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FEBRUARY 2003

National Grange Responds to State of the Union Address
The National Grange sent a letter to President George W. Bush commending him for his recent State of the Union Address. This provided the National Grange an opportunity to express their support to the President while making suggestions regarding the ways in which the objectives outlined in the State of the Union Address can be expanded and applied to meet the needs of rural Americans.

One of the concerns shared by Grange members and discussed by the President was the issue of tax reform. To ensure the viability of American agriculture, impediments to leaving farmland and property their successors, such as the death and estate taxes, must be eliminated. The Grange agrees wholeheartedly with President Bush when he stated [that] "Federal spending should not rise any faster than the paychecks of American families."

The President and the Grange share a lot of common goals regarding those issues impacting the quality of life in rural America. Health care was a major concern in his address and has been a priority issue for the Grange, especially in regard to accessibility and affordability. The Grange was quite pleased to hear that maintaining the effectiveness of Medicare will be a priority. Rural areas have a large concentration of senior citizens that rely on Medicare but fewer medical facilities. With the already limited number of medical facilities and health care providers available to rural Americans, the few that do exist are refusing to accept Medicare patients at an increasing rate. This is why Medicare must remain intact, not only to provide the necessary services but allow rural seniors the flexibility to choose their own doctors and determine the best course of treatment.

Preservation of the environment and the development of cleaner energy sources is something that all of America should strive for. The President even provided such an example, that being the development of cars fueled by hydrogen. Although this is commendable and points us in the right direction, we must cultivate the vast sources of energy already existing within our nation's farmlands and agricultural areas in order to fully realize the goal of achieving energy independence. Potential energy sources include ethanol fuel derived from corn and wind power that can be generated on rural farmland without taking up a significant amount of space, not to mention the plentiful supply of petroleum already existing within the Arctic National Wildlife Refuge.

Grange members contribute more than 1.4 million hours every year to community service projects. When President Bush called upon American citizens to "encourage acts of compassion that can transform America", the Grange answers that call as it has done since its inception over 135 years ago. Projects and programs have been devoted to causes such as drug abuse awareness, deaf education and easing the plight of foster children. The Grange urged the President to expand the mission of the USA Freedom Corp to provide mentoring and support services to foster children and the families that dedicate their time and open their hearts and homes to these children.

The Grange also commended the President for establishing the U.S. Department of Homeland Security. Homeland security is as much a concern, in some cases greater, to rural areas as it is to suburban and urban areas. This is because farmers and rural communities are at a greater risk from biological attacks against people, crops and livestock and are at greater risk to being exposed to virus' and illnesses that enter our borders through contaminated food supplies. Project Biosheild will be instrumental in protecting Americans against the spreading of diseases as weapons; however, emergency response systems must also address biological attacks through agricultural imports.

The President's handling of the current national security issues are also appreciated. The Grange expressed much respect for patience the President has showed towards the United Nations (UN) in allowing the Iraqi government time to comply with UN resolutions. Although the U.S. should never rush into war without careful consideration, we support the President when he said that "whatever action is required, whenever action is necessary, I will defend the freedom and security of the American people."

In conclusion, the Grange also submitted a summary of the "Blueprint for Rural America 2003" in order to share with the President their objectives for the coming year. Issues addressed in the State of the Union Address touched upon many issues relevant to the Grange. It is through sharing the Grange's objectives with the President that the needs of both rural and non-rural communities will be met, ensuring life, liberty and happiness for all Americans.

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National Grange Addresses FCC Regarding TV Access
In regards to the Federal Communications Commission's (FCC) review of broadcast ownership rules, the National Grange urged the FCC to modify the existing television ownership cap that discriminates against free over the air broadcast TV. Existing rules limit the number of television stations that the three major broadcast networks may own. Other major owners of local television stations, such as major newspaper chains, have fewer restrictions of the number of stations they may own. The result is that the major broadcast TV networks are at a substantial disadvantage compared to other local TV station owners.

Of the existing 20% of the nation's households that rely exclusively on free broadcast TV services, the majority live in rural areas. Although there has been an increase in the availability of satellite TV services in rural areas, the costs to install and maintain these systems remain prohibitive. In addition to monthly service fees, geographical impediments, such as those caused by mountains, trees and other obstructions have made utilizing this technology difficult for a large number of rural residents.

Because of the proliferation of pay TV services and lack of restrictions placed upon them, they are monopolizing existing local outlets and obtaining a disproportionate share of quality news, entertainment, public programming and emergency services. The current national television ownership cap discriminates against free over the air broadcasting because it measures potential viewing audience share while the national ownership cap for cable measures actual audience share. With minimal to no access to satellite and cable TV services, rural Americans are being left with substandard programming choices.

To ensure that rural communities have access to relevant information, these caps must be decreased. It has been demonstrated that network owned and operated stations actually air more local news than other stations; access to such information is vital to rural communities that lack access to the new technology. By decreasing these caps and making it easier for broadcast networks to attain more local stations, free over the air television services will flourish. The result of loosening restrictions will enable all Americans to have access to relevant programming and services, therefore creating a fully informed society.

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Alliance for Public Technology Supports UNE Reform
The Alliance for Public Technology (APT) recently urged the Federal Communications Commission (FCC) to reform the current unbundled network element (UNE) to foster greater competition and remove barriers to the deployment of telecommunications services. The effect of reforming current policies will create an environment that will benefit all consumers by offering real competitive choices and access to life enhancing new communications technologies.

The Alliance for Public Technology (APT) is a nonprofit organization consisting of public interest groups and individuals. APT's members, including the National Grange, continue to work together to foster broad access to affordable, usable information and communications services and technology for the purpose of bringing better and more affordable health care to all citizens, expanding educational opportunities for lifelong learning, enabling people with disabilities to function in ways they otherwise could not, creating opportunities for jobs and economic advancement, making government more responsive to all citizens and simplifying access to communications technology.

Unbundling has had a negative impact on the development of telecommunications technologies in a number of ways. It discourages infrastructure development by allowing competitors to lease facilities at below-cost rates, therefore removing any incentives for the incumbent to invest in new technologies allowing competitors to build their own networks. UNE has also contributed to tremendous job loss within the telecommunications industry by reducing over 32,000 jobs in 2002. If the goal of universal broadband deployment is to be attained, there must be incentive on the part of telecommunications providers to invest in rural communities.

To facilitate competition and deployment, a new regulatory structure must be in place. This can be achieved by excluding broadband networks and other new technological developments from unbundling obligations. In addition, certainty and stability in regulations across jurisdictions must be maintained with states continuing to possess authority over pricing and performance monitoring. Long term growth and development of telecommunications infrastructure is critical to our nation's future. To ensure a level playing field and encourage technical advances within telecommunications technology, current regulations must be lifted.

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Ethanol Legislation Introduced to Congress
On January 29th, both Congress and the Senate introduced legislation (S. 240 and H.R. 465) that would update the small ethanol producer tax credit program. The program provides a 10-cent per gallon tax credit for the first 15 million gallons of production by a small plant. According to Senator Peter Fitzgerald, who initially introduced this bill in 2002, "farm cooperatives can be an efficient way for farmers to trim costs and maximize income" and that "the tax come shouldn't penalize farmers for pooling their resources in cooperatives." In the House, newly elected Representative Steve King made this bill his very first, saying that "it is my hope that as the 108th Congress works on either an economic stimulus bill or an energy bill that this legislation will be a part of the package."

In addition to removing barriers experienced by farmer-owned cooperative plants, both bills would also update the definition of a small ethanol producer from a maximum of 30 million gallons per year production to 60 million gallons. This new legislation plays an important role in President Bush's 2004 budget plan. By extending the income tax credit and excise tax exemption for ethanol producers, this will allow the United States to be more self sufficient in meeting their energy needs, protect our environment and enhance the prosperity of ethanol producers.

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In Memoriam
It is with great sadness that we inform you of the passing of former CA Grange Legislative Director, George Dupray. A longtime resident of Fair Oaks and member of Fair Oaks Grange, he was described as "a rock in the Fair Oaks community and loved by all." He was a past Master of both Fair Oaks Subordinate Grange and Sacramento Pomona Grange. He served as Legislative Director of the California State Grange for ten years, and was elected to the Executive Committee of the California State Grange in 2001. He took a leave of absence from the Committee to serve as interim Executive Director of the California State Grange from January 2001 to June 2002.

George was the beloved husband of Marilyn, father of three children, the grandfather of five and great-grandfather of eight. The George Dupray Memorial Scholarship has been established by the California Grange Foundation to fund students who are studying in the Political Science field. Donations may be made to the California Grange Foundation, 2101 Stockton Blvd., Sacramento, CA 95817.

 

Don't Forget to Register.
Don't forget to register for the National Grange's 2003 Legislative Fly-In. Register now. We are also pleased to announce the introduction of Potomac Grange #1's introduction of it's Legislative Fly-In Scholarship Program. The Potomac Grange Fly-In Scholarship will provide a reimbursable grant for up to four nights at the Club Quarters Hotel in Washington, DC. Although preference will be given to those new to the Legislative Fly-In, married couples, those under the age of 35 and/or those who have demonstrated active participation in their local Grange's legislative program, all Grange members may apply. For more information or to request an application, please contact Joanne Manelli at (202) 628-3507 ext. 105.

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View from the Hill Editors: Leroy Watson & Chilsook Hwang |

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