Minnesota Farmers Union

Notes from the Minnesota Farmers Union Friday July 23, 2010

MFU President Doug Peterson letter to editor on GISPA rule

John F. Kennedy once said, "The farmer is the only man in our economy who buys everything at retail, sells everything at wholesale, and pays the freight both ways." The dinner tables of America need farmers to receive a fair price, and that is why Minnesota Farmers Union (MFU) was pleased to hear that the United States Department of Agriculture (USDA) has announced a proposed rule change to the Grain Inspection Packers and Stockyards Administration (GIPSA). 

The proposed rule would bring common sense to GIPSA and change the current system of how livestock are procured and marketed by meat packers. The rule includes several new provisions that will grant protection to producers from previous marketing barriers, which have favored the packers, with a goal of defining and changing unfair and unreasonable practices in the industry.

Advocating for fair, transparent and competitive markets has always been a core issue for MFU, and these proposed rule changes is a step in the right direction. MFU is pleased to see that finally there is a legitimate department and administration level proposal to correct the many years of one-sided marketing that farmers have faced when selling their farm products. Key elements that MFU supports are:

• packers would be prohibited from purchasing, acquiring or receiving livestock from other packers, which increases competition for independent livestock producers;
• the allowance for a producer to present individual harm cases only, and no longer require proof of harm to regional competition when bringing a claim about an alleged anti-competitive practice; and
• Producers will be given the option to decline the use of mandatory arbitration to settle a dispute and go to trial if necessary.

 

MFU and National Farmers Union have expressed concern about increased consolidation and vertical integration in the livestock, grain, and poultry marketplace and shrinking farm numbers, and it seems like the USDA finally took our concerns to heart by announcing these proposed GIPSA rule changes. The heart of the matter is simply increasing farm numbers and increasing farm gate profit. The dramatic shrinking of cattle and hog farms only highlights the need for rule changes. With cattle, there were over 1.6 million farms in 1980, but only about 950,000 today.  In regards to hogs the numbers are highlighted even more because producers received 50 percent of the retail value of a hog in 1980 and only received 24.5 percent in 2009. It is very important for anyone who has a stake in this to submit your comments to the record so the USDA gets a full understanding of how the current rules impact your farm or ranch. You can access the rules by going to www.gipsa.usda.gov, click on Federal Register, which is on the right side, and then go to the June 22 Federal Register. MFU will be submitting comments, and I strongly encourage farmers and ranchers who have a stake in this to submit your comments to the record. The comment period ends August 23, 2010. They can be sent via email to, comments.gipsa@usda.gov, or sent by mail to Tess Butler, GIPSA, USDA, 1400 Independence Avenue, SW, Room 1643-S, Washington, D.C. 20250-3604. Make sure your voice is heard, and comment on the GIPSA rule today!

 

MFU at FarmFest shaping up

 

MFU has been busy preparing for the annual FarmFest farm show near Redwood Falls August 3-5^th. Among the highlights for MFU will be the Governor's candidate's forum on Wednesday in which MFU President Doug Peterson will be among the panelists asking questions and a carbon forum on Tuesday in which NFU VP of Gov't Relations Chandler Goule will be a panelist. MFU is also a host of the annual Women's breakfast on Thursday morning and Farmers Union Insurance Agency his again sponsoring the "kiddie tractor pull". Be sure to stop by the MFU booth at 412N near the forum tent. For more info on FarmFest checkout: http://www.farmshows.com/ffst/index.po

 

MN Dept. of Ag releases ethanol numbers

Minnesota's ethanol industry generated more than $2.5 billion in economic activity in 2009 and supported more than 6,800 jobs according to a new report from the Minnesota Department of Agriculture (MDA).  Ethanol production in the state increased to 862 million gallons in 2009 from 550 million gallons five years ago.  The MDA report estimates the industry is on tap to increase production to 1.1 billion gallons this year with a projected economic impact of $3.1 billion and approximately 1,500 additional jobs. Minnesota Agriculture Commissioner Gene Hugoson says the rebound is good news for the state's 21 ethanol plants, half of which remain farmer-owned cooperatives. In 2009, Minnesota processed 308 million bushels of corn into ethanol or about 29 percent of the state's total corn crop.  This year the industry is projected to process 400 million bushels of corn or about one-third of the state's crop. Minnesota Corn Growers Association President DeVonna Zeug says the ethanol industry is an important economic driver for the state. MDA's 2010 Minnesota Ethanol Industry Report can be viewed online at www.mda.state.mn.us/ethanol.

Volunteer at the MFU State Fair booth

MFU members interested in volunteering a few hours at the MFU booth at the Minnesota State Fair (August 26-Sept. 6^th) should contact MFU Office Manager Janell Walter at 651-288-4063 or janell@mfu.org . MFU is also looking for volunteers on Tuesday August 31^st for the MNCOOKS program. MFU provides tickets to the fair for members the day they volunteer.

NFU works on "Know your farmer, know your food" program

NFU President Roger Johnson issued the following statement, praising the U.S. Department of Agriculture's (USDA) 'Know Your Farmer, Know Your Food' initiative: "NFU applauds the efforts Deputy Secretary Merrigan and everyone at USDA have put forth to educate the public on the through the 'Know Your Farmer, Know Your Food' initiative. Everyone involved in agriculture has an obligation to educate the public on the hard work that is done each day to produce and distribute safe, healthy and reliable food supply. "USDA and NFU staff met to join forces in the promotion of this valuable project. Many myths have surrounded the program, and we are working together to bring to light accurate information. Contrary to what opponents may have said, this initiative is inclusive of all agriculture, from organic to traditional and small to large producers of all agricultural products and services. "While this initiative promotes buying locally-produced foods, it is realistic. Everything you put on your table is not grown in every region, nor is everything produced year-round. This is an effort for consumers to make a conscious effort when making purchases when there is a local option. "NFU will continue to assist USDA with the 'Know Your Farmer, Know Your Food' initiative and encourages everyone to learn about the program and spread the message in their local communities. With the 2012 Farm Bill on the horizon, all of agriculture must come together in every way possible to provide a united front for farmers, ranchers and consumers." To learn more about the initiative, visit www.usda.gov/knowyourfarmer.

 

Klobuchar introduces "SAFEST" energy legislation

 

MFU policy is very supportive of U.S. Senator Amy Klobuchar's (D-MN) legislation introduced recently with Senator Tim Johnson (D-SD) that focuses on developing and deploying safe, reliable domestically grown and produced energy.  The Securing America's Future with Energy and Sustainable Technologies Act (SAFEST) establishes strong renewable energy and energy efficiency standards, incentives for developing biofuels and biofuel infrastructure, and targets for the availability of advanced vehicle technologies.  "The strength of our nation is tied to the strength of our energy economy," Klobuchar said. The Klobuchar-Johnson legislation would develop American homegrown energy technologies by providing long-term incentives for the development of renewable fuels, renewable electricity, and increased energy efficiency.  Specifically, the legislation would:

 

• Establish a strong renewable electricity standard of 25 percent renewable energy by 2025
• A strong energy efficiency resource standard (1 percent per year)
• A long-term extension of tax credits for ethanol and biodiesel
• New incentives for biofuels infrastructure and deployment
• Targets for the availability of advanced vehicle technologies

In addition to reducing U.S. dependence on foreign oil, the bill would have a positive economic impact.  The American Council for Energy Efficiency estimates that the national energy efficiency resource standard in the bill would create energy bill savings of $168.6 billion by 2020, enough energy to power approximately one-third of all households in the United States.  Recent studies indicate that the renewable electricity standard in the bill could create more than a quarter-of-a-million new jobs and reduce greenhouse gas emissions by 20 percent in 2020. The domestic biofuels industry employs 500,000 farmers, producers, and processors.  The long-term tax incentives and new provisions for biofuels infrastructure included in the bill are expected to create jobs, provide an economic boost to rural communities, and significantly reduce our dependence on foreign oil. In addition to MFU the SAFEST bill has been endorsed by Growth Energy, the American Wind Energy Association, the Renewable Fuels Association, Minnesota Soybean Growers Association, the National Corn Growers Association, the National Farmers Union, American Soybean Association, and the National Biodiesel Board.

 

 

ELAP assistance provided

 

USDA Farm Service Agency's Minnesota State Executive Director, Linda Hennen, announced that over $350,000 in disaster assistance is being sent to Minnesota livestock, honeybee and farm-raised fish producers that suffered losses in 2009 because of disease, adverse weather or other conditions. The aid will come from the Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program (ELAP). Other disaster assistance programs covered by the 2008 Farm Bill disaster assistance payment program are the Livestock Forage Disaster Program (LFP), Livestock Indemnity Program (LIP), and Supplemental Revenue Assistance Payments (SURE) Program. ELAP benefits related to 2010 losses are expected to be issued in early 2011.

 For more information about USDA Farm Service Agency disaster assistance programs, visit http://disaster.fsa.usda.gov or visit your local FSA county office.

 

Growth Energy releases plan

 

Growth Energy, a coalition of U.S. ethanol supporters, today called for the redirection and eventual phasing out of government support for ethanol in return for a level playing field - infrastructure investments that will create competition in the fuels market and give consumers true freedom to choose their fuel. The "Fueling Freedom" plan calls for the phasing out of current ethanol supports over time, by redirecting a portion of those funds to build out the infrastructure for the distribution and use of ethanol, and shifting the remaining portion away from the oil companies to opening the market. The primary elements of the plan include:

• Funds currently going to the oil industry as an incentive for blending ethanol into gasoline (the VEETC) would be redirected to provide backing for the build out of distribution infrastructure for ethanol - such as tax credits for retailers to install 200,000 blender pumps and federal backing of ethanol pipelines. This will provide Americans the access to choose ethanol in an open and free market, and would allow for the elimination of the tax supports over time in exchange for that level playing field.
• Requiring that all automobiles sold in the U.S. be flex-fuel vehicles - as many as 120 million. This requires no additional cost to taxpayers and a minimal cost (about $120 per vehicle) to vehicle manufacturers.

Growth Energy's Fueling Freedom plan, once implemented, would build out the infrastructure in the United States to create a path that leads to a genuinely free market - an open market that is free of government supports. Redirecting monies currently paid to oil companies to blend ethanol into gasoline toward the ethanol producer and infrastructure improvements would enable consumers to choose between gasoline and renewable, homegrown ethanol. MFU appreciates members input on this plan.

 

NFU continues work on estate tax

 

NFU applauds the work of U.S. Sens. Blanche Lincoln (D-Ark.) and Jon Kyl (R-Ariz.) on their work toward a permanent solution to the current estate tax code.  "NFU policy states the estate exemption should be $4 million per person," said Johnson. "It is imperative the exemption also be indexed to inflation; provide for spousal transfers; and include the stepped-up basis." The proposal released by Lincoln and Kyl would require the Senate Finance Committee to amend H.R. 5297, the Small Business Lending bill, to permanently set the estate tax rate at 35 percent, with a $5 million exemption amount phased in over 10 years and indexed for inflation.  It would also provide a "stepped up basis" for inherited assets. NFU will continue to work with the Senate in order to come to an agreement in policy that will benefit U.S. farmers, ranchers and their communities in order to secure agricultural businesses so they may be passed on to future generations with minimal repercussions.

 

MFU donates to Wadena County Fair

 

Wadena County Farmers Union President Mel Kinnunen presented a check from the MFU Foundation to the Wadena County Fair Board towards paying for a new fence at their county fairgrounds which was destroyed in the recent tornado that ripped through the town. Kinnunen also asked MFU to pass along a website to help re-plant many trees that Wadena lost, checkout: http://www.treesforwadena.com/

 

Lessard Council

 

MFU recently received a letter from the Lessard-Sams Outdoor Heritage Council in which Executive Director William Becker responded to questions raised by MFU at a recent Council meeting about farm representation on the board. The letter notes that of the 12 members on the council 2 have ag backgrounds; Rep. Rick Hansen (who keeps and interest in the family farm in SE MN) and Wayne Enger who is the Co. ED for the USDA FSA in OtterTail Co. Becker notes that seats will be turning over and encourages farmers to apply. More info can be found at: http://www.lsohc.leg.mn/Member/index.html

 

Walk-in access moving along

 

As instructed by Gov. Tim Pawlenty the MN DNR is moving forwards with plans to create a walk-in access hunting program in Minnesota. The USDA recently made available $50 million in funds authorized in the last farm bill through a program known as "open fields" that will help fund state programs. MFU is working to coordinate a meeting with state agencies and other parties to discuss farm concerns about the program.

 

MFU members pass

 

2 well-known MFU members passed away recently, Don Tentis from Wabasha County and Gillie Maus from Morrison County. I learned a lot from both of these men, and was glad to have visited with both of them at last years county conventions, MFU sends condolences to their families.

 

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

 

Thom Petersen, Director of Gov't Relations, MN Farmers Union