Growth Unchanged from October for Rural Mainstreet Economy: Bankers Expect Farmland Prices to Decline Next Year
Growth for the Rural Mainstreet economy remains positive according to the November survey of bank CEOs in a 10-state area. “The overall index for the Rural Mainstreet Economy continues to point to positive, but slow economic growth in the months ahead,” said Ernie Goss, the Jack A. MacAllister Chair in Regional Economics at Creighton University.
Iowa: The November RMI for Iowa fell to 53.9 from October’s 55.3. The farmland-price index for November climbed to 53.5 from October’s 50.6. Iowa’s new-hiring index for November decreased to 53.9 from October’s 55.4. “We are beginning to see some softening in land prices but they are still strong if there are two or more bidders involved,” said James Brown, CEO of Hardin County Savings Bank in Eldora.
Nebraska: After moving below growth neutral for January, Nebraska’s Rural Mainstreet Index has been above growth neutral for 10 straight months. The November RMI slipped to 54.8 from 54.9 in October. The farmland-price index for November advanced to 48.3 from October’s 45.5. Nebraska’s new-hiring index stood at 50.4 for November from 51.9 in October.
Overall: The Rural Mainstreet Index (RMI), which ranges between 0 and 100 with 50.0 representing growth neutral, was unchanged from October’s moderate 54.3.
Farming: For only the second time in the past 12 months, the farmland-price index advanced. The November index rose to 54.3 from 50.9 in October. “Despite the expansion in the index for the month, I expect farmland prices to grow at significantly slower rates for the first six months of 2014 than they did for the same period in 2013. In the November survey almost half, 49.1 percent, bankers indicated they expect farmland prices to decline by an average of 1 percent over the next 12 months,” said Goss.
Bankers were asked for their response to the last week’s recommendation by the Environmental Protection Agency (EPA) to reduce the original 2014 mandated ethanol blend level by 20 percent. According to the November survey results, only 13.6 percent of bankers supported the EPA’s recommendation.
Farm equipment sales remained below growth neutral for the fifth straight month. The November index increased to a weak 47.3 from October’s 44.6. “According to bankers in our survey, farmers continue to reduce their purchases of big ticket items such as farm equipment,” said Goss.
Banking: The loan-volume index remained above growth neutral for the month at 56.9 but well down from October’s 64.7. The checking-deposit index soared to 72.0 from October’s 48.3, while the index for certificates of deposit and other savings instruments rose to a frail 44.8 from October’s 35.4.
Hiring: November’s hiring index sank to 54.4 from October’s 56.1. “Durable-goods manufacturers expanded jobs as nondurable goods producers, including food processors, lost jobs,” said Goss.
Confidence: The confidence index, which reflects expectations for the economy six months out, climbed to a weak 48.3 from 44.7 in October. “The lack of a farm bill, lower agriculture commodity prices and the EPA’s proposed changes in the mandated ethanol blending level weighed on bankers’ economic outlook,” said Goss
Home and retail sales: The November home-sales index declined to a still solid 56.2 from October’s 58.0. The November retail-sales index fell to 47.4 from 52.6 in October. “Much like the national housing market the Rural Mainstreet housing market continues to grow at a solid pace, even with the higher mortgage rates. On the other hand, the weaker retail reading should be a concern for businesses depending heavily on the holiday buying season,” said Goss.
Each month, community bank presidents and CEOs in nonurban, agriculturally and energy-dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming are included. The survey is supported by a grant from Security State Bank in Ansley, Neb.
This survey represents an early snapshot of the economy of rural, agriculturally and energy-dependent portions of the nation. The Rural Mainstreet Index (RMI) is a unique index covering 10 regional states, focusing on approximately 200 rural communities with an average population of 1,300. It gives the most current real-time analysis of the rural economy. Goss and Bill McQuillan, president of CNB Community Bank of Greeley, Neb., created the monthly economic survey in 2005.
Tax Reform, Water and Farm Data – Key Issues at Nebraska Farm Bureau’s 96th Annual Convention
Delegates to the Nebraska Farm Bureau Federation’s Annual Convention will discuss and form policy positions on a number of key issues that affect the well-being of Nebraska farm and ranch families. Delegates will gather Dec. 8-10 at Kearney’s Younes Convention Center to establish policy for the organization on state issues and recommend policy on national issues to the American Farm Bureau, which holds its national meeting in January.
This year’s convention theme is “Grounded in the Past…Focused on the Future,” a reflection of the organization’s reverence for the people and values of past generations in agriculture, while moving the organization forward in leading on key issues affecting today’s farm and ranch families.
“Our annual meeting is about serving members, and our policy development process is critical to bringing together the collective voice of our members to help shape the public policies that directly affect their livelihood and our ability to raise food for a growing population,” said Steve Nelson, Nebraska Farm Bureau president.
Among the key issues for discussion at the convention are tax reform, management of Nebraska’s water resources and proprietary farm data.
“Property tax relief and reform is the focal point for our members, and our delegates will further discuss what they would like to see done in that area,” said Nelson.
The Nebraska Legislature is expected to continue conversations about state tax reform when it reconvenes in January following the work of the body’s Tax Modernization Committee during the interim.
Delegates will also consider resolutions targeting water issues.
“Water is the lifeblood of agriculture in Nebraska, and our delegates will consider a number of resolutions that examine the way in which we manage water resources and fund the projects and programs that aid us in doing so,” said Nelson.
Members are also expected to discuss proprietary information as it relates to farm data as vast amounts of farm production data is being collected as part of the expansion of technology in agriculture.
“More and more questions are being raised about who owns farm data and how that information is being used. Data management is a major emerging issue for farm and ranch families adopting so many of these new technologies,” said Nelson.
Other issues for deliberation by delegates include topics such as Nebraska’s brand laws and brand inspection areas, ways in which the state can maintain a healthy livestock industry as well as discussion about revisions to the federal endangered species act, among other topics.
Outside of action on agriculture policy, attendees to the Annual Convention will have the opportunity to attend a handful of breakout sessions designed to help farm and ranch families address operational needs. Sessions will be held to help attendees with issues surrounding the passage of the farm or ranch from one generation to the next, identifying how farmers and ranchers can tell the story of agriculture to a non-farm audience and gain insight on the impact of the next farm bill on the agriculture economy.
“The Nebraska Farm Bureau Federation was established many years ago to help Nebraska’s farm and ranch families deal with challenging issues, while the times and issues may have changed, our mission has not,” said Nelson.
Farm Bureau’s Annual Convention will also serve as the backdrop for the kick-off of the Nebraska Farm Bureau Foundation for Agriculture. The new Foundation will house Farm Bureau’s leadership development and agriculture education programs.
“Annual Convention will serve as the site for our inaugural fundraiser, and there is no better place to launch an entity tasked with developing leaders and programs to tell the story of agriculture,” said Nelson.
2013 Silver Eagle Award to Honor Keith Olsen
Nebraska Farm Bureau has selected Keith Olsen of Grant, Neb., as the 2013 recipient of its highest honor, the Silver Eagle Award. The award will be presented to Olsen on Dec. 10 at the 2013 Nebraska Farm Bureau Convention in Kearney.
Keith Olsen has been widely respected for his commitment to young people wanting to stay in Nebraska agriculture, and he served as Nebraska Farm Bureau president for nine years from 2002 to 2011, Nebraska Farm Bureau President Steve Nelson said Nov. 8.
“Keith farms with his son, Jeff, near Grant in southwest Nebraska where they have a no-till farm producing wheat, certified seed wheat, corn and yellow peas. He began farming in 1967 following graduation from the University of Nebraska’s College of Agriculture. Keith is sought after by university, federal and state governmental representatives and officials for his insights and wise counsel on a wide range of issues affecting agriculture and Nebraska,” Nelson said.
Olsen began his Farm Bureau career on the Perkins County Farm Bureau board and later was president. He served on the Nebraska Farm Bureau Federation (NFBF) Tax Advisory Committee and the State Legislative Policy Committee. He was first elected to the NFBF board of directors in 1992 to represent district seven in southwest Nebraska. In 1997, he was elected first vice president serving in that capacity until Aug. 1, 2002 when he became president. In January 2004, Keith was elected to the American Farm Bureau Federation (AFBF) board of directors. He also served on the AFBF Trade Advisory Committee. He has accompanied governors and AFBF on trade missions to China, Taiwan, Japan, Mexico, Cuba, Vietnam, Turkey and Russia.
“During his service to Nebraska Farm Bureau, Keith moved the organization forward by representing them in both Lincoln and Washington, D.C. Keith’s first-hand knowledge of water issues has enabled him to work with state legislators on water issues, advocating the wise use of water, and the availability of adequate water flow to Nebraska farmers and residents,” Nelson said.
Olsen has been honored for his work to increase opportunities in agriculture for young people, his support of the Nebraska Institute of Agriculture and Natural Resources, his involvement in trade missions and the leadership he has given to Farm Bureau.
“Through the University of Nebraska Foundation, Keith and his wife, Doris, sponsor a $1,000 freshman scholarship and a $500 upperclassman scholarship at the University of Nebraska-Lincoln. Recipients of the scholarships must be studying agriculture-related fields, just one more way to keep Nebraska youth in agriculture and hopefully bring them back to the farm,” Nelson said.
When Olsen retired as Nebraska Farm Bureau’s president the organization honored him by sponsoring the Keith R. Olsen Agricultural Policy Internship Award, which provides students at the University of Nebraska-Lincoln’s College of Agricultural Sciences and Natural Resources the opportunity to complete an internship in Washington, D.C.
“Students who participate in the Washington, D.C., program work full-time on Capitol Hill for a member of Nebraska’s Congressional Delegation, a selected committee in the House of Representatives, Senate or at one of a number of agricultural organizations based in Washington, D.C. It is an extension of what Keith and Doris already do for young people in agriculture,” Nelson added.
Fortenberry Urges Farm Bill Conference to Keep Conservation Measures
As work on the House-Senate farm bill conference continues, Congressman Jeff Fortenberry today urged leaders of the House Agriculture Committee to retain important conservation and land management measures in the finalized Farm Bill. These measures were included in the Senate’s farm legislation, which was approved with bipartisan support earlier this year.
“As farm policy shifts and new reforms take shape, it is critical that sound conservation and land management practices remain coupled with the policies that help provide certainty for farmers and manage their risks,” Fortenberry said. “Nearly 30 years ago, Congress included conservation compliance measures in the farm bill that have helped reduce soil erosion, protect the environment, and improve water quality for both rural and urban places. Earlier this year, the Senate included key conservation measures in its farm bill proposal. The House-Senate conference should retain these provisions to ensure that tax dollars supporting agriculture are well spent and help agricultural producers maintain their leading roles in providing environmental stewardship and protection of our natural resources.”
The Senate’s conservation compliance amendment simply continues the practice of conservation planning on the most fragile lands to ensure that important land environmental stewardship goals are met. This concept is widely upheld as an important conservation initiative by many in the agricultural and environmental communities. A wide-ranging coalition of organizations has endorsed this approach as an appropriate way to help farmers, protect the environment, and ensure that tax dollars are well-spent.
Fortenberry, a former member of the House Agriculture Committee and current member of the House Appropriations Subcommittee on Agriculture, is a longtime advocate of policies encouraging conservation practices and agriculture-based renewable energy production.
CommonGround Volunteers Discuss Food on Popular Morning Show
CommonGround volunteers will share how they grow and raise food for America's families with the hosts of popular Lifetime TV morning show, "The Balancing Act.” The four-segment miniseries will air throughout the next three months, with the first episode airing Monday, Nov. 25 at 7:00 a.m. (EST/PST).
Viewers will get the chance to learn from American farm women about:
- Understanding Cost of Food in America with CommonGround (Airing Nov. 25 and Dec. 6)
Mary Courtney, a Kentucky farmer and CommonGround volunteer, provides a way for moms looking for answers about food to connect with and get real, credible food information from moms who grow and raise it.
"'The Balancing Act' provides a great forum to connect with moms across the country and let them know that farmers just like me want to share the story behind how American food is grown and raised,” said Courtney.
- Recipes From American Farms To Your Kitchen (Airing Dec. 5 and 12)
Ohio farmer Kristin Reese shows off her cooking skills while teaching viewers about family farms in America. Reese also shares her favorite holiday recipes.
"I am often shocked that many people do not know 96 percent of the farms in America are family-owned and operated,” said Reese. "It is wonderful to be able to share facts like these with the moms who tune into national television programs like the 'The Balancing Act.'”
- Food Myths and GMOs (Airing Dec. 19 and 26)
Iowa farmer Sara Ross leads the conversation about popular myths surrounding biotechnology, often referred to as GMOs.
"We are thrilled to work with 'The Balancing Act' to create television that will really dig deeper into some of the hottest food topics,” said Ross. "There is such a strong desire here to really delve into every aspect of American food, and, as farmers, we bring a unique perspective on issues like GMOs, organic food and the local food movement to an audience that is hungry to hear from women who share their experience and concerns, but also have first-hand knowledge on these subjects.”
- Understanding How Farmers Raise Healthy Food for Our Families (Airing Jan. 14 and 21)
Nebraska farmer and rancher Dawn Caldwell shares health news you can use regarding food safety. Caldwell breaks down food-safety myths and gives valuable tips to prepare meat and produce at home.
"People often forget to take the proper safety precautions with food once they get it home,” said Caldwell. "As a farmer dedicated to raising a healthy food supply, I want Americans to also pay attention to how they prepare the food they feed their families.”
More than 400,000 women watch "The Balancing Act” every day, offering a perfect opportunity for CommonGround to share the truth about food with the women who buy it.
Participants in New Documentary Farmland Revealed
Today Allentown Productions announced the subjects of the upcoming documentary, Farmland, from Oscar®-winning filmmaker, James Moll. The feature length documentary, which is now in post-production, follows the next generation of American farmers and ranchers, all in their 20s, in various regions across the US.
“With every new documentary, it’s always a thrill to explore topics and meet people that I might not otherwise cross paths with,” said Moll. “While making Farmland, I found myself immersed in a community of some of the most hardworking, passionate people I’ve ever met. This film isn’t just about what it’s like to be a farmer, it’s about a way of life. It’s also about a subject that affects our lives daily.”
Moll spent five months meeting farmers and ranchers before he settled on the six who are featured in Farmland. In order to authentically tell the story through the eyes of this next generation, Moll extensively researched the subject and looked for individuals to profile, specifically choosing from different farming and ranching production methods, various types of crops and livestock and geographic diversity.
The farmers and ranchers featured in Farmland, include:
Brad Bellah, a sixth generation cattle rancher, runs beef cattle operations in Texas and Colorado, including a natural beef herd. The 26-year old husband and father of a twin son and daughter earned a bachelor’s degree in agricultural communications from Texas Tech University.
Leighton Cooley, a fourth generation poultry farmer, operates four farms in Georgia with his father. In addition to chickens, he also has a cow-calf operation and grows hay. Leighton and his wife have two sons.
David Loberg, a fifth generation corn and soybean farmer in Nebraska, runs the family farm with his mother. The farm also custom feeds 500 head of cows for a local dairy operation and runs an irrigation business. The 25-year-old and his wife have an infant son.
Sutton Morgan, a fourth generation farmer from California, grows, packs and sells onions and potatoes, and also grows melons, carrots, broccoli, cauliflower, lettuces, chard, kale and alfalfa. Sutton holds a degree in business economics from the University of California Santa Barbara.
Margaret Schlass, a CSA (community supported agriculture) vegetable farmer based in Pennsylvania, farms on 18 acres with her two farms. During her senior year at the University of Delaware, Margaret studied abroad in Peru, worked the fields harvesting corn and yucca, which introduced her to farming.
Ryan Veldhuizen, a fourth generation farmer, is taking over the operation of his family’s hog farm in Minnesota with his brother and sister. The farm grows hogs, corn and soybeans, which they use for feed.
The film, made with generous support from the U.S. Farmers & Ranchers Alliance® (USFRA®), gives viewers a firsthand glimpse into the lives of these young farmers and ranchers, their high-risk/high-reward jobs and their passion for a way of life that, more often than not, is passed down from generation to generation.
The advance trailer and information about the film and documentary subjects is available at www.farmlandfilm.com, on Facebook at www.facebook.com/farmlandfilm and on Twitter @FarmlandFilm. Farmland will premiere nationwide in spring 2014.
Volunteers Needed in Community Collaborative Weather Network
The Iowa Department of Agriculture and Land Stewardship's State Climatology Office and the National Weather Service in Des Moines are recruiting volunteer precipitation observers across Iowa to participate in the Community Collaborative Rain, Hail and Snow network, known as "CoCoRaHS."
All that is needed to participate is an interest in the weather, a four inch diameter rain gage and a suitable location to set up the gage. All data collected are immediately available for free online and are routinely used for flood forecasting, scientific research and general weather interest.
More information about the network is available on the CoCoRaHS web site at www.cocorahs.org. The website includes information on how to join, where to purchase your rain gage and how to accurately measure and report rain and snow.
The network was established by the Colorado Climate Center in 1998 and has now spread to all fifty states and Canada. Iowa joined this volunteer network in 2007 and now has over 300 registered CoCoRaHS observers across the state. However, more observers are needed to better document the amount and variability of rain and snow across Iowa.
"This year Iowa has seen an amazing range of precipitation events, with the wettest spring season on record, including a record May snow event, followed by the second driest July to September period on record," said Harry Hillaker, State Climatologist for Iowa. "Whatever comes our way, the weather observations obtained by this network can be of great benefit in obtaining a clearer picture of Iowa's weather."
COALITION NOTIFIES IOWA FARM OF INTENT TO FILE CLEAN WATER ACT LAWSUIT OVER REPEATED MANURE SPILLS
A coalition of community, environmental and animal welfare organizations sent a notice of intent to sue Illinois-based The Maschhoffs, LLC over repeated discharges of hog manure to waterways from one of its Iowa farms.
Iowa Citizens for Community Improvement and the Humane Society of the United States intend to file suit alleging violations of the federal Clean Water Act unless the facility obtains a Clean Water Act permit and the company can guarantee that its almost 7,500-head Keosauqua Sow facility will not discharge any further pollution into Iowa’s waterways.
Iowa CCI is represented by The Environmental Integrity Project, and the Humane Society of the United States is represented by David Sykes of David E. Sykes, P.C. in Fairfield Iowa and lawyers with the HSUS’ animal protection litigation section. The groups will file suit at the end of sixty days.
The sow facility is located in Van Buren County, Iowa near the Des Moines River. The groups site an incident on November 4th, when a clogged pipe in the facility’s manure management system caused the discharge of thousands of gallons of waste into an on-site creek. The creek empties into a section of the Des Moines River that is listed as impaired due to biological pollutants.
The Department of Natural Resources’ most recent inspection of the facility was in August of this year. The inspection resulted in a citation to the facility for record keeping errors, but the goups say the agency failed to require it to obtain a Clean Water Act permit, despite what they call numerous warning signs. The inspection came shortly after Iowa recently entered into an agreement with the U.S. Environmental Protection Agency. This agreement includes mandatory Iowa DNR inspections to determine if a farm must acquire a permit under the Clean Water Act.
Iowa Farmers Union Welcomes New President
Iowa Farmers Union (IFU) members gathered November 15 and 16 in Des Moines for their 99th Annual State Convention. This year's theme was Food for Thought: Envisioning the Future of Family Farming & Food Policy in Iowa.
During the second day of the convention, IFU members elected a new state president, Jana Linderman of Cedar Rapids. Linderman has served as the IFU Managing Director since 2012 and previously served four years on the IFU Board of Directors.
"I am so honored to have the opportunity to lead this amazing organization over the coming year," said Linderman. "I grew up as a member of the Farmers Union, going to youth classes, meetings and conventions with my parents and siblings. I feel privileged to take the strong history and nearly one hundred year tradition of the Iowa Farmers Union and carry it forward to a new generation of family farmers and ranchers."
Linderman, an attorney who lives in Cedar Rapids with her husband and 2-year old son, is also a beginning farmer who works with her parents on her family's farm growing small grains and a variety of non-GMO food-grade soybeans.
"We are at a transition point in agriculture. So many of our farmers are quickly approaching retirement age without a farm transition plan, and more and more farmland is held by people who are not actively engaged in farming. It's an open question what the farming landscape will look like in 10 years or 20 years. The mission of IFU has to be giving our beginning farmers and ranchers every opportunity to be successful, so that a generation from now, we can look around and see vibrant rural communities and a landscape dotted with independently-owned working farms."
The convention also elected Sally Gran of Nevada, Ashley Peppler of Grinnell, Tony Thompson of Elkhart and Donna Winburn of Grinnell to serve on the IFU Board of Directors. Rick Hartmann of Minburn was selected to serve as a delegate to the 2014 National Farmers Union Convention in Santa Fe, New Mexico.
Feeder Cattle Futures Price Compression
John Michael Riley, Extension Economist, Mississippi State University
Over the past few weeks, feeder cattle futures contracts have converged to what might as well be a single price, no matter the contract expiration month. In other words, there appears to be no seasonal influence in the market of late. This caught my attention especially given the current supply situation in the industry and, even more importantly, the longer-term expectation that feeder cattle supplies will further tighten.
The figure below shows the spread across all available contracts for a 12-month period (i.e., the difference between the highest contract price and the lowest contract price on the same date). While this is a crude measure, it does provide a quick assessment of the market conditions. Typically, at any point during the year, the spread between all contracts is roughly $5 per hundredweight. When 2013 started the spread was well above the highest seen when looking back through 1995 at about $15 per hundredweight and eclipsing $20 per hundredweight at times. Once the spring contracts expired, the spread dropped to just under $10 and drifted lower. Currently, the spread is near the lows from 1995 through 2012 at about $2 per hundredweight.
So, what does this mean? Live cattle futures contract prices are more differentiated and have a more typical seasonal pattern in place and do not appear to be an underlying reason for the narrow spread for feeder futures. One explanation could be that corn prices have declined, which has helped lift feeder futures prices across the board. This appears to have led to larger increase for nearby feeder prices while more deferred contracts wait to see what next year's crop looks like. Even so, in the winter and spring of this year the most deferred contract was at a significant premium to the nearby contract. This was not surprising at the time given the expectation of tight feeder supplies moving forward. While this is still the case, for the most part, the fact that the spread has narrowed is indication of the uncertainty of future feeder cattle demand since there is not a "time" premium currently in place.
Oct Red Meat Production Down From Last Year
Commercial red meat production for the United States totaled 4.51 billion pounds in October, down 2 percent from the 4.58 billion pounds produced in October 2012.
Beef production, at 2.32 billion pounds, was 1 percent below the previous year. Cattle slaughter totaled 2.90 million head, down 2 percent from October 2012. The average live weight was up 9 pounds from the previous year, at 1,327 pounds.
Veal production totaled 10.0 million pounds, 4 percent below October a year ago. Calf slaughter totaled 69,500 head, down 5 percent from October 2012. The average live weight was up 3 pounds from last year, at 245 pounds.
Pork production totaled 2.17 billion pounds, down 2 percent from the previous year. Hog slaughter totaled 10.42 million head, down 4 percent from October 2012. The average live weight was up 4 pounds from the previous year, at 278 pounds.
Lamb and mutton production, at 13.1 million pounds, was down 8 percent from October 2012. Sheep slaughter totaled 208,100 head, slightly above last year. The average live weight was 126 pounds, down 11 pounds from October a year ago.
January to October 2013 commercial red meat production was 40.9 billion pounds, down 1 percent from 2012. Accumulated beef production was down slightly from last year, veal was down 6 percent, pork was down 1 percent from last year, and lamb and mutton production was down slightly.
State - Million Pounds - % of Oct 2012
Nebraska ....: 694.1 102
Iowa ...........: 604.7 96
Kansas .......: 493.6 104
U.S. Agricultural Exports Threatened by EU Pesticide Regulation
A new report released today finds that more than 40 percent of U.S. agricultural commodity exports, including soybeans, grains, tree nuts, fruits and groundnuts could be blocked by upcoming changes in the European Union (EU) Plant Protection Regulation. If the EU regulation is implemented as proposed, it could block more than $4 billion of U.S. agricultural exports to the EU, in addition to exports of crop protection active ingredients. Such actions would imperil the Transatlantic Trade and Investment Partnership (TTIP). The report, “Potential Trade Effects on U.S. Agricultural Exports of European Union Regulations on Endocrine Disruptors,” was commissioned by CropLife America (CLA) and authored by Kyd D. Brenner, senior consultant at DTB Associates LLP.
EU Regulation 1107/2009 diverges from the U.S. Environmental Protection Agency’s (EPA) regulatory approach, which uses science-based risk assessment procedures for regulating crop protection products. While scientific risk assessment is the internationally accepted practice for regulating crop protection products, the EU increasingly regulates based on hazard identification, without taking into account exposure or risk. This runs counter to the World Trade Organization (WTO) Sanitary and Phytosanitary (SPS) Agreement to which the EU is signatory.
U.S. agricultural exports containing trace amounts of approved crop protection products will be blocked because Maximum Residue Levels (MRLs) for food and feed treated with these crop protection products will default to a near-zero level of 0.01 parts per million (ppm). This arbitrary threshold is a result of the EU regulatory requirement to categorize compounds as endocrine disrupters, which then triggers a market cut-off, or ban.
Exports from the U.S. to the EU have already fallen significantly relative to other exporting countries, in large part due to existing EU SPS barriers to trade. The report estimates, based on MRLs established in the U.S., that at least 24 active crop protection products and 25 different types of agricultural commodities could be impacted by the EU regulation. The largest effects would be felt in exports of tree nuts and fruit ($1.577 billion); soybeans and groundnuts ($1.516 billion); and grains ($0.586 billion).
“CLA is concerned by the findings of this report and the potential impacts a hazard-based precautionary regulation may have on agricultural trade between the U.S. and EU,” said Jay Vroom, president and CEO of CLA. “As one of the main objectives of TTIP is to seek regulatory convergence, differing regulatory frameworks for crop protection products present serious economic and trade impacts. While TTIP works to open up trade between the U.S. and the EU, Regulation 1107/2009 could shut it down.”
In the U.S., the EPA requires extensive testing on all new pesticide active ingredients in order to determine their potential impacts on human health and the environment. These tests include acute and chronic health effects, as well as reproductive and generational effects that are important to consider for endocrine disruption. The testing also addresses sensitive sub-populations including children and pregnant women. In addition, the EPA has developed a two-tiered screening program for all chemicals to identify adverse effects specific to endocrine-disrupting activity – the Endocrine Disruptor Screening Program (EDSP). CLA members actively support science-based regulation and the EDSP, and have committed significant resources to the testing required by the EPA to develop the program.
Research demonstrates that there are thresholds of exposure that do not adversely impact the human endocrine system, which is complex and interacts with both natural and manmade compounds, such as soy, sunlight and stress. It is important that regulators have the ability to discern between substances that do and do not pose concern. Understanding potency and exposure enables regulators to minimize risk while still benefiting from technology. Risk assessment serves as the basis of the regulatory approach taken in the U.S., while the precautionary approach being pursued in the EU seeks to remove beneficial technologies from the market.
DTB Associates LLP is a Washington, D.C.-based firm that was founded in 2000 by internationally recognized experts in agriculture, trade policy and trade law. The firm provides legal, strategic and tactical advice to producers and exporters competing in the global food and fiber market.
The full report is available for download at http://www.croplifeamerica.org/EU-Impact-Assessment. For more information about the EDSP, visit the EPA website: http://www.epa.gov/endo/.
Bio-based Heating Oil Bill Moves to Full Assembly in NJ
A bill promoting the use of bio-based heating oil in New Jersey awaits consideration by the full Assembly after being released Monday, Nov. 18, by the Assembly Telecommunications and Utilities Committee.
Sponsored by Assembly Democrats Celeste Riley, John McKeon and Thomas Giblin, The Bio-based Heating Oil Act, A-3161, would require all heating oil sold for residential, commercial or industrial heating uses within the state meet increasing compliance standards by July 1, 2014.
The bill would require the fuel meet the following compliance schedule unless compliance has been suspended by the Commissioner of the Department of Environmental Protection: from July 1, 2014, to June 30, 2015, to have at least 3% biodiesel content; from July 1, 2015, to June 30, 2016, to have at least 4% biodiesel content; from July 1, 2016, and thereafter to have at least 5% biodiesel content or such other percentage established by international specifications as the maximum allowable percentage of biodiesel which may be contained in heating oil, whichever is higher.
NCGA Voices Opposition to Decreasing Ethanol Volumes Outlined in RFS
Yesterday, National Corn Growers Association President Martin Barbre participated in a meeting at the White House in which key representatives from the biofuels industry and agribusiness presented information on the negative impacts of the proposed 2014 renewable volume obligation levels for the Renewable Fuel Standard released by the Environmental Protection Agency last week. During this discussion, Barbre presented compelling evidence of the importance of maintaining the volume obligations of the RFS as written in statute.
As outlined in the proposed RVOs issued last week, the EPA intends to reduce the baseline 2014 RVOs for the RFS from 14.4 billion gallons to 13 billion gallons. This ill-advised and unnecessary cut in required volumes will hault innovation in the renewable fuels market. Further, this reduction in volumes would have a devastating effect on farmers and rural communities across the country.
American farmers are currently harvesting their corn crops, by the latest USDA projections, it will be an all-time record 13.8 billion bushels. As a result of this record, corn prices are falling and currently stand close to where they were when the RFS2 was enacted in 2007.
This price decline comes at the same time that the cost of production has increased. In 2012, it cost $655 per acre to plant corn. Based on this year's projected yields, a farm price of $4.25 per bushels would be required to cover production costs. Given the impact this proposal could have upon deman, and in light of the uncertain message it sends to those who invest in biofuels, the economic consequences of such action would reach far beyond rural America, impacting future U.S. energy security and creating environmental repercussions.
The meeting, which also included representation from the Advanced Biofuels Association, the Advanced Ethanol Council, Archer Daniels Midland, Growth Energy, POET, Monsanto, the National Farmers Union, Novozymes, and the Renewable Fuels Association, presented the aforementioned information to Secretary of Agriculture Tom Vilsack, advisors to the Obama administration and representatives from the EPA.
NCGA is working tirelessly to bring the Administration's attention to the potential impacts of the proposed RVOs, and while this meeting served as an initial contact since the proposal, it will sustain a focused, vigourous defense of the RFS. Members, non-member farmers, residents of rural America, advocates for biofuel and energy security and those invested in creating a more environmentally friendly energy future are urged to visit www.ncga.com/rfs for updated information on ways in which they can support these efforts as the situation evolves.
2013 North American Harvest Analysis Detects Mycotoxin Threat
All of the corn and corn silage samples submitted during the 2013 harvest tested positive for multiple mycotoxins according to a recent harvest analysis conducted by Alltech, a global animal health and nutrition company.
The Alltech Harvest Analysis North America (HANA) survey tested 101 samples from across the United States and Canada and demonstrated the need for producers to implement a mycotoxin management program to monitor the effects of toxins on all species throughout 2014. Despite more rainfall across the Corn Belt and yields pushing record production, farmers must consider quality rather than quantity. Quality not only includes nutritive value but also the presence and levels of mycotoxins in this year’s crop.
Samples sent in from across the U.S. and Canada show that corn silage yields and corn grain tested positive for multiple mycotoxins (Figure 1).This follows what is being observed in that a greater percentage of feeds and feedstuffs are contaminated with multiple mycotoxins. The breakdowns for corn silage and corn (Figure 2 and 3) are almost identical in that Fumonisin is the most prominent mycotoxin and is followed by Fusaric Acid and Type B Trichothecenes.
Type B Trichothecenes are present at low risk levels in both corn silage and corn grain in the average sample and may be considered at safe levels by many producers. However, the second most prevalent mycotoxin is Fusaric Acid, and Fusaric Acid will act synergistically with DON to magnify the effects of DON.
“What appears to be a relatively safe, low risk level of Type B Trichothecenes may be elevated to a moderate risk by Fusaric Acid. This effect will be manifested as lower dry matter intake, decreased rate of gain, gut irritation and lowered immune response,” said Dr. Max Hawkins, nutritionist with Alltech’s Mycotoxin Mangement Team.
Many times it is not an acute case that can be readily identified, but a chronic situation associated with the ingestion of a low level of mycotoxins over an extended period of time. This results in a wide array of subclinical symptoms that slowly reduce performance, eat away at the producer’s bottom line and compromise herd health.
“Producers need to implement a mycotoxin control program now to reduce the threat to their herds,” Hawkins said. “This is the time to be proactive.”
Hawkins said to be aware of the effects of multiple mycotoxins, implement a mycotoxin control program and stay vigilant with storage management for the new crops.
U.S. Poultry, Egg Exports Continue on Record Pace for 2013
Although U.S. poultry exports through the third quarter of 2013 continued on a record pace, growing marginally in quantity and value over the same period last year, combined exports of table eggs and processed egg products reached historical highs, according to trade data released last week by the Foreign Agricultural Service.
Total January-September poultry exports reached year-on-year records of 3.077 million metric tons valued at $4.152 billion, up 1 percent and 3 percent, respectively.
Combined exports of eggs and processed egg products through the third quarter of the year, measured in shell-egg equivalents, reached 250.5 million dozen, up 28 per cent from the same period in 2012, while export value hit $245.61 million, up 33 per cent. Both export quantity and export value set year-on-year records.
September exports of broiler meat dipped by 1 percent to 276,135 tons, while value rose by less than a percent to $354.5 million, compared to September 2012.
Cumulative January-September broiler meat exports reached 2.5 million tons, up 2 percent, valued at $3.21 billion, up 4 percent. Both export quantity and value set year-on-year records.
Exports to key markets for the period included Mexico, 484,958 tons, up 19 percent; Russia, 213,316 tons, up 3 percent; Angola, 148,256 tons, up 20 percent; and Canada, 127,648 tons, up 0.2 percent.
Senate Committee Passes Grazing Improvement Act
The Public Lands Council (PLC) and the National Cattlemen’s Beef Association (NCBA) hailed the Senate Committee on Energy and Natural Resources for passage of S. 258, the Grazing Improvement Act of 2013.
The legislation, sponsored by Senator John Barrasso (R-Wyo.) comes as a means to codify existing appropriations language — adding stability and efficiency to the federal grazing permit renewal process. The bill passed by the Committee will extend the term for grazing permits from a minimum of 10 up to 20 years, providing for added permit security. The U.S. Forest Service (USFS) and the Bureau of Land Management (BLM) have consistently — for more than a decade — carried a backlog of grazing permit renewals due to overwhelming and unnecessary National Environmental Protection Agency (NEPA) assessments. This bill provides sole discretion to the Secretaries of Interior and Agriculture to complete the environmental analysis under NEPA while allowing for an analysis to take place at the programmatic level.
“The act is vital for ensuring the fate of our producer’s permits — livelihoods are depending on the efficiency of the system — which undoubtedly needs restructuring,” said Scott George, NCBA president and Wyoming rancher. “Not only will the bill codify the language of the decades old appropriations rider, it will also allow categorical exclusions from NEPA for permits continuing current practices and for crossing and trailing of livestock. Additionally, it will allow for NEPA on a broad scale, reducing paper pushing within the federal agencies.”
The bill that passed was an amendment in the nature of a substitute which included troubling language, creating a pilot program which would allow for limited “voluntary” buyouts. These “voluntary” buyouts are not actually market based, due to outside influence. Where voluntary relinquishment of a rancher’s grazing permit occurs, grazing would be permanently ended. New Mexico and Oregon would be impacted — allowing for up to 25 permits in each state, per year to be “voluntarily” relinquished.
“PLC strongly opposes buyouts — voluntary or otherwise,” said Brice Lee PLC president and Colorado rancher. “Ultimately, buyouts create an issue for the industry due to the wealthy special interest groups who work to remove livestock from public lands. The language in the amendment addresses ‘voluntary’ buyouts; however, radical, anti-grazing agendas are likely at play. Litigation and persistent harassment serve as a way to eliminate grazing on public lands—and could force many ranchers into these ‘voluntary’ relinquishments, unwillingly. There can be no ‘market based solution’ in which any given special interest group is able to ratchet up ranchers’ cost of operation, and artificially create a ‘voluntary’ sale or relinquishment.”
Nevertheless, both Lee and George agree the bill is a strong indication that Senators from both parties recognize the current system is broken and must be fixed to provide stability for grazing permit renewals; despite the buyout language.
“Passage out of committee is a feat in itself — we applaud the efforts of Senator Barrasso and we are hopeful the bill will continue to improve as it advances in the Senate,” George said.
Deere Announces Record Fourth-Quarter Earnings of $807 Million
Net income attributable to Deere & Company was $806.8 million, or $2.11 per share, for the fourth quarter ended October 31, compared with $687.6 million, or $1.75 per share, for the same period last year.
For fiscal 2013, net income attributable to Deere & Company was $3.537 billion, or $9.09 per share, compared with $3.065 billion, or $7.63 per share, in 2012.
Worldwide net sales and revenues decreased 3 percent, to $9.451 billion, for the fourth quarter and increased 5 percent, to $37.795 billion, for the full year. Net sales of the equipment operations were $8.624 billion for the quarter and $34.998 billion for the year, compared with $9.047 billion and $33.501 billion for the same periods in 2012.
"With our strong financial results in the fourth quarter, John Deere has wrapped up another year of impressive achievement," said Samuel R. Allen, chairman and chief executive officer. Income for the periods was higher than in any previous fourth quarter or full year, he pointed out. "During the year, Deere continued with a record number of product introductions and completed seven new factories, in Brazil, Russia, India and China. These products and additional capacity are essential to helping the company expand its global customer base and realize its long-term business objectives.
"Deere's performance is a testament to our ability to execute our business plans, which stress the rigorous management of costs and assets," Allen stated. "This has led to an all-time high in profitability, as measured by operating return on operating assets, and record earnings for the last three years. In addition, the company has delivered healthy levels of cash flow, which has been used to fund global growth programs and provide direct benefit to investors through dividends and share repurchases."
New White House Rural Council Report Highlights the Economic Importance of Passing a Food, Farm and Jobs Bill
In June of 2010, the Obama Administration began providing input to Congress regarding the prospective features and policy of contents for a reauthorized farm bill. Over a period of more than three years, the Administration has supported reauthorization efforts aimed to help build a better safety net for farmers and families, and to build a better farm, food, and energy policy for the nation.
However, 43 months later and despite the best efforts of many in Congress, work on reauthorization on the Farm Bill remains incomplete. While some programs have been simply extended, others remain either unfunded, unauthorized, or without enactment of needed reforms.
The Administration has made clear that passing a comprehensive farm bill is a priority, and of importance for every American. The White House today is releasing a new report, which explains what is at stake in this debate.
Today's report outlines the many benefits of a new Farm Bill for all Americans. Passage of a Food, Farm and Jobs Bill would:
- Build on recent momentum of the U.S. agriculture economy, a key engine of economic growth.
- Promote development in communities across the country, by expanding new opportunities for American agriculture, increasing manufacturing potential and supporting businesses across rural America.
- Protect our vital food assistance programs, which benefit millions of families and individuals – in rural, suburban and urban areas alike
- Create a reliable safety net for our farmers and ranchers, including a strong crop insurance program, a long term extension of disaster programs and retroactive assistance for livestock producers.
- Continue federal conservation efforts, working alongside a record number of farmers and ranchers to conserve our soil and protect our water.
- Promote new markets for U.S. producers abroad and at home, honor our trade commitments and assist our farmers and ranchers to export a record amount of product around the world.
- Support research, and ensuring that our long history of agricultural innovation continues.
- And reduce the deficit, by enacting reforms saving billions of dollars in the coming decade.
The report highlights the economic benefits – for the domestic agriculture sector, its workforce, rural American communities, and families and businesses across the country – that would result from these changes, and the imperative to passing a comprehensive Food, Farm, and Jobs bill as soon as possible.
A Comprehensive Farm Bill Will Build On Recent Momentum Of The U.S. Agriculture Economy
The U.S. agriculture sector is a key engine of economic growth. Not only does it put food on the table of American families at affordable prices and provide raw material for a range of vital purposes—it also supports millions of jobs and is a key economic driver in many rural communities.
In recent years, the agriculture sector has seen strong growth, with farm income and agriculture exports both reaching historical highs not witnessed in decades.
- After adjusting for inflation, net farm income – at $120 billion for 2013 – now stands at its second-highest level since 1973.
- Farm asset values are expected to rise 7.1 percent in 2013, as farmland values are expected to continue rising; farm equity is expected to increase by 7.6 percent in 2013.
Since the President took office, agriculture exports have had the strongest five-year period of growth in our nation's history, and hit a record level in the last fiscal year:
- In the 2013 fiscal year, exports reached over $140 billion -- exceeding the previous high of $137 in FY2011, and setting a new record.
- The average volume of bulk commodities exported increased by nearly four million tons per year over the past five years.
- U.S. farm exports have supported about one million American jobs.
Between 1948 and 2011, total farm production more than doubled, and U.S. total agricultural output grew at an average annual rate of 1.49 percent over this period. Almost all of this growth in U.S. agricultural output was due to increased productivity growth.
The Farm Bill offers an opportunity to build on this progress, providing long-term certainty about the next five years of U.S. farm policy for America's farmers, ranchers and producers.
A Comprehensive Farm Bill Will Invest In Rural Development
The Farm Bill authorizes and directs the work of USDA-Rural Development, with a mission of improving the quality of life in rural America by financing long-term investments in the future of rural communities through loans, loan guarantees, grants, and technical assistance.
While there is a vibrant agricultural economy today, rural America continues to face a number of unique challenges:
- Eighty-five percent of persistent poverty counties in America—counties where poverty has been high for at least 30 years—are in rural areas.
- Additionally, rural America faces a growing demographic challenge due, in part, to lowering birth rates and an aging population: between 2010 and 2012, rural areas experienced the first recorded period of population loss.
A comprehensive Farm Bill with funding for water and wastewater investments would help tackle the $2.1 billion backlog of shovel-ready water/wastewater infrastructure projects in small towns across the country
- Since 2009, Farm Bill rural development programs have financed 3,898 rural water and wastewater projects, putting people to work and providing clean water for nearly 14 million rural Americans.
- During the same period of time, investments that farm bill programs authorize have supported improvements to 276 hospital and medical clinics, 166 schools and 401 libraries in rural America; the agency has awarded 15,727 grants and loans to aid 65,636 businesses expand opportunity and create jobs.
- The Farm Bill also will help keep rural communities safe and connected, through the expansion of 911 access and by supporting access to broadband telecommunications services in rural areas through project loan guarantees.
- Between 2009 and 2012, Farm Bill authorized programs helped create new market opportunities for rural producers and businesses by supporting over 800 local and regional food projects, including new product development and critical infrastructure like food hubs.
A comprehensive farm bill will allow USDA-Rural Development to work in partnership with local governments and organizations to align public investments, leverage private dollars, and respond to local priorities.
A Comprehensive Farm Bill Will Invest In The Bioeconomy And Clean Energy
- The Farm Bill also is a key opportunity to advance the bioeconomy through continued investment in the next generation of advanced biofuels, construction of advanced biorefineries, top-notch research, support for farmers establishing new biofuel crops, and the manufacture of biobased industrial products.
- A strong bioeconomy means producing manufactured goods, fuels, and power using plant materials, rather than petroleum, chemicals, or other extracted materials as the fundamental building block. More than 3,000 companies produce bio-based industrial products – everything from chemicals, to auto parts and beverage bottles – from homegrown, plant-based materials.
- The Farm Bill includes several energy programs that correspond with the various components of the energy chain—from the field and the research lab to the factory and the generator. A comprehensive Farm Bill would:
- Reauthorize and fund the Renewable Energy for America program, which provides grants and guaranteed loans to agricultural producers and rural small businesses for the purchase of renewable energy systems and the implementation of energy efficiency projects. Since 2009, 9,166 awards have been made through this program, saving or generating a total of over 9.8 million megawatt hours of energy
- Jumpstart the production of the next generation of advanced biofuels by helping communities and companies invest in building advanced biorefineries, funding regional research, and continuing to help farmers to establish those biofuel crops.
- Continue USDA's BioPreferred program, which has helped to create thousands of new jobs in rural communities and added jobs across the value chain even in larger manufacturing cities by using agricultural and forestry commodities as the base feed stock for everyday products.
- Support domestic investment, development, and production in the emerging bio-based industrial products industry through expanded eligibility for loan programs and directed research.
- A strong bio-based economy will improve the bottom line for farmers while creating good manufacturing jobs in rural America. At the same time, these investments reduce our use of foreign oil, reduce the trade deficit by replacing imported crude oil with home-grown, fuel, and contribute to a healthier planet by reducing emissions.
A Comprehensive Farm Bill Will Support Vulnerable Families By Protecting Our Vital Food And Nutritional Assistance Programs
- For the past 40 years, the Farm Bill also has authorized the Supplemental Nutrition Assistance Program (SNAP), one of our nation's strongest defenses against hunger and poverty. SNAP helps families and seniors put food on the table, while also benefitting farm and rural economies.
- In 2012, SNAP kept nearly 5 million people, including 2.2 million children, above the poverty line.
- SNAP benefits led to an average annual decline of 4.4 percent in the prevalence of poverty from 2000 to 2009, and led to even greater reductions in the depth and severity of poverty.
- Program benefits are targeted to those most in need: the vast majority of SNAP participants are children, the elderly, or people with disabilities.
- Over 91 percent of SNAP benefits go to households with income below the poverty line, and 55 percent go to households with income of less than half of the poverty line (about $9,500 for a family of three).
- Most SNAP recipients who can work do so. Among SNAP households with at least one working-age, non-disabled adult, more than half work – and more than 80% work in the year before or after receiving SNAP.
- Administrative costs for the program are very low: about 95 percent of federal spending on SNAP goes directly to helping eligible households purchase food.
- In addition to helping American families during tough economic times, SNAP provides a fiscal boost to the economy during economic downturns.
- The independent Congressional Budget Office estimates that every SNAP dollar generates up to $1.80 in economic activity.
- Every $5 in SNAP benefits generates as much as $9 of economic activity for the over 230,000 retail food outlets – supermarkets, grocers and farmers' markets – that participate in the program
- In addition, reforming our largest international food aid program would provide a much greater impact without additional budgetary resources, helping up to 4 million more people each year in emergency food crises abroad.
A Comprehensive Farm Bill Will Provide A Safety Net For Producers To Manage Risk
- The Farm Bill represents a key opportunity to further reform and improve farm programs to provide assistance to those that need it and to restore much needed disaster funding for livestock producers, while also providing deficit reduction for the American taxpayer.
- While crop insurance is a critical component of the farm safety net, the Government's cost of providing crop insurance has increased dramatically over the past decade as the subsidies for crop insurance and the prices of commodities have increased.
- In 2012, farmers paid about $4.3 billion to insure almost 282 million acres through the Federal crop insurance program.
- Elimination of direct farm subsidies, as proposed by the Administration, would save taxpayers $5 billion per year.
- The Farm Bill also is an opportunity to reform adjusted gross income limit provisions to prevent producers that do not need assistance from receiving aid.
- Due to Congressional inaction on the Farm Bill, some of the programs that could have helped mitigate the impacts of the severe drought conditions in 2012 and more recently during the South Dakota blizzard this past October are expired or currently have no funding – particularly safety net programs for livestock producers.
- In 2012, had Congress acted to reauthorize the Farm Bill, the Livestock Forage Program (LFP) payments alone could have totaled between $500-$600 million, double the 2011 levels. A new Farm Bill would retroactively extend LFP payments to producers to cover those losses.
- Continued delay of the Farm Bill not only leaves these producers on their own to cover their losses from the 2012 drought, but also renders essential programs unavailable to USDA in its work to provide assistance for new disasters, such as the October blizzard in South Dakota, Nebraska, North Dakota and Wyoming, which killed a large number of livestock.
- Because Congress has not acted to reauthorize the Farm Bill, USDA is unable to assist producers and can only ask producers to keep accurate records for when a Farm Bill reauthorizes the LIP program.
- Lack of action on a Farm Bill ultimately would result in the U.S. reverting back to dairy policy from the New Deal era, leading to the potential for milk prices to double for domestic consumers. This also would carry significant cost for the federal government of at least $12 billion per year.
A Comprehensive Farm Bill Will Enhance Conservation
- The future of food and fiber production in the U.S. depends upon the availability of productive farm and ranch land and abundance of healthy natural resources. Towards this end, the Farm Bill represents the nation's largest investment supporting the voluntary and successful conservation, restoration and management of America's working lands.
- Conservation compliance and sound conservation practices to commodity programs has been a successful tool in reducing soil erosion by more than 40 percent and preventing impairment of natural resources.
- A comprehensive Farm Bill will improve, simplify, and strengthen key land conservation, protection, and wildlife habitat enhancement. The Farm Bill authorizes or makes changes to:
- Working-land programs that provide technical and financial assistance to farmers who install or maintain conservation practices on land in production. These programs have enrolled 60 million acres of agricultural and non-industrial private forestland (through the Conservation Stewardship Program) and obligated nearly $1 billion in financial assistance for over 44,000 active and completed contracts (Environmental Quality Incentives Program).
- Comprehensive conservation and habitat programs that help farmers, ranchers and private landowners protect and conserve environmentally sensitive land and produce wildlife habitat from agricultural production in exchange for rental or easement payments.
- Agricultural land acquisition programs like the Farm and Ranch Lands Protection Program, which provide assistance to cooperating partners to purchase land rights, helping sustain the ranching and farming way of life and their surrounding rural communities.
- Linking crop insurance participation to conservation compliance, as supported by the Administration, could bring an additional 17 million acres into compliance practices, and ensure an additional 141 million acres remain in a conservation practices.
- A comprehensive Farm Bill also supports the restoration of our nation's forests and ecosystems, for example by authorizing critical forest management tools, and providing funding for local governments to install high-efficiency, biomass-fueled heating systems that reduce energy costs, support rural income and employment opportunities, and address the risks of severe wildfire.
A Comprehensive Farm Bill Will Promote Markets At Home And Abroad While Meeting Our Global Trade Commitments
- The agriculture sector and farm exports have been one of the brightest points for the U.S. economy.
- The current value of U.S. exports is more than $140 billion, with the past five years representing the highest agriculture sales levels in the nation's history.
- U.S. agricultural exports have out-paced U.S. agricultural imports since 1960, generating a surplus in U.S. agricultural trade.
- Trade promotion provisions in a new Farm Bill and continued commitment to developing markets at home and abroad will be key to maintaining strong farm incomes over the next 5 years.
- The Farm Bill authorized USDA's trade promotion efforts, which are estimated to generate a return of $35 in economic benefits for every one dollar invested. These programs help approximately 70 U.S. agricultural producer organizations, each representing hundreds or thousands of producers, expand commercial export markets for their goods abroad.
- The Farm Bill also facilitates export financing of U.S. agricultural exports, which helped generate sales of more than $4.1 billion of U.S. agricultural exports in 2012 – including high-valued products like port, forest products, almonds, fish and fresh fruit.
- A comprehensive Farm Bill will support the growth of global and domestic organic market opportunities by providing critical data, research and program supports for organic farming, sales of which doubled from 2002-2012. These investments also provide valuable information about drought-resistant and soil-conserving practices, which benefit all U.S. agriculture
- Farm Bill-authorized programs support the development of physical infrastructure and technical assistance to locally-based organizations engaged in marketing, food safety and production research and training. Between 2009 and 2012, USDA supported over 2,600 projects nationwide to build new market opportunities in local and regional foods.
- Passage of comprehensive Farm Bill also is necessary to resolve the Brazil WTO dispute, which if not resolved is likely to result in trade retaliation against the United States.
A Comprehensive Farm Bill Will Promote Innovation And Productivity By Supporting Key Research Initiatives
- Agricultural research and development generates high payoffs for farmers and the public: research shows that investing in agricultural R&D generates social rates of return of 20-60% annually.
- Between 1948 to 2011, U.S. agricultural output grew at an average annual rate of 1.5 percent, and total farm production more than doubled– with innovation-driven productivity growth accounting for most of this growth.
- Research programs today address a broad array of problems facing U.S. agriculture including food supply and security, bio-energy development, increased climate variability, plant and animal health, water availability and quality, food safety, and nutrition and childhood obesity.
- A comprehensive Farm Bill provides the opportunity to recommit to targeted public sector investments in agricultural R&D, as supported by groups across the spectrum including the American Enterprise Institute and the President's Council of Advisors on Science and Technology
- The Farm Bill supports competitive grants programs as well as funds research, education, and extension activities that provide science-based solutions to address major agricultural challenges of national, regional, and multi- state importance.
- With the help of one such grant, University of Illinois scientists combined ultrasound and chlorine washing treatments to reduce the number of E. coli 0157:H7 in spinach to 99.99 percent.
- Another funded projected produced power and chemical products from an existing pulp and paper mill, protecting at least 100 jobs in North and South Carolina.
- The Farm Bill would also help identify priority areas for new and continuing USDA research. A comprehensive bill specifically would support the study of Colony Collapse Disorder, which threatens the health of honey bees and the economic stability of commercial beekeeping and pollination operations in the United States.
Welcome to the KTIC Agriculture Information blog!!! Check back here for the latest in ag news and information, from local events to international happenings and government reports that affect your operation. Please email with suggestions! -Chad Moyer, Farm Director, KTIC Radio
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