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February 2010

National Grange Urges FCC to Reject New Network Policies
National Grange Supports Legislation to Open Trader and Travel in Cuba
National Grange Urges USDA Secretary to Increase U.S. Farm Exports
National Grange Hires Communications Director
OCRE Works to Eliminate Inequities Facing Rural Schools
Legislative Round-Up

National Grange Urges FCC to Reject New Network Policies

Leroy Watson, National Grange Legislative Director, recently wrote to Federal Communications Commission chairman, Julius Genachowski, and other FCC commissioners urging them to quickly reject proposals to impose new, prescriptive network neutrality policies on internet service providers. In the letter, Watson stated the proposed policies are not needed and could inhibit the development of broadband service in rural areas. Instead, Watson urged the Commission to complete a National Broadband Plan that will assure all Americans access to high-speed internet services.

The National Grange believes that competitive forces should be a driving force in addressing the regulatory oversight challenges of providing high-speed internet access to Americans in rural communities. Rural, farming, and tribal communities across the United States offer too large and too important a market for any competitive provider of internet-based commercial services to ignore or serve in a discriminatory manner. These communities are equally critical areas for internet-based delivery of services by local, state, and federal government agencies.

The National Grange would also support creation of a mechanism to advise the Commission on technical and factual issues to determine whether there has been measurable harm to consumers arising from particular network management decisions. The committee would assist the Commission in crafting appropriate policy responses to individually presented facts and circumstances.

National Grange Supports Legislation to Open Trader and Travel in Cuba

The National Grange, along with over 30 other associations, urged congressional members to co-sponsor the Travel Restriction Reform and Export Enhancement Act. Sponsored by House Agriculture Committee Chairman, Collin Peterson, and Representative, Jerry Moran, the legislation will ease restrictions on U.S. agricultural sales to Cuba and allow U.S. citizens to travel to Cuba. While the bill has not yet been formally introduced, co-sponsorship is important in helping America’s farmers increase their export sales, especially in these difficult economic times.

Since passage of the 2000 Trade Sanctions and Reform Act, U.S. farmers have seen $4 billion in sales go into the Cuban market and Cubans have had an excellent payment record. Unfortunately, due to continued arbitrary restrictions on U.S. agricultural sales, American producers have failed to realize the full market potential of this country. In fact, Cubans have begun to shift their purchases of several commodities to other suppliers, such as Vietnam. The Peterson/Moran legislation will protect U.S. agriculture’s reputation as a reliable supplier, and provide the opportunity to maintain and grow U.S. agricultural sales to Cuba.

The legislation contains a provision requiring agricultural exports to Cuba to meet the same payment requirements as exports to other countries by requiring payment when the title of the shipment changes hands. Additionally, the legislation contains a provision to eliminate the expensive and discriminatory requirement that payments to U.S. agricultural sellers must pass through banks in third countries. Currently, Cuba must wire payments for U.S. goods through a third country bank in order for U.S. banks to receive the cash for the U.S. product to be delivered. This process comes with a high fee increasing the cost of purchasing agricultural goods from the United States. While U.S. telecommunications companies are authorized to make payments directly to their Cuban counterparts, U.S. agriculture is singled out by law for the expensive, unnecessary, and discriminatory requirement that payments must flow through foreign banks.

The legislation also would lift all restrictions on U.S. citizens traveling to Cuba. Lifting the travel restrictions will have a direct impact on U.S. agricultural sales. Increased travel to Cuba will boost food demand in the country and, coupled with other reforms, U.S. industry would expect to meet the increased food needs. Increased travel will also bring much needed funds to purchase U.S. commodities.

National Grange Urges USDA Secretary to Increase U.S. Farm Exports

The National Grange and other organizations wrote to USDA Secretary, Tom Vilsack, asking for additional GSM-102 export credit guarantee allocations to be made available by USDA’s Foreign Agricultural Service. National Grange believes the immediate release of additional guarantees under the GSM-102 program will result in increased U.S. farm exports, boost the farm economy and save and create jobs in rural America.

With credit markets still fragile, many would-be importers of U.S. farm products are awaiting the release of additional GSM guarantees before entering into transactions with U.S. exporters. Nearly five months into the program’s fiscal year, USDA has released only $1.2 billion of the $5.5 billion in GSM-102 export credit guarantees authorized by Congress for fiscal year 2010.

President Obama, in his recent State of the Union address, called for efforts to “export more of our goods.” The National Grange strongly supports the administration’s initiative in this regard. Releasing additional GSM export credit guarantees – including the reallocation for general use of the $150 million of guarantees that are limited to “non-bulk/restricted” products and that remain unused from the initial fiscal year 2010 program allocations announced in November, 2009 – is a critical step that will allow U.S. agriculture to increase U.S. farm exports.

National Grange Hires Communications Director

The National Grange welcomes Laura H. Auerbach as the new National Grange Communications Director. Ms. Auerbach specializes in communications, marketing, strategic planning, process development, event planning, and graphic design.

Prior to National Grange employment, Ms. Auerbach was a marketing and communication freelance consultant for numerous organizations coordinating communications efforts, developed marketing campaigns, developing promotional campaigns and public relations activities, and managing web development. She has a B.A. in Professional Communication from Rhode Island College and is working on her graduate degree.

OCRE Works to Eliminate Inequities Facing Rural Schools

The Organizations Concerned about Rural Education, OCRE, is a coalition made up of many different types of organizations that include educational, farming, rural, technology, and utility organizations. They are united under the common concern for the economic and educational welfare of rural America n. The group is concentrating on several issues, some of which include: revising the funding formula under Title 1 of the Elementary and Secondary School Act (No Child Left Behind) to help eliminate the inequalities of the formula for small schools, rural school building infrastructure, and attracting and maintaining high quality teachers in rural schools.

Under Title 1, rural schools are at a greater disadvantage compared to the urban schools. If rural schools are not treated equally, then they will continually be behind and may never catch up to the urban schools. Rural school building infrastructure is another issue that rural schools shadow in comparison to urban schools. The distribution of funds for the construction and renovation of schools is not distributed equally.

Developing and maintaining high quality teachers is also a major problem for rural America. Many rural schools don’t have the resources to keep high quality teachers, where as the urban schools with a larger student base do. If quality teachers go to the urban schools, it just widens the gap between the rural and urban education barriers. OCRE members work to end these barriers and hope to make the system fair, not only to urban schools, but to the rural schools as well. For more information, check out OCRE’s website at www.ruralschools.org/coalition/.

Legislative Round-Up

Texas State Grange

Texas State Grange Leads the Way in Rational Eminent Domain Reform

Texas State Grange supported Texas Proposition 11, which appeared on the November 3, 2009 ballot, as a state constitutional amendment and was overwhelmingly adopted by voters. Proposition 11 amended the state constitution to limit the taking of private property by eminent domain. It was a reaction to the decision of the U.S. Supreme Court in the 2005 case Kelo v. City of New London, involving the use of eminent domain to transfer land from one private owner to another for the purpose of economic development.

Proposition 11 specifically prohibits the taking of private property to give to another private entity for the purpose of economic development or enhanced tax revenue. It limits the use and ownership of property taken by eminent domain to either the state or the public at large. It also requires new entities seeking the power of eminent domain to be approved by a two-thirds vote of the Legislature, and requires that the government must determine if each property in a neighborhood is blighted before deciding if the neighborhood itself is blighted.

Colorado State Grange

What Is Food Policy?
By Jim Miller, CO Agriculture Director

For over a year, Colorado State Grange has been working with various groups to form a Food Policy Council focused on how the “food system” can better serve society. It’s an interesting collection of expertise; there are farm planners, health advocates, humanitarian organizations and community activists.

The focus of the group is to explore how the “food system” can better serve society and address problems of obesity, hunger, access to wholesome and healthy food, and interestingly enough, encourage the consumption of locally grown food. The fact is, there is a growing trend among U.S. consumers to favor food products grown and processed locally. If you’ve been to a farmer’s market recently, you’ll know what kind of crowds they attract.

This new trend, and the thinking behind a local food policy council, are very positive. After all, who can oppose supporting local food banks, encouraging exercise and healthy diets, and helping consumers gain access to high quality food products? But there are other motives and agendas at work that arise from time to time. For instance, some believe that wholesome food must be organically grown. Others might argue that a healthy diet is one that avoids red meat or any type of animal product.

There will be legislation introduced to the General Assembly in January to create a Colorado Food Policy Council. It is critical that Grange members contact their state representative and senators and urge them to support creation of a food policy council that is comprised of people whose foremost concern is improving access to wholesome, fresh food supplies and advocates for healthy diets that include moderate amounts of red meats.

Grange Member Appointed as Deputy Commissioner in Colorado

Colorado Commissioner of Agriculture, John R. Stulp, recently announced that longtime Grange member and former National Grange Assistant Legislative Director, Jim Miller, had been appointed/promoted to serve as the Deputy Commissioner to oversee markets, inspection and consumer services, conservation, plants and brands divisions, as well as the department’s communications office. Congratulations Jim!

California State Grange

CA Grange Testifies on Water Issues
By Mike Green, CA Government Affairs Director

The California State Grange testified before the Joint Informational Hearing of the Senate Natural Resources and Water Committee and the Assembly Water, Parks and Wildlife Committee on the subject of Delta/Water Legislation. The Grange endorsed the recommendations of the CALFED Bay-Delta Program and the Delta Vision Blue Ribbon Task Force and committed to work for their implementation as a public trust for all the people of California. The Grange believes that the recommendations of the task force’s strategic plan offers a comprehensive and integrated guide solving California’s immediate water problems and is a management tool for managing this precious resource for water quality and quantity.

California State Grange believes the use of the Tulare Lake basin for above and below surface water storage should be given serious consideration as part of the overall solution to our state’s water problems. The Grange committed themselves to work for the preparation of a study of the feasibility of use of the Tulare Lake basin as a surface and ground water storage hub with river and canal interties.

The Grange cited a 2002 engineering study showing the use of the Tulare Lake basin for water storage would help restore the San Joaquin River in addition to offering water recovery and reuse potential. Additionally the Delta Vision report showed groundwater storage and conjunctive use is a much more effective and efficient approach to water management on a regional basis.

Connecticut State Grange

The Solution is the Problem
By Gordon Gibson, CT State Grange Legislative Director

Connecticut, like much of the nation’s financial situation, is not good. Everyone agrees on that, but they cannot agree on what to do about it. The problem is that there are a lot of choices. The state depends heavily on the income tax and the sales tax. The General Assembly passed a budget in September. That budget, like all budgets, had to make some assumptions about the amount of money the state would collect in taxes.

Now, because of the economy, the tax revenues are not as much as predicted. The governor and the leaders in the General Assembly agree that something should be done to correct the problem , but they do not agree on what that “something” is.

Governor Rell called the General Assembly in to a special session and sent them her recommendations on where cuts should be made in the budget. The Appropriations Committee held a public hearing on December 8 to hear what the public had to say. Although the weather was very bad that morning, over 300 people showed up to testify.

New Hampshire State Grange

NH State Grange Honors Outstanding Public Servants
By James Tetreault, NH State Grange Vice President and Legislative Director

At the New Hampshire State Grange a wide variety of topics were discussed on agriculture including dairy and food safety issues, single payer health care, and casino gambling, to name a few. The legislative department recognized some outstanding New Hampshire public servants at our 2009 convention including Tara Sad – Outstanding Legislator, Dr. Stephen Crawford – Clesson “Junie” Blaisdell Award for Excellence in Government, and Robert Haefner – Robert “Bob” Bodwell Memorial Award for Excellence in the Legislative Field.

Washington State Grange

More Budget Woes: Potential Tax Incentive Cuts Could Hurt Ag
By Holli Johnson, WA State Grange Legislative Liaison

The first week of December should be the beginning of the Christmas season, but for the state legislature, the first week in December is designated committee days. This is where the separate legislative com mittees assemble for a few days to discuss the upcoming session, and possibly reveal issues that will be important this session.

This year's committee discussions were not full of holiday cheer, but instead were troubled by budget woes. At the top of Santa's list is how to bridge a $2.6 bil lion shortfall for the capital budget before the legislators leave town in March 2010.

A recent statement from the governor's office said the Gover nor isn't interested in general increases in the state sales, property and business and occupa tion taxes, but instead advocates eliminating tax incentives and loopholes.

Good news? Well, not exactly. While no new sales tax or property tax is great, eliminat ing imperative tax incentives could bring seri ous financial hardships to many businesses that bring needed employment to the state. We do not know what tax incentives are on the chopping block, but to close a $2.6 billion hole it would be safe to say there aren't going to be just a few eliminations.

When a new tax incentive is created by the legislature, they never use the term “tax loophole”, to promote its passage. Now that they want to eliminate these in centives you hear them use the term “loopholes” instead of incentive. Using the word “loophole” to describe a tax incentive is like using holiday in place of Christmas. It does not mean the same thing. “Loophole” means a way of evading honest taxes owed while an incentive is a means to use the tax code to stimulate beneficial economic activity. So using these words interchangeably is misleading.

Pennsylvania State Grange

PA Energy Boom
By Betsy Huber, PA State Grange President

PA State Grange Master, Betsy Huber, recently participated in a research tour about Marcellus shale. It is now estimated that PA has 489 trillion cu. ft. of recoverable natural gas, or $1.2 trillion worth, a 100-year supply. The cost is about $3.5 million to drill one well. Eighty-three percent of the surface in parts of PA is now leased. There are 35 companies leasing land in PA and so far they have spent $5 billion, estimated $55 billion by 2014, just four years from now. The major environmental concern is water — each well uses 3-4 million gallons to fracture the shale and release the gas. There are four ways to handle the wastewater after the fracking, none of which is satisfactory at this time: special treatment plants, sewer plants, deep injection wells, or recycling it again. Much study and research is being done to solve the problem. This huge economic boom is causing a major change in all aspects of life in the northern tier, and will certainly result in changes in agriculture. The statement expressed at the meeting was, "Millionaires don't milk cows."