New Grange Issues New Grange Archives Current Issue May - Jun 2011 Mar - Apr 2011 Fan - Feb 2011 Sept - Oct 2010 Jul - Aug 2010 May - Jun 2010 Mar - Apr 2010 Jan - Feb 2010   Master's Message: Why We Oppose The "Death Tax Granger Is National Hero National Grange To Offer Prescription Drug Program National Grange Foundation And Endowment Grange Makes Presence Felt On Capitol Hill Guest Editorial: Congressman Bob Etheridge Round Of Applause Please! Scenes From The Legislative Fly-IN Bits And Pieces The Master's Message WHY WE OPPOSE THE "DEATH TAX" On March 16, 2001, National Master Kermit Richardson testified before the Vermont House of Representatives Committee on Agriculture. His testimony supported eliminating the estate or "death" tax as many call it. Committee members asked him to expand on the Grange’s reasons for eliminating the "death tax" in a follow up letter. The following letter has been edited for space reasons only. According to the Center for the Study of Taxation, 70% of family businesses don’t survive through the second generation and 87% don’t make it through the third generation. The death tax is a major factor contributing to the demise of family farms and businesses. According to a study conducted by National Life of Vermont, 77% of failed family businesses entering bankruptcy became bankrupt after the unexpected death of the founder. In another survey conducted by Prince & Associates, 9 out of 10 successors whose family-owned businesses failed within three years of the principal owner’s death said trouble paying estate taxes contributed to the company’s demise. For family farmers in particular, as the value of illiquid but productive assets, such as machinery, buildings and farmland, increases as a result of the strong economy, the confiscatory high rates of the federal death tax are a major impediment to the efficient transfer of agricultural resources to a new generation of farmers. Unlike cash, securities or even personal property, the entire value of a working family farm usually depends on the ability to pass on all of the productive assets of that operation on to the next generation. A family farm that is forced to sell machinery or land to pay death taxes essentially becomes a hobby, not a family business. Contrary to popular opinion, the death tax does not result in significant amounts of revenue to fund government programs. The death tax only raises approximately 1% of all federal revenue (about $20 billion in 1997). At the same time, the death tax is one of the costliest taxes for the IRS to administer. According to the Center for the Study of Taxation, compliance and enforcement costs eat up about 65 cents for every $1 collected. Meanwhile, the estate planning costs incurred by family farmers and small rural business owners in order to avoid confiscatory death tax rates of as high as 55%, drain billions of dollars annually from these productive enterprises. Also, contrary to popular belief, elimination of the death tax will not substantially eliminate the tax liability that falls on the wealthiest members of our society. In fact, under the death tax elimination legislation supported by the National Grange, a significant loophole in the current tax system, known as updated basis, would be substantially eliminated. That legislation would limit the use of updated basis to only $5 million of assets per estate. The remaining assets would be subject to potential capital gains taxes based on the original purchase value (or basis) when the heirs sold or transferred the assets. Finally, elimination of the death tax will not cause permanent harm to our nation’s non-profit and charitable organizations that rely on personal donations for financial support. There is no doubt that the resources transferred from wealthy individuals to nonprofit and charitable organizations as a result of estate planning strategies provide significant benefits to our nation. This existence of the death tax and the motivation it provides wealthy individuals to donate their property to charity, however, creates the harmful illusion that the responsibility to provide financial resources to fund the charitable and nonprofit sectors of our society falls exclusively on the wealthiest members of our society. To combat this illusion, the National Grange is also strongly supporting proposals currently before Congress to extend the deduction for charitable contributions to all taxpayers, not just those who itemize their income taxes. These changes will provide new incentives that will shift a larger part of the responsibility (and the joy) of supporting the worthy projects of charitable and nonprofit organizations to a broader number of individuals. For these reasons, the National Grange strongly supports the elimination of the death tax. Fraternally, Kermit W. Richardson

GRANGER IS NATIONAL HERO 

U.S. Navy Lt. Marcia L. Sonon, a member of Virginville Grange #1832 in Pennsylvania, was one of the US Navy surveillance plane crew members forced to land on the Chinese Island of Hainan. According to Sonon, "We thought we were going to drop into the sea. At the time, you didn't know how you would survive, but you had hope. God decided it wasn't our time."

Sonon went on to tell the over 300 gathered for her homecoming at Hamburg (PA) High School, from which she is a 1989 graduate, that, at first, the crew did not know where they had landed. It was not until Chinese troops approached the plane that they realized they were in Chinese territory. They would spend the next 11 days detained on the island.

Sonon said the Chinese treated the American crew well. "The quarters we were taken to weren’t exactly luxury hotel rooms, but is was all they had," she told the audience. The three female crew members insisted on staying together in the same room, even though there were only two beds and a chair. Until a US diplomat arrived on April 3, they were concerned that nobody knew where they were; neither their country nor their families. Sonon called the diplomat’s arrival a relief.

Eventually, they were moved to better quarters and given little luxuries like Cokes®, shampoo and playing cards. On April 11, the crew was told it was being released. After a six-hour wait, they were loaded on a bus with curtains on the windows and driven out to a waiting Continental Airlines commercial jet. They took off and flew to Guam. Over the next ten days, Sonon would be in Hawaii, Washington State and, finally, home in Hamburg, Pennsylvania.

Marcia Sonon grew up in Virginville Grange #1832. She started out in Junior Grange. Her mother Fern, who lives on a farm in Berks County, PA, was the Deaf Activities Chairperson for many years and is still active in the Grange. After graduating from Hamburg High School, where she was a member of the National Honor Society, Marcia earned a degree from Purdue University and then joined the Navy.

Jeff Wetzel, a member of Virginville Grange #1832 and National Youth/Young Adult Director, remembers Marcia from when he was State Youth Director. While Marcia was still detained in China, Jeff got the word out to Grangers across the country through his vast email system. He asked Granges to hang yellow ribbons on their doors and send in photos for a scrapbook he was preparing for Marcia upon her return. He called his effort the Save Our Sister (SOS) Campaign.

When it was learned the crew would be flown from Hawaii to Whidbey Island Naval Air Station in Washington State, Jeff called Toni McKinley, Washington State Legislative Director, and asked her to go and meet Marcia on behalf of the Grange. With welcome sign in hand, Toni arrived to find herself among 4,000 others waiting for the crew to return. Hoping to get a little closer so Marcia could see the banner, Toni asked a guard where she could meet Lt. Sonon. She was taken into the "immediate family" tent where she was warmly greeted by Marcia’s family. It was an emotional experience for Toni. "I am honored to be a Grange member and to have been able to take part in the SOS project. Grange is not just an organization; we really are a family…I am grateful and proud to have had the rare opportunity to meet Marcia and her family. She is a person revered as a hero in the hearts of many and a "sister" to us all," Toni wrote in her April 20 Legislative Report.

20 to 25% Savings for members plus financial assistance for Grange programs

The National Grange is implementing a discount prescription drug program provided by Scrip Pharmacy Solutions. The discount on name drugs can be between 20 and 25 percent. All major pharmacies will be participating in the program, including all chains. The card is good for local retail purchases as well as mail order for maintenance drugs (3-month supply). In addition to the discount for Grange members, the National Grange will receive a $.25 royalty each time the card is used. The average person will have eight prescriptions per year. Senior citizens will have 32. This could be a rich reward for Grange members and the National Grange.

Grange members wishing to participate in the prescription discount program should call Bob Frederick toll free at 1-888-447-2643 Ext. 108 or fax 202-347-1091. My email address is rfrederick@nationalgrange.org. A membership card for you and your family will be mailed to you.

The National Grange Foundation has been part of the National Grange since 1960 when Wib Justi as Youth and Young Adult Director had the vision to help fund Youth activities through donations from Grangers that would be tax deductible. The donations helped with Grange Youth Camps, activities at the National Grange Session, Grange exchange programs, the Youth Team, and activities the youth held throughout the year.

The National Grange Endowment Fund was established by the National Grange Executive Committee in 1997 to enhance the funding possibilities of the Foundation. With donations made to the Endowment Fund only the interest from the Endowment will be used to fund activities, securing the principal so there will be funds well into the future for Foundation programs. The Grange Youth, Deaf Activities and the Junior Grange are all activities within the Foundation.

Since 1997, the Grange Endowment Fund has grown to over $130,000, a great start for the Endowment. By using only the interest to fund programs it is easy to see that we need to double that amount in order to have minimum funds for programs. Each year an appeal goes to each State, Pomona and local Grange and we appreciate your support over these last few years to help build up the Endowment Fund. With everyone helping a little we can reach our goal of $500,000 in a few years. Funds have been received from Granges, individuals, special campaigns like the Wib and June Justi Campaign last year and the Century 2000 Campaign that have helped to build the Endowment. Some Granges have put us in their budgets each year.

An appeal letter will go out this fall to Granges and individuals and we appreciate you responding to our appeal to help the Youth, Deaf and Junior activities. The donations are tax deductible and will help provide a lasting Grange program for these vital activities of Grange. We ask that you donate to these departments when they send their messages throughout the year to help their current programs.

GRANGE MAKES PRESENCE FELT ON CAPITOL HILL

It all started at the end of January, when the 2001 Youth Team came to Washington, DC to plan their coming year. The Legislative Affairs Department arranged congressional meetings as part of the Youth Team’s program while in the nation’s capital. In a single day, January 30, each of the six Youth Team members met with one of their Senators and the Representative from their congressional district. Here is a typical reaction from Katherine Blasingame, Midwest Region Youth Team member. "Tuesday afternoon I met with my representative, Don Manzullo. This meeting was so interesting! He took the time out of his day to sit with Jeff and me and his Chief of Staff joined us also. We had a very good meeting and he had answers to some of my questions. I was nervous, but he put you immediately at ease."

The youth team members traveled in pairs, and, according to Legislative Department Director Leroy Watson, this added dimension to the visits. "In addition to having their constituent in the meeting, Senators and Representatives had somebody from a different state. The main thing this did for the Grange was reinforce the fact that the ‘Blueprint for Rural America 2001" has support throughout the country. It also gave the congressmen a view of issues beyond their states." Watson said.

The National Grange participated in the Alliance for Rural America 4th annual Energy and Environment Conference March 13 – 15. This was the Grange’s second year of participation.  Representing the Grange were James Tetreault, New Hampshire Legislative Director; Toni McKinley, Washington State Legislative Director; George Dupray, California Legislative Director; and Jay Pfeiffer, Texas State Grange Master. The Grangers did not come to sightsee. Besides participating in the conference, they managed 19 congressional and one White House visit between the four of them. The week’s highlight was Toni McKinley’s meeting with Vice-President Dick Cheney. Scheduled as a 5-minute photo opportunity, the meeting turned into a thirty- minute discussion between Toni and the Vice-president

The Pennsylvania and North Carolina State Granges paid visits to Washington during March. On March 21, two busloads of Pennsylvania Grangers rolled into Washington for two days of congressional visits and briefings at National Grange headquarters. Seventy-five Pennsylvania Grangers made the trip. After making individual visits in the morning, the Pennsylvania contingent held a luncheon in the Rayburn House Office Building. Speakers were Senator Rick Santorum and Representatives Tim Holden, Don Sherwood and George Gekas. Senator Santorum stressed the importance of passing a tax cut. He said that under the Bush tax cut proposal, the federal debt would continue to be reduced in an orderly manner and Social Security and Medicare would continue to be sufficiently funded. Both the Senator and Representative Sherwood stressed that if the money is left in Washington, it will get spent. There were several questions and extensive discussion regarding the Northeast Dairy Compact and dairy compacts in general. Santorum and the others support dairy compacts.

A few days later, 38 North Carolina Grangers traveled to Washington, DC for their annual Legislative Conference. The trip included visits to congressional offices, a luncheon with several North Carolina Congressmen and a visit to National Grange Headquarters. "Grange policy on issues that were currently before the Congress were discussed in each office. A position paper was left for review. We found each office most responsive and interested in the Grange positions, " stated North Carolina State Master Robert Caldwell. One North Carolina Granger, Carolyn Adams, was pleased upon returning home to see her Senator John Edwards on CSPAN presenting healthcare issues to the Senate just as the North Carolina Grange had discussed with him.

Fifth Annual "Legislative Fly-In" A Success

Some 35 "Legislative Fly-In 2001" participants spent three active days in Washington, DC. Starting on Sunday, April 1, they attended workshops on Grange history and using the Internet for political advocacy. Monday the 2nd saw a series of workshops related to issues in the "2001 Blueprint for Rural America." Speakers included Washington’s top experts in their fields, including a White House official. Tuesday, April 3, the participants met with their Representatives and Senators on Capitol Hill. Over 50 appointments were completed. At a special session held in the Rayburn House Office Building, Mr. Clark Ogilvie, Legislative Assistant to North Carolina Representative Bob Etheridge, told the gathered Grangers that legislation permanently extending and expanding the Northeast Dairy Compact as well as creating a new Southern Dairy Compact is gaining support in the House. At the time, the bill, which had not been introduced, had 132 co-sponsors while an opposition bill had only 60.

In summing up the busy weeks, Legislative Affairs Department Director Leroy Watson said, "There is nothing more effective than constituent contact with their elected officials. We intend to continue facilitating such contact, so that people on the Hill know the Grange is a significant player in influencing national policy."

GUEST EDITORIAL: CONGRESSMAN BOB ETHERIDGE

Like you, I believe Congress must take effective action to protect the heritage and character of rural America by working to preserve farming communities. Farming is more than a way to make a living, it is a way of life. Agriculture built my state of North Carolina, and is the backbone economically and culturally of rural communities throughout the Tar Heel State and in many other states as well. Having grown up on a farm, I understand the needs and concerns of rural citizens and have made preserving farming communities one of my top priorities as a member of the US House of Representatives.

We stand at a crossroad in agriculture in America. Increased consolidation is placing family farms at a severe disadvantage. Consumers will feel the pain if a few multi-national corporations control all the agricultural production in this country. Milk, for example, is too important to the nutritional needs of all citizens, especially the young and the elderly, to allow its price to be controlled by a few people. That’s why I support dairy compacts.

Dairy compacts establish floor prices for farmers for their fluid milk and stabilize the market for dairy farmers, a benefit for those who have been devastated by low prices. Compacts also ensure a stable and fresh supply of locally produced milk for consumers, many of whom have not benefited from lower producer prices. This is the secret that some folks in the industry don’t want you to know. While dairy farmers have been devastated by low prices, consumers have not benefited. Since 1980, retail prices for milk have risen by at least 35 percent, while farm prices have suffered.

Since July 1997, the Northeast Dairy Compact has given dairy farmers in New England more than $130 million in compact payments. All the while, milk prices in the compact region have stabilized and even have become lower than in some non-compact areas. This pact has proven to benefit not only dairy farmers in the Northeast, but their rural economies, as well as consumers. If my state of North Carolina was in a compact, dairy farmers would have received an average $45,600 in payments per farm this year. Therefore, I believe we need to expand compacts so more states can take advantage of their benefits.

To this end, I am a leading proponent and an original cosponsor of legislation which will not only extend the Northeast Dairy Compact from New York down to Maryland, it also allows other states, most located in the South, to form another dairy compact. Passing this legislation is vital to the future of my state’s dairy farmers and to the wallets of our consumers. I am sick and tired of being told to let the free market reign when I see the tears in the eyes of North Carolina family farmers that are going out of business and when the consumers in my district are facing higher milk prices. Dairy farmers nationwide are bleeding. Let the free market reign? There is no free market in agriculture. Our competitors around the globe are subsidizing their farmers, subsidizing exports and providing income support. By pushing our farmers into a free market that consists of trade barriers, subsidized competition and a lack of sound risk management tools, we’ve simply told them to play Russian Roulette with 5 bullets in the chamber.

I for one am not going to stand by and let it happen without a fight. Our farmers deserve to survive, and our consumers deserve the stability of a ready supply of locally produced milk. Dairy farmers work just as hard as farmers anywhere. If we allow our dairy farms to go bankrupt, we will pay the price at the grocery store, in lost jobs and in damage to rural economies. If you haven’t already, I urge you to contact your Congressman and Senators and tell them to get on board the Dairy Compact Express.

A ROUND OF APPLAUSE PLEASE!

State Directors are well known in their own states for projects and programs they develop, but no one else knows of their great talent. This time I am highlighting a few Directors. There are many stories to tell and so little space.

Oregon State Director Tammie Phillips continues the fight for stronger more efficient legislation to support the original legislation for the early infant hearing testing. Now it is necessary to provide funding for this law. The original bill passed under the leadership of Ruth Steeprow, former Director DA.

Ohio State Director, Sarah Grafton, is earning extra funds to support a project to send junior high age deaf students to visit Gallaudet for a summer experience.

In Massachusetts, Kathy Gibson carries a suitcase full of books around her state. These books share information for adults and children about deafness, deaf culture, hearing loss and sign language. She encourages her local Granges to make a book donation to their local library as a way to inform more people about deafness.

Idaho, former director Esther Babcock worked closely with the local deaf and blind school. She participated in holiday celebrations as well as providing funds for books for their library.

Wyoming Director Alaire Freeman says that she had spent many years trying to make contact with the schools and the deaf community. As a senior citizen she recently enrolled in an adult education course of sign language and now is making contacts with the deaf community—the Grange will be helping. She is learning sign language too!

Pat Hood, Maryland State Director and her granddaughter took a sign language course recently. Every time they go in the grocery store the little one makes the sign for "cookie". It will be with her always. Pat asked all the Masters to give the local Deaf Chairman, "just five minutes more" to educate the Grange about this Deaf Activities program. It has worked and more members are taking an interest and becoming involved.

Nebraska Director Shannon Cooksley and her committee manned a booth at a community kids fair. Hearing protectors were available for the children to try out. Sign language materials were handed out. Everyone learned the "I Love You" sign.

Pennsylvania’s Deaf Activities Program directed by Pat Beck, holds an annual sign-a-thon activity at the local mall. This involves adults and children. Poems, songs, or stories are shared. A booth and display tell the public about the Grange. PA also sponsors an essay contest with a deaf related subject for fifth graders with prizes.

Betty Boehler, Montana’s State Director, continues to "push" for infant hearing testing in rural hospitals. It is a big job and her state has many miles to cover, but she is dedicated to helping all newborns.

These are just a few of the great Deaf Activities Programs across our nation.

"SCENES FROM THE LEGISLATIVE FLY-IN"

BITS AND PIECES

New "Action Grange" Area on National Web Site

One-hundred-fifteen "Action Granges" have been identified and are in the three-year process of implementing a strategic renewal process for the Grange. To find a list of Action Granges and learn the latest developments in the renewal process, go to www.nationalgrange.org, click on "Action Granges" and you will be there.

Membership Recognition Applications Due July 31, 2001

All applications for membership recognition programs are due to State Membership Directors by July 31, 2001. Applications can be found in the Membership Action packet or by writing Roger J. Halbert, National Membership Director, 2697 Co. Hwy 4, South New Berlin, NY 13843.

Internet and Broadband Bill Introduced

On April 25, John Dingell, the Ranking Minority Member of the House Energy and Commerce Committee, introduced The Internet Freedom and Broadband Deployment Act of 2001. The legislation provides incentives to private businesses, government agencies, and private citizens to deploy advanced technologies to access the Internet in rural areas. The Grange, which supports such legislation, wrote Dingell a thank you letter.

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