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S .114 .118 S.1/41118 S.1/4.118 S.1I8.118 12.00> 12.00> 12.00> 12.00> AllS AllQ C24P A3O$ 31855 Van Dyke, Warren, Michigan 48090 S .118 .118 12.00> C24P Monday-Friday, 8-5 313-268-4100 Al4 .Offer expires 6-28-85 MFB President and AFBF Vice President Farm Unity Ideal Smith is often asked why there are policy differences among ag Doesn't Match Reality groups. "Why can't all farm organiza- No other farm organization organizations at Congressman tions unite and work together spends as much time, effort Wolpe's budget hearing and toward a common goal?" That and resources as Farm Bureau state Sen. Nick Smith's commit- question has been asked for does to assure that its policies tee hearings on the farm credit years, especially during times reflect the thinking of a majori- crisis. Every year, the boards of of stress such as we are ex- ty of its members. Yet, total Michigan Farm Bureau and Mich- periencing now. member support for every poli- igan Milk Producers Association Those who propose united ac- cy is idealistic, not realistic. 50, meet to discuss areas of com- tion by all farm organizations how can we expect total unity mon concern and to cement our say that if only agriculture between all farm organizations long-standing working relation- spoke with "one voice," all of when there is, by virtue of the ship. its problems could be solved so independent thinkers who make In mid-March, an agricultural much easier. up the memberships, disagree- summit meeting at FB Center in Sounds reasonable in theory, ment among some members of Lansing brought representa- but there are reasons why it re- an organization on certain tives of all the state's recog- mains only theory. policies? nized general farm organiza- In Michigan, with its diverse More often than not, farm or- tions together to discuss Farm agriculture, achieving complete ganizations are united in what Bill '85, an issue of crucial con- unity in the farming community they want to achieve. The lack cern to all of us. would be particularly difficult. of unity comes in how to There will be more meetings Our state has a multitude of achieve that common goal. between Farm Bureau and other organizations with goals of pro- Solving the farm credit crisis is farm organizations this year as moting the interests of pro- certainly one example of that the new farm bill is developed. ducers of a specific commodity. unity of purpose and differ- While it is unlikely that there What's good for one commodity ences in methods to solve it. will be a concensus of opinion may not be good for another, so Even though Farm Bureau has on all the complex components there's little chance of complete a proud record of defending its of Farm Bill '85, hopefully the unity there. farmer-member developed poli- shared desire to work together Farm Bureau is a general cies, it also has never been for the best farm legislation farm organization with the limited to hearing only from possible will make us as economic well-being of total those who agree with those "united" as it's feasible to be. agriculture as its top priority policies. Both the American and This continuing dialogue be- and that creates special chal- Michigan Farm Bureaus meet tween farm groups belies exag- lenges that don't always regularly with representatives gerated reports of a "split" in "match" with those of single of other farm organizations to the agricultural community. It commodity organizations. share viewpoints on issues and is only when dialogue ceases Assuming that the policies of discuss how we can work to- that common goals are for- the various farm organizations gether if policies permit. feited for the sake of jealously reflect the personal philos- Last year, at both the state guarded identity. I think we're ophies of their farmer-members, and national levels, Farm Bu- all united in assuring that won't it's easy to understand why uni- reau met with other farm organ- happen. ty in agriculture is an illusive, izations to discuss our mutual unrealistic objective. Farm concerns for Farm Bill '85. In re- neighbors may be poles apart in cent months, we have joined their beliefs on one issue, but forces with other farm groups close together on another. The on the Balanced Budget Brigade Elton R. Smith, President same holds true for their and appeared with other ag Michigan Farm Bureau organizations. 4 RURAL LIVING, APRIL 1985 COUNTRY LEDGER Looking Ahead With Dope By Connie Turbin annual "skills and leadership The Winter of Discontent charge up." There were also Controversy, uncertainty and those attending the conference Rural Living readers visit the even despair have marked the for the first time. They were not halls of Congress, the Michigan early months of 1985. Yet amid disappointed. The workshops Farm Bureau board room, a the seriousness of a farm finan- ranged from a look at new press conference and a demon- cial situation and the first methods in livestock and crop stration on the steps of the rumblings of Farm Bill '85 production to computer-aided state capitol in an article on the debate, a group of over 100 financial planning and estate winter of discontent in the farm young farmers met in Lansing planning. sector. It begins on page 10. to plan, to learn and to prepare In sessions focusing on And while the legislative de- for their future. Young Farmer and FB Women's bate goes on over credit relief The young farmers who at- programs in the county Farm measures, teams of manage- tended the 1985 Young Farmer Bureau, the participants were ment analysis experts are offer- Leader Conference, March 6-8, encouraged to do their best ing practical, one-to-one advice have a clear understanding of through participation in leader- to farm families that will get the challenges their businesses ship development and educa- them ready to apply for spring and their families face in the tional programs such as the planting loans. A report on how future. They came to the con- Discussion Meet, Outstanding MSUExtension management as- ference because they know that Young Farm Woman and Distin- sistance teams (EMAT)operate they must have access to and guished Young Farmer con- begins on page 14. apply the very best tools offered tests. Throughout the conference Marketing Advice in agriculture and their Farm Bureau organization to strength- the mood was serious, but the Turn to page 20 to learn more en their hold on a secure future. attitudes were hopeful. MFB about Farm Bureau's program Some of the participants were Young Farmer Committee Chair- of computerized information returning for their third or person David Lott of Ingham and marketing advice available fourth conference to get their County talks about hopes for with the MFB AgriCom and Agri- the future of the family farm Visor service. The article on this and the influence of the Young valuable service-to-member pro- Farmer program in planning for gram includes information on that future in a Rural Living in- how you can improve your mar- terview on page 19 of this keting skills and boost profits issue. by subscribing to one of the AgriCom options. Keeping the Faith Our mood in this month's issue of Rural Living is serious, but we are hopeful, too. Over three million farm fami- lies like yours, members of the American Farm Bureau Federa- tion, share your concerns. They are working together with you through the Farm Bureau struc- ture to urge needed relief for farming families who are strug- Elton Smith was among the bid- gling in the current credit ders at the AgriPac auction at the crisis, and to pursue a farm bill Young Farmer Leader Conference. policy that will allow farmers in Young Farmers and guests traded greenbacks for bogus bucks to bid this generation and future on a variety of items. generations to farm for profit, not for government payments. RURAL LIVING, APRIL 1985 5 LEGISLATIVE REVIEW AFBFPrepares Farm Bill '85 Legislation tary estimates that net govern- ment price support purchases of milk or the products of milk will be less than 5 billion pounds or in excess of 5.99 billion pounds, he or she shall Farm Bureau's Farm Bill adjust the support price as '85 - New farm legislation determined in this subsection should emphasize exports as it according to the scale shown helps farmers make the adjust- on the next page. ment from government pricing to the market system, AFBF Loan Leve,ls for Wheat and President Robert Delano told Feed Grains - The USDAsec- the Senate Agriculture Commit- retary shall make available to tee March 7 in outlining FB's producers non-recourse loans farm program philosophy. and purchases for each of the Delano also said the 1985 1986 through 1989 crops at a farm program should provide level equal to 75% of the simple loan rates for the basic export average domestic price received commodities - wheat, feed by farmers for each of the pre- grains, cotton, rice and soy- ceding five marketing years, ex- beans. He said target prices and cluding the high and low valued deficiency payments should years, provided that the level of help farmers through the transi- AFBFPresident Robert Delano told loans and purchases shall not the Senate Agriculture Committee tion to a more market-oriented be adjusted by more than 10% that new farm legislation should system. in any year, including the first emphasize exports as it helps The dairy purchase program year of such program. farmers make the adjustment from government pricing to the market should be continued under new system. Delano appeared before farm legislation, Delano said, Target Prices I Deficiency the committee to outline FB's farm and should be tied to an aver- Payments (Wheat I Feed program proposals. age of previous years' milk Grains) - The target price in 1986 will be frozen at 1985 price. levels. Beginning in 1987, the program. Authority for acreage The AFBF board, at its March target price shall be set at a reduction and paid diversion 4-6 meeting, adopted provisions level equal to 110% of the same programs shall be continued to be included in FB's version of average market prices used to through the 1989 crop year. the 1985 farm bill. A summary of that bill follows. determine the loan rates for the Advance Deficiency Pay- commodities but shall not be Dairy - Milk shall be sup- ments - If the USDAsecretary adjusted by more than 5% an- makes land diversion payments ported at such level equal to nually including 1987. Deficien- 90% of the simple average "all as provided for in the Agricul- cy payments will be computed ture Act of 1985 to assist in ad- milk" price received by farmers as under current law. justing the acreage of the 1986, for each of the preceding three years. This price level shall be Acreage Reduction Require- 1987, 1988 or 1989 crop of automatically revised effective ment - When total carryover of wheat, feed grains, cotton or wheat or feed grains exceeds rice, at least 50% of such a Oct. 1 of each of the years 1985 4% of annual world utilization, land diversion payment shall be through 1989, except in the or when cotton carryover ex- made available to a producer as case of 1985 when the price level revision shall occur on the ceeds 3.5 million bales, or when soon as possible after the pro- first day of the month following the total supply of rice exceeds ducer agrees to undertake the enactment of the Agriculture the normal supply by 15%, the diversion of land in return for USDAsecretary shall implement the payment. Act of 1985. If the USDAsecre- a voluntary acreage reduction (continued on page 29) 6 RURAL LIVING, APRIL 1985 EMAT also includes free legal FB's Dairy Price Support Formula and tax advice where needed, along with family living budget- Net Government Percent of Projected Adjusted ing and stress management. Purchases Support Price Support Price FB is supporting a proposal (as of March 1985) now before the Legislature to fund .an expansion of this pro- Less than 3 104 12.46 gram for the rest of this year 3.0 - 3.99 103 12.34 and also next year, if necessary. 4.0 - 4.99 102 12.22 It would include a telephone 5.0 - 5.99 100 11.98 "hotline" to the Extension Ser- 6.0 - 6.99 98 11.74 vice that any farmer could use 7.0 - 7.99 96 11.50 and be assured of confidential- More than 8.0 * ity, and job retraining should a farmer want to go into other * If CCC purchases are projected to exceed 7.99 billion work. pounds milk equivalent during the next 12 ~onths, t~e FB also urged the Michigan LJSDAsecretary is given discretionary authonty to adjust Bankers Association, PCAs and the support price by not more than 3% on April I, 1986, FmHA and other lenders to co- and for any subsequent six month period. ordinate their efforts to refi- nance, extend loans, lower in- terest rates and speed-up finan- cial aid wherever possible. part-time farmers with other FB also recommended funding sources of income. Of the re- the state Migrant Housing Con- maining 30,000, some 1,500 struction Grant program; match- (5%) are in an extremely serious ing programs for producer re- situation with debt/ asset ratios search and promotion programs; While there has not been a of over 70%. Another 4,000 requiring the Michigan Tax Com- great deal of floor activity on (13%) hav~ debt/ asset ratios of 40% to 70%. Some 5,000 (17%) mission to recognize the decline specific legislation, many com- in farmland values; and con- mittees are active and much farms have a debt/ asset ratio tinued improvement of the over- legislation is being introduced. of 11% to 40%. Sixty-five per- all business climate including Work is also in progress on a cent of the farms have no debt labor issues (workers' compen- variety of budget bills. or less than 10%• However, all sation, unemployment compen- farmers are concerned because sation, etc.) of an uncertain future. Farm Credit Crisis - Sen. It was also recognized that the Nick Smith, chairperson of the overall farm credit problem is Tax Tips - Due to the credit Senate Agriculture Committee, primarily a federal issue but the problem, some farmers are seIl- held a series of hearings to state can also be helpful both in ing all or parts of farms and determine the farm financial the short and long term. other farmers are buying. With problem in Michigan. Those For example, FB testimony the changing IRS regulations, it testifying have included agri- pointed to the need for funding is essential to have tax advice cultural economists from MSLJ to continue and expand the as the tax consequences can be and other areas, representatives MSLJExtension management as- severe. Publication 43, "Tax from farm organizations, sistance teams (EMAT)that Planning When Buying or Sell- bankers, Production Credit work with individual farm ing a Farm," is available from Associations and the Farmers families to determine the best your local Extension office. It Home Administration. course of action. Many farmers was revised in 1984 and can be Testimony showed that due to have reported that the program of great help. Michigan's diversified agricul- has made it possible for them ture, the problem is not as wide- to continue farming. Farmers spread as in many Midwestern seldom have financial and man- Beginning Farmer Loan states. agement advisors while other Program - The annual report Of the 58,000 farms in Michi- commercial businesses with from the Family Farm Develop- gan, 28,000 are operated by similar investments would not ment Authority shows that 57 think of operating without a loans totaling more than $5 source of such advice. million have been approved. Five were disqualified due to RURAL LIVING, APRIL 1985 7 - IRS regulation changes. Nearly ably spark congressional ac- 75% was used by beginning tion. Twice in the past the peo- farmers for the improvement ple, through their state legisla- and purchase of farmland; 26% tures, have used this constitu- helped purchase machinery and tional right and in each case equipment. Congress acted rather than call Qualified farmers with the re- a constitutional convention. s. P. Kish Industries, ~nc. quired experience, background and training, and a net worth of FB policy supports SJR "A." Members are urged to contact Quality Paints & Coatings less than $250,000, can borrow their state representatives to up to $250,000 for land and im- support it in the House. The Factory Direct Prices provements and $125,000 for state Senate passed it by a 20% to 30% Discount for depreciable property. 19-12 vote earlier this year. Rural Living Readers The average loan in 1984 was $86,048 with interest rates 2% -Barn and fence paints State School Aid - This is to 4% below prime. Average latex and oi I base one of the most important bud- first year interest savings were -Truck and implement enamels get items affecting farmers be- $2,820. Loans are made -Waterbase epoxy cause of its effect on property through 63 cooperating banks -Alumaroof taxes. This comes after the and are financed through the -Imtrex urethane MOA, MSUAgricultural Experi- sale of tax exempt bonds. -Fluid film rustproofer ment Station, Extension Service -Trowelcoat cement repair and other specific programs. Balanced Budget SJR A" II Gov. Blanchard has recom- Colorflex Roof Coating - This is a very important mended a $133 million in- resolution that calls on the U.S. crease, plus an additional $45.6 Roll or spray on almost any kind Congress to not only balance million for school employees' of existing root. Water cannot the federal budget but to pass retirement. Revenues in the penetrate, won't crack, peel, an amendment to the U.S. Con- school aid fund have increased break or flake. stitution mandating a federal by $233 million. Some $98 mil- -600% elongation balanced budget. Such a consti- lion of this is dependent on ap- -Covers metal roofs, asphalt or tutional amendment would go proval of earmarking 10i of the asbestos shingles to the states for approval. It cigarette tax to the fund. -Reflects heat would require 75% of the states The recommended per pupil -Stays flexible even at low temp to ratify. formula is $328 (up from $300) -Will not yellow or pick up dirt Over the years Congress has plus $68.50 (up $4.50) for each failed to balance the budget tax mill for operation. Another which has resulted in a total $28 per pupil is available at the Say YES to MICHIGAN, patronize federal debt of over $1.5 trillion high school level if six class dollars! The interest which must periods are provided. For a dis- S.P. Kish, Industr.ies, Inc. be paid each year is over $180 trict levying 32 mills (the state- 600 W. Seminary Street billion! This situation is one of wide average), the formula pro- Charlotte, Michigan 48813 the major reasons for today's vides $2,520 per student. Phone: 517-543-2650 high interest rates, high over- Increases are also recom- seas dollar value and high bud- mended for several "categori- Family owned and get deficit. This in turn harms cals" such as special education, operated since 1946 agriculture more than most vocational education, transpor- other parts of the economy. tation, academically talented, Call collect for information on Thirty-two states have passed etc. prices and delivery, or send resolutions calling on Congress Total school aid is $2,387 bil- coupon for our brochure and to either submit a constitu- lion, over $594 million of this price list. tional amendment to the states amount is for school employees' or call a constitutional conven- retirement. Federal aid for this tion for that purpose. When 34 purpose remains the same at Name states pass the resolution Con- $34.9 million. gress must act by either sub- Address mitting an amendment to the Lansing legislative topics are states or calling a convention. reviewed by Robert E. Smith, Michigan would be the 33rd Surface to be painted senior legislative counsel. state and if passed would prob- 8 RURAL LIVING, APRIL 1985 THE BEST VALUEIN GRASS HERBICIDES FOR SOYBEANS IS ALSO THE BEST PERFORMER. @ Ciba-Geigy. Ag. Div .• Box 18300. Greensboro. NC 27419