ABA Challenges Farm Credit System

The American Bankers Association has called for congressional hearings into the Farm Credit System. ABA President Frank Keating, a former governor of Oklahoma, told Brownfield Ag News this month that the system was a product of the Great Depression, and its loaning practices were no longer specific to agriculture.

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‘Fast Track’ Trade Moves Forward

The U.S. Senate Finance Committee last week approved legislation granting presidential authority to negotiate international trade agreements. The bill, the Bipartisan Congressional Trade Priorities and Accountability Act, or the fast-track bill, gives lawmakers the right to set negotiating objectives but restricts them to a yes-or-no vote on trade deal.

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New Chairman at Art’s Way

Art’s Way Manufacturing Co., Inc. announced that Marc McConnell has been named Chairman of the Board of Directors.

McConnell has served on the Board of Directors of Art’s Way Manufacturing since 2001 and as Vice-Chairman since 2008. Along with the succession plan previously announced, J. Ward McConnell Jr. was elected Vice Chairman of the Board of Directors. McConnell has served as a director of the company since 1996.

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Farmers Fight to Keep Their Raisins

The U.S. Supreme Court heard arguments last week in a case brought by farmers from California challenging a decades-old law that requires they surrender to the government a portion of their raisin crop.


Justice Samuel A. Alito, Jr., challenged that argument: “Could the government say to a manufacturer of cellphones, ‘You can sell cellphones; however, every fifth one you have to give to us.’ Or a manufacturer of cars, ‘You can sell cars in the United States, but every third car you have to give to the United States.’?”

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Congressman Introduces Flexibility to Farm Act

U.S. Congressman Tim Walberg (R-MI) introduced last week the Flexibility to Farm Act to correct what he characterizes as overreach by the Environmental Protection Agency through the Clean Water Act.

“When the EPA wants to regulate mud muddles,” he said, “it’s clear the agency is wading into territory that goes beyond reasonable environmental protection and only adds more red tape for Michigan farmers.”

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Titan Machinery Reports Weak Quarter

Numbers released by Titan Machinery in April showed revenues down for the fourth quarter of FY 2015 compared to the same quarter last year. Overall revenue was 31% lower than the same quarter last year. In breakout categories, the company reported about a 34% decline in equipment sales, a 17% decline in parts, a nearly 19% decline in services, and an 8% decline in rentals.

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Drought in California Draws Attention to Agriculture

I can’t help but think that what ultimately happens in California regarding ownership of groundwater—whether municipality or privately owned—will migrate eastward to the Midwest, serving as a template for law,” wrote Jerry Gulke in Forbes. “Colorado, Nebraska, and Kansas have had an ongoing controversy over agriculture water rights with regulations of water usage already in place to some degree. One would think it prudent for agricultural residents of those states to keep a watchful eye on the evolution of water rights emanating out of California.”

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AGCO Cuts Factory Hours

Agco has lowered its sales expectations for the year and cut its factory hours by 21%.


Agrimoney reported Tuesday that the maker of Massey Ferguson and Fendt machinery told investors its initial sales forecast of a 15 to 17% decline has been revised to a 19 to 21% drop in sales.

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NAEDA Names 2015 Award Winners

The North American Equipment Dealers Association (NAEDA) announced last week recipients of its 2015 Dealer’s Choice and Gold Level service awards for 2015. The annual awards honor manufacturers who receive exemplary ratings in twelve categories addressed in NAEDA’s Dealer-Manufacturer Relations Survey.

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Suit Over Water Runoff Frustrates Lawmaker

A lawsuit has been filed by public utility Des Moines Water Works against three Iowa counties, alleging that tile systems, or underground tubes that route water runoff from fields, channel nitrates into the Raccoon River and pollute a source of drinking water for Central Iowans.

The move so frustrated a lawmaker that he called for constituents to boycott Des Moines. Sen. Randy Feenstra (R) wrote an online commentary saying “I firmly believe that the power of our agricultural community needs to stand up against Des Moines.”

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Crackdown in the Works on Abusive Patent Demand Letters

The U.S. House Energy and Commerce subcommittee approved a bill last week that would crack down on abusive patent demand letters. The Hill reports the bill was sent to the full committee on a party-line vote of 10-7, but is still far from being enacted.

The bill would provide more disclosure requirements in patent demand letters and allow the Federal Trade Commission to fine companies that send abusive letters, which advocates say are a major tool of so-called “patent trolls.”

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Dynasty Trust: Tax Savings or Economic Disaster?

The Farm CPA Paul Neiffer raised a question recently in the Top Producer about the merits of a dynasty trust—a perpetual trust that could serve as a vehicle to keep farm ownership in families for several generations.

Professor responds, “I can think of no other event or series of events that would be as devastating, long-term, to our economic system, particularly in agriculture, as widespread use of such a trust.”

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Beware of Ransomware

Ransomware is not new among technological threats but has become more sophisticated. The programs seize your files and encrypt them, then send a message asking for payment. Some ransomware threatens to delete the encryption keys if a company does not respond quickly enough, reports PC Mag.

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Lawmakers Consider Dealer-Specific Bills in Louisiana, Oregon

This week the Louisiana State Senate passed SB-263, a bill which modifies present law dealing with relationships between equipment dealers, manufacturers and suppliers.

In Oregon last week, the House of Representatives passed HB3164, a bill introduced at the request of the Pacific Northwest Dealer Association that
changes conditions by which farm implement suppliers may, with good cause, terminate, cancel or not renew retailer agreement or change retailers’ competitive circumstance

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House Votes to Repeal Death Tax

The House voted 240-179 to repeal the federal estate state. Estate tax bills can force families to sell assets including businesses to raise money to pay the government. The federal tax rate on estates is 40% of the value of the estate, although there are exemptions.

Our Association supports not only the repeal of the estate tax but also the alternative minimum tax. The Association further supports the continuation of a step up in basis at the time of death and increasing the gift tax exemption amount. We continue to supports a tax system that has a balanced approach to taxation that includes fair and reasonable personal and corporate tax rates.

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Deere Draws Fire for Copyright Argument

“In a particularly spectacular display of corporate delusion,” Kyle Wines wrote, “John Deere – the world’s largest agricultural machinery maker – told the Copyright Office that farmers don’t own their tractors. Because computer code snakes through the DNA of modern tractors, farmers receive an ‘implied license for the life of the vehicle to operate the vehicle.’”

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Sukup Manufacturing Acquires Dancorn

The Federal Aviation Administration has granted requests from 41 companies seeking to use drones in agriculture.

The FAA is working on a case-by-case basis to authorize the use of drones for commercial purposes until a rule governing use of unmanned aircraft systems is final.

Topcon Positioning Systems, Inc., a member of Farm Equipment Manufacturing Association, just announced it received an FAA exemption to operate Sirius Basic and Sirius Pro for aerial data collection.

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Economic Indicators Remain Weak

Creighton University released survey findings in April that confirmed sales of farm machines and prices for farmland continue to be weak. The report showed negative sales prospects on machinery for the 21st consecutive month, although the index rebounded slightly from its historic low of 15.2 in March to 15.6 in April.

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Steel Industry Seeks Recourse

U.S. steelmakers struggling to compete with overseas exporters of the metal are taking their case to Congress. The industry seeks a revision in the way in foreign trade complaints are reviewed.

The domestic steel industry recently has idled 32% of its capacity, according to reports, and U.S. raw-steel output is down 14% this year. U.S. steelmakers are being pinched by a strong dollar, which makes it possible for foreign producers to spend less in production hence net more in sales, and a geographic shift in demand. The U.S. needs more steel as demand levels off in China and remains flat in Europe.

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Merwitz Returns to PEER Chain Company

Industrial chain provider PEER Chain Company has announced that Arthur Merwitz will return to PEER as power transmission product manager. Merwitz joined PEER Chain in 1996 and served as regional sales manager, OEM sales manager, and vice president of strategic sales. He left PEER in 2012 to pursue an MBA with a focus on international business.

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Lawmaker Introduces Bill on GMO Labeling

U.S. Rep. Mike Pompeo (R-KS) introduced legislation in March to guard against a state-by-state food labeling system on genetically modified ingredients.Residents in nearly 30 states are asking their state leaders to require warning labels on foods that contain these ingredients derived from biotechnology. In response to this movement, Pompeo introduced The Safe and Accurate Food Labeling Act of 2015. In a news release announcing the bill, he said a state-by-state labeling system would impede interstate commerce, discourage innovation among farmers, and mislead consumers about the safety of the food supply.

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ASABE Adopts New Standard for Linkages

The American Society of Agricultural and Biological Engineers recently adopted an amended international standard related to rear-mounted, three-point linkages in tractors.

The new standard is ANSI/ASABE AD730:2009 W/Amd. 1:2014 – Categories 1N, 1, 2N, 2, 3N, 3, 4N and 4. It includes link coupler illustrations and hitch data for larger tractors equipped with 45 mm PTO shafts, which were added in the July 2014 Amendment 1 to ISO 730:2009. This adoption replaces the 2012 adoption of ISO 730:2009.

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An Introduction, Invitation

Your gift, in broad terms, is to manufacture innovative equipment for farmers. You succeed through your own smarts but also through relationships and knowledge of goings-on in the industry. That is where the Farm Equipment Manufacturers Association and I come into play.

I found my niche as a writer and editor, and I joined the Farm Equipment Manufacturers Association to spend my days gathering and distributing news relevant to Association members. You and I can work together on this.

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EPA Clarifies its Clean Water Rule

After a year-long review that included 400 meetings across the United States and feedback from more than a million people – farmers, manufacturers, hunters, and anglers – the Environmental Protection Agency, with the US. Army Corps of Engineers, submitted this month a revised Clean Water Rule to the U.S. Office of Management and Budget.

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Trying to Get it Right in Wisconsin

For the past two years, the farm equipment industry has been watching attempts by local governments in Wisconsin, via the state legislature, to place restrictions on limited use farm equipment on public roadways. They sought a permit process that we believed would not work. We have been involved, with many other industry groups, because it matters to our members and farmers in Wisconsin, and it matters in every state where farmers must move large, modern farm equipment on local roads.

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Member Committees: Shaping Association’s Direction

The Farm Equipment Manufacturers Association serves as the collective voice of members and provides resources so members can continually learn and engage in industry developments. The Association belongs to you, so it is fitting that you help shape its direction.

Association members serve on committees designed to assure continued success among our 742 member companies. In this issue, we thank the members who give their time to committee work and encourage every member to share suggestions on how the committees can meet their objectives.

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NLRB Rule Changes Timeline for Union Elections

A new rule from the National Labor Relations Board that compresses the timeline in which workers can hold union-organizing elections is effective this week.

Opponents have dubbed this the “ambush election rule” because organizers could hold a union election in less than 14 days after a petition is filed. The previous rule called for at least 25 days. The new rule also provides for electronic filing and requires employers to include contact information for workers.

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