SDFB Leader Connection

In this issue:    Blender Pump Tax talks continue
                       Department of GF&P Review
                       AgraGate Carbon Credit Update
                       YF&R gives safety demo at Ag &Natural Resources Day
                       Pork Checkoff releases three new YouTube videos
                       UNL study: Ethanol responsible for 1.2% of food price increase
                       Calling All Century Farms
                       YF&R contests
                       Quote of the Day

May 27, 2008

Upcoming events:
SDFB Youth Camp – June 9-11, Chamberlain
LRC E-Board meeting – June 9, Pierre
Legislative Interim Agency review: SDGF&P – June 11, Pierre
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

 Blender Pump Tax talks continue
When the Executive Board of the Legislative Research Council meets in two weeks, they will receive additional information on the debate surrounding tax rates for ethanol blends sold from Blender Pumps.  The E-Board, at its May 12 meeting, adopted the following motion on a 10-2 vote:  

 “The Executive Board insists that Governor Rounds rescind his direction to the Department of Revenue to notify South Dakota fuel retailers of a new tax return for remitting fuel tax on blended fuels, and that such fuel retailers are to remit tax on any new mid-grade ethanol products, which took effect on May 1, 2008.  It is further moved that the interim study of South Dakota Highway needs and financing be directed to encompass into its study this very issue of blended fuels and the appropriate tax rate that should be levied, and to define who should be collecting the required tax.”

In making the motion, Senator Julie Bartling pointed out that when the issue was brought before the legislature last session, the Senate Tax Committee chose not to act on the issue.  She believes that the E-Board should request that the Governor not act on the issue, but that the legislature take time to study the issue and bring in a bill next session.  There is concern that the Governor’s action disregards the legislative process.

The Governor points out that current state law directs E-85 to be taxed at 10 cents per gallon and all other ethanol blends to be taxed at 20 cents per gallon.  The Department of Revenue and Regulation simply issued a new form for reporting the amount of blended fuels sold.  In addition, the Governor cites existing state law which takes away tax credits for retail blending of fuel.  Blenders get a tax credit for blending gasoline with ethanol but they lose the credit for re-blending already blended fuels.  For example, blending E-10 and E-85 at the pump, according to law, would cause the tax credit to be canceled and the fuel to be taxed at 22 cents per gallon.

The E-Board has asked for additional information to be presented at its next meeting.  

 Department of Game, Fish & Parks
The first meeting of the interim legislative committee studying GF&P is set for 9:00 a.m. on Wednesday, June 11, in Pierre.  Each year the LRC Executive Board selects a couple of agencies for a department-wide review.  This year, the two agencies selected are Game, Fish & Parks and the Department of Tourism and State Development.

 AgraGate Carbon Credit Update
AgraGate’s latest opportunity to enroll carbon credit acres ended for rangeland on April 4th, and your final chance to enroll soil acres is approaching on June 30th, 2008. South Dakota is at the top of the list for number of carbon credit acres enrolled. From September of 2007 to April of 2008 there were 227,456 acres enrolled for rangeland.  Soils acres came in at 72,084 with acres still being enrolled.

The most current price for trading carbon credits on the Chicago Climate Exchange (CCX) is at an all time high of $7.20.  Just last week the CCX also hit another record high for amount of carbon credits traded, which came in at 3.1 million metric tons sold at $6.70.

Looking ahead to the next pool of acres enrolled, AgraGate has done some updating to both the rangeland and soil worksheets to make them easier for producers to complete. Producers will still be required to have a signed soil or rangeland offset contract, FSA maps (highlighting acres to be enrolled), 578 FSA reports, CRP contracts for CRP new grass acres, range management plan, and a void check (which allows for direct deposit of funds to your account).

Producers that had previously enrolled acres could see payments coming as early as July, otherwise payments will be sent out again in December.

If you are interested in learning more about AgraGate, the Chicago Climate Exchange or how to enroll acres please contact Wayne Smith at 605-997-2346, or Kara Nagel at 605-494-0196. You can also find information at www.agragate.com.

YF&R gives safety information at Ag and Natural Resources Day
The Expo Center in Rapid City was the location for the Ag and Natural Resources Day held May 15th, 2008. There were a total of 708 3rd graders from grade school classes located in Rapid City, along with 33 teachers, and 125 parent chaperones.

The Young Farmer and Rancher committee was given the task of setting up a safety presentation for the students attending throughout the day. Josh and Shasta Geigle and JT Moon explained safety awareness on the farm and ranch to 22 different 3rd grade classes. The focus of their presentation was to make the students more aware of what to do and not to do when on a farm or ranch. Stations were set up to cover electrical, livestock, Power Take Off (P.T.O), Fires, Falls, Grain Suffocation, Rollover Protective Structure (R.O.P.S), Slow Moving Vehicle (S.M.V), and Personal Protective Equipment (P.P.E).  

After explaining each safety area the kids were ask to play a matching game to win prizes. Along with the farm and ranch safety presentation the South Dakota Farm Bureau was the biggest contributor of funds for the event. Donations were made by Meade and Pennington / Jackson County Farm Bureau’s as well as the Young Farmer and Rancher Committee and the State Farm Bureau Federation.

Pork News Pork Checkoff releases three new YouTube videos  

The video-sharing Web site YouTube can be a great place to observe the weird and wacky, but now its visitors also can learn something about pork.

The Pork Checkoff recently released three new videos on YouTube to answer consumers' questions about animal care, feeding, transport and more, the National Pork Board announced. 

The videos, which run one to two minutes each, feature pork producers and industry experts answering consumer questions on animal care issues. They include "Pig Farmers Take Action" (which focuses on animal health and well-being, including Pork Quality Assurance Plus), "Ride Along with a Pig" (which shows why transportation is an important issue for pork producers) and "Pigs Are Hungry, Too" (which addresses pigs' nutritional needs and requirements for optimum care).

"Sites like YouTube allow messages to spread around the world faster than you can blink," says Steve Weaver, vice president of the National Pork Board. "I'm extremely proud of the YouTube videos the Pork Checkoff has created to help us tell our story."

 

 

Univ. of Nebraska Study:  Ethanol responsible for 1.2% of food price increase
Ethanol's increasing demand for corn is responsible for about 1.2 percent of the increase in U.S. food prices during the last two years, a University of Nebraska-Lincoln agricultural economist estimates.

However, Richard Perrin said, in poorer parts of the world, ethanol's impact on food prices likely is much higher -- perhaps accounting for as much as 15 percent of rising prices.
"The food bill of poor people in poor countries is more sensitive to grain prices, simply because grain constitutes more of their food, and food takes more of their income," the Institute of Agriculture and Natural Resources economist said.

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 Contests
Information about the YF&R Discussion Meet, Achievement Award, and Excellence in Agriculture Award, is available on the SDFB website.  Go to http://sdfb.fb.org/ and click on the YF&R link under “Programs.”

Quote of the Day:
When they discover the center of the universe, a lot of people will be disappointed to discover they are not it.” – Bernard Bailey