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Breaking News: Senate Ag Committee Approves Farm Bill

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AFBF President
Bob Stallman

The Senate Agriculture Committee on Tuesday approved its version of the farm bill, the Agriculture Reform, Food and Jobs Act of 2012. “By following a bipartisan path and approving its farm bill legislation, the committee moved the farm bill forward with provisions that work well for America’s farm and ranch families,” said American Farm Bureau Federation President Bob Stallman. He added that Farm Bureau is especially pleased that the bill places a high priority on crop insurance as a risk management tool and also offers a measure of flexibility through safety net options beyond crop insurance.

Further, “We are pleased that the Senate held firm to its intention of limiting cuts to $23 billion,” Stallman said. “That will help maintain workable and viable commodity and conservation titles by limiting program cuts to levels that are fair for farmers and ranchers.” The measure next moves to the full Senate for consideration.

Below is Stallman’s full statement:

“The Senate Agriculture Committee today put the farm bill on a solid road toward success. By following a bipartisan path and approving its farm bill legislation, the committee moved the farm bill forward with provisions that work well for America’s farm and ranch families. We are especially pleased that this bill places a high priority on crop insurance as a risk management tool and that it also offers a measure of flexibility through safety net options beyond crop insurance.

“While the bill contains many provisions compatible with the core farm bill proposal offered by Farm Bureau, we recognize that no farm bill is perfect and there is always room for improvement. We are pleased that the Senate held firm to its intention of limiting cuts to $23 billion. That will help maintain workable and viable commodity and conservation titles by limiting program cuts to levels that are fair for farmers and ranchers.

“We also believe that the bipartisan compromise to oppose means testing, payment limitations or premium subsidy reductions for the crop insurance program and to formalize a tie between crop insurance and conservation compliance helped set the tone of cooperation for this bill moving forward. Overall, this bill meets our firm position that the farm bill be bipartisan in nature, reform-minded in structure and crafted around a broad, flexible, crop insurance-based program that provides our farmers certainty and extends much-needed risk management tools across more acres and more crops.”

Governor McDonnell Announces Agriculture and Forestry Industries Development Fund Planning Grant Recipients

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Governor Bob McDonnell has announced the recipients of fiscal year 2013 planning grants from the Governor’s Agriculture & Forestry Industries Development Fund (AFID).  Eleven projects covering more than thirty localities have been awarded a total of $249,000 to support the growth of agricultural and forestry projects in the Commonwealth. The AFID planning grants program was developed to encourage local governments and regional organizations to analyze and plan strategically about how they can support and integrate agriculture and forestry-based industries into their communities’ overall economic development efforts.
 A listing and brief summary of the qualifying projects and their locations is included below.
Speaking about the AFID planning grants awards, Governor McDonnell said, “We’ve had great success incorporating two of the Commonwealth’s largest industries, agriculture and forestry, and their significant overall impact on our economy into our economic development agenda. That strategic decision has been justified many times over. Exports have reached new record highs during the last three years and we’ve successfully utilized AFID economic development grants to attract new agribusinesses to Virginia and to help existing operations expand. Creating a program that incentivizes communities to plan for how they can best grow and support agricultural and forestry industries in their business community is a natural continuation of a strategy that is proven to benefit Virginians and create jobs.” 

Governor McDonnell continued, “Creating opportunities and the right environment for businesses to succeed is the approach we’ve taken over the course of my administration to keep the economic recovery going in Virginia. During my time as governor, unemployment has dropped from 7.2% to 5.3% because of our commitment to conservative principles and smart, targeted investments that lead to job creation. The AFID is just one more example of our efforts at work. Our General Assembly partners in this initiative, leaders such as Delegates Steve Landes, Kirk Cox, and Ed Scott and Senators Bill Stanley, John Watkins and Emmett Hanger, deserve many thanks for their work to make funds available for important local economic development efforts such as the AFID planning grant program.” 
 The communities and regions receiving AFID planning grants will match each dollar awarded with a dollar of local funds, including certain types of allowed in-kind contributions. The program also requires the active participation of a board, committee, or working group representing the relevant agriculture and forestry interests in the locality.
“Flexibility was given to applicants to pursue the type of project that made the most sense for their region or locality, whether it was something as broad as creating a strategic plan for agriculture and forestry development, or as specific as construction of a commercial kitchen facility,” said Secretary of Agriculture and Forestry Todd Haymore.  “It was extremely important that projects demonstrate involvement from the local agriculture and forestry community, giving an indication that it was the producers themselves who helped identify and support economic development opportunities that were of true benefit to their industries.  I am hopeful that the successful implementation of these planning grants will lead to future awards of some of our larger AFID facility grants to these same localities that will have benefitted from their dedication to planning for agriculture and forestry.”
AFID planning grant program guidelines were announced on November 27, 2012, with applications for FY 2013 due March 1, 2013.  Applicants demonstrating a clear need, a solution to be undertaken, and strong support from local government and the agriculture and forestry community received the highest marks during the review process.  The next round of AFID Planning Grants will be fall 2013. Localities interested in applying may visit http://vdacs.virginia.gov/agribusiness/planning.shtmlfor more information.
Agriculture and forestry are Virginia’s largest industries, with a combined economic impact of $79 billion annually:  $55 billion from agriculture and $24 billion from forestry.  The industries also provide approximately 500,000 jobs in the Commonwealth according to the Weldon Cooper for Public Service at the University of Virginia.
Governor’s Agricultural and Forestry Industries’ Fiscal Year 2013
Planning Grant Recipients and Projects
Project Title:  New Markets for Agriculture Producers in Southwest Virginia through Online Marketing and a Local Food Campaign
Applicant:      Town of Abingdon
Award:           $20,000
Summary:        Abingdon Convention and Visitors Bureau and Appalachian Sustainable Development will work together to develop new, year-round markets for locally produced agricultural products by creating and marketing an online order system to facilitate the sales of local foods to restaurants and other institutions.  The effort will also further develop Rooted in Appalachia website and mobile app to promote local foods and restaurants serving them.
Project Title:  Fields of Gold – The Next Season of Agritourism in the Shenandoah Valley
Applicant:      Central Shenandoah PDC (CSPDC)
Award:           $35,000
Summary:        Fields of Gold is a regional agritourism marketing initiative led by the CSPDC in the Shenandoah Valley.  They recently completed a year-long planning process, funded by the Department of Housing and Community Development (DHCD), and have received significant support and buy-in from their member localities, as well as awards for the effort.  This grant is to develop and market a robust website that will include an interactive map of agritourism sites, an events calendar and farm-to-restaurant guide.  The marketing and build-out of the website were identified as key deliverables in their strategic marketing plan.
Project Title:  Fauquier County Impact of Agriculture Study
Applicant:      Fauquier County
Award:           $6,000
Summary:        Funds will be used to conduct a study of the needs of the farming community in Fauquier and to off-set the costs of having UVA’s Weldon Cooper Center conduct an “Impact of Agriculture” study to document the overall economic contribution of agriculture to Fauquier.  As part of the study, a working group of county farmers, representing all segments of the local farming community, will work with the County’s Agricultural Advisory Committee and the Fauquier County Farm Bureau to conduct, review and analyze results of a farmer survey.  Studies will help the County determine what changes to the zoning ordinance might be necessary to assist the agricultural community.
Project Title:  Planning for Agritourism and Agribusiness Benefits in Giles, Montgomery and Pulaski Counties
Applicant:      Giles County – lead applicant, Montgomery and Pulaski Counties
Award:           $35,000
Summary:        Project will develop a strategic plan for agricultural economic development in the
tri-county region.  It will include interviews/surveys of agritourism operations and agribusinesses, an inventory of these businesses, policy recommendations, and an economic impact study. 
Project Title:  Meat Processing Facility for Southside Virginia
Applicant:      Halifax County
Award:           $12,500
Summary:        Grant funds will help pay for a professional, third-party feasibility study of a USDA inspected meat processing facility in Halifax county to serve Southside Virginia.
Project Title:  The Highland Center Local Food Incubator
Applicant:      Highland County
Award:           $20,000
Summary:        Grant funds will help pay for the renovation and upgrading of a commercial kitchen at the Highland Center in Monterrey.  Specifically, they will be used to create a temperature-controlled meat processing area in the kitchen that will allow for the production of value-added meat products under USDA inspection.  This project is the culmination of years of effort to grow Highland County’s economy by building on its agricultural assets, primarily livestock.  It will complement the County’s recently completed USDA inspected slaughter facility, by giving producers the opportunity to add further value to their meat. 
Project Title:  James City County Rural Economic Development Strategic Plan
Applicant:      James City County
Award:           $20,000
Summary:        The county boasts many agricultural and forestry assets, and has undertaken a number of individual efforts to promote them, but never has the County taken a comprehensive look at how to protect, support and leverage these assets.  The need is particularly important for the County, with development pressures coming from its east (Williamsburg/Hampton Roads) and west (exurban Richmond).  This effort is just the type of project the AFID Planning Grants program was designed to engender.  It is being led by their Rural Economic Development Committee, which includes key local government personnel, local business leaders and agricultural producers).  This project could be used as a model for other jurisdictions under development pressure. 
Project Title:  Feasibility Study for Barging Logs across the Chesapeake Bay
Applicant:      Northern Neck Planning District
Award:           $35,000
Summary:        Funds are part of a proposed $100,000 feasibility study to determine the economic efficiency of utilizing barge transport to bring logs timbered on the Eastern Shore for milling in Kinsale.  Study will be conducted in two phases with Phase I determining the basic economic feasibility of the project, especially as compared to extending their current wood basket by truck.  Phase II will develop a detailed proposal for moving forward with the project.  The study seeks to address the timber availability problem faced by sawmills on the Northern Neck and lack of a robust transportation infrastructure to otherwise transport timber into the area.
Project Title:  Southside Food Enterprise Center for Production, Marketing, and Education of Value-Added Food Processing Serving Virginia Farm-Based Producers
Applicant:      Prince Edward County
Award:           $20,000
Summary:        Since 2009, Prince Edward County has been working to provide local food processing options for area producers, primarily though its existing community cannery facility.  They have completed a feasibility study on developing a new shared-use kitchen and food-business incubator.  AFID Planning Grant funds will be used to develop an operational plan for this facility.  A separate application to the Tobacco Commission for funding for facility construction is pending.
Project Title:  Vision for Agriculture and Forestry in Region 2000, 2013-14 Strategic Plan
Applicant:      Virginia’s Region 2000 Local Government Council; includes Amherst, Appomattox, Bedford and Campbell Counties and Lynchburg City
Award:           $35,000
Summary:        Funds will be used to bring in a consultant to work with the organization and local partners to develop a regional strategic plan for the agriculture and forestry components of the region’s economy.  The study will include an inventory of regional agriculture and silviculture assets, SWOT analysis and will seek to develop a plan endorsed by member jurisdictions.
Project Title:  Staunton Feasibility Study of a Commercial and Shared-Use Kitchen
Applicant:      City of Staunton
Award:           $10,500
Summary:        Funds will be used to help analyze the feasibility of a certified, commercial, shared-use kitchen and to research and create a replicable business model.  The development of a commercial kitchen was a recommendation from a recent Community Foods Planning Project.  The Project’s key partners, the City of Staunton and the Staunton Creative Community Fund, have successfully undertaken other local food development projects and are developing a suite of services to assist area food entrepreneurs from start-up through launch.  This study will be useful to other communities considering a commercial kitchen as well. 
About the Agriculture and Forestry Industries Development Fund
The creation of the AFID was part of Governor McDonnell’s jobs-creation and economic development agenda during the 2012 session of the General Assembly.  Funded at $1 million in each year of the biennium, the AFID is broken into two categories with $750,000 going to large grants to assist local efforts in expanding current or attracting new agriculture and forestry processing facilities using Virginia-grown products (http://www.vdacs.virginia.gov/agribusiness/afid.shtml) and $250,000 dedicated to small grants to assist localities in improving local economic development efforts relating to agribusiness (http://www.vdacs.virginia.gov/agribusiness/planning.shtml).

Round Table Allows Farmers to Weigh In On Immigration Reform

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This story appeared in the May 9th edition of News Leads, the week’s top ag stories sent out by the VFB Communications Department to media across the state.

Sen. Mark R. Warner, D-Va., said the so-called Gang of Eight’s current immigration bill “is the best chance in 35 years to fix a broken immigration system.”

Warner announced that to a room full of farmers and agribusiness professionals during a May 3 round-table discussion about immigration reform at Virginia Farm Bureau Federation’s headquarters.

About 30 people attended to give Warner input on the proposed legislation.

“I want to hear your concerns, because we still have time,” he said.

He outlined the highlights of the bill, which include a pathway to citizenship for the 11 million immigrants currently in the United States illegally; increased border security; employer verification requirements; and an opportunity for more high-skilled and guest workers to enter the country.


Many of the producers attending the meeting rely on the federal H-2A or H-2B foreign worker program for their seasonal labor needs.

“Over the last decade or so, all of agriculture has begun to use foreign workers,” said Wilmer Stoneman, VFBF associate director of governmental relations.

“I think getting legal status for those 11 million helps all of you,” Warner said. “That’s going to be the big kahuna of this legislation.”

But meeting participants were more concerned about wage rates required under the proposed legislation.

Several Pittsylvania County dairy operators spoke out about hourly wage increases.

Roger Jefferson, a Pittsylvania County dairy farmer, expressed concerns about how they would affect his bottom line.

“I could just quit the business, but a lot of people can’t walk away from it and I don’t want to walk away from it,” Jefferson said.

“I am a little concerned about the wage rate,” Warner responded.

Others shared concerns about the requirement that farmers give American laborers the first crack at seasonal job openings. They said it’s next to impossible to get American workers to fill the jobs, and many of those they hire don’t actually show up for work. By that time, the opportunity to hire foreign workers for the season has passed.

Troy Simpson, who owns a landscape business and hires foreign workers, said he tried filling jobs with American workers, “and it just didn’t work.”

He had 150 referrals from the Virginia Employment Commission; 74 were scheduled for interviews, but only 34 showed up. Six of the 34 reported for work, and only one is still working for Simpson.

The assertion that immigrants are taking Americans’ jobs, Simpson said, “is a falsehood.”

From the Field: Cheers to Betty Rosson and Farm Moms Everywhere

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From the Field is a bi-monthly column written by Mark Campbell, Farm Bureau Field Services Director for the Central District. He writes about Farm Bureau member benefits and County Farm Bureau activities.

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Betty Rosson of Louisa County was selected as a regional winner for Farm Mom of the Year.  I won’t repeat the press release.  But I will tell you that Betty Rosson was totally surprised.  Her son, Charles, nominated her for the award.  She has already been interviewed by the NBC station in Charlottesville and RFD TV.  The link to the NBC video is above.  The national winner will be selected on Mothers’ Day.  You have until May 11th to vote for her here http://www.americasfarmers.com/farmmom/vote.aspx.  
Congratulations Betty!  You are a great representative for all of the hard working farm moms out there.
Mothers in a farm family are the glue that holds the family and farm together.  Farm moms and wives not only provide a lot of the family nurturing, but they also help with running the farm.  With all that they are responsible for, they still keep a manner of order and cleanliness.  I remember my mother and now my wife always fussing at us to take our boots off before we come into the house.  In fact, I would argue that is probably one of the most used phrases of farm moms across America.  Take your boots off! 
I am sure the other most used phrase from farm moms is “Good job!”  Farm moms are tremendously supportive of their family.  A supportive word of encouragement really helps.  They sometimes have a difficult task of keeping everyone on track and things in order.  If it weren’t for farm moms, our farm and family life definitely wouldn’t be as rich and enjoyable as it is now.  Let’s show our mothers how much we appreciate them on Mother’s Day. 
Until next time,
Mark

Summit Showcased Ag’s Need to Build Relationships and How Words Have Consequences

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http://youtube.googleapis.com/v/VMqYYXswono&source=uds

Lindsay Reames on the Governmental Relations staff attended this event. Above is a video by the American Meat Institute that she saw during a presentation by Janet Riley  as an example of how the industry is trying to be more transparent and open our doors and show the public how animals are processed.

“The era of ‘don’t ask, don’t tell’ in agriculture is over,’” remarked Dallas Hockman, to attendees at the Animal Agriculture Alliance’s 12th annual Stakeholders Summit. Hockman, Vice President of Industry Relations for the National Pork Producers Council adamantly told Summit attendees that the ag industry can no longer afford to stay quiet; we must communicate.

More crucially, however, Hockman emphasized that the industry doesn’t just need to “communicate” but instead, must form relationships with consumers and recognize their concerns.

“This is about transparency, and transparency means that it’s our job to go and inform our customers, it’s not our customer’s job to come and ask us about something,” said Hockman. “We all know what we’re against, but the challenge is: what are you for? It’s not what you say, it’s what people hear.”

Numerous speakers throughout the day put the responsibility on the industry to communicate to consumers, instead of the other way around.
 

Earlier in the day, David Wescott, Director of Digital Strategy for APCO Worldwide, told attendees that they must identify their true stakeholders, ask those stakeholders what they want, and then give it to them.

Both Hockman and Wescott discussed the importance of relationship building with consumers. But while communication, engagement and finding the “middle ground” consumers were themes highlighted in the morning’s presentations, the day ended with heated discussions on topics ranging from Hallmark/Westland to engaging the media.

“The consumer has a right to know anything he wants to know about where he’s spending his wholly earned, almighty dollar. That’s a reality,” said Andy Vance, Editor of Feedstuffs and one of the afternoon’s speakers. “Consumers increasingly want to know more about their food and they increasingly are more and more skeptical about companies and industries that don’t give them what they want to know.”

Vance emphasized that the industry needs to think about the five or ten things that it has issues with and analyze those issues objectively. Vance described the presentations of the day as somewhat of a rollercoaster, each offering a different viewpoint, or highlighting a different challenge facing the industry.
The Summit’s first day, certainly ended on a high note, however, with a presentation by famed Peterson Brothers parody creator, Greg Peterson, presenting his videos for the audience. Peterson is the creator, along with his two brothers, of the popular videos “I’m Farming and I Grow it,” and “Farmer Style.”

In addition to Peterson, a Kansas State University Senior, there were also several other college agricultural students in the audience, namely the Animal Agriculture Alliance’s 4th annual College Aggies Scholarship winners: Tiffany Swanson (North Dakota State University), Zachary Frazier (Purdue University) and Karoline Rose (Montana State University). These students were presented with their awards at the Summit’s luncheon on May 1st.

The Summit closed with a half-day “workshop” focused on crisis communications, employee hiring strategies and the intersection of the environmental and animal rights movements and how those partnerships affect agriculture. To view presentations from May 1st, please visit the Alliance website. Presentations from May 2nd are available to Alliance members and registered attendees only.

The 12th annual Stakeholders Summit, themed “Activists at the Door: Protecting Animals, Farms, Food and Consumer Confidence,” was held May 1-2, 2013 in Arlington, Virginia. It included about 200 leaders from across the food chain.

Event sponsors included Alltech Ag Network, U.S. Poultry and Egg Association, Murphy-Brown LLC, Farm Credit, Provimi North America, Merck Animal Health, Zoetis, Hy-Line,  American Feed Industry Association, Bayer Animal Health, United Soybean Board, Alltech, National Cattlemen’s Beef Association, National Pork Board, National Pork Producers Council, Diamond V, Aviagen, Genus/PIC/ABS, United Egg Producers, WATTPublishing Co., Cactus Feeders, BrakkeConsulting, Kemin,  AgriBeef Co., Seaboard Foods, National Association of Farm Broadcasting, Protect the Harvest, Elanco Animal Health and the Potash Corp.

Questions about the Summit should be directed to Emily Meredith, Communications Director, and 703-562-1413 or emeredith@animalagalliance.org.

Tobacco Farmers Open Fields to Chickpeas

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By David Kesmodel, The Wall Street Journal
Prodded by the largest U.S. hummus maker, farmers in the heart of tobacco country are trying to grow chickpeas, an improbable move that reflects booming demand for hummus.
Sabra Dipping Co., a joint venture of PepsiCo Inc. (PEP) and Israel’s Strauss Group Ltd., wants to cultivate a commercial crop in Virginia to reduce its dependence on the legume’s main U.S. growing region—the Pacific Northwest—and to identify new chickpea varieties for its dips and spreads.
For Sabra, which makes hummus at a plant near Richmond, Va., a secondary source of supplies could help protect the company if a chickpea shortage occurred because of crop failures in Washington or Idaho. Sourcing chickpeas locally also would lower its shipping costs. But the Virginia effort carries risk, because experts say the state’s high summer humidity could prove a significant obstacle to its viability.
“We need to establish the supply chain to meet our growing demand,” says Sabra’s chief technology officer, Tulin Tuzel. “We want to reduce the risk of bad weather or concentration in one region. If possible, we also want to expand the growing seasons.”

Long a staple of Middle Eastern cuisine, hummus is earning a growing following among Americans seeking more-healthful snacks. The chickpea dip is low in fat and high in protein. Sales of “refrigerated flavored spreads”—a segment dominated by hummus—totaled $530 million at U.S. food retailers last year, up 11% from a year earlier and a 25% jump over 2010, according to market-research firm Information Resources Inc.
The growth has caught the attention of big food companies like PepsiCo, which bought a 50% stake in Sabra in 2008, and Kraft Foods Group Inc. (KRFT), which owns Athenos, another big hummus brand. Sabra on Tuesday is expected to announce an $86 million expansion of its hummus plant near Richmond to help meet demand. It expects to add 140 jobs to the facility, which currently employs about 360, over the next few years.
Sabra doesn’t disclose financial data, but IRI data show its hummus sales were about $315 million last year, up about 18%. And because some retailers, including Costco Wholesale Corp. (COST), don’t provide information to IRI, the figures understate Sabra’s retail sales.
Sabra, based in White Plains, N.Y., has helped introduce more Americans to hummus through huge sampling events in major cities in which it has handed out 10,000 2-ounce packages a day. Sabra began its first national television advertising campaign earlier this year.
“Most of the consumers out there still don’t know what hummus is,” said Adam Carr, chief executive of Tribe Mediterranean Foods Inc., a Sabra rival. “We think that there are going to be lots of new users coming to the category.”
Growing demand for hummus has pushed up prices for chickpeas, spurring farmers to increase production. The average price that farmers received for chickpeas was 35 cents a pound last year, a 10-cent increase over the mid-2000s, according to the U.S. Department of Agriculture.
Though chickpeas are a tiny crop compared with corn or wheat, last year’s U.S. harvest totaled a record 332 million pounds, up 51% from the previous year, according to the USDA. The value of the U.S. chickpea crop hit a record $115.5 million last year, USDA data show.
U.S. farmers are expected to plant a record 214,300 acres of chickpeas this year, up 3% from last year and a fivefold increase over a decade ago, the USDA said. Demand for the U.S. crop from Spain, Turkey and Pakistan also has led farmers to plant more.
In Walla Walla, Wash., farmer Pat McConnell, 51, said he intends this spring to plant about 950 acres with chickpeas, more than double his crop last year. “They’ve become a pretty lucrative option,” he said. “I really think chickpeas are going to continue to grow in popularity.”
Virginia officials are eager to develop new crops in a state where tobacco farming has shrunk dramatically since the 1990s because of declining cigarette sales.
Sabra has provided financial support for chickpea research at Virginia State University, and this spring, Virginia State recruited farmers to plant chickpeas in on-farm trials.
But Virginia’s summer humidity and heat could make chickpeas more susceptible to a fungus known as Ascochyta blight that long has threatened chickpea crops in the U.S.
Virginia State University agronomist Harbans Bhardwaj is working on identifying a variety more suited to the climate, that could potentially be planted months earlier than most chickpeas. Mr. Bhardwaj thinks Virginia farmers may be able to grow the crop on a commercial scale within three years.
James Brown, a 72-year-old tobacco, corn and soybean farmer in Clover, Va., said he knew nothing about chickpeas when an extension agent from Virginia State called him several months ago and asked if he would plant the legume.
He said he jumped at the opportunity because he is looking for ways to make his roughly 300-acre farm more profitable.
Mr. Brown planted four acres with chickpeas in mid-April. That week, his wife served him the first chickpeas he’d ever eaten. “They tasted pretty good,” the farmer said.

More Trade News: New Soybean Export Deal with Japan and New Wine Export Deal with China

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Last week Governor Bob McDonnell announced two new agriculture export deals with Asia. 
Soybeans
Montague Farms, a family-owned producer and exporter of specialty soybeans based in Center Cross, Virginia, reached a new agreement to supply food-grade soybeans to a customer in Japan. The specialty soybeans will be imported by Tokyo-based Sun-Tommy International Company and distributed to food processors in Japan. The soybeans will be used to make natto, a fermented breakfast food that is considered a traditional delicacy in Japan. Governor McDonnell met with executives of Montague Farms, Sun-Tommy, and a food processing company in Tokyo on Wednesday to thank Sun-Tommy for reaching an agreement with Montague and to discuss future export business from Virginia.

Commenting on the new export business, Governor McDonnell said, “New trade deals like this will help us build on our solid trade relationship with Japan and the all-time record $2.6 billion in agricultural exports from Virginia achieved last year.  I congratulate Montague on this new sales agreement, which will have a positive impact on the company’s operations and employees on the Northern Neck and in southeastern Virginia. I’m also pleased that this new export deal will benefit a broad network of family farms that contract with Montague Farms to supply specialty soybeans.”

The genesis of the trade deal between Montague and Sun-Tommy has roots in the governor’s trade and marketing mission to Asia in 2011, when Mr. Minoru “Tommy” Tominari, President of Sun-Tommy International Company met with Governor McDonnell and other Virginia representatives to discuss future export opportunities. Since that time, Mr. Tominari has worked with Montague Farms and Virginia agricultural trade representatives in Asia and Virginia to develop new sales opportunities for Virginia’s food-grade soybeans in Japan.  The specific financial terms of this new sale are confidential due to the specialized and highly competitive environment for this unique farm product, but the deal is valued at approximately one million dollars. 
“The governor’s strategic decision to focus on growing agricultural exports from Virginia continues to yield results for our producers and the overall economy,” said Secretary of Agriculture and Forestry Todd Haymore.  “Export sales, which now are responsible for about 30 percent of total farm income, continue to grow in importance for our family farms. Beyond that, exports are creating opportunities and supporting jobs in non-agricultural sectors between our farms and ports, such as transportation, storage, and finance, as they generate approximately $1.40 in-state for every $1.00 exported.”
The specifications for the soybeans to be exported by Montage Farms to Sun-Tommy International are strict.  The soybeans supplied by Montague must meet strict requirements for size, shape, color, moisture content, and several other physical properties.  The soybeans also must be certified as not having been genetically modified (non-GMO).  Montague Farms contracts with a network of farmers in Virginia and surrounding states to grow and ship specialty soybeans. 
Wine
Chateau Morrisette and the Tianjin Commodity Exchange Company Limited (TJComex) have reached a five-year agreement to export Chateau Morrisette wines to China.  The inaugural sale of more than 1,150 cases of wine from Chateau Morrisette was scheduled to arrive in Tianjin, China’s fourth largest city, during the Governor’s mission to Asia. 
In Beijing, Virginia Secretary of Agriculture and Forestry Todd Haymore met with leadership of the commodity exchange to recognize formally the sale of Chateau Morrisette wines after meetings in Virginia late last year and to discuss future wine purchases.  Haymore and TJComex leadership also agreed to explore potential export opportunities of other agricultural products.
Chateau Morrisette is located in Floyd County and is regarded as one of the oldest and largest production wineries in Virginia.  The winery produces more than 60,000 cases of wine per year from its scenic location on the Blue Ridge Parkway.
“The Tianjin partnership is an integral step toward implementing our long-range strategy of increasing distribution both domestically and internationally,” says Chateau Morrisette General Manager George Weldon.  “A five-year contract firmly positions Chateau Morrisette on the global stage as Virginia’s premier winery and it serves as a testament to the quality wines produced by our winery.”
TJComex was founded as China’s fourth commodities exchange and the first in the country to be funded privately.  The company provides a trading platform for a wide range of materials and commodity products, ranging from wood products to iron ore, and now high-value agribusiness products such as wine.  The exchange began operations in December 2009 and is developing its portfolio of commodities along with opportunities generated by consumer demand in China.
Dr. Chuanliu Ni, President and Chief Executive Officer of TJComex said, “We are very pleased to have found wine of such superb quality in Virginia.  The Chinese market for wine is growing rapidly and we hope that by beginning a long-term relationship with Chateau Morrisette, we will expand wine culture in Tianjin and open our city and country to future purchases of Virginia wines.  We also would like to thank Governor McDonnell, Secretary Haymore, and Virginia’s agribusiness development team for their help in introducing Virginia wine to consumers and investors in China.”
Leading up to this sale, Virginia Department of Agriculture and Consumer Services (VDACS) international marketing staff partnered with the Advocom Group to introduce TJComex members to various Virginia wineries.  Advocom and VDACS staff worked together to coordinate a trade visit by TJComex members to Virginia, during which members of the exchange met with Virginia companies producing wine, wood products, and other agribusiness commodities.  Founded by Virginia residents Lane Bailey and A.J. Donelson, the Advocom Group is a global consulting firm with offices in Washington, DC and Beijing.
“We were pleased with this initial purchase and we look forward to helping TJComex with future purchases and investments in Virginia wines and other products,” said Donelson.
Domestic and international promotion of the Virginia wine industry is one of Governor McDonnell’s top economic development and jobs creation initiatives.  Since 2010, the McDonnell administration worked with the General Assembly to establish a reimbursable tax credit program for the establishment or expansion of vineyards and wineries and to almost triple the amount of funds placed in the Virginia Wine Promotion Fund for research, education, and marketing programs. Governor McDonnell also promotes the sale of Virginia wines in Virginia, around the country, and during foreign trade and marketing missions.
Virginia currently ranks fifth in the number of wineries in the nation with more than 230.  Virginia is also the nation’s fifth largest wine grape producer.  According to a 2012 economic impact study, the Virginia wine industry employs more than 4,700 individuals and contributes almost $750 million to the Virginia economy on an annual basis. In addition, more than 1.6 million tourists visited Virginia wineries in 2011.

Governor McDonnell Officially Opens Virginia Agricultural Trade Office in Shanghai

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Governor Bob McDonnell announced Tuesday part of his trade and marketing mission to Asia the formal opening of a representative office in mainland China dedicated to increasing agricultural and forestry product exports to China, the world’s most populous country.  Over the last three years, Virginia has been implementing the governor’s initiative to increase agricultural and forestry exports. The initiative includes the utilization of a representative in mainland China, which has one of the world’s fastest growing economies, to develop and pursue new sales opportunities for Virginia’s agribusiness producers and exporters.
 At a ceremony in Shanghai yesterday with U.S. Consulate officials, including Consul General Robert Griffiths, and leading Chinese agricultural importers, distributors and processors, Governor McDonnell commented, “Today’s announcement is key for Virginia’s agriculture and forestry producers and exporters as we now have a dedicated trade representative working in China, our largest agricultural export customer. Fifteen years ago, Virginia’s agricultural exports to China were negligible. Today, business is booming. China purchased almost $640 million in agricultural goods last year from the Commonwealth, more than doubling the amount from 2011.  I’ve seen firsthand during my two trade missions to China that the country holds huge growth potential for future export business from Virginia. We intend to capitalize fully on those opportunities. More exports to China equals more good jobs in Virginia.”

Governor McDonnell added, “With more than $2.6 billion in total agricultural exports last year, Virginia’s rural communities benefit from the jobs and revenues generated by export sales. One of my top economic development priorities is the development of new export sales, which translate into farm revenue and employment opportunities from our farms, to processing facilities, to trucking and transportation providers, to our world-class ports.”
With this portion of the governor’s international agricultural trade initiative implemented, Virginia now has the only dedicated agricultural trade office in Shanghai, China’s economic and commercial capital. The Commonwealth joins North Carolina as the only other state with a dedicated agricultural trade office in China. North Carolina has an office in Beijing.
“The total value of Virginia’s agricultural exports reached an all-time high last year, driven largely by new exports that Virginia has facilitated to China over the last three years under the governor’s agricultural trade initiative,” said Secretary of Agriculture and Forestry Todd Haymore.  “Opening this office will greatly enhance our efforts to develop new trade opportunities with China.  In fact, we expect that this year’s agribusiness exports to China will exceed last year’s record high as we are able to respond to market trends and actively recruit new customers for Virginia’s high quality products.”
The Virginia Department of Agriculture and Consumer Services (VDACS) has hired Annie Kang to represent Virginia’s agricultural and forestry interests in mainland China. Kang is the founder and president of Shanghai Rui Nian Investment Management Company, a Shanghai-based firm. She has more than 15 years experience working in the shipping and logistics business. Her company has extensive experience working with major agricultural commodities.
Kang, who began representing Virginia’s agricultural and forestry interests shortly after funding was approved, is tasked with facilitating dialogue between Virginia exporters and importers in China, which has a large customer base and a rapidly growing economy.  Virginia also is in position to become a market leader in China by taking advantage of significant new opportunities that arise from improved shipping channels between Virginia and China when the Panama Canal expansion project is completed in early 2015.
In 2010, Governor McDonnell implemented a strategic plan to grow the state’s agricultural and forest product exports.  Working in close partnership with Virginia’s producers, agribusinesses, and exporters, Secretary Haymore and VDACS Marketing and Development staff focus on retaining strong market presence in mature and established markets like Canada and Japan, pursuing new opportunities in emerging markets such as China, India and Mexico, and developing business in unconventional markets, such as Cuba and Venezuela.  This team also works with state government partners, including the Secretary of Commerce and Trade, the Virginia Port Authority, and the Virginia Economic Development Partnership, to find more export opportunities.
To supplement the strategic effort, the governor secured new international marketing funds from the General Assembly over the course of his administration for VDACS to open agricultural trade offices in India, China, Latin America, and Europe, all regions that contain some of the world’s largest and fastest growing economies. Later this year, Virginia will have an agricultural trade representative in Canada.  VDACS has had a trade office in Hong Kong for more than 20 years.
Since taking office in 2010, Governor McDonnell has led overseas trade missions to Canada, Great Britain, Ireland, Switzerland, the Netherlands, Sweden, Germany, Japan, China, South Korea, Israel, and India.  These missions and the work of VDACS’ new international marketing staff with Virginia’s private sector exporters have resulted in more than $500 million in new agricultural exports from Virginia so far.  Overall agricultural exports from Virginia reached just over $2.61 billion in 2012, an all-time high.
Agriculture and forestry are Virginia’s largest industries, with a combined economic impact of $79 billion annually: $55 billion from agriculture and $24 billion from forestry. The industries also provide approximately 500,000 jobs in the Commonwealth according to the Weldon Cooper Center for Public Service at the University of Virginia.

From the Field: Helping You is What We Do Best

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From the Field is a bi-monthly column written by Mark Campbell, Farm Bureau Field Services and County Farm Bureau activities. Director for the Central District. He writes about Farm Bureau member benefits and County Farm Bureau activities.

The title is a former Virginia Farm Bureau motto that had been around for a long time.  I think it describes the Membership and Field Services Department well.  As most of you know, Virginia FarmBureau has regional fieldmen, as they are often called.  The official title is District Field Services Director, but most of the time we are referred to as fieldmen.  There are nine of us in the field, each working a district of 10 counties, plus a staff person devoted to membership marketing. 
Our Membership and Field Services Department has three other staff members plus the vice president of the department that work in the home office.  Our department focuses on leadership development and support, serving as a liaison between Virginia FarmBureau (VFB) and the 88 county Farm Bureaus, managing membership benefit programs, and membership as a whole.
While we all have similar job duties, we each have different specialties that benefit Farm Bureau and the agriculture community.  Most of our staff have farm backgrounds and have developed some of their skills, knowledge and talents on the farm.  Others have gained experiences through in-depth work on Farm Bureau issues or in associations or volunteer work.  I intended to highlight each person with their special niche, but it was getting too long.  Instead, I want to let you know about a few areas of specialty that we have.

Our field staff have extensive knowledge in several farm products including row crops, beef cattle, agronomy, fruit and vegetables, and tobacco.  As for policy issues, the staff have become specialized in Land Use Tax, zoning, conservations easements, water quality, Best Managements Practices (BMPs) programs, and working with state regulatory agencies.  This has been accomplished through years of working on these issues and by serving on county planning commissions, board of supervisors, and other local commissions and associations.  One of our field staff even managed the Virginia Techfootball and baseball fields.
These specialties have been beneficial in working with county Farm Bureaus on issues or helping a member on an individual basis.  I am proud to say that there is a wealth of knowledge among the staff and years of experience, with some having been with VFB for over 30 years.  I can confidently say that all of them, including myself, have a passion for agriculture and enjoy helping farmers and people in the agriculture community continue to build and strengthen the industry and way of life.
If there is anything that we can help you with; we will be glad to try and help.  If we don’t know the answer, we can definitely put you in touch with the right person.  The easiest way to contact us is through your local county Farm Bureau office.  Thanks for being a member.  We have several membership benefits for you to utilize, and we hope that our service adds value to your membership as well. 
Until next time,
Mark

Court Refuses to Dismiss Poultry Farmer’s Suit Against EPA

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Poultry and livestock farmers scored a win Monday when a federal court rejected efforts by the Environmental Protection Agency to dismiss a case brought by West Virginia poultry farmer Lois Alt, according to the American Farm Bureau Federation.
Alt had challenged an EPA order demanding that she obtain a Clean Water Act discharge permit for ordinary stormwater runoff from her farmyard. Despite EPA’s recent withdrawal of the Alt order, the U.S. District Court for the Northern District of West Virginia ruled that the case should go forward to clarify for the benefit of Alt and other farmers whether, as EPA contends, discharge permits are required for “ordinary precipitation runoff from a typical farmyard.”

“EPA seems to have believed if it withdrew the order against Ms. Alt, the court would dismiss her lawsuit,” said AFBF President Bob Stallman. “The tactic failed because the court recognized EPA wasn’t changing its underlying legal position, but just trying to avoid having to defend that position.”
Alt filed suit against EPA in June 2012 after the agency threatened her with $37,500 in fines each time stormwater came into contact with dust, feathers or small amounts of manure on the ground outside of her poultry houses as a result of normal farm operations. EPA also threatened separate fines of $37,500 per day if Alt failed to apply for a National Pollutant Discharge Elimination System permit for such stormwater discharges.
Alt responded with a lawsuit challenging the EPA order. AFBF and the West Virginia Farm Bureau intervened as co-plaintiffs with Alt to help resolve the issue for the benefit of other poultry and livestock farmers. EPA withdrew its order in December 2012, about six weeks before briefing on the legal issues was set to begin. The same month, five environmental groups, including Waterkeeper Alliance, Center for Food Safety and Food & Water Watch, moved to join the lawsuit on the side of EPA.
In opposing EPA’s motion to dismiss, Alt and Farm Bureau argued that farmers remain vulnerable to similar EPA orders, because EPA stands by its contention that the Clean Water Act statutory exemption for “agricultural stormwater” does not apply to stormwater from the farmyard at a concentrated animal feeding operation. The court agreed, noting that “[t]his Court’s ultimate decision on the merits will benefit all parties, including EPA and many thousands of farmers, by clarifying the extent of federal CWA ‘discharge’ liability and permit requirements for ordinary precipitation runoff from a typical farmyard.”
“Ms. Alt has courageously taken on EPA not just for her own benefit, but for the benefit of other farmers,” said Stallman. “She refused to back down from her principles despite the best efforts of EPA and environmental groups. We are pleased that the court agreed that the stakes are high for all poultry and livestock farmers and this issue should be resolved.”

In addition to denying EPA’s motion to dismiss, the court allowed the environmental groups to intervene and ordered briefing on the Alt and Farm Bureau claims to begin by June 1.