Fast-Sounding Start-Ups Have Bloomed

New York Times writer Erin Griffith reported last week that, “One day this quarantine, who can say which, I encountered the following pieces of information: Zoom, the videoconferencing company, saw its stock hit a new high; Zūm, a ride-sharing venture, cut its work force by a third; and Zume, the robot pizza start-up, failed to raise more funding.

“In other words: Zoom boomed while Zūm pruned, and maybe Zume was doomed?

Fast-sounding start-ups, it seems, have bloomed. There’s Zoomd, Zoomi, Zumi, Zoomy, Zoomies, Zoomin, Zoomvy, Zoomly and Zoomph. Zoom.ai offers virtual assistants, Xoom is a payments service, and Zumobi does mobile content marketing. Tractor Zoom, in Urbandale, Iowa, says it is revolutionizing the acquisition of farm equipment at auction.”

The Times article stated that, “Start-ups are supposed to be very, very fast. They ‘move fast and break things,’ they ‘hire fast, fire fast‘ and they certainly fail fast. They have a magazine: Fast Company. They have a diet: intermittent fasting.”

Ms. Griffith noted that, “Fact: There have been at least 120 start-ups whose names include something that sounds like ‘zoom‘…Fact: Around 40 or so of the start-ups — a third — appear to be dead.”

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During Outbreak, Home Prices Stay Steady, So Far

Wall Street Journal writer Nicole Friedman reported last week that, “The economy is shrinking, businesses are closing and jobs are disappearing due to the coronavirus pandemic. But in the housing market, prices keep chugging higher.

“Home prices plunged during the last recession after a housing crash caused millions of families to lose their homes. Home values could start to erode again, especially when mortgage forbearances end, some economists warn.

But that hasn’t been the case so far. The median home price rose 8% year-over-year to $280,600 in March, according to the National Association of Realtors. While buyer demand has softened and sales fell 8.5% that month from the prior month, the supply of homes on the market is contracting even faster, recent preliminary data shows.”

The Journal article noted that, “Homes typically go under contract a month or two before the contract closes, so the March NAR data largely reflects purchase decisions made in February or January.

“Even by the end of last month, many sellers were reluctant to cut prices. Only about 4% of sellers cut their prices in the week ended April 25, down from 5.7% during the same week last year, according to Realtor.com. ( News Corp, parent of The Wall Street Journal, operates Realtor.com.)

“Some sellers say they are hanging tough because they believe their homes aren’t moving because buyers haven’t viewed them in person or are reluctant to make offers right now, not because the asking price is too high. They are waiting for stay-at-home orders to ease before deciding whether to lower the price.”

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USDA Announces Grants for Urban Agriculture and Innovative Production

Last week, USDA’s Farm Service Agency (FSA) indicated in a news release that, “The U.S. Department of Agriculture (USDA) today announced the availability of $3 million for grants through its new Office of Urban Agriculture and Innovative Production. The competitive grants will support the development of urban agriculture and innovative production projects through two categories, Planning Projects and Implementation Projects. USDA will accept applications on Grants.gov until midnight July 6, 2020.

“‘These grant opportunities underscore USDA’s commitment to all segments of agriculture, including swiftly expanding areas of urban agriculture,’ Under Secretary for Farm Production and Conservation Bill Northey said. ‘Such projects have the potential to address important issues such as food access and education and to support innovative ways to increase local food production in urban environments.’

“‘We are proud to be able to offer support though this cross-agency effort,’ said Under Secretary for Marketing and Regulatory Programs Greg Ibach. ‘In creating this grant opportunity, USDA will build upon its years of experience providing technical support, grant funding and research to help farmers and local and urban food businesses grow.'”

The update added that, “A webinar, which will be held on June 3, 2020, from 2 to 4 p.m. Eastern Daylight Time, will provide an overview of the grants’ purpose, project types, eligibility and basic requirements for submitting an application. Information on how to register for and participate in the webinar, or listen to the recording, will be posted at farmers.gov/urban.”

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During COVID-19 Outbreak, Farm Land Values Appear to be Steady

DTN Special Correspondent Elizabeth Williams reported recently that, “Although farm finances are tight for the fifth year in a row and the cash flow outlook is grim, farm tenants are generally honoring their leases this spring, real estate experts said, and land values appear to be holding steady.

“When most cash rents were paid on March 1, the coronavirus was not seen as that menacing in farm country. It wasn’t until the second week in March when major events started to be cancelled that people worried about widespread ramifications of the coronavirus, said Doug Hensley, president of Hertz Real Estate Services in Nevada, Iowa.

By then, farmers had already locked in their spring financing. Even in hard-hit areas reeling from last year’s wet year, many farmers eked out a small profit in 2019, said banker Nate Franzen, president of the agricultural banking division at First Dakota National Bank in Yankton, South Dakota.”

The DTN article noted that, “However, the farmland market still relies on fundamentals, which means there will be keen interest in how supply and demand plays out this year.

“‘Even in this time of uncertainty, one thing the pandemic has done,’ Franzen said, ‘is that people are reminded of the basic things in life, and how food and agriculture are awfully important.'”

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USDA Allows Flexibilities for Organic Certification Amid Coronavirus Pandemic

A news release this week from USDA’s Risk Management Agency (RMA) stated that, “Approved Insurance Providers (AIPs) may allow organic producers to report acreage as certified organic, or transitioning to organic, for the 2020 crop year if they can show they have requested a written certification from a certifying agent by their policy’s acreage reporting date. [RMA] made available this flexibility to help those impacted by the coronavirus pandemic.

“Many state and local governments have issued ‘stay-at-home’ orders and have shut down non-essential businesses, resulting in market disruptions and preventing in-person crop insurance transactions.

“‘As the pandemic continues, RMA is also continuing to add more flexibilities to assist America’s farmers and ranchers,’ RMA Administrator Martin Barbre said. ‘We will ensure that the Federal crop insurance program continues to serve the needs of our nation’s producers.'”

The RMA update noted that, “In addition, policyholders who have requested but not received an organic certificate, organic plan, or other written documentation must notify their insurance agent within 30 days after the certifying agent informs them of their organic plan or certificate status. The policyholder notification may be made by phone, email, text, or other electronic communication method, and the AIPs must document the policyholder’s notification. Policyholders will be required to either sign digitally at the time of submission or must follow up with properly signed forms no later than July 15, 2020.”

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USDA Applauds Missouri Court Ruling on Meat Processing Plants

A news release today from USDA stated that, “U.S. Secretary Perdue today applauded the decision made by the District Court of Western Missouri which ruled that the Occupational Safety and Health Administration (OSHA) has the primary jurisdiction over worker’s safety in meat processing plants across the country during the COVID-19 national emergency.

“‘This ruling affirms that OSHA is the primary entity that has authority over worker’s safety,’ Secretary Perdue said. ‘Since President Trump issued his Executive Order last week to keep these critical facilities operating, USDA has been working hand in hand with OSHA and the CDC to ensure meat processing facilities are abiding by Federal guidelines. This ruling is directly in line with what the Federal government has been calling for companies and communities to do in light of the President’s Executive Order. If we continue to work together, we can maintain the critical supply of meat and poultry for Americans while also protecting worker health and safety.'”

Today’s update added that, “On April 28, 2020, President Donald J. Trump signed an Executive Order to keep meat and poultry processing facilities open during the COVID-19 national emergency. The Centers for Disease Control and Prevention (CDC) of the Department of Health and Human Services and the Occupational Safety and Health Administration (OSHA) of the Department of Labor have put out guidance for plants to implement to help ensure employee safety to reopen plants or to continue to operate those still open. Under the Executive Order and the authority of the Defense Production Act, USDA will work with meat processing to affirm they will operate in accordance with the CDC and OSHA guidance, and then work with state and local officials to ensure that these plants are allowed to operate to produce the meat protein that Americans need. USDA will continue to work with the CDC, OSHA, FDA, and state and local officials to ensure that facilities implementing this guidance to keep employees safe can continue operating.”

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‘Murder Hornet’ Worries Washington State Ag Officials

Reuters writers Omar Younis and Dan Whitcomb reported yesterday that, “Hundreds of Asian giant hornets, an invasive, predatory insect dubbed the ‘murder hornet,’ have turned up in Washington state near the Canadian border, where they pose a threat to humans and the beekeeping industry, state agriculture officials said on Monday.

“The stinging Vespa mandarinia can grow as large as 2-1/2 inches (6.35 cm) in length and is native to Southeast Asia, China and Taiwan. It was first discovered in Blaine, Washington, in December by a homeowner, according to Sven-Erik Spichiger, managing entomologist at the Washington state Agriculture Department.”

The article noted that, “Aside from the danger to humans, the Murder Hornet presents a danger to agriculture and the apiary industry, Spichiger said, because the insect is known to attack honey bees, with a few of the hornets capable of wiping out an entire hive in hours.

“‘The hornets enter a ‘slaughter phase’ where they kill bees by decapitating them. They then defend the hive as their own, taking the brood to feed their own young,’ according to the Washington state Department of Agriculture website.

“‘Pollination is a huge part of agriculture and the agricultural systems we have here in the United States. And so if this were to become well-established and then start spreading, it could be pretty catastrophic,’ Spichiger said.”

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FSA Reminds Producers of Ongoing Disaster Assistance Program Signup

A news release Friday from the USDA’s Farm Service Agency (FSA) stated that, “The [USDA] has started making payments through the Wildfire and Hurricane Indemnity Program – Plus (WHIP+) to agricultural producers who suffered eligible losses because of drought or excess moisture in 2018 and 2019. Signup for these causes of loss opened March 23, and producers who suffered losses from drought (in counties designated D3 or above), excess moisture,hurricanes, floods, tornadoes, typhoons, volcanic activity, snowstorms or wildfires can still apply for assistance through WHIP+.

“‘To date, FSA has received more than 33,000 WHIP+ applications,’ said Richard Fordyce, Administrator of USDA’s Farm Service Agency (FSA). ‘We want to remind producers that we are still accepting applications for WHIP+, and we encourage producers to call our offices for next steps on how to apply.’

“To be eligible for WHIP+, producers must have suffered losses of certain crops, trees, bushes or vines in counties with a Presidential Emergency Disaster Declaration or a Secretarial Disaster Designation (primary counties only) for qualifying natural disaster events that occurred in calendar years 2018 or 2019. Also, losses located in a county not designated by the Secretary as a primary county may be eligible if a producer provides documentation showing that the loss was due to a qualifying natural disaster event.”

The FSA update noted that, “In addition to the recently added eligible losses of drought and excess moisture, FSA will implement a WHIP+ provision for crop quality loss that resulted in price deductions or penalties when marketing crops damaged by eligible disaster events. To ensure an effective program for all impacted farmers, the Agency is currently gathering information on the extent of quality loss from producers and stakeholder organizations.”

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USDA’s New CRP Pilot Program Offers Longer-Term Conservation Benefits

A news release this week from USDA’s Farm Service Agency (FSA) stated that, “[FSA] will open signup this summer for CLEAR30, a new pilot program that offers farmers and landowners an opportunity to enroll in a 30-year Conservation Reserve Program (CRP) contract. This pilot is available to farmers and landowners with expiring water-quality practice CRP contracts in the Great Lakes and Chesapeake Bay regions. The program signup period is July 6 to Aug. 21, 2020.

“‘This pilot allows us to work with farmers and landowners to maintain conservation practices for 30 years, underscoring farmers’ commitments to sound long term conservation stewardship on agricultural land,’ said FSA Administrator Richard Fordyce. ‘Through CLEAR30, we can decrease erosion, improve water quality and increase wildlife habitat on a much longer-term basis. We want to share this opportunity early, before the sign up period, so farmers and landowners have more time to consider if CLEAR30 or another program is right for their operation.’

“The pilot is available in Delaware, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, Ohio, Pennsylvania, Virginia, West Virginia and Wisconsin. Eligible producers must have expiring Clean Lakes, Estuaries and Rivers (CLEAR) initiative contracts, including continuous CRP Cropland contracts with water-quality practices or marginal pasturelands CRP contracts devoted to riparian buffers, wildlife habitat buffers or wetland buffers.”

The news update added that, “USDA Service Centers are open for business by phone appointment only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. Anyone wishing to conduct business with the FSA, Natural Resources Conservation Service or any other Service Center agency is required to call to schedule a phone appointment. More information can be found at farmers.gov/coronavirus.”

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COVID-19 Impacting Start-Ups, Where Many Now Have Low Cash Reserves

Siddharth Venkataramakrishnan reported this week at The Financial Times Online that, “A survey of 200 UK start-ups in fields ranging from advertising, education, fintech and software has shown the precariousness of young companies in the face of the Covid-19 pandemic.

“The most striking statistic in the survey by London venture capital firm LocalGlobe was that two-fifths of respondents estimated that their current runway period is a year or less.

“Silicon Valley-based research project Startup Genome estimated that around the world, 41 per cent of start-ups have a cash runway of just three months.”

The FT article noted that, “Fundraising has also been severely curtailed, with 40 per cent of start-ups saying they had delayed plans to pitch for investment.”

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