MAWG State Legislative Update:

Preventing Property Tax Increase Among Priorities

The MAWG has been very active this year at the Minnesota Legislature, as
lawmakers have been working on a $4.6 billion budget deficit that must be resolved by June 30.

One of the main areas of concern for MAWG members is the proposed reduction in funding for the Agricultural Utilization Research Institute (AURI) by approximately two-thirds. This would result in the closing of some offices and a drastic reduction in staff. MAWG is working to restore as much of the funding as possible.

Another area of concern in the budget is the possible increase in local property taxes to offset some of the reductions in state aids in various areas of local government. After the major gains in property tax reform over the past few years, MAWG has been working to prevent any property tax increases.

In terms of policy, MAWG has been the lead agriculture organization pushing for changes to the state Board of Water and Soil Resources (BOWSR). MAWG members adopted a resolution last fall proposing to roll BOWSR into the Minnesota Department of Agriculture to make the agency more farmer-friendly. In the alternative, MAWG has supported an effort to add five actual farmers to the current 12-member board, again in an effort to make the Board more farmer-friendly. Both of these proposals were met with stiff opposition from environmental groups and other agencies, such as the DNR. The Pawlenty administration is going to look at the overall BOWSR functions during the
summer and there may be a reform proposal on the table in the 2004 session. If not, this effort will be launched again by MAWG in the next session.

MAWG has also been very active in stopping a bill that would move some of the groundwater detection determinations on agriculture chemicals away from the Minnesota Department of Agriculture and transfer them to the Minnesota Department of Health, were environmentalists feel they will have more influence. The bill also makes records of commercial applications of farm chemicals public records. MAWG testified against the proposal and helped kill the bill in both the House and Senate Agriculture Committees, and will continue to monitor the House and Senate floor sessions for possible amendments on this issue for the rest of the year.

We are monitoring and supporting efforts that maintain funding for the Northern Crop Institute and state scab research effort.

We have also worked to lay the groundwork for extending the licensing renewal period for pesticide applicators and truck inspectors from 3 to 5 years. There is not a bill this year but the groundwork may allow one to be introduced next year.

—Bruce Kleven, MAWG legislative strategist, St. Paul

Producers Elected to MN Wheat Board
In the recently held Minnesota Commodity Council elections conducted by the Minnesota Department of Agriculture, Art Brandli, Warroad, Minn. wheat producer was re-elected to the Minnesota Wheat Research & Promotion Council representing producers in district 1.  Also elected to the Council from district 1 was Rhonda Larson, a wheat producer from East Grand Forks, Minn. Rhonda replaces Hugh Hunt of Hallock, Minn. on the board. Hunt chose not to seek reelection to the Council.  Pete Kappes a wheat producer from Ada, Minn. was elected to represent producers in District 2.  Kappes takes the seat previously held by John Leseth, Moorhead, Minn. who also chose not to seek reelection.

The MWRPC directs and manages the Minnesota Wheat Checkoff for wheat research and wheat promotion.  Other Minnesota farmers who serve on the MWRPC board are Ellsworth Danielson, Fosston; Douglas Ruud, Twin Valley; Kenneth Asp, Thief River Falls; Francis Buschette, Renville; Bruce Hamnes, Stephen; and Cliff Keller, Fergus Falls.

NDGGA State Legislative Update:

Biotech, Sales Taxes Among Issues This Session

Some of the things the NDGGA is working on this session are keeping the sales tax exemption for used farm machinery and parts in place, and it looks like it will pass.

We are working on trying to get a matching fund to address biotechnology issues, such as developing an IP system and other research at NDSU.

It is now permissible for the North Dakota Wheat Commission to become more involved in domestic policy issues. We are supportive of that.  We were promoting a 1/2-cent increase in the state checkoff with a portion of that going to the NDGGA and domestic policy research.

We were supportive of a resolution on building a better business relationship with Cuba, and promoting reforms on crop insurance.

I think agricultural groups in the state can do a better job of working together on ag issues. Even here in North Dakota, we have shifted from a rural to an urban legislature, and it is our responsibility in the state’s ag community to come to the legislature with ideas that are proactive in regard to rural issues.

—Lance Hagen, executive director, North Dakota Grain Growers Association

MGGA State Legislative Update:

Increase in Wheat, Barley Checkoff Cap Approved in Montana

One of the main pieces of legislation that we were following this year was a requested increase in the assessment cap for the state wheat/barley checkoff. This grassroots request came directly from grower members who realized that with a state budget shortfall, there would be less money available for priorities such as wheat and barley research at Montana State University. So increased checkoff funding was an issue that was well-accepted by the vast majority of the MGGA membership.

In Montana, the checkoff law establishes an increase in the assessment cap, then the farmer board of the Montana Wheat and Barley Committee decides within that cap where to set the assessment. State lawmakers, in a bill that became law and was signed by the Governor, increased the cap from 1 cent to 2 cents a bushel on wheat and from 1.5 cents to 3 cents per hundredweight on barley. The Committee has since recommended for public hearing that the wheat checkoff be raised to 1.25 cents/bushel, and 2 cents cwt for barley.

Another piece of legislation basically gives producers a choice in where their grain is sampled when they sell their grain. Now, producers will choose at the time they take their grain in, where they want to send their grain sample. Do they want to send it to the state lab or a send it to a private lab? In the past, the producer was at the mercy of the elevator’s discretion. Now producers can have that choice.

We are about the only state in the country that still has a state owned and operated hail insurance program, managed by the Montana Department of Agriculture with an appointed board of producer representatives. Legislation this year raised the coverage levels for both dryland and irrigated land.

All of the forementioned issues were supported by the MGGA and have been passed and signed by the Govenor.

Early in the session we worked on a joint resolution that outlined the opportunities with biotechnology as well as the threats related to the market. That resolution made it through the House and Senate. Resolutions don’t have to go to the Governor for signature.

We have generally been successful and pleased with the bills that we have put forward and that have passed this year in the Montana legislature.

– Richard Owen, executive vice president, Montana Grain Growers Association.

SD Wheat Inc State Legislative Update:

Biotech Wheat Bill Defeated in SD

The legislation in South Dakota that we (South Dakota Wheat Inc) have been involved with most this legislative session is the funding of NCI and a biotech wheat bill.

The biotech wheat bill was defeated, but not without some drama. The original bill’s language was changed about four times in a few days. It stated that if biotech wheat had an adverse economic impact, its release would be reviewed. There was also a proposal to set up certain protocol in the state department of agriculture for the release of biotech wheat.  We basically defeated this because of two standpoints: 

1) We think there should be tolerances, but it should be a federal tolerance. We think it would be a mistake to have 50 states with 50 different tolerances.  So the protocol on tolerances should be established at the federal level, and the USDA is doing that.

2) The language addressing “adverse economic impact” was ambiguous and difficult to quantify; there are other intertwining factors such as weather and trade barriers that influence price.

While this bill was defeated, one positive outcome was that the debate allowed us to provide biotechnology education information to all the legislators.

On a related note, the SD AgriBusiness Association is going to help set up and sponsor (SD Wheat will be involved as well) a seminar at SDSU in August on biotechnology, and every legislator will be invited. Biotech experts from other parts of the country will speak objectively on various aspects of the issue.

State lawmakers raised taxes on cigarettes and cell phone (wireless) service, and there were changes made regarding the permit process for cattle/feedlot operations. Otherwise, it was a quiet session this year from an agricultural standpoint.

—Rick Vallery, SD Wheat Inc