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Policy
Each year at National Farmers Organization’s national convention, members present establish agricultural policy positions regarding issues relevant to their agricultural operations.
These positions, or resolutions, cover topics such as federal farm policy, transportation and international trade, conservation, land ownership, energy and rural utilities.
Members attending National Farmers’ convention and the Resolutions Committee review, discuss, modify and reconfirm the policy positions, and vote to present the resolutions to the full convention body. The full convention body then votes to set the resolutions that guide the organization’s political and industry activity for the next year.
National Farmers Organization Resolutions
In keeping with the Bylaws of the National Farmers Organization, these resolutions and statements of position constitute an ongoing expression of the will of the members, as reviewed and modified or reconfirmed in the most recent National Convention.
Preamble
The National Farmers Organization is committed to the collective bargaining concept authorized for farmers and ranchers by the Capper-Volstead Act of 1922. The American family farm or ranch is the most efficient food producing unit in the world.
The American family farm or ranch is a basic source of support for our social, religious and political traditions in the rural communities throughout our country. We call upon all farmers and ranchers to join in the advancement of our bargaining program as an honorable action in pursuit of an acceptable farm economy.
National Farmers Organization believes farmers should receive prices that are equal to 100 percent of parity.
The basic premise of parity pricing is the belief that the selling price of a product or produce should go up or down in the same amount as the prices of the inputs used in its production.
The following resolutions support policies that are interim steps toward that goal.
National Farmers Organization Recommendations in 2021
National Farmers Organization believes that Farm Legislation should provide an adequate safety net. As a result of tariffs, trade disruptions and adverse weather conditions, farm prices have remained at disastrous levels. We urge Congress to the following actions to improve farm prices.
1) We would urge that the United States Department of Agriculture (USDA) reestablish non-recourse loans as a price support instead of marketing loans, and that loan rates be set at $5.00 per bushel on corn, $7.50 per bushel on wheat, and $12.00 per bushel on soybeans. We recommend that these loans should be extended to 18 months.
2) For national security purposes, National Farmers Organization supports re-enactment of a farmer-owned grain reserve program with the following provisions: The reserve should be isolated from the market; it is the supply of last resort; and, reserves should be released only at 120 percent of the above proposed loan rates.
3) The methodology utilized by the USDA when preparing periodic Crop Reports should be revised to report accurately the actual bushels available to the market and/or feed use. Report sources should be transparent, and reports should not be published until the accuracy of such is verifiable.
4) We support efforts to reinstate mandatory Country of Origin Labeling (COOL). Mandatory COOL must be included in all trade agreements, including the United States-Mexico-Canada Agreement (USMCA), so U.S. producers can compete against the growing tide of undifferentiated products imported into their domestic market.
5) National Farmers Organization supports efforts by organizations to have U.S. trade regulations enforced to the intent of the U.S. Congress and to make sure that trade relief laws are implemented promptly when U.S. agriculture is threatened. The International Trade Commission, USDA, other appropriate agencies and Congress should take immediate action to protect U.S. agricultural producers from undue harm from dumping actions by other nations.
6) Reinstate the Grain Inspection Packers Stockyard Act (GIPSA) rules and mandatory funding. The Farmer Fair Practices Rule (known as the GIPSA Rule) would give individual farmers protection against damages caused by anticompetitive actions of buyers.
7) Eliminate packer ownership of livestock production operations, which would help restore competition to the livestock industry.
8) Stronger investigation by any U.S. government agency of possible violations of Anti-Trust Laws regarding agri-business and cooperatives’ mergers and consolidations.
9) Eliminate block voting on all matters relating to dairy activities covered under the Capper-Volstead Act, governmental referendums, Federal Milk Marketing Order votes and agricultural promotion plans to give producers an opportunity to vote individually. Each dairy producer with production affected by any referendum vote would have one vote, and all tabulations would be completed using the “one farmer-one vote” method. The volume produced by an individual producer would not be taken into account on any referendum vote count.
10) A USDA study shows a cost of production per cwt range of approximately $4.50 among dairy farms of all sizes, family-size dairies on the upper end and large dairies on the lower end of the scale. Therefore, we support a two-tier pricing system under one national Federal Milk Marketing Order with at least a $4.00 per cwt price adjustment for all farms up to 1 million pounds of monthly production. Dumping milk during times of National Food Insecurity is completely contrary to the principles of National Farmers. We favor and support programs intended to balance production and consumption. These programs would necessarily satisfy the following criteria: (1) That the needs of the nation’s food-deprived families be met; (2) That farm gate prices for producers meet the cost of production plus a reasonable profit; (3) That the share of the nation’s milk supply sourced from family farms be increased.
11) Strengthen the Conservation Reserve Program (CRP) with mandatory funding with new enrollment rates set at 90 percent of the county rental average
12) National Farmers Organization opposes any reductions to the Renewable Fuels Act (RFA), and opposes the granting of waivers at this present time.
13) National Farmers Organization supports working with the Food and Agriculture Climate Alliance (FACA). We believe that policies relating to climate change should be science-based and that voluntary options regarding incentives should be encouraged, including income incentives for agricultural producers which would then strengthen rural communities.
Additional National Farmers Organization Policies
Crop Insurance
National Farmers Organization supports current funding levels for the Crop Insurance Program. Because of its effectiveness in protecting farm incomes and its importance in securing operating loans, affordable crop insurance should remain an important part of agricultural policy.
We recognize that more and more organic producers are relying on crop insurance protection. We support the concept that premium rates be commensurate with the payments available for losses incurred.
Conservation Reserve Program
CRP should be operated in a manner that assures participation up to the maximum acreage allowed by law on highly erodible and other environmentally sensitive land. Early contract termination should be strongly discouraged with steep penalties. Sod-busting of native and/or established grassland should be ineligible for soil conservation programs and crop insurance participation for a period of five years.
National Farmers Organization supports the Conservation Stewardship Program (CSP) as an important component of the farm bill to receive sufficient and major funding to support stewardship and conservation farming practices on working farmland.
Dairy Policy
1) Eliminate end product pricing as a base price for milk.
2) Eliminate make allowances in the Federal Orders.
3) As a method of balancing supply with domestic usage, National Farmers Organization supports the current CWT export assistance program and urges its continuation in the future.
National Farmers supports family dairy farms because they enhance rural economies, preserve the environment, and assure food security. By “family dairy farm,” we mean dairy farms that meet these six criteria:
1) The farmer owns the business.
2) The farmer controls marketing of milk produced on the farm.
3) The farmer makes day-to-day management decisions.
4) The farmer resides on or near the farm.
5) The farmer is physically and substantially involved in day-to-day care of animals and field work
6) The farmer purchases supplies, inputs and services locally.
Grain
1) Supports the continuation and adequate funding of a low interest loan program by the USDA expressly for the purpose of construction of on-farm grain storage facilities.
2) Supports an effort to promote transparency and fair action in the grain and livestock markets by causing legislation to amend Section 8 of the Commodity Exchange Act, whereby the Commodity Futures Trading Commission (CFTC) would disclose the position of large traders, as defined by the CFTC, in futures markets.
3) Supports federal grain inspection and opposes privatization of such grain inspection.
4) Believes that the methodology used by the USDA to obtain Crop Reports should be revised to accurately report actual bushels available to the market or for feed use. Such reports should not be published until the accuracy of the report is verifiable.
Livestock
1) Labeling of all imported meats showing country of origin and entry date.
2) The removal of “Product of USA” labeling for imported pork and beef. Imported products should be labeled with country of origin next to the USDA inspection mark.
3) Mandatory price reporting of all livestock sales, boxed beef, pork and lamb.
4) Legislation and regulatory action to reimburse farmers and ranchers for livestock lost to non-domestic predators, especially in areas where such predators are deliberately introduced.
5) Legislation that would indemnify contract growers in the cases where a disease or natural disaster causes them the loss of income.
6) Opposes the importation of livestock and meat from any country which does not prohibit animal protein in animal feedstuffs and does not have, and enforce, an animal and feed inspection and testing system certified as equivalent to that of the United States.
7) Opposes the importation of livestock and meat from any country where Foot and Mouth Disease is still present.
Bargaining
National Farmers Organization continues to support the concept of Marketing Agencies in Common by legally organized cooperatives and farmer associations to increase their collective bargaining power on behalf of their farmer members.
International Trade
2) National Farmers Organization recommends eliminating the Trade Embargo with Cuba.
3) Whereas organic grain imports, proven to be fraudulently documented, have flooded the U.S. organic grain markets resulting in depressed prices to U.S. producers, and whereas organic imports have originated from countries where organic production does not exist as cited by USDA and the European Union, National Farmers Organization goes on record as requesting a full investigation by the respective Senate and House Agriculture committees of lax oversight as cited by the USDA’s Office of Inspector General (OIG) report of September 2017. We urge USDA to take the actions it agreed to in the OIG’s findings to protect U.S. farmers from potentially fraudulent imports.
4) Whereas many National Farmers producers of organic grain, dairy and livestock depend on the integrity of the organic products they produce for the prices they receive, National Farmers Organization goes on record as supporting USDA maintaining strict enforcement of organic standards as set out in the Organic Food Production Act including feed standards for livestock and poultry.
5) National Farmers Organization supports efforts by organizations, including Ranchers-Cattlemen Legal Action Foundation (R-CALF), to have U.S. trade regulations enforced to the intent of the U.S. Congress and to make sure that trade relief laws are implemented promptly when U.S. agriculture is threatened. The International Trade Commission, USDA, other appropriate agencies and Congress should take immediate action to protect U.S. agricultural producers from undue harm from dumping actions by other nations.
Infrastructure
National Farmers Organization urges U.S. Congress to require railroads to provide and maintain adequate and affordable transportation for the movement of agricultural commodities.
National Farmers Organization strongly urges the U.S. Congress to support full mandatory funding for the Army Corps of Engineers backlog of water infrastructure projects, with priority funding directed for much needed repairs to our dams, levees, and locks. We also ask for funding for current and future projects to ensure our water supply and flood control.
National Farmers Organization encourages the government to immediately embark on a program to rebuild the port system of the United States to meet today’s needs. We believe that this should be accomplished by using tax and investment incentives from private investors as well as public monies.
Farm producers’ interests are best served by truly competitive, balanced transportation networks, including efficient use of railroad, truck and barge systems.
National Farmers Organization calls for uniform maximum gross vehicle weights in all states. In addition to an 80,000 pound GVW maximum, a standard maximum length should be adopted for all states.
National Farmers Organization strongly objects to any attempt by Congress to grant eminent domain power to private firms for any purpose that would divert critical water from our farms, ranches and waterway navigation because:
1) Water supplies are essential for irrigation and livestock production.
2) National policy should balance the needs of all users of navigable rivers.
3) Power interests seek federal eminent domain powers to move coal through pipelines from mines in the West to utilities in the South and Southeast.
4) Proposed legislation would bar state legislatures and courts from protecting the water rights of farmers and ranchers and other traditional users.
National Farmers Organization opposes eminent domain power being utilized by any entity without adequate compensation for both landowners and tenants.
Taxation: Estate and Income
We recognize that several new laws were enacted in 2020 in response to the economic effect of the COVID 19 pandemic, and we commend Congress for their actions to attempt to support our economy. In particular we concur with the Payroll Protection Program (PPP) forgivable loan terms which now recognizes the unique circumstances of agriculture by allowing use of gross income rather than net to compute this loan amount, and we urge farmers to consider this program before its scheduled expiration on March 31, 2021. This law also confirmed that the forgiven loan will not be taxable income and all expenses paid with these funds will be deductible.
The National Farmers Organization continues its support of the increased estate tax exemption and in particular the step-up basis for inherited assets and the transferability of unused exemption to a surviving spouse. These provisions enhance the ability to transfer operational family farms between generations. We support making this exemption level, with its continuing cost of living annual adjustments, permanent.
The members of the National Farmers Organization also express their concern over the change to qualifying like-kind exchange (Section 1031) property which removed personal property from qualifying property definition. We also realize there are proposals to eliminate Section 1031 exchanges for real estate. The provisions of Section 1031 of the IRC are important to maintain the ownership of family farms as the need arises to exchange property used in the operation. The National Farmers Organization urges Congress to retain Section 1031 for agricultural real estate and to reinstate this section for personal property used in the farming activity.
We, as members of the National Farmers Organization, realize that the new Congress and administration will consider other changes to our current tax laws. We urge Congress to consider the unique effect of these on our family farming operations. We also urge Congress to avoid expiring provisions as were used with the TCJA act of December 2017. Our family farmers need a steadier tax law system where business plans may be based upon a predictable tax foundation.
The National Farmers Organization also continues to acknowledge the effect that changes in Federal tax law has on many states’ tax laws. We therefore continue to urge state legislators to study the effects of those changes and to enact changes necessary to avoid the unintended consequences of additional state tax burdens to the family farms in their states.
Energy
There must be a proper balance of energy sources. A mix of alternative fuels should include grain alcohol, biomass, solar, wind turbines and the tides to relieve our high dependency on imported petroleum products. We strongly support import fees on imported oil and biofuels, the income to be earmarked for development of alternative fuels in the United States.
National Farmers Organization opposes the exporting of domestic crude oil.
Food Labeling
1) Food labeling should:
a) Identify country of origin for all imported food products
b) List GMO ingredients
c) Restrict “milk” and “cream” label to those products which come from lactating mammals
d) Ensure that lab grown protein, and vegetable protein products, are not labeled as “meat”
2) Opposes any action by the USDA to change standards for food and feed products that would be detrimental to farmers, and supports raising the quality standards for all imports to the same high levels as American agriculture.
3) Supports the efforts of all its departments to develop the market for NON GMO products. We encourage our members to look for and purchase products bearing the label “Always Family Farms.”
4) Supports the Dairy Pride Act.
Food and Drug Administration Process
It is not reassuring to consumers to have people in charge at the FDA approve their own research. The revolving door policy from the corporate world to the FDA, and back to the same corporation whose product was just approved, must end.
Check-offs
1) Check-offs are authorized only by a referendum of producers affected before implementation of the check-off and that legislation on all check-off programs be changed to mandate a producer referendum to be held every five years or less on the continuation of the program.
2) Block voting be eliminated on all matters relating to activities covered under the Capper-Volstead Act, governmental referendums, Federal Milk Marketing Order votes and agricultural promotion plans to give producers an opportunity to vote individually.
3) Commodity check-off should be assessed only once, at the time product is sold for processing. Commodity check-off programs should provide for a simple refund arrangement.
4) Check-offs must apply equitably to the imported commodities.
Concentration Issues, Anti-Trust and Packers and Stockyards Act Enforcement
1) Requiring all large confinement entities to be bonded and financially responsible for any environmental damage and subsequent clean-up.
2) Enforcement of provisions and regulatory authority of USDA under the Packers and Stockyards Act should be extended for segments of the livestock industry, such as poultry, to be brought up to standards currently in the Act for beef, swine and sheep.
Conservation, Environment and Technology
A vote by the U.S. Federal Communications Commission (FCC) ended the classification of Internet Service Providers as “common carriers” thus exempting them from the requirement, as common carriers, to provide equal access to all consumers and all businesses.
National Farmers Organization believes this action has resulted in reduced access and/or lack of affordable access to rural farms, businesses and rural residents. This has had a negative effect on rural Americans due to prohibitive costs, thus reversing the prior “level playing field” of access to the Internet.
Therefore, the National Farmers Organization urges Congress to enact legislation to reverse the 2017 action of the FCC by reinstating ISPs as common carriers, thus reinstating Net Neutrality to encourage more broadband accessibility for rural America.
National Farmers Organization also advocates caution in the following areas, and
1) Opposes addition of large tracts to the national wilderness without due consideration of the interest of adjoining landowners who are dependent upon grazing rights.
2) Proposes that federal or state established wetlands that contain public drainage should be managed in such a way as to maintain the public drainage and protect the rights of landowners to public drainage.
3) Supports the elected Farm Service Agency (FSA) county committee system of administration and believes this is a proper local point at which all price support and conservation activities should be coordinated.
Land Ownership
1) State and Federal legislation prohibiting the investment of pension funds in farmland or livestock production.
2) Legislation designed to obtain comprehensive data on absentee, corporate and foreign ownership.
3) Members of the National Farmers Organization are deeply concerned that the tax code, coupled with the concentration of capital, are unfairly favorable to investors who are in a position to buy our farmland. National Farmers Organization favors the elimination of the Section 1031 tax exchange for non-farmers, but retention for active farmers.
4) Urges the states’ legislatures to grant counties local control in siting of animal confinement facilities.
5) Index exemption levels that reflect increases in asset values due to inflation.
6) Simplify the rules and requirements that must be met to be eligible for the full level of estate tax exemption.
7) Increase the annual limit on individual gifts to $25,000.
Food Quality and Consumer Issues
National Farmers Organization supports federal legislation requiring that all imported food be inspected and required to meet FDA and USDA consumer food standards.
National Farmers Organization recognizes the usage of pesticides, herbicides and food additives, but these products should not be utilized until proven safe and accurately labeled.
National Farmers Organization opposes the practice of putting industrial toxic waste in commercial fertilizers or in any other products which are intended to be applied to farm land, lawns, and/or gardens.
National Farmers Organization goes on record requesting that Congress retain the school lunch/meals program at a high nutritional level with additional funding, and increase locally-procured dairy products available for our armed forces.
Commodity Futures Trading
National Farmers Organization along with the Organic Farmers Agency for Relationship Marketing is opposed to attempts to allow commodity futures trading in organic commodities, especially due to lack of regulation. Futures trading would expose the organic markets and producers to the potential for price volatility, speculation and manipulation.
The frequency and volume of electronic trading need to be investigated and possibly regulated.
Credit
Rural America and Communities
2) National Farmers Organization encourages farmers, rural residents and businesses to support the Institute for Rural America, created to bring attention to the mutual importance and interdependence of farmers, rural residents, businesses, schools, churches and communities.
3) National Farmers Organization supports annual Rural Utility Service (RUS, formerly REA) electric and telephone loan levels for both the new insured and guaranteed loan programs that adequately meet the capital needs of rural electric and telephone systems in order to insure dependable electric and telephone service in rural areas at reasonable cost.
4) National Farmers Organization supports federal financing for research, development and expansion of broadband communication technology over electric transmission lines as well as any other realistic technology for broadband services to rural areas.
5) National Farmers Organization also reaffirms its support for supplemental financing through the rural electrics’ self-help lending institutions, the National Rural Utilities Cooperative Finance Corporation and the Rural Telephone Bank.
6) National Farmers Organization supports limiting the role of the Federal Government and keeping control of the electrical power generation and distribution and the process of deregulation in the hands of the states.
Public Relations and Political Activity
A hand of cooperation is extended to Dairy Cooperatives, the National Farmers Union, the American Farm Bureau Federation, the Grange, the American Agriculture Movement, National Milk Producers Federation (NMPF), National Family Farm Coalition (NFFC), Ranchers- Cattlemen Action Legal Fund (R-CALF), Organization for Competitive Markets (OCM), Green Ribbon Campaign and other farm producer organizations when their goals and proposals are compatible with ours.
National Farmers Organization leaders at the state and Local Membership Unit (LMU) levels are urged to establish specific programs for the members to exchange views periodically with members of Congress on issues of vital importance to the membership of this organization as required in the By-Laws “to work for the election of candidates regardless of party affiliation” (National Farmers Organization By-Laws Art. II Section 3) and “the state organization may assist LMUs…the viewpoints of candidates running for political offices may be distributed to the membership in order that they may make an intelligent decision” (National Farmers Organization By-Laws Art. V, Section 3A (2)).
Miscellaneous
National Farmers Organization is opposed to deregulation of natural gas prices.
National Farmers Organization supports the principle of various Sunshine Laws and urges a periodic review of the semi-autonomous regulatory agencies and their rulings.
National Farmers Organization resolves to support the Federal legalization of hemp cultivation for the production of oil, fiber, and grain. National Farmers Organization further resolves to support the efforts of the FDA to research medicinal uses of cannabidiol (CBD) oil.
Appreciation
National Farmers Organization members greatly appreciate the patience and resilience demonstrated by our members and staff as we moved Convention 2021 to a virtual format during the COVID pandemic. We appreciate the efforts made by news media who gave accurate and full accounts of our activities, deliberations and discussions.
The members of the National Farmers Organization in session virtually from Ames, Iowa, do hereby commend, express our appreciation and say thank you to the officers of our organization, to the National Board, and to all personnel of our Organization who have worked so diligently to make the National Farmers Organization what it is today and for making this convention such an outstanding event.
National Farmers Organization
800.247.2110
PO Box 2508
Ames, IA 50010-2508
Our Story
At National Farmers, we represent thousands of American producers in the agricultural marketplace. We’re honored to serve our members, for more than six decades, with our launch in 1955.
13 Ways to Market with National Farmers
We focus on providing market access and risk management services to dairy, grain and livestock farmers. America’s independent producers want to succeed and deserve it. To help you accomplish that, National Farmers offers 13 distinct farm marketing and risk management programs. And we’ve focused in this area since the vision for marketing programs was born in the 1970s.
Cash, forward contracts, futures options — all these avenues offer opportunities, and National Farmers professionals offer decades of experience implementing them for today’s quality-driven, revenue-minded farmer. In all of this, we negotiate with buyers for better prices and favorable sales terms for the commodities of members and farmers we represent.
Farm Profit Insights
As we help producers make marketing decisions, it’s about your profit. As field representatives discuss delivery plans for cattle and crops to buyers, it’s about what works best for our ag producer members. When National Farmers Crop Insurance agents provide coverage ideas, it’s about what works for a particular farm’s history and plans. As dairy staff visiting dairy farms, we talk with producers about ways to assure they’re earning the premiums that help them make more money, and we continually work to protect market access.
Locations Near and Far
National Farmers operates in the Northeast, Midwest, Plains and California. Offices in all of those areas equal local commitment. In the Midwest, we offer a network of livestock marketing centers to assist cattlemen on the local level, as well. And in today’s world, we help grain producers and cattlemen with marketing and risk management nationally. We’re just a text, email or call away. That’s a given.
The national headquarters was relocated to Ames, Iowa, from Corning, Iowa in 1989. The location is part of Iowa’s Golden Circle, which encompasses the Des Moines metropolitan and Ames areas, and is a major center for agriculture. Ames is home to Iowa State University, which boasts a respected agricultural college.
We care about agricultural policy, as well. We monitor federal legislation, and represent farm interests in Washington, D.C., with lawmakers and agencies, and are pleased to work with other agricultural organizations.
