August 2012®

™

Volume 69, No. 7

New Mexico became home to railroads in 1878. Railroads back then were welcomed as a sign of progress and growth. There are two major rail lines crossing New Mexico transporting interstate commerce; Union Pacific and Burlington Northern amongst several narrow gauge and recreational railroads. Travel any of the major highways in New Mexico and you can almost guarantee that you will see a train.

While we continue to welcome those rail lines and support progress and commerce, we also want the railroads to support New Mexico, respect our state and our livelihoods and be good neighbors. Farmers and Ranchers are good people, the type of people that welcome you into their home, feed you and treat you like family. Good people that just want to get along with the way of life that they have chosen and make a true honest living at something they love to do. Who would have ever thought that a railroad would ever create a burden on our lives? I mean after all when rail travel first began it was a big part of ranchers and farmers lives. Well times have changed and railroads have grown and seem to have forgotten how to be good neighbors. Here in New Mexico many of our farms and ranches share the land with the railroads, and while we try to be good neighbors we seem to find ourselves being bullied.

Railroads in New Mexico are responsible for erecting and maintaining their fences according to State statute 77-16-16 which states “Every railroad in this state… shall erect and thereafter maintain fences on

the sides of their said railroad, or the part thereof so open for use, suitably and amply sufficient to prevent cattle, horses, sheep, mules, burros and hogs from getting on the said railroad. If any railroad shall fail to construct and maintain such fences and cattle guards as herein directed, such railroad shall be liable to the owner for all damages resulting from injury or death caused to any such livestock. A sufficient and suitable fence is defined and declared to be a fence at least four and one-half feet high, constructed of posts and wire, the top wire to be four and one-half feet above the ground and shall

have at least four wires upon posts not exceeding twenty feet apart.

However for many years now we are finding that the fences are being neglected. Ranchers are losing cattle at alarming rates each year due to the negligence of the railroads and this is simply unacceptable. As ranchers know, the loss of production from one cow who has died on the tracks is enormous. According to Dr. Nick Ashcroft, NMSU’s Extension Range Specialist, it impacts the rancher’s bottom line by about $2,420 every

time a bred cow is killed. He figures that:

Loss of calf for current year$605

Retained heifer that could have sold$605

Lost income until replacement calves$1,210

It takes a long time to recover from a $2,400 loss, especially if several cows are killed at once. This was the situation faced by Liane Carr, Carr Cattle Company in McKinley County.

In November 2010, she lost 14 bred cows on BNSF tracks where the

fence was in disrepair. “Railroads and ranchers are essential to New Mexico, they need to work together to effectively and efficiently use the land. The minimum expected of the railroad should be to secure their property to protect the welfare of animals and humans.”

There have been several bills introduced in the State Legislature over the past couple of years that just seem to not have enough steam, no pun intended! On July 25, 2012, NMF&LB’s President

Mike White and New Mexico Cattle Growers’

Association President Rex Wilson wrote a letter to the BNSF reminding them of their fencing obligation. BNSF had previously stated that they would provide the fencing material but would not provide the labor. White and Wilson unequivocally stated that this policy is unacceptable and “Does not coincide with current statute, therefore we are requesting that BNSF abide by the law and simply repair and

continued on pg 4, see Railroads

Fences, Railroads and Cattleby Chad Smith, Senior Director, Government Relations

Cattle killed by the BNSF railroad at the Red Cliffs Ranch, 2010 photo courtesy of DeLaRosa Ranching

Farm & Ranch Page 2 August 2012

IDEAS AND ELBOW GREASEThe President’s Column

By Michael S. White, President

THE AG AGENDABy Bob Stallman, President

American Farm Bureau Federation-------------------------------------------

Got Farm Bill Relief?New Mexico has benefitted greatly

from our dairy industry. Not only do they support our rural communities and businesses, but they also make significant contributions to our state’s economy. Unfortunately, last year’s drought in the Southwest and the current drought in the Midwest has spiked feed prices taking its toll on dairy finances. Dr. Robert Hagevoort, NMSU’s Dairy Extension Specialist, says we’ve already lost 15 dairies so far this year - that’s ten percent of the state’s total dairy industry. For every dairy that goes out of business we lose 30 jobs since most dairies have one employee per 100 cows and the typical size of a New Mexico dairy is 3,000. So far it is estimated that we’ve lost around 1,500 jobs with the 15 dairies that have gone under. And that’s direct jobs. When you figure there are 100 indirect jobs that rely on a single dairy, when that dairy is gone so are services such as doctors, automobile dealer-ships and teachers.

However there is relief for the dairy industry in the new Farm Bill with its newly introduced safety net called the Margin Insurance Program. For the first time, dairy farmers would benefit from an insurance program similar to that of crop insurance. Like all of us in production agriculture, dairy farmers rely on banks for operating capital and banks need predictability. The current market is too volatile and banks won’t extend lines of credit in this type of environment. The new Farm Bill with the Margin Insurance Program would mediate that volatility allowing more dairies, with the aid of the banker, to weather the storm.

Right now, at $8.00 corn, a typical dairy is losing between $5 and $7 on every 100 pounds of milk they ship.

The new Farm Bill would reduce that loss to $1.00 per 100 weight, enabling dairy farmers to secure credit provid-ing relief for not only that industry, but for New Mexico’s economy as well.

I know first-hand the importance of the dairy industry having been raised on one, and my father worked for Price’s Dairy in Roswell and El Paso for 50+ years. Dairies are an economic driver for rural communities and many families depend on them for a living. Let’s ensure that they continue to have a viable future in our state.

Providing farmers with improved risk management tools is a core principle of both the House and Sen-ate versions of the pending farm bill. Both versions contain new tools that will assist farmers, while restoring several expired provisions that would help livestock producers manage the weather-related risks that regularly im-pact their livelihoods. We are hopeful our congressional leaders will expedite their work on this vital legislation and approve it this fall.

Call your representative and let them know you support passage of the new Farm Bill.

Senator Jeff Bingaman (D)202-224-5521

Senator Tom Udall (D)202-224-6621

Representative Martin Heinrich (D-01)202-225-6316

Representative Steve Pearce (R - 02)202-225-2365

Representative Ben Ray Lujan (D-03)202-225-6190

Stop the Floodof Regulation

Burdensome and unnecessary regula-tions are always a point of contention for farmers and ranchers, especially when we are being flooded with what seems to be never-ending, nonsensical rules. In keeping with the ebb and flow of bu-reaucracy, the Environmental Protection Agency and Army Corps of Engineers are planning an upheaval of the Clean Water Act (CWA) that would add more . . . you guessed it . . . rules and regula-tions to farms and ranches.

That’s why the American Farm Bureau Federation is leading the way to stop EPA and the Corps from liter-ally regulating every drop of water on private landowners’ property. Through a nationwide grassroots campaign, we are engaging Farm Bureau members to “Stop the Flood of Regulation.”

A $30,000 Ditch

For some time, the EPA and Corps have been trying to remove the word “navigable” from the Clean Water Act through what is called a “Guidance Document.” This would change the very meaning of the CWA to allow for such frivolous action as regulating a roadside ditch that holds water for only a few hours after a 4-inch rain.

The Guidance Document should be used to explain processes and policies of existing laws and regulations—not to expand or change the scope of current law. Importantly, a Guidance Document does not go through the rigors of the regulatory process that serve to protect the rights of the regulated community.

But, EPA and the Corps’ action to improperly use the Guidance Document to remove “navigable” bypasses con-

New Mexico Farm& Livestock Bureau

Annual Meeting Highlight

Join us for an entertainingkeynote presentation by

Bryan Townsend. He calls himself a humorist not a comedian “They

tell dirty jokes and I’m just funny.” From Talladega, Alabama Bryan is

sure to tickle your funny bone.

This is one of the great speakers you will hear at the NMF&LB

Annual Meeting, November 15-17.So mark your calendar and we’ll

see you in Albuquerque!

Farm & Ranch Page 3August 2012

gressional intent and ignores Supreme Court precedent. For the past 10 years, Congress has voted specifically and repeatedly to keep the term “navigable” in the CWA. We believe this Guidance Document is not only bad policy but is being implemented through a regulatory sleight of hand.

Farmers, ranchers and private land-owners need to preserve the authority the CWA has granted states and lo-calities for nearly 40 years and stop the deluge of regulations and permitting requirements that will likely result if the Guidance Document is finalized. The two agencies are piling on regulatory burdens with little regard for the costs for landowners. These costs, which could be upwards of $30,000, with increased permit requirements and re-duced nutrient applications, are very real and have direct impacts on the farm.

Engagement v. Regulation

It’s important that every Farm Bureau member become engaged in pushing Congress and the administration to block the Guidance Document before the end of this Congress.

There are many ways to get involved. Visit the FBAct Insider page to learn more. For those who are social media savvy, follow @StoptheFlood on Twit-ter and post pictures of your soon to-be regulated ditches and puddles using the #stoptheflood hashtag, or “Like” the Stop the Flood of Regulation Facebook page, post your pictures and comments and get updates on the campaign.

It’s time to show Congress how the Guidance Document could cost farmers, ranchers and private property owners tens of thousands of dollars. It’s time to Stop the Flood of Regulation.

C A L L 1 - 8 0 0 - 4 5 1 - 5 9 9 7 o r v i s i t W W W. FA R M C R E D I T N M . C O M

A L B U Q U E R Q U E • R O S W E L L • L A S C R U C E S • T U C U M C A R I • C L O V I S

We understand how you make your living, because it’s how we make our

living. And tougher times call for smarter, careful thinking. � at’s why,

since 1916, New Mexico’s farmers and ranchers have counted on us for solid

� nancial services when they need them most. We’ve been there. We’ll be here.

FNM 1581 NMFR-5x10-All-BW.indd 2 12/17/09 4:44 PM

Save the Date!Sept. 20-21 Board Meeting,

Sheraton Uptown, AlbuquerqueNov. 15-17 Annual Meeting,

Sheraton Uptown, Albuquerque

2013Jan. 13-16 AFBF Annual Conv.,

Gaylord Opryland Hotel, NashvilleFebruary 19 AgFest,

Sweeney Center, Santa FeFebruary 20 Legislative Breakfast,

La Fonda Hotel, Santa Fe

Farm & Ranch Page 4 August 2012

About the Farm Bill…By Matt Rush, NMF&LBExecutive Vice-President

Many Americans do not understand the Farm Bill. They’ve been swayed by newspaper accounts and tv news that portray the bill as agricultural

A Message from Mattwelfare. That has never been true and this years’ proposed bill is more beneficial for agriculture than ever before. That is why NMF&LB supports the new bill as written, rather than the prospect of extending the current Farm Bill. 1. The new bill has drought and emergency programs for livestock producers. This is great considering the current drought situation in New Mexico. There has never been an emergency protection program for the livestock industry so this is certainly good for our New Mexico ranchers.2. Within the senate version of the new bill there is some funding for education and research that would be very beneficial to New Mexico State University. Our Land Grant University has continued to take budget cuts year after year, which ultimately impact our New Mexico producers. Many New Mexico producers rely heavily on the education and research provided by New Mexico State and this is a vital component to our livelihoods.

3. The house bill offers a program for the peanut industry that does not exist in the current Farm Bill and would certainly benefit our New Mexico peanut growers.4. Extending the current Farm Bill would cause the dairy industry to deal with the current MILC Price support program whereas the new Farm Bill eliminates the MILC program and introduces two new programs beneficial for New Mexico Dairies, Dairy Product Market Protection Program and the Dairy Market Stabilization Program.5. Extending the old program will also cause our baseline amounts to be decreased when we get a new program the following year.

We believe that this is probably one of the most bi-partisan Farm Bills in years, where industry has truly worked hard to create a Farm Bill that benefits everyone while keeping in mind the budget constraints. This bill is good for New Mexico and our industry as a whole and we urge our representatives to support its passage.

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(Railroads cont. from page 1)maintain its fencing.”

Industry has made progress on this issue and on July 31, it was a topic of the Water and Natural Resources Interim Committee. With representatives from both the Union Pacific and Burlington Northern, legislators from across the state sent a message to the railroads. Operate according to law, work with the livestock industry and fix the problem, otherwise the legislature will fix it for you.

In response, BNSF sent a letter to NMF&LB and NMCGA reinforcing their commitment to being good neighbors and suggested “we schedule a meeting prior to year’s end to evaluate the effectiveness” of a new process for reporting and reimbursement of cattle claims.This is another example of NMF&LB advocating for our members and we hope that this will be the end to an issue that has plagued ranchers for years. Visit www.nmfarmbureau.org to review the procedure on how to address a railroad fencing issue.

Farm & Ranch Page 5August 2012

The USFRA Comes to TownDuring the NMF&LB Summer Meeting Don Lipton, AFBF’s Executive Director of Public Relations spoke about the progress

of the United States Farmers & Ranchers Alliance. According to their website http://fooddialogues.com “The USFRA is a newly formed alliance consisting of a wide range of prominent farmer- and rancher-led organizations and agricultural partners. This marks the first time agricultural groups at the national, regional and state levels have collaborated to lead the dialogue and answer Americans’ questions about how we raise our food – while being stewards of the environment, responsibly caring for our animals and maintaining strong businesses and communities.” One of their recent efforts was a food dialogue where farmers, ranchers and consumers gathered in Los Angeles to “discuss the important questions about our food and how it is produced. We have all become invested in knowing more about where our food comes from, how it was grown and raised and how it impacts our per-sonal health. USFRA helps farmers and ranchers answer consumers’ and influencers’ questions, including the tough ones, about food production.” They have more dialogues, brochures, meetings and webinars planned so keep an eye on this group and their activities. This graphic is part of their recently published research roadmap titled “Building Trust in Agriculture.”

Farm & Ranch Page 6 August 2012

Ranchers, Dairymen Face Steep Feed PricesThe drought that plagued the South-

west last year has extended its reach to the Midwest as well, causing the driest conditions to hit that area since the 1950’s. This has had a terrible impact on corn production as 75% of the corn crop withers away in the summer heat. Of course lower yield means higher prices and corn is expected to rise another 20 to 25%. Corn that was trading at $5.20 a bushel in June is currently being delivered to the Purina Feed Mill in Lubbock for $8.60 a bushel. It is expected to rise to $9.50 a bushel in the next six months. And since corn drives the price of all other ingredients, feeding your livestock, and your family, is going to be in-creasingly expen-sive in the coming months.

Because most foods include a corn component, either as feed, an ingredient, or through the use of high fructose corn syrup, food prices will rise over the next year. The USDA con-ducted a survey of more than 25,000 farmers and ranchers and the results indicate a lower production of milk, eggs and pork. According to the report “Beef production is expected to rise as ranchers cull more of their herds because of higher feed prices.” As the culled herds diminish supplies, the price of beef will rise, contributing to an overall 5% increase in grocery bills next year.

Tightening corn supplies has re-newed the debate about ethanol and its effect on corn prices. The Renewable Fuel Standard, a law which was intro-duced in 2005 to encourage America’s energy independence, requires the production of 13.2 billion gallons of ethanol in 2012. This results in the diversion of 40% of the nation’s corn

crop to biofuels, rather than feed and food. The Dairy Producers of New Mexico have signed onto a petition requesting that the EPA waive the fed-eral mandate. “The cost of production is higher than the price producers are getting for the milk right now, so there is a petition asking the EPA to waive the mandate for at least one year to get corn prices to come down to help our members,” said Beverly Idsinga, Executive Director of the Dairy Pro-ducers of New Mexico. This is within the power of the EPA as the original law had a provision which allowed the RFS to be waived “due to severe economic harm.” Cosigners of the let-ter included the National Cattlemen’s

Beef Association, the National Pork Producers Council, the American Meat Institute, the National Turkey Federa-tion, the National Chicken Council, and the American Sheep Industries Association. A bipartisan group of senators have also written a letter to EPA Administrator Lisa Jackson ask-ing her to “use existing waiver author-ity as soon as possible to adjust the corn-ethanol mandate.” Among the 26 participating senators was Tom Udall. Congressman Steve Pearce signed a similar letter on August 1 from 156 members of the House of Representa-tives.

Janet Jarratt, a dairy owner from Valencia County who is also on the NMF&LB State Board echoes con-

cerns about market volatility. “Even though we grow our own hay, we are still subjected to the whim of the commodity markets, and because of speculators, the market is very volatile and not as tied to seasonality or actual supply. Additionally, the issue for dairies isn’t solved by increased prices at the grocery because the federal milk market administrator determines farm price based on a very complex formula. Culling may keep beef and dairy operations alive for now, but will lead to shortage shortly as destocking reduces future production potential.”

So what can producers do to lower their feed prices? Dr. Robert Ha-gevoort, NMSU’s Extension Dairy

Specialist has a few suggestions. “Any alternative feed we had, we fed last year. Some farmers are even harvesting tumble and pig weeds. I fielded a call from California asking if dairy cows could eat palm fronds if the spines were removed.” Short of that, there are a few things he recom-

mended for next year. If you plant your own forage he suggests that you plant sorghum. Although it provides less energy and tonnage, it is more drought tolerant. You may also want to consider planting corn later in the year to avoid a very dry and windy spring. Short season varieties would work well if planted by June 15th and would be able to take advantage of po-tential monsoon rains. Lastly “consid-er utilizing grassland or CRP lands for a roughage supply making sure that some stubble remains to prevent wind erosion when the spring winds come.” (NMSU Dairy Extension Newsletter, December 2011, http://chavesextesion.nmsu.edu/documents/2011-nmsu-dairyextnewslr-dec.pdf).

Farm & Ranch Page 7August 2012

The lifeblood of America.

FB02-ML (3-12)

They’re the humble heroes who rise before dawn and battle

the elements. They put clothes on our backs and food on

our tables. Their genuine values and tireless work ethic are

an inspiration to us all. We appreciate all that America’s

farmers do and invite you to join us in saying thanks at

www.fbfs.com/SayThanksToAFarmer.

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ISSN 0028-61922220 N. TELSHOR BLVD. • LAS CRUCES,

NM 88011575.532.4700 • FAX: 575.532.4710

PUBLISHER:New Mexico Farm and Livestock Bureau

New Mexico Farm & Ranch is published monthly. Yearly subscription is $24.00. New Mexico Farm and Livestock Bureau

members receive a complimentarysubscription with yearly dues.

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OFFICERSMichael White

President, Dexter

Dennis Harris1st Vice President, San Antonio

Craig Ogden2nd Vice President, Loving

Matt RushExecutive Vice President

BOARD OF DIRECTORS

Burl Brown, Clayton

Greg Daviet, Las CrucesChad Davis, Portales

Jim Ellett, HopeDuane Frost, Claunch

Leon Hemann, McDonaldBrad Houston, RoswellJanet Jarratt, Los Lunas

Dustin Johnson, FarmingtonBoe Lopez, Springer

Donald Martinez, El RitoSteve Myrick, Clovis

Larry Reagan, Ft. SumnerTroy Sauble, Maxwell

Paula Sichler, San AntonioAnna Sanchez-Glenn, Albuquerque

John Sweetser, DemingJim Taylor, Albuquerque

Pat Woods, ClovisJohn York, Mimbres

REGIONAL DIRECTORS

Joel Alderete, RoswellBenjie Segovia, Las CrucesChad Smith, Albuquerque

Dennis Garcia, Santa Fe

Theresa WidnerDirector of Membership Services

Carmen MaciasAdministrative Assistant

Dalene HodnettDirector of Communications

and Media Relations

Traci WilliamsDirector, Ag in the Classroom

Ashley WhiteAg in the Classroom Coordinator

Anna Sanchez-Glenn, ChairWomen’s Leadership Committee

Dustin Johnson, Chair Young Farmer & Rancher Committee

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