S P E C I A L R E P O R T

‘Estate Tax’
Farmers, ranchers say the
estate tax needs to be re-
formed sooner rather than
later | 4

November 16, 2009 Vol. 88 No. 21 fbnews.org

‘Health Late harvest to fuel interest in year-end crop report

care Wet and cold weather over
reform’ much of the country in October
put a dent in corn and cotton
All eyes on the yields, but the Agriculture De-
Senate | 3 partment is still forecasting corn
yields will be the highest on rec-
ord and that total corn produc-
ing areas of the U.S., USDA’s De-
cember and January crop reports
could show some significant ad-
justments compared to November,
which is unusual. There is typi-
cally little change between the
November and January reports.
but quality and drying costs due
to the wet weather,” he added.
“Particularly in Illinois, there are
reports that yields are good, but
drying costs are up, which will
put a real crimp on farm income.”
USDA’s November crop report

‘Election’ tion will be the second-highest

Ag-backed bal-
lot measures
pass in Ohio,
Texas | 7
Classic Thanksgiving
dinner costs decline
for 2009
Menu items for a classic Thanksgiving
dinner including turkey, stuffing, cran-
berries, pumpkin pie and all the basic
trimmings dropped 4 percent in price
this year, according to the American
Farm Bureau Federation’s 24th annual
Thanksgiving meal price survey.
ever recorded.
USDA released its November
crop report on Nov. 10, and econ-
omists with the American Farm
Bureau Federation said estimates
were generally in line with what
analysts expected. Because of de-
layed harvest over much of the
corn, cotton and soybean produc-
Partisan vote may hamper climate bill
“Because of late harvest, I
would expect to see another drop
in corn production in the Janu-
ary report,” said Terry Francl,
AFBF senior economist. “USDA’s
January crop report will be
watched a lot closer than normal
because of the late harvest.”
“The real concern over much of
the country for corn is not yields,
showed a 1 percent drop in corn
production and a 2 percent jump
in soybean production compared
to the October forecast. The big-
gest change was in cotton pro-
duction, which dropped 4 per-
cent from October’s estimate.
Megan Provost, AFBF southern
Crop Continued on Page 6

Continued
on Page 8

Randall Dasher, president of the Suwanee County, Fla., Farm Bureau, was one of hundreds of Florida Farm Bureau members who
joined in the “Don’t CAP Our Future” campaign by signing farm caps at their annual meeting in late October. The caps will be sent to
members of Florida’s congressional delegation along with a message asking them to oppose cap-and-trade climate legislation that
would hike farmers’ and ranchers’ production costs and could drive up food prices.

Climate legislation advanced
with the Nov. 5 passage of the
bill by the Senate Environment
and Public Works Committee.
However, the way it was done
could poison the well of support
by moderates on both sides of
the aisle that Democratic lead-
ers will need to tap in order to
pass the bill in the full Senate.
Republicans on the committee
boycotted committee meetings
n e w s p a p e r
mittee members. No amendments
can be considered under this
procedure, which Republicans
dubbed the “nuclear option.”
The committee’s ranking mi-
nority member, Sen. James In-
hofe (R-Okla.), said that Boxer’s
move would not help the bill in
the long run.
“Her action signals the death
knell for the Kerry-Boxer bill,” he
warned. Inhofe said Boxer had
er, and with Congress more fo-
cused on getting the health care
bill passed, time could run out
for the climate bill. Next year,
members of Congress will be-
come more interested in politics
than policy. Few moderate Demo-
crats will be willing to support
a bill that could endanger their
chances of getting reelected in
next November’s tough mid-term
elections. That would push the

as they demanded an economic
analysis. They did not participate
in the vote on S. 1733.
Committee Chair Barbara Box-
er (D-Calif.), who is also a spon-
sor of the bill along with Sen.
John Kerry (D-Mass.), sidestepped
the boycott by using the unusual
procedure of passing the bill by a
majority vote of Democratic com-
ignored entreaties from ranking
members of other committees
with jurisdiction over the bill as
well as leading moderates in the
Senate to work on a compromise.
The vote to report the bill out
of the committee was 10-1, with
Sen. Max Baucus (D-Mont.) the
lone dissenter.
As the end of 2009 draws near-
climate debate off until as late
as 2011.
“The climate bill’s chances are
looking worse by the day,” said
Mark Maslyn, American Farm Bu-
reau Federation public policy ex-
ecutive director. “There is no con-
sensus on the bill in the Senate,
Climate Continued on Page 6

Viewpoint 2|
America watches an explosion of trade agreements
By David Salmonsen
As support for an active in-
ternational trade agenda and
the opportunities of globaliza-
tion recede in the United
States, other nations are steadi-
ly expanding their trade ties.
The Asia-Pacific region is
where the action is today. Aus-
tralia is working toward an
agreement with China. New
Zealand and Australia are en-
gaged in talks with a group
of Southeast Asian nations.
Malaysia and New Zealand
have concluded an agreement.
There are currently 64 ongo-
ing trade negotiations in the
East Asian region worth bil-
lions of dollars in new trade re-
Abundant food—it takes
all of agriculture
By Lynne Finnerty
There’s a lot of excitement
these days about buying food
from local farmers. It is a win-
win-win. Consumers get fresh
produce and maybe even cheese,
eggs and meat. Farmers and
ranchers make more money by
selling directly to consumers.
Supporting those farmers also
helps support the local economy.
But when was the last time you
saw a sack of flour, sugar or corn-
meal at your farmers’ market?
We can’t buy everything we want
to eat or cook with from within a
hundred miles or so—a goal that
some have established for them-
selves. It takes all kinds of farms
across the country to provide the
staples we depend on and expect
to see stacked aplenty in our gro-
cery store.
The Agriculture Department ad-
vises in its Dietary Guidelines that
we should eat a variety of foods.
Reality is that most of us eat from
a variety of food sources, too. Why
does it have to be all or nothing?
I grew up a country girl. We
didn’t have any money trees so we
planted fruit trees and a big vege-
table garden every summer to
stretch the food budget. My dad
was a child of the Great Depres-
sion and he planted a garden to
ensure that, like Scarlett O’Hara,
we would “never go hungry
again!” Sweet potatoes were one
of his favorites so we always had
a few rows of those along with
tomatoes, squash, bell peppers,
green beans, butter beans, field
peas, sweet corn, okra, cucumbers,
cabbage, “Irish” potatoes and
FBNews
Don Lipton, Director, Public Relations
Lynne Finnerty, Editor
Erin Anthony, Assistant Editor
Phyllis Brown, Assistant Editor
fbnews.org
lationships that work against the
economic interests of the U.S.
The European Union has just
completed a trade agreement with
South Korea while the U.S.-South
Korea Free Trade Agreement (FTA)
has been stalled in Congress for
two years. Japan is also holding
trade talks with the EU.
At the same time that these
growing economies are forging
new avenues for expansion, the
U.S. is stalled on moving negoti-
just about anything else my dad
planted to see what it would do.
Kids who didn’t like vegetables
were hard for me to understand.
Our fresh vegetables were so good,
I developed a taste for them as
soon as I was big enough to wan-
der out into the garden and eat
tomatoes off the vine like nature’s
candy.
I know the seductiveness of a
ripe, farm-fresh tomato. That’s
why, now that I’m a city girl, I’m
one of the first ones lined up at
the farmers’ market on a Saturday
morning. As delighted as I am
to support my local farmers and
buy locally grown peaches and
other treasures, I know I will need
to stop by the store to pick up
the essentials needed to turn the
peaches into a cobbler. And while
I’m there I might even buy some
of those reviled “processed foods”
we like to keep in the pantry, such
as breakfast cereal to have with
my farmers’ market berries.
Buying local is trendy and that’s
great, but we owe some respect
to the farm families who raise
the staples, as well. We should
all be thankful that somewhere
on the high plains and rolling
hills that may be thousands of
miles from our homes, a farmer is
working—probably late into the
evening—against the odds pre-
sented by uncooperative weather,
markets and governments—rais-
ing the grains, oilseeds, meats,
dairy products and fruits and
vegetables that round out our
abundant and diverse food supply.
It may take a village to raise a
child, but it takes a whole coun-
try to put a meal on the table.
November 16, 2009 Vol. 88
Published semimonthly, except monthly in August and December, by the
American Farm B ­ ureau Federation, 600 Maryland Ave., SW, Suite 1000W, Washington, DC 20024.
Phone: 202-406-3600. E-mail: fbnews@fb.org. Web site: http://www.fb.org.
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ated FTAs through Congress and
is insistent on renegotiating the
completed FTAs with Colombia,
Panama and South Korea, further
holding back opportunities for
economic growth. The “jobless
recovery” in the U.S. will only be
lengthened by the administra-
tion’s and congressional leader-
ship’s lack of political commit-
ment to trade growth.
Our major competitors in world
trade—the European Union, Can-
Pesticide case merits
Supreme Court’s attention
By John Hart
Not every legal dispute merits
the attention of the U.S. Supreme
Court. Only the most serious and
far-reaching issues tend to make
it to the highest court in the
land.
A case that should be consid-
ered is titled “National Cotton
Council v. the U.S. Environmental
Protection Agency.” The American
Farm Bureau Federation filed a
petition with the U.S. Supreme
Court on Nov. 2 seeking a review
of the 6th U.S. Circuit Court of
Appeals’ ruling on that case. The
lower court’s decision forces pest-
icide users, such as farmers, to
secure an additional permit to
apply pesticides “on, over or near
water.”
At issue is a clear overstepping
of federal regulations by the low-
er court that will impact farmers,
ranchers and others who safely
use approved pesticides. If the
Supreme Court does not reverse
the lower court decision, produc-
tion agriculture will face an EPA
permitting requirement that
could strangle the use of crop
protection products.
The problem stems from a
January 2009 ruling by the 6th
U.S. Circuit Court of Appeals
that struck down a 2006 EPA
rule that said the Clean Water
Act did not regulate pesticide ap-
plications near water, as long as
the pesticide use complied with
EPA-approved label restrictions.
In practical terms, allowing
the lower court ruling to stand
would pose serious challenges
to farmers battling pests. An im-
No. 21
November 16, 2009
ada, China, Japan and Brazil—
are continuing to work for mar-
ket opening agreements that
will give their products duty-
free access, placing U.S. goods
and services at a competitive
disadvantage. Other nations are
facing the same economic chal-
lenges at this time as the U.S.
They are reacting in an aggres-
sive manner, counting on future
economic growth and recovery
to energize their economies.
The world is moving, while
America is only watching.
David Salmonsen is a senior di-
rector of congressional relations
at AFBF, where he deals with
global agricultural trade issues.
portant part of every farmer’s
job is to carefully inspect crops
for pests that rob yields and steal
profits. When a farmer finds
pests and determines the appli-
cation of pesticides is needed,
time is of the essence.
A lengthy permitting require-
ment for products that are al-
ready approved as long as label
restrictions are followed would
be disastrous. By the time fed-
eral regulators approve the ap-
plication, it may be too late
and the pest damage would be
done.
The case is complicated be-
cause EPA views “waters of the
United States” very broadly,
which means wetlands and even
some ditches are considered
“waters of the United States.”
This broad interpretation
means the misguided 6th Circuit
decision could impact hundreds
of thousands of farmers in all 50
states. This is an unnecessary
regulatory burden that farmers
and ranchers should not be re-
quired to bear.
The Supreme Court is expected
to decide by the end of the year
whether to hear the case. Relief
from costly and time-consum-
ing pesticide permitting for
America’s farmers and ranchers
now awaits the consideration
of nine justices. We must hope
wisdom and common sense
prevail, and the lower court
decision will be reversed.
John Hart is director of news ser-
vices for the American Farm Bu-
reau Federation.
(ISSN 0197-5617)
November 16, 2009
House passes health care bill, Senate now in hot seat
With House approval of the Af-
fordable Health Care for America
Act (H.R. 3962), the center of the
health care debate has shifted to
the Senate. However, Senate Ma-
jority Leader Harry Reid (D-Nev.)
has said he and his colleagues
would not be “bound by any
timelines” to push a health care
bill through.
The House bill, passed on Nov.
7 during a rare Saturday session,
would have huge repercussions
for businesses large and small.
The legislation would require
employers either to provide
health care coverage or pay an
8 percent excise tax on payroll.
Employers with payrolls at or un-
der $500,000 would be exempt.
For those with payrolls up to
$750,000, the tax would be
phased in. Small businesses with
25 or fewer employees and aver-
age wages of under $40,000
would receive tax credits of up
to half the cost of employee
health insurance for two years.
A few days before the House
voted on the measure, American
Farm Bureau Federation Presi-
dent Bob Stallman sent a letter to
lawmakers outlining farmers’
and ranchers’ concerns with the
proposal.
“While tax incentives in the
bill are designed to help small
employers cover health care ex-
penses, there are no allowances
for seasonal workers common to
our industry,” Stallman wrote.
“We are opposed to an employer
mandate and view an 8 percent
payroll tax imposed for non-
coverage as excessive and as bur-
densome as mandated coverage.”
Stallman said health insurance
costs are an ongoing and signif-
Farm Bureau petitions Supreme Court on pesticide case
The American Farm Bureau Fed-
eration earlier this month filed
a petition with the U.S. Supreme
Court, asking the high court to re-
view a lower court ruling that
would impose Clean Water Act
permitting requirements on the
application of pesticides on, over
or near water.
“Allowing the lower court rul-
ing to stand would pose serious
challenges to farmers battling
pests,” said AFBF President Bob
Stallman. “When pests strike, time
is of the essence, and any length
of time waiting for permit approv-
al for products that are already
approved would be disastrous.”
The problem stems from a Janu-
ary 2009 ruling by the 6th U.S. Cir-
cuit Court of Appeals, which
struck
down a
2006 Envi-
ronmental
Protection
fbnews.org
©iStockphoto.com/mstahlphoto
icant expense for agricultural em-
ployers, and health care reform
must not unduly burden farm
and ranch businesses with
costs they can’t afford.
Stallman explained that farm-
ers and ranchers believe “that
health care is primarily the re-
sponsibility of individuals, and
we are opposed to provisions in
the bill that mandate individual
coverage. Most farmers and
ranchers are self-employed and
would already cover themselves
if they could afford it. Passing a
mandate accompanied by the
threat of a tax for noncompli-
ance only makes the situation
worse for people unable to afford
coverage in the first place.”
Farm Bureau supports private,
market-based reforms and is op-
posed to the “public option,” as
government-operated health in-
surance is more commonly
known. A public option provi-
Agency rule that interpreted the
Clean Water Act did not regulate
most pesticide applications into,
over or near “waters of the United
States,” so long as the pesticide use
complied with EPA’s requirements
(such as EPA-approved label
restrictions).
The 6th Circuit found in Na-
tional Cotton Council v. EPA that
EPA must require National Pol-
lutant Discharge Elimination
System permits for pesticide ap-
plication in water or near waters
where pesticide falls into the wa-
ter. In August, the court denied
AFBF’s request for a rehearing.
If the decision is allowed to
stand, farmers and others who
use pesticides, such as mosquito
abatement districts, will be re-
quired to obtain permits in order
to apply pesticides on or near wa-
ter. Since EPA views “waters of
the United States” very broadly—
including wetlands and even
some ditches—thousands of
farmers could be affected.
Julie Anna Potts, AFBF general
counsel and secretary, pointed
out that farmers already
follow very strict EPA rules
governing the use of pesti-
cides. Many of these rules
are the result of the Federal Insec-
ticide, Fungicide and Rodenticide
Act, commonly known as FIFRA.
“FIFRA was enacted right
|3
sion is included in the House bill.
“We believe that the creation of
an exchange where individuals
and businesses can easily com-
pare and purchase privately of-
fered insurance will encourage
the competition necessary to
bring about cost savings,” Stall-
man wrote.
Pat Wolff, AFBF health care spe-
cialist, pointed out that while
lawmakers intend for the bill to
push down health care costs,
there’s no guarantee that will ac-
tually happen.
The status of health savings
accounts (HSAs), used more fre-
quently by rural residents than
their urban—and more likely
insured—counterparts, is another
worry for farmers and ranchers.
“As it stands now, investments
in HSAs will not necessarily qual-
ify for the health care-purchase
mandate,” Wolff said.
HSAs enable participants to pay
around the same time as the
Clean Water Act, and there is
nothing to suggest that Congress
intended for pesticide applica-
tions to be regulated under the
Clean Water Act,” Potts said.
“FIFRA is in place to do that.”
The agency estimates 365,000
pesticide applicators that per-
form about 5.6 million pesticide
applications annually would
be required to apply for Clean
Water Act permits if the 6th Cir-
cuit’s ruling stands. That number
overwhelms even a large bu-
reaucracy like EPA. The agency
USDA to purchase pork, fruit products
Agriculture Secretary Tom Vil-
sack on Nov. 11 announced that
USDA would purchase an addi-
tional $50 million of pork for use
in federal food nutrition assis-
tance programs. He also said the
department would buy $12.2 mil-
lion of tart cherries, $1.8 million
of dried plums and $18.6 million
of apples.
Vilsack said the purchases
would help producers “who are
currently struggling due to de-
pressed market conditions.” He
said the purchases would also
help Americans in need of nutri-
tion assistance.
Pork prices are low due to a
Capitol View
for current health expenses and
save for future medical and re-
tiree health expenses on a tax-
free basis. They are used in con-
junction with traditional “high-
deductible” health insurance
policies.
The two health care reform
proposals in the Senate with the
most traction have been pro-
duced by the Senate Finance
Committee and the Health, Edu-
cation, Labor and Pensions
(HELP) Committee. Reid said he
intends to combine the bills.
One of the biggest differences
between the two Senate bills is
the public option. HELP’s bill
would require a public option,
while the Finance Committee’s
version would create health care
insurance cooperatives, an ap-
proach that’s more palatable to
farmers and ranchers. Reid said
the bill he brings to the floor
will include a public option.
Another issue up in the air in
the Senate is that of employer
mandates. The HELP bill requires
employers with more than 25
workers to provide health care
coverage or pay a $750 annual
fee ($375 for part-time workers).
Seasonal and temporary workers
don’t count toward the thres-
hold. Under the Finance bill,
employers are not required to
provide health insurance but an
employer of more than 50 work-
ers that does not offer coverage
would have to pay a fee when an
employee claims a tax credit for
purchasing health insurance.
Reid and other Democratic
leaders said they are waiting for
Congressional Budget Office es-
timates before trying to move to-
ward a floor vote.
asked for and was granted a
two-year stay on the permit
requirements so that it would
have enough time to finalize the
permit required by the ruling.
The lengthy Clean Water Act
permit process involves public
notice and comment.
“If an individual permit is re-
quired, many farmers are going
to have to choose between losing
a crop or facing a lawsuit,” Potts
said.
The Supreme Court is expect-
ed to decide by the end of the
year whether to hear the case.
drop in exports, the poor U.S.
economy and the mislabeling
of the H1N1 flu virus as “swine
flu.”
The tart cherry, dried plum and
apple purchases will help ease
the stress caused by high inven-
tories and low prices, USDA said.
All of the food products will
be used in the school lunch and
breakfast programs and food dis-
tribution programs for the needy.
American Farm Bureau Feder-
ation President Bob Stallman in
September called on the admin-
istration to purchase as much as
$100 million worth of addition-
al pork products.
Time is running out on estate tax reform
In just a little over a year, the
estate taxes farm estates are ex-
pected to owe will go up about
300 percent compared to this
year, unless Congress enacts
permanent estate tax reforms.
USDA’s Economic Research
Service (ERS) has estimated
that, under current law, as
many as 10 percent of farm es-
tates would owe estate taxes in
2011, compared with about 1.5
percent of farm estates in 2009,
and the amount of taxes owed
by farm heirs would increase
to about $2.55 billion in 2011
from $683 million in 2009.
That’s because temporary es-
tate tax relief enacted in 2001
will expire at the end of 2010.
The Economic Growth and Tax-
payer Relief Reconciliation Act
of 2001 phased out estate taxes
over 10 years, with the tax eli-
minated altogether for one year
only, 2010. Because Congress
could only find enough fund-
ing offsets to enact temporary
tax relief, pre-2001 tax law,
with its lower estate tax exemp-
tions and higher tax rates, will
kick back in when the law ex-
pires at the end of next year.
The American Farm Bureau
Federation has endorsed a bill
that would make permanent
both a higher exemption level
and lower tax rate. The Estate
Tax Relief Act of 2009 (H.R.
3905), introduced in October
by Reps. Shelley Berkley (D-
Nev.), Kevin Brady (R-Texas),
Artur Davis (D-Ala.) and Devin
Nunes (R-Calif.), would phase
in a $5 million exemption,
with a top tax rate of 35 per-
cent, over the next 10 years.
President Obama’s budget
proposed freezing the estate tax
at this year’s $3.5 million ($7
million for a married couple)
exemption level and 45 percent
Estate Ta
rate. AFBF President Bob Stall-
man said that was a “non-starter”
for Farm Bureau, which supports
a $10 million exemption per
person. H.R. 3905 doesn’t go that
far, but Stallman said it “brings
us one step closer to Farm Bu-
reau’s goal of permanent repeal.”
“Estate taxes threaten family-
owned farms and ranches and
the livelihoods of families who
make their living in production
agriculture,” Stallman said in a
statement the day after H.R. 3905
was introduced. “Eighty percent
of farm and ranch assets are land
based. When estate taxes exceed
cash and other liquid assets on
hand, surviving family members
can be forced to sell land, build-
ings or equipment needed to
keep their businesses operating.
Sadly, it takes two and a half
years of farm returns for a mod-
erate-sized farm operation to pay
off the estate tax owed.”
The Berkley bill would increase
the estate tax exemption $150,000
per year until it reached $5 mil-
lion and decrease the estate tax
rate 1 percent each year until it
reached 35 percent in 2019. After
that, the tax would be indexed for
inflation.
Many farm households look
wealthy on paper because land
values have increased by an aver-
age of 14 percent per year since
2004, according to ERS. The agen-
cy says farm equity has more than
doubled since 2000, primarily due
to the increase in land values.
Land, however, is not a liquid
asset and is the most important
input needed to produce crops
and livestock. ERS says that the
rise in property values means that
farm estates are more likely than
the typical estate to owe federal
estate taxes.
There is action on estate taxes
on the Senate side, as well. Last
Estate Tax
The share of farm estates required to file a return and pay federal estate tax could rise sharply in 2011
f — Forecast based on 2007 data Source: USDA, ERS
spring, Sens. Blanche Lincoln (D- a good piece of legislation on
Ark.) and Jon Kyl (R-Ariz.) pro- the table and they need to get
posed an amendment to the Sen- to work on it. It would be a
ate budget resolution in support win for them and a win for
of an immediate $5 million ex- farm and ranch families.”
emption and 35 percent tax rate. H.R. 3905 also would extend
That amendment passed with 51 the current “stepped-up basis”
votes. Budget resolutions are rule, which also will expire at
merely blueprints of recom- the end of next year. Stepped-
mended spending levels, not law, up basis limits the amount of
so the Senate would have to pass property value appreciation
a separate bill to enact the estate that is subject to capital gains
tax changes. Lincoln and Kyl have taxes if the assets are sold. Be-
said they are committed to work- cause farm land typically is
ing for the 5/35 plan before 2010. held by one owner for several
“Many in Congress would rath- decades, setting the basis on
er see a higher estate tax exemp- the value of the estate on the
tion and lower tax rate made per- date of the owner’s death under
manent rather than letting it ex- stepped-up basis is an important
pire in 2010,” Pat Wolff, AFBF tax tax provision for farm heirs.
policy specialist, said. “If they are “This is something that ben-
going to achieve that goal, then efits the heirs, but it also can
they must take action soon.” be very beneficial to new and
If Congress was known for beginning farmers and ranch-
moving that fast, then the old ers,” Wolff explained, “because
joke about it taking “an act of if the heirs are off doing other
Congress” to do something things and don’t want to farm
wouldn’t be very funny. But the property, then they should
Wolff says the legislative process be able to sell it to someone
can move quickly when members who does. With stepped-up
are motivated. basis, there is less of a dis-
“Time is running out, and they incentive to sell the land to
know that,” she said. “We have new farmers and ranchers.”

Estate taxes have a lon

Estate taxes in the United 1916-1917 1976
States date back to Revolution-
The modern estate tax got its start with the Revenue Act of 1916, signed The Ta
ary War times and between
by President Woodrow Wilson, which also raised the income tax, to at clos
then and the Civil War, vari-
make up for a loss in tariff revenue as worldwide conflicts caused a ers, the
ous inheritance taxes were im-
drop in trade. The estate tax exemption was $50,000 (over $11 million farm e
posed temporarily to finance
in today’s dollars), and tax rates started at 1 percent and went up to 10 marke
wars and then they were
percent on estates worth more than $5 million (over $1 billion in to- for far
repealed after the wars
day’s dollars). The estate tax was increased in 1917 as the U.S. entered of the
were over. As the fol-
World War I, but this time, it wasn’t repealed after the war ended. estate’s
lowing history shows,
over 14
it didn’t take long
for that practice to
change, and prop-
erty owners have
faced rising estate
1920-1940 1981
taxes for much of Tax rates increased dramatically between 1920 and 1940 as a way to The Ec
the time since the prevent the concentration of wealth. The tax rate on the wealthiest Reagan
early 20th century. estates climbed to 77 percent by 1940, where it remained until 1976. with th
 November 16, 2009
ax
S P E C I A L R E P O R T

Young farmers & ranchers take tax message to D.C.

As members of Congress potentially turn
their attention to tax reform this fall, a group
of young farmers and ranchers from Montana
visited the nation’s capitol to let their delega-
tion know that reforming capital gains taxes
and, especially, the estate tax is critical to
helping the next generation of farmers get
started in food production.
They brought with them a 10-minute DVD,
hoping to send more of a message than a
short visit in a congressional office will allow.
The DVD tells the stories of four farm and
ranch families who say that estate taxes are
pen or I can go to Washington, D.C., and give
it my best effort to try to change it.”
This year might be the right time for Nelson
and others to try to change the estate tax.
Some Democrats in Congress would rather
make permanent reforms to the estate tax
this year than let it expire for just one year,
next year, as scheduled under current law.
Nelson and his wife, Jacquie, don’t have
children yet but they hope to one day raise a
family on the ranch.
He said that in their part of the country,
keeping land in agriculture also benefits wild-

PHoto by Rebecca Colnar, Montana FB

a big obstacle to keeping families farming.
Tucker Nelson is a fourth-generation beef
cattle producer from Livingston, Mont. He
says that reforming the estate tax would be
the best way to keep young agricultural pro-
ducers on the land.
“Our biggest obstacle is the estate tax,” he
said. “My grandparents passed away in 2001
and 2002, and we lost half of the place be-
cause we had to split it up to avoid the estate
tax. So already, with the transfer from my
grandparents to my parents, we’re half the
size we were, which has cut our production.
We’re to the point where we can only support
two families on this place. If that cut happens
again, I’m afraid we won’t be able to pass it
on to my kids’ generation.”
It’s an especially big problem in the Big
Sky country where Nelson’s family ranches.
A 2,000-acre ranch near them is on the mar-
ket for $38 million. No beginning farmer or
rancher can afford to buy it at that price. And
hardly anyone can afford to pay the estate tax-
es with a property value at that elevated level.
Livingston is surrounded by national parks
and scenic mountain ranges. The mountains
collect rainwater that makes the farmland pro-
ductive, but they also bring buyers from out of
state with deep pockets and more interest in
views and recreation than in food production.
“That’s the kind of hurdle we are trying to
climb to stay in productive agriculture,” he
explained. “For us, at those kinds of prices, it’s
obviously not about the money. It’s about a
love for the land, the stewardship we want to
continue to practice on the land, and it’s about
keeping our family roots there,” roots that
Nelson says go all the way back to when his
ancestors were original settlers on the place.
So he went to Washington to tell his story.
“I figured I can either sit back and let it hap-
life, because farmers and ranchers practice
good stewardship.
“We love to share our land with the wild-
life,” he said. “But the problem is when you
have a ranch that gets sold and subdivided,
that stewardship discontinues and it’s just
left to go wild. Some people think of that as
a good thing and it can be in some instances,
but you can’t take something that has been
managed for 100 years and then just let it go
wild, because what you see is the grass ma-
tures and then the wildlife tends to shy away
from that. Over years of not harvesting that
grass, it’s not as productive as it was to support
wildlife that we’re blessed with in Montana.”
Joining Nelson on the trip to Washington Tucker Nelson (left) farms with his dad, Roger (right),
was Jim Willis who runs a cow-calf operation in southwestern Montana on a farm that’s already half
and raises wheat in Buffalo, Mont., in the the size it used to be because of the estate tax. He wor-
central part of the state. Both Nelson and ries that if the farm gets split up again, it won’t be big
Willis think it’s great that Congress wants enough to support the next generation of Nelsons.
to take action sooner rather than later. Both
said time is of the essence in addressing the plan with a retiring producer. He is more in-
problem, because the current crop of farm- terested in reducing the capital gains tax bur-
ers and ranchers isn’t getting any younger. den so it’s easier for older farmers and ranch-
The average age of farmers and ranchers in ers to sell their land to a new generation of
the U.S. is 57. Many will retire within the producers. He would like to see an exemption
next decade or so. If something isn’t done be- from capital gains taxes when a retiring pro-
fore then, the chance to keep farms from be- ducer is willing to sell to a new producer.
ing split up and sold for development will Both young farmers said their members of
slip away. Congress were receptive to their message and
“I think that’s a problem that’s coming seemed to understand the problem. But they
down the line for all of us,” said Nelson. also say it’s tough to cut taxes when the na-
Willis echoed those thoughts. “I’d say this tion is already facing a budget deficit. Willis
is critically urgent,” he said. “If we wait until insists that reducing capital gains and estate
these producers are actually retiring, the prob- taxes would have a positive impact.
lem may be already past a tipping point where “When you equate all of the taxes gener-
the tax reform won’t mean much because a ated by the specific taxes we’re talking about,
big portion of the land has already been trans- it really doesn’t amount to much,” he said.
ferred to entities other than new producers.” “But in the long term, it is better for society,
Willis does not stand to inherit a farm or it is worth the money spent, to keep new
ranch. Instead, he is working out a transition people coming into the agricultural sector.”

ng, interesting history

6 1997-2004
ax Reform Act of 1976, signed by President Gerald Ford, was aimed
sing loopholes in the estate and gift taxes. For farmers and ranch-
e 1976 Act also put in place a special-use valuation that allowed
estates to be valued based on their actual use, rather than fair-
et value. The 1976 Act also established installment payment terms
rm heirs. Normally, estate taxes must be paid within nine months
owner’s death. Under the 1976 Act, if at least 35 percent of an
’s value is a farm or closely held business, estate taxes may be paid
4 years and 9 months, with interest due for only the first 5 years.
The Taxpayer Relief Act of 1997, signed by President Bill Clinton, brought
the exemption for a donated conservation easement. The 1997 Act also
provided a $675,000 deduction, on top of the $1 million unified estate
and gift tax exemption, for farmers and other small business owners.
However, the total allowable exemption was capped at $1.3 million. (The
basic exemption level rose above this cap (to $1.5 million) in 2004, negat-
ing the special farm exemption.

2009
1 The Economic Growth and Tax Relief Reconciliation Act of 2001, signed
conomic Recovery Tax Act of 1981, signed by President Ronald by President George W. Bush, phased out estate taxes over 10 years through
n at his California ranch, further reduced federal estate tax rates, progressively higher exemptions and lower tax rates. It culminated in
he top rate dropping from 70 percent to 50 percent. a $3.5 million exemption and a top tax rate of 45 percent this year.

Capitol View
Beginning farmers, ranchers to benefit from grant
The American Farm Bureau
Federation is partnering with
USDA’s National Agricultural
Library to create the National
Curriculum and Training
Clearinghouse for Beginning
Farmers and Ranchers. The
new information-sharing pro-
gram will help those who have
decided to pursue a career in
agriculture and will help sup-
port Farm Bureau’s commit-
ment to rural development.
The clearinghouse is a com-
ponent of the Beginning Farm-
er and Rancher Development
Program (BFRDP), a competi-
tive grant initiative that is part
of the 2008 farm bill. The
clearinghouse will be support-
ed by a five-year, $1.5 million
grant from USDA.
BFRDP was initially autho-
rized in the 2002 farm bill, but
it was not funded during Con-
gress’ yearly appropriations
process. The program was reau-
thorized in the 2008 farm bill
and has $75 million in man-
datory funding over the next
five years. One-quarter of
BFRDP’s funds are allocated for
projects serving limited re-
source and socially disadvan-
Partisan vote may hamper climate bill Crop report
Continued from page 1
and there are at least six other
committees that will get a turn at
debating it before it ever reaches
the Senate floor. Then you have
a lot of Republicans and moder-
ate Democrats with no reason to
believe that Democratic leaders
are going to hear their concerns
or reach across the aisle to ad-
dress them. As the mid-term elec-
tion approaches, it’s only going
to get harder for them to go on
record in support of something
that would harm our already
severely crippled economy.”
But Farm Bureau members who
oppose the climate bill’s cap-and-
trade regime aren’t taking any
chances. They are continuing to
barrage their senators’ offices with
signed farm caps bearing the mes-
sage, “Don’t CAP Our Future.”
Farmers and ranchers signing the
caps say that the higher fuel
prices and other energy-related
American Farm Bureau Federation President Bob Stallman (second from left) partici-
pated in a panel discussion on climate policy. He said the climate bills Congress is
considering would create an energy gap.
fbnews.org
6|
taged farmers and ranchers, in-
cluding minority, immigrant and
women farmers and ranchers, as
well as farmworkers.
“This is a great opportunity for
Farm Bureau to provide informa-
tion to beginning farmers on
how to start and stay in farming
and ranching,” said AFBF Presi-
dent Bob Stallman. “We are pro-
viding in-kind support to the Na-
tional Ag Library with outreach,
publicity, educational seminars
and our annual conference where
other project grants will be
highlighted.”
The clearinghouse will use the
grant money to develop a Web
site and databases to serve begin-
ning farmers and ranchers, with
particular focus on those cate-
gorized as underserved. The
clearinghouse will provide edu-
cation, training, outreach and
mentoring materials to begin-
ning farmers and ranchers across
the United States. AFBF will serve
as a conduit for distribution of
the information.
“Our goal at Farm Bureau is to
help farmers be successful and
to move agriculture forward,”
said Dan Durheim, coordinator
of AFBF’s Young Farmers and
costs that will come from cap-
and-trade will make it difficult
for them to continue farming.
“As a small businessman, I can-
not pass along my increased fuel
costs to my customers without
running the risk of losing them.
That means I would have to ab-
sorb any increased costs and have
it consume my bottom line,” said
Texas farmer and cattle producer
Richard Cortese at a Capitol Hill
news conference hosted by Sens.
Kit Bond (R-Mo.) and Kay Bailey
Hutchison (R-Texas) in late Octo-
ber. Bond and Hutchison released
a report that found that under
the House-passed climate bill
farmers and ranchers would be
hit with $550 million in higher
fuel costs in 2020 and $1.65 bil-
lion in 2050.
Florida Farm Bureau mem-
bers signed “Don’t CAP Our
Future” caps at their annual
meeting, Oct. 28-30. More than
November 16, 2009
Ranchers program. “The proj-
ects included in the clearing-
house are fascinating and diverse:
an agricultural entrepreneurial
program in Missouri, legal and
technical support for beginning
and immigrant farmers in Min-
nesota, effective business prac-
tices to Navajo farmers in Ari-
zona, business planning and sus-
©iStockphoto.com/snapphoto
tainable practices for women
in the Northeast, and absentee
forest landowner training in
Tennessee.”
Farm Bureau will host a begin-
ning farmer and rancher confer-
ence annually that will be held
in conjunction with the AFBF
Young Farmer and Rancher Con-
ference, beginning in Orlando,
Fla., in February 2011.
Among the other projects to
receive funding is California
FarmLink, which was awarded In addition, the Midwest Or-
$525,000 over three years to ganic and Sustainable Educa-
build on its decade of experience tion Service, based in Spring
facilitating farm transitions, pro- Valley, Wis., was awarded $151,
viding technical assistance, host- 515 over three years to produce
ing workshops, financing farm a book, workshops and a two-
operations and empowering day mini conference for begin-
farmers to build assets through ning farmers on farm financial
the California FarmLinks Indi- management so they can use
vidual Development Account basic tools and resources to as-
program. sess their financial situation.
Continued from page 1
200 caps were signed and most crops economist, said the drop
were signed by more than one in cotton production can be
person. Florida Farm Bureau in solely blamed on lower yields,
December will deliver the caps, particularly in the Delta region
along with additional ones of Mississippi, Arkansas and
signed at Farm Bureau events Missouri where fields have been
held throughout December. pelted with rain over much of
Meanwhile, in Washington, the normal October harvest sea-
AFBF President Bob Stallman son. Texas cotton producers also
has continued to make the case expect lower yields due to the
that both the House and Sen- impact of cool, wet weather on
ate climate bills would create a late-planted crop.
an energy deficit and cost farm- “This is the lowest cotton yield
ers and ranchers too much in in five years, but it is still a de-
higher production costs. At a cent yield when compared to
climate policy debate hosted by historical records,” Provost said.
The Washington Times on Nov. Cotton production for 2009
4, Stallman said the climate leg- is forecast at 12.5 million 480-
islation does nothing to plug the pound bales, down 2 per-
gap in the energy supply that cent from last year.
it would create. He also said it Soybean production nation-
could result in more greenhouse wide is forecast at a record-
gas emissions, not less, if U.S. ag- high 3.32 billion bushels, up
ricultural production is replaced 12 percent from last year.
by production in developing Based on Nov. 1 conditions,
countries that would not be sub- yields are expected to average
ject to carbon and methane caps. 43.3 bushels per acre, up 0.9
“U.S. agriculture is highly ef- of a bushel from last month
ficient,” he said. “By downsizing and up 3.6 bushels from 2008.
U.S. agriculture, cap-and-trade Compared with last month,
legislation would send more of yields are forecast higher or
our food production to countries unchanged in all states ex-
that are not as efficient and emit cept Arkansas, Georgia, Iowa,
more greenhouses gases for the Mississippi and Texas. The
same amount of production.” largest decrease in yield from
He also noted that not all pro- the October forecast is ex-
ducers would be able to partici- pected in Mississippi, again
pate in the agricultural offsets reflecting the impact of Oc-
program that was included in tober’s excessive rainfall.
the House bill. The Boxer-Kerry This year’s total corn produc-
bill does not include an agri- tion is forecast at 12.9 billion
cultural offsets provision. bushels, 7 percent higher than
Sen. Debbie Stabenow (D- in 2008. Based on Nov. 1 con-
Mich.) recently unveiled a pro- ditions, yields are expected
posal for an agricultural offsets to average 162.9 bushels per
program to be overseen by USDA. acre, down 1.3 bushels from
That provision most likely will October’s estimate but 9 bush-
be combined with the Boxer- els above last year’s yields
Kerry bill during Senate Agricul- and still an all-time high.
ture Committee consideration.
November 16, 2009
Agriculture wins with ballot measures in Ohio, Texas
The efforts of farmers and
ranchers in Ohio and Texas paid
off earlier this month with pass-
age of ballot amendments con-
sidered vital to the success of ag-
riculture in both states. The bal-
lot measure in Ohio related to
livestock care, while voters in
Texas took up the issue of prop-
erty rights.
“It’s clear that when voters
have an opportunity to endorse
straight-forward ballot language
that supports traditional val-
ues and hard working farm and
ranch families, they will do so
overwhelmingly,” said Ameri-
can Farm Bureau President Bob
Stallman, congratulating the
Ohio and Texas Farm Bureaus
on their leadership in ensuring
voter support for the ballot
measures.
The Ohio Farm Bureau-sup-
ported ballot initiative provides
for the creation of a committee
to oversee decisions on how farm
animals are treated. The 13-mem-
ber Ohio Livestock Care Stan-
dards Board will comprise a
broad base of Ohioans knowl-
edgeable in livestock and poultry
care, including family farmers,
veterinarians, a food safety ex-
pert, a representative of a local
humane society, representatives
from statewide farm organiza-
tions, the dean of an Ohio ag-
State Focus
California Farm Bureau sees
progress in water legislation
A series of water-related bills passed
by the California Legislature earlier this
month represent real progress toward
meeting the long-term water chal-
lenges facing the state’s farmers and
ranchers, according to the California
Farm Bureau. “Severe water shortages
have forced family farmers in parts
of California to spend many sleepless
nights, trying to figure out how to save
their farms and continue to produce
food for our people,” said Doug Mose-
bar, CFB president. “The Legislature has
moved California toward solutions
needed to restore reliable water sup-
plies for everyone.” Emphasizing that
there is still much to be done, Mosebar
said that new water storage both above
ground and underground must be
added and the ability to move water
has to be improved. In addition, he
called for the protection of water rights
and the enhancement of the delta
ecosystem. “The bills move us in that
direction,” Mosebar said. “We’ll continue
to work with the administration and
state agencies as they implement the
bills, to make certain that they recog-
nize how important it is to grow food
and strengthen rural economies in
California.”
fbnews.org
riculture college and members
representing Ohio consumers.
The ballot initiative, known as
Issue 2, passed with about 64 per-
cent of the vote.
The board will set standards
for livestock and poultry care
that take into account food safe-
ty, local availability and afford-
ability of food and farm manage-
ment practices for animal well-
being.
“Voters made a solid state-
ment that acknowledged the role
farmers play in caring for farm
animals and providing a safe
and quality food supply in the
Buckeye State,” Stallman said.
“Clearly, Ohio has blazed a bold
new trail for other states to fol-
low on the issue of livestock care
and well-being. It is clear that
voters in that state know farmers
and ranchers share their values
regarding the care of farm
animals.”
The board is intended to head
off efforts by activist groups that
want to impose their agendas on
the state’s livestock and poultry
producers.
Wayne Pacelle, president and
CEO of the Humane Society of
the United States, implied that
his group may seek to counter
the new livestock board with
its own ballot initiative in Ohio
elections next year in the form
New York FB: DOT truck ban
will cost farmers millions
New York Farm Bureau is protesting a
proposal by the state Department of
Transportation to ban truck traffic on
New York’s rural roads, which will add
millions in transportation costs to
the state’s already struggling farm in-
dustry. “It makes no sense at all to
propose regulations that make New
York more hostile to business than it
already is,” said Dean Norton, NYFB
president. “Our farm families are facing
the worst economic climate for agri-
culture in three decades as a result of
fallout from the global fiscal crisis,
and the state transportation depart-
ment’s response is to make it even
costlier to do business here.” The de-
partment is calling for all trucks 45
feet or longer to first use major inter-
states before traveling on rural roads,
where most farms are located. This will
force hundreds of farmers to reroute
produce and milk deliveries, making
trucks travel countless miles out of
their way to deliver local agricultural
products to consumers in New York
City and beyond. NYFB warned that
the added transportation costs would
result in higher food prices for New
York-grown farm products for the state’s
consumers.
|7
of a constitutional amendment
that would contain language
similar to California’s Proposi-
tion 2. “We haven’t made a final
decision, but it’s very likely,” Pa-
celle said.
In Texas, the Farm Bureau-
backed Proposition 11, which
bars the government from tak-
ing a person’s land to benefit an-
other’s economic gain or boost
tax revenue, passed with sup-
port from about 81 percent of
voters.
The ballot measure is the state’s
response to the U.S. Supreme
Court’s ruling in 2005 in Kelo v.
New London, which authorized
eminent domain for economic
development, but left the door
open for states to make their own
law preventing these kinds of
takings.
Along with amending the state
constitution to limit the taking
of private property for eminent
domain, Proposition 11 requires
new entities seeking condemn-
ing power in Texas to first obtain
approval by at least two-thirds
of the Texas Legislature. In addi-
tion, the ballot measure specifi-
cally prohibits the taking of pri-
vate property to give to another
private entity for the primary
purpose of economic develop-
ment or enhanced tax revenues.
It also limits the use and own-
Virginia FB invites consumers to
sample state’s holiday offerings
Virginia Farm Bureau will host its first
Save Our Food Holiday Festival on Dec.
12. Save Our Food is a VFB campaign
launched in 2008 to encourage con-
sumers to buy local and American
foods whenever possible and to rec-
ognize the wealth of safe, fresh, local-
ly grown products available through-
out the state. The festival will highlight
the array of local products available
to Virginia consumers. Visitors will be
able to taste, purchase and order
products and services from vendors.
There will be two “Iron Chef”-style
cooking shows featuring a celebrity
chef and Virginia chefs using regional
foods to create a meal, as well as a
holiday plant and décor show during
which festival goers can learn how to
create holiday arrangements using
items from their own yards. Four main
exhibit areas will showcase foods,
wines, microbrews, specialty food
companies and more from Northern
Virginia, Tidewater, Southwest Virginia
and Central Virginia. Among those
sponsoring the event are Anthem
Blue Cross and Blue Shield, the Chil-
dren’s Museum of Richmond and the
Virginia Department of Agriculture and
Consumer Services.
State FB Links
ership of property taken by emi-
nent domain to either the state,
the public at large or an entity
specifically given the power of
eminent domain. Proposition
11 will force condemning enti-
ties to address each individual
property involved in an urban
blight condemnation, rather
than simply rub out entire
neighborhoods.
“The ability to productively
use and manage private proper-
ty is vital to all facets of agricul-
ture, and clearly, Proposition 11
is an important citizen endorse-
ment of property rights in that
state and sets the stage for addi-
tional eminent domain reform
in the Lone Star State,” Stall-
man said.
Kenneth Dierschke, TFB presi-
dent, called passage of the amend-
ment an “important but incom-
plete victory” because Texas em-
inent domain laws still favor the
condemner.
“True reform will happen only
when additional protections are
added to eminent domain law
such as offers to landowners
that represent fair market value,
compensation to landowners
for lost access to their property
and the right of landowners to
repurchase land not used for con-
demning purposes,” Dierschke
said.
Newsmakers
Eric Thomason joined West
Virginia Farm Bureau as the new
assistant Mobile Ag Science
Education Lab coordinator. A
graduate of Emmanuel School of
Religion and West Virginia Uni-
versity, Thomason spent the past
eight years as a campus minister
at Ohio University.
Mississippi Farm Bureau named
Samantha Cawthorn public
policy director. Cawthorn served
as interim public policy direc-
tor since January and previously
served as governmental relations
coordinator. She graduated from
Mississippi State University with a
bachelor’s degree in political sci-
ence and communication.
Brad Mitchell is Massachusetts
Farm Bureau’s new director of
governmental relations. He
most recently served as director
of public affairs at Monsanto Co.
in St. Louis, Mo. Mitchell holds a
master’s degree in public health
from the Boston University School
of Public Health and a bache-
lor’s degree from Emerson
College.
Curt Williams has joined Florida
Farm Bureau as assistant director
of government and community
affairs. Williams earned a bach-
elor’s degree in turfgrass science
and a master’s degree in agri-
business management from the
University of Florida.
 fbnews.org November 16, 2009
Grassroots 8|

Heritage turkeys are growing trend with gourmet consumers

A handful of foodies—chefs, food bloggers
and local food enthusiasts—gathered in ear-
ly November at Ayshire Farm in Upperville,
Va., for the farm’s second annual “Timeless
Turkey” blind tasting of nine heritage tur-
key breeds. The Royal Palm won first place
as judged by a panel of five expert tasters,
but the Midget White was the favorite with
the crowd of about 50 guests.
Ayrshire raises over 1,200 turkeys for di-
rect marketing. Buyers pay anywhere from
$100 to $200 for these rare birds, signifi-
cantly more than the price of a supermar-
ket turkey, either because they prefer the
taste or just want to help preserve heritage
breeds.
At that price point, the market is a niche
one, admits Margie Bender, research and
technical programs director for the Ameri-
can Livestock Breeds Conservancy (ALBC).
“We are not trying to replace commercial
turkey production. We are trying to provide
something that is unique and preserve ge-
netic diversity,” she said.
The market for heritage breeds is small but
growing. ALBC does not keep data on sales,
but it does take a census of the breeding pop-
ulation, a reliable indicator of the market
since the animals would not be bred and pro-
duced if there wasn’t a market for them. In
1997, there were just 1,335 heritage turkey
breeder birds in the whole U.S. The 2006 cen-
sus found that number had shot up to 10,404.
Another good indicator of trends these days
Black, Chocolate, Midget White, Narra-
gansett, Royal Palm, Slate, and White
Holland varieties. The Standard Bronze is
the most popular heritage variety in the
U.S.
Most popular with the panel of expert
judges, though, were the Royal Palm fol-
lowed by the No. 2 choice, the Midget
White, and at No. 3, the Chocolate turkey.
Ayrshire raises its turkeys from day-old
poults to market size. The farm has its
own processing facility, an advantage that
many other heritage turkey farms don’t
have. Ayrshire’s turkeys, priced at around
The Narragansett turkey is one of nine heritage breeds $10 per pound, are targeted to a high-end
grown at Ayrshire Farm in Loudoun County, Va. The market. The price can vary greatly across
market for heritage turkeys is small but growing. the country, according to Bender, with
growers near cities getting higher prices.
is how often something is mentioned on the “Growers will charge as much as the mar-
World Wide Web. Google searches turned up ket can bear,” Bender said, in order to recoup
zero Web sites that mentioned “heritage tur- their higher cost of production. One reason
keys” in 2000. By 2009, the term was found on for the higher cost, she says, is that the feed
36,600 Web sites. conversion rate for the heritage breeds is typ-
All domesticated turkeys are descended ically around 4 pounds of feed per pound of
from wild turkeys indigenous to the Ameri- meat, compared to 2 pounds of feed per
cas. However, selective breeding and regional pound of meat with a commercial broad-
genetic isolation have led to “landrace” breasted white turkey. Heritage growers also
breeds that can vary greatly in color, size and typically use more expensive organic feed.
taste. The price tag puts a heritage turkey out of
The nine heritage turkey breeds raised at reach for the masses, but for the host who is
Ayrshire, located near Washington, D.C., always looking for the newest trend and is
and owned by Cisco Systems co-founder and willing to pay top dollar, a Standard Bronze,
Virginia Farm Bureau member Sandy Lerner, Chocolate or Narragansett turkey is one way
include the Bourbon Red, Standard Bronze, to impress holiday guests this season.

Classic Thanksgiving dinner costs decline for 2009

Continued from page 1
The survey indicates the aver-
age cost of this year’s feast for 10
is $42.91, a $1.70 price decrease
from last year’s average of $44.61.
“As we gather this Thanksgiv-
ing for food and fellowship, it’s
fitting to take a moment to rec-
ognize and give thanks, not only
for the abundant food we enjoy
as Americans, but for the hard
working farm and ranch families
across our nation who produce
it,” said AFBF President Bob
Stallman.
The survey shopping list in-
cludes turkey, bread stuffing,
cents per pound, or a total of 44 celery, 72 cents; and a 12-ounce 30-ounce can of pumpkin pie
cents per turkey compared to package of fresh cranberries, mix, $2.45.
2008. $2.41. A combined group of mis- Two items, green peas and
Milk, at $2.86 per gallon, cellaneous items, including cof- sweet potatoes, stayed the same
dropped 92 cents and was the fee and ingredients necessary to in price at $1.58 per pound
largest contributor to the overall prepare the meal (onions, eggs, and $3.12 for three pounds,
decrease in the cost of the 2009 sugar, flour, evaporated milk and respectively.
Thanksgiving dinner. butter) also dropped in price, to Farm Bureau volunteers are
“Consistent with the retail food $2.50. asked to look for the best prices
price declines seen throughout Items that increased slightly but not take advantage of special
the year, consumers will pay just (less than 5 percent) in price this promotional coupons or volume
a bit less for their Thanksgiving year were: a 14-ounce package of purchase deals. More than 200
feast this year,” said Jim Sart- cubed bread stuffing, $2.65; two volunteer shoppers in 35 states
welle, AFBF economist. “Consum- 9-inch pie shells, $2.34; and a participated in this year’s survey.
ers are benefiting at the grocery
store from significantly lower en-
ergy prices and the effects of the

sweet potatoes, rolls with butter,
peas, cranberries, a relish tray of
carrots and celery, pumpkin pie
with whipped cream, and bever-
ages of coffee and milk, all in
quantities sufficient to serve 10
people.
The cost of a 16-pound turkey,
at $18.65 or roughly $1.16 per
pound, reflects a decrease of 3
Corner Post
economic slowdown. Again this
year, the cost per person for this
special meal is less than a typical
‘value meal’ at a fast-food out-
let,” Sartwelle said. U.S. Turkey Consumption In 2008, U.S. consumption
Other items showing a price de- Turkey consumption has increased 108 percent of turkey was 17.6 pounds
crease this year were: a half-pint since 1970 due to consumers’ recognition of
of whipping cream, $1.55; a doz- per person.
en brown-n-serve rolls, $2.08; a
turkey’s good taste and nutritional value.
1-pound relish tray of carrots and
Pounds/Per Capita
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Source: National Turkey Federation