In this issue: Ag Land
Assessment Task Force Meeting
SDFB Resolutions
Policy Backgrounders available
Biotech Yield Endorsement
2008 Women in Ag Conference
AFBF Convention – make plans now!
Cattle on Feed report shows cattle being
grazed longer
AFBF pushes White House on ‘prior converted
cropland’
FSIS posts interim final rule, requests
comments on COOL labeling
Women in Blue Jeans Conference
Quote of the Day
Backgrounder: State Biofuels Support
Upcoming events:
Ag Land Assessment Advisory Task Force
meeting – September 8, Pierre
Highway Needs & Financing interim study –
September 24-25, Pierre
Resolutions due to SDFB office – September
26
Women in Ag Conference – September 26-27,
Spearfish
SDFB Resolutions Committee meeting – October
1, 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
Women in Blue Jeans Conference – January
15-17, Mitchell
YF&R Winter Conference – January 16-18, Lead
Ag Land
Assessment Task Force Meeting
The second meeting of the
Agricultural Land Assessment Implementation
and Oversight Advisory Task Force is next
Monday, September 8. The meeting starts at
10:00 a.m. in the Capitol.
The agenda includes a presentation by Dr.
Burton Pflueger from the SDSU Economics
Department on the Model for Ag Land
Assessment. Michael Kenyon from the
Department of Revenue will discuss
application of the numbers from the
assessment model, as well as input costs.
There will be an opportunity in the
afternoon for public testimony.
The agenda is available at
http://legis.state.sd.us/interim/2008/Agendas/AALA09082008.pdf
SDFB
Resolutions
Remember – Farm Bureau policy
starts with producer-members at the county
level.
The deadline for
resolutions
from county Farm Bureaus dealing with
State and National issues will be Friday,
September 26. Please send them to:
South Dakota Farm Bureau
PO Box 1426
Huron, SD 57350
e-mail
Julie@sdfdf.org
or fax 353-8057
SDFB Resolutions
Committee meeting
will be held on Wednesday, October 1,
2008, at the Farm Bureau Center in Huron.
The committee is made up of one
representative (county president or vice
president) from each county Farm Bureau. It
is very important to have all counties
represented during the discussion of the
resolutions sent in so all county
resolutions can be represented accurately.
The meeting is chaired by Wanda Blair, South
Dakota Farm Bureau Vice President. Please
make every effort to have your county
represented at this important meeting.
Policy
Backgrounders Available
This week, the policy
backgrounder deals with state highway
funding. All backgrounders are available on
the SDFB website (http://sdfb.fb.org/).
Biotech Yield
Endorsement
South Dakota has recently been
added to the list of states eligible to
participate in the Federal Crop Insurance
Biotechnology Yield Endorsement pilot
program. On August 14, the USDA Federal
Crop Insurance Corporation Board of
Directors approved additional seed
technologies and states for a premium rate
reduction for producers who plant certain
qualifying corn hybrids.
SD Farm
Bureau in late May submitted a letter to the
Federal Crop Insurance Corporation
requesting that South Dakota be added to the
original four states eligible to participate
in the BYE progam. South Dakota ranks among
the top in the nation for percentage of
producers to adopt biotechnology. This is
an opportunity for producers to use
additional risk-management tools.
Under the resolutions approved by the FCIC
Board, the following seed technologies and
states will be eligible for coverage
beginning with the 2009 crop year:
- Monsanto YieldGard®
Plus with Roundup Ready® Corn 2,
YieldGard® VT Triple, and YieldGard® VT
Triple PRO hybrids for non-irrigated
corn for grain in Michigan, Missouri,
Ohio, South Dakota, Wisconsin, Kansas,
and Nebraska, in addition to the
original pilot states of Illinois,
Indiana, Iowa, and Minnesota, submitted
by the Western Agricultural Insurance
Company, working with the Monsanto
Company. In addition, irrigated corn for
grain acreage planted to the qualifying
Monsanto hybrids would be eligible for
coverage in Kansas and Nebraska.
- Pioneer and Dow
AgroSciences Herculex® Xtra and Herculex®
Xtra RR2® hybrids for non-irrigated corn
for grain in Illinois, Indiana, Iowa,
Michigan, Minnesota, Missouri, Ohio,
South Dakota, and Wisconsin, submitted
by Stonington Insurance Company and Agro
National, LLC, in conjunction with Dow
AgroSciences, LLC, and Pioneer Hi-Bred
International, Inc.
- Syngenta Agrisure®
CB and RW stacked and Agrisure® 3000GT
hybrids for non-irrigated corn for grain
in Iowa, Illinois, Indiana, Minnesota,
Nebraska, South Dakota, and Wisconsin,
submitted by John Deere Risk Protection,
Inc, in conjunction with Syngenta Seeds,
Inc.
2008 Women
in Ag Conference
Spearfish Holiday Inn &
Convention Center, Spearfish, South Dakota
Sept. 26 & 27, 2008
Cost to attend the conference is $40 per
day, if you are attending one day, or $75
for both Friday and Saturday.
The program starts with registration at 9:00
a.m. on Friday, followed by a presentation
by Matt DeMarco, AFBF Director of Leadership
Development, on team building/communication,
and Troy Marshall discussing current topics
in agriculture. Friday lunch will include
round table discussions on “Hobbies for
Hubbies” and “Which Caregiver are You?” The
afternoon program includes two breakout
sessions and twilight fun activities.
Saturday’s program includes a presentation
from NCBA Beef and Veal Culinary Kitchen and
a look at the international perspective to
South Dakota agriculture, as well as two
additional breakout sessions.
More
information is available at
http://www.sdwia.org/
AFBF
Convention – make plans now!
|The American Farm Bureau annual
meeting is Sunday, January 11, and Monday
January 12, in San Antonio, Texas. SDFB
members interested in attending the
convention have a travel opportunity
designed to avoid the hassles and costs of
airline travel.
Details:
* Leave Sioux Falls at 7:00 a.m. on Friday,
January 9
* 8:00 p.m. arrive at hotel in Perry,
Oklahoma
* Leave Perry at 8:00 a.m. on Saturday,
January 10
* Stop at the Oklahoma City memorial
* Arrive in San Antonio by 8:00 p.m.
* AFBF convention Sunday and Monday
* Tuesday – tour Texas agriculture
* Leave San Antonio on Wednesday, January
14, at 7:00 a.m.
* Arrive in Wichita at Diamond W Ranch &
Dinner Theater at 6:00 p.m.
* Check into hotel at 9:30
* Leave Wichita at 9:00 a.m. on Thursday,
January 15
* Arrive in Sioux Falls by 8:00 p.m.
Cost for the bus ride, two nights in hotels,
and attractions: $399 if we can guarantee 40
people and you commit by November 21, 2008.
While in San Antonio, the SDFB delegation
will be staying at the Marriott Riverwalk/Rivercenter.
This is a 2-block walk from the convention
center. Cost will be $163 double occupancy.
Cattle on Feed
report shows cattle being grazed longer
According to the USDA, the number
of cattle placed on feed during July was up
2.4 percent from last year, but was
substantially below analysts' expectation
that about 6 percent more would be placed.
“The high
cost of feedlot finishing and the resulting
forage production incentives appear to be
keeping more cattle in the country through
the summer," wrote Oklahoma State University
Extension Livestock Marketing Specialist
Derrell Peel in a newsletter. "It appears
that the beef industry is adding three to
five months of age to most cattle in order
to utilize more forage in beef production."
Cattle placements in feedlots during July
totaled 1.66 million head, the second lowest
since reporting began in 1996 and second
only to last year's July placements.
The Aug. 1 feedlot inventory of 9.689
million head is the lowest monthly feedlot
total since August 2004.
AFBF pushes
White House on ‘prior converted cropland’
The American Farm Bureau Federation is
pushing the White House to clarify confusion
created by a guidance document that
undercuts a long-standing 1993 regulation
that explicitly states prior converted
croplands are not waters of the U.S.
Don Parrish, AFBF senior director of
regulatory relations, met recently with the
White House Office of Management and Budget
and pointed out the regulatory creep and
inconsistencies created by an Army Corps of
Engineer’s guidance document. The guidance
undercuts a regulation adopted through the
rulemaking process and is “patently
illegal.” Parrish told the White House, “If
regulation has gone through the
administrative process and has become a part
of the code of federal regulations, then you
can’t willy-nilly change that with a
guidance document.”
The 2005 guidance, prepared by the Corps of
Engineers with the help of the NRCS,
instructs field offices on ways to evaluate
whether land should be regulated under the
Clean Water Act.
A key point is that prior converted
croplands are not waters of the U.S. unless
abandoned. The two requirements for
abandonment are: (1) wetland criteria has
returned; and (2) the area has not been
farmed in any year of a consecutive
five-year period.
But the guidance says if land was changed to
a non-agricultural use, the prior converted
cropland label no longer applies and the
area could be subject to Clean Water Act
regulations. This is a significant change
and constitutes a regulatory land grab that
will directly impact how millions of acres
of farmland are used and valued. This
change, if allowed to stand, will have an
impact on farm financial statements all
across the nations and impact individuals in
virtually every county in the nation.
For more information on prior converted
croplands, contact Parrish at
donp@fb.org or (202) 406-3667.
FSIS posts
interim final rule, requests comments on
COOL labeling
Last Thursday USDA's Food Safety and
Inspection Service issued an interim final
rule amending its regulations to require
that any label for a meat or poultry product
subject to mandatory country-of-origin
labeling law must comply with that
regulation.
The AMS interim final rule covers muscle
cuts of beef (including veal), lamb,
chicken, goat and pork and ground beef,
ground lamb, ground chicken, ground goat and
ground pork, as well as other agricultural
commodities.
FSIS is not changing its regulations or
labeling policies for meat or poultry
products that are not covered commodities
under COOL.
The agency also will amend its rules to
provide generic approval of the addition of
a COOL statement on labels for covered meat
and poultry product intended to be sold by
retailers. Currently, federal meat and
poultry inspection relations require COOL
statements on the labels of immediate
containers for imported products.
The FSIS interim final rule will be
effective Sept. 30, and will not apply to
covered commodities produced or packaged
before that date because it will take time
for such products already in commerce to
clear the system.
Per the AMS interim final rule, any meat or
poultry commodity that is an ingredient in a
processed food item is excluded from
mandatory COOL. Examples include meatloaf,
breaded chicken tenders or sausage.
Comments are due Sept. 29 to the Federal
eRulemaking Portal at
www.regulations.gov, or by mail to:
Docket Clerk, U.S. Department of
Agriculture, Food Safety and Inspection
Service, 1400 Independence Avenue, SW, Room
2534, South Building, Washington, D.C.
20250. All comments must identify FSIS and
the docket number FSIS-2008-0027. Comments
will be available for view on FSIS' Web site
at:
http://www.fsis.usda.gov/regulations_&_policies/2008_Interim_&_Final_Rules_Index/index.asp
Women in Blue
Jeans Conference
The 7th
Annual Women in Blue Jeans Conference is set
for January 15-17, 2009, in Mitchell. Be
watching for information on the web at:
http://www.womeninbluejeans.org/
Quote of the
Day:
“The first rule of intelligent tinkering
is to save all the parts.” – Aldo Leopold
* * * * * * * * * * *
SDFB Policy Development
Highway
Funding
July 2008
Issue:
South Dakota’s highway
fund is experiencing decreased revenues and
increased costs. In a rural state where
people depend heavily on a good
transportation system, well-maintained
highways and roads are essential. In
addition, good farm-to-market roads are
essential to the agricultural community.
Background:
South Dakota has a total of 84,230 miles
of state, county, township, municipal, and
other highways, roads and streets. All
highway funds come from highway users,
primarily in the form of motor fuel taxes
and motor vehicle registration fees. No
property or other taxes are used to finance
the construction or maintenance of the State
Highway System.
The SD Department of
Transportation (DOT) outlines four main
challenges confronting the state’s highway
system:
1)
State highway funds have declined in
recent years
2)
Future federal funding is uncertain,
both short-term and long-term
3)
Costs are inflating at an
unprecedented rate
4)
Highway needs greatly exceed existing
funding availability, resulting in the
continued deterioration of highways and
bridges.
Nearly 60% of state
revenues for the highway fund come from
motor fuel taxes.
|
Per-gallon
gas taxes: |
State
tax |
Federal tax |
Total |
|
Gasoline |
22 ¢ |
18.4 ¢ |
40.4 ¢ |
|
Liquid
Petroleum Gas |
20 ¢ |
13.6 ¢ |
33.6 ¢ |
|
Diesel
fuel |
22 ¢ |
24.4 ¢ |
46.4 ¢ |
|
Ethanol blends |
20 ¢ |
18.4 ¢ |
38.4 ¢ |
|
E85
and M85 |
10 ¢ |
18.4 ¢ |
28.4 ¢ |
|
Recipient |
State
Highway Fund |
Federal Highway Trust Fund |
|
The current state tax
rates have been in effect since April 1,
1999. Federal rates have been in effect
since January 1, 2005. Because of
inflation, that 22¢ gas tax from 1999 is now
equivalent to about 13¢ today. Increased
use of hybrid cars and increasing
fuel-efficiency are also affecting gas tax
revenues. A one-cent increase in the motor
fuel tax is estimated to net $5.7 million to
the Highway Fund.
According to the DOT,
42% of total fuel tax revenues collected go
to places other than the Highway Fund.
Recipients of fuel tax moneys include:
Match for counties and
cities Highway
Patrol
State
Radio
Tribal Fuel and Excise Exemption
Motor Fuel
Refunds
State park roads
Industrial and economic
roads County striping
Conservation
Commission Boat
ramps
Snowmobile
trails
County hunting roads
Ethanol
incentives
Distributor allowances
About 30% of highway
fund revenues come from the motor vehicle
excise tax; the remaining funding comes from
other sources such as compensatory fees paid
by commercial carriers. In 2007 the state
collected $57.3 million in the 3% motor
vehicle excise tax. License fee
collections in 2007 amounted to $47.9
million; license fees stay with local
governments for roads and bridges.
Some are suggesting that the state’s ethanol
industry has matured enough that it
shouldn’t require a two-cent tax break.
Last year, ethanol blends accounted for
about 55 percent of the motor fuel sold in
South Dakota. According to the Department
of Revenue and Regulation, revenue not
collected due to the ethanol exemption was
over $4.6 million last year.
An interim legislative
committee is studying the highway funding
issue, with topics including:
1.
Projected long term state and local
highway needs
2.
Allocation and distribution of
responsibility for all highway segments in
SD
3.
Future state and local highway-cost
projections compared to projected revenue
4.
Sustainability of current sources of
the state highway fund
5.
Alternative Sources of highway
funding revenue
6.
Strategies for greater efficiency in
financing state and local highways
7.
Strategies to promote development of
innovative ideas for reducing highway
funding needs.
8.
Appropriate tax rates for blended
fuels.
SD Farm Bureau
Policy:
Taxation – fuel
We favor continuing the per-gallon tax
on gasoline rather than other forms of
taxation to finance state highway
maintenance and construction.
Fuel taxes should be collected at all retail
outlets on all fuel sold for road and
highway use.
Energy
We support the production and use of
ethanol fuels. We support the state’s
finite producers incentive for ethanol
production and urge fuel distributors’ to
pass the two-cent tax incentive on to
ethanol users.
Questions:
1.
Is a reduction in highway funding a
concern?
2.
2.
What is the best way to finance
highway construction and maintenance needs?