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PREAMBLE

RURAL POLICY

 

COOPERATIVES

ENERGY

 

ENVIRONMENTAL QUALITY

 

FARM BILL LEGISLATION

INTERNATIONAL TRADE

 

U.S.D.A.

DISASTER PROGRAMS

GRAIN MARKETS AND INSPECTION

 

MARKET DEVELOPMENT

SOIL AND WATER

 

TRANSPORTATION

ECONOMIC POLICY

 

FARM CREDIT

 

TAXES

SOCIAL POLICY

 

EDUCATION

RURAL HEALTH CARE

 

SPECIAL AREAS OF CONCERN

 

2005-2006 Nebraska Farmers Union Policy

Adopted at the 92nd Annual Convention of Nebraska Farmers Union, December 2005

                                             

PREAMBLE

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            Farmers Union of Nebraska strongly believes in the values of family farm, owner-operated agriculture.  We believe strong rural communities, the protection of our soil and water resources, and healthy democratic government are linked to the economic well-being of family farmers here and around the world.  We believe in more cooperation between farmers both here in America and around the world. 

            A strong rural economic base linked to parity prices is a key building block for a strong local, state, national and world economy.  We remain wholly dedicated to the strengthening of the family farm system and resolutely opposed to an industrialized type of corporate farming or to domination of farm ownership and operation by off-farm or alien interests.

 

RURAL POLICY

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Family Farm Definition

            A “family farm” is ideally one which is owned and operated by a farmer and his or her family, with the family providing labor needed for the farming operation, assuming the economic risk, making most of the management decisions, reaping the gains or losses from the operation, and depending primarily on farming for a living.

 

Rural Economic Development

            NEFU is vitally concerned over the continued deterioration of our rural communities.  Land and the crops and livestock raised on it furnish the rural community with its economic base.  Any true rural development must recognize this fact. 

            Farmers Union supports the only rural development policy which will work:  One which focuses on vitalizing the family farm (not large industrial farms) through the use of government programs, fair crop prices, credit, taxes, conservation, and good stewardship. 

            We ask the state of Nebraska to emphasize cooperative development and accelerate the growth of our rural economy, making cooperative development a priority in using our financial and technical resources.  We ask the state of Nebraska to model North Dakota, Minnesota, Colorado and other more progressive states in their promotion of rural economic cooperative development.  We urge an emphasis on the development of wind energy as a key component of rural economic development.

            NEFU opposes the trend in state government of targeting rural programs for elimination or reductions in funding when state budget cuts are required.

 

Land Ownership

            Farmers Union of Nebraska stands opposed to non-family owned corporations engaging in farming.  They have access to capital from other industries that frequently enjoy favored treatment, as well as subsidies, the ability to use tax advantages, and the ability to interfere with and manipulate markets for farm products to the detriment of the family farmers.

            Corporate farming should be restricted to family farm corporations. Our state must be kept abreast of the number of corporate farms in Nebraska including partnerships that participate in agricultural production.

            We pledge support and work with our public officials for the enforcement and implementation of the Nebraska Constitution as amended, which prohibits farm purchases by non-family farm corporations. We ask for vigorous enforcement of the Initiative 300 law by all pertinent state officials. 

            We support Article 12, Section 8, of the Nebraska Constitution (Initiative 300). We oppose any amendments to weaken Initiative 300.

            We ask for enforcement of the prohibition of using Limited Liability Companies as a means to circumvent restrictions in I-300, otherwise known as Article 12, Section 8 of the Nebraska Constitution.

            Nebraska Farmers Union is opposed to the factory-style, highly concentrated production of livestock and poultry.

            Nebraska Farmers Union opposes tax policies that artificially drive up ag land values such as Section 1031 tax exchanges of the Internal Revenue Code.

 

Rural Zoning

            We urge the state of Nebraska to maintain a process of land planning and develop a balanced land-use plan under local control which takes into account the needs of agriculture, housing, and essential economic activities.  The plan should preserve the more productive land for agricultural purposes and marginal land should be used for urban development, highways, cities, etc.  The County Planning Commission should be a majority of rural citizens to assure proper use of agricultural land.  We urge Farmers Union members to take an active part in rural zoning and land-use planning.  We recommend that the procedures used by a city be made clear prior to adoption.

            The Nebraska Farmers Union strongly reaffirms its support for rural planning and zoning. We oppose any attempt by the state of Nebraska and/or large agribusiness to weaken the ability of counties to enact and enforce rural zoning. NEFU further calls on all county commissioners and supervisors to resist any performance zoning and all other attempts to weaken or eliminate the power, authority, enforcement and existence of county zoning authorities.

 

Eminent Domain

            More restrictions should be placed on the granting of eminent domain with provisions that provide farmers or other landowners with adequate compensation which reflects future projected income losses when they lose property through eminent domain proceedings.

            We urge the Nebraska Legislature to limit Natural Resource Districts’ use of eminent domain authority when acquiring land for single-purpose recreation projects.   We prefer a willing buyer-willing seller relationship to meet recreation needs.

            We feel that land acquired by Natural Resource Districts, for single or multi-purpose recreation projects, should not be used for agricultural production.

            We oppose the use of eminent domain for the purpose of acquiring property for private development and benefit.

 

COOPERATIVES

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Support and Recommendations

            We are opposed to any attempt to amend and weaken the Capper-Volstead Act, which gives farmers the right to join together in cooperatives to market their products or to purchase supplies.  Farmer-owned cooperatives need to be strengthened.  All farmers should help head off attacks on the Capper-Volstead Act and provisions in the anti-trust laws that protect and enhance cooperatives.            Nebraska Farmers Union has opposed such mergers as Cargill-Continental, Smithfield-Tyson and Monsanto-Novartis, also opposes the mergers of cooperatives such as that proposed by Cenex Harvest States Harvest States and Farmland.  We believe cooperatives should not engage in agricultural production activities in direct competition with agricultural producers.

            Cooperatives should become more active in grain exportation.  This would lessen the stranglehold the large, multi-national grain companies have on America’s farmers and our overseas customers.

            We support and encourage efforts by large cooperatives to pool sales of wheat and other grains, cotton, soybeans, dry edible beans, and other commodities and urge producer cooperatives to participate in such programs where available.

            We believe in maintaining the co-op principle of one vote per member.

 

Cenex Harvest States

            We commend Cenex Harvest States  for its efforts in expanding its trade areas to Nebraska and providing more services to affiliated cooperatives.  It is essential that these cooperatives review their goals from time to time, promote unity among Farmers Union and cooperatives, encourage young farmers to be involved in co-ops, and promote the use of cooperative educational material in our schools at all levels.

            We also commend and encourage Cenex Harvest States  for its efforts in providing ethanol to its patrons.

            We recognize the progress Cenex Harvest States  has made in serving farmers and ranchers in Nebraska.  NEFU is proud of Farmers Union’s early support in the development of Cenex Harvest States, a regional cooperative that continues to provide financial support to our organization.  We urge all farmers and ranchers to recommend that their local cooperatives purchase supplies from Cenex Harvest States .

 

 

ENERGY

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Support and Recommendations

            Our Congress should adopt a comprehensive national energy policy that aggressively incents and grows alternative energy sources.  This should include incentives for farmer and community owned ethanol, biodiesel, and wind energy.  One important way is through government incentives, i.e. tax credits.  An excess profits tax could be used for this purpose.

           

Crude Oil Entitlements

            A new crude oil entitlement program is necessary to resolve the serious disparity in price between foreign and domestic crude.  Cooperatives and independent refineries are almost solely dependent on foreign crude for their refineries and this disparity provides a serious competitive pricing advantage for the major oil companies to the detriment of supply cooperatives.  We urge the government to take steps to provide an equitable crude entitlements program for cooperatives and independent refineries. 

 

Rural Electrification and Telephone

            We support the continuation of the Rural Utilities Association as the primary source of financing for the rural electric and telephone systems.  We continue to support adequate funding for special low-cost loans for those systems which operate in very difficult economic circumstances, including serving sparsely settled rural areas.  We support the efforts of the rural public power districts and rural electric cooperatives in their efforts to secure permanent capital for the REA Revolving Fund.

            We oppose any efforts to weaken the ability of REA to assist the nation’s rural electric systems in their mission to provide reliable, adequate electric service at affordable rates to their consumers.

            We oppose any legislation which would result in the loss of electric service area around the perimeters of municipalities by the Rural Public Power Districts and any legislation aimed at reducing payments to Rural Public Power Districts which may be made as compensation for the loss of such customers through the course of territorial annexation.

            We oppose the sale of government-owned PMA’s (power marketing associations) to the private sector.

            We oppose any merger in the field of energy that does not benefit all consumers, especially small consumers.

 

Ethanol and Alternative Fuels and Lubricants

            Farmers Union of Nebraska has been a steadfast supporter of ethanol fuel production since its inception in the early 1970’s.  Ethanol as a fuel, fuel extender, or octane booster, will provide an alternative fuel source for America.  Now more than ever before it is important to rapidly develop ethanol fuels in order to reduce our dependency on foreign nations for fuel and to hold down fuel prices.  Surpluses of wheat, corn, and other feed grains should be utilized for the production of ethanol.

            We favor the retention of the 5.4 cent exemption at the federal level. The government should assist in the development of domestic ethanol fuels by permanently extending the tax exemption of ethanol blended fuel, creating other tax incentives for fuel ethanol producers, guaranteeing loans for fuel ethanol plants, and requiring that all gasoline be a domestic blend.

            Farmers Union shall provide any assistance possible to help cooperatives and others who desire to build an ethanol plant.

            We urge expanded research and development of the use of ethanol products and by-products as well as the use of oil-seed crops for lubricating oils and fuels.  We further urge more state and federal efforts to encourage the development and wide spread use of ETBE and recommend that all tax credits and incentives now available for ethanol production be extended to include ETBE. 

            We oppose any use of ethanol funds, except for ethanol production or promotion.

            We support the production of automobiles using an 85% ethanol and 15% gasoline blend.  NEFU urges the mandated use of at least a 10% blend of ethanol in the U.S.

            Nebraska Farmers Union supports enactment of legislation to require minimum standards for the use of oxygenated fuels in gasoline made available for sale in Nebraska.

            Nebraska Farmers Union opposes any increase of commodity checkoffs in excess of the one-quarter cent per bushel rates used to fund building of new ethanol plants.

Nebraska Farmers Union supports efforts to fairly fund new ethanol plants after July 1, 2004.

Nebraska Farmers Union encourages farmers to use ethanol in all gasoline vehicles and in all gas powered equipment.  We encourage the use of ethanol in local, county and state government vehicles.

            We urge all farmers co-ops to offer ethanol and biodiesel for sale and encourage them to pass state and federal subsidies on to consumers.  NEFU supports policy that encourages farmer owned cooperatives to actively pursue ethanol and biodiesel use and manufacturing development.  We urge the Nebraska Ethanol Board and the state of Nebraska to encourage cooperatives to become actively involved in ethanol  and biodiesel production.

            Nebraska Farmers Union supports an effective state level promotion and development strategy for soy diesel, similar to Nebraska’s efforts to develop and promote ethanol.

            We oppose importation into the U.S. and sales within the U.S. of foreign ethanol and alternative fuels and lubricants, as long as such products can unfairly compete with domestic products.

            In order to protect our underground water supply, NEFU supports the complete phase out of methyl tertiary butyl ether (MBTE) as a fuel additive and we oppose any liability protection for those who produce MBTE and sell it.

 

 

Public Power

            We support the Nebraska Public Power system and oppose any effort to privatize that system.  Nebraska Farmers Union opposes federally-mandated electric deregulation as rural consumers will be required to bear the cost of large consumers, who under deregulation could shop across the country for the cheapest power, and leave electric grids at any time without notice.

 

Strategic Petroleum Reserve

            We support the program of storing crude oil to provide an opportunity to offset regional and national oil supply shortages.  We urge release of these reserves to cooperatives and other independent domestic refineries at equitable prices at the early stages of any supply disruption in order to minimize economic damage caused by disruption driven price increases.  We support creation of strategic reserves in other fuel sources, including ethanol.           

 

Energy Management and Conservation

            We urge consumer-owned utilities to develop, demonstrate, and increase the economic feasibility of the use of renewable and other alternative energy systems, including wind energy.

            We must halt the leasing of public energy resources to the same private corporations who already monopolize our energy supplies.  Public resources should, to the greatest extent possible, be publicly developed on a not-for-profit basis.  First preference should be given to publicly and cooperatively-owned utilities.  Second preference should go to private independent companies who do engage in competitive practices.  Consumers need to be mindful of the public service organizations they own.  Beautiful buildings, high salaries, and lucrative expense accounts generally translate into excessive cost to the consumer.  The United States should take steps, in consort with other nations, to bring the operations of multi-national corporations under surveillance and control in the general public interest.

            NEFU calls for the car industry to help solve our energy problems by making cars that get better gas mileage. The technology is available to make us energy independent.

 

Wind Energy

Nebraska Farmers Union supports the development of wind energy. In order to maximize both environmental benefits and rural economic development, we urge the Nebraska public power system to continue to support and expand their renewable portfolio for all power sold in Nebraska; we ask the Nebraska legislature to institute net-metering for small wind systems, and to create a public benefits fund to support a wind energy promotion and authority board. Nebraska Farmers Union supports fair compensation to farmers and/or landowners as community-based energy development (C-BED) is used to generate wind energy in Nebraska.  NEFU supports state incentives that could be used in tandem with federal production tax credits to enable farmers, ranchers, non-profit organizations and community-based public entitites to construct their own wind turbines.

 

Natural Gas

            Natural gas is used for a wide number of critical applications in agriculture beyond energy, such as fertilizer production.  Because natural gas is a finite resource, we urge industries and power companies to look at other alternatives to natural gas.

            We support legislation to provide for mandatory allocation of natural gas to fertilizer plants.  No nitrogen manufacturing plan should be forced to operate at less than full capacity due to inadequate supplies of natural gas as a feedstock.

 

 

ENVIRONMENTAL QUALITY

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Commitment

            NEFU supports a less partisan selection process and greater accountability for the members of the Environmental Quality Council and the Executive Director of NDEQ, to better protect the natural resources and represent the interests of all the citizens of Nebraska.

            We urge both the government and private groups to squarely face the pollution problems that plague our country.

            While we are firmly committed to preservation of the environment, we are opposed to arbitrary action taken by the EPA to remove certain farm chemicals and pesticides from the market unless their potential harm can be clearly demonstrated.

            NEFU proposes that any and all sanctions or controls (such as water special use areas) should apply to all users--ag, industrial, commercial, and municipal in that area, and should not be discriminatory.

            We support more local input from those affected on decisions regarding hazardous decontamination projects.

            We oppose efforts to weaken clean air standards through the rollback of emission standards for existing power plants.

 

Disposable Wastes

            We urge manufacturers to limit the use of hazardous materials where other alternatives are available.

            We oppose any nuclear or hazardous waste site being placed over any underground water supply or near any flowing stream.

            Residents of areas in the vicinity of proposed hazardous waste disposal sites may have reasonable and just cause to oppose such activities.  Therefore, we encourage the Nebraska Environmental Control Council to give highest priority to the licensing of hazardous waste areas in locations which are most environmentally acceptable for that purpose, and to continue requirements providing that hearings be held within the immediate vicinity of potential or proposed waste disposal facilities to allow for reasonable public input.

            Transportation of hazardous wastes presents as much or more danger on rural roads as on the Interstate.  Therefore, we oppose the present practice of transportation of hazardous wastes on secondary highways and roads.

            We encourage all agricultural producers to practice recycling of pesticide containers, use of soluble packaging and returnable and/or reusable containers.

            Because of our concern over the disposal of materials such as chemical containers, X-ray apparel, and low level nuclear waste, we support research and development for a better way of treating all waste materials that face us today, both hazardous and non-hazardous.

            Nebraska Farmers Union supports the removal of toxic and hazardous waste from commericial fertilizers.

 

Livestock Waste Management

            Nebraska Farmers Union supports fair, appropriate and reasonable enforcement of DEQ regulations regarding Title 130.  NEFU supports fair, appropriate and reasonable regulations and penalties for air, water and dust pollution.   No construction of any kind should be allowed until a workable construction permit has been approved and issued.  If any construction is started without a permit, a permit will automatically be denied.  Inspections should be made on a regular basis on existing facilities.  We urge that allowable limits be observed and/or established as to the amount of nutrients on the land, and not allow more nitrogen and phosphorous than a crop can use.

            We support establishment of a graduated scale of fees, regulations, and inspection to move the focus to large operations and to exempt small producers from fees, inspections and most regulations.  We call on the DEQ to deny any consideration for permits from those operations that are in violation of Article 12 Section 8 of the Nebraska State Constitution and to also deny any permits to operations which have been labeled as bad actors in other states.

            Large scale operations should be required to have financial assurance, including in the event of bankruptcy, to cover closure and cleanup as a part of the permit process.

            Dead animal disposal should be limited to proper incineration, rendering or composting.

            All existing large-scale operations need to be brought into compliance with current regulations as they are updated.

            NEFU supports efforts to force DEQ to hold community hearings for large livestock facilities proposed in unzoned counties.

Title 130 should include:

1.      Identification and purging of bad actors.

2.      Development of regulations for site selection for CAFOs.

3.      Regulation of large CAFOs as industrial sites, instead of as farms.

 

Global Warming

            Nebraska Farmers Union is concerned about the current U.S. position on the Global Warming Treaty. This treaty does not treat U.S. farmers fairly, leaving them at an economic disadvantage to third world producing countries by not binding them to the same standards U.S. producers would be bound to.  Therefore Nebraska Farmers Union insists that any Global Warming Treaty be binding to all countries involved.

            Evidence exists that increasing levels of atmospheric carbon dioxide pose a threat to agriculture’s ability to produce food.  Proven measures are known that trap (sequester) carbon dioxide in the soil making it more resilient to erratic and severe weather.  Nebraska Farmers Union supports a carbon credit program be adopted to compensate and encourage farmers and ranchers to sequester carbon in the soil, and that any carbon credit payments be administered and paid directly to farmers and ranchers through the federal farm program.

 

Recycling

            In order to reduce environmental damage, conserve natural resources, and prolong the useable life of landfills we support and encourage programs at the local, state, and national level that will collect and recycle both solid and fluid materials.  We urge that all retail outlets serve as recycling collection points or work together to provide such points in the community.  If necessary we support the passage of a container deposit and recycling law to promote and fund recycling programs.

 

FARM BILL LEGISLATION

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Parity

            Farmers Union of Nebraska’s commitment to the parity price formula, using the base years (1910-1914) established by law as the standard to determine prices for agricultural commodities, is unwavering.  Farmers Union believes that price supports for agricultural commodities should be linked to the parity index so that the levels of support of farm prices will be adjusted regularly to reflect changes in costs to farmers producing farm commodities for family living.

            We consider the parity system to be as realistic, justifiable, and up-to-date as the Consumer Price Index upon which almost 100 million Americans rely for adjustments in their economic returns, wages, benefits, or retirement pay as costs rise.

            Farmers Union calls for a return to the Carl Wilkin parity concept used  in the Truman Administration to maintain 100% of parity plus or minus 5% tolerance for all agricultural and mineral productions as the basis for stabilizing our economy.

            We favor an “Equity of Trade” form of foreign trade whereby all trade between countries shall be conducted through a computerized bartering system with prices based on our parity price for all items of trade.

            Our organization further commits itself to working within the written framework of Farmers Union policy to educate the public and policy makers on the parity concept.

            Nebraska Farmers Union calls for an ongoing National Farmers Union caampaign to press Congress to establish CCC loan rates based on parity prices for storable farm commodities.

 

Need for Effective Farm Programs

            Farmers of our nation are plagued by a “cheap raw material and low farm price” policy.  This policy results in the devaluation of our agricultural, energy and water resources, without compensation to either the farmer or the nation.  This policy carries over into an international policy of refusing to cooperate with other nations in developing international commodity agreements.  As a result, the underdeveloped, as well as some developed nations, may lose the incentive to produce agriculturally or develop their rural economies.  On a global basis, this policy contributes to wide-spread unemployment, cheap labor, malnutrition, and political instability in developing countries.

            More than 32% of the gainfully employed people in Nebraska and 22% in the nation depend on agriculture and agriculture-related enterprises. Many of these enterprises are now depressed economically because of lack of purchasing power by farmers. 

            Delayed interest payments and delayed principal payments, although helpful, are not the answer to our problems.  What farmers need now is a fair profit from our products.

            The answer to the problems of the city, of joblessness, bank failures, agriculture lenders, and other rural businesses and the balance of payments is the establishment of full parity for the American farmer, to put him on an equal footing with the rest of the US economy. This answer would no doubt positively serve many other areas of the world as well.  We therefore call upon our government to expedite those provisions now in law, and to support new provisions, which will raise prices of agricultural products to equitable levels.

           

Recommendations

            We support a supply management program which would keep supplies of grain in balance with demand and stabilize prices at a level that would provide producers a reasonable profit and consumers a dependable food supply.

            We are opposed to the “de-coupling,” triple base option, revenue assurance, block grants, and other farm program proposals which would phase-out farm programs in 5 to 10 years.

            We believe the acreage reduction program should be replaced with paid land diversion set aside programs which would do away with inequitable historical acreage bases and allow producers to plant any crop they wanted as long as they complied with the prescribed set aside and paid land diversion requirements of these programs.

            Since the production of crops for feed, fiber, and food has increased greatly in the world in recent years, and since the prospects of the United States increasing its exports of such crops are bleak, the Farmers Union believes that research for new uses of these crops such as sweeteners, alcohol for fuel, and bio-degradable plastics should be expanded immediately.

            We urge continuing support and involvement in the Campaign for Sustainable Agriculture.

            The 1996 Freedom to Farm Act severely undermined the farm economy. The new Farm Bill is also inadequate.  We call for a rewrite of current farm policy.  The replacement farm bill, at a minimum, should sharply increase the CCC loan rates, institute a farmer-owned reserve, allow inventory management of excess stock, require mandatory price reporting and country-of-origin labeling, and put a moratorium on all ag-related mergers until the impact on the nation’s food system is analyzed.

            We urge the elimination of the LDP policy option in farm policy, and urge its replacement with only a non-recourse loan.

            In order for non-recourse loan rates to maintain the historical stabilizing effect on commodity prices, the short-selling of commodity futures contracts by hedge funds must be limited by the Commodity Futures Trading Commission (CFTC).

            Nebraska Farmers Union opposes the release of CCC loan balances of commodities still under loan, on a county basis.  This information is used by grain buyers to determine free stocks of grain in the area.

We believe farm program payments should be based on updated base and yield data.

 

Price Support Levels

            Commodity loan rates should be the primary component of the price support system.  Loan rates should be non-recourse and at least 90% of parity.

 

Extension of CCC Loans

            Wheat, feed grain and oilseed producers should have the option to extend their price support loans for an additional year and receive storage payments for doing so.

 

Revolving Fund for CCC Loans

            We urge that a revolving fund for CCC loans be established, similar to those used by other federal lending programs, thereby eliminating the problem of CCC loans being called budget expenditures.  Commodity loans from CCC are fully collateralized, and borrowers pay interest on these loans.  Such loans should not be considered as budget expenditures.

 

Discrepancies in Loan Rates

            Disparities between county loan rates should immediately be corrected by either administrative or legislative action by going back to the formula used to establish county loan rates in 1986 and prior years.

            There should be no difference in the CCC loan rates between states.

            Posted county prices should be based on local terminal markets rather than gulf prices.

 

Discretionary Secretary of Agriculture Authority

            We urge the repeal of any legislation which gives the Secretary of Agriculture the discretion to lower the CCC loan rates established by Congress.

 

Targeting Farm Program Benefits

            Target price and CCC loan coverage should be limited to a sufficient volume of production (bushels, pounds, bales) to yield a fair labor and management income to each producing family.  Such an approach would include:

            within such an overall limit, vary target prices for such farmers’ first block of production, then lower target prices for successive blocks of production.

            the total amount received from USDA payments would be limited to $175,000 annually.

 

Grain Reserve Program

            Farmers Union supports the creation of a Strategic National Food Reserve for national food security purposes.  The policy and objectives will be to ensure a reliable source of food to the United States consumer and a reasonable income to the United States producer. The Farmer-Owned Grain Reserve (FOR) should be reinstated with the following provisions:

            1.   Loan rates should be the same as the regular non-recourse CCC loan, and not less than 100% of the cost of production.

            2.      The trigger release level should be not less than 110% of the loan rate.

            3.   Storage payments made to farmers shall not be less than the average commercial rate per year, paid in advance.

            4.      The upper limits shall be no more than 2 years production for any producer.

            5.      Farmers will have the option of 1, 2, or 3 years participation in this reserve.

            6.   The Commodity Credit Corporation should reinstate the program for producers to build on-farm storage with low cost loans.  Farmers should have the option to extend their CCC grain reserve loans for an additional year.

            7.   Producers will be able to substitute grain in this reserve as long as the substitution occurs within the county or farm operations.

            8.       Immediate entry into this reserve.

            9.       Reserve grain will not accrue interest.

            10.  The full compaction factor will be used when measuring farm-stored grain and county committee will have the final say in dealing with grain shrinkage.

            11.  The amount of grain in the Farmer Owned Grain Reserve should include a minimum of 500  million bushels of wheat and 1 billion bushels of feed grains.  There should not be an upper limit.

            12.  Anytime the Farmer Owned Reserve does not reach the minimum level the CCC will purchase grain in order to maintain reserve levels.

           

 

 

Conservation Programs

            NEFU supports the Environmental Quality Incentives Program (EQIP) with a $30,000 cap over five years.  The Agricultural Conservation Program (ACP) and the Great Plains Conservation Program should be reinstated and fully funded so that any producer who wants to do conservation work would be eligible to receive up to $5,000 in cost-sharing funds annually.

            These programs are now being funded by the dollar amounts that they were fifty years ago.  The Gross National Product has increased forty to fifty times since then.

            We recommend that farmers be given an option to construct new dams regardless of crop history or acreage size, and that land designated as a dam site be eligible for ACR acres.  We believe this will  provide adequate financial incentives to encourage farmers to increase wetland, create areas suitable for tree planting, control flooding, improve water quality and wildlife habitat.

 

Conservation Reserve Program

            The CRP Program has helped protect our more fragile soil and water resources and provides benefits to all commodity producers because it prevents price-depressing overproduction on fragile land.  Nebraska Farmers Union supports increased funding for the CRP Program and expansion of the number of marginal acres eligible to be protected.

            NEFU urges examination of the process now used to enter land into the CRP.

 

Normal Cropland Acreage

            To maintain flexibility in cropping systems we favor reinstating the Normal Crop Acreage which would allow a producer to plant any crop he chooses after complying with set-aside and land diversion provisions for each crop grown on the farm.  Normal cropland acreage should include legumes and tame grasses.

            We also favor a provision which says that Normal Crop Acreage cannot exceed 90% of the total cropland on the farm.  NCA base should not be lost due to the under-planting of program crops.

 

Crop Insurance Planting Dates

            The final planting dates for Nebraska for wheat, grain sorghum, soybeans and corn are currently inequitable in some areas, comparable in some cases to final planting dates in Colorado (where elevation and climate are significantly different) instead of final planting dates in Kansas (where elevation and climate more nearly resemble ours).  We recommend that the final planting dates for crop insurance for Nebraska in areas similar to adjoining states should coincide with FSA crop reporting dates.

We recommend extending the acreage reporting dates to be more reasonable.

 

Dairy Program

            The Farmers Union of Nebraska believes the Dairy Industry should be included in supply management legislation.

            We believe the Dairy Termination Program was very successful in reducing CCC purchases and further believe a supply management program must be instituted to keep production in the long run in line with demand..

            We believe the special milk program should be reinstated in schools at 1980 levels.  NEFU supports breakfast being offered in all K though  12 schools in Nebraska and nationally which offer a school lunch program.

            We support the 36-member Dairy Promotion Board.

            We also believe that our nation’s dairymen should not lose needed revenue when over $846,000,000 of dairy products other than casein and $2.2  billion of meat and meat products are imported annually.

  We believe that:

1.  CCC stored non-fat dry milk should be offered to the bakeries of our country for domestic consumption at the world market price.

2.      The FDA should increase the federal minimum standards of fluid whole milk to 8.7 percent milk solids non-fat; 10 percent for low fat, and 9 percent for skim  solids non-fat; and further that the FDA, in the best interest of both consumers and dairymen, should do everything in its power to insure that all milk marketed as fluid milk meet or exceed these standards.

3.      Since products containing imported casein, such as non-dairy dreamers and whipped toppings, displace domestic sales of dairy products, we urge USDA and FDA inspection and regulation of casein, milk derivatives and milk adhesives imported for food use.  The federal government should establish tariffs on the import of all dairy ingredients that displace domestically produced milk usage including animal feed ingredients.

4.      Imported milk protein concentrate and ultra-filtered milk products have created a significant loophole in U.S. dairy trade policy and have distorted the U.S. milk market.  We support maintaining FDA’s current definition of milk to prevent milk protein concentrate or ultra-filtered milk from being used for standardized cheese.

 

Any new Farm Bill must include an inventory management program, and must set dairy price supports at levels that ensure producers receive a fair return on their labor and investment.  Dairy price supports shall be adjusted annually to reflect inflation and long term productivity. Never again should a farm bill be passed that continually lowers the price of a commodity as the dairy section of the 1985 Farm Bill did to the milk producer.  Dairymen were forced to milk more cows and work more hours to be able to cash flow their operation.  Some dairymen, as a result of negative cash flow, brought about not because of inefficiency of their operation, but because of a lower value of milk support levels allowed in the 1985 Farm Bill, were forced to quit dairying and lose what had been a lifetime of investment in their operation.

            Supply management should include two-tier pricing with the domestic price at 100% of parity.

            We support the creation of a National Dairy Farmer Production and Reserve Board.

            NEFU supports the Nebraska Dairy Industry Development Act.  In the absence of Federal Order #65 Promotion Agency, this contingency legislation provides the dairy industry of Nebraska the opportunity to receive and disperse promotion income as it relates to Nebraska production and needs.

 

Livestock

            Nebraska Farmers Union supports inclusion of a Livestock Title in all Farm Bills.

Farmers Union of Nebraska favors legislation which would correct the present price inequity in the meat industry which causes the unnecessarily large price spread between the producer and consumers. 

            We urge the exploration of alternatives to implement competitive pricing in the meat-packing industry, such as farmers pooling livestock and different types of farmer networking to increase the value of livestock prices for the producer.

 

Competition and Anti-trust

Nebraska Farmers Union supports inclusion of a Competition Title in all Farm Bills.

The concentration of ownership of the nation's resources and wealth, particularly in the food industry, threatens family agriculture, small business, and ultimately all consumers.  Such concentration and agribusiness consolidation reduces or eliminates competition for both farmers and consumers, thereby destroying the proper functioning of our marketplace.  Such concentration also interferes in the democratic process of developing sound national farm, food, and trade policy.

Therefore, we support a broad range of measures to restore marketplace competition, promote new competition, provide fairness to farmer/agribusiness relationships, and reduce anti-competitive mergers. Such measures should include the following.

We call upon USDA to help guard against monopolistic unfair trade practices, especially in the food industry.  We call for a merger moratorium on all large agribusiness and retail food business mergers, until new effective anti-trust and competition policies can be enacted.

We support extending consumer protection law, which prohibits unfair or deceptive acts or practices, to farmers in their marketing relationships with agricultural companies.

We support the regulation of captive supplies of livestock through limiting the amounts of captive supplies and/or requiring that such captive supply arrangements be put out to bid in an open and public manner.  We support prohibiting packers and processors of red meats from owning or raising livestock more than 7 days prior to slaughter. 

We support farmer’s ability to choose arbitration, mediation, or a civil trial in any and all disputes between farmers and agribusinesses.  We oppose agricultural or marketing contracts that force farmers to give up rights to mediation or civil trial.

We support disclosure of key information in an agricultural production contract in plain English on the cover page prior to farmers signing the contract.

 

INTERNATIONAL TRADE

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Support and recommendations

Nebraska Farmers Union has consistently attempted to adhere to the philosophy and practice so ably set forth in the Preamble to and the Constitution of the United States of America.  We believe that governance is best administered by the smallest legal unit of society capable of administering any given condition.  We further believe that sovereignty is a necessary structure in the administration of governments.

            Having set forth this standard for the consideration of the posture, structure, and activity for the WTO, we submit the following:  We support the concept that we the people are now living in a progressively smaller, confined space in which the facilitation of trade can lead to a better life for all people.  Trade as a tool for the accommodation of all people is desirable;  however, as a tool to exert power to control, it is destined to create long range cataclysmic destruction.

            With the above in mind, it is evident that the deliberations of the representatives, who should be chosen for their ability to represent all people within their sovereignty, must be open and available to all people. The deliberations must be directed to the enhancement of all people’s common desires of tranquility, peace and love.  Recognizing that geography, culture and personal interest and capabilities are divergent to an extreme;  the rules, regulation and control of any trade process must be flexible, tolerant and arbitratable.  It must be borne in mind that any trade is only as good as the satisfaction derived by all parties involved.

 

International Marketing Agreements

            Nebraska Farmers Union disapproves of the World Trade Organization (WTO) and the international trading organizations which support the WTO’s march to globalization. We urge the Secretary of Agriculture, the President and Congress to support a new trade negotiation process outside the World Trade Organization to negotiate a system of shared production cuts between the major agriculture exporting nations of the world in time of burdensome supply.  In addition, they should negotiate a shared international food reserve which would stabilize agricultural commodity stocks while protecting food security interests.  Such agreements could raise and stabilize world grain prices at fair levels, and reduce overall trade tensions.

            Nebraska Farmers Union opposes Fast Track negotiating authority or any similar authority for the President.

            The United States shall negotiate with other major grain-producing countries for the purpose of establishing a world price on export grain.  The U.S. is the largest grain producing nation that exposes its grain producers to the export market without price protection.  Farmers, co-ops, and farm organizations should be consulted in this process.

            If, for any reason, an international grains agreement cannot be reached, we ask that grain exporting countries form an agreement to provide minimum world trade pricing levels that provide a return to producers to cover the costs of production and a reasonable profit.

            We also oppose any trade agreement that does not protect farmers from the negative impacts of import dumping.  Nebraska Farmers Union is opposed to any trade agreement that allows export dumping.  The Farmers Union of Nebraska feels that export subsidies only cheapen the world price and will be met and lowered by the other grain producing countries. We support trade and farm policies that raise the price levels of U.S. farm commodities to profitable levels for farmers.

            Any international trade agreement should include international mechanisms to equalize the impact of relative rates of currency.

            We oppose any trade measure that in any way restricts any country from being able to develop or implement internal income supports for their ag producers.  We oppose the demolition of tariffs, quotas, and other mechanisms that compensate for the differences in cost of production, standard of living and relative value of currency between the various ag producing nations.

            We support as a goal in any trade agreement the concept of mutually beneficial trade for both producing and consuming countries.  We believe that the food producers in all countries should work together to be involved in the trade policy development in their countries.             Such agreements should promote a stable system of family farm food production both in the US, and throughout the world, thereby also encouraging political stability in many underdeveloped nations.

            Any trade negotiations dealing with the movement of agricultural commodities must take into consideration the highest possible standards that ensure a safe and healthy product is delivered to the consumer with a vigorous inspection system to safeguard these high standards.  We cannot accept any risk that the safe and abundant food supply developed in the U.S. will be jeopardized by trade negotiation compromises. Farmers Union of Nebraska recommends that the quality standards of imported farm products be equal to those set forth for our own farm products.  These standards shall be strictly enforced and the cost of inspection and enforcement be paid by the exporting countries.

            All farm products imported for sale in the U.S. shall be plainly marked as imported, even when commingled with American produced produce. Nebraska Farmers Union calls for immediate implementation of mandatory Country of Origin Labeling (COOL) for agricultural products as directed in the 2002 Farm Bill.

            Nebraska Farmers Union urges the renegotiation of the North American Free Trade Agreement (NAFTA), using a monetary exchange rate and a foreign subsidy program for the basis of the agreement.

            NEFU demands that any agricultural trade agreement address the obvious market-distorting influence of monopolistic and transnational private grain-trading companies. We also disapprove of the loss of any U.S. sovereignty, such as absorbing the U.S. cattle herd into a North American cattle herd.

            Farmers Union of Nebraska is opposed to any export controls on farm commodities which have the effect of driving farm prices down at the marketplace with little effect, if any, on the price of food at the grocery market.  However, if export controls are established, they should not be effective when the cash prices of their commodities are less than 120 percent of parity.

            We support the grain reserve program for consistent grain availability for export with these exports priced at 100 percent of parity.

            We oppose grain embargoes due to the unfair burden placed on the American farmer.

            We support continued funding of the P.L. 480 program and implementation of the Export Credit Program.  We are concerned at the effect of U.S. Cargo Preference on the prices of our farm commodities by the time they reach their destination.

            We oppose Export PIK and Cargo Preference.

            We oppose using the elimination of farm subsidies as a bargaining tool with foreign countries.

            Farmers Union of Nebraska supports the extension of guaranteed export credits to the Commonwealth of Independent States and requests that a significant portion of the guaranteed credit be allocated to feed grains.

            Farmers Union of Nebraska favors the rigid application of the counter-cyclical formula.

            Meat promotion funds shall not be used to promote foreign meat.  We insist that imported meat be subject to the same sanitation, drug residue, and quality standards as U.S. producers must meet.

            USDA should reinstate the sugar import quotas to limit foreign sugar imports which would stimulate investment and employment in the sugar refining industry.  It would help the U.S. achieve self-sufficient sugar production, reduce our nation’s balance of trade deficit, better protect American producers, create a steadily growing market, and better prices for the U.S. corn crop.

            We oppose U.S. agricultural loans or grants or other assistance to countries whose subsidized agricultural products are in direct competition with our own.

            We support a mechanism to implement price reporting on all agricultural commodity imports and exports.

 

U.S.D.A.

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            Farmers Union of Nebraska is unalterably opposed to any further fragmentation of the USDA.  Agriculture is the lifeblood of this country with an essential need for the cabinet-level department in our nation’s government.

 

F.S.A.

            Farmers Union of Nebraska opposes any effort to further consolidate FSA