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Ag policy on state lands led by elected officials

When considering Wyoming’s five elected positions, and their replacements to be elected this fall, ag voters in the state may want to keep in mind a few aspects of the officials’ responsibilities that relate to state land leases and ag loans.
Wyoming’s five elected officials are the sole members of the State Loan and Investment Board (SLIB) and the Board of Land Commissioners, both of which are housed under the Office of State Lands and Investments (OSLI). The five elected officials are the Governor, Secretary of State, State Treasurer, State Auditor and the Superintendent of Public Instruction.
“When I look at those offices and the candidates who are up for them, I look as much as anything at how they’re likely to view things, particularly on the Board of Land Commissioners and the State Loan and Investment Board,” says Wyoming Stock Growers Executive Vice President Jim Magagna.
The OSLI is the administrative arm of the Boards and it is the statutory responsibility of the OSLI to carry out the policy directives and decisions of the Boards.
“The Board of Land Commissioners adopts the policies that the Office of State Lands carries out,” says Wyoming Farm Bureau Executive Director Ken Hamilton, adding in the past the Board has adopted policy on topics including grazing fees and subleasing state lands.
“They’re also the ones who approve the policies on how easements are negotiated across state lands,” continues Hamilton. “Years ago, when a pipeline company wanted to come across state land, they negotiated the easement with the state land lessee, and the fee structure was set up so the lessee could obtain some benefit from the easement. The State Land Board and the oil and gas industry thought the lessees were holding up the process, so the Board made a policy decision that industry could negotiate directly with the Office of State Lands.”
However, Hamilton notes another policy recently dictated by the Board of Land Commissioners says state land lessees are allowed to negotiate with wind energy developers for damages.
“Some major decisions that indirectly affect agriculture are the proposed state land rules on wind energy leasing,” adds Magagna. “They contain important provisions with regard to negotiating payment for the impact of development on grazing.”
Magagna adds in recent years the Board of Land Commissioners has been more proactive in looking at proposals for state land sales or exchanges.
“State land parcels are so often an integral part of a ranching operation, and decisions with regard to sales or trades can have a major impact,” he says.
Magagna also says an important question from the perspective of the Board of Land Commissioners is exactly to what is their first obligation to maximize and get the highest revenue possible, or optimize and consider the long-term value of the asset?
“A question for the candidates is how they view their responsibility as a trustee of state trust lands,” says Magagna, adding another question pertains to recreational use on state lands.
“By statute the Board could close all state land to recreation, or open it up to more recreation, or charge for recreating,” outlines Magagna. “If the lands are part of your ranch, and you’re otherwise not allowing recreation, that could cause some problems.”
“If the elected officials have some familiarity with agriculture, or some understanding of the situation, it helps them make better decisions,” notes Hamilton of the policies they set. “When we get into controversial decisions, having individuals on the boards that understand agriculture is very helpful.”
Today’s SLIB was statutorily created in 1921 as the Farm Loan Board, which administers the Farm Loan Program. According to the Office of State Lands and Investments, the Farm Loan Program was established to “foster and encourage agriculture, dairying and livestock raising in Wyoming.”
Since its inception the Farm Loan Program, which is authorized to loan up to $295 million in state permanent funds, was expanded to include irrigation, replacement breeding stock and beginning ag producer loans.
“In the past, when interest rates were higher, the State Loan and Investment Board was an important entity in loaning to ag folks,” says Hamilton, noting that today’s interest rates are low enough the state program hasn’t been used as much in recent years.
The SLIB also oversees the Beginning Ag Producer Loans, as well as community development grants.
“There are a lot of things they do that tie them to agriculture,” says Hamilton.
“The current Board of Land Commissioners has been in position for quite a while, and for the most part they understand the process,” notes Hamilton of Wyoming’s current leadership. “It’s partly the job of people in positions like mine to educate the elected officials on some of the issues important to us.”
Hamilton says that, at the end of the day, Wyoming’s Governor has the most influence of the Board members, because it’s the Governor who appoints the Director of the OSLI.
“That individual will answer first to the Governor, and it’s important to have somebody as Director who has some experience with agriculture and can make informed decisions considering the impacts to agriculture,” says Hamilton.
“The Director oversees the surface and subsurface portions of state land management, and when the Board of Land Commissioners meets they receive the Director’s recommendation for most of the issues before them,” says Magagna.
“If we can get someone appointed as Director of the Office of State Lands who understand agriculture and can establish a working relationship with the elected officials, that helps,” he adds.
Of the Superintendent of Public Instruction specifically, Magagna says he’ll pay close attention to how committed the candidates are to vocational education. “Nationwide we’ve seen a decline in a focus on vocational education programs, and having a Superintendent committed to that is really important,” he says.
Christy Hemken is managing editor of the Wyoming Livestock Roundup and can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. .

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American Farm Bureau Federation focuses on ESA, livestock tax issues

Sheridan – According to American Farm Bureau Federation (AFBF) Director of Congressional Relations Rick Krause, it’s still too early to see what’s going to happen with changes in committee structure in the U.S. Congress.
    Krause spoke at the Wyoming Farm Bureau Federation’s annual meeting in early November.
    Krause said one very disturbing thing relates to the House Energy Committee, which deals with energy and natural resource issues, including the issue of climate change. A representative from California has challenged the current committee chairman, who is from Michigan and is more practical, according to Krause.
    “The current chairman represents Detroit and is more practical and reasonable than others,” said Krause. “The one from California will be much more aggressive in trying to pass climate change and other nasty things. I don’t think he would have done this challenge had he not had the support of the Speaker, Nancy Pelosi, and a few other key Democrats.”
    Regarding President-elect Barack Obama, Krause said, “We know what he said before the election, and now that it’s over there’s a clean slate on everything.”
    Krause said he began working with Obama in early 2005 when the AFBF was looking for support on an Endangered Species Act reform bill. “He was on the Environment and Public Works Committee, and his reaction was that he wanted to work to bring people together and get something that would be workable for both sides,” said Krause. “Back then he was already saying the things he was saying during the campaign and I really hope he’s able to do that.”
    However, Krause said it will depend on the people Obama has around him. “If they’re agenda- and activist-driven we won’t get anywhere, but if they’re really trying to accomplish something for the good of everybody we might not be as bad off as we think.”
    Krause said the economy will be issues number one, two and three for the new administration and that health care is high on Obama’s agenda, as well as energy independence. “He’s more interested in things like alternative fuels. He’s not as keen on extraction in the U.S. and on public lands. He would do more things with renewable fuels and wind energy,” he noted.
Bending the law
    Krause said the Bush Administration tried to do some things with the delisting of the wolf. “They listened to what we’ve said, but they’ve done their own thing with this. Now it’s come down to the federal judge in Montana saying wolves should not be delisted.”
    He said the decision is an example of how a federal judge has bent the law and has not gone back to original discussions. “He found a hook to prevent delisting through finding a place in the final Environmental Impact Statement that talks about the need for genetic interchange,” said Krause. “That final EIS was four volumes long. If you can find only one or two places that talk about genetic interchange – that really doesn’t mean anything.”
    Discussions with the U.S. Department of the Interior have revealed the current staff fully intends to delist wolves before they leave the administration, said Krause. “They have vacated the final rule and have gone back to the drawing board, which is not a bad move because it keeps the control of the process in their hands,” he said. The strategy to delist the wolf has been put out for public comment until Nov. 28.
Sage grouse waits
    Concerning the sage grouse, Krause said the schedule provided that last June there would be a status review, which there was, and by December the U.S. Fish and Wildlife Service (FWS) was supposed to make a finding to list or not list, leading to a final decision in June 2009.
    Krause said the problem with the December deadline is that one of the requirements for the 12-month finding is consideration of an updated report from the Western Association of Fish and Wildlife Agencies. The update was due two months ago, and it’s still not out. WAFWA expects its completion in March or June 2009. FWS cannot move forward until they receive the report.
Cow, pig tax
    “The Environmental Protection Agency is itching to implement a cow and pig tax,” said Krause, explaining it’s in the context of climate change and greenhouse gases and regulating automobile emissions. “The problem is once you make a finding that greenhouse gases endanger public health or welfare, all other provisions of the Clean Air Act automatically kick in.”
    Under the law, any entity that emits more than 100 tons of a regulated pollutant per year is required to get a permit to continue operation. “This is a tax on your business – it gives you the opportunity to continue operating,” said Krause.
    According to USDA figures, any operation with 25 or more dairy cows, 50 or more beef cows or 200 or more hogs emits more than 100 tons of carbon dioxide per year and would trigger the requirement for an operational permit. Krause estimates 200 sheep would push a producer over the limit.
    In the dairy industry, operations with over 25 cows are 99 percent of the country’s milk production. Those with more than 50 beef cows compose over 90 percent of beef production, while operations with 200 or more hogs equal 95 percent of pork production.
    Under EPA guidelines, the tax equals $40 per ton of emissions. “If the states were to follow that rate, it’d cost $175 per dairy cow, $87 per beef cow and a little over $20 per hog per year. This is just a tax. This doesn’t get you anything,” explained Krause.
    EPA has already begun asking for some comments on whether they should move forward with the new regulation. The comment period runs through the end of November.
    “This is something everybody needs to fight,” said Krause. “It not only taxes animals, but farm machinery and dairy barns. Anything that involves greenhouse gas emissions would count toward the 100 tons.”
    “This tax is very significant and part of a much bigger regulation that EPA would do under this greenhouse gas rule,” he explained. “If this rule goes into play, then EPA would have control of the economy. The administrator of EPA would be the most powerful person in the country.”
    Christy Hemken is assistant editor of the Wyoming Livestock Roundup and can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. .
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Farm Bill, national meeting and economics reviewed at WyFB meeting

Cheyenne – “Offices will be closed and the farm programs as we have known them in recent history will be much different than they are now,” said Wyoming Farm Bureau Vice President Jim Hefenieder at the organization’s legislative meeting Feb. 27 – 28, speaking of the 2012 Farm Bill.
    Hefenieder relayed remarks from U.S. Secretary of Agriculture Tom Vilsack’s presentation at the American Farm Bureau (AFB) annual meeting, held this year in Hawaii.
    “As the Farm Bill moves ahead, we will find out what these programs will look like,” continued Hefenieder. “Secretary Vilsack also talked about deep cuts that will be occurring in the Department of Ag. I think most of us hope there will be a lot of spending cuts as a whole.”
Policy emphasizes insurance over direct payments
    Hefenieder also mentioned that three Wyoming members served among the 350 delegates charged with setting Farm Bureau’s policy for the next year, and one of AFB’s Farm Bill policies emphasizes insurance, rather than the direct counter-cyclical payments the crop industry has seen over the past few years.
    “Those payments were not sustainable if we’re to make any headway in the federal government’s problems,” he added. “Risk management will be more important in the future for producers.”
Wyoming resolutions
    On behalf of Wyoming’s members, Hefenieder also mentioned that the state submitted several resolutions dealing with eminent domain, sugar policy and wild horse issues, noting that one resolution related to sugar was particularly complicated.
    “I think we were able to see our way through that and hopefully we’ve got policies put together in the way that we need them to be as we move forward,” Hefenieder noted.
Behind the scenes
    Wyoming Farm Bureau’s Executive Vice President Ken Hamilton added, “We try to address the issues while you are free to take part in the other aspects of the business. We do rely on your time and energy to get things done.”
    “It’s all about talking to people,” Hamilton commented. “We, as Farm Bureau members, can try to mitigate potential threats by being active in our country and at the state level.”
Looking into the economic future
    Other national issues of importance to Farm Bureau included the economy.
    “We are at an exceptional period of time with net farm income, and that is fun,” said Hefenieder. “We also have indications that the U.S. economy is improving a little bit.”
    He explained that two groups of economists have focused on different parts of the world for indications of the economic future. While one group cautions that activity in China is critical, the other argues that what happens in the European Union will be more important.
    “Another warning the economists have given us is that the Bush tax cuts were extended, but by only another year or so,” added Hefenieder. “We will see those revert back, and that will be a huge tax increase. That is something we need to be aware of.”
Speaking with the
Governor
    President Perry Livingston, Southeast District Director Kevin Baars and Director of Public and Governmental Affairs Brett Moline also represented Wyoming Farm Bureau at a formal dinner at the Governor’s mansion.
    “We were pleased to find that the Governor and First Lady were warm and gracious, and it was a good opportunity to interact with Governor Mead,” Hefenieder reported. “He has emphasized the importance of agriculture in the state of Wyoming, and that is unique from recent administrations.”
     Mead also emphasized that, to govern Wyoming, he needs to have contact and a strong interaction with citizens of the state.
    “We have an opportunity to make the Governor aware of our concerns,” said Hefenieder. “I find that encouraging.”
    Saige Albert is editor of the Wyoming Livestock Roundup and can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. .s
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Code of the West, Film highlights Wyoming’s best

Laramie — Under the sponsorship of State Representative Pete Illoway (R-Cheyenne), Wyoming may soon have an official Code of Ethics, specifically the “Code of the West.”
If met with approval at the upcoming session of the Wyoming Legislature, the Code will join the list of other items symbolic of Wyoming and noted in state statute — Indian paintbrush, the cottonwood tree and the meadowlark bird. Illoway agreed to carry legislation in support of the Code during a Jan. 22, 2010 gathering where a documentary film, “Code of the West,” premiered. Jim Havey directed the film with the guidance of author, speaker and Code of the West advocate Jim Owen who served as the film’s producer.
Owen is the founder and “Chief Inspiration Officer” of the Center for Cowboy Ethics and Leadership and the author of two books, “Cowboy Ethics: What Wall Street Can Learn from the Code of the West,” and “Cowboy Values: Recapturing What America Once Stood For.” Owen, who was in attendance and spoke at the Jan. 22 event, said he chose Wyoming for the Code of the West film because it’s an area where Cowboy Ethics are alive and well.
“His vision about the power of the Wyoming story,” said University of Wyoming School of Business Dean Brent Hathaway of Owen, “is why we’re here today.”
Wyoming Business Council CEO Bob Jensen said his agency welcomed the opportunity to join the effort to highlight Owen’s work and Wyoming businesses operating by the Code of the West. “The Business Council knows firsthand that the way business is done in Wyoming, unfortunately, doesn’t exist as much as it used to in the rest of America,” said Jensen. “We also know that many businesses outside of Wyoming are looking for place where they can do business like we do in Wyoming, by the Code of the West.”
Several individuals familiar to most Wyomingites appear throughout the film. Among them is the Shepperson family of Midwest. Four generations of the Shepperson family work together on their central Wyoming ranch. Frank Shepperson is president of the Wyoming Stock Growers Association and his daughter Lisa Shepperson is a rancher and a Wyoming State Representative.
“Is the Code of the West for real or is it something made up? Is it still alive?” said Owen of the questions he’s asked nearly every time he speaks to a group. “In my heart I think the last great place for the Code of the West is Wyoming.”
“Wyoming is different and special,” said Jim Havey, the film’s director. “I think that those of you who live here know that. This state is a unique entity in the country and in the minds and hearts of the people who live here.”
“This is one of the most satisfying things I’ve done,” said Owen of work on the documentary.
Wyoming’s business and education communities embraced Owen and Havey’s work to feature the state as a place where the Code of the West remains alive and well in everyday dealings. Among the films’ supporters was the University of Wyoming College of Business under the leadership of Hathaway. The college, which is home to the Bill Daniels Distinguished Professor of Business Ethics Richard McGinity, will oversee future distribution of the film.
“Clearly, our partnership with the Daniels Fund was the beginning,” said Hathaway during Friday night’s premier. “We had a dream and the dream was simple; to build a campus-wide initiative that would then become a statewide movement. That’s being reinforced for me personally here today.”
“I would love to see the country discover this thing,” said Owen. “I would love to see whatever profit is made, that we as a group reinvest it in the schools.”
The University of Wyoming College of Business has posted a link at http://business.uwyo.edu/dean/ for those individuals who would like to receive additional information regarding the film. Copies of the documentary aren’t yet available, but those who fill out the form will receive additional information as it’s released.
Information regarding Jim Owen and his work can be found online at www.cowboyethics.org. Freelance writer and Wyoming FFA Foundation Executive Director Jennifer Womack can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. or 307-351-0730.

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House Ag Committee cautions about cuts in Farm Bill recommendations

On March 7 the House Agriculture Committee sent a letter to House Budget Committee Chairman Paul Ryan (R-Wisconsin) outlining the committee’s budget recommendations for the agencies and programs under its jurisdiction for fiscal year 2013.
    Ag Committee Chairman Frank Lucas (R-Oklahoma) and Ranking Member Collin Peterson (D-Minnesota) signed the bipartisan document, which acknowledges the need for deficit reduction while warning of excessive cuts to vital farm programs.
    “The Committee on Agriculture is dedicated to ensuring the federal government continues to promote policies and risk management tools that will keep American agriculture and rural communities strong and our citizens healthy and safe,” wrote the Congressmen.
    The committee’s primary focus this year will be reauthorization of the Farm Bill, which expires Sept. 30. Last fall the committee proposed $23 billion in Farm Bill savings, including $15 billion from commodity programs, $6 billion from conservation programs and $4 billion from nutrition.
    “Expiring unfunded livestock disaster programs would have been extended but fully paid for in recognition of the extreme drought conditions facing many livestock producers around the country,” the authors wrote.
    Some key points from the letter include:
    Crop insurance, which they say has become a “cornerstone of risk management in agriculture for a great many producers.”
    “One area of consensus that seems to be forming is to simplify and improve conservation programs,” they wrote, saying the committee wants to streamline programs designed to help producers avoid regulation or come into compliance.
    The Supplemental Nutrition Assistance Program (SNAP), formerly known as Food Stamps, is the largest program under the committee’s jurisdiction, and SNAP spending has tripled in the last 10 years, to an annual $700 billion today.
    In contrast to many other mandatory funding policies, spending on farm policy has declined significantly.
    “Another way to reduce the deficit is to grow the economy,” says the committee. “Regulations appear to be promulgated in spite of potential negative real-world economic consequences that could undermine U.S. producers’ ability to produce the world’s safest, most abundant and most affordable food and fiber supply.”
    A view that the strong agricultural economy justifies cutting agricultural programs even further ignores lessons from history, says the committee.
    “The ag economy is highly cyclical, and having sound farm policy in place is vital not just for producers but for the entire national economy,” they wrote.
    During some of the worst economic times in the last 50 years, agriculture has served as a catalyst for economic growth, says the letter. Last year, U.S. farmers and ranchers produced $410 billion on goods and spent $227 billion to purchase inputs. They made $65 billion in rent payments, paid $24 billion in wages and spent $15 billion on interest and financing.
    “While agriculture would be the 25th largest economy based on the value of good purchased alone if it were its own country, the farm safety net now constitutes less than one quarter of one percent of the federal budget,” wrote the committee.
    “Recognizing the dire fiscal situation the country is in, we developed a bipartisan farm bill proposal last fall that would have contributed substantially to deficient reduction…That process has given the committee the information needed to write a farm bill that is more efficient and streamlined and that consolidates duplicative policies,” concludes the letter.
    Christy Martinez is managing editor of the Wyoming Livestock Roundup and can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it. .
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