Labor costs loom — AgMinute for July 8, 2013

Farmers who aren't directly subject to national health care reforms for employees may still end up with higher labor costs from the overhaul, experts say.

Auditors in view — AgMinute for March 20, 2013

High-risk programs within the USDA fell short of targets for reducing improper payments last year, an internal audit found.

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Farmland pays off — AgMinute for Feb. 1, 2013

Farmland values increased 10 percent nationwide in 2012, a real estate investment trade group says. "Farm prices are clearly on the rise," said Jeff Havsy, research director for the National Council of Real Estate Investment Fiduciaries.

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AgMinute for May 28, 2012

Agriculture Secretary Tom Vilsack says he's seeing more young people and even returning disabled veterans expressing an interest in farming, and he's rolling out a program to help them realize their dreams.

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Podcast: Yogurt infrastructure, financial improprieties and a gravel fight

In this podcast, Capital Press reporters and editors talk about a new dairy processing facility in Idaho, financial improprieties at a livestock-feed manufacturer, why a successful fertilizer-maker is seeking bankruptcy and a legal battle over gravel in Oregon.

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AgMinute: Dec. 9, 2011

Two investor groups are suing the federal government over new financial rules aimed at curbing speculation in the commodity market.

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Prices for U.S. wood up worldwide

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[Photo caption: Cut logs are loaded onto a truck on private timberland east of Shingletown, Calif.]

From a quarterly report published by Wood Resources International LLC:

Higher lumber production, increased log trade and a weak US dollar were three factors that pushed sawlog prices up in dollar terms worldwide in the 1Q/11.

Wood fiber costs for pulp mills worldwide rose for the third consecutive quarter in the 1Q/11.

Global pulp prices stayed strong during the quarter and actually increased to record-high levels in the month of April.

Global demand for softwood lumber increased by about 18 percent in 2010. Lumber imports to Japan were up 21 percent. The weak building and construction market in Europe late last year resulted in lower lumber demand. During the first two months of 2011, lumber production was up in most provinces of Canada.

The housing market in the US South has fared relatively better than the rest of the country resulting in higher lumber consumption.

While the US and Canadian domestic pellet industry struggled through another year of weak domestic market demand and overcapacity, pellet exports to Europe continued to rise.

What if there's a shutdown?

Been poking around at federal agencies such as the U.S. Department of Agriculture, the U.S. Bureau of Reclamation and others whose work is pertinent to ag to find out what would happen if the government shuts down next week because of a budget impasse.

Either the government doesn't know yet, or they're not telling.

Pete Lucero, spokesman for the Bureau of Reclamation in Sacramento, said the Interior Department is still evaluating what a shutdown might do.

"We're awaiting guidance from the department on how to conduct operations during a shutdown," Lucero said.

These discussions are ongoing, he said. But agency officials are trying to remain optimistic.

"We're actually expecting there will be some kind of agreement prior to March 4," he said, "but in the event there isn't, we're in discussions on how we might proceed through a shutdown."

Interior spokeswoman Kate Kelly had nothing to tell me about shutdown plans as of yesterday, and I have yet to hear back from the USDA, whose spokeswoman is checking with the Forest Service, the Farm Service Agency and other arms of the department on my behalf.

More on this as we get closer, I'm sure.

Sunny day, outlook at logging conference

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It was another balmy day Friday at the Sierra Cascade Logging Conference in Redding, Calif., as people walked around the equipment expo, watched logging sports exhibitions and attended seminars at the Redding Convention Center and Turtle Bay Exploration Park.

At one panel discussion this afternoon at Turtle Bay, experts saw a ray of hope that things will improve for the beleaguered timber industry, which has seen two of its worst years since World War II.

Here is the schedule for Saturday, the final day of the conference and expo.

7:00 a.m. Truckers Seminar

Redding Convention Center 2nd Floor Lobby

4 Units ProLogger Credits

9:00 a.m. Exhibits Open

8:00 a.m. – 11 a.m. “Fleet Truck Regulations and Enforcement”, Repeat of Friday’s Presentation

Redding Convention Center Room 125

Panel discussion presented by Loggers Association of Northern California. Facilitated by Kathleen Mead of the Air Resources Board (ARB), followed by discussion on the Enforcement of Regulations.

2 Units ProLogger Credits

9:00 a.m. Backhoe Rodeo

Redding Convention Center South Parking Lot

Can you dig it, or can you balance it? That is the question that contestants from far and wide will answer. Join us as we watch experienced operators fight against time and gravity to take home the prize money. Thanks to Sponsor Axner Excavating for this popular event and for securing sponsors to keep this event growing.

10:00 a.m. Truck Driving Skills Competition

Redding Convention Center West Parking Lot

11:00 a.m. Wild Things, Wildlife Show

Redding Convention Center 2nd Floor Lobby

Wild Things, Inc. was founded in 1987 for the explicit purpose of housing and caring for displaced wildlife and educating the public with a message of conservation and appreciation for natural wonders.

11:30 a.m. to 2:00 p.m. Logging Sports Exhibition

Logging Sports Arena, Convention Center SouthParking Lot

2:00 p.m. Wild Things, Wildlife Show

Redding Convention Center 2nd Floor Lobby

Wild Things, Inc. was founded in 1987 for the explicit purpose of housing and caring for displaced wildlife and educating the public with a message of conservation and appreciation for natural wonders.

3:00 p.m. Raffle Drawing

Redding Convention Center 1st Floor Lobby

3:30 p.m. Gates Close

When driving in California, be extremely careful

From Doug Christian, a Redding, Calif., business consultant, on his Facebook page:

Please be extremely careful in your driving and car registration & insurance matters. State of California is broke and they are trying hard to squeeze all of us hard to collect money.

Effective immediately, if you do not stop at the red l...ight, be ready to pay $436 in fines or if you pass a school bus with flashing red signals, you will be charged $616. The state of California is going for blood, so be extra careful in driving, You cannot afford messing with them. I have been hearing that Highway Patrols are under pressure to issue a lot more tickets than last year with at least 30% increase in fines over 2009, so beware of radar guns, highway and traffic cameras installed everywhere and the tougher enforcement of parking rules.

Just for your info, the next time you park in the handicapped zone, even for a minute, you will be looking at almost $ 1000 in parking tickets , so it'd better be worth it.

California needs money, so pay close attention to the rules of the road!

Traffic Ticket Fines (Effective 01/06/2011)

VC 12814.6 $214 Failure to obey license provisions.

VC 14600(A) $214 Failure to notify DMV of address change within 10 days

Note: The fine may be reduced with valid proof of correction.

VC 16028(A) $796 Failure to provide evidence of financial responsibility (insurance)

Note: This fine may be reduced with proof of insurance on or after the violation date.

VC 21453(A) $436 Failure to stop at a red signal.

VC 22349 $214 Unsafe speed, 1 to 15 miles over the limit.

VC 22350 $328 Unsafe speed, 16 to 25 miles over the limit.

VC 22450 $214 Failure to stop at a stop sign.

VC 22454(A) $616 Passing a school bus with flashing red signals.

VC 23123(A) $148 Driving while using a wireless phone not hands free, first offense .

someone who got this ended up paying $274

VC 23123(B) $256 Driving while using a wireless phone not hands free, each subsequent offense.

VC 23123.5 $148 Driving while using a wireless device to send, read or write text.

VC 23124 $148 Minor driving while using a wireless phone.

VC 22500 $976 Parking in a bus loading area.

VC 22507(A) $976 Violation of disabled parking provisions, first offense.

VC 22507(B) $1876 Violation of disabled parking provisions, second offense.

VC 26708 $178 Unlawful material on vehicle windows.

VC 27150 $178 Adequate muffler required.

VC 27315 $148 Mandatory use of seat belts.

VC 27360 $436 Mandatory use of passenger child restraints.

Note: This fine may be reduced by completing a court authorized child seat diversion program .

VC 27400 $178 Headsets or Earplugs covering both ears.

VC 27803 $178 Violation of motorcycle safety helmet requirements.

VC 34506 $616 Commercial Driver - Log book violation.

VC 4000 $256 No evidence of current registration.

Note: The fine may be reduced with valid proof of correction.

VC 4159 $178 Notify DMV of change of address within 10 days.

Note: The fine may be reduced with valid proof of correction.

VC 5200 $178 Proper display of license plates.

Note: The fine may be reduced with valid proof of correction.

VC 9400 $178 Commercial weight fees due.

Note: The fine may be reduced with valid proof of correction Look out for the money grabbers in Sacramento but don‘t blame the cops. They don’t set the fines or collect them!

Rising fuel prices squeezing truckers, producers

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Wilfredo Vazquez, who owns Vazquez Transport in Hawthorne, Calif., said he has seen the price of diesel fuel rise from $3.08 a gallon last month to $3.38 a gallon as of this morning.

"Fuel prices have gone up really bad," Vazquez told me during a stop today at the Redding Travel Plaza. "It's crazy."

Vazquez, who was hauling a load to Washington state, said it's harder for truck owner-operators to make ends meet because the people who pay them don't give them increases to offset their fuel costs.

For my story on how rising oil prices are affecting agriculture, check CapitalPress.com later this week.

Ag lender: GIPSA not good for financing

Add Mark Greenwood, vice president of agribusiness capital at AgStar Financial Services in Mankato, Minn., to the list of industry representatives who've come out against the U.S. Grain Inspection, Packyards and Stockyards Administration's proposed rule.

The American Meat Institute picks up on Greenwood's recent op-ed with this press release:

In the op-ed, which appeared recently in the St. Cloud Times, Greenwood provided a unique perspective on the proposed GIPSA livestock and poultry marketing rule, noting that the livestock industry has seen historic volatility in recent years, making difficult for ag lenders like himself to provide critical operating capital to these farmers. Marketing agreements, he said, make it possible to do business.

"Without these agreements, the livestock market is simply too volatile for most lending organizations to risk financing. Current use of marketing agreements actually helps new farmers build the credit they need to become long-term contributors to the industry and their local economy," Greenwood wrote.

"Like the broader U.S. economy, access to capital is a critical factor that will determine how the food and agriculture industry will emerge from this recession. Limiting the ability of the nation's livestock producers to use a proven risk-management tool to secure operating capital will limit the ag industry's expansion potential at a time when our country desperately needs more opportunities," Greenwood added.

Greenwood pointed to the recent study conducted by John Dunham and Associates for the American Meat Institute which estimates 104,000 jobs will be lost if the proposed USDA rule is finalized.

"As American consumers, I urge you to contact your lawmakers and the USDA and push for the USDA to evaluate the impacts of this proposed policy, conduct due diligence and make the right decision for the ag economy and the overall U.S. economy," Greenwood concluded.

To view the op-ed, click here: http://www.meatami.com/ht/a/GetDocumentAction/i/64767

Giving consumers what they want

From the Cattlemen's Beef Board:

Consumers are always in the driver’s seat when it comes to selling products, beef included. That’s why success in the beef industry during the coming decade will depend so heavily on the industry’s ability to give consumers what they want – no matter how often they change their minds.

That was the message from Dr. Gary Smith, distinguished agricultural professor at Colorado State University, during the beef checkoff’s 2010 Innovative Beef Symposium in Denver last week.

“If you do what you’ve always done, you’ll get what you’ve always gotten,” Smith told the 80-plus processors, manufacturers and retailers who participated in the two-day event. “Innovation matters,” he said, if you want to have any chance of attracting new customers and entering new markets.

Innovation can come in various forms – including a company acting spontaneously, investing in a breakthrough and branding it, designing success into new products, or through in-depth research and “homework.”

To date, Smith said, the Beef Checkoff Program has done extremely well with innovation through research that leads to development of new beef products that meet consumers’ changing demands. At the heart of that innovation is muscle profiling, which has developed new cuts from the shoulder clod, the chuck roll and, most recently, the round.

“I think the Beef Checkoff Program … has done a tremendous job of looking down the road,” Smith said, “plucking steaks out of the chuck and round and making something between ground beef and traditional steaks.” Beef Value Cuts created through muscle profiling have truly maximized the value of the chuck and the round – turning previously ground product into profitable steaks.

Looking forward, Smith said, it is important to remember that businesses and industries fail for two reasons: their inability to escape the past and/or their inability to invent the future.

During the next five years, Smith said, the beef industry will experience decreased demand domestically and increased demand on international fronts, and stakeholders will have to become more “consumer-centric and export-minded” if they are to succeed.

“We will differentiate to drive demand, with more product branding and increased innovation,” he said. “Give the consumers what they want – give them product diversity!”

Are we in another Depression?

Economist David Rosenberg thinks so. From CNBC:

Rosenberg calls current economic conditions "a depression, and not just some garden-variety recession," and notes that any good news both during the initial 1929-33 recession and the one that began in 2008 triggered "euphoric response."

"Such is human nature and nobody can be blamed for trying to be optimistic; however, in the money management business, we have a fiduciary responsibility to be as realistic as possible about the outlook for the economy and the market at all times," he said.

The 1929-33 recession saw six quarterly bounces in GDP with an average gain of 8 percent, sending the stock market to a 50 percent rally in early 1930 as investors thought the worst had passed.

"False premise," Rosenberg said. "And guess what? We may well be reliving history here. If you're keeping score, we have recorded four quarterly advances in real GDP, and the average is only 3%."

As the EU goes, so goes the USA?

From Jeff Cox at CNBC (hat tip: Brian Hearden):

The current European debt crisis likely will not end until the euro collapses as a currency and takes the entire European Union with it, said Dennis Gartman, hedge fund manager and author of "The Gartman Letter."

"I think the whole thing will go down to defeat, the whole thing will eventually unravel," Gartman said in an interview with CNBC.com.

Gartman said he doesn't have a specific timetable for how long it will take for the collapse of the 17-year-old EU, but said, "it doesn't look good."

The debt problems continued to escalate Wednesday as Greek citizens rioted in the streets over proposed austerity measures that would be required for any rescue plan to gain approval.

At the same time, Moody's warned that it might downgrade the debt for Portugal, accelerating worries that Greece's unremitting debt worries could spread across the continent.

The thing is, with U.S. banks having major holdings in EU countries, if the EU sneezes, America could catch the cold. And if that's the case, so much for the budding recovery.

If a few rioters in Greece are enough to send the stock market on a near 1,000-point dive, I have a feeling it's going to be a long, hot summer.

Cattlemen quickly react

The president of the California Cattlemen's Association reacted quickly to the news that Gov. Arnold Schwarzenegger line-item vetoed funding for the Williamson Act, which provides property tax rates for farmers who agree to keep their land in agriculture. (See Wes' post below.)

From the CCA:

SACRAMENTO – July 28, 2009 – After weeks of budget talks at the State Capitol and Gov. Arnold Schwarzenegger’s signing of the 2009-2010 Budget today, CCA President Tom Talbot, DVM, a Bishop, Calif., beef producer, made the following statement regarding the Governor’s last minute line item veto of Williamson Act Subvention Funding.

“The California Cattlemen’s Association is extremely disappointed in the Governor’s unilateral decision to cut Williamson Act Subvention Funding, which is vital to farmers, ranchers and rural communities throughout the state. Retention of the Williamson Act was supported by legislators of both parties in the Senate and Assembly and it is unfortunate that the Governor’s decision today will put family ranches and farms in jeopardy.

In this difficult budget year, CCA and other agriculture organizations have worked hard to maintain Williamson Act Subvention Funding both for those who produce food in this state and for California’s public, who enjoys open space and natural resources provided by rangeland. The Williamson Act is the state’s most broadly-supported conservation program, protecting millions of acres of open space at a bargain rate to state government. Additionally, during these tough economic times, the Williamson Act is a critical component of helping sustain California’s number one economic driver – agriculture.”

In the most recent issue of Capital Press, I wrote about a Farm Bureau expert who said the Williamson Act will be a political football for as long as legislative Democrats and the governor need Republican votes to pass the state budget.

I can think of one way the Farm Bureau and CCA can (theoretically) make that stop. Put an initiative on the ballot.

I say theoretically, because that's what cities and counties thought, too.

Arnold's 'old schtick' is getting stale

Opines the Sacramento Bee in today's editorial:

In his latest television ad, Gov. Arnold Schwarzenegger dusts off his old shtick of portraying himself as an outsider battling evil.

Speaking directly into the camera, Schwarzenegger blames "Sacramento" for the budget mess, leaving the impression that he hasn't set foot in the Capitol after nearly six years as governor.

It makes for great television. But it's a lousy display of statesmanship.

Now more than ever, Schwarzenegger must show he can work with lawmakers and strike the tough bargains that will close a $26 billion hole. Fingering lawmakers as the sole source of California's budget troubles not only insults them, it risks torpedoing a deal that is essential if California is to avoid insolvency.

In his TV ad, Schwarzenegger urges viewers to "Stand firm. Stand for California."

Most Californians want the governor to stand firm. In particular, they don't want him to back a budget deal that relies mostly on gimmicks and borrowing. They've seen that script before.

You know what? The Bee is right.

At the so-called "tea parties" that I've seen or been to, people have expressed as much dismay at Arnold as they have with any politicians in Washington. They're certainly not buying the Hollywood act.

A "debt tsunami"

The blog RedState posts:

What was it that touched off today's market rally? According to the UK Telegraph, it was due to analyst Meredith Whitney's urge to buy Goldman Sachs. Why is Whitney so confident about Goldman Sach's future performance?

"Our more bullish outlook on Goldman Sachs shares is deeply rooted in our sustained bearish stance on the U.S. economy and the state of U.S. financials at large. Specifically, we expect a tsunami of debt issuance from federal/sovereign, state, and local governments ramping up debt issuance to fund woefully underfunded budget gaps. In addition, we expect corporate debt issuance to be at least 60% as strong as peak cycle levels, reflecting sizable debt maturity rolls. What's more, given fewer players in the market, not only is GS benefiting from market share gains on these products but more widely in the derivatives products."

It's an ill wind that blows no good. This is one case where GS investors are going to make out like bandits because of a continuing bad economy and an unprecedented level of borrowing. Good news, huh?

California farm losses now tabbed at $1.4 billion

From the California Farm Bureau Federation's Ag Alert:

Preliminary figures on damage and losses from drought and water shortages run as high as $1.4 billion, in just five San Joaquin Valley counties.

Agricultural commissioners in the five counties report that most of the losses relate to acres not planted or to anticipated yield reductions because of water shortages. About $12 million in losses relate to drought damage to rangeland. The agricultural commissioners agree these loss totals could increase as farmers report final production figures.

In the nation's leading county in farm and ranch production value, Fresno, the agricultural commissioner's office estimates 262,000 acres have been idled because of the lack of irrigation water. Using last year's crop report, which estimated production value per acre at an average $2,787, the possible loss totals more than $730 million.

County supervisor calls for Schwarzenegger's arrest

For stealing. From Shasta County Supervisor Less Baugh's open letter to the Brokenator:

What we cannot handle is your decision to take $6.3 million dollars right out of our bank account. You might as well hand us a lead life vest!

You call it borrowing. You say that we (Shasta County) will be partially repaid with interest.

I call it stealing.

You don't have the ability to pay your bills now and I don't believe you will have the ability to repay this loan with interest.

Meanwhile, Shasta County and all counties will be forced to pay the ultimate price for your mismanagement.

So what do I want Governor?

I want the Shasta County District Attorney to issue a warrant for your arrest. After all, grand theft is a crime. [ ... ]

Remember, Sir, when you steal from the county, you steal from the widows. You steal from the homeless. You steal from the veterans. You steal from every man, woman and child that we, the county, works so hard to serve.

The bottom line is this, Governor: Your proposal to suspend Proposition 1A, steal our local tax revenue and borrow your way out of your current fiscal mess on the backs of counties will not solve your budget problem, but will have a devastating impact on local government.

We cannot sustain a permanent take of gas tax funds. The elimination of CalWORKs may help solve your problem, but it places the entire burden on the county. You continue to mandate services and yet you propose a major shift of local revenue to the state.

We are working diligently to do our job, Governor.

Man up and do yours.

I keep remembering how Arnold promised to fix the state's budget mess when he was elected, and how he promised to be the "people's governor". Since he took office, things have gotten 10 times worse.