MINUTES LOUISIANA RICE GROWERS ASSOCIATION Board of Directors Meeting February 26, 2009 Officers and Members Present: President Jeff Durand, Vice-President Christian Richard, David Habetz, Jimmy Hoppe, David LaCour, Phillip Lamartiniere, Jackie Loewer, Thomas Mayes, Hine Unkel, and Jim Watkins Officers and Members Not Present: Damian Bollich, Ross Hebert, David Morein, John Owen, Jeffery Sylvester, Fred Zaunbrecher, and Mark Zaunbrecher Ex-Officio Members Present: Clarence Berken and Linda Zaunbrecher Others Present: Adam Habetz and Bruce Schultz Staff Present: Randy Jemison and Steve Linscombe Call to order, certification of quorum, review of agenda, approval of September 23, 2008 minutes, and opening comments: President Jeff Durand called the meeting to order at 6:34 pm and certified that a quorum was present. He asked that State NRCS Technical Advisory Committee Report be added to the agenda under Committee Reports and that a discussion of 2006 Hurricane Indemnity Program be added under Other Business. MOTION by Jackie Loewer; seconded by Jim Watkins To approve the agenda as amended by President Durand To approve the minutes of the September 23, 2009 board meeting FINANCIAL STATEMENT Jeff Durand rendered the financial statement as of February 19, 2009 indicating that cash and bank accounts totaled $81,088.37 with no liabilities. Durand further noted that he expects revenue to be down about $1,000 from what was budgeted due to a decision by Vermilion Rice Growers to not sell directory ads this year in light of the difficult economic times in their parish caused by 2008 tropical systems. MOTION by David Habetz; seconded by Jackie Loewer To approve the financial statement as presented
MEMBER BENEFITS PROGRAM UPDATE Jeff Durand said that total revenue sharing from the United Networks medical benefits program to date was $3.50 and indicated that the company representative had encouraged him to distribute more of the benefit cards and to ask members to use the program more often. The board decided to offer the cards to anyone who could benefit from the program as revenue sharing generated would benefit LA Rice Growers Association (LRGA). STANDARDIZED MARKETING CONTRACT Jimmy Hoppe reported that the mills he had spoken to regarding development of a standardized contract had indicated that they would rather work with rice growers on a case by case basis to execute contracts that were acceptable to the grower and the mill. Following board discussion of the issue, which focused on the variability in grade premiums and discounts used by LA mills, Hoppe indicated that he would ask all of the members of the standardized contract development committee to meet with millers in an effort to develop a consensus on the issue. COMMITTEE REPORTS Prior to receiving committee reports, Jeff Durand announced that Fred Zaunbrecher was appointed to represent the rice industry on the LA Ground Water Task Force. He noted that Jackie Lower currently serves on the Ground Water Commission as a citizen representative. Blackbird In the absence of Ross Hebert, David LaCour reported that the DC 1339 baiting project commenced about two weeks earlier and recent warm weather had caused some of the blackbirds to leave the area. Water Resources Report David LaCour reported that approximately 30,000 acres of rice would not be planted in Vermilion parish in 2009 due to toxic salinity levels caused by the 2008 tropical systems. Clarence Berken reported that repairs to the hurricane-damaged Catfish Locks in Jeff Davis Parish had been completed by the Corp of Engineers on February 13, 2009. NRCS STATE TECHNICAL ADVISORY COMMITTEE Jeff Durand gave a brief report on the committee s recent meeting, noting that Equip funding for LA is projected to be about one-half of the prior year s level. He encouraged growers to become involved in local Natural Resources Conservation Service (NRCS) discussions, hosted by their local Soil and Water Conservation Districts, to ensure that agriculture concerns are made known and ultimately receive necessary funding to address the concerns. WORKING WETLANDS INITIATIVE UPDATE Jeff Durand reported on key outcomes of the January 23, 2009 Working Wetlands meeting hosted by LSU AgCenter and LRGA. Durand noted that the participating groups were in general agreement that conversion of existing working wetlands (rice-crawfish system) to other uses, either non-agricultural or to other crops, was a key threat to water bird habitat and that the value of rice and crawfish production to the habitats should be recognized and to explore sources of funding to offset input cost of the production systems. Durand noted that during recent discussions with NRCS in Washington, D.C., NRCS seemed receptive to the idea of a funding program for working wetlands.
FARM BILL UPDATE - GOVERNMENT AFFAIRS CONFERENCE Jackie Loewer reported on LA rice industry activities during the USA Rice Government Affairs Conference in Washington, D.C., February 9-12, 2009. He also reported on issues growers have encountered during the ongoing Farm Service Agency (FSA) program signup period and the efforts to engage national and state level FSA staff, USDA, and the administration to mitigate the issues. BULK LOADING FACILITY Clarence Berken reported that activity on the bulk loading grain facility project at the Port of Lake Charles remains on hold while port and state officials deal with the Shaw Group Inc. and Westinghouse Electric Company project. Berken noted the LA Commissioner of Agriculture, Mike Strain, has requested that the principles involved in the bulk loading facility project meet with him to bring him up to speed on the project and that the meeting would be held shortly. FSA COMMITTEE APPOINTMENTS Jeff Durand reported that he had been contacted by John Earles, a rice and sugar producer of Avoyelles Parish, asking that LRGA support him for reappointment to the State FSA committee. David Habetz stated the he had been contacted and asked to consider serving on the committee. Following board discussion, the board agreed that it would be beneficial to have a rice grower serve on the committee and took the following action. To send a letter to Senator Landrieu and to Congressman Melancon urging their support for the appointments of John Earles and David Habetz to the LA state FSA Committee LOUISIANA SEED RICE GROWERS ASSOCIATION Jeff Durand reported that Dr. Johnny Saichuk had asked LRGA to consider establishing a seed rice growers committee. During board discussion, it was noted that although there is a state organization of seed rice growers, the group has become somewhat inactive and often is without a quorum at their meetings. The board agreed that an active organization of seed rice growers could be beneficial to the industry and took the following action. To authorize the president to establish a seed rice growers committee if the current seed rice grower association is dissolved
DISCUSSION ON NEW RICE PRODUCERS ASSOCIATION The board discussed the recently announced formation of the LA Independent Rice Producers Association and explored possible reasons for interests in formation of a new grower group. The board discussed steps to address the formation of the new group. It was the consensus of the board that formation of another producer organization would be divisive to the industry. The board agreed that it needed to ramp up communications in an effort to educate all growers, whether LRGA members or not, on the value of and benefits provided by LRGA. MOTION by Jackie Loewer; seconded by Christian Richard To authorize the president to engage Bruce Schultz to write periodic articles highlighting LRGA activities and to run the articles in Farm and Ranch magazine and other print media MOTION by David LaCour; seconded by Jackie Loewer Directing board members and/or parish presidents to route LRGA board minutes to parish members via email following each meeting OTHER BUSINESS AgCenter Budget Discussion Clarence Berken reported on rice and other ag commodity efforts to address the dismal budget projections faced by the AgCenter. He noted that he and Jackie Loewer would be meeting with members of Governor Jindal s administration to discuss the issue. FSA Hurricane Indemnity Program (HIP) Clarence Berken reported that FSA offices have been contacting growers that received HIP payments in 2006 and informing them that the payments have to be repaid. FSA states that a recent Office of the Inspector General audit ruled that the 06 HIP payments were for hurricane impact only and that LA impacts were the result of drought. Berken has asked the USA Rice Federation to investigate what caused the repayment request and what can be done to reverse the ruling. He also noted that LA State FSA Director, Willie Cooper, is making efforts to address the issue. Environmental Protection Agency (EPA) Rice Tour: Steve Linscombe reported that there is interest in hosting and EPA tour of the LA rice industry to educate officials regarding regulatory issues faced by growers and the environmental benefits of rice production. Durand asked if the board would be willing to share in the expenses of the tour with others. Linda Zaunbrecher said the LA Farm Bureau Federation (LAFB) had approved payment of a portion of the EPA expenses.
To approve sharing with LAFB the expenses of an EPA tour of the LA rice industry Natural Resources Defense Council (NRDC) Petition to Cancel 2,4-D: Steve Linscombe reported that NRCD had petitioned EPA to cancel all registrations for 2,4-D and that he had met with EPA officials in Washington, D.C. regarding the issue. Linscombe noted that EPA officials indicated that they often receive such requests and did not seem overly concerned about the petition. ELECTION OF OFFICERS MOTION by Christian Richard; seconded by Hine Unkel To reelect the entire slate of officers by acclamation including Jeff Durand - president, Christian Richard - vice-president, and Damian Bollich - secretary/treasurer There being no further business, the meeting was adjourned at 10:06 pm.