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April 2008 |
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| U.S. Supreme Court Rules In Favor of Washington State Grange |
| In 2004, voters in the State of Washington passed an initiative changing the State’s primary election system. The People’s Choice Initiative of 2004, or Initiative 872, provided that voters could choose any candidate, and the top two vote getters for each office, regardless of party preference, would advance to the general election. The Court of Appeals for the Ninth Circuit nullified I–872 stating it imposed an unconstitutional burden on state political parties’ First Amendment rights. Since then, the Washington State Grange fought the decision all the way up to the United States Supreme Court, and on March 18, 2008, the country’s highest court UPHELD the constitutionality of the top-two primary. Voters in Washington finally will have the opportunity to choose the elected officials whom they believe will best represent them.
“The Court should be commended for agreeing with the Grange’s appeal and upholding the will of the voters of this state,” stated past Washington State Grange President and current Director of Government Affairs Terry Hunt. “We filed this appeal in the Supreme Court because we believed from day one that Initiative 872 would stand up to any and all constitutional challenges, and now the voters of this state get what they want and deserve: a direct line to choosing the elected officials who will best represent what they need.”
In a footnote to the majority opinion, Associate Justice Clarence Thomas wrote favorably about the Washington State Grange: “The Washington State Grange is a fraternal, social, and civic organization chartered by the National Grange in 1889. Although originally formed to represent the opinions of farmers, the organization has advocated a variety of goals, including women’s suffrage, rural electrification, protection of water resources, and universal telephone service. The State Grange also supported the Washington constitutional amendment establishing initiatives and referendums and sponsored the 1934 blanket primary initiative.”
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National Grange Supports Rural Broadband Technology |
The National Grange recently wrote to the Federal Communications Commission expressing strong support for advanced telecommunications services in rural America.
The letter stated that universal and affordable broadband technology is critical to ensuring economic prosperity to the most rural and remote regions of the country.
The National Grange strongly believes that continued investment in the Internet’s infrastructure is imperative to deliver rural Americans with a broadband network that rivals those within our nation’s cities and suburbs. The National Grange urged the FCC to propel innovation and investment in the broadband industry, and to enact policies to build a better Internet for tomorrow’s rural America.
In examining competitive matters in the broadband marketplace, the National Grange asked the FCC to pay special attention to avoid blanket prohibitions to dictate activity on the Internet’s infrastructure. More and more, rural Americans are using broadband to connect with doctors, telecommute, run small businesses, and access the world. With so many heavy bandwidth applications and new software streaming across networks, Internet providers must maintain the unmitigated ability to manage that traffic so as to maximize the consumer’s experience.
The National Grange believes that the FCC’s posture towards management practices on the network should remain one of vigilance. The Commission should continue to ensure, through investigations and individual proceedings, that Internet providers and applications alike are delivering an optimal experience for all consumers. |
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Coalition To Promote U.S. Agricultural Exports |
The National Grange, along with the Coalition to Promote U. S. Agricultural Exports, consisting of over 100 organizations, wrote to congressional agricultural leaders to commend them as they work to resolve the differences in the new Farm Bill and to share their views regarding the development of the trade title. The Coalition believes that the U.S. must continue to have policies and programs in place that help maintain the ability of American agriculture to compete effectively in a global marketplace still characterized by highly subsidized foreign competition.
As Congress works to resolve differences in the trade title, the Coalition urged their consideration and support for increasing funding for the Market Access Program (MAP) from the existing level of $200 million annually to at least $240 million annually over the next five years, which is similar to the approach taken in the Senate version of the Farm Bill. The Coalition also supported an increase to at least $44.5 million in funding annually for the Foreign Market Development (FMD) Program. In addition, they opposed any proposed reductions in the programs in the out years of a new Farm Bill and strongly believe that both MAP and FMD should be maintained as mandatory spending programs. USDA should also work to ensure that they are fully and aggressively utilized.
A recent independent cost-benefit analysis of the MAP and FMD programs found that fo r every additional dollar spent on market development, $25 in additional exports result within 3-7 years. The study also found that farm cash receipts have increased $2.2 billion since enactment of the 2002 Farm Bill due to the additional exports from market development. The Coalition to Promote U.S. Agricultural Exports strongly believes that MAP and FMD have been crucial in helping to maintain and expand U.S. agricultural exports, protect American jobs, and strengthen farm income. They have helped make agriculture one of the few sectors of the American economy that provides a positive contribution to our nation’s overall trade balance.
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National Grange Applauds Approach to Argentine Debts |
National Grange Legislative Director Leroy Watson recently addressed the American Task Force for Argentina (ATFA) on the restructuring of Argentine debt and its benefits to American rural communities. Argentina, a major competitor to American farm exports, defaulted on more than $100 billion in sovereign debt in 2001. Deliberately removing funds from banks subject to international rulings prior to the debt default, Argentina has attempted to lower the value of the Argentine Peso in foreign exchange markets. Coupled with current high commodity prices, the incentives for domestic exports in Argentina are very great, capturing a portion of the market that formerly belonged to American agriculture. Normally, sovereign debt defaults would be restructured in a series of negotiations. Argentina has yet to come to a suitable compromise and refuses to bargain on the international level, proposing instead a compromise that is far below desired levels and would cost Americans more than $10 billion in investment losses.
Recent events in the country of Argentina and elsewhere have emphasized the need for resolving that nation’s sovereign debt crisis. While currency devaluation that was driven by debt default allowed Argentina to increase its share of agriculture trade in world markets, those advantages have been only temporary. Lacking access to international credit markets for infrastructure investments such as roads and bridges and basic government services, the government of Argentina has raised export taxes on the nation’s largest export commodity, soybeans, from roughly 34% to 45%. The Argentine agriculture sector now accounts for up to 25% of all the tax revenues of the Argentine Federal Government. Farmers in Argentina have launched nationwide protests to highlight their plight of being taxed out of the world market. Argentina is increasing its taxation of its agricultural exports, and thereby shutting down its export infrastructure, just at a time when world markets need access to reliable suppliers of basic agricultural commodities. The president of the World Bank noted recently that thirty-three nations around the world are at risk of social upheaval because of rising food prices and the decisions of many food exporting nations to either stop food exports or tax those exports at excessive rates in order to take excessive, profiteering advantage of the global food shortage. |
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National Grange Urges Congress to Consider Broadband Services in Farm Bill |
The National Grange recently wrote to Congressional leaders urging them to provide funding designated to expand broadband services in farming and rural communities. It is critical that the Farm Bill provide public funding for additional high-speed broadband infrastructure that will be deployed to spur private investment, economic growth, and create new jobs in under-served rural areas.
The National Grange explained to Congress that rural Americans from all walks of life are ready to apply the benefits of high-speed broadband. Rural Americans do not have markets where thousands of customers can physically drive down their streets on a regular basis. Far too few of our rural communities have institutions of higher education, with a myriad of courses of study that help our children and workers adapt to the economic realities of the 21 st century global economy. Too many rural communities lack access to even basic health care facilities, not to mention key medical specialists who will be critical to the disproportionate number of older Americans who will be residing in rural communities over the next 50 years. The Internet brings the world to our families, our farms, our ranches, and our small businesses. But as the Grange letter concluded, to experience the full benefit of today’s Internet, “all consumers must have access to a high-speed connection, and too many rural Americans don’t have that option right now.” |
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National Grange Supports Capital Gains Tax Relief for Farmers |
The National Grange supports H.R. 5134, the Beginning Farmers and Ranchers Act of 2007, which amends the Internal Revenue Code by creating three levels of capital gains tax relief for farmers and ranchers who sell farmland. Capital gains taxes have hindered the agriculture community from keeping viable farmland for production and retarded the growth of development by requiring a tax reflecting the market selling price of agricultural land rather than the agricultural use price. As a result, retiring farmers must consider the costs of a high capital gains tax when pricing their land, making it difficult for beginning farmers to purchase farmland and embark upon a career in agriculture. By implementing a capital gains tax system based on land use rather than development use, Congress would be encouraging agricultural production on farmland, assisting future farmers, deterring development of farmland, and helping to ensure a viable agricultural industry.
H.R. 5134 would permit farmers selling agricultural land to a qualified beginning producer to be eligible for a 100% capital gains tax exemption up to $500,000 per year. It would also allow farmers to receive a 50% capital gains tax exemption if they sell agricultural land to any producer who keeps the land in production. Finally, the bill would require that a 25% capital gains tax exemption be given to anyone selling agricultural land, regardless of its future use.
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National Grange Supports Renewable Energy Tax Credits
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The National Grange is supporting H.R. 5351, the Renewable Energy and Energy Conservation Tax Act of 2008, which would provide tax credits for renewable energy production and energy conservation. Recently the U.S. House of Representatives passed H.R. 5351 and sent the bill to the U.S. Senate for consideration. This legislation, which passed the House of Representatives, would do the following:
- Extend for three years tax credits for electricity produced from wind energy and biomass.
- Extend for two years production tax credits for biodiesel and the small biodiesel producer credit.
- Extend for two years the production tax credit for diesel fuel created from biomass.
- Create a new production tax credit for cellulosic alcohol produced fuel.
- Authorize $2 billion of new clean renewable energy bonds for public and cooperative electric producers.
- Increase the tax credit for gas stations to install alternative fuel pumps.
National Grange supports energy conservation in agriculture, industry, commerce, and the home by the use of tax credits and incentives. Grange policy urges the repeal of laws and regulations that have blocked or discouraged United States energy production by private enterprise. It also supports a national energy policy that will encourage the development of all forms of domestic energy in an environmentally sound manner to reduce our dependence on foreign oil. |
National Grange Supports Immigration Reform for Farmers
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The National Grange recently wrote to the U. S. Secretary of Labor and the U. S. Secretary of Homeland Security concerning immigration reform. The Bush Administration is proposing changes to help solve agriculture’s need for a dependable, legal workforce by making the H-2A guest worker visa program practical for farmers. The current system is too complex, costly, and does not provide a workforce for many agricultural operations.
While the National Grange applauded the administration’s efforts at immigration reform, we urged a more comprehensive long-term solution. The National Grange recommended that immigration policy changes be open for debate with full disclosure to the public. We suggested discussion should include present and future impacts of immigration on local communities across the nation. While we believe that immigration laws should reflect the needs of the nation’s agricultural community, we also suggested that proof of citizenship and/or legal registered immigration be required before receiving any worker benefits. Finally, we recommend that federal authorities be allowed to detain illegal immigrants and foreigners with expired visas for the duration of their investigation and processing, and be deported if immigration status is determined to be illegal. |
National Grange Writes to USDA Secretary on Beef Recall
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The National Grange recently congratulated USDA Secretary Ed Schafer on the investigation and recall of 143 million pounds of beef products. The National Grange strongly believes that USDA has adequate food safeguards in place. We supported the USDA’s continuation of investigations of wrongdoing at the Hallmark/Westland Meat Packing Company. We also supported the department’s vigilance in overall food safety monitoring. By penalizing the Hallmark/Westland Meat Packing Company and increasing USDA monitoring efforts at that specific plant, the consuming public will understand the serious efforts being taken to correct any wrongdoing at the meat plant and restore their faith in the domestic food safety laws and regulations.
Humane handling and slaughter of animals is essential at meat packing plants. Clearly, Congress has addressed this issue in the Humane Methods Slaughter Act and FSIS regulations. Non-ambulatory, disabled cattle should not enter the food supply so as to protect the American public. That is why the National Grange was surprised and concerned when it was discovered that the proper authorities were not presented with the possible violations at the Hallmark/Westland Meat Packing Company until months after it was discovered. Clearly, those who filmed these violations were not as interested in the increased public health risks and endangered animal welfare as they were in making a mockery of the system. In the meantime, hundreds of thousands of American citizens could have become ill as a result of contaminated meat. We question the motives of the group that took the video of possible violations but took months to contact the proper federal inspectors.
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National Grange Opposes CFTC and SEC Merger
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The National Grange wrote to Congressional leaders, the Secretary of Treasury, and the Commodity Futures Trading Commissioners, strongly opposing any merger of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). While the United States financial market is in turmoil and elected leaders are searching for ways to solve our nation’s economic problems merging the CFTC and the SEC will not increase confidence in our declining economy.
The CFTC regulates the futures market and the SEC regulates the equities market. While both are financial regulators, they oversee two completely different types of markets, and consequently have two completely differently sets of statutory and regulatory authority. They have two different sets of laws to carry out, dissimilar sets of regulatory responsibilities, and two divergent Congressional mandates. Merging the two would not cut bureaucracy or make the system more efficient, and it certainly would not solve any domestic financial or economic problems.
Proponents of the SEC and CFTC merger justify their plan by stating that streamlining financial services will save taxpayers money. While we do agree that the CFTC and the SEC need to work together and resolve jurisdictional and communication difficulties, the National Grange does not believe a merger will result in improved competitiveness of U. S. markets.
The National Grange concluded that Congress and the Bush Administration should seriously look at the underlying economic problems we face today and find solutions that will turn our economy around and not rely on a band-aid approach that does not provide positive long-term effects.
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