May 2010 News & Views
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President’s Corner
by A. Richard Bonanno
Every year on the farm starts with a clean slate, just like the Red Sox, with the hope of success. Then there is reality. There is water coming out of the ground in places that I have never seen it come out of before. But it is April and I still have high hopes for just the right amount of sun, rain, and warmth.
I attended Massachusetts Agriculture Day at the State House recently. The event was well attended by farmers, legislative staff, and legislators. The food was great! In addition to meeting with my own legislators, I met with the House Speaker and the Senate President. In such a tight budget year, I feel good about our abilities to maintain funding for DAR and UMass. I also believe that we have made progress on our concerns relative to small plot farming and issues with local government trying to overly regulate farms. One of these issues relates to local Boards of Health. I am hopeful that we can bring some state oversight to local Boards of Health. Our Legislative Affairs Director, Brad Mitchell, has been working hard on these and other issues. The white paper that we prepared for Ag Day is contained in this newsletter. Many groups signed onto this white paper and it was well received in Boston.
The happenings at the Federal level are not so nice and for the first time in a long time, I am worried about our ability to continue all types of farming in Massachusetts, but especially as it relates to fruits and vegetables. It seems that all at once we are bombarded with new spray drift and clean water regulations from EPA and uncertainty about food safety regulations from FDA. All the while, USDA seems to be either oblivious to all of this or they are actually working against us by continuing to push for food safety related marketing agreements. What is most unbelievable is that we have the Assistant Secretary of Agriculture from Massachusetts and a push by USDA to “Buy Local” and “Know Your Farmer”. Sometimes Washington seems so far away and so disconnected from us.
Over the past couple of months, we have received calls from Family insurance. These issues largely stem from the personal side, especially with respect to homeowner policies. There have also been some changes in staffing and some agents are no longer with Farm Family. First, let me remind everyone that the northeast Farm Bureaus no longer own Farm Family Insurance. On the other hand, we have a very close relationship with Farm Family and we have been in constant communication with Farm Family as issues are identified and as they are resolved. I believe that Farm Family will work through staffing and policy issues and I expect that our close relationship with them will continue. Having said that, please remember that I welcome your comments at any time and I will continue to stay involved with Farm Family leaders at both the state and company level. I sit on the Farm Family Advisory Board and I will carry your comments to that Board for consideration. ◊
A. Richard Bonanno, Ph.D.
MFBF President
rich@mfbf.net
Farm Family Answers Homeowners Insurance Questions
As a member of MFBF, you are already aware that our Farm Bureau endorses the Farm Family insurance companies, as our relationship together dates back to 1954. In light of recent changes that have affected some of our members homeowner insurance policies, we asked Farm Family to answer questions we are receiving from some of you.
Q: Why may some homeowners insurance premiums be increasing while others are decreasing?
A: Premiums are affected by the coverage and deductibles selected by you as well as a number of other factors. It may be necessary to increase premiums when the severity and frequency of claims increases, or when claims-related costs such as materials for repair and reconstruction, labor, transportation, medical and legal expenses increases.
Q: You mentioned a number of other factors – what factors could affect costs?
A: The most important factors in determining insurance rates include the following characteristics: Replacement cost, where your home is located, claims, roof type and age, age of home, proximity of responding fire department, type of home construction and multiple policy discounts.
Q: Is there an example for claims-related costs?
A: Roofing materials and labor costs have not followed the same downward trend as the rest of the housing market. In fact, by these costs increasing, roof replacement costs have risen 20 – 50 percent in many areas across the country.
Q: What level deductible makes sense?
A: Basically, you need to determine what out-of-pocket expense you could afford before a claim is filed, as well as how much you are willing to pay. It is a cost benefit decision.
Q: What is the multiple policy discount?
A: For instance, Farm Family offers a 10 percent discount for those who insure both their Home and Auto policies with Farm Family or a 15 percent discount for those with Home, Auto and Life. This would be on top of the 5 percent Auto member savings by being an active MFBF member.
Q: How can I find out what may be affecting my costs and what may be available to keep my costs down?
A: We encourage you to contact your local Massachusetts Farm Family agent regarding more specific questions and to conduct what we call a Professional Insurance Review (PIR). Farm Family can help you better understand your coverages and rates and help you take advantage of discounts that might be available.
Farm Family Casualty Insurance Company, Farm Family Life Insurance Company and United Farm Family Insurance Company, headquartered in Glenmont, NY. To find a Farm Family agent near you, visit www.farmfamily.com or call General Agent Steve Charette at 978-686-0170.
Another Successful Ag Day!
Despite weather that was perfect for working outdoors, April 8 saw nearly 400 farmers and members of the agricultural community making the trip into Boston for Agriculture Day at the State House. Carharts were traded in for suits, and many MFBF members were seen walking the halls and chatting with senators and reps. Ag Day is one of the best opportunities of the year for us to influence decision-makers in Boston and MFBF members certainly rose to the occasion!
Representative John Quinn, a longstanding supporter of Agriculture, was honored with the Agriculture Day Award. Secretary Ian Bowles, Representative William Straus, and Commissioner Scott Soares rounded out the speaking agenda, all speaking glowingly of the Commonwealth’s agricultural sector and promising continued, strong support.
From Stockbridge to Truro, from apiaries to USDA, displays from various agricultural businesses and organizations spilled out of the Hall of Flags and into the foyer. The “Taste of Massachusetts” event was so crowded, that the temperature in the hall had to have reached at least ninety degrees – something to keep in mind for next year for any MA food business which makes cold drinks.
Many thanks to all of those in the agricultural Community who attended this year’s Agriculture Day. Special thanks to the Ag Promotion Board and the Future of America. Once again, the MA Farming community came off as well organized and cohesive!
AFBF Announces “Put Death Taxes to Rest” Campaign Urging Federal Action
We are almost half way through the estate tax-free year of 2010. AFBF and other ag interests are wary of the automatic “sunset” of the current rules at the end of 2010. In 2009, the federal estate tax rate was 45% with a $3.5 million exemption. In 2010, there is no estate tax in effect. Without a new law, the 2011 top rate will be 55% tax with a $1 million exemption. Farm Bureau is seeking a full repeal of the “Death Tax”. If full repeal is not possible, Farm Bureau is seeking a top tax rate of 35% with an inflation adjuster, and an exemption of $5 million. Spousal transfer and a stepped-up basis are also part of the AFBF package. MFBF members should contact US Senators Scott Brown and John Kerry in support of this update.
We feel that this year will be the best chance for repeal of the Death Tax. With the uncertainty of these economic times, farmers here in the Commonwealth and across the country need to be able to prepare and plan for the future of their farm with the ability to pass along their farms generation to generation with limited penalty. With a higher Death Tax exemption level this would become much more plausible for our farm families here in Massachusetts.
Along with American Farm Bureau, we are putting together a “Put Death Taxes to Rest” campaign that relies on the personal experience of all Farm Bureau members who are willing to tell their stories of how the Death Tax has negatively affected their farm or business.
Beginning April 22 and running through Memorial Day, our focus of attention will be to focus on getting as many calls, visits, letters, emails and postcards as possible to Senators Scott Brown and John Kerry showing how beneficial a repeal of the Death Tax would be to Massachusetts agriculture.
To help AFBF gather member stories, they have setup a “Share Your Story” feature on the FBACT Insider website (www.fbactinsider.org). Personal stories influence members of Congress, therefore we want to collect as many stories as possible from MFBF members having an experience with Death Taxes. We are asking members to provide us with the following:
· Has your farm been affected by Estate Taxes either because of a death in your family or by the high costs of estate planning?
· How does a $3.5 million exemption impact you?
· Are you better served with a higher exemption?
· What if the exemption was just $1 million?
If you are willing to allow AFBF to use your information to assist with AFBF lobbying and public relations efforts, please select the “opt-in” box on the website when finished. ◊
Offices of US Senator Scott P. Brown
317 Russell Senate Office Building
Washington D.C. 20510
(202) 224-4543
Offices of US Senator John Kerry
218 Russell Bldg.
Second Floor
Washington D.C. 20510
(202) 224-2742
MFBF MEMBER BENEFITS
Prescription Rx – This benefit helps reduce prescription drug costs. MFBF members save an average of 30% (some as high as 75%) on prescriptions. The card is like a coupon that you use over and over again at over 75,000 national and regional pharmacies. The cards will be sent with your Farm Bureau membership renewal invoice or call the office to request one now.
Dodge – it is a great time to purchase a new Dodge vehicle. Remember our $500 rebate after you make your “best deal!”
Grainger sales – 10% discount and free shipping on internet orders, www.grainger.com. Order today, and have the products delivered to you tomorrow! No traffic, no gas costs, save time. products
Choice Hotels-Consider using Choice Hotels and your Farm Bureau Membership for significant savings at over 1,500 locations. Book your stay at www.choicehotels.com/ or by calling 800-258-2847. Use your MFBF Special Rate Identification #00800212. Sign up for your personal ChoicePrivileges® member number to earn points towards special promotions at www.choiceprivileges.com/signup/.
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Farm Credit East EVP Testifies Before USDA Dairy Industry Advisory Committee
In spite of taking significant steps to reduce their cost of milk production, dairy farmers suffered major losses in 2009. This is according to James N. Putnam, Executive Vice President of Marketing and Financial services for Farm Credit East, the largest lender to the dairy industry in the Northeast. Putnam recently testified before the newly formed United States Department of Agriculture (USDA) Dairy Industry Advisory Committee on the financial health of northeast dairy farmers.
The USDA established the committee to advise the Secretary of Agriculture on policy issues impacting the dairy industry, such as farm milk price volatility and dairy farm profitability. The committee’s role is to recommend ways that the USDA can best address these issues to meet the industry’s needs in the near and long term.
At the committee’s first meeting on April 13 in Washington, D.C., Putnam laid out a northeast perspective of dairy farm profitability based on preliminary results of the 2009 Northeast Dairy Farm Summary. The report, which includes data compiled following a survey of 544 dairy farms, represents a cross section of better-than-average northeast dairy farm businesses.
Putnam informed the committee that figures in the report showed that actual farm milk prices dropped to $13.80 per hundredweight (cwt.) in 2009, down $5.79 per cwt. from the previous year and $2.97, or 18 percent, below the five-year average price of $16.78. This 30 percent plunge came after 2008 when milk production costs had increased dramatically. Losses on northeast dairy farms were considerable. That is, net earnings per cow showed a loss of $386 and the loss was much greater for many farms.
In addition, Putnam added that the net cost of production (without government payments) was $16.62 per cwt., down considerably from $18.14 in 2008, but still significantly above the price that farmers received. Putnam went on to explain that while lower expenses are a welcome change, costs in 2009 were still 10 percent above 2006, the previous low-milk-price year.
Putnam said that without question, 2009 was the most challenging year that northeast dairy producers faced since the DFS began in 1979. According to Putnam, “Throughout the year, our lending and financial services staff doubled their efforts to provide timely, consultative assistance. We rescheduled payments and increased lines of credit where appropriate. We also worked with Farm Services Agency and others to provide important loan guarantees and maintain our overall financial capacity.”
Putnam commended the difficult choices that many farmers were willing to make in order to stabilize their businesses and position themselves for the future. He told the committee that many took extremely tough cost control measures, from shutting down discretionary spending for both capital and operational needs to reducing the amount allocated for family living.
Putnam concluded by saying that Farm Credit East — and other Farm Credit associations — are proud to serve the northeast dairy industry, as it has been throughout its 94-plus year history. “Northeast dairy farming has a strong future and Farm Credit continues our commitment to serve the industry.” ◊
MFBF Marketplace
Do you need a “Pick your Own” sign or a “Equine Liability” sign? Maybe you have questions about manure management or a wetlands-related question. Visit www.mfbf.net to order your signs and booklets today. Don’t have internet? See below for the list of items and call our Ashland office at 508.881.4766 to order today.
MFBF MARKET PLACE ITEMS AND PRICES
Cost Shipping
Summer hat $8.00 $2.00
Winter hat $8.00 $2.00
Member Plate $9.25 $3.00
Equine Sign $15.94 $5.06
Equine Sign (non mem) $22.58 $5.92
PYO Sign $15.94 $5.06
PYO Sign (non mem )$22.58 $5.92
Wetland Book $10.63 $3.37
Wetland Book (non mem)$15.94 $4.06
Manure Book $10.63 $3.37
Manure Book (non mem)$15.94 $4.06
Do You Have Media/Press Contacts?
Have you had a good or a bad experience with a local reporter, newspaper or TV station? Do you know a reporter interested in agriculture?
In an effort to better manage issues, and distribute more information on Farm Bureau and our perspective, MFBF is building up its database of media contacts. If you have a relationship with a reporter or media outlet and would be willing to share them, it would be greatly appreciated.
Please contact Brad at 508.881.4766.
Specifically, we are looking for the name of the reporter, the outlet they work for, contact info and whether you think their coverage of agricultural topics has been fair and accurate. ◊
Bristol County Scholarship Info
The student applying for this scholarship must be either currently enrolled or plan on continuing his/her education at the college of their choice. The following guidelines apply:
The student must successfully complete one semester of study.
The student must be currently enrolled or continuing their education in an agricultural area of study.
The student must submit a written essay on why he/she should be awarded the scholarship
The student must be a resident of Bristol County at time of application.
For a full application please contact our Ashland office at 508.881.4766 ◊
2010 Ag Day White Paper
2010 Agriculture Day at the State House
Massachusetts Agriculture is growing! At a time when many other small businesses are suffering, many Massachusetts farms are weathering the economy quite well and even expanding. Consumer interest in “Buy Local” is at an all-time high with Massachusetts leading the nation in direct farm-to-consumer sales. This success is in large part due to the efforts of DAR, UMass and the many non-profit organizations that support Massachusetts Agriculture. Aside from the fiscal benefits successful small businesses provide, agriculture helps to protect open space, provide fresh and healthy food to residents, and protect the Commonwealth’s cultural and natural heritage.
PRIORITY ISSUE #1 –
Fiscal Stability
The Commonwealth is facing a record budget shortfall. Agriculture is a bright spot in the Massachusetts economy. However, further state budget cuts to agricultural support programs could jeopardize the continued success of this sector, and the jobs and tax dollars it provides. The Department of Agricultural Resources (DAR), UMass Extension and many of the non-profit groups which support agriculture have already taken significant hits. These include the total loss of the $3million Ag Innovation fund, revenue shortfalls which negatively impacted the Linked Loan Program passed under the Dairy Farm Preservation Act, and recent 9C cuts which zero funded Integrated Pest Management Programs and eliminated $200k earmarked funding for regional “Buy Local” groups. As we move forward, priorities include:
· The Department of Agricultural Resources (DAR) must be preserved as a stand-alone agency. Few state agencies provide the breadth of services as DAR, or operate as efficiently. DAR should be model for other agencies –not a target for consolidation.
· UMASS Extension needs sufficient funding to maintain programs which provide technical assistance that help farmers to keep pace with environmental regulations, food safety concerns and a changing marketplace. Extension provides research- based, unbiased information on emerging issues of most concern to the Commonwealth constituencies and residents. Extension’s important work focuses on childhood obesity & health, sustainable energy, agricultural economic & workforce development, sustainable food systems, environmental stewardship, food safety, and MA 4-H Science, Engineering & Technology initiative.
· If additional cuts are made to the agricultural programs and services, it is important that DAR, UMass and members of the agricultural community are consulted so as to maintain the ability to leverage outside funds and not jeopardize successful programs. The DAR bond cap must also be maintained at a level which maintains key programs such as APR, AEEP and the Farm Viability. Bond money is often used to leverage federal funding.
PRIORITY ISSUE #2 –
Appropriate Local Governance
It is well known and often quoted that Massachusetts is a Home Rule state. Lesser known is that fact that agriculture is a stated public purpose under the Constitution of the Commonwealth, and that Article 97 of the Constitution guarantees the right of all residents to utilize the agricultural resources of their land. 100 towns in Massachusetts have passed Right to Farm bylaws. 130 have formed Agricultural Commissions.
Massachusetts farmers are strong stewards of the environment and recognize that the integrity of their product is dependent on strong, rational public health laws. The farming community has had a long history of working cooperatively with both legislators and regulators. This has led to some of the nation’s most effective laws relative to animal welfare, the environment, and public health.
Despite all of this, the agricultural community has identified unreasonable local regulation as one of the key barriers to the growth and sustainability of agriculture in the Commonwealth. In particular, Boards of Health requirements – which unlike requirements of other municipal boards, are not subject to Attorney General review and approval – have been identified as problematic. For agriculture to thrive, Massachusetts needs balanced, science-based regulation.
Views on Pending Legislation
HB 715 -An Act to Promote Small Plot Farming
in the Commonwealth Commonwealth:
Small businesses are the backbone of the Massachusetts economy. Yet operations less than 5 acres are not recognized in key provisions of state law. This bill tears down barriers between small and large farms and offers protection and support to numerous small businesses. NOTE: The current draft has raised legitimate concerns, and the bill has been placed in a Study Order. However, we are optimistic that the Environment, Natural Resources & Agriculture Committee can draft a suitable substitute.
HB 3477 -An Act to Protect Farm Viability:
Agriculture has long standing protections from local zoning to assure farm regulations are science based and coordinated statewide. Several
municipalities are now looking to restrict farms through the use of health regulations. This bill would apply the same basic provisions to local health regulations – the assurance that
municipalities cannot prohibit or unreasonably regulate agriculture through health regulations.
HB 3818 - An Act Regulating the Keeping of Swine in the Town of Tewksbury:
This bill would give the Board of Health in Tewksbury the authority to approve and regulate nearly every aspect of how hog farms are run in that town. This would set a horrible precedent for the rest of the state, especially given that few if any Boards of Health have any expertise in agriculture. NOTE: This bill has been placed in a Study Order, and it is unlikely to see further action. Those farmers, officials and legislators who spoke against this bill deserve the thanks of the entire agricultural community. While this particular threat has passed, we need to remain vigilant against similar bills in the future.
Complete List of Supporting Massachusetts
Agricultural Organizations:
MA Nursery and Landscape Association | MA Maple Producer’s Association | MA Farm Bureau Federation | New England Small Farm Institute | Northeast Harvest Buy Local | Pilgrim Resource Conservation & Development (RC&D) Community Involved in Sustaining Agriculture (CISA) | MA Association of Agricultural Commissions Steering Committee | Massachusetts Agriculture in the Classroom, Inc. | Northeast Organic Farming Association – Massachusetts Chapter | Mass Farm to School Project | Project Bread - The Walk for Hunger | Massachusetts State Grange (Patrons of Husbandry) | Mass Farmers Markets | New Entry Sustainable Farming Project | UMASS Extension | Berkshire Grown |New England Vegetable and Berry Growers Association | MA Flower Growers Association | American Farmland Trust | SEMAP – Southeastern Massachusetts Agricultural Partnership | MA Fruit Growers Association | The Topsfield Fair |MA Turkey Growers Association | Sustainable Nantucket | Massachusetts Christmas Tree Association | The Food Project | MA Association of Dairy Farmers |MA Farm Wineries and Growers Association |Cape Cod Cranberry Growers Association |MA Wood Producers Association | Patriot Resource Conservation & Development (RC&D) |Sustainable Business Network of Greater Boston.
Farm Bureau Discount RX Card Info
Some MFBF members at CVS have been told that the RX card is “not valid in Massachusetts.” If you are told this at one of these or any other location please inform the pharmacist or technician to use condor code 25875 in the CVS pharmacy system. This code is assigned to the United Networks of America discount prescription program.
If you experience any additional problems, please contact Cheryl Lekstrom in our Ashland office at 508.881.4766 or via email at cheryl@mfbf.net
Farm Flood Damage
Massachusetts office of USDA Farm Service Agency has applied for funding that would help Massachusetts farms with severe flood damage to clean up and fix crop land. If approved the funding would be used for the removal of debris, fixing of trenches in fields and the repair of damages occurred to farm structures due to the flooding. Any damage to roads caused by the flooding is not eligible for the funding as well as any farm that is in a flood plain is not eligible.
There would need to be a minimum of $1,000 worth of damage and your local FSA office would need to come and visit for approval. Contact your local FSA office for more information and to register for a site visit.
Ag Bloggers Wanted
MA Farm Bureau is getting ready to launch its own blog. This is a great way to get the word out about issues and topics important to Massachusetts agriculture. We are looking for submission of blogs posts from MFBF members. Posts can be almost any topic so long as it relates to agriculture and doesn’t portray other members or sector of agriculture negatively. Ideally, posts will be about one page long.
This will be an interactive site, and members of the public will be allowed to post comments. Authors will be expected to monitor their posts for one week after they are posted, and to participate in online dialogue.
If you are interested, or would like to learn more contact Brad at 508.881.4766 or at brad@mfbf.net