MICHIGAN FARM NEWS SERVING OVER 61,000 FARM BUREAU FAMILIES JULY 1, 1975 With one amendment State study report approved Michigan Farm Bureau district, plus four at-large delegates at MFB's June 28 Special representatives appointed by the Delegate Session voted to accept MFB president and approved by the recommendations of the State the board. The chairman and Study Committee (see May 1975 vice-chairman will be elected by Farm News for full text of the committee from within the recommendations) with an committee. This recommendation will require a by-laws change at amendment to the section on a the 1975 annual meeting. dues increase. In local affairs, the delegates After over a half hour of debate approved the addition of a local the delegates" voted to amend the affairs staff person who will be a Study Committee's dues recom- local government specialist. This mendation from a $5 increase for person will direct Farm Bureau each of the next three years to a group; through government red single $10 increase beginning with tape so that they may be more the 1976 membership year. effective in dealing with local The $10 increase will make 1976 government problems. MFB dues $35 per member family. In approving expansion of the $4 of the $10will go to the Counties. regional representative staff by Although there was considerable four, the delegates accepted a debate on several other areas of recommerxlation which noted that Study Committee recom- the current staff of regional men menddLh .."lS, aD other motions to are spread too thin and must waste amend the rep. In samples of home-baked bread,. 1971, Heim returned to l"arm John Heim cinnamon rolls, cider, cheese, Bureau Services' Feed Field Staff, and was asked to come to the Lansing office in June, 1974 to handle special problems connected had a lot of contact with feed patrons, and he is familiar with their needs. We are confident that ~~~~:~O;ae~e:iIl ::d ~'W~~f;Lf'~,a:~.:.;~~,. rea:: ..... on Carl Guenther's show on WKZO- This visitor to the Woodland Mall Farm Fair discovered that farm :;."t: with the feed contamination John Heim will continue to uphold TV, July 12. odors are quite different than city odors. tragedy. the best traditions of cooperative "We are proud to announce this service to Michigan farmers." appointment," said Shepard, "because John Heim brings into his new pasition a great deal of Heim, his wife Charlene and three children presently live in Traverse City, plan to move to New commission to experience and knowledge. He has Lansing in the near future. FBS ioins feed co-op control futures trading The head of the Commodity Farm Bureau services, Inc. is possibly manufacture various Futures Trading Commission said one of fourteen charter members animal feed ingredients. June 6 in Chicago that ''to make of a new cooperative organization Other charter members of CF the system work" is the primary to supply animal feed ingredients. Feeds, Inc. include: CENEX; goal of the government's newest FCX, Inc.; Indiana Farm Bureau regulatory agency. Speaking at the Chicago Board of The new interregional cO-op, Cooperative Association, Inc.; known as CF Feeds, Inc. will help Intermountain Farmers Trade, CFTC Chairman William T. Bagley said he wants the new assure availability of needed feed Association; Landmark, Inc.; ingredients for members. CF Midland .Cooperatives, Inc.; group to "become a pasitive force Feeds, managed by the Missouri Farmers Association; for innovatiOn and excellence in cooperative-owned company CF Southern States Cooperative, Inc.; the futures trading field," using the new powers delegated by Industries, will initially be Ohio Farmers and Grain Supply responsible for procurement and Association; Western Farmers Congress in effective policy and problem-solving roles. distribution of feed phosphates to Association; Land 0' Lakes, Inc.; "I share your feeling that futures member c~ops. Future plans call Agway, Inc.; and Tennessee Photo by Jim Phillips trading helps the entire economy of Commodity futures contracts are traded amid apparent chaos at the for the company to distribute and F:.anners Cooperative. the United States run more Chicago Board of Trade. smoothly, and the benefit from the 50 Years Ago In The, market extends to the general Farm News public," Bagley said. "While futures markets beneficial, I also know that they ha ve some problems. Congress are farmers July 1925 There has been given out all over the country a libel that the Farm Bureau is organized for the purpase of combining in a way to hold up recognized these problem areas in creating the Commission, and giving it expanded responsibilities and new authorities . "Let me stress that in carrying oftheYl8ek ... QUALITY FARMING OPERATIONS • AGRICULTURAL/COMMUNITY INVOLVEMENT the people on prices. This'is the farthest possible thing away from out these responsibilities, the our present thoughts, but there is somewhere a tremendous leak Commission's primary goal will be between producer and consumer. It is our purpase to eliminate this to provide a climate in which excessive cost of distribution by marketing our products in an or- futures markets and futures derly, sane, businesslike manner. trading can make the fullest possible contribution to the Philadelphia, July 21 - Secretary Jardine placed the support of nation." the Department of Agriculture behind the principle of c~peration in As established under the Com- an address Monday before the American Institute of Co-operation. modity Futures Trading Com- "It must be constantly kept in mind," he said, "that the problems mission Act of 1974, the CFTC confronting agriculture cannot be solved from the outside, but by the assumes responsibilities for farmers themselves who know the problems. The principle of c~ regulation of futures oontract operation I consider to be so important, not only to agriculture, b~t to trading in agricul tural com- Russell Nelkie the national life as a whole, that I am happy to place the Umted modities - an area formerly 400 acre, 100 cow Iosco States Department of Agriculture at the service of this great regulated by the Commodity County dairy farm • movement. Exchange Authority, a branch of Director of Michigan Milk the U.S. Department of Co-op • Director of Iosco Sandusky, July 4 - The Sanilac County Fal1D Bureau picnic held Agriculture. Soil Conservation District • at the county park at Forester today broke all attendance records for In addition, the new agency -- losco County FB director. fanners' gatherings in this section of the state. About 10,000people which is indepeooent of cabinet and 3 000 aut~ crowded the 38 acre county park to capacity and departments - has authority to nearly 1 000more cars bad to be parked outside the park. regulate trading in non- The c~libre of the speakers and the quality of the addresses which agricultural commodities such as they delivered were fully up to this epoch-making event. ,Headline metals, wood products, crude oil attractions on the speaking program included Rev. A. H. Manaba, of and many other futures contracts Sandusky M. E. Church, Mrs. Frank Kinch of Grindstone City, ana traded on 12 exchanges. Dr. W. W. Diehl of Albion. Mrs. Kinch stressed the need for farm women to take a greater interest in community affairs. Dr. Diehl Please turn to page 7 graphically compared the oppoctunities for youth in the past and the present am declared, uIf we ca~not maintain an inte~gent.class of . J people on the farms, our beloved democracy ~l end 10 ruIns. Our present day civilization depends on perpetuatIng a good, strong, WANTED . -- ...... #- James Gleason Kenneth Ritchie 150 cow St. Joseph County 160 acre Eaton County aggressive class rl people on the farms." One of the big attractions of the afternoon at the Sanilac picnic was a baseball game between McGregor and Sanilac. The latter team WHEAT dairy herd • Three Rivers school board secretary • MFB state study com- dairy farm • President, Eaton County FB • Com- munity Committeeman, won 5-4. Eaton Co. A.S.C. • Past Red or White for the Farm mittee member • Past Dissatisfaction with the present postal law is registered in a large Bureau Wheat Marketing President of Dairy Herd treasurer Bellevue school Program. For information, Improvement Assoc. PTA. number of letters received from farmers by the Washington office of the American Farm Bureau Federation. Among the objections to the contact any participating sponsored by present law is the arbitrary ruling by the Post Office Departm~nt co-op elevator or your that all packages carrying baby chicks must pay a 25 cent servIce County Farm Bureau. MICHIGAN FARM RADIO NETWORK charge. AND FARM BUREAU INSURANCE GROUPTM PAGE 4 MICHIGAN FARM NEWS JULY 1, 1975 CAPITOL REPORT Robert E. Smith Taxes, trucks & robins H.B. 5310 has been introduced by position as it was under earlier under the old method. For dards Act has always exempted Reps. Kennedy, Anderson, Hoff- substitute. The first version, as example, those who inherit large agriculture from overtime man, Gast, Porter, Hellman and introduced, would have placed a estates in excess of $250,000 would provisions recognizing the fact that Mowat. It will be known as the heavy burden on much of pay more inheritance tax than farmers must live with the weather potatoes, vegetables, etc., and are "Pesticide Control Act." agriculture. Since that time, those under $250,000. However, for and other factors. There are times only used in a limited way to carry Action on this bill is extremely several changes have been made the first time, jointly-owned when a great deal of overtime is the crop from the field to storage. important inasmuch as its need including increasing the exemp- property and insurance benefits required and other times when Owners of such trucks could obtain results from mandatory federal tions. Most farmers will be would be taxable. These are the little or no work can be done. a special identification tag for requirements. exempt. However, many farmers provisions that have created the The bill discriminates against operating on public roads for a fee In 1947, Congress passed the could still be affected depending on controversy. However, there is a farmers by bringing agriculture of $15.00. They would still be Federal Insecticide, Fungicide and the kinds of farming and individual $30,000 blanket exemption phis a under the minimum wage required to be properly insured Rodenticide Act to regulate the circumstances. This is true of $30,000 exemption for property and requirements for all employees 16 and have the essential safety marketing of pesticides which many other kinds of small a $60,000 exemption from in- and over. For all other Michigan items. were then known as "economic businesses. surance benefits making a total employers, the minimum wage This legislation, if finally passed, poisons." The federal law applies Presently, the tax base would be exemption of $120,000 for joint applies only between the ages of 18 would be a major savings to many to those shipments crossing state determined by adding together the property between man and wife. and 65. farmers and is also expected to lines. following: (1) profits (2) l/z of the The tax rates remain the same as The bill further requires that exempt such trucks from the very In 1972, Congress amended the depreciation (3) wages paid out (4) in the present law. every person would receive at least burdensome federal truck use tax. act giving it broader control and interest paid out. The exemption A simple example may be the minimum wage and that piece Marketing Fee Deduction [S.B. coverage with federal regulations from that base would be $30,000 of helpful . . . . . assume a spouse rates would be permitted to be paid 385]: This was introduced by covering all pesticides instead of the owners personal income from received an $85,000 estate. Under in addition to the minimum wage. Senator Zollar and passed the only those shipped across state the business. If the personal in- the present inheritance tax, there This in effect eliminates the very Senate by an overwhelming vote of lines. It provided that EPA must come was over $30,000 there would would be a $30,000 exemption and good piece rate system that has 33 to 3. It is presently before the classify aD pesticides as either be a deduction of $2.00 for each then the first $20,000 would be been developed in Michigan over a House. It is essential legislation to "general" or "restricted". It also $1.00 over the $30,000 thus taxable at two percent which would period of years. Presently, piece those producers of fruits and required that "restricted" eliminating the exemption on in- be $400; the next $35,000 would be rates are raised in relation to the vegetables who belong to a pesticides can only be used by comes over $45,000. There is also a taxed at four percent which would minimum wage. This is done by the voluntary marketing association. "certified applicators." This provision for a deduction of the be $1400, resulting in an Wage Deviation Board. Michigan's It requires that processors, hand- applies to anyone using labor cost portion of the base if it is inheritance tax of $1800. Under minimum piece rates this year are lers, etc., must, when requested "restricted" pesticides including over 70%. In addition, a taxpayer H.B. 4239, the same estate would 25 percent higher than a year ago. by the producer, deduct the farmers using them on their own could fully deduct from the base have a $30,000 exemption. It is a fact that piece rate workers marketing service fees and for- land or on their neighbors land any new investments made during However, the first $50,000 would be make more money than those paid ward them promptly to the even if it is on an exchange basis. the year. The rate of tax would be taxed at two percent or $1000, and by hourly rates. Piece rates make producers cooperative marketing The new federal requirements 2.3 percent. $5000 at four percent which is $200, it possible for many people to work association. must be fuDy implemented by mid In a companion bill (H.B. 5085) making a total tax of $1200 or $600 who otherwise would be rejected. Over the years, many processors 1976. the present $500 ceiling would be less than under the present system. Fruit and vegetable farmers will have shown the producers the The actual certification of ap- taken off from the rebate on When the legislation passed the recognize many of the other courtesy of deducting such fees plicators, including fanners, will property tax under the Homestead House, several outstate legislators problems that this provision in the when requested. However, other be done by each state through state Exemption Act, P.A. 20 of 1972. If were successful in amending it on bill creates. processors have refused, or have law. However, each state law must this provision remains in the the floor to exempt the first used the deduction as a method of conform to federal EPA standards legislation, it would be a tre- $250,000 of jointly-owned (between SAFETY STANDARDS harassment. More importantly, which were published in the mendous reduction in property husband and wife) agricultural [H.B. 5180] some have made the deduction and Federal Register in October, 1974. taxes for all farmers including land. This is the first time that This bill has passed the then have not sent the producer's H.B. 5310 will meet federal those that would still have some special recognition has been given Legislature. It changes the Ad- money as requested to the requirements. It is 21 pages long. It tax to pay under the Business to the problems of farm land. This, visory Committee on agricultural association thus using it interest provides for licensing of Privilege Tax.- of course, was in line with Farm safety standards (MI-OSHA) by free. "restricted use" pesticide dealers, All legislators have agreed that Bureau policy. increasing the number from seven Several states have this type of registration of pesticides, labeling, no exemptions will be permitted in The bill provides for 3 classes of to ten and requires that the com- legislation and our information is misbranding, etc. It provides for the new Business Privilege Tax if it heirs . . . Class I (transfers to mittee be made up equally of that it works well and solves many certification requirements that an becomes law. In fact, one effort spouse) is the area of greatest employers and employees or their problems. applicant must meet in order to was made to totally exempt change. Class 2 (transfer to close representatives. This bill was GOODBYE ROBIN? qualify for the various types of agriculture and failed. relatives). There is no change in rushed through the House with Rep. Holcomb has introduced pesticide applications consistent While the House is considering this case, except that there would glaring errors in the amendment. HCR 220. If the resolution passes, with the regulations of the federal H.B. 4640, the Senate Taxation be a $60,000 exemption for in- While the Senate refused to change Robin Red Breast will be replaced EPA. An applicant can become a Committee has received a con- surance benefits as it becomes the intent of the legislation, it was by the Kirtland (Jackpine) War- certified "private applicator" or a sultant's report on an alternative taxable. Class 3 (transfer to all rewritten so that it is consistent bler as the official state bird. This certified "commercial ap- tax solution to the state's fiscal others) remains the same and the with other parts of the law. little fellow has received a lot of plicator." A certification or license problems. It is an effort to spread present $5,000 exemption remains. publicity lately. A limited area of may restrict the applicant as to the tax burden more equally If the Senate Taxation Com- FARM TRUCKS [H.B. 4795] northern Michigan is his only what he is qualified to do. among all types of businesses. It is mittee considers the bill, it will As this is written, the legislation nesting place and he is one of the There are limited exemptions not yet in bill form, but basically it probably be rewritten. If the bill is on the third reading in the House. endangered species. from certification or licensing would use a combination of present survives in the Senate, Farm This bill would exempt many farm Robin Red Breast has been with including persons, or their em- business taxes and the value added Bureau expects to try to improve it trucks from present licensing and us for a long time and is very likely ployees, applying "general use" concept depending on the type of for agriculture. For example, registration procedures. The to survive. One wonders that if the pesticides, on their own premises. business year. many sons remain on the farm and trucks affected are those that are state bird is changed to one whose Presently "general use" and the farm should be appraised only kept by many farmers to be used chances for survival are limited, INHERITANCE TAX only a few days per year such as in would it portend a similar future "restricted use" pesticides have [H.B. 4239] on its value for farming purposes. not been listed. Farmers would be There are also other changes that the harvesting of sugar beets, for Michigan? Several weeks ago, H.B. 4239 required to be certified to use passed the House of Represen- might be made to encourage "restricted" pesticides, but not tatives and is presently in the maintaining the farm for farming. "general use" pesticides. The bill also provides for an Senate Taxation Committee. This was a new inheritance tax bill. Governor Milliken has stated that he supports the shift of ad- O'Hara backs tax reform advisory committee composed of Recently, some newspaper and ministrative responsibility of the Important revisions in the Congressmen Guy VanderJagt (R- Directors of the Department of television reporters publicized the inheritance tax .from probate federal Estate Tax Law would be Luther), Robert Traxler (D-Bay Natural Resources, Public Health, provisions of the new act. This in courts to the Treasury Depart- provided by legislation recently City) and Ed Hutchinson (R-St. Aeronautics, Cooperative Ex- turn triggered a great deal of mail ment. He said, however, that he introduced by Congressman James Joseph). The House Ways and tension Service and the Executive opposing the bill. Senator could not "agree to increasing the G. O'Hara (D-Utica). Means Committee is expected to Secretary of the Wafer Resources Bowman, Chairman of the Senate tax base by including jointly- Congressman O'Hara's bill, H.R. consider estate tax legislation Commission, phis four additional Taxation Committee, has said that owned property and insurance 7777, would raise* the current sometime this summer. members, one each representing the bill is dead and will not be benefits." federal estate tax personal licensed pest control operators, considered by his committee. FARM LABOR LEGISLATION exemption from $60,000 to $200,000. producers of agricultural com- However, some of the publicity [H.B. 4921] It would also raise the current modities, nongovernmental given the act in the news media has The labor bill that would affect marital deduction from 50 percent organizations for environmental not been totally accurate. only agriculture is still on the of the adjusted gross estate value preservation and the agricultural The legislation was a rewrite of House calendar as this is written. to $100,000 plus 50 percent of the chemical industry. the Michigan Inheritance Tax laws It has been delayed for several total estate value. Committee hearings have not yet and would raise approximately $18 weeks. The purpose of the delay H.R. 7777 would also provide the been held. million more than the present was to try to either defeat the bill, heirs of an estate used for farming inheritance tax. One of the major or amend it so that farmers can to have the property appraised at BUSINESS PRIVILEGE TAX changes is the method of ad- live with it. its value for farmland rather than [H.B. 4640] ministration. Presently, all Farm Bureau's position is that it highest potential use. The current This is still a major issue in the inheritance tax is handled by the 83 is a totally bad bill for everyone estate tax exemptions and method Legislature, with at least five probate courts in Michigan. Under involved. The bill, as amended, of appraisal were established in substitutes having been printed the new act, the administration would put agriculture under 1942 and have not kept pace with each with changes designed to and collection of the tax would be overtime provisions, time and a inflation or increased property make the tax acceptable to more by the Treasury Department. hah, and for all practical purposes values over the last 33 years. businesses in the state. The ver- Generally speaking, those in would affect all farmers and Nearly 70 Congressmen have sion under consideration at the middle and lower income groups probably would affect dairy far- now introduced legislation iden- time this is written leave would pay less inheritance tax mers more than any one else. tical to H.R. 7777. Included among agriculture in about the same under the new bill than they would The Federal Fair Labor Stan- these sponsors are Michigan James O'Hara [D.-Utica] JULY 1, 1975 MICHIGAN FARM NEV~S PAGE 5 NATIONAL NOTES AlbertA. Almy Farm credit & foreign trade I \ Federal actions of interest to On June 11, a Subcommittee of that Fann Bureau does not believe expocts requested by the American nations will observe in future Farm Bureau since June 1 have the House Agriculture Committee any expansion of the Corps pennit Farm Bureau Federation last years. The Geneva negotations are focused 00 farm credit, Corps of began hearings on H.R. 2914 and program is justified nor required January. very important to agriculture Engineers permits, coontervailing related bills. Accompanying by the Federal Water Pollution because exports represent a duties am foreign trade policy. The subsidy ranges from two to Congressman O'Hara to the Control Act of 1972. Also, Fann sizeable market for U.S. farm hearing to present testimony were Bureau has called foc the Corps to forty cents per poond on certain Austrian soft cheeses and from two products. FARM CREDIT a Michigan Farm Bureau file an economic impact statement The Farm Bureau statement to thirty-three cents per pwnd on H.R. 2914has been introduced by spokesman am a young farmer, on the propa;ed permit program certain Austrian hard cheeseS. delivered to Mr. Dent and mem- Congressman James O'Hara (D- Gerald Grobbel who farms near ~befoce any final decision is made. Total imped siveness." balance. It has advantages over antifraud regulations covering Mr. Bagley said he looks forward previous silage supplements in options, leverage contracts and to getting beyond "the reactive that its od