Mike Johanns, the Secretary of the United States Department of Agriculture recognized the National Grange's ten-point Blueprint for Rural America as a comprehensive agenda to help advance our nation's agriculture policy. "Your 10-point plan highlights many issues that are important to American agriculture and the Department of Agriculture," said Johanns in his March 21, 2005, letter to Bill Steel, the President of the National Grange. The letter also explained the agency's basic values over some of the issues placed in the Grange's Blueprint for Rural America. "We are dedicated to implementing policies that help build a stronger agriculture. America's farmers are the most innovative and competitive in the world, and we want to ensure that producers are provided the tools to help in that regard. This includes making sure farm programs help farmers while still allowing markets to function well. It includes expanding markets outside the United States and eliminating trade barriers that hinder competition. It means making sure undue burdens and misguided regulatory requirements are not placed on producers, while encouraging the use of increased technology and seeking value-added uses for agriculture to help lift incomes. And investing in our rural communities to ensure they can compete equally with other parts of the country," said Johanns.

A few days earlier, Bill Hawks, Under Secretary of Marketing and Regulatory Programs of USDA also gave a feedback to the Grange about BSE issue. "We recognize your specific concerns and are deeply aware of the complexities surrounding this issue," said Hawks. "As you know, there are legal proceedings underway concerning USDA's final rule (on the BSE), and Congress is also looking at this issue.as this situation develops, we will stay focused on the mission of protecting the health of U.S. livestock and consumers and be certain to keep your views in mind."

On February 3, 2005, Senator Gordon Smith (R-OR) introduced S.284, the Rural Universal Service Equity Act of 2005, a bill that would annually provide millions of dollars of additional Universal Service support to several of the "non-rural" carriers by which almost 70% of rural Americans are served. The USF is a federal program to promote the availability of equitable telecommunications services throughout the nation at affordable rates. However, the USF allocation mechanisms have been unfair for rural areas. According to the recent FCC's projections for 2005 spending from the USF, only 3 states will receive about 75% of the "non-rural funding" - the funds available from the USF program for the "non-rural" carriers, and 85% will be provided to states east of the Mississippi. Only 10 states currently receive any funding from this program, while 40 states are shut out of the program entirely. This proves that the vast majority of rural Americans are still receiving no assistance for the USF program, almost a decade after Congress created it.

Sen. Smith's USF reform bill will geographically de-average high cost USF support for "non-rural" carriers. The bill requires the Federal Communications Commission (FCC), in calculating Federal universal service support for eligible telecommunications carriers that serve such areas, to revise its support mechanism for high cost areas to provide support to each wire center in which the incumbent local exchange carrier's average cost per line exceeds the national average by such amount as the FCC determines appropriate for the purpose of ensuring the equitable distribution of universal service support throughout the United States.

The National Grange, as a long supporter for fair distribution of the USF, applauded Sen. Smith's introduction of S. 284 and asked its members to urge their senators to co-sponsor the bill. Sen. Smith had introduced a similar bill (S. 1380) last year and the Senate Commerce Committee voted 13-9 vote to approve that bill, however, the legislation was never submitted for a floor vote.

The Endangered Species Act (ESA) reform legislation appears to have greater chance for success in 109th Congress. The Critical Habitat bill, which Congressman Dennis Cardoza (D-CA) on March 15 reintroduced, is receiving strong bi-partisanship support by both sides of Congress. The bill would help establish a system that enables the Fish and Wildlife Service to make more informed decisions on critical habitat designations and how to actually preserve a species. "Congressman Cardoza's legislation addresses what is probably the most widely agreed upon problem with the ESA," said House Resources Committee Chairman Richard Pombo (R-CA). "The unintended consequence of the current critical habitat designation process is that it has relegated our biologists to courtrooms and legal chores instead of hands-on species recovery work in the field." "We welcome Congressman Cardoza's bill to the mix of ideas for improving the ESA," said Senator Mike Crapo (R-ID). "As we said in February, we have agreed to work together with bill sponsors and that is exactly what is happening."

Also, the House Resources Committee held its first hearing in 109th Congress on updating and improving the ESA on April 30, 2005, in Jackson, Mississippi. The hearing focused on lessons learned protecting and restoring endangered species in the Southern United States. It was designed to discuss highlight instances in the South where the ESA worked, and how legislation to update and improve the ESA could bring about further successes.

Comprehensive reform of the ESA remains one of the top legislative priorities of the National Grange in 2005. Over the past years, farmers and ranchers have suffered economic and social damage generated by the ESA that lacks sound science and consideration of economic impacts to the affected areas. The Grange applauds all the efforts ongoing in Congress to update the ESA and urges its continued hard work.

Sec. Dennis Wolff presents Governor's Proclamation to State Grange Pres. Betsy Huber

On April 11, the Pennsylvania State Grange held an annual Legislative Day event to give its members an opportunity to discuss their local and state concerns with their legislators over a pleasant luncheon as a part of the National Grange Month activities throughout the nation. Over 100 Grange members from around Pennsylvania participated in the event this year.

PA State Secretary of Agriculture Dennis Wolff joined as keynote speaker and covered the priorities of his agency including Agriculture, Communities and the Rural Environment (ACRE) initiative, Crop Insurance and the Department's interactive educational web site, "Marketplace for the Mind." The Secretary then read and presented a proclamation from PA Governor Ed Rendell declaring April, 2005 "Grange Month," to PA State Grange President Betsy Huber. PA Senator Mike Waugh and Representative Art Hershey also presented Ms. Huber with a proclamation from the PA Senate and the House of Representatives respectively complimenting Ms. Huber and the PA State Grange for their continuous efforts to improve agriculture and rural Pennsylvania. Grange members then had the opportunity to talk to their legislators and their staff throughout the lunch raising their own concerns and questions.

"During Grange Month we want our communities to know that the Grange is alive and well in Pennsylvania and that we have a lot to offer those communities," Ms. Huber said. She asked Grangers to identify what changes they would like to see in their community and work with the community leaders to make those changes reality.

On April 20, 2005, the National Grange cosigned a letter to J. Dennis Hastert, Speaker of the U.S. House, to express its opposition to increase of CAFE (Corporate Average Fuel Economy) standards on behalf of farm and ranch families across the country who rely on affordable light trucks and similar vehicles for farming and transportation needs. Just one day after the letter has been sent, the U.S. House passed an energy bill on April 21 and an amendment to raise the national fuel economy standards to 33 mpg by 2015 was defeated 254-177.

The National Grange strongly opposes any increase in CAFE standards. The Grange's opposition is based on concerns that such a federal mandate will have a negative impact on consumers and translate directly into a narrower choice of vehicles for America's farmers and ranchers, who depend on affordable and functional light trucks to perform the daily rigors of farm and ranch work. "Our groups cannot support standards that increase the purchase price of trucks, while decreasing horsepower, towing capacity, and torque. In addition, recent studies indicate that an aggressive increase in the CAFE standard for light trucks could add over $3,000.00 in the purchase price per vehicle. This would result in yet another added production cost for U.S. farmers and ranchers that cannot be passed on when selling farm commodities," the coalition letter said. Twelve Agriculture groups joined the letter, which includes National Cattlemen's Beef Association, American Farm Bureau Federation and National Corn Growers Association.

The Energy Policy Conservation Act was enacted by Congress in 1975 by adding Title V "Improving Automotive Efficiency" to the Motor Vehicle Information and Cost Savings Act and it established CAFE standards for passenger cars and light trucks with the goal of doubling economy by the 1985 models. The current standard is 27.5 mpg for passenger automobiles and 20.7 mpg for light trucks, a classification that also includes sport utility vehicles (SUVs).

The USDA's Market Access Program (MAP), one of the government support systems to make U.S. agriculture exports profitable, is under consideration in Congress during the FY 06 budget process. It uses funds appropriated by Congress to encourage the development of commercial agricultural export markets, to stimulate interest of small companies in exporting and to open new markets and counter unfair foreign competition. During consideration of the 2002 Farm Bill, Congress sought to bolster U.S. trade expansion efforts by approving an increase in funding for the Market Access Program (MAP). For FY 06, the Farm Bill authorizes funding for the MAP at $200 million.

The National Grange joined a coalition statement, as one of member organization of the Coalition to Promote U.S. Agricultural Exports, to the Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies in the House Appropriations Committee to ask them to support the Market Access Program (MAP) at $200 million, the full-authorized levels by the Farm Bill.

Farm income and agriculture's economic well-being depend heavily on exports, which account for one-third or more of domestic production, provide jobs for millions of Americans, and make a positive contribution to our nation's overall trade balance. In FY 05, U.S. agriculture exports are projected to reach $59 billion, which would make the current year the 3rd highest export sales year ever following FY 04 at $62.3 billion and FY 96 at $59.8 billion. However, continued high levels of subsidized foreign competition and related steep artificial trade barriers have threatened this high export sales trend. According to recent information from USDA, the European Union (EU) spent more than $3.25 billion on agricultural export subsidies in 2003, compared to approximately $30 million by the U.S. In other words, the U.S. is being outspent by more than 100 to 1 by the EU alone with regard to the use of export subsidies.

"We want to emphasize again the need to strengthen the ability of U.S. agriculture to compete effectively in the global market place," the statement said. "American agriculture is among the most competitive industries in the world, but it cannot and should not be expected to compete alone in export markets against the treasuries of foreign governments."

Peter Banks, Leg. Program Asst.

The National Grange is pleased to announce that Peter Banks has joined the staff as a Legislative Program Assistant. Mr. Banks graduated with a History major from the University of Wake Forest in North Carolina in 2003. Before coming to the National Grange, he spent a year in Ecuador setting up an English teaching program in the Amazon jungle, and he recently completed an internship in Senator Barbara Boxer's office.

Mr. Banks' responsibilities include responding to requests for basic information regarding the policies and positions of the organization; assisting with research regarding public policy issues; organizing research and advocacy materials regarding the status of legislation, regulations, and other public policy initiatives; and assisting with timely production and distribution of the department's informational products.

"I look forward to working for the National Grange and appreciate the opportunity to continue my own education concerning the issues important to your organization," Mr. Banks said. Peter Banks, Legislative Program Assistant can be reached by phone at (202) 628-3507 (x105), by fax at (202) 347-1091 or by e-mail pbanks@nationalgrange.org