Vilsack: Farmer Greatest Job on Earth

Joanna Schroeder January 19, 2016

Being a farmer is the greatest job on earth noted USDA Secretary Tom Vilsack. He spent the morning back in his home state of Iowa (Vilsack is a former Iowa Governor) to kick off the 10th Annual Iowa Renewable Fuels Summit. He kicked off his speech noting that he is proud of the work the USDA has done to help expand the industry.

The key focus on his remarks were the amount of people, both consumers and legislators, who don’t see the benefits of this industry the way we see them, who are attacking the Renewable Fuel Standard (RFS) in the courts, and attacking the Renewable Fuel Standard in the halls of Congress. “But we continue to point out to those who oppose this industry, the benefits of the country.”

For example, the ethanol industry has helped reduce the price of gas at the pump, even as gas prices go down, and given consumers choice at the pump. He also noted biofuels benefit the farm and rural communities, and help to reduce the trade deficit.

Vilsack discussed several of the programs the USDA has implemented to help grow and improve the industry including the Biomass Assistance Program, Biomass Research Centers and Loan Guarantees. But he said he was most excited of the new markets that are being developed. He also highlighted the Farms to Fly program that is looking at producing renewable biofuels for the aviation and shipping industry as well as biofuels for our military.

We need consumers to understand that every time they go to the pump, they are helping the industry. He also stressed the importance of the blender pump program and continuing to bring more mid-level blends to consumers.

In closing, Vilsack said expanding the renewable fuels industry is more than just the benefits (choice at pump, environment, national security, etc.). “It’s really about preserving the value system of rural America. This is an industry that allows us the process of diversifying the opportunities in rural America, to support production agriculture, to expand the biobased economy…so that we have more stable farm income and we give people opportunities to live, work and raise their families in rural areas. That is important to me.”

Listen to USDA Ag Secretary Tom Vilsack’s full remarks: Vilsack Remarks During IRFA Summit

Audio, Biodiesel, Biofuels, Ethanol, USDA

Julia Debes Named Communication Director at NSP

Kelly Marshall January 19, 2016

Julia Debes will now be serving as the communications director for the National Sorghum Producers. She will be working as associate editor for the Sorghum Grower magazine and supporting the organization through public relations and marketing communications.

Debes joins NSP with eight years of experience in communications and public relations, most recently operating her own business, North Homestead Communications. Before that, she served as the assistant director of communications for U.S. Wheat Associates, deputy press secretary for the Ohio Auditor of State’s Office and as communications specialist for Florida State House Majority Leader Adam Hasner among other valuable work experiences.

“I am very excited to welcome Julia to team sorghum,” said NSP External Affairs Director Jennifer Blackburn. “Julia brings a wealth of talent and experience to our growing communications team, and she will undoubtedly be an asset to our organization, ensuring we continue to be the best in serving the sorghum industry.”

Debes and her husband farm in central Kansas and are part of the fifth generation to run Stoskopf Farms.

Ag Groups, NSP, sorghum

Comedian Damian Mason at #PotatoExpo

Cindy Zimmerman January 19, 2016

Comedian Damian Mason visits with Nufarm’s Chip the Zebra

Damian Mason is a very popular, very funny speaker for agricultural groups that we’ve heard several times at different events but he always has a serious underlying message for his audience.

One topic he hit on at the Potato Expo last week was the organic trend. “I’m not anti-organic, I’m actually pro-organic because it’s a profitable niche and it gives us a chance to do value added differentiation in the grocery store,” said Mason. “The problem with organic for normal, mainstream agriculture is we think it’s about science. It’s not about science … it’s about feelings.”

Mason calls organic the “Prius” of the grocery store. “On paper, you would never buy a Toyota Prius for the economics or the gas savings…people don’t buy a Prius because of the economics, they buy it for the social consciousness.”

Listen to more serious thoughts from this funny guy in this interview: Interview with Ag Comedian Damian Mason

Potato Expo 2016 Photo Album

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Coverage of Potato Expo is sponsored by Nufarm

Audio, Marketing, Nufarm, Potato

Poll Shows Farmers Back Trump

Joanna Schroeder January 19, 2016

A new poll among farmers show Trump is the Republican forerunner for the nomination due to his strong support of agriculture. Conducted by Farm Futures, the poll found 37 percent of those favoring a Republican candidate said they would vote for Trump “if the election were held today.” Trump’s support among GOP farmers was even stronger at 39 percent from farmers outside Iowa, which holds its caucuses Feb. 1. Texas Sen. Ted Cruz finished second, with 29 percent in Iowa and 20 percent elsewhere among farmers. Florida Sen. Marco Rubio was third, with 12 percent in Iowa and elsewhere while former surgeon Ben Carson was fourth at 6 percent and 10 percent respectively.

Trump’s support is growing in the Farm Futures poll up from 20 percent last August. Farm Futures reports that Trump supporters seemed especially worried about the downturn in the farm economy. Some 57 percent of those outside Iowa said they worried about being able to pay back their debts, the most of any Republican. Trump supporters also reported slower growth, higher debt and lower income.

While hot-button issues like immigration and terrorism dominate the campaign among all voters, both sides of the farm aisle say the most important issue in the 2016 presidential election is “the way government in Washington operates.” Some 30 percent of Democrats and 32 percent of Republicans agreed. Another 10 percent of Democrats and 13 percent Republicans listed terrorism as the top issue.

Around 14 percent of Republicans and 13 percent of Democrats said the economy was the top issue. But the bipartisan consensus broke down on the economic battle lines. The second most important issue in the election for Republicans, with 19 percent, was the federal budget deficit, with only 6 percent of Democrats. But 18 percent of Democrats said “income and wealth inequality” was their number one concern. Support for that issue from Republicans was zero.

The survey was dominated by commercial-sized, full-time farmers with a majority of the response coming from the Midwest. The poll reflects thinking of the largest 10 percent of the more than 2 million farm operations. According to Farm Futures, approximately 85 percent or more of these growers typically vote for Republican candidates at the presidential level. Among those favoring Democrats, former Secretary of State Hillary Clinton was the leader. She gathered 78 percent of the support in Iowa, compared to 20 percent for Vermont Sen. Bernie Sanders.

Trump and Carson both enjoyed support from younger farmers, though Farm Futures notes that’s a relative term in a farm demographic whose average age is 57. The average age of Clinton supporters was the oldest of any of the candidates, both nationwide and in Iowa.

Agribusiness, politics

Zimfo Bytes

Talia Goes January 18, 2016

Swanson Russell announces the additions of Sandra Baumgarner, Rachel Dicke and Emily Madden.
Woodruff Sweitzer (WS) recently announced the addition of Lindsey Woolsey and Brandon Thomas to its Kansas City, Missouri, office, Cynthia Kotovsky to its Columbia, Missouri, office and Halli Kubes to the agency’s Red Wing, Minnesota, office.
The Minnesota AgriGrowth Council is pleased to announce the re-election of Steve Peterson as chair of its board of directors.
Agriculture Night with the St. Louis Blues vs. the Anaheim Ducks is Friday, March 11, 2016, at the Scottrade Center in St. Louis.

Zimfo Bytes

All About Spuds and Politics

Chuck Zimmerman January 18, 2016

In this week’s program we will meet the CEO’s of the National Potato Council and the United States Potato Board. I met both of these guys while covering the Potato Expo last week for my first time.

Let’s start our with John Keeling, CEO of the National Potato Council. We focused on potato policy issues which as you might guess are very similar to other farm commodities. They include WOTUS and food labeling issues. Foreign trade is also a very critical issue for the sustainability of potato growers.

John says that potatoes fared well with the recent update to dietary guidelines. He says some have been trying to remove vegetable as the designation of what a potato is. I hope that doesn’t go anywhere.

Next up I talked with Blair Richardson, President & CEO of the U.S. Potato Board. The gong you can see behind him was used at the close of his report to signal the unveiling of the Spud Nation Food Truck.

Why a food truck? Blair explains, “By 2017, food trucks will be a $2.7 billion market according to the National Restaurant Association,” he said. “Currently food trucks are only reaching about 50 percent of the U.S. population, but it’s one of the fastest growing market segments in foodservice, and several sources reveal there are huge opportunities for the future. Seventy-one percent of Americans polled in a recent survey indicated they are comfortable buying meals from food trucks. We need to be a leader and trend setter in this rapidly changing environment.”

Listen to this week’s ZimmCast to learn more about taters here: Potato Executives from Potato Expo

Potato Expo 2016 Photo Album

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Ag Groups, Audio, Potato, ZimmCast

Expanding @NufarmUS Portfolio

Chuck Zimmerman January 18, 2016

Nufarm is the eighth largest crop protection company in the world and just keeps getting bigger while not changing its stripes.

At the 2016 Potato Expo last week, I talked with Nufarm North America‘s Vice President for Innovations and Regulatory Affairs Rob Schwehr about what’s new at Nufarm. “What we’ve done over the last couple of years is continue our portfolio expansion in our tree nuts/vines/vegetables segment, which includes potatoes, and as part of that we have expanded into bactericides,” said Schwehr. That includes the company’s big focus at Potato Expo on zebra chip disease in potatoes. “That is very much related to efforts Nufarm has put into citrus, where a very similar organism is causing a problem.”

Schwehr says Nufarm is investing quite a bit into research and development to help growers with these kinds of problems. “We listen to customers and try and address their needs as best we can,” he said.

Learn more in this interview: Interview with Rob Schwehr, Nufarm

Potato Expo 2016 Photo Album

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Audio, Nufarm, Potato

Meet New #Potato Council President

Cindy Zimmerman January 18, 2016

Idaho potato farmer Jim Tiede took over as the new president of the National Potato Council last week during the 2016 Potato Expo in Las Vegas.

Tiede is a third generation farmer from American Falls, Idaho who is looking forward to focusing on important issues to potato growers in the coming year, including TPP, WOTUS, and transportation. “We’re looking at truck weight increases for the highways, which will allow us to be more efficient,” he said. They will also be working on other trade and regulatory issues and they will all be on the plate during the NPC fly-in to Washington DC this year. “It should be a really good fly-in,” says Tiede. “I’m encouraging everyone to come because it makes a difference to have boots on the ground there.”

Normally the NPC summer meeting is in the home state of the president, but Tiede says he chose to go to Utah this year instead. “We just had it in Sun Valley (Idaho) two years ago, so we were looking for a new place,” he said.

Learn more in this interview with Tiede: Interview with Jim Tiede, National Potato Council

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Audio, Potato

Farmers Increase Profits with Solar Leases

Joanna Schroeder January 18, 2016

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.

The 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 January 18, 2016

Weak 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

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