Public Policy Agenda 2007

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1 WASHINGTON FARM BUREAU Public Policy Agenda 2007 Keeping Washington s working family farms viable

2 ii 2007 Washington Farm Bureau Public Policy Agenda Farm Bureau Creed We Believe... In the American competitive enterprise system. That man s search for progress should be encouraged by maintenance of opportunity, not hindered by illusions of security. That a person should be rewarded in accordance with his or her productive contribution to society. That every person is entitled to own property, earn money honestly, save, invest and spend as he or she chooses. That property rights cannot be taken away without infringing on rights guaranteed by the Constitution. That the Constitution is the basic law of the land. That government should operate impartially in the interest of all. That government s regulatory functions should be based on law. That government should provide only minimum controls and aids. That government should stimulate, not discourage, individual initiative. This publication is copyright 2007, Washington Farm Bureau, PO Box 8690, Lacey, WA All rights reserved. That propagandizing by government is dangerous to the maintenance of selfgovernment. That monopoly, whether by government, industry, labor or agriculture, is dangerous. That voluntary cooperation is a part of the American system. That all candidates for public office should state their beliefs with respect to communism, socialism or capitalism. All these undergirded by our Religious Faith.

3 2007 Washington Farm Bureau Public Policy Agenda iii Dear Friends of Agriculture, President s Message As the leading advocate for Washington s family farmers and ranchers, we at Farm Bureau would like to thank those of you who realize the importance of agriculture to our state s economy, communities and environment. With your help, we will continue to fight for the well being of farmers, ranchers, and our 35,000 member families throughout the state. This Public Policy Agenda is designed to give you an overview of the key issues that impact the viability of our farmers, their businesses, and their families throughout Washington state. Washington ranks first in the United States in the production of nearly a dozen commodities, including apples, hops, concord grapes, sweet cherries, pears, red raspberries, spearmint oil, peppermint oil, wrinkled seed peas, and lentils. Despite our preeminent production ranking, Washington farmers and ranchers are finding it increasingly difficult to maintain profitability. With each passing year, farmers and ranchers face escalating land-use restrictions, new and higher taxes, and surges in fuel and energy costs. Combined with increased labor costs, a documented shortage of seasonal workers, and relatively flat prices for crops, it s no wonder that agriculture in Washington state is struggling to be competitive. Some of these issues are national or even international in scope. However, much can be done by our state Legislature to enhance the viability of Washington agriculture for our state s farmers and ranchers. We look forward to working with the Legislature and governor to find innovative ways to increase the profitability of our crops, returning Washington to its appropriate status as a global competitor. Sincerely, Steve Appel Steve Appel WFB President WFB Mission Statement: Farm Bureau is a voluntary, grassroots advocacy organization representing the social and economic interests of farm and ranch families at the local, state and national levels. By providing leadership and organizational skills, Farm Bureau seeks to gain public support on the issues affecting farm and ranch families.

4 iv 2007 Washington Farm Bureau Public Policy Agenda Government Affairs Team Britt Dudek, First Vice President Washington Farm Bureau Legislative Committee Chair Dan Wood, Director of Local Affairs Issues: Growth Management, Land Use, Energy Office: , ext. 109 Cell: John Stuhlmiller, Director of State Affairs Issues: Water, Natural Resources, Pesticides Office: , ext. 103 Cell: Dan Fazio, Director of Employer Services Issues: Labor and Employment Office: , ext. 102 Cell: Patrick Connor, Director of National Affairs Issues: Taxes and Budget, Predation, Health Care Office: , ext. 110 Cell: Scott Dilley, Administrative Assistant Office: , ext

5 2007 Washington Farm Bureau Public Policy Agenda v Table of Contents Farm Bureau Creed... ii President s Message... iii Government Affairs Team... iv Land Use... 1 Labor and Employment... 2 Health Care... 4 Taxes and Fiscal Policy... 4 Water Resources... 5 WSDA Map: Agriculture Washington s No. 1 Employer... 6 The 2007 legislative session poses new challenges and opportunities for Washington, and Farm Bureau looks forward to working with legislators and the governor to address these challenges, especially any that threaten the viability of agriculture. Washington farms help to feed the world while also providing critical environmental benefits. Our government affairs team is available to provide information about our industry as we seek policy solutions to help protect working family farms and keep agriculture a thriving part of Washington s economy. Britt Dudek, WFB First Vice President Number of Farms and Average Size of Farms in Washington State, Source: Washington Agricultural Statistics Service. Graph Courtesy of Washington State Employment Security Department.

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7 2007 Washington Farm Bureau Public Policy Agenda 1 Land Use The continued viability of agriculture in Washington depends on the ability of farmers to use all of their resources, including their land. Land-use regulations increasingly threaten and restrict farming activities. Mandated buffers adversely affect farms by reducing the acreage and productive capacity of farms, allowing fallow ground to grow weeds and other invasive species and making those mandated buffers ineligible for federal programs such as the Conservation Reserve Enhancement Program. In many cases, farms are the buffers between sensitive areas and intense development. When regulations make farming unprofitable, farmland is more likely to be developed into more intense uses. Farm Bureau favors approaches that protect existing uses and rights in private property while providing incentives for habitat improvements, such as leasing habitat or assistance with voluntary habitat improvements. Farm Bureau seeks land-use policies that will: Protect all types of farming from nuisance complaints, regardless of what type of farming existed at the time of neighboring development; Clarify that critical area ordinances and development regulations developed or amended by local governments according to RCW 36.70A shall not require modification of or limit agricultural activities occurring on agricultural lands; Clarify that new regulations adopted under RCW 36.70A cannot prohibit allowable land uses (whether or not those allowable uses have been implemented) at the time of adoption; Recognize adoption of voluntary conservation programs that are consistent with conservation standards as meeting the requirement to include BAS; and, Provide protection against eminent domain abuse by narrowing the uses for which eminent domain may be invoked, and requiring that property taken by eminent domain be used only for the purpose for which it was taken or be returned to the original owner at the purchase price. Protecting our rights in private property is critical to the survival of agriculture. Farmers need to have full economic use of their land and must not have the value of their property diminished through unfair regulations. Pre-existing uses and rights must be protected and must remain predictable.

8 Washington Farm Bureau Public Policy Agenda During the past 10 years, the number of seasonal agricultural workers has declined nearly 20 percent. Last year 15 Washington firms used the federal guestworker program to obtain visas for nearly 800 temporary agricultural workers to supplement our dwindling supply of domestic seasonal workers. Labor and Employment Agriculture continues to be the largest employer in our state with more than 250,000 workers and an economic output that is approximately 13 percent of the state s economy. The tree fruit industry and other labor-intensive crops, which receive no federal subsidies, are in a death struggle with low-wage foreign competition. For example, Washington is the only state that has been able to maintain or increase its apple production in the past 10 years, while other states have suffered double-digit losses in production. Our Employment Security Department has documented the shortage of seasonal workers. The agency reports that the number of seasonal workers has decreased 20 percent in the last 10 years, proof of a consistent decline. Increased productivity and advances in technology have not been able to replace the shortfall of seasonal workers. Our best hope to solve the seasonal worker shortage is reform of the federal guestworker program. Meanwhile, state policymakers should take steps to assist labor-intensive employers in obtaining an adequate supply of farm-skilled workers, as suggested below. Workforce Assistance: The Washington Employment Security Department, Department of Labor and Industries, and Department of Agriculture are collaborating with agricultural associations and other stakeholders to remedy the labor shortage. This effort, known as the agriculture workforce initiative, involves better access to the current pool of workers and incentives to attract new workers. In April 2006, a joint federal/state immigration raid devastated the small fishing community of Chinook. Photo courtesy of Nancy Butterfield, Chinook Observer. Housing: A key component to attracting seasonal workers is seasonal housing. Last year the Legislature authorized a housing voucher program, and despite the fact that this program was not made available until October 1, it should attract workers. We will continue to recommend innovative housing solutions for seasonal workers. Unemployment Insurance: ESD has released a study on repeat use of the unemployment insurance system that suggests, at any one time, 30 percent of U/I claimants are repeat users. For these workers, unemployment insurance is a valuable safety net. Yet lawmakers have chosen to

9 Volume 1, Issue Washington Farm Bureau Public Policy Agenda 3 disproportionately shift the burden for seasonal workers onto growers and other seasonal employers who have done nothing to cause unemployment other than offer seasonal work. Workers Compensation: Although our state industrial insurance system is not working well for either employers or workers, L&I has been unable to achieve consensus on needed reform. We continue to struggle with a system that poorly allocates resources. For example, a married worker with no children who suffers an on-the-job injury receives a higher disability rate than a single parent of two children who suffers the same injury. Many reforms are needed to the workers compensation system. Farm Bureau urges legislators to: Support a program to provide in-state college tuition credits for workers aged 15 to 20 who complete a certain amount of agricultural work; Number of Seasonal Workers 70,000 65,000 60,000 55,000 50,000 45,000 40,000 Support a program administered by the Employment Security Department that provides migrant farmworkers a gasoline reimbursement voucher if the worker registers with WorkSource and accepts a seasonal position with a requesting farmer; Support the flexible funding strategy proposed by ESD, provided the agency continues to fund its agricultural initiative; Support the addition of $2 million for the infrastructure loan program to develop on-farm seasonal housing and refine the short-term housing voucher program; Oppose any state legislation that would impose additional burdens on growers who seek to use the federal H2A guestworker program; Support comprehensive workers compensation wage simplification or a simplified proposal wherein disability wages for all workers will be calculated at 65 percent of wage (if comprehensive wage simplification is not enacted); and, Oppose legislation that requires employers to pay a new tax for family leave or that imposes any new regulation forcing employers to grant leave that has not been earned. Peak Seasonal Employment Year The number of seasonal workers available for agriculture has declined dramatically in the past 10 years. Source: Washington State Employment Security Department, Labor Market and Economic Analysis Unit Washington produces more apples than all other states combined and is the only state to show an increase in apple production from 1996 to During the 1990s, China overtook the United States as the world leader in apple production, and by 1997 China produced more than four times as many apples as the United States.

10 Washington Farm Bureau Public Policy Agenda Health Care Association health plans are a popular choice for many people, and nothing should be done to damage an association s ability to serve its members. Access to affordable health insurance plans for individuals and employers choosing to provide coverage for their employees continues to be limited due to statutory and regulatory obstacles. To promote and protect access to affordable, quality health insurance options for individuals and employers, Farm Bureau will: Support efforts to increase the number of and competition among insurers offering health care plans in Washington state; Support greater flexibility and variety in health insurance plans, including the use of Health Savings Accounts; Oppose regulatory or legislative efforts that would adversely affect association health plans; Oppose so-called Fair Share or Pay or Play legislation to mandate employer-provided health insurance benefits for employees; and, Oppose legislative efforts to enact single-payer or mandatory universal coverage systems. Patrick Batts WFB Administrative Vice President Taxes and Fiscal Policy Since agriculture is a capital-intensive industry, farmers and ranchers often face a disproportionately high tax burden. Moreover, a number of state regulations impose tax liabilities on inputs for agriculture that may be exempted when used in other industries. In an effort to enhance the viability of agriculture in Washington, Farm Bureau will: Seek an exemption from business and occupation taxes for custom farming service providers; Support legislation to exempt propane purchased for on-farm use from sales and use taxes; and, Support an extension of the current business and occupation tax exemption applying to the sale of certain unprocessed agricultural commodities to all unprocessed agricultural commodities.

11 2007 Washington Farm Bureau Public Policy Agenda 5 Water Management The state of Washington is blessed with an abundance of water. This abundance, coupled with the many other natural resources found in the region, has continued to draw people to the state. The availability of water to meet the needs of all users has given us that unique allure. With billion gallons of water passing through our state on a daily basis and only 4.7 billion gallons per day (or 1.75 percent) consumed, it is possible for all needs to be met well into the future. Proper water resource management is a necessary component to ensuring this future. Farm Bureau will: Support efforts to repeal or at least modify the relinquishment statute through means such as eliminating partial relinquishment, in order to encourage voluntary conservation and wise water use; Support the implementation of the Columbia River water package passed last session to ensure the creation of new water storage projects and the allocation of that water to meet the needs of instream and out-of-stream uses; and, Support retaining the present exempt well statute, especially as the exemption relates to stock water as affirmed by the 2005 Attorney General s Opinion. Each day, billion gallons of water pass through our state, but only 4.7 billion gallons, or 1.75 percent, are consumed. Efficient water management is key to the survival of agriculture in Washington as well as to our state s economic prosperity. Freeing farmers from the fear of relinquishing their water rights due to non-use will foster more efficient use of water and unlock additional options to keep agriculture strong enough to continue providing the food and fiber necessary to feed and clothe the world. An irrigation system waters a hay field in Eastern Washington.

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14 The history, economy, culture, and the future of Washington state to a large degree all involve agriculture, which is vital to the economic wellbeing of the state. The legislature finds that farmers and ranchers are responsible stewards of the land, but are increasingly subjected to complaints and unwarranted restrictions that encourage, and even force, the premature removal of lands from agricultural uses. The legislature further finds that it is now in the overriding public interest that support for agriculture be clearly expressed and that adequate protection be given to agricultural lands, uses, activities, and operations. RCW PO Box Carpenter Road NE, Suite 301 Lacey, WA Phone: Toll free: Fax: