Minnesota Farmers Union

Notes from the Minnesota Farmers Union Friday April 30, 2010

House, Senate pass Agriculture Policy bill

This past week the MN House passed HF 2737 the omnibus agriculture policy bill 127-3, the Senate passed their bill April 19th 66-0. The Senate has already appointed Sens. Skogen, Vickerman and Dille as conferees. The House will likely appoint their conferees on Monday. The bill includes many pieces of legislation MFU has worked on including bovine Tb, the corporate farm law, wind easements, 4-H, ethanol, priority for feed dealers in Farmer-Lender mediation, and the House bill also includes industrial hemp language. Members who have specific questions about the bill should contact me. Here is a link for more info: HF 2737

Tax bills moving

The Minnesota Senate has passed its Omnibus Tax bill, SF 3327, out of Committee and sent it to the floor for a vote. There are a few provisions in it of interest to MFU and agriculture. One piece in the bill MFU supported and was raised at the Crow Wing County Farmers Union convention allows farmers to pay their property taxes in two payments, spring and fall if their parcel is $100 or less. Current law is $250 which was changed from $50 last year. Farmers who farm small parcels did not like this change, especially if you have multiple small parcels. The bill also contains language to better guide the Dept. of Revenue when they calculate the Green Acres value each year. MFU was disappointed there was not more language in the bill to address rising property tax values and Green Acres, specifically the new Rural Preserve program, but is working with Senators on amendments for the floor vote. The House will release its omnibus tax bill Monday.

Walk-In Access program

This week the Senate will vote on the Omnibus Game and Fish bill that includes language creating a voluntary walk-in hunting access program on farmland in 16 SW Minnesota counties. MFU has opposed this legislation all the way through the process due to concerns about liability, trespassing, and on-going funding. In polling MFU members across these 16 counties, opposition to creating a program has been near-unanimous from farmers. MFU will continue to work on the program that if passed will still need lots of work and will have plenty of opportunity for input.

MFU opposes water monitoring fee

The House Outdoor Heritage bill (HF 3790) which is making its way through the committee process establishes a new water monitoring fee of .0008 cents per gallon (.0006 beginning July 1, 2015, or when the groundwater monitoring wells are complete whichever comes first) on water used in the 11-county metropolitan area that is credited to the new metropolitan area groundwater monitoring matching account established in the next section. For farmers in the 11 county area the cost per well would go from the current $140 to an average of $350. Rep. Tim Faust offered an amendment in Ways and Means Committee to remove the fee increase, but it was defeated by a 10-11 vote. The Senate removed the fee language for agriculture in the Finance Committee. MFU has opposed the fee increase after hearing concerns from members in Dakota, Anoka, Isanti and Sherburne Counties who were concerned about the fee increasing so drastically.

NFU submits testimony on trade with Cuba

This week, NFU President Roger Johnson submitted testimony to the House Ways and Means Committee Subcommittee on Trade, concerning Cuba policy. In his testimony, Johnson expressed NFU's support of the Travel Restriction Reform and Export Enhancement Act (H.R. 4645), the legislation sponsored by House Agriculture Committee Chairman Collin Peterson. "I have personally led eight trade-related missions to Cuba," said Johnson. "I can speak from firsthand experience on the importance of ending the Cuban embargo and establishing trade relations with Cuba in an effort to better the U.S. agriculture market." NFU supports the Travel Restriction Reform and Export Enhancement Act and commends Chairman Peterson's leadership on this bill. The legislation contains a provision to eliminate the expensive and discriminatory requirement that payments to U.S. agricultural sellers must pass through banks in other countries. This bill would allow direct financial transactions for agricultural sales to Cuba; require agricultural exports to Cuba to meet the same payment requirements as exports to other countries; and allow U.S. citizens to travel to Cuba.

House Ag Committee to hold farm bill hearing in Sioux Falls

The House Agriculture Committee, chaired by Rep. Collin Peterson is holding 2012 farm bill hearings around the country this spring and MFU President Doug Peterson is likely to attend the upcoming one is Sioux Falls, S.D. on May 18th. Checkout these details:

Tuesday, May 18th - 8:00 a.m. CDT

2nd Floor Theater

Edith Mortenson Center, Augustana College, Sioux Falls, SD

Full Committee on Agriculture - Public Hearing

RE: To review U.S. agriculture policy in advance of the 2012 Farm Bill.

The House Agriculture Committee web site http://agriculture.house.gov has additional information on this and other subjects.

USDA-DOJ dairy hearing in Madison

Dairy will be the main focus at the DOJ-USDA hearing which has been moved to June 25, 2010 in Madison Wisconsin. MFU is gauging interest in membership in taking a van to Madison for the hearing. If you are interested please contact me. We would likely go the night before and stay over and then come back to Minnesota after the hearing. For more info on hearings checkout: http://www.justice.gov/atr/public/workshops/ag2010/index.htm

NFU President to attend MFU summer retreat and board meeting

NFU President Roger Johnson will be one of the guest speakers at the MFU summer board meeting and "Focus on the Future" retreat June 13-15 in Walker, Minnesota. Besides the full board meeting of county presidents who will hear administration, budget, membership, education, and legislative updates, MFU will also be hosting "emerging community leaders" for the retreat. Interactive sessions will be held on MFU policy, education, county and local functions, and social networking. For more info on the retreat or board meeting contact MFU Office Manager Janell Walter at 651-639-1223 or janell@mfu.org .

Oberstar introduces Clean Water Act Legislation

Rep. Jim Oberstar recently introduced a bill that Oberstar says would restore the authority of the Clean Water Act after the law was "handcuffed" by U.S. Supreme Court decisions. America's Commitment to Clean Water Act (H.R. 5088) will reverse two decisions the high court made in 2001 and 2006 that have thrown the nation's clean water programs into turmoil. The rulings Oberstar says cut back on the authority of the Clean Water Act to regulate lakes, rivers, streams and wetlands across the U.S and created confusion and uncertainty for communities, developers, and agricultural interests. They also placed at risk the nation's ability to restore, protect, and maintain water quality and the water-related environment. "We have 10,000 lakes in Minnesota; 40 percent of all the lakes and streams covered by the Clean Water Act remain in danger or polluted," said Oberstar. "I don't want 4,000 lakes in Minnesota to be exposed to the danger of pollution." Oberstar expects to begin committee work on the bill before June and expects the legislation to win passage with bipartisan support on the House floor. A similar bill is expected to be considered by the full Senate this summer. At MFU's urging Oberstar has written a letter to agriculture, check it out here: Oberstar Water letter . MFU is reviewing the new legislation and will discuss with members and compare to policy before supporting.

USDA/US DOT Release Walz Transportation Study

This week, the USDA and the USDOT released a report to study freight transportation issues facing rural America. The study focused on freight rail, particularly as it relates to the movement of agricultural inputs and commodities, renewable fuels, and coal. The study was mandated by a Walz amendment to the 2008 Farm Bill. "The transportation of agricultural products is critical to our rural economy," said Walz. The Study of Rural Transportation Issues, conducted jointly by USDA and the Department of Transportation, examined the effect of deregulation on the rail industry, the reasonableness of rates and the reliability of service, how better policies can improve the flow of freight through all modes of transportation and whether the federal grievance process for shippers is too cumbersome to be effective. This study reaffirmed that freight rail is a critical mode of transportation for rural America. It also confirmed that decreased competition in the rail industry has led to increased rates for shippers and ultimately, consumers who are buying groceries or paying their electricity bills. To read the study, please click here.

Open Lot Time running short

In March 2009 the MPCA, MDA, and BWSR signed a Memorandum of Understanding that after Oct. 1, producers who signed an Open Lot Agreement (OLA) and have applied for and maintain eligibility for cost-share, will continue to receive a conditional waiver from enforcement penalties until cost-share is available for corrective measures. The deadline for Minnesota livestock farmers to come into compliance with the Open Lot Agreement (OLA) is fast approaching. If you have not visited with your local SWCD and NRCS offices about cost-share opportunities, or if you have yet to discuss OLA compliance options with your County Feedlot Officer (CFO), you need to do so before October 1. Producers who signed an Open Lot Agreement and have applied for and maintain cost-share eligibility will continue to receive a conditional waiver from enforcement penalties until cost-share is available for corrective measures. Since October 2000, livestock producers having open feedlots with fewer than 300 animal units (AU) had the option to sign an OLA (7020.2003, subp. 4, and 7050.0305), whereby they committed to correct their open lot runoff problems in exchange for a flexible time schedule for compliance and a conditional waiver from enforcement of penalties for past violations of water quality standards. Interim measures were to be completed by October 1, 2005, and final corrective measures by October 1, 2010. For more information as well as to download forms, go to http://www.pca.state.mn.us/hot/feedlot-openlot.html

House Released Section 179 research

The following publication has been updated and is now posted on the Minnesota House Research web site: Section 179 Expensing under the Federal and Minnesota Income Tax Conforming Section 179 of the Federal tax code dealing with accelerated depreciation has been a priority issue for MFU for several years.

USDA Issues Federal Order Regarding Bovine Tuberculosis

A Federal Order has been issued recently by the U.S. Department of Agriculture (USDA) to suspend enforcement of a portion of the bovine tuberculosis (TB) regulations in the U.S. As a result many states have reduced their TB testing requirements for cattle moving out of Minnesota's Modified Accredited Advanced (MAA) Zone. Producers should contact the receiving state to verify shipping requirements prior to exporting cattle.

Under the Federal Order, the USDA will have the authority to determine whether or not to downgrade a state's TB status based on a scientific analysis of risk. Previously, if two or more infected cattle herds that were not epidemiologically connected were found in a TB-Free state, that state would automatically lose their free status and be downgraded to Modified Accredited Advanced. Under the new Federal Order, the USDA would have the option to downgrade the state's status depending on the risk of disease transmission as well as the efforts put forward by the state to eradicate the disease and conduct surveillance testing. The Federal Order will also suspend the federal rule requiring breeding cattle to be TB tested before leaving a Modified Accredited Advanced Zone. However, certain states may choose to maintain the TB test requirement for cattle being

imported from Minnesota. Last year, USDA announced that it would be revising the national TB program to take a new approach to managing the disease. The agency is currently working on writing new rules, which will then be submitted for review and a public comment period. This is a meticulous process that can take a significant amount of time. The Federal Order is considered by the USDA to be an 'interim measure' which will be in place until the new rules are issued. For additional information on Minnesota's bovine TB response, please call the hotline at 1-877- MN TB FREE (668-2373) or visit www.mntbfree.com.

MFU camp sign up underway

The dates and locations for the 5 MFU summer camps have been announced and more information can be found at http://www.mfu.org/education/programs . MFU has also created a short video highlighting some of the camp activities; you can find it on the MFU YouTube Channel: http://www.youtube.com/watch?v=cFxSTwIldKs

Bill introductions of note

Hilty introduced: H. F. 3814, A bill for an act relating to energy; modifying provisions related to electricity generated from anaerobic digester systems; amending Minnesota Statutes 2008, section 216B.164, subdivisions 3, 4.

Olin introduced: H. F. 3815, a bill for an act relating to natural resources; requiring the commissioner of natural resources to implement management strategies for deer in the bovine tuberculosis management zone.

Erickson-Ropes introduced: S.F. No. 3385: A bill for an act relating to public health; providing regulation of commercial breeders to protect public health and animal welfare; requiring registration; providing penalties; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 145.

Welti introduced: H. F. 3803, A bill for an act relating to property taxation; allowing property used for growing agricultural products used in the production of wine to be eligible for the green acres program; amending Minnesota Statutes 2009 Supplement, sections 273.111, subdivision 3; 273.13, subdivision 23.

That is all for now, as usual, questions, comments, and complaints to me!

Thom Petersen, Director of Government Relations, MN Farmers Union