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APRIL 2004

Agriculture Coalition Raises Concerns Regarding Oil Spill Rule
The Agriculture Coalition, which includes several farmer advocacy groups, including the National Grange, expressed concerns regarding the EPA's Oil Pollution Prevention and Response Regulation (40 CFR 112; "SPCC Oil Spill Rule") in a recent coalition letter. Addressed to the Assistant Administrator for Solid Waste and Emergency Response, Marianne Horinko, the coalition individually addressed key points covered in the ruling while making recommendations on how they can better serve America's farmers.

The first issue raised was that definitions regarding "facilities" did not directly apply to farms, but rather to oil refining, transfer and storage facilities. Furthermore, farms are not limited to a single location; depending on how far apart they may be, each farm could have its own oil storage facility. The coalition suggested that farming operations that cover more than one area not be considered a single facility and that aggregate tankage should be determined separate for each field. It is also considered necessary that the EPA rule change its limit from a single 1,320-gallon trigger to encompass several triggers depending on the size and number of fields.

The letter also recommended that the EPA's current testing requirements should be dropped. The only requirements that should be made on tanks on agricultural lands consist of visual inspection and appropriate record keeping because commercial fuel distributors inspect the tanks on a regular basis. During most times, the tanks are seldom used.

The coalition also requests that an additional two years beyond the August 17, 2004 deadline is needed for farmers to comply with the EPA's final rule. Furthermore, states should also be given additional time to facilitate implementation and compliance before the EPA enforcement takes effect.

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USDA Provides $2.2 Billion for Rural Broadband Loans
The USDA Rural Utilities Service (RUS) recently announced no less than $2.211 billion will be made available for loans and loan guarantees for broadband Internet providers to deploy broadband Internet service to underserved communities. As amended by the 2004 Consolidated Appropriations Act, underserved communities are defined as "not contained in an incorporated city or town with a population in excess of 20,000 inhabitants".

Both the substantial funding for the RUS program and the change in the definition of an underserved community were strongly advocated by Rural Broadband Coalition (RBC), of which the National Grange serves as one of the founding members. "RBC members worked hard to promote their shared 2003 legislative agenda," said RBC President Scott M. Lindsay, "and they look forward to helping underserved communities realize the benefits of their collective efforts by using these needed funds to deploy broadband."

RBC is a technology and provider-neutral national advocacy and service association. RBC serves Internet service providers, telecommunication companies/utilities, for-profit utilities, rural electric cooperatives, municipalities, public utility districts, tribal communities, technology companies, government organizations, associations and other interested parties that are dedicated to supporting the deployment of broadband Internet access to rural America. To view a copy of the Federal Register notice, learn more about RBC or other federal financing opportunities, click here.

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USDA Invests in Rural Development Funds
This month, the United States Department of Agriculture (USDA) Secretary Ann Veneman announced the selection of 34 loan and grant recipients in 17 states that are to receive $10.9 million in rural business development funds. The loans and grants will support 55 new business ventures and preserve over 900 jobs in order to spur economic development in rural America.

The grants and loans are awarded through USDA Rural Development to cooperative organizations that provide loans or grants supporting local economic or community development efforts. These funds can be applied towards a variety of projects, such as those improving rural access to health care, promote the use of alternate energy sources and encourage economic growth. Many award funds were made in conjunction with other sources of assistance to "leverage" USDA funds for greater effect. For a list of the awards, click here.

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Grange Launches "People's Choice" Initiative
In response to the governor's veto, the Washington State Grange announced that it is now collecting signatures for I-872 (the "People's Choice" initiative) to run on the November ballot.

The initiative will institute a "modified" blanket primary system (also known as a qualifying primary) in which voters will not be restricted to choosing among the candidates of only one party in a primary election. Voters will also not be required to declare party affiliation when registering. The initiative would implement a "top-two" system in which the two top vote-getters in a primary election advance to the general election, regardless of party.

"Our initiative will put a system in place which looks almost identical to the blanket primary system we've been using for nearly 70 years," said Grange President Terry Hunt. "The only difference is that this system will satisfy the constitutional requirements set forth by the courts."

The campaign was launched in response to Governor Locke's partial veto of Engrossed Senate Bill 6453, which was passed by the legislature last month. The bill would have put a top-two system in place, which would then revert to a Montana-style system in the event that legal challenges by the political parties resulted in a successful ruling.

However, Governor Locke vetoed the "top-two" system out of the bill, leaving only the Montana-style system in its place. Under this system, voters are required to choose a ballot from only one party at a primary election.

"The Governor defied the will of the voters, and he defied the will of the legislators elected to represent those voters," said Hunt. "By changing the intent of the bill, he will have to face not only our initiative campaign, but a law suit by the Grange as well. He simply can't veto the qualifying primary out of a bill that is titled 'Enacting a Qualifying Primary.'" For more information, contact David Burr, Washington State Grange Communications Director or visit the Washington State Grange. For more information about the blanket primary, click here.

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Good News for Dairy Farmers!
For the nation's dairy farmer, relief may finally be in sight. After experiencing a 25-year low in prices last year, the price of milk is expected to increase by 50 cents next month. This price increase is the result of factors including shrinking dairy herds, higher feed and beef prices, less use of growth hormone and the recent discovery of mad cow disease in the United States. According to National Milk Producers Federation spokesperson Chris Galen, "it's almost a perfect storm of factors, any of which wouldn't have much of an impact but together have kept a heavy lid on production".

Last year, the National Milk Producers Federation (NMPF) launched a voluntary program called Cooperative Working Together to manage the dairy supply. One of the major elements of the program was to create a higher demand for dairy products by paying members who agreed to reduce their milk production, either by milking less or slaughtering cows to reduce herd size. The price increase is not limited to milk, the price of cheese and butter is also expected to increase.

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National Grange Urges President & Congress to Support COOL
In recent coalition letters to the President and Congress, the National Grange and a coalition of over 115 other agricultural and rural public interest organizations urged the support of the Country of Origin Labeling (COOL) Act. The COOL Act amends the Agricultural Marketing Act of 1946 to make country of origin notice requirements applicable to retail sales of all covered commodities as of September 30, 2004. If amended, the law would require retailers to maintain country of origin records for at least 180 days.

Despite its potential benefit to consumers, the fiscal year 2005 omnibus appropriations bill included a two-year delay of implementation on all covered commodities with the exception of fish. Representatives Mary Bono and Darlene Hooley introduced legislation, the Cool Enhancement Act that would restore the implementation date of September 2004.

In the letter the coalition said the Bono-Hooley Act, "eases the record keeping and fine burden on retailers and allows for the labeling program to work simultaneously with a national animal identification program once such a program is operational." In addressing the President, the coalition said, "we urge you to broaden the statement you made and work with our coalition to pass the Bono-Hooley legislation and ensure COOL is implemented by September 30, 2004, as originally intended by Congress."

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USDA Expands BSE Surveillance Program
Since the recent discovery of Bovine Spongiform Encephalopathy (BSE), or mad cow disease in the United States, the beef industry has suffered tremendous losses. Despite the appearance of the disease in one cow among 96 million, 58 countries are still upholding bans on American beef products.

To ensure the viability of the U.S. beef industry and consumer safety, USDA Secretary Ann Veneman announced details for an expanded surveillance effort to detect BSE. The purpose of this plan is to test as many cattle as possible in high-risk populations to determine if BSE is present. "We are committed to ensuring that a robust U.S. surveillance program continues in this country," said Veneman. "This one-time extensive surveillance plan reflects the recommendation of the international scientific review panel."

The BSE surveillance program focuses on cattle populations most likely to be infected, such as those condemned to slaughter due to central nervous system disorders, non-ambulatory cattle and those that die on farms. According to Veneman, $70 million will be transferred from the USDA Commodity Credit Corporation to fund the enhances program with the goal to test as many cattle as possible in the high-risk population as well as to test a sampling of the normal, aged cattle population over a 18 month time frame. Because BSE takes several years to show any outward symptoms, the program will also include a random sampling of apparently normal animal carcasses prior to being slaughtered.

The BSE surveillance program is expected to go into effect June 1, 2004. Testing is expected to continue at the current rate, which is based on a plan to test 40,000 animals in FY 2004. For more details on the new program and information on BSE, click here.

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Tax Relief Measures Benefit Rural Families
As a result of the Jobs and Growth Tax Relief Act of 2003, rural farm and ranch families are benefiting financially. USDA Secretary Ann Veneman released an analysis illustrating the benefits of this legislation. "The tax relief that has passed since this administration took office continues to yield enormous benefits for farm and ranch families across the country," said Venaman. "Our economists calculate that the relief has provided about $4 billion in tax reductions for farms and ranches in 2003. This year, we are projecting that it will provide an additional $4 billion."

Passing of this legislation has resulted in an average savings of $2,000 per farm household per year, or a 16 percent reduction in the annual tax burden. Benefits were gained mostly form the increased child tax credit and relief of the marriage penalty in addition to capitol gains tax cuts.

"We need to make these tax cuts permanent, including the repeal of the death tax, one and for all," said Veneman. "Farmers need this stability in planning their long-term operations and our economy needs the positive stimulus the tax cuts have been providing."

Results of the tax cuts have been outstanding; as of now, more than 105 million people have lower income taxes and more than 23 million small businesses can use these savings to invest in equipment, facilities and employees, benefiting the surrounding communities. If overturning the estate tax is soon realized, farmers will be better able to ensure a prosperous future for the next generation of farmers. For more information, click here.

Don't Miss Out.
Be sure not to miss out on the 2004 National Grange Legislative Fly-In! For over six years, the Grange has provided an opportunity in which all members are invited to take advantage of all the educational and recreational opportunities that can be found in our nation's capitol.

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Participants will have the opportunity to make their voices heard by meeting with their government officials to discuss the issues that matter the most to rural Americans, providing a forum in which they can be heard. The Legislative Fly-In has grown rapidly in the last few years, with a greater number of participants and more influential speakers. Past speakers include Representative Elliot Engel and Senator Elizabeth Dole! Other activities include taking a trip back in time through a visit to Gadsby's Tavern in Old Town Alexandria in addition to hearing lively political debate by being in the studio audience of Crossfire, CNN's longest running political debate show. Between all these activities, you will have plenty of options to explore the city and enjoy the surroundings of Decatur House, the Grange's next-door neighbor and a historic landmark or visit the White House, which is merely steps away. Register Now! We hope to see you there!

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

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