The National Grange of the Order of Patrons of Husbandry
 


Farm Bill Analysis and National Grange Policy

07/02/07

 

As Congress continues to work on the 2007 Farm Bill it is important to voice National Grange concerns. Now is the time to contact your elected officials and express your thoughts as Congress writes the Bill.

BACKGROUND AND CURRENT GRANGE POLICY

The U. S. House of Representatives and U. S. Senate are continuing to craft the 2007 Farm Bill. The House has already drafted some of the sections, while others will be completed soon. Below is a description of those titles already drafted compared to National Grange policy.

Title I: Commodity Programs

Updating the base acres or payment yields are not part of the current 2007 Farm Bill draft. However, many of the target prices have been increased. For example the target price for wheat is up $0.23, which is supported by National Grange policy. Additionally, the draft requires producers receiving direct and counter-cyclical payments to use the land for an agricultural or conserving use. Also, farmers will need to comply with planting flexibility requirements, comply with certain conservation requirements, control noxious weeds, and otherwise maintain the land in accordance with sound agricultural practices.

A new section of the draft specifies that USDA use price quotes from the Far East market (rather than from Northern Europe, as in current law) to determine the prevailing world market price for upland cotton. “Far East Price” means the three lowest price quotes on the sale of upland cotton in Far East markets based on delivered cost and freight.

Payment limits may be implemented in the 2007 Farm Bill. The proposal prohibits individuals and entities from receiving direct payments of more than $40,000 and counter-cyclical payments of more than $65,000. Current limits of $75,000 limits on marketing loan benefits will be terminated after the 2007 crop year. All other provisions remain the same as under 2002 Farm Bill. The draft also requires farms with 10 total base acres or less to be ineligible for the direct and counter-cyclical payments.

Crop Insurance

The draft 2007 Farm Bill continues the crop insurance program as is suggested by National Grange policy. In fact, the bill requires the Secretary to include a special emphasis on risk management strategies and education and outreach to beginning farmers and ranchers, immigrant farmers and ranchers attempting to become established producers in the United States. Grange policy calls for the availability of crop insurance for all commodities.

Nutrition

The new Farm Bill draft includes increased appropriations for school lunch and senior nutrition programs, which National Grange policy supports. The bill also includes expanded child and senior fruit and vegetable programs. The legislation also creates a program encouraging careers in humanitarian and public service.

Forestry

The Farm Bill draft creates 3 priorities in forestry: conserving and managing working forest landscapes; protecting forests from threats to forest health; and enhancing public benefits of forests. Grange policy supports these priorities. The National Grange believes that voluntary use of good conservation practices and sustained yield management practices on private forestlands and rangelands is 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 rangelands and forestlands, including timber production, watershed protection, wildlife habitat, and protection of endangered species, recreation, and scenic values.

Rural Development

Rural development is a major portion of the 2007 Farm Bill. Significant financial increases have been suggested for a variety of grants including infrastructure incentives, rural health care incentives, rural entrepreneurship, and broadband telecommunication services. These financial grant and loan opportunities are designed to increase rural development and assist local communities to modernize their infrastructure. National Grange has advocated a 2007 Farm Bill that encourages efficient communications, infrastructure, and health care for rural communities. We have also supported increased availability of high speed Internet in Rural America, including language in the 2007 Farm Bill that will reinforce the existing priority for broadband loans and loan guarantees to under-served rural communities to become an unequivocal mandate to serve small rural communities.

Horticulture and Organic Agriculture

The major change in this section of the Farm Bill establishes a new program for pest and disease threats for specialty crops. Included in this new program is increased funding for early pest detection and surveillance activities. The new bill also authorizes the implementation of quality-related food safety programs under specialty crop marketing orders. Another major change is the repeal of the transfer of APHIS import and inspection functions to the Department of Homeland Security made under the Department of Homeland Security Act of 2002 and requires the return of those functions to USDA.

Livestock, Dairy, and Poultry

This section extends the Dairy Export Incentive Program until December 31, 2012. The dairy export incentive program encourages trade and expands markets for domestic producers. It also authorizes the Secretary of Agriculture to issue rules ensuring the maximum volume of dairy product exports allowable within the United States’ obligations under the Uruguay Round Agreements.

Of particular interest to Grange members is a provision in the bill allowing the Secretary to use already existing certification systems as a model for a system to certify the country-of-origin of a covered commodity. Grange policy advocates the expansion of the Country of Origin Labeling (COOL) law as part of the 2007 Farm Bill.

Conservation

The current Farm Bill draft extends the Conservation Reserve Program (CRP) and the Wetland Reserve Program (WRP) until 2012. The Conservation Security Program (CSP) will no longer continue, but a new CSP will go into effect 2012. The new CSP program collapses the tier-based payment structure and replaces it with a stewardship base payment structure. The bill also increases funding for the Grassland Reserve Program. EQIP will be reauthorized and the eligible activities in the program will be expanded to include technical services, energy efficient improvements, and the implementation of renewable energy systems. Finally the Farm and Ranchland Protection Program will be reauthorized, but will now include forestland incidental to farmland.

National Grange policy endorses the continuation of conservation programs emphasizing conservation programs that encourage farm practices in an environmentally sound manner. We support a Farm Bill that funds conservation programs focusing on technical assistance, research, education, loans and cost sharing programs.

Credit

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 also 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 current Farm Bill draft does increase the loan limits from $200,000 to $300,000. It also authorizes Farm Credit banks to provide credit and financial services to agribusinesses. The bill creates a conservation loan guarantee program. This program would allow the Secretary to provide loans and interest subsidies, or both, to farmers, ranchers, and other entities primarily and directly engaged in agricultural production to carry out conservation projects.

Energy

National Grange policy calls for expanded agricultural opportunities from domestic energy production. The Farm Bill expands a number of programs geared toward encouraging domestic energy production based on agricultural products. It promotes research, extension, and education related to bio-based energy and product technologies. The bill d oubles current funding to $2 million annually and expands the purposes for which the funding may be used to include support for ongoing operations of the bio-based products. The bill increases funding for renewable energy systems and energy efficiency improvements from the current $3 million to $50 million in 2008, ramping up to $150 million in 2012. Finally, the bill creates an Energy Council in the Office of the Secretary at USDA to promote the Department’s role in renewable energy production.

Research

The Farm Bill draft adds additional purposes of agricultural research and extension to include integrating and organizing agricultural research, extension, education and related programs to respond to 21 st century challenges, and to minimize duplication and maximize coordination of the program at all levels. There will be $50,000,000 appropriated for each of fiscal years 2008 through 2012 research and award grants on a competitive basis. The bill establishes six research institutes, collectively known as the “Agricultural Research Institute,” within the office of the Under Secretary of Agriculture for Research, Education, and Economics. The Agricultural Research Institute will coordinate the programs and activities of the research agencies. Research initiatives include bio-energy, genetics, bio-technology, precision agriculture, disease prevention and control, and a host of other agricultural programs. Grange policy calls for an increase in agricultural research and extension in these important agricultural areas.

The National Grange believes that a number of areas need to be addressed in the Farm Bill. 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 economic support payment relationship between traditional commodity programs must be rebalanced to accommodate for market forces driving historic shifts in planting decisions across the nation.

The current Farm Bill draft does not address certain dairy issues. The National Grange supports 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 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 current draft legislation does not address this capital gains issue.

Another issue not currently addressed is endangered species. The National Grange endorses exempting endangered species habitat parcels of less than one and one half acre from all restrictions related to implementation of the Endangered Species Act.

The National Grange supports the adoption of an amendment to the 2007 Farm Bill to allow interstate sales of state-inspected meat and poultry products. Finally, the Grange seeks language creating 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.

Action Needed

Please e-mail your U. S. Representative and U. S. Senators thanking them for incorporating many National Grange policies in the 2007 Farm Bill draft, but emphasizing the need to further consider those points not yet addressed. Please feel free to cut and past the following sample letter. If you do not know your Senators’ e-mail, please click here. If you do not know your Representative’s e-mail please click here.

Sample Letter


Dear Senator/Representative ____________,

I would like to take this opportunity to thank you for the effort Congress has made in drafting the 2007 Farm Bill. While the legislation is not yet completed, it is clear that many National Grange policies will be incorporated into the bill. Congress has been sensitive to agricultural needs in many areas including increasing commodity target prices, expanded agricultural research, expanding energy programs based on bio-fuels, and the continuation of numerous conservation programs.

I believe, however, that several Farm Bill issues still need to be addressed. 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 economic support payment relationship between traditional commodity programs must be rebalanced to accommodate for market forces driving historic shifts in planting decisions across the nation.

The current Farm Bill draft does not address certain dairy issues. The National Grange supports 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 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 current draft legislation does not address this capital gains issue.

Another issue not currently addressed is endangered species. The National Grange endorses exempting endangered species habitat parcels of less than one and one half acre from all restrictions related to implementation of the Endangered Species Act.

The National Grange supports the adoption of an amendment to the 2007 Farm Bill to allow interstate sales of state-inspected meat and poultry products. Finally, the Grange seeks language creating 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.

Again, thank you for the efforts Congress has made in crafting the 2007 Farm Bill. Please consider the additional points above as you finalize the draft legislation. Thank you.

Sincerely,

 

(Signature)

(Name)_________________

(Grange name and number) ________________

If you have any questions or comments regarding this Action Alert, please contact Legislative Program Assistant Samantha Johnson by e-mail: sjohnson@nationalgrange.org or by phone 1-888-4GRANGE, ext. 109.

Thank you for your grassroots participation in the National Grange Legislative Program.


NATIONAL GRANGE OF THE PATRONS OF HUSBANDRY
1616 H Street NW • Washington, DC 20006
(888) 4-GRANGE • (202) 628-3507 • Fax: (202) 347-1091
Contact National Grange Contact Webmaster