EPA Ignores Ag and Business Objections, Goes Full Steam with ‘Waters’ Rule

The Obama administration on Monday moved ahead with the EPA’s sweeping WOTUS measure to control the nation’s waterways and every imaginable point of connection to those waterways. The initiative has drawn strong opposition from almost every agriculture interest in the nation.

Vernon Schmidt, the Association’s Executive Vice President, called the proposal an “unlawful power grab by the EPA to assert federal jurisdiction over local water and land use.”

Today Schmidt added, “This decision by the administration shows a continued pattern of disregard for business, industry, and farm and ranch families. Given the opportunity to reach a reasonable solution, EPA has chosen to ignore millions of Americans, extending its control over private land. The EPA should not be in the business of regulating irrigation ditches, isolated ponds and other ‘non-navigable’ waters as waters of the United States.”

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California Claims Six of Top 10 Farm Economies

Agriculture in America accounts for 3.75 million jobs—farm jobs, of course, manufacturing, transportation, research, and more. That total compares to about 4.3 million jobs in the tech sector, according to Joel Kotkin, who explores demographic, social, and economic trends, and who recently contributed an article to Forbes on “The Uncelebrated Places Where America’s Farm Economy is Thriving.”

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Did You Know?

The USDA estimates that the number of farmers engaged in production agriculture has declined from 6.8 million in 1935 to 2.1 million today.

In 1960, a single farmer fed about 26 people. Today, a single farmer feeds nearly 144 people in the U.S. and abroad.

Read the complete story in the May issue of Ag Innovator, in the mail and online at Farm.Equip.org/AGI.

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Opinions on Renewable Fuel Vary in Cities, Country

A nationwide survey recently conducted on behalf of the Renewable Fuel Association indicated less enthusiasm for renewable fuel among respondents living in rural areas compared to their urban and suburban counterparts.

The poll found that among registered voters, 62% of respondents said they agreed with the federal government’s renewable fuel standard (RFS). Nearly one-fifth (18%) said they

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Topcon Expands Network

Topcon Positioning Group announced last week it will expand its TopNETlive network service for global navigation satellite systems to Latin America. In conjunction with hosting partners, new service will be provided in Mexico, Peru, the Dominican Republic, Bolivia, Guatemala, Colombia and Panama.

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Sorghum Exports Soar

Estimates from the U.S. Grains Council suggest a tenfold increase in exports of sorghum this year compared to 2012. China leads demand for the grain.

In 2012, the Council, in cooperation with the U.S. Sorghum Checkoff Program, offered seminars to raise awareness in China about the value of U.S. sorghum, which is also known as milo. Since then, said Alvaro Cordero, Manager of Global Trade for the Council, “China’s demand for sorghum has grown to unprecedented levels.”

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Association Membership: Benefits and Opportunities

In addition to supporting our efforts on behalf of the shortline equipment industry, members of the Farm Equipment Manufacturers Association enjoy many benefits, including access to free legal advice on human-resource issues from two of the top HR attorneys in the country.

While reviewing invoices is not normally something one enjoys, the bill we receive from our attorneys is an exception. Each line of the invoice represents a member who gained insight into an important issue on personnel or a dealer or distributor contract. We do not learn which companies use the service, but we know many of you appreciate the expert legal advice and value this benefit of membership.

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Member Anniversaries

These members represent a collective 150 years of participation in Farm Equipment Manufacturers Association. We mark these milestone anniversaries by thanking them—and each of you—for your commitment to the farm equipment manufacturing industry and the Association that supports it.

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Pesticide-Hauling Drone Approved

The Federal Aviation Administration granted permission for use of the Yamaha Motor Co.’s RMax unmanned helicopter in agriculture operations. The exemption represents the country’s first for a drone capable of hauling and spraying significant amounts of pesticides.

The drone is already in use in Japan, where rice farmers use it to sow seeds directly into paddy fields rather than growing seedlings and transferring them.

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Blount’s First Quarter Results

Blount International released numbers for the quarter ending March 31. The company’s Farm, Ranch and Agriculture (FRAG) segment reported first quarter sales of $55.9 million, a decrease of $4 million from the first quarter of 2014. The company said the reduction in sales was driven mainly by lower volumes of agriculture attachments and agriculture cutting blades resulting from weaker market conditions.

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USDA Reports Accelerated Start to 2015 Growing Season

USDA says farmers have planted 87% of their spring wheat crop, which is a 36% increase compared to what was planted by May 10, on average, in the previous four years. States most ahead of schedule are Minnesota, which is 98% planted, compared to a 49% four-year average; and North Dakota, which reports 82% in the ground compared to its 37% average.

Corn in the U.S. is 75% planted, which reflects an 18% increase over its four-year average of 57%. Minnesota shows the greatest percentage increase, reporting 95% planted compared to a 50% four-year average. Wisconsin is also significantly ahead of its average with 75% planted compared to 57% in previous years.

Soybeans are 11% ahead of the four-year average with 31% of plants in the ground. Minnesota again reports the most dramatic gain, with 70% planted by May 10 compared to the four-year average of 17%.

Rice is ahead too with 83% planted this year compared to a 72% average. California is most significantly ahead of its average, reporting 75% in the ground compared to 36% from previous years.

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Sales of Combines, Tractors Lead Losses for CNH

The Italian company reported a 23.9% decline in net sales compared to the first quarter of 2014. That number reflects a constant currency analysis and would increase to 30.5% on a reported basis. Among sharpest declines in the North American markets were a 44% drop in combine sales and a 26% decline in sales of tractors over 140 horsepower. Sales of smaller tractors increased by 2%.

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Kinzenbaw Named Hero in Ag

Kinze Manufacturing and its founder Jon Kinzenbaw received the 2015 Hero in American Agriculture award in April at the 11th Annual Golden Silo Awards. The awards were hosted by the Silos and Smokestacks National Heritage Area, which represents 37 counties in northeast Iowa.

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DealerNews:

Dealers Association, has seen circumstances recently in which a bank asked an equipment dealer to pay a lien for a piece of equipment a farmer had traded.

Rocky Mountain Dealerships Inc. announced gains in its first quarter of 2015.

Mazergroup, a New Holland dealership complex based in Brandon, Manitoba, Canada, soon will finalize the purchase of Southeastern Farm Equipment

AgriVision Inc., of Glenwood, Iowa, is cutting 28 people from its full-time workforce of 350 because of lagging sales,

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Farmers Fight to Keep Their Raisins

The U.S. Supreme Court heard arguments last week in a case brought by farmers from California challenging a decades-old law that requires they surrender to the government a portion of their raisin crop.


Justice Samuel A. Alito, Jr., challenged that argument: “Could the government say to a manufacturer of cellphones, ‘You can sell cellphones; however, every fifth one you have to give to us.’ Or a manufacturer of cars, ‘You can sell cars in the United States, but every third car you have to give to the United States.’?”

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Congressman Introduces Flexibility to Farm Act

U.S. Congressman Tim Walberg (R-MI) introduced last week the Flexibility to Farm Act to correct what he characterizes as overreach by the Environmental Protection Agency through the Clean Water Act.

“When the EPA wants to regulate mud muddles,” he said, “it’s clear the agency is wading into territory that goes beyond reasonable environmental protection and only adds more red tape for Michigan farmers.”

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Titan Machinery Reports Weak Quarter

Numbers released by Titan Machinery in April showed revenues down for the fourth quarter of FY 2015 compared to the same quarter last year. Overall revenue was 31% lower than the same quarter last year. In breakout categories, the company reported about a 34% decline in equipment sales, a 17% decline in parts, a nearly 19% decline in services, and an 8% decline in rentals.

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Drought in California Draws Attention to Agriculture

I can’t help but think that what ultimately happens in California regarding ownership of groundwater—whether municipality or privately owned—will migrate eastward to the Midwest, serving as a template for law,” wrote Jerry Gulke in Forbes. “Colorado, Nebraska, and Kansas have had an ongoing controversy over agriculture water rights with regulations of water usage already in place to some degree. One would think it prudent for agricultural residents of those states to keep a watchful eye on the evolution of water rights emanating out of California.”

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AGCO Cuts Factory Hours

Agco has lowered its sales expectations for the year and cut its factory hours by 21%.


Agrimoney reported Tuesday that the maker of Massey Ferguson and Fendt machinery told investors its initial sales forecast of a 15 to 17% decline has been revised to a 19 to 21% drop in sales.

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NAEDA Names 2015 Award Winners

The North American Equipment Dealers Association (NAEDA) announced last week recipients of its 2015 Dealer’s Choice and Gold Level service awards for 2015. The annual awards honor manufacturers who receive exemplary ratings in twelve categories addressed in NAEDA’s Dealer-Manufacturer Relations Survey.

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Suit Over Water Runoff Frustrates Lawmaker

A lawsuit has been filed by public utility Des Moines Water Works against three Iowa counties, alleging that tile systems, or underground tubes that route water runoff from fields, channel nitrates into the Raccoon River and pollute a source of drinking water for Central Iowans.

The move so frustrated a lawmaker that he called for constituents to boycott Des Moines. Sen. Randy Feenstra (R) wrote an online commentary saying “I firmly believe that the power of our agricultural community needs to stand up against Des Moines.”

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Crackdown in the Works on Abusive Patent Demand Letters

The U.S. House Energy and Commerce subcommittee approved a bill last week that would crack down on abusive patent demand letters. The Hill reports the bill was sent to the full committee on a party-line vote of 10-7, but is still far from being enacted.

The bill would provide more disclosure requirements in patent demand letters and allow the Federal Trade Commission to fine companies that send abusive letters, which advocates say are a major tool of so-called “patent trolls.”

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Dynasty Trust: Tax Savings or Economic Disaster?

The Farm CPA Paul Neiffer raised a question recently in the Top Producer about the merits of a dynasty trust—a perpetual trust that could serve as a vehicle to keep farm ownership in families for several generations.

Professor responds, “I can think of no other event or series of events that would be as devastating, long-term, to our economic system, particularly in agriculture, as widespread use of such a trust.”

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