™ ® August 2012
Volume 69, No. 7
Fences, Railroads and Cattle
by Chad Smith, Senior Director, Government Relations time a bred cow is killed. He figures the sides of their said railroad, or the New Mexico became home to that: part thereof so open for use, suitably railroads in 1878. Railroads back Loss of calf for current year and amply sufficient to prevent cattle, then were welcomed as a sign of $605 horses, sheep, mules, burros and hogs progress and growth. There are two Retained heifer that could have sold from getting on the said railroad. If major rail lines crossing New Mexico $605 any railroad shall fail to construct and transporting interstate commerce; Lost income until replacement calves Union Pacific and Burlington Northern maintain such fences and cattle guards $1,210 as herein directed, such railroad shall amongst several narrow gauge and be liable to the owner for all damages recreational railroads. Travel any of It takes a long time to recover from resulting from injury or death caused the major highways in New Mexico and you can almost guarantee that you to any such livestock. A sufficient and a $2,400 loss, especially if several cows are killed at once. This was the suitable fence is defined and declared will see a train. to be a fence at least four and one-half situation faced by Liane Carr, Carr While we continue to welcome Cattle Company in McKinley County. feet high, constructed of posts and those rail lines and support progress In November 2010, she lost 14 wire, the top wire to be four and oneand commerce, we also want the bred cows on BNSF tracks where the half feet above the ground and shall railroads to support New Mexico, fence was in disrepair. respect our state and “Railroads and ranchers our livelihoods and are essential to New be good neighbors. Mexico, they need Farmers and Ranchers to work together are good people, the to effectively and type of people that efficiently use the land. welcome you into their The minimum expected home, feed you and of the railroad should be treat you like family. to secure their property Good people that just to protect the welfare of want to get along with animals and humans.” the way of life that they There have been have chosen and make several bills introduced a true honest living at in the State Legislature something they love over the past couple to do. Who would of years that just seem have ever thought that to not have enough a railroad would ever steam, no pun intended! create a burden on our On July 25, 2012, lives? I mean after all Cattle killed by the BNSF railroad at the Red Cliffs Ranch, 2010 NMF&LB’s President when rail travel first photo courtesy of DeLaRosa Ranching Mike White and New began it was a big part Mexico Cattle Growers’ of ranchers and farmers have at least four wires upon posts not Association President Rex Wilson lives. Well times have changed and wrote a letter to the BNSF reminding railroads have grown and seem to have exceeding twenty feet apart. them of their fencing obligation. However for many years now we forgotten how to be good neighbors. BNSF had previously stated that they are finding that the fences are being Here in New Mexico many of our would provide the fencing material but neglected. Ranchers are losing cattle farms and ranches share the land would not provide the labor. White at alarming rates each year due to the with the railroads, and while we try and Wilson unequivocally stated that negligence of the railroads and this to be good neighbors we seem to find this policy is unacceptable and “Does is simply unacceptable. As ranchers ourselves being bullied. not coincide with current statute, know, the loss of production from Railroads in New Mexico therefore we are requesting that BNSF one cow who has died on the tracks are responsible for erecting and abide by the law and simply repair and is enormous. According to Dr. Nick maintaining their fences according to Ashcroft, NMSU’s Extension Range State statute 77-16-16 which states continued on pg 4, see Railroads Specialist, it impacts the rancher’s “Every railroad in this state… shall erect and thereafter maintain fences on bottom line by about $2,420 every
IDEAS AND ELBOW GREASE
The President’s Column
By Michael S. White, President
Got Farm Bill Relief? New Mexico has benefitted greatly from our dairy industry. Not only do they support our rural communities and businesses, but they also make significant contributions to our state’s economy. Unfortunately, last year’s drought in the Southwest and the current drought in the Midwest has spiked feed prices taking its toll on dairy finances. Dr. Robert Hagevoort, NMSU’s Dairy Extension Specialist, says we’ve already lost 15 dairies so far this year - that’s ten percent of the state’s total dairy industry. For every dairy that goes out of business we lose 30 jobs since most dairies have one employee per 100 cows and the typical size of a New Mexico dairy is 3,000. So far it is estimated that we’ve lost around 1,500 jobs with the 15 dairies that have gone under. And that’s direct jobs. When you figure there are 100 indirect jobs that rely on a single dairy, when that dairy is gone so are services such as doctors, automobile dealerships and teachers. However there is relief for the dairy industry in the new Farm Bill with its newly introduced safety net called the Margin Insurance Program. For the first time, dairy farmers would benefit from an insurance program similar to that of crop insurance. Like all of us in production agriculture, dairy farmers rely on banks for operating capital and banks need predictability. The current market is too volatile and banks won’t extend lines of credit in this type of environment. The new Farm Bill with the Margin Insurance Program would mediate that volatility allowing more dairies, with the aid of the banker, to weather the storm. Right now, at $8.00 corn, a typical dairy is losing between $5 and $7 on every 100 pounds of milk they ship. Farm & Ranch Page 2
The new Farm Bill would reduce that loss to $1.00 per 100 weight, enabling dairy farmers to secure credit providing relief for not only that industry, but for New Mexico’s economy as well. I know first-hand the importance of the dairy industry having been raised on one, and my father worked for Price’s Dairy in Roswell and El Paso for 50+ years. Dairies are an economic driver for rural communities and many families depend on them for a living. Let’s ensure that they continue to have a viable future in our state. Providing farmers with improved risk management tools is a core principle of both the House and Senate versions of the pending farm bill. Both versions contain new tools that will assist farmers, while restoring several expired provisions that would help livestock producers manage the weather-related risks that regularly impact their livelihoods. We are hopeful our congressional leaders will expedite their work on this vital legislation and approve it this fall. Call your representative and let them know you support passage of the new Farm Bill. Senator Jeff Bingaman (D) 202-224-5521 Senator Tom Udall (D) 202-224-6621 Representative Martin Heinrich (D-01) 202-225-6316 Representative Steve Pearce (R - 02) 202-225-2365 Representative Ben Ray Lujan (D-03) 202-225-6190
THE AG AGENDA
By Bob Stallman, President American Farm Bureau Federation -------------------------------------------
Stop the Flood of Regulation Burdensome and unnecessary regulations are always a point of contention for farmers and ranchers, especially when we are being flooded with what seems to be never-ending, nonsensical rules. In keeping with the ebb and flow of bureaucracy, the Environmental Protection Agency and Army Corps of Engineers are planning an upheaval of the Clean Water Act (CWA) that would add more . . . you guessed it . . . rules and regulations to farms and ranches. That’s why the American Farm Bureau Federation is leading the way to stop EPA and the Corps from literally regulating every drop of water on private landowners’ property. Through a nationwide grassroots campaign, we are engaging Farm Bureau members to “Stop the Flood of Regulation.” A $30,000 Ditch
New Mexico Farm & Livestock Bureau Annual Meeting Highlight Join us for an entertaining keynote presentation by Bryan Townsend. He calls himself a humorist not a comedian “They tell dirty jokes and I’m just funny.” From Talladega, Alabama Bryan is sure to tickle your funny bone. This is one of the great speakers you will hear at the NMF&LB Annual Meeting, November 15-17. So mark your calendar and we’ll see you in Albuquerque!
For some time, the EPA and Corps have been trying to remove the word “navigable” from the Clean Water Act through what is called a “Guidance Document.” This would change the very meaning of the CWA to allow for such frivolous action as regulating a roadside ditch that holds water for only a few hours after a 4-inch rain. The Guidance Document should be used to explain processes and policies of existing laws and regulations—not to expand or change the scope of current law. Importantly, a Guidance Document does not go through the rigors of the regulatory process that serve to protect the rights of the regulated community. But, EPA and the Corps’ action to improperly use the Guidance Document to remove “navigable” bypasses conAugust 2012
gressional intent and ignores Supreme Court precedent. For the past 10 years, Congress has voted specifically and repeatedly to keep the term “navigable” in the CWA. We believe this Guidance Document is not only bad policy but is being implemented through a regulatory sleight of hand. Farmers, ranchers and private landowners need to preserve the authority the CWA has granted states and localities for nearly 40 years and stop the deluge of regulations and permitting requirements that will likely result if the Guidance Document is finalized. The two agencies are piling on regulatory burdens with little regard for the costs for landowners. These costs, which could be upwards of $30,000, with increased permit requirements and reduced nutrient applications, are very real and have direct impacts on the farm. Engagement v. Regulation It’s important that every Farm Bureau member become engaged in pushing Congress and the administration to block the Guidance Document before the end of this Congress. There are many ways to get involved. Visit the FBAct Insider page to learn more. For those who are social media savvy, follow @StoptheFlood on Twitter and post pictures of your soon to-be regulated ditches and puddles using the #stoptheflood hashtag, or “Like” the Stop the Flood of Regulation Facebook page, post your pictures and comments and get updates on the campaign. It’s time to show Congress how the Guidance Document could cost farmers, ranchers and private property owners tens of thousands of dollars. It’s time to Stop the Flood of Regulation.
Save the Date! Sept. 20-21 Board Meeting, Sheraton Uptown, Albuquerque Nov. 15-17 Annual Meeting, Sheraton Uptown, Albuquerque
We understand how you make your living, because it’s how we make our living. And tougher times call for smarter, careful thinking. That’s why, since 1916, New Mexico’s farmers and ranchers have counted on us for solid financial services when they need them most. We’ve been there. We’ll be here.
2013
Jan. 13-16 AFBF Annual Conv., Gaylord Opryland Hotel, Nashville February 19 AgFest, Sweeney Center, Santa Fe February 20 Legislative Breakfast, La Fonda Hotel, Santa Fe
August 2012
C A L L 1 - 8 0 0 - 4 5 1 - 5 9 9 7 o r v i s i t W W W. FA R M C R E D I T N M . C O M ALBUQUERQUE • ROSWELL • L AS CRUCES • TUCUMCARI • CLOVIS
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A Message from Matt welfare. That has never been true and this years’ proposed bill is more beneficial for agriculture than ever before. That is why NMF&LB supports the new bill as written, rather than the prospect of extending the current Farm Bill.
About the Farm Bill… By Matt Rush, NMF&LB Executive Vice-President Many Americans do not understand the Farm Bill. They’ve been swayed by newspaper accounts and tv news that portray the bill as agricultural (Railroads cont. from page 1) maintain its fencing.” Industry has made progress on this issue and on July 31, it was a topic of the Water and Natural Resources Interim Committee. With representatives from both the Union Pacific and Burlington Northern, legislators from across the state sent a message to the railroads. Operate according to law, work with the livestock industry and fix the problem, otherwise the legislature will fix it for you. In response, BNSF sent a letter to NMF&LB and NMCGA reinforcing their commitment to being good neighbors and suggested “we schedule a meeting prior to year’s end to evaluate the effectiveness” of a new process for reporting and reimbursement of cattle claims. This is another example of NMF&LB advocating for our members and we hope that this will be the end to an issue that has plagued ranchers for years. Visit www.nmfarmbureau.org to review the procedure on how to address a railroad fencing issue. Farm & Ranch Page 4
1. The new bill has drought and emergency programs for livestock producers. This is great considering the current drought situation in New Mexico. There has never been an emergency protection program for the livestock industry so this is certainly good for our New Mexico ranchers. 2. Within the senate version of the new bill there is some funding for education and research that would be very beneficial to New Mexico State University. Our Land Grant University has continued to take budget cuts year after year, which ultimately impact our New Mexico producers. Many New Mexico producers rely heavily on the education and research provided by New Mexico State and this is a vital component to our livelihoods.
3. The house bill offers a program for the peanut industry that does not exist in the current Farm Bill and would certainly benefit our New Mexico peanut growers. 4. Extending the current Farm Bill would cause the dairy industry to deal with the current MILC Price support program whereas the new Farm Bill eliminates the MILC program and introduces two new programs beneficial for New Mexico Dairies, Dairy Product Market Protection Program and the Dairy Market Stabilization Program. 5. Extending the old program will also cause our baseline amounts to be decreased when we get a new program the following year. We believe that this is probably one of the most bi-partisan Farm Bills in years, where industry has truly worked hard to create a Farm Bill that benefits everyone while keeping in mind the budget constraints. This bill is good for New Mexico and our industry as a whole and we urge our representatives to support its passage.
Farm Bureau , Working For You ®
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The USFRA Comes to Town
During the NMF&LB Summer Meeting Don Lipton, AFBF’s Executive Director of Public Relations spoke about the progress of the United States Farmers & Ranchers Alliance. According to their website http://fooddialogues.com “The USFRA is a newly formed alliance consisting of a wide range of prominent farmer- and rancher-led organizations and agricultural partners. This marks the first time agricultural groups at the national, regional and state levels have collaborated to lead the dialogue and answer Americans’ questions about how we raise our food – while being stewards of the environment, responsibly caring for our animals and maintaining strong businesses and communities.” One of their recent efforts was a food dialogue where farmers, ranchers and consumers gathered in Los Angeles to “discuss the important questions about our food and how it is produced. We have all become invested in knowing more about where our food comes from, how it was grown and raised and how it impacts our personal health. USFRA helps farmers and ranchers answer consumers’ and influencers’ questions, including the tough ones, about food production.” They have more dialogues, brochures, meetings and webinars planned so keep an eye on this group and their activities. This graphic is part of their recently published research roadmap titled “Building Trust in Agriculture.”
August 2012
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Ranchers, Dairymen Face Steep Feed Prices The drought that plagued the Southwest last year has extended its reach to the Midwest as well, causing the driest conditions to hit that area since the 1950’s. This has had a terrible impact on corn production as 75% of the corn crop withers away in the summer heat. Of course lower yield means higher prices and corn is expected to rise another 20 to 25%. Corn that was trading at $5.20 a bushel in June is currently being delivered to the Purina Feed Mill in Lubbock for $8.60 a bushel. It is expected to rise to $9.50 a bushel in the next six months. And since corn drives the price of all other ingredients, feeding your livestock, and your family, is going to be increasingly expensive in the coming months. Because most foods include a corn component, either as feed, an ingredient, or through the use of high fructose corn syrup, food prices will rise over the next year. The USDA conducted a survey of more than 25,000 farmers and ranchers and the results indicate a lower production of milk, eggs and pork. According to the report “Beef production is expected to rise as ranchers cull more of their herds because of higher feed prices.” As the culled herds diminish supplies, the price of beef will rise, contributing to an overall 5% increase in grocery bills next year. Tightening corn supplies has renewed the debate about ethanol and its effect on corn prices. The Renewable Fuel Standard, a law which was introduced in 2005 to encourage America’s energy independence, requires the production of 13.2 billion gallons of ethanol in 2012. This results in the diversion of 40% of the nation’s corn Farm & Ranch Page 6
crop to biofuels, rather than feed and food. The Dairy Producers of New Mexico have signed onto a petition requesting that the EPA waive the federal mandate. “The cost of production is higher than the price producers are getting for the milk right now, so there is a petition asking the EPA to waive the mandate for at least one year to get corn prices to come down to help our members,” said Beverly Idsinga, Executive Director of the Dairy Producers of New Mexico. This is within the power of the EPA as the original law had a provision which allowed the RFS to be waived “due to severe economic harm.” Cosigners of the letter included the National Cattlemen’s
Beef Association, the National Pork Producers Council, the American Meat Institute, the National Turkey Federation, the National Chicken Council, and the American Sheep Industries Association. A bipartisan group of senators have also written a letter to EPA Administrator Lisa Jackson asking her to “use existing waiver authority as soon as possible to adjust the corn-ethanol mandate.” Among the 26 participating senators was Tom Udall. Congressman Steve Pearce signed a similar letter on August 1 from 156 members of the House of Representatives. Janet Jarratt, a dairy owner from Valencia County who is also on the NMF&LB State Board echoes con-
cerns about market volatility. “Even though we grow our own hay, we are still subjected to the whim of the commodity markets, and because of speculators, the market is very volatile and not as tied to seasonality or actual supply. Additionally, the issue for dairies isn’t solved by increased prices at the grocery because the federal milk market administrator determines farm price based on a very complex formula. Culling may keep beef and dairy operations alive for now, but will lead to shortage shortly as destocking reduces future production potential.” So what can producers do to lower their feed prices? Dr. Robert Hagevoort, NMSU’s Extension Dairy Specialist has a few suggestions. “Any alternative feed we had, we fed last year. Some farmers are even harvesting tumble and pig weeds. I fielded a call from California asking if dairy cows could eat palm fronds if the spines were removed.” Short of that, there are a few things he recommended for next year. If you plant your own forage he suggests that you plant sorghum. Although it provides less energy and tonnage, it is more drought tolerant. You may also want to consider planting corn later in the year to avoid a very dry and windy spring. Short season varieties would work well if planted by June 15th and would be able to take advantage of potential monsoon rains. Lastly “consider utilizing grassland or CRP lands for a roughage supply making sure that some stubble remains to prevent wind erosion when the spring winds come.” (NMSU Dairy Extension Newsletter, December 2011, http://chavesextesion. nmsu.edu/documents/2011-nmsudairyextnewslr-dec.pdf). August 2012
The lifeblood of America. They’re the humble heroes who rise before dawn and battle the elements. They put clothes on our backs and food on our tables. Their genuine values and tireless work ethic are an inspiration to us all. We appreciate all that America’s farmers do and invite you to join us in saying thanks at www.fbfs.com/SayThanksToAFarmer. FB02-ML (3-12)
August 2012
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Non-profit Organization U.S. POSTAGE PAID Albuquerque, N.M. Permit No.42
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NEW MEXICO FARM & LIVESTOCK BUREAU Since 1917 . . . a Leader in New Mexico
ISSN 0028-6192 2220 N. TELSHOR BLVD. • LAS CRUCES, NM 88011 575.532.4700 • FAX: 575.532.4710 PUBLISHER: New Mexico Farm and Livestock Bureau New Mexico Farm & Ranch is published monthly. Yearly subscription is $24.00. New Mexico Farm and Livestock Bureau members receive a complimentary subscription with yearly dues. U.S. Postage PAID, bulk rate, PERMIT #31, Las Cruces, NM 88001. FORWARDING/RETURN POSTAGE GUARANTEED, ADDRESS CORRECTION REQUESTED. OFFICERS Michael White President, Dexter Dennis Harris 1st Vice President, San Antonio Craig Ogden 2nd Vice President, Loving
Matt Rush Executive Vice President BOARD OF DIRECTORS Burl Brown, Clayton Greg Daviet, Las Cruces Chad Davis, Portales Jim Ellett, Hope Duane Frost, Claunch Leon Hemann, McDonald Brad Houston, Roswell Janet Jarratt, Los Lunas Dustin Johnson, Farmington Boe Lopez, Springer Donald Martinez, El Rito Steve Myrick, Clovis Larry Reagan, Ft. Sumner Troy Sauble, Maxwell Paula Sichler, San Antonio Anna Sanchez-Glenn, Albuquerque John Sweetser, Deming Jim Taylor, Albuquerque Pat Woods, Clovis John York, Mimbres
REGIONAL DIRECTORS Joel Alderete, Roswell Benjie Segovia, Las Cruces Chad Smith, Albuquerque Dennis Garcia, Santa Fe Theresa Widner Director of Membership Services Carmen Macias Administrative Assistant Dalene Hodnett Director of Communications and Media Relations Traci Williams Director, Ag in the Classroom Ashley White Ag in the Classroom Coordinator Anna Sanchez-Glenn, Chair Women’s Leadership Committee Dustin Johnson, Chair Young Farmer & Rancher Committee