Agriculture News From the Georgia Farm Radio Network Newsroom
last updated Friday, November 20, 2009 at 2:52 pm
FARM BUREAU URGES TIMELY DISASTER PAYMENTS FOR 2009 CROPS
Farmers and ranchers in many areas of the nation have been hit hard by late planting and a protracted, wet harvest season and they would benefit greatly from the Agriculture Department maximizing farm bill emergency assistance programs, according to the American Farm Bureau Federation.
“Farmers are experiencing both quality and quantity losses and many still do not have crops out of the fields,” AFBF President Bob Stallman wrote in a letter to Secretary Tom Vilsack.
When a disaster of this magnitude strikes, “getting help to farmers quickly can make the difference between a farmer filing for bankruptcy and holding onto the farm in hopes of passing it on to the next generation,” Stallman wrote.
In light of the situation, Stallman urged Vilsack to maximize its use of farm bill programs such as Supplemental Revenue Assistance Payments and Emergency Loans to aid farmers and ranchers.
Further, Stallman requested that USDA “act as it has in the past and provide farmers and ranchers with estimated fast-tracked partial disaster payments for the 2009 crop year as quickly as possible.”
AFBF also urged USDA to consider using its authority under the Consolidated Farm and Rural Development Act to maximize Emergency Loans program funds by offering as many farmers as possible guaranteed (rather than direct) loans.
“Guaranteeing private loans versus providing them directly will help USDA stretch limited funding to assist the largest number of producers possible in a fiscally responsible way,” Stallman said. “While guaranteed loans certainly come with additional logistical difficulties, we believe these hurdles are worth overcoming if it will allow for additional funds to reach those producers most in need.”
The 2008 farm bill included a standing disaster program for crop years 2008 to 2011, in the hopes that this program would provide more consistent and timely assistance to farmers when they are hit by natural disasters. However, this program has yet to be implemented, Stallman noted.
While agricultural credit appears to have weathered the financial downturn better than many other sectors, Farm Bureau is concerned that those producers who have faced multiple years of disaster will feel the brunt of the nation’s credit crisis as they visit their lenders to obtain operating credit for the 2010 crop year.
As harvest season draws to a close and final crop yield and quality data becomes available, AFBF will continue to monitor the situation closely and explore other options that might prove beneficial in helping farmers stay on their land, despite the disasters they have faced this year.
CHINESE DEVELOP TASTE FOR U.S. PECANS
As the holiday season approaches, many American home bakers will be looking for Georgia pecans to add to pies, casseroles or cookies. They won’t be the only ones. Chinese consumers will be buying, too.
“It varies, but last year Georgia growers sold close to 50 percent of their pecan crop to China,” said Greg Fonsah, an economist with the University of Georgia College of Agricultural and Environmental Sciences. “The Chinese high demand for pecans has not significantly impacted prices nationally. But it is likely that individual growers and perhaps some states may take advantage of the Chinese demand and improve their profit margins.”
Wholesale prices for pecans vary from market to market and from cultivar to cultivar. In Los Angeles, for example, pecans from Alabama, Georgia and Texas are going for between $1.15 and $1.20 per pound, Fonsah said. In New York, Georgia pecans are being sold wholesale for a $2.10 per pound.
Setting prices
Most of Georgia’s crop comes from improved varieties, which bring higher prices than native and seedling nuts. Fonsah says several factors tie into the price of pecans.
“For instance, a cultivar like Desirable might command better prices than Sumner in one area and vice versa,” he said. “Also, some states might get better prices than others depending on quality, overall cosmetic appearance, negotiation skills of the grower and targeted markets.”
In 2008, Florida growers got $1.84 per pound for their nuts, compared to the $1.47 per pound Georgia growers received, he said. But in 2007, Georgia growers got $1.06 per pound and Florida nuts sold for 96 cents per pound on average.
Georgia battles with Texas over the No. 1 spot in pecan production. “Georgia may still be No. 1, but when we get hit with low production due to disease and drought or in ‘off’ years, Texas is No. 1,” he said. “This is an ‘on’ year for pecans, though.”
Georgia growers will harvest an estimated 90 million pounds of pecans this year, or 29 percent more than last. Nationally, production is up 59 percent, Fonsah said.
“This will definitely affect overall prices,” he said. “The price of nuts is lower during a good production year and higher during a bad production year. Volume has a direct impact on prices, and since pecans have an alternate-bearing pattern, this helps fluctuate the prices.”
That’s simple supply and demand economics. Buyers who sell to the gift-box market get the highest prices for pecans and other nuts, said CAES agricultural economist Wojciech Florkowski.
“These are always the best quality nuts in terms of kernel size and color,” he said.
He says the current economic situation in the U.S. will also affect pecan sales this holiday season.
“The demand for pecans and nuts in general will be affected by household incomes,” Florkowski said. “Incomes have declined as compared to previous years, but older consumers are continuing to buy nuts with their health benefits in mind.”
CLASSIC THANKSGIVING DINNER COST DECLINES FOR 2009
Menu items for a classic Thanksgiving dinner including turkey, stuffing, cranberries, pumpkin pie and all the basic trimmings dropped 4 percent in price this year, according to the American Farm Bureau Federation.
AFBF’s 24th annual informal price survey of classic items found on the Thanksgiving Day dinner table indicates the average cost of this year’s feast for 10 is $42.91, a $1.70 price decrease from last year’s average of $44.61.
“As we gather this Thanksgiving for food and fellowship, it’s fitting to take a moment to recognize and give thanks, not only for the abundant food we enjoy as Americans, but for the hard-working farm and ranch families across our nation who produce it,” said AFBF President Bob Stallman.
The AFBF survey shopping list includes turkey, bread stuffing, sweet potatoes, rolls with butter, peas, cranberries, a relish tray of carrots and celery, pumpkin pie with whipped cream, and beverages of coffee and milk, all in quantities sufficient to serve a family of 10.
The cost of a 16-pound turkey, at $18.65 or roughly $1.16 per pound, reflects a decrease of 3 cents per pound, or a total of $.44 per turkey compared to 2008.
Milk, at $2.86 per gallon, dropped $.92 and was the largest contributor to the overall decrease in the cost of the 2009 Thanksgiving dinner.
“Consistent with the retail food price declines seen throughout the year, consumers will pay just a bit less for their Thanksgiving feast this year,” said Jim Sartwelle, an AFBF economist. “Consumers are benefiting at the grocery store from significantly lower energy prices and the effects of the economic slowdown. Again this year, the cost per person for this special meal is less than a typical ‘value meal’ at a fast-food outlet,” Sartwelle said.
Other items showing a price decrease this year were: a ½ pint of whipping cream, $1.55; a dozen brown-n-serve rolls, $2.08; a 1-pound relish tray of carrots and celery, $.72; and a 12-oz. package of fresh cranberries, $2.41. A combined group of miscellaneous items, including coffee and ingredients necessary to prepare the meal (onions, eggs, sugar, flour, evaporated milk and butter) also dropped in price, to $2.50.
Items that increased slightly (less than 5 percent) in price this year were: a 14-oz. package of cubed bread stuffing, $2.65; two 9-inch pie shells, $2.34; and a 30-oz. can of pumpkin pie mix, $2.45.
Two items, green peas and sweet potatoes, stayed the same in price at $1.58 for one pound and $3.12 for three pounds, respectively.
Sartwelle said despite retail price increases during the last year or so, American consumers have enjoyed relatively stable food costs over the years, particularly when adjusted for inflation.
AGCO TO PHASE OUT ORANGE TRACTOR LINE
According to Agriculture Online, Georgia-based AGCO Corporation will be phasing out its orange tractor line, though it said it will be marketing AGCO tractors with dealer partners through 2011.
The driving force behind the decision is to fit its North American brands into the corporate strategy of focusing on fewer brands to increase market share, company sources say.
Recently, Martin Richenhagen, AGCO CEO, said that "we are pretty much on schedule with the reduction of our many brands in North America and we will bring it down to two only, and they are Massey Ferguson and Challenger. All the rest will be integrated into those two brands."
"By focusing resources on fewer brands, AGCO can improve the impact of its marketing and engineering, and also improve its global competitiveness," says Robert Crain, senior vice president & general manager, North America.
To accomplish this goal, AGCO says it will emphasize strong full-line brands and a realignment of its traditional brands through co-branding. This also means reducing the number of brands it offers in North America and phasing out certain brands like AGCO, with the ultimate goal being to have two full line brands-- Massey Ferguson and Challenger.
The strategy raises questions for farmers and dealers alike. What will become of AGCO dealers? Will you still be able to get customer support for your AGCO tractor? Does this mean other brands under the umbrella will follow?
Founded in 1990, AGCO Corporation was first called Gleaner-Allis Corporation, then renamed Allis-Gleaner Corporation, or AGCO. The design for tractors and combines was originally created by Allis-Chalmers Corporation before it was sold to Deutz-Allis. The Deutz-Allis tractor line was renamed AGCO-Allis, and Gleaner became a brand of its own for combines.
Once the A in AGCO disappears, it's only natural to wonder how long before the rest of the name might be eliminated.
While there are still many details to work out, company representatives make it clear that the orange tractor is the only brand that is going to be phased out.
FUNDRAISER STARTED TO KEEP AG MAGNET SCHOOL OPEN
It's the only magnet school of its kind in the country, one that gives kindergarteners through 12th graders a look at the world of agriculture.
Now, the Ware Magnet School of Agriculture, Forestry and Environmental Sciences is slated to close because of budget cuts. But efforts are under way to raise money to keep the school open.
On Tuesday night, the school board decided the popular magnet school would shut down, a decision that brought many students to tears in the packed meeting room.
Parents said the school offers students hands-on experience in the agricultural and environmental fields they eventually want to work in.
"They raise cows here and hogs here and goats," parent volunteer Susanne Gibson said. "These students have found something they want to do for the rest of their lives, and they're afraid they won't realize it anywhere else."
Barry Deas, the one school board member who voted to keep the school open, said the school is the sixth-ranked high school in Georgia for academics and is also a major economic force in the community.
"That's not available anywhere else in the country," Deas said. "This is the only K-12 agricultural magnet school in the United States. We're very unique in the programs we offer."
The community is trying to raise $750,000 to keep the school open, and locals said there's not a lot of time to raise the money.
More information about donations is available by calling (912) 281-4974.
PECANS FOR SOLDIERS PROGRAM SENDS GEORGIA PECANS TO TROOPS
South Georgia Pecan Company in Valdosta plans on sending bags of pecans to soldiers serving in Afghanistan and Iraq as part of their new Pecans for Soldiers program.
You can purchase a bag of pecans for five dollars and the company will ship them overseas.
"We definitely want them to feel appreciated and know that we appreciate what they're doing, the sacrifice they're making for Christmas," said Paul Joseph, Vice President of Sales with South Georgia Pecan Company. "We know they're away from their family and they're away from home."
Joseph hopes to send at least a thousand bags of pecans to troops in all branches of the military over the holiday season. The first batch is slated to be shipped to soldiers later this month.
People who wish to participate in the program can purchase a bag of pecans the following ways:
-Stop by South Georgia Pecan Company at 401 E. Hill Avenue in Valdosta and pick a bag out, purchase it and leave a personalized message for the troop on the bag.
-Call the South Georgia Pecan Company at (229) 244-1321 and place an order over-the-phone using a credit card.
-Send a check to the South Georgia Pecan Company at the above listed address for $5. In the memo line of the check write "Pecan for Soldiers."
People can purchase more than one bag. Each additional bag will be another $5.
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KMC DONATES PEANUT PICKER TO UGA TIFTON CAMPUS
Peanut picking recently got a little easier and safer on the University of Georgia Tifton Campus thanks to the donation of a used two-row peanut combine refurbished by the Kelley Manufacturing Company in Tifton.
The combine was given to the UGA Peanut Team last year by Jimmy Cheney. The Calhoun County native and former board of director for the Georgia Peanut Commission passed away earlier this year. A two-row combine is not common anymore, but it’s what’s best used to harvest small test plots like those planted by College of Agricultural and Environmental Sciences researchers.
But the equipment needed some work, said John Beasley, CAES peanut agronomist in Tifton.
KMC donated time, effort and resources to refurbish it, engineering safety features and redirecting the blower away from workers who stand on the picker to collect plot samples as it travels down rows.
“We have great respect for the work Dr. Beasley and UGA does for peanuts. They have been helpful to us in many ways. We need to know how peanuts especially these newer varieties harvest. Even if they don’t immediately know the answers, they are always willing to find out for us,” said E. Lanier Carson, KMC chairman of the board.
“The college is very grateful for this gift and for the work donated to refurbish it into what is now practically a new piece of equipment in many ways. The UGA Peanut Team is the best in the world. The research that this picker will directly contribute to will help growers across the state and country continue to produce a safe and sustainable peanut crop,” said Scott Angle, CAES dean and director.
CHRISTMAS TREE FARMS OFFER FRESH TREES, GREAT EXPERIENCES
Many Georgians remember hiking into nearby woods as children to chop down that most iconic of all holiday decorations: the family Christmas tree. These days, a suitable one is less likely found in the backyard. But the experience can still be found, along with that perfect tree, among the acreage at a choose-and-cut tree farm.
“It’s all about the experience,” said Liza Smith, owner of 7 G’s Farm in Nicholson, Ga. “Families come out here and find their perfect Christmas tree together. It is really amazing to watch the excitement in children.”
Given a saw and direction, shoppers navigate the farm. Along with spotting deer frolicking among the trees or enjoying a chance encounter with Santa, visitors take home more than just a tree.
“We describe it as an oxygen-enriched atmosphere,” said Greg Smith, the farm’s manager. “One acre of Christmas trees provides enough oxygen for 18 people.”
With over 6,000 trees, the air at 7 G’s Farm is rich. The farm sells Leyland Cypress ranging from 5 feet to 13 feet tall for $6 a foot. Last year, they sold nearly 1,000 trees.
“Our business is growing every year,” Smith said. “But, we saw people opting for smaller, more modest trees last year, probably in response to the economy.”
Christmas tree farming in Georgia brought more than $8.5 million to the state’s economy last year, according to the annual Georgia Farm Gate Value Report from the University of Georgia Center for Agribusiness and Economic Development. Most Georgia tree farms offer Cypress varieties, but some offer Virginia Pine, White Pine or Redcedar trees, too.
Choose-and-cut farms are the perfect place to purchase the freshest tree possible.
“Fresh trees can last from the first of November through Christmas, if you keep it supplied with water,” said David Moorhead, an extension specialist with the UGA Warnell School of Forestry and Natural Resources.
A six-foot tree can take up to a gallon of water a day, Moorhead said.
“Fill the tree stand when you bring it in and check it twice a day,” he said. “If you let the tree dry out, the base will seal up and it will be difficult to get any water into the tree.”
Dry trees can be a fire hazard. Keeping an adequate water supply flowing to the tree is paramount. Keep trees away from heat sources such as vents or fireplaces to help prevent drying.
Trees cut and shipped to retail outlets for the holiday season are typically grown in states further north or west of Georgia. Many spend weeks without water. To test for freshness, shake the tree vigorously before buying it. If a shower of needles falls, move on.
“If it looks wilted, select a fresher tree,” Moorhead said. “If it doesn’t look good when you buy it, it won’t resurrect itself at your house.”
Regardless of where you buy your Christmas tree, cut half an inch off the bottom before placing it into a tree stand. Giving the tree a fresh cut will help it take up as much water as it can and stay fresher longer.
Keep your ceiling height in mind when selecting a tree. Be sure to get a tree that will fit in your house. If you have an eight-foot ceiling, a seven-foot tree is about as large as you can fit.
“There is nothing worse than getting a perfect tree home and realizing it won’t fit,” Moorhead said. “Hacking off the bottom of the tree to make it fit is not a good idea.”
To find a Georgia choose and cut Christmas tree farm near you, visit Georgia Farm Bureau's Certified Farm Market page and check out our CFM brochure.
SENATE PANEL PASSES FOOD SAFETY BILL
A Senate committee on Wednesday approved a far-reaching food safety bill that would represent the biggest overhaul of the nation's food safety system in decades.
It would require the U.S. Food and Drug Administration to inspect food-processing plants at least once every four years -- once a year for plants that handle high-risk foods.
It would also require all food manufacturing plants to have safety programs in place, and importers would have to verify the safety of foods they bring into the country.
The FDA also would be able to instigate mandatory recalls of products. Currently, the FDA can only encourage companies to make voluntary recalls.
The Senate Health, Education, Labor and Pensions Committee passed a version of the bipartisan bill -- U.S. Sen. Johnny Isakson (R-Ga.) is a co-sponsor -- despite concerns by some lawmakers over the potential effects of errant recalls on farmers and others.
Sen. Kay Hagan (D-N.C.) pointed out how a recent salmonella scare that was incorrectly tied to tomatoes cost one farmer in her state $750,000 in lost sales.
"One false recall can put a family [farm] out of business," she said.
While the agriculture industry has expressed some concerns about added costs because of increased federal regulation, Isakson said he thought opposition was relatively limited, in part because farmers, food processors and others realize the possible business risks from food-borne illnesses.
"This bill is a good balance between the processors, the producers and the growers," Isakson said. "There are some [agriculture] concerns ... and we'll certainly work on those."
The U.S. House in July overwhelming passed its version of the food safety legislation.
FARMERS EMBRACE BIOTECH FOR MANY BENEFITS
According to USDA, U.S. farmers have embraced biotech varieties of soybeans, cotton and corn at the rate of 91 percent, 88 percent and 85 percent, respectively. This is because agricultural biotechnology allows farmers to grow more food on less land using farming practices that are more cost-effective and environmentally sustainable.
Despite these convincing statistics, a report titled “Impacts of Genetically Engineered Crops on Pesticide Use in the United States: The First Thirteen Years,” claims “farmers are increasingly critical of GE crops.”
However, Sharon Bomer Lauritsen, executive vice president, food and agriculture for the Biotechnology Industry Organization (BIO), said farmers continue to embrace biotechnology because of many benefits, specifically crops that yield more per acre with lower production costs while using farming practices that better protect the land and environment.
“This is especially true for American farmers, four out of five of whom choose biotech crop varieties over conventional crops that require more production inputs such as sprays to control insect pests and tilling to control weeds,” Lauristen said.
“Thanks to biotechnology, farmers have adopted no- and reduced-tillage systems that utilize herbicidal weed control rather than plowing. This is delivering important benefits in the form of improved soil health and water retention, reduced runoff, fuel conservation, reduced greenhouse gas emissions and more efficient carbon storage in the soil.”
