Backyard Bee Keepers Part of Detroit’s Comeback Story

Frank Witsel reported on Wednesday at the Detroit Free Press Online that, “For the past few years, national media have touted Detroit’s comeback story: It endured dark days, went through the nation’s largest municipal bankruptcy, and is — literally, with the construction of a new skyscraper — on the rise.

“The city is about to face a different kind of buzz.

“‘We’re starting to see more bees in the city,’ said Timothy Paule, who, with his girlfriend, started a nonprofit to build beehives on vacant city plots. ‘Some people are planting urban farms, and they’re adding bees to help with the yield. Others are doing their part and placing hives in backyards to help the declining bee population.’

“As the weather warms up, their bees — and millions of others — will get busy.”

The article stated that, “Paule is among a growing number of people in Detroit and around the globe who are cultivating urban beehives as part of social missions and small businesses. It is a trend that has prompted cities to lift beekeeping limitations and inspired entrepreneurs to sell beekeeping starter kits and the bees’ honey.”

“The Detroiter hopes to add as many as 200 hives in the city in the next decade through his nonprofit, Detroit Hives, by buying vacant Detroit lots, making deals with socially conscious companies to sponsor hives and teaching other people, including schoolchildren, about bees.”

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Kentucky Man Indicted For Crop Insurance Fraud

A news release earlier this week from the U.S. Attorney’s Office in the Eastern District of Kentucky stated, “According to court records unsealed today, a Paris, Ky. man was indicted on March 1, 2018, and charged with crop insurance fraud, wire fraud, and money laundering-related offenses.

“A federal grand jury in Lexington returned the indictment charging 46-year-old Ronnie Jolly with one count of conspiring to violate federal law, six counts of making false statements to influence the Federal Crop Insurance Corporation (‘FCIC’) and companies the FCIC reinsures, one count of conspiracy to commit wire fraud, 21 counts of money laundering, and one count of structuring currency transactions to avoid reporting requirements.

“The indictment alleges that Jolly, an agricultural producer of tobacco, corn, and soybeans in Bath, Bourbon, Fleming, Montgomery, and Scott Counties, hid his crop production from his insurance company, in order to claim damage to his crop sufficient to trigger crop insurance indemnity payments, which are funded by the federal government through the FCIC.   The indictment alleges that he also obtained crop insurance policies, in the names of his employees, for crops that he produced.  The indictment alleges this was designed to avoid federal government scrutiny over his claims of crop damage, because he spread the damage amongst several producers.  Similarly, the indictment alleges that Jolly obtained private crop insurance policies in the names of others.”

The news release noted that, “According to the indictment, Jolly used the proceeds from crop insurance indemnity checks and fraudulent crop sales to make at least 21 bank transactions, in violation of federal money laundering statutes.  He is also alleged to have withdrawn $9,500 in cash from his bank accounts, on four consecutive days, in an effort to avoid federal bank reporting requirements.”

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Companies Call on Congress to Change Tax Provision

DTN Ag Policy Editor Chris Clayton reported today that, “The two largest general farm organizations have a different take on what should happen with the Section 199A tax provision, but 77 separate businesses in 28 states also have written a letter to Congress calling on lawmakers to fix the problems created by the ‘grain glitch.’

“The letter includes companies as small as a local grain elevator on up to grain-trading giants such as Archer Daniels Midlands Co., Bunge North America, Cargill Inc., Tyson Foods and even Anheuser-Busch.

“The companies, writing to the four main leaders in the House and Senate, stated, ‘We are concerned that language in the Tax Cuts and Jobs Act has fundamentally disrupted the agricultural economy by giving farmers, ranchers and dairy producers a substantial tax incentive not to sell their products to thousands of independent companies across the American heartland.'”

The DTN article noted, “Further, the businesses stated that if the Section 199A provision is not changed, ‘countless businesses — including thousands of small, family-owned independent companies — will be forced into costly restructuring, selling to rivals or going out of business. This will not only destroy homegrown jobs and rural economies, but it will also disrupt the supply chain for agricultural products and destabilize the market for everything from milk and grain to meat and poultry.’

“The agribusinesses made it clear they support the language change in the tax code backed by farmer cooperatives and businesses that would provide farmers with a deduction similar to what they received under the old Section 199.”

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2017 Honey Production in the United States

A report yesterday from USDA’s National Agricultural Statistics Service (NASS) stated that, “United States honey production in 2017 from producers with five or more colonies totaled 148 million pounds, down 9 percent from 2016. There were 2.67 million colonies producing honey in 2017, down 4 percent from 2016. Yield per colony averaged 55.3 pounds, down 5 percent from the 58.3 pounds in 2016.”

The NASS report added that, “United States honey prices increased 2 percent during 2017 to 215.6 cents per pound, compared to 211.9 cents per pound in 2016. United States and State level prices reflect the portions of honey sold through cooperatives, private, and retail channels.”

Meanwhile, a NASS update from North Dakota yesterday stated that, “Honey production in 2017 from North Dakota producers with five or more colonies totaled 33.7 million pounds, down 11% from 2016; North Dakota ranked first in the nation for honey production for the fourteenth consecutive year.”

And a NASS update yesterday from South Dakota indicated that, “Honey production in 2017 from South Dakota producers with five or more colonies totaled 14.5 million pounds, down 27% from 2016; South Dakota ranked second in the nation for honey production, behind North Dakota.”

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Some Wisconsin Beekeepers are Reporting High Losses of Bees This Winter

The Associated Press reported last week that, “Some Wisconsin beekeepers are reporting high losses of bees this winter because of a parasite that infests hives and kills developing bees.

“Kent Pegorsch, president of the Wisconsin Honey Producers Association, told Wisconsin Public Radio that beekeepers had difficulty controlling varroa mites last year.

“Beekeepers have been losing about half of their hives over the winter for the last five to 10 years, said Liz Meils, the state apiarist for the state Department of Agriculture, Trade and Consumer Protection.”

The AP article stated that, “‘It’s definitely significant and not really sustainable,’ Meils said. ‘The general consensus among beekeepers is that acceptable winter losses should be around 12 percent, up to 20 percent.’

“Producers can try to prevent loses by having their hives inspected and treated for mites, Meils said. The state has two inspectors from May to October who can inspect hives and give treatment advice, she said.”

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Lawmakers Find Fix to Unintended “Grain Glitch” in Tax Reform Measure

Jacob Bunge reported today at The Wall Street Journal Online that, “Lawmakers and agricultural companies say they have found a fix for a provision in the new U.S. tax law that stirred controversy in the Farm Belt.

“The amendment to the tax law, which legislators aim to include in an omnibus spending bill later this month, would change a provision that provided farmers with larger tax savings if they sold crops to agricultural cooperatives. Private and investor-owned grain companies feared the provision put them at a disadvantage, potentially forcing them to pay more to secure crop supplies—or form their own cooperatives.

“Agriculture trade groups on Tuesday backed a proposed change that they said would preserve tax benefits for farmers while restoring competitive balance in the industry. Farm-state senators, including Chuck Grassley (R., Iowa) and Pat Roberts (R., Kan.), said they aimed to get the proposal signed as soon as possible.”

Mr. Bunge noted that, “The ‘grain glitch,’ as some agriculture officials termed it, is one of the bigger and most glaring unintended consequences of the tax law passed in December. The law allows farmers to deduct up to 20% of their gross sales to cooperatives, versus 20% of their net income from other sales—a shift that accountants said would translate to a far larger deduction for farmers selling to cooperatives. In some cases, farmers could have wiped out their entire taxable income.

“The new proposal would allow farmers to deduct 20% of their net income from sales to cooperatives where they members, subject to certain thresholds and modifications. The new deduction would be limited to 20% of farmers’ taxable income, excluding capital gains, and would let farmers claim a pass-through deduction from agricultural cooperatives where they are members.”

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USDA Decides Not to Impose Additional Regulatory Requirements for Organic Producers and Handlers

A news release yesterday from USDA stated that, “The U.S. Department of Agriculture (USDA) today announced the decision to withdraw the Organic Livestock and Poultry Practices (OLPP) final rule published on January 19, 2017. The rule would have increased federal regulation of livestock and poultry for certified organic producers and handlers. The withdrawal becomes effective May 13, 2018.

“Significant policy and legal issues were identified after the rule published in January 2017. After careful review and two rounds of public comment, USDA has determined that the rule exceeds the Department’s statutory authority, and that the changes to the existing organic regulations could have a negative effect on voluntary participation in the National Organic Program, including real costs for producers and consumers.

“‘The existing robust organic livestock and poultry regulations are effective,’ said USDA Marketing and Regulatory Program Undersecretary Greg Ibach. ‘The organic industry’s continued growth domestically and globally shows that consumers trust the current approach that balances consumer expectations and the needs of organic producers and handlers.'”

The release added that, “According to USDA reports for 2017, the number of certified organic operations increased domestically by seven percent and globally by 11 percent. Industry estimates show that organic sales in the United States reached almost $47 billion in 2016, reflecting an increase of almost $3.7 billion since 2015.”

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Settlement Reached In Syngenta Modified Corn Seed Lawsuit

Associated Press writer Margaret Stafford reported today that, “A $1.5 billion settlement was reached Monday in a class-action lawsuit covering tens of thousands of farmers, grain-handling facilities and ethanol plants that sued Swiss agribusiness giant Syngenta over its introduction of a genetically engineered corn seed.

“Lawsuits in state and federal courts challenged Syngenta’s decision to introduce its modified Viptera and Duracade corn seed strains to the U.S. market for the 2011 growing season before having approval for import by China in 2014. The plaintiffs said Syngenta’s decision cut off access to the large Chinese corn market and caused price drops for several years.

“The settlement, which must be approved by a federal judge in Kansas, will create a fund to pay claims by farmers and others who contracted to price corn or corn byproducts after Sept. 15, 2013. If the settlement is approved, money could be distributed to class members in the first half of 2019.”

The AP article noted that, “Four lawyers who led the litigation for corn producers said in a joint statement Monday that the settlement is believed to be the largest agricultural litigation settlement in U.S. history.”

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Dwolla to Host Event on Funding Startup Businesses in the Midwest

Kevin Hardy reported earlier this month at The Des Moines Register Online that, “Dwolla will host an event March 20 to discuss funding sources for Iowa startup companies.

“The event, called Monetery, will broadly focus on ‘building value,’ with specific emphasis on securing investments for new businesses.

“‘The reason we’ve focused so heavily on investors is that it’s clear that the Midwest has some really meaningful divides between Seed to IPO support. While it’s been done, it’s incredibly rare,’ Dwolla founder and CEO Ben Milne wrote on the company blog. ‘As various Midwest ecosystems are getting built, we are excited to hear from people who have built strong ecosystems in their city in the past, or are currently doing so.'”

The article noted that, “Moderators include Debi Durham, director of the Iowa Economic Development Authority; Brian Waller, president of the Technology Association of Iowa; Danny Schreiber, marketing director at Zapier; and Lynn Hicks, opinion editor at the Des Moines Register.

“The event is limited to 200 people. Tickets are available on Dwolla’s website.”

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Debate Over CAFOs Continues to Play Out in Iowa

Donnelle Eller reported last week at The Des Moines Register Online that, “Trent Thiele loves feeding and caring for the 3,400 pigs that live less than a half mile from his home.

“‘I truly enjoy coming to work every morning. They’re always in a good mood,’ said Thiele, reaching down to scratch the backs of a few pigs inside the confined feeding operation.

“Without the northeast Iowa business, Thiele said he would be forced to move to a city or town to support his wife and their five children, a common tale in a state that’s seen rural jobs and opportunity drain away over several decades.”

The Register article stated that, “That’s why Thiele, 35, doesn’t understand calls for a moratorium on concentrated animal feeding operations.’I don’t know why we’d want to limit future generations,’ Thiele said, adding that farmers need the fertilizer.

“The clamor over confinements has grown louder after one expert estimated Iowa could support 45,700 CAFOs, four times more facilities for pigs, cattle and chickens than currently exist in the state.

“Skirmishes between CAFOs and their neighbors have played out across Iowa for at least three decades. In that time, the number of pigs has grown about 60 percent in the nation’s largest pork-producing state as farmers have shifted from smaller to bigger operations.”

Ms. Eller explained that, “Then last summer, a state report revealed satellite imagery had detected 5,000 more confinements than regulators previously knew about, nearly doubling earlier counts and outraging critics.”

Last week’s article added that, “This year, U.S. hog production is forecast to grow 4 percent, but expansion in Iowa is likely to be even stronger, said Dermot Hayes, an Iowa State University economics professor.

“Few places are better suited for pork production: Iowa, the nation’s top corn producer, has ample feed, 30 million acres of crops that can use fertilizer that CAFOs create, and a growing number of meatpacking plants to process the animals.”

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