Thursday August 13 Ag News

 Senator Linehan Applauds Passage of LB1107

Senator Lou Ann Linehan, District 39, applauded the passage of LB1107 today – major tax legislation that will impact all Nebraskans.  LB1107 passed with 41 of 49 state senators voting in support of the bill and Governor Pete Ricketts expected to sign the bill into law.

LB1107 contains the first new property tax relief measure since 2007 – the Nebraska Property Tax Incentive Act.  Details include:
    Funding for the first year will be $125 million, growing to $375 no later than 2025;
    Between 2022 and 2024
        Half the annual state revenue growth over 3.5% is dedicated to the new refundable credit, if the Cash Reserve Fund is below $500 million;
        If the Cash Reserve Fund is above $500 million, all excess annual revenue above 3.5% is committed to the new refundable credit;
    After reaching $375 million, the amount available for the new credit will increase each year by the percentage increase in statewide property valuation increases, with a maximum increase of 5%;
    The new property tax relief measure comes in the form of a refundable income tax credit;
    The credit is based on the amount of school district property taxes paid;
    Taxes paid for bonds and levy overrides are not included in this amount;
    The credit will be available to all property taxpayers - even those without income tax liability.

LB1107 also ensures that the existing Property Tax Credit Fund will continue to provide property tax relief at no less than $275 million per year plus 70% of any gaming tax revenues generated by the expanded gambling petition, if approved by the voters in November.

Other provisions of LB1107 include the ImagiNE Nebraska Act which replaces the expiring Nebraska Advantage Act for tax incentives.  ImagiNE Nebraska is an improvement over the current incentive package.  It is more transparent and ensures a livable wage.  The new incentive programs include a rural investment and job creation tier and a key employer retention program.  Funding for the Act includes:
    $25 million each for the first two years;
    $100 million each for years 3 and 4;
    $150 million for year 5;
    After the 2025, the cap will be equal to 3% of state net tax receipts; and
    If the dollar caps are exceeded in any year, then claims to use credits will be approved on a first-come, first-served basis.

Funding is provided for the Nebraska Transformational Projects Act, also known as the NExt Act.  The University of Nebraska Medical Center (UNMC) in Omaha may be selected as a location for a federal biocontainment and research project:
    If selected, UNMC would receive more than $1 billion from the federal government;
    Private contributions of $300,000,000 would be required;
    The state would also contribute $300,000,000 if UNMC is selected for participation in the federal program;
    No transfer of funds will occur prior to FY 2025-2026 or the new Nebraska Property Tax Incentive Act is funded at $375 million.



Statement by Steve Nelson, President, Regarding Legislature’s Passage of Property Tax Relief (LB 1107)

“Today is a good day for Nebraska taxpayers. We greatly appreciate the Legislature’s work to find compromise and deliver on providing property tax relief with the passage of LB 1107. A heart-felt thank you to those state senators who supported this critical legislation. This bill takes a major step forward to provide significant, meaningful, and much needed property tax relief for Nebraskans. It is important Nebraskans know the relief provided by LB 1107 reflects the largest investment by the Legislature in targeted property tax relief since the body first established the state’s Property Tax Credit Fund in 2007. While we must continue to look for long-term solutions to alleviate pressure on property taxes, this is clearly positive progress in delivering relief. We look forward to continuing to work with our elected leaders toward those ends and helping deliver more wins for Nebraska taxpayers.”



Nebraska Cattlemen Welcomes Passage of Historic Property Tax Relief

Nebraska Cattlemen (NC) has consistently and aggressively advocated for property tax relief and reform for Nebraska's livestock producers. Today, NC secured a major victory as state policymakers took the first step by providing widespread and historic relief for all Nebraskans.
 
LB 1107, which advanced through the final round of debate, represents a "grand compromise" that addresses business tax incentives, the University of Nebraska Medical Center "NeXt" Project, and most importantly, long-awaited property tax relief.
 
"NC members' voices have been at the forefront of the negotiating table throughout the 2020 session, particularly during these final 17 days. Devastating floods, extreme cattle market volatility, and crippling property taxes have wreaked havoc on our state's top industry. Nebraska's cattlemen and women could not afford to wait any longer for relief.
 
Today's action is the beginning of finally reversing the disproportionate burden placed on the backs of agricultural property owners in Nebraska. We are thrilled to finally achieve meaningful relief directly from the state, especially in a year frustrated by a worldwide pandemic. Going forward, our members remain committed to enacting long-term, systematic reform of Nebraska's property tax structure - particularly on the over-reliance on property taxes to support K-12 public education," said Ken Herz, Nebraska Cattlemen President.
 
LB 1107 would deliver property tax relief for agriculture through the following:
    Creates a new Property Tax Refundable Income Tax Credit based on the amount of K-12 taxes paid. This new tax credit would be frontloaded with $125 million and grow to $375 million annually after 5 years.
    Beefs up the existing Property Tax Credit Fund by setting a minimum requirement of $275 million per year, plus any tax revenue generated from the gambling petition on the November ballot (if passed).
    When fully implemented, LB 1107 reduces property taxes paid to schools by nearly 15% with a minimum of $650 million per year in relief.

The work towards property tax relief doesn't stop here! This effort is an important next step in NC's goals of property tax reform for our members.



 Terminating a Verbal Farmland Lease  

Some farm leases are not written but are verbal or "handshake" agreements. Because nothing is in writing, the parties may have different recollections of their agreement, making lease disputes more difficult to resolve.  

The most common legal issue associated with verbal farm leases is how a lease may legally be terminated. For both year-to-year leases and holdover leases, six months advance notice must be given to legally terminate the lease. However, the lease date (the date from which the six months is counted) is different. In contrast, the termination of a written lease is determined by the terms of the written lease.

Terminating verbal leases
For year-to-year verbal leases, the Nebraska Supreme Court has ruled that the lease year begins March 1. Notice to a tenant to vacate under a verbal or handshake year-to-year lease (legally referred to as a "notice to quit") must be given six months in advance of the end of the lease, or no later than Sept. 1. This rule applies regardless of the crop planted. Those with winter wheat should consider providing notice before it is time to prepare wheat ground for planting.  

For example, for the lease year beginning March 1, 2020, and ending Feb. 28, 2021, notice from the landlord that the lease will be terminated would have to be given to (and received by) the tenant no later than Sept. 1, 2020. The lease would then expire Feb. 28, 2021, with the new tenant (or new buyer) able to take over the lease March 1, 2021. If, however, the notice to quit were given (or received) after Sept. 1, 2020, the existing tenant would have the lease until Feb. 28, 2022.

It is recommended that the farmland lease be terminated by Registered Mail.  This means that the person receiving the letter signs for it, providing evidence that the termination notice was received.   

Pasture Lease Terminations
Handshake or verbal leases are different for pastures. The typical pasture lease is for the five-month grazing season. The lease is only in effect for that time, so the lease is terminated at the end of the grazing season; however, different lease length arrangements can be made in a written lease, and that would be followed if in effect.

Importance of Good Communication
Regardless of the type of lease — written, verbal or even multiple year — the landlord should have clear communication with the tenant. By sending a termination notice before Sept. 1, even for written leases, you can avoid any miscommunication or pitfalls.

Written Leases
In all instances, written leases would be preferred over oral or “handshake” leases. Sample leases are available in the Document Library at aglease101.org and can help both parties start thinking about the appropriate lease conditions for their situation. The site was developed by University of Nebraska-Lincoln extension specialists in the north-central region.



 CHS Foundation provides support to Northeast Community College; pledges $50,000 to Nexus campaign

A recent partnership formed between Northeast Community College and the CHS Foundation has provided three different types of support to students and the College – scholarships, emergency assistance, and a contribution to build new agriculture facilities at Northeast.

In 2019, Northeast was named as one of the CHS Foundation’s University Partners. The CHS Foundation University Partner program provides scholarships to undergraduate students studying agriculture at select two- and four-year colleges and universities. As a two-year partner, Northeast Community College receives eight, $1,000 scholarships each year to benefit incoming freshman and returning second year students. In addition, as a University Partner, Northeast receives $2,000 to support professional development opportunities provided through college clubs or organizations focused on agriculture.

“The CHS Foundation is dedicated to developing ag leaders for life,” said Nanci Lilja, president, CHS Foundation. “Supporting students as they pursue degrees in agriculture ensures the success of our industry far into the future.”

When the COVID-19 pandemic forced Northeast to close its campuses and hold all classes remotely, the CHS Foundation provided $5,000 in student emergency funds to the College. The funding is to support students studying agriculture, providing them with essential resources to continue their education and assist with loss of income, financial support or stability, or lack of resources to effectively engage in studies remotely.

“The support of the CHS Foundation has provided much-needed assistance for our ag students in these challenging times,” said Dr. Tracy Kruse, associate vice president of development and external affairs and executive director of the Northeast Foundation.

The CHS Foundation also made a $50,000 contribution to the Nexus campaign to construct new ag facilities at Northeast.

“The CHS Foundation recognized the great talent coming from Northeast,” Lilja said. “By supporting these new ag facilities, students will have even more opportunities to hone their skills and be better prepared to enter the ag industry.”

“Through scholarships, emergency assistance, and now support for the Nexus project,” Kruse said, “the CHS Foundation is making it possible for more students to study agriculture, and for those students to learn in state-of-the-art facilities.”

The initial phase of construction in the Nexus project includes a new veterinary technology clinic and classrooms, a new farm site with a large animal handling facility and other farm structures for livestock operations, a farm office and storage. The new facilities will be located near the Chuck M. Pohlman Agriculture Complex on E. Benjamin Ave. in Norfolk. Site work began in April and construction should be completed by the Fall 2021. Groundbreaking ceremonies are scheduled at 10 a.m., on Thursday, September 10.

The funding for the agriculture facilities will come from the College’s commitment of $10 million, as well as external fundraising to fill the gap. With a total project cost of $22.3 million, the College has raised enough funds to begin construction; however, fundraising for the Nexus campaign will continue, as more is needed for equipment, technology and furnishings.

In August 2019, the Acklie Charitable Foundation (ACF) announced a $5 million lead gift to the Nexus project. ACF was founded by the late Duane Acklie and Phyllis Acklie, both Madison County natives and graduates of Norfolk Junior College, a predecessor institution of Northeast Community College.

For more information on the Nexus Campaign, contact Kruse, at tracyk@northeast.edu, or call (402) 844-7056. Online donations may be made through www.agwaternexus.com. Checks may also be mailed to Nexus Campaign, Northeast Community College Foundation, P.O. Box 469, Norfolk, NE 68702-0469.



Aksarben 4-H Quiz Bowl, Livestock Judging suspended for 2020

The competitions being suspended are the livestock judging and quiz bowl contests. Both contests were carefully reviewed and due to the travel restrictions of teams from out of state, along with their funding source changes, the decision is made to suspend the competitions.

This decision does not affect the livestock competitions.  The shows are absolutely going onward as scheduled.

The Aksarben Stock Show presented by the Aksarben Foundation remains on schedule for September 24 – 27, 2020.  The safety and well-being of our guests, exhibitors, contestants, vendors, sponsors and community always comes first, so we are closely following the directives of local and national health agencies: Central District Health Department, Department of Agriculture, the City of Grand Island, Hall County, and the Nebraska Governor’s Office.

For more information on the state’s largest stock show, visit www.showaksarben.com.  



YEUTTER INSTITUTE TO HOST WEBINAR SERIES

Registration is open for a six-part webinar series titled “International Trade: Measuring and Managing Risk and Uncertainty,” hosted by the Clayton Yeutter Institute of International Trade and Finance at the University of Nebraska–Lincoln with support from the CME Group Foundation.

The series runs from Sept. 14 through Oct. 9. All webinars are free and open to the public.

Recent shocks, including the COVID-19 pandemic, the U.S.-China trade war and the collapse of the World Trade Organization’s Appellate Body, have resulted in new risks to supply chains, agricultural markets and the multilateral trading system. This series will examine how to interpret these risks and explore ways to manage them to move the system toward a better, more secure future.

Sessions will feature leading experts from industry and academia, including former trade negotiators and recent White House advisers.

“The speakers in this series are joining us from three continents, and all of them are on the leading edge of measuring risk or explaining trade policy because they have shaped it themselves at the highest levels of government,” said Jill O’Donnell, director of the Yeutter Institute. “This is a rare opportunity for Nebraskans and anyone interested in international trade to get an inside look at what is driving the prevailing trade challenges of our time.”

Stanford University economist Nicholas Bloom will open the series at noon CDT Sept. 14 with a keynote address titled “Uncertainty Shocks: Measuring the Implications for International Trade and Economic Growth.”

The full schedule is as follows:
> Sept. 14: “Uncertainty Shocks: Measuring the Implications for International Trade and Economic Growth”
> Sept. 16: “China’s Industrial Subsidies: What Can Be Done?”
> Sept. 21 (tentative): “Managing Risk in Agricultural Trade”  
> Sept. 25: “The Special (Trade) Relationship: U.S.-U.K. Negotiations”
> Sept. 29: “U.S. Trade Negotiations: Is the Phased Approach Here to Stay?”  
> Oct. 9: “WTO Dispute Settlement: Is There a Future for the Appellate Body?”

Webinar audience members will have the opportunity to submit questions. Advance registration for each webinar is required. All sessions will last 60 minutes. To view all events in this series and to register, visit https://yeutter-institute.unl.edu/2020-webinar.

The program is approved for five hours of Continuing Legal Education credit.

As events have moved online, this webinar series is an adaptation of the biennial CME Group Foundation Symposium of the Yeutter Institute.

The vision of Husker alumnus and renowned trade expert Clayton Yeutter, the Yeutter Institute connects academic disciplines related to law, policy, business and agriculture to prepare students for leadership roles in international trade and finance, support interdisciplinary research and increase public understanding of these issues.



New national report highlights need for urgent protections in meat and poultry plants

A new national report Disposable by Oxfam America highlights the dangerously inadequate safety measures in nationwide poultry plants that continue to put workers, their families and communities at risk, echoing the experience of Nebraska meat and poultry workers. The report, which includes interviews from workers in multiple states, highlights three specific failures by the meat and poultry industry to protect workers from contracting COVID-19: limited access to paid sick time, lack of social distancing on the processing line, and failure to provide important information to workers about infections and fatalities and safety procedures in appropriate languages.

"For the last several months, we have experienced the devastating impacts COVID-19 has had on workers in meat and poultry facilities – our family members and neighbors – across our state. We have seen outbreaks in communities throughout Nebraska due to a lack of protections for essential workers, and this report underscores that the experience is the same in other states," said Darcy Tromanhauser, Immigrants & Communities Program Director with Nebraska Appleseed. "Nearly 5,000 Nebraska meatpacking workers have tested positive since the pandemic began. As of August 4, at least 21 meat and poultry workers have died and hundreds have been hospitalized in Nebraska. We must ensure essential workers have clear and enforceable essential protections.”

The latest figures indicate at least 40,000 meatpacking workers nationwide have fallen ill due to COVID-19 and nearly 200 have died, including more than 20 deaths in Nebraska. This does not reflect the number of family and community members who have also been infected by sick workers.

Workers interviewed for the report expressed mounting fear over a range of insufficient safety measures in plants including failure by companies to report infections or deaths to workers or the community, no social distancing on the line or during breaks, lack of appropriate masks or gloves provided, no sanitizing of facilities if positive infections have been reported, nor slowing of the production line -- nearly identical to the experiences shared by Nebraska workers in a Nebraska Legislature hearing last week.

Also concerning is the absence of paid sick time for non-union workers which forces people already living on the financial edge to work while sick.

“People should not be forced to choose between going to work sick or getting a paycheck. Now we have a highly transmissible infectious disease that has killed more than 150,000 people just in the US. And we’re still having conversations about paid sick leave. It isn’t something that should even be debated; it should be mandated,” said Dr. Celeste Anne Monforton with the Department of Health & Human Performance at Texas State University.

According to the report, few if any non-unionized workers reported access to paid sick leave. While some companies provide two-week sick time for COVID-19 cases only, they require proof of infection, leading workers to attend work despite signs of infection while awaiting results. And sick time coverage is rescinded if a test is negative.

Nebraska meat and poultry workers in communities across the state have been sharing similar concerns about plant conditions. As one worker shared at the Nebraska Legislature hearing last week:

“I work at a packing plant in Hastings. At the beginning they did not give importance to COVID-19 and many of us were infected. The plant started taking measures very late. I got COVID from the company and then my family was infected as well….The line runs just as fast with a pandemic or without a pandemic. These meat processing plants don’t only kill animals, they are also killing workers. My fear is that if we’re not keeping proper distance while working on the line, we could get infected again.”

Additionally, companies have been offering incentives to encourage workers not to stay home. The report notes at least two companies offered $500 attendance bonuses for a month for perfect attendance, and one plant in Texas offers an extra dollar an hour for a week of no days missed -- an experience also reported by Nebraska packing plant workers.

According to workers interviewed for the report, when they or their colleagues do contract COVID-19, they are often not informed about infections or deaths -- another experience shared by Nebraska workers.

One Maryland woman told Oxfam that her 44-year-old husband, Miska Jean Baptiste, did not realize he’d contracted Covid-19 when he began to run a high fever. She says the local plant checked workers’ temperatures when they arrived, but didn’t inform her husband about his fever, and instead, gave him ice cream to reduce the reading.

After four days of attending work unaware of his illness, Jean Baptiste went to the doctors and registered a 105-degree fever. He passed away alone in a hospital several days later.

“The company said he was on vacation when he was in the hospital. Usually when someone passes away, they have a TV, they put up a picture--but when my husband passed, they didn’t do it, they don’t want people to know,” says Jean Baptiste’s widow, who did not want to be identified.

Workers reported to Oxfam that the plants they work for have not spaced out people on the line, nor slowed the production line, or changed workers’ shifts. While some plants have installed plexiglass shields or sheets of plastic in locations including break room tables and on the line, experts agree that shields provide little protection while workers stand shoulder-to-shoulder, often face-to-face in inadequately ventilated air.

“Workers are alarmed at new signs that the poultry industry has begun to rescind some of the cursory protective measures they made at the start of the pandemic,” said Minor Sinclair, Director of Oxfam America’s US Domestic Programs. “With this health crisis far from over, the industry must finally prioritize people over profits and make substantive changes in order to save lives.”

Oxfam’s report calls on the meat and poultry industry to end its practice of “business as usual,” and commit once and for all to three clear changes to protect the health and well-being of its workforce -- changes that Nebraska statewide organizations have been calling for as well: provide paid sick leave to workers (not contingent upon proof of positive Covid-19 test); implement social distancing throughout the plant, especially on the processing line; and communicate with workers and the community about incidents of infection and death, while also providing safety information in appropriate languages.



Farmer Leaders Build a Better Future for Ag Through Training

Twelve growers from seven states took part in the first session of this year’s National Corn Growers Association Leadership Academy program in St. Louis last week. This program, open to candidates from farmer members submitted through their state association, prepares participants to lead their state grower associations and check-off boards.

This year’s class grew their skills in a variety of areas, including transformational leadership, consensus building, meeting facilitation, parliamentary procedure, and building trust with consumers through traditional and social media. Additionally, these up-and-coming leaders took part in exercises that helped them refine their ability to forecast and anticipate future challenges. With additional briefings from the Soil Health Partnership team and an election preview provided by Washington staff, the attendees prepared to successfully serve their fellow farmers in a leadership capacity.

“NCGA’s tradition of grassroots-focused leadership directly leads to the successes which benefit all U.S. corn farmers. Meeting the talented, dedicated Leadership Academy class, I feel optimistic for the future of American agriculture,” said President Kevin Ross, a farmer from Minden, Iowa. “It takes time away from the farm and personal sacrifice to actively become a part of the change you want to see. The women and men I met, even in these unique times, show the importance of working together to forward our industry through their work.”

The second session of Leadership Academy will take place in Washington in March of 2021. The class will then have the chance to meet NCGA lobbying staff in-person, learn how to effectively advance priorities with federal legislators and regulators, dive into current policy issues, and actively advocate for the issues important to corn farmers on the Hill.

Corn association leaders in attendance included: Greg Amundson (N.D.); Ben Bakko (N.D.); Michael Dibbern (Neb.); Chad Epler (Kan.); Kyla Hamilton (Texas); Emily Koop (Kan.); Lance Lillibridge (Iowa); Kelly Nieuwenhuis (Iowa); Kayla Poe (Miss.); Matthew Poe (Miss.); Jon Rosensteil (Ill.); and Terry Smith (Ill.).



Webinars for Pork Producers Working Toward Economic Recovery

Iowa's pig farmers continue to battle against economic situations that are causing an expected average loss in 2020 of $37 per pig. When added up, that's a $2.1 billion dollar loss to the 5,400 pig farmers around the state.
 
That's why the Iowa Pork Industry Center and Iowa Pork Producers Association have developed a Producer Recovery Webinar Series focusing on information that producers can use to find opportunities for making key decisions in this difficult time.

The one-hour webinars will be offered on four consecutive Wednesdays at 7 p.m. from Aug. 19 through Sept. 9. During each webinar, participants will have the opportunity to interact, ask questions, and learn from the presenters featured each week. Here is the schedule of topics and speakers:
    Aug. 19 - Evaluating Hog Supply Agreements: A Peek Inside the USDA's Swine Contract Library with Tim Hughes, a client service manager at Commodity and Ingredient Hedging
    Aug. 26 - What Do I Do Now? with Joe Kerns, managing director of Kerns and Associates
    Sept. 2 - A Market Outlook During Turbulent Times with Lee Schulz, associate livestock economics professor at Iowa State University
    Sept. 9 - Different Tools in the Tool Box with Pat VonTersch, owner of Professional Ag Marketing

There is no charge to participate, but registration is required to receive connection information for participation. You can register at https://bit.ly/ProducerRecoveryWebinar. Login information will then be emailed to you for the Webex-delivered series. Access can be via any computer or mobile device with internet connection.

The webinars will be recorded and available to view approximately one week after each webinar. If you have any questions, please reach out to Stacie Matchan at sgould@iastate.edu.



Virtual show to offer rich, relevant content

A live event is the preferred way to get information for the farm, but when a pandemic tosses you a lemon, the best choice is to make lemonade. For the Farm Progress Virtual Experience, the lemonade goes beyond the most extensive field demos in the history of the two top farm shows in the country. Farmers who attend the free event will be able to choose from a focused range of breakout sessions designed to help them deal with hot topics of the day.

"We're being very targeted in our approach to content for this show," says Don Tourte, senior vice president of sales for Farm Progress. "In a virtual environment, it's all too easy to bury a visitor in dozens of presentations. That's not our intent with the Farm Progress Virtual Experience."

Tourte says the breakout sessions each of the three days will focus on different aspects of an operation, providing visitors the chance to choose what matters to them. For example, if risk management is important, a farmer will have the chance to hear from Bryce Knorr, contributing marketing analyst, Farm Futures, with his perspective on the markets. But on another day, Matt Bennett, Bennett Consulting, will add to that insight with his look at key tactics for risk management on the farm.

Visitors to the three-day virtual event can choose among specific topics during each breakout session. "But the beauty of a virtual experience is that they can return later to catch a breakout they may have missed when it first appeared," Tourte says. "For example, if a farmer wants to start with the risk management session, he or she can return later to catch the land price update, or some other topic important to their operation."

Matt Jungmann, events manager, shares that farmers attend live shows to see equipment and discuss new products with exhibitors. "But farmers have other management issues they're dealing with these days and our online sessions can help with that, too," he notes. "From crop protection to mental health, from soil health to farm safety, we're putting together a targeted list of sessions farmers can engage with."

Recently, Jungmann appeared on the Around Farm Progress podcast where he shared a lot of information about the new event. You can check that out online — Digging into the details of a new virtual farm show.

The Farm Progress Virtual Experience runs Sept. 15-17. The free event will be online at FPVexp.com, to learn more about the event and register now, visit FarmProgressShow.com.



Peterson, Group of Bipartisan Members of Congress Urge Enforcement of Dairy Provisions in the United States-Mexico-Canada Agreement

House Agriculture Committee Chairman Collin C. Peterson of Minnesota led a letter along with Reps. Kind, Reed, Thompson (PA), Brindisi, Fulcher, Torres Small, and Gonzalez (OH) on the implementation of dairy provisions in the USMCA. The letter was signed by 104 Members of Congress.

“As we see the USMCA dairy provisions implemented, we expect Canada and Mexico to be held accountable for their commitments to ensure our dairy farmers have a more level playing field,” said Peterson. “I’m proud to work with Reps. Kind, Reed, Thompson (PA), Brindisi, Fulcher, Torres Small, and Gonzalez (OH) on this important issue. After a tough past few years, American dairy farmers need this agreement fully enforced, and I remain hopeful that the strong bipartisan support shown in this letter, and our partnership with the Administration, will provide some stability for the sector into the future.”



Enforcement of USMCA Dairy Provisions Key, Bipartisan Letter Urges Action

A bipartisan coalition of House lawmakers today sent a letter urging the U.S. government to proactively enforce the United States-Mexico-Canada Agreement’s (USMCA) dairy-related provisions. This letter is being applauded by the U.S. dairy industry, as the benefits that USMCA secures for America’s dairy farmers, processors and exporters will only be realized if the deal is fully enforced.

Representatives Ron Kind (D-WI), Tom Reed (R-NY), Collin Peterson (D-MN), Glenn “GT” Thompson (R -PA), Anthony Brindisi (D-NY), Russ Fulcher (R-ID), Xochitl Torres Small (D-NM), and Anthony Gonzalez (R-OH) led this effort. In total, 104 members of Congress signed the letter.

“A strong demand for U.S. dairy exports abroad drives economic growth and creates jobs here at home. USMCA is designed to allow the U.S. industry to fulfill this demand from two of our largest dairy customers and we cannot allow Canada or Mexico to undermine the important gains secured in this trade deal. We are working alongside Congress, the U.S. Trade Representative and the U.S. Department of Agriculture to ensure Canada and Mexico are held accountable to their trade commitments,” said Tom Vilsack, president and CEO of the U.S. Dairy Export Council.  

According to the International Trade Commission, if USMCA is implemented as negotiated, U.S. dairy exports are projected to increase by more than $314 million a year.

“The support for today’s bipartisan letter demonstrates the incredible impact the U.S. dairy industry has across the country, supporting our rural economies and fulfilling an essential role in feeding America. USMCA is a modernized trade deal that represents new opportunities for our farmers and processors after years of rural recession and the new challenges presented by the current crisis. We must utilize USMCA’s enforcement mechanisms to bring home its hard-fought wins for America’s dairy farmers,” said Jim Mulhern, president and CEO of National Milk Producers Federation.

Specific provisions of concern to the U.S. dairy industry highlighted in this letter include Canada’s administration of its dairy Tariff Rate Quotas (TRQ), the full and transparent elimination of Classes 6 and 7 and related dairy pricing program disciplines, and the enforcement of the side letter agreements with

Mexico that protect market access for U.S. common names cheeses. Urgent enforcement is needed as Canada and Mexico have already demonstrated reluctance to adhere to their trade obligations, as exhibited by Canada’s recently announced TRQ allocations that run counter to the intent of USCMA to expand access to the Canadian dairy market.



Organic Certification Linked to Increased Land Value

Certified organic cropland can command higher rents, a phenomenon that can be overlooked when considering the value of owning, managing or transitioning to organic farmland, according to research by Mercaris and several partners.

Today, Mercaris  issued the first whitepaper  in its Mercoterra project, which investigates the impact of organic certification on land value. Partners in this effort include Croatan Institute, Laird Norton Company, Merge Organics, Midwestern BioAg and People’s Company.

According to the data gathered from a survey of organic farmers and landowners, organic land for row crops on average receives a 25% rent premium over conventional cropland. Among respondents who rent both conventional and organic land, Mercaris found that they pay a price premium of $68 per acre annually for certified organic land.

“We’ve known for a long time that there is a substantial premium for organic crops, but these results indicate that the financial impact to organic farmers is broader,” Erin Leonard, manager of this initiative at Mercaris, said. “What we’re seeing is evidence that organic certification can go beyond income and boost the overall value of the farm operation.”

The boost in value was not universal, however. Some reported no premium for the organic land they own or rent, and more research needs to be done to determine the true extent of these premiums. Beyond rental values, Mercaris found that most organic landowners believe they can sell their land for a higher value then when they bought the land due to its organic status. Sixty-percent of organic owner-operators stated that net operating income has increased since the land has been farmed organically. Lastly, 70 percent of the Mercaris survey respondents overall converted the organic land themselves, implying that most organically certified land is farmed by its original operator.

“Organic commodity farming has grown steadily over the last decade, about 8% per year, and U.S. demand is still higher than domestic supply,” Leonard said. “Continued growth should lead to more farmers and land owners needing to understand the correlation between production practices and land value.”

“One of the barriers to organic certification for many farmers is that they lack a full picture of the impact it has on the whole operation,” Kellee James, Mercaris CEO, said. “We hope to change that with the Mercoterra initiative.



 Canadian Federal Court Announces Final Trial Date to Resolve Patent Dispute between Farmobile and Farmers Edge

Farmobile, Agriculture’s Independent Data Company, today announced that the Federal Court of Canada (Court File No. T-449-17) set April 19, 2021 as the final trial date in Farmobile’s patent infringement lawsuit  against Farmers Edge Inc. (Farmers Edge). In the Canadian lawsuit, Farmobile seeks over $20 million CAD in damages and an injunction prohibiting Farmers Edge from using the infringing technologies.

"We look forward to resolving this matter and securing justice once and for all,” said Jason Tatge, Farmobile CEO and co-founder. “We’ve invested significant time and money to develop our patented technologies, which directly benefit customers by helping them to optimize the efficiency and profitability of their operations. We continue to offer innovative tools to farmers and ag retailers that enable real-time, in-season decisions.”

In the lawsuit, Farmobile claims that Farmers Edge’s FarmCommand platform infringes Farmobile’s Canadian Patent No. 2,888,742, Farming Data Collection and Exchange System. Earlier this summer, Farmers Edge sought leave of court to file a motion for summary judgment, but the request was denied and the Court awarded Farmobile $5k CAD for costs associated with defending against the leave request (Order Citation 2020 FC 688).  Farmers Edge later submitted a Notice of Motion indicating its intent to appeal the Court’s ruling on its summary judgment request, but no further action has been taken by it in this regard.

The 15-day judge trial marks the conclusion of a longstanding patent dispute before the Federal Court of Canada. The trial will take place in Vancouver, British Columbia beginning April 19, 2021 at 9:30 a.m. PST/PDT.

Farmobile specializes in interoperable data. Its data collection and standardization technology enables farmers to collect, share and even monetize their farm data to improve efficiencies and increase farm revenues. To learn more about Farmobile visit www.farmobile.com.



AGCO Announces Virtual “Ride and Drive” Experiences for Popular RoGator and TerraGator Application Equipment

AGCO (NYSE: AGCO), a global leader in the design, manufacture and distribution of agricultural machinery and solutions, announced today virtual “ride and drive” experiences that provide in-cab demonstrations of its popular RoGator® and TerraGator® application equipment. The company is rolling out virtual ride and drives and other engagement opportunities at applylikeapro.com/virtual-magie-2020.

In-person ride and drives have been a staple experience at AGCO events and dealerships for many years to allow potential customers to obtain operational experiences with advanced agricultural equipment. The new virtual ride and drives ensure that customers can observe much of what they always have at live events in an even more convenient setting.

“Ride and drives are one of the highlights our customers experience at events like IFCA’s MAGIE show, which was canceled this year because of coronavirus concerns,” said Greg Pumo, brand manager, AGCO Application Equipment. “But a virtual ride and drive is the next-best thing, and we’re excited to roll it out for our dealers, the application community and anyone else who has always wanted to see what it’s like behind the wheel of these impressive machines.”

The RoGator Virtual Ride and Drive allows users to observe the RoGator C Series’ popular LiquidLogic® system, one-touch fold, recirculation feature, section and boom height controls, and instant on/off nozzle capabilities. Drivers will also be able to examine the Raven™ last pass and VSN™ visual guidance system as they appear on the cab’s display.

The TerraGator Virtual Ride and Drive showcases the TerraGator C Series’ precision and versatility as the equipment efficiently covers many acres of crops. Users will witness the unit’s multiple cruise speeds, the boom’s fast and easy unfold process, shuttle shift capability, and intuitive technology interfaces. Also demonstrated is TerraGator’s Raven Slingshot® functionality, which allows operators to create jobs, select prescriptions and maps, and update the system with completed tasks.