2010 CHS Legislative Positions Climate Change CHS is urging Congress to end federal legislative and regulatory efforts to mitigate greenhouse gas emissions. The projected annual cost to CHS from the Waxman-Markey Bill passed by the House would be $685 million or an extra 50 cents on every gallon of fuel and an estimated energy cost increase of $7 per acre for crop and livestock producers. If a climate change bill is approved, CHS believes refiners should not have to account for greenhouse gas emissions in the fuels they produce, that a carbon tax would be preferable to a cap-and-trade system, and that agribusiness and small refiners need financial assistance to comply with bill mandates. Agricultural Taxation Congress should continue tax credits for renewable fuels production and blending and restore a 9 percent manufacturer tax break to farmer-owned cooperative refiners. CHS is also calling on Congress to maintain the ability of farmer-owned cooperatives to use the “last-in, first-out” (LIFO) accounting method for refinery inventories. Protecting Cooperatives Congress must protect and support the Capper-Volstead Act and related laws that allow farmers and ranchers to join in cooperative efforts. CHS Director Randy Knecht, Houghton, S.D., left, outlines the cooperative’s 2010 legislative agenda for U.S. Sen. Tim Johnson (D-S.D.). New Voice Along with changes in administrations, congressional players and issues, the CHS board’s approach has evolved since early visits. Positions are fine-tuned, background papers are prepared on each representative or senator, and succinct messages and leave-behind materials are created to make the most of limited time. Although conversations on major issues such as climate change legislation and agricultural programs dominate the visits, occasionally directors must build understanding and support for less controversial technical issues important only to cooperatives. Tenacity often wins out. It took a decade before a modest change in cooperative dividend allocation tax law won passage as an add-on to a more significant piece of legislation, resulting in higher patronage returns. Knecht believes the key to success is being a voice congressional staffers don’t hear every day. “We’re both agricultural producers and constituents,” Knecht says. “I’m able to share how a piece of legislation is going to affect me and other producers.” While the four-person CHS Government Affairs team works on issues year-round and maintains strong relationships with industry and trade associations, the annual board visit sets CHS apart from other companies. “Directors bring credibility and reliability that’s appreciated by staffers,” says Bob Looney, vice president, CHS Government Affairs. “They’re recognized as being educated on their issues and not just stating positions, but providing solutions. Twenty years of visits has created that reputation. “We get results from this,” he adds. “The directors help facilitate continued contacts with these offices and help open doors for us at regulatory agencies and legislative offices throughout the year.” CHS has gained respect as an information source, Looney says. Legislative staff members call the CHS Government Affairs team to ask how a bill revision might affect an individual farming operation or agribusiness, or they may ask for background information to better understand a constituent’s concern. And CHS is regularly invited to testify on Capitol Hill and participate in agency meetings. 24 May/June 2010 CHSINC.COM