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AUGUST 2005 |
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| National Grange Calls On Passage of Energy Bill to Promote America's Farmers |
House and Senate lawmakers kicked off talks to work out a compromise between the two versions of the energy bill passed by each chamber. On Thursday, July 14, the first conference committee was held to signal the opening of the hectic discussion for some knotty issues.
Among them is the Methyl Tertiary Butyl Ether (MTBE) liability issue. The National Grange supports banning the use of MTBE in motor fuels and substituting it with ethanol, biodiesel or other alternative fuels because it believes increased use of corn-based ethanol, cellulosic ethanol and biodiesel derived from varied farm products including soybeans will boost American farm markets. The House version protects MTBE producers against environmental lawsuits that allege the additive has contaminated drinking water supplies across the country, but the Senate bill does not have such a provision. In recent years disagreement over MTBE has been a major hurdle for passage of an energy bill. The National Grange also supports several provisions in the Senate energy bill to encourage the use of renewable energy such as: a requirement for refiners to produce 8 billion gallons a year of renewable fuels mostly corn-based ethanol and vegetable oil based biodiesel by 2012; a requirement for utilities to produce 10 percent of their electricity from renewable energy sources, such as wind and biomass from garbage or plants, by 2020; and extension of biodiesel tax incentive.
The Arctic National Wildlife Refuge (ANWR) is another key issue that will generate tensions during conference committee meetings. The House energy bill approved it, but the Senate version does not include a provision regarding ANWR. The National Grange has been a long time supporter - for more than 20 years - of efforts to open up the coastal plain region of ANWR to oil and gas exploration in an environmentally sound manner. The ANWR region is estimated to be able to contribute more than 1 million barrels of oil a day, which will tremendously help farmers and ranchers to save on their energy-related production expenses.
President Bush has pushed Congress to have a bill on his desk before the August congressional recess. The National Grange recently asked its members to urge Congress to reflect the Grange’s concerns about the current energy bill during the conference committee negotiation. See action alert |
| National Grange Regrets Resuming Canadian Cattle Imports |
On Thursday, July 14, a three-judge panel of the Ninth U.S. Circuit Court of Appeals overturned a temporary injunction that banned the import of Canadian cattle and the first new shipment of live Canadian cattle crossed the U.S. border on Monday, July 18. The border has been closed to imports of Canadian cattle since May 2003 after a single cow with BSE was discovered in Alberta.
“Just last month, the first case of BSE in a U.S.-born cow was confirmed,” National Grange President Bill Steel said. “Important scientific questions about BSE and its transmission raised by previous findings of active cases of BSE in Canada still remain unanswered. At least until science-based BSE prevention systems in Canada have proved flawlessly working, it should be illegal to import Canadian cattle. Furthermore, USDA's regulatory approach is inconsistent with Country of Origin Labeling programs established in the 2002 Farm Bill. Reopening the border to Canadian cattle is an opportunity to begin implementing Country of Origin Labeling that enables U.S. consumers to judge the safety of imported products on their table.
”The National Grange policy says: "Imports of animals, meat, meat products and bone meal into the United States from any country having BSE should be stopped until scientific data shows otherwise."
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| First Farm Bill Forum Triggers Discussions for Progress of National Farm Policy |
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Agriculture Secretary Mike Johanns listens to comments from the studio audience as well as call-ins at the first Farm Bill Forum held on July 7, 2005 in Nashville, TN. (USDA Photo) |
On July 7, Agriculture Secretary Mike Johanns hosted the first Farm Bill Forum in Nashville, Tennessee, with more than 400 stakeholders – a full-capacity audience –gathered in the RFD-TV studio. “I’m here tonight to listen to your comments,” Johanns said at the beginning of the forum. “The Farm Bill impacts America’s entire ag community…so the entire community should have a say in what the Farm Bill is all about.” Most of the evening was covered by six topics – entry into agriculture, competitiveness of U.S. agriculture in global markets, fair distribution of farm program benefits, achievement of conservation goals, enhancement of rural economic growth, and opportunities to expand agricultural products, markets, and
research.
The Farm Bill should be mindful of the changing demographics of America's young farmers and ranchers and provide them with the knowledge, skills and tools to ensure a safe and sustainable food supply,” said Tyler Boyd, 4-H governor for Tennessee. “Programs that reach out to and educate the public, particularly youth, will become even more important in maximizing the United States' ability to compete in global markets.”
Also, there was a remarkable point brought up by a crop producer on WTO talks. “We do not need to make changes in the current Farm Bill until we know the results of the Doha Rounds of negotiations and what concessions we're going to receive from our trading partners, especially in the area of market access,” said Harris Armor from Centerville, Tenn. “Any changes made should ensure our competitive advantage provided to us by our soils, our climate and our production capacities that we have in this country. And these should not be jeopardized by inappropriate government action…we should stay poker-faced and not show our cards during the negotiations by making public declarations about changes to our current Farm Bill which will put U.S. producers at a serious competitive disadvantage.”
Some speakers touched upon conservation and environmental issues as well. “The Farm Bill needs to be crafted in a way that more fully meets America's needs for both a healthy environment and a productive agriculture. Conservation Security Program should be the national conservation umbrella that USDA farm programs work under.” Kenny Reidlinger, president of the Soil and Water Conservation Ohio Federation, said. A Tennessee beef producer, Paul Fugus said, “I know that the whole American public will benefit if we continue to protect the cost-share funding that is available in the 2002 Farm Bill for the Conservation Security Program.”
Energy issues were also discussed as a significant dynamic of agriculture. “We need more incentives for producing our own energy,” said Jay Tucker, a row crop farmer who is currently involved in setting up an ethanol/biodiesel plant near the Alabama/Tennessee state line. “For instance, we need further government assistance and supporting in setting up more plants over the country such as the Southeast where we are now, for production of energy such as ethanol and other renewable fuels. Also the necessity to further educate the American public on how environmental-friendly this process is. They need to know there's no waste left after this production.” Another speaker said, “Many of us believe that agriculture could contribute as much as 25 percent of our energy needs.”
"The interest in the next farm bill shown here today has exceeded my expectations," said Secretary Johanns after hosting the forum. "The thoughtful discourse on the direction of future farm policy is very encouraging and I look forward to the same caliber of discussion at future Farm Bill Forums as we continue our nationwide tour." Johanns also announced the dates for the next three Farm Bill Forums, “The next stop is in the Midwest, July 26, the North Dakota State Fair; August 3rd, the Minnesota Farm Fest, and August 4th the Wisconsin State Fair. Now we'll continue to roll these tours out and stay in touch with us by reviewing our website.”
The public is also welcome to submit their comments via the USDA Farm Bill Forums website – click on Farm Bill 2007 Official Comments
The National Grange also has a Farm Bill discussion board in the Policy Discussion Room on the Grange’s website – click on National Grange Online Policy Room
For more information:
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| The U.S. Supreme Court's Eminent Domain Decision Shocks Nation |
On June 23, the United States Supreme Court ruled that the city of New London, CT, had the authority to take small homes for a private development project even though homeowners did not want to sell. It allowed the city to use its powers of eminent domain to help private developers build apartments, a hotel and conference center by way of taking private property. “This decision is a threat to America’s traditional concept of private property rights,” said the National Grange President Bill Steel. “Traditionally, eminent domain powers have been used for public projects such as building public roads or parks, but this case does not meet the requirement that taking private property only can happen when it is for public use with just compensation which is indicated in the U.S. Constitution.”
The decision of the Court was on the grounds that economic development and the broader tax base it can bring would serve public purpose eventually, but critics assert that this is an imprecise interpretation of the U.S. Constitution’s language about the definition of public use. “The ruling makes all private properties vulnerable to takeover from private companies since any property can be upgraded in the name of economic development,” Steel added. “Public use should be distinguished from the exclusive benefit of private entities.”
The National Grange asks its members to contact their legislature and government officials to establish restrictions on the use of eminent domain to protect the private property rights in their jurisdictions.The Institute for Justice, which represented homeowners in the Connecticut case, says at least 25 states are considering changes to eminent domain laws.
The National Grange policy says: “The National Grange seeks legislation specifying when property is acquired by a federal agency through condemnation or negotiated price for a specific public purpose yet not used for that purpose, the original owner shall have first right of repurchase at the original price or at a lesser price if the value of the property has been decreased. We support legislation that eminent domain be used only for public purposes, such as rights of way for transportation and utilities.”
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| CAFTA-DR Wins House's Vote |
With strong support by most agricultural sectors and President Bush, the Central America – Dominican Republic Free Trade Agreement (CAFTA-DR) passed the House on Thursday, July 28, with only a two-vote margin. The President is expected to sign it into law very soon. The agreement will remove tariffs on products traded between the U.S. and Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic.
The food and agriculture tariffs the U.S. products must overcome in the CAFTA-DR countries exceed 11 percent on average, but can range as high as 150 percent or more. However, over 99 percent of U.S. agricultural imports from those countries already enter the U.S. duty-free. The result is that the U.S. has an agriculture trade deficit with these six nations – in 2004, U.S. imports from these countries exceeded its exports to the region by over three quarters of a billion dollars.
President Bush has called on Congress to pass CAFTA-DR to support American jobs and democracy and security in Central America and the Dominican Republic. “By eliminating barriers to exports from our country, CAFTA will help keep the U.S. economy growing, in other words, this is a jobs program,” Mr. Bush said in a speech to the Organization of American States on July 21. “ By opening up Central America and the Dominican Republic to U.S. trade and investment, CAFTA will help those countries develop a better life for their citizens…and by helping those economies improve, CAFTA will help the nations strengthen their democracies. And that's in our national security interest. That makes us all the more secure.”
The National Grange is a member of the Agriculture Coalition for CAFTA-DR and signed a number of coalition letters to urge Congress to vote yes on the trade pact. One of the letters said, “Plain and simple, a vote for CAFTA-DR is a vote to give American farmers and ranchers the same rights that Congress already has extended to our counterparts in the six nations. It is also a vote to keep U.S. food and agriculture exports competitive with products from other countries.”
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FTC Replies to the Grange's Criticism - "Splenda is Artificial" |
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National Grange COO Richard Weiss speaks in a press conference at the National Press Club held in Washington D.C. on February 14, 2005 to call on government to investigate Splenda's advertising campaigns
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Mary K. Engle, Associate Director of the Division of Advertising Practices in the U.S. Federal Trade Commission (FTC), sent a letter on June 24, to the National Grange to express appreciation for raising concerns with the advertising practices of “Splenda,” and to explain the FTC’s principle and process to take action to prevent deceptive advertising. Ms. Engel was responding to the Grange’s previous letter that requested the FTC open an investigation into Johnson & Johnson’s marketing and advertising practices for the artificial sweetener “Splenda” in order to determine if any of their advertising claims are deceptive or misleading to consumers. The National Grange suspected that the recent advertising campaign for “Splenda – Made from Sugar, So it Tastes Like Sugar.” may be deceptively leading consumers to believe that the artificial and chemically derived food product they are eating is a natural product.
“Thank you for your letter concerning the advertising of “Splenda” brand sweetener by McNeil Nutritionals LLC, a subsidiary of Johnson & Johnson,” the FTC’s letter began. “The Commission has been directed by Congress to act in the interest of all consumers to prevent deceptive or unfair acts or practices, pursuant to Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45. A representation, omission, or practice is deceptive if (1) it is likely to mislead consumers acting reasonably under the circumstances; and (2) it is material; that is, likely to affect consumers’ conduct or decisions with respect to the product at issue. An act of practice is unfair if it causes or is likely to cause injury to consumers that: (1) is substantial; (2) is not outweighed by countervailing benefits to consumers or to competition; and (3) is not reasonably avoidable by consumers themselves.” Engle also explained that the Commission may consider a number of factors, including the type of violation alleged; the nature and amount of consumer injury at issue and the number of consumers affected; and the likelihood of preventing future unlawful conduct and securing redress or other relief in determining whether to take enforcement or other action in any particular situation.
Although the FTC’s letter did not indicate exactly when and how the FTC is going to investigate the “Splenda” advertising, the Johnson and Johnson “Splenda” advertising campaign has been significantly curtailed. It is sure that the Grange’s voice on the issue has been heard and continued progress is expected. |
Frank Borderieux, Legislative Director of the FL State Grange, Dies at Age 63
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Frank Borderieux, Jr., the Florida State Grange Legislative Director, passed away on April 27, 2005, at his home in Palmetto, Florida. He was 63 years old. He was a retired electronic technician and a Master of the Manatee Grange. Borderieux is survived by: his wife, Barbara Borderieux; son, Franklin Borderieux, III; daughters, Barbara Brunner and Charlotte Betahny; brother, Jerome Borderieux; sisters Alleta Black et al; and five grandchildren.
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