Farmers Increase Profits with Solar Leases

Joanna Schroeder

You hear some news about farmers receiving payments for leasing land for wind turbines, but some growers are also receiving lease payments for solar power projects. For example, Farmland Partners recently entered into two ground lease agreements for photovoltaic solar power generation facilities on two farms in South Carolina.

Farmland Partners logoThe agreements offer the right to lease up to an aggregate of about 979 acres that may be converted, at the tenant’s cost, from farming operations to energy generation. The two farms are currently leased to local farmers for a blended annual rental rate of approximately $210 per acre for the 2,579 tillable acres of the farms. Under the lease agreements, the initial average annual rental rate will be $822 per acre for the 979 acres subject to solar development, with annual rent increases of 1.5 percent beginning in the fifth year of the lease terms. In other words, Farmland Partners will pay “rent” to the farmers to build solar farms on the land.

“These South Carolina solar leases further demonstrate the additional upside rent potential for non-ag uses we have on our farms,” said Paul Pittman, CEO of the Company. “We continue to focus on developing supplemental revenue streams for the farms we own in order to increase returns for our stockholders.”

With these Agreements, Farmland Partners will have three solar leases in place, on a total of 1,179 acres, and a wind lease on a farm, on approximately 28 acres, all located in North and South Carolina.

Uncategorized

Economist Reports to #AFBF16

Kelly Marshall

afbf16-land-valuesWeak crop prices and a dramatic decline in livestock prices lead to a decrease in the 2015 farm net income, according to an economist from the Federal Reserve Bank, Nathan Kauffman.  Since 2013 farm income has actually dropped by 55 percent, Kauffman recently told attendees of the American Farm Bureau Federation‘s 97th Annual Convention and IDEAg Trade Show.

“I don’t have the best of news to share this morning,” Kauffman said. The “sky is not falling,” he added, “but this is definitely a period of adjustment.”

The oddity is that the decline in income has not been followed by a decline in land values.

“Farmland values have, in many ways, defied expectations associated with lower crop values,” he said.

A gradual buildup of corn, soybeans and wheat in the global supply chain is one of the reasons for the lower commodity prices.  “Global inventory is very, very high,” he explained.

At the same time, key demand factors have also “softened significantly,” he said, specifically mentioning ethanol production, which has been nearly flat in the past few years, and U.S. exports to China, which have decreased steadily as growth has slowed in that market.

An additional factor is credit conditions, which have deteriorated in the past two or three years. A strong dollar, coupled with a somewhat sluggish global economy, has made selling crops overseas more difficult, he added.

Land values have stayed high, in part because of the lack of land on the market, but prices can very depending on the quality of the land. Marginal ground is seeing some decreases, but high-quaily land is still very much in demand. Rented ground has also been slow to follow the decrease in crop prices.

“It’s not what you would have expected when corn drops from $6 (per bushel) to $3,” he said.

AFBF, Ag Groups, Events

AGree Tells Prez Candidates to Focus on Ag & Food Policies

John Davis

AGree1A coalition of stakeholders in the food and agriculture systems is urging the presidential candidates to focus on the policies that can improve the health of America’s families, economy, farms and the environment. In this news release from AGree, the call includes a strategy for elevating food and agriculture as a national priority.

“Many people don’t realize the degree to which food and agricultural policies shape our nation,” said Dan Glickman, AGree co-chair and former U.S. Secretary of Agriculture. “Farmers and ranchers and the food and agriculture supply chain from ‘farm to fork’ contribute roughly 5 percent of the gross domestic product (GDP) and employ more than 12 million people, yet they face challenges with market volatility, drought, floods, disease, food safety and a reliable labor supply. Policy changes are urgently needed to overcome these challenges.”

AGree, a bipartisan group driving positive change in the food and agriculture system, has engaged more than 2,000 food and agricultural thought leaders to identify key issues and develop consensus recommendations to ensure American agriculture continues to thrive, providing the safest, most affordable food supply in the world. These recommendations are the basis of AGree’s Call to Action being presented to campaigns on both sides of the aisle.

“Food and agriculture-related businesses contributed $878 billion to the U.S. GDP in 2013, and it’s critical to enact policy changes that will enable agriculture to continue to drive innovation, allow access to a stable workforce, protect the environment and empower future generations to provide safe, nutritious, affordable food,” said Jim Moseley, AGree co-chair and former U.S. Deputy Secretary of Agriculture.

The Call to Action advocates smart policy changes to strengthen the food and agricultural sector, which, in turn, will strengthen our nation.

– Strongly support research and innovation for food and agriculture. Research drives innovation and agricultural research on weather volatility, obesity and water quality require greater focus, while addressing underfunding.
– Ensure a stable workforce through immigration reform. Agriculture faces challenges of an unreliable labor supply and would be helped by a simple, efficient and fair guest worker program and a system through which citizenship can be earned by undocumented immigrants currently in the U.S.
– Empower the next generation to ensure a safe and affordable food supply. The average age of U.S. farmers is 58 and new entrants face enormous challenges, including land and equipment acquisitions.
– Strengthen risk management policies and practices. Balancing risk protection and costs, while integrating data on soil, yield risk and conservation practices are needed.
– Bolster conservation and working landscapes. Regulations alone cannot ensure the landscape-level actions needed, so policies that encourage producer-led, watershed-scale efforts involving the supply chain and demonstrating effectiveness and a measurable return on investment must be implemented.

The group goes on to point out how improving health and nutrition can also help reduce health care costs.

Ag Groups, politics

#PotatoExpo is Big Event

Chuck Zimmerman

Since I had never been to the Potato Expo before I had no idea what to expect so I was surprised to find out what a huge event it really is!

potato-expo-16-hardyRandy Hardy of Idaho is past chairman of the National Potato Board and was one of the co-chairs of the expo. “I was in on the initial thought process of having a Potato Expo about 10 years ago,” he said. “We felt if we had all of the attendees that attended the various potato meetings around the country we’d get 800 or 900 people. This year, we’re going over 2100 …the success has just been phenomenal.”

Hardy was excited about the roll out of the Spud Nation food truck but he was also very pleased with the technology seminars they offered at the expo. Next year he says the meeting will be in San Francisco.

Learn more in this interview – Interview with Randy Hardy, Potato Expo Co-chair

Potato Expo 2016 Photo Album

Coverage of the Potato Expo is sponsored by Coverage of Potato Expo is sponsored by Nufarm
Audio, Potato

Bee Buzz at #PotatoExpo

Cindy Zimmerman

There was a lot of buzz about bees at the 2016 Potato Expo this week in Las Vegas.

potato-expo-bayer-beckyThe National Potato Council announced this week that they are joining the Bayer CropScience Feed a Bee initiative as an official partner committing to enlist America’s potato farmers to help feed bees.

Dr. Becky Langer, manager of the North American Bee Care Program says Bayer launched Feed a Bee in March of 2015 to address the problem of lack of food and nutrition for bees and it has been more successful than they could have imagined. “We started out with the goal to plant 50 million flowers and to partner with 50 organizations,” she said. “To date, we’re at 65 million flowers and have 80 partners in the program.”

Langer says in 2016 they plan to expand to have more national partnerships, such as with the National Potato Council, and more educational outreach to young people.

Becky talks more about Bayer Bee Care in this interview: Interview with Becky Langer, Bayer CropScience

potato-expo-vitaminbeeOne of the ways to communicate with kids is Vitamin Bee, who combines a message about the importance of bees with healthy eating.

Creator Geoffrey Kater says Vitamin Bee stars in a series of short videos and interactive materials that inspire children to have fun while learning about healthy eating and nutrition. “There’s videos, there’s games, and we have a lot of recipes for parents,” said Kater.

In the evolution of Vitamin Bee, Kater got involved with Bayer to also include messages about pollinators. “It became very clear to me that bees are important to the food that we eat,” he said. “So we decided to do some videos that highlight pollination, preservation of bees, what kids can do to help preserve bees, and being aware of bees.”

Learn more in this interview with Geoffrey: Interview with Geoffrey Kater, Vitamin Bee

Potato Expo 2016 Photo Album

Coverage of the Potato Expo is sponsored by Coverage of Potato Expo is sponsored by Nufarm
Audio, Bayer, Bees, pollinators, Potato

Federal Grants Workshop at #AFBF16

Cindy Zimmerman

Navigating the federal grant system was the topic of a workshop at the American Farm Bureau Federation’s 97th Annual Convention and IDEAg Trade Show.

Decisions about whether a farm or agribusiness can or should apply for a federal grant requires significant foresight and self-analysis, according to grant-writing and rural entrepreneurship experts who spoke at the workshop.

afbf16-grantsA value-added support team in Iowa is made up of agribusiness experts from Iowa State University, state government and other agencies. The group meets once a month to review confidential start-up proposals. “It’s kind of like ‘Shark Tank,’ but friendlier,” joked Denny Harding, Iowa Farm Bureau Federation’s bio-economy manager and a member of the team.

“Our purpose is to help them discover their weaknesses and some of their opportunities,” Harding said. “It really does seem to help a lot of these companies that want to get started. And sometimes you can do just as much by saying, ‘Hey, this needs a lot of work and here’s what you can work on,’” he said.

Other speakers during the workshop were James Matson, owner of Matson Consulting LLC, a grant-writing specialty firm; and Christopher Cook, Virginia Farm Bureau Federation’s assistant director of rural development. There are a number of federal grants available from USDA, such as Value-Added Producer Grants, the Rural Energy for America Program and the Sustainable Agriculture Research and Education Program. There are also grants available to help improve farmers’ markets and promote local food programs.

AFBF

AFBF Patriot Project

Cindy Zimmerman

afbf-pariotThe Farm Bureau Patriot Project, a mentoring program that connects military veterans interested in agricultural careers with experienced farmers and ranchers to help them develop professional networking and business planning skills, was a featured workshop during the AFBF 97th Annual Convention & IDEAg Trade Show this week in Orlando.

fb-patriotMilitary veterans in production agriculture are finding that the farming and ranching lifestyle provides therapeutic and financial support for their transition to civilian life, but many can benefit from an experienced mentor to coach them through the start-up stages of agribusiness development.

Veteran farmer Damon Helton of Arkansas has found it valuable to connect with his mentor, Jeremy Allen, through AFBF’s Patriot Project, a pilot program that will fully launch later this year. “This program has opened my eyes to the business side of agriculture,” Helton said.

American Farm Bureau is conducting a pilot of the FB Patriot Project in Texas and Arkansas in partnership with the Texas Farm Bureau and Arkansas Farm Bureau.

AFBF

Ag Secy Vilsack Talks SOTU, Trade & Climate

Joanna Schroeder

USDA Ag Secretary Tom Vilsack held a press call yesterday to discuss President Obama’s last State of the Union (SOTU) address. Vilsack, who has served in the capacity of Ag Secretary throughout Obama’s Administration, was in attendance during the speech. He said he is very proud to have been part of an administration that has basically taken the country from a brink of an economic collapse to where we are today. He noted that there is still a lot of work to do and one way change will continue is through what President Obama termed the “innovation economy”.

Ag Secy Vilsack at AFBF 2016Part of the strategy of the innovation economy, said Vilsack, is to expand the country’s reach around the world as through programs such as the Trans Pacific Partnership (TPP). In the agricultural area, it would bring about a major boost to markets that today are a bit soft. The TPP allows an extension into the Asian market, which is a rapidly growing market. Vilsack noted that the country’s NPP is roughly 40 percent of the global GDP with 47 percent of the country’s current trade taking place in these countries.

“It’s an opportunity for us, not only to balance the influence of China, to enable the United States of America to write the rules, if you will, for future Asian trade based on high standards, that recognize the need to protect environments and labor, while also creating a science-based approach to sanitary and phytosanitary rules and regulations,” said Vilsack. He continued by saying it is also an opportunity for America to demonstrate global leadership. He also called on Congress to study the benefits of TPP, understand the benefits and take Congressional action.

In addition, Vilsack highlighted U.S. leadership in reducing the risks of climate change and noted the role agriculture is doing in doubling its reduction of emissions over the next 10 years. He anticipates U.S. agriculture will provide significant leadership in this area. Vilsack concluded his remarks by stressing the role USDA is playing in helping communities transition into new economies.

Listen to Ag Secretary Tom Vilsack’s SOTU press conference here: USDA Vilsack SOTO Presser

Audio, politics, Trade, USDA

NuFarm Working to Tame the Zebra

Cindy Zimmerman

nufarm-zebra-hatChip, the Nufarm zebra has been roaming the rows at the 2016 Potato Expo this week with a goal of educating attendees about new research into fighting zebra chip.

Zebra chip is a potato disease vectored by a psyllid, according to Bob Bruss with Nufarm technical services. “This is a problem that’s been slowly growing and has become more of a concern,” said Bruss. The disease was named after the zebra because it causes characteristic dark brown radiating striped patterns that are amplified upon frying for potato chips, rendering them unusable.

potato-expo-nufarm-1Texas A&M University (TAMU) has been doing extensive research into zebra chip disease that Bruss says holds some new promise. “They found that a program of Mycoshield® could give very good control of zebra chip disease,” said Bruss. “Right now the only thing we have to manage zebra chip are the use of insecticide to control the psyllid.”

Nufarm’s Mycoshield® is currently only registered on pears, peaches and nectarines but Bruss says they are optimistic that this research could hold promise. “We’re meeting and talking with people here about how Mycoshield along with insecticides could be a benefit in the northern potato growing areas,” he said.

Listen to Chuck’s interview with Bruss here: Interview with Bob Bruss, Nufarm

Potato Expo 2016 Photo Album

Coverage of the Potato Expo is sponsored by Coverage of Potato Expo is sponsored by Nufarm
Audio, Nufarm, Potato

#SpudNation Throwdown Competition

Cindy Zimmerman

Spud Nation Throwdown finalists: Heather Banter, Daniel McCarthy, Bridgette Blough (winner)

Spud Nation Throwdown finalists: Heather Banter, Daniel McCarthy, Bridgette Blough (winner)

One of the main events at the Potato Expo in Las Vegas this week was the first SPUD NATION THROWDOWN COOK-OFF. The live competition featured the top three finalists of a nationwide recipe contest for food truck chefs and the winner was named Top Spud and with a prize of $5000.

Congratulations to Bridgett Blough (pictured on the right) from the food truck Organic Gypsy for winning the Spud Nation Throwdown Cook-off! Her winning recipe was Green Tahini Potato Soup. Listen to Chuck’s interview with her here: Spud Nation Throwdown winner Bridgette Blough

Chuck interviewed all three of the finalists. Listen to his interviews with Heather and Daniel below:
Spud Nation Throwdown finalist Heather Banter Spud Nation Throwdown finalist Dan McCarthy

Potato Expo 2016 Photo Album

Coverage of the Potato Expo is sponsored by Coverage of Potato Expo is sponsored by Nufarm
Audio, Food, Potato