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Agriculture News

Getting to the next 5 percent and what it means to dairy farmers

Progressive Dairy | Posted on November 8, 2017

Nearly half of all “new” milk produced in this country over the last 13 years has gone to markets beyond our borders. Since 2004, the expansion in U.S. dairy exports alone added an average of $1.25 per hundredweight per year to U.S. farm milk prices. That has meant an additional $36 billion in milk revenues since 2004. In an industry where a few percentage points can make the difference between breaking even and going broke, that is a very big deal. Export gains have lent critical support to U.S. milk production growth and the expansion of the entire U.S. dairy industry over the past decade-plus.If U.S. dairy exports had remained locked at their 2003-2004 level, we would be looking at a much more fragile industry today with far dimmer prospects. Similarly, if U.S. dairy exports remain locked at their current level moving forward, there is little question it would stunt growth and erode the health and vitality of the U.S. dairy industry.


As Wild Salmon Decline, Norway Pressures Its Giant Fish Farms

The New York Times | Posted on November 8, 2017

Once a rarity on global dinner tables, salmon is a staple today, thanks to a fish farming industry that has expanded at breakneck speed in recent decades, including in Norway, where in 2016 around 1.18 million metric tons were produced. But now, Norwegian fish farmers face new curbs designed to protect the country’s stocks of wild salmon, rules that have ignited anger from the industry and its opponents, prompting threats of court challenges from both sides.The wild Norwegian salmon are members of an ancient species that, early in its life cycle, heads down river, swimming through Norway’s famous fjords, and out to saltwater feeding grounds, before returning to their native rivers to spawn.In recent years, however, the wild salmon population has more than halved, partly because of the spread of sea lice, parasites that feast on the mucus and skin of the fish before moving on to the muscle and fat, making the fish vulnerable to infections and sometimes killing them. The lice problem is so bad that the worldwide supply of salmon on sale, the overwhelming majority of which is farmed, fell significantly last year, with Norway, the largest producer, especially hard hit.To contain the problem, a system came into force in Norway on Oct. 15, under which farms in regions that are judged to severely threaten wild salmon numbers will have their production frozen and potentially, in future years, cut. If the lice are brought under control, then output can be increased.


FDA Pesticide Analysis Shows Residue Levels Remain Low

Quality Assurance & Food Safety | Posted on November 8, 2017

According to a new FDA report, 98% of domestic and 90% of imported foods tested in FY 2015 were compliant with federal pesticide residue limits. The report covers fiscal year 2015 (Oct. 1, 2014 through Sept. 30, 2015), during which the levels of pesticide chemical residues in or on food generally remained well below established federal tolerances, or EPA limits, the report states. Additionally, no pesticide chemical residues were found in 49.8% of the domestic and 56.8% of the imported human food samples analyzed. The agency found pesticide chemical residues in violation of federal tolerances (residue levels above the tolerance or residues for which no tolerance has been established) in less than 2.0% (15 out of 835) of domestic samples and less than 10% (444 out of 4737) of import samples.FDA also tested food intended for animals. No pesticide chemical residues were found in 51.6% of the 215 domestic animal food samples nor in 57.9% of the 202 imported animal food samples. Less than 3.0% (12 samples) of the animal food samples were found to contain violative pesticide chemical residues.


H.R. 1 - Farmers, Self-Employment Tax and Business Arrangement Structures

Agriculture Law and Taxation Blog | Posted on November 8, 2017

H.R. 1, the House tax bill, was publicly released last week.  Of course, it’s getting a lot of attention for the rate changes for individuals and corporations and flow-through entities.  However, there is an aspect that is getting relatively little focus – how the self-employment tax rules would change and impact leasing and entity structuring.  Most farmers don’t like to pay self-employment tax, and utilize planning strategies to achieve that end.  Such a strategy might include entity structuring, tailoring lease arrangements to avoid involvement in the activity under the lease, and equipment rentals, just to name a few.  However, an examination of the text of the recently released tax bill, H.R. 1, reveals that self-employment tax planning strategy for farmers will change substantially if the bill becomes law.  If enacted, many farmers would see an increase in their overall tax bill while others would get a tax break.  In addition, existing business structures put in place to minimize the overall tax burden would likely need to be modified to achieve that same result.


California imposes new pesticide restrictions near schools

Capital Press | Posted on November 8, 2017

Beginning Jan. 1, the California Department of Pesticide Regulation’s new rule will prohibit many applications within a quarter-mile of public K-12 schools and licensed day care facilities from 6 a.m. to 6 p.m. Monday through Friday.This includes all applications by aircraft, sprinklers and air-blast sprayers and all fumigant applications as well as most dust and powder applications such as sulfur, according to a state news release.The rule will also require nearby growers to provide annual notifications to area schools and county agricultural commissioners of the pesticides they expect to use in the upcoming year.


Livestock-associated MRSA found in human MRSA samples

UPI | Posted on November 7, 2017

A recent survey by researchers identified livestock-associated meticillin-resistant Staphylococcus aureus, or LA-MRSA, in human MRSA samples. The death of four people in 2014 from LA-MRSA CC398 in Denmark attracted media and scientist attention regarding the risk of LA-MRSA in pigs and humans. Researchers worked to reduce the risks by identifying transmission chains to halt transmission from animals to humans.Research showed that wearing face masks when working in pig stables can lower the risk of LA-MRSA transmission by 37 percent.The ECDC received responses from 28 labs located in 27 or the 30 EU/EEA countries as part of a survey initiated in 2014. The labs reported receiving MRSA isolates from 14,291 patients the previous year, 13,756 were typed, and LA-MRSA was identified in 89 percent of the countries with MRSA typing data. Of these, 3.9 percent -- 535 of the samples -- were identified as LA-MRSA. The study, published today in Eurosurveillance, demonstrated the increasing detection and geographical dispersion of LA-MRSA in humans in the EU/EEA since 2007 with reports from 2014 and 2015 from Nordic countries showing an increasing trend of LA-MRSA across Europe.


Dairy farmers paying more to produce milk

WHEC | Posted on November 7, 2017

George Mueller at Willow Bend farms says grain is costing more and people just aren't buying milk like they used to. Those are some of the factors that are driving up their cost to buy milk. The price to produce milk per hundred pounds has gone up $1.30 since last August.However, the hope is that you, as customers won't be paying more. The report had some people concerned, but Mueller says this shouldn’t hit you too hard. You might notice small changes, a few pennies here or there but nothing too steep.Mueller says the North American Free Trade Agreement, or NAFTA, allows dairy farmers to sell their milk to places like Mexico and Canada. Exporting milk and milk products helps offsets the farmer's costs to keep the price leveled for us."If all of a sudden we lose exports our price will fall out, there will be no bottom,” Mueller said. “We're very nervous about the present administration talking about doing away with NAFTA or changing it.”


85-year-old N.J. dairy processor bought by Kansas company; 180 jobs are safe

edairynews | Posted on November 7, 2017

Dairy Farmers of America purchased Bridgeton-based Cumberland Dairy, an 85-year-old family-owned business that processes ultra-pasteurized dairy products.The dairy company, which started as a small milk plant behind the founder Charles Catalana’s home, will continue to operate under its current name and the 180 employees who work for the dairy will remain employed.


Are dairy farmers drowning in milk?

edairynews | Posted on November 7, 2017

Much has been noted in the past couple years about the state of the dairy industry in Wisconsin. With news stories popping up about exports declining and farms losing a home for their milk, let’s take a macro look at what is causing the past, current and short-term future market conditions. While the milk market faces excessive supply, there is some positivity on the horizon. The U.S. Dollar is the weakest it has been against the Euro since early 2015 and exporters are now starting to move supplies to foreign buyers. The U.S. Dairy Export Council is aggressively trying to increase exports by five percent, which would send export levels to nearly 20 percent of the country’s milk supply. Unfortunately, this process will take time. In the short-term, inventories continue to grow without equal offsets by global buyers. This will continue to suppress prices, most likely, to levels that are below breakeven throughout most, if not all of 2018.


Funding woes shut processor of pasture-based poultry

Meatingplace (free registration required) | Posted on November 7, 2017

A USDA-inspected processor in North Carolina serving producers of pasture-raised poultry in six states has suspended operations, citing a lack of capital. Cool Hand Meats of Marion, N.C., began as the Foothills Pilot Plant with funding from a patchwork of USDA, state and local sources before becoming a for-profit business on March 1, said owner Amanda Carter, who also served as general manager of the Foothills project for four years.About $1.2 million was invested over the years with the goal of creating a model for-profit meat-packing plant that would serve local independent farmers. The business was slated to process about 90,000 to 100,000 broiler-equivalent head this year, but “promised community financing did not materialize into reality,” Carter said.


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