Trade Law Daily is a service of Warren Communications News.

Agricultural Channel Said Walking DBS ‘Set-Aside’ Line

The FCC Media Bureau is weighing 2 rounds of June comments on alleged violation of DBS noncommercial set-aside rules by agricultural channel RFD-TV. RFD-TV airs farming and horse training how-to programs, tractor and 4-H shows and all sorts of agriculture-related events on airtime the 1992 Cable Act set aside for noncommercial programming. But other RFD-TV content -- livestock auctions and ads for Elvis Presley CDs, saddle pads, horse vitamins and log splitters -- will get scrutiny after complaints of DBS “set-aside” abuse.

Sign up for a free preview to unlock the rest of this article

Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.

A petition by Farm Journal Inc. to boot RFD from DBS set-aside status has been pending since Nov. at the Media Bureau. In the petition, Farm Journal claimed “set-aside” abuse by RFD-TV, deeming RFD’s content commercial and in violation of set-aside rules.

More recently, RFD-TV and its set-aside compliance caught the eye of Rep. Berry (D-Ark.), EchoStar and DirecTV. In June, Berry wrote to the FCC urging prompt review of what he alleged is violation of “Congressionally reserved” set- aside space. The Cable Act requires DBS operators to reserve 4% of channel capacity for noncommercial and educational programs, Berry said. “Numerous bona fide noncommercial, educational programming suppliers face long waiting lists for a reserved channel amongst the… four percent,” he said, asking the Commission to contact his office with “any legislative recommendations… for Section 25 of the 1992 Cable Act.”

RFD claims to provide wide educational and informational programming to a “traditionally underserved market” of rural residents, farmers and ranchers -- 100-plus of whom have written to the FCC on RFD’s behalf. RFD has IRS approval as a tax-exempt public charity, and complies with underwriting requirements, it said.

EchoStar and DirecTV are looking into the matter, and in the meantime, RFD-TV is implementing its own compliance plan, they said. Since Farm Journal’s petition, RFD-TV “claims to have implemented a compliance plan that involves hiring personnel to insure compliance,” EchoStar said. Both DBS operators carry the channel, and are waiting for the FCC to determine RFD-TV’s compliance, they said. “While DirecTV does not wish to prejudge the outcome of this proceeding, it appears that Farm Journal has raised questions with respect to RFD’s past eligibility and RFD has taken a series of steps designed to address these questions,” DirecTV said in RFD’s defense.

EchoStar is doing its own inquiry into the allegations, it said. Under its Dish Network contract, RFD is expected to follow public interest programming rules and EchoStar has been relying “in good faith” on RFD’s representations, EchoStar said. “EchoStar cannot possibly monitor each minute of programming provided by its public interest programmers. Furthermore, EchoStar may not exercise editorial control over RFD-TV pursuant to FCC rules,” the DBS operator said.

DirecTV said it asked RFD in June to certify every quarter that it: (1) Is pre-screening all scripted programs and monitoring live programming. (2) Meets eligibility requirements for carriage in Commission set-aside rules. (3) Is not aware of anything that would cause RFD or DirecTV to be out of compliance with set-aside rules.