December 17, 2014
www.gfb.org
Vol. 32 No. 50
GFB SUBMITS COMMENTS ON PROPOSED BEEF CHECKOFF CHANGES Georgia Farm Bureau (GFB) submitted comments on the USDA’s proposed companion beef checkoff on Dec. 10. The companion checkoff, which would be operated under the Commodity, Promotion and Information Act of 1996, would be established in addition to the current National Beef Checkoff, which was authorized under the Beef Promotion and Research Act of 1985. While recognizing that the current assessment does not adequately fund needed programs as it did in 1985, GFB President Zippy Duvall expressed two key concerns. First, administrative costs under the 1996 law are allowed to be as high as 15 percent, while the 1985 law governing the current checkoff limits administrative costs to five percent. Under the current setup, “Producers benefit from actual beef promotion, not administrative costs,” Duvall wrote. Second, he urged the USDA to hold a producer referendum before establishing the second checkoff. “Producers should not have money withheld from their checks without first having an opportunity to weigh in on the checkoff's value to them,” Duvall wrote. In late September Agriculture Secretary Tom Vilsack announced his intention to form the new beef checkoff. This came after a working group of beef industry stakeholders failed to come to an agreement to increase the beef assessment, which is currently $1 per head of cattle, the same as it was when the checkoff was established. The USDA’s Federal Register Notice about the second checkoff included more than 20 questions to be addressed during the comment period, most dealing with how the new checkoff would be structured and funded. GFB supports the current National Beef Checkoff and an increase in the assessment to as much as $2 per head. In the comments Duvall wrote that the current National Beef Checkoff has served producers well, increasing domestic and international demand for beef. Duvall recommended that if the new beef checkoff is established, it should be structured the same way the current one is structured, with board members to be nominated by state cattle associations and state general farm organizations, with representation to come from those who are assessed, dairymen and beef importers. He also suggested a smaller operating committee to handle budget matters.
GFB News Alert page 2 of 9 MEETINGS COVER FARM BILL DEADLINES, DECISIONS FARMERS FACE University of Georgia Extension and Farm Service Agency staff are traveling across Georgia this week to bring farmers up to speed on the new farm bill and the decisions producers and landowners must make to participate in programs under the new bill. Meetings kicked off Dec. 12 at Fort Valley State followed by stops in Tifton and Bainbridge on Dec. 15, stops in Dawson and Quitman on Dec. 16, Vidalia and Waynesboro Dec. 17 and continue Dec. 18 with stops in Cartersville and Hull and end Dec. 19 in Alma. Visit http://tinyurl.com/fbinfomtgs for more information about the Dec. 18 and 19 meetings. Georgia Farm Bureau was one of the sponsors for these meetings. Speaking at the Dec. 12 meeting in Fort Valley, David Forbes with the Georgia Farm Service Agency (FSA) office said the new farm bill gives farm owners a one-time opportunity to keep a farm’s base acres as they were on Sept. 30, 2013, or reshuffle crop base acres to reflect what has been grown on the farm between 2009 and 2012. “You can’t increase or decrease bases on a farm but you can shuffle them among covered commodity crops based on percentage of acreage you planted on the farm during the base period,” Forbes said. Covered commodity crops include wheat, barley, oats, peanuts, corn, grain sorghum, soybeans, dry peas, lentils, large and small chickpeas, sunflower seed, canola, flaxseed, mustard seed, rapeseed, safflower, crambe and sesame seed. Under the new farm bill cotton base is referred to as generic base and is handled separately. Farmers have until Feb. 27, 2015, to reallocate their base acres and to update their yield histories for crops grown on their farms. Producers and landowners were sent letters in September from the FSA providing the base acre allocations and yield histories the agency has on file for farms. Forbes urged multiple owners of the same farm to reach a unified decision regarding base acre allocation and yield updates and to only file one base reallocation and yield update per farm with FSA. If farm owners don’t reallocate their base acres by Feb. 27, 2015, then base allocations will be set as they were as of Sept. 30, 2013, Forbes said. “I highly encourage you to look at the yields you carry on your 156-form. Your yields need to be updated to reflect what’s currently happening on your farm,” Forbes said. After farmers update their base acres and yield histories, they must decide whether to participate in the Price Loss Coverage (PLC), Agricultural Risk Coverage-County or the Agricultural Risk Coverage–Individual (ARC) programs by March 31, 2015, UGA Extension Economist Nathan Smith explained. If producers don’t make a choice by the deadline then no ARC or PLC benefits will be available for 2014, and PLC is the only remaining option for 2015 and beyond. The program choice stays with the farm even if a producer doesn’t. After farmers choose the program they will participate in for the life of the farm bill, they will be required to re-enroll in the program each year. The PLC program is a price-based safety net that protects against “deep losses” due to price declines. Producers will receive a payment if the national average marketing year price of a covered commodity is less than the reference price stipulated in the farm bill. Reference prices for the major covered commodities grown in Georgia are as follows: peanuts $535/ton; wheat $5.50/bushel; corn $3.70/bushel; sorghum $3.95/bushel; soybeans $8.40/bushel; other oilseeds $20.15. The PLC payment will equal the maximum of either the reference price minus the average marketing year price or the reference price minus the loan rate. The payment will be on 85 percent of base production (base acres X program yield) for the crop. -continued
GFB News Alert page 3 of 9 Continued The ARC-County program is a revenue-based safety net program based on county yield averages while the ARC-Individual program is a revenue-based safety net program based on individual farm yields. With the ARC-County option, crop revenue will be estimated using average county yields. Farmers will receive payments if the ARC-County actual crop revenue is less than the ARC-County revenue guarantee. Under the ARC-Individual option, farmers will receive payments if the actual revenue from all covered commodities is less than the ARC-Individual guarantee. Smith said the ARCIndividual program is not really written for Southeast farms but written more for farms in the Northern Plains. “It really depends on what you think prices are going to do as to which program you signup for,” Smith said. “The PLC program will pay more on peanuts than ARC-County in most cases. For corn, soybeans and wheat it’s uncertain, but if you think prices will fall below the reference prices then you probably want to look at PLC because it will be better protection to cover low prices. If you think prices will stay above reference prices, then you’ll want to look at the ARCCounty program. If you want to buy Supplemental Coverage Option (SCO) then you’ll want to choose ARC-CO because you’re not eligible to buy SCO under the PLC program. ” SCO is a new crop insurance supplement that gives farmers additional coverage for a portion of deductibles associated with polices purchased in the PLC program. Smith recommended farmers use one of two farm bill decision aids to crunch their farm numbers to decide which program to enter their farms into. The Texas A&M tool is available at https://usda.afpc.tamu.edu. The University of Illinois tool is available at http://fsa.usapas.com. UGA Extension Economist Don Shurley gave an overview of the new Stacked Income Protection Plan for cotton (STAX). Shurley said STAX is a revenue policy that pays based on yields in the county or area in which the farm is located rather than individual farm yields. Farmers will still be able to carry crop insurance policies on their cotton crop that will pay based on individual farm yield called companion policies. Cotton is not eligible to be enrolled in the PLC or ARC programs. “STAX attempts to cover some of what we call shallow losses,” Shurley said. “You could have a loss on your farm and your individual companion policy will kick in and pay for you but countywide yields did better so STAX won’t pay you. STAX is made to fit on top of your companion policy.” Shurley also explained that under the new farm bill producers may annually reallocate their generic base among covered commodities (peanuts, wheat, soybeans, corn, etc.). “You don’t want to leave your generic base underutilized if you can help it. To the extent you can, within reasonable crop rotation, try to utilize your generic base to plant more acres of other crops,” Shurley said. Brett Martin with the Georgia FSA office discussed changes to the Noninsured Crop Disaster Assistance Program (NAP) for crops that have traditionally been ineligible for federal crop insurance such as vegetables, fruit, floriculture, ornamental nursery crops, turf grass, honey and energy crops. Martin said previous farm bill NAP provisions only offered coverage at 55 percent of the average market price for crop losses that exceeded 50 percent of expected production. Now farmers can buy NAP coverage up to 65 percent of their expected production at 100 percent of the average market price. The cost of the buy-up per acres will be dependent on the crop insured and the value of the crop and the farmer’s annual production history. If the application deadline for an eligible crop under NAP has already passed, farmers have until Jan. 14, 2015, to choose expanded NAP coverage.
GFB News Alert page 4 of 9 PERDUE, ALLEN APPOINTED TO AG COMMITTEES Senator-elect David Perdue (R) was appointed to the Senate Agriculture Committee and Representative-elect Rick Allen (R-12th District) has been appointed to the House Agriculture Committee during the 114th Congress, according to news releases. Perdue said during the Georgia Farm Bureau Convention in early December that he was pursuing the Ag Committee appointment. “Georgia has a long tradition of representation on the Senate Agriculture Committee. I am humbled and honored to serve in this capacity. Agriculture is a strategic industry, not only for Georgia but for our nation, and I will work to keep it growing. I want to help Georgia’s farmers continue to produce and sell Georgia grown products and ensure that we remain an agricultural leader in the future,” Perdue said in the release announcing his appointment. Allen’s appointment was announced by House Ag Committee Chairman-Elect Mike Conaway (R-Arkansas). The office of David Scott (D-13th District) office confirmed to GFB that he would remain on the committee. Conaway announced that Austin Scott (R-8th District) will chair the Subcommittee for Commodity Exchanges, energy and Credit, which oversees the Commodity Futures Trading Commission, Rural Development, lending institutions and ag credit and loan operations within the Farm Service Agency. BODDIFORD, BURCH TO CONTINUE ON GPC BOARD OF DIRECTORS Georgia Peanut Commission District 1 Director Tim Burch of Baker County and District 3 Director Joe Boddiford of Screven County will each serve another three-year term beginning Jan. 1, 2015. Burch and Boddiford were renominated without opposition during meetings held Dec. 15 and 16. The meetings were conducted by Georgia Farm Bureau. The District 1 meeting was held Dec. 16 in Colquitt at the Miller County Extension office. District 1 includes Baker, Calhoun, Decatur, Dougherty, Early, Grady, Miller, Mitchell and Seminole counties. The District 3 meeting was held Dec. 15 in Swainsboro at Emanuel County Farm Bureau. District 3 includes Appling, Bacon, Bryan, Bulloch, Burke, Candler, Effingham, Emanuel, Evans, Glascock, Jeff Davis, Jefferson, Jenkins, Johnson, Montgomery, Pierce, Richmond, Screven, Tattnall, Toombs, Treutlen, Washington and Wayne counties. The Georgia peanut production area is divided into five districts based on acreage distribution and geographical location with one board member representing each district. Each nominee must produce peanuts and live within the district for which he is nominated.
GFB News Alert page 5 of 9 STATE EMPLOYEES READING AG IRRIGATION WATER METERS During the month of December Georgia Soil & Water Conservation Commission (GSWCC) staff, assisted by Georgia Forestry Commission (GFC) employees, will be collecting water use data from meters installed on agricultural irrigation systems. Since 2003, more than 13,000 water meters have been installed to monitor agricultural water usage in Georgia. Information from these meters assist policy makers in understanding agricultural water use in the state and help agricultural producers improve their water-use efficiency. During these field visits, GSWCC staff will also be completing routine maintenance on some of the meters. “The annual reading and maintenance process is a cornerstone of the Georgia Soil and Water Conservation Commission’s agricultural water use program,” explained Brent Dykes, GSWCC executive director. “We appreciate the cooperation of producers across the state and commend them for their water conservation efforts. If a farmer sees an individual in their fields, they should feel free to ask for proper identification. State employees collecting meter readings carry identification and will answer any questions.” Agricultural irrigation wells and surface water pumps permitted by the Georgia Department of Natural Resources’ Environmental Protection Division (GAEPD) must have a measurement device installed. The GSWCC oversees the program. For information about the metering program contact the GSWCC office in Dawson at 229995-6001. The GSWCC supports locally led soil and water conservation districts through education, technical, financial and planning assistance, and through program oversight. More information on protecting, conserving and improving Georgia’s soil and water resources is available on the GSWCC website at http://gaswcc.georgia.gov or by calling 706-552-4470. U.S. TOBACCO COOPERATIVE REDEEMING STABILIZATION CERTIFICATES In the late 1970s Flue Cured Tobacco Cooperative Stabilization Corporation (Stabilization) issued certificates of interest in capital reserve to its members who delivered tobacco to Stabilization for crop years 1967 through 1973. The U.S. Tobacco Cooperative is offering to redeem the certificate of any member who voluntarily accepts the offer. This is not a mandatory redemption; it is an offer which may be accepted only by the choice of the farmer or his/her heirs. Any certificate holder (including heirs, beneficiaries and/or estate administrators of deceased certificate holders) who would like to accept this redemption offer should call 1-877-277-7422 for more information. To obtain a redemption application form visit http://www.tobaccocheck.com/PDF/ApplicationForm.aspx. The form may also be requested via mail by sending a self-addressed, stamped envelop to Certificate Redemption, P.O. Box 12300, Raleigh, N.C. 27605. The deadline to submit the redemption application is Feb. 28, 2015.
GFB News Alert page 6 of 9 OLAM INTERNATIONAL BUYS MCCLESKEY MILLS Olam International Limited, a leading agribusiness operating in 65 countries, announced on Dec. 5 that it has signed a purchase agreement to acquire a 100 percent interest in a leading US peanut sheller, McCleskey Mills Inc. (MMI), at an enterprise value of $176 million, according to an Olam press release. MMI is currently the third largest peanut sheller in the U.S. with a market share of approximately 12 percent and an annual capacity of approximately 250,000 farmer stock tons. MMI owns processing facilities at two locations in Georgia, the heart of the country’s peanut growing region in the Southeast. In addition, it owns or manages 20 buying points and farmer stock storage assets at strategic locations in the Southeast region. MMI has also sells to a diverse set of customers in the snack, peanut butter and confectionery space. The MMI senior management team, including Executive Vice President for Sales Joe West, Vice President of Procurement Chad Chandler and Vice President of Seeds and Projects Bill Marshall will continue to manage MMI’s operations from Smithville, Georgia after the acquisition and will be responsible for expanding MMI’s franchise with its growers and customers. GOV. DEAL SETS UP CASE MANAGEMENT TEAM FOR SCOTUS WATER SUIT On Dec. 11 Gov. Nathan Deal announced the establishment of an office for interagency coordination and management of water resources. Deal has appointed Georgia Environmental Protection Division (EPD) Director Judson H. Turner to head the new office. Turner will also remain the EPD director. Turner will work closely with Georgia Attorney General Sam Olens, his legal team and multiple special assistant attorneys general on matters related to case management of this complex litigation. John Allen, of Kazmarek, Mowery, Cloud & Laseter LLP, will join Turner as the deputy for the new office. Allen has long served the state as counsel in the tri-state litigation. Turner and Allen will hold appointments as Special Executive Counsels for water and Allen will maintain his appointment from the Attorney General as Special Assistant Attorney General. In addition to litigation coordination and support, Turner will be responsible for the oversight and management of the state’s multipronged efforts to increase water supply while also developing and implementing policies for sustainable and reasonable use of water resources. This effort will involve multiple state agencies, state and regional authorities and local governments, and it will require coordination among various local stakeholders and constituencies. In support of this effort, Russ Pennington, director of policy and public affairs at EPD, will serve as director of the Governor’s Water Supply Program. Pennington will work with Turner and the director of the Environmental Finance Authority, Kevin Clark, to implement and manage critical state-funded water supply projects and to assist in the coordination of select water supply initiatives of state and regional importance. Mary Walker, assistant director of EPD, will assume the role of assistant director/chief operating officer and Trip Addison will join the senior team at EPD as assistant director. Addison recently served as deputy director at the Governor’s Office of Planning and Budget and formerly served as Deal’s policy adviser for natural resources and the environment.
GFB News Alert page 7 of 9 GFB/UGA EXTENSION FARM BILL INFORMATION MEETINGS Dec. 18 Clarence Brown Conf. Center 9:30 a.m. – noon Cartersville Dec. 18 Jackson EMC 4 p.m. – 6:30 p.m. Hull Dec. 19 Alma Blueberry Warehouse 9:30 a.m. – noon Alma Georgia Farm Bureau and the University of Georgia Cooperative Extension Service are providing a series of farm bill educational meetings around the state. The meetings, conducted by UGA agricultural economists Nathan Smith and Don Shurley, the USDA Farm Service Agency (FSA) and the USDA Risk Management Agency (RMA), will feature information and analysis to help farmers and landowners understand what is required and assist them in farm bill program enrollment decisions. Anyone planning to attend should contact their local Extension office so proper arrangements can be made for the meals. 2015 GFB DISTRICT II YOUNG FARMER STEER AND HEIFER SHOW Jan. 17, 2015 White County Agr-Science Center Cleveland This one-day show features cash prizes and plaques, as well as a $250 scholarship for the 12thgrade showmanship winner. Check-in runs from 7 a.m. to 9 a.m. State show rules apply. Entries must be postmarked by Dec. 22, 2014. Entry fee is $20 per animal for Georgia Farm Bureau members and $30 per animal for non-members. Show is open to junior beef cattle exhibitors from Union, Towns, Rabun, Lumpkin, White, Habersham, Hall, Banks, Stephens, Franklin, Jackson, Madison and Elbert counties. The barn will be open at 5 p.m. on Jan. 16 for early arrivals. For more information contact Will Cabe at 706-988-0018 or willcabe@yahoo.com, Matthew London at 706-969-9284 or mlondon9284@gmail.com, or Clay Talton at 706-9880153 or cstalton@gfb.org. 2014 GATE CARDS EXPIRE DEC. 31 The Georgia Agriculture Tax Exemption (GATE) program is an agricultural sales tax exemption certificate issued by the Georgia Department of Agriculture that identifies the card holder as an ag producer qualified for the tax exemption. All 2014 GATE cards expire Dec. 31. To renew your card visit http://forms.agr.georgia.gov/gate/ or call 1-855-FARM-TAX (855-327-6829) from 8 a.m. to 5 p.m., Monday – Friday. There is a $20 fee for online applications and a $25 fee for applications made via mail or phone. Many county Farm Bureau offices will assist their members with online signups or renewals. The GATE card should only be used to purchase items that qualify under the program for the production of ag commodities. INAUGURAL ABAC YOUNG FARMERS STEER AND HEIFER SHOW Jan. 23 & 24 Georgia National Fairgrounds & Agricenter Perry This show, organized by the Abraham Baldwin Agricultural College Farm Bureau chapter, is open to all 4-H and FFA members in Georgia in grades 4-12. Georgia show rules and regulations apply to all entries. Complete rules are available at http://tinyurl.com/4hshowrules. Entry fees are $35 per exhibitor and entry forms must be postmarked by Jan. 3, 2015. Late entries will be accepted with a $10 late fee. T-shirts will be given to all exhibitors. For more information contact Charlsy Anesetti at 770-490-6391 or canessett@stallions.abac.edu or Johnathan Barrett at 706-499-3456 or j24barrett@gmail.com.
GFB News Alert page 8 of 9 VEGETABLE MARKETING ORDER HEARING Jan. 6, 2015 Macon Farmers Market 10 a.m. Macon This is a public hearing regarding the proposed marketing order for the Georgia Agricultural Commodity Commission for Vegetables. Anyone may make comments. Participants at the hearing are required to register on arrival. Individuals may also submit written comments concerning the proposed marketing order by mail or email to: Andy Harrison, Commodity Commissions Manager, Ga. Dept. of Agriculture, 19 MLK Jr. Dr. S.W., Room 324, Atlanta, Ga. 30334 or via email to andy.harrison@agr.georgia.gov. Written comments must be received no later than 4:30 p.m. on Jan. 5, 2015, in order to be considered. The proposed marketing order would assess vegetable producers 1 cent per marketing unit on affected products. The affected products include bell peppers, specialty peppers, beans, broccoli, beets, cabbage, cantaloupe, carrots, cucumbers, eggplants, greens, squash, sweet potatoes and tomatoes produced for sale on the fresh market. The order would apply to producers of those vegetables for sale who have 50 acres or more of vegetable production annually. Funds generated by the order would be used for research, promotion and education. For information contact Harrison at 404-586-1405. SOUTHEAST REGIONAL FRUIT & VEGETABLE CONFERENCE Jan. 8-11, 2015 International Trade and Convention Center Savannah This annual conference features nine crop-specific workshops plus workshops on roadside markets, business operations and food safety. New for 2015 are the Southeast Farm Market Bus Tour on Jan 8 and the National Vegetable Grafting Symposium. For more information or to register, visit http://www.seregionalconference.com. 2015 AG FORECAST MEETINGS Jan. 14 Brenau Georgia Mountains Center Gainesville Jan. 15 Clarence Brown Conference Center Cartersville Jan. 16 Cloud Livestock Facility Bainbridge Jan. 21 Toombs County Agricenter Lyons Jan. 22 UGA Conference Center Tifton Jan. 23 Georgia Farm Bureau Macon This series, supported by an endowment from Georgia Farm Bureau with additional support from the Georgia Department of Agriculture, focuses on how technology is being used to solve problems for the ag industry along with the 2015 economic outlook for agricultural commodities. Check-in for all of the meetings, except Tifton, begins at 9 a.m. with seminars starting at 10 a.m. followed by lunch at 11:30 a.m. Check-in for the Tifton event starts at 7 a.m., breakfast will be served at 7:30 a.m. followed by the seminar from 8 a.m. to 9:30 a.m. Cost is $30 per person or $200 for a table of eight. Advance registration is required. For more information or to register, visit http://www.georgiaagforecast.com, call 706-583-0347 or email carlam@uga.edu. Follow the meetings on UGA CAES Facebook or on Twitter @UGA_CollegeofAg and join the conversation with #AgForecast. GEORGIA PEANUT FARM SHOW & CONFERENCE Jan. 15, 2015 UGA Tifton Conference Center 8:30 a.m. – 2:30 p.m. Tifton This annual must-go event features 100 exhibits, nearly $40,000 in door prizes, a free farmer lunch and educational sessions, including pesticide applicators certification classes. For more information contact the Georgia Peanut Commission at 229-386-3470 or info@gapeanuts.com, or visit the GPC website at www.gapeanuts.com.
GFB News Alert page 9 of 9 BOLL WEEVIL ERADICATION FOUNDATION ANNUAL MEETING Jan. 15 Holiday Inn Express (1502 Sam Nunn Blvd.) Perry Meeting, which begins at 1 p.m. will provide a program update for 2015. Call 1-800-269-9926 to RSVP or for more information. UGA DAIRY HEIFER SHOW Feb. 6-7, 2015 UGA Livestock Arena Athens State Junior Commercial Dairy Heifer Show rules and regulations apply. Entry fees are $12 per heifer and entries must be postmarked by Jan. 15, 2015. All heifers entered must have been individually tagged by Nov. 14. A contest to design the show t-shirts is being held, with a $50 prize to the winner. Entries for the t-shirt design contest are also due Jan. 15, 2015. A dairy judging contest for FFA and 4-H students will be held Feb. 6. Entry fees for the judging contest are $5. For a printable entry form visit http://tinyurl.com/ugadairyheifer. For more information contact Dr. William Graves at wgraves@uga.edu. GCC ANNUAL MEETING & UGA COTTON PRODUCTION WORKSHOP Jan. 28, 2014 UGA Tifton Campus Conference Center 8 a.m. Tifton Featured speakers for the Georgia Cotton Commission Annual Meeting are Mark Messura, Senior Vice President for Global Marketing, Cotton Incorporated; John Maguire, Senior Vice President of the National Cotton Council, and a representative for Southern Cotton Growers. The UGA Cotton Production Workshop, conducted by the Research & Extension Cotton Team, provides the latest technical production strategies from the researchers whose projects were funded by the Commission using growers’ dollars. There is no charge to attend. Pre-registration is requested to help with meal plans. Register online at www.ugatiftonconference.org or call 229.386.3416. For more information call 478-988-4235 or visit http://tinyurl.com/cottonmtg. OLD SOUTH FARM MUSEUM HOG KILLING DEMONSTRATION Feb. 7, 2015 Old South Farm Museum 8:30 a.m. Woodland This event will demonstrate how farmers once slaughtered hogs on their farms for their families and the many products made from hogs. Program includes a meat-cutting class and demonstrations on making various products from pork including sausage, Brunswick stew, meat skins and lye soap. Classes run from 8:30 a.m. into the afternoon. Breakfast and lunch will be sold at the museum. The fee to observe and receive free sausage is $12 per person. The fee is $35 to participate in the workshop demonstrations with hands-on experience and receive pork products. Feb. 2 is the deadline to pre-register. For more information or to register, contact Paul Bulloch at 706-975-9136 or visit www.oldsouthfarm.com to print the registration form to be mailed with payment to Bulloch.