Kentucky agriculture takes hit from recession

By BRUCE SCHREINER (AP) – 15 hours ago

LOUISVILLE, Ky. — Kentucky's slumping horse industry appears on pace to be overtaken by poultry farming as the king of the state's agricultural sector, economists said Thursday.

In a state where horses are a mainstay of the cultural and economic lifeblood, the new top perch for chickens in the pecking order of Kentucky agriculture once seemed unlikely.

But the equine sector has been battered by deep recession, and the poultry industry has enjoyed years of steady growth. As a result, University of Kentucky agricultural economist Lee Meyer predicted that receipts from the poultry sector this year would outpace those from the horse industry by about $180 million.

Meyer said that poultry production, concentrated in western Kentucky, is expected to generate about $930 million in receipts this year. The equine sector is projected to generate about $750 million this year, down from a 2007 figure that exceeded $1.1 billion, he added.

That projection was seen by former Gov. Brereton Jones, owner of a Kentucky horse farm, as further proof that the state's horse industry is in decline and needs a boost.

"You can go anyplace around the world and tell people you're from Kentucky, and the first thing they want to talk about is the Kentucky Derby and the thoroughbred industry," he said. "We risk losing that if everybody refuses to pay attention."

Jones supports expanding gambling at Kentucky's horse racing tracks. A measure to allow video slot machines at tracks passed the Kentucky House but died in a Senate committee during this year's special session.

Thoroughbred sales and breeding stud fees are the two main income sources for the industry, but have taken a big hit from the global recession, UK economists said at a news conference Thursday that coincided with the Kentucky Farm Bureau's annual convention in Louisville.

Sale prices at the major thoroughbred auctions at Keeneland continued a downward spiral this year, especially at its premier yearling sale in September, where totals were down 41 percent from a year earlier. Results weren't quite as bad at November's breeding stock sale, which saw a 14 percent drop from 2008, but that sale was helped by a dispersal of 148 horses from the great Kentucky breeding operation Overbrook Farm.

Several prominent Kentucky horse farms also reported declines in the stud fees they charge for a live foal. Lane's End Farm announced it was cutting A.P. Indy's fee from $250,000 to $150,000. There are also major drops in stud fees for other top stallions, including Distorted Humor and Giant's Causeway.

The weak economy also has hurt demand for recreational and show horses, the economists said.

Poultry production, meanwhile, has been growing for years in Kentucky.

In 2001, poultry receipts totaled about $260 million but had doubled by 2003 and mushroomed to $918 million in 2008. Meyer projected poultry receipts of $976 million in 2010.

"I can't imagine a scenario where horses would come back to predominance for three years," he said.

The poultry sector has benefited from strong consumer demand, solid exports and the popularity of chicken products at fast-food restaurants, Meyer said.

"Usually you increase supply, prices come down," he said. "But if demand truly increases from a preference perspective, then you can have higher prices and higher production. And that's what happened."

He predicted that Kentucky equine receipts will reach an estimated $807 million in 2010.

Jones said those figures don't include the considerable tourist dollars generated by the horse industry.

"You don't get those tourism dollars from the chicken industry," he said in an interview. "If you counted all the dollars, I think the horse industry would still be ahead."

Longtime breeder Arthur Hancock, owner of Stone Farm in central Kentucky, said the horse industry faces a supply-and-demand problem.

"We don't need to be breeding so many horses," he said in an interview. "There are too many horses for the number of buyers out there."

Still, the horse industry has a special allure, Hancock said.

"Nobody's going to come to the state to see chickens. We're still a wonderful industry with a lot of beautiful farms, and we're going through some tough times."

Kenny Burdine, another UK ag economist, said the horse industry "tends to be much more cyclical with the economy" than the poultry industry. That offers hope for an eventual resurgence for equine interests, he said.

Burdine said equine receipts, once the economy bounces back, will probably approach their levels in 2007 and 2008.

Economists said that Kentucky's overall agricultural economy, which reached a historic high in cash receipts last year, appears on track for a drop in 2009 receipts due to the deep recession.

UK ag economist Craig Infanger predicted that Kentucky agriculture will produce nearly $4.3 billion in cash receipts in 2009, down from $4.8 billion the year before but on pace with the five-year average.

"That has obvious implication for the bottom line for a lot of farms in Kentucky and for the general economy," he said.

Farmers were hurt by big drops in prices for major commodities this year as well as declines in ag exports, Infanger said. Kentucky's net farm income for 2009 is estimated to be nearly $1.1 billion, down from $1.5 billion in 2008.

Infanger predicted Kentucky farm cash receipts in 2010 in the range of $4.1 billion to $4.5 billion.

Associated Press Writer Jeffrey McMurray in the Lexington, Ky., bureau contributed to this report.

Family Farmers Call on Congress, USDA to Take Immediate Action on the Dairy Crisis

Farmers urge lawmakers to establish fair and competitive pricing system

WASHINGTON, Dec. 3 /PRNewswire-USNewswire/ -- More than 100 dairy farmers from New York, Pennsylvania, Maryland, Virginia, Kentucky and Tennessee traveled to Washington, D.C., yesterday to meet with congressional representatives and other officials to present solutions that would end the worst dairy crisis to hit America's family dairy farmers since the Great Depression.

Dairy farmers met with members of the House and Senate Agriculture Committees, the Senate Judiciary Committee, the House Education and Labor Committee and the U.S. Department of Agriculture (USDA) to urge immediate action to restore fairness in the dairy pricing system, enforce anti-trust laws and ensure that dairy farmers receive a fair price for their product and consumers have access to quality milk. Dairy farmers also called on the USDA to quickly distribute emergency assistance aid that was authorized by Congress and President Obama under the 2010 Agriculture Appropriations Bill in October.

Debbie Windecker, a dairy farmer from Frankfort, N.Y., and a member of United States Dairy Farmers and Friends, traveled overnight to participate in yesterday's meetings. "We want to know why there is such a large disparity between the price consumers pay for milk and the price paid to farmers -- except for the processors in the middle, we are all losing," said Windecker. "Dairy farmers have a message for the politicians who represent people living in rural areas and in urban areas. No matter where we come from we have a lot in common: We all eat and this crisis affects all of us."

Nationwide, the average cost of production is about $18.00 per hundredweight, far below the average $10.78 per hundredweight dairy farmers received in the first 10 months of 2009. For more than a year, America's dairy farmers have effectively paid to go to work, at times losing as much as $200 per cow per month. As a result, many farmers are facing record debts and many have either sold their herds or have been forced to leave the dairy business entirely.

"Our nation's dairy farmers have headed to Washington, D.C., not to beg for handouts, but to demand justice and overhaul a broken milk pricing system," said Joel Greeno, a dairy farmer from Kendall, Wis. "Yet too few will make the trip; a year of absolutely deplorable milk prices has left many with no financial resources to travel. Or like me, they're not able to find anyone to milk the cows and do the chores while they're gone. I want Congress to know that these farmers who were able to make the trip represent us all."

Farmers unable to travel to D.C. have committed to meet with their representatives in their home districts later this month when Congress adjourns for 2009.

Since the start of 2009, Farm Aid, along with the National Family Farm Coalition and other farmer organizations, has called attention to the dairy crisis, advocating for dairy pricing reform and anti-trust investigation. Farm Aid has met with Secretary of Agriculture Tom Vilsack, delivering petitions signed by more than 13,000 consumers and farmers calling for the USDA to establish a floor price for milk that covers farmers' cost of production. Farm Aid also has made emergency assistance funds available to dairy farmers and has offered support to dairy farmers organizing local rallies to inform consumers and legislators about the impact that losing the country's remaining 60,000 dairy farmers will have on the U.S.

"The question being asked by these farmers, on behalf of all of us, is whether we are going to have a food system that allows a level playing field for family farmers and consumers or a system of increased consolidation that puts more power into the hands of powerful corporations," said Carolyn Mugar, executive director of Farm Aid. "Dairy farmers don't want a bailout -- they simply seek a fair and competitive pricing system that allows them to stay on the land and support their families, while producing safe, fresh milk and dairy products for all of us."

Farm Aid's mission is to build a vibrant, family farm-centered system of agriculture in America. Farm Aid artists and board members Willie Nelson, Neil Young, John Mellencamp and Dave Matthews host an annual concert to raise funds to support Farm Aid's work with family farmers and to inspire people to choose family-farmed food. Since 1985, Farm Aid has raised more than $36 million to support programs that help farmers thrive, expand the reach of the Good Food Movement, take action to change the dominant system of industrial agriculture and promote food from family farms.

SOURCE Farm Aid

Find this article at: http://www.prnewswire.com/news-releases/family-farmers-call-on-congress-usda-to-take-immediate-action-on-the-dairy-crisis-78400222.html

Kentucky no longer 'Sheepish' about Goats

from Business Lexington

by Tim Thornberry

December 01, 2009

FRANKFORT, KY. – In a state known for its tobacco and cattle, sheep and goat production is proving to be a viable option for farmers and has Kentucky emerging as a leader in the two industries. And many are beginning to take notice. Gov. Steve Beshear signed a proclamation declaring last October as Sheep and Goat Month. According to the 2007 Census of Agriculture, Kentucky producers raised 91,227 goats on 4,808 farms and 36,996 sheep on 1,436 farms. In September, the Kentucky Agricultural Development Board took note and approved $85,000 in state Agricultural Development Funds for the Kentucky Sheep & Goat Development Office. The money will be used for continuing services of the education, promotion, and marketing needs of Kentucky’s sheep and goat producers. The office opened in 2007.

“I am committed to creating opportunities that will make Kentucky’s agricultural community stronger,” said Beshear. “Projects like the Kentucky Sheep & Goat Development Office, supported by the Kentucky Agricultural Development Fund, play an integral role in achieving this goal.”

Ray Bowman, executive director of the office said the funds will put the organization in a position to continue to educate and promote the sheep and goat industry, while implementing new programs for our producers.

“It also allows us to continue work toward creating a self-sustaining entity, which we were challenged to do by the Board when we received the original grant," he said.

Bowman added that the office is currently handling the administrative arm of the American Goat Federation as well.

"It dovetails very neatly with what we do and we think that has a tremendous amount of possibilities in helping us not just sustain ourselves but possibly expand our organization," he said.

The industry is also getting attention through a weekly broadcast on America’s Web Radio. The program showcases the goat and sheep business through a variety of guests telling of their ventures with the animals.

It is the dedicated producers throughout the state that are at the heart of the growing ag industry. Kathy Meyer is one of those producers. In fact, the Bourbon County farmer has been in the lamb business for about 30 years.

Meyer, who serves as president of the Kentucky Sheep and Wool Producers Association said Kentucky is only one of six states in the U.S. that has seen a growth in sheep numbers.

“This is so because of a large number of people looking for alternative ways of making money on the farm besides growing tobacco and a lot of the ag development funds going toward programs to help you get into small ruminant production,” she said.

Meyer added that this part of the country is well suited for lamb and goat production rather than crops and in some cases cattle production. She also said the capital investment for sheep or goats is much less than for cattle.

With the growth of both industries in Kentucky, producers recently voted in favor of a check-off program to help with the growing need for such initiatives as research and marketing.

Bowman said this funding will help replace other revenue streams that have dried up.

“I think this is important because conventional sources of funding that we have seen in the past are continuing to dry up because of the economy. Those funding sources from the Kentucky Department of Agriculture (KDA) and the universities are going away,” he said. “If we are not willing to take care of ourselves then no body else should be expected to. This industry is growing and expanding and to keep it doing we’re going to have to spend some money on research, on promotion and on various other things.”

According to information from the KDA, in separate referenda held Oct. 1 in county Extension offices throughout the Commonwealth, goat producers approved check-offs by a 75-41 vote, and sheep producers approved by a 32-12 count.

The check-offs will be assessed at a rate of one-half of one percent (.50 percent) of the net market price of their animals and collection of funds will be mandatory, but reimbursement of funds paid will be an option to the producer.

The Kentucky Sheep and Wool Producers Association and the Kentucky Goat Producers Association will administer the funds.

Meyer said the time is right for the check-off noting that much of the work is already being done. The check-off dollars however will supply sustainability for what has been accomplished.

“There is better goat and sheep marketing in Kentucky than any state around us. We didn’t particularly have a lot of money to fund it,” she said. “Other states look at our infrastructure as a way of how things ought to be. Before this check-off program, we really never had a way of sustaining it. I think now we will improve on an already established organization.”

Meyer emphasized that most of the work associated with the program will be done by a volunteer board and no salaries will come out of check-off dollars.

A date has yet to be set for when collection of check-off funds will begin but Bowman said he hopes to have something in place by January.

For more information about the Kentucky Sheep & Goat Development Office, visit www.kysheepandgoat.org or contact Ray Bowman at (502) 352-2434 or info@kysheep.org.

Packers and Stockyards Act

The Packers and Stockyards Act is in the news in two ways: In September, a coalition of groups that advocate for small farms signed onto Wheeler v. Pilgrim's Pride brief. The Fifth Circuit Court ruled that producers do not have to show that poultry (or beef or pork) companies actions have an adverse effect on competition. NFFC signed onto this brief. Also, the DOJ and USDA have announced public workshops in 5 cities in the US in 2010 on legal issues surrounding competition in agricultural. One of these workshops deals with the PSA


Packers and Stockyards Act (1921)

National Agricultural Law Center Reading Room: Packers and Stockyards Act

PSA Overview PDF (2003)

GAO PACKERS AND STOCKYARDS PROGRAMS Actions Needed to Improve Investigations of Competitive Practices PDF (2000)

Packers and Stockyards Act: A Sword in a Stone

Contract Agriculture Reform (RAFI)

Wheeler v. Pilgrim’s Pride Brief Filed

More Research (11/29/09)

USDA Office of the Inspector General testimony on GIPSA (2006)

GAO Follow-up report on GIPSA (2006)

NFU: Antitrust Laws Must be Enforced

Livestock Reform Campaigns from the Western Organization of Resource Councils

Food and Ag Law Blog: Packers and Stockyards Act

Food Safety Reading

Here are some links for information about the Food Safety bill set to begin debate in the Senate. With Healthcare legislation dominating the agenda, it is unlikely that the Senate will take up further work on this bill until next year.

S. 510 Food Safety and Modernization Act

Farm-to-Consumer Legal Defense Fund

Farm and Ranch Freedom Alliance

National Sustainable Agriculture Coalition

Food Safety News

Posted on Sat, Nov. 21, 2009

Berea farmer revives the land

By Susan Smith-Durisek
Contributing Garden Writer

Susana Lein's bountiful harvest this year was gathered from her gardens and fields at Salamander Springs Farm, in the mountains south of Berea.

Through sustainable agricultural practices, this ridgetop farm flourishes on marginal land that had been depleted of topsoil and had no existing infrastructure.

Since 2001, Lein has used the principles of permaculture to build the farm and buildings from scratch and produce non-mechanized, no-till corn for ground corn meal, popcorn, dry beans (pinto and black turtle), and a diverse supply of local and organic produce including garlic, onions, squash, herbs, flowers, and year-round greens and root crops.

Lein grew up on a small farm in Iowa in the 1960s and '70s before the farm crisis changed the agricultural landscape.

"The farm community in which I grew up no longer exists," she said. "Huge-scale production of commodity corn and soybeans, and enormous hog factories have replaced smaller, diversified farms. Semi-trailers and giant machinery dominate the landscape. Former farmers now drive miles to work in 'rural development' factories. I was one of a new category of exports of the early '80s — our educated young."

After college, Lein worked almost seven years as a landscape architect and planner in Boston. She began to manage large projects for her firm.

"I recognized my role in paving over the land with unsustainable development and realized that my work in life must support my spiritual values and not be separate from it," she said.

After that, she spent weekends learning about permaculture and sustainable design at the New Alchemy Institute on Cape Cod, Mass., and reading works by E.F. Schumacher, Helen and Scott Nearing, and Wendell Berry that agreed with her new philosophy.

Wanting to use her skills to serve others, she left Boston in 1991 and lived seven years in Guatemala, where she worked with a non-profit organization, Altertec, helping campesino farmers implement permaculture practices while building well pumps, wood-cooking stoves, composting latrines and other technologies.

"I learned the joy of living more simply with less resources," she said. "My life was enriched by people grounded in the land. I saw how their poverty and oppression stem from the economic system we support here in America with our dollars.

"We've removed ourselves from the responsibility for how and where our food and resources come to us — and at what cost."

Lein returned to the States to work toward change at the source of the problem. A change from petroleum-based agriculture, she says, is imminent.

"The food Americans eat uses more petroleum to produce and get to their table than it takes to run their cars or heat their houses," she said.

Combining "permanent" and "agriculture," permaculture employs principles and methods to develop systems that mimic patterns and relationships found in nature to yield food, fiber, housing and energy for local needs.

Natural ecosystems serve as models, teaching how to develop energy-sustaining connections between resources and users.

Salamander Springs Farm mimics natural systems by not tilling but building the soil up with compost, cover crops and mulch. The soil is kept covered to protect organic matter from erosion and discourages weeds from doing that job. Earthworms improve soil structure and make tilling unnecessary.

Diverse crops are grown intensively, unlike large mono cultures with rows of bare soil. Water, energy and nutrients are recycled. Crops and elements of the farm perform multiple functions and create symbiotic relationships: In Lein's orchard, the tap roots of comfrey, an herb used in salves, loosen clay soil while creating a weed barrier around the root zones of fruit trees.

Lein walks her talk. With limited financial resources, she has made marginal land into a thriving ecosystem and has moved from a tent into a solar-powered, spring water-fed home.

The home and outbuildings were built using recycled and salvaged materials and wood from the farm that was logged with human and horse power. Solar power is used for drying and home energy, and water is supplied from a natural spring box via a gravity-fed water line, and it's supplemented by roof-water collection systems.

Lein's no-till dry bean field was inspired by Japanese rice farmer Masanobu Fukuoka's book, The Natural Way of Farming. Bean production per acre is more than twice that of a conventional field, which requires wide rows for tractor tillage. Garlic and onion production is almost four times that of conventional fields, with no petroleum consumed, she said.

Lein teaches at seminars across the country and at the farm through workshops and apprenticeship programs.

She sees two kinds of poverty in the world, she said, and she works to alleviate both. The first, she said, is economic poverty. The second is a poverty of spirit, a deep longing in people who have access to resources but want to reconnect with the source of our sustenance.

"We lost our commitment to creation," she said. "We need to become partners and work to become closer to the land."

Reach master gardener Susan Smith-Durisek at durisek@aol.com.

Kentucky invests $1.2 million in farm projects

FRANKFORT, Ky. — Farmers in several counties will be able to tap into more than $1.2 million set aside for agricultural investments.

The Kentucky Agricultural Development Board approved the money last week.

The Boyle County Farm Bureau will receive $324,000, the largest single amount announced. The Washington County Cattlemen Association will receive $315,000, followed by the Todd County Conservation District that received $300,000.

The money will go to farmers primarily for agricultural diversification projects.

Copyright © 2009 The Associated Press. All rights reserved.