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AUGUST 2003 |
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Cooperatives
Working Together Seeks to Stabilize Milk Production and Prices
The National
Milk Producers Federation (NMPF) recently announced a new program to help stabilize
milk prices. The Cooperatives Working Together (CWT) program is a multidimensional,
farmer-led and funded program created to address the supply and demand imbalances
that are depressing milk prices. In order for the program to be enacted, NMPF
would need to collect 5 cents per hundredweight from participating dairy cooperatives
and/or individual producers until a participation level of 70% is reached. With
that benchmark having been reached in July, the CWT program is now being implemented.
The
CWT program funds will be distributed between three supply reduction programs
to maximize the programs effectiveness. The first of these programs is the Herd
Retirement Program, which aims to remove whole herds of dairy cattle as a way
to stabilize milk production over the long term. Producers are required to submit
information on their herds in order to obtain a bid. Once the conditions of the
bid are verified, the animals will be committed to slaughter. The second program,
the Export Assistance Program, will assist producers in selling butter and cheese
products in foreign markets. The third program, the Reduced Production Marketings
Program will allow farmers to contract with CWT to reduce future marketings by
a specific percentage. "We're
thrilled to be able to move forward with CWT. This groundbreaking program is tremendously
important for the dairy producer community," said NMPF President and CEO, Jerry
Kozak. "It not only offers relief to dairy farmers facing record low prices; it
also allows them to begin to improve marketing conditions by helping to balance
supply with demand. Many people said it was an impossible task to get producers
to work together; CWT proves them wrong." For additional information, please visit www.cwt.coop.
top National
Granges Urges House to Vote NO On Drug Reimportation Legislation
In a
recent coalition letter to the House of Representatives, the National Grange along
with several other seniors groups and health organizations, urged the house to
vote no on HR 2427, otherwise known as the Pharmaceutical Market Access Act of
2003. Introduced by Congressman Gil Gutknecht, the Pharmaceutical Market Access
Act would allow American consumers to import FDA-approved prescription drugs from
FDA-approved facilities in 25 industrialized countries. Although
the National Grange commends any efforts made on behalf of Congress to deal with
the already high costs of prescription drugs, this bill would pose a significant
risk to American consumers. Because of a highly regulated prescription drug supply
system, U.S. citizens can rest assured that their medications are safe and effective.
However, if this bill is passed, the safeguards that consumers have relied on
for many years are removed. Drugs that have been manufactured in countries with
lesser standards or unapproved countries will infiltrate our current supply. HR
2427 would also allow individuals to import drugs without any limitations on the
type or quantity. Because these drugs will not be properly tested or subject to
reporting to Health and Human Services (HHS), consumers run the risk of ingesting
counterfeit or dangerous drugs, putting their health at an even greater risk.
Although a solution to the high costs of prescription drugs is needed, this bill
would put consumer safety in jeopardy. The
National Grange is particularly concerned that with no mechanism to track individual
drug importers and no mechanism to track the individual drugs being imported,
HR 2427 will create a massive loophole that known, as well as currently undiscovered,
sexual predators can exploit. So, called "date rape" drugs such as Rohypnol, GHB,
and Ketamine will become widely available through foreign suppliers to anyone
who wants them for the purpose of procuring sex without someone's consent. By
"anyone" this includes convicted rapists, pedophiles and child molesters. Especially
vulnerable to this type of sexual exploitation will be children. The Pharmaceutical
Market Access Act of 2003 attempts to reduce medicine prices at the expense of
public health and public safety. That is a price that the National Grange is unwilling
to pay.
top Colorado
Grange To Study TABOR
An issue of debate among Colorado residents and
State Grange members is the efficacy of the Colorado Taxpayer's Bill of Rights
(TABOR). Approved by Colorado voters in 1992, TABOR is a constitutional amendment
designed to restrain the growth of government. It does this by controlling the
amount of revenue that can be collected and spent, as well as determining how
taxes will be raised. For any new tax increase to go forward, it must have voter
approval. TABOR also limits the amount of revenue that government can collect
and limits spending by determining that state government cannot increase faster
than household-consumer prices plus population growth and that local government
cannot grow faster each year than the value of real estate plus the increase in
inflation. Last
February, The Bell Policy Center conducted a 13-stop listening tour to learn more
about how Colorado communities are being affected. Despite the fact that a decade
has gone by since passage of TABOR, many state residents are unclear on the law's
effects on state and local governments. The Bell study is being utilized as a
way to educate state residents on this amendment. According to Bell President
Wade Buchanan, "With the release of this report, the Bell is launching a major
public education campaign. We will also work with business, nonprofit and state
and local government leaders to attempt to craft a solution to the major problems
identified in our study." "The concept of TABOR is good," said Colorado State Master, Roger Phelps. "The
individuals who drafted the bill and those of us who approved it, did not comprehend
the broad impacts to our communities and the state." Phelps also believes that
more education is needed regarding this amendment and that revisions are needed.
A concern for him is that Colorado's education, health and social service systems
will decline if TABOR remains in its current form. To address this concern and
to better educate citizens about TABOR, the Colorado Grange is considering partnering
with the Bell Policy Center.
top National
Grange Supports U.S. - Singapore Free Trade Agreement
The National Grange
recently joined forces with over 20 agricultural and public interest organizations
in urging both the House and the Senate to implement the U.S. - Singapore Free
Trade Agreement (FTA). The U.S. - Singapore FTA will benefit both countries by
further opening Singapore's markets and increasing competition and consumer choice
within their country. Despite the fact that it is a very small country, Singapore
is the 12th largest trading partner of the United States. Although U.S. trade
with Singapore is already largely open in the agricultural sector, the FTA serves
as an excellent model for the treatment of important issues in ongoing and future
free trade agreements with other countries and regions. Nearly
all concerns that U.S. agriculture had regarding a free trade arrangement with
Singapore have been addressed. A key issue was whether there would be an effective "rule of origin" to prevent products from third countries entering Singapore,
being partially processed, and then shipped on to the U.S. as a product of that
country. Such transshipments would allow those products to obtain the benefits
of free access to our market without truly originating in Singapore. We are confident
that the rules of origin incorporated in the Agreement will adequately protect
us from such situations. Singapore
serves as a gateway to some of the most important future growth markets for U.S.
food and agricultural products in Asia. The value of the Singapore FTA to American
agriculture, therefore, extends well beyond sales of U.S. products to that single
market. It is important that Congress act to put in place an agreement that will
allow the U.S. to take full advantage of the important role Singapore will play
in facilitating U.S. agricultural sales throughout Asia.
top New
Coalition Addresses Natural Gas Crisis
In response to the escalating costs
of natural gas, the National Grange has become a founding member of a new coalition,
the Consumers for Affordable Natural Gas. As a result of this crisis, prices are
twice the five-year average and rising, with little to no relief in sight. Rising
costs and potential shortages will put many homes, farms, businesses and industries
in jeopardy. As a result of steep natural gas price rises, utilities across the
nation are aggressively filing at state public service commissions to pass through
major price increases in natural gas and electricity. To
increase energy supplies, House Speaker Dennis Hastert announced the formation
of a Republican Task Force for Affordable Natural Gas. The Task Force proposes
that certain environmental restrictions regarding the drilling of oil in currently
closed or restricted areas be lifted. Task Force member and Grange member, Rep.
John E. Peterson (PA) recently addressed a Consumers for Affordable Natural Gas
meeting. Rep. Petersen told the coalition that he believes "An affordable and
reliable energy supply is the cornerstone of our economy." In
a separate letter to Speaker Hastert, Representatives Richard Pombo (CA) and Billy
Tauzin (LA) also pointed out that restrictions on natural gas production "..threaten
our nation's economic health and American jobs, just as our economy is showing
signs of recovery." The letter also said, "clearly something must be done to balance
conflicting government policies that encourage the use of natural gas as a clean-burning
fuel but restrict access to plentiful American supplies." Click
Here for a list of task members. According to coalition founder Paul Cicio, "the formation of a broad consumer focused coalition is necessary to bring the
necessary changes to federal and state policy needed to increase supply of natural
gas and to encourage energy efficiency."
top Legislation
Introduced to Assist Beginning Farmers
U.S. Representative Lee Terry
(NE) and Representative Earl Pomeroy (ND) have recently introduced legislation
that would encourage a new generation of agricultural producers. By providing
tax relief to those who sell their land to beginning farmers, it allows the U.S.
to keep more of the nation's agricultural land in production. The Beginning Farmers
and Ranchers Tax Incentive Act of 2003, or H.R. 2978, would provide new capital
gains tax relief for the sale of all qualified farm or ranch property. An added
provision of this bill would provide even greater benefits to those selling their
land to first-time farmers and ranchers and others who will keep the land in production.
Within
this bill, there are three levels of tax relief provided to those who sell their
land. Active or recently retied agricultural producers selling their land for
any purpose would receive a 25% reduction in capital gains taxes. If landowners
sell their land to someone who keeps it active in agricultural production would
receive a 50% reduction. Those producers who choose to sell their land to a beginning
farmer or rancher would receive a 100% reduction in capital gains taxes, which
would produce a more level playing field for these producers who must compete
with larger agricultural producers or developers. If the land is disposed of or
no longer used for agricultural purposes within 10 years of purchase, a penalty
will be imposed in order to "recapture" the capital gains tax benefit. "The
goal here is to help the next generation of farmers and ranchers compete with
more established producers and, at the same time, improve the quality of life
in rural areas near our growing cities." Said Rep. Terry. With the average age
being 57, we can expect our nation's population of farmers and ranchers to be
diminished significantly over the next few years. The National Grange sent a letter
of appreciation to both Representatives Terry and Pomeroy saying that this legislation
"creates a win-win situation in which jobs are created, our economy is strengthened
and self-sufficiency is achieved". By proposing this legislation, we are not merely
keeping America's agricultural industry thriving, we are preserving a valued way
of life.
top Kelley
Farm Provides Glimpse Into Grange History
National Grange members from
throughout the nation came together in Minnesota to honor Grange history at the
Oliver H. Kelley Farm picnic on July 31,2003. The event was very successful, with
121 Grange members of all aged in attendance. Attendees had the opportunity to
experience history firsthand through guided tours conducted by staffers in authentic
period costumes and by others reenacting day-to-day farm life in the 1800's. The
Kelley Farm picnic went beyond recognizing Grange history; it was also a testament
of Grange dedication to grassroots activity. Because the farm is in danger of
closing due to state budget cuts, the National Grange launched a petition signing
campaign in response. On display were over 250 individual petitions with over
2,000 individual signatures received from throughout the nation urging both the
Minnesota State Legislature and the Minnesota Historical Society to save the Kelley
Farm. For
many children visiting the farm, this will be their first experience to learn
the value of our agricultural past. Hopefully, if all Grangers work together,
it will not be their last. Click Here to
download and circulate the Kelley Farm petition
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