Ag Groups Speak Up on Conservation Title
Washington--In a letter to Senate Agriculture Committee Chair Debbie Stabenow (D-Mich.) and Ranking Member Pat Roberts (R-Kan.) this week, a group of national agriculture organizations spoke up about the conservation title in the farm bill. The letter was sent just prior to the committee’s hearing “Strengthening Conservation Through the 2012 Farm Bill,” which took place yesterday.
The American Farm Bureau Federation co-signed the letter along with nine other national agriculture organizations.In the letter, the groups expressed support for the conservation title, which was developed as part of the Joint Select Committee on Deficit Reduction process. “That framework, as we understand it, contained provisions strongly supported by the farmers our organizations represent: simplification, flexibility and consolidation,” said the letter.
“The number and complexity of USDA conservation programs is daunting to many growers,” continued the letter. “Consolidating 23 programs into 13—reducing the number almost by half—is welcome news.” The group applauded Sens. Stabenow and Roberts for simplify the conservation programs by keeping the same tools but merging them into fewer programs.
The groups also said they supported the conservation title’s focus on working lands conservation. “These programs have grown to be the largest in the conservation portfolio, and for good reason,” said the letter. “Farmers value their ability to partner with USDA in protecting and conserving soil, water and other natural resources, particularly as a tool to help them prevent and/or comply with regulation. Agricultural conservation programs truly provide a win-win in this respect.”
Agriculture Secretary Vilsack: Tax Laws Create ‘Land Lock’
Washington--Congress needs to change the tax code so that farmers and landowners are better able to sell their land to beginning farmers and ranchers, Agriculture Secretary Tom Vilsack said last week at USDA’s Agricultural Outlook Forum.
“There’s really no reason for someone with land that appreciates in value to consider the sale of that land to anybody until after they have passed away, under our current system,” Vilsack said. “That creates a land lock we need to address. And there are opportunities, should Congress so desire, to take a look at both estate and income taxes to free up opportunities for transfer.”
A handful of Bush administration tax cuts, already extended twice by Congress, will expire at the end of this year. Estate taxes will rise to as much as 55 percent, from the current 35 percent, and the individual exemption will plunge to $1 million, from the current $5 million. Capital gains taxes will go from zero to 10 percent for those in the lowest tax brackets (15 percent or lower) and from 15 percent to 20 percent (or 18 percent for assets held longer than five years) for those in higher income brackets. The American Farm Bureau Federation is urging Congress to extend the current estate tax and capital gains tax levels.
Vilsack, himself a farm owner, said he sympathizes with farmers’ and ranchers’ concerns about the estate tax, “because if something doesn’t happen at the end of the year, the estate tax [exemption] goes down to a point where with land values increasing it doesn’t provide the protection that we have always wanted to provide for farmers and small business owners to be able to transfer that opportunity without having to sell the farm itself just to pay the tax.”
Court Backs Need for Science in Federal Water Rules
Washington--The American Farm Bureau Federation scored a victory for sound science in federal environmental regulations. A U.S. District Court in Tallahassee, Fla., ruled that Environmental Protection Agency-imposed nutrient criteria for Florida streams and unimpaired lakes are unlawful because they are arbitrary and have no scientific basis.
The ruling resolves several challenges to federal numeric nutrient criteria imposed by EPA on Florida waterways. The court upheld EPA’s ability to issue federal standards under the particular facts at issue in Florida and upheld some of the particular EPA standards. However, the court agreed with arguments raised by AFBF and its co-plaintiffs that two key types of restrictions were unlawful. This aspect of the ruling underscores that sound science must support such costly, federally imposed actions, according to AFBF.
One of the key concerns of the court, and a central theme asserted by the AFBF group, was that EPA could not show that the streams criteria were needed to prevent harm to the environment, as required by Florida law.
“EPA attempted to impose standards that would prohibit any increase above naturally occurring nutrient levels in pristine waters,” explained Ellen Steen, AFBF general counsel. “The court recognized that EPA was arbitrary in assuming that any increase above pristine nutrient levels is harmful.”
EPA has until May 21 to revise the numeric nutrient criteria. AFBF is working with Florida and other industry groups in urging EPA to approve an alternative set of numeric nutrient criteria recently developed by the state’s Department of Environmental Protection.
AFBF Economist: Rising Fuel Prices ‘Not a Surprise’
Washington--Some recent reports show average gas prices have climbed to the highest February levels on record, hitting $3.53 per gallon last week. But according to AFBF Chief Economist Bob Young, the rising prices aren’t a big surprise.
“Traditionally, prices dip throughout the winter and then begin to creep up from there,” Young said in a Newsline radio story. “It’s just the nature of the game that as you get into the summer season, people are driving more, you get that upside pressure on prices.”
The Energy Information Agency, which is the Energy Department’s economic unit, recently forecast national gas prices of $3.60 to $3.70 for April through August, according to Young. That’s about the same as last year.
Surface Transportation Bills on Hold for Presidents’ Day Recess
Washington--Work on surface transportation reauthorization bills was stop and go last week in the House and the Senate, with both chambers ultimately putting their bills off at least until lawmakers return to Capitol Hill the week of Feb. 27, after the Presidents Day constituent work period.
Senate Majority Leader Harry Reid (D-Nev.) said he is committed to getting the Senate reauthorization bill, Moving Ahead for Progress in the 21st Century (S. 1813), passed in March.
Growers want to make sure the Senate legislation includes an amendment offered by Sens. Jeff Merkley (D-Ore.), Patrick Toomey (R-Pa.) and Roy Blunt (R-Mo.) that would allow farmers and ranchers who live near state borders to transport their products to the closest processing facilities, even if it may be in a neighboring state.
The House transportation bill (H.R. 7) contains Farm Bureau-supported provisions that would clarify the hours of service exemption for agriculture and exempt farm vehicles, including the individual operating the vehicle, from any requirement related to commercial driver’s licenses, drug testing and hours of service.
Another important provision would allow farmers and custom harvesters with a Class A commercial driver’s license to transport up to 1,000 gallons of diesel fuel without having to obtain a hazardous material endorsement if the service vehicle is clearly marked with a label reading “Diesel Fuel.”
Adoption of Ag Biotechnology Up More Than 8 Percent
Because of their tremendous environmental and economic benefits, farmers around the world continue to adopt genetically engineered crops, according to a report released Tuesday by the International Service for the Acquisition of Agri-Biotech Applications. The ISAAA report, Global Status of Commercialized Biotech/GM Crops: 2011, says a record 16.7 million farmers in 29 countries are growing biotech crops on 395 million acres.
According to the report, “such adoption represents a 94-fold increase in hectares planted since 1996, making biotech crops the fastest adopted crop technology in recent history.”
“This year’s ISAAA report further confirms what we have known all along: that agricultural biotechnology is a key component in sustainable crop production,” said Dr. Cathleen Enright, executive vice president of food and agriculture for the Biotechnology Industry Organization. “When you look at the rising number of acres of biotech crops planted each year (395 million in 2011 compared with 366 million in 2010), and the increasing number of farmers who have chosen this technology (16.7 million in 2011 compared with 15 million in 2010), it’s obvious that biotech crops are delivering value to more and more growers around the world,” she said.
Bloomberg Survey Shows Farmers are Planning Big
Chicago--A recent survey by Bloomberg indicates that farmers this year will plant the most acres since 1984, sowing corn, soybeans and wheat on 226.9 million acres. Bloomberg compared the added 2.5 percent gain to an expansion the size of New Jersey.
Farmers are planning big because of the historically high crop prices this year, which the Agriculture Department estimates increased net farm income 28 percent to $100.9 billion and boosted average farmland value to a whopping $2,350 an acre.
“There is unlikely to be any ground that won’t be planted this year,” said Illinois corn farmer Todd Wachtel, who plans to expand his corn fields by 21 percent. “Farmers know that they have to plant more when prices are high because they may not last.”
Corn and soybeans top the list of crops farmers are looking to increase. The survey shows that farmers will plant corn on 94.329 million acres, up 2.6 percent from last year. This is the greatest increase since 1944. Soybean acres will likely reach 75.309 million—the fifth highest in history.
“The area is available to have huge crops this year,” said Paul Meyers, a vice president at Foresight Commodities Services, Inc. and the former head of grain-market analysis at USDA. “We are headed for a surplus-supply situation.”
The Bloomberg survey included insight from farmers, bankers and analysts nationwide.
Expanded E. Coli Testing on Hold Until June
Washington--The March deadline for meat processing companies to start testing raw ground beef for six strains of potentially deadly E. coli bacteria has been moved to June 4. The extension will give processors additional time to ensure that testing methods are accurate, according to the Agriculture Department. According to USDA, testing for the strains will result in 110,000 fewer cases of foodborne illness each year.
The additional regulation and testing will “needlessly cost tens of millions of federal and industry dollars,” according to James Hodges, executive vice president of the American Meat Institute.
FSA Can Help New Farmers Buy Land
Washington--A new post to the Rural Community Building Blog notes that the Agriculture Department has announced the nationwide launch of the Beginning and Socially Disadvantaged Farmer and Rancher Land Contract Guarantee Program. The program is administered by the Farm Service Agency and is designed to help new farmers buy land by providing sellers a federal guarantee on land contract sales of up to $500,000. In this way, it shields sellers from the risk of buyer default and encourages them to enter into such agreements with new and disadvantaged farmers.
The program was initially established in nine states through the 2002 farm bill. The 2008 farm bill expanded it nationwide and made it permanent. USDA’s Farm Service Agency issued the final rule for the program last December. In order to find out more about the program, contact your local FSA office.
Farm Bureau has various initiatives to support beginning farmers and ranchers. In 2009, Farm Bureau partnered with USDA’s National Agricultural Library to provide information and training to beginning farmers and ranchers through the Start2Farm website, a resource site funded through the USDA Beginning Farmer and Rancher Development Program. The American Farm Bureau Federation is also hosting the Beginning Farmer and Rancher Conference in conjunction with the national Young Farmers & Ranchers Leadership Conference, Feb. 18-20, in Grand Rapids, Mich. For a variety of succession planning tools, visit Legacy by Design.
California FB’s Wenger Calls for Immigration Solutions
Washington--Focusing on the lack of a workable, effective program to allow immigrant workers to earn legal authorization to work on U.S. farms and ranches, the president of the California Farm Bureau Federation told Congress on Thursday that without such a program, passage of a proposed employment-verification rule would severely disrupt harvests of locally produced food.
California Farm Bureau President Paul Wenger testified in Washington, D.C., at a hearing of the House Judiciary Subcommittee on Immigration Policy and Enforcement. Congress has been considering a proposal to require all employers to check employees’ work status with a database known as the E-Verify system. Farmers rely on an immigrant workforce and say many of their employees might not qualify to work under E-Verify, even though the employees have worked in this country and become part of their communities.
“E-Verify without a workable, economical way to ensure a legal agricultural workforce will be a disaster for American agriculture,” Wenger told the committee, adding that experience has shown that “there is no realistic prospect of a domestic workforce for agriculture, even with current high unemployment rates.”
As the U.S. labor force has grown older, more urban and focused on year-round jobs with predictable work hours, Wenger said, “our native-born seek other jobs outside the agriculture sector.” That means that farms and ranches rely on hundreds of thousands of immigrant workers—and experts estimate many do not have legal authorization to work in the U.S.
Bill Gates Speaks Out for Ag Research
Seattle--The relative lack of money devoted to agricultural innovation and research
was a key point in this year’s annual letter from Microsoft founder Bill Gates
on the Bill and Melinda Gates Foundation’s 2012 priorities. “Given the central
role that food plays in human welfare and national stability, it is
shocking—not to mention short-sighted and potentially dangerous—how little
money is spent on agricultural research,” Gates wrote.
According to a foundation study, only $3 billion is spent each year on
research dedicated to the seven most important crops, which include wheat,
corn, rice, cassava, sorghum, legumes and sweet potatoes. Out of that total,
about half comes from countries’ public funds, $1.2 billion is from private
companies and $300 million comes from the Consultative Group on
International Agricultural Research. In 2010 alone, the foundation made
$2.4 billion in grant payments to a number of agricultural development programs.
In his letter, Gates noted that the world population is projected to grow to
9.7 billion by 2050, which makes it imperative to help poor farmers sustainably
increase their productivity so they can feed themselves and their families. But
this will be possible only if agricultural innovation is a priority, he
concluded.
Idaho Cattle Association talks Animal Welfare Legislation
Boise--Wyatt Prescott of the Idaho Cattle Association addressed the Idaho Farm Bureau Legislative Leadership Conference concerning ICA’s effort to add a felony provision to the state's animal welfare law during the 2012 legislative session.
After consulting with other producer groups in Idaho, ICA members passed a resolution last Nov. 15th during their annual meeting in Sun Valley.
The ICA thinks that adding the felony provision to Idaho statute would eliminate the need for the ballot initiative and make the state less of a target for the Humane Society of the United States.
Farm Bureau members grilled Prescott asking about normal livestock practices like branding, removing horning and castration are exempt from the state's animal cruelty provisions, but ICA officials are concerned that if the HSUS gets involved in the ballot initiative, it would be much more severe and could seek to redefine animal welfare.
Prescott told Farm Bureau members that there are no guarantees, "we believe (the legislation) will take a significant amount of attention away from out state."
That’s because Idaho is just one of only three states that doesn't have a felony provision for animal cruelty, Idaho is ranked 50th of 51 states and the District of Columbia on the HSUS hit list of those most friendly toward animal rights.
The Idaho Farm Bureau did not take a stand on the issue during their annual meeting in December opting to see the language of the legislation before making a stand.
The resolution was printed this week with a hearing scheduled next week, according Prescott.
Markets Good, but Volatile: Clark Johnston
Boise--At the Idaho Farm Bureau’s Annual Winter Marketing Seminar, Annalyst Clark Johnston told a packed house that despite favorable market conditions, farmers are still cautious.
“Producers are a little more mindful this year than in the past,” said Johnson. “We continue to see producers change the class of wheat or change to different commodities all together in an attempt to lower their costs.
He says Chicago wheat prices decreased by 18% while heating oil futures are up15% taking diesel prices with it. Johnston told the House at the Downtowner that: “Each year we see new challenges as we look for opportunities to sell our crops for the best prices but also manage our costs.”
Johnston says it’s shaping up to be a year where its smarter to spend more time managing input costs that will directly help the bottom line.
January markets held true to form, moving the corn market 40 cents lower than the day it was released. “It’s not that the market always moves lower but it’s making a volatile move whether higher or lower at that time,” said Johnston.
Johnston showed members a series of charts that showed interesting historical data looking at January and February reports from the past 13 years. The corn market traded 12 cents lower to 15 cents higher. Since 2007 the markets have experienced an increase in volatility during this same time frame. Volatility is the norm this time of year. The least volatile year was 2010 when the market only moved 30 cents lower. The remaining years the trading range has been 60 cents lower in 2009 to 80 cents higher in 2011. This year the futures traded 58 cents lower within the first 5 trading days after the report.
Johnson told the crowd over and over that markets are more volatile simply because prices are higher. “There’s some truth to the price model, but there’s other factors that contribute to the market movement. One of the contributors is the amount of contracts that have traded in the market before and since 2006.”
In the years leading up to 2006 large traders held positions totaling more than a 100,000 contracts. “Since then we’ve seen these large traders accumulate positions of 400,000 to 500,000 combined contracts. So of course we‘re seeing added volatility.” said Johnston. “We won’t debate whether or not the large traders are good or bad for the markets but let’s just say they do give us the opportunity to merchandise our commodities at better prices throughout the year and quite often if we miss the first one we will get another chance.”
Johnson went on to discuss wheat to a dead silent crowd. “The stocks to use ratio is expected to increase this year. Baring something unforeseen in the world this will leave the wheat prices at the mercy of the corn market.”
Johnston says that’s not all bad. “We’ve seen the local feed wheat markets stay competitive with the domestic flour market in pricing since last harvest. With the carry in the wheat futures you should continue to look for your opportunities to sell either forward fixed price contracts or hedge to arrive contracts for new crop.” Johnston added that strength in the market will be quick and short lived so its important to have pricing objectives in mind and move quickly when the market reaches target prices.
Johnston says it’s always important to remember to sell when someone wants to buy. “Remember, each day that goes by moves us one day closer to 1st crop.”
McDonald House Gets Women’s Leadership Committee Donation
Boise--Two Carloads of badly needed groceries pulled into the parking lot of the Ronald McDonald House in Boise Monday afternoon.
Members of The Idaho Farm Bureau’s Women’s Leadership Committee cheerfully unloaded the carloads of food and when they were finished presented the House with checks totaling more than a thousand dollars.
“This donation is timely,” said Ronald McDonald House Director Mindy Plumlee. “People tend to donate around the holidays and then supply gets scarce, we really need the donations and Farm Bureau always comes through when we need it the most.”
Bags of groceries stacked in the House living room along with laundry detergent, gently used children’s clothes, diapers and even popcorn, “You have to have popcorn” said Carol Guthrie President of the IFBF Women’s Committee.
The mission of the Ronald McDonald House is to provide a “home away from home” for families of sick and injured children getting medical treatment at Saint Lukes Medical Center across the street. Plumlee says more than 500 families a year use the facility and they're booked just about every week.
"We really appreciate the donations because we have a full house and most of our families have family members in their rooms, this donation couldn't have come at a better time," said Plumlee.
The Women’s Committee rolled up their sleeves and cooked dinner for the residents of the House, a ham dinner with all the trimmings. “We’ve been doing this for 16 years,” said Guthrie. “There’s nothing like a home meal.”
The McDonald House was built in the early 1900s and purchased by the late J.R. Simplot for the Ronald McDonald Foundation. Families are charged just $10 a night; the balance is paid with public and private donations to the Ronald McDonald house, and any family who is unable to pay the $10 is not turned away.
“The grocery donation will go right into our pantry and will be used for dinner tonight," said Plumlee.
“The Ronald McDonald House donation is part of the annual ‘Food Check-Out Day’ that was started by American Farm Bureau. We have the best, most plentiful and cheapest food supply in the world, we're just sharing that good fortune with those who need it,” said Chairwoman Carol Guthrie. "It just gives you a warm feeling to help these families out."
The money donated to the house was collected from County Farm Bureaus across the state. “We’ll spend the cash donation on food and things needed to support families during their stay here," said Plumlee.
At the Jefferson County Fair in Rigby its fair time and all the action on this day is in the livestock barn.
