The producers crowded a Senate Appropriations Subcommittee on Agriculture hearing at the state Capitol in support of legislation that would establish a zero-interest, 10-year agricultural loan program to help farmers who suffered losses as a result of the drought and/or frost and excessive rains that occurred during the 2001 planting and harvest seasons.

Sponsored by Rep. Ron Jelinek, the House passed the bill by a 102-1 vote on Dec. 12, 2001. Sen. George McManus, chairman of the Senate Appropriations Subcommittee on Agriculture, scheduled Tuesday's hearing. While the subcommittee did not vote on the bill, McManus said the testimony from producers was helpful, and he intends to work with all stakeholders in hopes of the bill moving to the Appropriations Committee, then the full Senate and eventually the governor.

"Today, the Senate Appropriations Subcommittee on Agriculture got to see what Farm Bureau does when our members are mobilized," said MFB President Wayne H. Wood. "Today, 160 farmers came to Lansing to support the zero-interest agricultural loan program, which is so important to the future of agriculture in Michigan.

"There were no protest signs. There was no hollering. Our producers just politely made a statement to the subcommittee on the need for this legislation," Wood said. "This is the first time I can recall a Farm Bureau crowd of this size coming to Lansing, so the need is sincere."

The program, which is similar to one established by the state in 1986 to help offset flood-related crop losses, would loan up to a total of $200 million to farmers and $10 million to agribusiness through commercial banks and GreenStone Farm Credit Services. The state's cost would be to reimburse agricultural lenders for expenses to provide the zero-interest loan program. An eligible farmer could qualify for up to a $150,000 loan under the legislation. Loans would be administered through the Farm Credit system and banks.

No crop to pay the bills
For Tuscola County cash crop farmer Carl Bednarski, the loan program would provide "a little breathing room" as he copes with trying to cover last year's operational costs without the traditional income earned on dry beans.

"I'm a third-generation farmer, and last year was the first time I could recall my family not harvesting a dry bean crop. We've usually always been able to harvest something," Bednarski said.

"Over the past few years with the farm economy the way it's been and the yields we've had, we've been able to tighten purse strings and get by," he explained. "But now with this scenario and the total reduction in income from the dry bean crop - even with crop insurance - there's a huge shortfall. Now we're at a point where operating costs are not going to be covered for the past year."

Big or small, insurance isn't enough
Mike Mulders, a small cash crop and vegetable farmer from Bay County, blamed the drought for $40,000 to $50,000 in lost income on his corn and soybeans.

Mulders said he thought the "catastrophic" crop insurance he had purchased would cover the extreme weather conditions, but of $16,268 in lost revenue "from the crop that was not there in soybeans alone," he received just $2,200 on his insurance claim. Of $1,300 in lost revenue on his corn, insurance paid just $160.

"For those two commodities, it amounts to 70 cents a bushel for soybeans we did not harvest, relative to a $5.20 federal loan rate now, and 2 cents a bushel for corn that was not harvested, relative to an approximately $1.85 loan rate," Mulders said.

"While a smaller producer is impacted just as hard as a large producer, from a county standpoint, most folks are worse off than I am," Mulders continued. "They're looking at $100,000 to $200,000 of immediate need, which they need prior to the end of the 2002 farming season."

Specialty crops face potential long-term damage
Apple grower Phil Carter said Oceana County's diverse agricultural base suffered from cool weather in the spring, drought conditions during the summer and heavy rains in the fall. Commodities hurt, he said, "literally run from A to Z," touching everything from apples and green beans to peaches, squash and zucchini.

"Zucchini is mostly under irrigation, which was operated 24 hours a day, seven days a week to save the crop" at reported costs of $10,000 a month, Carter testified. "Even with this, fruit abortion in the blossom occurred, and yields were down."

Carter said producers in the county are concerned about the weather's long-term effects on crops that have longer rotations, such as asparagus and Christmas trees.

"Christmas trees are a major Oceana County commodity," Carter said. "Newly established plantations had up to 100 percent losses and need to be replanted. Dying trees were evident even in December."

A workable investment for the state
Others who testified Tuesday in support of the legislation included representatives from agricultural lending organizations as well as Michigan agribusinesses that have had to lay off employees because the crop wasn't there to support their businesses.

Those testifying acknowledged Michigan's budget problems but emphasized that the loan program would be an "investment" in agriculture - Michigan's No. 2 industry and the industry that feeds the state's residents.

"Can we afford to not fund this type of program?" Carter asked.

"Getting these zones established is a beginning to an end so to speak," Birchmeier said. "Michigan cattlemen are eager to see the state obtain split-state TB status, which would federally designate that TB is isolated to a small section of the state. But establishing these zones and proving that we can complete required testing and track animal movement has to be accomplished first.

"With zone-making finalized, the state, with continued help from partners like the Michigan Farm Bureau, can continue to work toward its goal of achieving split-state status, and ultimately, eradicating the disease from Michigan. In the meantime, producers now better understand what is expected of them."

The zones, which classify counties as Disease-Free, Infected or Surveillance, contain livestock testing and animal movement requirements based on each zone's level of TB infection or risk of disease transmission.

The Infected Zone is restricted to a small region of northeast Michigan where TB has been discovered in livestock. It is comprised of Presque Isle, Montmorency, Alpena and Alcona counties. The bordering counties of Cheboygan, Crawford, Iosco, Ogemaw, Oscoda and Otsego make up the Surveillance Zone.

Antrim, Arenac, Charlevoix, Emmet, Gladwin, Kalkaska and Roscommon counties comprise the Disease-Free Zone of northeast lower Michigan, which requires a minimum of two whole-herd tests. The rest of the Lower Peninsula and all counties in the Upper Peninsula make up a Disease-Free area of their own, where only one whole herd test is required.

Birchmeier credits MDA officials for "listening to producers" when accepting public comment on the proposed zones and taking their concerns into account when revising the proposal.

Among important revisions, said Birchmeier, is including Missaukee County in the Disease-Free area. Prior, the county was proposed to be in the Disease-Free Zone that requires two whole-herd TB tests before Dec. 31, 2003.

Farm Bureau had lobbied that while Missaukee County corners Crawford County, which is in the Surveillance Zone, the testing rules proposed for the county were unfair because TB has not been found in Missaukee County.

Another important revision, Birchmeier said, is the exemption of deacon calves (bull calves less than 14 days of age) from needing an individual TB test in order to move from any premises in any zone. As finalized, deacon calves may move from any premises provided that herd testing requirements of the zone are met.

"From a practical and financial standpoint, individually testing deacon calves would not have been feasible or effective, and MDA agreed after reviewing the written and oral testimonies of producers," Birchmeier said.

The next push, Birchmeier said, is for all producers to complete their herd testing requirements in order to "shrink" the zones, particularly the more stringent Disease-Free and Surveillance zones and "to continue to communicate and work cooperatively with MDA and USDA officials as we work to eradicate the disease."

"Gaining split-state status is critically important for the entire state, particularly for those parts of the state like the Upper Peninsula and southern Michigan where producers do a great deal of business through market channels in other states."

The zones will be enforced by MDA effective March 10. Producers should consult the MDA web site at www.bovinetb.com for specific details on the testing requirements and animal movement restrictions of each zone. Producers can also contact their nearest MDA TB Regional Office or call Dr. Larry Granger, MDA's TB eradication manager, at (517) 373-1077.

The events of Sept. 11 have made U.S. congressmen extremely nervous about even considering efforts to remove Cuba from the list of seven countries currently labeled as terrorist countries. "That would certainly be a significant step," said Daniel Waltz, who is a partner in the Washington, D.C.-based Patton Boggs law firm and has specialized in international trade, specifically trade embargoes with Cuba, for more than 15 years.

Waltz made his comments to approximately 150 members of U.S. commodity organizations, state Farm Bureaus, U.S. agricultural corporations and port authorities meeting with Cuban trade officials in Mexico for a three-day "U.S. Agricultural Sales to Cuba" business conference. The event is being held in Mexico because of travel restrictions between Cuba and the United States.

Attendees from Michigan include Michigan Farm Bureau (MFB) President Wayne H. Wood, MFB District Director Don Sutto of Saginaw, and representatives from the Michigan Department of Agriculture, Michigan Apple Committee, Michigan Bean Commission, Michigan Bean Shippers Association and the Frankenmuth-based Start of the West Milling Co.

Waltz said Cuba likely will remain on the terrorist list for the foreseeable future. "Certainly most impartial observers would agree it's ironic that Afghanistan was never placed on the terrorist list, but Cuba, which most people would agree does not engage in terrorism and does not export terrorism, is still on that list," he noted.

Robert Neal, a legislative assistant for U.S. Rep. George Nethercutt, concurred, saying the stakes for politicians are simply too high at this point. "In this environment, anything relating to the terrorist list comes under incredible scrutiny," Neal said. "The terrorism issue is used very effectively within the beltway as a way of beating up members of Congress who are seeking to expand trade opportunities."

Neal worked closely on the Nethercutt package in 2000 to provide some trade sanction relief, allowing exports of food and medical items to Cuba. However, he suggested the focus should instead be on incremental reform efforts, most notably travel and financing restrictions.

"We anticipate that after the big steps we took in the fiscal year 2001 ag appropriations bill, we will be taking more moderate steps, incremental steps," he said. "It's not satisfying, and it's frustrating at times. But ultimately it's going to yield some real changes."

According to Neal, China's entry into the World Trade Organization and U.S. efforts to establish Permanent Normal Trade Relations has caused many in Congress to realize there are some real parallels between the treatment of China and Cuba.

"There's a growing recognition of the vast market opportunities in Cuba, so members in Congress are increasingly divorcing themselves from the past politics and standing up for their own folks at home."

Waltz credits the agricultural community for progress thus far in convincing legislators that unilateral trade embargoes only hurt American farmers and Cuban citizens, and that food should not be used as a weapon of economic warfare in times of peace.

Additional News from the "U.S. Agricultural Sales to Cuba" Business Conference

Growers will learn the proper techniques to grow and market hybrid walleye on the first day of the conference, with researchers from Michigan State University, University of Wisconsin and Ohio State University sharing results of various studies. Producers that day also will discuss alternative feeds and how the association can market aquaculture as an industry.

Water quality standards and stress responses of particular breeds of fish will be discussed on Feb. 8, when the organization holds its annual business meeting.

Contact: Bob Boehm, (800) 292-2680, ext. 2023

"We are very concerned that the proposed use cancellations and restrictions on azinphos-methyl will have a very negative impact on both future crop production in Michigan and on the economic viability of our individual members," MFB stated in its comments to EPA.

The EPA, claiming risk assessment calculations that demonstrate unacceptable worker and ecological risks, has proposed a number of changes in the use these pesticides, including canceling the use of Guthion on 28 crops.

MFB conducted an informal survey of its members on the importance of Guthion, the more widely used of the two pesticides, and Imidan. The surveys indicate that Michigan growers anticipate yield reductions and quality problems if Guthion use is prohibited on crops such as apples, sweet and tart cherries, blueberries, peaches, plums and grapes.

Additionally, Guthion remains a vital component of Integrated Pest Management (IPM) systems - systems designed to reduce pesticide use by incorporating accompanying methods such as natural predators. Many of the current pesticide alternatives to azinphos-methyl are detrimental to these beneficial predators, and their use will render IPM almost impossible for growers to implement, MFB stated.

Contact: Ken Nye, (800) 292-2680, ext. 2020

That was the message members of the Michigan Farm Bureau (MFB), Michigan Agricultural Cooperative Marketing Association's (MACMA) Asparagus Division and the Michigan Asparagus Advisory Board delivered to national officials during an Asparagus Fly-In to Washington, D.C., Jan. 28-29.

The delegation lobbied that a USDA purchase would help the Michigan asparagus industry, which is struggling with unfair trade practices that have displaced domestic product and depressed prices.

The group also made visits to Capitol Hill to lobby against the extension of the Andean Trade Preference Act (ATPA), which expired Dec. 4, 2001. Adopted in 1991, ATPA was meant to help reduce Andean dependency on the production and trafficking of illegal drugs by giving farmers in Peru, Columbia, Bolivia and Ecuador unlimited duty-free entry to U.S. markets. The act, however, has hurt Michigan asparagus growers because Andean farmers have rapidly increased their asparagus production and exports to the United States.

The U.S. House of Representatives voted late last year to extend the act for another five years. The measure still must be considered by the Senate. MFB policy calls for the act's expiration, and should it be renewed, the establishment of federal compensation programs for affected domestic asparagus growers.

Contact: Sarah Black, (800) 292-2680, ext. 2025

"We were pleased to hear President Bush call for an end to death taxes and such action by Congress will definitely help the farm and ranch families who face this burdensome penalty," said AFBF President Bob Stallman.

"Only repeal can erase the burden and uncertainties of estate tax planning," Stallman said. "Many farmers and ranchers feel compelled to spend money for estate planning, an expense that is a drain on ongoing farm operations. And, no one can guarantee that all their efforts will save their farms when they die.

"Farms are capital-intensive businesses whose assets are not easily converted into cash. In order to generate the funds that are needed to pay hefty death taxes, heirs may need to sell part of the businesses. When too many parts are sold, the economic viability of the farm is destroyed," Stallman said.

President Bush emphasized the need for permanent death tax repeal as one of the items which would be helpful to the American economy."

Contact: Sarah Black, (800) 292-2680, ext. 2025

Mining for nickel now requires little more than a green thumb, thanks to a patented process created by the Agricultural Research Service and Viridian Resources, L.L.C., of Houston, Texas. Metal-loving plants can extract nickel and other metals from the earth without machinery. A study has proven that phytomining, or the use of plants to extract useful amounts of metal from soil, is commercially feasible. Utilizing certain plant species that accumulate nickel from contaminated soils, scientists developed an environmentally friendly alternative to traditional mining techniques.

Organic farming, or "biological farming," does not use synthetic pesticides or fertilizers. Instead, the soil is enriched with manure, compost and cover crops. Pests, weeds and diseases are fought or prevented through resistant varieties, rotation, cultivation, mulch and a few organic pesticides.

Although an animal's life processes, such as giving birth and weaning, are natural, they can be stressful. And that stress can impair the animal's normal biological functions. An Agricultural Research Service scientist is investigating nitrated protein measurement as a biomarker of stress. At times of high stress or injury, or when immune system hormones are secreted inside the animal, the function and the shape of the proteins can become altered. When this happens, the protein is said to be "nitrated." Proteins are like jigsaw puzzle pieces that are designed to fit together to perform a specific function. So when proteins are altered, they no longer fit and become ineffective. To slow the formation of nitrated proteins, the use of vitamin E is being investigated as a preconditioner, allowing researchers to maintain animal growth rates better under stress and perhaps prevent the occurrence of secondary infections.