Publication of Michigan Farm Bureau 1-=1 September 16, 1991 "First Of-a-Kind" Saginaw Bay Watershed Project Unveiled At an MFB sponsored meeting in Franken- cil, a county commission, a state or federal "Farm Bureau will be keeping a close eye muth to discuss the project, ever-increasing decision on how the additional monies on this project as it progresses. We have a At the request of Gov. John Engler and the sedimentation levels and phosphorus load- coming into the area might be spent," she lot at stake, a lot of opportunities, and also Michigan Department of Natural Resources ing were i,dentified as "overwhelming said. "Another concern that agriculture has a lot of concerns," Pontz said. in April, 1991, the Environmental Protec- problems" in regard to non-point source is maintaining additional or new practices ... tion Agency is reviewing an application that, if ultimately approved, will create the first ever fresh water National Estuary Pro- pollution, according to EPA's Dale Bryson, director of the agency's water division. on a voluntary basis as opposed to a man- datory basis," said Pontz. gram in the country. Approval is expected "Agricultural interest and support are ab- The project could also mean that additional sometime in October. solutely critical to the success of what we're dollars would be made available for exist- trying to accomplish, so we (EP A) want ing water quality programs as well as any Successful designation as an estuary will heavy involvement from the agricultural new programs that may evolve. trigger the release of up to a million dollars community," said Bryson. of federal funds for a period of five years for "Particularly for agriculture, that could a complex, multi-year project. Project fund- Agriculture will have representation on the mean additional on-farm technical assis- ing would be channeled through the EP A management committee, which will also tance in soil and water conservation prac- and be administered by the DNR, with in- consist of decision makers from local, state tices, as well as possible cost-sharing for volvement of state and local governments, and federal units of government, industry, some of those projects," said Pontz. including technical assistance from the education and the economic development "Agriculture has done a good job, par- SCS, CES, MDA, and the ASCS, according community. The management committee ticularly in the last 10 years, of reducing to U.S. Rep. Bob Traxler (D-Bay City). will determine the environmental priorities sediments and phosphorus loadings into the of the Bay, and then develop strategies to Saginaw Bay, through previously imple- -' 4tlj "This will be the first freshwater estuary address those priorities. mented cost-sharing projects." ~ ". it. program in the nation, which is significant," said Traxler. "It's going to bring attention to According to Vicki Pontz, MFB legislative In response to numerous farmer concerns this project and, I hope, stir all sectors of the counsel, agriculture does have some con- expressed at the Frankenmuth meeting, community within the watershed to be ac- cerns regarding the project. "One of the reassurances were made by all represented tive participants in the program." reasons for the informational meeting was agencies that the goal of the project would to solicit involvement of agricultural not be finger pointing but rather technical EPA's Dale Bryson explains the federal es- A total of 22 Michigan counties would be leaders in all the decision-making proces- assistance on a voluntary basis to help solve tuary program during the Frankenmuth infor- included in the watershed project, with a ses, whether that be a local watershed coun- the non-point source pollution dilemma. mational meeting. primary goal of enhancing and protecting the water quality and natural resources of the Saginaw Bay and its watershed. The project would involve identification of Michigan State Fair - On the Road to Recovery threats to water quality, including analysis security is another obstacle that needs to the livestock exhibits, food and fun, which In a year that many considered "do or die" in of point and non-point sources of pollution, be addressed. is also a good base to build attendance on. rebuilding an ailing state fair, the event may with recommendations from a "manage- finally be on the way to recovery, in terms of "We've really been hurt in recent years by Once the survey results are compiled and ment committee" to resolve those concerns. attendance and corporate sponsors, according concerns of people who might come here, fully analyzed, Allen will be drafting a to Dick Allen, the state fair's general manager. but hesitate because of safety fears," said report for the State Fair Council and Gov. Saginaw Watershed Allen. "Statistically, according to the John Engler, with additional recommen- Project Counties "We had approximately 452,000 people in at- State Police who handle security, the state tendance, up just slightly over last year," said dations for next year's state fair. fairgrounds is the safest city of its size in Allen. "Our attendance stabilized, since it had the entire state of Michigan." Arenac Mecosta been in a decline over the last several years." "If this event can be stabilized, perhaps Bay Midland even grow slightly and be held in the Clare Montcalm The surveys reflected a more positive at- 500,000 attendance range, the state fair According to Allen, corporate sponsors titude regarding safety, because of the Genesee Oakland donated $234,000 to this year's event compared can be financially successful in the long Gladwin Ogemaw State Police involvement and on-site run," said Allen. "It can also continue to to only $93,000 last year. Allen hopes to see that parking. Allen said safety fears are un- Gratiot Osceola aspect of the state fair continue growing, adding remain a very important tool for bringing Huron Roscommon founded since those attending the state together the rural and urban population, that a major goal next year will be to include losco Saginaw sponsorship from the big three automakers. fair are more of a family crowd, there for which is to agriculture's benefit." Isabella Sanilac Lapeer Shiawassee "W,e essentially invited business to take over According to an exit survey, many people came specifically for the livestock exhibits. Livingston Tuscola the show. They'll be strongly involved in future Below, Eaton County farmer Duane Tirrell (at left) in the ~how ring with an entry! fairs in terms of what kind of programs we have here. Sponsors want happy people, and that will ultimately make a better state fair," said Allen. A professional $10,000 exit survey, donated by Research Data Analyst, was conducted at this year's state fair, with some interesting findings .. "Most significant to agriculture was that the number one reason people told us they came to the state fair was for the livestock exhibits, which they also said they were very pleased with," said Allen. "It can certainly be said that having a fair in a large metropolitan area is an important outreach activity for agriculture." The survey also showed a more upscale audience in terms of income than previously thought and the average age of 41 years was surprisingly higher than previously perceived. In addition to seeing a continued growth in attendance and corporate sponsors, Allen says the misconception about the lack of safety and Capitol Comer - Michigan Farm Weather - Farm Business Outlook - Michigan Farm News September 16,1991 E3 Kent County Farm Bureau In Brief... USDA Advances Soviet Credit Dates Members Grain futures markets soared in response to an Agriculture Department announcement that Counter Animal it will allow the Soviet Union to use immediately $315 million in export credit guarantees originally scheduled for use in October and next February. Activists The dollar amounts allocated included $150 million for feed grain; $45 million to wheat or flour; and $90 million to soybean meal, according to a recent Wall Street Journal report. The remainder of the $315 million will pay the freight. Kent County Farm Bureau members recently demonstrated that farmers really are "Profes- sionals From the Ground Up." They skillfully and sensitively handled an effort by animal Those dollar amounts will allow the Soviets to purchase 1.3 million metric tons of corn, rights activists to place an advertisement in the Grand Rapids Press that compared the about 500,000 tons of wheat and about 425 of protein meal. Purchases on this latest credit slaughter of animals to the Dahmer mass murders and cannibalism in Milwaukee. allocation will leave the Soviet Union with only $450.8 million remaining of the total $2.5 billion in export credit authorization from the United States. The controversial advertisement, which previously ran in the Des Moines Register, was headlined "Meat Stinks...Ask Jeffrey Dahmer's neighbors." It went on to state "you can shake it, bake it, broil it, or boil it, but it's still the decomposing corpse of an abused animal." Lower Set-Aside Likely Means More Wheat Acres Luckily, the Grand Rapids Press rejected the ad because of its sensationalism and bad Industry officials are saying lowering the acreage set-aside requirements will likely cause taste. Kent County Farm Bureau President Jim May and Information Chairperson Michelle hard red winter wheat producers to plant more acres this fall, regardless of whether or not Francisco hand-deliverd a letter to the paper's general manager expressing the concerns soil moisture shortages in plains states are erased by planting time, according to Knight- of the area's farm families. Ridder News. "We are petitioning you to exhibit the high standards your paper has shown in the past and Winter wheat seeding has begun in the western fringe of the southern plains and will refuse to publish PET A's advertisement," the letter said. "Please consider the actions and continue for two months. The set-aside requirements to maintain eligibility for farm ultimate goal of PETA. The means by which they wish to accomplish their end is not program benefits was reduced, from 15 percent in 1991, to 5 percent for 1992 production. justifiable or in good taste. With today's economy, we know very well the income generated by the sale of a full page ad is difficult to turn down. In this light, we applaud those who do USDA Secretary Edward Madigan has declined comment on the likely feed grain set-aside stand by their convictions and encourage you to deny PETA's request for publication of their requirement levels for the 1992 farm program. Debate has spread through the grain industry propaganda." in the past few weeks about the acreage reduction program (ARP), with groups calling for levels ranging from zero to 7.5 percent of program acreage. The letter also reminded the paper's management that today's agriculturalists are profes- sionals who can only benefit from the humane treatment of animals. "Most farmers carefully Asked after a speech at the Growmark Inc. shareholders meeting whether USDA would study the nutritional needs and space requirements for the general well-being of the animals make an announcement on ARP before the Sept. 30 deadline, Madigan said "anything is in their care. Only by these methods can farming in today's world be respected and possible." USDA has until then to decide the percentage of sorghum, corn and other feed profitable," the letter said. grain acres that farmers must idle this year to qualify for government subsidies. The Kent County Farm Bureau took a reasoned and proper approach to this issue. They did not scrawl protest signs and march the sidewalks, as animal rights protestors did around Farm Prices Down 3.3 Percent From August 1990 the Amway Grand Plaza during the National Livestock and Meat Board meeting. The index of prices received by U.S. farmers for their products in August fell 2.7 percent from July 1991 levels, down 3.3 percent from August 1990, according to USDA estimates. Nor did the farmers try to deny the animal rights activists an opportunity to express their Lower prices in August for cattle, hogs, and potatoes were partially offset by higher prices opinion. Rather, the Kent County Farm Bureau letter focused on the ad's poor taste, and for oranges, wheat and milk, USDA said in its monthly Agricultural Prices report. saluted the Grand Rapids Press for making an economic sacrifice in rejecting the advertisment. USDA said the average price was the lowest monthly price since August 1988. Hog prices also fell substantially from July. Milk prices increased from July but continued well below This approach can be contrasted with what happened in Iowa after the original ad ran in the August a year ago. Orange prices were higher again this month, and feedgrains showed Des Moines Register. When farmers objected to the ad, the paper, in a follow-up editorial, moderate increases from July, while oilseed prices were down. Wheat prices increased from accused farmers of trying to suppress the right of free speech. July. Lower prices for cattle, milk and hogs were major contributors to the decline from year ago levels and were partially offset by higher prices in oranges, lemons and apples. Kent County Farm Bureau members deserve a salute for helping to further polish the professional reputation of farmers as clear-thinking individuals who use policy to guide their actions, not sensationalism. Their proper conduct helped defuse what could have been a European Corn Borer Resistant Corn a Possibility messy publicity fight. Instead, their actions reinforced the image of agriculture as an industry that cares about the animals it raises and is professional about its conduct and demeanor. Michigan State University (MSU) researchers from departments of Crop and Soil Sciences and Entomology and the Pesticide Research Center are trying to develop a genetically engineered corn hybrid that will be resistant to European corn borer damage. t Jack Laurie, President According to Mariam Sticklen, the research project leader and professor of Crop and Soils Science and Entomology at MSU, if the next series of tests prove current theory, the corn Michigan Farm Bureau borer larvae that feeds on genetically engineered corn plant will get a "stomach ache," causing it to stop eating. If the corn borer can't eat, its growth will be retarded until it dies. Federal Disaster Declaration List Growing Killing the corn borer slowly should reduce the chance of it developing a resistance to the Excessive rain and drought conditions have prompted USDA to name counties in five states, genetically engineered corn plant. Insects can develop resistance to insecticides and insect including all of Ohio, as eligible for emergency low-interest loans, according to Knight resistant varieties that kill the insect within a short period of time. Ridder News. The project, begun in 1990, will take several years to complete. Researchers will soon begin Producers who have suffered a 30 percent loss of normal production in the designated areas efforts to develop a genetically engineered corn hybrid that is resistant to corn rootworm. have eight months to apply for the loans, if they're unable to get credit elsewhere. They must also have adequate security and multiperil crop insurance, if available in their area. FB Tells Committee: No Tax Increases All 88 counties in Ohio were declared eligible for the low-interest loans because of drought-related crop losses throughout 1991. Farmers in 10 drought-stricken Indiana Farm Bureau contacted members of the House Ways and Means Committee this week counties have been granted federal disaster status, with additional counties expected to be reminding them about tax issues important to agriculture and urging them to steer clear of added soon. any tax increases. Support was also urged for H.R. 784, a bill to expand the current 25 percent income tax deduction for the health insurance premiums of self-employed tax- Wheat producers in 89 Illinois counties are also eligible for low-interest loans if they payers. The current limited deduction will expire on Dec. 31, 1991. The bill would increase suffered a 30 percent or larger wheat crop loss this year due to bad weather. In Missouri, the deduction over a period of five years to 100 percent and make it permanent. The 20 counties suffering damages and losses because of excessive rain and flooding and enactment of H.R. 784 is important to agriculture because it will lead to fairness in the tax tornadoes were named eligible for the loans, with farmers in another 15 adjacent Missouri treatment of health insurance costs for farmers, regardless of their form of business counties also eligible. Five counties in Oregon were named because of excessive rainfall organization as sole proprietorship, partnerships or corporations. and flooding, with four adjacent counties also made eligible. Michigan Farm News is Published 20 times annually: By the Michigan Farm Bureau Information and Public Corn Growers Seek Action on Gluten Feed Losses Relations Division. Publication and editorial offices at 7373 West Saginaw Highway, Lansing, Michigan 48917, Post Office Box 30960 (zip 48909); phone 1-517-323-7000. The National Corn Growers Association has asked the Department of Agriculture to prepare Michigan Farm News is provided as a service to regular members as part of their annual dues. Publication $650 million of import restrictions against the European Community to counter balance No. 345040. Established Jan. 13,1923, as Michigan Farm News, reestablished October 15.1990. Third- class postage paid at Lansing, Michigan and at additional mailing offices. the loss of corn gluten feed sales to the EC. Editorial. Dennis Rudat. Editor and Business Manager. They say the EC's complaint that corn gluten contains corn germ is a trumped-up additive Officers: Michigan Farm Bureau President, Jack Laurie. Cass City; Vice President Wayne Wood. Marlette; issue generated to restrict imports from the United States. The Netherlands, already the Administrative Director, Charles Burkett; Treasurer and Chief Financial Officer, Tom Parker; Secretary largest importer of corn gluten feed in the European Community, uses its concern about William S. Wilkinson. germ presence in corn gluten as a "subterfuge" to block imports. There is a movement to Directors: District 1, Martin Outman, Constantine; District 2, Blaine VanSickle, Marshall; District 3. Diane make the Dutch standards uniform through the 12-nation EC. Horning, Manchester; District 4, Tom Guthrie, Delton; District 5, Mark Smuts. Charlotte; District 6. Wayne Wood, Marlette; District 7. Larry Snider, Hart; District 8, Richard Leach, Saginaw; District 9, Joshua Wunsch, Gluten feed is produced in the wet-milling process that converts corn into starch, sweetener Traverse City; District 10, Margaret Kartes, West Branch; District 11, Robert Wahmhoff, Baraga. At-Large: Douglas Darling, Maybee; Jack Laune. Cass City; Faye Adam.Snover; Jan Vosburg. Climax. Promotion and and ethanol. The EC has threatened at various times to curtail purchases of gluten feed to Education, Holly Porter. Manchester Young Farmers, Steven Gonyea, Spruce. force European farmers to feed more domestic grains to livestock. Michigan Farm Ne\Ns "" ITOL o -. September 16, 1991 o :II Z m :II Dairy Legislative Update Congress was unable to pass dairy legisla- - Heifer Export Program. - Exemptions from two-tier for areas with no action at the committee level has been tion prior to the August recess. Negotiations high Class I utilization. taken. S. 1527 will be the likely framework between key senators, members of the - Dairy trust provisions to protect farmers for committee action although that could House and the administration failed to at time of handler/processor bankruptcy. - Third tier for producers who choose to easily change. resolve the major points of contention. reduce production (diversion type pro- These points of contention include the fol- - Assessments to fund WIC and nutrition gram). At its August meeting, the AFBF Dairy lowing: programs. Advisory Committee reviewed the various - California standards for fluid milk. bills currently being considered by Con- - The appropriate price support level. - Assessment to fund program to minimize gress. impact on cattle industry. - Heifer Export Program. - Whether a two-tier approach relying on Based on extensive discussion, the commit- the creation of mandatory quotas and - Assessments to fund WIC and nutrition tee made the following recommendations to H.R.3131 the AFBF Board of Directors: bases should be utilized. As introduced by Reps. Gunderson, programs. Dooley, Boehner and Walsh (no committee - The use of assessments on dairy producers consideration to date), the bill proposes: - Assessment to minimize impact on cattle AFBF Recommendation to fund food and nutrition programs industry. The committee recommends' that the fol- and/or red meat purchases. lowing provisions be supported in future Price support: $10.10 - Producer board to control certain levels of dairy legislation: Est. Base Price: $11.93 surplus. - The role of the producer board in supply management functions. Assessments: $0.11 o A support price level which would Net Price: $11.82 The administration has consistently indi- be budget neutral, thus eliminat- - Exempting high Class I utilization regions cated through USDA that they would veto ing the need to subject dairy from the two-tier provisions. - Voluntary diversion program mandated any bill similar to either H.R. 2837 or S. producers to additional assess- when purchases are projected to exceed 8 1527. The primary reasons for this opposi- ments.lt should not encourage in- There is a consensus within the producer billion pounds to adequately reduce pur- tion are market-distorting increases in the creased production in any area of chases to 4.5 billion pounds. Secretary has support price, mandatory production con- the nation; segment of the dairy industry for certain discretion to implement a diversion at any trols, and the creation of a producer board I~ changes which have been included in most proposals. These include: time purchases exceed 5 billion pounds. which is either unconstitutional or usurps o gram Use of a voluntary diversion pro- if inventory management is the power of the Secretary of Agriculture. o Increasing the solids content of fluid - Industry Management Board to advise the secretary on management of surpluses be- The administration has responded more required; milk. tween 5 and 8 million pounds. Tools favorably to H.R. 3131. Although they do o An industry board to work with the o Inclusion of dairy producers in automat- provided include paid diversion, Class IV pricing system, domestic donations and not favor all sections of the bill, they have indicated it is a place from which discussion Secretary of Agriculture conduct of the program; in the ic trust provisions of the Packers and handler bases. can start. However, since many members of Stockyards Act. Congress are reluctant to abandon their o Higher solids standards for fluid D Increased exports of dairy heifers. - California standards for fluid milk. goals of raising support prices and estab- milk, usin9 the California stand- lishing a two-tier system, a political ards as gUidelines; - Heifer Export Program. stalemate has evolved. Currently, there are three main legislative proposals which are receiving the most dis- o Use of a dairy heifer export pro- cussion. The following is a summary of - Dairy trust provisions to protect farmers American Farm Bureau Position gram; at time of handler/processor bankruptcy. H.R. 3131 is clearly more consistent with those bills: AFBF policy than either H.R. 2837 or S. o Inclusion of milk processors in - No assessments for red meat purchases. 1527. In addition, H.R. 3131 is a program the automatic trust provisions of H.R.2837 which has a chance of becoming law. It, the Packers and Stockyards Act; As passed by the House Agriculture Com- - No mandatory production controls. therefore, allows the industry a better op- mittee, the bill proposes: portunity to obtain the solids standards in- o No assessments other than those 5.1527 crease, the Packers and Stockyards protec- that might be needed to fund a Price support: $12.60 As introduced by Sens. Leahy and Jeffords tions and increased heifer export. diversion program; and Est. Base Price: $12.55 (not yet considered by the Senate Agricul- Assessments: $0.70 ture Committee), the bill proposes: What will happen when Congress returns in o Provisions for the timely disposal Net Price: $11.85 September is far from clear at this point. of excess product in a manner so Price support: $12.60 Several House committees including Ener- as not to depress price, with - Two-tier production controls if purchases Est.Base Price: $12.55 gy and <;:ommerce, Ways and Means and proper credit given to the in- exceed 7 billion pounds. An exemption Assessments: $0.70 Education and Labor, have requested refer- dustry. from two-tier for areas with an 80 percent $11.85 ral of H.R. 2837. This will delay its con- Net Price: sideration until law September. The AFBF Board of Directors approved Class I utilization. these recommendations on August 27, _ Government purchases up to 5 billion - Industry Management Board to manage H.R. 3131 will likely be offered as an 1991. The recommendations are consistent pounds. with the 11 criteria previously adopted by surpluses between 5 and 7 million pounds. amendment to H.R. 2837 on the floor of the House. The Senate consideration of dairy the board, and provides clarification in _ Mandatory two-tier production controls - California standards for fluid milk. legislation could go in any direction since several areas. when purchases exceed 7 billion pounds. State Issues MIOSHA Motor Vehicle Code Status: Senate Bill 459, sponsored by Sen. Honigman (R-Bloomfield), would continue the Status: House Bill 5044, currently in the House Transportation Committee, would prohibit Michigan OSHA (MIOSHA) contract with Federal OSHA and requires Michigan's agricul- a person or an animal from riding in the bed of a truck or in the unenclosed area of a motor tural field sanitation rules to be the same as federal standards. The current MIOSHA vehicle. program will expire Oct. 1, 1991, without successful passage of this package. The bill, as introduced, would prohibit the tr.ansport ?f livestock or persons in the bac~ of The bill requires Michigan to immediately adopt federal rules promulgated by OSHA, a pickup, having a significant impact on vanous agnc.ul.tural operations. The transportmg including a seven-fold increase in penalties that OSHA is already enforcing in non-contract of animals to fairs exhibits and market would be prohibIted. The proposal would also be a states. OSHA has stated that contract states must implement the higher penalties, although severe blow to th~ transportation of seasonal agricultural w?rkers from field to field, and there are no penalties for non-compliance. In situations where Michigan would need more from farm to farm. Of further concern is the fact that many ml~rant worker~ often only h~v~ stringent rules, a mechanism is proposed that would require the Department of Health and one form of transportation - a pickup. If the bill is pa~sed as mtroduced, It would prohibit Labor to consider the request. them from using the vehicle as a means of transportation. The bill is scheduled for a hearing on Sept. 12, before the Sen. Labor Committee, with full Farm Bureau Position: Farm Bureau opposes the measure i.n its current form, and !s Senate approval expected shortly afterwards. The bill's success in the House is less certain. encouraging members to contact their representatives and adVise them of Farm Bureau s opposition to the measure. Organized labor is supporting the measure to keep MIOSHA under state control, and Farm Bureau Contact: Ron Nelson, extension 2043 sufficient support to pass the measure in its present form is expected because of the Oct. 1, deadline. Governor Engler has indicated support for any measure that the Legislature agrees MFB's Public Affiars Division, (517) 323-7000 on, provided the legislation adopts the federal agricultural field sanitation standards. I~ AFBF's Toll Free Capitol Hotline Service 1-800-245-4630 Farm Bureau Position: Farm Bureau supports the current version of the bill. Farm Bureau Contact: Howard Kelly, extension 2044 Michigan Farm Nevvs •• September 16,1991 3D-Day and SO-Day Forecasts Precipitation over the past month has varied some- what across the state, but was generally below nor- mal. Driest areas of the state have shifted back to the Alpena northwest Lower Peninsula stations which have ex- Michigan and Major Commodity Area 'Bad Axe perienced occasional scattered rainfall. Drier than Extended Weather Outlook Escanaba normal conditions were the rule over the remainder T - Temp. 9/16 ..... 9/30 9/16 .... 11/30 Grand Rapids of the state during August. p - Preclp T .P T e Imlay City Michigan N NlA A N Lansing W. Corn Belt N N N N Ludington The latest 30-day outlook is calling for near normal E. Com Belt N B N N temperatures and precipitation ranging from below Wint. Wheat Belt N B N A normal in the south to above normal in the western Spr.Wheat Belt A B N N Upper Peninsula. In the longer term, ~b