Notes from the MN Farmers Union 3-23-09
Notes from the Minnesota Farmers Union Monday March 23, 2009
Peterson calls for increase in ethanol blend
According to a new study released last week, Minnesota could see over 3,000 new jobs and nearly $600 million in economic activity if the federal government gives the green light to blending gasoline with 15 percent ethanol. Earlier this month, national trade group Growth Energy submitted a "green jobs" waiver asking the Environmental Protection Agency (EPA) to allow gasoline blended with as much as 15 percent ethanol (E15). A rule that dates back to the 1970s arbitrarily caps at 10 percent (E10) the amount of ethanol that can be blended with gasoline. At a press conference appropriately held on "Ag Day" in the State Capitol, MFU President Doug Peterson joined Minnesota Department of Agriculture Commissioner Gene Hugoson and the Minnesota Ethanol Producers Association, the Minnesota Corn Growers Association in calling for the EPA to approve higher ethanol blends. "When we moved to using E10 in Minnesota there were some at that time who said we'd be ruining cars, destroying engines and wrecking fuel pumps. Those naysayers were wrong then and they are wrong today," said Doug Peterson, president of the Minnesota Farmers Union, who authored Minnesota's ethanol fuel requirement law when he served in the Legislature. "The use of ethanol has taken us one step further toward less reliance on foreign oil, and becoming more reliant on home-grown energy." The EPA has up to 270 days to act on Growth Energy's waiver request. For more info on Growth Energy checkout: http://www.growthenergy.org/2009/index.asp
Green Acres changes pass Senate
By a vote of 52-9, the Senate last week approved changes to the Green Acres property tax program. While MFU supports a repeal of the changes, it also supports addressing changes if a repeal did not seem likely. The bill the Senate passed, HF 392, addresses most if not all of MFU's concerns. The bill now goes back to the House for concurrence, if the House does not agree to the changes, a conference committee would be appointed. You can see the changes and the bill here: HF392
House hears 17 Green Acres bills
Last Tuesday the House Tax Committee and Property Tax division held a joint hearing to hear all 17 bills pertaining to Green Acres. MFU sent a joint letter to the committees with Minnesota Farm Bureau which detailed several of the changes our organizations agree need to be worked on. Many MFU members testified before the committee as well. The committee laid over several bills for further study.
Budget debate heats up, what do you think?
There are now three frameworks for the state budget in place from the Governor and the DFL Senate and House caucuses. Committee deadlines are nearing, and specifics on budgets will be released in the upcoming weeks. While there is no question cuts will happen to many sectors of the state budget, there are lots of questions about "revenue enhancements". MFU would appreciate input from members as to what they think about what kind of revenue should be considered if any, to help the state erase the near $5 billion dollar deficit. Among the considerations:
-Tax the rich! One consideration is to raise the income taxes on the wealthiest Minnesotans who pay less as a percentage than other Minnesotans.
-Expand the state sales tax. Sales tax could be expanded to clothes and some services, like veterinary.
-Surcharge. Minnesota has at times enacted a temporary surcharge on state taxes owed, for example, if you owe $100, and there was a 10% surcharge you would pay $10 more dollars.
-Lose the credits. A recent proposal from House Tax Chair Ann Lenczewski would eliminate many tax credits in Minnesota including the bovine tb testing credit, and re-distribute the money to lower and mid-income tax payers.
-Increase fees. Have the state look at having tax payers pay more for licenses and fees for services.
Let me know what you think!
House Ag-special bill released
HF 1446, which lays out parameters for the University of Minnesota through legislation known as the 'ag-special" was released this past week and heard in the Agriculture Finance Committee and passed to the Finance Committee. The bill includes many of MFU's priorities for the University including funding for biofuel, organic and dairy research. Concern was raised about language in the bill concerning livestock siting. You can read the bill here: HF1446
This is exciting...
I learned in committee that even the Minnesota Department of Agriculture has their own YouTube channel, which includes videos like "Inside the MDA". Check it out at: http://www.youtube.com/user/mnagriculture
Center for Rural Policy and Development
Rep. Terry Morrow had a hearing this past week on his bill HF 821 which would appropriate $500,000 for the biennium to help fund the Center for Rural Policy and Development which is a non-partisan, not-for-profit policy research organization dedicated to benefiting Minnesota by providing its policy makers with an unbiased evaluation of issues from a rural perspective. MFU member Cynthia Johnson from Ottertail County represents MFU on their Board of Directors. For more info, checkout: http://www.mnsu.edu/ruralmn/about.php
Rail issues
MFU is a member of Gopher Cure which is working to ensure that Minnesota's rail customer issues are heard in the halls of Congress. Minnesota's economy relies heavily on railroad transportation with farmers, rural utility coops and manufacturers dependent on freight rail for a majority of their shipments. Without access to competition for freight rail services, many of Minnesota's shippers have been hit hard by devastating price increases and a severe decline in service that has far reaching effects on every facet of Minnesota's economy. Examples of some of the industries that are most impacted include forest products, paper manufacturers, farmers, ethanol producers, fertilizer producers, grain elevators and electric utilities. For more info checkout: http://www.railcure.org/states/states_minnesota.asp
NFU supports RES
NFU President Roger Johnson last week said rural America is where the production of renewable energies will occur and urged support for a national Renewable Electricity Standard (RES). In a letter to Senate Energy and Natural Resources Committee Chairman Jeff Bingaman, Johnson said, "National Farmers Union has long believed a RES will not only help move our nation to energy independence but also provide economic opportunities for farmers, ranchers and rural communities across the country." Delegates to NFU's recent convention again approved policy supporting a national RES of 25 percent by 2025 that includes a strong local-ownership component. According to the National Renewable Energy Laboratory, locally-owned wind projects would generate 2.6 times more jobs and 3.1 times more rural economic development than those under a lease arrangement; Oregon State University concluded that local ownership would generate five times the annual projected income.
Dairy re-inspection fee
Many MFU members have raised concerns about a proposal in Governor Tim Pawlenty's budget to raise the dairy farm "re-inspection" fee from $45.00 to $100.00. The issue has been discussed in the agriculture committees. While the increase would not raise significant dollars, it would help cover the cost of the nearly 600 re-inspections that occur each year. The discussion centers around - is this a carrot or a stick for dairy farmers who have issues. If members have more comments about this issue, please contact me.
Peterson to host organic-local grown meetings
From Rep. Peterson's office: In my role as Chairman of the House Agriculture Committee, I've emphasized the importance of the growing markets for organic, locally grown and sustainable agriculture as exciting new opportunities in agriculture and rural development. I would like to invite you to attend a meeting I am sponsoring on Friday, April 17, 2009 from 9:30 to 11:30 a.m. to inform my constituents about programs available in the 2008 Farm Bill that addresses these opportunities. The meeting will be held simultaneously at four 7th District locations as noted below and all locations will be connected by ITV. Representatives from USDA Rural Development and members of my U.S. House Agriculture Committee staff will explain the various programs in detail, such as the Value Added Producers Grant, Rural Energy for America, Farmers Market Promotion Program, Sustainable Agriculture and Organic Research provisions, etc.
Please consider attending this session at any of the following locations:
Southwest Minnesota State University, Marshall
Conference Center, Lower Ballroom
University of Minnesota, Crookston
Bede Ballroom, upper level of Student Center
University of Minnesota, Morris
Media Services, Humanities Fine Arts Building (#58 on map)
Bemidji State University
Deputy Hall, Room #111 (#3 on map)
There is no charge to attend this meeting. We do ask that you RSVP by registering on my website at http://collinpeterson.house.gov/meeting_RSVP.html <http://collinpeterson.house.gov/meeting_RSVP.html> , by calling my Red Lake Falls District office at 218-253-4356 or via email at JoAnn.Zutz@mail.house.gov. If you need additional information about the meeting, please feel to contact my Economic Development Officer, Toni Merdan at 218-849-7344 or visit my website at http://collinpeterson.house.gov <http://collinpeterson.house.gov/> for the agenda and other materials.
Feed Ban rule delayed
Last week it was announced that HHS had notified FDA that a decision has been made to reopen the comment period on the BSE rule limited to comments on the implementation date only. A Federal Register notice will be coming out announcing that the implementation date of the BSE rule has been delayed for 60 days. In addition it will open a 30 day comment period on whether to further delay effective date. The rule had been slated to take affect on April 1st, would have had an impact on dead cows over the age of 30 months.
Walz releases guide book
Congressman Walz has released a guidebook to help citizens understand the funding available under The American Recovery and Reinvestment Act (H.R.1). The guidebook, which will be posted on Walz's website ( www.walz.house.gov ), explains which types of projects can receive funding under the Recovery Act and provides contact information for the various federal, state and local agencies responsible for distributing the funding. Walz also encouraged individuals to call his Economic Recovery Coordinator, Meredith Salsbery, if they have questions after reviewing the guidebook. Salsbery can be reached in Walz's Mankato Office at 507-388-2149 or 1-877-TIM-WALZ.
MFU District meetings
April 7 - 9:30 AM - Fertile --- Sand Hill Supper Club, 606 S. Mill Street (Hwy 32), Fertile, MN
April 7 - 2 PM - Sauk Centre --- Trucker's Inn, Hwy 71 and I-94, Sauk Centre, MN
April 8 - 9:00 AM - Slayton --- Country Host at Cenex, Hwy 59 & 30, Slayton, MN
April 8 - 2:30 PM - Elysian --- Mama's Mercantile, 410 W. Hwy 60, Elysian, MN
April 9 - 9:30 AM - Moose Lake --- Blue Bear Café, 300 S Arrowhead Lane, Moose Lake
Bill Introductions of note
Juhnke introduced: H. F. 1886, A bill for an act relating to agriculture; establishing the Feeding Minnesota Task Force; proposing coding for new law in Minnesota Statutes, chapter 31.
Juhnke introduced: H. F. 1936, A bill for an act relating to agriculture; establishing a star farms program; establishing the Star Farm Board; appropriating money from the clean water fund; proposing coding for new law in Minnesota Statutes, chapter 17.
Kiffmeyer introduced: H. F. 1925, A bill for an act relating to taxation; property; repealing the 2008 changes to the Green Acres law; providing appointments; amending Minnesota Statutes 2008, section 273.111, subdivisions 3, 4, 8, 9, 11, 11a, by adding a subdivision; Laws 2008, chapter 366, article 6, section 52; repealing Minnesota Statutes 2008, section 273.111, subdivision 3a.
Hosch introduced: H. F. 2075, A bill for an act relating to agriculture; creating a commission on local foods; requiring a report.
Juhnke introduced: H. F. 2014, A bill for an act relating to state government; appropriating money from the clean water fund for clean water legacy and drinking water protection activities; providing for a report on a star farms proposal.
Olin introduced: H. F. 2001, A bill for an act relating to taxation; modifying the state-paid property tax credit for property in bovine tuberculosis management zones; amending Minnesota Statutes 2008, section 273.113, subdivisions 1, 2.
Falk introduced: H. F. 2019, A bill for an act relating to energy; increasing the capacity of wind energy conversion systems over which counties have authority to issue site permits; amending Minnesota Statutes 2008, sections 216F.01, subdivisions 2, 3; 216F.02; 216F.08.
That is all for now, as usual, questions, comments, and complaints to me!
Thom Petersen, Director of Government Relations, MN Farmers Union