WASA News & Views - June 2001
Grain Indemnity Fund Update 2
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ate last month and earlier this month, WASA held informational and listening sessions around the state for the membership regarding the proposed indemnity fund. The sessions were well attended and the opinions that were received were, by and large, against the indemnity fund proposal. The arguments made by the membership were along both philosophical and pragmatic lines. They ranged from "why should a financially sound buyer pay for producers who choose to deal with someone less sound?" to comments regarding cost and administration. The single most common complaint, however, was what has been called "sanctity of the fund" issues. This refers to not allowing the Legislature or any other governmental body to siphon off funds from the accumulated assessments.Following the listening sessions, the WASA Executive Board met with the Executive Boards of both the Wisconsin Corn Growers Association and the Wisconsin Soybean Association. After a frank discussion of the issues surrounding the indemnity proposal, the boards decided to issue the following joint statement reflecting their position, which was delivered to DATCP.
We fully support the current grain security law, however we would strongly support, as an alternative, an Indiana-style indemnity fund. Short of that, we do not support the Department's Indemnity Fund proposal as written for these reasons.
While the statement doesn’t cover every argument against the proposal as voiced by the parties at the table; it did cover the Board’s points of agreement. By way of explanation, an "Indiana-style" fund is based on that state’s fund, which is 100% producer assessment-funded and controlled by a producer board. For various reasons, before the scope of this limited format, DATCP does not consider an "Indiana-style" plan viable in Wisconsin. All three Boards respectfully disagree with the Department’s opinion.
Following the release of the joint statement, WASA staff was directed to communicate a statement to appropriate state legislative members. Since the proposal was going to be submitted by the Assembly Republican caucus last Friday, email was used to submit a second joint statement to all members of that group. The text of that email follows:
Representing the corn growers and soybean producers, as well as the feed & grain industry of Wisconsin, we support an indemnity fund proposal in general, but cannot support DATCP's Producer Security Proposal as it relates to the Wisconsin grain industry in its current format.
One area of concern relates primarily to the 'sanctity' of what will be the accumulated assessments paid by producers and the feed & grain industry of Wisconsin. These moneys will be the insurance fund for Wisconsin producers. It must be untouchable for any purpose except to pay producers in case of default.
Secondly, large animal feeders buying between $50,000 and $400,000 of producer grain a year are exempt from both current regulation and the proposal. (Those buying more than $400,000 annually are required to participate.) If a 'mom & pop' feed mill buying less than $50,000 annually from producers is required to participate in the fund, why should not a livestock feeder that buys $390,000 from producers?
We welcome your comments or questions.
Even though WASA has questions and concerns regarding the proposal, we are continuing to negotiate with DATCP. Among the point’s that have recently changed include the amounts and definitions that would be used in determining grain dealer licenses under the proposal. The new classifications would be as follows:
Class A annual purchases over $500,000
Class B annual purchases between $200,000 and $500,000, with the addition of large animal feeders required to be licensed and to pay assessments
Class B2 feed mills with annual purchases up to $200,000.
Regarding the "sanctity of the fund" issue, while the Department, and even the current Legislature, can design as "siphon-proof" system as can be imagined there are no guarantees. The fact is any future Legislature can do pretty much what it wants to with these funds. That certainly doesn’t paint a too confidence-inspiring picture for future producers covered by the fund. All this said, even though the proposal has a "head of steam," final passage is by no means certain. A possibly uncertain future for the budget provision in the Democratic-controlled Wisconsin Senate means it is not a "done deal." We’ll keep you updated to any further changes as it moves along.
WASA & CRP Expansion
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ASA, along with the National Grain & Feed Association and 17 other state and regional grain and feed associations, joined in urging Congress not to expand the Conservation Reserve Program (CRP) beyond its current 36.4 million-acre ceiling when writing the next farm bill. Instead, all the affiliated associations urged Congress to focus on enhancing conservation programs that better protect land and water resources from agricultural runoff resulting from crop and animal agriculture production.The associations also recommended that future enrollments in the existing CRP, which currently consists of 33 million acres, should be targeted at buffer strips, filter strips and other partial-field techniques because of the benefits such enrollments have in mitigating the adverse impacts of agricultural runoff on waterways. Such partial-field enrollments also would allow environmentally sound farmland to remain in production, thereby reducing the adverse economic impact on rural communities.
A statement made by all the affiliated groups urged the Bush Administration to impose a strict limit on the maximum 25 percent of farmland in individual counties that is allowed by current law to be enrolled in the CRP. The group also urged ending the practice of allowing enrollment of entire farms in the CRP.
Group Life Insurance Plan
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FSFSA Inc. Insurance Fund, a sister organization to WASA, offers group life insurance to all WASA members. This is a simple term life policy with a maximum benefit of $10,000 for active owners, partners, and officers, and a maximum benefit of $5,000 for supervisory employees and $3,000 for all other employees. State law requires that if you participate in this program it must be made available to all eligible employees. An individual who works less than thirty hours per week or is a temporary/seasonal employee is not eligible. The employer is encouraged to pay the full cost of the plan but employees may contribute not more than $.60 per month per $1,000 of insurance. Costs are as follows:Under Age 65 Coverage Quarterly Cost
Active Owners,
Partners, and Officers $10,000 $43.50
Supervisory Employees $5,000 $21.75
All Other Employees $3,000 $13.05
Age 65 and Over - Call WASA office (608-223-1111, ask for Sally) for costs.
If you would like to participate in this plan, please contact Sally Balson at (608) 223-1111.
Ag Clean Sweep 2001
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t’s time to check those sheds, basements, or warehouses to see if you have any unwanted chemicals for disposal. Because, if you do, the Agricultural Clean Sweep Program has many disposal opportunities for you in 2001. Thirty-seven counties have collection sites, so there is a pretty good chance that one or more sites are close to your business location.Ag Clean Sweep will provide its standard 50% discount for all agricultural pesticides in 2001. So, if you happen to have any old insecticides, fungicides, herbicides, fumigants, lead paint, etc., your disposal bill will be cut in half. These savings are on top of the savings that you will see by driving your unwanted chemicals to a drop-off site. Normally waste haulers charge anywhere from $100 to $300 for a private party pickup. Clean Sweep can be a very good deal for businesses!
One new service Ag Clean Sweep is offering in 2001 is sludge disposal. If your business location generates sludge from loading areas or weigh-scale pits, this waste can be accepted by Clean Sweep for a 50% discount. Sludge can pose difficult disposal problems, so this option should be checked out.
To find out how much you can save by using Ag Clean Sweep for disposal, contact the county coordinator listed on the enclosed insert. The county coordinator can let you know how to get your no-obligation price quote from the program’s waste hauler. If you like what you hear, a location will be determined and a time assigned. It normally takes only 10 to 15 minutes to unload chemicals and complete final paperwork.
If you have questions about Wisconsin Ag Clean Sweep, call Roger Springman, Ag Clean Sweep Program Manager, at 608-224-4545 or check out the
Clean Sweep website at http://datcp.state.wi.us/static/arm/csweep/