Bob Kraft

As the short session of the Indiana General Assembly winds down, several key pieces of legislation that will impact farmers are in need of action. Indiana Farm Bureau is calling on its members to lobby lawmakers on two key issues: farmland assessment and inheritance taxes.  The State Department of Local Government Finance has released new regulations on the assessment of farmland that take into account soil fertility factors. These new regulations were announced just a few weeks before assessment was to begin.  “The bottom line is that this would increase assessment by as much as 60% in some cases,” says Bob Kraft with Indiana Farm Bureau.  Legislators in both houses are upset with the last minute revisions.  In the Senate Appropriations Committee on Thursday, Sen. Brandt Hershman (R-Buck Creek) offered an amendment to HB 1190 (Rep. Suzanne Crouch, R-Evansville & Sen. Hershman) that will delay the effective date of the new DLGF rules by a year.  House Ways & Means Committee Chairman Jeff Espich has indicated that he expects a similar amendment on a Senate bill in his committee. Kraft is urging farmers to contact lawmakers to express support for a delay in the implementation of the new rules.

Another issue requires farmer support is efforts to eliminate the Indiana inheritance tax. On Thursday in the House Ways & Means Committee, Rep. Eric Turner (R-Cicero) presented SB 293 rather than the author, Sen. Jim Smith (R-Charlestown).  SB 293 includes changes to the exemptions in the inheritance tax law and contains phase-down language.  As the bill left the Senate, it does not completely eliminate the inheritance tax.  Farm Bureau’s Katrina Hall testified in favor of the bill, noting how dramatically IFB members are affected by inheritance tax and stressed preference for the complete elimination language that is included in HB 1199, authored by Rep. Eric Turner (R-Cicero).  HB 1199 phases-out the inheritance tax over 10 years starting two years from now.  HB 1199 has not yet been scheduled for a hearing in the Senate. Kraft is urging Farm Bureau members to lobby lawmakers for the elimination of the tax.

Kraft said IFB is also seeking farmer support for legislation that would prevent cities and towns from having jurisdiction over aquifers.  The House Utilities Committee heard testimony on SB 132 (Sen. Beverly Gard, R-Greenfield & Rep. Dave Wolkins, R-Winona Lake).  The bill will require the Indiana Utility Regulatory Commission to collect, compile, and publicize in the aggregate data regarding water use by water utilities in Indiana.  The controversial portion of the bill is a section that would exclude underground aquifers from the definition of “watercourse” as that term is used in several statutes that give cities and towns the authority to regulate “watercourses” ten miles outside their municipal boundaries.  A Supreme Court decision last fall concluded that municipalities had the authority to regulate aquifers.  This means that a town could require a farmer to obtain a permit to pump water from the aquifer with a well on the farmer’s property, or they could prohibit the withdrawal of water altogether.  It could also set up a race among municipalities that are within ten miles of one another to claim the aquifer first.  Farm Bureau is one of the strongest voices calling for the legislative reversal of the Supreme Court’s decision to include aquifers in the definition of “watercourse.” At the hearing last Wednesday, Farm Bureau’s Justin Schneider testified in support of the bill.  The Indiana Association of Cities & Towns and several mayors testified against reversing the Supreme Court’s decision.  Following a lengthy hearing, Committee Chair Jack Lutz (R-Anderson) decided not to take a vote on the bill but announced that a vote would be taken this week.  Legislators are being asked by the mayors of the municipalities in their districts to vote against SB 132.  All legislators need to hear from their constituents who support the bill.

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Ashlie Kolb

A record crowd of young farmers gathered for the Indiana Young Farmers Conference this past weekend in Indianapolis.  Over 630 farm families gathered for two days of education and inspiration.   The keynote session on Saturday morning featured Ashley Kolb and Neil Mylet, two young entrepreneurs who have developed thriving careers from their family farms. Kolb, a nationally syndicated Country Music Journalist, said their point was to encourage rural young people to  chase their dreams, “Don’t let your upbringing or where you currently live stop you from reaching your full potential.” She said living on a farm or in a small town does not mean you cannot have a big impact.

In her presentation, she used the example of Randy Owen of the country music group Alabama, “Despite his success, he has never moved to Nashville and never heft his family farm in Ft. Payne, AL.”  She added you may not be a celebrity but, even living in rural American, you can still make things happen.

Neil Mylet

Neil Mylet, a Purdue alum, is founder of LoadOut Technologies, a firm that has developed innovative technology for agriculture using Smartphones.  He told the young farm audience that “NO” is a word they may hear a lot, but not to be discouraged because this rural generation has a lot to contribute to agriculture and to society.   He encouraged them to think in bigger terms than just their farm or rural community and to use their talents and technology to reach a bigger world.   LoadOut is doing that by helping firms like Hoosier Ag Today develop mobile applications to communicate with farmers.    LoadOut is also working with rural communities in Afghanistan and Africa to help them connect and communicate with the rest of the world.

Kolb says rural America is ripe with very bright and talented young people who can foster innovation both inside and outside of agriculture, “Our biggest goal is to encourage entrepreneurship, especially in rural America.”  Kolb and Mylet’s upbeat and entertaining presentation was well-received.  They said they are presenting this program to young people across the country.

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Bob Kraft

There has been a lot of attention to the Right to Work legislation at the Statehouse. However, with passage of the Right to Work, legislation passage of other bills has resumed. Last week the House took action on the Right to Farm bill (HB1091).  The bill is a measure designed to protect Indiana farmers from frivolous and nuisance lawsuits. Bob Kraft, Indiana Farm Bureau Director of State Government Relations, says the measure gives farmers a legal defense when certain types of lawsuits are filed. That defense applies to situations where new housing developments are put in next to long established farming operations, “Essentially, it tells a neighbor who complains about a farming operation, the nuisance did not come to you, you came to the nuisance. If you don’t like it, it is your fault for moving here.”

In addition, many environmental activist groups have used lawsuits to harass farming operations of which they do not approve. This bill would prevent farmers from being financially harmed by these lawsuits. Kraft told HAT the bill requires the court to determine if the lawsuit was filed frivolously, maliciously, or groundlessly, “If the court determines any of these are the case, the plaintiff would have to pay the farmer for the cost of the litigation, including attorney fees.”

Kraft points out that the law is very narrow and specific and does not apply to genuine and provable complaints against a farming operation that may be breaking the law or damaging the environment.  He told HAT the bill is moving and is expected to pass, but not without opposition. It is opposed by the Indiana Trial Lawyers, the Hoosier Environmental Council, and the Sierra Club. Kraft said, “Most of the opposition is being stirred up by two lawyers who have built a very lucrative practice out of helping people file lawsuits against farmers.”  Kraft said many of those who oppose the bill have misrepresented the legislation in media reports.  They claim the bill would make it harder for citizens to take action against “factory farms.”  Kraft said the measure does not prevent citizens from taking legitimate action but does discourage activists from using the court system to advance their radical agendas.  Authored by Representative Bill Friend and Don Lehe, the bill was amended and passed second reading in the House.

The second provision of the bill provides that the owner of farm property may detain somebody he suspects is manufacturing methamphetamine on his property for up to two hours or until law enforcement arrives.

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National farm policy should be rewritten this year to establish a program that protects farmers from catastrophic revenue losses by using a flexible combination of fiscally responsible tools, said voting delegates at the American Farm Bureau Federation’s 93^rd Annual Meeting. In approving the organization’s farm policy for 2012, the farmers and ranchers endorsed a multi-pronged policy proposal, including a provision for catastrophic revenue loss protection that works with a flexible range of crop insurance products, as well as amending the current farm bill’s marketing loan provisions to better reflect market values.

The adopted policy calls for a farm bill that “provides strong and effective safety net and risk management programs that do not guarantee a profit and minimizes the potential for farm programs affecting production decisions.” “Our delegates approved a program to help farmers manage the many different types and levels of risk they face today, in particular catastrophic revenue losses that can threaten the viability of a farm or ranch,” said AFBF President Bob Stallman. “That is consistent with what we believe is the core mission of the federal farm program.”

Stallman was re-elected as AFBF president for a seventh two-year term. He is a cattle and rice producer from Columbus, Texas. In addition, Barry Bushue was re-elected to a third two-year term as AFBF vice president. Bushue produces berries and nursery plants in Boring, Ore., and also serves as Oregon Farm Bureau president.

The delegates defeated a proposal to retain the current farm bill’s direct payments. In addition, by almost a two-to-one margin, the delegates defeated an amendment that would have allowed a patchwork of support through multiple programs for different commodities and regions. “Delegate action against the patchwork approach recognized that it is impossible to ensure equity between diverse programs for various commodities,” Stallman said. “Without that assurance, one program would inevitably provide more government protection than the next program and we would inadvertently be encouraging producers to take their signals from government programs rather than the marketplace.

“Our delegates approved a policy that is flexible enough to work within the funding constraints we, as a nation, are facing, and the fiscal challenges we have a duty to address,” Stallman said. “Our delegates recognize we need to move beyond the policies of the past and to move toward programs to help producers deal with risk.” One of the big advantages of the new AFBF farm policy position is that it offers a much simpler approach to farm program design than other farm policy proposals, according to Stallman.

The AFBF farm policy also encourages farmers to manage their farms using available risk management tools. According to Stallman, farmers should be allowed and encouraged to make individual management decisions to purchase crop insurance coverage that suits their farms and individual levels of risk.

nother positive aspect of the Farm Bureau farm policy proposal is that it can be applied to specialty crops. “Our new farm policy position also includes the possibility of providing a farm bill risk management program for producers of fruits and vegetables,” Stallman said. “This is just one positive aspect of the proposal that we believe not only will broaden its utility to all farmers but will also appeal to an American public that is more interested in the wholesomeness, safety and variety of our domestic food supply.”

In a related discussion on dairy policy, delegates voted to move away from the current dairy price support and Milk Income Loss Contract programs and toward a program that bases risk protection on milk prices minus feed costs. This takes production costs into consideration, as well as recognizes the dairy industry’s regional differences, according to Stallman.

On renewable fuels, the delegates reaffirmed support for the federal Renewable Fuels Standard by defeating an amendment to strike that support “The RFS remains critical to the viability of ethanol as an alternative to imported petroleum fuel,” explained Stallman, “and the delegates felt that continuing to support production and use of domestic renewable fuels was a national security issue.”

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he delegates opposed the Labor Department’s proposed expansion of the list of jobs deemed too hazardous for minors. “The proposal has raised serious concerns in farm country about our ability to teach our children how to farm and instill a good work ethic,” Stallman said. “There is a great deal of concern about federal regulatory overreach, but few issues have piqued farm families more than this. It goes to the very heart of how agriculture works, with farmers and ranchers, who were taught by their parents how to do farm work safely and responsibly, training the next generation to follow in their own footsteps.”

The delegates also supported a moratorium on new regulations on small businesses and agriculture.

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t the AFBF annual meeting, 369 voting delegates representing every state and agricultural commodity deliberated on policies affecting farmers’ and ranchers’ productivity and profitability. The policies approved at the annual meeting will guide the nation’s largest general farm organization in its legislative and regulatory efforts throughout 2012.