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LEGACY WORKSHOP FOR FARM AND RANCH FAMILIES

Succession Planning for California’s Farms and Ranches

Anderson Valley Land Trust is hosting a workshop on succession planning for farm and ranch families on Friday, November 22, 2013 from 8:30 a.m. – 4:00 p.m. at the Anderson Valley Grange in Philo in Mendocino County.

Succession planning is the process of mapping the transition of the family farm or ranch business, land, and assets from one generation to the next, and a simple will or estate plan cannot fully cover the intricacies of the transition.

According to California FarmLink, 70% of U.S. farmland is going to change hands in the next 20 years; 70% of farmers have no will and 75% of farmers will have no named successor. In California for every farmer under age 35 there are 9 California farmers over age 65, thus underscoring the importance of estate and succession planning to keep farm and ranch lands in production and to preserve the agricultural heritage of communities like Anderson Valley.

Regional experts and workshops will provide key information and tools on such topics as: successful business transfers; how to decide who will run the farm or ranch in 5, 10, 20 or more years; how to develop the next generation’s management capacity while protecting the current generation’s interests; tools to keep harmony in the family through this difficult process; estate planning; and avoiding unnecessary transfer taxes (income, gift and estate).

All generations are encouraged to attend. Lunch, workshop materials, and one copy of California FarmLink’s Farm Succession Guidebook per family are included in the workshop cost of $25 each for the first two family members and $15 for each additional member. Workshop participants will be eligible for a low-cost, private consultation with an attorney and/or CPA at a future date.

Pre-registration is required by November 18^th. Call Shelly at 707-895-3150 or send an email with names of all family members who will attend and one contact phone number or email address to info@andersonvalleylandtrust.org. More information is available at www.andersonvalleylandtrust.org.

This workshop, presented by California FarmLink, is part of the Anderson Valley Land Trust’s Legacy of Working Lands. The project is funded, in part, by a grant from the Community Foundation of Mendocino County with additional support from the Savings Bank of Mendocino County, East Bay Community Foundation, Navarro River Resource Center, California Rangeland Trust, Anderson Valley Grange, and Mendocino Land Trust.

Patrick Cavanaugh2016-05-31T19:43:09-07:00November 13th, 2013|

"REGULATIONS.GOV" IS WORKING AGAIN FOR FSMA COMMENTS!

Submit FSMA Comments by Nov. 15

TODAY, U.S. Food & Drug Administration (FDA) reported the following statement:

We are aware of the technical problems that regulations.gov has been experiencing, which has affected rulemaking government-wide. This situation has prevented some people from filing comments electronically on the FSMA proposed rules for produce safety and preventive controls for human foods, both of which are closing for comment this Friday, November 15.

Please note that the website is now up and running but that we will continue to monitor this situation. Your comments are important to us. Be assured that if technical issues should reoccur and you are unable to file your comments electronically by Friday, November 15, we will find a way to ensure that your comments are received and considered.

For more information on FDA’s Food Safety Modernization Act, visit http://www.fda.gov/fsma.

Patrick Cavanaugh2016-05-31T19:43:10-07:00November 12th, 2013|

USDA ANNOUNCES MUSHROOM COUNCIL APPOINTMENTS

USDA Appoints California Producer to Mushroom Council

Agriculture Secretary Tom Vilsackhas appointed three producers to serve on the Mushroom Council, one of whom is Robert B. Murphy of Antelope, California, who will serve a three-year term beginning Jan. 1, 2014.

USDA’s Agricultural Marketing Service (AMS) provides oversight of the Mushroom Council in accordance with the Mushroom Promotion, Research and Consumer Information Act of 1990, and the Mushroom Promotion, Research, and Consumer Information Order.

The Council’s goals are to strengthen the mushroom industry’s position in the marketplace, maintain and expand existing markets and uses for mushrooms, and develop new markets and uses for mushrooms. In 1993, the Mushroom Council was established to carry out the direction of this act.

Today, the Mushroom Council, based in San Jose, California, plays a very important role in the national promotion of fresh mushrooms through consumer public relations, foodservice communications and retail communications.

To promote fresh mushrooms to consumers, the Council works with professional chefs in developing and promoting new recipes, works with produce department managers to maintain the highest quality mushroom product for customers and sends out thousands of brochures each year to consumers hungry for new mushroom ideas.

Thanks to the Mushroom Council, September is National Mushroom Month for mushrooms to be honored and eaten.

The Mushroom Council will fund City of Hope again this year with 2013 Pink Promotion Sales Kit Materials. There is no fee to participate and it’s easy to implement with your retailers. Participation benefits include taking pride in supporting the worthy cause of National Breast Cancer Month, supporting City of Hope’s invaluable research on mushrooms and cancer and increased sales of mushrooms.

Sources: USDA, Mushroom Council

Patrick Cavanaugh2016-05-31T19:43:10-07:00November 12th, 2013|

WHAT DO WE MEAN WHEN WE ASK ABOUT LOCAL?

Preference for California or Local Wine?

Brad Rickard, Assistant Professor, Charles H. Dyson School of Applied Economics and Management and Director of Horticultural Business and Policy Program at Cornell University, recently described his latest research conducted with colleague Robert G. Tobin, Professor of Marketing, Director of the Charles H. Dyson School of Applied Economics and Management’s undergraduate program, and Director of the Food Industry Management Program.

These two researchers studied local food demand at restaurants to raise a question: What, precisely, are we asking when we ask consumers if they are interested in buying local? Wine—being not really perishable and easily transported and sold through commercial channels—should, in theory, be marketed everywhere.

“In other words, if New York State wines are just as good as French or California wines, there is no reason why they shouldn’t be sold at a nice restaurant in Omaha, Nebraska,” said Rickard. “That they rarely are implies the quality of the wines is not as high as those from other production areas.”

A national survey of 1,000 wine consumers included an analysis of consumer perceptions of wines from the four top states — California, Oregon, New York and Washington.

“When respondents evaluated the wines of these states, California stood out in the areas of value (62%), enjoyment (88%), and future purchase intent (87%). Oregon was assessed similarly to California in terms of value (58%), and perceived as being a better value than wines from Washington (52%) or New York (50%),” Rickard reported. “New York wines ranked lowest in quality compared to all of the other three states (46%).”

Rickard explained, “When we are asking consumers would they buy local broccoli, we don’t think the intent of the question is to ask ‘Will you buy local broccoli even if the quality is not as good as California broccoli?’”

“We think the premise is that the quality will be equal, and that the question should be: ‘if we can grow local broccoli that is just as tasty and delicious as California broccoli, would you prefer it? Would you pay a premium for it?’ This question can be applied to any produce item,” said Rickard.

Consumers typically choose pro-local because it implies it will help enrich the local community and be fresher, less expensive because of savings in shipping, and better for the environment because of less shipping and related carbon output.

Wine is not a parity product, so the question is different. “When we go to the New York Finger Lakes Region, we love to try the local wines, but that is wine tourism,” explained Rickard. We lean toward Cabernet, but in the Finger Lakes one drinks Riesling. So the powerful question with local wine becomes: ‘Is the customer prepared to change his inclinations in order to buy local?’”

Sources: Jim Prevor’s Perishable Pundit, Cornell University, The New York Produce Show and Conference, 2013.

Patrick Cavanaugh2016-05-31T19:43:10-07:00November 12th, 2013|

SECTION 179 AND BONUS DEPRECIATION

IRS Section 179 Deadline Approaches

“Farmers have gotten accustomed to high levels of Section 179 ($500,000 for the last few years) and at least 50% bonus depreciation since 2008,” says Paul Neiffer, a certified public accountant and business advisor for farmers and agribusiness processors. “For 2013, the levels are $500,000 for Section 179 and 50% bonus, however, for 2014, Section 179 is scheduled to drop to about $25,000 and there will be no bonus depreciation.”

Neiffer’s comments continue:

In a more normal Congress situation there would be a good chance of an increase in Section 179 and perhaps a change to bonus depreciation by the end of this year. However, this is not a normal time in Washington DC and the fiasco with the Health Exchange rollout may make it worse. I would not count on any changes to Section 179 and bonus depreciation for 2014 until after the Mid-term elections.

This means that farmers need to determine their equipment/tax savings plans assuming the lower levels will stay in place. If you are having a very good year and NEED to upgrade or get new equipment, I would certainly recommend getting it this year. If you have started the construction of new grain bins or other larger projects, make sure those are finished by year-end. If done by December 31, you get to deduct an immediate 50%; if done in January, you may only get to deduct 10% of less.

Remember that Section 179 is allowed for new AND used equipment, while bonus is only on NEW equipment. You cannot take Section 179 on trade-in basis of old equipment, but can use it for bonus. Section 179 applies to farm equipment and single purpose farm structures and land improvements. Bonus applies to all farm assets including buildings.

Some farmers who have financed their equipment may find their tax bill going up since they now have income with no tax depreciation to help offset it and still having to make equipment debt payments. If farm incomes start to drop this may crimp their financial situation. If this applies to you, take steps now to mitigate it.

Patrick Cavanaugh2016-05-31T19:43:10-07:00November 11th, 2013|

CALIFORNIA AG TODAY HONORS VETERANS

To All Our Farmer Vets,

We Honor You on Veterans Day!

The Farmer Veteran Coalition (FVC) is a not-for-profit based in Davis, CA, to mobilize veterans to feed America. FVC provides meaningful and healing vocations to Iraq and Afghanistan veterans, while also rebuilding our population of small farmers for food security in America.

FVC connects military veterans with opportunities for employment, training, job opportunities, an active support network of mentors, a resource center, and an empowering women’s program. Strategic grants to launch farm/ranch operations have been available through the Bob Woodruff Fellowship Fund for several years now.

“We believe that veterans possess the unique skills and character needed to strengthen rural communities and create sustainable food systems for all. We believe that food production offers purpose, opportunity, and physical and psychological benefits,” the organization posted on their website.

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Farm Credit System is a series of farmer-owned lending associations that handle about half of our nation’s agriculture. Regional associations work with FVC to help farmer veterans with financial literacy, business planning, and when qualified, loan acquisitions.

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A growing partnership between the Farm Credit Council and Farmer Veteran Coalition aims to include and engage every Farm Credit institution to help introduce veterans and military communities to the business opportunities agriculture offers. Their guide provides a simple framework outlining the many different ways to participate in this new partnership.

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“Ground Operations” is a social-action

campaign featuring a documentary film and

companion book, and a national tour of

film/food/farm events to ultimately influence

public policy to support the beginning farmers

and ranchers our nation so urgently needs.

“GROUND OPERATIONS: Battlefields to Farmfields” is a film about the daunting transition our returning warriors face when their return to civilian life is marked by unemployment, prescription drug addiction and astronomical suicide rates. They need a new mission. Simultaneously, as half of American farmers will soon retire, and the USDA is calling for one million new farmers to fill the gap, “Agriculture’s problem is the veterans’ solution.”

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Some of California’s Resources include:

Northcutt Ranch in Los Corners (Napa Valley), CA, a veteran owned and operated ranch exploring viable options in sustainability, organic farming, livestock, and a family-oriented ranching lifestyle.

California: Veterans’ Sustainable Agriculture Training (VSAT) at Archi’s Acres in Valley Center, CA which trains transitioning service men and women to be successful in the sustainable agriculture industry.

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Patrick Cavanaugh2016-05-31T19:43:10-07:00November 11th, 2013|

Olive Crop Big, Labor Problems in Fresh/ Cannery Market

Fresh Olive Crop Is Big,

Despite Labor Shortages

By Patrick Cavanaugh and Laurie Greene

In exclusive interviews TODAY, CaliforniaAgToday focused on the California olive industry.

While fresh table olives are still being harvested in Northern California the harvest is finally completed elsewhere in the state. “Most importantly the industry is trying to get the rest of the big crop off as fast as it can, before any rain comes, on top of labor shortages,” said Alex Ott, Executive Director of the California Olive Committee, based in Fresno.

“The labor has been very short. Instead of completing a job in one week, it was taking two weeks,” Ott said. “Labor is our top concern as the fresh olive industry competes with everyone else relying on hand harvests.

Labor has been such a persistent problem for the olive industry, a lot of research is focused on mechanical harvest methods such as a wrap around system similar to prune and pistachio harvesters. “This is definitely the way of the future and all new orchards are being planted and pruned properly so that they can adapt to mechanical system,” said Ott.

Older Trees Not Adapted to Mechanical Harvest

“The problem is what do you do with those orchards that have been there for 60 years. And if a grower were to rip those out, why would he go with another hand-labor intensive crop,” asked Ott. “I would plant almonds or walnuts which are not only mechanically harvested, but the rate of return is greater than olives.”

That’s the dilemma of the California olive industry is in. At what point does the industry covert, while also keeping in mind the lower return growers are getting for their black or green ripe olives. “Does it make more sense for growers to go with another crop that doesn’t have such issues,” asked Ott.

Production this year is predicted to be well over 80,000 tons. Last year’s production of 78,740 tons. In 2011 the production was 27,012 tons and in 2010 production was 164,984 tons. “It’s an alternate bearing crop and was a little surprising that we are up this year, following last year’s on crop,” Ott said.

“What is happening here is that growers have initiated improved pruning techniques, which is causing more consistency in crops from year to year. This is good for the olive industry, instead of wild swings each year,” Ott said.

Olive Oil Industry is Up Too

Patricia Darragh, Executive Director of the California Olive Oil Council, reported that estimated California Olive Oil production for the 2013-2014 winter season is 3.0 million gallons, compared to 2.4 last year, double the 1.2 million the prior year, with fantastic quality. Olive is the fastest growing specialty crop in the state.

Versus last year, third-quarter California Extra Virgin Olive Oil represents 20.5% growth of the overall third quarter 41.6% growth nationally. California growth is ascribed to increased consumer demand, excellent health features, ideal climate, and plants attributes of drought-resistance, dry-farmable and indeterminable tree life. California produces 99% of the product nationally, mostly in the Sacramento Valley, with Central Valley a close second.

This year saw a resurgence of the olive fruit fly, attributed to typically non-treated landscape olive trees.

“The most widely used olive in California, among its 100 varieties, is Arbequina, originally from Spain,” said Darragh, “and is a lovely mild, fruity, grassy variety.”

“In contrast with The European olive oil industry, the California industry grows many olive varieties and is creative in its blending, and that is the fun,” Darragh said.

Specializing in marketing and trade, the Council collaborates with the UC Davis Olive Center, which focuses on research and science.

The Council is proud of its Sensory Panel, established in 1998, the first in North America.

Patrick Cavanaugh2016-05-31T19:43:10-07:00November 9th, 2013|

Spring Ag Outlook for Farm Managers and Appraisers

Outlook 2014 Conference

Set for March 20, 2014 in Fresno

California Agriculture – Thriving Through Change is the theme of Outlook 2014, formerly known as the Spring Ag Outlook Conference, presented by the California Chapter of the American Society of Farm Managers and Rural Appraisers (CalASFMRA).

The 2014 conference will be held on March 20^th at the Radisson Hotel and Conference Center in Fresno and will include distribution of the widely acclaimed Trends in Agricultural Land and Lease Values, the annual publication providing land value information and agricultural content for California and Nevada.

The Outlook 2014 program agenda will provide conference attendees with an update on select California agricultural commodities as well as presenting speakers on key issues facing the industry.

According to Conference Chair, Mark Peterson, ARA, AFM, AAC, President of Kefa Capital, Inc., “The Outlook conference is looked to each year as the one place where attendees can gather a wealth of information in a single day. From commodity updates, to land value information, to leaders in the industry discussing timely issues, this meeting has become a ‘must’ for hundreds of agribusiness professionals. We are excited to bring the conference to Fresno for 2014 and feel that the central location will allow even more people to attend.”

Outlook 2014 is open to the public and pre-registration is required. Special group rates will be available for conference attendees at the Radisson Hotel, 2233 Ventura Street, Fresno, (559) 268-1000. Complete details and registration information will be available soon at www.calasfmra.com or from CalASFMRA at (209) 368-3672.

Patrick Cavanaugh2016-05-31T19:43:10-07:00November 9th, 2013|

NEW TECHNOLOGY FOR CALIFORNIA VITICULTURE INDUSTRY

–>

Thermal Plant Treatment Introduced to Viticulture Industry

With Promising Results

By Laurie Greene, Associate Editor

Thermal Plant Treatment (TPT), a unique patented technology, uses heated air to help reduce pesticide needs and has also shown surprising benefits with higher fruit set, when applied at blossom; thicker skin development on fruit; reduced fungal development by drying crops after rain storms; and improved yields.

Since the inception of the technology in 2001, the basic treatment protocol onto crops has consisted of a tractor-pulled machine moving at 3-4 MPH (5-6KPH), applying 100ºC (215F) heated air, at a wind velocity of 85-100 (135-160 MPH).

The machine, built exclusively for AgroThermal Systems by American Grape Harvesters of Fresno, California, is engineered to configure the treatment properly onto each crop.

Wine, developed from thermally treated wine grapes from the Napa Valley, Sonoma and Central Oregon is being compared with non treated wine grapes from the same vineyards.

Master of Wine, Philip Goodband

Agrothermal CEO Marty Fischer said TPT’s Master of Wine, Philip Goodband uses his expert tasting ability and knowledge of Enology to differentiate and accurately explain the differences between the test and control wines on a blind basis. “Having a world leading Master of Wine as part of our team” said Fischer, “adds expert validation to the differences we are seeing TPT create in wine quality.” Testing will continue, adding in blueberries, cane berries, pears and cherries.

Lazo TPC Global, Inc., doing business as AgroThermal Systems, is a California corporation that holds patents for Thermal Pest Control and has patents pending on other aspects of Thermal technology under the umbrella of Thermal Plant Treatment.

Patrick Cavanaugh2016-05-31T19:43:10-07:00November 8th, 2013|

Date Season Finishing up After Weather Issues

California’s Bard Valley Finishes Up Date Season

Weather Challenges Hurt Quality

By Patrick Cavanaugh, Editor

Bard Valley fig growers in the southeast part of the state, where most of the California dates are produced is wrapping up the season, however it followed challenging summer rains, which set up a process where some of the dates would start to ferment, or sour, and could not be harvested.

“This week we are getting the bags down and cutting the fruit arms in the trees, and cleaning up equipment, ” said Ron Hill with Royal Medjool Date Gardens, Winter Haven. “ The last dates were harvested last week and we are trimming up our young trees and getting ready for next season.”

Overall, production was up but there was some souring. Hill noted that bags are put over the fruit branches to protect the dates from windstorms and so that any dates that drop off will stay in the bag. “You always have the heat, along with sugar in the dates and when the rain came, it raised the humidity.

Often times there is 10 pounds of fruit which fall in the bag, and we had about 60 percent of that fruit that was probably bad,” said Hill. “Overall, the industry lost about 20 percent of production.”

Hill noted that the Coachella date production area had more problems.

Hill noted that when the crews were taking down the bags they were able to harvest some late maturing dates on the fruiting branches. We were able to get another five or 10 pounds per tree, which helped in overall volume.

Hill noted that the date industry is able to name their own price just as long as they are sensible. “We have a big chunk of the industry and we set the price before we even harvest,” said Hill. “If the price needs to be adjusted because things are moving slow then the industry works with the buyers.

Total date production in the Bard Valley was 16 to 18 million pounds this year, up a bit from last year.

Patrick Cavanaugh2016-05-31T19:43:10-07:00November 8th, 2013|

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