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S P E C I A L R E P O R T

‘Outlook’
A look at both the legis-
lative and economic issues
farmers and ranchers face
this year | 4

January 11, 2010 Vol. 89 No. 1 fbnews.org

‘Food Check- Ag puts up trade surplus, but industry


Out Week’
New promotional materials not immune to global economic woes
are available to help volunteers
Carrying a trade surplus for the China has contributed to export there are many more people who
with Food 47th year, agriculture remains a growth, as has steady demand make and sell the tractors, com-
Check- bright spot in an otherwise bleak in countries such as Canada and bines, storage bins and other
U.S. economy. In 2009, U.S. farm- Japan, FAS says. Grains and feeds farm equipment, as well as farm
Out Week ing and ranching was one of only lead the growth in agriculture’s inputs such as fuel, fertilizer and
events in four segments of the economy trade surplus with $19 billion, crop protection chemicals.
February | 2 with a trade surplus. And agri- followed by oilseeds at $16 bil- “Then there are the employees
culture leads those four with the lion and livestock, poultry and on the other end who help har-
largest trade surplus at $23 bil- dairy products at $8 billion. vest, pack, process and ship the
lion—almost triple the next larg- All that goes into getting U.S.- farm goods around the globe,”
‘Membership’ est category, transportation (ve- grown food, fuel and fiber into said Stefphanie Gambrell, Amer-
hicles, aircraft and vessels), ac- the hands of consumers in other ican Farm Bureau Federation
Farm Bureau cording to USDA’s Foreign Agri- countries is a help to the domes- economist.
gains more cultural Service (FAS). tic economy, too. Although fewer Although the trade surplus for
members | 8 Explosive demand in develop- than 2 percent of Americans di-
ing nations such as Mexico and rectly make a living farming, Ag Continued on Page 6

FB members gather for


USDA implements disaster aid program
91st annual meeting
The American Farm Bureau Federation
is welcoming to Seattle between 4,000
and 5,000 Farm Bureau members from
around the country for its 91st annual
meeting, Jan. 10-13. The last time AFBF
held its annual meeting in Seattle was
1952.

Continued on Page 8

photo by the university of arkansas Cooperative Extension

A FIELD OF SOYBEANS in Arkansas soaks in standing water due to heavy rains last fall across the Deep South. The Supplemental Re-
venue Assistance Payments program (SURE) has begun to provide agricultural disaster aid for producers with production losses in
2008. However, those with 2009 losses will have to wait longer for help.

USDA gave farmers and ranch- Gulf Coast, flooding in the Mid- face the financial consequences
ers a Christmas present on Dec. 24. west and the Northeast during the of that. But we’re just glad the
More than a year and a half spring and summer, wildfire in rules are finally out and farm-
after Congress passed the 2008 Texas in the early part of the year, ers with severe losses can start to
farm bill creating a standing agri- spring-summer tornadoes in the benefit from the SURE program.”
cultural disaster program, USDA South and Midwest and prolonged SURE provides payments to
announced it had issued rules to drought in much of the South. crop, farm-raised fish and honey
implement the Supplemental Farm Bureau is glad the program producers for losses of more than
Revenue Assistance Payments finally will be implemented, says 10 percent on a major commod-
program (SURE). Tara Smith, American Farm Bu- ity. To be eligible for the aid, a
n e w s p a p e r

USDA also announced that reau Federation farm policy farm must be in a county covered
producers could visit local Farm specialist. by a natural disaster declaration
Service Agency offices beginning “Farmers with crop and yield or a contiguous county, or have
Jan. 4 to sign up for the program losses in 2008 and much of 2009 less than half of the farm’s nor-
for crop production losses during have been waiting a long time for mal production.
the 2008 crop year. Agriculture the help that was promised in the The program is linked to crop
Secretary Tom Vilsack said pay- farm bill,” said Smith. “For some, insurance. The SURE payments
ments would begin this month. this action comes too late. If your can cover up to 90 percent of a
Major disasters in 2008 included crop was wiped out over a year
Hurricanes Gustav and Ike on the ago, then you’ve already had to Disaster Continued on Page 3
fbnews.org January 11, 2010
Viewpoint 2|

Water strife does not bode well for agriculture


T
 o have food, you must have water. percent of their cropland so as not to use wa- one of our most vital resources. If we don’t
 This may seem like common sense ter. Now, throw into the mix dozens of water- protect it now by building resources for
 to farmers, but unfortunately many related lawsuits, most filed by environmental the future, our children and grandchildren
consumers don’t connect the two. groups that promise to provide a prolonged will reap the dry, dusty consequences.
Consequently, a tug-of-war game being judicial drought even if it rains like crazy. It’s
played out in some states over water rights a tough predicament for California producers.
is pitting municipalities and residents The struggle for water can also be seen in The
against farmers and ranchers. Little do the decades-long water fight between Ala-
consumers know, they will really be on the bama, Florida and Georgia, which recently
losing end if farmers do not have adequate intensified when a federal judge ruled that
water supplies to continue producing food Georgia has few legal rights to Lake Lanier,
for our nation. the main water supply for Atlanta. Metropol-
itan Atlanta has roughly 5 million residents,
Muddying the waters with projections of 2 million more by 2030. Bob Stallman
Without the use of Lake Lanier, the govern- President
It is tough enough for producers who con- ment is already looking into further tapping American Farm Bureau Federation
tinually face drought and other natural into water resources used by farmers across
water shortages without further being im- the state—water that’s already being partial-
pacted by state water regulations. I have ly diverted to Florida and Alabama to fuel
long said the issue of water supply will be power plants and sustain a federally protected
one of the biggest challenges facing not only mussel population.
agriculture, but our country as a whole, in
the next several decades. The question is Finding resolution
when does that challenge become a crisis?
As water supplies dwindle, it only makes Not only are we facing these water chal-
sense that state and local governments lenges in the U.S. Worldwide, governments
would impose some sort of water restric- are contemplating how much more freshwa-
tions on residents. But ongoing feuds about ter sources they will need to meet population
allocation between agriculture and house- needs by 2050, when the global population is
hold use, coupled with environmental expected to reach more than 9 billion people.
groups using the opportunity to try to add Instead of all the in-house fighting we need
more restrictions to agriculture’s use of to look for resolutions here at home, like build-
water, only muddies the issue. ing reservoirs to buffer drought years. The
Take for instance what is currently hap- construction and use of irrigation reservoir
pening in California. Facing a three-year systems could divert what could potentially be
drought, the government is buckling down a major agricultural crisis. For example, Ala-
on water consumption by residents and bama recently passed legislation to create small
farmers. But while residents are being told ponds to store water during rainy seasons.
they can’t water their lawns during specific We need to continue to talk with consum-
hours of the day or wash their cars at home ers about the necessity of water to produce
while leaving on the water hose, farmers food. If we don’t, the turf fights will continue
are being forced to fallow as much as 30 and solutions will not be found. Water is

Food Check-Out Week materials focus on stretching food dollars


Farm Bureau will commemo- spearheads the national obser- their in-store demonstrations. household that needs to squeeze
rate Food Check-Out Week this vance of Food Check-Out Week, Each kit contains a copy of the as much nutrition as possible
year during the week of Feb. 21- which also includes monetary and materials needed to set up five sta- out of every grocery dollar,” ex-
27. The theme, “Stretching Your food donations to Ronald McDon- tions focusing on different foods: plained Marsha Purcell, AFBF
Grocery Dollar with Healthy, Nu- ald Houses and other charities. produce, whole grains, meat and director of program develop-
tritious Food,” will focus for the Last year, Farm Bureau Women poultry, dairy and eggs and alter- ment. “These new Supermarket
second year on helping consum- also native Kits give volunteers the tips and
ers find ways to eat healthfully gave protein tools they need to help consum-
on a tight budget, while also em- in-store sources. ers become smarter shoppers.”
phasizing that farmers and dem- For Other tips include sticking to a
ranchers are committed to pro- onstra- each shopping list, reading nutrition
ducing safe, healthy and abund- tions on station, information labels and compar-
ant food. ways to there is ing prices by using cost-per-unit
Food remains relatively afford- stretch an in- shelf stickers.
able. U.S. consumers, according the food struc- The Supermarket Kits are avail-
to USDA, spend just under 10 per- budget, tion able for $4.50 each. In addition,
cent of their disposable income such as sheet the recipe cards are available sep-
on food. The energy-driven food buying with arately for $5 for a bundle of 100.
price increases of 2008 have been frozen talking The Supermarket Kits, recipe
reversed in 2009. produce or points, cards and other 2010 Food
However, USDA reported last looking for recipe Check-Out Week promotional
November that food insecurity— fresh produce cards and materials (reusable bags, stick-
inadequate or unsure access to when it’s in season, or signage for ers, nutrition education posters
enough food for active, healthy buying whole fryers and cutting the table. For the meat and poul- and more) can be ordered online
living—has risen since the start them up at home rather than try station, there are also table at http://fb-orders.com/afbf.
of the current economic reces- paying more for already cut-up tents for various cuts of meat and Farm Bureau members should
sion in December 2007, primarily chicken. poultry showing the nutritional work with their state Farm Bu-
due to higher unemployment. This year a new Food Check- value of the cuts. reau information/public relations
The American Farm Bureau Wo- Out Week Supermarket Kit is “This information can be re- departments or Food Check-Out
men’s Leadership Committee available to help volunteers with ally helpful to the head of a Week coordinators to plan events.

FBNews
January 11, 2010 Vol. 89 No. 1
Published semimonthly, except monthly in August and December, by the
American Farm B ­ ureau Federation, 600 Maryland Ave., SW, Suite 1000W, Washington, DC 20024.
Phone: 202-406-3600. E-mail: fbnews@fb.org. Web site: http://www.fb.org.
Don Lipton, Director, Public Relations Periodical postage paid at Washington, D.C., and additional mailing offices. Subscription rate for officers
and board members of county and state Farm Bureaus—$6, which is deducted from dues.
Lynne Finnerty, Editor For other subscribers—$10.
Erin Anthony, Assistant Editor Postmaster: Send address changes to FBNews,
Phyllis Brown, Assistant Editor 600 Maryland Ave., SW, Suite 1000W, Washington, DC 20024. (ISSN 0197-5617)
January 11, 2010 fbnews.org
|3 Capitol View
Challenges faced by the U.S. delegation in Copenhagen
By Russell Williams 17 percent offering of the U.S. billion (U.S.) per year. fications for the global economy.
paled in comparison to the of- This money represents an addi- Whether this economic uphea-
One week into the recent ferings from other developed na- tional problem for the U.S. Some val would be a good thing is an-
United Nations Framework Con- tions. Europe indicated a willing- estimate that the U.S. would be other question entirely. One
vention on Climate Change ne- ness to cut emissions by 20 per- responsible for up to 40 percent thing remains certain: the Copen-
gotiations in Copenhagen, Den- cent and said it would increase of this total, making its annual hagen accord was doomed to
mark, most people understood that to 30 percent if other devel- commitment between $80 billion failure from the beginning. No
the daunting task facing the U.S. oped nations followed suit. This and $200 billion per year. Cur- amount of rhetoric from world
delegation. The realities of the level represents a reduction from rently, the U.S. Congress is con- leaders can mask the complexi-
current state of global negotia- 1990 levels, making the U.S. offer templating funding in the range ties of reaching a final agree-
tions on climate change high- equivalent to 3 percent. Many in of $1.3-2.5 billion per year, ment on climate change.
light not only the stark differ- Copenhagen fail to understand which represents only 1.6 per- You only need to look at the
ences between the U.S. and other the complexities of the U.S. legis- cent to 3 percent of the expected stalled Doha round in the World
developed nations, but to an lative process and the subsequent funding commitment. At a time Trade Organization to under-
even greater extent the devel- limitations placed on the U.S. when the U.S. is losing jobs and stand the challenges faced by
oped-developing nation divide. delegation. Nonetheless, devel- the economy remains on shaky negotiators. It would take exten-
Before the meeting began, the oped and developing nations ground, international funding sive capitulation by the U.S. and
U.S. offered an emissions reduc- alike continued to deride the U.S. of this level is not only economi- other developed nations to reach
tion target “in the range of 17 offering as woefully lacking. cally infeasible, but would be a a fully binding agreement, but
percent” based on 2005 levels. The other key sticking point re- political disaster. doing so will almost certainly en-
This offer was in line with the lated to the developed-develop- The final problem facing U.S. sure the U.S. Senate will not rat-
Waxman-Markey bill passed ear- ing nation divide, which is a negotiators is the current status ify the agreement.
lier this year by the U.S. House much larger problem for the U.S. of Intellectual Property Rights
of Representatives, and it illus- and other developed nations. De- (IPR) within the negotiations. De-
trated that President Obama had veloped nations are seeking bind- veloped nations rightly protected
learned the lesson of the Clinton ing actions by all parties, includ- the IPR of their respective busi-
administration and offered only ing those in the developing ness interests, but the developing
to agree internationally to a tar- world, using the principle of world is attempting to circum-
get that he could get accepted do- “common but differentiated re- vent this effort by claiming that
mestically. The Waxman-Markey sponsibilities.” That term refers life-saving climate mitigation
bill, coupled with the recent to the ability of developed na- technology should not be sold to
endangerment finding issued tions to take stronger actions the highest bidder and should be
by the Environmental Protec- than the developing world, but given away for free. This position
tion Agency, reveals a negotiat- that the developing world can is wholly unacceptable to the
ing path for the U.S. While final and should commit to taking U.S., but future negotiations will
passage of domestic legislation specific actions to combat cli- continue to face this challenge.
or the rapid implementation of mate change. While many devel- Regardless of your individual Russell Williams is a director of
the Clean Air Act regulations oping nations use this principle opinion about the science behind regulatory relations for the Ameri-
are anything but certain, the in their talking points, it is clear climate change, the current ad-
can Farm Bureau Federation. He
Obama administration came to that these nations feel their re- ministration or the United Na-
Copenhagen with some credibil- sponsibilities stop with the ac- tions as a whole, the effort to represented AFBF at the U.N. Cli-
ity to negotiate in good faith. ceptance of developed nation develop a binding international mate Change Conference, Dec. 7-
Unfortunately for Obama, the money, estimated to be $200-500 agreement will have huge rami- 18, 2009, in Copenhagen.

USDA implements natural disaster aid program


Continued from page 1 longer for help. USDA is imple- lated based on 60 percent of the “We think USDA should have
farm’s guaranteed revenue, de- menting the program in a way difference between the guarantee been able to implement the pro-
pending on its level of crop in- that requires final national aver- and a farm’s total revenue. The gram in way that allows for
surance coverage. age market prices to be available national average price data isn’t speedier aid and, therefore, more
Farmers and ranchers with before it sets the SURE program available until a full year after meaningful aid, to producers,”
2009 production losses must wait guarantee. Payments are calcu- the market year. said Smith. “Under the current
structure, producers will have
to wait for up to a full year after

USDA, IRS cooperate to enforce payment limits


a disaster, if not longer due to
the time it takes to develop pay-
ment calculation software pro-
Agriculture Secretary Tom eration farm policy specialist Instead, farmers and ranchers grams and issue the actual pay-
Vilsack announced on Dec. 31 Tara Smith said the announce- will be able to fill out a form ments. That is simply too long a
that USDA and the Internal ment may seem scary to farm- that goes directly to the IRS. wait.”
Revenue Service (IRS) would ers and ranchers at first, but USDA will not subject pro- Congress approved 37 ad hoc
work together to verify farm- using reliable income data to ducers to an audit if their in- disaster bills between 1988 and
ers’ and ranchers’ income and reduce fraud is a good thing. come doesn’t come close to the 2008, although such bills have
verify compliance with farm “I think everyone wants to be payment limits. become harder to enact in recent
and conservation program sure that farm program payments “That wouldn’t make a lot of years because of budget deficits
payment limitations. are going to those folks who are sense, and we’re glad they cor- and the congressional pay-as-
The limits set in the 2008 eligible,” she said. “No one wants rected that in the final rule,” you-go rule that, in some years,
farm bill are $500,000 nonfarm to see payments go where they Smith said. has required supplemental di-
adjusted gross income (AGI) aren’t supposed to go and if this AFBF provided comments on saster appropriations to be offset
for commodity and disaster system helps ensure that, that’s the proposal last April. Smith by reductions in other programs
programs; $750,000 farm aver- definitely a positive thing.” says USDA addressed the con- or additional federal revenue so
age AGI for direct payments; A silver lining, according to cerns that Farm Bureau out- as not to increase the deficit.
and $1 million nonfarm AGI Smith, is also that producers lined. For example, AFBF was In addition, the only ad hoc or
for conservation programs. won’t have to go through their concerned that once someone supplemental agricultural disaster
USDA said that written con- local USDA office to prove their was red-flagged, he or she assistance approved in 2008, other
sent would be required from income eligibility. would end up back at the local than a small aid package for farm-
each producer or payment re- “One of our concerns has al- FSA office. The opportunity to raised fish producers, was for con-
cipient for the income infor- ways been that farmers are re- provide third-party verification servation programs rather than
mation sharing to occur, no quired to bring business docu- is with the state FSA office. direct disaster payments, and the
actual tax data would be pro- mentation or tax documentation Also, USDA has confirmed that assistance provided in 2007 only
vided to USDA and program to a local Farm Service Agency no list of red-flagged produc- covered production losses for one
participants whose AGI ap- office,” Smith explained. “And ers will be subject to Freedom of three years.
pears to exceed the limits while we admire the work that of Information Act requests. During the last farm bill debate
would be given the chance to our local FSA offices do, that is “Really, they did everything there were calls for a permanent
provide third-party verifica- very sensitive information and a we asked them to do in or- program to replace ad hoc natu-
tion or other information to lot of times the security that needs der to make this work better ral disaster recovery aid. In fact,
validate their income. to be in place for that kind of in- for producers,” Smith said, SURE is only authorized through
American Farm Bureau Fed- formation just really isn’t there.” “and we appreciate that.” 2011, one year less than most
other farm bill programs.
2010 Ou
Farmers’, ranchers’ top issues return with Congress
Adam Putnam (R-Fla.) in the Sen- Acknowledging that full re- are working to put together a
Although the new session of ate and House, respectively, are peal is unlikely, agricultural bill that they hope both par-
Congress won’t open for an- not embraced across-the-board producers continue to push for ties will support. Lieberman
other week, lawmakers have in the industry. Many feel AgJobs an exemption high enough to said the nonbinding interna-
already set the legislative gears makes too few changes to the protect family-owned farms and tional agreement made dur-
in motion on a number of is- difficult H-2A program through ranches from estate taxes and a ing United Nations climate
sues important to farmers and which farmers and ranchers hire rate that doesn’t force producers change talks in Copenhagen
ranchers, including immigra- and employ foreign workers who to sell off parts of their farms. last month “is a step forward”
tion reform, trade, climate come to the U.S. temporarily to “Estate taxes can destroy fam- for their efforts.
change and the Clean Water work. ily businesses when the tax forces Agriculture’s opposition to
Act. Ron Gaskill, American Farm family members to sell assets to cap-and-trade legislation stems
Bureau Federation immigration generate money to pay the tax,” from the higher fuel, fertilizer
and labor specialist, said this explained Pat Wolff, AFBF tax and energy prices numerous
Immigration early on in the process, there’s specialist. “A higher exemption analyses show farmers and
still an opportunity for needed and lower rates will give family ranchers will pay if such poli-
Intending to soon introduce adjustments. farms and ranches a better cy becomes law. Over time,
a bill, Sens. Charles Schumer “There is the misperception chance to remain in operation these higher expenses and a
(D-N.Y.) and Lindsey Graham on Capitol Hill that farmers and from one generation to the next.” shift in land use would lead to
(R-S.C.) spent the final months ranchers are fully supportive of a decrease in food production
of 2009 drafting a compre- AgJOBS,” Gaskill explained, “but Clean Water Act in the United States.
hensive immigration reform once it’s made clear that’s not the
package. They are expected case, there’s potential for real The Clean Water Restoration Trade
to use a measure known as progress.” Act (S. 787), introduced by Sen.
AgJOBS 2009 (S. 1038, H.R. For agricultural employers, Russ Feingold (D-Wis.) in April Relying on overseas sales for
2414) as the starting point progress would be a program cre- and ready for the Senate floor a quarter of their profits, grow-
for the agricultural workforce ated by Congress that will help after being approved in June by ers are anxious for Congress
provisions of their package. them secure a legal workforce the Senate Environment and and the administration to
However, growers want to by providing meaningful oppor- Public Works Committee, would knock down trade barriers that
get the word out that the bills, tunities to citizens from other replace the words “navigable wa- prevent them from exporting
introduced by Sen. Dianne countries if qualified domestic ters” in the current Clean Water more of their goods.
Feinstein (D-Calif.) and Rep. employees are unattainable. Act with the term Currently
“waters of the awaiting con-
Estate tax United States.” A number of other issues gressional ap-
The small word that affect farmers and proval are free
Efforts to address estate taxes change would ranchers, as part of the trade agree-
started and stopped late last year, have a big effect agriculture industry and as ments with Co-
but lawmakers are not expected on farmers and taxpayers and voters, are lombia, Panama
to let current law, which elimi- ranchers by ex- also likely to surface this and Korea. AFBF
nates the estate tax for just one panding federal year. Among them are: economic anal-
year, 2010, stand. The tax is law and federal ysis indicates
•  Reauthorization of child
scheduled to return in 2011 at regulation to all that implemen-
and Women, Infants and
a 55 percent rate with a $1 mil- waters, including tation of the
lion per-person exemption. areas that are only Children (WIC) nutrition U.S.-Colombia
In December, after the Senate temporarily wet programs Trade Promo-
rejected a bill to extend for two after it’s rained, •  Reauthorization of the tion Agreement,
months the 2009 estate tax ex- explained Don highway bill the U.S.-Panama
emption of $3.5 million per per- Parrish, AFBF wa- Trade Promo-
•  Health care reform
son and the top rate of 45 percent ter specialist. If the tion Agree-
while lawmakers work on a more bill becomes •  Financial industry reform ment and the
permanent solution, Demo- law, farmers and Korea-U.S. Free
crats vowed to come back ranchers would Trade Agree-
from their holiday break likely be forced to apply for ex- ment will, respectively, boost
early this year to pass an pensive permits. exports by $800 million, $195
extension. Several key million and $1.6 billion annu-
lawmakers said they Climate change ally at full implementation.
would make the tax “Agricultural producers in
retroactive to the Although the House passed a countries such as Australia,
start of the year. sweeping cap-and-trade bill in Malaysia, New Zealand, Can-
The Senate’s ac- June, momentum for passage ada, the European Union and
tion came soon of climate change legislation China already have consider-
after the House sputtered in the Senate last fall. able access to these markets,”
passed the Per- Among the many obstacles in the explained Chris Garza, AFBF
manent Estate Farm Bureau-opposed measure’s trade specialist. “Congres-
Tax Relief path are the number of commit- sional passage of those agree-
for Families, tees in line to review it before the ments will level the playing
Farmers, and entire Senate takes a vote. field for American growers.”
Small Busi- Only one committee of the sev- Similarly, producers from
nesses Act of en or more with jurisdiction has around the globe are establish-
2009 (H.R. completed its work on a cap-and- ing relationships with custo-
4151) on trade measure. The bill reported mers in Cuba, just 90 miles off
Dec. 3. That by the Senate Environment and the U.S. coast. As a step toward
bill makes Public Works Committee (S. 1733) increasing U.S. agricultural
permanent was sponsored by committee sales to Cuba, U.S. farmers and
the 2009 chair Sen. Barbara Boxer (D-Calif.) ranchers are urging policymak-
estate tax ex- and Sen. John Kerry (D-Mass.). ers to lift all restrictions on
emption Sens. Joe Lieberman (I-Conn.) agricultural exports to the is-
and top rate. and Graham, along with Kerry, land nation.
January 11, 2010
utlook
S P E C I A L R E P O R T

Production costs are forecast to rise in 2010


Ask an economist what might “Not as high as in 2007-2008,” he
happen with the price of any said, “but higher than last year.”
given product, and he or she like- Given prices and yields that
ly will point to the price of oil. So remain high relative to just a
it’s no surprise that Darin New- few years ago, “prices that can
som, DTN senior analyst, thinks be locked in,” Newsom says, and
that higher oil prices will be the input prices that can be locked in
reason for slightly higher farm now as well, he thinks the input
input costs in 2010. cost situation is manageable.
“You could look at natural gas, “It looks attractive to go ahead
nitrogen fertilizer, heating oil and get some forward contract-
and diesel that’s priced off of ing done,” he added.
that. Ultimately, it comes back Livestock producers have been
down to the crude oil market,” waiting for a dip-down in feed
Newsom said. costs. Newsom says they could
Oil was priced at over $81 per see one this winter.
barrel on Jan. 4, the first business “What I’d probably do is cover
day of 2010. That’s up from $71 my 2010 needs for feed once the
a barrel in early December 2009 South American crop comes in”
and from a four-year low of $36 in early spring, he said.
in December 2008 (after crashing Bob Young, American Farm Bu-
from a record high of over $125 reau Federation chief economist,
a barrel in July 2008). points out that 2009 net farm in- riculture, says Pat O’Brien, AFBF He agrees with Newsom that
In 2010, the world oil price is come was among the lowest 10 senior economist. Historically, forward contracting is the farm-
forecast to climb further as the levels observed since 1945. He says farmers and ranchers have pro- er’s main defense.
economy rebounds and an unusu- farmers are still recovering from duced a lot of their own inputs. “USDA’s farm cost surveys
ally cold winter grips much of the the high production expenses of That’s no longer the case, he says. three to four years ago showed
U.S. So how much of an increase 2008, an effect that he calls the Farmers today have to pay out that about 50 percent of produc-
in farm input prices are we talk- “2008 cost-lag.” more money for manufactured ers spot-purchased inputs. If they
ing? It depends, says Newsom. “What happened is that com- inputs—fertilizer, seeds, pesti- were going to plant next week,
“Long term, we could see lower modity prices fell from their cides, lime, machinery and, of they might go out the weekend
prices,” he predicted. “However, 2007 to early-2008 highs, but in- course, energy. before that and buy the inputs
as we get into spring and summer, put costs didn’t decline anywhere “The manufactured category of they needed. You can’t farm prof-
I would expect all input costs to be near as fast,” he explained. “Even inputs is expanding faster than it itably that way anymore,” he
higher than they are right now.” if commodity prices are still rel- ever has,” he said. “Over the past said. “You have to take advan-
Newsom says it’s tough to pin atively high, farm income is get- three years, input prices have be- tage of forward contracting. A
down the lag time for higher en- ting squeezed. Many farmers gun to take on a life of their own. farmer can earn as much sitting
ergy prices to result in higher fer- have long since lost any windfall They used to move in tandem in his office doing cost analyses,
tilizer prices. But, by spring, he from the high commodity prices with commodity prices, but over locking in the best prices, as he
says farmers certainly are going of 18 months ago.” about the last three years we’ve earns from sitting on the tractor
to see the price of fertilizer go up. This isn’t your grandfather’s ag- seen that trend change, as well.” seat.”

Signs of economic recovery bode well for agriculture


The global economic recession ing countries, an increasingly im- change but a refreshing one. Un- tural export growth. With the
has taken its toll on food demand portant market for U.S. agricul- employment is expected to in- downturn in the global economy
and farm commodity prices. As tural exports, is forecast at 5.6 crease minutely for December; there was a flight by investors
penny-pinching consumers ate percent annually during 2009-18, however, the pace of job losses to the dollar starting in August
out less and bought less expen- according to USDA’s long-term is slowing and a Labor Depart- 2008, but since April of last year
sive cuts of meat last year, prices projections. ment survey that will be out soon the dollar has once again turned
fell for most commodities, espe- In addition, the Bureau of La- after this paper goes to press is to the long-term trend of losing
cially meat and dairy products. bor Statistics jobs report for No- expected to show no net loss of value. Big budget deficits and
There are signs that 2010 and vember showed the unemploy- jobs in December, the best job action by the Federal Reserve to
the next few years could be bet- ment rate dropping, from 10.2 news since this recession began. keep interest rates low will prob-
ter. Economic growth in develop- percent to 10 percent—not a sea Retail sales also increased in No- ably continue to keep the dollar
vember and October, up 1.3 per- weak and U.S. commodity prices
cent and 1.1 percent, respectively. competitive in other markets.
“As more positive economic in- While population growth in
dicators come out, consumers both the developing and devel-
will feel more confident and have oped world is predicted to slow,
a little more cash to spend, or be according to USDA’s long-term
willing to part with it,” said Stef- projections, continued income
phanie Gambrell, American Farm growth in developing countries
Bureau Federation economist. will lead to further diversifica-
Bob Young, AFBF chief econo- tion of diets, increasing import
mist, says all of this is very good demand for livestock feed and
news for farmers and ranchers. high-value food products, USDA
“Supplies are getting positioned says.
so that when the market does “There’s no getting around the
pick up, we should be able to sell economic pain that a lot of farm-
product and move prices up- ers and ranchers have faced over
ward,” he said. the last year,” Young said. “But
Another positive indicator is for those who can stick things
the value of the U.S. dollar. The out in 2010, it looks as though
dollar depreciated 20 percent be- the turnaround is coming. It’s
tween February 2002 and April not a drastic upswing, but it
2008, facilitating U.S. agricul- is positive and we’ll take it.”
fbnews.org January 11, 2010
Capitol View 6|

Oklahoma farmer appointed to organics board


Oklahoma Farm Bureau mem- Mike Spradling in particular, for
ber Annette Riherd will begin supporting her appointment.
serving a five-year term on the “Organic food has an impor-
National Organic Standards tant role to play in agriculture,”
Board (NOSB) on Jan. 24. Spradling commented, “and we
Riherd and her husband op- are certainly proud to have a Tul-
erate a certified organic fruit, sa County Farm Bureau member
produce and transplant busi- representing us on the national
ness in Oologah, Okla., about board.”
30 miles northeast of Tulsa. Riherd has been taking part in
She says she is honored to be conference calls on NOSB business
one of four farmers/growers since her appointment in Septem-
on the 15-member board. ber. One of the first orders of busi-
“I am excited to fill one of ness was deciding which of several
the farmer positions and be sub-boards she would be on. She
the first person from Okla- was asked to sit on the livestock,
homa to serve on the board,” crops and policy sub-boards.
she said. “I want to use my The NOSB advises the secretary
experience as a smaller farmer of agriculture on organic stan-
to be a voice on the board dards and other aspects of the
and help with the guidance national organic program. Other
and rulemaking process.” members of the board represent
Riherd expressed appre- handlers/processors, retailers, Annette Riherd of Tulsa County, Okla., says she is excited to be the first Oklaho-
ciation to Oklahoma Farm scientists and consumer and en- man appointed to the National Organic Standards Board, which advises the sec-
Bureau, and OFB President vironmental groups. retary of agriculture on standards of organic production.

AFBF president appoints new YF&R committee members


American Farm Bureau Federa- said AFBF President Bob Stallman. Cooley, Georgia; Jim and Andrea annual meeting, along with plan-
tion President Bob Stallman last There are 16 positions on the Schultz, New York; Mark and ning and implementation of the
month appointed eight new com- committee with members repre- Valerie Wagner, North Dakota; YF&R Leadership Conference held
mittee members for two-year senting all four regions of the Ryan and Nikki McClure, Ohio; in February. They will be given
terms to the AFBF Young Farm- United States. The new 2010-2012 and Chalsey Kortes, Wyoming. the tools necessary to become
ers & Ranchers Committee. The members are: Jason Bunting, Illi- “I am very proud of these new leaders through intensive train-
YF&R program is composed of nois; Derek Sawyer, Kansas; members and their accomplish- ing on issues along with the hon-
Farm Bureau members between Daniel and Alison Smith, Ken- ments so far in their Farm Bureau ing of other professional skills.
the ages of 18 and 35. The pro- tucky; Ben and Kelsey LaCross, careers,” said Stallman. “I look Committee members attend
gram’s goal is to provide leader- Michigan; Dan and Seena Gless- forward to the work they will do two additional business meetings
ship development to build a more ing, Minnesota; Patrick and Kim on the YF&R Committee as well a year. And every other year, a
effective Farm Bureau through Swindoll, Mississippi; Dustin as watching them become even meeting is held in Washington,
education, problem solv- Ladenburger, Nebraska; and Scott stronger and more capable lead- D.C., where they participate in a
ing and network building. and Mendy Sink, Virginia. They ers for American agriculture.” “Day on the Hill” event, visiting
“I am always impressed with will be joining Will and Joni Committee members are respon- with each of their members of
the quality of people who are Gilmer, Alabama; Matt and Erin sible for the YF&R program plan- Congress, helping to inform them
nominated for these positions Sweet, California; Roland Yee, ning which includes the operation about the issues facing agricul-
and this year is no exception,” Florida; Leighton and Brenda of YF&R contests during AFBF’s ture in America.

Ag puts up trade surplus, but industry not immune to recession


Continued from page 1 USDA estimates farm income is inflation, Gambrell pointed out. While 2009 was one of the
U.S. agriculture has jumped con- expected to be down about 34.5 “When you account for infla- toughest years in a long time for
siderably since 2006, the 2009 percent—$30 billion—in 2009. Spe- tion, net farm income for 2009 is agriculture, in terms of total net
surplus is down from the previ- cifically, the value of crop produc- actually among the lowest in farm income, the decade did have
ous year. And that surplus is ex- tion is estimated at 18.3 percent decades,” she explained. high points, Gambrell emphasized.
pected to shrink further in 2010 lower than 2008 at $164.2 billion. In addition, although input costs “In looking at trends in both
as the global economy just be- The value of livestock production are down by 15.5 percent, they today’s dollars and accounting
gins to creep back and American is estimated at 22.4 percent lower don’t exceed the drop in income. for inflation, 2004, 2005, 2007
consumers again demand more than 2008’s $117.4 billion. “Expenses may have decreased, and 2008 all fall into the top 25
high-valued agricultural imports. The department emphasizes that but they were so high for the past net farm income years between
“That’s fairly representative of even with the drop, the farm in- few years that it will take a while 1945 and 2009,” she said. “Agri-
the mixed bag of economic news come level of $57 billion will be for them to drop enough that they culture continues to make pro-
for farmers and ranchers,” Gam- the eighth largest on record, but balance out with the prices grow- ductivity gains and has done great
brell noted. that doesn’t take into account ers are earning,” Gambrell said. things over the past 10 years.”

New Farm Bureau presidents


Four state Farm Bureaus elected new presidents in late 2009. Pictured left to right
are Paul Wenger, California Farm Bureau president; Patricia (Pat) Langenfelder,
Maryland Farm Bureau president; and Robert (Bob) Hammond, Maine Farm
Bureau president. Not pictured is A. Richard (Rich) Bonanno, Massachusetts Farm
Bureau president. Wenger is a third-generation farmer from Modesto, where he
raises walnuts and almonds. Langenfelder is a partner in Grand View Farm LLC in
Kent County, Md., with her husband and three adult children. They raise corn, soy-
beans, wheat and barley, and operate a farrow-to-finish swine farm. Hammond of
Harrington, Maine, raises blueberries and cranberries, as well as dabbles in other
crops such as shiitake mushrooms and organic vegetables. He hopes soon to start
an agri-tourism operation on his farm. Bonanno operates a diversified vegetable
and horticulture farm in Essex County, Mass.
January 11, 2010 fbnews.org
|7 State FB Links
New York FB knocks down myths about farm labor
A new video from New York on average $11.75 per hour, in- Norton and Matteson went New York Assembly. Pending
Farm Bureau tackles some of the cluding benefits such as health into detail about the many farm in the Senate, the Farm Work-
many myths surrounding farm care, workers’ compensation, re- labor rules and regulations that ers Fair Labor Practices Act
workers. The eight-minute video tirement, housing, payment of farmers must follow, including would, among other things, re-
includes clips from a recent pub- utility costs in their homes, food those regarding housing, wages quire mandatory payment of
lic hearing that addressed a host allowances, farm investment op- and workers’ compensation. overtime to farm workers, make
of agriculture issues, including la- portunities and more. “I would argue that we are the mandatory the payment of un-
bor. The hearing was conducted “[It’s a] better benefits package most regulated industry in the employment insurance for small
in November in Jefferson County, than I get,” Matteson said. state of New York,” Norton said. farm employers and mandate
in the northwest part of the state, Addressing the issue of overtime Additionally, the Catholic collective bargaining and union
by New York Senate Agriculture and pay, Norton and Maloney Charities’ Deacon David Sweenie organizing.
Committee Chairman Darrel pointed out that agriculture is not discussed the need to enforce cur- NYFB estimates the bill would
Aubertine. an eight-hour, Monday-Friday in- rent laws, and talked about how cost the state’s farm families more
Panelists included experts in la- dustry. Matteson told the commit- farm workers do, indeed, vote than $200 million annually.
bor law, farmers, farm workers tee about a 2008 Watertown Daily with their feet to find the best “The bill completely ignores
and farm worker advocates. The Times article in which Hispanic employment situation. that farming is a seasonal busi-
video selection features Dean Nor- farm workers told a reporter they At the close of the video, NYFB ness, dependent on Mother Na-
ton, NYFB president; Jay Matteson, would work even more than the emphasizes that all farmers are ture,” Norton said. “This is an
Jefferson County agricultural co- 12 hours, six-days per week they also farm workers. In addition, anti-farm, anti-farm worker, anti-
ordinator; and Tom Maloney from do now, if their farmer-employers farmers put in the same or more local agriculture measure that
Cornell Cooperative Extension. would let them. time in the fields as any em- will devastate the state’s agricul-
Dispelling the myth that hired “This is not a case of employees ployee, but in many cases they tural community and ultimately
farm employees are forced to being forced to work long hours, have fewer protections than hurt downstate consumers.”
work long hours with little or no it is the nature of the job,” Mat- hired farm workers. “Myths Vs. Facts About Farm-
pay, in the video Matteson cited teson explained. “But it is also The farm labor section of the workers In New York” can be
a Cornell dairy-farm business what they want because they are November hearing specifically viewed at www.youtube.com.
summary that determined that building homes and supporting addressed an NYFB-opposed bill Search for the title of the video
dairy workers in New York make families.” that was passed last June by the or “New York Farm Bureau.”

State Focus Newsmakers


North Dakota Farm Bureau recently
announced staff changes. Staci Lee
joined the organization as leader-
ship development assistant. She
will also serve as safety coordinator.
Lee has a bachelor’s degree in food
Missouri Farm Bureau opposes S.D. rancher turns protest into Wyoming FB members help science from North Dakota State
tax increase on farmers ag promotion opportunity feed thousands in need University (NDSU) and has chaired a
variety of fundraising and commu-
The Missouri State Tax Commission last A protest by the People for the Ethical The Wyoming Food Bank of the Rockies nity activities. John Jacobson has
month approved as much as a 29 per- Treatment of Animals gave Troy Hadrick, was the recipient of $1,725 in monetary been named director of leadership
cent increase in farmland assessments president of the Butte/Harding/Lawrence donations, 401 pounds of food and 18 development. He will also continue
which, according to the Missouri Farm (South Dakota) County Farm Bureau, the working man hours from the Wyoming in his role as staff coordinator for
Bureau, will substantially increase prop- chance to tell the media that not only Farm Bureau in November. The monetary the NDSU Collegiate Farm Bureau.
erty taxes on farmers in the state. Every was the PETA effort misguided, but that and food donations are enough to pro-
two years, the productivity values used taking excellent care of their animals is vide 12,388 meals to Wyoming families in Kentucky Farm Bureau has two
for property tax assessments are re- the highest priority for livestock produc- need. The food and funding donations new division directors. B. Todd
viewed and adopted by the commission. ers. Last month, Hadrick and a number of were made by WFB members at the Bright has been named director of
State law provides that agricultural land Farm Bureau members were on hand at group’s annual meeting, Nov. 12-14. In communication and Jeff Harper
be assessed on its productivity value, not a PETA event in downtown Rapid City. At addition, WFB’s Young Farmer and is director of the new commod-
market value, thereby assessing farm- the demonstration to protest what it said Rancher Committee members donated ity division, which was formed to
land on its true worth for agricultural was the documented mistreatment of their time to sort and count food on the expand services. Bright went to KFB
production, rather than development, cows at some dairy farms, PETA poured food bank warehouse floor. “It was a from Frost Brown Todd, a law firm
speculation or other purposes. “As we milk down a gutter. “If activist groups great feeling to know we were helping where he worked for more than
stated to the State Tax Commission, like PETA and the Humane Society of the out people in need,” said Laura Forn- four years as marketing director.
many Missouri farm and ranch families United States [HSUS] see an incident of strom, YF&R member. “When we first ar- Harper previously served as KFB’s
are facing financial strain like they have animal abuse, they should work with the rived at the food bank, it was overwhelm- commodity department director for
never seen,” said MFB President Charlie animal’s owner to correct the situation, ing to see what needed to be done. the past six years.
Kruse. “Missouri farmers are carrying rather than exploit that event to further However, once we started, our team-
some of the highest debt load in the their agenda of a vegan society,” Had- working traits came out and we finished Mark Morris has joined Mississippi
nation, and clearly they cannot be rick said. “Milk and dairy products have the job quickly.” The WFB YF&R commit- Farm Bureau as communications
expected to shoulder a tax increase.” The long been a staple in healthy diets.” In tee works with its counterpart on the specialist. A graduate of the Univer-
Missouri General Assembly has 60 calen- conjunction with Hadrick’s efforts, South national level, the American Farm Bureau sity of Southern Mississippi with a
dar days from the beginning of the 2010 Dakota Farm Bureau issued a news re- Young Farmers and Ranchers Committee, radio/TV/film degree, Morris’ experi-
legislative session to approve a concur- lease explaining the importance of good on the “Harvest for All” project through ence includes 14 years at WAPT-TV,
rent resolution rejecting the proposed animal care and pledging to donate milk which young producers donate time, the ABC affiliate in Jackson.
changes made by the commission. to a local food bank. money and food to combat hunger.

Don’t CAP Our Future


April Damhof of Kandiyohi County, Minn., places a “Don’t CAP Our Future” sticker she has signed onto a traditional
farmer’s cap. More than 200 caps were signed by Minnesota Farm Bureau voting delegates on Nov. 20 at their annual
meeting in Brooklyn Park, Minn. In addition, nearly 170 attendees signed a “Don’t CAP Our Future” banner petition.
“Don’t CAP Our Future” is a grassroots Farm Bureau campaign to make members of Congress aware that climate cap-
and-trade legislation would raise farmers’ and ranchers’ production costs and reduce U.S. agricultural production
capacity. Thousands of farm caps, post cards and petitions are being signed by Farm Bureau members around the
country and will be delivered to members of Congress in early 2010.
fbnews.org January 11, 2010
Grassroots 8|

Farm Bureau reports 49th year of membership growth


Farm Bureau’s national mem- with significant growth included vania, South Carolina, South West Virginia, Wisconsin and
bership rose to 6,277,664 mem- Kentucky, which grew by 12,418 Dakota, Tennessee, Texas, Utah, Wyoming. Puerto Rico Farm
ber families in 2009, marking members to 483,352; Tennessee, Vermont, Virginia, Washington, Bureau also achieved quota.
49 consecutive years of mem- which grew by 10,162 members
bership growth. State Farm Bu-
reaus overall reported a total
to 646,240; North Carolina,
which gained 9,592 members to 2009 final membership
34,378 more member families 508,426; and Utah, which grew
H Alabama H Indiana H Nebraska Rhode Island
in 2009 than in 2008. by 5,897 members to 27,313.
440,478 281,336 51,450 2,352
American Farm Bureau Fed- Tennessee Farm Bureau remains
eration President Bob Stallman the largest in the nation. H Alaska H Iowa Nevada H South Carolina
said the 2009 membership Utah Farm Bureau had the sin- 354 154,273 20,072 110,750
growth is especially note- gle largest percentage member- H Arizona H Kansas New Hampshire H South Dakota
worthy considering the con- ship gain, 27.5 percent. Round- 19,754 114,197 3,618 10,502
tinuing economic challenges ing out the top five by percentage
facing the nation. He credited of growth were West Virginia Arkansas H Kentucky New Jersey H Tennessee
agricultural advocacy pro- (11.6 percent), South Dakota 220,970 483,352 12,724 646,240
grams at the local, state and (11.2 percent), Montana (7.7 H California H Louisiana H New Mexico H Texas
national levels and services percent) and Maryland (7 per- 85,356 147,901 14,491 439,260
offered by state Farm Bureaus cent). The West had the largest
for the organization’s overall percentage of growth, 3 percent. Colorado Maine New York H Utah
membership growth. Nineteen state Farm Bureaus 21,870 2,225 28,335 27,313
“Farm Bureau members and earned Navigator Awards for ex- H Connecticut H Maryland H North Carolina H Vermont
the county and state leaders ceptional membership growth: 5,027 32,782 508,426 3,333
they elect are the driving force Arizona, Florida, Hawaii, Kansas,
H Delaware H Massachusetts H North Dakota H Virginia
behind our membership Kentucky, Maryland, Montana,
4,500 6,359 26,491 149,857
growth,” Stallman said. “Mem- Nebraska, New Mexico, North
bers are the lifeblood of true, Carolina, Oregon, Pennsylvania, H Florida Michigan H Ohio H Washington
grassroots organizations such South Carolina, South Dakota, 141,283 190,001 235,064 38,384
as Farm Bureau. As AFBF heads Tennessee, Texas, Utah, Wash- Georgia H Minnesota H Oklahoma H West Virginia
into its 91st year, this member- ington and West Virginia. 408,173 27,936 170,218 21,218
ship accomplishment sets the Thirty-nine Forty state Farm
stage for even greater achieve- Bureaus achieved 2009 member- H Hawaii Mississippi H Oregon H Wisconsin
ments in policy, programs and ship quota: Alabama, Alaska, 1,664 209,376 56,913 42,465
services, all of which are devel- Arizona, California, Connecti- H Idaho H Missouri H Pennsylvania H Wyoming
oped with the goal of improv- cut, Delaware, Florida, Hawaii, 63,090 101,917 46,697 10,714
ing member families’ busi- Idaho, Illinois, Indiana, Iowa,
H Illinois H Montana H Puerto Rico
nesses and standards of living.” Kansas, Kentucky, Louisiana,
421, 919 14,000 684
Texas Farm Bureau had the Maryland, Massachusetts, Min-
single largest gain of 17,101 nesota, Missouri, Montana,
H Achieved membership quota
members, bringing its mem- Nebraska, New Mexico, North

H  AFBF  —  6,277,664
bership to 439,260. Carolina, North Dakota, Ohio,
Other state organizations Oklahoma, Oregon, Pennsyl-

Farm Bureau members gather for 91st annual meeting


Continued from page 1 of North America connecting the by football legend Terry Brad- Rancher awards and recognition
The annual meeting offers Atlantic and Pacific oceans. Presi- shaw, during the Closing General of retiring AFBF board members
Farm Bureau members informa- dent Thomas Jefferson in 1803 Session on Monday, Jan. 11, at also will take place during the
tional conferences on the issues sent American explorers Meri- 3 p.m. Closing General Session.
shaping agriculture today and in wether Lewis and William Clark In addition, the Closing Gen- To follow these and other
the future, and gives Farm Bu- out West to survey the territory eral Session will include presen- events, awards, informational
reau leaders from around the U.S. and look for the water passage tation of the AFBF Distinguished sessions and more, visit the AFBF
the opportunity to chart the na- to facilitate trade. While Lewis Service Awards (DSA). The DSA Web site (www.fb.org) or fol-
tional organization’s course and Clark did not discover a recognizes a career of service low updates on the AFBF page
through 2010. convenient water passage to the to agriculture and is the high- on Facebook (www.facebook.
The theme for this year’s an- Pacific, their expedition did suc- est honor that AFBF bestows on com/AmericanFarmBureau) and
nual meeting is “Passage to Suc- ceed in giving Americans a bet- an individual. Presentation of the AFBF Twitter feed (http://
cess,” a reference to the north- ter understanding of the un- the national Young Farmer and twitter.com/FarmBureau).
west passage—a fabled water mapped West, paving the way for
route through the northern part the nation’s continued growth.
“Similar to the accomplish-

Corner Post
ments of Lewis and Clark’s ex-
pedition, Farm Bureau members
can map out professional and
personal growth for themselves
by gaining a better understand-
ing of trends and developments
U.S. Crude Oil Prices
via the informational confer- Dollars per barrel
ences we have planned,” said
AFBF President Bob Stallman.
“And, by developing sound poli-
cies at the annual meeting, Farm
Bureau voting delegates can
keep the organization on its own
passage to success as we pro-
duce food, fiber and fuel for the
world.”
This year’s 369 voting delegates
from all 50 states and Puerto Rico
will meet beginning Tuesday,
Jan. 12, to vote on national Farm
Bureau policy.
The annual meeting will also
feature the annual address by
Stallman, at the Opening General
Session on Sunday, Jan. 10, at Source: USDA
9:30 a.m., and a keynote address

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