Dairy Producers of New Mexico
President's Letter
Allen G. Squire
October, 2010

At a recent oversight meeting with EPA administrator Lisa Jackson, Senate Agriculture Committee chair Blanche Lincoln pointed out that farmers and ranchers do not have the ability to pass along to consumers the steep costs of compliance (or the fines for noncompliance). In a study by the Small Business Administration’s Office of Advocacy, authored by Lafayette College economics professors Nicole Crain and Mark Crain, it was recently revealed that small businesses continue to bear ever increasing costs of compliance with state and federal regulations. They estimated that over $1.75 trillion is necessary for American businesses to comply with all federal regulations, which equals over $10,000 per employee for small businesses. This equals about 14% of the U.S. national income. When added to the 21% federal tax burden, this equals 35% of the national income. One out of every $3 earned goes to complying with federal regulations or tax laws! Farms were not included in this SBA report, but one can only imagine what the compliance costs would be when you include all of the environmental regulations that we must comply with. Senator Lincoln went on to say that American farmers and ranchers and foresters are facing at least 10 new regulatory requirements, each of which will add to their costs and make it harder for them to compete in a world market that is often unfairly tilted against U.S. products.

A recently released Index of Economic Freedom shows that the U.S. is now down at 8th place from a previously more lofty position near the top. With all of the election rhetoric about making jobs and saving jobs and “shipping jobs overseas,” one does not have to look very far to be able to see the reason that we have record unemployment. Businesses and their related jobs will move away from excessive regulation and excessive taxation. (“tax the rich” generally only works the first time!)

We The People have a say in the way our government is run. Get everyone you know to the polls on November 2. Vote Constitutionally Conservative.