.. Farm News---......... -------. THE ACTION PUBLICATI~N OF THI! MICHIGAN FARM BURE.AU VOL. 59, NO.6, JUNE, 1980 Farmers 'Invoice' Carter Oil Import Fee Would Worsen Depressed Farm Income Situation, MFB Tells Carter Administration President Jimmy Carter received an unexpected "invoice" for nearly $4 million from Michigan farmers just prior to the scheduled imposition of his 10-cents-a-gallon oil import fee. Mailed to the White House by Elton R. Smith, MFB president, the oversized mock invoice, in the amount of $3,534,597.80, represented the dollar impact the tax would have on the state's production agriculture. The 35,345,978 gallons of gasoline, upon which the invoice was based', represents only that amount declared by farmers for non-highway tax exemption for the year ending September 30, 1979, and does not include transportation of farm products to market. . At a press conference in Lansing on May 14, Smith said the in- crease will create a negative economic impact on both food pro- ducers and food cODsumers. "When a farmer's production costs rise faster than his income, he won't be able to buy that new tractor or pick-up he needs for his operation. That means less jobs. Less jobs mean less disposable income and consumers will decide to cut back on their food budget. This lower demand will not only hurt the farmer's in- come, it will send a signal to him to cut back on production. When and if the economic picture changes and demand increases, availability will be a problem for consumers. UWhat hurts farmers ultimately hurts consumers. especially here in Michigan where we are so closely in- terdependent." Smith explained. Smith said all three of Michigan's largest industries - agriculture, auto manufacturing and tourism 0- are in an economic crisis that would be dramatically worsened by the oil im- port fee. "The reason for the current depressed farm income situation is that increases in production costs are outpacing, by a large margin, increases in farm income. The import fee would only ag- gravate that ~ituation," Smith said. "Farmers can't afford the lO-cents-a-gallon tax burden on top of other government-caused problems - the 18 percent inflation, the Soviet grain embargo and numerous federal regulatory costs." According to USDA, farm income is averaging 27 percent below last year and it is predicted that production expenses will continue to advance rapidly. The tax would hurt Michigan's auto industry, he said, because it will make foreign-made, high mileage vehicles more attractive to consumers, and decrease demand for American-made autos and trucks. Michigan's tourist industry, which has attracted visitors from throughout the United States to its "Water Winter Wonderland," will also suffer from imposition of the oil import fee, he said. Smith said the increase, presented under. the guise of a conser- vation measure, was "simply a band-aid for balanced budget ef- forts when what is really needed to control inflation is complete amputation of government overspending." In a telegram to Carter explaining the invoice that would follow, Smith asked the president to address the real cause of inflation. "Inflation is not caused by farmers, labor unions, oil companies or anyone else. It is caused by government, and government can control inflation by reducing the growth of the supply of money and by making meaningful spending cuts to balance the budget and keep it balanced." MFB's telephone grid system was also activated resulting in several hundred telegrams and phone calls from farmers throughout the state to their congressmen, urging them to take ac- tion that would insure that the court decision of May 13 could not be circumvented by presidential action. The court ruled that the president overstepped his authority and could not impose the oil import fee. PAGE 2 FARM NEWS JUNE 1980 from the Desk oj the President The Reward for Doing Nothing Would you anvec;t$10 or $20 to save This was Just one Issue. but typical of so many hm~s that amount on your produc- many governmental decisions that affect tion costs? your farming operations. It is an example Rtdlculous questton? As ridiculous ae;It of the vital importance for agriculture to may sound, there are evidently farmers have friends in Lansing and Washington. who would not DC. representatives who understand and respond to our needs. You Will note, tn our front page story, In spite of this recognized need. we have that Michigan farm Bureau made a big thus far failed to prove our potential as an media splash about Pre~ldent Carter'c; effectlve force in electing public officials. 10 cents a gallon 011 Import fee Hope There are over 200 Political Action Com- I , fully, the giant invoice for nearly $4 mil- mittees In Michigan for almost every pro- lion. made some kmd of Impact on the ad- feSSIonand vocation, many with far less Farm Bureau members have been ministration if not to change their members than Michigan Farm Bureau. but urged. through various methods. to sup- mmds, (it least to get them thinking The which have been successful in raising much port AgriPac with contributions. Too few telegrams and phone calb from those of more money to support candidates of their have responded. Too few county Farm you Involved in our telephone gnd system choice Bureaus are sponsoring fundraisers such as prOVided your congressmen with proper the Saginaw County Young Farmers Pig Most of us don't like the phrase, "money dlrechon on the Issue talks." but in this case, it most certainly Roast on June 14. Those young farmers Certainly, all this action here on the does It takes money to run an effective realize the importance of good lawmakers homefront helps gain support for our POSI- polthcal campaign; there are probably to their future and are willing to invest tion I think the t{»amwork and member m many good potential candidates for poli- some effort to make it happen. volvement WdSJust tremendous and I was heal office who have to drop out of the race The excuse of "I don't want to get in- proud to be a small part of it But in the ac- for lack of adequate funding. If we are to volved in politics" is outmoded. You ARE tual arena where the real fight Wd~going have any impact at all in assuring represen- involved in politics even if you sit on the on on Capitol Hill in Washmgton, 0 C tation for agriculture in the political arena. sidelines doing nothing. Your reward for - Michigan agnculture had, in its corner, we Simply must make an investment. doing nothing will be representation for an aggr~ss\Ve,dedicated, articulate, effec- Lc1stNovember. at our annual meeting. OTHER segments of our society. segments hve representahve He was Congressman vottng delegates unanimously supported which often promote action that will be de- DaVid Stockman, deSignated "Fnend of pohcy which said uThe candidates elected trimental to your livelihood. Agnculturc" dnd supported bv AgnPac m an the 1 qso November elections will be Please - take a few moments now to the ldst electlon makmg dally deciSions that wII) vitally effect write a check to AgriPac (see details in this The court deCISionthc1thalted ImpOSItion dgnculture. Good laws begin where good issue). It's not just a contribution - ifs an of the new tax does not mean that the ~t- lc1wmakersare elected .. We urge each investment to assure representation that tie IS over The admanistratlon has an- County Farm Bureau Board of Directors to will continue to fight against 10-cents-a- nounced It Will appeal that deCision So the become active in the political action pro- gallon taxation - and much. much more. need for fnends lake Congressman Stock- grdm We urge every Farm Bureau Remember: "Good laws begin where man to be on the scene to protect our tOter- member to support AgriPac with a contri- good lawmakers are elected." est rematOs bution .. Elton R. Smith The Farm Image Our photographer saId that. cl:t el perfectlontst. she could not ~ttJe for our first attempt at Agin-ers and Hayseeds? ~ootJ ....g the fuU brCdkfast pldte elnd demanded el retake I have -.1\")n, 9' 1,'f,J1 \' • corn..: 0 'I Un14'" ,~,,"r'-' rrad O. !ou.ch d rc~ ~~fl(,~ O~ th~ PM1 o! fam 1\ swcd tr('t") K.:rt a ,",.:.artr~l'\d"19 p.:r- CChJl'lt\. !~t ~rarnb~d ~.,c a ~neaklflg ~U~LC.'on hO\4ever. got hooked on my eggs "~013 fdrm":~ ttut t~ r ~.::Iuc,)!'.o"\.,1r h1~"1'1J .(lr t"l": ... ~r\ \.:ll 0-4 th,' ~ ..:t{ort~ d.~ oft..:" III \ a'~ Ml'l.31 ~XPC""~"''::i: t!'l.af ~ c..:r'a n bu ..."l~~~ I ~h' '.0 oJ.d,.,.. • t'U! I th ...~ t~t'~ V. h~ t~~ MFB to l-t..a\ C more l"lp.ac! fh.a" an, 'A c rc~~ \.ed a note from the comboJf .19 J n~t "'~I OSHA F,~d Gr,) ,)o.d 0 "rQ~ ..\d- ho.t, -t"1 N~ D...b "'~.a 0 .. n DONNA "l~ F.a~rT\ Bur~a ... Cha' ~Jl~cr Com- m..J~":'" I~ b..:tt..:' r "I"" .. th..1"1 \ ....0'" CQ."rn'tt~~ .1.o-~~d u~ to. g'\,~I'T'",~nf .a2~"'\(~ CU' a" rn~"1 t!r Gro..ap n A'l>'?na Coun- n,'p 'lt1 'lJ .0 ... ~ t..1"m ~J..::\ p"~ .a'1 c)rt .. I, ,,, ~~ ~f l~~~ ('t' t~~ b'!1l 0 ~p}~. rO"1 TI'\.... " ~h.ar~.d ~ :.~.af' "13 a ~tt~r the~ had }.:'1 AI ~ t.Jtrn.:~ ~\ ,: ~tu .... F(J~rr "t..- <: {VI."" P o~ " bt.?~ .., .. , , ...~) 'i'lrC at'O...f ",r~tt~"1 r r"~por'l~ to an Ann {l g.,1n ~~v thJf th,\,', ~ dbpo~r of ch.:rn .....a. a..,j co"- 't Ol' P .a.)~ "~.3C • ~: ~ C..J ~d La."d~rs co ~rn" contrbufor B~, l J~": f,um~~ hdw 50 Th-.." r~.a ~.d oJ'1.:lrt I~ C"'..l" ' ~ ')I~'..:I '.::> 0"'''''., d.:: rn~g~ "'olo'o~\~r '~r\; ''-a'" ttonal effort. a Farm Bureau to ~' t 'l4: ?:o~ JUNE 1980 FARM NEWS PAGE 3 'Empty Plate Breakfast' Promotes Understanding Legislators. congressional 10 years, our agrtcultur2!1 ex- dustry is a stabilizing factor In ~ aides. government agency of- ports reached $500 million .. Michigan's economy," Stabe- ficials. consumer organization Milliken commended the now said. "It Is Imperative that heads and news media repre Farm Bureau Women through- all spgmpnts of our society sentahves were guests of farm- out the state for organizing ac more fully understand agrlcul. ers at an "Empty Plate Break- UvUies to promote an undt'r- ture, the most important oc- fast" in Lansing on April 30 standing of the contribution of cupation, as wt' mark Agricul- The event was the focal agriculture to Michigan's ture Understanding Day." point of activities marking Ag- economy According to Vivian Lott, riculture Understanding Day. Rep Dt'bbie Stabenow Ingham County dairy farmer sponsored by the Michigan (D-58th District) present~d a who serves as chairman of the Farm Bureau Women. House resolution commemora- Farm Bureau Women, Agricul A slide-tape presentation en- ting Agriculture Understanding ture Understanding Day in titled. "The Case of the Empty Day In Michigan. "With a new Michigan was part of a nation Plate." set the stage for break- decade bringing many unique wide effort to "bridge the Infor- fast table exchanges on the challenges to our state, we re mation and awareness gaps topics of agricultural chemicals. cognize and especially appred- between farm and non farm nitrites. food faddlsm. ag re- ate that our agricultural In people." search. government overregu- lation and embargoes. The \ topics, identified by Farm Vivian loti Oeft). chairman of the MFB Women's Committee. Bureau Women as the major ruetved a House Concurrent Resolution declaring April 30 as challenges facing farmers In Agriculture Understanding Day in Michigan from Rep. Debbie keeping consumers' plates full, Stabenow (D-58th District). were related to each of the pro ducts served In the ail-Michigan breakfa~t Dean Pridgeon. director of the Michigan Department of Agrl~ulture. pn~sented Gov WllIlam Mllliken\ pxecutive proclamation of April 30 as Agriculture Understanding Day. "Agriculture i~ one of the state's largest industries and re- mains a very key element in Michigan's economy," the governor ~aid in his declara- tion "Last Yedr more than $2 I About 230 Charlotle area first graders experienced the woodeD of a blllton worth of products were rarm all part or the Ag Under5tanding Day program of Eaton Coun- produced by Michigan farmers ty'. FB Women. The children vf~lted the TIrrell farm, 50uth of Char- With the addItion of transporta- lotte,. where they WlW dairy cow.... hap and lambs. beef cows and calva, plga and farm machinery 85 well as a wool spinning tion, processing and market- demonstration. the Magic::Cow and the highUght for aU - a horae- " - -:.. 109, this brought the retail value of Michigan's agnculturdl in- drawn wagon ride. Each tour la.ted one hour and pac.kdAI of .ouvenlr. were distributed at the end. Vice chairman Faye Adam uplalns to Rep. Quincy Hoffman that the ob}ecttve of the "Empty P1ate Brwfut" was to gain the aupport dustry to $12 billion. In the pa~t and understanding of key dedslon-makers regarding the chaUengea farmers lace In keeping corl$Umers' plates full. Wheat Pool Available to Farm Bureau Members The MFB Wheat Pool wUl be Shortly after delivery, the marketing program, please available to members for particIpant will receive an ad- contact your county Farm marketing their 1980 wheat vance payment from Farm Bureau office or the Commodi- crop. Bureau A final payment ls ty ActiVities and Research De- made the following spring. partment, phone 517- The pool is designed to store, handle and sell the For additional concerning thli member-only information 323-7000, 548. extension 547 or ftd811111b1em pooled wheat to increase the partidpating growers' net in- 181mportaa1 to come from their wheat. Last MICHIGAN FARM NEWS dairy Iar...... year the pool returned an ODN __ 2111, And to cat tie leedc", average of $4.07 per bushel. OIAECTOM: Dot"" t. A/ftv Baler. hgg prod\.M%J"L Ple~F~HEWI.~ ~ .." o.IIea 2. ~ u.mam. To participate in the pool, a ~. f .... .".., en "- '"as da, '"fQrrnat1grl ~ br" ~ ~ "'-'d. ~. fIl.t. Drat,I(;I J. Jemea £&yr. o....,ea '. lJ10tt R Sm6In. poult ry producers. gratn lannc:ra. wheat producer must iIgn a bon .., ~ gtf~ as 7313 w .. ~ OIIUI(;I 5. W&m~ 0...0: ~tycrop~ Wheat Program Agreement ~~~~~ OeaiIrld ".lIIc:iI LaK•• ea. ~ o.,1d 7. and J'* about C"'\':r)'OfX' who makca a Ih'ln« larmJng. ~