Georgia Legislature Rushes to Regulate Reptiles; Hasty Move Could Cost Jobs

/PRNewswire/ -- Senate Bill 303, a bill that seeks to regulate the ownership and trade of certain reptiles is being rushed through committee. The bill introduced by Senator Douglas (District 17) would require a cost prohibitive permit system and micro chipping provision that could put reptile farmers out of business and take away the ability of people to own animals that are currently legal to own in Georgia. Penalties for violations of the statute could bring fines of up to $1000 and a year in jail.

Herpetoculture is a non traditional agricultural pursuit that represents a $3 Billion trade in the United States. Similar legislation at the federal level, although pushed aggressively by the Animal Rights Industry, has stalled do to severe impacts to small business and poor quality of underlying science being used as justification to shut down trade. The US Chamber of Commerce opposes the federal proposal citing, "this legislation would adversely impact tens of thousands of businesses". A group of top scientists from University of Florida, Georgia Southwestern State, The National Geographic Society commented in regards to "evidence" being used to condemn the industry, "It is a misrepresentation to call the document 'scientific,'" and further stated, "As written, this document is not suitable as the basis for legislative or regulatory policies."

The United States Association of Reptile Keepers, a reptile industry advocate, suggests a more balanced approach such as the law just recently passed in NC requiring caging standards and escape prevention protocols. Andrew Wyatt, President of USARK, insists that what is being proposed in GA will not add any level of secure containment. Wyatt says, "the bill we wrote and helped pass in NC addresses specific concerns with secure containment, safety and escape prevention that are not addressed in S303. Additionally it costs nothing and does not require state Dept of Natural Resources to administer. It is written into criminal statute." The USARK proposal actually provides a framework of best industry management standards that protects the public and the environment while allowing responsible ownership and trade to continue.

Georgia bill S303 will go to hearing for the second time before the Senate Natural Resources Committee on Wednesday, February 3rd at 2pm in the State Capitol.

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Georgia farmers harvest record yields

Georgia row-crop farmers worked hard on their fields this growing season, and Mother Nature gave them some favorable “calls.” They could break records. This coupled with fair prices could lead them, if not to a conference championship, to at least what could be called a “winning” season.

Most Georgia farmers plant more than one crop during a season, usually managing a combination of peanuts, cotton, corn or soybeans. Across the board, they are looking at record or record-tying yields.

Farmers planted 1 million acres of cotton this year and expect to produce1.8 million bales. (A bale is 480 pounds of lint.) This is slightly less than earlier predictions, but still 200,000 bales better than last year, according to the Georgia Agricultural Statistics Service.

“Certainly the profit potential is there for cotton when you consider the size of the crop, which will be by most accounts phenomenal,” said Don Shurley, a cotton economist with the University of Georgia Cooperative Extension.

Right now, the state’s average yield is forecast to be 873 pounds per acre, or 24 pounds more than the previous record set in 2005. Harvest will not be complete until later this month or next.,

Along with the yields, prices are also good at 70 cents per pound of lint right now. “And any price that starts with the number ‘7’ gets cotton farmers’ attention,” Shurley said.

Overall, U.S. and world production is down 5 percent this year. Demand for U.S. cotton has rebounded by 2.5 percent after a major slump last year, which has kept prices higher.

Georgia peanut yields are expected to be 3,500 pounds per acre, which would be 50 pounds more than the record set in 2003, according to GASS.

“If we do reach or exceed 3,500, it will be amazing, considering the delayed planting in spring and the very undesirable harvest conditions,” said John Beasley, a UGA Extension peanut agronomist.

The No. 1 reason, he said, Georgia may reach the record is the widespread use of improved peanut varieties, like Georgia-06 G, Florida-07 and Tifguard. These varieties have high levels of disease resistance and perform with good rainfall, which most of the state received after June.

Prices for this season’s peanuts are $400 per ton, or $50 to $100 less than last year. This decrease is due to 1 million tons in surplus that hung over preplanting decisions and contract offers farmers were receiving, said Nathan Smith, a UGA Extension economist.

Georgia peanut farmers, who produce half of the nation’s crop, responded to the surplus by planting 505,000 acres this year, or 185,000 acres less than last. The U.S. will produce 1.8 million tons this year, 300,000 tons less than the expected U.S. consumption. This will shrink the surplus which will be good for prices next year, Smith said.

Demand for peanuts has recovered from the salmonella scare associated with a Georgia processing facility earlier this year. It is on track to be up 2 percent from last year, Smith said.

Georgia’s average corn yield will be 140 bushels per acre, tying last year’s record. Timely rain and irrigation helped the crop. Prices are good, too, Smith said, around $3.85 to $4 per bushel. An increase in demand for ethanol, which is made from corn, has bolstered prices.

Soybean farmers will also tie a yield record this year, averaging 33 bushels per acre. Prices for soybeans are high at $10 per bushel. China’s demand for U.S. soybeans has fueled the high prices. They will import 614 million bushels this year, double what they imported last year.

Overall input costs, or what farmers spend to produce a crop, stayed the same or decreased 5 percent to 10 percent from the previous year, Smith said. This helps farmers’ bottom lines.

Georgia’s growing season results will vary from farm to farm and so will profits, he said. Some farmers spent more, for example, to control insects or diseases in certain locations.

“But overall, things do look better now compared to what we were forecasting earlier this year,” Smith said.

By Brad Haire
University of Georgia

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Major buyer quits Georgia tobacco

In an industry slowly fading in Georgia, tobacco growers got a recent kick in the pants when their major purchaser announced it would no longer buy from them.

At a meeting in Alma, Ga., Oct. 14, Philip Morris USA announced to more than 75 growers that it would honor the three- and five-year contracts it still has with growers, as long as they meet the contracts’ requirements. But it will not give new contracts, said J. Michael Moore, tobacco specialist with University of Georgia Cooperative Extension.

The company will stop buying from Florida growers, too, essentially ending its business in the two states.

“This was no doubt a major blow. Not only to participating growers, but also to south Georgia’s economy,” said Moore, who attended the meeting.

In 1996, Georgia’s tobacco crop was worth $206 million. Last year, it was worth $57 million.

The company buys roughly half of Georgia’s crop, Moore said. The announcement affects half of the 200 to 225 tobacco growers left in the state.

Growers and industry leaders are currently trying to get the remaining three companies still buying in Georgia to buy more or persuade new companies to do business in the state, Moore said.

“We hope this is something we can overcome,” he said.

But it’s going to be a challenge.

With higher federal taxes on U.S. cigarette consumption and the Federal Drug Administration’s newfound regulatory sway over the product, companies aren’t looking to carry a big inventory of tobacco. It’s estimated that some have enough low-quality tobacco now to last them for the next decade, Moore said.

The number of tobacco growers continues to decline in Georgia. There were around 350 two years ago. In 2004, there were 1,000.

That same year, the federal government ended its Depression-era tobacco quota program at the growers' request. It provided price support but restricted how much they could grow and where. Growers and quota owners were compensated for the end of the program. They now can grow as much tobacco as they feel they need to fill contracts.

Filling those contracts was a challenge this year in Georgia, where disease and wet, stormy weather hit springtime planting and summer harvest hard. Of the 15,000 acres planted, Moore said, 1,700 acres or more were lost.

According to the Georgia Agricultural Statistics Service, Georgia’s average yield this year is 1,500 pounds per acre, or 600 pounds per acre less than last year. This is the lowest average yield ever recorded in the state.

The decision to grow tobacco in Georgia has become harder and harder for growers to make in recent years, Moore said. Many have sold their tobacco-related equipment, which can’t be used for any other crop.

Canadian growers are looking to get back into the tobacco business, calling down their interest to buy good equipment. If a Georgia grower is too uncertain about next year’s crop, he said, they may want to think about selling equipment while they can get a good price for it.

By Brad Haire
University of Georgia

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SBA Disaster Loans Available Following Secretary of Agriculture Disaster Declaration in Georgia

(BUSINESS WIRE)--The U.S. Small Business Administration announces today that federal economic injury disaster loans are available to small businesses, small agricultural cooperatives and most private non-profit organizations of all sizes located in the State of Georgia as a result of excessive rainfall, flash flooding, severe wind, tornadoes and lightning that began on March 26, 2009.

These loans are available in the following counties: Appling, Atkinson, Bacon, Baker, Ben Hill, Berrien, Bibb, Bleckley, Brantley, Brooks, Bryan, Bulloch, Butts, Calhoun, Camden, Candler, Charlton, Chatham, Chattahoochee, Clay, Clinch, Coffee, Colquitt, Cook, Crawford, Crisp, Decatur, Dodge, Dooly, Dougherty, Early, Echols, Effingham, Emanuel, Evans, Glynn, Grady, Houston, Irwin, Jasper, Jeff Davis, Johnson, Jones, Laurens, Lee, Liberty, Lamar, Lanier, Long, Lowndes, Macon, Marion, McIntosh, Meriwether, Miller, Mitchell, Monroe, Montgomery, Peach, Pierce, Pike, Pulaski, Quitman, Randolph, Schley, Screven, Seminole, Spalding Stewart, Sumter, Talbot, Tattnall, Taylor, Telfair, Terrell, Thomas, Tift, Toombs, Treutlen, Turner, Twiggs, Upson, Ware, Wayne, Webster, Wheeler, Wilcox and Worth in Georgia.

“When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, the Small Business Administration issues a declaration to assist small businesses and most private non-profit organizations of all sizes affected by the same disaster,” said Frank Skaggs, Director of SBA’s Field Operations Center East.

Under this declaration, the SBA’s Economic Injury Disaster Loan program is available to farm-related and nonfarm-related small business concerns, small agricultural cooperatives and most private non-profit organizations of all sizes that suffered financial losses as a direct result of this disaster. Farmers and ranchers are not eligible to apply to SBA.

Eligible small businesses and non-profit organizations may qualify for loans up to $2 million. These loans are available at a 4 percent interest rate with loan terms up to 30 years. The SBA determines eligibility based on the size of the applicant, type of activity and its financial resources. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. Under this disaster declaration, the SBA cannot provide loans to agricultural producers.

Disaster loan information and application forms may be obtained by calling the SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the hearing-impaired) Monday through Friday from 8 a.m. to 6 p.m. EDT or by sending an email to disastercustomerservice@sba.gov. Loan applications can be downloaded from the SBA’s Web site at www.sba.gov/services/disasterassistance. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

Those affected by the disaster may apply for disaster loans from SBA’s secure Web site at https://disasterloan.sba.gov/ela/.

Completed loan applications must be returned to SBA no later than March 22, 2010.

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Soggy spring weather wallops Georgia wheat

After rough spring weather, the heat is on. And some crops are doing better than others in Georgia fields, where farmers are finishing up a disappointing wheat harvest and hoping the rain hasn’t stopped for the year, say University of Georgia crop experts.

Going into harvest a month ago, Georgia’s winter wheat crop was in good shape, said Dewey Lee, UGA Cooperative Extension small grains expert. But heavy springtime rain delayed harvest. Now, the quality of the 240,000 acres of wheat to be harvested is poor due to sprouting in the field, something farmers don’t want to happen.

“Soft red winter wheat is notorious for sprouting under rainy conditions,” he said. “Once soft wheat dries in the field to a harvestable condition, if the crop experiences prolonged rainy conditions, the seed will sprout. … This crop was pretty much disastrous. We had the opportunity to obtain good yields (50 bushels per acre) but have fallen below that.”

Right now, farmers are getting $3.50 to $4 per bushel for damaged, poor-quality wheat and $4 to $5 for good-quality wheat, said Nathan Smith, a UGA Extension farm economist. Farmers need at least $4 per bushel to break even this year.

“It’s a challenge to grow wheat in Georgia and get consistent returns each year,” Smith said. “This was just one of those years where neither prices nor the yields were there.”

Georgia is expected to produce 11.5 million bushels of wheat this year, according to the Georgia Agricultural Statistics Service. This is half of last year’s total production.

Other Georgia crops face problems, too.

Georgia’s 350,000 acres of corn is at a stage where it needs at least a third of an inch of water each day, Lee said. Most Georgia soil holds an inch of water for only four days. After that time, it is dry.

Right now, corn planted in irrigated fields is in good condition. But every day without rainfall now hurts plants not able to get irrigation, he said.

“We had healthy plants going into this hot weather. But the heat is having a negative impact,” Lee said. “For farmers lucky enough to get afternoon thunderstorms, it’ll be a yield saver this time of year.”

During normal spring, Georgia farmers start planting peanuts in late April and finish in 40 days. This year, due to crazy springtime weather, it took 75 days to complete planting for the state’s expected 500,000 acres, said John Beasley, UGA Extension peanut expert.

“The word I have for this planting season is ‘discombobulated,’” said Beasley. “And it was as discombobulated as I have ever seen.”

Now that planting is over and most plants are coming up, the crop is looking OK, he said, considering. But 50 percent of the crop was planted in June. Typically, only 10 percent is planted in this month.

This means peanut harvest will push into mid October. Normal nighttime temperatures then will be in the lower 60s, a range peanuts can tolerate. If temperatures drop any lower, maturity and yields will be hurt.

According to a weekly crop report from GASS, 70 percent of Georgia’s tobacco crop is in fair to good condition. The remaining 30 percent is in poor to very poor condition.

Most of the state’s soybean and cotton plants are in good to fair condition for this time of year.

By Brad Haire
University of Georgia

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U.S. agriculture can feed the growing world

It is crystal clear that rising population and growing nutritional demands will require food production to double by 2050. Yet, land available for food production is unlikely to increase, and, in fact, may decrease.

Where the increase in food production will occur depends upon geopolitics, climate or climate changes and environmental considerations.

Europe isn’t likely to adopt new technologies to increase food production. In the United States, agricultural patterns are changing with climate changes. Climate change will likely exacerbate drought conditions in western United States. California’s current drought may become permanent.

The Southeast has a long growing season, abundant sunlight, good soils and reasonable amounts of rainfall and groundwater. Agriculture in the region must grow to meet world food demand.

Keeping pace with population

For years, Malthusian predictions were that mass starvation was inevitable as populations grow. The evidence has been just the opposite. Food production has kept up with population and improved nutrition of less-developed societies. In fact, there is a worldwide food surplus. But there are still starving populations. Most often the situation isn’t lack of food, but an inability to move it to where it’s needed, often due to local political instability.

There is every reason to believe that rising yields and improved nutrition in agriculture will continue for many years. Most yield increases have come from new technologies from the U.S. system of agricultural research and education.

The partnership of land-grant universities, the federal government through the U.S. Department of Agriculture and private industry has allowed American farmers to maintain the technological advantage for a century. As someone who works in the area, I’m certain this system will continue to produce the discoveries that have driven this success. Yet, as other countries adopt the technologies we develop then modify them for low-cost production, we are under constant stress to push farther ahead of the curve. This issue is particularly important for labor-intensive crops.

In Georgia, farm production continues to increase and remain adaptable. Strong evidence is shown in changes from 2007 to 2008. 2007 was a terrible year for Georgia farmers. One of the worst droughts on record played havoc on nearly every aspect of agriculture. Some commodities like the green and landscape industries were decimated when watering bans assured new plants wouldn’t survive. But, despite the drought and economic downturn, 2008 was better, in terms of farm-gate value, than 2007.

This is a testament to the tenacity and creativity of farmers who can still make money in the face of so many problems. For 2008, the total value of farming and processing in Georgia was $55 billion. The industry generated 356,000 jobs for the state, a source of jobs that has remained stable. This confirms what we have known for many years: agriculture, while not immune from economic downturns, is less impacted than most sectors of our economy.

Misperceptions

There is a general perception that we have fewer farms than in the past and that farms are consolidating and getting larger. The opposite is true. We have more farms than we did 10 years ago, and farms are smaller than a decade ago. This trend is likely attributable to growing demand for locally produced food. Americans have a renewed desire to know where their food comes from.

Fortunately, our political leaders understand food production is an issue of national security. We can’t always count on other countries for food. No one wants our food production shipped overseas. It’s bad to be dependent on imported fuel. It would be disastrous to depend on other nations for food. We have only an 11-day food supply in the U.S. food chain. If that chain is broken, critical problems arise immediately. We never want to be in a position where food can be used as a political weapon against us.

Unlike other industries that can revive after prolonged inactivity, agriculture is different. It may be impossible to ever bring this knowledge back once lost. It’s not just training workers in the science and practices of agriculture. Agricultural knowledge is location-specific, learned over generations and part of the ingrained heritage of a farming community.

Water planning needs

Water is an overarching factor affecting the future of agriculture in the U.S. The western U.S. has good water policies. The Southeast, however, always assumed that water supplies were unlimited. Unprecedented drought over the past two years demonstrated water isn’t unlimited.
States need planning, development and deployment of infrastructure, policies and technologies to meet future water demands in agricultural and non-agricultural use. This is critical during drought. There’s no reason to dump millions of cubic meters of water into the Gulf of Mexico at the expense of agriculture. Water shortages in agriculture can irreversibly harm agriculture.

The U.S. needs to aggressively promote our agricultural products around the world. Foreign sales of agricultural products remain one of the bright spots for U.S. trade. Future trade agreements shouldn’t be made that hurt U.S. agriculture. In 2007, agriculture was one of the areas that alleviated our trade deficit. That year, we imported $79 billion versus $116 billion in exports. Don’t kill the golden goose.

A seldom considered issue -- but one that will have a significant impact on U.S. agriculture’s future -- is supporting economic development in poor countries. Future demand for U.S. agricultural products will come from rising incomes and consumer demand in these countries. We can help the world’s poor and U.S. agriculture at the same time.

Food and fuel

U.S. agriculture can not only feed the world, it can provide energy. The Southeast has been labeled the Saudi Arabia of bioenergy. Energy production from grains, especially corn, is a short-term solution. Cellulosic ethanol is the long-term hope for energy production from plants, especially pine trees, something Georgia has plenty of. However, technological breakthroughs must be made before this happens. Whether they come next year or 10 years from now remains to be seen.

Farmers are good stewards of the land and natural resources. Agriculture is a strong, stable segment of the nation’s economy. Given sound policy, strong support, solid investment in research and education, and stepped-up focus on food safety, security, science and trade, U.S. agriculture is poised to meet the demand to feed and nourish the growing world population.

By J. Scott Angle
University of Georgia
College of Agricultural & Environmental Sciences

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Georgia Announces Specialty Crop Grant Program

The Georgia Department of Agriculture (GDA) is pleased to announce a new grant program to fund projects that enhance the competitiveness of specialty crops. The Specialty Crop Block Grant Program was established by the 2008 Farm Bill.

The GDA has set up a competitive grant process to award these federal funds in 2009. GDA will be administering funds totaling $909,576.44 for the development of projects that will support and enhance the competitiveness of Specialty Crops in Georgia. GDA intent is to fund projects that can produce the highest degree of measurable benefits to Georgia’s specialty crop producers in relation to each dollar spent.

Projects that benefit the following specialty crops are eligible; Fruits, vegetables, tree nuts, dried fruits, horticulture, Christmas trees, turfgrass/sod, and nursery and greenhouse crops are eligible specialty crops.

GDA is seeking applications from organizations that seek to enhance the competitiveness of specialty crops in Georgia including; non-profit organizations and corporations, commodity associations, state and local government entities, colleges, and universities. Applicants must reside or their business or educational affiliation must be in Georgia.

The United States Department of Agriculture (USDA), Agricultural Marketing Service (AMS) Rules state: Grant funds will NOT be awarded for projects that solely benefit a particular commercial product or provide a profit to a single organization, institution, or individual. Single organizations, institutions, and individuals are encouraged to participate as project partners.

Grant applications must be submitted by 5:00pm on July 17, 2009. Please refer to the links on this page for the grant application, guidelines, and additional information.

GDA will accept grant applications with a value of up to $150,000 and a minimum of $10,000. Grants will be awarded for up to three years. Once all applications are submitted to GDA, each one will be carefully reviewed and evaluated. All GDA approved projects will then be developed into one grant submission to the USDA. Upon approval from USDA, GDA will notify applicants (sub-grantees) of their status. No final awards to any sub-grantee will be made until a final grant award is made to GDA (grantor) by USDA. Final approval is expected by September 30, 2009, but is subject to change.

For questions or additional information contact:
Georgia Department of Agriculture
Specialty Crops Block Grant Program
19 Martin Luther King Jr. Dr. SW
Atlanta, GA 30334
or email: grants@agr.state.ga.us

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Peanut’s sleep habit helps farmers fight diseases

The peanut plant grows a thick canopy of compound leaves close to the ground. This structure provides for good nuts, but makes it hard for farmers to fight diseases that attack near the soil. The plants do something naturally that can help farmers fight these threats, says a University of Georgia researcher, and the difference can be night and day—literally.

In the field, the peanut plant spreads its growth to capture sunlight. It uses it to make sugar and grow healthy peanut pods below ground, says Tim Brennemen, a plant pathologist with the UGA College of Agricultural and Environmental Sciences in Tifton, Ga.

But at night, he said, the plant does the opposite. Instead of spreading out, its paired leaflets fold up, often revealing the base of the plant and the soil under it. Farmers can use this natural event to get fungicides through the plant’s canopy and to its base where soil-borne diseases attack.

After the tomato spotted wilt virus, Brennemen said, white mold is the peanut’s toughest enemy. It attacks low-lying parts of the plant and produces oxalic acid that kills the plant. It can go underground, too, and destroy developing peanut pods.

To fight disease, farmers typically spray peanuts with fungicides six to seven times a year. Two to three of these sprays are primarily to prevent or control white mold, he said. They almost exclusively do this during the day in the United States.

In Nicaragua a few years ago, Brennemen learned farmers there spray fungicides at night. They do this to fight white mold, which thrives in hot, humid weather. Farmers there knew the nighttime habits of the peanut plant and used it to their advantage.

Having toyed with the idea before, Brennemen and CAES graduate student Joao Augusto began experiments three years ago to see if nighttime spraying could benefit Georgia farmers. What they found surprised them.

The openness of the canopy at night allows more of the fungicide droplets to reach the lower parts of the plant. The fungicide lasts longer there, too, protected during the day by the open leaves, which prevent UV rays from reaching it and breaking it down.

They found that early morning before sunrise was the best time to spray. The dew on curled leaves helps the fungicide slide further down the plant.

Last year, Georgia farmers averaged 3,400 pounds of peanuts per acre. In research plots, switching to nighttime spraying typically improved yields by 200 pounds to 800 pounds per acre. In plots where white mold was a severe problem, nighttime spraying increased yields by 1,800 pounds per acre. In research plots where white mold was not a problem, switching spray times made little improvement.

“It was fascinating to me to see the level of improved control without there being any additional cost. That’s unusual,” said Brenneman, a plant pathologist for 25 years.

Most tractors have lights for night work. Satellites can now guide many tractors. Spraying at night, he said, wouldn’t cost farmers more money. The same product would be sprayed at the same rate, just at night. The only cost might be an occasional shift in sleeping habits.

All farmers shouldn’t rush to set the alarm earlier or pull an all-nighter to spray, he said. But the information will be useful for some.

A farmer who has had trouble controlling soil-borne diseases with fungicides or is looking to reduce costs by using less-expensive chemicals this year would see benefit, he said.

Georgia farmers will soon finish planting what is expected to be 500,000 acres of peanuts this year.

By Brad Haire
University of Georgia

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SBA Disaster Loans Available Following Secretary of Agriculture Disaster Declaration in Georgia

(BUSINESS WIRE)--The U.S. Small Business Administration announces today that federal economic injury disaster loans are available to small businesses, small agricultural cooperatives and most private, non-profit organizations of all sizes located in the State of Georgia as a result of drought conditions beginning on January 1, 2008 and continuing.

These loans are available in all counties in the State of Georgia except McIntosh County.

“When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, the Small Business Administration issues a declaration to assist small businesses and most private, non-profit organizations affected by the same disaster,” said Frank Skaggs, Director of SBA’s Field Operations Center East.

Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to farm-related and non-farm-related small business concerns and small agricultural cooperatives that suffered economic injury as a direct result of this disaster. Farmers and ranchers are not eligible to apply to SBA, but nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.

Eligible small businesses and non-profit organizations may qualify for loans up to $2 million. These loans are available at a 4 percent interest rate with loan terms up to 30 years. The SBA determines eligibility based on the size of the applicant, type of activity and its financial resources. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. Under this disaster declaration, the SBA cannot provide loans to agricultural producers.

To obtain a loan application or program information, call the SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the hearing-impaired) Monday through Friday from 8 a.m. until 9 p.m., and Saturday from 9 a.m. until 9 p.m. EST or by emailing the Customer Service Center at disastercustomerservice@sba.gov. The Customer Service Center will be closed from December 25 – 28, 2008 for the holidays. Business loan applications can also be downloaded from the SBA website at www.sba.gov/services/disasterassistance. Completed applications should be returned to the Centers or mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX. 76155.

Victims may visit SBA’s secure website at https://disasterloan.sba.gov/ela/ to apply for disaster loans.

Completed loan applications must be returned to SBA no later than August 12, 2009.

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Cost to Grow Georgia Crops Most in History

Row-crop harvest is winding down in Georgia. Farmers don’t know yet exactly how much corn, cotton, peanuts and soybean they’ve grown. But one thing is almost certain: This year’s row crops were the most expensive in history to produce.

“Georgia farmers, like many, have enjoyed good yields and prices for a few years now. But they’ve had to deal with rising costs, too,” said Don Shurley, an economist with University of Georgia Cooperative Extension. “The bigger problem is (crop) prices are falling now.”

Last year, Georgia farmers spent $478, on average, to grow an acre of cotton on irrigated land, Shurley said. This year, they spent an estimated $573 per acre, the most ever, according to UGA College of Agricultural and Environmental Sciences data.

The per-acre figure includes a farmer’s variable costs, which are things like fuel, seed, fertilizers, chemicals, labor, monitoring, harvesting and utilities. It doesn’t include what are called fixed costs, or things like equipment depreciation and payments, insurance or land rent that can also be associated with growing crops. It doesn’t include the salary the farmer pays himself, either.

In 2007, Georgia cotton farmers picked an average of 801 pounds of cotton per acre. After subtracting the variable costs, they made $63 per acre. In 2008, they averaged 843 pounds per acre. After subtracting their variable costs this year, they made only $19 per acre.

“These are all average numbers. Some farmers did better. Some did worse,” Shurley said. “But this just goes to show that even with good yields it hasn’t been enough to keep up with cost.”

The situation is the same for corn, peanuts and soybean, said Nathan Smith, a UGA Extension economist.

An acre of irrigated peanuts cost a farmer $529 in 2007. It cost $685 this year, a 30 percent increase. An acre of irrigated soybean cost $225 in 2007. It cost $314 this year, a 40 percent increase. An acre of irrigated corn this year cost $648, almost 50 percent more than last year. All are record-setting numbers, he said.

The rising prices are cutting farmers’ returns on their investments.

The average return on an acre of peanuts last year, after subtracting the variable costs, was $233. It will be $178 this year. The average return on an acre of soybean last year was $105 after variable costs. It will be $24 this year. The average return on an acre of corn last year was $148. It will be $98 this year. Again, these numbers don’t include costs for equipment depreciation or payments, insurance, land rent or the farmer’s salary.

“What these numbers do show is that farming has always been volatile in that the farmer has little control over input prices or the prices he receives,” Smith said. “That volatility is even more so now.”

The prices for fuel and fertilizer have stabilized, or decreased, in recent weeks, Shurley said. “But to me, ‘09 will be tighter than ‘08. Farmers will have some tough decisions to make for next year’s crops.”

By Brad Haire
University of Georgia

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Farmers Forced to Leave Tomatoes in Fields

When it comes to food, perceived danger can be as harmful as a real one, especially to a farmer’s wallet. Georgia tomato growers learned that lesson firsthand when consumers stopped buying fresh tomatoes during this summer’s Salmonella scare linked to fresh tomatoes.

In July, the U.S. Food and Drug Administration issued a nationwide warning regarding a Salmonella risk on varieties of raw red plum, red Roma and round red tomatoes.

“The disease wasn’t found on Georgia tomatoes, but the general public’s perception was that all tomatoes were affected,” said Archie Flanders, an economist with the University of Georgia College of Agricultural and Environmental Sciences.

The scare cost Georgia farmers $13.9 million. Georgia grows about 3,000 acres of tomatoes, worth between $60 million and $80 million annually.

As president of the Georgia Fruit and Vegetable Growers Association, Bill Brim tried to tell consumers through media interviews that Georgia tomatoes were safe. He ate tomatoes straight from his field on television.

“I was interviewed by (all the major Atlanta television media), and I tried my best to persuade people that Georgia tomatoes are safe,” Brim said. “The national news media really put us under by telling people not to eat any tomatoes unless they have the vine attached. What was so sad was that it wasn’t true.”

Georgia growers weren’t the only ones. “Growers in Tennessee, north Florida, Louisiana, North and South Carolina, and of course California, were all hit hard, too,” he said.

Brim grows 80-acres of tomatoes in Tifton, Ga. The summer scare cost him $1.2 million. “This was a very significant loss for small- and large-scale farmers,” he said.

Tomatoes are one of Brim’s most expensive crops to grow. An acre of tomatoes costs him $12,000. Bell pepper costs $8,000 per acre. Squash costs him $2,500 per acre, he said.

Georgia tomato growers lost $1.6 million from harvested tomatoes that were picked but not sold. Much of the state’s tomato crop wasn’t harvested because there wasn’t a market for them, Flanders said.

“When wholesalers aren’t buying produce, growers know the market is lost,” Flanders said.
To determine the total impact of the scare, Flanders led a survey conducted by the UGA Center for Agribusiness and Economic Development.

Most Georgia tomatoes are grown in nine southwestern counties and one county in northeast Georgia. Farmers there were surveyed by UGA Cooperative Extension agents.

The survey revealed that 32 percent of Georgia’s tomato acreage was left in the field due to decrease demand caused by the scare, Flanders said. Another 9 percent was lost to discarded harvested and packed tomatoes due to decreased demand.

Before the scare, Brim’s tomatoes were bringing $19 a box. Three days after the FDA warning, the same tomatoes dropped to $4 a box. A box costs him $8 to grow. That doesn’t include the packing cost.

“All the food chains and grocery chains quit taking them,” he said. “I dumped 30 percent of our crop and left 30 percent in the field. It was heartbreaking. … You do an excellent job growing it, and then you don’t have a market to sell it. You just have to leave it to rot.”

Each year, Georgia has two tomato crops, one harvested in summer and one in fall.

Brim is now harvesting 40 acres. Prices are still.

“I think there are going to be more and more people getting out of the tomato business because the market was just declined,” Brim said. “We just hope the market will turn around and consumers will get the confidence back. I stand behind the fact that Georgia-grown produce is the safest food in the world.”

By Sharon Dowdy
University of Georgia

Sharon Dowdy is a news editor with the University of Georgia College of Agricultural and Environmental Sciences.

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Wal-Mart Commits to America's Farmers as Produce Aisles Go Local

PRNewswire-FirstCall/ -- Wal-Mart today (July 1, 2008) announced its commitment to source more local fruits and vegetables to keep produce prices down and provide affordable selections that are fresh and healthful. The retailer also reported that partnerships with local farmers have grown by 50 percent over the past two years -- one example of the company's efforts to support local economies, cut shipping costs and provide fresh food offerings.

Today, hundreds of growers across the United States provide produce sold in Wal-Mart Supercenters and Neighborhood Markets, making Wal-Mart the nation's largest purchaser of local produce. During summer months, locally sourced fruits and vegetables that are both grown and available for purchase within a state's borders make up a fifth of the produce available in Wal-Mart stores.

"Offering local produce has been a Wal-Mart priority for years, and we're taking it to a new level with a pledge to grow our partnerships with local farmers. We're committed to purchasing locally grown produce whenever possible," said Pam Kohn, Wal-Mart's senior vice president and general merchandise manager for grocery. "Increasing the amount of local produce in our grocery aisles -- and adding clear locally grown signage -- reflects our dedication to offer the freshest products possible at great prices."

Wal-Mart announced its locally grown commitment in a Supercenter in DeKalb County, Ga. today. The event featured an in-store farmers' market with growers on hand to educate customers about produce. Just in time for the Fourth of July, Georgia Wal-Mart Supercenters have many of the ingredients customers need for a locally grown celebration: sweet Georgia-grown Vidalia onions for their Independence Day burgers, Georgia cantaloupes and watermelons for a fabulous fruit salad, and Georgia peaches for cobbler. A complete list of locally grown produce available by state is at http://www.livebetterindex.com/.

"Georgia is proud of its family farmers who lead the production of many important fruits and vegetables like our famous Georgia peaches and watermelons," said Donnie Smith, Governor Sonny Perdue's Agriculture Liaison. "Thanks to Georgia producers and companies like Wal-Mart, Georgia will continue to be recognized as a trusted provider of high quality fruits, vegetables and other agricultural products to feed America's families."

Georgia onion farmer Delbert Bland is one of the growers who participated in the Decatur event. His family farm has been in operation in Glennville, Ga. since the 1940s, and he is featured on in-store signage in the Atlanta area.

"We are proud to see our onions sold in Wal-Mart stores across Georgia and knowing that we are helping to reduce greenhouse gas emissions is an added value," said Bland. "Our business would not be where it is today without the support of Wal-Mart."

Economic Impact

Wal-Mart estimates that it purchases more than 70 percent of its produce from U.S.-based suppliers, making the company the biggest customer of American agriculture. This year, Wal-Mart expects to source about $400 million in locally grown produce from farmers across the United States.

Wal-Mart's relationships with U.S. suppliers also extend beyond its support of local agriculture. Beyond produce, Wal-Mart partnered with 61,000 U.S. suppliers in 2007 and supported millions of supplier jobs nationally.

Shortening the Distance from Farm to Fork

Beyond the benefits to consumers and economic opportunities for farmers, Wal-Mart's commitment to locally grown produce is helping to reduce "food miles" -- the distance food travels from farm to fork. It is estimated that in the United States, produce travels an average of 1,500 miles from farms to the homes of consumers. Through better logistics planning, better packing of trucks and local sourcing, Wal-Mart expects to save millions of food miles each year.

In addition, Wal-Mart is working with state departments of agriculture and local farmers to develop or revitalize growing areas for products like corn in Mississippi and cilantro in Southern Florida which had not grown there before or which were once native crops.

New In-Store Presence

Wal-Mart now highlights locally grown produce in its stores across the country. Customers will find it easy to recognize locally grown fruits and vegetables with signs that include official state-grown marks, indicating approval by their state's agriculture department.

Chambliss Applauds Decision to Postpone Changes to Peanut Loans

U.S. Senator Saxby Chambliss (R-Ga.), Ranking Republican Member of the Senate Agriculture Committee, today applauded the decision made by the U.S. Department of Agriculture (USDA) to not make any changes to the manner in which they establish marketing loan differentials for peanuts for the 2008 crop year. Maintaining the current practice for determining differentials for 2008 benefits Georgia peanut producers as the recent USDA proposal would have resulted in a significantly lower marketing loan rate for the Runner variety, which makes up almost 100 percent of Georgia production. Georgia produces nearly 45 percent of all the peanuts produced in the United States, making it the number one peanut producing state.

“This is good news for peanut producers in Georgia,” said Sen. Chambliss. “This year’s crop of peanuts has been in the ground for weeks and 2008 production contracts were signed months ago. Changing the loan differential formula after the peanut crop has been planted would have been detrimental for our growers. Domestic demand for peanuts and peanut products has increased and the federal government should allow growers to respond to this demand without interrupting current systems in place. I applaud USDA for recognizing the importance of maintaining the historically recognized practice of establishing loan differentials for the 2008 crop year.”

The farm bill recently approved by Congress contains several provisions that benefit peanut producers such as: maintaining a separate subtitle for peanuts; preserving the target price, direct payment rate and marketing loan rate established in the 2002 farm bill; providing for a mechanism to ensure handling and associated costs are not deducted from a producer’s loan rate; maintaining separate payment limits for peanuts; and including Conservation Security Program incentives for producers moving towards an optimal crop rotation.