Agriculture Posts

USDA Doubles its Funding for Climate Mitigation Projects

The U.S. Department of Agriculture (USDA) is ramping up its commitment to climate mitigation, announcing a remarkable $5.7 billion in funding for conservation efforts over the next year. This represents a significant doubling of the amount allocated during the previous fiscal year, highlighting an unprecedented interest in USDA’s stewardship programs. “We’re confident that we …

The U.S. Department of Agriculture (USDA) is ramping up its commitment to climate mitigation, announcing a remarkable $5.7 billion in funding for conservation efforts over the next year. This represents a significant doubling of the amount allocated during the previous fiscal year, highlighting an unprecedented interest in USDA’s stewardship programs. “We’re confident that we can continue to get the support out to conservation-minded producers,” said Agriculture Secretary Tom Vilsack.

With the inclusion of $2 billion in routine funding for existing conservation programs, the total investment in conservation projects for fiscal 2025 could reach up to $7.5 billion. This would mark the largest single-year expenditure by the USDA for land and water conservation initiatives.

The newly earmarked climate funding comes from a broader $19.5 billion package designated for USDA stewardship programs under the 2022 climate, health care, and tax legislation. The breakdown of this funding includes:

  • $2.8 billion for the Environmental Quality Improvement Program, which offers cost-sharing for conservation efforts.
  • $1.4 billion for the Regional Conservation Partnership Program, aimed at enhancing land and water stewardship across various landscapes.
  • $943 million for the Conservation Stewardship Program, the USDA’s pioneering working-lands initiative.
  • $472 million for the Agricultural Conservation Easement Program, which protects vital lands from development.

The issue of climate mitigation is currently a contentious topic in discussions around the new farm bill. The Republican-backed farm bill approved by the House Agriculture Committee suggests allowing climate funds to be used for projects that do not specifically sequester carbon or lower greenhouse gas emissions. This has drawn criticism from Senate Agriculture Chairwoman Debbie Stabenow, who opposes the removal of “guardrails” on spending.

So far, the USDA has committed approximately $11.4 billion—or 58%—of the climate mitigation funding. This includes $2.8 billion allocated in fiscal 2023 and nearly $2.9 billion in fiscal 2024, according to a USDA fact sheet released in August.

In an effort to further enhance these initiatives, the USDA has also introduced 14 new practices eligible for climate funding. These practices include:

  • Mulching with natural materials.
  • Grazing management designed to enhance wildlife food and habitat.
  • Brush management techniques tailored for arid regions.

In addition to these conservation efforts, the USDA announced $852 million in loans and loan guarantees aimed at improving electric infrastructure and smart-grid technology across 14 states. Furthermore, $443 million will be allocated for projects related to drinking water, sewage disposal, and stormwater management in 24 states.

This significant investment from the USDA reflects a growing commitment to support sustainable practices and address climate challenges, providing vital resources for producers and communities alike.

 

View the full article at: USDA doubles its funding for climate mitigation projects (agriculture.com)

Extension Demonstration Shows Drone’s Usefulness on Farms

Drone technology is rapidly transforming the agricultural landscape, offering farmers innovative solutions to improve their operations. Kevin Brooks, a Farm Management Educator with the University of Illinois Extension’s Fulton-Mason-Peoria-Tazewell Unit, is at the forefront of this movement, assisting local farmers in leveraging drones to address various challenges and optimize efficiency.   Monitoring Crop Health …

Drone technology is rapidly transforming the agricultural landscape, offering farmers innovative solutions to improve their operations. Kevin Brooks, a Farm Management Educator with the University of Illinois Extension’s Fulton-Mason-Peoria-Tazewell Unit, is at the forefront of this movement, assisting local farmers in leveraging drones to address various challenges and optimize efficiency.

 

Monitoring Crop Health

Throughout the growing season, crop health can fluctuate based on field conditions. Traditional methods, like walking or driving along the edges of a field, provide limited insights. Drones, however, offer a powerful alternative, allowing producers to monitor entire fields from above.

Each field often contains diverse soil types, leading to variations in crop performance across different areas. Additionally, pressures from weeds, pests, and diseases can differ widely. Brooks emphasizes that the key to effectively using drones in farming lies in quickly identifying problem areas, which can then be investigated more closely.

“In a 160-acre field, a quick aerial assessment from 200 feet can reveal a wealth of information,” Brooks explains. “The pilot can then lower the drone to conduct a more detailed examination of specific areas.”

 

Precision Problem Identification

A closer look often yields critical insights. For instance, if an invasive weed or disease is detected, the pilot can utilize Real Time Kinematic (RTK) positioning technology to pinpoint the exact location for targeted intervention. In contrast, less precise positioning methods may only highlight a general area for treatment.

Brooks notes, “Drones have a wide range of applications on the farm. They can identify wet spots that need drainage or areas suffering from nitrogen deficiencies, among other issues. Depending on the need, drones can be simple machines for quick assessments or more sophisticated tools for detailed mapping.”

 

Comprehensive Field Analysis

In addition to targeted inspections, Brooks employs Extension farm drones to monitor overall field health. Using platforms such as Drone Deploy and Agremo, farmers can gain a comprehensive view of their fields, identifying problems and conducting valuable crop stand counts. “Taking a stand count is quick and efficient,” Brooks states. “However, a thorough assessment of an entire field can be time-consuming.”

Mapping a field with high detail often involves an autonomously flying drone capturing thousands of images that are later stitched together into a comprehensive map. For an 80-acre field, this mapping process can take nearly an hour, with additional time required for uploading and processing the photos.

 

Drone technology is reshaping how farmers manage their operations, providing them with the tools needed to enhance crop health and productivity. By utilizing drones effectively, farmers can gain deeper insights into their fields, leading to more informed decision-making and improved outcomes. As this technology continues to advance, its role in agriculture will undoubtedly grow, offering even greater potential for efficiency and success in farming.

 

View this full article at: Extension demonstration shows drone’s usefulness on farms | AGDAILY

Kelly, Thompson Lead Introduction of The Supporting Innovation in Agriculture Act

The agriculture industry is taking a significant step forward with the introduction of the bipartisan Supporting Innovation in Agriculture Act (H.R. 9263). This legislation, introduced by U.S. Representatives Mike Kelly (R-PA), Mike Thompson (D-CA), and a bipartisan group of colleagues, aims to boost innovation in farming by providing tax incentives to specialty crop producers. …

The agriculture industry is taking a significant step forward with the introduction of the bipartisan Supporting Innovation in Agriculture Act (H.R. 9263). This legislation, introduced by U.S. Representatives Mike Kelly (R-PA), Mike Thompson (D-CA), and a bipartisan group of colleagues, aims to boost innovation in farming by providing tax incentives to specialty crop producers. The bill is designed to help farmers adopt cutting-edge technologies, enhancing both productivity and sustainability in U.S. agriculture.

 

Key Benefits of the Act

As agriculture remains a critical economic driver in states like Pennsylvania and California, the Supporting Innovation in Agriculture Act focuses on the long-term success of specialty crop producers. By offering a 10-year investment tax credit, the bill helps alleviate the high upfront costs associated with implementing precision agriculture and controlled environment agriculture technologies. These innovations can increase the domestic production of fruits, vegetables, and other specialty crops, while improving supply chain resilience, environmental sustainability, and food affordability for consumers.

Rep. Kelly emphasized the importance of the bill for Pennsylvania’s agricultural economy, which supports one out of every ten jobs in the state. “The Supporting Innovation in Agriculture Act will allow for farmers and agricultural leaders to not only succeed today but also to harness innovative technologies to ensure future success,” Kelly said.

Rep. Thompson echoed this sentiment, noting the crucial role specialty crop producers play in California’s economy. “These tax incentives will help bolster our specialty crop industry, keeping our farmers competitive on the world stage,” he stated.

 

A Bipartisan Effort to Strengthen the Food Supply

The bill has drawn widespread support from various industry leaders and organizations. Tom Stenzel, Executive Director of the CEA Alliance, praised the legislation for filling a critical policy gap. “It ensures that producers can leverage innovative technologies to grow more with less,” he remarked. Ted McKinney, CEO of the National Association of State Departments of Agriculture, added that the bill will help strengthen fresh food supply chains by enabling producers to grow more food with fewer resources.

This new legislation comes at a time when the U.S. food supply faces mounting challenges, including supply chain disruptions, extreme weather conditions, and rising import pressures. By encouraging the use of advanced farming technologies, the Supporting Innovation in Agriculture Act aims to safeguard domestic food production, improve sustainability, and reduce reliance on imports.

 

Broad Support Across the Industry

The Supporting Innovation in Agriculture Act has gained the backing of over 50 national and state organizations, including the International Fresh Produce Association and the Agricultural Retailers Association. It is also supported by agriculture secretaries and commissioners from more than 20 states, highlighting the broad recognition of the need for innovation in agriculture.

As this legislation moves forward, it promises to play a vital role in enhancing the resilience of America’s fresh food supply and helping farmers thrive in an increasingly competitive global market.

 

View the full article at: Kelly, Thompson Lead Introduction of The Supporting Innovation in Agriculture Act – Perishable News

Look Out for This Language in Your Farm Equipment Purchase Agreement

Watch Out for This Language in Your Farm Equipment Purchase Agreement You’ve just finalized a deal for a new tractor at your local dealership. Although the tractor is still in production and you can’t take it home yet, you and your salesperson sign a purchase agreement. When it’s time to pick up your new …

Watch Out for This Language in Your Farm Equipment Purchase Agreement

You’ve just finalized a deal for a new tractor at your local dealership. Although the tractor is still in production and you can’t take it home yet, you and your salesperson sign a purchase agreement.

When it’s time to pick up your new tractor, the dealer informs you that your trade-in has been reappraised at a lower value due to changes in the market. Is this allowed? (Find out below!)

Contracts, like purchase agreements, are filled with legal terms designed to protect both buyers and sellers. However, these terms can often be confusing or seem unnecessary. Successful Farming reviewed purchase agreements from major equipment manufacturers and consulted John Schwarz, a farmer and agricultural law attorney in Indiana, to interpret common clauses.

 

Key Considerations for Farmers Before Signing a Contract

Equipment Purchase Agreement Terms “When trade-in equipment is not delivered to the seller until the purchased equipment is delivered, the trade-in equipment may be reappraised at that time, determining its final value.”

Schwarz explains that this clause allows the dealer to reappraise your trade-in if time passes between the agreement and when the new equipment arrives. This change in value might not be due to increased wear or usage but simply due to market fluctuations or the dealer’s updated assessment.

If the timeline isn’t specified, Schwarz notes it generally comes down to what is “reasonable.” For instance, reappraising a tractor from $100,000 to $50,000 in just a few days solely based on market conditions or additional hours would be hard to justify.

Cancellation Rights “When the reappraised value is less than the original trade-in value, the buyer can cancel the agreement before the new equipment is delivered and the trade-in is transferred to the dealer.”

According to Schwarz, this means you can cancel the deal if you’re unhappy with the reappraisal, but you must act before the new equipment is delivered and the trade-in is handed over. This creates a tricky situation, as the dealer can reappraise once they have your trade-in, but at that point, you no longer have the right to cancel.

“Farmers typically continue using their trade-in equipment until the new equipment arrives. To avoid being locked into a reappraised value you’re not happy with, consider taking the trade-in to the dealership for a reappraisal before you receive the new item,” Schwarz advises.

Force Majeure (Acts of God) “The seller is excused from delays in delivery due to strikes, work stoppages, material shortages, or causes beyond their control, including acts of God.”

Schwarz suggests ensuring this clause applies to both parties. He recommends changing “seller” to “parties” and having the dealership representative initial the change.

Waiver of Notification “This clause states that the buyer waives the right to demand notice of payment or the dealer’s obligation to show diligence in collecting payments.”

Schwarz explains this clause means the buyer is waiving certain rights regarding payment notices and defenses in collection disputes. However, these rules can vary by state, and in most cases, the dealer would still need to take legal action for non-payment and repossession of equipment.

Binding on Heirs and Assigns “This agreement is binding on the parties involved and their heirs, personal representatives, successors, and assigns.”

If a farmer transfers equipment to an LLC, passes away, or transfers it to another party, the contract remains binding on the new owner, according to Schwarz.

Right to Inspection “Upon delivery, the buyer may inspect and reject the goods if they do not meet the order’s requirements. If rejected, the buyer may seek reimbursement, credit, repair, or replacement, or may correct the goods themselves and charge the costs to the seller.”

This provision aligns with the Uniform Commercial Code (UCC), which gives buyers the right to inspect goods after delivery and reject those that are unsatisfactory. “This is good because it allows for inspection after delivery,” says Schwarz. “Farmers won’t have to inspect the tractor on the assembly line; instead, they can inspect it once it arrives at their farm.”

 

Common Contract Clauses

Schwarz also highlighted general clauses commonly found in contracts:

No Waiver of Rights “A failure to enforce any term of the agreement doesn’t waive the right to enforce it later.”

This means that even if one party overlooks an issue (like a missed delivery date), they still retain the right to enforce other terms of the contract.

Non-Drafting Party “Each party agrees that, even though one party printed and assembled the contract, it reflects the terms agreed upon by both parties. Neither party is considered the drafter in the event of ambiguity.”

“This ensures the contract won’t be interpreted against the dealer just because they drafted it,” says Schwarz.

Governing Law and Venue “This agreement is governed by Indiana law, and any dispute will be heard in the county where the land is located.”

Schwarz stresses that farmers should pay attention to this clause. If a farmer buys equipment out of state, the contract might require disputes to be handled in that state. “You’d want the lawsuit to occur where the equipment is used, not where it was bought,” he says.

Severability Clause “If any provision is found to be invalid, the rest of the contract remains enforceable.”

This protects the agreement from being entirely voided if one clause is deemed unenforceable.

Entire Agreement “This contract represents the full agreement between the parties. Any changes must be made in writing and signed by both parties.”

Schwarz emphasizes that any verbal agreements or promises made outside the contract are not enforceable unless they’re written into the contract. He advises farmers to include all agreements in the contract and have both parties sign or initial any changes.

Notice Requirements “Any notices must be sent by certified or registered mail.”

To ensure effective communication, Schwarz suggests sending written notices, such as emails or text messages, which courts may accept as sufficient.

No Assignment Without Consent “Neither party can transfer their rights or obligations without the other’s written consent.”

“This is good for farmers,” says Schwarz. “You don’t want the dealer to transfer their obligations to someone you don’t know or trust.”

Execution in Counterparts “This agreement can be signed in separate counterparts, with each party signing its own copy.”

Schwarz notes that this allows for flexibility in signing the contract, as separate signed copies can be merged into a single agreement.

For more details, read the full article here.

Farm Tax Deductions and Planning Strategies for 2024

As the harvest season winds down and you plan for the coming year, optimizing your tax strategies should be a key focus. By leveraging specific farm tax deductions, you can significantly reduce your taxable income and preserve working capital.

Key Considerations for Effective Tax Planning

Business Classification: Ensure your farm qualifies as a business for tax …

Digital Acreage Reporting is Here

USDA Modernizes Acreage Reporting with Electronic Submissions

Nebraska farmer Quentin Connealy has ditched traditional paper maps and crayons for a more efficient digital system to file his mandatory acreage reports for crop insurance and the Farm Services Agency (FSA). This shift to electronic submissions not only saves time but also reduces costs and improves accuracy.

Embracing …

Exciting News for Michigan Blueberry Growers: Enhanced Crop Insurance Options Announced

Great news for Michigan blueberry farmers! The U.S. Department of Agriculture (USDA) has unveiled improved crop insurance options, set to provide substantial benefits to blueberry growers in the state.

Currently, Michigan is one of the largest blueberry producers in the U.S., supplying millions of pounds each year. However, the existing one-size-fits-all insurance model has not …

USDA Proposes Farmer Incentives to Amplify Biobased Product Growth

A recent USDA report indicates that the United States has a strong potential to convert its abundant biomass supply into biobased products, provided that improvements are made to supply chains and materials handling, and farmers are incentivized to produce biomass while minimizing risk.

The USDA has unveiled its strategy for enhancing domestic biobased product manufacturing, …

New Frontiers of Family Business

Family farms and ranches have a rich history, marked by pivotal moments like acquiring land or relocating, which signaled new beginnings and strategies for the family’s future.

Today, similar defining moments exist for family businesses, representing new frontiers and opportunities for change. Here are some ideas to consider:

Diversification: Don’t limit your business to what you …

Eight Practical Succession Ideas

Winter provides an ideal opportunity to strategize for the advancement of your family business. As you contemplate the months ahead, consider these eight suggestions to enhance your management succession and estate planning endeavors:

Review and update your balance sheet. Accurate valuation of inherited land is essential for effective estate planning, helping minimize tax implications.

Establish a …