SIOUX FALLS, S.D. – With 2020 just around the corner, farmers across the Midwest hope Mother Nature and economic conditions will bring relief by spring.
The American Farm Bureau says South Dakota reported 13 farm bankruptcies in a 12-month period ending in September, compared with two in the previous 12-month period.
Angel Kasper, outreach director for Ag United for South Dakota, notes that 98% of the state's farms are family owned. She says when weather extremes kept many from planting crops this year, some gave up rather than wait for another season.
"South Dakota this year, especially with the weather, had 3.86 million unplanted acres of land, which is more than any other state,” she relates. “And some farms didn't get crops in at all."
In addition to weather problems, Kasper says the rise in bankruptcies can be traced to low commodity prices and the trade wars, including the tariffs on China.
Neighboring agricultural states also reported increases in farm bankruptcies: Nebraska had 37, Minnesota 31 and Iowa reported 24.
The Farm Bureau says overall, there were 24% more farm bankruptcies this year than last.
This year also has seen the wettest January-to-May period on record in the Midwest.
National Weather Service meteorologist Phil Schumacher says much of South Dakota is ending the year with conditions that could create more of the same in 2020.
"All we can say is right now is, there's a lot of moisture in the ground, the rivers are running high,” he states. It makes us a little more worried there could be flooding next year. But we have to wait and see how precipitation falls."
And Kasper adds that weather-related farm woes can directly impact consumers.
"The average age of farmers in the U.S. is 58 years old,” he points out. “Somebody has to take that place, and somebody has to produce those crops. So, with less farmers and less farms, food is going to become more expensive to produce."
Despite more bankruptcies, the U.S. Department of Agriculture expects net farm income to increase this year, due to insurance payouts, and also government payouts to individual farmers hurt by the trade war.
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Backers of a new federal rule said it will increase fairness for livestock and poultry producers, in North Carolina and across the country.
The U.S. Department of Agriculture has finalized its Inclusive Competition and Market Integrity rule, under the Packers and Stockyards Act this month. Advocates said it is a big step in addressing discrimination and even deception smaller livestock and poultry producers have faced for decades, from corporations they contract with to bring their products to market.
Aaron Johnson, policy co-director for the Rural Advancement Foundation International-USA, explained some of the long-standing concerns the rule addresses.
"One thing that we have documented in past reports is the tendency of integrators to present the terms and the potential benefits of the contracts they're offering during the recruitment process with growers in what we would assess to be deceptive terms," Johnson explained.
In addition to misleading contract terms, he noted some farmers were recruited within months of a plant being closed. He contended with the new rule, such issues can be prevented. It will go into effect 60 days after it is published, and producers will be able to use a Farmer Fairness Portal to submit their concerns to the Packers and Stockyards Division.
North Carolina poultry farms produce almost 8 million turkeys annually. Johnson emphasized the rule will work in tandem with another recent rule giving poultry farmers a more accurate estimate of the income they will receive with a contract. He believes even more could be done to strengthen protections for livestock and poultry producers in the performance-based payment system known as the "tournament system."
"One thing that hasn't been addressed by these two rules, as of yet, is really robust and targeted reform of the tournament system itself," Johnson stressed. "One thing I would highlight is that the tournament itself is one of the systemic facilitators of retaliation."
By "retaliation," he asserted some farms have had their contracts cut short and have even been driven out of business. He predicted more rules addressing issues in the tournament system and manipulation of cattle prices are expected.
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New agricultural census data show a significant increase in production value for New England farms over the past five years. There are nearly 31,000 farms and ranches operating in the region - a 5% decline from 2017. But those remaining farms grew their production value by nearly 32% to more than $3.5 billion.
Pam Hird, USDA state statistician, said the growth stems from more than just consolidation or an increase in food prices.
"We're using new technologies and new methods and learning things from our universities and our extension services. We're becoming more efficient at farming," she explained.
Hird added the census finds New England farms ranging in size from one to nine acres suffered the greatest losses and are part of the more than 20 million acres of American farmland lost to development and other factors over the past five years.
U.S. Agriculture Secretary Tom Vilsack called the decline in operational farmland "a wakeup call" for America and noted that a majority of America's farmers still rely on second incomes unrelated to farming to make ends meet. Hird said the census reveals an increasing number of young farmers with less than 10 years of experience are helping sustain the region's farm sector.
"What we do is very important," Hird contended. "We're high on the list for organics. We produce hay and hay forage. We have cattle. We have cut flowers. We have honey and bees. Maple, of course, is very critical."
While the number of organic farm numbers declined by nine-percent from 2017, the value of organic sales increased slightly. Hird says more than 67% of regional farmers responded to the census, providing critical data that determines farm programs and services, disaster assistance and technology development.
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Iowa factory farms could cash in on new proposed carbon emissions tax-credit rules in California.
The new emissions standards would allow California to buy tax credits from Iowa and other states, to offset diesel emissions in California.
Though well known for polluting the state's groundwater, Iowa'a Commercial Animal Feeding Operations - or CAFOs - are considered less carbon intensive than wind and solar operations.
That's because some CAFOs have installed anaerobic digesters, which remove methane from liquid manure. Operators sell that methane as "environmentally friendly" fuel.
Iowa Citizens for Community Improvement member Brenda Brink said the rules would mean California could buy the tax credits from CAFOs instead of cleaner sources.
"You see what's going to happen then?" said Brink. "Wind and solar is getting shafted, because they're taking off like gangbusters and there's basically no greenhouse gas emission from them."
Supporters of the new rules argue emission tax-credit plans like these are designed with the greater global good in mind, and claim the goal is to reduce emissions planet-wide.
The public comment period just wrapped up. A decision is expected this spring.
Brink argued this emissions tax credit plan would encourage out-of-state and even international owners to build more CAFOs in Iowa - where, at more than 4,000, the state is already the nation's leader in large-scale ag operations by a factor of more than 3.5.
"Because it's such a sweet deal, it's pushing more and more production through factory farms" said Brink. "State governments see the sweet deal it is - 'Well, look, it's clean energy.' And so, it's just this huge P.R. thing that is not true."
Based on an interactive map, California will likely purchase emission tax credits in other parts of the country as well, where CAFO operators have installed anaerobic digesters.
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