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May 2009

Large Coalition Beseeches President to Restore AG Export Funding
Grange Urges U.S. EPA to Delay Oil Spill Prevention Regulations
National Grange Says "Restore Cooperative Service Program"
National Grange Writes to House Leaders to Increase AFRI Funding
Legislative Round - UP

Large Coalition Beseeches President to Restore AG Export Funding

Over 120 organizations including the National Grange represented by the Coalition to Promote U.S. Agricultural Exports, recently wrote to President Barack Obama to express strong concern about his FY 10 budget outline proposing a reduction in funding for the Market Access Program (MAP). The budget outline proposes to cut MAP funding by 20 percent from its 2008 Farm Bill authorized level of $200 million annually to $160 million. The Coalition believes such a reduction in funding or other suggested changes to the eligibility criteria of MAP will negatively impact the ability of U.S. agriculture to promote American products in international markets, thereby weakening U.S. exports and undermining the Administration’s larger efforts to stabilize the economy and preserve American jobs.

MAP, which is administered by USDA’s Foreign Agricultural Service (FAS), forms a highly successful partnership between non-profit U.S. agricultural trade associations, farmer cooperatives, non-profit state-regional trade groups, small businesses, and USDA to share the costs of overseas marketing and promotional activities such as consumer promotions, market research, trade shows, and trade servicing. Since its creation in 1985, MAP has proven to be highly successful in helping to boost U.S. agricultural exports, protecting and creating American jobs, and increasing farm income. Over this period, U.S. agricultural exports have increased by nearly 300 percent, and today over 1.2 million Americans have jobs that depend on these exports.

The Coalition emphasized that MAP is a cost-share program under which farmers and other participants are required to contribute as much as a 50 percent match of their own resources to be eligible. It has been and continues to be an excellent example of an effective public-private partnership. While government is an important partner in this effort, industry funds supporting both generic and branded promotion are now estimated to represent almost 60 percent of total annual spending on market development and promotion, up from roughly 45 percent in 1996 and less than 30 percent in 1991. Clearly, U.S. producers and industry are committed to the program.

Grange Urges U.S. EPA to Delay Oil Spill Prevention Regulations

The National Grange joined other groups as the Agriculture Coalition on the Spill Prevention, Control, and Countermeasure (SPCC) to collectively comment on U.S. Environmental Protection Agency (EPA) amendments delaying the effective date of SPCC regulations. While the Coalition stated that much of the regulation changes have been in response to comments made by the agricultural community, particularly the Agency’s inclusion of a definition of a farm as provided by agricultural stakeholders and USDA, the group stated concern over the Agency’s intent to evaluate certain undefined aspects of the rule. Further, the regulation provides no assurance that future public comment periods would be made available if the rule is altered.

While the EPA rulemaking of December 5, 2008, aptly modified EPA regulations that have been in existence for more than 35 years and have a high compliance among non-farm sectors of the economy, much of the agricultural sector has yet to even hear of the new SPCC rules. Many other farmers or ranchers are understandably confused by the complexity of the new regulation and its constantly changing compliance deadlines. Additionally, there are stark, fundamental differences between the petroleum and industrial chemicals communities that have lived under this regulation for decades and the agricultural community. Furthermore, the Agency has failed to provide data or even anecdotal evidence of agricultural spills of petroleum or other oil products to justify such a resource-intensive rulemaking. In fact, a 2005 USDA study found that nearly 70 percent of all farms will be potentially affected by the SPCC rule despite the fact that data on oil spill on farms, cooperatives, and other agribusinesses is almost nonexistent.

Upon review of the public comments submitted to EPA, the Agriculture Coalition became aware of an alternative option of self-certification for farms. The Coalition stated that this alternative approach deserves a full study by EPA. For a number of reasons, self-certification could prove to be the most sensible way to apply SPCC rules to all farms – if in fact EPA insists that farming operations must be regulated to protect against the risks of accidental oil spills, a view that the Coalition does not share.

The Agriculture Coalition recommended that the Agency issue a compliance deadline that provides adequate time for producers to develop SPCC plans, secure budgets, and make necessary capital expenditures to comply with the final rule once it has been published. Farms operate on loans and funds are often dedicated several years in advance to other crucial elements of the operation. They encouraged EPA to consider these factors as it establishes new compliance deadlines. They also recommended the Agency provide five years from the date of final publication for compliance for farms.

National Grange Says "Restore Cooperative Service Program"

Approximately 60 agriculture groups and supporters of the cooperative business system recently wrote to USDA Secretary Tom Vilsack calling his attention to the need to restore critical resources to the USDA Cooperative Service Program.

The Coalition urged the Secretary to:

Revisit the Department’s mission at the highest level to define the Department’s critical roles in supporting farmer-owned and other rural cooperatives;
Consider structural and administrative changes to protect the program and its professionals from dilution of purpose;
Redefine and fill staff positions, including those for cooperative finance, accounting, law and commodity specialty areas, and seek multi-skilled advisors;
Restore the cooperative information/publications staff (which was moved to the Rural Development public affairs office) to its appropriate place within the cooperative program;
Assemble a high-level group of industry, organizational, and public officials to guide the Department’s revitalization of its cooperative program.

National Grange Writes to House Leaders to Increase AFRI Funding

A group of farm organizations representing livestock and dairy producers and those who grow feed grains, fiber crops, fruits, and vegetables recently wrote to leaders to the U.S. House of Representatives supporting an increase in funding for the USDA’s Agriculture and Food Research Initiative (AFRI) until this competitive research program reaches its full authorized level of $700 million per year. As the first step, the group is supporting an increase of $100 million in FY 2010.

The importance of agricultural research has never been more evident:

Foreign crop pests and diseases, introduced either by the weather or the movement of goods and people, threaten row crops and orchard stocks.
Novel and exotic animal diseases threaten economically critical herds, flocks, and even human health.
New crops and trees are urgently needed to provide renewable fuels to balance the U.S. energy portfolio and to help sequester carbon to address global climate change.

At the same time, the research needs for other agricultural and natural resource priorities, including conservation, food safety, human health and nutrition, and obesity also continue to rise — creating tougher competition for increasingly scarce USDA research dollars. The group believes that American citizens benefit from agricultural research just as they benefit from other health and science research investments. While AFRI is a relatively small program compared to research grant programs administered by other federal agencies, it is USDA’s premier competitive research grant program. The National Grange believes that as a competitive research grant program, AFRI increases general public support for agriculture research by assuring taxpayers that the decision making process for awarding agriculture research funds is open, transparent, and based on the merit of the proposed research projects.

Legislative Round - UP

California State Grange
Ag Day at the Capitol is Huge Success
From the California State Grange News

Recently the California Grange joined in celebrating Agriculture Day 2009 on the West steps of their State Capitol. The annual event brought together farmers, ranchers, lawmakers, and the public for a day of recognition and appreciation for California's agricultural community. Grange representatives, including Grange officers, staff, and National Grange Legislative Director Leroy Watson, answered questions and handed out promotional brochures from a booth decorated with Grange photos and memorabilia.

A parade of dignitaries stopped by the booth, including the California Department of Food and Agriculture Secretary A.G. Kawamura. The highlight of the day came with a visit from Governor Arnold Schwarzenegger. Nearly forty organizations participated, giving out samples, exhibiting animals, and explaining the importance of agriculture. The celebration was well attended by school children, teachers, lawmakers, and the general public.

Farmland Preservation, Water Resource Management, and Legislator Pay Reforms Top California Grange Issues Before the Legislature
By Randall Lewis, President, California State Grange

The California State Grange is currently monitoring several bills pending in the 2009 session of the California Legislature. The bills deal with a variety of issues including the Williamson Act, California’s farmland preservation program; state-wide regulations of septic tanks; and legislator’s pay. SB 170 would amend the provisions of the Williamson Act to make it easier for county supervisors to cancel Williamson Act contracts and allow Indian tribes to expand their reservations to accommodate tribal cultural centers, infrastructure, and housing. The Grange opposes the bill in its current form because it weakens the Williamson Act.

Several other bills deal with the State Water Resources Control Board providing regulations governing the operation of septic tanks including enabling the State Water Board to adopt exemptions to the regulations. Almost 10 years ago a law passed addressing the pollution of California waters from malfunctioning septic systems (onsite wastewater treatment systems, OWTS), which were emitting poorly treated effluent directly into surface waters. However, the final draft regulations were never implemented and there is now legislation invalidating the Board’s initial charge to develop these statewide septic tank regulations. The California State Grange testified at the Board’s hearing on the draft regulations calling for their modification to impose less stringent requirements in areas of the state where septic tanks do not impair water quality and to impose stricter requirements in areas of the state where septic tanks do impair water quality and use.

Legislation has been introduced in California taking away legislator’s pay when the state budget is not adopted by June 15 as provided in the state’s Constitution. Under the legislation, travel and living expenses would be permanently forfeited and legislators would be prohibited from engaging in campaign fundraising activities until the budget bill is passed.

Ohio State Grange
50th Annual Ohio State Grange Legislative Conference
By Lisa Tharp, Legislative Director, Ohio State Grange

The 50th annual Ohio State Grange Legislative Day Conference took place recently at the Friendly Hills Grange Camp. Leroy Watson, National Grange Legislative Director, spoke concerning Grange Trademark issues and Gary Lambert, South East Region Field Director for ConnectOhio spoke about the availability of affordable broadband Internet to every Ohioan. Additionally, 90th District Ohio House of Representative Margaret Ann Ruhl spoke regarding possible loss or drastic reduction of funding for the Ohio State University (OSU) Extension service. Currently, the OSU extension has begun a reorganization of their services to expand extension agents’ territories to cover several counties. Because of funding shortfalls, some county extension agents have already indicated the elimination of their 4-H program. Without a 4-H program, the youth in those counties may not have the opportunity to exhibit at local county fairs, or develop leadership skills through the 4-H program. The Grange is supporting restoration of OSU extension funding.

Another speaker at the event was Adam Sharp, Ohio Farm Bureau who reported that the Humane Society of United States (HSUS) recently met with representatives of the agriculture and livestock industry. HSUS has a history of successfully outlawing hen cages, veal crates and gestation stalls in Arizona, California, and Florida. According to Mr. Sharp, last November California passed Proposition 2 which outlaws veal crates and gestation stalls in California. Sharp believes that HSUS is targeting the 2010 elections for a possible ballot initiative in Ohio.

Pennsylvania State Grange
Property Taxes and Gun Control Are Issues Important to the Grange before the State Legislature
By Verdant Strategies, Lobbyists, Pennsylvania State Grange

With gambling dollars continuing to climb, Pennsylvania homeowners will receive a property tax rebate again this year of approximately $200. Older Pennsylvanians with incomes up to $35,000 could gain an additional bonus of $975, as will seniors who pay a large share of their income to property taxes or who live in high property tax areas. A small percentage of senior citizens will pay no property tax at all.

Additionally some PA lawmakers are trying to pass gun control legislation. In light of the tragic shootings that took place recently in Pittsburgh, resulting in the death of three police officers responding to a domestic dispute, the issue of gun control is being revisited. PA Governor Ed Rendell recently held a press conference on the issue citing incidents where police officers are outgunned by criminals with assault weapons and other illegal firearms that are readily available. He called on the Pennsylvania General Assembly to pass legislation mandating the reporting of lost or stolen handguns. Additionally, the Governor wants legislation that would give local jurisdictions the authority to pass their own ordinances on handguns with the rationale that what works in urban areas doesn’t necessarily have the same applicability in rural areas.

Lycoming County Pomona Legislative Banquet: A Complete Success!

Recently, Lycoming Pomona Grange celebrated Grange Month 2009 by holding its 56 th Annual Legislative. More than 150 Grange members and invited guests filled the hall for a full program of food, fellowship and legislative programming. The program featured a reception that highlighted several of the prominent agricultural products of Lycoming County: dairy, honey, and maple syrup, presented by local youth volunteer ambassador “Princesses’ representing local dairy and honey producers.

The evening’s program included a virtual “who’s who” of local, state and national political leaders representing Lycoming County, PA. The three county commissioners, the county’s elected judges and several other county officials attended the banquet and were recognized for their public service by the Grange. The two State

Representatives, as well as the State Senator Gene Yaw representing Lycoming County in the Pennsylvania State Legislature, were introduced and given a chance to speak about their experiences in Harrisburg. National Grange Legislative Director Leroy Watson was the keynote speaker and brought a report from Washington, DC and the National Grange. The Hon. Glen Thompson, U.S. Representative for the 5 th District of Pennsylvania, also provided remarks about the status of current legislation in Washington, DC.

After the event Lycoming County Pomona Grange Legislative Chairman Gordon Hiller was asked how he was able to get so many local, state, and national leaders to attend the Pomona Grange’s Legislative Banquet. “Well, we asked them to attend,” was Brother Hiller’s response.

Washington State Grange
Proposed WA State Climate Change Legislation Engages Grange
By Scott Dahlman, Legislative Director, Washington State Grange

The issue of “climate change” is finding its way into much of the public policy being made today in the state of Washington. Currently legislation has been introduced for a “Cap and Trade” program. The first part of the program is the “cap.” Simply put, the government establishes a cap on the greenhouse gas emissions (GHG) an entity can emit in a given period of time. How the cap is set and for whom the cap is applied is the first controversial part of this program. Currently legislators are seeking to cap only large emitters of GHG, those emitting more than 25,000 metric tons of carbon dioxide equivalents annually. This is a significant amount, and would mainly target manufacturers and energy companies. The Department of Ecology (DOE) would establish annual reduction goals and would set the caps accordingly. The idea is that the cap would be reduced each year so that emitters would have an incentive to reduce GHG emissions. The bottom line is that emitters end up with a certain allowance of GHG emission credits. This is where the “trade” part of the equation comes into play. An entity would be free to sell, or “trade,” any credits they received that were not used. The legislation leaves the detail questions of the cap and trade program up to the DOE.