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(Editor's Note: The following are excerpts from the Administrative Report delivered by TFB Executive Director Vernie R. Glasson to the Texas Farm Bureau State Convention delegation.)
By Vernie R. Glasson
Executive Director
Texas Farm Bureau
"It has been my pleasure to work with the leadership you have elected to serve you, and I will tell you they have managed your affairs very, very well. Over my 15 years as Executive Director, I have witnessed and assisted in many decisions that have seen the organization's unrestricted net assets grow from $8.3 million to the $15.1 million shown in this report.
"I can tell you that the end of the 2004 fiscal year will show an ever larger gain—to well over 100 percent growth in the last 16 years that I have served as Executive Director.
"Membership in the last 16 years has grown from 331,000 to more than 383,000 member families. Insurance services to member programs have enjoyed great success. As an example, the one-time fledgling Texas Farm Bureau Mutual Insurance Company has grown from some $15 million in surplus in 1989 to over $100 million at year's end. The Casualty operation will end this year at more than $550 million in surplus up from some $200 million in the early 1990s.
"I am proud of this kind of growth, and I believe it is a testament to the "team concept" that Farm Bureau has between the Board of Directors and management. We work, plan, evaluate and enjoy our success as a team. No one individual or group of individuals shoulders our success alone.
"The financial viability of Texas Farm Bureau and its affiliated companies is strong, and we are positioned well for many years to come. Other member service programs continue to provide excellent benefits for Farm Bureau members. The Dodge Rebate program, as an example, provides more dollars returned to Texas Farm Bureau members than any other state Farm Bureau in the nation.
"Every month between 500 and 600 Texas Farm Bureau members buy Dodge vehicles and receive a $500 rebate—that is somewhere between $250,000 and $300,000 per month returned to Farm Bureau members in our state. We will end this year with some 7,000 members receiving approximately $3.5 million in rebates from Dodge.
"We continue to work on improving other member services and developing new ones to warrant continued membership retention and growth. Farm Bureau Bank, Coast to Coast Eyewear, Grainger and the other service member programs continue to expand services to Farm Bureau members.
"What truly makes Farm Bureau great is the 'people' activity. President Dierschke referred in earlier remarks to Farm Bureau as a `people organization,' and it is people activities that give Farm Bureau its credibility with members and outside audiences.
"Farm Bureau is, first and foremost, a general farm organization—a membership organization—with a primary purpose to advance the public policy interests of farmers and ranchers and to serve as the Voice of Agriculture in Texas. We go about this mission in a very organized fashion, albeit unusual for many organizations.
"We begin with the basic tenet that volunteer leaders serve as spokesman on behalf of the organization and the industry.
"They speak clearly and with great experience on policy issues with positions that come directly from the grassroots membership—this year some 312 resolutions from County Farm Bureaus will be shaped into our comprehensive policy book.
"Those policies give us our 'marching orders' on many, many issues. And we have many opportunities to share those policy positions.
"As an example, President Dierschke testified this year before a U.S. House Agriculture Subcommittee on the mid-term status of the 2002 Farm Bill. County leaders in Texas also had opportunities to discuss policies with legislators. County Farm Bureaus in Texas participated in 328 legislative meetings in 2004 of one type or another.
"Texas Farm Bureau took those adopted policies into the courthouse as well.
"As 2004 ends, TFB finds itself involved in 13 different legal defense fund activities cases ranging from confidentiality for producers who use predator control, endangered species habitat infringing on private property rights, to support of the Beef Checkoff law in the U.S. Supreme Court.
"All of these issues deal directly with a policy position that has been generated at the grassroots level. County Farm Bureau activity to promote the agriculture industry continues to increase thanks in large part to the foresight of our Project 2000 program and the increased efforts of the enlarged field staff.
"Agriculture in the Classroom activity saw our curriculum materials placed in an additional 108 Texas schools in 2004. County Farm Bureaus conducted 96 Agriculture in the Classroom field days.
"In addition to field days, County Farm Bureaus organized or participated in an additional 280 agriculture promotion events of some type designed to promote agriculture.
"Those activities will be enhanced over the course of the next few months with the completion of the final of what will be eight mobile learning barns strategically located around the state. These exhibit barns on wheels will be excellent additions for County Farm Bureaus to continue telling agriculture's story to a growing non-farm public.
"Nowhere is Farm Bureau's policy most noted, however, than in the legislative process that has become, in large part, Farm Bureau's claim to fame. We are all keenly aware that 2004 was an election year, and depending on your viewpoint—that usually means less legislation to worry about.
"From a legislative perspective, with all the political wrangling goings-on in Washington, D.C., and a special-called legislative session on school finance in Austin, we are pleased there is not a lot to report.
"Austin proved to be 'much ado about nothing,' fortunately for us—and our sales tax exemptions for input items and agriculture valuation on farm and ranch land remains intact.
"The Washington legislative scene proved to be a little more exciting in that we obtained more tax relief, thanks to President Bush's initiatives—a further reduction in capital gains tax rates and improvements in business expending deductions and a first-year bonus depreciation. Income tax rate cuts were accelerated, as well. Livestock replacement provisions related to drought, and a new deduction for the first $10,000 of reforestation costs were also among the tax provisions enacted with Farm Bureau support.
"Turning to politics, Texas Farm Bureau AGFUND experienced another active and successful year. AGFUND has become a very useful tool in our process of working with elected officials—and those who wish to be elected.
"With legislative redistricting and a growing urban and suburban population in Texas, Farm Bureau needs every tool available to gain access to legislators. We have a great story to tell, but you can't tell it if you can't gain access.
"Access is what AGFUND provides Farm Bureau. This year AGFUND participated in 33 contests in the primary elections with a success rate of 82 percent. We lost in six elections. In the general election, AGFUND was involved in 88 races with a 91 percent success rate. We lost in only 8 races. So for the election cycle—121 races for an 88.5 percent batting average. This puts us in a great position as we enter the new legislature and the new congress.
"We still have a good audience willing to listen to our story come January—and we have a great story.
"[Recently] we celebrated Thanksgiving here in America. Nowhere else in the world do citizens have as much to be thankful for as we Americans. We have more freedoms than most people in other countries can only dream of. Additionally, we have an abundance—thanks to the most productive agriculture producers in the world.
"Telling this story is a major undertaking, as most Americans take it for granted. As a little test, ask a friend, a neighbor, or another member about their Thanksgiving meal. I'd bet that most will tell you that it was more expensive than last year. Some might say 'too expensive.' American Farm Bureau Federation has been logging costs for this meal since 1986. 2004 costs were less than 2003 by almost 2 percent. That story is not one that makes headlines, unfortunately.
"Those that make the banner headlines are the kind you see on the screen: [Nation's farmers enjoy record income year]—great news to be sure! But it is interesting to note that the income story is datelined Wichita, Kansas, and the Lubbock, Texas dateline about record cotton crops [Texas in High Cotton] does not even mention the record harvest impact on price and the difficulties that 40 cent cotton will bring for producers. The public will remember 'enjoying a record income year.' This makes explanations difficult to legislators and the general public when it is time to lobby for a new farm bill. It is our job to make the non-farm public understand.
"That is a job ahead for all of us in Farm Bureau. Telling agriculture's story is on-going, continuous, laborious, and difficult as more and more Americans—and Texans—have no farm or ranch background.
"That brings us full circle. Texas Farm Bureau is ready and prepared to tackle this important job. But the way it will get done—and done right—is the way we've done everything else over the years...with our farmers and ranchers.
"Volunteers drive this organization, and I thank you for what you have done to keep Farm Bureau moving forward in support of the agriculture industry. 2004 will soon be history, and we have much more to do in the New Year."
