Syngenta Corn Settlement Payments on Hold– Awaiting Resolution of Appeals

DTN writer Todd Neeley reported yesterday that, “Farmer payouts from the Syngenta corn settlement remain on track for sometime in 2020, but exactly when is unknown.

“The U.S. District Court for the District of Kansas in Kansas City approved the $1.51 billion settlement from a lawsuit filed following Syngenta’s release of Agrisure Viptera (MIR162) and Agrisure Duracade corn traits.

“Syngenta spokesman Paul Minehart previously told DTN that Syngenta plays no role in the distribution of settlement funds as the company already has contributed $1.51 billion.”

The DTN article noted that, “According to the settlement, there are four subclasses approved as eligible for payments.

“First, are farmers who owned any interest in corn in the United States but did not plant the Syngenta seeds in question. A second subclass includes any producer who owned any interest in corn in the U.S. priced for sale, purchased Agrisure Viptera and/or Agrisure Duracade corn seed, and produced corn grown from those traits.

“The settlement also will include any grain-handling facility and ethanol plants that owned interest in corn priced for sale during the period.”

Mr. Neeley explained that, “Plaintiffs in the cases allege Syngenta sold corn with Agrisure Viptera and Duracade traits prior to the traits receiving import approvals in several countries, including China. China claims it found and rejected corn shipments containing the traits, which plaintiffs said led to lower corn prices.

“Official lawsuits that were filed on behalf of corn producers include cases in Alabama, Arkansas, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Oklahoma, South Dakota, Tennessee, Texas and Wisconsin.”

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Statistical Summary: Honey Bees

Last month, the USDA’s National Agricultural Statistics Service (NASS) released an update summarizing U.S. Honey Bee statistics.

The report noted that, “In 2017, the United States had 2.88 million honey bee colonies, down 12 percent from the record high 3.28 million colonies in 2012, but down less than 1 percent from 2007. Fig. 1 shows number of colonies since 1969; similar data are available going back to 1900. Fig. 2 shows that colony losses and gains occur seasonally. The greatest losses occur in the fall and winter quarters that start in October and January.”

Statistical Summary: Honey Bees. USDA-NASS (September 2019).

The NASS update stated that, “The largest number of colony renovations occur in the spring quarter starting in April, making total colony numbers largest in the quarters that start in July and October. For example, Fig. 2 shows significant losses in the last quarter of 2017 and first quarter of 2018; after 740,000 colonies were renovated in the second quarter, there were 2.96 million colonies in the third quarter of 2018.”

Statistical Summary: Honey Bees. USDA-NASS (September 2019).

With respect to production, the September report indicated that, “U.S. honey production in 2018 from producers with five or more colonies totaled 152 million pounds, up 2 percent from 2017 (Fig. 3). The average honey yield per colony that year was 54.4 pounds, down 2 percent from 55.5 pounds in 2017. Colonies that produced honey in more than one state were counted in each state where the honey was produced. As a result, at the national level yield per colony may be understated, but total production is not impacted. Only colonies from which honey was harvested are included.”

Statistical Summary: Honey Bees. USDA-NASS (September 2019).

The NASS report also noted that, “Between 2017 and 2018, honey prices in the United States declined from 220.0 cents per pound (the highest ever) to 216.6 cents (Fig. 4). Prices at the national and state level reflect the shares of honey sold through cooperative, private, and retail channels. Prices for each honey color classification are derived by weighting the quantities sold for each marketing channel.”

Statistical Summary: Honey Bees. USDA-NASS (September 2019).

Honey sales in 2017 were $320 million, up 21 percent from 2012, according to the Census of Agriculture,” the NASS report said.

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The Digital Evolution of Agriculture is Already a Fact of Life on Farms Across the U.S.

Norman Mayersohn reported earlier this month at The New York Times Online that, “Of all the out-of-the-box products a Silicon Valley tech start-up could offer, Bear Flag Robotics may be delivering the most unexpected: plowed fields.

“The company is developing autonomous tractors, a goal that equipment companies like Case IH, John Deere and Kubota are chasing as well. But the business model of Bear Flag, based in Sunnyvale, Calif., has a twist — it does not build the tractors. Instead, it adapts the sensors and actuators needed for driverless plowing to existing tractors produced by major manufacturers.

“That step is not as sci-fi as it might seem. From equipment automation to data collection and analysis, the digital evolution of agriculture is already a fact of life on farms across the United States.”

The Times article stated that, “Auto-steer systems, which use GPS receivers to keep rows straight and avoid gaps or overlap, are available for equipment ranging from tractors to harvest combines to sprayers with 100-foot-wide booms. Precision seeders and fertilizer systems can be satellite guided to accuracy of an inch or less.

“The difference: For the most part, those operations still depend on an operator at the controls.

“‘Autonomous operation will be a service in agriculture before it’s a product,’ said Igino Cafiero, Bear Flag’s chief executive during a break from his work in a test field of cilantro about 60 miles southeast of the company’s headquarters. The company’s niche is providing secondary tillage, deploying its equipment after a harvest is complete to prepare the fields for the next planting.”

Mayersohn noted that, “The drive to increase productivity is urgent in all phases of agriculture. Feeding a world population expected to reach 9.7 billion by 2050 faces dire challenges, according to the summary of a United Nations report released in August. The effects of climate change — extreme weather, soil loss, migration pressures — will strain land and water resources, potentially disrupting food supplies.”

The New York Times article added that, “The benefits of automation scale down to some smaller growers as well. Penny Gritt Goff, the third-generation operating manager of Gritt’s Midway Greenhouse in Red House, W.Va., takes advantage of computerized monitoring to keep tabs on temperature, humidity, nutrient levels and other conditions for three acres of hydroponic greenhouses where lettuce grows in flowing water and tomatoes are raised in a bed of coconut husks.”

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Initiative to Bring High-Tech Jobs to Rural Iowa

Des Moines Register writer Donnelle Eller reported recently that, “The modern office in this once-dilapidated building gives graduating high school students hope they can find high-paying tech jobs in the town where they grew up, leaders said [earlier this month].

“‘People shouldn’t have to move. People shouldn’t have their only choice be to get out the community that they love,’ said U.S. Rep. Ro Khanna, a California Democrat.

“Khanna and others have been working to connect this rural Iowa community of 4,200 to Silicon Valley tech leaders to provide training for jobs typically found in large cities.”

The Register article noted that, “On [Sept. 7th], the initiative to bring high-tech jobs to rural Iowa took a major step, with Pillar Technology, an Accenture company with a Des Moines office, opening its $1.8 million center in Jefferson.

“Gov. Kim Reynolds said Pillar Technology’s new office ‘provides more than just a home for innovation.’

“‘It’s a launchpad for careers, it’s a hub for lifelong learning and it’s a model for small towns across our state and country,’ she told about 400 Jefferson residents at the town’s community center.”

Ms. Eller indicated that, “Pillar Technology is trying to boost the state’s tech pool, and is partnering with Jefferson to provide intense training that begins at high school, moves through community college, and ends with four months of free training at the Jefferson Forge and a shot at a paid six-month apprenticeship at the Jefferson Forge academy.

“Linc Kroeger, a Pillar executive, said the fast-track training should position graduates for good-paying jobs — with little debt — at either Pillar or another company.”

The Register article added that, “A long list of California tech companies and entrepreneurs — Microsoft’s Kevin Scott, LinkedIn co-founder Allen Blue, venture capitalist Greg Sands and Ripple CEO Brad Garlinghouse — have committed personally or through their companies to help Jefferson’s effort.

Khanna said he believes the technology explosion that’s centered on the West Coast can help other parts of the U.S. Silicon Valley companies, he and others say, struggle with fierce competition for workers and high costs to work and live.”

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Producers to Receive Automatic Prevented Planting ‘Top-Up’ Payments

A news release today from USDA’s Risk Management Agency (RMA) stated that, “The U.S. Department of Agriculture (USDA) announced today that producers currently participating in federal crop insurance who had in 2019 a payable prevented planting indemnity related to flooding, excess moisture or causes other than drought will automatically receive a ‘top-up’ payment. Producers will receive the payment from their Approved Insurance Providers (AIPs) starting in mid-October.

“Producers with Yield Protection and Revenue Protection with Harvest Price Exclusion will receive a 10 percent top-up payment, while producers with Revenue Protection will receive 15 percent. They do not need to sign up to receive payments; all producers with a 2019 prevented planting indemnity will receive the top-up.

“‘It was a challenging planting season for many of our farmers,’ said Bill Northey, USDA’s Under Secretary for Farm Production and Conservation. ‘We are doing everything we can to ensure producers receive the help they need.

“‘USDA is working with AIPs so that producers can receive additional payments as soon as possible,’ Northey added, ‘and we appreciate the AIPs for helping us help America’s farmers.'”

The RMA update added that, “The crop insurance industry will deliver the payments as part of the Additional Supplemental Appropriations for Disaster Relief Act of 2019. After the initial payment, additional payments will be made in the middle of each month as more prevented planting claims are processed.

“‘Crop insurance is an important program for many producers to help them manage their production and price risks,’ said Martin Barbre, Administrator of [RMA]. ‘We’re leveraging that system to efficiently and effectively deliver much needed support to our farmers.'”

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New Home Sales Increased in August

Wall Street Journal writers Likhitha Butchireddygari and Harriet Torry reported today that, “The pace at which Americans bought new homes increased in August, a sign that low mortgage rates may be encouraging home building.

“Purchases of newly built single-family homes rose 7.1% to a seasonally adjusted annual rate of 713,000 in August from the prior month, the Commerce Department said Wednesday. Economists surveyed by The Wall Street Journal expected a sales pace of 660,000 in August.

“The number of new homes for sale in August would last 5.5 months at the current pace, which is down from 6.3 a year ago.”

The Journal update added that, “The median sales price of a new home in August was $328,000, up from last year, when the median sales price was $321,400. Cooling growth in home prices might be encouraging sales of new homes. According to S&P CoreLogic Case-Shiller National Home Price Index, average national home prices grew 3.2% in July from the year prior, which is down from earlier in the year.”

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Nebraska Beekeepers Face Challenges

Joe Dejka reported today at the Omaha World-Herald Online that, “The Good Life is far from sweet for the honeybee these days.

“The official Nebraska state insect is feeling the sting of agricultural chemicals, unfavorable weather, flooding and mites, according to beekeepers big and small.

Keeping bees here has been so challenging lately that U.S. commercial beekeeping giant Adee Honey Farms recently gave up on Nebraska as a place to put hives during the summer months.”

The article stated that, “The company, which has almost 82,000 hives and trucks hives across the country to pollinate fruit and vegetables, had kept 12,000 hives in Nebraska — almost 500 million bees.

“At one time, Nebraska had been the company’s top honey-producing state…This year, the company put no hives here. Its bee losses in the state were 82% last year, so severe that the company moved what bees it could salvage to South Dakota, a company official said.”

Mr. Dejka indicated that, “Beekeepers say a combination of culprits is hurting bees, but they put pesticides, herbicides, fungicides and the Varroa mite at the top of the list.”

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In a Letter to USDA, American Farm Bureau President Calls for NRCS Wetlands Reform

DTN writer Todd Neeley reported last week that, “For years, farmers across the country have battled USDA’s Natural Resource Conservation Service on wetland determinations. Now, based on a recent federal court decision, a national farm group is calling on USDA to reform the agency’s program.

“Last month, the U.S. Court of Appeals for the Seventh Circuit in Chicago sided with a farm family that has been battling NRCS for more than a decade on a wetlands determination made on the family’s farm in Indiana.

“In the 1990s, the late David Boucher cut down nine trees on his family farm. The action garnered attention from NRCS, which argued the family converted several acres of wetlands into croplands by removing the trees.”

Mr. Neeley explained that, “As a result, the NRCS claims rendered the Bouchers’ entire farm ineligible for USDA benefits, although the family never did convert wetlands. On Aug. 8, 2019, the federal court ruled in favor of the Bouchers.

“In a letter to U.S. Secretary of Agriculture Sonny Perdue on Wednesday, American Farm Bureau Federation President Zippy Duvall said the agency should reform the program.”

The DTN article stated that, “In its ruling, the court called out the NRCS for its handling of the Boucher case.

“‘The USDA repeatedly failed to follow applicable law and agency standards,’ the court said. ‘It disregarded compelling evidence showing that the acreage in question never qualified as wetlands that could have been converted illegally into croplands. And the agency has kept shifting its explanations for treating the acreage as converted wetlands. The USDA’s treatment of the Bouchers’ acreage as converted wetlands easily qualifies as arbitrary, capricious, and an abuse of discretion.’

“USDA issued an interim final rule on highly erodible land and wetland conservation in December 2018. Duvall said in his letter that the rule does not fix the problems identified in the Boucher case.”

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More Time Provided for Dairy Producers to Enroll in DMC Program

A news release yesterday from USDA’s Farm Service Agency (FSA) stated that, “The U.S. Department of Agriculture (USDA) today extended the deadline to September 27 for dairy producers to enroll in the Dairy Margin Coverage (DMC) program for 2019. The deadline had been September 20.

“Authorized by the 2018 Farm Bill and available through [FSA], the program offers reasonably priced protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.

“‘More than 21,200 dairy operations have already signed up for DMC, but we’re providing an additional week to help ensure interested producers have time to come into the office,’ said Bill Northey, USDA Under Secretary for Farm Production and Conservation. ‘With smaller margins and increased feed costs, DMC has resulted in almost $230 million in payments disbursed. I know that some farmers may still be cautious given their experiences with former dairy support programs, but producers who have not signed up yet should come into a local office to learn how much money the program can put into their pockets.'”

The FSA update added that, “On December 20, 2018, President Trump signed into law the 2018 Farm Bill, which provides support, certainty and stability to our nation’s farmers, ranchers and land stewards by enhancing farm support programs, improving crop insurance, maintaining disaster programs and promoting and supporting voluntary conservation.

“For more information, visit farmers.gov DMC webpage or contact your local USDA service center. To locate your local FSA office, visit farmers.gov/service-locator.”

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Cattle States Work to Control the Labelling of Meat Substitutes

Gregory Meyer reported earlier this week at The Financial Times Online that, “US states that raise cattle and poultry are trying to fence in the fast-growing alternative meat industry.

Wyoming, Oklahoma and South Dakota are among the states working to control the labelling of meat substitutes as the products appear in more restaurants and supermarkets.

“Their efforts address an industry that threatens sales of beef, pork and chicken. Alternative meats could grow to become 10 per cent of the $1.4tn global meat industry over the next 10 years, according to Barclays.”

Mr. Meyer stated that, “Among the states passing labelling laws, Oklahoma, Missouri, South Dakota, Montana, Kentucky and North Dakota rank in the top 10 for beef cattle inventory, according to the US Department of Agriculture.

“Alabama, Arkansas, Mississippi and South Carolina are in the top 10 for broiler chickens.  Some of the laws address plant-based meat substitutes, while others regulate only cultured meats grown from tissue cells, which are not yet on the market.”

The FT article added that, “‘The cattlemen are quite concerned,’ said Doug Farquhar, programme director for environmental health at the National Conference of State Legislatures. ‘If you are able to grow this stuff rather than raise cattle, you are going to turn this entire market on its head.'”

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