6/27/02

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1. Action Needed: The Fast Track to Bad Legislation
2. Farm Bill Appropriations Update
3. Judge Rules Beef Checkoff Unconstitutional
4. Extra Income Through Value Adding

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House Ways & Means Chair Bill Thomas (R-21st/CA) further eroded Rural America's confidence in trade policy yesterday by ramming through new provisions in the fast track bill. If passed, this bill would take away Congress's power to amend future trade agreements negotiated by the Bush, or any, Administration. 

Thomas attached 191 pages of legislation to a simple and non-controversial measure to move the bill to conference committee. Thomas's scheme was so controversial that it passed by only one vote - 216 to 215 - and provoked screaming matches during the debate on the House floor. Of particular concern to agricultural producers are provisions that would ensure that Trade Adjustment Assistance benefits would NOT extend to farmers and ranchers, and that future trade agreements would NOT be required to respect US trade laws, such as those that allow the government and agricultural sectors to act when foreign companies, foreign governments, and multi-national corporations dump agriculture products into the U.S. at prices below the cost of production. Please call your Representative today, and ask him or her to oppose the fast track bill when it returns to the House floor for a final vote. You can make this call toll free, courtesy of the AFL-CIO, by dialing 1-877-611-0063.

We all fought hard for the Farm Bill and came away with a number of gains in conservation funding. But Congress giveth, and Congress still has the power to taketh away. The appropriations process now underway will determine whether or not these hard-won programs will receive the full amount they were promised by the Farm Bill. It seems that the first hurdle has been cleared without too much incident. The House Agriculture Apppropriations Subcommittee yesterday announced its proposed funding for Fiscal Year 2003. The bill contains $17.601 billion ($56.705 billion total mandatory), an increase of $1 billion from last year and slightly more than was proposed by the President.

Conservation programs overall fared well, with an increase of $64.6 million over last year. There is always the chance, however, that the full House Appropriations Committee could propose cuts in these programs when they begin consideration of the bill after the July 4th recess. Between now and then, you can call your representatives and encourage them to support full funding of the Farm Bill conservation programs. To find you Congress person go to http://www.familyfarmer.org/sections/action.html. For more information about the Agriculture Appropriations process: www.house.gov/appropriations/news/107_2/03agsub.htm.

3. JUDGE RULES BEEF CHECKOFF UNCONSTITUTIONAL  

U.S. District Court Judge Kornmann ruled Friday that the mandatory beef checkoff program violated the First Amendment.

According to the Associated Press, the judge ruled that "cattlemen should not be required to pay for commercials - a form of speech - that they oppose...and that cattle producers are being forced to pay for ads that benefit others that sell beef such as restaurants and other retail outlets." The judge also ordered a halt to the collection of the $1 per head checkoff fee, which generates $80 million per year. The Western Association of Resource Councils, which was a party to the suit, applauded the ruling: "It is unfair that producers are taxed to support the National Cattlemen's Beef Association, an organization that consistently opposes their interests - most recently on mandatory country of origin labeling, banning packer ownership of livestock, and fast track trade legislation. Nearly nine of every ten dollars in the NCBA's budget comes from the beef checkoff." A spokesperson for the Campaign for Family Farms, which has filed a similar suit challenging the pork checkoff, noted, "It supports our view that the mandatory pork checkoff is unconstitutional as well." http://www.worc.org/media/worc_news.html#

Rural producers who want to explore the possibilities of extra income through "value adding" should explore the Value Added Grants Development (VAGD) program offered by the US Department of Agriculture. This program was amended by the 2002 farm bill and is now directing $40 million towards producer grants, development of a resource center, a series of innovation centers, and university research on the impact value-added activities. They are accepting applications right now with a deadline of August 8th. For more information see the website listed below. Here you will find explanations, applications, tips for completing forms and local state contacts. Those without web access can contact your State Rural Development Office to obtain information. http://www.rurdev.usda.gov/rbs/coops/vadg.htm