Washington news senators Ask for More Help for Poultry Producers



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Sept. 4, 2012

In 1946, the Patterson family began selling produce, grown from the land farmed by the family since 1919, under the name James A. Patterson & Sons. The family nurtured the land and business through the years, and in 1992, the farm was incorporated as Patterson Farm, Inc. Today, Patterson Farm grow 350 acres of tomatoes, making them one of the largest growers in the state; 36 acres of strawberries; 40 acres of pumpkins; and 15,000 poinsettias. During peak season, Patterson Farm, Inc. and its three divisions – Patterson Farm Repack, Patterson Landscape & Nursery, and Patterson Farm Market & Tours – employ more than 300 people. When they’re not planting, harvesting, packaging and distributing our produce, they’re working on another mission: to educate visitors about North Carolina farming, where their food comes from and how it makes its way to their table. In 2006 Patterson Farm, Inc. received the Agribusiness of the Year, presented by the NC Agribusiness Council. This award is based on Patterson Farm, Inc.'s willingness to adapt to the latest technology and expanded marketing outlets to keep the farm a viable and profitable operation. Since 2000, Patterson Farm, Inc. has proudly earned the distinction of Gold Star Farmer awarded by the North Carolina Department of Labor. Farmers receive this award in recognition and appreciation of their efforts to provide safe and healthy on-site farm worker housing. Housing for the H2A workers is inspected annually prior to the arrival of the workers. For more information, go to www.pattersonfarminc.com.



Washington NEWS

Senators Ask for More Help for Poultry Producers: Senator Kay Hagan (D-N.C.) joined four other senators in writing a letter to Agriculture Secretary Tom Vilsack asking him to explore all options to provide relief to the poultry industry. The ongoing drought is expected to push corn prices to average $7.50 to $8.90 per bushel next year. In the letter, the senators suggested the following means to provide relief: reprogramming funds, providing additional loan options, providing compensation for economic losses, enhancing corn supplies, compensating for feed and poultry transportation costs, and a bonus purchase of turkey products in order to assist poultry producers and companies. They also encouraged Vilsack to continue discussions with EPA over waiving the RFS. A USDA official responded by saying that the agency is doing everything it can but that without a farm bill, their options are limited. In addition to Hagan, Christopher Coons (D-Del.), Thomas Carper (D-Del.), Benjamin Cardin (D-Md.), and Barbara Mikulski (D-Md.) signed the letter.

Biofuels Group Urges Administration to Stay the Course on the RFS: The Biofuels Producers Coordinating Council urged President Barack Obama “to stay the course on the RFS, which is the cornerstone of our efforts to reduce foreign oil dependence and create jobs and economic growth across America.” In a letter sent to the president, the group wrote: “We understand that the Administration will be reviewing a range of options for providing relief to those impacted by the drought. With this deliberation in mind, we are writing to caution against granting a waiver for the federal Renewable Fuel Standard (RFS).” The letter also provided evidence to demonstrate that: waiving the RFS will have a minimal impact on grain prices; weakening the U.S. commitment to renewable fuels will increase gas prices; altering or waiving the RFS will chill investment in advanced biofuels; and waiving the RFS will destabilize a cornerstone of the U.S. economic recovery.

Legislative NEWS

Rep. McComas to Chair N.C. State Ports Authority: Gov. Bev Perdue announced that Rep. Daniel F. McComas, a Republican from New Hanover County, will be named chairman of the North Carolina State Ports Authority.  McComas will resign his house seat effective Sept. 2, to take the new position. Rep. McComas was first elected in 1994 and has served for 18 years. He announced earlier this year he would not seek re-election. The N.C. House District 19 seat being vacated by McComas could be filled by Ted Davis Jr., chairman of the New Hanover County Board of Commissioners. The Republican told GOP leaders he was interested but they haven’t made a decision yet. If chosen, Davis would face Democrat Emilie Swearingen during the fall election.

Kozel Sworn in to House District 10: N.C. House Rep. Karen D. Kozel, R-Lenoir, was sworn in last week to fill the House District 10 seat. Kozel was chosen by GOP leaders to replace former Rep. Stephen LaRoque, who recently resigned the seat after a federal indictment.

Environmental NEWS

Another Death and New Cases of West Nile: North Carolina officials have confirmed a second death in the western Piedmont due to West Nile virus. Three other cases have been confirmed, and there are two additional possible cases that haven’t yet been confirmed in Buncombe County. To date, Cabarrus, Forsyth, Mecklenburg, Scotland, and Wayne counties have reported cases of the virus.

EPA Seeking Comments on Clothianidin: There is an opportunity to provide meaningful comments to EPA in support of the registration for the insecticide clothianidin.  This product is the active ingredient in Bayer’s seed treatments Poncho, Poncho Beta, and Poncho VOTiVO.  Comments should be submitted by September 25. The comments are being sought by the EPA in response to a petition filed with the agency by activists and a few beekeepers to cancel the product.  The EPA has denied the petition as it did in response to one filed previously; however, it is important for the agribusiness community and others to provide the Agency information on the importance and benefits of these seed treatment products while the process continues. To access the docket where comments are filed, go to http://www.regulations.gov.  Enter the following Docket ID number:  EPA-HQ-OPP-2012-0344.

Animal Activism NEWS

Harris Teeter Will Eliminate Gestation Crates: Matthews, N.C.-based Harris Teeter Supermarkets has announced it will eliminate gestation crates from its pork supply. The company has more than 200 locations and annual sales above $4 billion.

HSUS to Pursue Shareholder Proposals to Eliminate Gestation Stalls: The Humane Society of the United States wrote the boards of directors of investment firms J.P. Morgan, BlackRock, Ameriprise, and Prudential saying that they now hold shares in their investment firms and intend to use shareholder proposals to push companies to eliminate sow gestation stalls. In the letter, HSUS said that the investment these firms make in companies like Tyson Foods and Seaboard Farms is financially risky. Tyson responded, saying that HSUS is misrepresenting the issue as a simple matter and that this year Tyson has asked the industry to move quickly on the research investigating production practices. Tyson added that group housing and gestation stalls are humane when managed properly and that they are moving quickly to respond to the needs of their customers and consumers.


Business NEWS

Sanderson Farms Picks Nash County: Sanderson Farms announced it will be building a new poultry complex in Nash County. The company has purchased land near Rocky Mount, on which a new hatchery will be built, and owns options to purchase property for spray fields and a waste water treatment facility. “However, the timing of building that complex remains on hold until market fundamentals improve, including sufficient confidence that the global supply of feed grains will be adequate to meet world demand at reasonable prices,” said Joe Sanderson, Jr., chairman and CEO. Sanderson added that the company also has to obtain the necessary permits and acceptable economic incentive packages from the state and the local government. A public hearing date will be announced by Nash County officials to allow citizens to hear the proposal and provide feedback to county commissioners. It is estimated that the new plant will create 2,400 jobs over a 10-year period for Edgecombe, Nash, and Wilson counties.

2012 Net Farm Income Up: Net farm income is forecast to be $122.2 billion in 2012, up 3.7 percent from last year, according to USDA’s Economic Research Service. Net cash income, at $139.3 billion, is forecast up 3.4 percent from 2011, while net value added is expected to increase by $5.9 billion in 2012 to $172.6 billion.  Reflecting the market impacts of widespread drought and high temperatures during the growing season, large increases in the value of this year's crop and crop insurance indemnity payments have more than offset declining milk sales and rising production expenditures.  These income forecasts, if realized, represent all-time record levels in all three measures of farm income.  To read the full report, click here.

Animal Production Can Grow Sustainably: As the world’s middle class nearly triples in number, demand for meat, dairy products and eggs is expected to rise by as much as 100 percent by 2050. The question is, can agricultural production meet that demand without causing extensive environmental damage? Dr. Kelly Zering, associate professor and extension specialist in agricultural and resource economics in N.C. State’s College of Agriculture and Life Sciences, was among a group of U.S. academics who addressed this question in the Council for Agricultural Science and Technology Issue Paper, Water and Land Issues Associated with Animal Agriculture: A U.S. Perspective. The authors concluded that the U.S. model for environmental protection of land and water resources, while not perfect, has achieved substantial improvements. And though Zering is optimistic about the world’s ability to meet production demands and protect resources, there are still issues to address.

Commodity NEWS

N.C. Tree Selected for White House Christmas Tree: A Blue Spruce grown by Russell and Beau Estes, owners of Peak Farms in Jefferson, N.C., has been named Grand Champion of the National Christmas Tree Association’s (NCTA) 2012 National Christmas Tree Contest. As growers of the Grand Champion tree, the Estes have earned the right to present the official 2012 White House Christmas Tree to First Lady Michelle Obama this Christmas season. Paul Smith, owner of Cool Springs Nursery of Banner Elk, N.C., was selected as the Reserve Champion with a Fraser fir. Traditionally, the Reserve Champion farmers have provided a Christmas tree for the residence of the vice president.

Majority of U.S. Corn in Drought Area: The U.S. Drought Monitor indicates that 63 percent of the nation's hay acreage is in an area experiencing drought, while approximately 72 percent of the nation's cattle acreage is in an area experiencing drought. Approximately 86 percent of the U.S. corn is within an area experiencing drought, down from a peak of 89 percent on July 24, and 83 percent of the U.S. soybeans are in a drought area, down from a high of 88 percent on July 24. During the week ending August 26, USDA's National Agricultural Statistics Service reported that 52 percent of U.S. corn and 38 percent of the soybeans were rated in very poor to poor condition, while rangeland and pastures rated very poor to poor remained at 59 percent for the fourth consecutive week.

Soybean Rust Moves Closer to Eastern N.C.: Soybean rust (SBR) has been active in the month of August, with a total of 33 reports within the calendar month. SBR has been reported in 74 counties in the USA including Alabama (21), Arkansas (2),Florida (9), Georgia (21), Louisiana (6), Mississippi (12), South Carolina (1), Texas (2). Jim Dunphy, N.C. State University Extension soybean specialist, and Steve Koenning, NCSU Extension plant pathologist, say that Asiatic soybean rust is creeping closer to the eastern part of the N.C., putting it within 185 miles from Murphy, 300 miles from Charlotte, 370 miles from Winston-Salem, and 535 miles from Elizabeth City. Dunphy and Koenning say spraying is not recommended if the plants aren’t blooming or if the plants are in stage R6. If the plants are blooming and ASR has been confirmed within 100 miles, then treatment is recommended. Growers can check the status of ASR by going to sbr.ipmpipe.org/cgi-bin/sbr/public.cgi.

Study Shows Today’s Pork Production More Sustainable: A new study finds that while pig farms of the 1950s may be remembered as idyllic, they were not as sustainable as those of today. This becomes clear as the metrics most associated with sustainability are revealed from their 1959 baseline – a 35 percent decrease in carbon footprint, a 41 percent reduction in water usage, and a 78 percent drop in land needed to produce a pound of pork. Garth Boyd, Ph.D., an environmental researcher and former university professor, led a team of university and industry scientists who conducted the Checkoff-funded study to look at how the industry’s gains in production efficiency over the last 50 years have affected pork’s environmental impact. “The pork industry has been very successful in significantly reducing its environmental impact and use of natural resources by nearly 50 percent across the board per 1,000 pounds of pork produced, which is quite an accomplishment,” Boyd said.

USDA NEWS

Latest Forecast for Farm Exports: USDA’s export forecast for fiscal years 2012 and 2013 shows record exports of U.S. agricultural products. Exports of U.S. food and agricultural products are expected to reach $143.5 billion in fiscal 2013, well above the record set in 2011. At the same time, the forecast for fiscal 2012 is revised upward to a near-record $136.5 billion. Since 2009, U.S. agricultural exports have made gains of 50 percent. "Today's export forecast marks indication of a historic achievement for America's farmers, ranchers and agribusinesses. Even with tough odds due to extreme weather, U.S. agriculture is now poised for three consecutive years of record exports,” said U.S. Ag Secretary Tom Vilsack.

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