August 4, 2000

Large crop predictions temper commodity prices
Large supplies of major U.S. field crops are expected again in 2000/2001, keeping downward pressure on season-average farm prices for the fourth consecutive year, according to USDA’s first forecast of production and prices for next year.
Source: Agricultural Outlook, June-July, 2000

Organic foods see rapid expansion
The organic foods industry has grown at a remarkable rate the past few years. Sales of organic commodities in natural foods stores approached $3.3 billion in 1998, compared with $2.08 billion in 1995, according to industry sources. Sales of organic products in conventional supermarkets are also rising. Industry experts expect the current average annual growth rate of 20 to 24 percent for organic food sales to continue into the next decade.
Source: Agricultural Outlook, June-July 2000

Canadian farmers to receive help
The Canadian government has agreed on a $5.5 billion (Canadian) aid package stretched over a three-year period for Canadian farmers. The package includes cash advances for fall planting, crop insurance and tailored provincial programs.

The federal government will pay 60 percent of the cost. Provincial governments are responsible for the rest.
Source: Doane’s Agricultural Report, July 7, 2000, Vol. 63

Employees purchase farm management company
A group of employees has purchased Farmers National Company from Metropolitan Life Insurance Company, creating the largest employee-owned farm management company in the nation. It’s currently managing 3,600 farms and ranches in 22 states and is also one of the largest agricultural real estate firms.
Source: Doane’s Agricultural Report, June 30, 2000, Vol. 62

Work off your property taxes
In 1999, the Texas Legislature provided taxing units with an alternative payment option for certain property owners to pay their taxes. The option allows property owners to “work off” their property taxes.

Effective Aug. 30, 1999, House Bill 51 adds three new sections to the Tax Code. The first one—Section 31.035—allows any type of taxing unit to permit homeowners 65 years of age or older to work for the taxing unit in lieu of paying their property taxes. The other two—Sections 31.036 and 31.037—permit a school district to allow a home owner or business to provide teaching services to “work off” their property taxes.

These payment options are at the discretion of the taxing unit’s governing body and specific contract provisions apply.
Source: June/July 2000, Statement

Tax break given for timberlands
In 1999, the Texas Legislature passed S.B. 977 that allows for special appraisal of restricted-use timberlands. To qualify for this special appraisal, lands must:

• already qualify for special timberland appraisal; and

• be within an aesthetic management, critical wildlife habitat or streamside management zone or be lands on which timber was harvested and regeneration is taking place.

The Texas Forest Service has developed guidelines and definitions for the three zones and regeneration. These guidelines are available at the service’s web site at: http://txforestservice.tamu.edutfshome/assist/legisltn/tax.htm.

Lands qualifying as restricted-use timberlands will receive an appraised value of one-half of the value determined under Section 23.73(a), Property Tax Code. The provisions of S.B. 977 dealing with property tax appraisal became effective Jan. 1, 2000.
Source: June/July, Statement

USDA donates U.S. farm commodities
USDA announced the donation of 350,000 metric tons of U.S. farm commodities to nations suffering from war and drought. The package will be primarily wheat, corn and rice for Afghanistan, Kenya and nations in the Horn of Africa. The U.N. World Food Program will distribute the food.
Source: Doane’s Agricultural Report, July 21, 20000, Vol. 63

Corn fiber finds new life
Corn fiber left over from ethanol production could be turned into high-value, low-calorie sweetener for niche markets through a process being developed by Agricultural Research Service scientists.

The white powder, called xylitol, is used in specialty sugarless chewing gums. Manufacturers pay about $3 per pound for it. By comparison, the industry now sells the ethanol leftovers as cattle feed for a few pennies per pound.
Source: Doane’s Agricultural Report, July 7, 2000, Vol. 63