Crop Pro Insurance– Receives USDA Approval to Provide Federal Crop Insurance

A news release yesterday from Crop Pro Insurance stated that, “Crop Pro Insurance, a new managing general agent (MGA) specializing in crop insurance, recently received Standard Reinsurance Agreement (SRA) approval as an MGA for an ‘A’ rated insurance company from the United States Department of Agriculture (USDA). The approval makes Crop Pro Insurance one of only 16 companies in the world eligible to participate in the Federal Crop Insurance Program.

“The SRA status is one step in the company’s overall strategic vision to provide risk management solutions for both traditional and emerging agriculture markets.”

The release noted that, “The agriculture industry is already working to address consumer demands for non-GMO food and to develop sustainable growing practices that U.S growers are having difficulty meeting and implementing. New technologies are improving non-GMO yields, but non-GMO crop production is not widely practiced by growers due to the perceived risk involved with forgoing more traditional growing practices.”

“Crop Pro Insurance is in a unique position to alleviate risk and accelerate adoption of emerging technologies with progressive private insurance policies designed to increase yields and maximize premiums for growers,” the release said.

Yesterday’s update added that, “Crop Pro Insurance will focus its initial efforts on 13 core Midwestern states. Working with its select network of agents, the company will begin offering differentiated market solutions for the 2018 spring growing season. The company views the agents as vital partners in advancing the agriculture industry as opposed to a delivery system for its products.”

And, a separate Crop Pro update from yesterday noted that, “Crop Pro Insurance, an insurance and technology firm dedicated to helping farmers manage risk and maximize profitability, today announced the close of an $8 million Series A round of financing co-led by top agriculture investors Finistere Ventures and Seed 2 Growth Ventures (S2G). Established insurance provider GuideOne Insurance also joined the round.

“Headquartered in the heart of Midwest farmlands in Des Moines, Iowa, Crop Pro will use the investment to expand its team and speed the development of products and services that bridge the gap between agricultural and financial technologies.”
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Congressional Tax Reform- Some Priorities for Agriculture

A news update yesterday from the American Farm Bureau Federation (AFBF) indicated that, “A joint statement on tax reform released recently by Republican congressional leaders and administration officials signals that lawmakers plan to make good on their promise to overhaul the tax code as soon as this fall.”

The update explained that, “Among farmers’ and ranchers’ top priorities are comprehensive tax reform that helps all farm and ranch businesses; the reduction of combined income and self-employment tax rates to account for any deductions or credits lost; and cost-recovery tools like allowing businesses to deduct expenses when incurred; and a continuation of cash accounting, Section 1031 ‘like-kind exchanges,’ and the deduction for state and local taxes.

“The repeal of estate taxes and the continuation of stepped-up basis, along with reduced capital gains taxes, are important as well.”

Yesterday’s AFBF release added that, “The group of congressional leaders and administration officials who released the joint statement on tax reform includes House Speaker Paul Ryan (R-Wis.), Senate Majority Leader Mitch McConnell (R-Ky.), Treasury Secretary Steven Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Committee Chairman Orrin Hatch (R-Utah) and House Ways and Means Committee Chairman Kevin Brady (R-Texas).”

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In Wisconsin, Dairy Group Files Lawsuit Over New Regulations

Rick Barrett reported on Friday at the Milwaukee Journal Sentinel Online that, “A farm group that represents some of Wisconsin’s largest dairy operations has sued the state Department of Natural Resources, saying the agency has overreached its authority on key regulations.

“The lawsuit filed in Brown County Circuit Court by the Dairy Business Association, of Green Bay, centers on how the DNR implements new regulations as some dairy farms now have thousands of cows in confined animal feeding operations, known as CAFOs.

“The lawsuit cites an example of rules regarding the management of rainwater that comes into contact with feed storage or calf hutch areas.”

Mr. Barrett noted that, “For years, the Dairy Business Association said, the DNR encouraged farmers to create areas filled with plants, known as vegetative treatment areas, where the rainwater was naturally absorbed and processed by the vegetation.

“Then in 2016, the association said, the agency began requiring farmers to collect the water and add it to manure pits for spreading on fields.

“The lawsuit alleges the change circumvented Wisconsin law, which requires agencies to follow a specific method of rule-making.”

The Journal Sentinel article added that, “The Dairy Business Association said the agency’s reversal on vegetative treatment areas has caused farmers to spend millions of dollars on manure storage lagoons, which could actually increase the risk of pollution.”

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“Waters of the U.S.” Rule, Public Comments Exceed 11,000

DTN writer Todd Neeley reported on Friday that, “The U.S. Environmental Protection Agency has yet to decide whether to grant a request by a number of Democratic senators to extend by 90 days the public comment period on a proposed rollback of the waters of the United States, or WOTUS, rule, an agency spokesperson told DTN on Friday.

“In a July 17, 2017, letter to EPA Administrator Scott Pruitt and Douglas Lamont, deputy assistant secretary of the U.S. Army Corps of Engineers, a group of 22 senators asked the agencies to extend the comment period.”

Mr. Neeley explained that, “As of Friday, EPA had received more than 11,000 public comments ahead of the Aug. 28 deadline on a proposal to reset the clean water rule back to pre-2015 language — prior to the final WOTUS rule. Of those comments, just 330 have been posted to regulations.gov. Most of those are anonymous and so far just one agriculture group’s comments have been posted.

“The agency announced it would attempt to better define ‘navigable waters’ in what is expected to be a two-part effort. The current proposal would revert the rule back to pre-2015, before the EPA finalized the WOTUS rule.

“The second part of the agency’s plan includes then re-writing the rule. As part of that effort, the agency already has reached out to governors in all 50 states to seek input.”

The DTN article added that, “Interestingly, the senators asked the agency to extend the comment period by 90 days as it did for the 2015 WOTUS rule, although the current proposal essentially changes nothing in terms of how the Clean Water Act currently is enforced. The WOTUS rule is on a stay nationally, pending lawsuits. This means enforcement of the CWA already has reverted back to the pre-2015 regulation.”

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Resurfaced Reports of Dicamba Damage in Missouri

Since mid-July, Missouri farmers have resumed spraying dicamba after a temporary ban on the controversial weedkiller was lifted by the state Department of Agriculture. Now, some farmers are reporting that damage to sensitive crops is reappearing — a lag time that suggests the injury occurred soon after the ban ended.

“Tom Burnham, a Blytheville, Ark., grower who farms thousands of acres in Arkansas and across the state line in Missouri, says that ‘every acre’ of his Missouri soybeans is showing symptoms of damage incurred since that time. He blames the recent applications of the herbicide, which can be prone to vaporizing — or volatilizing — and drifting off-target.

“‘We’re just now seeing the fallout,’ said Burnham on Tuesday, noting that signs of damage, such as cupped leaves, take a week or two to emerge. ‘This has raised its head again in the last three days.'”

Mr. Gray noted that, “In comparison, Burnham says the bulk of his acreage in Arkansas — where a similar dicamba ban remains in place — has been spared the same recent damage, with some fields near the state border standing as an exception.

“In places, he says his injured crops are ‘at least a mile away’ from the nearest possible point source of dicamba. To him, that distance helps underscore that newly approved forms of the herbicide can’t be safely used alongside farmers whose crops aren’t genetically modified to tolerate the chemical.”

The Post-Dispatch article added that, “Representatives from both Monsanto and BASF said the companies continue their own investigations into reported damage attributed to their new dicamba formulations. Officials at Monsanto and throughout the industry ‘absolutely continue to stand by the technology,’ suggesting that this year’s complaints may result from illegal use of unapproved, more volatile forms of dicamba or lack of compliance with proper spray procedures.

“Those claims, however, are challenged not only by farmers such as Burnham but by a growing chorus of experts at universities and extension offices who have levied harsh criticism toward the agricultural industry for what they say is a failure to acknowledge an obvious problem of off-target dicamba movement.”

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Mortgage Lenders Make Changes to Encourage Home Ownership

Andrew Khouri reported on Friday at the Los Angeles Times Online that, “Home prices are rising across the country and mortgage rates, though still historically low, are up since the presidential election.

“Simply put, buying a home isn’t easy, especially in high-cost metropolitan areas such as Los Angeles County, where the median price of a home hit $569,000 in June.

“But changes in the mortgage industry are afoot, with the goal of loosening some of the strict standards established after the subprime crisis — rules some blame for impeding sales.”

The article noted that, “Government-controlled mortgage giants Fannie Mae and Freddie Mac are paving the way by rolling out new programs to encourage home ownership.

“The companies, with their congressional mandate to promote home ownership, don’t originate loans, but purchase mortgages from lenders to keep the market moving. And any changes they make in the underwriting standards for the loans they buy can have a big effect.

“Also, lenders are moving to relax some standards partly because they fear losing business as home prices and mortgage rates rise, said Guy Cecala, publisher of Inside Mortgage Finance.”

The Los Angeles Times update also pointed out that, “The changes bring lending nowhere near the easy-money bonanza of last decade, which ended in financial crisis. But they have brought criticism from some corners that liberalizing rules for down payments and how much debt a borrower can have is a slippery slope that could eventually lead to another bubble.”

More specifically, Mr. Khouri explained that, “With the exploding cost of higher education causing some students to borrow more than $100,000, several changes are directly targeting young home buyers typically burdened with hundreds, if not thousands, of dollars in monthly student-loan payments.

“Among Fannie Mae’s changes:

  • If a borrower has some student loans or other non-mortgage debt paid by parents or others, those payments will no longer count toward their debt-to-income ratio.
  • Once a borrower becomes a homeowner, Fannie will allow them to qualify for a cheaper cash-out refinance if they use it to pay off their high-interest student loans.
  • If a student loan borrower is enrolled in an income-based repayment plan, the lower monthly payment can be used when calculating a debt-to-income ratio. Before, lenders often had to use 1% of the outstanding student loan balance as the monthly payment.”
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Anchor Brewing Sold to Japan’s Sapporo Holdings Ltd.

Rachel Spacek reported on the front page of the business section in today’s Los Angeles Times that, “Anchor Brewing has been a San Francisco staple since 1896, surviving earthquakes, prohibition and tech booms and busts. But on Thursday, the brewer announced it will be a San Francisco company no longer after a sale to Japan’s Sapporo Holdings Ltd.

“Exact terms of the deal were not disclosed, but a spokesman for Sapporo said the price was approximately $85 million.”

The LA Times article stated that, “The deal marks the latest California brewery to be acquired by a larger beer maker. It comes amid rising competition among craft breweries — a sector of the beer industry that Anchor has been credited, by some, for helping inspire.”

Ms. Spacek noted that, “Sapporo is the latest big brewer to purchase a California craft brewery. Earlier this year, Heineken completed its acquisition of Petaluma’s Lagunitas Brewing Co. In 2015, Constellation Brands, the company behind Corona, acquired San Diego’s Ballast Point Brewing and Spirits for $1 billion.

“‘As the market has slowed and has become more competitive, breweries are looking for partners or complete acquisitions,’ said Bart Watson, chief economist with the Brewers Assn.”

The LA Times article added that, “Unlike Lagunitas and Ballast Point, which were founded in the 1990s and rose to prominence with their hoppy ales, Anchor is a century older and most famous for its Gold Rush-era steam-style beer, Anchor Steam.

“Yet long before those younger breweries found success, breweries like Anchor and Sierra Nevada Brewing Co. helped prove that a small brewer making flavorful ales could compete in a market dominated for decades by mass-produced light lagers.”

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Indiana Food Summit Set for Sept. 25-26

A recent news update from Purdue University indicated that, “Purdue Extension, in cooperation with a number of partner organizations, will host the second annual Indiana Food Summit, Sept. 25-26 at Indiana University-Purdue University Indianapolis.

“The summit provides learning, networking and sharing opportunities for anyone who works in the food system, from business people to elected officials, said Jodee Ellett, Purdue Extension local foods coordinator and event organizer.

“‘We hope participants will not only take away new tools, but also be inspired to implement innovative new strategies in their communities,’ she said.”

The news update noted that, “‘Re-localizing food systems takes a lot of time in building networks and relationships,’ Ellett said. ‘We have created an entire day of professional development workshops and will also have regional networking luncheons so you can meet people from your area you might not know.'”

The news update also included the following details:

“The Sept. 26 program will include multiple concurrent sessions with speakers and panels focusing on food policy, healthy food access, farm to school and food business.

“The summit concludes with a vendors fair offering appetizers, a cash bar and networking opportunities.

“Registration for the 2017 Indiana Food Summit is now open. For more information about registration or sponsorship opportunities, go to https://www.purdue.edu/dffs/localfood/infoodsummit/.

“The summit runs 9 a.m. to 5 p.m. Sept. 25, and 9 a.m. to 4 p.m. Sept. 26, with the vendors fair from 4:30-7:30 p.m. Sept. 26, at IUPUI’s Hine Hall and University Tower, 875 W. North St., Indianapolis.”

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Consumers Want to Know Where Their Food Comes From, Colorado Ag Attempts to Shape Perceptions

Erin Douglas reported yesterday at the Denver Post Online that, “Coloradans want to know where their food comes from – and they want it to come from nearby family farms – but finding out is harder than it should be, say farmers and agricultural industry leaders.

“Younger generations are leading the charge on demanding locally sourced food. They’re starting farm-to-table restaurants, making farmers markets trendy and paying a premium for locally sourced food. But getting the most accurate message out to consumers about where their food comes from and how it is grown is easier said than done.

“As part of Colorado Proud month – as proclaimed by Gov. John Hickenlooper and celebrated with a campaign theme each year – partners in Colorado’s agricultural industry will tour the state this month to show the faces of agriculture.”

Yesterday’s article noted that, “The Colorado Proud program provides a guarantee to consumers that their food was grown, raised or processed in the state. The program started in 1999, but its purple-and-yellow mountain symbol is becoming more powerful. This year’s Colorado Proud survey results suggested that consumers want to ‘feel more connected’ to farmers and food sources.”

The Denver Post article added that, “Petrocco Farms’ Kate Petrocco, whose land spans 3,000 acres from Brighton to north of Greeley, said that consumers don’t necessarily understand how their food is produced. She said people ask her whether Petrocco Farms is a ‘real farm.’ With more than 100 employees and distribution to grocery stores, the operation disrupts perceptions of a traditional family farm, even though it would be impossible to compete otherwise.

‘”There’s a disconnect,’ Petrocco said. ‘If you buy from a grocery store, people think that it’s not from a family farm.'”

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ISU Extension: The Importance of Business Succession for Rural Communities

An update last month from Iowa State University (ISU) Extension noted that, “It happens in small towns across Iowa and the country. A long-time business must close its doors because it has no successor, leaving a community with the empty storefront of a shop that once offered a product or service, jobs and philanthropic support.

“The vitality of rural economies depends as much on maintaining these existing businesses as attracting new ones, said Iowa State University economic and small business experts. Even though resources are available to assist with business succession, several factors can complicate plans to sell or pass on the business to an heir. In rural communities, location and declining population are obstacles.”

The update explained that, “[Georgeanne Artz, an assistant professor of economics] has studied differences between rural and urban entrepreneurs to understand how location affects business creation, succession and income. There is a perception that urban areas are better for business, but Artz’s research shows that is not always the case. After controlling for factors such as education and cost of living, she found relatively little difference in pay and an advantage for rural entrepreneurs who have location-specific capital.”

Last month’s update also stated that, “Nearly 70 percent of family businesses do not have a succession plan, according to Iowa SBDC’s 2017 State of Small Business and Entrepreneurship. The average business owner in Iowa is 50 years old and more than 14,000 business owners are 70 or older. [Lisa Shimkat, state director for Iowa SBDC, which is part of ISU’s College of Business] says these numbers not only highlight the opportunity for young entrepreneurs, but the potential impact if a majority of these small businesses would close.”

The ISU update added that, “Succession is a difficult and emotional issue for many business owners to address. Shimkat says some owners feel that developing a plan in advance is too final. However, life circumstances can change unexpectedly, which is why Shimkat encourages business owners to start thinking about an exit strategy the day they open their doors. Doing so will benefit the business and the community.”

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