SDFB Leader Connection

In this issue:    GOAC meeting update

Canadian Beef Import rule re-opened for comment
            SD Department of Transportation STIP meetings
            Interstate mowing contracts for sale
            Truck weight laws leave farmers in the lurch
            OPEC Oil Export Revenues
            Wildlife Federation files suit against haying/grazing
             Nomination Deadline Nearing for FSA County Committees
             Beef Check-Off
             YF&R SummerFest
             Quote of the Day

 July 14, 2008

 Upcoming events:
Ag Land Assessment Advisory Task Force Meeting – July 28, Pierre
GF&P legislative interim review – August 11-12, Pierre
YF&R SummerFest – August 16, Pierre
Dakota Fest – August 19-21, Mitchell
Century Farms recognition – August 28, Huron
Highway Needs & Financing interim study – September 24-25, Pierre
SDFB Annual Meeting – November 21-22, Sioux Falls
National Farm-City Week – November 21-27
AFBF Annual meeting – January 11 – 14, San Antonio, TX

 Government Operations & Audit Committee
When GOAC met last week in Pierre, one of the discussion items was their ongoing attempt to track down information on several planes involving the Corn Utilization Council and aviation fuel research at SDSU.  While SDSU was represented at the meeting, the Corn Council was not.  Many of the committee member questions were directed at the Corn Council – so the issue will again be on the agenda at a future meeting.

            Another issue the GOAC discussed late in the day involved transfer of the livestock brand inspection from the Stockgrowers Association to the State Brand Board.  According to information given at the meeting, there will be 14 full-time inspectors and 75 part-time inspectors.  Two questions arose out of committee discussion:  Would mileage be charged for the inspections as it was in the past, and would the current inspection fee support the expenses associated with supporting the new inspection staff? The answers to both questions were “yes.” GOAC will be monitoring the implementation of this state managed program.

Canadian Beef Import rule re-opened for comment  
The rule allowing Canadian cattle over 30 months old to enter the United States must go through a new rulemaking process including the opportunity for public comment, a U.S. District Court judge in South Dakota has ruled.

            R-CALF argued that USDA failed to follow its own procedures in reopening the Canadian border last November to cattle over 30 months old at slaughter. Because the court found that the plaintiffs were likely to prevail on that argument, the rule was remanded back to USDA for a notice of rulemaking and acceptance of public comments on the decision. Meanwhile, the ruling will have no effect on the flow of cattle from Canada into the United States.

            The current rule was published in January 2005, and then suspended when a four year-old BSE (bovine spongiform encephalopathy) positive animal was found in Alberta, Calgary. Judge Lawrence Piersol said USDA needed to explain why it then went ahead and implemented the over-30-months rule in November 2007.  He wrote:  “Why the OTM beef provisions were implemented in 2007 after its decision not to implement them in 2005 prohibits this Court from concluding that a reasoned basis for the decision existed in 2007.” 

A group of eleven plaintiffs including R-CALF USA brought the case and asked the court to close the border until the pending court cases are settled. Judge Piersol did not close the border.

SD DOT – Statewide Transportation Improvement Program (STIP)
Public meetings will be held throughout South Dakota, beginning this week, to gather public input on the DOT’s five-year plan to preserve, renovate, and enhance the state’s transportation system.  The STIP is a list of projects developed through the coordinated efforts of the Department of Transportation, Transportation Commission, state and federal agencies, local and tribal governments, metropolitan planning organizations, public agencies, transportation providers, citizens and other interested parties.

The public meetings will present Tentative STIP and to gather public input. The meetings will be held at the following:

**  Aberdeen - July 15, 2008 - Ramada Inn, 7:00 p.m.

**  Sioux Falls - July 16, 2008 - Ramkota Hotel, 7:00 p.m.

**  Mitchell - July 17, 2008 - Mitchell Technical Institute Technology Center on the southeast corner of the intersection of I90 and SD37 at 1800 East Spruce, 7:00 p.m.

**   Pierre - July 29, 2008 - Pierre at the Kings Inn, 7:00 p.m.

**  Rapid City - July 30, 2008 - Rushmore Plaza Civic Center, 7:00 p.m.

A list of proposed projects for each region is listed on the DOT website:  http://www.sddot.com/pe/projdev/planning_stip.asp

            The Department is accepting written testimony on the STIP.  Comments may be submitted to:  SD Department of Transportation

                        Office of Planning and Programs
                        700 East Broadway Avenue
                        Pierre, SD  57501-2586

You may also e-mail comments, along with your address, to:   duane.heermann@state.sd.us

Interstate Mowing Contracts for Sale
The SD Department of Transportation is offering for sale the right to mow and remove hay from the median of Interstate 29 from mile-marker 179.6 to the North Dakota State Line. All bid proposals will be opened at 10 a.m. on August 1, 2008. 

            Adjacent landowners will be given first priority in the award of the contracts. The minimum acceptable bid is $20 per mile. The Department of Transportation reserves the right to reject any and all bids.

            For more information, requirements, or a bid form contact Ron Sherman, Department of Transportation, PO Box 1446, Watertown, SD, 57201, or call (605) 882-5166.

Truck weight laws leave farmers in the lurch

Mike Spradling, president of the Oklahoma Farm Bureau Federation, recently testified before the House Committee on Transportation and Infrastructure’s Subcommittee on Highways and Transit, emphasizing that farmers and ranchers hauling their own goods and services to market across relatively short distances should not be held to regulations intended for commercial long-haul drivers.

“Current weight limits imposed by the Safe, Accountable, Flexible and Efficient Transportation Safety Act (SAFETEA) and the Federal Motor Carrier Safety Regulations (FMCSRs) burden farmers and ranchers hauling their products to market,” testified Spradling, a Sand Springs, Okla. cattle and pecan producer. “The American Farm Bureau Federation recommends changes to FMCSR’s rules regarding Commercial Motor Vehicles that will make them more workable for farmers and ranchers while still maintaining the safety of rural roads.”

OPEC Oil Export Revenues
The U.S. Energy Information Administration estimates that members of the Organization of the Petroleum Exporting Countries (OPEC) earned $671 billion in net oil export revenues in 2007, a 10 percent increase from 2006.

Saudi Arabia earned the largest share of these earnings, $194 billion, representing 29 percent of total OPEC revenues. On a per-capita basis, OPEC net oil export earnings reached $1,137, a 8 percent increase from 2006. Through June, OPEC had earned an estimated $645 billion in net oil export earnings in 2008.

Based on projections from the EIA July 2008 Short Term Energy Outlook (STEO), OPEC net oil export revenues could be $1,251 billion in 2008 and $1,322 billion in 2009.

Wildlife Federation files suit against haying/grazing

The National Wildlife Federation has filed a lawsuit prompting a federal district judge in Seattle, Wash., to issue a temporary restraining order that stops grazing on Conservation Reserve Program (CRP) land under the Critical Feed Use Program that was announced May 27.

The injunction ordered Tuesday by U.S. District Judge John Coughenour could affect 24 million acres of conservation lands across the country. Coughenour granted a temporary restraining order that prevents USDA from approving any further CRP contract amendments. The ruling also enjoins all previously approved contract modifications.

The restraining order is in place pending further consideration of the issues. The next court date is set for July 17. The restraining order DOES NOT stop the grazing of CRP ground in the counties opened earlier because of flooding.

Under the Critical Feed Use Program, haying and grazing of CRP ground would be allowed after the primary nesting season of grass nesting birds. The National Wildlife Federation contends USDA’s plan to allow hazing and grazing on CRP acres after nesting periods violates the National Environmental Policy Act by not properly considering environmental factors.

USDA has been carrying out this CRP plan in some areas since July 1 through an amendment to current contracts. This contract amendment did not require the use of USDA’s natural disaster related emergency authority. Farm Services Agency approval for an amendment to CRP contracts was required and significant limitations were placed on eligibility.

 

Nomination Deadline Nearing for FSA County Committees  

Farmers, ranchers and other agricultural producers are reminded by the USDA’s Farm Service Agency that they have until August 1 to nominate eligible candidates to serve on local FSA county committees.  Teresa Lasseter, who is the FSA administrator, encourages all producers to get involved by nominating eligible candidates to serve on county committees.  She says the committees are important because they help deliver federal programs for producers.  The FSA county committees help local farmers with decisions on commodity price support loans, conservation programs and disaster programs.  People wanting to hold office as a county committee member must take part in FSA administered programs, be eligible to vote in a county committee election and reside in the area where they are a candidate.  The county committee nomination period began June 15 and voting takes place in the fall.  Ballots will be mailed to eligible voters in early November and ballots must be returned to the local USDA Service Center by December 1.

 

Beef Check-Off

AFBF President Bob Stallman met last week with representatives of the Cattlemen’s Beef Board (CBB) to discuss potential changes to the beef check-off.  USDA has asked the CBB to develop and recommend changes to the beef check-off. The CBB is conducting meetings with national industry organizations to discuss suggested improvements to the program. Their suggestions will be provided to the Secretary of Agriculture in early 2009.

            Here is a copy of the letter AFBF submitted to Dave Bateman, Chairman of the Cattlemen's Beef Board Re: Beef Check-Off  

            Thanks for meeting with us yesterday to discuss potential enhancements to the beef check-off. I thought it might be useful to review our positions in writing. We will also be sharing these views with our state Farm Bureaus in the next few days.

            Farm Bureau supports the beef check-off. It is an important tool to strengthen the beef industry’s position in the marketplace through the promotion and research of beef and beef products. We believe it is a good time to ascertain if the check-off can be strengthened and what potential changes might be necessary to attain that goal.

            American Farm Bureau Federation (AFBF) policy expressly supports the beef check-off program and an adjustment in the check-off rate, although no specific rate is suggested. Our members firmly believe the check-off has succeeded in helping build beef demand and has assisted in moving product domestically and in the export market. Farm Bureau policy also supports enhancements to the current program. We will work to implement these enhancements prior to taking a position on adjusting the current check-off rate.

*  We believe accountability to the producer is paramount. While some organizations support a periodic referendum, we believe that is unnecessarily costly for both out-of-pocket expenses and the investment of time. A periodic referendum pulls people from other demand-building and consumer efforts during the referendum period. However, we believe an opportunity to petition for a referendum at any time 10 percent of a representative sample of beef, dairy and veal producers request the referenda is critical for accountability purposes. A referenda should be used to consider continuation of the beef check-off program and/or to affirm significant changes to the Beef Promotion Act and Order.

Check-off programs for some commodities provide producers the opportunity to petition for a survey every five to seven years. If 10 percent of the eligible producers sign the survey petition requesting a referendum, USDA is required to conduct a vote within of all eligible producers within one year. We believe our policy makes more sense as ten percent of producers could request the referendum more or less frequently than every five years.

We also believe producer participation in a referendum must be improved through all available means, including mail-in or electronic ballots.

* The check-off should be more inclusive. The act prohibits industry organizations created after 1985 from becoming check-off contractors. Any reference to the charter date of established national non-profit industry governed organizations in the Beef Promotion and Research Order (Order) must be eliminated. This would allow all interested industry organizations established after 1985 to bid on contracts and conduct check-off projects.

In addition, strong consideration should be given to eliminating the current requirement that the Beef Board’s Operating Committee (Committee) contract only with “established, national nonprofit industry-governed organizations.” Consideration should be given to allowing the Committee to contract directly with vendors and avoid possible conflicts of interest generated by the policy positions of any national organization.

* Understanding of the Federation of State Beef Councils must be enhanced. There is unquestionably a lack of understanding of the check-off structure. However, there are also perception problems regarding the alignment of the Federation of State Beef Councils with the National Cattlemen’s Beef Association. Enhancements to the check-off must be made to reduce this perception or reality. A complete separation of any ties between the State Beef Councils and NCBA may be worth examination.

* The check-off provisions ensuring imported commodities are subject to check-offs on the same basis as domestic producers should be continued.

* The Order’s certification procedures must be clarified. Currently, USDA appoints 104 members to the Cattlemen’s Beef Board (CBB). CBB members are nominated by state producer groups. Groups are deemed eligible to nominate if their total paid membership represents at least a majority of the cattle producers in the state. In addition, the association or organization must represent a substantial number of producers that produce a substantial number of cattle in the state.

Twenty state Farm Bureaus are currently certified to nominate Beef Board members: Arizona, Arkansas, Colorado, Florida, Idaho, Iowa, Kansas, Kentucky, Minnesota, Missouri, Montana, New York, North Dakota, Oklahoma, South Dakota, Tennessee, Texas, Virginia, Wisconsin and Wyoming.

Some have evidently considered interpreting the current certification requirements in a way that would preclude nine of those states from being recertified due to the membership numbers they submit for the certification criteria. While all of the 20 states have been certified to nominate for 2009, this criteria needs to be clarified via changes to the act to reduce potential problems in the future.

Again, we believe it is critical that the beef check-off be continued and improved. The act and order must be structured to ensure that producers decide where the funding is allocated and which programs are supported. An opportunity must be provided to evaluate those results. Without a check-off it would be difficult to adequately address issues such as food safety, nutrition, changing demographics, consumer preferences and public opinion. Farm Bureau looks forward to working with you to improve the beef check-off. Once again, thank you for the opportunity to meet and share our views regarding those improvements.

Sincerely,
Bob Stallman
President

YF&R Summerfest
You are invited to the Farm Bureau Young Farmer and Rancher SummerFest. Don’t miss the chance to cool off and enjoy a day on the river with good friends and great food.

            Festivities will begin August 16th at 11 a.m., with dinner at 1 p.m.  The event will be held north of Pierre at the Oahe Downstream Park.  Entry into the park is $5 per vehicle unless you already have a yearly parks pass. You can reserve a camping site at http://www.sdgfp.info/Parks/Regions/OaheSharpe/OaheDownstream.htm.  If you are not as one with nature, there are a block of rooms at the Pierre Days Inn, 520 W Sioux Ave.  The phone number is (605) 224-0411.  The rooms are held under SDFB YF&R

Please RSVP to Kara Nagel @ 605-494-0196, knagel@pie.midco.net.  Or…if you want more information, please contact Kara.

Hope to see you there!!!

Quote of the Day:
Nothing is really lost.  It’s just where it doesn’t belong.” – Suzanne Mueller