"A Case for Burying the Estate Tax," presented by the independent, Texas-based Institute for Policy Innovation (IPI), indicates that no section of the tax code does as much societal damage, while generating little revenue, than the estate tax.

The estate tax, often referred to as the death tax, puts multiple-generation farms and other family businesses in jeopardy, as many are faced with selling the farm simply to pay Uncle Sam as much as 55 percent.

Laurie, who spoke on behalf of the American Farm Bureau Federation, underlined the organization's support for repealing the estate tax. "Farmers work long hours over a lifetime to build their businesses," Laurie said. "Along the way they pay income taxes on everything they earn. It's just plain wrong for the government to tax their earnings again when they die - especially when estate taxes can mean the difference between life or death of a multi-generation, family farm."

The study shows the historical origins of this egregious section of the current tax code defy the fundamental reasons for its continuation, citing that only 1 percent of the federal revenue is generated by the tax, and compliance costs are almost as high as the revenue raised. In addition, high marginal rates often force heirs to sell family farms or businesses to pay the tax.

About 99 percent of farms are family-owned. "All too often, sons and daughters are forced to sell parts of their farms to pay estate taxes," Laurie said. "When they have to sell too much, the economic viability of the farm is destroyed and the farm dies with the farmer."

Jim Martin, of the 60 Plus Association, called the tax cruel, and Brian Reardon, of the National Federation of Independent Businesses, said the tax gives heirs fewer resources to grow or hire new people.

The estate tax has a high marginal rate, which discourages saving and investing, thus reducing capital formation and economic growth.

Sen. John Kyle (R-Ariz.) and Rep. Christopher Cox (R-Calif.) have each introduced legislation to repeal estate taxes immediately. Sen. Ben Nighthorse Campbell (R-Colo.) and Rep. Jennifer Dunn (R-Wash.) have each introduced legislation that would reduce the estate tax by 5 percent a year until the tax is eliminated, which would take 11 years.

Laurie accompanied more than 150 Michigan farmers to Washington, D.C., who visited with their legislators and discussed key agricultural issues, March 16-18, during their annual Washington Legislative Seminar.

The World Trade Organization (WTO) confirmed, March 18, that Canada is unfairly subsidizing its dairy exports. The decision marks an important step in eventually opening the border for U.S. commercial milk shipments to Canada.

"This opens the door for U.S. producers to use their efficiencies to move into the Canadian market," said Jack Laurie, Michigan Farm Bureau president. "We need to be able to trade fairly, and I think this sets a precedent for other trade disputes. We now have a mechanism in place to address unfair trade, and this decision helps to renew our faith in the system."

The decision came when about 150 Michigan farmers were in the nation's capital last week to talk with their legislators about key agricultural issues - including trade sanctions and barriers that make it difficult for American producers to compete globally. "It is vital for us to capture markets abroad, creating more demand and, eventually, a better price for the producer," said Laurie, a Tuscola County dairy farmer. "It is the nature of our agriculture industry to produce for the world. In the past, there has been an inability to address trade disputes, so this mechanism offers new hope in correcting unfair trade and solving trade disputes."

The WTO affirmed the U.S. challenge that the provision of low-cost milk to processors for exports by Canada's federal and provincial governments constitutes an export subsidy. In addition, the panel affirmed the U.S. position that Canada's prohibition on fluid milk shipment valued at more than $20 per entry was inconsistent with Canada's market access commitment in the Uruguay Round.

Laurie said the decision is encouraging, especially when other trade disputes are pending, including poultry conflicts with Canada, and alleged dumping of apple juice concentrate from China and vegetables from Mexico.

Canada must now appeal the case or abide by the WTO ruling. Following a possible appeal process, the WTO will determine a reasonable period of implementation for the ruling, which has been up to 15 months for other rulings.

"Now we're in a position where we will have significant budget surpluses over the next 10 to 15 years," said Levin, who advocated paying down the national debt with the surplus cash to keep interest rates down and help preserve Social Security.

Levin opposed the notion of an across-the-board tax cut, saying tax cuts should be targeted at specific problem areas.

Sen. Abraham, on the other hand, argued for tax cuts, saying the money shouldn't be held hostage by Washington, D.C. "We have made headway in tax reform efforts, but we haven't done nearly enough," he said.

Abraham supported replenishing the Social Security Trust Fund, which was tapped in years of deficit spending. "We should take Social Security money and put it in a lock box, if you will," he said. "There would only be two keys to open that lock box - Social Security reform, or retiring publicly held debt."

Although Levin voiced opposition to outright elimination of the federal estate tax, he did support the concept of boosting the exemption for the so-called death tax from $650,000 to higher levels, if necessary. While Abraham said he'd prefer estate tax elimination, he also supported boosting the exemption to preserve family farm operations.

Turning to the issue of expanding agricultural trade, both Levin and Abraham called for a get-tough mentality from the Clinton administration. Levin said if trade negotiations fail to resolve trade issues, such as removing restrictions on ag products, retaliation should take place automatically. "We're not talking about protectionism here - we're talking about expanding free trade," he said.

While Abraham said he plans to focus on unfair trade practices - specifically Chinese apple juice concentrate dumping on the U.S. market - he also wants to make sure U.S. agriculture is at the negotiating table when the next round of World Trade Organization trade talks begin this December in Seattle. "We don't want to see agriculture put on the back burner."

Abraham also plans to seek passage of reform to the H-2A Guest Worker Program, despite the Clinton administration's rejection of a similar package last year. Unfortunately, while labor shortages are becoming a chronic problem in many industries, the guest worker program has become extremely cumbersome.

"During our hearings last year, we learned that, despite severe labor shortages, Florida farmers found this program so difficult to work with that the entire state requested just four workers through this program," Abraham said. "That's how difficult this program is."

Abraham said the Senate will also be keeping a close eye on the "subjective science" being used by the Environmental Protection Agency in implementing the Food Quality Protection Act (FQPA). "FQPA will be a challenge, especially with this EPA, which seems intent on writing the rules their way regardless of what the science may say."

Congressman Dave Camp earned the highest honor bestowed by American Farm Bureau Federation - the Golden Plow. The award is given annually to just two legislators, one for the House and one for the Senate.

Dean Kleckner, AFBF president, said Camp is a true friend of agriculture, as he presented the award during Wednesday night's Washington Legislative Seminar banquet. More than 150 Michigan farmers gave Camp a lengthy standing ovation in appreciation for his support of Farm Bureau policies and philosophies during the five terms he has served in the House of Representatives.

Kleckner praised Camp for his dedicated service in seeking capital gains tax reform and estate tax relief. He commended Camp for being a strong advocate for the creation of Farm and Ranch Risk Management (FARRM) accounts, market-oriented programs, agricultural trade policies that open export markets for American agricultural products - including support for fast-track negotiating authority - and fair implementation of the Food Quality Protection Act.

Camp had a 100 percent voting record with Farm Bureau in the last session of Congress. "Congressman Camp is certainly an outstanding legislator whose record in Congress exhibits a deep concern and action on behalf of America's farmers," Kleckner said.

Michigan Farm Bureau members also got kudos, as they received a traveling trophy for their lobbying efforts. Kleckner presented the Farm Bureau ACT (Agricultural Contact Team) trophy to Michigan Farm Bureau President Jack Laurie. "Michigan Farm Bureau members set an example for other states to follow," Kleckner said while presenting the newly created award. "Without the commitment of the growers to seek change through their legislators, Farm Bureau would not be nearly as effective as it is today."

Farm Bureau is ranked 14th out of more than 10,000 special interest groups for effectiveness on the hill. "I challenge Michigan to retain this trophy and for Farm Bureau to move into the top 10," Kleckner said.

Laurie said Michigan farmers set policy, then follow through by writing letters, making phone calls and testifying at hearings. "Michigan farmers are educated and know the issues," Laurie said. "They are seeking change to promote a healthier industry, and I'm real proud of each one of them. Hopefully, this traveling trophy has made its first and last stop, as each year we strive to do better and do more for agriculture."

American Farm Bureau Federation's Pat Wolfe outlined this need Tuesday during comments to more than 150 Michigan farmers, who were in the nation's capital city for Michigan Farm Bureau's annual Washington Legislative Seminar. Wolfe said about 62 percent of that surplus has already been earmarked for saving Social Security, leaving 38 percent to cut taxes, save or increase spending.

Because legislators are not known to be good savers, Wolfe said pending legislation to phase out federal estate taxes, at the rate of 5 percent per year, is a good way to invest in the nation's agricultural future. Some estates are subject to tax rates as high as 55 percent, making it difficult for families to keep their farms after a death. If approved, S. 38 and H.R. 8 would save farmers more than $100 billion over the next 10 years.

Creation of Farm and Ranch Risk Management Accounts (FARRM) would also generate an additional $900 million in tax savings for producers over the next 10 years. Under legislation introduced in the House, farmers would be allowed to save, tax-free, up to 20 percent of their income in a rainy day fund, for use during unprofitable years due to poor prices or crop losses. Taxes could be deferred on the account for up to five years. Once removed, the money is subject to taxation.

Trade negotiating authority vital

Because more than 33 percent of all commodities produced in the United States are exported, expanding trade opportunities for agricultural commodities is essential if there is to be any hope of restoring profitability to production agriculture, advised American Farm Bureau Federation Trade Expert Audrea Erickson.

Erickson said it is crucial for legislators to understand what's at stake. "We need to tell legislators that we need negotiating authority," she said. "Unfortunately, it's not happening."

Erickson said trade sanction reform would also provide immediate improvement and trade opportunities for agriculture. Farm Bureau is putting its support behind S.B. 566, which would grant an exemption for agriculture from unilateral trade sanctions. According to Erickson, unilateral trade sanctions have done nothing but allow U.S. competitors to gobble up market share at the expense of American farmers.

In the past five years, the United States has imposed 61 unilateral economic sanctions on 35 countries. "It takes decades to rebuild those markets after competitors take them away from us," she warned. "Multi-lateral sanctions are a much better alternative."

The Institute for International Economics estimates that unilateral economic sanctions cost the United States $15-19 billion in lost U.S. exports in 1995. This translates into the loss of more than 200,000 American export-related jobs.

Michigan has about 325,000 acres in CRP. The last sign-up, which ended Dec. 11, will contribute about $12 million, over 10 years, for reserving the land.

Despite the increase, Michigan Conservation Program Specialist Bob Payne says he was hoping for even more Michigan acreage but understands why it wasn't higher. "The 1996 farm bill established the Environmental Benefit Index (EBI), and the emphasis of the program - water quality - was further defined," he said. "With the new EBI rating, the average rental rate per acre has gone down some, from about an average of $55 to $60 an acre, to about $50 now."

With the program more focused on highly erodible or marginal ground, it takes a closer look at what land should not be put into production.

"There has been a change in the focus of the program," explained Bob Boehm, Michigan Farm Bureau commodity and marketing department manager. "By targeting only those key areas, it is keeping good ground in production. The USDA is less willing to pay for an entire field when there is only a portion of it environmentally sensitive."

Nationally, 5 million acres of farmland were accepted into CRP during the last sign-up, with Montana claiming 640,000 acres. Total acres in CRP are 31.3 million, which will result in annual outlays of more than $200 million beginning in October of next year. About 3.5 million acres under contract will expire this year.

In addition to CRP, farmers can also take advantage of the Continuous Sign Up program, which pinpoints environmentally sensitive land through filter strips, buffer zones, wind breaks and other conservation measures. "This is not full fields, but rather environmentally sensitive land, which doesn't have to go through EBI scoring as long as it meets eligibility criteria," Payne said.

The unmistakable smell of livestock odor will wrinkle the noses of even the most hardened country folk. So it's no surprise that as suburbia encroaches on farmland, people who haven't previously smelled a farm are turning up their noses at livestock waste and other associated odors. That's one reason Agricultural Research Service scientists are looking for solutions to the problem. But how do you measure odors? The scientists are developing tools to measure the "stink factor" in livestock odors. Currently, there's no standard measure for nuisance livestock odors, nor are there scientific tools to determine when odors reach eye-watering levels. The results of the research may lead to improved farm management techniques to keep a smelly problem in check.

Hardworking honeybees might need the farmer's help to get a varied diet containing all the proteins, vitamins, minerals, fats and carbohydrates necessary for good bee health. Nectar supplies carbohydrates or sugars. Pollen supplies everything else. But sunflower pollen, one of the familiar honeybee's favorite foods, doesn't provide enough protein, according to tests by Agricultural Research Service scientists. High crop yields depend on having healthy, effective pollinators, but bees that work only in sunflower fields are likely to become undernourished. As they lose strength, they may not do a good job in that crop or in other crops they are "hired" to pollinate later on. Sunflower growers can help bees get the mix of nutrients they need by planting small areas of other crops such as canola near sunflower fields. Or they can let weeds and wildflowers grow along field edges, beside ditches or among rock outcroppings.

A chemical in peaches could become an alternative to methyl bromide for controlling certain soil-dwelling pathogens. Methyl bromide, a chemical now used worldwide on more than 100 crops, has been linked to ozone depletion and will be banned in the United States in 2005. Methyl bromide is critical to agriculture to control many pests on various crops. In preliminary studies, scientists are studying natural plant chemicals as alternatives. One that looks promising is benzaldehyde. Found in peaches and other fruit, benzaldehyde is a naturally occurring, colorless, nontoxic, aromatic liquid used in perfumes, flavorings, pharmaceuticals and dyes. Scientists have applied for a patent on a time-release formula of benzaldehyde to fumigate fruit, grain and soil.