great line-up of speakers. The topics they covered are relevant. During this session I enjoyed learning how the government works.” Kim Brendsel, Administrative Assistant for Engineering and Operations at Sioux Valley Energy in Colman

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“REAL has exposed me to different people and areas of expertise, not only in agriculture, but also in state government. This has given me the opportunity to expand my knowledge and Josh Pesek understanding of leadership and business throughout our state.” Josh Pesek, Program Technician for Farm Service Agency, Tyndall

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“REAL has been a great opportunity to gain training in areas that my employer doesn’t cover. I’ve enjoyed the networking opportunity as well. By networking with Ty Brown other participants, I’ve been able to gain a better understanding of other industries in the state.” Ty Brown, Ag Business Banker for American Bank & Trust, Mellette

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UNION FARMER Ideas & Inspiration Shared during Young Producers Event in Deadwood them questions,” Moen explained. She and her husband also enjoyed networking with other producers. “This event opened up communication with many like-minded people,” she said. South Dakota Farmers Union hosts two Young Producer Events each year. To learn more, contact Wilcox at ewilcox@sdfu.org.

Men Left to Right: Adam Schindler, BJ Richter, Jackson Rhodes, Brandon Komes, Peter Sobotka, Lance Perrion, Patrick Moen, Jason Ries, Brian Fossum, and Kyle Alfstad. Ladies left to right: Rachel Kippley, Shelby Cammack, Paige Komes, Mauri Sobotka, Sarah Hegge, Suzanne Moen, Laura Ries, Stephanie Fossum and Renae Alfstad.

ike most agriculture producers, B.J. Richter values the independence farming provides. However, Richter is the first to admit that the independence this career gives him can be isolating if he’s not careful. “I enjoy working the long hours and I’m proud of what we produce, but this way of life can make your world Jason & Laura Ries pretty small if you let it,” said the second generation Hecla farmer. “It is imperative to get off the place and network with other producers in order to keep up with what is going on in the world outside our family’s f a r m i n g operation.” Richter made a point to leave his farm Jan. 3031, 2015, to Suzanne & Patrick Moen attend the Farmers Union Young Producers Event held at The Lodge in Deadwood. He was among 20 other Farmers Union members, 40 and younger, who took advantage of the free event developed to provide timely information and a networking opportunity for young agriculture producers from across the state.

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“Most farmers and ranchers don’t have a lot of time to dedicate to personal and professional development, but like all businesses, it is important to keep tabs on what is going on in government and industry,” explained Erin Wilcox, Rural Development Coordinator for S.D. Farmers Union. The speaker line-up included: South Dakota Secretary of Agriculture, Lucas Lentsch; Aaron Franzen, Asst Prof, Precision Agriculture Agricultural and Biosystems Engineering at South Dakota State Dr. Oedekoven University gave a presentation on drone technology in agriculture; South Dakota State Veterinarian, Dustin Oedekoven; Motivational Speaker, Malcom Chapman; State Farmers Union President, Doug Sombke; Marketing presentation by DuWayne Bosse, co-owner of Bolt Marketing LLC; Tax preparation and New Tax Laws for Ag producers presented by Jeff & Rachel Kippley and Farm Bill discussion with FSA representatives. “The world we live in is ever-changing. The information I gleaned during this event was immediately applicable and gave me a new way to look at things,” Richter said. Suzanne Moen would agree. Moen and her husband, Patrick, are in the process of transitioning their current hobby farm into more of a full-time operation. “The tax prep and farm bill topics are ones we needed more information on, so it was nice to actually visit with the presenters and ask

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2015 Market Outlook with DuWayne Bosse co-owner of Bolt Marketing DuWayne Bosse is one of two Farmers Union members to share insight with producers during the Young Producers Event. Along with his marketing business, Bosse farms with his family near Britton. He is a second generation Farmers Union member. “It’s nice to have members involved with programming and giving back to the organization,” said Erin Wilcox, SDFU Rural Development Director. Along with Bosse, members, Jeff and Rachel Kippley, who operate a farm as well as an H&R Block in Aberdeen, also presented. Q: Overall, what is your advice for South Dakota crop and livestock producers when you look at the 2015 markets? A: Everyone has an opinion of where prices will go, but at this time prices are fairly low, so producers don’t want to lock in prices at this point in time. I encourage producers to implement a strategy where they buy different option strategies that will give them flexibility to protect cash flow and take full advantage and sell aggressively if prices go up this spring. Q: Is there anything optimistic about the markets? A: The most optimistic thing about the current markets is how bearish everyone is right now. With everyone on one side of the boat, it could tip over. At this point, everyone has penciled in record crops for 2015 – but we have a long growing season ahead of us. Drought isn’t a problem in the winter, but it wouldn’t take much, if the right forecaster said it looked hot.

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UNION FARMER Calling All Students! Scholarship Season is Here! Supporting our youth in achieving success through scholarship is a strong focus of Farmers Union. If you or someone you love is ready to pursue a post-secondary education, encourage them to apply for the scholarships we highlight here.

CHS Foundation Now Accepting Scholarship Applications High school students are invited to apply for a $1,000 scholarship from the CHS Foundation, the major giving entity of CHS Inc. (NASDAQ: CHSCP), the nation's leading farmer-owned cooperative and a global energy, grains and foods company. The CHS Foundation will award more than 300 scholarships, 100 of which will be given to high school students pursuing agriculturalrelated degrees at colleges and universities across the country. Students pursuing a STEM (science, technology, engineering, math) field of study with an interest in agriculture will also be considered. "Last year, CHS awarded 240 scholarships to agriculture students at 80 colleges across the United States," says William Nelson, President, CHS Foundation and Vice President, CHS Corporate Citizenship. "In 2015, CHS will build on its commitment to developing future leaders by awarding more than 300 scholarships to agriculture students throughout the United States and Canada." The high school scholarship application deadline is April 1, 2015. An independent, external committee will select scholarship recipients based on essays, transcripts and reference letters. For eligibility information and application forms, visit www.chsinc.com/stewardship. In addition to the 100 high school scholarships, CHS will award more than 200 scholarships to students currently enrolled in an agricultural-related degree at partnering two- and four-year colleges throughout the United States and Canada. Application deadlines vary by university. For more information and list of partnering universities, visit www.chsinc.com/stewardship.

Farmers Union Insurance Agency Accepting Applications for $25,000 in Scholarship Dollars South Dakota Farmers Union Insurance Agency is accepting applications for the 2015 “Insuring a Brighter Tomorrow Scholarships”, which awards $1,000 scholarships to 25 high school seniors from South Dakota who plan to attend post-secondary education at a South Dakota college, university or technical school. Scholarship applications are open to Farmers Union Insurance Policyholders, South Dakota Farmers Union members, Friends of the SDFU Foundation (defined as a contribution of $25 or more during the past year) or a participant in any South Dakota High School Activities Association (SDHSAA) sanctioned activity. Application deadline is April 15, 2015 Applications can be found online by visiting www.sdfufoundation.org or at your local Farmers Union Insurance Agency. Applications must be post marked by April 15, 2015. Return Materials to: Farmers Union Insurance Agency, Attn: Wayne Bartscher, PO Box 1388, Huron, SD 57350. For more information, e-mail wbartscher@sdfu.org.

Farmers Union Industries Foundation’s Stanley Moore Scholarship program is now accepting applications. Scholarships are only available to Farmers Union members and their children in Minnesota, Montana, North Dakota, South Dakota and Wisconsin. It is open to high school seniors, college students or non-traditional students seeking funding to attend a two- or four-year accredited college or university or technical school for any area of study. The award criteria will be based on student’s academic record, social and community activities. Written essay or oral presentation outlining your personal and professional goals and your involvement with Farmers Union. Priority will be given to ag-related study for the $1500 scholarship amounts. Finalists will be required to participate in a phone interview. Application deadline is April 20, 2015. For more information and application forms please visit sdfu.org/education/scholarships. About Stanley Moore Stanley Moore was born into two prominent Farmers Union families, the Moores and the Talbotts. As a young boy, he traveled with his grandfather, C.C. Talbott, a principle organizer and the first president of the North Dakota Farmers Union. Stanley later held that same position from 1975-1987. In addition, Moore held many leadership positions throughout his lifetime, including serving as vice president of National Farmers Union from 1980-87; chairman of the National Farmers Union Insurance Companies (NFUIC) board from 1975-95; and NFUIC’s chief executive officer from 1987-89. Moore was a man who provided great vision and leadership in both public policy and financial matters. He brought success to all facets of the organization because of his business savvy, people skills and his philosophy of service. Moore was a strong advocate of education and his scholarship provides a lasting memorial in honor of his achievements and dedication to Farmers Union.

Check out http://nfu.org/education/scholarships for even more scholarship opportunities for Farmers Union Members and their children!

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FEBRUARY 2015

UNION FARMER Consolidation of the Global Seed Industry: Bad News for Family Farms

hether it be the lack of a competitive market environment for farmers to sell their products, or fewer choices in the cereal aisle of the grocery store, concentration within agribusiness affects us all. From livestock and dairy to fertilizer and transportation, substantial consolidation has occurred throughout many areas of the agricultural sector over the past 30 years. The commercial seed industry is no exception. Continued consolidation within the seed industry is bad news for family farms for a number of reasons. A big consequence of continued mergers and consolidation is that seed diversity will continue to decrease. This means diminished overall seed variety as well as reduced availability of non-patented seed varieties. As industry giants continue to patent seed varieties and genetic traits, farmers have little choice but to purchase new seed each year. Those who save seed are increasingly facing legal consequences and as a result, seed saving practices continue to decline. In the landmark 2013 case Bowman v. Monsanto, the Supreme Court unanimously ruled that Indiana farmer Arthur Bowman violated U.S. patent law when he planted a second generation of Monsanto’s Roundup Ready soybeans which he had purchased from a bulk grain bin. National Farmers Union filed an amicus brief in the case, supporting Bowman and standing with family farmers on this issue. Over the past few decades, farmers have also had to cope with a relentless increase in seed prices. As heavy consolidation continues within the industry, these increases have become more pronounced. Even more concerning is that as the largest firms expand their portfolios to include not only seed companies, but pharmaceutical and chemical companies as well, they increase their control across the food system as a whole. Ultimately, continued consolidation means less control for farmers and a decrease in the vitality of rural communities. The global seed industry as it is today began to take shape in the 1990s. During the latter part of that decade, the acquisition of smaller seed companies by larger ones began to pick up speed with the “Big Six”, Monsanto, DuPont, Syngenta, Bayer, Dow, and BASF emerging at the top of the heap. Often occurring quickly, these acquisitions were frequently convoluted and not well-

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covered by mainstream media outlets. Add to the equation that the goal of the Big Six is not only to buy out other seed companies, but to acquire biotechnology research and development companies as well, and connecting the dots can get rather confusing. Unfortunately, quality investigations into global seed acquisitions have been few and far between. To help sharpen the picture Phil Howard, a Professor in the Department of Community Sustainability at Michigan State University, thoroughly investigated these acquisitions authoring “Visualizing consolidation in the global seed industry: 1998-2008”, a comprehensive article accompanied by a number of useful information graphics. By documenting all these acquisitions in one place, including information detailing who made each acquisition and what type of company was being acquired, Howard has done much of the detective work for us. He has since updated the information graphics to include all acquisitions through 2013. "Not surprisingly, acquisitions have continued,” says Howard. “Despite the economic downturn since the last version of these graphics were released in 2008, there have been more than 70 seed company acquisitions by the top eight firms, as well as a number of biotech company acquisitions and joint ventures. Limagrain/Vilmorin in particular has picked up the pace of buyouts. It remains far behind the top 3 firms in market share, however.” Those top three firms, Monsanto, DuPont and Syngenta now control over half the global seed market, up from 22% in 1996. Cross-licensing agreements, which take place on a regular basis between the Big Six, further complicate the issue. These agreements, in which the largest chemical/seed companies share genetically engineered traits with one another, do not involve any actual change in ownership. This means that the modern day seed industry is likely even more consolidated than is reflected by looking only at merger and acquisition activity. Just as importantly, these cross-licensing agreements are rarely an option for smaller seed companies. According to Howard, since 2008, “[t]he Big Six chemical/seed companies have increased their cross-licensing agreements to share genetically engineered traits, strengthening the barriers to entry for smaller firms that don't have access to these expensive

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technologies." As additional acquisition opportunities dwindle in North America, the largest seed companies are shifting their collective gaze toward the Global South. According to a recent study conducted by the ETC group, a nonprofit dedicated to monitoring corporate concentration, the scramble is on to acquire seed companies based in Africa. DuPont Pioneer is leading the way in South Africa, purchasing the country’s largest seed company, Pannar Seed, in 2013 despite antitrust concerns raised by numerous parties. Syngenta has also begun investing in Africa-based seed companies, acquiring MRI Seed Zambia in 2013, a leading producer of white corn seed in Zambia. More acquisitions will most certainly follow. This has already led to the strong discouragement of seed saving practices, which are still widespread in Africa. Looking forward, experts predict that these aggressive acquisitions will continue. Within the next few decades, it appears increasingly likely that the Big Six will consolidate into the Big Two or Three. These “mega acquisitions” would further solidify the disproportionate amount of control that few multinational seed/chemical/ a pharmaceutical corporations have over the choices available to farmers, and ultimately, to us all. Now, more than ever, it is essential to continue pushing for improved enforcement of federal anti-trust laws pertaining to agribusiness concentration. A congressional investigation of monopolistic business practices and the growing concentration of ownership in the agricultural sector is past due. Just this year, Monsanto, the largest chemical/seed company on the planet, initiated talks to acquire Syngenta, the world’s third largest. This time Syngenta declined. Without putting further pressure on federal and state regulators to protect family farms from non-competitive business practices, things may play out differently next time. Additional information graphics regarding consolidation in the global seed industry can be found at Dr. Howard’s website: https://www.msu.edu/~howardp/ seedindustry.html. Provided by Zachary Herrnstadt, Government Relations Associate, Wisconsin Farmers Union

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UNION FARMER Prices Paid for Corn and Soybean Seed

Petoseed (1995)

Genecorp (1994)

Hungnong Seminis ChoongAng

Agroceres

Precision Planting

Monsanto

Holdens

InterstateCanola

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FEBRUARY 2015

UNION FARMER 2015 South Dakota Farmers Union Legislative Day The day’s agenda included sitting in on Committee Meetings, meeting with Legislators, attending a Senate Session and touring the State Capitol. During the Transportation Committee meeting, members got to be in on the first hearing of the Governor’s Transportation Bill and had the opportunity to listen to Matt Sibley, S.D. Farmers Union Legislative Specialist, testify before the committee on behalf of the bill and share the organization’s concerns over the fact that counties and townships are not adequately funded through the current bill. “This day provides our members with the opportunity to see the Legislative Process in action and, for younger members, it’s a chance to actually see how it all works,” said

Matt Sibley, SDFU Legislative Specialist testifies during the Transportation Committee Meeting.

Doug Sombke, S.D. Farmers Union President. Exposure to the Legislative process is the reason Lake Area Technical Institute’s Agriculture Instructor, John Brennan, brought six of his students to the Legislative Day. “This is a good way for them to see how government works and become a part of the process,” he explained. “Farmers Union Legislative Day not only allows them to see the process first hand, but they get to meet with the people who are actually making the

Continued from Page 1

Students from Lake Area Technical Institute joined in on Farmers Union Legislative Day activities.

laws.” Commodity Merchandising major, Abbey Kittelson, appreciated the opportunity, saying she believes all citizens should have a clear understanding of the political process in their state. “In order for our country to be run by its people, its people need to know how the government is run. I’m glad for the opportunity Farmers Union gave me to learn more about this.” Webster small grain farmer, Greg Pesall, who also owns a cattle trucking business, said after attending a Farmers Union Fly-In in 1998, he Abbey Kittelson became a believer in grassroots, citizen involvement. “It’s organizations like Farmers Union who keep

rancher leaves his Lemmon ranch to participate in Farmers Union Legislative Day. “Everyone complains about government, but they don’t do anything. By showing up here today we are demonstrating that Greg Pesall we are listening to what is going on in Pierre,” Lynn Frey said. Providing a voice for South Dakota’s family farmers, ranchers and rural communities is a large focus for South Dakota Farmers Union, and the reason Tabor farmer, Terry Sestak, joined Frey and the other members for Legislative Day. “It’s important that we take the time this one day to show support and interest in the process and show that Farmers Union

Transportation bill is introduced by Nathan Sanderson (on right), Governor Daugaard’s Director of Policy and Operations.

members will let our voices be heard,” Sestak said. During Legislative Day, Farmers Union recognized Rep. Gary Cammack and Sen. Chuck Welke with an award for their leadership on issues of importance to family farmers, ranchers and rural communities.

Rural Lobbyist

The Mike Vehle, Chair of the Transportation Committee

Shantel Krebs, S.D. Secretary of State

FEBRUARY 2015

information about agriculture flowing to the people of our nation who need to understand that agriculture isn’t just something you look at as you drive down the road. It is an industry that supports many people who help feed everyone else,” Pesall said. “People need to know where their food comes from and the people who grow it – that includes our Legislators.” Lynn Frey agreed with him. For several years now, the western South Dakota

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Get South Dakota Farmers Union’s Legislative update sent right to your inbox each week during the session. Stay informed, get insight into bills that matter to you and your operation and be an informed voter. Email Karla Hofhenke, at khofhenke@sdfu.org

It’s easy and best of all it’s FREE! WWW.SDFU.ORG

UNION FARMER More Photos from South Dakota Farmers Union Legislative Day

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FEBRUARY 2015

UNION FARMER Serving our Family & Greater Community of South Dakota Agriculture B rothers Craig, 55, and Kirk, 54, Schaunaman have farmed together since they were kids. In 1993, the brothers took over their family’s farm when their dad, Don, retired. Although their daily routine was interrupted in 2009 when Craig was appointed by President Obama to serve as the State Executive Director for Farm Service Agency, the crop and livestock farm near Aberdeen continues to run smoothly with Craig working off the farm five days a week. “We’ve all been here working together long enough that we know what needs to be done,” Kirk says. “And we are fortunate that our nephew, Chad, has been working on the farm since he was a young teen and our other employee has worked here since he was 14 – we all clearly understand how our operation works and what needs to be done,” says Craig, adding that no matter where he is in the state, he’s in daily phone and text communication with the farm. He jokes, “Some days they probably wish my phone would die.” Looking back on their years farming together, the brothers say even though they have expanded both their crop and livestock

“We have grown slow and steady. Don’t get me wrong, we’re in a business that just happens to be a family business. Like every business, every decision we make is based on whether or not our operation will remain sustainable.” Kirk Schaunaman operations, not a whole lot has changed since they took over, other than the standard improvements in input and equipment technologies which have improved yields and their conversion to no-till farming in the mid1990s. They both attribute the ability to expand their farm to the labor-saving technology – not to mention its environmental benefits. “No-till has improved our soil health, as well as greatly reduced soil erosion,” Craig says. “I vividly remember in 1988, which was a very dry year, seeing our black top soil just blow. There’s nothing worse for a crop farmer to see than black dirt blow.” Conservative is the term the brothers use to describe the farm’s expansion over the years. Today the farm helps support the

FEBRUARY 2015

brothers’ families: Craig, his wife, Carolyn, and their two children; Kirk, his wife, Kim, and their three daughters; as well as their nephew, Chad, his wife, Mysty, and their two children; and another employee, Levi Anderson, and his children. “We have grown slow and steady,” Kirk explains. “Don’t get me wrong, we’re in a business that just happens to be a family

L to R: Kirk and Craig Schaunaman on their Aberdeen farm.

business. Like every business, every decision we make is based on whether or not our operation will remain sustainable.” Since the beginning, everyone works together in all aspects of the farm, with Craig taking the lead on the grain and marketing side of the operation and Kirk taking the lead on the cow/calf herd. “When it comes to the farm work, we all do everything. But Kirk and I do split up some decision making,” Craig says. “Once a guy asked me which bull a certain calf was out of and I said, ‘Check Mark,’ because Kirk sent me to the bull sale with a catalog full of check marks and told me I could only bid on the bulls he marked.” Being good neighbors Listening to the brothers visit about growing up together on their family’s farm near Aberdeen, it becomes evident that along with caring for land and livestock, the Schaunaman family places a lot of stock in family, 4-H and giving back to the greater community of agriculture. “We were raised to be communityminded,” Craig says. “I always felt I was raised to be a part of our community.” Their parents served on cooperative and community boards and the entire family was active in Farmers Union and 4-H. Now that Don and Hazel are in their late 80s, they have passed the torch to the next generation and their sons eagerly continue the family tradition of service. With their own children, they are actively involved in 4-H. They attribute the youth

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organization with enhancing their own and their children’s work ethic, sense of responsibility and community involvement. “Whether it’s responsibility for your own projects or the responsibility 4-H gives youth to set a good example for others and giving back to the community, the organization has made us accountable for all these good things,” Kirk says. Along with 4-H, the brothers have been actively involved in promoting South Dakota agriculture through involvement in several agriculture organizations on the local, state and national level. It takes a careful balancing act to farm full-time and actively participate in agriculture policy and support industry organizations, Kirk explains. He says this is one reason he and his family are Farmers Union members. “As full-time farmers, we can’t be everywhere we need to be when policy that impacts our livelihood is being discussed. This is why Farmers Union is so

important. It is a grassroots organization that speaks on our behalf. If we have ideas or concerns, Farmers Union carries these to the decision makers on the state or national level.” Currently, Kirk serves on the Brown County Farmers Union Board. Along with Farmers Union, Kirk was in Class 1 of South Dakota Ag & Rural Leadership and serves as a delegate for South Dakota Wheat Growers. Craig served 10 years in the South Dakota State Legislature; a role he says led to his current position with FSA. In this position, he oversees the administration of all farm programs associated with the new farm bill, as well as the state’s overall budget. “I feel my past experience in the legislature, as well as experience on our family farm, prepared me for this role,” Craig says. “Some people don’t enjoy policy, but Kirk and I were raised to be involved and give back.” By Lura Roti, for South Dakota Farmers Union

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UNION FARMER 2015 South Dakota Farmers Union Legislative Update

t the onset of the 90th Legislative Session, it was commonly understood that infrastructure funding was going to be a hot button issue. While it certainly has lived up to the label, other issues have surfaced through the numerous committee hearings in both the House and Senate. At this point in session, legislators have begun to put the administrative issues behind them and address the challenges facing the state of South Dakota. Below you will find a brief summary of just a few of the issues that South Dakota Farmers Union is following. Keep COOL- House Bill 1055 has been amended. During the first weeks of Legislative Session in South Dakota, it is normal to address primarily administrative issues. This includes what are called Red Tape Bills. These bills are used to eliminate parts of statute that are deemed to be unnecessary, outdated or unclear. Most often these bills are passed unanimously without debate. However, recently a Red Tape Bill supported by the Department of Agriculture was introduced to the House that had somewhat troublesome language, or rather, lack of language. House Bill 1055 sought to remove the language from 38-1-38 pertaining to the requirement of country-of-origin-labeling (COOL). According to the Department of Agriculture, this repeal of language from 38-1-38 has no impact on South Dakota policy. However, that was not the concern of the numerous ag advocacy groups that came out against this legislation. Elimination of this language would provide opponents of COOL (American trade competitors Canada and Mexico and organizations like NCBA) more ammunition in their fight against the popular legislation. To prevent conflict, the Department offered a friendly amendment to HB1055 removing the repeal of COOL language. The bill as amended passed unanimously in committee and on the House floor. Thanks to the diligence of the ag advocacy groups and the cooperation of the Department of Agriculture, the strong public perception of COOL remains intact. Got Milk?- Debate begins on raw milk legislation Senate Bill 45. The debate concerning the use of raw milk wages on with Senate Bill 45. The bill is labeled “an Act to revise certain provisions relating to the sale of unpasteurized raw milk.” This bill was supported by the Department of Agriculture with Secretary Lucas Lentsch speaking as a proponent of the bill. Secretary Lentsch noted that this particular bill is not about the legality of

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consuming raw milk. Rather, it pertains to the sale and distribution of said milk. However, that did not stop opponents like the American Medical Association from making the argument. It was stated by the AMA that adopting this bill is a step back in efforts to ban raw milk consumption. Despite efforts by the AMA and South Dakota Dairy Producers, the bill passed, as amended, in committee 7-2 and subsequently passed on the Senate floor 304. The bill currently awaits debate in the House Committee on Agriculture and Natural Resources. Ag Land or Not Ag Land?- That is the question with Senate Bill 44. As property tax discussions wage on, so do the discussions defining the classifications of property in the Senate Taxation Committee. Senate Bill 44 came as suggested legislation from the Agricultural Land Assessment Implementation and Oversight Advisory Task Force. The bill attempts to establish clear definitions as to what qualifies as agricultural land. These qualifications include size, purpose, and income, among others. However, in his sponsorship testimony, Senator Billie Sutton acknowledged that the bill is not quite complete. He noted that there are certain aspects that need to be fine-tuned in order for the legislation to be successful. Senator Sutton requested the the bill be taken back to the Agricultural Land Assessment Implementation and Oversight Advisory Task Force where it could be improved upon. The committee obliged and the bill was tabled until the 41st day. Inspecting Senate Bill 76- Inspection window extended to 24 hours. Senate Bill 76 attempts to remedy concerns from legislation passed in 1988 regarding the timeframe in which producers must transport their cattle after a brand inspection. The 27 year old legislation requires producers to transport the date of inspection with a 12:00 am deadline. Senate Bill 76 redefines that deadline as a 24 hour period from the time of inspection. Supporters argue that producers currently have tough choices to make when it comes to moving cattle. In certain circumstances of early morning delivery requirements, producers must choose between leaving cattle on trailers overnight in which they lose muscle, equating to the loss of dollars, or breaking brand inspection law by loading and delivering after the date of inspection. Opponents of the bill argue that extending the window weakens brand law and opens the door to bad actors, individuals who will take advantage John Pesekof the legislation to cheat the

UNION FARMER

system. This particular debate belonged to the proponents as the bill passed out of committee 7-2 and on the Senate floor 27-6. The bill currently awaits debate in the House Committee on Agriculture and Natural Resources. My Way or the Highway- Infrastructure funding debate heats up with House Bill 1131. House Bill 1131, commonly referred to as “the Governor’s Bill,” comes in contrast to Senate Bill 1. Backed by both the Department of Transportation and the Governor’s Office, House Bill 1131 in its unamended form is more restrained in raising revenue compared to its Senate counterpart. Specifically, House Bill 1131 generates only half of the funds raised in Senate Bill 1. Recently, the Governor’s Bill saw its first action in the House Committee on Transportation. Living up to its popularity, the committee meeting was so heavily attended that Committee Chairman Mike Verchio requested the hearing be moved to a room with more seating. Once settled in, the testimony began. All but one of the testifiers that day came out as proponents of the legislation. However, there was a common theme in proponent testimony. House Bill 1131, while preferred to Senate Bill 1, is not a perfect piece of legislation. Each testimony took issue with some piece of the proposal. South Dakota Farmers Union took issue with the lack of upfront revenue for counties and townships. Others took issue with the perpetuity of the fuel tax increase. After public testimony had closed, the bill was amended four times. Included in the amendment was a cap on the fuel tax after the year 2030. The other three amendments were proposed by Representative Dick Werner and included a yearly increase in vehicle registration fees, a license fee for hybrid and electric vehicles, and the option for counties to expand the wheel tax from 4 to 12 wheels. The House Committee on Transportation, wanting more time to address the issue, deferred action on the bill and will resume discussion on the bill on February 12th. However, on the House floor, it was moved that the bill also be referred the the House Committee on State Affairs. That motion has passed and the bill will be scheduled for hearing in said committee. For any questions or comments regarding legislative issues, feel free to email Matt at msibley@sdfu.org or call at 605-350-8410. by Matt Sibley, SDFU Legislative Specialist. Current as of Feb. 5, 2015

FEBRUARY 2015

UNION FARMER South Dakota Farmers Union Celebrates a Century of Cooperative As South Dakota Farmers Union celebrates its 100th year, we are taking a look back at our organization’s roots and highlighting some of the milestones which make us who we are today. This first article is one of three which will focus on SDFU’s role in cooperative development and success in South Dakota.

wen Jones, 77, can clearly remember the day electricity came to his family’s Britton farm. “It made a big difference when we went to milk cows because we could turn lights on in the barn and didn’t have to worry about tipping over a lantern,” says the third-generation farmer, referencing the kerosene lantern which hung on a wire that ran the length of the barn. For light, Jones, his dad and brothers would simply slide the lantern along as they did chores. Jones was 12-years-old when Lake Regional Electric Cooperative brought electricity to rural Marshall and Day Counties. His dad, Arthur, was among the founding members responsible for the co-op’s development. “Dad was a strong cooperative-minded person. Early on, he realized that if he wanted a better lifestyle in the country, he would have to work for it and organize cooperatives.” It’s no surprise that Arthur was also actively involved in his local Farmers Union Chapter. Cooperative development was the original mission of Farmers Union when South Dakota farmers and ranchers established the organization in 1914.

REAL Workshop Continued from Page 5 you a much more successful leader. It allows you to anticipate roadblocks and develop communication strategies to move forward.”

Understanding Your State Budget 101 with Joy Smolnisky When Joy Smolnisky decided to run for the Sioux Falls School Board, the first hurdle she had to overcome was understanding the state budget. “No matter how passionate you are about an issue, 99 percent of the time your opponent can stop you cold with one question, ‘Where will the money come from?’” explains Smolnisky, who invested time and energy figuring out how the South Dakota State Budget worked. She ended up serving two terms on the school board. Today she spends her time teaching others what she learned as Director

FEBRUARY 2015

“Cooperatives are the reason the Farmers Union organization began. Its founders felt they didn’t have a real good market for their products, so they decided to collectively market their products together,” explains Doug Sombke, S.D. Farmers Union President. “At that time, some received more for their grain than others, so by coming together they had a better chance of higher prices.” This basic concept that uniting farmers could obtain better prices for the products they grew and raised is what drove National Farmers Union founder and its first president,

Newt Gresham. According to historian, Lynwood E. Oyos’ book The Family Farmers’ Advocate, “He (Newt Gresham) constantly reiterated that family farmers needed a voice and an organization to fight for their rights and survival. Farmers, Gresham argued, were continually being exploited by non-farmers.” Gresham and the organizations’ 10 founding members established the Farmer’s Educational and Cooperative Union of America near Point, Texas, in 1902. According to Oyos’ account, by 1914 the message was carried to South Dakota by

of the non-profit, South Dakota Budget & Policy Project. “I learned trial by fire and by traveling to Pierre to figure out how the funding works. It was then that I realized that there were no good tools out there to help regular folks like me understand this process,” Smolnisky says. Smolnisky shared what she learned with REAL participants during their Feb. 2-3, 2015, session in Pierre. “For most people, the concept of how the state budget gets formulated is like someone speaking in another language. This is intimidating because you feel left out of the conversation because you don’t know the language.” She explains that one reason South Dakota’s budget can be difficult to understand is the fact that our budget begins with the Governor instead of the Legislature. “Although our Constitution gives the Legislature responsibility for setting the budget, because we have a short Legislative Session and a Citizen Legislature, the

Governor sets a budget which is balanced. If you want to get more money to fund one thing, you have to either raise taxes or cut spending in another part of the budget,” Smolnisky says. “This is the hard reality of state government.” After going over the budget process, Smolnisky provided REAL participants with the opportunity to gain hands-on practice their new-found implementing understanding of budget concepts. She broke them up into small groups and had REAL participants demonstrate their knowledge applying budget lingo and debating current legislative topics such as increasing taxes for road maintenance, the resolution calling for a Constitutional Convention, K-12 funding and Medicaid expansion. “You can’t be a very effective policy spokesperson unless you can address the budget,” she says.

UNION FARMER

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Leadership in South Dakota Nebraskan member J.K. Weinmaster. The first farmer he visited with about Farmers Union was Knute Strand who farmed about 8 miles southwest of Mitchell. Strand became the first paid-up South Dakota Farmers Union member and loaned his buggy to Weinmaster to spread the message to his neighbors. On Feb. 6, 1914, Strand was among the state’s 17 charter members. The message of “together we can accomplish what we can’t alone” resonated with farmers across the state. Soon, what had begun in Davison County spread and within two years, the state boasted the required 5,000 dues paying members to receive a state charter recognized by the national organization. Less than a decade after receiving their state charter, Farmers Union grain, livestock, insurance, wholesale and retail marketing cooperatives were serving their member/owners in several South Dakota counties. By the 1930s Farmers Union oil, cream buying stations and credit union cooperatives were also established in rural townships and communities across the state. “Co-ops have played an important role in our state’s progress,” explains Sombke, a fourth generation Conde farmer. “When companies didn’t want to invest in the infrastructure necessary to bring electricity, telephone service, fuel and agriculture inputs to the countryside, our state’s farmers and ranchers banded together to form memberowned cooperatives.”

“Farmers Union helped people understand that there were things they could do together that they couldn’t do by themselves,” explains Jones, who has served on several cooperative boards throughout his farming career and currently serves on the American Coalition of Ethanol board.

Healthy Competition Along with providing needed services, cooperatives created marketing competition in what was a monopoly run by off-farm interests. According to Oyos’ book, by the 1880s South Dakota’s grain producers were at the mercy of “an unfair price structure determined by milling magnates and commodity firms in the Twin Cities and Chicago.” This issue extended to livestock producers who faced their own set of corporate competitors explained Jim Woster, a retired stockyards buyer, who today spends his time advocating for many South Dakota agricultural organizations. “I started working for Farmers Union Livestock the morning after I graduated from South Dakota State University in 1962. In those days, most livestock farmers didn’t sell that many cattle. When they did sell, they

Yours for Only $10!

Women in Blue Jeans 2015 Conference

Learn the history of South Dakota Farmers Union by reading The Family Farmers’ Advocate by Lynwood E. Oyos.

Full of photographs, this book brings our organization’s history to life.

To make this book yours, make a $10 donation to the Farmers Union Foundation. To learn more, contact Pam Evenson, pevenson@sdfu.org or 605-352-6763 ext. 116. SDFU also has copies members can check out. Contact Pam if you are interested in borrowing a copy.

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were not in the position to compete with corporations like Morrell’s, so commission firms like Farmers Union Livestock played a valuable role in getting those producers a fair price,” Woster said. The competition cooperatives bring to today’s marketplace, whether in purchasing inputs for their owner/members or marketing grain, is important even today, explains Dave Andresen, CEO of Full Circle Ag, a full service agriculture cooperative that serves ag producers in 12 counties in northeast South Dakota and southeast North Dakota. “In the last few years we’ve seen a lot of money come into production agriculture from outside interests - Wall Street, Silicon Valley and international players like China and Japan. If you do business with an international corporation, the profits leave the country,” Andresen explains. “Whereas when you do business with your local cooperative, the money stays in the community and profits are returned to the farmer/owners.” Andresen appreciates the role Farmers Union continues to play in supporting cooperatives through youth education and lobbying state and national government. “Only 1.7 percent of the people serving in D.C. have any ties to agriculture, yet they are setting our policy,” he says. “If it had not been for Farmers Union and other farm organizations stepping up and lobbying Congress during the recent rail crisis, I don’t think we would have seen any resolution.” By Lura Roti, for SDFU

Friday, February 20th & Saturday, February 21st, 2015 Highland Conference Center Mitchell, South Dakota

From Denim to Diamonds And Everything in Between – All Women Shine

Registration is $45. S.D. Farmers Union will cover the fee for any members who wish to attend. To register, contact SDFU Executive Director, Karla Hofhenke at 605-352-6761 ext. 114 Registration deadline is Feb. 1, 2015 To learn more about WIBJ visit www.womeninbluejeans.org

UNION FARMER

FEBRUARY 2015

UNION FARMER South Dakota Farmers Union, Cattle Producers & Consumers Praise U.S. Dist. Court Decision to Dismiss COOL Lawsuit

outh Dakota Farmers Union President, Doug Sombke, praised the Feb. 9, 2015 dismissal of the U.S. District Court lawsuit on Country-of-Origin Labeling (COOL), filed by the multinational meatpacking industry and their allies in an attempt to stop the USDA from implementing the very popular labeling law. “COOL is designed to protect the rights of American cattle producers and consumers. This dismissal ensures the right to know where food is produced,” said Doug Sombke, President of S.D. Farmers Union and a fourth generation Conde crop and cattle producer. The papers ending the long and costly lawsuit were filed in the U.S. District Court for the District of Columbia, ending American Meat Institute (AMI) et al. v. U.S. Department of Agriculture et al., originally filed in July 2013. “This is a clear and indisputable win for American consumers and producers, and it’s a huge relief to know that common-sense labeling laws, like COOL, can prevail in court despite the deep pockets of the multinationals,” said Natl. Farmers Union President, Roger Johnson. The dismissal comes on the heels of the

Jan. 22, 2015, release of a new study conducted by Auburn University Professor, Robert Taylor, which showed that allegations that COOL depressed prices of Canadian cattle were false. The study not only demonstrated that fed cattle price basis actually declined after COOL went into effect, but also that COOL had no negative impact on imports of slaughter cattle and did not significantly affect imports of feeder cattle. “The findings of this study are an exciting discovery for U.S. cattle producers who are proud of the meat we produce, as well as for the consumers who want to know where their food comes from,” Sombke said. Sombke explained that this study is completely transparent, unlike the one it debunks. “This study was conducted using mandatory pricing data made public by the packers, whereas the study it contradicts used information that is not available to the public. This raised a lot of suspicion,” Sombke said. Last week a Canadian delegation comprised of the Canadian Minister of Agriculture and Agri-Food Gerry Ritz and members of the Canadian Cattlemen’s

Association, the Canadian Pork Council and the Canadian Meat Council made a lobbying trip to Capitol Hill. Johnson called the trip “their last act of desperation.” Johnson urged members of Congress to stand by the popular labeling law – supported by roughly 90 percent of consumers – and urged the Canadians to allow the World Trade Organization to consider the new study and the total body of information and arrive at a decision on its own. “If the U.S. Courts are any indication of the trajectory of success of COOL, then American consumers are finally going to be permitted to know where their food comes from without intervention from our chief trade competitors and their multinational allies,” Johnson said. Call to action National Farmers Union encourages consumers and cattle producers alike to reach out to Congress and urge them to not be influenced by foreign governments and foreign competitors and leave COOL alone. A link to the Auburn University study can be found at www.nfu.org. The main number to the Hill switch board is 202-224-3121.

Union Center Rancher Attends National Farmers Union Women’s Conference in Florida

nion Center rancher, Tammy Basel, attended the National Farmers Union’s (NFU) 2015 Women’s Conference in Clearwater Beach Florida Jan. 17-21, 2015. The conference, designed for farm and rural women, is based on the well-respected Annie's Project education program. The event provided participants with tools and information to confidently manage risks in their farm or ranch operations and develop leadership skills. "This conference built on NFU’s experience in offering adult education classes specifically designed for women in agriculture and provided participants with important leadership and management skills, as well as networking opportunities," said NFU President, Roger Johnson. “Family farm operations and communities benefit when each person understands strategic planning, business analysis, risk management, and transferring operations

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from one generation to the next.” Highlights of the agenda included: a screening of “Terra Firma,” an awardwinning film about veteran women farmers; breakouts on leadership training, financial planning and Farm Bill programs; and special guests such as Althea Raiford, one of the women starring in “Terra Firma;” Lilia McFarland, coordinator of the U.S. Department of Agriculture’s New and Beginning Farmer and Rancher Program; and Gary Matteson, Farm Credit’s vice president for young, beginning, small farmer programs and outreach. “I learned that no matter how remote you live or how urban your area is, you can still add value to your farm and ranch,” said Basel, a fourth generation rancher who raises sheep and cattle near Union Center. The conference was sponsored by Agribility, American Farmland Trust, CHS Foundation, CoBank, Farm Credit, FUI Foundation, Montana Farmers Union, NFU

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Foundation and USDA’s Risk Management Agency. Tammy Basel is a 4th generation rancher who raises sheep and cattle near Union Center. Basel attended the National Farmers Union Women’s Conference in Florida this January.

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Stop & Say Hello! On the Road with South Dakota Farmers Union

his winter your Farmers Union state staff will be on the road quite a bit and chances are we’ll be in your neighborhood. Take a look at the events at right and take the opportunity to stop in and say “Hello!” Bring questions, comments or concerns with you. And, if you have a vintage Farmers Union photo or item to share, bring it with you. We’ll add it to our Centennial Celebration display at this year’s state convention. Please make sure any items you bring with you are clearly marked with your name, phone number and address so we are sure it makes its way home.

2015 Farm Shows January 30-Feb. 7 Black Hills Stock Show, Rapid City February 10-14 Watertown Farm Show, Watertown 20-21 Women in Blue Jeans, Mitchell March 13 Lemmon Farm Show, Lemmon 20-21 AG Day @ Washington Pavilion, Sioux Falls, SD 2015 Sale Barn Coffees February 6 Sale Barn Coffee, Magness Livestock, Huron 17 Sale Barn Coffee, Glacial Lakes Livestock, Watertown 24 Sale Barn Coffee, Continental Marketing (Bales), Huron

Shilo Lamont, a Farmers Union member from Union Center at the Black Hills Stock Show in Rapid City

Matt Sibley, SDFU Legislative Specialist at Ag Fest in Pierre

Farmers Union hosted a Sale Barn Coffee at Magness Livestock in Huron

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FEBRUARY 2015

UNION FARMER Roger Johnson

National Farmers Union President

rade is heating up in Washington as the Obama administration attempts to break down barriers between the U.S. and Cuba, negotiate two very large trade deals across both the Pacific and the Atlantic oceans, and secure Trade Promotion Authority (TPA), or “fast-track,” an authority granted by Congress to allow the executive branch negotiating powers otherwise amendable by Congress. The U.S. Department of Agriculture (USDA) also solicited comments on a proposed rule to allow imports of fresh beef from northern Argentina. NFU has been very active in all these agreements, proposed rules and powers granted to different branches of government, advocating for family farmers, ranchers, fishermen and consumers alike. NFU is also looking forward to its 113th Anniversary Convention, which will be held next month in Wichita, Kansas. Registration is now open on the NFU website. Cuba Relations addressed in Washington In December, President Barack Obama announced that the United States would be taking steps to restore full diplomacy in Cuba. The administration has plans to establish an embassy in Havana and work with Congress on lifting an embargo on Cuba that has been in place for over 50 years. There are over 11 million people in Cuba, and with the island just 90 miles away, it represents a significant market for U.S. agricultural products, particularly rice, grains, soybeans, corn and meat. In fact, despite the current restrictions, the U.S. sold almost $349 million in agricultural goods to Cuba last year. Last month, National Farmers Union joined the U.S. Agriculture Coalition for Cuba, a group aiming to re-establish normalized trade relations with Cuba. Normalizing trade between the U.S. and Cuba has been a major push for NFU for many years, as the organization has sent at least 20 letters to government officials and legislators addressing normalized travel and trade between both nations. Lifting the failed trade embargo and easing financial regulations need be done in order to facilitate increased and profitable trade for both countries. NFU believes the

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coalition will provide leading U.S. agriculture organizations a collective voice in creation of a sustained and viable market for U.S. products in Cuba. Trade Deals Heating Up Two trade deals, the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP), are currently being negotiated by the U.S. Trade Representative. The president is also seeking Trade Promotion Authority (TPA), or “fasttrack,” which allows the executive branch to negotiate international agreements, such as TPP and TTIP, that Congress can either approve or disapprove, but not amend. Representative Rosa DeLauro, D-Conn., held a press conference in January with other House Democrats, unions, teachers and environmentalists to push back against TPA, saying it would hide the details of the current negotiations behind a “veil of secrecy” and prevent lawmakers from protecting their constituents from lopsided agreements. NFU has been vocal on “fast track,” stating that it gives up a constitutional power of Congress, and therefore the people, to have a say on negotiations made on the people’s behalf. In January, in a POLITICO Pro guest column, NFU President Roger Johnson also argued that all future U.S. trade agreements should be negotiated with the goal of reducing the U.S. trade deficit, while ensuring that U.S. trading partners are keeping up with their end of the agreement and abiding by U.S. standards. The U.S. had a $471.5 billion trade deficit in 2013, representing a full three percent drag on the U.S. Gross Domestic Product. NFU Concerned Over Beef Imports from Areas With Foot and Mouth Disease In August, the Animal and Plant Health Inspection Service (APHIS) proposed to amend the regulations to allow the importation of fresh beef from northern Argentina, a region located north of Patagonia South and Patagonia North B. In late December, NFU President Roger Johnson submitted comments to the proposed rule, urging the U.S. not to resume importation of meat from northern Argentina and Uruguay because of ongoing

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concerns with Foot and Mouth Disease (FMD), a highly contagious disease that could devastate family farmers and ranchers in the U.S. APHIS acknowledges that northern Argentina is not considered to be free of FMD. In May of 2000, the World Organization for Animal Health designated Argentina as FMD-free without vaccination. Just two months later, FMD outbreaks reappeared, culminating in the epidemic outbreak in 2001. Since then, Argentina has made multiple unsuccessful attempts to eradicate and control FMD and concealed the outbreaks from the international community for months. The economic impacts of an FMD outbreak in the U.S. could be devastating. FMD is highly contagious and has the potential to spread very quickly. Given the rapidity with which FMD spreads, an outbreak would create devastating economic consequences for farmers and ranchers. Recent research has estimated outbreaks in FMD-free countries and zones cause losses of greater than $1.5 billion per year. U.S. farmers and ranchers are known throughout the world for the high standards to which their livestock herds are raised. Their long-standing disease prevention efforts have thus far been successful, and NFU does not support a provision that could expose them to such a huge risk. This information is current as of Jan. 15, 2015. Provided by Natl. Farmers Union.

National Farmers Union is now accepting applications for the 2015 class of the Beginning Farmers Institute. To Apply Interested applicants can download the 2015 application on the NFU website, www.nfu.org. Must be postmarked by March 30, 2015.

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From the President....

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EPA Slow to Act on RFS While Oil Prices Plummet As we see prices for fuel dropping to their lowest level in six years, I am reminded of Oscar Wilde's quote, "Be careful what you wish for, you just might get it." Lower fuel costs are helpful to all of us since those of us in agriculture use a tremendous amount of fuel everyday in South Dakota and throughout the country. With the World’s supply of environmentally polluting petroleum at record production levels, Big Oil is forced to drop prices to focus on its competitors (ethanol) bringing up the same old myths of the past. With the World’s supply of environmentally polluting petroleum at record production levels, Big Oil is forced to drop prices to focus on its competitors (ethanol) bringing up the same old myths of the past.

Doug Sombke Even as fuel prices drop, food prices are slow to follow. Shocker right! This has fueled (no pun intended) BIG OIL and their allies to attack ethanol, once again blaming this clean and renewable fuel as the root of the problem. Let me share an example: Oct. 30, 2014 edition of Fox Business' Opening Bell (the title of the show with Maria Bartiromo), CKE Restaurants' Andy Puzder blamed the Renewable Fuel Standard for increasing food prices, stating, "I think the Renewable Fuel Standard is having a real impact on commodity prices across the board. The Congressional Budget Office (CBO) analyzed how the Renewable Fuel Standard will

is offering to all current South TITAN MACHINERY offering to all to current South Dakota Farmers Union Members ais$500 incentive be used on Dakota Case Farmers Members a $500 incentive used in on select IH Union Equipment. This incentive can tobebeused select Casewith IH other Equipment. This incentive can be used ofin conjunction offers but must be mentioned at point conjunction with other offers but must be mentioned at point of interest. Please have your membership card with you for proof of interest. Please have your membership card with you for proof of current current membership. membership.

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Equipment Equipment that that this this incentive incentivecan canbe beused usedon onis isas asfollows: follows: •• Farmall Farmall Compact Compact Tractor Tractor Utilites • Farmall Utilites Maxxum Series Series •• Maxxum Farmall 100A 100A Series Series •• Farmall

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We cannot cannot be be more more excited excited to to have have this this incredible incrediblepartnership partnershiptoto We offer our members. We hope you are as interested and excited offer our members. We hope you are as interested and excited about this incentive as we are! Contact Karla Hofhenke, Executive about thiswith incentive as we are! Contact Karla Hofhenke, Director any questions, 605-352-6761 ext. 114Executive or e-mail Director with any questions, 605-352-6761 ext. 114 or e-mail khofhenke@sdfu.org. khofhenke@sdfu.org.

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impact the economy beyond 2014 and determined that it will have no significant impact on food prices. The CBO also stated that if the standards were increased to meet the initially proposed requirements by Doug Sombke SDFU President 2017, it would result in increased spending on food by just one-quarter of 1 percent. Roughly 40 percent of the U.S. corn supply is used to make ethanol. To the extent that the Renewable Fuel Standard increases the demand for corn ethanol, it will raise corn prices and put upward pressure on the prices of foods that are made with corn -- ranging from corn-syrup sweeteners to meat, poultry, and dairy products. CBO expects that roughly the same amount of corn ethanol would be used in 2017 if fuel suppliers had to meet requirements equal to EPA's proposed 2014 volumes or if lawmakers repealed the RFS, because suppliers would probably find it costeffective to use a roughly 10 percent blend of corn ethanol in gasoline in 2017 even in the absence of the RFS. Therefore, food prices would also be about the same under the 2014 volumes scenario and the repeal scenario. With that being said, why is EPA slow to act on the RFS? Might the answer be found in the words of the last Republican Candidate for President, Mitt Romney, “Corporations are people, my friends.” Even though it is less painful to fill our vehicles at the pump today, we all are faced with many more challenges related to our wish being granted. BIG OIL and GMA will keep using their financial influence on congress and administration offices creating wealth for the 1% and we will be allowed to have the crumbs. Unless, we keep fighting back and come together creating equality as our cause and a brighter future for the middle class. That my friends is what will drive this state and our country to a more vibrant economy and stronger state and nation. God bless all you do!

South Dakota

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A PUBLICATION OF SOUTH DAKOTA FARMERS UNION

South Dakota Union Farmer, ISSN 0745-8797, publishes ten times per calendar year, with issues printed in January, February, March, April, May/June, July/August, September, October, November and December. Copies are available for $3.00 per year (included with membership dues), and nonmembers annual subscription is $7.50. Advertising rate is $6.00/column inch. Periodical postage paid at Madison, S.D. POSTMASTER: Address changes to: SDFU, PO Box 1388, Huron, S.D. 57350-1388

Contact SDFU 888.734.8136 • 605.352.6761 1410 Dakota Avenue South, PO Box 1388, Huron, SD 57350 www.sdfu.org sdfu@sdfu.org

SDFU State Office Staff Karla Hofhenke.......ext. 114 Executive Director Huron Matt Sibley .............ext. 122 Legislative Specialist Huron

Kecia Beranek...............ext. 113 Communications Specialist Miller

Bonnie Geyer..........ext. 125 Education Director Huron

Luanne Thompson.......ext. 111 Administrative Assistant Virgil

Pam Evenson ..........ext. 116 Administrative Assistant Doland

Erin Wilcox ...................ext. 118 Rural Development Coordinator Alpena

SDFU Board of Directors Doug Sombke.........President Groton Wayne Soren..........Vice Pres. Lake Preston Terry Sestak..............District I Tabor Jim Wahle ................District II Salem Franklin Olson ........District III Pierpont

Contact NFU

Joel Keierleber .......District IV Colome Dallis Basel ..............District V Union Center Lynn Frey................District VI Lemmon Chad Johnson .......District VII Groton

National Farmers Union 20 F Street NW Suite 300 Washington, DC 20001

Roger Johnson, President ~ Donn Teske, Vice President Doug Peterson, Secretary ~ John Hansen, Treasurer 202.554.1600 www.nfu.org

The South Dakota Union Farmer is published 10 times per calendar year. Karla Hofhenke, Publisher Lura Roti, Editor ~ Jodie Fenske, Copy Editor Tri-State Graphics, Layout and Design

Doug Sombke, President, South Dakota Farmers Union Current as of Jan. 30, 2015

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All information for publication must be submitted by the 15th of the month. You may submit items by mail to the State Office, P.O. Box 1388, Huron, SD 57350 or email items to: sdfu@sdfu.org

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