California Wheat Commission  

1240 Commerce Ave. Suite A, Woodland CA 95776-2267* (530) 661-1292* FAX: (530) 661-1332* E-Mail: info@californiawheat.org

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California Association of Wheat Growers (CAWG)

1521 I Street, Sacramento CA 95814; 916-492-7066; Fax: 916-446-1063; Wheatgrowers@aol.com

Previous CAWG Updates

December 7, 2009

In This Issue
Self-Propelled Off-Road Agricultural Equipment Survey
House Approves Bill Extending 2009 Estate Tax Provisions
House Ag Looks at Costs, Benefits of Climate Change Bill.
USDA Releases Draft of New Crop Insurance Agreement
Self-Propelled Off-Road Agricultural Equipment Survey
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The California Association of Wheat Growers (CAWG) along with other agricultural organizations are asking our respective members to fill out the attached questionnaire regarding self-propelled off-road agricultural equipment that is 25 hp or greater. Please complete this survey and return it no later than December 31, 2009 to your primary agricultural association at the address listed below. Other agricultural organizations are also conducting this survey so only provide this information once; do not send the completed survey to more than one agricultural association.
 
We are requesting your input regarding the agricultural equipment you own or lease for  two reasons.   
  1. The California Air Resources Board (CARB) is planning on developing a rule for agricultural equipment in 2010; the rule will be developed with stakeholder input with staff planning to bring the measure to the Board for a vote in late 2010.  A survey or inventory of what equipment is out there and how it's operating is a key step in getting a fair rule which will begin our effort to negotiate a rule that provides air quality improvements while taking into full account the significant cost impact to agricultural users.
     
  2. There are several programs in California that promote improvement of air quality by providing grants to replace older equipment with newer equipment.  CAWG leadership would like to explore whether the association could "bundle" grant applications on behalf of our members instead of each individuals having to go through the application process.  We also believe that the granting agencies would be interested in single applications as well.  This survey, in general will give us a good idea of the numbers, types and usage of equipment in our facilities.
We will remove your contact information the questionnaire before the data is submitted to the California State University, Fresno Foundation who will be compiling the data for CARB.  All information provided to the Foundation is confidential and cannot be accessed by any private or public request. CAWG will give each survey respondent an identification number in the box on the top right corner of the survey.  In the rare instance that clarification is needed, the Foundation will contact CAWG.  We'll then contact you to get further explanation.
 
In every step of the survey process your personal contact information will remain confidential and protected and will not be shared with the Fresno Foundation nor the State of California. 
 
If you have questions contact Jane Townsend at 916-492-7066 or email at jtownsend@cgfa.org or tad Bell at 916-716-2317 or tbell@veloconsulting.com. 
 
Please complete only the one form appropriate for your operation and business. 
 
We're assuming that you'll be filling out the Grower Survey.  There's also a "First Processor" form intended to be only completed by first processors of agricultural products.  A detailed definition is found on the survey form. 
 
Please return your survey no later than December 31, 2009 to the address or fax below.  If you'd like a self addressed envelope please contact Donna.    

California Association of Wheat Growers
1521 "I" Street
Sacramento, California 95814
 
Fax Number:  (916) 446-1063
 
If you'd like to fill out a hard copy of the grower survey CLICK HERE (if you're getting this in the mail or fax a copy is attached). 

If you'd like to fill out a hard copy of the first processors survey CLICK HERE
 
The California Farm Bureau Federation has graciously made their computer technology available to other associations.  If you'd like to fill out either the grower, first processor or custom harvester survey electronically, CLICK HERE (just below the contact information make sure you indicate your with the California Association of Wheat Growers).
 
House Approves Bill Extending 2009 Estate Tax Provisions
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The House of Representatives voted 225 to 200 on Thursday to extend 2009 estate tax law into 2010 and beyond.

The tax is set to expire at the first of the year and come back in 2011 at a higher rate. The bill passed Thursday, H.R. 4154, would install permanently 2009's exemption of $3.5 million per person and the 45 percent tax rate, without an index for inflation.

It is unclear how the politics or timing of this issue will play out in the Senate.
Earlier in the year, the Senate endorsed as part of its budget resolution a proposal from Sen. Jon Kyl (R-Ariz.) and Senate Agriculture Committee Chairman Blanche Lincoln (D-Ark.) that would include a $5 million exemption and make 35 percent the top rate.

Regardless of whether or not that proposal could again gain support, the health care debate is unlikely to stop for the estate tax or other time-sensitive issues. In light of this, there is some talk of tacking a one-year extension of the tax onto an omnibus appropriations bill to avoid the measure's expiration.

The California Association of Wheat Growers and 90 other organizations including NAWG signed onto a letter sent Monday asking House leaders to consider H.R. 3524, which would exclude farm assets from estate taxes for as long as the property remains as a family agricultural operation.

In the letter, addressed to Speaker of the House Nancy Pelosi (D-Calif.) and House Minority Leader John Boehner (R-Ohio), the groups expressed general support for estate tax reform and told them "it is essential that Congress additionally deal with the unique problems that farmers and forest owners face with generational family transition."

The estate tax has been historically burdensome for family farming operations with the majority of asset value tied up in land. The groups told Pelosi and Boehner that by 2011, one in 10 farm estates would be hit by the tax.

NAWG policy calls for a $10 million maximum on which no estate tax would be paid.

The full letter is online at: 
http://www.wheatworld.org/wp-content/uploads/other-coalition-house-estate-tax-letter-20091130.pdf
 
House Ag Looks at Costs, Benefits of Climate Change Bill
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The House Agriculture Committee's Subcommittee on Conservation, Credit, Energy and Research held two hearings this week to look at the costs and benefits agriculture can expect from climate change legislation and a cap-and-trade program like that included in a House-passed version.

The panel heard primarily from economists from around the country with deep backgrounds in agriculture, including from USDA's Chief Economist Dr. Joseph Glauber, who testified at both hearings.

Glauber concluded in his second day of testimony that the ability to generate and sell offsets would provide income "which would more than compensate" for lost income due to higher energy prices with projected higher commodity prices.
Glauber's written testimony provided more detail than previously issued by USDA, including projected sources and revenue of offsets; annual offset revenue by region; national changes in land use; and crop production and price impacts on specific commodities.

For wheat, the scenario considered showed relatively little change in production until after 2045 and somewhat larger changes in price - a projected five cent per bushel drop in 2015 and 15 cent per bushel drop in 2020, but a 14 cent per bushel increase in 2030 and 55 cent per bushel increase in 2050.

Dr. Joe Outlaw from the Agricultural and Food Policy Center at Texas A&M University testified that of his group's 11 representative wheat farms, eight would have higher ending cash reserves under a cap-and-trade scenario relative to the baseline. While 17 of 25 feedgrain or oilseed farms also showed higher ending cash reserves, cotton, dairy and cattle operations did not fare well across the board.

Despite the extensive analysis and testimony, the only firm conclusion was that the real costs or benefits are largely unknown, though there was general agreement that the cost of doing nothing and likely regulation would exceed the cost of legislation.
By way of example, Outlaw testified that his organization has been doing policy analysis for Congress for almost 30 years and has never had to make as many assumptions in order to complete their work.

Opening statements from all witness are at:
USDA Releases Draft of New Crop Insurance Agreement
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USDA's Risk Management Agency (RMA) released on Friday the first draft of a proposed new Standard Reinsurance Agreement (SRA) for the federal crop insurance program.
 
The 2008 Farm Bill authorized a rewriting of the SRA, which is the agreement between the Federal Crop Insurance Corporation and the crop insurance companies that serve farmers throughout the country.
 
A number of issues are at stake in the SRA process, including the handling of administrative and operating reimbursement rates that, if cut inappropriately, could affect the level of coverage and service producers experience.
 
USDA said the release of the draft follows months of preparatory discussions and a review of historical rates of return from crop insurance by an outside firm.
 
RMA will be meeting with companies to discuss the first draft next week. The goal is to finalize the agreement by April 1 in order to give the companies time to sign it prior to the beginning of the 2011 reinsurance year, which begins July 1, 2010.
 
NAWG will continue to engage with both the Administration and crop insurance providers to ensure that the finalized agreement does not negatively affect program delivery to wheat producers.  NAWG will also continue to advocate needed changes to crop insurance audit procedures through this process.
 
The outside firm's study is available at http://www.rma.usda.gov/news/2009/09/milliman.html and the full draft proposal released Friday is at http://www.rma.usda.gov/news/2009/12/sra.html

The California Association of Wheat Growers Need Your Support!

Please complete the following membership application Print Form and send with your dues to:

California Association of Wheat Growers
1521 I Street, Sacramento, CA 95814

Grower Members

 Industry Partners

(check one)

 (check one)

___ Foundation Level $ 200

 ___ Supporter $ 300

___ Sustaining Level $ 500

 ___ Affiliate $ 600

___ Silver Level $ 750

 ___ Silver Partner $ 900

___ California Gold $1000

 ___ Gold Partner $1200

 

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Company Contact: _________________________________________________________________________

Address, City, State, Zip: ____________________________________________________________________

Phone:  ____________________________________ Fax: __________________________________________

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How would you prefer to receive the CAWG newsletter (publication twice/month):

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Please return this form to: CAWG, 1521 I Street, Sacramento, CA  95814
If you have questions, please call us (916) 492-7066 or email wheatgrowers@aol.com


CALIFORNIA ASSOCIATION OF WHEAT GROWERS

 KEEPING YOU INFORMED

California Association of Wheat Growers (CAWG) keeps you informed about the political issues, pending regulations, and market changes affecting your ability to farm.

KEEPING YOU IN BUSINESS

We are your advocate, fighting for your interests in actions taken by Congress, the California Legislature, and state and federal agencies on price supports, trade agreements, environmental and business regulations, water policy, and other actions that affect your bottom line.

WORKING WITH WHEAT AND OTHER AGRICULTURE GROUPS NATIONWIDE

CAWG works closely with the California Wheat Commission and other organizations.  But we need a strong membership base and dues support to anticipate and influence the issue affecting California wheat growers in production, marketing and consumption of wheat.  Your dues assist the National Association of Wheat Growers in Washington, and we work with other states’ wheat associations on common issues.

Please join us and become an active member today.

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CAWG Update