MFBPresident Elton Smith participated In Vote INo in the 1 , an AFBFconference call to learn the details of the wheat Wheat Producer Poll producer poll. Nearly a generation ago, the It is merely a "straw vote" - legislation calling' for the con- nation's wheat producers not scientifically reliable, and trol measures for wheat produc- soundly rejected an attempt to woefully lacking the basic infor- tion. Make no misfake - if sup- impose mandatory production mation that producers must ply control proponents gain this controls. Those prod~cers who have to make a thoughtful man- toehold in agriculture, they will voted in the 196.3 national agement decision. The poll will push for controls in other com- wheat referendum stood their not inform farmers in advance modities. I ground against government about how much land they Farm Bureau leaders across control of agriculture. The re- must t~lke out of wheat produc- the nation reaffirmed the organ- sounding "no" vote they deliv- tion. No information has been ization:s commitment to serve ered turned aside talk of quotas made available to indicate what the best interests of all of agri- and' production controls for all other crops coul~ be planted, culture in the 1986 Farm Bu- commodities for many years. nor how many head of livestock reau policy setting session in Now a new generation of pro- could be grazed on those idled Atlanta, Ga. Voting delegates ducers must answer'with un- acres. stated specifically that national equivocable opposition to man- Proponents of such produc- farm policy decisions must rec- datory controls. Once again, the tion controls call this a "new ognize' that all commodities are burden of choice falls on the idea" and tout the plan as the interrelated and that any shoulders of wheat producers. answer to the commodity's change in the supply, demand The 1985 farm bill requires price and supply problems. In or price of one affects the ' the USDAto poll the nation's fact, controls and quotas are others. wheat growers to detenpine the not a new idea. This 'concept In these difficult economic popularity 'of using mandatory has repeatedly failed in many times, producers may be tempt- production and marketing con- countries of the world. with ed to sacrifice their commit- trols. Although vigorously pro- many different commodities. ment to a market-oriented moted by supply control advo- , Not only are such controls not agriculture for ,short-term in- cates in Congress, this minority new, they are outmoded. Ig- come gains. In the long run, could not obtain the votes riored is the fact that U.S. however, the only way pro- necessary to make controls a agriculture competes in an in- ducers can benefit from their part of the new four-year farm ternation~:l1market. Foreign pro- farm assets is to produce. At bill. They did succeed, however, ducers are 'delighted to see the best, mandatory production and in obtaining a requirement for a U.S., the world's largest ex- marketing controls guarantee non-binding poll of wheat pro- porter, relinquish our market only short-lived profits that will ducers, which the secretary of shares to their expanded pro- disappear when the domestic agriculture must n'ow conduct duction capacity. and international markets have before July 1, 1986. The recent past provides a responded to such artificial at- The adage of separating the clear cut example. In response tempts to bolster farm income. wheat from the chaff is espe- to artificially high price supports Agriculture has a positive and cially true in the so-called poll. for U.S. wheat established in the productive future ahead. Guar- The question being polled is 1977 and 1981 ,farm legislation, antee yourself the opportunity whether producers would favor Austrialian wheat production is to produce for a profit; not production ;md marketing con- up 80% and Argentine produc- government payments. Vote trols in exc,hange for a guaran- tion has jumped 115%. "NO" in the wheat producer poll teed price equal to 125% of the Today's producer cannot af- before June 15, 19861 cost of production. Those who ford to be useq as a paw~ by interpret the polling as being a supply control advocates whose scientific, impartial determina- political objective is govern- tion of producer opinion, will ment control (or all of agricul- find that they are sadly ture. Anything less than an Elton R. Smith, President mistaken. emphatic "no" vote by wheat Michigan Farm Bureau producers would encourage RURAL LIVING, JUNE 1986 .3 FRONT & CENTER Tbe USDAbas designated July 7 -II for statewide ele~tions of individual pork pro-. ducers for possible ~ppointme.nt to an industry-wide cc;»mmlttee that will administer a promotion, research and consumer information order for pork. Candidates receiving the highest number of votes in Michigan will be eligible for appointment by the secretary of agriculture to the state's three positions on the National Pork Producers Delegate Body. The delegate body will consist of approximately 165 producers, including two or more representing each of the 50 states, and four importers. It will be responsible for administering all aspects of the pork order .. ' I ' Voting will take place at county Extension offices during regular business hours. Producers are urged to vote in person, but if not possible, an absentee voting packet containing a ballot and registration form may be obtained from Jim Epstein, National Pork Producers Election, P.O. Box 23762, Washington, D.C. 20026-3762. Absentee ballots must be postmarked by July 11 and received no later than July 18. Votes will be tallied locally by ASCSofficials and results for- warded to the USDAsecretary. , Tbe ~intb biennial Capitol Bean Day Will be beld June 10 from 11:15 a.m. to 2 p.m. on the east lawn of the state capitol. Capitol Bean Day is co-sponsored by the Michigan Bean Commission, the Gratiot County Farm Bureau Women and the Fairgrove-Labor Day Bean Festival Committee. Special guests during the celebration will include Gov. James Blanchard and several members of the state Legislature. Look for tbe big yellow and wblte Farm Bureau and affiliated companies tent at Ag Expo '86, July 22-24 at Michigan State University. The tent will be on lots 248, 249, 348 and 349, the same location as last year, and will feature exhibits by MFB, Farmers Petroleum Cooperative, Farm Bureau Insurance Group and MFB Group Purchasing. Endorsed by the North American Farm Show Council, Ag Expo will feature a 35-acre central exhibit' area. It will be open Tuesday and Wednesday from 9 a.m. to 5 p.m. and Thursday from 9 a.m. to 4 p.m. F9rmal dedication ceremonies for tbe MSUClarksville Uorticultural Experiment Station will be conducted on June 17. The dedication begins at 5 p.m. The station will be open to the public 7-9 p.m~ for tours. The station com'pI:ises 440 acres of research sites for all types of vegetable and fruit production. When it is' fully qev~loped, it will be one of the foremost hor- ticultu~al experiment stations in the wor!d. The station is located in western Ionia County along'I-96, approximately 20 miles east of ~ra.nd Rapids and 45 miles west of Lansing. Western Micbigan University is offering a number of scbolarsbips for students wbo are enrolled or plan to enroll in agriculture or agribusiness programs during the 1986 fall semester. The grants will include $400 for students who are presently in high school or a community college; two Lee O. Baker scholarships of $500 each will be awarded to current students as well as several $400 'awards. Inquiries regarding the WMUag program and scholar- ships should be directed to the Agriculture Program, Department of Consumer Resources and Technology, Western Michigan University, Kalamazoo, Mich. 49008. MFBGrpup Purcbasing's Summer Implement Par~s S~le will be June 23-July 16. Steel products available will include sickle assemblies and guards, gathering chain, combine twin point conversions, roller chain, slash points and much more. To develop a better unde~- standing of products available, a series of sale kick-off meetings will be held around the state. Dates.and locations are June 23, Aldrich's Restaurant, Frankenmuth, 7p.m.; June 24, Jackson County FB office, 7 p.m.; June 25, Tift's Restaurant, Howard City, 8 p.m.; and June 26, Grayling Holiday Inn, 7 p.m. ~or more information on the meetings or to find out the name of your local steel vendor, call your co~nty FB secretary .. Tbe annual reopening period for FB's bealtb plan subscribers is June 6-20. During this time, members will have the opportunity to make changes in their coverage and add a dependent child between the ages of 19 and 25, if eligible. All processed changes will be effec- tive with the Aug. 20 billing. Watch your mailbox for more information from Blue Cross Blue Shield of Michigan and Health Maintenance Organizations in partidpatingcounties. To apply for a change, contact your county FB secretary between June 6 and 20. 4 RURAL LIVING, JUNE 1986 LEGISLATIVE REVIEW Wheat Producer Poll to Take Place This Month Wheat Producer Poll - The have to accept modifications in Reps. Carr, Davis, Henry, Kildee, USDAwill conduct an informal their' contracts to remain eligi- Levin, Schuette, Siljander, Trax- poll of wheat producers nation- ble for the program. ler, Vander Jagt and' Wolpe.. wide to determine whether there is industry support for mandatory production controls. 1987 Budget Bill - The The poll. which will take place Senate passed a budget bill that in June, is required by the 1985 meets the Gramm-Rudman- farm bill. Results of the poll are Hollings deficit target of $144 advisory and further action is at million for next year. It remains A related announcement the discretion of the secretary to be seen whether President came from the Farm Credit Ad- of agriculture. Reagan will go along with the ministration indicating that the $13 billion in new taxes for credit agency would institute a 1987. Sen. Phil Gramm, chief debt restructuring plan for ag . Uealth Insurance Deduc- sponsor of the defiCit reduction loans. In many ways the plan tions for the Self-Employed legislation, said he will recom- would resemble FB's debt re- - By unanimous vote,. the mend the president approve the structuring pl~n. In addition, 20-member Senate Finance new taxes for the 1987 budget, the Farm Credit Administration Committee reported the tax but would oppose additional tax has announced its intention to reform legislation to the Senate increases in the following years. , lower interest rates on Federal for consideration. The bill in- Land Bank loans by 1%. cludes a provision allowing self- employed persons a tax deduc- FIFRAReauthorization - tion of one-half of their health Sen. Jesse Helms has intro- Omnibus Trade Bill - The insurance premiums. duced an FB-backed bill (S. House Ways and Means Commit- Support for the health in- 2.346) to revise the Federal In- tee has amended the omnibus surance premium deduction is secticide, Fungicide and Roden- trade bill to make treatment of also provided in a separate bill, ticide Act. ag products more consistent in S. 240.3. The bill has been co- The bill contains language antidumping and countervailing sponsored by Sen. Don Riegle. which would provide farmer li- duty cases. ability protection. The section The amendment is intended would exempt an ag producer to apply to cases such as the Dairy Buyout - A recent recent International Trade Com- or applicator from liability for court order issued in Texas any damages related to pesti- mission decision on Canadian gave the USDAuntil June 1 to cide application unless he or hogs and pork in which the ITC issue new rules for the $1.8 she "acted unreasonably with ruled that hog producers and billion program to reduce the regard to such pesticide use or packing companies did not nation's dairy herd by 1.5 application." Application in have common interest. The million animals over the next compliance with label instruc- amendment would also ensure 18 months. USDA Undersecre- tion would be considered evi- that foreign producers do not tary Daniel G. Amstutz said the dence of reasonable use.. . escape countervailing duties by court order does not end the adding a small increment of ,buyout program but will require value to an ag product through some modification. At issue is Ag Credit - At this writing, processing. interpretation of the rule 160 House members and 57 limiting slaughter of dairy U~S.senators have signed as co- The committee also unani- .animals to a total of 7% of the sponsors of the concurrent res- mously approved an amend- nation's herd in anyone year. olution (HCR .310) expressing ment introduced by Rep. Bill It is not clear whether the the sense of the Congress in Schuette which would prohibit 9,502 dairy farmers who have support of ag loan restructuring foreign agricultural interests contracted to sell more than actions by commercia] banks from receiving state or local tax 6.3.3,000cows, 216,000 heifers and the Farm Credit System. exempt bonds for the purpose and 165,000 calves during the Congressmen supporting the of establishing agricultural first marketing period would resolution include Michigan operations in the U.S. Sens. Levin and Riegle, and RURAL LIVING, JUNE 1986 5 Sales Tax Exemption Proposed for Grain Bins Sales Tax on Grain Bins - Ag Labor Camps - H.B. Bottles - Wine cooler bot- S.B. 738 and 739, which would 5538 has been introduced to tles have become a problem as exempt "portable grain bins" put into law the dates that are throw-aways. from sales tax, are on the Sen- required to provide heating fa- FB supported new regulations ate floor. Portable is defined as cilities in seasonal housing. by the Liquor Control Commis- a bin which is "designed to be Presently regulations require sion to require a deposit on disassembled without signifi- heating before May 31 and after wine coolers so they would be cant damage to its component Sept. 1. H.B. 5538 would returnable the same as beer parts." FB supports the legisla- change the September date to and soft drink containers are tion. It is opposed by the the 15th. now. However, the legislative Treasury Department. Joint Committee on Administra- Sales tax on grain bins has tive Rules defeated the pro- been an issue for some time, Water Planning Commis- posal. Committee members with one court ruling they are sion - S.B. 629 passed the believed extending the law to taxable and another court rul- Senate some time ago; it is now wine coolers by regulation, ing they are not. on the House floor. It requires would be unconstitutional. that the IS-member Great Lakes Bills are being introduced to and Water Resources Planning amend the law. H.B. 5510, Commission be increased to 16. sponsored by Rep. Charles The additional member must Mueller, would not only bring represent agriculture and would wine coolers under tt)e law, it be appointed by the governor. would also include all alcoholic The original legislation / beverage bottles. Rep. Mueller As introduced, the bills also creating the commission also believes that all grain-based contained a sales tax exemp- required ag representation. spirits should be included in tion for tile used for farm drain- However, the commission was the bottle bill, and has asked age. The Senate Finance Com- appointed by three different the attorney general for an mittee amended'this out of the people :- the governor, speaker opinion. bill, saying that tile is "per- of the House and Senate majori- FB policy maintains that such manently affixed" and becomes ty leader - and agriculture was bottles should be included a "structural part of real inadvertently left out. because they constitute a estate." Present law does not FB has insisted that agricul- serious litter problem along permit exemption for such use. ture be properly represented as roadsides and in, the fields. it probably has more at stake If the Legislature does not than any other segment of the act, there may be a petition Crop Gleaning - H.B. 4494 drive to put the issue on the economy. would extend the farmers' tax ballot. The present law, which credit for gleaning through passed in 1976, resulted from a 1988 and increase the credit petition drive and vote of the Gas Tax Refund - If passed, from the present 10% to 20%. people. FB was one of the S.B. 741 would permit farmers The credit is based on the strong leaders in that effort. to claim a gas tax refund on wholesale value of the gleaned their state income tax the same crops. FB supports the legisla- as they do now on the federal tion. income tax. Presently the tax P.A. 116 Tax Refund - H.B. Charitable organizations refund can be claimed up to 4788 has passed the House and "glean" fields and orchards for one year from date of purchase is expected to pass the Senate. leftovers or unharvested prod- by filing special forms. The bill would require that tax ucts. The gleaned food is proc- The bill was amended to allow statements 'furnished with P.A. essed and used by charitable farmers to claim the refund 116 participants' tax returns food kitchens 'located through- under either the present tax out the state. There are also 12 (continued on page 22) system or new income tax sys- food banks in Michigan which tem. FB supports the bill as provide food for charity. amended. It is now on the Senate floor. 6 RURAL LlVINO, JUNE 1986 UPPLY & DEMAND 'The Issue Behind the Buyout By Connie Turbin protection and provides some The struggle to remain profit- production controls," Ken says. able in a troubled industry has Announcement of the whole "1 like the system because it been frustrating for Elwood and herd buyout program barely leaves the decision in the hands Eleanor Schwartz. After a life- caused a ripple in the milk tank of the dairyman. If there's a time of dairying on the family's at the Gasper family dairy farm milk surplus, the support price Allegan County farm, the couple, in Ionia County. Lewis and Ken will be adjusted downward. If now 62 years old, were looking Gasper, father and son partners you want to produce that extra forward to retirement in just in the operation, say they never 10% of milk and get, say $3.00 three years. But when the an- really considered entering the (per cwt.),you can go ahead nouncement of the whole herd program, but they're concerned and do it - if you can afford buyout program was made, the that more "tinkering" with the to." Schwartzes made the decision industry isn't going to return dairying to the supply and de- mand balance that existed be- fore the 1977 farm bill. It's not the individual pro- grams that they disagree with, the men say. Rather they feel frustrated by the year-to-year "fix it" plans. "It bothers me," Ken says. "Fir,st the industry jumped on the diversion program, then the buyout and already everyone,is Year to year "tinkering" with the talking about quotas. Good ,dairy program concerns ,active managers are being buffeted by producers like Ken and Lewis these swings in the dairy pro- Gasper, partners in Lew-Max Farms. They favor a two-tier.pric- gram and those who are having ing system for base and surplus problems just don't have the milk. flexibility to respond." Ken and Lewis favor a two- Lewis agrees. "Until this prob- tiered pricing system for base 1E:~m is under control it's going and surplus milk similar to that to cost us one way or another At Lew-Max Farms in Ionia Coun- which was in effect prior to ty, the Gaspers will continue to - whether we pay for the pro- milk 80 cows twice a day, seven 1977. "The base-surplus system gram, or the support price days a week. According to Ken, gives the producer some price drops. Under the buyout pro- herd production has remained relatively constant over the past gram, we'll pay the assessment two or three years. There is no and still watch the support plan to increase production. price drop." RURAL LlVINO, JUNE 1986 7 The dairy herd buyout program accelerated retirement planning \ for Elwood and Eleanor Schwartz. If they had stayed in the dairy business, said Elwood, antici- Dairy operations will continue on the Schwartz Dairy Farm in Allegan pated equipment repair and re- County until February 1987. Their bid for the second marketing period placement costs would have fur- was part of the tax planning they discussed with a tax specialist at the ther eroded their dairy farm in- time of the program announcement. The Schwartzes will farm cash come. crops and raise beef animals for the next three years. to accelerate their retirement Both the Schwartzes and Gas- does not hesitate to add that in plan. A bid to eliminate their pers express concern that the the past six or seven years, it herd of 180 dairy animals in the whole herd buyout program is has been increasingly difficult second marketing period was yet another "bandaid" ap- to make a profit. "For us and a ,entered and accepted. proach to a complex problem of lot of other dairy people it's just "Fortunately for us, the an- matching production to de- been a case of hoping you can nouncement came at tax time mand in the marketplace. A pay the bills.~' and we talked it over pretty powerful dairy lobby works hard While these two dairy opera- thoroughly with our tax man. , to protect the income and in- tors don't hold high hopes that Without the program, we would vestments of dairy farmers and the l8-month buyout will "fix" have waited until we were both dairy processors, but these , the problems in t,he dairy indus- 65 and sold the animals at auc- farm operators agree that the try, they optimistically view it tion," Elwood says. supply_control plans developed as another opportunity for the "The program came at just by the industry and instituted industry to research and devel- the right moment for us. We by the government have not op an economically sound, have very little outstanding really been beneficial to dairy long-range plan. debt. We haven't made any ma- farmers nor to agriculture as a , Dairy farmers, both in and jor equipment purchases since whole. out of production, will be 1970, the herd size has remained "There seems to be a trend in watching and participating in stable at about 85 milking government of protecting agri- discussions about future dairy cows, and our family is grown. culture from the marketplace, policy. Whether those solutions If we had stayed in the dairy but where has it gotten us?" involve strict production con- busin~ss, we would be at the asks KEm. "I'm concerned that trols through a quota system, point' where repairs and replace- the industry may get so pro- or a support price mechanism ments would become necessary." tected that it 'will take away the that responds to consumer de- Eleanor and Elwood won't incentive to be a good manager." mand for fluid milk, the indus- give up farming entirely. For at Over the years, Elwood says, try's remaining producers aren't least the next three years, they dairying has been a good farm' likely to be satisfied with pro- will raise corn, soybeans and enterprise, providing a comfort- grams that inhibit long-range beef cattle on their l50-acre able living for his family, but he planning or which will continue "home farm." to provide artificial production incentives. 8 RURAL LIVING, JUNE 1986 Freeze Damage and ,Marketing Issues Cballenge Mlcblg~n , ... '. ... " ',' ' ' Fruit Industry Resources By Cathy J. IHrvan Extension Service. Estimates of . true on a peach tree. If you get this year's crop will be'made in a third of a bloom on a cherry Three strikes and you're out, early June, after the good tree to setfruit then you've got right? Not for Michigan's fruit blooms set fruit and damaged a crop." industry. Despite four nights of blooms drop. Hull said there is reason to be killer frosts, the USDAsecretary's "One'thing you need to keep concerned about the quality of decision to terminate the feder- in mind when you talk about this year's fruit crop. The early al marketing order for red tart killing frost is,that if there is and unseasonably warm weather cherries and foreign apple juice 100% bloom setting fruit, grow- caused tree~ in southwest and. concentrate imports depressing ers would be out taking fruit off central Michigan to bloom two U.S. apple prices, industry the trees because they could to three' weeks early, making leaders have not given up hop~ no~ carry that much fruit them especially susceptible that they can turn the situation through to a good, high quality when killer frosts hit in late around. crop," Hull said. "On an apple April and early May. It was too early to tell the ex- tree, if 10% of the flowers set tent of the frost damage as fruit that's a crop. The same is Rural Living went to press, ac- After four nights of freezing cording to Dr. Jerome Hull, hor- temperatures this spring, ticulture specialist for the MSU many growers checked blos- soms to determine the extent of damage in their orchards. RURAL LIVING, JUNE 1986 9 "An apple tree will have five attitude. "Nobody's putting any have gone either way, and made or six flowers and the first to extra money into anything until a politicaf decision to terminate open is what we refer to as the they get through bloom," he the order," Foster said. "Con- king bloom," he said. "That said. "fortunately, most of the sidering how close the vote was, bloom forms the largest, the fruit growers here have had two he could have decided to leave most desirable fruit and it's or three fairly good years in a the order in place for another also the first bud to be killed by row arid if they've been judi- five-year period. That would frost." , cious with their money, they have put everyone on notice to What is left, Hull said, are should be able to survive this." get some of the market order side blooms - less.developed issues better organized." . flowers that form smaller fruit. Cberry Marketing Order The MACMARed Tart Cherry "It's more of a challenge to to be Terminated Growers Marketing Association pollinate and set the side A short crop due to frost may is considering spearheading an bloom. But if the side bloom have positive side effects for effort to write a replacement does set fruit, we could have a the red tart cherry industry as a order, taking into accouJ:1tthe nice crop in Michigan this whole, said ,Harry A. foster; sec- pro.blems surfaced in the close year." retary-manager of the Michigan vote. "We're still analyzing our Agricultural Cooperative M~u-: options," Foster said, "but we keting Association's Red Tart realize that the 'market order Cherry Growers Division. needs change. The industry has "It could be a classic example changed in many ways since of how the federal marketing the order was written and order works," he said. "The con- adopted in 1971 and we hope to cept of the order is to hold . write an order that will reflect cherries from big crop years in those changes while continuing freezer storage and supply them to service the marketing needs to the market in the shorter of the cherry industry." crop years." Foster said one of the biggest f