June 7, 2007 THIS WEEK:Citing the urgent need to ensure an adequate labor force for American agriculture, the American Farm Bureau Federation (AFBF) Board of Directors has voted to strongly support the Senate’s bipartisan compromise immigration reform proposal. For more information, contact Ryan Findlay (800) 292-2680, ext. 2025.

Gov. Jennifer M. Granholm has declared June as “Michigan Horse Racing Month” to honor the state’s 74 years of horse racing history. Her declaration marks the first time Michigan has celebrated a month devoted to the state’s horse racing industry. For more information, contact Ernie Birchmeier (800) 292-2680, ext. 2024, or Tonia Ritter, ext. 2048.

June 11-15 — Young People’s Citizenship Seminar at Alma College. Teaches youth about the American Democratic system while enhancing leadership skills. Scott Piggott, (800) 292-2680, ext. 2021 or Lisa Pruden, ext. 3246.

July 17-19 — Ag Expo at Michigan State University. This is the state’s largest general farm show, and showcases the latest in agricultural technology. Dennis Rudat, (800) 292-2680, ext. 6586.

In honor of Michigan’s horse racing history, Gov. Granhlom has declared June as the state’s first-ever “Michigan Horse Racing Month.” Also, the governor reportedly is considering a plan to expand mechanisms for horse race gaming by adding electronic gaming machines to select tracks. See the following press release for details.

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AgriNotes & NewsPublished weekly by the Michigan Farm Bureau Information and Public Relations Division

7373 W. Saginaw Hwy.Lansing, MI 48917

Jill Corrin, ManagerMedia Support ServicesPhone: (517) 323-6585Fax: (517) 323-6541E-mail: mfbinfo@michfb.com

Visit our site on the WorldWide Web! You can nd Farm Bureau at www.michiganfarmbureau.com

AgriNotes & NewsContact:Ryan Findlay(800) 292-2680ext. 2025

American Farm Bureau endorses Senate immigration reform bill LANSING, June 7, 2007 — Citing the urgent need to ensure an adequate labor force for American agriculture,

the American Farm Bureau Federation (AFBF) Board of Directors has voted to strongly support the Senate’s bipartisan

compromise immigration reform proposal.

“Farmers need a comprehensive immigration reform bill approved this Congress,” said AFBF President Bob

Stallman. “We have been pushing for a solution for years and we simply cannot wait any longer for Congress to address

this issue.”

Comprehensive immigration reform, including a viable guest worker program, is one of Farm Bureau’s priority

issues for this Congress. The issue holds serious economic implications for U.S. agriculture. AFBF economists estimate

that up to $9 billion a year in agricultural production is at risk if Congress fails to enact provisions that would provide

agriculture with an adequate, legal work force.

“The Senate bill provides immediate relief to farmers in assuring a stable work force,” Stallman said. “We hope

that, in the end, it will provide a reliable legal work force that American agriculture will need in the future to ensure

food security for our nation. We will continue to look for opportunities to further strengthen the bill, but a lot of hard

work has gone into this compromise effort and it is time to seal this deal for our nation.”

Michigan impact Immigration reform is vital to Michigan’s agriculture industry because many of the commodities produced in the

state, particularly fruits and vegetables, rely on large work forces for specialized hand labor. These jobs, often seasonal

and regional in nature, do not attract domestic workers, so guest workers fill the void.

In recent years, the Michigan agriculture industry has employed about 45,000 guest workers annually, making

Michigan the state with the fourth highest number of guest workers. According to a Michigan State University (MSU)

study, crops that rely on guest workers account for almost 58 percent of the total economic activity generated by the

state’s farm sector and related input supply industries.

Without guest workers, the MSU study predicts the economic output of Michigan’s agriculture industry would

decline by up to $272 million in the short term and up to $362 million long term. These production losses would have a

multiplying effect on local economies as well as state tax rolls.

“Immigration reform is a key component to preserving Michigan’s second largest industry — agriculture,”

said Michigan Farm Bureau President Wayne H. Wood. “Michigan farmers are doing our best to make sure that the

guest workers we do hire are in our country legally but much more can be done to help us on this front. That’s why the

Michigan Farm Bureau is urging our state’s leaders in Congress to pass immigration reform legislation that will establish

a regulated guest worker program and a new electronic ID system for verifying a worker’s legal status.”

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AgriNotes & NewsContact:Ernie Birchmeier(800) 292-2680ext. 2024, or Tonia Ritter, ext. 2048

June declared first-ever Michigan Horse Racing Month; Supporters hope attention drawn to need for enhancing industry Horse racing is $1.2 billion industry in state, supporting 26,200 jobs

LANSING, June 7, 2007 — Gov. Jennifer M. Granholm has declared June as “Michigan Horse Racing Month”

to honor the state’s 74 years of horse racing history. Her declaration marks the first time Michigan has celebrated a

month devoted to the state’s horse racing industry.

“Horse racing is a Michigan tradition that makes an important contribution to our state’s economy,” said state

racing commissioner Christine White. “It’s a very labor-intensive business, requiring hard work and dedication from the

breeders, stable workers, grooms, trainers, drivers and jockeys. Michigan Horse Racing Month is a great way to show

appreciation for the tireless efforts of everyone involved in the industry.”

Michigan Farm Bureau (MFB) livestock specialist Ernie Birchmeier agrees.

“People often don’t immediately associate horse racing and the equine industry with agriculture, but they in fact

have a big presence and play an important role in Michigan’s agriculture industry. The Michigan Farm Bureau applauds

the governor for raising the level of public awareness about this sector of agriculture and giving all persons involved in

horse racing the recognition they rightfully deserve,” said Birchmeier.

The horse racing industry hopes the special month will renew public interest in exploring ways to make the

state’s horse race tracks more competitive with Michigan casinos. Attendance at the tracks has steadily declined as

casinos in Michigan have grown. The horse racing industry backed a movement in 2004 to allow the tracks to add

casino-style video gaming in an attempt to attract new customers, but the legislative effort died when the opposition

successfully passed a ballot measure requiring that new gaming operations be approved by voters at both the state and

local levels.

As a means to boost the state budget and offset an expected decline in government revenue from casinos,

Granholm reportedly is considering a plan that would allow a few Michigan tracks to install gaming machines that would

let customers bet on and then watch races previously run at other tracks. Customers could get information related to

the race before placing bets on the machines, but they wouldn’t get the actual names of the horses or other details that

could reveal the winner.

MFB would support the gaming machines as another extension of existing equine gaming, said MFB legislative

counsel Tonia Ritter, but she cautions that more is needed to preserve and enhance Michigan’s horse racing industry

long-term.

“MFB policy, as developed by our members, supports opportunities to sustain and enrich the state’s horse racing

industry, and the proposed gaming machines are one such opportunity that deserves consideration,” she said. “We still

maintain, however, that the state should explore additional ways to attract new customers to Michigan’s tracks.”

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AgriNotes & NewsMichigan horse racing history and current economic highlights

Michigan pari-mutuel horse racing began in 1933. Pari-mutuel wagering involves a person placing a bet not

against the track but against everyone else who wagers on that particular race. Based on how much is wagered on each

horse to win, odds will change accordingly.

That first year, 31 days of thoroughbred racing was offered at the Michigan State Fairgrounds in Detroit. The first

season attracted 101,227 fans who wagered more than $3.5 million and generated $123,783 in state tax.

Today, Michigan has six licensed pari-mutuel race tracks, including four harness tracks (Hazel Park, Northville,

Swartz Creek and Jackson), one thoroughbred track (Muskegon) and one mixed breed racetrack (Mt. Pleasant). Live

racing is offered yearlong, rotating between the tracks. Simulcast racing is also offered year-round and is available at all

of the tracks.

In 2006, the six Michigan tracks presented a combined total of 1,909 days of live and simulcast racing, attracting

nearly 1.2 million spectators who wagered more than $281 million. The betting generated about $9 million in state

wagering tax revenue and provided local communities with $1.1 million for police and fire protection costs.

Additional economic highlights from the Office of Racing Commissioner’s 2006 annual report follow.

Michigan horse racing is a $1.2 billion industry offering 26,200 jobs, $142 million in personal income and

economic output of $443 million annually.

The state’s horse racing industry generates about $23.5 million annually in state tax revenues and supports

capital facilities worth an estimated $570 million.

Michigan is home to several hundred racing-breed horse farms with 84,000 acres of land solely dedicated

to the 77,000 race horses, totaling a combined expenditure of $231 million annually. This equates to $365

million in economic output and total personal income of $117 million.

The Office of Racing Commissioner licensed approximately 6,516 individuals to participate at some level in

pari-mutuel horse racing in 2006. Of that number, 4,516 licensees permanently reside in Michigan.

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Editor’s Note: Please see the Quick Facts section of this issue of AgriNotes & News for information on horse racing terminology. Look for additional facts about horse racing in the Quick Facts section of AgriNotes & News later this month. For assistance arranging an interview with a local individual involved in horse racing, call Jill Corrin, Michigan Farm Bureau media support services manager, at (800) 292-2680, ext. 6585.

Warmer weather and scattered rainfall continued to improve crop progress across the state for the week ending June 3, aaccording to the Michigan Field Office of the U.S. Department of Agriculture’s (USDA) National Agricultural Statistics Service (NASS). See Table 1 for soil moisture levels.

As shown in Table 2, corn planting essentially finished. Soybean planting was nearly completed with emergence in early planted fields. Dry bean planting expanded. Alfalfa harvest faced some delays in anticipation of rainfall but continued to move forward. Sugar beets continued to progress well with good stands.

Meanwhile, asparagus harvest continued, and the crop was maturing quickly during the warm spell. Sweet

corn growth also accelerated with the warmer air and soil temperatures. The USDA-NASS-Michigan Field Office can be reached at (517) 324-

5300. This information is also available online at http://www.nass.usda.gov/mi.

AgriTipsJune 7, 2007

Editor’s Note: The following story ideas are designed to provide a quick look at the issues affecting agriculture. For more information on any of these subjects, please call Jill Corrin at the Michigan Farm Bureau home office at (517) 323-6585. Or for a local angle from a producer in your area, call Jeremy Nagel at (517) 323-6584.

In a letter this week to the U.S. House and Senate Appropriations subcommittees, American Farm Bureau Federation President Bob Stallman asked the committee members to increase the Carl D. Perkins Act program funding to $1.7 billion. Federal funding for Future Farmers of America and agricultural career and technical education comes from annual appropriations for Carl D. Perkins Act programs.

“FFA provides leadership opportunities and tests,” said Stallman. “We ask for this increase so that this important program can meet the critical education needs of the 21st century economy.”

The administration’s budget reduces the funding for such programs by $687 million.

Contact: Ryan Findlay, (800) 292-2680, ext. 2025

Farm Bureau backs FFA funding

In response to a spike in the price of corn and speculation that food prices will rise as a result, the National Corn Growers Association (NCGA) commissioned Advanced Economic Solutions (AES), a consulting firm, to conduct an analysis on potential impacts.

Under a scenario in which corn prices stay at $3.50 to $4 per bushel for the next several years, AES expects the consumer rate of inflation to increase by 9 to 15 percent (3 to 4 percent annually) during 2007-09. Assuming food inflation would have been 3 percent without the increase in corn prices, this implies a food inflation rate of 6 to 8 percent during 2007-09, according to the analysis.

If the higher price of corn is maintained, the increased cost will be passed on to consumers; however, the impact on consumer food prices is expected to be minor, AES found. For example, one-dollar

worth of food in 2006 would likely cost $1.03 in 2007 absent of the rise in corn prices. With the increase in corn prices, one-dollar worth of food in 2006 might cost the consumer $1.06 to $1.08 in 2007.

The analysis also examined a scenario in which corn prices revert to historical levels. In this situation, the spike in corn prices has virtually no impact on retail food prices, as temporary food input cost increases are absorbed by the “middle-man,” reflecting the competitive nature of the U.S. food industry.

A full copy of the report is available online at www.micorn.org.Contact regarding study: Jody Pollok, Michigan Corn

Growers Association Executive Director, (517) 668-2676; MFB contact on corn issues: Bob Boehm, (800) 292-2680, ext. 2023

Study examines impact of corn prices on food costs

Michigan’s weekly crop and weather

Table 1: Soil moisture for week ending 06/03/07 VeryStratum short Short Adequate Surplus Percent Percent Percent PercentTopsoil 6 16 66 12Subsoil 3 15 77 5

Table 2: Crop progress for week ending 06/03/07Crop This week Last week Last year 5-year average Percent Percent Percent PercentAll hay, first cutting 29 11 30 21Asparagus, harvested 69 56 61 66Corn, planted 97 93 96 91Corn, emerged 85 69 84 69Dry beans, planted 6 2 13 10Potatoes, planted 88 74 92 NAPotatoes, emerged 58 48 62 NA Soybeans, planted 87 67 80 74Soybeans, emerged 64 26 61 44

Owners of eligible trees damaged by fire blight have until June 29 to apply for financial relief through the federal Tree Assistance Program (TAP), the state Farm Service Agency (FSA) has announced.

Public Law 108-83 authorized $9.7 million for TAP specifically for Michigan producers who suffered tree losses because of fire blight from Jan. 1, 2000, through the 2007 crop year which ends Sept. 30.

To qualify for payments, eligible owners must have suffered losses of 15 percent or greater for an individual stand, adjusted for normal mortality (1 percent for Michigan fire blight TAP). Payments are in the form of 75 percent cost sharing to replace the eligible trees within

12 months from the date the TAP application is approved.Due to this special authorization, all eligible applicants with

qualifying tree losses will have to submit evidence of the required replanting by Aug. 31. This is Michigan’s fourth sign-up under this authorization.

For more information or to apply for TAP assistance, tree owners should contact their local FSA office. Additional TAP information is available on FSA’s Web site at www.fsa.usda.gov.

Contact: Ken Nye, (800) 292-2680, ext. 2020 or Ryan Findlay, ext. 2025

Sign-up for fire blight financial relief due by June 29

AgriNotes & NewsFarm BureauQuick Facts

Michigan harness horse racing terms

A standardbred is a harness racing horse that can complete a mile race in 3 minutes.

A quarter horse is a harness racing horse.

A thoroughbred is a breed of horse that races with a jockey.

Age – All standardbreds turn a year older on Jan. 1 regardless of when they were born during the year; thus the age of a horse.

A blanket finish refers to horses that finish so close together they could be covered by a blanket.

The nose is the smallest advantage a horse can win by.

A heat is a race in which more than one running is required to decide the winner.

In a dead heat, judges cannot determine who wins, and the horses are declared as having crossed the finish line at the exact same time.

A photo finish is a finish between two or more horses which is so close a still photograph must be used to determine the order of the finish.

Source: Michigan Office of Racing Commissioner