The National Grange of the Order of Patrons of Husbandry
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MARCH 2003

New CA Grange Chapter Champions Individual Property Rights
The National Grange continues its tradition of political advocacy and grassroots activism by forming a new chapter consisting of members from various Northern California and Southern Oregon chapters of People for the USA. This new Grange chapter will be known as the People for the USA (PFUSA) Grange #835. Although grassroots political participation has been a characteristic of the Grange throughout its history, the PFUSA Grange will focus almost exclusively on grassroots political activity. Unlike other Grange chapters, the PFUSA Grange's membership will span numerous geographical and organizational lines that will bring Grange grassroots activism to a whole new level.

The PFUSA Grange, in partnership with the California State Grange, recently hosted the Western Land Use Conference in Klamath Falls, OR on Feb 15 & 16 addressing individual property rights of ranchers and landowners. The purpose of this conference, according to PFUSA Grange President Ric Costales is "to keep what rightfully belongs to the people from coming under the command and control of the federal government." This is a challenging time for ranchers and landowners. Concerns faced by rural Americans are being used to justify greater government control of private property. Protection of endangered species, land management and water rights issues are becoming the basis for laws that undermine private property rights.

The Western Land Use Conference brought together experts in related fields who could provide insight and educate Grangers on how to preserve their civil liberties and protect their private property, covering such issues as the Endangered Species Act, grazing allotments, the legal rights of landowners and the benefit of applying free-market solutions as an alternative to ineffective, in many cases detrimental, government control of open land areas. The conference's ambitious goals went beyond mere discussion of the issues. This conference provided information to enable attendees to devise strategies that they can use to secure their individual rights and the tools by which the Grange can create a firm foundation to build a brighter future for rural Americans. "But most importantly," according to Ric Costales "the Grange isn't going away. We intend to be there for rural America through the current difficulties. In uniting rural residents in their commitment to rural values and providing an infrastructure to support that effort, the Grange is as important and relevant as ever."

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New England State Masters Legislative Conference Focuses on Regional Dairy Crisis
On March 1, State Masters, Legislative Committee and Agriculture Committee representatives from the six New England states met at the New Hampshire State Grange building in Hooksett, NH to discuss their joint response to the financial crisis facing the region's dairy farmers. Nearly 40 Grange leaders attended the one-day meeting, including National Master Kermit Richardson, First Lady Margaret Richardson and National Legislative Director Leroy Watson.

The first speaker was John Porter, who is a dairy specialist with the University of New Hampshire. Mr. Porter explained that the heart of the financial crisis arose from an apparent failure of the dairy market to respond to basic supply and demand situations.

Today, dairy farmers are receiving the same prices for their product that they received in 1979. Consumers, on the other hand, are paying 2003 prices, in excess of $3.00 per gallon, especially for fluid milk in the store. Meanwhile, over production in the dairy industry, reductions in per capita fluid milk consumption, and a growing generation of non-milk drinking children fostered by the explosion of soda machines in schools is contributing to lower demand and lower prices in the dairy industry. Porter pointed out that the lack of price responsiveness in the retail market for fluid milk sold directly to consumers was helping to drive prices paid to farmers to 25 year lows.

Porter explained that traditional supply and demand theories would predict that as prices paid to farmers were lowered, some or all of those price reductions would be passed on to consumers in the form of lower prices for milk. As retail prices drop, consumers buy more milk and farmers then see higher revenues through stronger consumer demand and greater volumes of sales. But when lower prices paid to farmers do not result in lower prices paid by consumers, then the forces of supply and demand do not benefit farmers. Porter also pointed out that during the time when New England had a Dairy Compact, which provided more stable prices to dairy farmers, numerous retail outlets displayed signs "apologizing" to consumers for the high price of milk and blaming the dairy compact program for the "high" prices that consumers were paying. However, following the end of the Northeast Dairy compact, prices to consumers did not decrease.

The Hon. Steve Taylor, New Hampshire Commissioner of Agriculture, also addressed the group. Commissioner Taylor pointed out that the national market loss incentive payments program, adopted by Congress as part of the 2002 Farm bill to provide direct financial assistance to dairy farmers during times of low prices, was helping many struggling dairy farmers in New England stay in business during the current price slump. However, Commissioner Taylor also noted that the failure of traditional market forces was potentially inflicting permanent damage on the New England dairy sector. He predicted that unless competition could be restored to the dairy markets, that dairy farming would move toward the same supply management strategies that other livestock industries were using, such as contract agriculture. Commissioner Taylor expressed his hope that the dairy industry could avoid having to move toward contract agriculture. However he noted that rapid consolidation of dairy processors, handlers and the retail sales industry was reducing competition for the consumer's dairy dollar. He predicted that if the proposed merger of HP Hood and National Dairy Holdings was allowed to go through, that New England dairy farmers would have, at best, only two choices of locations to ship their milk.

National Grange legislative director Leroy Watson briefed the group on the status of legislative issues affecting the New England dairy industry in Washington, DC. Watson pointed out that legislation to reauthorize the successful Northeast Dairy Compact, as well as authorize the creation of diary compacts in other regions of the nation; HR had been introduced in the 108th Congress. But as of March 1st, none of the US Representatives from the New England states was a co-sponsor of that legislation. Watson also explained the discussions and negotiations that lead to a national dairy market loss incentive program being included as part of the 2002 Farm Bill, instead of reauthorization of the Northeast Dairy Compact. "At some point," the Grange's chief lobbyist told the group, "we had to decide whether or not to support a national market loss program or no additional financial assistance for dairy farmers at all in the 2002 Farm Bill."

National Master Kermit Richardson addressed the group and expressed his strong support for regional meetings of State Granges, like this one. He emphasized that finding common issues of concern is critical for effective grassroots political efforts. He pledged the support of the National Grange in their future efforts of the New England State Granges address the diary crisis and other issues of mutual concern and he urged the State Granges present to continue the dialogue started that day.

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EPA Extends Notice of Proposed Rulemaking on Isolated Wetlands
On Feb. 25th, the US Environmental Protection Agency and the US Army Corps of Engineers announced that the deadline for comments regarding the Advanced Notice of Proposed Rulemaking (ANPR) on Isolated Wetlands has been extended to April 16, 2003. The two agencies are soliciting public comments regarding the appropriate regulatory definition of the terms "isolated waters" and "waters of the United States" under the Clean Water Act following U.S. Supreme Court's ruling in the case of the Solid Waste Agency of Northern Cook County (SWANCC) vs. U.S. Army Corps of Engineers.

In the SWANCC case, the U. S. Supreme Court ruled 5-4 that federal authority under the Clean Water Act does not extend to isolated waters, including wetlands, that aren't connected or adjacent to interstate and navigable waters. The Court concluded that the previous regulatory definition of what constituted "waters of the United States" that was used by the Army Corps of Engineers (based on a "connection" to interstate commerce via hunting or bird watching) was too broad and too vague and that the Corps' assertion of federal jurisdiction over isolated waters exceeded the authority granted under the clear language of the Clean Water Act.

As a result of this Supreme Court ruling, The USEPA and the Corp of Engineers issued the ANPR in January to seek public comments on how they should change their existing definitions of "isolated waters" in order to comply with the decision. Jurisdiction over "isolated waters" not covered by the new federal definition shall be left to state and local governments as well as private property owners.

The National Grange is working closely with the National Wetlands Coalition, which consists of local government entities, state and national trade associations, Native American groups, business and agricultural interests, and others to advocate for a balanced federal policy for conserving and regulating the nation's wetlands. During the Master's Conference in Kansas City, MO, the National Grange also launched a postcard writing campaign to the Environmental Protection Agency (EPA). The purpose of which is to urge the EPA to maintain the definition of "waters of the United States" consistent with the Supreme Court ruling. The postcard message stated that the EPA "should recognize, preserve, and protect the primary responsibility of states, local government and use of private land and water resources in our country."

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Grangers Fight to Save Kelley Farm
The State of Minnesota and the National Grange are threatened with the possibility of losing one of their treasured landmarks. As a result of Gov. Tim Pawlenty's proposed 2004 - 2005 budget, the Minnesota Historical Society (MHS) will have to close nine of their historical sites, one of which is the Oliver H. Kelley Farm in Elk River. The Oliver H. Kelley Farm, the homestead of the National Grange founder, has played an important role in Grange history and is visited by roughly 15,000 people a year.

Since acquiring the farm in 1934 and turning it over to the MHS in 1961, the Grange has contributed both money and resources to the farm. In 1966, the National Park Service designated Kelley Farm as a historical landmark. In response to the Feb. 26th Action Alert, Grangers were encouraged to contact Minnesota state legislators urging them to reconsider.

In letters to State Representative Bob Gunther and Senator Dallas Sams, John Thompson, member of the National Grange Board of Directors, said "this 'Birthplace of Organized Agriculture in America' has been a historical site for the last 41 year as a result of a partnership between the people of Minnesota and the National Grange and is one of only fifteen such landmarks in the state of Minnesota." He also mentioned that "more than 500 Grange members from outside Minnesota are expected to travel to Minnesota this summer, stay in Minnesota hotels, eat in Minnesota restaurants and support the local economy during this trip."

Dave Howard, Grange member and author of the National Grange history book "People, Pride and Progress: 125 Years of the Grange in America" wrote to Senator Sams, asking him to "please realize that this is a unique spot for all Americans who have roots in the rural landscape. The state of Minnesota received benefits from many of us from out of state who travel to enjoy this facility. I encourage you to do everything possible to retain sufficient funding so this educational attraction may remain open."

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USDA Urges U.S. Farmers to Stand Up and Be Counted!
According to the USDA's National Agriculture Statistics Service (NASS), response to the 2002 Census of Agriculture is decreasing on a yearly basis. Information gathered from the census is vital to the continuing viability and prosperity of U.S. agriculture. Results of this census do not only determine state and local agricultural investment decisions, they allow local, state and national representatives and agencies to make informed agricultural policy decisions. For more information, please call 1-888-4AG-STAT or visit National Agriculture Statistics Service.

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2003 Legislative Fly-In
Be sure to register for the National Grange's 2003 Legislative Fly-In! Register Now!or contact Joanne Manelli, Legislative Program Assistant at (202) 628-3507 ext. 105. Also be sure to check out the Potomac Grange #1 2003 Legislative Fly In Scholarship program. Deadline for applying for the Scholarship is March 31, 2003.

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

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