Senate Ag Committee Hears Testimony on Urban Farming

Earlier this month, the Senate Agriculture Committee held a Farm Bill hearing in Frankenmuth, Michigan.

During that hearing, Jerry Ann Hebron, a Farmer and the Executive Director of Northend Christian CDC from Detroit indicated that, “In fact a December 2009, article in the Detroit News suggested the true unemployment figure in the city [Detriot] might be as high as an astounding 50 percent. Couple that with the estimated 80,000 residential housing units needing demolition, and the city’s 20 square miles of total vacant land (roughly equal to the size of Manhattan). What you get is the need for creative paths forward like Oakland Farm Way.

“This is how I started our farm, the Oakland Avenue Urban Farm which is located in the Historical North End Community and a commitment to growing food, educating our community, and creating opportunities for economic development.”

Ms. Hebron noted that, “When we started farming in 2009 the neighborhood was not safe. It was filled with vacant lots and houses, poor quality grocery stores, a liquor store on every corner selling greasy food and pizza slices. These bridge card SNAP eligible stores offered poor quality and limited amounts of fruit, bread, milk, and some canned goods, which were often on the shelf with expired date labels. People in our community were shopping at the liquor stores for the unhealthy food choices because there was no other options. To respond to this, we started growing a variety of vegetables that were culturally appropriate for our community (green beans, collards, tomatoes, peas, spinach, squash, cabbage, cucumbers, mustard greens, turnip greens, sweet potatoes, okra, onions, garlic and a variety of herbs.

“In 2011, we started adding fruit: strawberries, raspberries and pears. In the same year, we opened our farmers market on the farm and started selling at six Chrysler Plants. In order to meet the demand of these farmers market, we had to increase our production so we purchased more land for production. We are now planting more fruit trees to increase our fruit production. We have included apple, peach, more pears and cherry. This fruit production will add to our food consumption and increase the opportunities for value-added production, including our line of AFRO Jams, so we can increase sales. We can use USDA Value-Added Producer grants but need additional access to other financing tools to help us get these products to the shelf.”

In her testimony, Ms. Hebron also explained that, “What is needed now to grow these businesses is access to more USDA funding for crop insurance, low interest loans for equipment and integrated farm business development, and infrastructure improvements for water.

“Urban Agriculture is a great environment to work and grow skilled workers who traditionally have been denied employment because of a background check or drug problem. On our farm we work with people where they are and what we find is our environment is one in which we are able to train people basic employment skills. We have been able use our production sales to hire people in the community as seasonal workers at minimum wage and we recently started a tree fruit growing initiative to train our farm workers on how to grow fruit trees and manage largescale farm equipment, giving them specialty skills and machine training. The farm work is transformative spiritually, environmentally and skillfully. People are learning how to plan, how to grow food which results in them eating better, how to deal with plant pests using organic practices and professional development opportunities.”

Ms. Hebron pointed out that, “The 2018 Farm Bill is important to Urban Agriculture because it could create opportunities for urban growers that we currently do not have.”

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In North Carolina, Legislature Overrides Governor’s Veto of Bill Limiting Civil Awards in Farm Odor Lawsuits

Associated Press writer Gary D. Robertson reported late last week that, “The Republican-controlled North Carolina legislature overrode Democratic Gov. Roy Cooper’s veto of a bill that limits awards in lawsuits over the odors from hog and chicken farms, marking the fourth Cooper veto that lawmakers have rejected.

“With no debate, the Senate completed the override with a 30-18 vote on Thursday. The day before, the House also agreed the bill should become law despite Cooper’s objections. The law applies to future ‘nuisance’ actions filed against farming and forestry operations, but not to pending lawsuits, some of which prompted the legislation.

“The new law restricts compensatory damages against farming and forestry operations to the reduction in value of lost property or the rental value of affected properties, capped at the fair market or rental value. The law doesn’t alter the current rules on punitive damages a jury could assess.”

The AP article noted that, “Bill supporters, which included the pork industry with its industrial-scale farms in eastern North Carolina, said the limits would rein in lawsuits in which attorneys sought awards well above the value of the property at issue.”

Mr. Robertson added that, “In his veto message last week, Cooper said that while the industries targeted in the law should be encouraged to thrive, he was worried the special protections opened the door to weakening civil actions in other nuisance matters and harm homeowners and the environment.

 Cooper repeated those concerns in a statement Thursday night, saying he was disappointed by the legislature’s actions ‘that weaken nuisance laws and fail to protect property rights.'”
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Immigration Concerns, Labor Shortages Spur Investment in America’s Heartland

Bloomberg writer Mario Parker reported today that, “President Donald Trump’s get-tough attitude on immigration is spurring a surge of high-tech investment in America’s heartland, where farmers are scrambling for new ways of coping with labor shortages and slumping profits.

“Finding people for the sometimes back-breaking tasks of planting and harvesting crops has become increasingly difficult in the U.S., where the industry has relied on cheap immigrant labor for generations. Since taking office in January, Trump has compounded the problem with actions to limit foreign workers. But that has also encouraged some investors to bet that growers will increasingly need new tools to cut costs and boost productivity.

“In the first quarter of 2017, a surge of cash has poured into agricultural technology companies, including some big-time investors such as the Bill and Melinda Gates Foundation and Sam Altman’s Y Combinator. Startups received $200 million through 29 deals, the most of any quarter since researcher CB Insights began tracking the data in 2012. Other recent backers include venture capitalist and Sun Microsystems Founder Vinod Khosla and Alexandria Real Estate Equities Chief Executive Officer Joel Marcus.”

The Bloomberg article explained that, “The United Nations estimates that the world’s population is set to expand 35 percent by 2050 to about 10 billion people. Climate change has left arable land subject to extreme weather events such as drought that place an emphasis on water, chemical and fuel use.

“That change is drawing more interest in new farming technologies such as autonomous tractors, plant sensors, drones and data-management software that will probably generate $240 billion in revenue by 2050, according to Goldman Sachs. Farmers will be forced to adopt new technologies at a faster rate, the bank said.”

Mr. Parker added that, “Tech veteran Mark Kvamme co-founded Columbus, Ohio-based Drive Capital in 2012 with an eye toward investing in the Midwest. FarmLogs, an Ann Arbor, Mich.-based company that gives farmers data about the health of their fields, is one of the projects Drive Capital is backing. In January, the firm helped raise $22 million in a Series C round of financing.

“‘In Silicon Valley, nobody understood farming,’ Kvamme said in a telephone interview. But now, more investors are looking at the industry as another type of ‘data science,’ where gains and losses are quantifiable, he said.

“So-called ag-tech started drawing more attention from investors after a big takeover was announced in 2013 by Monsanto, the world’s biggest seed maker, said Jesse Vollmar, chief executive officer and co-founder of FarmLogs. Vollmar grew up on his family’s farm in Michigan and started the company out of Y Combinator in 2012. Monsanto paid $930 million for Climate Corp., which specializes in agricultural data.”

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Beekeepers Win Lawsuit Against EPA Over Insecticide Approval

Josephine Marcotty reported in today’s Minneapolis Star Tribune that, “A Minnesota beekeeper has won a round against the U.S. Environmental Protection Agency (EPA) in a protracted lawsuit over a class of insecticides implicated in the decline of honeybees and other wild insects.

“A federal judge in California ruled this week that, in doing a regular review of the pesticides, the EPA failed to consider the potential impact of neonicotinoids on insects on the federal Endangered Species list, as required by law.

“‘The EPA pretty much admitted that it had failed to do that in this case, so it was pretty hard for the judge to rule in their favor,’ said Steve Ellis, a Minnesota beekeeper who was a plaintiff in the suit. Ellis has been at the forefront of the fight against widespread use of neonicotinoids and is a member of Minnesota’s Governor’s Committee on Pollinator Protection.”

The article noted that, “Judge Maxine Chesney of the U.S. District Court for the Northern District of California held that the EPA had unlawfully issued 59 pesticide registrations between 2007 and 2012 for a wide variety of agricultural, landscaping and ornamental uses.

“The lawsuit, filed by the Center for Food Safety, other environmental groups and several beekeepers, challenged the EPA’s approval of several neonicotinoid products, a class of insecticides that are the most widely used in the world.

“Although honeybees are not on the Endangered Species list, the plaintiffs invoked the law in a broad challenge to the way the EPA reviews pesticides.”

Ms. Marcotty added that, “One of the most common uses for neonicotinoids is to coat seeds for corn, soybeans, and other commodity crops widely planted in Minnesota and other Midwestern states. The compounds are absorbed by the plant as it grows, making it toxic to pests. But they have also been shown to be harmful to honeybees and other insects that feed on pollen or are exposed to it during planting time.

“The manufacturers say that no definitive link has been proven between neonicotinoids and the sharp decline in bee populations.”

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Coca-Cola’s New CEO to Accelerate Investments in Start-Ups

Lindsay Whipp reported yesterday at The Financial Times Online that, “Coca-Cola’s new chief executive is to accelerate the company’s investments in start-ups, as the world’s largest soft drinks company seeks to diversify more quickly into healthier beverages and new trends.

“James Quincey, who took over the CEO role from Muhtar Kent this month, said the company needed to break away from an internal culture that was overly focused on its eponymous brand.

“‘It was probably culturally unacceptable internally to say that Coca-Cola wasn’t the preferred brand,’ Mr Quincey told the Financial Times. ‘And if you have that as your culture, you’re self-limiting growth of other categories. The liberation of cutting through that cultural barrier is going to allow us to more sharply focus on what it is that consumers are really doing.'”

The FT article noted that, “The pace of investments, he said, would be an acceleration from his predecessor Mr Kent, who still occupies the chairman role at Coca-Cola. Under Mr Kent in the last 10 years the company has either built or invested in 42 brands in the US alone, a recent investment being in Aloe Gloe, a water start-up. It also added nine brands that pull in annual sales of more than $1bn, such as such as Fuze, which makes teas and still fruit drinks.

“However, the company’s carbonated sales, including Coca-Cola, Sprite and Fanta brands, still account for about 72 per cent of its worldwide volume, according to Beverage Digest, and some analysts have criticised the company for being too slow at diversifying.”

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Iowa’s Craft Liquor Distilleries Prepare for Wave of New Business

Brianne Pfannenstiel reported in today’s Des Moines Register that, “Iowa’s craft liquor distilleries are preparing for a wave of new business now that Gov. Terry Branstad has signed a law allowing them to pour cocktails and other drinks by the glass.

“‘It’s such a customer expectation,’ said Garrett Burchett, co-owner of Mississippi River Distilling Company in Le Claire. ‘When you go into a brewery, when you go into a winery, you expect that you can have a glass. And in a distillery, you couldn’t.'”

From today’s Des Moines Register.

The Register article indicated that, “Branstad signed House File 607 authorizing the changes Tuesday afternoon surrounded by a group of supporters at Iowa Distilling Company in Cumming.

“He said the state’s alcohol laws, many of which date back to the Prohibition era, needed to be adjusted to create more parity among manufacturers. Breweries and wineries have been able to pour their product by the glass for paying customers for years. But concerns lingered around liquor manufacturers, even as distillers like Burchett pushed for change.”

Today’s article added that, “Branstad said the new law not only will create a more even playing field, but it will help drive economic development across the state.”

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Senate Ag Committee Hears Farm Bill Testimony on Hops- Craft Beer

The Senate Agriculture Committee held a Farm Bill hearing in Michigan on Saturday where two panels of agricultural industry participants provided testimony on varies aspects of U.S. farm policy.

Pam Bouma Miller, a hops grower from Michigan, indicated on Saturday that, “The Michigan craft brewing movement has fast become nationally recognized as a leader in the industry. The economic impact of Michigan’s craft beer industry is significant contributing to over 7,000 jobs with wages over $232,000,000 and economic output of over $600,000,000 as early as 2014 published by the Michigan Brewers Guild. It has only grown since, and the demand for local hops in a region with ideal attributes for hop growth exists due to climate exploded. The Michigan Brewers Guild exists to promote and protect the craft beer industry in Michigan and actively tracks the economic impact, public policy, legislation and regulations. Overall, the craft beer market grew 6.2% in 2016, and is the primary source of the increasing demand for Michigan hops throughout the country. The craft beer market is 12.3% of the overall market. The relationship between the hops growers, processors and brewers is important to the overall success of each other’s interests, and each take a specialized set of skills, but in many ways they are all integrated.

“Today Michigan is ranked 4th in the nation with over 1,000 acres in hop production. We have 200 growers supplying 200+ breweries in Michigan alone, and some additional purchasers which are international countries, including Thailand and Denmark for example. Michigan hops account for 5% of the $252.6 million hop export market. It is also important to recognize the unique opportunity the Hop Growers of Michigan are pursuing through a Farm to Glass Bill to provide tax savings for the use of Michigan hops in Michigan beer.”

Ms. Miller also pointed out that, “In order for the Michigan hops industry to thrive and grow, the next Farm Bill will need to continue support for specialty crop programs. Last year, the Michigan hop industry used a Specialty Crop Block Grant to establish hop quality standards, provide education and training to growers and develop a two- level voluntary verification program. In considering the issues of specialty crops, the hops industry will need support in order to grow and these block grants have served the economic interests of the growing industry very well.”

Ms. Miller added that, “As the Michigan hop industry continues to expand, growers are looking at new market opportunities through trade expansion. It is critical that the next Farm Bill protect and strengthen the Market Access Program, which is key for specialty crop growers to access new international markets.”

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In South Carolina, Mega-Farms Face Legislative Scrutiny From Some Lawmakers

Some state legislators are pushing for tighter controls on mega-farms that have irked neighbors, siphoned billions of gallons of water from rivers and aquifers, and sprayed chemicals on vegetable fields.

“Rep. James Smith, D-Richland, has demanded a hearing on a bill that would require greater scrutiny of mega-farms seeking to withdraw large amounts of water from rivers.

“Sen. Chip Campsen, R-Charleston, said he’ll push for a hearing on his own bill to limit river withdrawals. And Rep. Bill Taylor, R-Aiken, introduced a bill last week to limit crop-dusting near rural schools.”

The article stated that, “Meanwhile, the S.C. Department of Health and Environmental Control is considering groundwater regulations for a swath of counties, between Aiken and Columbia, that now place no limits on how much farms or industries can siphon from the ground.

“Whether the proposals will go anywhere depends on how much opposition comes from the S.C. Farm Bureau, an influential organization at the state Legislature. The Farm Bureau has in the past opposed tighter controls on big farms that take water from rivers, saying it has seen no proof of any problems.”

Mr. Fretwell noted that, “The greatest concerns have centered on a handful of sprawling farms, operated by out-of-state agribusinesses, in eastern Aiken and Barnwell counties. The agribusinesses have purchased about 10,000 acres, clearing at least 6,000 acres of trees since arriving in South Carolina about four years ago, The State newspaper found. Farms approaching 1,000 acres dwarf the average farm in South Carolina, which is about 200 acres.”

The State article added that, “So far, the outcry for change has come mostly from grassroots citizens groups, such as Save Windsor and Friends of the Edisto. Major environmental groups have been focused on other issues at the State House.

“At the same time, the Farm Bureau has said it won’t endorse any change in state law without a compelling, scientific reason to do so. A report, commissioned by state agencies, is expected out this year. It will provide more data on how much water might be at risk.”

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Help for Local Schools Connecting With Local Farmers

A news release last week from Purdue University Extension indicated that, “Local educators and community members can learn how to provide elementary and high school students with healthy meals and nutrition education through a new training program offered by Purdue Extension in partnership with the Michigan State University Center for Regional Food Systems and the U.S. Department of Agriculture’s Sustainable Agriculture and Research Education (SARE) program.

“The Farm-to-School Professional Development Training initiative will help connect local schools with area farmers, said program organizer Jodee Ellett, local foods coordinator for Purdue Extension.”

The news update stated that, “Participants will learn how to procure locally sourced meats and vegetables for food service operations, as well as how to incorporate good eating habits into the general education curriculum.”

Last week’s update also provided the following additional information:

“Five action committees from throughout the state will be selected to participate in the training. All Indiana K-12 schools and districts, public and private, are eligible to apply.

“Action committee members will be required to attend a one-day workshop on Aug. 29 in a central location. Participation is free, funded through a USDA grant. The application deadline is June 15.

“The application is available online at https://www.purdue.edu/dffs/localfood/purdue-resources/f2straining/. A paper version is also available to download.

“For more information, contact Ellett at 765-494-0349, jellett@purdue.edu, or go to https://www.purdue.edu/localfood.”

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Crop Insurance Fraud

Colleen Kottke reported last week at the Wisconsin State Farmer Online that, “A Waushara County farmer who submitted over $246,606 in fraudulent insurance claim in 2011 is going to prison.

“United States Attorney for the Eastern District of Wisconsin, Gregory J. Haanstad said that Jeffrey Lewke, 39, was sentenced to six months in federal prison for making a fraudulent insurance claim. Upon his release, Lewke will serve an additional six months of home confinement. He was also ordered to pay a $2,000 fine and $23,799.44 in restitution to the United States Department of Agriculture (USDA).”

The article noted that, “Lewke told investigators that during the 2011 crop season, he falsely represented that he irrigated 120 acres of land in Waushara County more times than he actually did. By doing so, he attempted to fraudulently obtain a nearly $63,000 insurance claim.

“In total, Lewke acknowledged that he submitted $246,606.53 worth of fraudulent insurance claims during the 2011 crop season.”

Ms. Kottke added that, “According to court records, Lewke falsely claimed that he was prevented from planting a number of properties due to excessive moisture, when in fact, he never attempted to plant some of those properties. USDA officials discovered that some of those properties were already planted with corn, and in one instance, the property was actually a horse pasture.

“In addition, Lewke fraudulently ‘shifted’ his production by claiming that he produced corn in Dodge County, when in fact he produced the corn in Clark County. By so doing, he falsely claimed that he was entitled to another $70,000 of insurance payments for a loss in Clark County.”

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