Ag Opportunities Volume 20, Number 2 February 2009 Agriculture Legal Issues By Joseph Koenen Ag Business Specialist Putnam County Folks in rural areas have been proud of having less legal concerns and issues than their city counterparts. However, farming and land ownership has become more complex (as you all know) and so Agricultural legal issues are very important to know about today. (1) Farm leases The number of people leasing out land has increased due to more absentee ownership in the past 5 to 10 years. However, land values and crop prices in the last 2 or 3 years have made farm rent and leases a really “hot” topic. Some of the more critical issues here are: a) lease termination ~ many landowners (and renters) are unaware of the legal way to end a lease. It is a legal contract and must be terminated by giving notice (60 days in the case of an oral lease, whatever the contract says in a written one) no matter the circumstances. Not following the law can result in another year on the land for the tenant. b) cash rental rates ~ rising land values have turned into higher cash rents. Keep in mind that cash rent should be based on land productivity and not every acre in North Missouri is producing 150 bushel corn or 45 bushel beans. Rising input prices also affect rents. Finally, a good tenant is worth something – the bottom line is how much they’re worth which you as a landowner have to decide. c) specific issues ~ some items to address include hunting rights, lime, property access, boundary fences, soil conservation improvements and repairs. If you don’t address that at the start, these can come back and be problems later on. Remember that your local Extension Office has written lease forms or you can download them off the web at www.farmdoc.uiuc.edu and scroll down to farm leasing and rent forms. Save as a Word file and change the top to Missouri instead of Illinois. I would be glad to assist you in putting together a farm lease too. (2) Fence and Boundary Issues Fence and boundary issues will never go away. The fact that Missouri has 2 different laws depending on the county complicates things even more. Some issues here are: a) Boundary fence responsibility ~ in these 4 counties (Linn, Putnam, Schuyler and Sullivan) all landowners are legally responsible for their portion of a boundary fence, whether or not they own livestock. You must give the neighbor 90 days notice for them to build or maintain their portion and it must meet legal standards. b) Who owns what portion ~ in these counties; you both own an undivided ½ of the fence. What that means is that you can’t doze or remove your portion legally without the permission of the other landowner. c) Can I remove brush in the fence ~ generally if something (tree limb, brush) is obstructing the fence (any portion, not just yours), you can legally remove it. However, you cannot remove brush or trees that are not in or on the fence itself. Don’t forget that guide 810 is on Missouri Fence and Boundary Law and you can get it at your county office or online at http://extension.missouri.edu/explore/agguides/ and click on Ag law and policies. I will also be holding 2 programs on the fence law at the TCRC in Kirksville (315 S Franklin) on February 19th and March 11th (same program each time, 7 p.m. start time). (3) Landowner Liability This is an area we don’t think about a lot because we normally believe our insurance covers us. That is true to some extent but there are some things to think about too. a) Should I post my land ~ there are 2 ways to post your land for trespassing – one is with purple paint and the other with no trespassing signs. Doing this does make it a higher class offense. b) What things should I worry about ~ there are some things insurance doesn’t cover. If you have hazards such as an abandoned well or biting dog or other real problem, you need to take measures to lessen that exposure. Filling abandoned wells and cleaning up other land hazards can help lessen your liability. c) How often should I update my insurance ~ you should go over all of your insurance, including your liability coverage, every 2 to 3 years. Be sure you know what you’re covered for and what you are not. d) Are there other liability concerns ~ if you own machinery or livestock, they are issues to be covered on as well. If you rent, renters and landowners both need to have insurance coverage. Lease hunting is one more special concern to address. (4) Succession Planning Business and succession (estate) planning is another legal concern area. If you own land, it’s a critical topic that you need to address. a) Isn’t the estate tax high right now ~ indeed, the estate tax exemption amount is set at 3.5 million for 2009. Most farmers don’t have assets that reach that (although with current land prices it can happen). However, that could change with a new Federal Administration and it is supposed to move back to $1 million after 2010 so keep up. b) What about other “estate” costs ~ even though estate tax is not an issue, probate costs can be a large chunk in some cases. There are several things farmers and landowners can do about that. c) Where can I learn more ~ estate and succession planning can be a complex topic. (5) Income Taxes Income taxes are not a favorite subject but it is a necessary one. Hopefully by now you are all aware that we have many resources in this area, including Farmer’s Tax Guides and 1099 forms. a) What is an employee ~ IRS defines an employee as someone who uses your equipment, is under your control and you pay on a time (hour, day, month, etc.) basis. You must withhold income and social security from them if you pay them over $250 in a year. b) Who is an independent contractor ~ again, the IRS would say someone who has their own equipment and is paid on a per job (per acre, per pond, per mile of fence, etc.). If you pay them $600 or more in your tax year, send them a 1099 (by January 31st). ********************************************************************** Raw Milk – The Good, The Bad, and The Ugly By Rachel Bax Missouri Milk Board As we all are aware, raw milk has been and is a very hot topic in the state of Missouri. I am here to try and help answer some questions and hopefully help clear up whatever speculations that may be out there about the laws and regulations on raw milk and cheese sales in Missouri. The Missouri State Milk Board does not support the sale of raw milk and/or raw milk cheese in the state of Missouri unless the producer holds a permit with the Missouri State Milk Board. SMB’s concern is for the public’s health and for the safety of raw milk and milk products. We are guided by FDA and The Center for Disease Control. Raw milk can carry dangerous pathogens and diseases that can be very harmful if not fatal to humans. Raw milk and products made with raw milk have not gone through the pasteurization process, which kills harmful organisms by heating the milk to very high temperature for a specific length of time. The elderly, young children, pregnant women and immune-compromised individuals are at especially high risk of infection from raw dairy products. According to 196.935 Revised Statutes Missouri 2000 specifically allows a farmer to sell raw milk or cream at the farm where it originated, or deliver it to the customer for the customer’s own use. It does not allow a farmer to sell raw milk or cream at a farmers market or any other retail venues. If a producer wishes to sell retail raw milk or cream at a farmer’s market or any other retail venue, the producer must first obtain a permit with the Missouri State Milk Board. If the producer obtains a permit, he/she also must comply with the regulations pertaining to the proper bottling and capping of raw milk products found in 2 CSR 80-3.070 and the proper labeling of raw milk products found in 2 CSR 80-3.040. Currently, we have one licensed and permitted raw milk dairy producer/processor in the state of Missouri. For additional information about how to get your license and permit for selling raw milk, attend the Missouri Organic Association’s Annual Conference to hear a presentation by Rachel Bax. ********************************************************************** Missouri Organic Annual Conference “Winter Training for Rookies and Veterans” Feb 21, 2009 Jefferson City, MO The annual Missouri Organic Association Conference will be held Saturday, February 21, at Lincoln University's Carver Farm in Jefferson City, MO.  This year's conference will have two tracks.  One track will focus on information for experienced producers with the second track focusing on information for beginning or prospective producers of organic food. The goal of the Missouri Organic Association is to bring together Missouri organic growers, gardeners, consumers and all advocates of organic methods in a united effort to spread an understanding of the importance of a healthy food supply system and to promote the growing and eating of organic foods. The agenda for the conference is still being finalized.  At this time we have the following speakers confirmed. Track for experienced producers: 1 Organic Dairy Production, Dr. Scott Poock, MU State Extension Vet Med Specialist 2 Selling Raw Milk, Rachel Bax, Missouri Milk Board 3 Organic Grain Production, Joel Gruver, Western Illinois University    Track for beginning and prospective producers: 1 Grow Your Farm, Dean Wilson, MU Extension Ag and Rural Development Specialist, Jefferson County 2 Small Farmers' Outreach Program, Sanjun Gu, Lincoln University, State Horticulture Specialist 3 Missouri Dept. of Agriculture Programs for Prospective and Beginning Farmers, Lane McConnell, Marketing Specialist, Missouri Dept. of Agriculture 4 Growing Growers and Kansas City Center for Urban Agriculture (KCCUA), Katherine Kelly, Executive Director of KCCUA 5 EarthDance Organic Farming Apprenticeship Program, Molly Rockamann, EarthDance, Ferguson, MO 6 Organic Certification, Sue Baird Topics to be presented to all attendees: 1 Soils, Bob Kremer, Agricultural Research Service (ARS) 2 Marketing Opportunities - Presentations by buyers of a wide variety of food items from across the state. This will include farm-to-school and farmers' market opportunities. Other topics of interest will include small fruits, vegetables, and livestock.  Also included is a trade show with exhibits from extension, research and agencies, as well as buyers of organic products and producers.  An organic lunch will be served.  For additional information go to www.missouriorganic.org or call 573-882-1905. ********************************************************************** Documenting Organic Growth For the first time ever, USDA is conducting a Census of all known producers of organic crops, livestock and livestock products, as a follow-up to the 2007 Census of Agriculture. Why? In order to document for policymakers, consumers and producers, “it is imperative that data be compiled to show the importance that organic production plays in the overall food supply and how it is meeting the growing demand”, said Gene Danekas, Director of USDA-NASS Missouri Agricultural Statistics Service. “NASS will be asking producers to respond to a survey during the May-June 2009 timeframe, with results being available in December 2009.” This is organic producers opportunity to make known the facts about their industry. Information will be requested that includes the amount of acreage, production and value of sales of all types of organically produced products during 2008. Production expenditures and production practices associated with the growth of these commodities will help document to policymakers and the industry the relative viability and risk associated with organic production. USDA will look closely at these data to enhance programs and insurance products that may ease the burdens and encourage expansion of organic production. Of course, marketing strategies and practices utilized by this important industry will be studied and the results used to potentially provide additional marketing opportunities. As usual, the USDA-National Agricultural Statistics Service (NASS) takes the lead in compiling this data, guaranteeing all respondents the complete confidentiality of their data, as protected by U.S. law. All producers are encouraged to promptly and accurately compete and return the short survey when it arrives in their mail. The results will help producers, as well as consumers, as each strives to satisfy the needs of a growing industry with expanding demand. The Census of Agriculture is “your voice, your future and your responsibility.” For more information regarding this important activity, contact Gene Danekas, USDA-NASS at 573-876-0950. ********************************************************************** Advanced Vegetable Production Workshop February 2009 University of Missouri Extension is conducting workshops on vegetable production that focus on the needs of Produce Auction growers. The workshop will focus on advanced topics, costs $5.00, and includes lunch. It is open to all producers. Pay in advance or at the door. Feb. 19 - Rich Hill - Pat Miller 417-448-2560 Feb. 20th - Lamar - Jay Chism 417-682-3579 Feb. 25th - Jamesport - Tim Baker 660-663-3232 Feb. 26th - Barnett** - Joni Ross 573-378-5358 ** Transportation from Clark and Windsor will be provided. Tentative Schedule: 10:00 a.m.- Start Workshop Noon - Lunch 12:30 - Workshop resumes 4:00 p.m. - Workshop ends Thanks to Region 7 of the EPA for funding these workshops Topics to be covered: * Grafting vegetables, Sanjun Gu, Lincoln University * Advanced issues with plant nutrition, James Quinn and Jay Chism, MU Extension * A refitted backpack sprayer for improved performance, Jay Chism, MU Extension * Specialized equipment for high tunnels and energy efficient greenhouses, Tim Baker, MU Extension. * Avoiding some typical pitfalls with high tunnel tomatoes, Sanjun Gu, Lincoln University * Examples of IPM successes by Missouri Produce Auction Growers, James Quinn, MU Extension ********************************************************************** Slow Food St. Louis Biodiversity Grant Application About Slow Food St. Louis—Slow Food is a non-profit, eco-gastronomic member-supported organization that was founded in 1989 to counteract fast food and fast life, the disappearance of local food traditions and people’s dwindling interest in the food they eat, where it comes from, how it tastes, and how our food choices affect the rest of the world. Slow Food is good, clean, and fair food. We believe that the food we eat should taste good, that it should be produced in a clean way that does not harm the environment, animal welfare, or our health, and that food producers should receive fair compensation for their work. Farmer/Producer Grants—Slow Food St. Louis is offering grant money to support biodiversity in the St. Louis food system. The grants will be made available to farmers and producers for growing heirloom varieties and/or raising heritage breeds. Multiple grants are available up to the amount of $500, however, the grant committee reserves the right to offer funding above this amount. Heirloom varieties are defined as a horticultural variety that has survived for several generations and is not used in large-scale agriculture. Many varieties are listed with the Slow Food Ark of Taste, Seed Savers and Baker Creek Heirloom Seeds. Heritage breeds are traditional livestock breeds that date back several generations, before the drastic reduction of breed variety caused by the rise of industrial agriculture. Grant Application Information—Please fill out the attached application questions and follow the submission instructions at the end of this form. Applicants will be selected annually and can only be selected to participate once per year. Selection priority will be given to applications that: *have clear identifiable goals supporting biodiversity. *introduce a new product into the St. Louis market that will be sold at a farmers market, CSA, grocer, or restaurant. *include the goal of creating a niche market for the farmer/producer (applicant). *will maintain these varieties and breeds using sustainable farming methods. Eligibility—We welcome applications from current farmers, producers, individuals interested in getting into farming, those with experience in heirloom and heritage as well as those without. Application Deadline—We are currently accepting applications for the 2009 season. While we will continue to accept applications throughout the year, we will be making decisions on our first set of grants in the first week of March, 2009. To be considered for this timeframe please have your application in by March 1, 2009. Requirements for Grant Recipients—We request that all grant recipients chronicle their experience such as growing challenges, conditions, weight brought to market, cost, profit, etc. and share this information with Slow Food St. Louis. What records do you intend to keep for this project? Additionally, all grant recipients will be expected to present their project experience and/or do a tasting event featuring the product at a Slow Food meeting if requested. Application Submission Instructions—If you have any questions or want to discuss your plans before applying please feel free to contact: Bill Burge regarding heritage breeds—Bill@slowfoodstl.org or 314-498-1401 Kelly Childs or Kimberly Henricks regarding heirloom varieties—Kelly@slowfoodstl.org or Kimberly@slowfoodstl.org, 314-966-0031 ********************************************************************** Farm Service Agency Program Overview The Missouri Farm Service Agency helps ensure the well-being of American agriculture and the American public through efficient and equitable administration of farm commodity, farm loan, conservation and emergency assistance.   Here is a summary of FSA’s major programs. These programs are open to all qualified producers.   Farm Loans-FSA offers direct and guaranteed farm ownership and operating loan programs to farmers who are temporarily unable to obtain private, commercial credit and who meet other regulatory criteria. Each year a portion of the funding FSA receives for loan programs is specifically targeted for socially disadvantaged persons and beginning farmers.   To qualify for an FSA loan, applicants must be U.S. citizens or resident aliens, have a satisfactory history of meeting credit obligations, a set amount of experience operating or managing a farm, and be unable to obtain credit elsewhere at reasonable rates and terms.   Rural youth loans are available up to $5,000 to establish and operate income-producing projects of modest size in connection with their participation in 4-H, FFA, and similar organizations. Eligible youth must be U.S. citizens between 10 and 20 years old, live in a town of less than 50,000 people and be unable to obtain a loan from other sources. Loan proceeds may be used to buy livestock, equipment, and supplies; buy, rent, or repair needed tools and equipment; and pay operating expenses for running the project.   Disaster Assistance- The Non-insured Crop Disaster Assistance Program (NAP) helps farmers who grow crops that are not eligible for regular crop insurance to recover from natural disasters. NAP provides farmers growing eligible crops with protection that is comparable to the catastrophic risk protection plan provided by crop insurance. Visit your FSA county office to discuss application deadlines. The Food, Conservation, and Energy Act of 2008 authorized the Supplemental Disaster Assistance Programs including Supplemental Revenue Assistance (SURE), Livestock Forage Program (LFP), Livestock Indemnity Program (LIP), Emergency Assistance for Livestock, Honeybees and Farm Raised Fish (ELAP), and Tree Assistance Program (TAP). A signup date for these disaster programs has not been announced. To be eligible for the supplemental disaster programs, producers must purchase crop insurance on insurable crops and NAP coverage on non-insurable crops. This is not a requirement for the LIP and only grazing insurance is required for LFP.   Emergency Loans-FSA provides emergency loans to help cover production and physical losses in counties declared disaster areas by the president, or designated as such by the secretary of agriculture or the FSA administrator. Emergency loans are also available in counties that are contiguous to a declared area. The interest rate is 3.75 percent.   Emergency Conservation Program-Emergency cost-share funding is available in some circumstances for farmers to rehabilitate farmland damaged by natural disasters. The natural disaster must have created new conservation problems that, if not treated, would impair or endanger the land. It must also have affected the productive capacity of the land and represent unusual damage that is not likely to recur frequently in the same area. Finally, it must be so costly that federal assistance is required to return the land to productive agriculture use   Conservation Programs-The Conservation Reserve Program protects the nation’s most fragile farmland by encouraging farmers to stop growing crops on highly erodible and environmentally sensitive land. Owners receive an annual rental payment in exchange for planting a protective cover of grass or trees on the land. CRP offers under a general CRP Signup are only accepted during an announced signup period. Under the continuous sign up provisions, producers can enroll eligible land at any time.   Direct and Counter-Cyclical Program and ACRE-To provide income stability, FSA makes direct payments on wheat, corn, barley, oats, grain sorghum, upland cotton, soybeans, and oilseeds, to farmers and eligible landowners in the form of annual, fixed direct payments. When prices drop below a specified level, FSA will make counter-cyclical payments to producers to offset lost market income. Producers can also choose to enroll in the Average Crop Election Revenue Election (ACRE) program. ACRE provides a safety net based on state revenue losses and acts in place of the price-based safety net of counter-cyclical payments.   Marketing Assistance Loans-This commodity loan program is for barley, corn, honey, grain sorghum, lentils, wool and mohair, oats, oilseeds (including soybeans), peanuts, wheat, and upland cotton. Marketing assistance loans provides short-term loans that allow producers to borrow the value of their crops and use the crops as collateral. In lieu of a commodity loan, producers may request loan deficiency payments when the Posted County Price is below the County Loan Rate for a specific commodity. Farm Storage Facility Loans-Low interest financing is available for producers to build or upgrade farm storage and handling facilities. These loans can include new conventional cribs or bins, silos, flat storage and repairs to existing structures. Loans have a maximum term of seven years. The current interest rate is 1.875 percent for those applications approved in February 2009.   Applicants must meet the eligibility requirements for a given program before FSA can extend program benefits. For more information on these programs and other programs available through FSA, contact the Farm Service Agency at the county USDA Service Center, or on the Internet at www.fsa.usda.gov/mo. USDA is an equal opportunity employer and provider. ********************************************************************** MU Tackles Food Defense Program Teaches Students, Producers and Retailers About Protecting Food from Intentional Contamination By Bob Thomas MU Information Specialist The University of Missouri College of Agriculture, Food and Natural Resources and MU Extension are teaching farmers, meat and poultry processors, agriculture students, food service professionals and others how to defend against intentional food contamination. “There are many vulnerable access points within the farm-to-table food chain,” said Bob Weaber, MU Extension beef specialist. Weaber is one of eight University of Missouri faculty members participating in a USDA Cooperative State Research Education and Extension Service grant to develop a food defense education program for use by extension specialists and educators at land-grant universities as well as food-industry producers, processors and retailers. “We want to develop a pre-harvest and post-harvest food defense training to ensure a safe food supply,” said Carol Lorenzen, grant leader and associate professor in animal sciences. MU’s education efforts focus on how operations can develop their own food defense plans. To create a food defense plan, operations target vulnerabilities and take steps to reduce them. Food defense plans also define what actions to take if an outbreak occurs. Food defense plans are now voluntary in the meat industry, said Kristi Savage-Clarke, coordinator of the MU food defense program. But if voluntary compliance doesn’t become widespread, the USDA’s meat-inspection service may seek legislative authority to make such plans mandatory for meat processors. Most large-scale operations already have food defense plans in place. MU faculty and extension specialists are helping smaller operations develop their own plans. “We promote low-cost and easy-to-maintain plans and tell producers and processors that making their own plan may be less stringent than a federally imposed plan,” Savage-Clarke said. Enhancing an operation’s food defense capability can involve such simple matters as installing locks on gates, logging all visitors and posting a list of emergency contacts. In the classroom, MU students in animal science, food science, agricultural education, hotel and restaurant management, and rural sociology are learning about food defense. “Rather than develop entire new courses, we develop teaching materials covering a wide range of disciplines that can be inserted into existing courses,” Lorenzen said. MU is also developing a Web-based resource that will include sample food defense plans for specific types of operations. Training modules and other materials will be available to other educational institutions. “The U.S. has the safest and most abundant food supply in the world and this grant is aimed at improving security to keep it that way,” Lorenzen said. Source: Carol Lorenzen, 573-882-2452; Robert Weaber, 573-882-5479; Kristi Savage-Clarke, 573-882-4042 ********************************************************************** IN THE NEWS Ohio State University soil scientist Rattan Lal has synthesized years of scientific literature on soil degradation and restoration and developed 10 basic principles of sustainable soil management. His list of principles was published in Journal of Soil and Water Conservation, and the journal Agronomy for Sustainable Development, reports Ohio Ag Connection. The ten principles encompass not only soil science, but also agricultural policy and the impact of economic factors on soil management. For more info go to http://www.ohioagconnection.com/story-state.php?Id=96&yr=2009 Renewable energy includes many different types of energy sources, such as solar, hydro, wind, geothermal, and biofuels. These sources constantly renew themselves and are considered virtually inexhaustible. New focus has been placed on the development and improvement of renewable energy sources. New incentives and regulations have emerged, ranging from funding for research and development of alternative energy sources and production requirements designed to lessen our dependence on petroleum based fuels, to new air emissions standards and tax credits for implementing renewable energy systems.  For more information go to http://www.nationalaglawcenter.org/readingrooms/renewableenergy/ ********************************************************************** ON THE CALENDAR Feb 14 - Alternatives for Small Farms Workshop, Quincy, IL. Contact roeggem@illinois.edu. Feb 16-18 - MO Small Fruit and Vegetable Conference, Springfield, MO. Call 417-547-7533 Feb 20-21 - Grow Native Landscape Design with Missouri in Mind, Kirksville, MO. Call 573-522-4171, http://www.grownative.org Feb 20-22 - Western Farm Show at the American Royal, Kansas City, MO. mgriffith@swassn.com Feb 21 - Missouri Organic Association’s Annual Conference, Jefferson City, MO. Call 800-433-3704. Feb 26-29 - Upper Midwest Organic Farming Conference, La Cross, WI. Call 715-772-3153 or info@mosesorganic.org Feb 27-28 - Green Hills Farm Project Winter Seminar, Brookfield and Linneus MO. Call 660-963-2685. Feb 28—Grape Production Workshop, Platte County Extension Center, Kansas City, MO. Call 816- 270-2141 March 1 - Prescribed Burn Workshop, Moberly, MO. Call 660-385-2616 ext. 118. March 6 - Farmers' Market Workshop: Growing for a Farmers' Market Springfield, MO. Call 573-751-4339 March 6-7 - MO and KS Beekeeping Associations Joint Conference, Overland Park, KS. Call 636-394-5395. March 7 - Growing and Marketing Walnut Trees, Concordia, MO. Call 573-882-1402 after Feb 1. March 12 - High Tunnel Workshop, Mountain Grove, MO. Contact Pamela Mayer PMayer@MissouriState.edu 417-547-7533. March 20-21—Women in Boots and Blue Jeans: An Ag Risk Management Conference, Tan-Tar-A, MO. Call 660-397-2179. March 21—Fruit Tree Pruning Workshop, Westin, MO. Call 816-561-1061, ext. 110 or treemail@bridgingthegap.org March 27-28—Goat and Sheep Conference and 4-H and Adult Camp, Jefferson City, MO. Call 573-681-5540. March 28 - Prescribed Burn Workshop, Macon, MO.  Call 660-385-2616 ext. 118. April 22-23 - MU Energy Summit, Columbia, MO. April 30-May 1 - 2009 Ozarks New Energy Conference: Solutions for Energy Independence, Springfield, MO. Call 417-581-4018. May 31-June 3 - North American Agroforestry Conference, Columbia, MO. http://www.centerforagroforestry.org/events/afta/index.asp June 18 - Dung Beetle Field Day, Linn, MO. Call 573-694-1682.