September 18, 2015 CapitalPress.com 7 Lawsuit accuses sheep ranchers of fixing wages Complaint also claims ranchers made unlawful wage deductions By MATEUSZ PERKOWSKI Capital Press A new lawsuit accuses ranchers who rely on foreign guest workers of colluding to unlawfully fix wages for sheep herders at artificially low levels. The complaint was filed against the Western Range Association and Sountain Plains Agricultural Service — which help ranchers hire em- ployees using the H-2A guest worker visa process — by for- mer sheep herders represented by Towards Justice, a law firm representing workers. Several ranches that par- ticipate in the H-2A program are also named as defendants in the complaint. “The result of this price fixing conspiracy or conspira- cies is absurdly low wages for all shepherds, the exclusion of most American workers from the shepherd labor market, and the importation of vul- nerable foreign workers,” the lawsuit claims. Capital Press was unable to reach representatives of the Western Range Associa- tion or the Sountain Plains Agricultural Service as of press time. According to the com- plaint, ranchers associated with the two organizations generally offer wages exactly at the minimum floor levels set by the U.S. Department of Labor, thereby eliminating competition and discouraging domestic workers from apply- ing for sheep herder positions. Sheep herders are paid about $750-$800 per month across most of the West, though those in Oregon and California earn $1,277 and $1,422 per month, respective- ly, the lawsuit said. When domestic workers don’t fill the positions, the associations recruit foreign workers through the H-2A program — as a result, a vast majority of sheep herders are from overseas, the complaint said. “In a competitive market, and absent the price fixing, ranchers would offer a high- er wage to U.S. workers than they do H-2A workers to ac- count for the additional cost of bringing an H-2A worker to the country,” the lawsuit claims. “H-2A workers are more costly to employers be- cause, pursuant to the H-2A regulations, they must be reimbursed by their employ- ers for travel to and from the place of recruitment in their home country.” The complaint also alleges that ranchers affiliated with the two organizations illegal- ly deducted the cost of travel, lodging, criminal background checks and other expenses that primarily benefit the em- ployer. The lawsuit seeks certifi- cation as a class action, which would allow other sheep herd- ers to join in the case, as well as triple the amount of dam- ages allegedly sustained by harmed workers. Study shows excessive foreign farm support costing U.S. wheat China, India, Turkey, Brazil highlighted By GEORGE PLAVEN EO Media Group Excessive farm subsidies in several advanced develop- ing countries might be costing U.S. wheat farmers nearly $1 billion per year in revenue, ac- cording to the results of a new study released Sonday. The study, paid for by the U.S. Wheat Associates and National Association of Wheat Growers, focuses specifically on China, India, Turkey and Brazil, where the industry groups say governments are supporting domestic wheat production at levels much higher than what they agreed to as members of the World Trade Organization. By over subsidizing pro- duction, those countries end up with a surplus of domestic wheat that competes with U.S. and global exports, said Dalton Henry, director of policy for the Wheat Associates. The re- sult is a distorted trade market with artificially deflated prices. About half of all U.S. wheat is exported, including a whopping 85-90 percent of Oregon’s crop — the majority of which is grown in Umatilla and Sorrow counties. Eric Mortenson/Capital Press A new study, paid for by U.S. Wheat Associates and National Association of Wheat Growers, says excessive farm subsidies in several advanced developing countries might be costing U.S. wheat farmers nearly $1 billion per year in revenue. “What other countries do has a big and significant im- pact on the revenue of U.S. wheat growers,” Henry said. “I think the overall total loss in revenue seen to these pro- grams has been surprising.” The goal of the study, con- ducted by agricultural econ- omist Dermot Hayes with Iowa State University, was to analyze what would happen to U.S. wheat if domestic sup- port in China, India, Turkey and Brazil were removed. Re- sults showed U.S. production would increase by more than 53 million bushels, and farm gate prices would increase by nearly 30 cents per bushel. As the largest world con- sumer of wheat, China’s sub- sidies have had a particular- ly compelling effect, Henry said. China currently supports 47 percent of the value of its domestic production, far ex- ceeding its agreement of 8.5 percent under the World Trade Organization. Hayes’ figures show U.S. wheat growers could capture an additional $548 million an- nually if subsidies were elim- inated in China, along with $358 million in India, $172 million in Turkey and $23 million in Brazil. The study indicated the four countries to- gether would increase imports by nearly 10 million metric tons, with the U.S. in position to capture 20 percent of that growth. And, even with the chang- es, Hayes argues China, India and Turkey would still be 90 percent self-sufficient in wheat production. U.S. Wheat Associates is asking the countries to abide by their commitments to the World Trade Organization as the latest Doha Round of ne- gotiations continues among members, Henry said. In- creasing subsidies likely stems from political pressure within the countries to increase food security, he said, though it ac- tually drives up the cost for consumers by reducing com- petitive imports from America and other trade partners. “I think part of it is just rais- ing awareness of the issue,” Henry said. “It’s definitely not an easy answer, and not one we expect to be solved within the next several months.” Brett Blakenship, an East- ern Washington wheat farmer and current president of the National Association of Wheat Growers, said the countries’ “market-distorting policies” are in part to blame for wheat prices falling 30 percent over a year ago, hitting family farms especially hard. It’s already been a tough production year for Oregon wheat, with drought expected to cut into yields by roughly 15 percent statewide. Blake Rowe, CEO of the Oregon Wheat Growers League, said soft white wheat prices have fared relatively well compared to other types of wheat, but have still slipped on the export market. All farmers can do is con- tinue to produce a quality pro- duce and weigh in to the gov- ernment on trade issues, Rowe said. Matthew Weaver/Capital Press Colfax, Wash., farmer Randy Suess sits in his shop Sept. 10 in the middle of some of his items up for auction. Suess is retiring after 30 years of farming. Retiring wheat leader preps for auction Suess ponders life after farming By MATTHEW WEAVER Capital Press COLFAX, Wash. — It hasn’t sunk in yet for Randy Suess that he’s farmed his last harvest. “I think when I see the guys out seeding my farm land, that’s going to be pret- ty hard,” he said while sitting in his shop north of Colfax, Wash., one sunny morning in early September. Suess, a leader in the Wash- ington wheat community, has been too busy to think about it, getting ready for an auction of his equipment 10:30 a.m. Sept. 23 on his farm. “I’m cleaning out a hun- dred years of accumulation,” he said. “This was my grand- pa’s and my dad’s farm. They grew up in pretty poor times. I think they kept every nut and bolt and everything they pos- sibly could think of that they thought they may use again, and they never did.” Items include two tractors, two cultivators, a disc, a har- row cart, a service rig, a seed truck and tools, toys from Suess’ childhood and antique farm equipment. Some of the larger items are also up for bid in an online auction. Suess decided to retire af- ter 30 years for medical rea- sons. Long hours on the trac- tor and combine bothered one of his legs. “The sad part is giving up some of the leases, because those leases have also been in the family for three gener- ations,” he said. Sost leases will be picked up by the father-son team tak- ing over Suess’ land. Suess has long been an advocate for the wheat and agriculture industry. He rep- resented Whitman County on the Washington Grain Com- mission and its predecessor, the Washington Wheat Com- mission, for 11 years. Appeals court overturns insecticide’s approval Ruling finds sulfoxaflor’s pollinator impact insufficiently studied By MATEUSZ PERKOWSKI Capital Press The U.S. Environmental Protection Agency’s approval of a controversial insecticide was reversed by a federal ap- peals court, which found its effects on pollinators were in- adequately studied. Sulfoxaflor is a type of ne- onicotinoid — a class of pesti- cides that’s increasingly under fire from environmentalists — that was unconditionally registered by EPA for use on fruit, nut, grain and oilseed crops in 2013. Several environmental groups challenged the pes- ticide’s approval before the 9th U.S. Circuit Court of Appeals, which has now agreed that EPA should have required more testing of the chemical. The 9th Circuit has held that sulfoxaflor’s registration was based on “flawed and limited data” and thus vacated the agency’s decision. “By the EPA’s own reck- oning, the data was insuffi- cient to evaluate the effect on sulfoxaflor on brood develop- ment and long-term colony strength,” the ruling said. 38-4/#6