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November 10, 2011

 

 

·       Volatility boosts risk for ag lenders

·       Tree farmers promote the real deal

·       Nematode threatens NY garlic industry

·       County gov’t enters fumigant debate

·       Farms need legalized seasonal help

 

 

Volatility boosts risk for ag lenders

 

(IBJ.com) – U.S. farmers face increased financial risk because of higher operating costs and volatile commodity prices, even as income this year reaches a record, said Michael Boehlje, an economist at Purdue University.

 

“We’ve seen a combination of more price volatility, but we’ve also seen cost volatility that we didn’t see in that prior 15 years,” Boehlje said Tuesday at an agricultural banking conference in Indianapolis. The volatility of profit margins over the last five years is three times what it was during the prior 15 years, he said.

 

 Farm lenders may have to increase requirements for working capital because there are more “fluctuations in potential income,” he said. Land prices and cash rents are up, the operation cost per acre has tripled, and fertilizer and seed chemicals have doubled for grain operations, he said.

 

 With the operating risk for farmers increasing “dramatically,” lenders “have to be much more cautious than you might have been in the past on financing,” Boehlje said. “You have to be much more conservative on the financing side, which implies that you need to be conservative in how willing you are to finance.”

 

While profit margins for farmers will be a little lower in 2012 than current levels, they will remain above those of the last 20 years, he said. The U.S. Department of Agriculture anticipated record farm income this year of $103.6 billion.

 

“What I worry about is that when we fast forward to 2012 and actually have a crop harvested, I am not convinced that those margins will be there,” Boehlje said.

 

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Tree farmers promote the real deal

 

(McClatchy) WASHINGTONThe Christmas tree ad wars are about to heat up, albeit in a rather jolly way.

 

Following an extended debate that pit one region against another, the Agriculture Department on Tuesday gave the green light to a new industry-funded Christmas tree promotion program.

 

By taxing themselves, growers will raise $2 million a year for ads promoting the merits of real, live trees. Or, at least, trees that once were living, as opposed to the artificial kind that have seized an increasing share of the holiday market.

 

"As demographics and buying habits have changed we have watched the market for real trees shrink drastically, requiring us to spend much more time and money on promotion," said Don Cameron, past president of the California Christmas Tree Association.

 

Cameron and his wife, Carolyn, owners of a tree farm in Simi Valley, Calif., were among the 500-plus people to weigh in over the past year as the Agriculture Department considered the proposed Christmas Tree Promotion, Research and Information Order.

 

Akin to similar programs that promote milk, beef and cotton, the new Christmas tree program will impose on U.S. domestic producers and importers an initial fee of 15 cents per tree.

 

A 12-member board will direct the money to generic ads and other promotions, as well as research. The promotions, according to the Agriculture Department, will present "a favorable image of Christmas trees to the general public," with the intent of improving the public "perception" of Christmas trees and, hence, their sales.

 

"We have good reason to believe it will be successful for our industry," Betty Malone, an Oregon tree farmer and president of Christmas Tree Promotion Now, said in a telephone interview Tuesday. "We looked at what other industries have done, and how successful they've been."

 

After three years, growers and importers will vote on whether to continue the program.

 

Malone, whose tree farm is about 20 miles northwest of Corvallis, said she has been working on the tree promotion program for about three and a half years. She said the ads and promotions are likely to begin next year, aiming to offset what's become a steady decline in tree sales.

 

Fresh-tree sales declined overall from 37 million in 1991 to 31 million in 2007, according to the Agriculture Department. Artificial tree sales, meanwhile, nearly doubled to 17.4 million from 2003 to 2007.

 

Competitively, the live-tree and artificial-tree sectors have not always stayed in the holiday spirit, with advocates of each warning about the drawbacks of the other.

 

"A primary concern with a live Christmas tree is fire danger," the American Christmas Tree Association, which represents the artificial tree industry, states on its website.

 

The Agriculture Department rules prohibit any ads that are "disparaging to another agricultural commodity," and Malone said the industry ads will accentuate the positive.

 

Nationwide, there are about 12,000 commercial Christmas tree farms, with production particularly heavy in North Carolina and Pennsylvania.

 

Of the 565 comments submitted to the Agriculture Department, 398 supported the proposal, 147 were opposed and the remainder fell into other categories.

 

Some sentiment broke along state lines. Grower organizations in North Carolina and 18 other states and regions supported the new industry program, while growers in Texas and Vermont opposed it.

 

"If the large wholesale growers want it, fine, but they can pay for it without reaching into the small grower's pockets," declared Robert Childress of the Texas Christmas Tree Growers Association. "I feel that marketing for my products is my responsibility and I choose to rely on my efforts."

 

The proposal provoked other kinds of debate. One opponent called a Christmas tree a religious symbol that should not be recognized by the government. Another said the mandatory fee assessment infringed on individual freedom, and a third said Texas was a "sovereign state" whose growers should be exempt.

 

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Nematode threatens NY garlic industry

 

(cornellsun.com) – A recent nematode outbreak is threatening New York’s $24.5 million garlic industry. The pest, Ditylenchus dipsaci, has over 100 vegetable hosts and has shown up in soil tests to be present in 17 New York counties to date.

 

D. dipsaci was first identified by Christine Hoepting, an extension vegetable specialist within Cornell Cooperative Extension, in June 2010.

 

According to Amy Ivy of Cornell Cooperative Extension, the term nematode is very broad, as some are beneficial, while others are not. D. dipsaci have detrimental effects on garlic.

 

Potential signs of this bloat nematode infestation include stunted growth, yellowing of leaves that may droop and fall, as well as softening, discoloration, and cracking of the bulb.

 

“Because [nematodes] are microscopic, it can be hard to know if they are present or not,” Ivy said.

 

Prof. George Abawi, plant pathologist at the New York State Agricultural Experiment Station in Geneva, N.Y., is currently researching the extent to which the nematode infestation has spread, as well as determining which seed cleaning methods are most effective, to avoid further contamination. Abawi is currently only scientist in New York with the ability to test garlic and soil samples for D. dipsaci.

 

Garlic bulbs house several separate cloves, each of which, if planted, will give rise to a new garlic plant. As a result, growers often save garlic harvests to share with others for replanting.

 

“Garlic growers sometimes exchange seed, and that has been the main way that the pest has been distributed [through contaminated cloves]... we are trying to stop that from happening, and help growers buy clean seed,” Abawi said.

 

Abawi noted that even while kept in storage, the nematode can continue to feed and reproduce in the cloves.

 

According to Lucy Garrison-Clauson of Stick and Stone Farm, buying garlic seed from a seed company is not economical, costing upwards of $10 to $15 a pound.

 

“You always take a risk in trading seed with other growers,” she said. “We planted seed that had a fungal disease that contaminated our soil and can stick around for like, 30 years. We used to grow a lot of garlic, but now garlic is a small part of our operation.”

 

“Many garlic gro wers are very frustrated,” Ivy said. “[The bloat nematode] is very easy to unwittingly spread; this is all very new to garlic.”

 

While a bloat nematode outbreak such as D. dipsaci has not been seen before in garlic, onion industries in the 1940s battled a similar pest.

 

A member of the allium family along with garlic, onions were long ago planted and grown from “sets,” very small, young onions propagated specifically for replanting.

 

“Harmful nematodes lived in these sets just like they are living in the garlic cloves today. Onion growers dealt with the pest by fumigating the soil and using powerful chemicals to kill the organisms in the soil. Nowadays all onions in big production in New York are grown from seed [rather than from sets],” Ivy said.

 

To help fund Abawi’s research on the garlic nematode and how growers can avoid it, he recently received a $69,122 grant from the New York State Department of Agriculture and Markets. This research will include further study of the biology of D. dipsaci, as well as determining which method of cleaning seed is most effective, to reduce the spread.

 

Part of the grant money will also go towards subsidizing the cost of testing grower’s garlic and soil samples for nematode infection.

 

While young nematodes typically target the bulb, stem, and leaves, mature nematodes may move into the soil, potentially infecting other crops and contaminating the soil for many seasons to come.

 

To address this problem, Crystal Stewart, in association with the Cornell District Vegetable and Small Fruit Program, has been studying the ability of D. dipsaci to overwinter in the soil. For the past two years, samples were collected in the spring from fields where the nematode had been confirmed present. Results from both years suggested that D. dipsaci was not able to survive.

 

These results, however, may have been offset by the fact that both springs saw heavy rainfall, which could have drowned nematodes that may have otherwise survived.

 

According to Abawi, the best thing that growers can do to keep D. dipsaci at bay is to plant clean seed that has been tested for nematodes into non-infected soil that has been rotated with crops outside of the allium family for at least four years (the allium family also includes popular crops such as scallions, chives, and leeks).

 

“In the past five to ten years, garlic has just boomed. People love garlic, and they love to grow garlic,” Ivy said. She continued, “Everyone grows tomatoes –– garlic is bit of a newer crop. Garlic used to come with few problems, but now has been around long enough that the problems have found it.”

 

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County gov’t enters fumigant debate

 

(Santa Cruz Sentinel) SANTA CRUZ - A week after Arysta LifeScience announced the first commercial strawberry application of the controversial fumigant methyl iodide on a Central Coast farm, the County Board of Supervisors may ask the state to further restrict or even ban its use on California farms.

 

At the urging of local activists, the board could vote to send a letter to the state asking it to reconsider the use of methyl iodide, which kills weeds, pests and pathogens and replaces methyl bromide, which is being phased out. Methyl bromide is widely used on area strawberry fields.

 

Several scientific authorities have raised concerns about the health and environmental risks posed by methyl iodide, which has been approved by the federal government and the state. Assemblyman Bill Monning, D-Carmel, believes it warrants closer scrutiny, and has asked the Environmental Protection Agency and Gov. Jerry Brown's administration to take a closer look.

 

"I think the drumbeat of people weighing in with concern will hopefully prompt the governor to take a fresh look," Monning said. "I think that's warranted based on the science."

 

On Nov. 2, Arysta, which manufactures the commercial methyl iodide product known as Midas, said it has been used on a strawberry farm near Santa Barbara. That followed several research applications dating as far back as 2006.

 

The company requires anyone who uses the product to undergo special training, and its use is limited by several factors, including the weather. Jeff Tweedy, Arysta's head of business development, said fumigants are heavily regulated, help farmers increase yields and can be used to meet state regulations meant to control the spread of pathogens.

 

"As long as the label and directions are followed, and our instructions are followed, it can be applied safety," Tweedy said.

 

But many activists - including teachers whose schools are adjacent to agricultural fields - are not convinced. The board's letter also would urge continued research on alternatives to methyl bromide.

 

"What we're finding is farmers don't want to use it either. They just don't have any other options," said Jenn Laskin, a teacher in the Pajaro Valley Unified School District.

 

The city of Watsonville, the Pajaro Valley Unified School District and the Salinas Union High School District have all passed resolutions expressing concern about methyl iodide. The Monterey County Board of Supervisors will be asked to do the same, Laskin said. The California Federation of Teachers also opposes it, and has asked the California State Teachers' Retirement System to divest from Arysta.

 

With an ideal growing climate, the Watsonville-Salinas area includes nearly 14,000 strawberry-growing acres, making the fields sprawling across the Pajaro and Salinas valleys the heart of the state's strawberry industry.

 

With agriculture forming the top industry in Santa Cruz County, strawberries are easily the top crop. More than 3,300 acres here are dedicated to strawberries, a crop valued at nearly $200 million.

 

Department of Pesticide Regulation spokeswoman Lea Brooks said the agency continues to evaluate methyl iodide, but is limited in its comments due to an ongoing Alameda County court case challenging its use. She did say one of the county resolution's findings - that methyl iodide has a high potential to contaminate groundwater - is not supported by scientific evidence.

 

Methyl iodide was approved in the waning days of former Gov. Arnold Schwarzenegger's administration. Brown has expressed a willingness to weigh the issue anew, but he has yet to appoint a new head of the Department of Pesticide Regulation.

 

"I believe the next step would be for Gov. Brown to appoint a new director of DPR," Monning said.

 

County board chair Mark Stone said the resolution doesn't ask for methyl iodide to be banned, just that its use be re-examined and alternatives explored. Another option is for the state to tighten restrictions on how and where methyl iodide can be used.

 

"Has the state done what it needs to do to make sure that if it is going to be used, it's going to be used safely?" Stone asked.

 

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Farms need legalized seasonal help

 

(newstribune.com) – The connection between illegal immigration and agriculture has been blindingly obvious for decades, but apparently not obvious enough for some.

 

An apparent decline in the number of migrant farm workers has been hitting Washington orchardists hard – hard enough that Gov. Chris Gregoire has gamely experimented with prison labor. She recently dispatched 105 volunteer inmates from the state’s mininum-security work camp in Clallam County to harvest apples at an orchard in Eastern Washington.

 

A long-term solution, this is not. Washington’s farmers need thousands, not hundreds, of laborers. For many years, the majority of them have been illegal aliens, mostly from Mexico.

 

Recent state crackdowns on illegal immigration have driven some of them away. The clearest case of cause-and-effect is found in Alabama, whose farmers have been thrown into a labor crisis by the legislature’s recent take-no-prisoners offensive against illegal aliens.

 

Alabama lawmakers must not spend much time on Alabama farms.

 

Zero-tolerance enforcement isn’t the only issue. America’s recession-stricken economy just isn’t the magnet for border-jumpers it once was. By some estimates, the net influx of illegal immigrants across the Southern border is now approaching zero.

 

Whether farm workers are lying low voluntarily or involuntarily, American farmers of undisputed legality still need real human beings to harvest their apples, cherries, asparagus, peaches and whatnot.

 

The only realistic solution is to expand and streamline the country’s H-2A visa program, which is designed to accommodate seasonal cross-border migrations of farm workers.

 

Some “advocates” of illegal immigrants – including employers hungry for cheap, docile labor – aren’t particularly interested in a solution in the first place.

 

Others prefer a comprehensive reform that includes legalization of most of the 11 million people in the country illegally. But there’s no way that’s going to happen in the depths of an economic distress that has thrown millions of American citizens out of work. The choice is between doable part-solutions and no solution.

 

Congress should deal now with the issue of farm labor – something doable – and loop back to the larger problem later when there’s some chance of settling it.

 

There should be little partisan dispute over H-2A visas, carefully and humanely administered.

 

Authorities would know who the laborers are and what they are doing here. The workers could be screened for criminal backgrounds. They would know they could come back legally after going home, so they’d got a strong incentive to play by the rules.

 

It’s not amnesty. It’s not making citizens or even permanent residents of law-breakers. It’s just letting farmers get their crops in by legally recognizing a seasonal migration that is already a foundation of U.S. agriculture.

 

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