New Farmers.gov Feature Helps Producers Find Farm Loans that Fit Their Operation

A news release last week from the USDA’s Farm Service Agency (FSA) stated that, “A new online tool can help farmers and ranchers find information on U.S. Department of Agriculture (USDA) farm loans that may best fit their operations. USDA has launched the new Farm Loan Discovery Tool as the newest feature on farmers.gov, the Department’s self-service website for farmers.

“‘Access to credit is critical in the agriculture industry, especially for new farmers,’ said Bill Northey, Under Secretary for Farm Production and Conservation. ‘This new interactive tool can help farmers find information on USDA farm loans within minutes. We are working to improve our customer service, and part of our solution is through improving how farmers can work with us online.’

“USDA’s [FSA] offers a variety of loan options to help farmers finance their operations. From buying land to financing the purchase of equipment, FSA loans can help. Compared to this time last year, FSA has seen an 18 percent increase in the amount it has obligated for direct farm ownership loans, and through the 2018 Farm Bill, has increased the limits for several loan products.”

Last week’s update added that, “The Farm Loan Discovery Tool is one of many resources on farmers.gov to help connect farmers to information that can help their operations. Earlier this year, USDA launched the My Financial Information feature, which enables farmers to view their loan information, history, payments, and alerts by logging into the website.

“USDA is building farmers.gov for farmers, by farmers. In addition to the interactive farm loan features, the site also offers a Disaster Assistance Discovery Tool. Farmers can visit farmers.gov/recover/disaster-assistance-tool#step-1 to find disaster assistance programs that can help their operation recover from natural disasters.”

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So Far, Lower Interest Rates Not Reviving Housing Market

Justin Lahart reported this week at The Wall Street Journal Online that, “Lower interest rates were supposed to breathe new life into the housing market. But so far there are few signs of a real-estate revival.

“Thanks in large part to the Federal Reserve’s dovish turn this year, mortgages have rarely been so cheap. As of last week, the average rate on a 30-year fixed was 3.75%, according to Freddie Mac, down from 4.73% a year earlier. Throw in an unemployment rate at nearly a 50-year low and improving household balance sheets and it seems like the housing market should have plenty of fuel.

But housing doesn’t look so hot. The latest evidence of that came Wednesday as the Commerce Department reported that construction was started on an annualized 1.25 million new homes last month, fewer than the 1.27 million economists expected.”

“Cheap Mortgages Aren’t Enough to Spark Housing Boom,” by Justin Lahart. The Wall Street Journal (July 17, 2019).

The Journal article noted that, “There are a variety of forces that might be muting the effect of lower mortgage rates on the housing market. Would-be buyers have to qualify for a mortgage before they get one, for example, and lending standards remain far more stringent than they were before the financial crisis. Nor do Americans view homes as such a good investment as they used to.

“Then there is the issue of affordability: Home-price gains have moderated, but as of May prices were still up 3.6% from a year earlier, according to CoreLogic, outpacing the 3.1% in average increase in hourly earnings over the same period. Moreover, the 2017 tax overhaul effectively raised the costs of homeownership for many buyers, particularly in high-tax states.”

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UK Venture Capital Industry: Share of Woman in Senior Roles Unchanged Since 2017

Martin Coulter reported last Thursday at The Financial Times Online that, “A study of the UK’s venture capital industry has found that the share of women in top jobs remains stuck at just 13 per cent.

“The report, published today by Diversity VC, a non-profit based in London, suggests that while the overall number of women in venture capital has grown slightly, new entrants are struggling to rise up the ranks.

“The number of women in senior roles was recorded as 13 per cent this year, the same figure as 2017. The overall number of women in the industry grew modestly, from 18 to 20 per cent.”

The FT article added that, “Women at junior level were found to be disproportionately educated compared with their male peers. Of those surveyed, 8 per cent of junior female employees held a PhD or similar, compared with just 1 per cent of men.”

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USDA Announces $16 Million Funding Opportunity to Support Socially Disadvantaged and Veteran Farmers and Ranchers

A news release from the U.S. Department of Agriculture (USDA) yesterday stated that, “The [USDA] today announced up to $16 million in available funding to help socially disadvantaged and veteran farmers and ranchers own and operate successful farms. Funding is made through the USDA’s Outreach and Assistance for Socially Disadvantaged Farmers and Ranchers and Veteran Farmers and Ranchers Program (also known as the 2501 Program). The program is administered by the USDA Office of Partnerships and Public Engagement (OPPE).

“‘All farmers and ranchers deserve equal access to USDA programs and services,’ said Mike Beatty, director of the USDA Office of Partnerships and Public Engagement. ‘2501 grants go a long way in fulfilling our mission to reach historically underserved communities and ensure their equitable participation in our programs.’

“For 30 years, the 2501 Program has helped reach socially disadvantaged agricultural producers – farmers and ranchers who have experienced barriers to service due to racial or ethnic prejudice. The 2014 Farm Bill expanded the program’s reach to veterans. The 2018 Farm Bill boosts mandatory funding for the program through FY 2023. With 2501 Program grants, nonprofits, institutions of higher education and Indian Tribes can support underserved and veteran farmers and ranchers through education, training, demonstrations, and conferences on farming and agribusiness, and by increasing access to USDA’s programs and services.”

Yesterday’s update added that, “Eligible 2501 Program applicants include not-for-profit organizations, community-based organizations, and a range of higher education institutions serving African-American, American Indian, Alaska Native, Hispanic, Asian, and Pacific Islander communities.

“The deadline for applications is August 15, 2019. See the request for applications for full details.”

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EPA Allow Farmers to Resume Use of a Pesticide Over Objections from Beekeepers

Associated Press writer Ellen Knickmeyer reported last week that, “The Environmental Protection Agency will allow farmers to resume broad use of a pesticide over objections from beekeepers, citing private chemical industry studies that the agency says show the product does only lower-level harm to bees and wildlife.

“Friday’s EPA announcement — coming after the agriculture industry accused the agency of unduly favoring honeybees — makes sulfoxaflor the latest bug- and weed-killer allowed by the Trump administration despite lawsuits alleging environmental or human harm. The pesticide is made by Corteva Agriscience, a spinoff created last month out of the DowDuPont merger and restructuring.

“Honeybees pollinate billions of dollars of food crops annually in the United States, but agriculture and other land uses that cut into their supply of pollen, as well as pesticides, parasites and other threats, have them on a sharp decline. The University of Maryland said U.S. beekeepers lost 38 percent of their bee colonies last winter alone, the highest one-winter loss in the 13-year history of their survey.”

The AP article noted that, “Emails and other records obtained from the EPA through Freedom of Information Act litigation by the Sierra Club, and provided to The Associated Press, show sorghum growers in particular had pressed senior officials at the agency for a return to broad use of sulfoxaflor.

“Sorghum growers regard honeybees as just another ‘non-native livestock’ in the United States, lobbyist Joe Bischoff said in one 2017 email to agency officials, and by cutting threats to the bees, ‘EPA has chosen that form of agriculture over all others.’

“A federal appeals court had ordered the EPA to withdraw approval for sulfoxaflor in 2015, ruling in a lawsuit brought by U.S. beekeeping groups that not enough was known about what it did to bees.”

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Senators Introduce Bipartisan Bill to Protect America’s Domestic Food Supply

A news release last week Senate Homeland Security and Governmental Affairs Committee stated that, “U.S. Senators Gary Peters (D-MI), Ranking Member of the Senate Homeland Security and Governmental Affairs Committee, Pat Roberts (R-KS), John Cornyn (R-TX) and Debbie Stabenow (D-MI) introduced bipartisan legislation to address the shortage of agricultural inspectors who protect our food supply and agricultural industries at the border. Agricultural inspectors work to prevent the intentional or unintentional entry of harmful plants, food, animals and goods into the United States. The Protecting America’s Food & Agriculture Act of 2019 would ensure the safe and secure trade of agricultural goods across our nation’s borders by authorizing U.S. Customs and Border Protection (CBP) to hire additional inspectors to fully staff America’s airports, seaports and land ports of entry. Roberts and Stabenow are Chairman and Ranking Member of the Senate Committee on Agriculture, Nutrition, and Forestry, respectively.

“‘Every day, millions of pounds of produce, meat and other agricultural goods enter the United States through our nation’s ports of entry,’ said Senator Peters. ‘Agricultural inspectors are responsible for ensuring these goods move efficiently across our borders while safeguarding against harmful pests, diseases and even potential bioterrorism attacks. This bill will help ensure we have enough inspectors to secure America’s domestic food supply and agricultural industries and protect the health and safety of people in Michigan and across the country.’

“‘Devastating diseases and pests are just one plane or boat ride away from causing havoc for American agriculture. Thus, diligence by the Customs and Border Patrol Agriculture Specialists is vital to a safe and affordable food supply,’ said Senator Roberts. ‘This bipartisan legislation helps to ensure that our borders are properly staffed and resourced to protect U.S. agriculture, the backbone of our national economy.'”

Last week’s update added that, “The USDA and CBP work together to facilitate the safe and secure entry of agricultural goods into the U.S. The program’s Agricultural Specialists and canine units conduct inspections of foreign passengers, commercial vessels, trucks, aircraft and railcars at U.S. ports of entry to protect health and safety by preventing the entry of harmful goods and invasive species that may pose a threat to American food and agriculture. On a typical day, those inspectors process more than 1 million passengers and 78,000 truck, rail and sea containers carrying goods worth approximately $7.2 billion. In March, agricultural inspectors and their canine teams intercepted roughly 1 million pounds of meat products smuggled from China, including pork products. China is currently undergoing a dangerous outbreak of African swine fever. According to CBP estimates, there is a shortage of nearly 700 inspectors across the country.

“The Protecting America’s Food & Agriculture Act of 2019 authorizes the annual hiring of 240 Agricultural Specialists a year until the workforce shortage is filled, and 200 Agricultural Technicians a year to carry out administrative and support functions. The bill also authorizes the training and assignment of 20 new canine teams a year, which have proven valuable in detecting illicit fruits, vegetables and animal products that may have otherwise been missed in initial inspections. Finally, the bill authorizes supplemental appropriations each year to pay for the activities of the agriculture specialists, technicians and canine teams.”

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Syngenta Settlement Payments May Arrive in 2020

DTN writer Todd Neeley reported this week that, “Payouts from a $1.51 billion Syngenta settlement may arrive in farmers’ mailboxes sometime in 2020, as attorneys in the case continue to battle a federal court on the allocation of fees.

“Farmers originally were expected to begin receiving payments during the second quarter of 2019.

A federal judge in the district court case invalidated contingency fee agreements, however. With those types of agreements, a lawyer’s fees comes from a percentage of money awarded to a client. Attorneys who had contingency agreements with some plaintiffs in the case have been fighting the court’s decision.”

Mr. Neeley noted that, “As a part of the settlement order, the district court set aside $503.33 million for attorneys’ fees. The court issued another order dividing attorney fees by percentage.

“That includes 49% to the Kansas multi-district litigation attorneys, 23.5% to attorneys in a Minnesota state court and 15.5% for attorneys in an Illinois state court.

“In addition, the settlement order sets the number at 12% for individually retained private attorneys. It is this order that attorneys currently are fighting.”

The DTN indicated that, “In addition, there is an ongoing appeal filed in the U.S. Court of Appeals for the 10th Circuit in Denver by certain producer class members who objected to the settlement. That group of producers filed an opening court brief for the appeal on May 30, 2019.”

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USDA Extends Deadline to Report Spring-Seeded Crops for Twelve States

An update today from USDA’s Farm Service Agency (FSA) stated that, “The U.S. Department of Agriculture (USDA) is extending the deadline for agricultural producers in states impacted by flooding and heavy moisture. The new July 22 deadline applies to producers in Arkansas, Illinois, Indiana, Iowa, Kentucky, Michigan, Missouri, Minnesota, North Dakota, Ohio, Tennessee and Wisconsin for reporting spring-seeded crops to [FSA] county offices and crop insurance agents.

“‘These are challenging times for farmers, and we are here to help,’ said Bill Northey, USDA Under Secretary for Farm Production and Conservation. ‘This deadline extension is part of our broader effort to increase program flexibility and reduce overall regulatory burden for producers who are having to make some tough choices for their operations.’

“Producers not in the selected states must file reports or be added to a county register by the original July 15 deadline.”

The update added that, “Filing a timely crop acreage report is important for maintaining eligibility for USDA conservation, disaster assistance, safety net, crop insurance and farm loan programs. A crop acreage report documents all crops and their intended uses and is an important part of record-keeping for your farm or ranch.

“Producers filing reports with FSA county offices are encouraged to set up an appointment before visiting the office. Acreage reports from producers in the affected states who set up appointments before the July 22 deadline are considered timely filed, even if the appointment occurs after the deadline. Likewise, reports from producers in non-affected states who set up appointments before July 15 will be considered timely filed.

“‘We encourage you to contact your FSA county office today to set up an appointment,’ Northey said. ‘Our team is standing by to help you complete this important process that keeps you eligible for key USDA programs.'”

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Some Top Indoor Farms Boosting Production

Last week, Reuters writer Jane Lanhee Lee reported that, ” Leafy salad greens grown under banks of LED lights, with mist or drips of water are having their day in the sun. Several top U.S. indoor farms, stacked with plants from floor to ceiling, tell Reuters they are boosting production to a level where they can now supply hundreds of grocery stores.

“Plenty, Bowery, Aerofarms and 80 Acres Farms are among young companies that see a future in salad greens and other produce grown in what are called vertical farms that rely on robotics and artificial intelligence, along with LED lights. While the first versions of modern vertical farms sprouted about a decade ago, in recent years the introduction of automation and the tracking of data to regulate light and water has allowed them to get out of lab mode and into stores. Now they are trying to scale up.

“Plenty and others say their customized, controlled lighting – some more blue light here, some more red light there – makes for tastier plants compared to sun-grown leaves and that they use 95% less water than conventional farms, require very little land, and use no pesticides, making them competitive with organic farms. And because vertical farms exist in windowless buildings that can be located in the heart of urban areas, produce does not have to travel far by fossil-fuel-guzzling trucks to reach stores.”

The Reuters article noted that, “But whether the sunless farms can compete financially with their field-grown brethren, given big upfront investments and electric bills, remains a question.”

“Plenty’s salads sell on organic grocery delivery site Good Eggs for 99 cents an ounce, while a leading brand, Organic Girl, on grocery chain Safeway’s online site was priced at 80 cents an ounce,” the article said; but added that, “In its last round in 2017 Plenty raised about $200 million from investors including Japan’s Softbank, Amazon founder and CEO Jeff Bezos and former Alphabet Chairman Eric Schmidt. New York City-based Bowery raised $95 million in a fund-raising round led by Google Ventures and Temasek last year.”

The article noted that, “Former Vertical Farm CEO Matt Matros is skeptical that sunless farms can make economic sense. He invested in and ran Chicago-based FarmedHere in 2015, but changed its business into food processing.

“‘The issue with indoor farming was that you could really only grow a couple things efficiently — namely basil and micro greens. But the problem is the world just doesn’t need that much basil and micro greens,’ Matros said.”

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On Top of Colony Collapse, Beekeepers Facing Losses from Extreme Weather

Washington Post writer Laura Reiley reported last week that, “Commercial honeybee colonies have had a rough run. And it’s not over yet. The annual loss rate for honeybees during the year ending in April rose to 40.7 percent, up slightly over the annual average of 38.7 percent, according to the Bee Informed Partnership, a nonprofit group associated with the University of Maryland.

More troubling was this past winter’s losses of 37.7 percent. Winter bees tend to live longer, clustering in the hive to keep the queen warm. This winter’s losses were 8.9 percentage points higher than the survey average and the highest winter loss since the annual bee survey began 13 years ago.

“Karen Rennich, the partnership’s executive director, said the nonprofit has been collecting loss data from beekeepers and conducting a longer survey of management data since 2010. ‘We’re trying to drill down and see which management practices are correlated with lower mortality,’ she said.”

The Post article noted that, “Rennich points to the three months of California wildfires, with bees affected by smoke and by the lack of plants on which to forage. She also cited the wet winter in the Midwest and the spring’s slow planting schedule.”

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