SDFB Leader Connection

August 4, 2008

In this issue:    YF&R Summerfest

 Ag Summit 2008

Ag Land Assessment Advisory Task Force

Animal Identification Discussion

GF&P Interim Review Committee

Government Operations & Audit Committee – Corn, Brand Board

SD Brand Board: Brand Inspection Program Transition Going Well

Farm Bill informational meetings

2008 Prairie Tour

Vegetative Treatment System tours

Alliance for Abundant Food and Energy

USDA issues interim final rule for COOL

                        Quote of the Day

 Upcoming events:
GF&P legislative interim review – August 11-12, Pierre
YF&R SummerFest – August 16, Pierre
Ag Summit 2008 – August 16, Union Center
GOAC meeting – August 19, Pierre
Dakota Fest – August 19-21, Mitchell
Century Farms recognition – August 28, Huron
South Dakota State Fair – August 28-September 1, Huron
Ag Land Assessment Advisory Task Force meeting – September 8, Pierre
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

YF&R SummerFest
Remember…the Young Farmers and Ranchers Committee is hosting a SummerFest next Saturday, August 16, at the Oahe Downstream Park near Pierre.  This is a chance for young people with an interest in agriculture to gather for fun, fellowship, and relaxation.  The festivities start at 11:00 a.m., with lunch served about 1:00 p.m.

Ag Summit 2008
On August 16, Senator Kenny McNenny, Representative Larry Rhoden, and Representative Tom Brunner are hosting an “Ag Summit” in Union Center.  The event will be held at the Central Meade County Community Center, starting with registration and coffee at 9:00 a.m. The agenda includes:

  9:30 a.m. – Property Tax update

         Kirk Chaffee, Meade County Director of Equalization

         Michael Kenyon, SD Department of Revenue

10:45 a.m. – State of Agriculture Address

         Bill Even, SD Secretary of Agriculture

11:05 a.m. – COOL update

                     Bruce Knight, USDA Undersecretary for Marketing & Regulatory Programs

12:00 noon – Lunch

12:30 p.m. – Panel Discussion on Animal Identification / Q&A

                     Animal Industry Board, Farm Bureau, Farmers Union,

         Catlemen’s Association, Stockgrowers Association

  1:30 p.m. – Governor Mike Rounds

The event is being co-sponsored by the SD Farm Bureau, SD Stockgrowers Association, SD Cattlemen’s Association, KBHB Radio, Tri-State Livestock News, Farmers State Bank – Faith, and First Western Bank – Sturgis.

            Later that day, Cammack, Ranch Supply will be hosting its annual Rancher Round-Up in Union Center.

Ag Land Assessment Advisory Task Force
The first meeting of the “Agricultural Land Assessment Implementation and Oversight Advisory Task Force” was held last Monday, July 28, in Pierre.  The committee heard presentations from Michael Kenyon with the state Department of Revenue, as well as an in-depth presentation from the SDSU Ag Economics Department.

            The committee questions centered on which government payments to include as part of the return to the land, the proper landowner return for cropland and for pasture land, and the most appropriate methodology to use for valuing pastureland.  The law passed by the 2008 Legislature calls for using the animal unit carrying capacity of the land, and makes a distinction between rangeland and pastureland.  The law also calls for consideration of grazing season data, and statewide cow and calf prices.

There was also a sidebar discussion about “actual” use of the land versus “highest and best” use.    The law reads:  “Agricultural land shall be divided by the director of equalization into categories, including cropland and noncropland. Each category shall be divided into classes based on soil classification standards developed by the United States Department of Agriculture Natural Resources Conservation Service.”

The committee is scheduled to meet again on Monday, September 8, in Pierre. 

Animal Identification Discussion
Last Monday, the SD Farm Bureau, along with the Farmers Union, Cattlemen’s Association, Stockgrowers Association, Pork Producers Council, Association of Cooperatives, Livestock Auction Markets Association, Animal Industry Board, Department of Agriculture, and several legislators, met to discuss animal identification issues.

            South Dakota’s current animal ID law was adopted in 2005 with the support of all but three legislators.  It allows the Animal Industry Board (AIB) to develop and implement specific program for identification of animals and premises involved in animal movements, for the sole purpose of maintaining animal health and ensuring the safety of the food supply.  Before the AIB can develop any program, they must go through a public rule-making process.

            In recent legislative sessions, a small group of cow-calf producers has pressed for legislation that would restrict the ability of South Dakotans to participate in any portion of the National Animal Identification System (NAIS).  It was pointed out that NAIS is a “system” and not a specific “program.”  Farm Bureau policy supports voluntary participation in NAIS.  We have opposed recent efforts to restrict NAIS in the state because they would have limited the opportunity for even voluntary participation in the system, which our policy supports.

            During Monday’s meeting, there was general support expressed for the current state law.  The livestock industry – representing ALL species – will try to work together to identify ways to address concerns with the NAIS, and communicate those to USDA. 

GF&P interim Review Committee
The second meeting of the interim committee conducting a review of the Department of Game, Fish & Parks is scheduled for Monday and Tuesday, August 11-12, in Pierre.

Government Operations & Audit Committee – Corn, Brand Board
The Government Operations and Audit Committee (GOAC, as it is fondly referred to) is meeting Tuesday, August 19, in Pierre, beginning at 8:00 a.m.  Among agenda items are a discussion with the Corn Utilization Council on aircraft used in ethanol research, and the Brand Board feasibility study. 

SD Brand Board: Brand Inspection Program Transition Going Well
The South Dakota Brand Board reports that the recent changes to the administration of the brand inspection program are going well.

            Under South Dakota law, the State Brand Board has the authority to manage the state’s brand registration, inspection and investigation systems. Until recently, the Brand Board contracted with a private contractor to perform the brand inspection portion of its duties. In December 2007, the Brand Board commissioned a feasibility study to evaluate the cost-effectiveness and other operational efficiency measures associated with using a private entity to perform brand inspections.

            The study indicated there were considerable financial and operational efficiencies to be gained by combining the registration, inspection, and investigation programs under one roof.  These enhancements include improved communication between inspectors and investigators leading to better response times on investigations, sharing of office staff, lower cost for some inspection forms, lower liability and worker compensation insurance costs, lower rent costs, improved pay and benefits for inspectors, and increased use of technology. As a result of the study, the Board determined a consolidated program would be in the best interests of the South Dakota livestock owners who pay the inspection fees.

            The Board assumed control of the brand inspection program on July 1, 2008. Brand Board Executive Director Larry Stearns stated, “We are working hard to ensure brand inspections continue to occur in the normal course of business. We are aware of livestock owners’ needs and are working toward a smooth transition.” The Board continues to utilize the traditional system of full-time, part-time and local inspectors to perform brand inspections. Current brand inspectors and shippers’ agents are listed on the Brand Board’s website: http://www.sdbrandboard.com. “It is the Board’s goal to provide uniform, consistent and accurate inspections in a timely manner,” said Stearns.

            South Dakota Secretary of Agriculture Bill Even stated, “I strongly support branding as an important management tool for our state’s producers, and South Dakota ranchers must be able to continue to market their cattle in the normal course of business.  I support the Brand Board as it fulfills its duties operating the registration, inspection and investigation programs.  The Board’s efforts to achieve operational efficiencies while continuing to provide necessary brand inspection services show the Board intends for this meaningful program to continue in an effective manner.”

Farm Bill informational meetings

FSA is holding farm bill informational meetings:

Tuesday, August 5                  Forestburg 4-H building    7:30

Thursday, August 7                New Underwood Community Center    2 pm mdt

Thursday, August 7                Wall Community Center    5 pm mdt

Saturday, August 9                 Britton/Hecla Auditorium    4 pm

Monday, August 11               Gettysburg Fairgrounds    4 pm

Tuesday, August 12                Aberdeen Kessler tent on fairgrounds    11am

Wednesday, August 13          Miller High school theater    7 pm

Thursday, August 14              Parker Fairgrounds    1:30 pm

Wednesday, September 3       Howard Extension building    1 pm

2008 Prairie Tour
The 2nd Annual Prairie Tour will be held Wednesday, Aug. 6 from 10 a.m. to 3 p.m. at the Feistner Hunting Lodge located at 23249th 392nd Avenue, Woonsocket, SD on Highway 34.  To find the Lodge go 5 miles west of Woonsocket on Highway 34; then 3 1/2 miles south on 392 Ave.  The lodge is located on the west side of the road.

            The 2008 Prairie Tour is an education tool dedicated to assisting people who are interested in identification and palatability rating of plants. Topics discussed will also include a plant’s place in the grazing system and interaction of Smooth bromegrass and Kentucky bluegrass with native prairie grasses.

The morning program begins with Dr. Sandy Smart, SDSU, lecture “How Plants survive Grazing”; followed by a field tour with hands-on plant identification in bromegrass burn plots and a pheasant dinner at the Feistner Hunting Lodge.   In the afternoon, Justin "Judge" Jessop from the Grassland Coalition speaks on grazing systems followed by a tour of a developing cross-fencing system.  The day will end with a Plant Identification contest.

Cost of the workshop is $7.00 which includes lunch.  For more information and to pre-register for the workshop, please call the Sanborn County Extension Office at 605-796-4380 or email at sanborn.county@sdstate.edu

Vegetative Treatment System tours
SD Farm Bureau and the SD Cattlemen’s association have been working with the Agricultural and Biosystems Engineering Department at SDSU on vegetative treatment system research.  The goal of the research is to determine the technical and financial feasibility of vegetative treatment systems (VTS’s) as a best management practice for nutrient and sediment loads from animal feeding operations holding fewer than 1,000 animal units.  Field day tours will be held on various sites involved in the project:

Haakon County, Scott Jones (southwest of Midland) – August 11; 1:00 p.m.
Miner County, John Reisch (south of Howard) – August 13; 6:30 p.m.
Roberts County, Leon Koeppe (south of Claire City) – August 25; time TBA
Meade County, Blair Brothers (north of Sturgis) – Date and time TBA

Alliance for Abundant Food and Energy
Leading agricultural leaders have partnered to form the “Alliance for Abundant Food and Energy, giving them a unified voice in promoting agriculture's ability to meet global demands for food and renewable forms of energy.

Founding members of the Alliance include the Archer Daniels Midland Company, DuPont, John Deere, Monsanto and the Renewable Fuels Association.

“The Alliance for Abundant Food and Energy will underscore the role that agriculture can play in supporting our food and energy needs," Mark Kornblau, executive director of Alliance for Abundant Food and Energy, said in a statement. "With growing global demand for grain, it's critically important that policy leaders start thinking about how we can grow our way to a solution. Innovation is part of the American DNA - through greater support for agricultural innovation, we can produce enough crops to supply both our food and energy needs worldwide."

The alliance said framing the food-vs.-fuel debate as an "either/or" decision is a false choice that "ignores both the capabilities of agriculture and our nation's history of using innovation to solve our problems. The Alliance realizes both are possible - and can be accomplished using less land and fewer resources than generally understood."

For more information, visit www.foodandenergy.org.

USDA issues interim final rule for COOL
USDA has issued a 233-page interim final rule with request for comments on mandatory Country of Origin Labeling (COOL) as required by the 2008 farm bill with an implementation date of September 30, 2008.

            The rule covers muscle cuts of beef, veal, lamb, chicken, goat and pork, as well as ground beef, ground pork, ground lamb, ground chicken and ground goat.

Comments must be received within 60 days and should be submitted to: www.regulations.gov. Written comments can be sent to: Country of Origin Labeling Program, Room 2607-S; Agricultural Marketing Service (AMS), USDA; Stop 0254; 1400 Independence Avenue, SW; Washington D.C. 20250-0254 or by facsimile to 202-354-4693.

The interim final rule contains definitions, the requirements for consumer notification and product making, and the record keeping responsibilities of both retailers and suppliers for covered commodities.

Some key points:

The rules cover meat products including muscle cuts of beef, veal, lamb, chicken, goat and pork, as well as ground beef, ground pork, ground lamb, ground chicken and ground goat. They also cover fish, shellfish, fresh and frozen fruits and vegetables, peanuts, pecans, ginseng and macadamia nuts.
Technical requirement highlights

  • The rule does not apply to covered commodities produced and packaged before Sept. 30.
  • Animals present in the United States on or before July 15 that remain continuously in the United States will be considered of U.S. origin.
  • Foodservice establishments are exempted by the statute.
  • Processed food items (including those that are cooked, cured, smoked or restructured) are exempted from labeling by the statute. Examples include meatloaf, meatballs, fabricated steak, breaded veal cutlets, corned beef, sausage, breaded chicken tenders, teriyaki-flavored pork loin.
  • Labeling rules regarding ground beef, ground pork, ground lamb, ground goat and ground chicken require listing all countries of origin that may be reasonably contained. In determining what is reasonable, when a raw material from a specific origin is no longer in a processor's inventory for more than 60 days, that country shall no longer be included as a possible country of origin.
  • Records must be maintained for one year and available within five days if requested by a USDA representative.
  • Slaughter facilities must possess or have legal access to records that substantiate their origin claims. A producer affidavit will be considered acceptable evidence, provided it is made by someone having firsthand knowledge of the animals' origin and identifies the animals unique to the transaction.
  • If slaughtered animals are part of the National Animal Identification System, an official ear tag or the presence of any accompanying animal markings can be used as the basis of origin claims.

Costs
USDA estimates the total first-year implementation costs for all directly affected firms at $2.5 billion. Costs per firm are estimated at $376 for producers, $53,948 for intermediaries and $235,551 for retailers.

It put the estimated cost to the U.S. economy in higher food prices and reduced food production in the tenth year after implementation of the rule at $211.9 million.

If you want to read the rule…(note, the 233 pages are double-spaced, and written in 12-point type), you can go online to

http://federalregister.gov/OFRUpload/OFRData/2008-17562_PI.pdf 

Quote of the Day:
Everybody is ignorant, only at different subjects.” – Will Rogers