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Farm Policy

Oct
19
2011

Ohio Livestock Care Standards Released

There have been several meeting held around the state where the Ohio Livestock Care Standards Board have presented their recommendations.  David Tornero from the Ohio Department of Agriculture has made video clips of  the Ohio Livestock Care Standards meeting.  They are broken up by the topics of Dr. Glauer’s Powerpoint presentation.  These videos are being posted as educational information for our readers.

 History and Process  http://youtu.be/OdqXbkYJIow

 Outreach and Definitions  http://youtu.be/XOtwhltB6LU

 Water and Feed  http://youtu.be/us0sraF6wNc

 Management  http://youtu.be/nIfJRVb26Sk 

 Health   http://youtu.be/D7yngXIHhm0

 Transportation  http://youtu.be/ab-4JCEq21s

 Euthanasia  http://youtu.be/62E8QPtSUDY

 Enforcement  http://youtu.be/XlRuFkX2AFA

 Enforcement (Dr, Forshey)  http://youtu.be/dlO8rhtM6jY

 

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Farm Policy, November 2011
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Jul
07
2011

Eliminating Direct Payments and Potential Impacts of Extending Ethanol Tax Credit

by Chris Bruynis, Extension Educator

The University of Missouri recently released two articles that are of interest to farmers. The first examines the effect on the agriculture economy if direct payments would be eliminated from the next Farm Bill while the second examines the potential impacts of extending the ethanol tax credit.

Eliminating direct payments is expected to increase the participation in ACRE or similar options in the next Farm Bill, have no effect on acres planted by crop, and reduce land values slightly. For more information go to Potential Impacts of Eliminating Direct Payments.

The ethanol tax credit article can be found at FAPRI U.S. Biofuel Baseline and impact of extending the $0.45 ethanol blenders credit. Although this article looks at the benefit and probable outcomes of extending the credit, the reader can infer what the probable outcome may be now that the tax credit has been voted out by the Senate.

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Farm Policy, July 2011
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Jun
16
2011

GIPSA Hog Contract Requirements

by Robert Moore, Attorney-Wright Law Co. LPA Dublin, Ohio The 2008 Farm Bill contained specific provisions that must be included in all hog production contracts. The Grain Inspection, Packers, and Stockyards Administration (GIPSA) defines hog production contracts as “any growout contract or arrangement under which a person or business raises and cares for swine according to the instructions of another person”. In essence, anyone raising, feeding, or growing hogs for another person or business is subject to these provisions. Four specific provisions must be included in all hog production contracts executed after June 18, 2008. The provisions are as follows: 1. The Grower may cancel the contract within three days after signing or within some other agreed to period. The method of notice and deadline for cancellation must be specifically provided. 2. Include a disclosure statement on the first page that clearly states that additional large capital investments may be required of the grower during the term of the contract. 3. Allow growers to opt out of arbitration provisions before entering a contract. 4. The venue for a contractual dispute shall be the federal judicial district in which the contract was performed and the choice of law shall be governed by the state in which the dispute arose (unless otherwise prohibited by the law of the state in which the contract was being performed). Contracts that were executed after June 18, 2008 but do not contain the...
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Farm Policy, July 2011, Legal Issues
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Jun
15
2011

USDA Announces Projects to Provide Increased Renewable Energy Production, Reduce Reliance on Foreign Oil

NE Ohio has been designated a BCAP project area!! See below news release Click here to access more information about Aloterra Energy and BCAP in Ohio WASHINGTON, June 15, 2011 — Agriculture Secretary Tom Vilsack announced today the establishment of four additional Biomass Crop Assistance Program (BCAP) project areas to promote the cultivation of crops that can be processed into renewable energy. Acreage in Arkansas, Missouri, Ohio and Pennsylvania will be designated to grow giant miscanthus, a sterile hybrid warm-season grass that can be converted into energy to be used for heat, power, liquid biofuels, and bio-based products. “Renewable, home-grown, clean energy from American producers is vital to our country’s energy future because it reduces our reliance on foreign oil and creates good-paying production jobs that cannot be exported,” said Vilsack. “Today’s announcement will make a significant contribution to rural America and create nearly 4,000 jobs, demonstrating the great economic potential the production of renewable energy holds for our rural communities.” It is estimated that each of the four project areas and conversion facilities would earn about $50 million per year. According to industry estimates, a large number of biorefinery, agriculture and support jobs will be created in each area. The estimates are: Ashtabula, Ohio - 1,210 jobs added; Paragould, Ark. - 750 jobs added; Aurora, Mo. - 960 jobs added; and Columbia, Mo. - 98...
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Farm Policy, July 2011
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Jun
03
2011

How Well Do Farmers Tolerate Risk? Part 1

By: Brian Roe, McCormick Professor, Department of Agricultural, Environmental and Development Economics, Ohio State University Flood and drought.  Late plantings.  Delayed harvesting.  Crazy price swings.  Dangerous working conditions.  Today’s successful farmers may have more in common with professional poker players than with the stolid managers of generations past as crucial decisions balancing risk and reward must be made on a regular basis and, often, on the fly.    So, has this constant exposure to risk and risky decisions made U.S. farmers better able to tolerate risk than other people?  Or has it gone the other way and made farmers more likely to want to avoid future risks?  One classic view of risk tolerance is that risk tolerant people seek entrepreneurial activities such as owning a small business or becoming otherwise self-employed.  Several studies over the years have validated this logic – risk seekers seek entrepreneurial activities. But farming isn’t exactly like other forms of small business ownership and self employment, is it?  Sometimes entering farming is more the outcome of intergenerational inertia than of a free, unfettered choice among all feasible professions.  I would argue that, more than other forms of small business, family ties are crucial to farming entry decisions because they often provide the key knowledge, experience and skills necessary to become a successful farmer.  And that’s not to mention the fact that...
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Farm Policy, June 2011
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May
31
2011

Cover Crop Rule Change for 2011 Only

Farmers who are growing a cover crop in Ohio have until June 1st to terminate the cover crop if they are planning to grow corn and until June 10th for soybeans. These rules also specify that only crops planted after the termination of cover crop growth will be made insurable. An inspection will be required for any acreage that has been planted to the insurable crop. These crop termination dates differentiate a crop following another crop (FAC acreage) from a crop following a cover crop (FCC acreage). For corn following termination of a grass cover crop (FCC acreage), this includes a two week waiting period to limit the allelopathic effect of the grass to dissipate before planting corn. This two week waiting period all but eliminates corn on FCC acres except possible some late corn silage for dairy producers. See http://www.rma.usda.gov/fields/il_rso/2011/526uwgmemo.pdf for the USDA informational memorandum.

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Farm Policy, June 2011
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May
19
2011

New Decision Aid to Determine Late Planting Options

By: Chris Bruynis, Extension Educator and Barry Ward, Leader Production Business Management With continued wet soil conditions throughout Ohio, farmers are evaluating whether to plant corn, switch to soybeans, or opt for preventative planting crop insurance payments.  OSU Extension has developed the decision aid, “Estimated Yield and Profit by Planting Date – Corn, Soybeans or Preventative Planting Crop Insurance” which is a downloadable Excel spreadsheet.   It allows farmers to enter their own production information to determine which choice might be best for their operation.  Many factors enter into this critical decision. Actual planting date and potential yield loss associated with later planting, relative yield potential of corn and soybeans of the farm, relative prices of corn and soybeans, market basis differences due to a later harvested crop, potential savings of crop inputs due to a later planting date, potentially higher costs of grain drying, and crop insurance APH yield and coverage level are some of the major factors impacting a producers decision. This decision aid allows users to enter their own assumptions about maximum yield potential, harvest market prices, input costs, and crop insurance coverage levels. Click here to download Decision Aid. The “Estimated Yield and Profit by Planting Date – Corn, Soybeans or Preventative Planting Crop Insurance” decision aid was created using historical yield data for Ohio to determine potential corn ...
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Farm Policy, Financial Management, June 2011
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May
05
2011

Crop Insurance: What are the Preventative Plant Rules?

By: Chris Bruynis, Assistant Professor & Extension Educator; Greg Schiefer, Scheifer Farm and Family Insurance; and Marlene McCreary, Farmers Mutual Insurance With the weather forecasters calling for more wet weather for the next ten days, farmers are starting to think about the preventative planting provisions in their crop insurance policies.  Although most crop insurance policies have some preventative plant provision, neither GRP nor GRIP policies have preventative plant coverage, so check with your agent. One good thing is that farmers have choices and do not have to rush into any decisions but need to be aware of their options before getting to busy in the field. The target date for corn to be planted is June 5th and farmers can either take preventative planting, switch to another crop, or still plant corn with a reduction in coverage. Claiming preventative planting probably will not be the first choice in 2011 because many farmers have already locked in favorable contract prices for their corn and will need to plant some corn to fulfill those obligations. But if farmers choose to take preventative plant they will need either 20% or 20 acres of a unit (whichever is smaller) to have not been planted this year.  Example: a farmer has 400 acres of corn insured, 20% of 400 would be 80 acres and since 20 acres is smaller, there would need to be at least 20 acres of preventative plant in order to file a claim.   The maximum numbers of acres that a farmer can cl...
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Farm Policy, Financial Management, May 2011
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May
04
2011

Opportunities for Beginning Farmers through using the Transition Incentive Program

By: Chris Bruynis, PhD, Assistant Professor & Extension Educator I have farmers nearing the end of their career frequently ask me “How is a young person supposed to enter into the business of farming?” Even though there are no easy answers, one  thought that comes to my mind is that these tenured farmers are going to have to assist with the transition to the next generation, even if it is not family.  To help farmers in their transition of their land to the next generation, the U.S.D.A. has a new program designed for retired or retiring owner or operator to transition expiring CRP land to a beginning or socially disadvantaged farmer who will return the land to production for sustainable grazing or crop production. This program is titled the, Transition Incentive Program (TIP) and provides annual rental payments to the land owner for up to two additional years after the date of the expiration of the CRP contract, provided the transition is not to a family member. The FSA factsheet can be found at http://www.fsa.usda.gov/Internet/FSA_File/tip051410.pdf So who qualifies as a beginning or socially disadvantaged farmer that is not family?  Based on USDA’s Farm Services Agency a beginning farmer is an individual or entity who has not operated a farm or ranch for more than 10 years. Likewise a socially disadvantaged (SDA) farmer is one of a group whose members have been subjected to racial, ethnic, or gender prejudice because of his or her identity as a member of ...
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Farm Policy, Farm Rents, May 2011
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May
03
2011

Rising Food Prices: What is Behind the Trend?

There is unrest around the world tied to some degree to the fact that food prices are rising. Here at home, prices are on the rise too, not enough to cause political upheaval, but enough to cause some unease. Why are food prices higher? How bad is it? What can be done? Ohio State University’s Ian Sheldon and American Farm Bureau’s Bob Young discuss these and other related issues in this audio podcast recorded by Ohio Farm Bureau.

http://ofbf.org/media-and-publications/listen/4/602/

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Farm Policy, May 2011
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Apr
13
2011

Suggestions for Current Farm Safety Net Programs While Cutting Cost

This paper presents proposals for the current farm safety net. They are intended to stimulate discussion, and can be considered individually or in any combination. Some combinations would need to address potential overlap issues. Each proposal is focused on
the management of risk and is guided by the following principles:

(1) Public assistance at some level as determined by government is provided only when a risk occurs that results in a financial loss.

(2) Public assistance should not exceed a farm‘s loss associated with occurrence of a risk.

These principles are derived from the principles for a risk management farm safety net developed in the following paper: Designing a Safety Net for 21st Century Farming (Carl Zulauf,)

Carl Zulauf, Ag. Economist, Ohio State University, OSU AED Economics

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April 2011, Farm Policy, Newsletters
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Apr
12
2011

DESIGNING A SAFETY NET FOR 21ST CENTURY FARMING

This paper addresses the question, ―Starting from a blank blackboard, what, if any farm safety net is acceptable based on economic principles and the current 21st Century status of the U.S. farm sector?‖ Incomplete farm insurance markets are identified as a rationale for discussing a 21st Century U.S. farm safety net. The incomplete insurance markets are attributed to the existence of systemic risk in U.S. farming. A farm safety net is proposed to
address the incomplete insurance markets that result from systemic risk
Click here to read the entire paper.

by Carl Zulauf, Ag. Economist, Ohio State University, OSU AED Economics

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April 2011, Farm Policy, Newsletters
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Apr
11
2011

Market Forces and Changes in the Plant Input Supply Industry

The plant input supply industry is composed of many diverse segments and companies that supply farmers with seed, nutrients, pesticides, machinery, capital, labor, and many other inputs. We explore the impact of the major forces driving change using examples from different segments and companies of the industry. Click here to read the entire article.

Kent Olson (kdolson@umn.edu) is Professor, Department of Applied Economics, University of Minnesota,St. Paul, Minnesota. Michael R. Rahm (mike.rahm@mosaicco.com) is Vice President, Market and Strategic Analysis, The Mosaic Company, Plymouth, Minnesota. Michael Swanson (Michael.J.Swanson@wellsfargo.com) is Vice President and Agricultural Economist, Wells Fargo, Minneapolis, Minnesota.

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April 2011, Farm Policy
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Apr
11
2011

Forces Affecting Change in Crop Production Agriculture

Major crop production businesses face significant change today, including increasing and diverse global demand, new technologies, resource limitations and heightened societal expectations. Porter’s Five Forces analysis can be used to examine these economic conditions, opportunities, and threats. Crop production businesses are adapting to this changing competitive landscape. Click here to read the entire article.

Elizabeth A. Bechdol (beth.bechdol@icemiller.com), is Director of Agribusiness Strategies, Ice Miller LLP, Indianapolis, Indiana. Alan Gray (gray@purdue.edu) is Professor Department of Agricultural Economics and Director of the Center for Food and Agribusiness and MS-MBA program, Purdue University, West Lafayette, Indiana. Brent Gloy (bgloy@purdue.edu), Associate Professor Department of Agricultural Economics and Associate Director of Research of the Center for Food and Agricultural Business, Purdue University, West Lafayette, Indiana.
© 1999-2010 Choices.

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April 2011, Farm Policy, Newsletters
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Mar
17
2011

PUCO rescinds administrative rules applying to private commercial motor carriers

For Immediate Release Contact: Matt Butler 614 | 466 7750 COLUMBUS, OHIO (March 16, 2011) - The Public Utilities Commission of Ohio (PUCO) today rescinded administrative rules applying to private commercial motor vehicles with a gross vehicle weight (GVW) between 10,001 and 26,000 pounds operating in intrastate commerce. "The PUCO has received feedback from numerous interested parties, including lawmakers and industry members, that these rules deserve additional review," said PUCO Chairman Todd A. Snitchler. "It is important for the PUCO to operate at the speed of business and implement regulations that promote safety while at the same time allow businesses to compete and operate efficiently. Today's decision is a step in that direction." In 2008, the Commission approved amendments to Ohio's motor carrier safety rules that applied PUCO jurisdiction to private commercial motor vehicles with a GVW between 10,001 and 26,000 pounds that transport property or passengers on a not-for-hire basis within Ohio. The Commission later delayed active enforcement of the rules until 2012 while it conducted an outreach program to further educate affected carriers. The PUCO hosted a series of listening sessions across Ohio this winter to gather input from affected carriers about the operational and financial costs of compliance with the rules. Based on feedback from interested parties, the Commission finds it prudent to rescind the rules while changes to the rules are considere...
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April 2011, Farm Policy
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