Agriculture News
Pennsylvania Agriculture Affected by Changes to State Tax Code
Penn State Law | Posted on August 8, 2016On July 13, 2016, Pennsylvania Governor Tom Wolf signed into law Act 84 which amends the Pennsylvania Tax Reform Code of 1971 and includes three changes relevant to agriculture. First, Act 84 amends the inheritance tax exemption available to family farms engaged in the business of agriculture. Previously, if certain conditions were met, Pennsylvania exempted from state inheritance tax the "transfer of real estate devoted to the business of agriculture between members of the same family" (emphasis added). Significantly, on November 20, 2014, the Pennsylvania Department of Revenue issued an information notice stating that the department interpreted the language of the agricultural inheritance tax exemption to "apply specifically to transfers between individuals" and that the exemption did "not extend to real estate held in business entities." Under Act 84, providing certain conditions are met, Pennsylvania now exempts from state inheritance tax the "transfer of real estate devoted to the business of agriculture to or for the benefit of members of the same family" (emphasis added). Second, Act 84 provides that the sale and transfer of agricultural conservation easements are now exempt from Pennsylvania realty transfer taxes. Third, Act 84 provides that timbering operations (defined as primarily engaging in the business of harvesting trees) are now exempt from paying sales and use taxes on property and services purchased and used directly for timbering operations.
Wisconsin DNR reviews farm regulations
Milwaukee Journal Sentinel | Posted on August 8, 2016The Department of Natural Resources took the first steps in a state rule-making process aimed at safeguarding manure-spreading practices in areas prone to water contamination. But environmental groups pushed for a faster response by the agency and complained the measure was weakened from an initial draft under pressure from farm groups. DNR officials initially took a stronger measure to Gov. Scott Walker for approval. But after objections by farm groups, the agency re-worked the regulations and removed some specific requirements for the state’s largest farms.
U.S. Protein Producers Seeing Record Growth in Demand, But Prices Predicted to Fall, Rabobank Says
Washington Report | Posted on August 8, 2016U.S. protein producers are currently seeing record growth in demand; however, prices over the next couple years are predicted to fall. These findings are part of “Chickens, Cows, and Pigs… Oh My! Implications of Record U.S. Protein Expansion,” a new report from the Rabobank Food & Agribusiness Research and Advisory group, that explores the impact of growth on the future of the market. Production of protein in the United States is projected to grow at a rate of 2.5-percent annually. However, after a 5-percent jump in consumption within the domestic market, there are still many questions about demand at home. “While we don’t foresee margins falling to the lows of 2008 and 2009 as prices decline through 2018, any producer considering a possible sale or divestiture should move quickly, as the outlook for margins and valuation multiples is notes moving in their favor,” Will Sawyer, the report author and Rabobank’s senior analyst said.
British farmers prepare for end to direct subsidies after Brexit
Financial Times | Posted on August 8, 2016The future of farming after Britian leaves the EU is likely to see an end to direct subsidies to farmers, many of whom are calling instead for measures to support a profitable market. Farmers receive 2.1 Bn pounds in direct subsidies and 600 M pounds in rural development payments through the Eu's Common Agricultural Policy.
Opinion: The Freedom of Not Having to Farm
El Paso Herald Post | Posted on August 5, 2016U.S. Agriculture Secretary Tom Vilsack recently said: “Every one of us that’s not a farmer is not a farmer because we have farmers.” That’s a lot of “farmer” in one sentence. And the powerful statement makes sense. There aren’t many farmers among us. Less than two percent, as a matter of fact. Even more telling, 85 percent of what’s grown in our country is produced by less than one-tenth of one percent of our population. Vilsack is right. We delegate the responsibility of feeding our families to a small percentage of this country. It’s an incredible freedom that we often take for granted. Something’s happening, though, in this current age of mistrust. Some folks are a little unsure about the actual practices of farming. That’s because we’re two, three and sometimes four generations removed from the farm or ranch. And getting further away every day. But they still trust the farmer. Surveys continue to point to that fact. The efficiencies of U.S. agriculture have given us a luxury. We don’t have to grow our own food. Someone else can. And does so safely. That’s a freedom we
Antibiotic Resistance: A Human Health Perspective
Animal Agriculture | Posted on August 5, 2016The last century saw history’s most dramatic improvements in medical care and health, fueled to a great degree by the development and widespread use of antibiotics. However, in the conflict between bacterial evolution and human ingenuity, many reports suggest that in this century, the bacteria seem to have gained the advantage. Maintaining our dominance over bacterial infections will require more than just the application of scientific advances in fields like microbiology, bacterial and human genomics, biochemistry and information technology. We will need the broadest societal engagement and an acceptance of the need both to rethink how antibiotics are used and to create effective global partnerships since drug-resistant bacteria have no respect for national boundaries. No simple or magical solutions exist, and the necessary changes in beliefs, attitudes and practices can only be achieved with sustained effort and open, transparent communication.
U of M plans new investment in ag research, education and Extension
University of Minnesota | Posted on August 5, 2016A nearly $5 million state investment in agricultural productivity at the University of Minnesota will be used this year to hire scientists and improve infrastructure across seven areas of collaboration spanning three U of M colleges and at research and outreach and Extension sites across the state. The plan announced today covers the first years of a multi-year investment known as the Agricultural Research, Education, Extension and Technology Transfer Program. The program was established by the state legislature in its 2015 session and funding was established with the Minnesota Department of Agriculture to support the program. An advisory panel made up of university leaders, the agriculture department and industry leaders has reviewed options and agreed to the spending plan. U of M leaders announced the plan today in conjunction with Farm Fest, the state’s largest agricultural industry gathering.
The city’s last milk plant, closing after nearly 100 years in business
New York Daily News | Posted on August 4, 2016After nearly 100 years in business, the iconic Queens, New York dairy that provided milk cartons to New York City schools is closing up shop. The owners of Elmhurst Dairy announced that the last remaining milk processing plant in the five boroughs will close at the end of October. It currently employs 273 workers. “My family was dedicated to trying to keep the plant open long past the years that it was economically viable because it was the wishes of its founder, Max Schwartz, that future generations of the family continue the business,” said Elmhurst Dairy CEO Henry Schwartz. The family-owned and -operated dairy processed raw milk from upstate farms, bottled it and distributed it across the five boroughs. Much of it was delivered in small cartons to public schoolkids around the city.
USDA Proposes Updates to Animal Welfare Act Regulations f
USDA | Posted on August 4, 2016The U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) is announcing proposed updates to its regulations for consistence with a 2014 amendment to the Animal Welfare Act (AWA). APHIS is proposing to exempt business activities that are de minimis – meaning they are of a sufficiently small size, maintain or infrequently exhibit a small number of certain common non-dangerous animals, or owners of household pets that are exhibited occasionally, generate less than a substantial portion of income, and reside exclusively with the owner – from federal licensure and oversight. “The owners of very small facilities who would be affected by these changes generally provide adequate care for their animals,” said APHIS Administrator Kevin Shea. “This proposal would bring our regulations into line with current statute, and also will allow us to focus our resources where they are most needed.”
Corn and Soybean Revenue Projections for 2016 and 2017
Farm Doc Daily | Posted on August 4, 2016While considerable uncertainties still exist, revenue projections for 2016 and 2017 are provided in this article for the average of high-productivity farms located in central Illinois. The 2016 revenue projections provide an indication of whether 2016 will be a better or worse income year than 2015, a year in which net incomes on many grain farms were extremely low. The 2017 projection provides information useful when making cash rent, input purchase, and crop choice decisions for 2017. Overall, revenue for 2016 likely will be lower than in 2015. Continued low revenues should be expected for 2017, meaning that cost cutting must continue.