Issuu

WINTER 2 0 1 7

Time to

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Farm Bureau Priorities in the Legislature

DaltonAg.com 800.342.7498 Arkansas Agriculture | 100% Employee Owned ARKANSAS FARM BUREAU â€¢ WINTER 2017

Arkansas Agriculture

ARKANSAS FARM BUREAU â€¢ WINTER 2017

FEATURES Time to Get Involved Michelle Kitchens | Page 6

COLUMNS

Farm Bureau Perspective Randy Veach | Page 3

Faces of Agriculture

Gregg Patterson | Page 16

Agriculture News

Rob Anderson | Page 20

Policy Update Brandy Carroll | Page 24

Rural Reflections

Page 26

WI NTER 2017

Time to

Get

Involved

Farm Bureau Priorities in the Legislature

ON THE COVER It’s time to get involved in the issues important to agriculture. An empty Arkansas House chamber awaits the hustle, bustle and excitement of the day’s work as part of the 91st Legislative Assembly. Photo by Keith Sutton

WINTER 2017

Edition 44

Farm Bureau Perspective by Randy Veach | President, Arkansas Farm Bureau Federation

Sunny Days Ahead for Agriculture New Secretary of Ag well grounded in the needs of southern farmers and ranchers

he nomination, and expected confirmation, of former Georgia Gov. Sonny Perdue as the next USDA Secretary of Agriculture should be celebrated by those involved in agriculture. I would suggest that Gov. Perdue is one of the most qualified people ever to be nominated as Secretary of Agriculture. Gov. Perdue served two terms (2003-2011) as Georgia’s governor – where agriculture is that state’s largest industry, like Arkansas. He is a veteran of the United States Air Force and was an 11-year Georgia state senate member. He grew up on a small farm in central Georgia, earned a veterinary degree and has been involved for more than 40 years in grain merchandising, operating more than 3 million bushels of storage capacity at 11 locations across Georgia and South Carolina. I believe Gov. Perdue’s experience in agriculture will give him a clear understanding of important challenges such as commodity pricing, risk management, foreign trade and rural development, all hallmark issues for USDA. When trying to gauge the makeup of someone you don’t know, I often find it’s best to turn to someone you trust who knows that person well. In this case, I turn to American Farm Bureau President Zippy Duvall, who worked closely with Gov. Perdue when Zippy was president of the Georgia Farm Bureau. “Gov. Perdue will provide the strong voice that agriculture needs in this new administration,” Duvall said. “I have known him for years, and I have seen firsthand his commitment to the business of agriculture as we worked together on issues facing farmers and ranchers in our home state of Georgia. “He understands the challenges facing rural America, because that’s where he was born and raised. He is a businessman who recognizes the impact immigration reform,

trade agreements and regulation have on a farmer’s bottom line and ability to stay in business from one season to the next. “When farmers and ranchers are free to access cuttingedge technologies, reach new markets and make decisions that protect their businesses and resources, we are all better off.” Gov. Perdue will bring to USDA a perspective on southern agriculture that hasn’t been seen in a number of years, having dealt with commodities that range from poultry and peanuts to cotton and timber. Poultry is big business in Georgia, larger even than it is in Arkansas (for right now!) as that state ranks No. 1 in broiler production in the country. He also has an understanding of the need for foreign trade and the ability of America’s farmers and ranchers to deliver products to much of the world. To do that, though, we must make continued investments in transportation infrastructure, including work on our inland waterways and deepwater ports. Gov. Perdue worked tirelessly to expand Georgia’s ports, understanding the economic engine the infrastructure provides. As a result of his work, the deep-water harbor in Savannah, Georgia, is our country’s fourth-largest port, behind only Los Angeles, New York City and Long Beach, California. Abraham Lincoln once referred to USDA as “The People’s Department,” a lofty ideal for the largest agency in the federal government. Agriculture is what binds rural America and shapes so much of our culture and heritage. There have been 30 secretaries of Agriculture since 1889, and only two previously lived and worked in agriculture as adults. Gov. Perdue would be the third. I hope you share my excitement over the arrival of a thirdgeneration farmer as our country’s Secretary of Agriculture. *

Gov. Perdue’s nomination is an excellent choice for America’s farmers and ranchers and for the business of agriculture as a whole.

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rkansas Farm Bureau has been advocating on behalf of farmers and ranchers for more than 80 years, mobilizing a force of volunteer leaders to engage lawmakers. As the 91st General Assembly launches its session, Farm Bureau has multiple priorities to improve or maintain a strong business environment for agriculture. During this session, the organization will call upon the support of our almost 191,000 members to work with elected officials to accomplish these goals. Protect Agriculture Exemptions This is a constant priority for Arkansas Farm Bureau (ArFB). Sales tax exemptions for agricultural input items keep our farmers and ranchers competitive in the global economy. “Farm Bureau has been instrumental in establishing most of the exemptions on the books. Farming is a business, and our position has always been that agriculture merits the same advantages as other sectors,” said ArFB President Randy Veach. “When the utilities exemptions were passed in 2013, it not only helped the farmer but those savings went right back into the rural economy.” A revision of the state tax code has been widely discussed. Farm Bureau believes maintaining exemptions that keep the cost of doing business affordable is important. These exemptions save farmers millions of dollars annually and help keep the state economy strong. “The loss of agriculture exemptions would be devastating,” Veach said. “The farm economy and by extension the state economy lives and dies by them.” Additional Funding for the University of Arkansas System Division of Agriculture Supporters of the Division of Agriculture were successful in 2015 in securing an additional $3 million in onetime funding. That was no easy task to accomplish with reduced surpluses and large tax cuts. But it was only one-time funding. What’s really needed is an increase in base funding. Agriculture organizations are united in their support for more base funding for the Division of Agriculture.

In Arkansas Agriculture

ARKANSAS FARM BUREAU • WINTER 2017

nvolved Time to Get

Farm Bureau priorities in the legislature

Arkansas

Agriculture

ARKANSAS FARM BUREAU â€¢ WINTER 2017

“It’s hard to overestimate the critical role that the Division of Agriculture plays in the state’s landscape. Our members use the research, participate in the education programs and have been through the LeadAR program. Adequate funding is such a growing challenge,” said ArFB Vice President of Public Affairs and Government Relations Stanley Hill. There hasn’t been an increase in more than a decade. The University of Arkansas System Division of Agriculture has a presence in all 75 counties, providing valuable research and education services. It often doesn’t get a share in the increases allotted to other higher education institutions, and it doesn’t charge tuition so that source of funding is unavailable to it. Additional funding is needed to retain employees in a competitive research environment and maintain services to Arkansas citizens. Retention of Present Structure of Commodity Research and Promotion Programs Since their creation, the commodity research and promotion programs are an example of the ultimate in public-private partnerships. Funded by farmers and agriculture businesses that pay the assessments, these check-offs support research that aids farm efficiency and environmental stewardship. Check-off dollars

also support promotion projects and help increase consumption of participating commodities. The soybean, rice, catfish, beef, corn, grain sorghum and wheat research and promotion boards are made up of farmers and industry individuals selected by their respective organizations including Arkansas Farm Bureau. Those boards are committed to the wise use of check-off funds and the best interests of Arkansas agriculture. “The check-offs have had so much positive impact in providing research funding. The collective promotion of commodities creates a bigger voice,” said Jeff Pitchford, director of state affairs for ArFB. “It’s an empowering thing to see farmers and ranchers make decisions about research and promotion.” Seed Standardization Law The state has long precluded the local regulation of fertilizer, agriculture pesticides

Protection of livestock farming and ranching practices is critically important as radical animal welfare groups work with an end goal of completely eliminating animals as a food source for people.

8 8

Arkansas Agriculture

ARKANSAS FARM BUREAU • WINTER 2017

Soybean, rice, catfish, beef, corn, grain sorghum and wheat farmers, along with agricultural businesses, fund research and promotion of these commodities to help increase consumption, farm efficiency and environmental stewardship. These important programs need to continue as presently set up and run to maintain the best interests of Arkansas agriculture.

and chemicals, preferring that state agencies govern those regulations. This law would add seed technology to that list. County and city governments in Oregon, Washington and California have recently sought to limit the use of genetically enhanced seeds. Arkansas farmers support the use of biotechnology as a way to safely increase yields and often reduce water, pesticide and chemical use. Regulation at the state level is key to maintain consistent and scientifically sound rules. We think this is an important addition to state law to maintain a farmer’s right to farm. “There is so much misinformation about biotechnology. In other states, we’ve seen local governments limit the use of some seeds,” Pitchford said. “Those regulations aren’t based in science, and they limit farmers’ ability to make the best choices for their operations. State level regulation protects the interest of farmers from special interests.” Protection of Livestock Farming and Ranching Practices Many organizations would like to see animal agriculture abolished or raising livestock altered in significant ways. Arkansas Farm Bureau helped pass a right-to-farm law many years ago that protects

Arkansas Agriculture

ARKANSAS FARM BUREAU • WINTER 2017

farmers against nuisance complaints and limits the ability of local government to pass laws concerning animal husbandry. It’s a priority of Farm Bureau to maintain reasonable regulations for animal agriculture and environmental regulations based in science instead of emotion. “Animal agriculture is always under tremendous scrutiny. We see animal welfare groups interjecting themselves into the law-making process all over the country,” Veach said. “If those groups were successful, there might not be any animal agriculture left and what’s left might not even be what’s best for the animal. “Our objective is to protect a farmer’s or rancher’s right to farm and preserve their ability to care for their animals. Our farmers and ranchers possess so much expertise in animal husbandry, and they have professional veterinary resources when they lack skill or knowledge.” Strengthen Private Property Protection Another key component in strengthening right-to-farm laws in Arkansas, is revising the trespassing code. Arkansas Farm Bureau will support efforts to strengthen state trespassing statues where criminal intent is involved and to limit landowners’ duty of care for trespassers. We’ll also

Farmers need a seed standardization law that protects the option of using genetically enhanced seeds. These seeds are beneficial in producing increased yields and protecting the environment through less use of pesticides, chemicals and water.

advocate for trespass penalties when access to property goes beyond the agreed to scope of activity or employment purposes. Private property protection is vital to landowners. It guards against criminal activity and organizations wanting to harm agriculture. “It’s a simple truth that no one farms without land. We’re going to support multiple pieces of legislation related to this issue,” said Zac Bradley, ArFB’s Director of Public Policy and Government Relations. “We think strengthening state trespassing laws will be able to give farmers and ranchers more protection from theft from people opposed to agriculture and give them some lawsuit protection from trespassers.” Exemption for Arkansas Forestry Commission Rehires During Emergencies Arkansas Farm Bureau is committed to the most efficient use of state funds. An exemption for rehiring retired state employees for fire emergencies will help the Forestry Commission control costs. Retired former Forestry Commission workers are presently prohibited from working, even on a contract basis or temporarily, during times of emergency. This often forces the Forestry Commission to hire and house out-of-state workers for firefighting and other emergencies. A simple correction of state law will allow the Forestry Commission to access the in-state expertise of retirees during such emergencies. “This issue is about protecting Arkansas property and people and doing it efficiently,” Bradley said. “It was an unintended consequence to the passage of the ‘double-dipping’ law for state retirees. Unfortunately, the state can’t hire the instate expertise of recent retirees for fire emergencies. This is a common sense change.”

State Government Reorganization We’ll monitor and advise lawmakers regarding any reorganization of state government agencies and functions. Agriculture collaborates with many state agencies, and keeping their essential expertise and functions intact is important. Our focus will be on agencies and boards that have a direct impact on the agriculture industry. “It’s a big trend nationwide to reorganize state government. There can be a lot of positives to that like consolidating resources, removing duplications, saving tax dollars and the ability to offer better compensation when you combine positions and tasks,” Pitchford said. “Farm Bureau wants to work to achieve all those goals but make sure we keep services available for our membership. Agriculture is a technical field, and we want to retain the best services and right personnel while being efficient.” Beyond the priority list, Arkansas Farm Bureau expects to engage on a number of issues, including support for highway infrastructure funding, funding for Discovery Farms research and the tuition loan repayment program for veterinary students. We also hope to support changes to the law or funding that increases broadband internet service to rural Arkansas. Additionally, Farm Bureau will support an increase in the State Plant Board penalty matrix. We also anticipate bills related to animal welfare, feral hogs and levee districts. We’ll use the policy decided by our members to guide our positions on those bills. The priorities and positions of the Arkansas Farm Bureau are guided by our grassroots policy process. We take our marching orders from our members. Farm Bureau will never waver in its efforts to accomplish the goals of farmers and ranchers and to improve rural Arkansas. One of the goals of the founders of Farm Bureau, to advocate for the interests of agriculture in the public arena, remains constant in everything we do. *

Arkansas Agriculture

ARKANSAS FARM BUREAU • WINTER 2017

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Fisher says the enormous cost to get into the dairy business is a major impediment for those who consider entering the business.

Faces of Agriculture

Photo by Keith Sutton

Two Years of Good,

Five Years of Bad The life of a dairyman by Gregg Patterson

ike Fisher’s days as a dairyman are numbered, and he knows it. The Beebe dairyman is a vanishing breed in Arkansas. Only sixty-something dairies remain in a state that once had up to 1,500. When asked why he still does it, Fisher offers a self-deprecating smile and a one-word answer. “Ignorance.” The traditional bucolic farm scene of dairy cows dotting the landscape amid lush green pastureland is a rare sight in the Natural State. He and other dairymen describe the business as two years of good and five years of bad. “You make money for two years and then spend the next five giving it all back,” Fisher said. Such is the life of a dairyman. Fisher, 69, grew up on a dairy farm his dad started in 1948. He’s approaching year 31 in the dairy business. “I thoroughly enjoy it, raising cows and milking cows.” Fisher helped his father on the farm then went to college and earned an agriculture economics degree. His dad quit the dairy business in 1972. Fisher seemed to be through with any dairying himself as he first worked for his uncle’s feed mill. Then he went to work for 17 years at Bruce Oakley, Inc. Fisher had been out of the dairy business for 14 years when he decided to get back into it in 1986. He was still working for Oakley at the time. He built his herd up to 120. He began scaling back to where he and his wife, Susan, run the operation on their own now with 60 cows. They also raise beef cattle. Fisher kept his ag economics degree in play, too, becoming a loan officer for First Security bank in Beebe in 2000. He retired this year.

Fisher is a firm believer in the Farm Bureau mission to work on behalf of agriculture. He’s been involved in the White County Farm Bureau since the early 1990s. He served as its president in 2013-14. “I was approached and asked to serve on the (county) board. I had always wondered what Farm Bureau did,” Fisher said. “The whole thing I like about Farm Bureau is it’s a true grassroots operation. I truly believe that, and its actions show it. Whatever the counties come up with as resolutions, they take them to the state. They vote on them. And they do something. When it’s decided, Farm Bureau backs it 100 percent. It’s one voice. And I know I have someone speaking up for me. It’s more important now than it ever was, because there are so few of us.” It’s a way of farming that needs a voice as it continues shrinking here. Fisher says Arkansas dairies produce only 5 percent of the milk bottled in Arkansas. The rest is from out-of-state dairies. He says most of the dairymen now in Arkansas are older. “It’s just real expensive to start up a dairy,” Fisher said. He says he knows of only one new dairy startup in Arkansas during the last 10 years. Maximize the yield you can get, and keep your debt low. Fisher says that’s the primary wisdom he learned from his father. “That’s how he said you ride out the rough times.” Mike Fisher has ridden out some bad times, and he knows in these troubled times for dairymen in Arkansas that his days are numbered in the business. But he still enjoys it. Why does he still do it? Like he said, “ignorance.” Fisher still loves what he does. And at least in his case, ignorance truly is bliss. *

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Agriculture News Compiled by Rob Anderson Crop Price Crystal Ball Several of the break-out sessions at January’s American Farm Bureau Convention in Phoenix focused on the future; specifically making predictions about what U.S. farmers and ranchers can expect from the year ahead. The general consensus was that, while a new administration and Congress in Washington D.C. could result in changes to everything from the tax code to regulations, crop prices will likely remain in a “below average” holding pattern. Session speaker Pat Westhoff, director of the Food and Agricultural Policy Research Institute at the University of Missouri, provided his outlook on the crop market for 2017. It wasn’t pretty. “Barring outside factors like weather and foreign market changes, prices will continue to be below average, and possibly lower than 2016, based on current trends,” said Westhoff, a former chief economist of the U.S. Senate Committee on Agriculture, Nutrition and Forestry. He points to production levels of four key crops as a major issue in the ongoing price funk: corn wheat, rice and soybeans. “World production of these four major crops increased 846 million tons between 2002 and 2016,” he explained. “Just over the last 14 years alone, we’ve increased global production of these major crops by 48 percent.” According to Westhoff, global average yields for these crops, as well as all other grains and oilseeds – 14 major crops total – has been increasing at 1.1 percent a year, which roughly matches global population growth. “The last eight years, we’ve had four straight years with global average yield for the four major crops above the trend of 1980 to present, following three straight years below the trend,” Westhoff said. “Every single time during this period, when global average yield has exceeded the trend, prices have fallen. Every time it has been below the trend, prices have increased.”

Westhoff added that, should there be a return to normal yields around the world during 2017, prices could normalize. However, it doesn’t appear now this is likely to happen. He pointed out that slowing biofuel growth and questions about growth in the Chinese market are likely to hold grain and oilseed markets to current trends. Overall, Westhoff predicted that there will not be much change in the markets for any of the major crops. Matt King, Arkansas Farm Bureau Director of Market Information and Economics, concurs that global trade and demand will be the key for U.S. growers in 2017. “Simply put, global demand continues to drive commodity prices. Large amounts of corn are exported to Mexico, and China is the number one market for U.S. soybeans,” he said. “Keeping these trade flows open is very important to U.S. agriculture.” King offered his thoughts on two major crops in particular – rice and soybeans. Rice acres remain “a wild card for 2017,” he said. After stocks ballooned in 2010, long-grain rice harvested acres fell by more than 38 percent. A similar decline in 2017 would put total U.S. long-grain rice acres between 1.75 and 1.5 million acres. “The market continues to send signals for farmers to grow more soybeans,” he said. “According to the USDA, corn prices need to reach $3.85 for farmers to break even, and many need closer to $4 to make corn worth planting in 2017.” C&H Farm Update On Jan. 19, the Arkansas Department of Environmental Quality completed its review of the C&H Hog Farm Drilling Study Report. C&H is a concentrated animal feeding operation located in Mt. Judea, within the Buffalo National River watershed, and ADEQ had undertaken an evaluation of the integrity of the storage ponds of C&H. In a news release, ADEQ stated that a multidisciplinary, internal-review team at ADEQ – consisting of a professional

Arkansas Agriculture

ARKANSAS FARM BUREAU • WINTER 2017

A recently reviewed study of hog waste storage ponds on C&H Farm near Mt. Judea and Big Creek (pictured) in the Buffalo National River watershed found no leakage from the ponds. Photo by Ken Moore

engineer, professional geologist and other scientists – reviewed the study’s findings while considering additional information derived from questions posed by concerned citizens. It found no evidence of a release from the storage ponds. The ADEQ personnel reviewed work by Harbor Environmental and Safety, which had undertaken the drilling study in September last year. Meanwhile, on Jan. 17, just before the ADEQ announcement, the Beautiful Buffalo River Action Committee – a group commissioned by Gov. Asa Hutchinson to address water quality concerns throughout the Buffalo River watershed – held its first meeting and approved its charter. The committee, which does not have a regulatory role, includes the directors of the departments of Environmental Quality, Health, Parks and Tourism and Agriculture, as well as the Natural Resource Commission. The directors of the Game & Fish Commission and Geographic Information Office are ex-officio members.

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ARKANSAS FARM BUREAU • WINTER 2017

John Bailey, Arkansas Farm Bureau’s Director of Environmental and Regulatory Affairs, attended the first meeting. Afterward, he explained that ArFB would be making one request of the group – adding agriculturespecific language to its mission statement. The present statement reads: “To protect the Buffalo National River as a source of scenic beauty, high-quality water, unique aquatic species and habitat and exceptional recreational uses through the coordination of resources within the Buffalo River Watershed.” ArFB is requesting that the commission add “…while recognizing the need for preservation of agricultural productivity and the livelihood of farm families in the watershed.” This language mirrors that used by Gov. Hutchinson in his official announcement of the committee’s formation, in which he stated that the Buffalo River is “a national treasure and a significant agricultural, recreational and natural resource.” *

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Policy Update

Plan for Farm Bill Now Farmers encouraged to engage by Brandy Carroll

t seems like yesterday we were in AFBF the thick of the battle that created the Agriculture Act of 2014, but it’s already time to do it again. The 2014 bill doesn’t expire until the end of 2018, but Congressional leaders are already talking about starting the hearings process early in 2017. Their reasoning is three-fold: start early in order to finish on time; the farm economy has changed dramatically since the 2014 bill was passed; and there are some complex problems with the 2014 bill that need to be addressed. The 2014 bill was written in a time of high commodity prices and large budget deficits. The redesigned bill cut $16.5 billion out of the baseline over 10 years. Of course, the farm bill is really a food bill, as nearly 80 percent of total expenses are for nutrition programs like SNAP (food stamps). Crop insurance accounts for the next largest piece American Farm Bureau President Zippy DuVall appointed 18 state of the pie at 9 percent, and conservation and and AFBF staff members to the Farm Bill Working Group last summer. commodity programs make up the rest at 6 Brandy Carroll (front row, third from the right) represents Arkansas. percent and 5 percent, respectively. Go to http://www.fb.org/issues/farm-bill/farm-bureau-farm-billThe 2014 bill continued the trend of resources-in-depth/ to follow the group’s efforts. shifting funding to crop insurance. Farmers must share in the cost of premiums in order to participate. Thanks to increases in premium subsidy levels during the past few farm bills, 90 percent After losing a hard-fought battle in the World Trade Organization of eligible acres are now covered by some level of crop insurance. It’s with Brazil, cotton was eliminated from traditional commodity prothese increases in subsidy levels and the related increases in outlays grams. However, cotton fiber is still eligible for marketing loans and that are targets for groups opposing farm programs. marketing loan gains. A risk management program called the Stacked Commodity programs under the 2014 bill moved away from diIncome Protection Program (STAX) was crafted to help cotton farmrect payments in favor of giving farmers the choice between two risk ers manage risk. However, adoption of STAX has been slow, and the management programs. The shallow-loss Agriculture Risk Coverage cotton industry has gone back to the drawing board to find a more (ARC) program protects against revenue losses. And the Price Loss effective way to protect cotton farmers from market fluctuations. Coverage (PLC) program triggers when prices fall below a set referThe Dairy Margin Protection Plan (MPP) is a voluntary risk manence price. It was a one-time program choice that locked farmers in agement program to indemnify producers when the national income through the end of the bill. over feed ratio falls below the selected coverage level. The program reFarmers and Congressional leaders have already identified areas quires farmers pay premiums for coverage. MPP has collected nearly of the 2014 bill that aren’t working as intended. $100 million in farmer premiums and administrative fees during the Those choosing ARC also had to decide whether to use the first 18 months of the program. Indemnities and payments have been county crop yield or use their proven individual crop yield but cut approximately $12 million for the same time period. the percentage of their yield that was covered. More than 90 percent Since the farm bill was written, net farm income has declined $52 of farmers opting for ARC chose the county option. The program, billion annually according to USDA. At the same time, the farm bill however, has seen wide discrepancies in payment rates to farmers baseline has declined significantly. Now is the time for the farming across county lines. Many want a program redesign to make it more community to take a hard look at the present bill and prioritize its equitable and effective. needs for future programs. *

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ARKANSAS FARM BUREAU • WINTER 2017

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Going Beyond The Division of Agriculture is not only here to help you through the 2017 growing season, but is also looking ahead to 2027 and 2037, by conducting research on:

• Drones and robots • Precision ag • High tech irrigation • Designer crop varieties

• New herbicide-resistant weed management • Advanced environmental monitoring • Computer crop modeling • Big data

Call your county extension or visit www.uaex.edu to learn more.

DIVISION OF AGRICULTURE RESEARCH & EXTENSION University of Arkansas System

Arkansas Agriculture

ARKANSAS FARM BUREAU • WINTER 2017

The University of Arkansas System Division of Agriculture is an equal opportunity/equal access/affirmative action institution.

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