Recall that late last year, House Agriculture Committee Chairman Mike Conaway (R., Tex.), along with 100 of his colleagues, made a formal request to Secretary of Agriculture Tom Vilsack to “use legal authority provided under the 2014 Farm Bill” to provide additional federal assistance to struggling cotton farmers.

A detailed backgrounder on the debate about whether or not USDA could consider cottonseed as an “other oilseed” under the Farm Bill, an idea that Chairman Conaway requested, and a proposition that was ulitmately rejected by Secretary Vilsack, is available here.

Yesterday, DTN Ag Policy Editor Chris Clayton reported that, “USDA will provide up to $300 million in aid to cotton producers under a new Cotton Ginning Cost-Share program, the department announced Monday.

“Groups representing cotton producers have been calling on Agriculture Secretary Tom Vilsack to provide some type of commodity safety net to cotton farmers since last year.

“Under the program, cotton farmers will receive a one-time payment based on their 2015 cotton acres reported to the Farm Service Agency. The acreage would be multiplied by 40% of the average ginning costs for each production region. Roughly 13 million bales of cotton were ginned in 2015 from 9 million planted acres.”

Mr. Clayton noted that, “The average cotton producer would collect roughly $8,100, according to FSA. That means payments will be 60% higher on average than they were for farmers under the 2014 Cotton Transition Assistance Program, which was created in the 2014 farm bill to help ease the shift from direct payments to being dropped from commodity programs.”

The DTN article explained that, “The cotton industry had agreed to forego commodity payments in the 2014 farm bill, but reversed course after cotton prices fell sharply. Industry leaders had specifically asked for USDA to consider cottonseed as an ‘other oilseed‘ that would allow cotton producers to sign up for the Price Loss Coverage program for cottonseed payments. Vilsack rejected that request, stating that he did not have authority under the 2014 farm bill to designate cottonseed eligible for PLC.

“The announcement comes as cotton prices have been ticking up in recent weeks. The December cotton futures contract finished Monday at 65.54 cents a pound.

“Zippy Duvall, president of the American Farm Bureau Federation and a Georgia farmer, said the payments would help cotton farmers dealing with some of their toughest market conditions in a decade.”

Sonja Begemann reported recently at AgWeb Online that, “As wallets tighten, farmers are opening themselves to new options to manage their costs, such as leasing machinery.

“‘During hard economic times, farmers may not have as much money to buy needed new equipment,’ says Ray Massey, University of Missouri Extension professor in agricultural economics. But farmers with less cash on-hand can still access new technology through machinery leasing.”

Ms. Begemann indicated that, “Before you lease equipment, though, you’ll want to read the contract thoroughly. As you do that, here are some key questions you’ll want to ask–and get answered–before you sign.

“Who is responsible for maintenance and repairs?

“What repairs qualify as the farmer’s responsibility?

“What are the contract conditions?

“How many hours can the machine be used to be considered one lease year?

“What is your purchase option at the end of the lease?

“Can you terminate the lease early?

“When are the payments?

“What are the tax requirements?”

The AgWeb article added that, “Once you get all the information, you can make your decision based on the total after-tax cost and near-term cash flow requirements.”

DTN Special Correspondent Elizabeth Williams reported on Friday that, “Even the rich and famous make mistakes when it comes to estate planning. Consider the iconic musician Prince, 57, who died without a will in April. The main beneficiaries of his estate will likely be the IRS (which could wind up with $118 million, assuming the value of Prince’s estate at $300 million), the state of Minnesota ($48 million in state death taxes on a $300 million estate) and the attorneys hired to sort things out. Most likely, this is not what Prince would have preferred.

“In fact, the main problem with dying without a will is the state where you live decides where your assets end up. It’s a mistake that could easily be avoided.”

Ms. Williams added that, “DTN asked agricultural tax experts what common estate planning problems in farm and ranch country could be avoided with proper planning. Here are the top 10 ‘blunders’ they wish farm owners would avoid:

“1. Expect the will to cover everything.

“People have the mistaken notion that their will overrides other financial documents, said Johnne Syverson, certified financial planner and accredited estate planner with Syverson, Strege and Co. in West Des Moines, Iowa.

“‘In fact, your will does not have power over the beneficiaries listed on your life insurance or annuities or IRAs. It also does not have anything to do with certain financial accounts such as your bank account or brokerage account where you have a ‘payable on death’ agreement,’ Syverson explained. ‘We had a client who had been divorced for 15 years and had remarried, but he still had his first wife listed as the beneficiary on his life insurance. Other clients have had beneficiaries or had named executors or trustees who were now deceased. Or, they still had their parents listed as beneficiaries and not their wife and children because they hadn’t updated their policy in years.’

“The will is only one component of an estate plan, added Nick Houle, CPA and principal with CliftonAllenLarson in Minneapolis. ‘Joint tenancy ownership and beneficiaries listed on life insurance policies and ‘payable on death’ or ‘transfer on death’ documents all override a will,’ Houle said. ‘These need to be updated when your beneficiaries change.’

“2. Set up a Revocable Living Trust but don’t transfer ownership titles to it.

“‘Some people set these up 20 years ago. These trusts are a great tool to avoid probate and as the trustee, you still retain control over your assets,’ explained Kevin Bearley, tax attorney with KCoe Isom in Loveland, Colorado. ‘They may have funded them then, but now some of those trusts no longer have assets in them. Your revocable trust, not you personally, should be the owner of your farm corporation or partnership interests, your personal residence and your checking account,’ advised Bearley.

“Also, real estate you own in another state, such as lake houses, vacation properties or timeshare interests (which are deeded property) should be in your revocable trust, noted Syverson. ‘Otherwise, that property will have to go through probate in the state where it is located and that can be expensive.’

“3. Putting everything in one pot.

“‘We see way too many problems when all the farmland is owned with undivided interest and often the family has to go to court to get something sold,’ noted Kevin Mills, CPA with KCoe Isom in Lenexa, Kansas.

“‘It simplifies things if the land is in an entity with a good buy-sell agreement when someone wants out,’ Mills said.

“You may also want to separate assets so the on-farm heir gets the operating assets and the land is split between all the children, added Syverson.”

The DTN article went on to include seven other “blunders” including: Unequal treatment of offspring; Impractical buy-sell agreement; Too much gifted away; Child gets too much, too soon; Life insurance policy expires; Procrastination; and, Lack of communication.

Christopher Doering reported in today’s Des Moines Register that, “Congress is unlikely to finish legislation on labeling products containing genetically modified ingredients before Vermont’s own law takes effect next month, Sen. Charles Grassley said Thursday.

“The Iowa Republican told reporters that before Congress left for its week-long recess, he talked with senators trying to reach a deal on labeling. He came away unconvinced a bill will be completed before July 1, when Vermont becomes the first state to require labeling. Other states are working on similar initiatives.

“‘I see it as very difficult to get a compromise,’ Grassley said. ‘I hope something would develop this week that we could get something passed, but frankly, I doubt it.'”

The Register article added that, “The labeling debate has pitted consumer groups that contend people have a right to know what is in the food they eat against the food industry, which favors making labeling voluntary. Proponents of a mandatory label argue giving food manufacturers the option to label wouldn’t be effective.”

Note that a more detailed background on the labeling issue can be found here.

Paul Post reported in today’s New York Times that, “Apple trees have blossomed, and soon fruit will begin emerging at Elizabeth Ryan’s orchard in the Hudson Valley. Before long, her harvest will head south to Manhattan, where Miro Uskokovic, the pastry chef at Gramercy Tavern, will use it to create an apple and carob cake, while Michael Anthony, the executive chef at the Studio Cafe inside the Whitney Museum of American Art, will turn it into an apple compote spread over pie dough and covered with a streusel.

“Ms. Ryan’s apples are also on school-lunch menus and sold at farmers markets all over the city. Her farm, Stone Ridge Orchard in Ulster County, is part of a rapidly expanding pipeline that carries fruits and vegetables from farms across New York State to consumers clamoring for fresh ingredients grown in soil not far away.

“But the demand for locally grown foods is colliding with another powerful force: a booming real estate market, particularly in the Hudson Valley, driven by waves of newcomers from New York City, perhaps drawn by the region’s natural beauty, more relaxed pace and less expensive housing. The boom is gobbling up family farms as owners choose to cash in on the surging value of land rather than grapple with the perennial challenges of slim profit margins, high taxes, long hours and fickle weather.”

The article noted that, “Now a group of New York City lawmakers has teamed up with another preservation group, the Scenic Hudson Land Trust, to create a plan to preserve the region’s existing food system. As part of the initiative, lawmakers are seeking for the first time to set aside money in the municipal budget for the preservation of farmland in the Hudson Valley.”

With respect to local produce, today’s article explained that, “The economic impact of fresh food is also growing in the city. The number of farmers markets in New York City has nearly doubled, to 146 in 2015 from 79 in 2006, according to city officials. In the 2014-15 school year, the city spent over $27 million on locally produced food, a nearly $2 million increase from the previous year.”

Mr. Post added that, “Mayor Bill de Blasio, who has emphasized the need for improved access to affordable fresh fruits and vegetables, especially in low-income schools and neighborhoods, is reviewing [Councilman Daniel R. Garodnick’s (Democrat of Manhattan)] proposal, a spokeswoman said, and recognizes the importance of preserving farmland. The city’s budget has to be finalized by June 30.

“A group of State Assembly members wrote a joint letter to Mr. de Blasio, a Democrat, urging him to support the conservation plan.

“‘Most of us are the ones in our households who end up making key food decisions,’ said Assemblywoman Didi Barrett, a Democrat, who wrote the letter and who represents Dutchess and Columbia Counties. ‘People I represent are the people who drive to the city each week for farmers markets. And people in the city want to know where their food is coming from and who their farmers are.'”

Yesterday, the Federal Reserve Board released its Summary of Commentary on Current Economic Conditions. Commonly referred to as the “Beige Book,” the report included the following observations with respect to the U.S. agricultural economy:

* Fifth District- Richmond– “Agricultural activity increased modestly since our previous Beige Book report, according to sources. Cotton, corn, and peanut planting are underway. However, a few Virginia and North Carolina farmers reported delayed planting and harvesting of some crops because of a protracted period of rain. South Carolina planters continued to report more labor-intensive field preparation work because of last year’s flooding. According to agribusiness contacts, input prices remained unchanged in recent weeks while crop prices and beef prices declined slightly.”

* Sixth District- Atlanta– “Agricultural conditions across the District were mixed. While most of the region remained drought free, abnormally dry to moderate drought conditions were reported in parts of Florida, Georgia, Tennessee, and Alabama. Contacts continued to focus on efficient production and controlling input costs to optimize income in a low commodity price environment. However, low feed prices benefited protein producers relying on grain for feed. On a year-over-year basis, monthly prices paid to farmers for corn, cotton, rice, soybeans, beef, broilers, and eggs declined, although on a month over month basis prices increased for soybeans, beef, and broilers.”

* Seventh District- Chicago– “Contacts expect the growing season to get off to a decent start in most of the District, even though wet, cool weather meant that both the planting and emergence of corn and soybeans were behind the pace of last spring. Corn and soybean prices rose during the reporting period, but soybean prices rose more, which may cause farmers to plant more soybeans at the expense of corn. At current prices, contacts believe that farms can cover this year’s costs for soybean production but not for corn. Many farmers took advantage of the price rally and boosted their working capital by selling old crops and locking in prices on new crops. Milk and dairy product prices moved lower, as production remained strong. Cattle prices were down as well. Hog prices increased however, helped by solid demand from China, and there was one report of new construction of hog facilities.”

* Eighth District – St. Louis– “The District row crop outlook has slightly improved: Corn, cotton, rice, and soybeans were, as of early May, ahead of their respective five-year average levels of planting progress, and crop prices have risen from their lows. However, contacts note that, even with a near-perfect year in the field, most row crop operations will struggle to break even unless a crop price rebound is sustained and significant.”

* Ninth District- Minneapolis– “District agricultural conditions remained weak, despite favorable weather going into the growing season. Nearly all respondents to the Minneapolis Fed’s first quarter survey of agricultural credit conditions reported that farm incomes were down from a year ago, and more than 80 percent expected them to fall further in the second quarter. Planting progress and early emergence for corn, soybeans, sugar beets, and small grains as of mid-May were well ahead of five-year averages in most of the District. Prices received by farmers fell in March from a year earlier for corn, wheat, soybeans, hay, hogs, cattle, chickens, eggs, and milk; prices increased for turkeys.”

* Tenth District- Kansas City– “Despite a moderate increase in soybean and hog prices in May, District contacts reported that most commodity prices remained below levels considered to be profitable, and generally at or below year-ago levels. Low commodity prices and low farm income weighed on credit conditions, and bankers reported further reductions in loan repayment rates and a significant increase in the number of farm borrowers with increased carry-over debt. District contacts expected demand for short-term financing to remain strong amid a relatively pessimistic outlook for farm income. Alongside low farm income, farmland values and cash rents also declined slightly from a year ago.”

* Eleventh District- Dallas– “Favorable weather and good soil moisture improved production prospects for 2016 crops. Contacts noted that above-average yields, if materialized, would help offset some of the negative impact of low crop prices on farm income. Cattle prices declined sharply in April, partly a result of higher beef production, but recovered some of the loss in early May as retail beef demand increased in anticipation of the Memorial Day holiday. Milk prices plummeted from already-low levels over the past six weeks, putting further pressure on dairies’ profit margins.”

* Twelfth District- San Francisco– “Activity in the agriculture sector expanded somewhat over the reporting period. Domestic demand and sales continued to grow for a wide variety of crops. Contacts reported that an oversupply of potatoes from the 2015 harvest has created excess inventories and led some growers to switch acreage to wheat production. The strong dollar continued to hold down agricultural exports in general, although overseas sales of pork products registered further strong growth. Demand for poultry exports was robust as pent-up demand from last year’s avian flu outbreak persisted and lower input prices helped exporters remain competitive globally. By contrast, activity in the cattle industry declined further, and feedlots faced challenges to remain profitable.”