National Grange 2007 Farm Bill
Summary Position Paper
Introduction
The National Grange, the nation’s oldest general farm and rural public interest organization, believes that the goal of the 2007 Farm Bill should be to build a solid foundation of prosperity for America’s family farmers and ranchers The Grange has provided a legislative voice for individuals, families, farmers and rural communities since 1867. Today, Grange members, affiliated with more than 2,800 local, county and state Grange chapters across the nation are actively involved in shaping the future of thier communities
Today, America’s family farmers and ranchers are a highly diverse and constantly evolving group of entrepreneurs who differ greatly in the size of their operations, the products they produce, their ownership structure, their needs for capitol and financing, their use of farm labor, geographic location, environmental challenges, marketing decisions and annual revenues derived from their farming operations. Fewer than 15% of farms today are commercial scale, farming-only businesses. But these farms produce 75% of all domestic agricultural production. The remaining 85% of farmers in the United States rely on non-farm income to remain active in the agriculture sector.
The National Grange believes that the 2007 Farm Bill should foster increased participation in the agricultural sector as well as the broadest practical distribution of agricultural production by actively encouraging more individuals and families to include agricultural production as part of their entrepreneurial business plans or personal lifestyle goals. A majority of the primary farm operators in our nation are over 55 years old and 35% of our farmers are over the age of 65. The 2007 Farm Bill must be further structured to assure that today’s family farmers can retire with dignity and that their productive resources will be transferred to a new generation of farmers and rural entrepreneurs. To meet these benchmarks, the 2007 Farm Bill should reward innovative practices, encourage sound conservation techniques, preserve prime agricultural land, assure compliance with our existing international trade agreements and facilitate the introduction of cost saving and environmentally beneficial new technologies for all segments of the agriculture sector, while protecting farmers from risks that are beyond their control or from the undue concentration of market power that restricts competition or entry into the agriculture sector.
The National Grange believes that final 2007 Farm Bill should meet the following benchmarks in order to meet the needs of America’s family farmers and ranchers:
Support farm programs that make available credit, risk management, income support, and environmental stewardship for family farmers and ranchers, regardless of the crop or livestock they produce.
Support innovative practices like part-time, new uses, low investment/expense, direct-to-consumer, and organic farming.
Protect farmers who rely on commodity markets or contract production from market manipulation.
Restrict agribusiness mergers that reduce competition or farm prices.
Support country of origin labeling and animal identification regulations that minimize costs for U.S. farmers.
Extend regional dairy programs to all U.S. dairy farmers and consumers and provide direct financial assistance, such as the MILC program, for moderate-sized dairy farms.
Support biotechnology property rights, publicly disclosed biotechnology product contract terms and use of “tech fees” to give farmers legal ownership to the seeds they save and the offspring animals they produce.
Require foreign farmers to pay the same biotechnology fees as U.S. farmers.
Support using sound science during the approval process for new biotechnology products to assure their safety.
Enact programs that facilitate the generational transfer of farm assets to a new generation of farmers either by supporting an extension of the existing $500,000 per couple federal capitol gains tax exclusion for private residences to agricultural land and to the sale of development or water rights on agricultural land or through new programs to provide equivalent direct payments;
Enact increased federal resources for federal programs for agricultural land use preservation and conservation practices on private farm, range and forest land.
Title I – Commodity Programs
The National Grange believes that the 2007 Farm Bill should establish direct producer payments for major commodities that are set in relationship to the national average cost of production and set at a level that will not encourage over production.
The National Grange supports a 2007 Farm Bill that will obtain an economic return for farmers on theirinvestment of capital, labor, and management that is equal to that of the other segments of the economy. Farm programs should be based on units of production, not acreage, and provide the individual farmer with maximum flexibility in their planting and production decisions. Production yields should be based on the proven yield of the land on that farm. Grange policy calls for rebalancing commodity support to better recognize the special needs of all commodities. For example, wheat farmers have different needs than corn farmers. The Farm Bill must be flexible enough to help all farmers regardless of what they produce.
The National Grange supports the reestablishment of voluntary production control authority at USDA in the 2007 Farm Bill as a way of balancing supply with demand in case projections incorporated into the Senate and House budget resolutions that presume high commodity process throughout the life of the 2007 Farm Bill prove to be inaccurate. Family farmers should not be made financially liable for inaccurate economic forecasting. Standby production control programs should be based on control of the number of bushels (amount of product) allowed to qualify for price supports and by requirements to set aside a specific percentage of a farm’s crop production. We support eliminating any offsetting compliance requirements between farms related to production control programs, but support maintaining cross compliance requirements for crops grown on the same farm.
The National Grange supports the establishment of a milk supply management program as part of the 2007 Farm Bill that recognizes regional differences based upon the cost and amount of production, availability of markets, percentage of production that is allocated to CCC stocks, and the percentage of Class I use. The National Grange establishing regional dairy market management programs or dairy compacts to stabilize milk prices and dairy producer income as part of the 2007 Farm Bill. We support the extension of the MILC program throughout the time frame of the 2007 Farm Bill with the intent of supporting dairy farmers during times of low prices without encouraging increased production.
The National Grange continues to seek an increase in exports of milk and milk products as part of the 2007 Farm Bill. We support authorized funding of the Dairy Export Incentive program (DEIP) to the full limit permitted by WTO agreements. We urge milk cooperatives and other associations to become actively involved in the development of export markets for dairy products. We support additional funding for USDA to provide technical assistance to private sector dairy export trading entities.
Title II - Conservation
The National Grange recognizes that the protection of the environment and the conservation of our natural resources are vital national priorities for our country. The National Grange supports reauthorization of the Conservation Title in the 2007 Farm Bill. This title should emphasize conservation programs that encourage farm practices in an environmentally sound manner. The 2007 Farm Bill should fund conservation programs focusing on technical assistance, research, education, loans and cost sharing programs. The bill should encourage conservation tillage practices and other types of sediment control. However, we cannot support the zealous pursuit of unrealistic and unscientific environmental and conservation goals can cause unnecessary hardships and economic damages for all landowners. We urge the USDA to concentrate on scientifically based research when promulgating regulations that implement the conservation portions of the 2007 Farm Bill.
The National Grange supports federal funding for soil conservation and technical assistance. Conservation program authorizations in the 2007 Farm Bill should be maintained at a level that will significantly help meet the conservation needs of America’s farmland. The 2007 Farm Bill should make clear that all conservation contracts follow land ownership with penalties assessed for noncompliance. The 2007 Farm Bill should include provisions to require all conservation cost-share funds authorized in the 2007 Farm Bill should be made available to farmers.
The National Grange strongly supports the continuation of the Conservation Reserve Program in the 2007 Farm Bill because of the positive benefits to wildlife and because it contributes to the successful recovery of certain federally listed endangered species. We support continuing full enrollment in the CRP at the levels established in the 2002 Farm Bill. We advocate no reduction for CRP payments for farmers who plant, harvest, and sell “cellulosic energy feed stock” on approved CRP acres for the life of the 2007 Farm Bill until markets for these feed stocks establish themselves and reasonable market prices can be determined for the value of the cellulosic energy crop harvested on CRP lands.
The National Grange strongly supports continuation and nationwide expansion of that the Environmental Quality Incentive Program (EQIP), and the Conservation Security Program (CSP) and the Wildlife Habitat Incentives Program (WHIP) in order to encourage conservation tillage practices and sediment control on working farmlands and to assist farmers to comply with the Clean Water Act, Clean Air Act or other environmental regulations. To reach their full potential, all of these programs should minimize requirements for non-income producing practices that necessitate major expenditures by farmers prior to qualifying for these funds.
The National Grange supports additional technical and direct financial assistance, including direct funding grants for construction of state –of- the- art manure holding pits and other waste management technologies such as waste to methane equipment to be included as part of the reauthorization and expansion of the EQIP, WHIP and the CSP.
The National Grange further urges additional funding and technical assistance to create a “one stop shopping” format for conservation assistance for working farm lands to allow nationwide, new enrollments in the EQIP, WHIP and CSP to be implemented within 12 months of final passage of the 2007 Farm Bill
The 2007 Farm Bill should provide additional resources for state governments and the federal government to strengthen, expand, and enforce farmland protection programs to save our farmland for food, fiber and energy production by designing tax laws and other state and local incentive programs that enable farm families to pass their land on to future generations. The National Grange supports a reduction in capital gains or equivalent direct financial assistance payment through the conservation title of the 2007 Farm Bill for retiring farmers who are willing to sell to beginning farmers.
The National Grange supports the incorporation of a statutory, uniform definitions of wetlands that can be applied across the nation for the purpose of determining compliance with USDA programs. We further support a regulation exempting wetlands parcels of less than one and one half acre from USDA regulations. Additionally, farmers should receive direct compensation through the Conservation title of the 2007 Farm Bill any for local property taxes values that must be paid even though the land has restricted agricultural use due to the presence of wetlands.
The National Grange supports the incorporation of a statutory, nationwide, uniform list of federally designated endangered species, whose existence or habitat requirements may restrict a farmer’s eligibility for participation in any farm programs that can not be amended or added to during the life of the 2007 Farm Bill except by passage of legislation. We further support a regulation exempting endangered species habitat parcels of less than one and one half acre from all restrictions related to implementation of the Endangered Species Act under the provisions of the 2007 Farm Bill. Additionally, farmers should receive direct compensation through the Conservation title of the 2007 Farm Bill any for local property taxes values that must be paid even though the land has restricted agricultural use due to the presence of an endangered species.
Title III - Trade
The National Grange supports legislation, trade agreements and other measures that will enhance world trade between nations on a mutually beneficial basis. In the event that general “fast track” negociating authority is not granted to the President, We support including targeted “fast track” trade negociation authority to the President with sufficient legal authority to negotiate effectively for a reduction in trade barriers, both tariff and non-tariff that affect our nation’s agricultural exports as part of the 2007 Farm Bill.
The National Grange continues to favor the principles set forth in the World Trade Organization (WTO) and we urge that all provisions of the 2007 Farm Bill be compliant with our obligations under the WTO.
We support full authorization for a revolving government export credit fund program including blended credit and market development programs conducted through the USDA and AID to facilitate receiving and distributing U.S. agricultural products in the 2007 Farm Bill. We further support reauthorization of the Export Enhancement Program as part of the 2007 Farm Bill in order to meet the price competition in world markets.
Title IV – Nutrition Programs
The National Grange urges increased funding for school breakfast and lunch programs. We support guidelines that recommend two to three servings of dairy products daily in the school nutrition program.
The National Grange supports the adoption of a provision specifically directing USDA to keep dairy products in the Food Pyramid as part of the 2007 Farm Bill.
The National Grange supports aggressive expansion of our nation’s nutrition programs as a means of supporting local agriculture production and direct to consumer agriculture marketing. We support continued funding for the Farmers’ Market Nutrition program. We support expanding the senior farmers market programs and the WIC direct voucher programs. We also support increased authority and direction for school lunch programs to purchase locally produced agriculture products.
Title V - Credit
One of the functions of the Farm Service Agency (FSA) should be a lender of last resort for farmers who are unable to acquire needed capital from conventional lending sources. We support provisions to guard against granting undue advantage to large operations at the expense of family-sized farming units in the allocation of FSA lending resources be included in the 2007 Farm Bill.
The National Grange supports Farm Credit System programs that will service the needs of farmers who are actively and directly engaged in the production of agricultural commodities. The National Grange supports expanding the lending authority of the Farm Credit System to address the total needs of rural communities, including rural economic development as part of the 2007 Farm Bill.
The National Grange supports extending the lending authority for Farm Credit System institutions to make loans for single family homes from communities of up to 2,500 persons to communities of up to 5,000 persons
Title VI – Rural Development
The 2007 Farm Bill should contain rural development provisions that recognize family farms as a source of sustainable community economic development and that support the community based infrastructure necessary to keep family farms and ranches profitable and viable.. We urge the economic development title of the 2007 Farm Bill to incorporate efficient economic development policies that will treat the agriculture industry on equal terms with other businesses and industries. The 2007 Farm Bill should encourage efficient communications, infrastructure, and health care for rural communities.
At a minimum the provisions of the proposed Private Property Rights Protection Act which would deny states and local communities access to economic development funding if they use eminent domain authority for private economic development, should be incorporated into the Rural Development Title of the 2007 Farm Bill. Additional concrete steps should also be taken in the 2007 Farm Bill to divest authority for agricultural and rural development policy decisions away from the federal government and down to the regional, state and local government level where local citizens, both farm and non-farm alike, feel a greater sense of efficacy and commitment to an open and fair decision making process that will be appropriately tailored to the needs of their communities.
Title VII – Research, Extension and Related Programs
The National Grange strongly supports the cooperative Extension Service (ES) as well as the land grant universities in their effort to maintain a quality extension program in their respective states. We urge full funding for the federal share of Extension service programs as part of the 2007 Farm Bill.
The National Grange supports the inclusion of provisions in the 2007 Farm Bill that will directly assist federal, state and local governments to protect agriculture against bio-terrorism.
The National Grange believes that USDA can perform a better job assisting family farmers and ranchers to communicate the importance of family based agricultural enterprises to the general public. The National Grange supports the creation of a comprehensive public relations with in USDA as part of the 2007 Farm Bill to support the efforts of agricultural producer organizations to combat false, unproven, and misleading statements about the production and safety of agricultural commodities in order to present a true picture of environmentally safe farm and ranch best management practices.
The National Grange supports the adoption of a “Sense of the Congress” resolution as part of the 2007 Farm Bill to demonstrate federal support for the use of biotechnology in agriculture to recognize that genetic engineering of plants and animals has already had a positive impact in our nation’s food supply. We further support increased funding for continued research on biotechnology and genetic engineering, including further scientific research into non-human cloning as part of the 2007 Farm Bill.
The National Grange proposes that the 2007 Farm Bill increase federal research and development funding for alternative agricultural based fuels, including incentives to companies who retrofit equipment accommodating blended fuel production.
The National Grange continues to strongly support adequate funding for basic and applied agricultural research from federal, state and private sources as part of the 2007 Farm Bill. We specifically recommend sufficient authorizations for full funding of the federal share of agricultural research, especially in cases of emergencies when increased research is required.
The National Grange strongly supports additional research authority to provide the technology that is pertinent to small-scale agriculture, including more emphasis on research in the areas of marketing, insect control, disease control, energy conservation, improved product quality, and soil and water management as part of the 2007 Farm Bill.
The National Grange will support research and education programs that will promote the goals of sustainable agriculture research, of precision agriculture practices and organic farming practices. The goals of research in these areas should be the development of the most efficient and effective Best Management Practices (BMP’s) to reduce soil loss due to erosion, make animal nutrition more efficient, reduce the amount of waste, reduce the nutrient levels in waste, and to identify methodologies that will result in higher profitability from production through market development.
Title VIII – Forestry and Rangeland
The National Grange believes that voluntary use of good conservation practices and sustained yield management practices on private forestlands and rangelandsis vital. In return for public benefits that result from improved forest and range management on individually owned lands, a portion of the expenses that are involved in management of private forest and rangelands should be appropriated through the 2007 Farm Bill. Any forest or rangeland management assistance programs should recognize the multiple use aspects of private forest lands, including timber production, watershed protection, wildlife habitat, protection of endangered species recreation, and scenic values.
The National Grange supports expansion of the Forest Incentive Program should be expanded. Direct financial incentives should be given to landowners who voluntarily establish forests or pastures on marginal farmland.
Title IX – Energy
The National Grange encourages expanded energy conservation in agriculture by tax credit incentives or other direct financial payments authorized under the 2007 Farm Bill.
The National Grange supports additional funding to increase our domestic energy production using agricultural crops such as ethanol produced from corn and biodiesel from oil seed crops and animal waste to methane development.
The National Grange proposes that the 2007 Farm Bill increase federal research and development funding for alternative agricultural based fuels, including incentives to farmers who retrofit equipment accommodating blended fuel production.
National Grange recommends that the 2007 Farm Bill incorporate tax incentives or other direct financial incentives to manufacturers who expand and develop bio-refineries using farm commodities.
The National Grange recommends adoption of a binding resolution that calls on both Houses of Congress to consider new policies and programs to derive 25% of our nation’s energy needs from domestic, renewable resources by the year 2025 (25 x25)
Title X – Miscellaneous
The National Grange strongly supports the continuation of the multi peril Federal Crop Insurance program (FCI) that provides coverage on all program, non-program and specialty crops on a nationwide basis as part of the 2007 Farm Bill. We support changes to the FCI program that would include multi-peril insurance for all commercially grown crops in the United States. We recommend annual updates in FCI coverage to reflect production costs.
The National Grange supports expansion of the Country of Origin Labeling (COOL) law as part of the 2007 Farm Bill. We support additional provisions in the 2007 Farm Bill requiring all imported agricultural products, including value-added commodities, to meet the same strict inspection standards for unapproved pesticide residues, grading, and labeling as domestically-produced products.
The National Grange strongly opposes the inclusion of an “Animal Welfare” title to the 2007 Farm Bill. Instead we support inclusion of additional research and technical assistance programs to assist livestock producers to vigorously address animal welfare issues as a function of current and proven profitable and humane livestock industry management practices.
The National Grange supports allocating additional resources in the 2007 Farm Bill for the National animal Identification System (NAIS), as a voluntary national identification program for livestock and poultry. The plan should include stringent farmer privacy provisions and should be the framework that USDA uses to trace animals in the case of a health emergency.
The National Grange strongly supports the ability of all individual participants in the agriculture industry to advertise and label their products as they see fit so long as those advertisements and claims are accurate and based on fact in order to provide information that may add perceived value to those products in the minds or perceptions of consumers. We oppose further legislative measures to regulate the use of terms with inherently subjective meaning such as “natural”, “wholesome”, “XXX free” etc. that depict and provide plausibly accurate information to consumers but that competitors may feel are unfair.
The National Grange strongly supports adoption of legislative limitations on producer/grower contracts between farmers and companies that buy their products to include mandatory arbitration options within those contracts as part of the 2007 Farm Bill. The National Grange supports the rights of all farmers to eventually have their production contract grievances heard and adjudicated by a court of law.
The National Grange opposes any ban on the use of antibiotics in livestock and poultry feed in the 2007 farm Bill unless the Food and Drug Administration or other agencies have scientifically established that the use of these antibiotics are detrimental to human health.
The National Grange seeks the creation of a federal indemnification standby program for all livestock and poultry diseases, incidents of contamination or bio-terrorism events that require condemnation and slaughter of farm animals as part of the 2007 Farm Bill. We further support additional federal indemnity programs to indemnify farmers against financial loss, through no fault of their own, in cases such as disease outbreak, radioactive fallout, chemical contamination, and bio-terrorism when the animals or products are not destroyed or removed from the market but the market value of their animals has been reduced because of a loss of consumer confidence.
The National Grange supports a provision in the 2007 Farm Bill developing policy and regulations on agricultural pesticide use in conjunction with USEPA. We support increased funding for research and education to be conducted by the USDA and EPA to improve integrated pest management as part of the 2007 Farm Bill.
The National Grange supports a USDA Office of Special Counsel for Competition that should have separate authority to enforce all agriculturally oriented laws outside of the Justice Department. The model for this independent enforcement authority is the Commodity Futures Trading Commission. The House and Senate Agriculture Committees would oversee the independent agency. |
