Notes from MN Farmers Union 5-20-09
Notes from the MN Farmers Union Wednesday May 20, 2009
MFU on legislative session
MFU saw positive action on many fronts this year at the state capitol during the 2009 legislative session which adjourned on Monday May 18th. MFU was very pleased that the legislature made many changes to the Green Acres Property Tax program that corrected changes that had been made in 2008. In addition, MFU was very pleased to see positive results on MFU priorities including the extension of the Farmer-Lender Mediation program and $35 million in bonding authority for the Rural Finance Authority (RFA) which partners with local lenders to provide affordable credit to eligible farmers. MFU President Doug Peterson said "MFU was pleased to see the legislature act positively on these issues that have a profound impact of the day to day lives of farmers."
One concern MFU has is the failure to come out of the session with an overall budget deal for the $34 billion dollar budget. While the budget for the Department of Agriculture, Board of Animal Health, and the Agricultural Utilization Research Institute (AURI) took reasonable cuts during the legislative session, they could be subject to further cuts through the unallotment process where Governor Tim Pawlenty can make surgical cuts to the state budget. In addition, MFU is very concerned about the impact the unallotment process could have on property taxes if Governor Tim Pawlenty further cuts Local Government Aid (LGA), and assistance for hospitals and nursing homes. Peterson added "Farmers are very concerned about high and rising property taxes, and the Governor needs to consider the impact on landowners when making these budget decisions."
Budget ideas or message for the Governor??
From MinnPost: Although the unallotment process to be used by Gov. Tim Pawlenty to resolve the budget deficit will be top-down, without legislative action or public hearings, he said Tuesday that he will consult with his cabinet and staff in the process. And he says the last time he unallotted, he met with legislative committee chairs to get ideas. But there is a way for the public to weigh in on what gets cuts and what doesn't: An e-mail address has been set up for suggestions. It's budgetideas@state.mn.us
Omnibus Agriculture bill
The Governor has signed HF1122 the omnibus agriculture bill which among many items funds the Department of Ag, AURI, and the Board of Animal Health. The Ag department received an 8.4 percent cut, the AURI a 7 percent cut, and Board of Animal Health a 3.5 percent cut, again though that could be subject to further cuts through the unallotment process. MFU was pleased with the work of the Ag Committees and the Chairs Rep. Al Juhnke and Sen. Jim Vickerman who worked to make reasonable cuts to agriculture programs. Ethanol producer payments and the Dairy Profitability Enhancement Program were among the programs taking cuts. MFU was pleased to see additional or new funding for some programs including the Livestock Investment Grants and the Wolf and Elk Depredation program. Check out details of the bill can be found at: HF1122
Policy Items in ag bill
Included in the Ag bill that the Governor has signed were many policy provisions that MFU has supported including extension of the Farmer-Lender Mediation Program, the Organic Advisory Task Force, and changes to the state noxious weed laws.
Governor line-items veto
Governor Tim Pawlenty did line-item veto two items in the omnibus Agriculture bill, $30,000 for the development of a "Star Farms" program, which was something the Minnesota Milk Producers were working on and $100,000 from the second year of the Sustainable Agriculture Demonstration Grant Program. MFU was very disappointed with the veto of the sustainable grant program which MFU members have supported and found to be very helpful. Rep. Andrew Falk had successfully put money back into the program in the House bill after the Governor had originally proposed cutting the program.
Legacy dollars passed
The Legislature also passed legislation in the waning hours that will allocate dollars from the recently passed increase in the state sales tax to fund outdoor, water and cultural activities. MFU worked to help pass recommendations of the Clean Water Council for the water spending and were generally pleased with the out come of that portion of the bill. MFU will work to be more involved in the part of the funding next year that is known as the Lessard Council which makes recommendations on habitat improvements and enhancements. Checkout the final bill at: HF1231
WIC-Organic bill passes
The Legislature has also passed SF 213 which directs the Department of Human Services to annually update and make eligible a list of organic foods that are basically cost-neutral for the Women, Infants and Children program. MFU has supported this legislation for many years, and now waits for the Governor's signature. The authors of the legislation were Sen. Sharon Erickson-Ropes and Rep. Karen Clark.
Minnesota Care for Farmers
The Legislature has included in its Omnibus Health and Human Services bill language that directs the Department of Human Services to once again submit a waiver to the Federal Government allowing Minnesota permission to allow farmers to factor in depreciation when determining eligibility for the Minnesota Care Health care program. The federal government turned down the request last year, but legislators thought it was worth a try with a new administration. MFU has also worked on this legislation for many years and appreciates the efforts of many legislators on behalf of the issue, including the bill authors Rep. Mary Ellen Otremba and Sen. Kathy Sheran.
Key provision in Energy bill
MFU supported a provision in SF550, the omnibus energy bill that would increase the appraisal fees that may be awarded to a property owner under an eminent domain proceeding begun by a public service corporation (a utility, pipeline, municipality operating an airport, watershed district or draining authority) from $500 to $1,500. For the purposes of a high-voltage transmission line the award may not exceed $3,000. Rep. David Bly and Sen. Kevin Dahle were the champions of this legislation. They had also sought to un-exempt high-voltage transmission lines from eminent domain laws that apply to roads and sewers, and Rep. Bly was successful in doing that on the House floor by a strong vote of 98-33. The provision died in conference committee. Energy Chairs Rep. Bill Hilty and Sen. Yvonne Prettner-Solon have indicated they may hold interim hearings on the issue.
Further changes to Green Acres
Governor Pawlenty did sign HF1298 which contained further changes to the Green Acres property tax program. The bill which came out of the Tax Conference committee chaired by Sen. Tom Bakk and Rep. Ann Lenczewski eliminated a provision that had been inserted into the program earlier in session that said no more than 50% of your land could be enrolled in the new Rural Preservation Land program, which basically meant that at least 50% of your land had to be "productive". The bill also makes land-owners in Green Acres subject to cross-compliance for a variety of state enforcement actions such as pesticide and wetland violation, parties that are given final notice of a violation at least 2 times in 3 years will lose their tax preference for 3 years.
NFU and climate change
NFU is calling on members of the House Agriculture Committee to remember the unique role America's farmers and ranchers can play as climate change legislation is considered in the coming weeks. In a letter sent recently to Chairman Collin Peterson, D-MN., NFU President Roger Johnson expressed the organizations priorities and concerns relative to the cap and trade section of the American Clean Energy and Security Act of 2009. Johnson said that failure to pass climate change legislation could lead to regulation of greenhouse gas farm emissions by the Environmental Protection Agency (EPA). "A purely regulatory approach to addressing greenhouse gas emissions will bring all of the downside of increased energy inputs and none of the upside of carbon offset
opportunities. Balancing environmental goals with consumer and economic impacts is a difficult task, yet it is imperative for Congress to act," Johnson said. "Without a robust and flexible agriculture offset program, America's farmers and ranchers will be unable to mitigate increased input costs that will occur as a result of a cap and trade program," Johnson said. Johnson commended the legislation for not subjecting agriculture to an emission cap. NFU policy supports a national, mandatory carbon emission cap and trade system, provided the U.S. Department of Agriculture (USDA) is granted control of the agriculture offset program; early actors are recognized; no artificial cap is placed on domestic offsets; carbon sequestration rates are based on science; and producers are permitted to stack environmental benefit credits.
NFU supports E-15
NFU submitted comments to the Environmental Protection Agency (EPA) today calling for an increase in the allowable ethanol content of gasoline beyond the current 10 percent limit. NFU's comments came in response to waiver request by Growth Energy and 51 ethanol producers to the Clean Air Act. "Approving this waiver will enable continued growth of the ethanol industry and lead to the next generation of biofuels," Johnson said.
The Renewable Fuels Standard (RFS2), which was passed as part of the 2007 Energy Bill, requires the use of 36 billion gallons of renewable fuels by 2022. In the near term, the RFS2 requires 13.15 billion gallons of ethanol by 2012. A recently published North Dakota State University study found that increasing the ethanol cap to E15 will directly lead to the creation of 136,000 new jobs, $24.4 billion in economic activity, and displace seven billion gallons of imported gasoline each year. Johnson said such a boost to the American economy is sorely needed.
EPA extends deadline
The EPA has extended the comment period on the E15 waiver request by 60 days. The new deadline for comments in now July 20, 2009. An easy way for members who wish to submit comments is to go to www.goE15.com .
New Organic Program
MDA is advising organic farmers and farmers transitioning to organic to act fast in order to benefit from a new Organic Initiative offered by the United States Department of Agriculture's Natural Resources Conservation Service (NRCS). More than $1.75 million is available in Minnesota, and the signup period for this year's special pool of funds is now through June 30th. This is the first year of the Organic Initiative, which was authorized in the 2008 federal Farm Bill. The program offers financial support and technical assistance to help farmers adopt and implement conservation practices that are suitable for organic production. Per acre payments are available for any or all of the following practices: conservation crop rotations, cover crops, nutrient management, pest management, prescribed grazing, and forage harvest management. To learn more about the program or to apply, organic producers and those transitioning to organic production should contact the NRCS field staff at their county USDA Service Center. For a list of NRCS Service Centers in Minnesota, visit: http://offices.sc.egov.usda.gov/locator/app.
Neaton new MN NFO President
MFU President Doug Peterson congratulates Carver County farmer Joe Neaton on becoming the President of the Minnesota National Farmers Organization. Neaton is a long time member of Farmer Union.
Rochester Train
MFU participated in a meeting with the Rochester Coalition this past week to hear more about proposed idea of Rochester hooking into the proposed high speed rail line between Chicago and the Twin Cities. The Rochester Coalition made up of the Mayo clinic, the City of Rochester, Olmstead County, and the Rochester are Chamber of Commerce, are trying to see how the Rochester area could participate in a high speed rail line, and proposed the idea of a track running south of the city and then up into Dodge County. For agriculture it is a wait and see the details kind of situation, on one hand the coalition is claiming the improved track could help move ag commodities, but the proposed route is sure to cut through some farms and prime ag land. MFU will continue to work on the issue and members who have questions about the issue should contact us. You can also check out this website for more info: http://www.southernrailcorridor.org/
MFU golf fun day
MFU President Doug Peterson invites all members and friends to attend the 2nd annual MFU and MN Farmers Union Insurance Agencies Golf Fun Day on June 25th at the Sandhill Golf Course, Fertile MN. All proceeds go toward helping update the MN Farmers Union Youth Camp at Lake Sarah, near Erskine, MN. Golfing is $40.00 per person, cart rental available, two person scramble, shotgun start at 1:00 p.m., Registration is one hour before start. All golfers and donors can offer money or prizes with their name of business on the prize. The support will go toward Golf Fun Day contests and door prizes. Golfers and sponsors are invited to the social, awards and buffet dinner starting at 4:30 p.m. at the Sandhill Supper Club, please let me know, to help plan a number for dinner. Sponsorship of the Golf Fun Day, please Contact Ken by phone 218-206-4499 or email at pazdernik@loretel.net. You can also contact Bruce Miller at the MFU office at 651-288-4064 or bruce@mfu.org.
MFU Camps
MFU is holding 5 summer camps for youths this year, they are an excellent experience and very affordable, checkout this link for more info: http://www.mfu.org/node/84
That is all for now, as usual, questions, comments and complaints to me!
Thom Petersen, Director of Government Relations, MN Farmers Union