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For the fifth year in a row (1996 to 2000 data), the rural Great Plains can lay claim to being the poorest region in the nation. For the fifth year in a row, Nebraska is home to some of the lowest income counties in the nation. According to 2000 data, rural Nebraska has half of the 10 lowest income counties in the nation (see the table below).

The Nation's Poorest Counties

* Rank is among the 3,110 counties in the nation, with 1 being the county with the lowest per capita income. Data is from the U.S. Department of Commerce, Bureau of Economic Analysis.

The 2002 Farm Bill – the nation’s primary statement as to rural and agricultural policy – did little to address this issue. In general the Farm Bill provides more funds for more study and small grants to economically distressed communities.

This should be a topic of great debate, the potential ramifications to a society where income and wealth is so unevenly distributed, where the hard and necessary labors of some in rural communities are so undervalued by many elsewhere.

The fact that some of those who provide our daily bread earn nearly 1,400 percent less for their labors than those in the richest areas of the nation should be a matter of major concern.

Contact: Jon Bailey, jonb@cfra.org for more information.

Government for the Common Good

The effort of those who work the land to own it and control the fruits of their labor is the central story of the settling of the Great Plains. Its essential lesson is that ordinary people fighting for fairness and justice can win over powerful forces through courage and persistence.

That history is recounted in Mari Sandoz’s Love Song to the Plains. In 1894 British cattle companies driven from Wyoming moved into the scantly settled Sandhills with a vengeance.
“Within a month,” wrote Sandoz, “four homesteaders were found dead, shot at the plow, the mower, anywhere, but always on their own land, to make it clear that it was the claim-holding, the homesteading, that was the death offense.”

The cattle companies fenced the public lands and paid old soldiers to file claims on their behalf in clear violation of law – protected by control of courts, the buying of political influence, and sheer intimidation.
But many homesteaders refused to be intimidated. The most courageous, men like O.F. Hamilton, contested the phony homesteads and testified against the lawbreakers. Hamilton paid a hefty price, murdered in cold blood in the back room of a Mullen saloon in 1908.

But Hamilton and the homesteaders prevailed. President Theodore Roosevelt ordered the arrest of George Ware, a leading cattle company boss, for fencing public lands. When Ware was let off with a small fine and taken to a champagne dinner by the federal marshall in Omaha, Roosevelt fired the marshall and replaced him with a man who would enforce the law. The cattle companies were removed and individual settlers controlled the Sandhills and built the ranches there today.

Many folks back then said the big outfits controlled the courts and the politicians and those who resisted were nuts. Those folks were wrong. The great stories of history are of people taking on powerful forces against the odds to win fundamental changes in society and shifts in direction.

Ordinary people of conviction who fight for what is right with persistence like the Sandhills settlers and O.H. Hamilton can ultimately prevail. Today, we need statesmen like Teddy Roosevelt in positions of power.

But for such statesmen to grow, they need the fertilizer of thousands of ordinary people persistently demanding that government serve the common good. That is the source of true leadership. That is what makes history. And only that will write a new story for Rural America.

Agree or Disagree? Send your comments to Chuck Hassebrook, chuckh@cfra.org.

New Proposal Seeks to Force Open the Livestock Market
Senator Grassley’s Transparency for Independent Livestock Producers Act receives Center for Rural Affairs support.

The Center is joining in support of Sen. Charles Grassley’s (R-IA) latest effort to guarantee a share in the marketplace for independent livestock producers.

In August, Sen. Grassley put forward a legislative initiative titled The Transparency for Independent Livestock Producers Act. The legislation outlines a structure for requiring meatpackers to purchase a certain percentage of livestock (cattle, sheep and hogs) on the daily open market.

The Senator’s purpose for the legislation is to increase competition between packers, provide consistent information for the Mandatory Livestock Price Reporting Program, and provide assistance to producers in determining appropriate contract pricing.

Grassley’s proposal steps up the percentage of open market purchase requirements in two-year intervals. The intervals go from 5 percent by January 1, 2004, to 15 percent by January 1, 2006, and finally to 25 percent by January 1, 2008.

Other specifics of the Senator’s proposal include:

• Applies only to packers large enough to be required to report daily live animal prices to USDA (those that kill either 125,000 cattle, 100,000 hogs or 75,000 lambs annually over a five year average).

• Exempts single plants with no affiliation to larger packing entities.

• Spot market purchase percentage requirements can only be purchased from non-affiliated producers (those holding less than 1 percent of the equity in the packer).

• Does not preempt state law regarding packer feeding of livestock, allowing state law to be more restrictive.

The Center remains fully committed to ensuring the nation’s independent and family-scale producers have fair access to an open market. And that is why our organization endorses this proposal and others like it. We will make every effort to see that such proposals become law.

Contact: Brad Redlin at the Center, bradr@cfra.org for more information.

Servant Style of Leadership Builds Leaders from Within
A highly regarded form of leadership, a “servant leader” shows others the way through example. We provide an actual case.

Recently, the process of community revitalization and leadership has intrigued me. It seems that those people who say they are going to do something do little, while others sit idly by and go nowhere. It seems hopeless at times. Last month though, something changed my opinion of volunteerism forever.

While hosting a town hall beautification meeting, a gentleman walked in. This person’s outward appearance didn’t command attention. He simply sat down and listened to a group of concerned citizens who wanted to make the entrances to town a little prettier.

After two hours of discussion, the man spoke up. He offered to help and to contribute financially if needed. This even though the community had continually shunned him and never asked him to contribute or be a part of it.

Given the opportunity and the right guidance, this person found a chance to be involved in the community and to help it to grow. He understood the role of being a servant. The next morning he walked with the group and started making plans to beautify various parts of town.

This is all too common throughout small rural communities. A few individuals do most of the leading. Often they need more help, but they don’t know how to go about getting it. And getting the involvement in planning is as important as getting the work done.

Servant leadership is highly regarded as a process that builds leadership from within. Leading people requires being able to serve others. Think of the analogy that you truly can’t communicate unless you know how to listen. People can develop the skills to lead this way. By leading in example, others will follow.

Through Project HOPE the Center is helping to develop leaders and to revitalize small rural towns. People like our volunteer above are coming forward. This hidden leadership will be the difference between whether the town lives or dies.

Contact: Michael L. Holton, michaellh@cfra.org for more information.

Corporate Farming Notes
When E. coli beef is recalled, what becomes of the tainted beef? The President bypasses the Senate in a controversial Undersecretary of Agriculture appointment.

At least 68,000 pounds of E.coli-tainted beef linked to an 18.6 million pound ConAgra recall may turn up on dinner tables as ready-to-eat canned chili, meat spaghetti sauce, beef ravioli, or some other meal.
A company spokesman said that meat returned as a result of the nation’s second largest recall in history would be cooked and turned into food for people or pets or into nonfood products.

The ConAgra spokesman stated, “I think we can say any product that is cooked per the guidelines established by the USDA and recommended by the Colorado Department of Health is perfectly safe for human consumption and to indicate otherwise is irresponsible.”

Federal records show that last year ConAgra intercepted 20 tons of E. coli-tainted meat from its Greeley plant that was destined to become hamburgers at a national fast-food chain. The meat was eventually reboxed, labeled “For Cooking purposes only” and shipped to International Home Foods, Inc., a ConAgra-owned company located in Pennsylvania.
Source: David Migoya, Denver Post

In August while the Senate was in recess, President Bush granted Thomas Dorr a recess appointment to a top agriculture department post. This means that Mr. Dorr, a Marcus, Iowa farmer, can serve as Undersecretary of Rural Development through next year without being confirmed by the Senate.

In a sign that Washington sometimes listens to the grassroots, the Agriculture Committee all but doomed Dorr’s hope for confirmation when it sent his name to the Senate floor with no recommendation. Dorr’s nomination hit a snag because of questions about his support for a corporate style of agriculture and past comments he made that were insensitive to minorities.
Source: Des Moines Register

Contact: Jeff Fiegenschuh, jefff@cfra.org at the Center for more information.

The Center has joined a coalition protesting the proposed DirecTV-EchoStar satellite television merger. The coalition is headed by the National Rural Telecommunications Cooperative. The merger would create a monopoly in a service sought by millions of rural households.

Nearly a third of all rural households do not have access to cable television, often making satellite television their only option for news, weather, and entertainment. Monopolies on the scale as would exist under the proposed merger invariably lead to higher prices, less innovation, and lower quality service. A Yale University study states that the merger will lead to a 72 percent price increase for satellite television services in the Upper Midwest.

We normally don’t work on rural television service, but this proposed merger raises the specter of a larger issue – the continued loss of competition in rural life. Whether in agricultural markets, retail shopping, or television services, the lack of competition often has negative affects on rural people and rural communities.

The proposed DirecTV-EchoStar merger is now being reviewed by the Federal Communications Commission and the U.S. Department of Justice. We will keep you advised as this proceeds through the halls of the nation’s capital.

Introduction to Direct Marketing

Direct marketing of value-added agriculture products is a strategy many farm and ranch families depend on to enhance personal income from their operations. Direct marketing of niche products is also one way to break the cycle of commodity pricing that is driving many producers from the land.

A value-added product is the result of changing the form of farm/ranch products to increase their value to the consumer. Examples include taking an animal and making it into meat products; taking berries and turning them into jam; taking soybeans and turning them into soybean oil and soybean meal. The list of value-added products is endless.

Two keys underlie success in direct marketing:

1. Cut out most of the “middlemen” and retain their portion of the consumer dollar (processing, packaging, marketing, etc.).
2. Concentrate on a niche where consumers are willing to pay a premium to get what they want directly from the farm/ranch.

When becoming involved in direct marketing of value-added products, one question that needs to be answered quickly is, “What type of business is best for me?” There is no simple answer to the question.
Business structures available to the farmer or rancher include sole proprietorships, general partnerships, limited partnerships, corporations, cooperatives, LLC’s, LLP’s, S-Corporations, and so forth. Each business structure has pros and cons, so it is vital to get basic information on each before selecting the one that provides you with maximum benefits.

If you are considering an effort to market value-added products from your farm or ranch, feel free to contact the Center. Staff would be proud to help you get started in the business of direct marketing value-added products.

Contact: Mike Heavrin at the Center, mikeh@cfra.org by phone 402.846.5428, extension 15 for information.

Power Plant Spurs Citizen Action
A new citizen’s group forms to advocate for renewable energy in Hastings, NE.

The Hastings Utility Board’s decision to plan a major expansion of its coal-fired generating plant is fueling local concerns about how public power boards make decisions. Public power entities in Nebraska have a mandate to “provide reliable power at the lowest cost.”

Evidence of global warming and unusually high mercury levels in local lakes sparked some Hastings citizens to question the wisdom of continuing and/or expanding the use of coal to generate electricity.
Members of the newly formed Citizens for Renewable Energy question why external costs are not weighed, or renewable energy sources not considered.

Charles Richardson, one of the organizers says, “We are all stakeholders in our public utilities. Health, environment, and local economic impact should all be considered when making long-term energy plans.”
A panel of speakers discussed renewable energy alternatives, especially wind power, before an audience of more than 60 people at the August 18 information meeting.

Bill Leung, Nebraska Municipal Public Power, discussed the development of the seven 1.5-megawatt turbines at the Kimball site. Martin Kleinschmit, Center for Rural Affairs, discussed climate change and what that would mean for farmers/ranchers and communities.

Jennifer States, Union of Concerned Scientists, presented background information on wind energy potential in Nebraska. She stated, “Only five states have more wind potential than Nebraska, yet Nebraska lags behind most neighboring states in wind energy development.”

Kate Allen, Legislative Aide to Senator Preister, updated the audience on the status of renewable energy legislation and on the proper protocol on lobbying state senators.

Organizers see renewable energy as an ongoing issue. The group’s goals include: increase understanding of the issues; advance the cause of renewable energy; give people the understanding that they are citizens of a democracy and can and must have an impact on public policy; and define ways they can be involved.

Contact: Citizens for Renewable Energy: Bill and Diane Beachly, 402.463.7655 or Charles Richardson 402.462.4794; at the Center, Martin Kleinschmit, 402.254.6893 or martink@cfra.org .

MIDWEST DIGEST
The FCC is helping low-income consumers with phone service. A national rural symposium is coming to the region in October.

The Federal Communications Commission has kicked off a “Get Connected: Afford-A-Phone” campaign. The campaign is intended to increase participation in “Link-Up America” and “Lifeline Assistance Program,” both federal low-income telephone service discount programs.

Link-Up helps by paying half the initial fee to hook-up to service, up to $30. Lifeline provides a $6.75 to $9.50 per month discount on basic service, depending on the consumer’s state of residence.

Both programs offer greater discounts for eligible subscribers living on Native American and Alaskan Native tribal lands. For more information, contact the FCC at 888.225.5322 or by e-mail fccinfo@fcc.gov . Check the website: www.fcc.gov/cgb/getconnected.

The Rural Policy Research Institute (RUPRI) is holding its National Symposium, Rural Matters: Making Place and Culture Count! at the Arbor Day Farm – Lied Conference Center in Nebraska City, Nebraska, October 16-18, 2002.

Keynote speakers include Nobel Peace Prize winner John Hume and Rural Caucus Co-Chairs Eva Clayton and Jo Ann Emerson [invited], and many others involved in rural affairs.

Those interested in attending should e-mail Michelle Stroh at mstroh2@unl.edu and ask her to reserve your spot. She can also be reached at 402.472.0744.

Interest is high and space is limited, say organizers. For more information, visit the website: www.rupri.org/ruralmatters/

Submit material for the Midwest Digest to: Marie Powell at the Center for Rural Affairs. Marie’s email is mariep@cfra.org.

Success Story: Producers Come to the Aid of Fellow Producers
Donated hay is rolling west on the Orphan Grain Train to help alleviate livestock feed shortages caused by the drought.

The severe drought facing many Nebraska producers has given rise to humanitarian efforts in other parts of the state. “Operation Grain and Hay Lift,” coordinated by the Orphan Grain Train in Norfolk, has delivered approximately 1,254 tons of hay to those who are still suffering from the continued drought.

According to Vern Steinman, manager of Operation Grain and Hay Lift, they are still in need of roughly 2,132 tons of hay and are asking for grain donations as well. Steinman acknowledged that the CRP hay will not have enough protein content for the cows, and therefore, grain will be needed as an additional supplement.

Steinman noted that producers/landowners who would like to donate CRP hay to drought-stricken producers could do so without any acre payment penalty. The Orphan Grain Train has volunteers lined up who will provide the equipment and labor to harvest the hay as well. Anyone interested in donating hay may contact Steinman at 402.640.5528.

Other ideas surfacing to assist families facing financial hardships induced by the drought include:

• Encouraging farmers in other areas to open their irrigated fields for grazing over the winter months. This could help prevent further herd liquidations.
• Encouraging farmers who cannot run cattle on their land to bail their stalks from irrigated acres and donate them to producers needing livestock feed.
• Establishing a government program to assist producers with the purchase of supplements, such as protein tubs, to make up for pastures lacking sufficient re-growth.

The Nebraska Department of Agriculture is also trying to help those experiencing the hardships associated with drought. They have collected information to direct farmers and ranchers to drought-related resources including hay, pasture, counseling, and financial resources. You can access the information toll free at 1.800.422.6692 or via the web at www.droughtcentral.org .

Contact: Traci Bruckner, tracib@cfra.org or 402.846.5428, ext. 21 for information.

Editor: Marie Powell