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A Newsletter
Surveying National Events
Affecting Rural America.
Center for Rural Affairs
PO Box 406     Walthill NE 68067
(402) 846-5428
 www.cfra.org    info@cfra.org 
      April 2003
IN THIS ISSUE:
Payment Limits Adopted in Senate

Improved New Homestead Act
Corporate Farming Notes
South Dakota Rejects Family Farm Friendly Resolution
North Dakota Legislature Turns Back Attack on Corporate Farming
Eight Components of Rural Culture
Profitable Practices: Thriving Dairy
Living Livestock Loan for Beginners

Country of Origin Labeling (COOL) USDA Meetings
University of Nebraska Serves Local Food
Rural Education Day in Lincoln
St. James Marketplace Spruces Up

Feature Articles:
Strategies to Revitalize Rural America Series: Land Grant Colleges

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Center for Rural Affairs
PO Box 406
Walthill NE 68067

Payment Limits Adopted in Senate Budget Committee
Payment limit reforms again have a chance to become law as Congress works to finalize the federal budget. The savings would restore funding to the Conservation Security Program, a promising new effort to reward farmers and ranchers for stewardship.

The much needed payment limitation reform has found new life in the Senate Budget Committee Reconciliation Bill. The committee adopted the reform proposal on Thursday, March 13, 2003. Senators Grassley (R-IA), Johnson (D-SD) and Corzine (D-NJ) introduced the measure.

The package would impose a total payment cap of $300,000 on payments to large farms, including effective limits of $40,000 on fixed direct payments, $60,000 on counter cyclical payments, and $200,000 on loan deficiency payments. The nominal limits are half these amounts.

Loopholes are closed. Payments made as generic certificates are brought under the limits. And large farms could not exceed these limits by dividing into several corporations.


New Report Highlights Innovative Development  Policies
The National Governors Association recently published Innovative State Policy Options to Promote Rural Economic Development. The report includes case studies of good rural development policies and programs and the states that support them.

The report is online at the NGA website: http://www.nga.org .  Contact Paul Kalomiris, Senior Policy Analyst with the National Governors Association at 202.624.5379 or pkalomiris@nga.org  for more information.


Women’s Input on Health Issues Requested in Nebraska
The Nebraska Department of Health and Human Services is asking women across the state to provide their perspective on women’s health and wellness issues. The information will be used to develop a women’s health plan for Nebraska. The deadline for responding is April 15.

To participate, call toll-free: 1.877.257.0073 and ask for the survey form. You can also complete the survey online at the Nebraska Commission on the Status of Women website: www.women.state.ne.us  (look for the link at the bottom of the home page). Contact Kathy Ward at 402.471.3914 or kathy.ward@hhss.state.ne.us .


Get Your Coffee Mug while Supplies Last
Send or email us the name and address of three people not currently getting the Center for Rural Affairs free monthly newsletter. In return, we’ll send you a Center coffee mug.

Supplies are limited, so please act today.  Email your names to gregf@cfra.org.

Qualifying for the maximum legal payment would be greatly simplified. Farmers would not need to reorganize under the three entity rule. An individual who participates in just one farming operation could receive double the nominal limit, just like an individual who reorganizes his/her farm under the three entity rule. That would reduce farmers’ legal costs by allowing them to receive the maximum payment without hiring a lawyer to restructure the farm.

Under this bill, the savings would go towards restoring cuts to the Conservation Security Program (CSP). CSP, the best new innovative program in the 2002 farm bill, will reward farmers and ranchers to implement resource protection plans on their working lands.

Farmers are not well served by current law. It imposes no real limit on marketing loan gains, and loopholes ensure that limits on direct and counter cyclical payments affect almost no one who spends money on a good lawyer. Thus, it subsidizes the nation’s largest farms to drive their neighbors out of business by bidding land away from them.

Neither farmers nor rural America are strengthened when federal dollars fuel the consolidation of farming into fewer hands. It is destroying mid-size farms, depriving us of an entire generation of young farmers, and undermining the rural communities in which all farmers have a stake. That’s bad for all of us. Now is the time for change, positive change.

This legislation still has a long road to travel before becoming law. Its fate depends on strong grassroots support.

Contact: Traci Bruckner, tracib@cfra.org or 402.846.5428, extension 21 for more information about payment limits and other farm bill implementation issues.


An Improved ‘New Homestead Act’ Could Help Repopulate Rural America

The New Homestead Act has been reintroduced in the United States Senate. It offers bold action to reverse rural community decline.

Sponsored by Senators Bryon Dorgan (D-ND), Chuck Hagel (R-NE), Tim Johnson (D-SD), Sam Brownback (R-KS) and eight others, the Act offers incentives to live and establish businesses in counties that have lost at least 10 percent of their population over the last 20 years.

It includes two provisions championed by the Center:

  1. A 30 percent tax credit for investing in small owner-operated businesses.
  2. Tax incentives and matching funds for saving money to start a business, buy a home, get an education or pay for health care.

In addition, the Act would provide:

  • Forgiveness of 50 percent of college loans for recent graduates.
  • Up to a $5000 tax credit for home purchases.
  • Tax incentives for new buildings.
  • A federally subsidized $3 billion venture capital fund to invest in businesses.

The 30 percent tax credit for small business was not in the earlier version of the New Homestead Act. It is an important addition.

Development of locally owned small business works. It accounts for over half the job growth in farm and ranch communities in our region. By keeping ownership in the community, it keeps community members in control of their own future. And by dispersing ownership in the hands of many, it enables rural people to build assets, control their lives, and gain a stake. That gives them a reason and the capacity to give back to their community.

The New Homestead Act needs some refinement as it moves forward. As drafted, the tax incentives for new buildings and venture capital could be used to subsidize corporate mega farms.

The Act also needs companion legislation. It needs to be accompanied by farm policy reforms to strengthen family farms and ranches and new conservation initiatives that enable rural communities to use access to land and a quality environment as a development asset.

The New Homestead Act is not the whole answer. But it is a critical part of the comprehensive policy needed to reverse rural decline.

Most important, it makes a statement that the communities of rural America matter. Strong communities bring out the best in us. They restrain our most selfish impulses and elevate our instinct to help others; essential to building a strong society. It’s time for public policy to recognize that.

Agree or Disagree? Contact Chuck Hassebrook with your comments or questions at chuckh@cfra.org or 402.846.5428, extension 28. View a summary of the New Homestead Act.


Resolution Supporting Family Farms Fails in South Dakota
Resolution supporting family farming and ranching rejected by legislators, state secretary of agriculture

The House Agriculture Committee of the South Dakota Legislature in February voted 10-3 to kill a continuing resolution, HCR 1010. The resolution, drafted by Dakota Rural Action member and family farming leader Charlie Johnson with input from the Center, sought to promote the state of South Dakota as the “Family Farm and Ranch State.”

The intent of the resolution was to proclaim South Dakota as the family farm and ranch state “for purposes of economic development, tourism, environmental protection, and agriculture and food promotion” to “enhance the state’s economic and social position.”

Thirty-six legislators signed on as sponsors of the measure introduced by Rep. Begalka (R-District 4). The resolution noted the long-standing tradition, economic importance, consumer support, and over 50 years of continuous studies that together verify the desirability of family farming and ranching in South Dakota.

Nonetheless, when the resolution came before the committee it faced opposing testimony from South Dakota Secretary of Agriculture Larry Gabriel, along with representatives of South Dakota Farm Bureau and South Dakota Association of Cooperatives.

Despite testimony in support from Dakota Rural Action and Sen. Frank Kloucek (D-District 19), the state’s secretary of agriculture succeeded in preventing South Dakota from being acknowledged as supporting family farmers and ranchers.

It is unfortunate that the leading agricultural official of any state would actively oppose family farmers and ranchers.
 — Brad Redlin, bradr@cfra.org

Attack on Corporate Farming Law Killed in North Dakota Senate

House Bill 1396, first introduced in the state House of Representatives, was defeated on the floor of the North Dakota Senate by a vote of 36 to 11. The bill allowed as many as 15 unrelated individuals to invest in a farm corporation, eliminating the current requirement that investors be related to the fourth degree of kindred.

After HB 1396 passed the House on February 13 by a vote of 53 to 40, considerable pressure was brought on senators by farmers, ranchers, farm organizations, and concerned citizens.

Senator Aaron Krauter (D-Regent) said, “As a farmer, I need a targeted, effective farm program and open and competitive markets that give us a fair price. No family farmer or rancher I know is out looking for venture capital.”

In the end, most rural Republican senators joined the Democrats in voting against the bill
 — John Crabtree


Eight Components Help to Determine Rural Culture
Last month’s article on rural culture and its place in small rural communities created substantial feedback. This month we explore the topic again.

Rural culture can be divided into eight components, according to the Kansas Sampler Foundation. To help your community identify who it is and how it can keep its culture, examine these points:  Architecture, Art, Commerce, Cuisine, Customs, Geography, History, People

Architecture tells a story. Preservation of buildings preserves more than the building, it also preserves the culture that identifies the community. The same can be said for a community’s art.

Commerce is the way the community barters or trades for existence.

Commerce is the element of culture most under attack for small rural communities.

Cuisine has been an integral part of many small communities. Sometimes it is closely linked to the ethnic culture. Food and drink may be what brings notoriety.

Customs play an essential role in many rural communities. They define the ultimate culture of the community. Is your community known as a “Capitol” of the region? Extolling customs that make up a rural culture can truly make a community shine.

Closely linked to customs are people and history. History places a community where it is for a reason. Geography also helps that decision. Many Midwest communities resulted from the westward expansion of the railroad.

Other people located on rivers for commerce and trade and towns followed. Whatever the initial reason for the settlement, a sense of history continues as long as the physical structures of the community still exist.

After you’ve gathered information based on the elements of culture listed above, answer the question, “What does your community have that a visitor would want to see?” All too often our answer is, “We have nothing worthwhile!” Assess the situation and find what your community has to offer. You may be surprised.

Contact: Michael L. Holton, michaellh@cfra.org or 402.846.5428, extension 27 for more information about Project HOPE.


Corporate Farming Notes

Iowa’s Senator Charles Grassley continues to stand up for the nation’s family farmers and independent producers. After the National Agricultural Statistics Service released a report on the use of marketing contracts in corn, soybeans, and wheat production, the Senator said he won’t let concentration latch onto the grain market the way it has meat production.

The report found that during the 2001 crop year, 10.4 percent of domestic corn production, 8.6 percent of soybeans, and 4.8 percent of wheat was sold through marketing contracts.  Source: Successful Farming

USDA has given Nebraska and its farmers and ranchers more bad news. According to the federal agency, the state lost about 1,000 more farms last year. The actual number of farms and ranches in Nebraska in 2002 was 52,000, a 2 percent decrease from the previous year.

The loss was split evenly between operations above and below the $100,000 threshold for agriculture sales. USDA also reported that land in farms and ranches remained unchanged at 46.4 million acres. The average size of operations increased to 892 acres, up 17 acres from 2001.  Source: AP

In a sign that LB 754 is bad news for Nebraska counties, Platte County is hesitant about designating itself as a “Livestock Friendly County” according to the terms designated in the bill now under consideration in the Unicameral’s Agriculture Committee.

The county supervisors recently voted to table a resolution that would have declared the county “friendly” to livestock operations. A county supervisor voiced his opposition to the resolution because of the message it sends to lawmakers about local control.

His concern, like ours, is that this bill would shift the burden of proof from the livestock facility to the county, thus placing additional financial burdens on the county and undermining their ability to zone at the local level.  Source: Columbus Telegram

Contact: Jeff Fiegenschuh jefff@cfra.org or 402.846.5428, extension 30 for more information.


Country-of-Origin Labeling (COOL) USDA Meetings
USDA will hold meetings to seek input on the new country-of-origin labeling (COOL) law in Nebraska, California, Florida, Louisiana, Minnesota, Missouri, Montana, North Carolina, Pennsylvania, Texas, Washington, and Wyoming.

This is an opportunity to provide key input to USDA and dispel myths circulating about the costs of implementing COOL. For example, USDA’s estimation that the program would cost $2 billion is an exaggeration of the real costs due to some highly disputable assumptions.

USDA assumed that ALL farms, a total of 2 million, sell the commodities covered under the law, which is far above the more realistic estimate of 1.35 million farms. The wage costs for farmers, ranchers, food handlers, and retailers, who USDA assumes would be associated with program implementation costs, were also over-exaggerated by roughly 70 percent.

USDA has just released the dates and locations for the sessions. All sessions will be held from 1 - 4 p.m. local time.

April 29 -- Raleigh, NC
Jim Graham Building, Hall of Fame Room, 1025 Blue Ridge Road

May 1 -- Austin, TX
William B. Travis Building, Room 1-111, 1701 North Congress Ave.

May 2 -- Pasco, WA
Red Lion Hotel, 2525 North 20th Ave.

May 6 -- Kansas City, MO
Hilton Kansas City Airport, 8801 NW 112th St.

May 8 -- Kearney, NE
University of Nebraska at Kearney, 905 West 25th St.

May 14 -- Orlando, FL
Orange County Administration Building, Board of County Commission Chambers, 201 South Rosalind

June 4 -- Cody, WY
Holiday Inn, 1701 Sheridan Ave., Cody

June 6 -- Billings, MT
Holiday Inn, 5500 Midland Road

June 12 -- Sacramento, CA
California - EPA Headquarters, Joe Serna Jr. Building, Central Valley Auditorium, 1001 I St.

June 19 -- Baton Rouge, LA
Southern University Agr. Research and Ext. Center, B.A. Little Drive

June 24 -- St. Paul, MN
University of Minnesota, Earle Brown Continuing Education Center, 1890 Buford Ave.

June 26 -- Lancaster, PA
Lancaster Farm and Home Center, 1383 Arcadia Road


University of Nebraska, Lincoln Serves Local Foods

Since January students, faculty, and visitors to the UNL East Campus Union Cafeteria can choose grilled grass-fed beef burgers from Pawnee Pride Meats of Steinauer, Nebraska and pork burgers from Nebraska Farmers Choice of Auburn, Nebraska.

These new local products were introduced to the University through BuyNebraska, an initiative of the Nebraska Cooperative Development Center. Project coordinators Beth Anderson and Elaine Klaege promote and market Nebraska foods and goods both on the UNL campus and on the BuyNebraska online market.

Institutions, restaurants, families, and individuals are able to purchase a variety of Nebraska products at www.buynebraska.org . Organizers say that All-Nebraska Meals are in high demand by event planners. The website helps the planners to identify seasonally produced menus and to locate Nebraska products.

BuyNebraska is looking for Nebraska producers interested in marketing their products online. Producers control and maintain their own inventory list on the website. Technical assistance is provided by the BuyNebraska staff. An added incentive is reduced web-page rates for the earliest sellers.

Contact: Beth Anderson or Elaine Klaege at BuyNebraska, 402.471.3115, (toll free) 1.877.814.4707, or info@buynebraska.org for more information.


Feature article:

Strategies to Revitalize Rural America:
The Role of Land Grant Universities

Land grant universities have a critical role in revitalizing agricultural communities.

They can focus their research on strengthening family farming and ranching. They can develop outreach programs that support small business, leadership, and community development. And by making education affordable and accessible to rural people, they give them access to the knowledge they need to thrive and lead their communities in the 21st century.

Refocusing ag research
Choices about what research is done shape agriculture. The past focus of agricultural research has driven technological change in directions that reduce opportunity in agriculture and rural communities.

The emphasis has been on developing expensive new technologies for input companies to sell that enable fewer and larger farms to produce the nation’s food. In many cases, private companies developed the products, and land grant universities refined the production systems to put them to use.

That has helped corporations that sell inputs to farmers capture a bigger share of the profit in the food system. As their increasingly expensive inputs replace the management and skills of producers, they do more of what is involved in producing food. And their profit share grows.

Roundup Ready soybeans for example, have replaced much of the management in corn-soybean production. Seed prices and company profits have risen. Farmers’ margins have narrowed, in part because seed costs have risen and in part because the reduced management requirements have enabled large farms to grow faster and drive up cash rents and land purchase prices.

The farm and ranch share of food system profit is shrinking at a rate that would take it to zero by the year 2030, according to research by University of Maine Agricultural Economist Stewart Smith.

Agricultural research has also enabled the shift to large corporate operations by creating production systems where management can be separated from labor and moved into the office. That allows labor to be provided by unskilled low-wage workers.

The development of confinement systems with a controlled environment was the linchpin in the industrialization of hog production because it routinized the work and reduced the judgment that had to be exercised by the person in the barn.

Our land grant universities could be powerful tools to steer technology in a different direction. Every relevant poll demonstrates that most people don’t want the corporatization of agriculture and dying rural communities.

As public research institutions in a democratic society, our land grant institutions have an obligation to seek out and prioritize research that responds to the needs and aspirations of their constituents and helps create the kind of future they want.

There are promising research avenues for strengthening family farming and ranching. We need research focused on developing new knowledge and production systems that enable producers to increase their incomes by using more intensive management and skilled labor in the field and barn to reduce the need for purchased inputs and add value to their production.
Such research would build on the competitive strength of family operations relative to corporate agriculture – the presence of a highly motivated, skilled and experienced owner operator working in the field and barn.

More research is needed in new livestock production systems like hoop houses for hogs and intensively managed grass-based dairy and beef cattle systems that minimize capital expenditures and maximize management in the field and barn.

A great need exists for research in agro ecology – the study of the interactions between living organisms in the field and how they are affected by management practices. Such research would provide new knowledge and management strategies that farmers could use to minimize pest problems, enhance nutrient availability, and reduce the need for purchased inputs.

Research is needed to enable family farmers and ranchers to secure premium markets. Today, the best opportunities to increase farm income lie in responding to unique demands of consumers not met by conventional agriculture. There are a variety of high value niche markets.

Land grant universities can help family farmers and ranchers capture those opportunities by providing market research – to determine the demand, price, and key product characteristics for premium markets – and production research on how to produce for them.

Although individual researchers have responded to many of these needs, there is a profound absence of institutional leadership. It’s time for land grant universities to focus their agricultural research programs on supporting the kind of agriculture most of their constituents want. There are good places to start, including:

  • Create an integrated research strategy to reinvigorate family farm and ranch livestock production. Family farm hog and dairy production is particularly under siege. Rural people and the public consistently demonstrate a strong preference for family farm livestock production. Our land grant universities should respond.
  • Create an integrated research program on strategies to earn a middle class income on 640 acres. Analyze the strategies being used by the farmers making it work. Focus research on production strategies and systems that generate more income per acre.
  • Establish research centers focused on enabling family farmers and ranchers to tap high value markets.
  • Create a new research and administrative position with the responsibility of analyzing alternative directions for future research, identifying new research with potential to increase family farm opportunities, and working with land grant ag researchers to plan their future research so it strengthens family farms and ranches.

Land grant universities also have critical roles to play in small business and community development. They have broad expertise and the capacity to deliver it to rural people through their extension services.

Provide training and technical assistance to support small business formation
Land grant universities can offer small business management courses and technical assistance in business planning. They can offer courses in E-commerce to help family farms and small businesses develop strategies to use the Internet to reach new distant customers.

They can provide technical assistance in transferring small businesses from retiring owners to new entrepreneurs, including developing innovative transfer models and contracts that work for both parties. Extension programs could help link retiring business owners with prospective entrepreneurs interested in taking over.

Support rural development initiatives and enhance the effectiveness of rural leaders
Land grant colleges can provide community-based educational programs on alternative development strategies, assist communities in analyzing development options, and link communities to development resources.

They can provide technical assistance in community planning that engages the public and develops broad buy-in. They can deliver leadership development programs in rural communities to help rural leaders hone their skills.

Provide rural people access to lifelong learning through distance education
If rural small businesses and family farms and ranches are to compete with large corporate enterprise, they must have access to educational opportunities. If rural communities are to thrive, rural citizens and leaders must have opportunities to build their knowledge and skills in community development and governance.

The Internet makes it possible to deliver college courses directly to the homes of rural people. But it is expensive and time consuming to develop distance education courses.

By making distance education a priority, identifying the educational needs of rural people and making those courses available, land grant universities can help build a future for rural people and communities.

Keep higher education affordable and accessible
A well educated citizenry and work force is a critical development asset to any community. That is no less true in rural communities, where a higher proportion of people are expected to be leaders – in their own businesses and in community institutions. But incomes are lower in rural areas, making the rising cost of education a greater burden and barrier.

Land grant universities were created to make education affordable and accessible to ordinary people. Fulfilling that mission is critical.

By keeping tuition at affordable levels and providing financial aid to low and moderate income students, land grant colleges can ensure rural people access to the education that can help rural America thrive in the future.

One innovative approach would be to provide college loan repayment assistance to students who work or start businesses within the state but don’t make enough money to make their student loan payments.

Currently, students who have to borrow heavily to get through college are almost forced to move to metropolitan areas (often out of state) where pay is higher.

People’s universities
Land grant colleges were created to be the people’s university – to help people build better lives and stronger communities. That mission is as critical to rural America today as at any time in history. It should remain a priority of land grant universities.

Contact: Chuck Hassebrook, chuckh@cfra.org or 402.846.5428, extension 28 for more information. This is the fourth article in our series on Strategies to Revitalize Rural America.


Rural Education Day Draws Small School Advocates to the Capitol in Lincoln, Nebraska

Citizens gathered on behalf of small schools in Lincoln on February 24 for Rural Education Day 2003. The day-long event held at the state Capitol culminated with participants testifying before the Education Committee.

Here is a list of the bills under consideration by the committee and the Center’s position on them. You can view our testimony on some of the bills through links below.

  • LB 556, introduced by Senator Beutler, would study school structure and make recommendations to the Legislature about the number and configuration of school districts to best serve the educational needs of Nebraska’s children. The Center opposed this bill.
  • LB 680, introduced by Senator Wehrbein, would create a Commission for Quality Education to find the most efficient way to optimize spending for k-12 education and potentially reduce/reorganize school districts while providing for optimal education for all state students. We did not take a position on this bill.
  • LB 597, introduced by Senator Synowiecki, would study the feasibility of countywide school districts. The Center did not take a position on this bill.
  • LB 785, introduced by Senator Hartnett, would require all school districts in the state to offer k-12 education and maintain a student population of 1,600 or lose half of the state aid the district would otherwise receive. The Center opposed this bill.

Follow action of the Nebraska Legislature by visiting www.unicam.state.ne.us. You can watch floor action, check the status of a specific bill, find contact information for the state senators, or get a weekly update of the happenings at the capitol.

Contact: Kim Preston, kimp@cfra.org if you have questions about rural schools. Sponsors of Rural Education Day included the Center, Class I's United, and the Nebraska Coalition for Educational Equity and Adequacy.


Profitable Practices Series: A Thriving Dairy Remains Operational
A young couple moves from a rented dairy farm in southern Minnesota to a 250-acre dairy operation in Stratford, Wisconsin.

In 1996 Lucy and Scott Adank were operating a dairy farm near Rochester, Minnesota, but they were looking for a change. Rent on the land was high, and they wanted to be closer to Scott’s parents. A local banker told them about Wisconsin Farm Link, and they decided to give it a try.

Wisconsin Farm Link matches prospective and retiring farmers. It is modeled after the Center’s Land Link. Profiles of potential matches are sent to those looking for land and those looking to pass on a farm. Pursuing the contacts is each individual’s responsibility.

Eugene Nikolai was looking for someone to take over his 250-acre dairy operation in central Wisconsin. He tried working with his children to maintain the family operation without success. The land could have been split up and sold, but Eugene didn’t want that. He had been on that farm for 35 years and wanted it to stay as a dairy

Making the Numbers Work
The Adanks sold their equipment and all but 27 cows from their Minnesota farm and headed east to Eugene Nikolai’s. Eugene offered his land and equipment to the couple at the low end of their appraised value.

Scott and Lucy purchased the Nikolai’s home, 80 acres, and 50 cows. They hired custom fieldwork instead of buying the equipment. They rent the remaining 170 acres with the first option to buy within 5 to 10 years. Eugene maintains a low rental rate.

The couple likes being in a region with a strong dairy emphasis. Scott and Lucy worked with the local bank to borrow money for the operation. They also qualified for a Farm Service Agency guaranteed loan, but hadn’t used it yet.

The Old and the New
The Adanks have switched to rotational grazing. According to Scott, this is one of the most important factors in the economic success of the dairy.

Eugene maintains a hands-off policy with the Adanks, but is very supportive. He has been a tremendous help to the couple as they take over. Scott feels that their shared goal — maintaining a thriving dairy operation on this farm — is a large part of the success of the transfer.

Contact: Joy Johnson for more information on farm transition services, joyj@cfra.org or 402.846.5428, ext. 22. This the tenth installment from Profitable Practices and Strategies for a New Generation, available on the web at www.farmprofitability.org .


New Program Offers Livestock Loans to Beginning Farmers
The Living Livestock Loan is part of a new effort to help beginning farmers get their careers underway.

The Center will be providing loans of livestock to a few beginning farmers in northeast Nebraska to kick-off a new program. The livestock loan will not require a cash repayment. Joy Johnson, farm transition specialist at the Center, says of the repayment method, “You may have experienced something similar when someone passed an act of kindness on to you.”

Now it’s the Center’s turn to help distribute acts of kindness. We are partnering with Heifer International, Minnesota’s Land Stewardship Project, Pennsylvania Farm Link, and the University of Vermont’s Land Link program to offer a formal program called Farmers – A New Generation.

Through this collaboration new farmers will be provided with tangible resources: whole farm planning, farm business planning, and a support base that will include mentors, along with the living livestock loans to build a strong farm foundation. Individuals in northeast Nebraska will be eligible to participate this year, farmers from the western end of the state hopefully within the next two years.

Eligible participants will receive a small number of bred livestock and will be required to pass on animals of similar age and condition to another eligible borrower within 6 breeding cycles. A cattle example illustrates how the loan will work.

Young John Brown receives a gift of 9 first-time bred heifers. After the third breeding cycle, John will pass 3 first-time bred heifers to Sam Williams. After the fourth and fifth breeding cycles, John will have completed passing on the gift. Sam and others will continue to pass on their gifts.

While the size of the individual gift will be small, the multiplier affect could be sizeable. The living livestock loan is designed to offer a boost, not as a single strategy. It offers flexibility to explore direct marketing and other unique alternative farming enterprises that livestock can support.

We need beginning farmers, mentors, and advisors for Farmers – a New Generation. Let us know how you would like to participate.

Contact: Joy Johnson, 402.846.5428, extension 22, or joyj@cfra.org.


St. James Marketplace Readies for Lewis and Clark Bicentennial
A Value Added Development Program grant, a farm bill innovation, is helping a group of farm women revitalize an historic property and their town. Located near Nebraska’s scenic Outlaw Trail, the St. James Marketplace will be a welcome stop for travelers.

St. James Marketplace is located less than ½ mile north of Nebraska’s Outlaw Trail Scenic Byway (Hwy 12). At one time St. James was tagged to be the county seat of Cedar County, and today, only two businesses (including St. James Marketplace) and three houses remain.

Late in 2002, negotiations began between the farm women of St. James and the Archdiocese of Omaha on purchasing the closed Ss. Philip and James School. Today, the purchase is a reality. The women, with volunteer hours from husbands, children, relatives and friends, are in the process of getting their kitchen qualified as an inspected/licensed facility. When that happens, the kitchen will be used for their catering services and some baking.

None of the money used to purchase the school or to update the physical premises comes from grants. A recently awarded VADG planning grant will pay 50 percent of the costs of organizing the Marketplace. The St. James women formed a non-stock cooperative, and a feasibility study and strategic plan is underway by the College of St. Mary in Omaha. A business plan is being written, and a website designed.

Significant changes occurred between the 2001 and 2002 marketing season, which usually runs from May thru September. In 2001, 16 vendors displayed locally grown/raised/crafted products. In 2002, the number rose to 28 vendors. Total sales for vendors rose 79.1 percent. With the upcoming Lewis and Clark Bicentennial, all expectations are that growth will continue.

A major marketing advantage for vendors of St. James Marketplace is the proximity to historical sites located close to or along the Outlaw Trail and Shannon Trail. Tourists traveling that area during the next three years in observance of the Bicentennial will certainly be stopping at the Marketplace.

The unique quality products featured by area residents – products made from things grown/raised/crafted on local farms (value added items) – make it almost certain that St. James Marketplace will impact the economic lives for many area families, and will reinvigorate the St. James area of Cedar County for long to come.

Contact: Mike Heavrin, 402.846.5428, ext. 15 or mikeh@cfra.org for information.


Revised:  March 21, 2007  

Editor: Marie Powell