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Specialty crops enter
new farm bill picture
At the very end of the lame
duck session, Congress passed the Specialty Crop Competitiveness Act.
This bill authorizes $54 million next year to promote fruit, vegetable, and other specialty crop industries. The funding is small, but this is the first major federal program to target fresh produce and other specialty crops.
This is further evidence that producers of crops other than the traditional program crops will want a place at the table when the new farm bill is debated.
The WTO ruling against U.S. cotton subsidies might force Congress
to remove the restriction against planting specialty crops on program
crop acreage, which would trigger an effort to protect specialty crop
producers. This could impact the structure of the next farm bill and the
amount of money available for producers of traditional program crops.
Source: Doane's Agricultural Report; Nov. 17, 2004
Argentina's 2005 beef
exports to track higher
Argentina is on track to export more beef in 2005 than it has any year since 1980, industry analysts said.
Argentina is likely to ship more than 600,000 metric tons of beef in 2005 as the country calms concern about foot-and-mouth disease and ships to more markets, according to the U.S. Department of Agriculture.
"We think the U.S. will open to fresh beef in the second half of 2005," said Miguel Schiariti of the Argentine Beef Industry Chamber.
In addition, some analysts believe Mercosur and the E.U. in 2005 will sign a new free trade deal, making it easier to sell Argentine beef in Europe.
Then there is China. In November, the Asian giant approved imports of thermo-processed bovine meat and cooked beef, as well as boneless beef from below the 42nd parallel.
China will allow boneless beef from above the 42nd parallel when the World Organization for Animal Health, or OIE, recognizes Argentina as free of foot-and-mouth disease via vaccination. Analysts say this recognition should come in early 2005.
Source: DTN AgDaily News; Dec. 9, 2004
Don't chunk that cell phone. Plant it!
British researchers have produced a biodegradable plastic cell phone cover imbedded with a sunflower seed. When discarded or placed in the soil, the sunflower seed can sprout while being nourished from the nitrates that form as the polyvinyl-alcohol polymer degrades. Phone maker Motorola backed the project.
Many consumers buy interchangeable plastic covers to personalize their standard phone, and 650 million cell phones are expected to be sold in 2004. Having the seed in the phone cover would encourage consumers do something other than throw the cover in the trash. The new phone cover, with seed, is not yet on the market.
Source: AFBF; Executive Newswatch; Dec. 9, 2004
Income tax code changes help farmers
Changes in the income tax code this year will help farmers. If you enjoyed a large jump in income this year, the farm income averaging provision could offer relief. Congress improved that provision this year by changing the alternative minimum income tax (AMT) to allow farmers to capture the full benefits of income averaging.
The Section 179 tax deduction increases to $102,000 this year. You can make qualifying capital purchases anytime before year-end and use the deduction to reduce taxable income.
If you need equipment, Section 179 offers more tax planning flexibility than the traditional depreciation schedule. However, future depreciation deduction will be reduced if you use Section 179, so check with your tax adviser.
Source: Doane's Agricultural
Report; Dec. 17, 2004
Record bushels of corn being used for ethanol
More than 12 percent of the 2004 corn crop will be used for ethanol production, according to projections from the Agriculture Department. The USDA estimates ethanol usage will be 1.43 billion bushels, and nearly 200 million bushels of the total will be used at 11 ethanol plants in Nebraska.
Source: AFBF; Executive Newswatch; Dec. 14, 2004
