“VegU-cation” Can Grow Farmers Markets

An update posted this week at the USDA Blog indicated that, “Everyday USDA works to develop tools for farmers and ranchers that support their financial success. The USDA Farmers Market on the National Mall is a ‘living laboratory’ for farmers market operations across the country. During our 2017 market season, we tested ‘VegU-cation’ and found that this fruit and vegetable education program was popular with our visitors and increased sales for our farmers. Visitors to our market attended a 10-minute demonstration class in the VegU tent, on how to grow, pick, and prepare that week’s featured fruit or vegetable.

Here are five tips to help you bring ‘VegU-cation‘ to your market:

“1. Use Simple and Creative Recipes

2. Showcase Variety to Create Interest

3. Provide Free Samples

4. Share How Things Grow

5. Don’t Be Afraid of Challenges”

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Spring Home Sales Could Weaken

Laura Kusisto reported earlier this week at The Wall Street Journal Online that, “The economy is booming, take-home pay is rising and millennials are getting married and having children. Despite all those homebuying catalysts, real-estate agents said this could be one of the weakest spring selling seasons in recent years.

“The culprits: rising mortgage rates, a new tax law that reduces the incentives for homeownership and a growing weariness among first-time buyers being priced out of the market—all of which are expected to damp demand for homes this year.

“The next few months are a critical test of the housing market, as buyers look to get into contract before summer vacations and the new school year. About 40% of the year’s sales take place from March through June, according to the National Association of Realtors.”

The Journal article noted that, “Consumer confidence in the housing market fell in February, according to data released Wednesday by mortgage company Fannie Mae . The share of respondents who said now is a good time to buy a home decreased 5 percentage points from January, due to concerns about stock market volatility and rising mortgage rates.

“In January, existing home sales suffered their sharpest annual drop in three years, falling 4.8% from a year earlier to a seasonally adjusted annual rate of 5.38 million, according to the National Association of Realtors.”

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General Mills Deals to Secure Organic Ingredient Supply

Associated Press writer Steve Karnowski reported earlier this week that, “General Mills announced a deal Tuesday to create South Dakota’s largest organic crop farm as the food giant works to secure enough organic ingredients to meet growing consumer demand worldwide.

“Gunsmoke Farms will convert 34,000 acres — more than 53 square miles — near Pierre to organic by 2020, giving it enough space for all the organic wheat needed to make General Mills’ popular Annie’s Macaroni & Cheese line.

“General Mills, which is guaranteeing a market for the wheat, is working with Madison, Wisconsin-based Midwestern BioAg to develop the crop rotation and soil-building program needed for such a large farm to go organic.”

Mr. Karnowski noted that, “Golden Valley, Minnesota-based General Mills, like many other food companies, has ambitious environmental goals, and like other big industry players it has bought smaller brands and tweaked its own products to appeal to consumers who want more organic and natural products. It wants to double its organic acreage by 2020 and to cut greenhouse gas emissions 28 percent by 2025 throughout its supply chain all the way down to consumers, because it believes climate change will be bad for business. The company’s chief sustainability officer, Jerry Lynch, said it’s on pace to meet its organic acreage goal well ahead of schedule.”

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Carve-Out for Farm Co-ops in Tax Reform Measure

The Wall Street Journal editorial board indicated late last month that, “One risk for the political success of the GOP tax reform is that some businesses will manipulate a large new deduction that could reduce federal revenue and discredit the project. An early warning is a carve-out that benefits some farmers, a clunker that ought to be corrected.

“The new tax law allows a larger deduction for farmers selling to farm cooperatives versus other operators. The practical effect is a tax advantage for selling to cooperatives, which has no economic rationale. Some farmers could use the loophole to zero out their taxable income.

“The tax bill is a plus for simplification overall, both on the individual and corporate side. But the farm co-op loophole exploits an exception that created a large deduction for businesses organized as ‘pass-throughs.’ The new section allows filers to deduct 20% of qualified business income. But some filers can deduct 20% of qualified co-op dividends, which is broader. The ostensible point was to preserve preferences for co-ops in the old code.”

The Journal noted that, “The co-op provision’s authors, Senators John Hoeven and John Thune of North and South Dakota, respectively, have said the dispensation should be fixed, though the question is how. Scott Greenberg of the Tax Foundation laid out some possible fixes, and the best route would be to dump the separate co-op deduction altogether.”

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Among Farmers, NAFTA Uncertainty Looms

A news release yesterday from Purdue University stated that, “Producer sentiment increased for the second straight month in February, but producers continued to indicate uncertainty surrounding a possible U.S. withdrawal from the North American Free Trade Agreement (NAFTA), according to the Purdue University/CME Group Ag Economy Barometer.

“The barometer read 140 in February, a 5-point increase from January’s reading of 135. The increases mark a strong 14-point jump since December. February also marked the second-highest barometer reading since data collection began in 2015.

“The barometer is based on a monthly survey of 400 U.S. agricultural producers.”

The release added that, “February’s survey asked producers about their expectations for corn and soybean production in the 2018 cropping year. A majority – 71 percent – said soybeans would be more profitable than corn, up 4 percent from the number of respondents who expected soybeans to be more profitable when surveyed in February 2017.

“Despite expectations that soybeans will be more profitable, 81 percent of those surveyed said they expect their soybean acreage in 2018 will be unchanged. Only 10 percent expect to plant more soybeans than a year earlier. This differs from the February 2017 survey, when 18 percent of producers reported they expected to increase their soybean acreage.”

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Iowa: Bill Requiring Sale of Conventional Eggs Goes to Governor

William Petroski reported earlier this week at The Des Moines Register Online that, “The Iowa Senate gave final passage Monday to a controversial bill requiring Iowa grocers in a supplemental food program to offer conventional eggs if they sell eggs from chickens housed in a cage-free, free-range or enriched colony cage environment.

“House File 2408 was approved 32-17, sending it to Republican Gov. Kim Reynolds for her consideration. It was approved in the House last week on an 81-17 vote.

“Sen. Herman Quirmbach, D-Ames, opposed the bill, complaining that it’s clearly contrary to free enterprise, anti-regulation policies espoused by Republicans. ‘This is really direct interference in the marketplace,’ he said.”

The Register article stated that, “But Sen. Dan Zumbach, R-Ryan, who farms in northeast Iowa, lauded the legislation for assuring that a low-cost choice for protein is available when many low-income Iowans head to the grocery store. Free-range or cage-free eggs are typically more expensive than conventional eggs from large farming operations.

“‘This bill is a home-run, game-winning bill,’ Zumbach remarked.

“The legislation would apply to grocers participating as a vendors in the special supplemental food program for Women, Infants, and Children, known as WIC. The program is administered by the U.S. Department of Agriculture in cooperation with state officials, and the bill would allow state officials to seek a federal waiver if necessary.”

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Startup Has Plan to Sell Annuities

Bloomberg writer Suzanne Woolley reported earlier this month that, “[Matt Carey] and two co-founders are building a way for consumers to more easily buy what has notoriously been a hard sell: annuity contracts, both those that create an immediate income stream and others that produce income years down the road. The idea was inspired in part by the research of Olivia Mitchell, a professor and retirement security expert at the Wharton School of the University of Pennsylvania.

“One of Blueprint’s innovations involves how deferred-income annuities are sold. They typically require five- or six-digit sums in return for a future stream that, should someone die prematurely, may never be used. Carey’s website spits out a quote for a contract in 60 seconds and requires an initial investment of $5,000.

“The real twist is part of a trend that’s swept industries from mattresses to clothing to movies: subscription-based business models. After the initial investment, buyers can increase their retirement income stream with deposits of as little as $100 a month to create what Blueprint calls ‘a personal pension.'”

The article noted that, “New York Life Insurance Co. and Guardian Life Insurance Co. are Blueprint’s current partners in the subscription service. New York-based Blueprint, which acts as a fiduciary, gets a one-time commission of 1% to 4% of the initial investment when it sells immediate, deferred and qualified-longevity annuity contracts, or QLACs. (A QLAC is an annuity funded by money from a qualified retirement plan or an IRA.) For the subscription product, the commission is split into two payments over two years.

“Blueprint just announced seed funding of $2.75 million from a group including Green Visor Capital, where former Visa Chief Executive Joseph Saunders is a general partner, and NextView Ventures, where Lee Hower, an early PayPal employee and member of the founding team at LinkedIn, is a partner. The board of advisors includes [Mark Iwry, a key architect of retirement policy in the Obama administration], who isn’t an investor, and Jean Chatzky, personal finance editor of the ‘Today’ show, who has invested.”

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Rabobank- Growing Ideas: How to start up in Agrifood

A column today from Rabobank, by Martijn Rol, stated that, “Consumers are showing increasing interest in sustainable and healthy food. No wonder that start-ups see opportunities in this area. But, warns Martijn Rol, it takes a lot more than an appealing product to be successful.

“Martijn Rol is Sector Specialist Food at Rabobank. He has seen huge growth in sustainable niche sectors recently. ‘Every week we are approached by new entrepreneurs wanting to make products healthier and more sustainable, and by others who want to reduce waste and food loss.'”

The column explained that, “The biggest pitfall is growing too fast. It can be an incredibly powerful impetus if a supermarket with 300 branches wants to sell your product. But if the product is unpopular, it will be taken off the shelves just as quickly. Over-dependence on one party can prove disastrous. That’s why I recommend first building the brand among a sufficiently diverse customer base.

“A start-up needs to be stable before it can start to scale up. It’s a tricky balancing act – not being too dependent on one client while also needing that client to grow. On the other hand, that makes it exciting. In fact, it is often the reason people choose to go into business in the first place, to test where risk and reward meet.”

Today’s Rabobank item also indicated that, “Start with crowd funding and business angels. They won’t just help financially, they’ll also promote the product. Then build up sales through local cafés and specialty shops. Once a brand is strong enough, it can be a good idea to open a shop or hospitality concept to enhance product experience for consumers. Finally, when your cash flow is stable, you can increase production to national coverage in supermarkets, or even start cross-border trading.”

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Challenge to Iowa “Ag Gag” Law Moves Forward

Des Moines Register writer Donnelle Eller reported earlier this week that, “Groups challenging the constitutionality of Iowa’s so-called ‘ag gag’ law said they received an important legal green light this week with a U.S. district court ruling that lets the lawsuit proceed.

“A federal judge Tuesday denied Iowa’s motion to dismiss a lawsuit that claims the state’s ag gag law violates the First Amendment, protecting freedom of speech.

“A coalition of public interest groups challenging the law called the ruling a big win.”

The Register article noted that, “The ag gag law ‘clearly is a violation of Iowans’ First Amendment rights to free speech,’ said Rita Bettis, ACLU of Iowa’s legal director. ‘It has effectively silenced advocates and ensured that animal cruelty, unsafe food safety practices, environmental hazards and inhumane working conditions go unreported for years.’

“The 2012 Agricultural Production Facility Fraud law makes it a crime for journalists and advocacy groups to go undercover at meatpacking plants, livestock confinements, puppy mills and other ag-related operations to investigate working conditions, animal welfare, food safety and environmental hazards, among other practices.

“Eric Tabor, Iowa’s chief deputy attorney general, said it’s early in the case’s litigation and declined to comment further.”

The Register article added that, “Ron Birkenholz, a spokesman for the Iowa Pork Producers Association, said the law was drafted to ‘provide meaningful protection to farmers’ while ‘respecting and protecting all citizens’ constitutional rights.’

“Senior U.S. District Court Judge James E. Gritzner dismissed the coalition’s claim that the law violated their rights to equal protection under the 14th Amendment, but he allowed their First Amendment challenges to stand.”

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Judge Rejects Challenge to Trump’s ‘Two-For-One’ Regulatory Rule

An update on Wednesday from DTN reported that, “A federal judge has rejected a court challenge to the executive order issued by President Donald Trump requiring agencies to cut or revise two regulations for every new regulation written. Federal District Judge Randolph Moss said the groups ‘fail to allege facts sufficient to show that the relevant agency would have issued the rule absent the Executive Order.’

“And in other cases, they don’t show that any delay from Trump order would ‘substantially increase’ the risk of harm. Public Citizen, the Natural Resources Defense Council and Communication Workers of America brought the suit. But Moss left the door open to future legal challenges. ‘This is not to say that a plaintiff—or, indeed, that the present plaintiffs—will never be able to establish standing to challenge the Executive Order,’ he wrote. ‘On the present record, however, the Court must conclude that it lacks jurisdiction.”

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