by Daniel C. Grant / Illinois Agri News / Friday April 21, 2000
Springfield, Illinois - Representatives of an estimated 600 individuals, who formed a diverse alliance of 180 groups, recently called for an investigation into allegations that American Farm bureau Federation leadership, including it's state offices, no longer represent the true interests of family farms and instead favor large agribusiness.
The call was made during a heated press conference April 11 at the State Capitol Building in Springfield, where statewide river conservation group Prairie Rivers Network unveiled a collaborative report, "Amber Waves of Gain" which accuses Farm Bureau of, among other things, manipulating membership numbers and using tax exemption advantage to further the interests of big business with disregard to family farms and the environment.
The controversial report is basically a follow up to a report released last September, "Dirty Water Dirty Business", in which Prairie Rivers and other conservation groups examined Illinois Farm Bureau's policies, business interests, and it's impact on the environment.
"The Farm Bureau Leadership has consistently taken positions that are detrimental to the environment and the family farmers," said Robert Moore, executive director of Champaign IL, based Prairie Rivers Network. "This is not surprising, given the small percentage of Farm Bureau members that are farmers and the vast financial stake the Illinois Farm Bureau holds in agribusiness."
"We'd like to request an investigation into the tax-exemption revenue from it's non-farming interests.
Prairie rivers also requested that Farm Bureau provide reports on its chemical business to the Environmental Protection Agency and U.S. Geological Survey as well as provide more financial assistance to producers who are converting more acreage to conservation practices.
The top argument used by the alliance, to support its claims against the Farm Bureau, stems from the fact that there are roughly more than double the amount of Farm Bureau members, 4.9 million as opposed to actual farmers nationwide, which was estimated by the U.S. Department of Agriculture at just under two million.
However that argument is nothing new to the Farm Bureau, according to Dennis Vercler, news and communications director for the Illinois Farm Bureau.
"Its all been said before," he said. "No one is certain what percentage of farm operators we represent. But most surveys suggest at least in Illinois, we represent two-thirds of farm operators."
In addition the most recent Prairie Rivers report states that, according to corporate documents some 54 Farm Bureau affiliated insurance companies earn more than 6.5 billion annually in net premiums thus creating a perceived conflict of interests.
"This is a farmer organization," Vercler insisted. "But we have other members, for whom we make no apologies."
With strength in numbers, Farm Bureau was ranked in the top 25 of most effective lobbying organizations in Washington by Fortune Magazine. But the main question raised is - who benefits the most from these lobbying efforts?
"If these people lose their prestige as the spokesmen for agriculture, they're just another insurance lobby, and insurance lobbies are a dime a dozen," Missouri farmer Scott Dye stated in the "Amber Waves of Gain Report". That's why they don't like to talk about how many of those members are actually farmers."
The idea that Farm Bureau manipulates its membership total to gain more leverage in Washington and that it plays into the hands of big business are "ridiculous", according to Vercler.
"The group criticized Farm Bureau and said its business concerns dictate policies. "That is ridiculous," said Vercler, who attended the Prairie Rivers press conference in Springfield. "There are no general managers of business affiliates who participate in policy discussion. When members sit down to discuss issues, they're speaking from their own perspective. Its absolutely not true that business activities of Farm Bureau control policy writing."
However, Sheffield, IL. producer and Farm Bureau member Keith Bolin, who said he has " no axe to grind with Farm Bureau," went as far as to request all financial records of Farm Bureau, even IFB president Ron Warfield's salary and stock options.
"We need access to information and transparency of information," Bolin said. "This is a chance to be a wake up call."
One area in which Bolin accused Farm Bureau of playing into the hands of big business was due to the fact that Farm Bureau did not support a moratorium on mergers as antitrust laws are still under review.
But Vercler countered that Farm Bureau is in fact working to control that issue and has compiled a 10-page action plan to deal with concentration in agriculture.
"Farm Bureau, the last two years, has become more aggressive working on many of the issues that were discussed (at the press conference) especially the ongoing concentration, mergers, and acquisitions in agriculture," Vercler said. "They criticized us for not supporting a moratorium. But the way Farm Bureau works is majority rules, and the majority did not support that concept."
The "Amber Waves of Gain" report also contends that the Illinois Farm Bureau has consistently opposed legislation to require annual state inspections of waste lagoons on big farms, odor control, and a quarter-mile setback between dead animal compost and homes.
"We farmers and citizens thought that Farm Bureau would be very alarmed about the siting of livestock factories in Illinois," said Elmwood, Illinois, producer Karen Hudson, president of Families Against Rural Messes. "Instead the Farm Bureau rolled out the red carpet to corporate livestock factories and welcomed them into the state of Illinois. With a multitude of lobbyists in Illinois, Farm Bureau utilized its almost unlimited resources to fight our every effort for sound legislation, including local control."
Vercler, who did not speak specifically on the local control issue, emphasized the fact that farm Bureau policies are established on a majority-rules format.
"The problem we have is the system is set up so majority rules," Vercler said. "If you're in the minority, you may not feel Farm Bureau is working for you. But it's a very democratic, very open process.
On the national level, a similar press conference was held in Washington on the same day, where members of the National Family Farm Coalition, Defenders of Wildlife, Friends of the Earth, and GREEN released the same information and called for an investigation of Farm Bureau as well.
"We started taking a close look at the Farm Bureau when it threatened the Yellowstone wolf reintroduction program," said Roger Schlickelsen, Defenders of Wildlife president. "We found out that Farm Bureau not only fought every imaginable conservation measure, but it often advocates policies that are detrimental to family farmers."
"It pushes an extremist right-wing agenda that has nothing to do with farming and it benefits unfairly from its nonprofit tax status," Schlickelsen continued. "Farm Bureau membership is mostly people who have little to do with agriculture."
The issues between the alliance of groups vs. Farm Bureau made a national splash April 9 when CBS News broadcast a piece "The Demise of the Family Farm" on "60 Minutes."
On the program, Farm Bureau was criticized for the reasons previously listed. It was also noted that a Farm Bureau company in Mississippi owns more than 18,000 shares in Premium Standard Farms, a corporate hog processor that family farmers reportedly say is squeezing them out of business.
An Iowa farmer, who ran unsuccessfully for the presidency of the Iowa Farm Bureau, also questioned Farm Bureau's affiliation there with AccessAir, in which it reportedly invested at least $1 million into the start up airline in DesMoines that recently filed for bankruptcy.
"They're using farmers' money to invest outside agriculture while farmers are struggling," the Iowa producer said. "That just burns me up."
Iowa Farm Bureau president Ed Wiederstein who appeared on the "60 Minutes" story, said in a statement to Farm Bureau members that the news program scheduled the interview to profile the economic situation in America, but then turned it into a "Premeditated attack on the purpose and integrity of your Farm Bureau Federation."
In a similar statement issued to FB members in Kansas, the organization there stated "why all the interest and mudslinging in regard to our policy? Could it be that they are envious of the success that we have had in protecting the family farmer's right to make a respectable living without undue restrictions or regulations?"
But Bolin said the share for the consumer dollar that farmers receive is the root of the whole problem, as Ag Secretary Dan Glickman recently reported that the farmer's cut of each consumer dollar for ag products dropped from 37 cents in 1980 to just 23 cents today.
"There's a lot of stress in agriculture because of low prices and the changing structure of the industry." Vercler said. "I think that some of that stress was evident (at the recent press conference that essentially attacked the Farm Bureau)"
Vercler called the recent actions, calling for an investigation of Farm Bureau, a "waste of time" and said that producer organizations should instead be working together to help alleviate the tough economic situation facing those in agriculture.:
