SDFB Leader Connection

In this issue:     Final Farm Bill Package
                        Interim Committee Assignments
                        Risk-Management Webinar Series for Pork Producers
                        CSP Sign-up Extended
                        Research into Food Trends
                        Calling All Century Farms
                        YF&R Discussion Meet Questions
                        Stop Evil in its tracks – A Trent Loos Commentary
                        Quote of the Day

 May 12, 2008

 Upcoming events:

SDFB Youth Camp – June 9-11, Chamberlain
Dakota Fest – August 19-21, Mitchell
Century Farms recognition – August 28, Huron
SDFB Annual Meeting – November 21-22, Sioux Falls
National Farm-City Week – November 21-27
AFBF Annual meeting – January 11 – 14, San Antonio, TX

Final Farm Bill Package  

The farm bill is expected to go to the floor of both the House and Senate this week.

            Actual legislative language is not expected until sometime today, so extremely detailed information on specific provisions is not yet available. When legislative language becomes available, it will be posted on the House and Senate Agriculture Committee websites.

            Some key points…

  • Nutrition spending will account for 73.5 percent of the new farm bill which currently carries a 10-year cost of nearly $610 billion
  • 16.1 percent of farm bill dollars will go to commodity programs, crop insurance and disaster assistance

·         The bill eliminates the “three entity rule” and implements reformed payment caps for commodity program benefits.

o    Individuals with more than $500,000 in 3-year Adjusted Gross Income of off-farm income will be ineligible to receive any payments;

o    Individuals with more than $750,000 in 3-year Adjusted Gross Income of farm income will be ineligible to receive direct payments;

·         Farm income includes what’s on Schedule F and it has been expanded to include farm-related businesses.

·         The bill contains a non-farm payment limit on conservation payments of $1 million.  The Secretary may issue a waiver for projects involving federal environmental benefits.  However, for farmers with more than $1 million in Adjusted Gross Income but two-thirds is from farming, there is no limit to conservation payments.

·         The new Average Crop Revenue Election (ACRE) option for revenue protection will start in 2009.  If farmers opt for ACRE, they would give up 20 percent of their direct payment and take a 30 percent cut in their loan rate in exchange for a counter-cyclical payment at 90 percent of the national-average price.  CBO has estimated 70 percent to 80 percent of corn and soybean farmers would go for ACRE.

·         The Dairy Import Assessment will be imposed on dairy products that are imported into the U.S. and Hawaii, Alaska and Puerto Rico.

House Ag Committee Chairman Collin Peterson (D-Minn.) indicated he is reluctant to put out the final language until the bill is scored by CBO.  He hoped to have final scoring by Friday or Saturday with the final bill language posted Monday morning. Following that timeline would give lawmakers 48 hours to review the bill, Peterson said, adding that their intention is to file the bill Tuesday and have it on the House floor on Wednesday. Senate Majority Leader Harry Reid (D-Nev.) also has indicated he wants the bill on the Senate floor this coming week.

Lawmakers expressed a hope for veto-proof majorities in their respective chambers on this farm bill. USDA Secretary Ed Schafer said in a statement that the bill lacked the reforms the administration wants and “President Bush will veto the bill.” Following is the statement: 

“Today, the United States House and Senate announced the completion of a farm bill that unfortunately fails to include much needed reform and increases spending by nearly $20 billion. At a time of record farm income, Congress decided to further increase farm subsidy rates, qualify more people for taxpayer support, and move programs toward more government control. We should not remove farm commodities from market forces and make them dependent upon government support programs.

“In addition, Congress decided to include a new permanent disaster program. This program represents a return to outdated farm policy and questions the government’s investment in crop insurance which was designed to protect farmers against low commodity prices and crop failures. This action will discredit farm programs and jeopardize public support for future farm bills.

“Americans appreciate our farmers and ranchers and understand the uncertainties and risks that farming presents. However, they do not understand why their taxes should be used to provide payments to individuals with adjusted gross incomes of $500,000 and higher, some of the wealthiest people in America.

“We are also concerned about a lengthy list of extraneous provisions that are not related to farm programs and have no place in this legislation.

“For a year and a half, the Administration has been consistently clear that Congress needs to move forward with a good farm bill that the President can sign. They have failed to do so. This legislation lacks meaningful farm program reform and expands the size and scope of government. I have visited face to face with our President and he was direct and plain. The President will veto this bill.”

 

Interim Committee Assignments

The Executive Board of the SD Legislative Research Council votes this morning on several interim committee assignments.  Of particular interest:

Department of Game, Fish & Parks review:

Senator Tom Hansen (Chair)             

Representative Eldon Nygaard

Representative Tom Brunner (Vice-Chair)

Representative Betty Olson

Representative Mark DeVries            

Senator Ed Olson

Representative Dale Hargens             

Representative David Sigdestad

Representative Gordon Howie          

Senator Nancy Turbak-Berry

Representative Kent Juhnke              

Representative Kim Vanneman

Senator Ryan Maher

 

Governor’s Office of Economic Development review:

Representative Phyllis Heineman (Chair)

Senator Jason Gant

Senator Kenneth Albers (Vice-Chair)

Senator Jim Hundstad

Senator Julie Bartling

Representative Roger Hunt

Representative Quinten Burg                        

Representative Larry Lucas

Representative Thomas Deadrick

Representative  Russell Olson

Representative Brian Dreyer

Representative Chuck Turbiville

Representative Rich Engels

 

SD Highway Needs and Financing:

Senator Cooper Garnos (Chair)

Representative Garry Moore

Representative Gordon Pederson (Vice-Chair)

Senator Bill Napoli

Representative Dan Ahlers

Representative Ryan Olson

Senator Jerry Apa                                          

Senator Jim Peterson

Representative Jamie Boomgarden

Representative Jim Putnam

Representative Jim Bradford

Representative  Val Rausch

Representative Tom Hackl

Representative Mike Vehle

Senator Alan Hoerth

Representative Hal Wick

Representative Shantel Krebs

 

 Risk Management Webinar Series for Pork Producers

Pork Checkoff and CME Group have developed an interactive, online educational series on risk management.  The series offers both an Introductory and Advanced Track:

Introductory Track:        The Introductory Track webinars run from 12:00 – 12:30 p.m. Central Time, plus Q&A

                                                                                                         OR 4:00 – 4:30 p.m., Central Time, plus Q&A

Monday, May 19 – Futures and Options: The Basics
Tuesday, May 20 – Introduction to Hedging
Wednesday, May 21 – Developing a Marketing Plan
Thursday, May 22 – Trading Tools and How to Get Started

Advanced Track:

Tuesday, May 27 – Role of the Lender in Risk Management
·         Understanding “crush margin”
·         Understanding how external factors influence the market
·         How to cope with volatile times

Wednesday, May 28 – Systematic Risk Management
·         Inventory management
·         Breakeven cost accounting
·         Group-by-group market risk analysis

Thursday, May 29 – Advanced Hog Margin Management
·         Forecast forward margins based on current commodity prices
·         Evaluate those forward margins and your contracting choices
·         Implement the margin management plan that best fits your operation

The Advanced Track seminars run each day from 2:00 – 2:45 p.m. CT, plus Q&A

There is no charge for the webinars.  You can register for the track of your choice at www.cmegroup.com/porkwebinars.  The registration deadline is Friday, May 16.  If you have questions, please contact the SD Pork Producers Council at 605-332-1600, or Pork Checkoff at 800-456-7675.

 USDA extends sign-up for 2008 CSP

Conservation Security Program sign-up will run through May 30, 2008

Producers in 51 eligible watersheds nationwide have two additional weeks to apply for Conservation Security Program (CSP) in fiscal year 2008. The sign-up now ends on May 30, 2008.

Originally, the CSP sign-up was scheduled to run from April 18-May 16, 2008.  Agricultural producers in the Middle James watershed, which includes portions of Beadle, Brown, Clark, Day, Hand, Jerauld, Kingsbury, Minor, Sanborn, and Spink counties; or the Beaver watershed, which includes portions of Custer, Fall River and Pennington counties, may be eligible for this sign-up.

CSP, a voluntary program, encourages and rewards producers who practice outstanding stewardship on working agricultural land by offering financial incentives that increase with the level of conservation effort. Soil and water quality are the primary focus of this program; however, program goals also include improved wildlife habitat, air quality, and environmentally responsible energy production.

USDA-NRCS began CSP in fiscal year 2004.  Currently, there are 331 enrolled watersheds covering nearly 248 million acres eligible for CSP nationwide. These numbers include the 51 watersheds in this fiscal year’s sign-up and their acreage, which were first announced in September 2006.

For more information about CSP and eligibility requirements, please visit http://www.nrcs.usda.gov/programs/csp. 

 Research into Food Trends…

'Junk-Free' Foods
Processors in the United Kingdom and Australia have started using "junk" to refer to additives, preservatives, artificial flavors and artificial colors, leading to food packaging claims such as "junk-free.”  This is a way of framing these ingredients less scientifically and more emotionally, especially since most of these label claims are appearing on products geared toward children.
Salt as a positive and a negative
Although there is growth in introductions of products containing specialty salts such as sea salt or salt from other specific sources, salt is increasingly being positioned by health professionals as a serious health risk, leading to a rise in low-sodium offerings.
Clean labels
Consumers are looking for purity in foods, and products with ingredient statements using simple language are one way to convey a purer product. In addition to the label, clear packaging is another facet of this trend, allowing consumers to see the product, and not just a beauty shot on the front of the package.
Carbon footprint — redefined
Accurately calculating the carbon footprint of a single product is very difficult if not impossible, which is why food processors may move away from trying to emphasize particular products' carbon footprints. Instead, look for broader corporate green initiatives to take center stage and be promoted on companies' Web sites.
Restaging of healthy eating
"Diet" is becoming a four-letter word for consumers, and the idea of health is evolving to encompass balanced choices, rather than simply eliminating what's "bad." There is an increasing emphasis on healthy living overall, rather than healthy eating alone.

Calling all Century Farms

If there are any farms or ranches in your neighborhood that have been in the same family for at least 100 years with continuous ownership, that family is eligible to apply for this year’s Century Farms recognition. 

To qualify as a Century Farm, there must be at least 80 acres of the original SD farmland owned by the same family for 100 years.  The present owner must be related to the original owner.  This recognition is a joint effort with the SD Department of Agriculture and is not limited to SDFB members.

The ceremony will be held at the SD State Fair on Thursday, August 28.

For an application, or for more information, go online to:  http://sdfb.fb.org/centuryfarm/centuryfarmapp.pdf

YF&R Discussion Meet Questions

The YF&R Discussion Meet is an award contest designed to simulate a committee meeting

How can the aging infrastructure of the United States support the transportation of agricultural commodities in the future?

·   Cost

·   Regulation

·   Safety

·   Modes of transportation

·   Competition with non-agricultural commodities

 How do land grant universities remain on the forefront of an ever-changing agricultural environment?

·   Research

·   Extension

·   Taxpayer fiscal responsibilities

·   Timeliness of information

·   FB relationship 

How do we correct the misconceptions of Farm Bureau?

·   Grassroots

·   Federation

·   Political action

·   Leadership development

 After YF&R, how can Farm Bureau utilize the leaders it has developed?

·   County programs

·   State programs

·   National programs

·   Integration of all levels

·   New program ideas

·   Continued professional development

 For more information on the YF&R contests, log onto http://www.fb.org/

 
STOP EVIL IN ITS TRACKS – A commentary by Trent Loos  (from http://facesofag.com/)

 As the saying goes, "The only thing necessary for the triumph of evil is for good men to do nothing."

Fortunately, there are good men and women willing to stand up and do something when things need to be done.

A great example is a recent effort that put the brakes on a program that was about to add more money to the coffers of the Humane Society of the United States (HSUS).

I am referring to a recent contest hosted by retail giant Meijer that encouraged customers to post online photos of their pets. For each photo posted, Meijer pledged $1 to HSUS, up to a maximum contribution of $5,000.

The Sportsmen's Alliance reacted by rallying its troops and putting an end to the campaign.

For those of you who are not aware of the true mission of HSUS, I assure you, it is not about pets. HSUS stands for the complete abolishment of animal agriculture and hunting.   Following the announcement of its campaign, Meijer store authorities were bombarded with letters, faxes and e-mails from concerned members of the Sportsmen's Alliance, many of whom are customers of the retail chain.

Once the store looked into the true mission of HSUS, the store pulled its pledge of support to HSUS from the pet photo contest.

In doing so, a Meijer spokesman said the company was under the impression that HSUS was working to benefit pets and that this contest seemed like a perfect fit for that goal.  However, upon learning that HSUS doesn't actually own any animal shelters or rescue abandoned pets, Meijer management made the decision to discontinue the program.

While a $5,000 donation from Meijer is a drop in the bucket for HSUS, which works on an annual budget of nearly $100 million, the loss is symbolic for two reasons.

First and foremost, it serves as a reminder that a small group of people can be effective in putting a stop to programs like this that are aimed at destroying animal agriculture and stealing our rights.

Second, it sends a message to HSUS and groups like it that the public is starting to understand their true mission and to recognize how dangerous such groups are to the future of food production and the well-being of the nation.

If you think HSUS doesn't have the resources to do a lot of damage, consider the simple fact that its fund-raising gurus dragged in $34 million by promising to reunite wayward pets with their owners after Hurricane Katrina hit Louisiana in 2005.

HSUS successfully returned a mere 600 pets -- and at a return per pet of a staggering $56,667!

Now, where do you suppose that money is headed? Straight into HSUS programs targeting state legislation to mandate how we raise livestock.

While all kudos go to the Sportsmen's Alliance for its work to bring the situation to light for Meijer, the one question that remains unanswered and that troubles me greatly is: Where were the farmers, ranchers and food producers on this issue? Why were we not rallying our troops to put a stop to this madness? Since we missed this boat, are we going to be ready when the next ship sails?

There are many similar programs underway in our communities and other mistruths being spread about our industry each and every day.

Are we armed with the information we need to head it off at the pass, or are we going to hope that someone else does it for us?

I, for one, don't like to rely on anyone else when the stakes are as great as they are, so I suggest to you that we all dust off our battle armor and get into the fight before evil is allowed to prevail once and for all. 

*Trent Loos is a rancher, host of the "Loos Tales" radio show, public speaker and founder of Faces of Agriculture, which puts the human element back into food production. Find out more at www.FacesOfAg.com, or e-mail trent@loostales.com.

---QUOTE OF THE DAY---

“Developing our biofuels policy is neither a stroke of genius nor an act of madness. Biofuels won’t solve all our problems, but nor will they swallow the world’s food supply.

“Used correctly, they can be a weapon in the fight against climate change and an insurance policy against fuel supply problems—working in balance with our food needs. We will not use them correctly if we make them a scapegoat. The problem with a scapegoat is that it’s only a symbolic solution. You send the goat into the wilderness, but the real problems remain. We don't need scapegoats.”

---Mariann Fischer Boel, member of the European Commission responsible for agriculture and rural development, speaking during a conference on biofuels sponsored by the European Policy Center.