Rural Lifestyle on Highway 6

Microloans for Agriculture

This week Secretary of Agriculture Tom Vilsack announced a new round of funding for 
USDA "Microloans" for small farmers who may have had issues receiving traditional funding from banks or other USDA loan programs.

The program offers up to $35,000 in initial start-up expenses to farm families, minority growers, and military veterans seeking to start a farm.  Often these farms grow niche or organic crops designated for community supported agriculture programs, farmers markets or local restaurants eager for locally grown products.

This is a good move and welcomed by a host of agriculture related groups.  Dr. Mark Rasmussen of the Leopold Center for Sustainable Agriculture said, "We are supportive of a plan that will offer funding for farmers/growers in niche areas where traditional lenders may lack benchmarks on investment return."  In other words, many traditional banking operations are unfamiliar with speciality crops grown on small farms and the potential for success.

Meanwhile, Sally Worley deputy director and horticulture program coordinator for Practical Farmers of Iowa told us, "The USDA Microloan program increases farmers access to loans. The program's requirements are less stringent than FSA's traditional loan program, which means more people are eligible and paperwork is not as rigorous. Having smaller amounts of money available also has the potential to bolster farm businesses without encouraging large amounts of debt. Practical Farmers' fruit and vegetable farmers as well as beginning farmers have expressed interest in finding loan programs for small capital investments, so it is exciting to see this program rolled out."

Growers who may be impacted by this new program seem to be equally enthusiastic. 
Twyla Hein runs Earth Biscuit Farm, near Tipton, Iowa raises chickens (and selling eggs), berries and produce for a CSA. She says she just visited with the Cedar County FSA this morning about a microloan.  "This will be so helpful for small farmers like myself and I'm looking forward to utilizing it. Like any other program, we need to use it, or we'll lose it. This will enable us to buy some equipment and really jump-start our business."

The funding  the microloan program comes from a "pool of all operating loan programs" approved by congress and administered through the Farm Service Agency.

We believe that building the economics of Rural America has to start with the people who already live there and this is a great step.

If you wish to comment here, feel free or join our advertising agency on our Twitter Stream @InsightADV or our Rural Life Twitter Stream @RuralLifeRadio. Thanks for coming by. - Michael Libbie

Rural America...Does It Matter?

My friend and current U.S. Secretary of Agriculture, Tom Vilsack had some harsh words for those of us working in and with Rural America.  No doubt his frustration is due, in part, because Congress failed to pass a Farm Bill in 2012.

Here, in a nut-shell, is the issue:

While commodity prices are at record highs, while farmland values are at record highs, with all the talk about how precious agriculture is and how important food, fuel and fiber is...Rural America is becoming less relevant and full of poverty and old ideas.

We see it every day.  Rural manufacturing companies can not find skilled workers.  The fabric of rural life, schools, houses of worship, main street are all struggling.  Small towns are becoming places where the poor and the aged hang out. 

Community leaders, government officials and business people seem to be unable to reverse the trends started over two decades ago.  People are abandoning Rural America and coming to the cities.  Secretary Vilsack is right.  We have to re-think ways in which to build a thriving rural culture but doing that is going to cost money.  Some starting points:

• Rural Broadband - We have been on this kick for years and it's something that Urban America just can't seem to understand.  The Internet in many rural areas still is accessed through ancient telephone lines or expensive satellite hookups.  To level education, jobs and creative we need to fix this...now;
• Politics - There is nothing wrong with having an opinion however when that opinion is so negative toward immigration reform we are going nowhere and making enemies of those individuals who want to move to small towns;
• Education - I love it that we have a good public school system and a large number of colleges and universities.  However what we lack is the funding for trade schools where people don't have to "move" to get an education in skilled labor;
• Food - Isn't it odd that in the very areas where the food is grown we find significant hunger issues among the people living here.  I often wonder if the conversation about cutting food stamp programs would be different if the face of the "welfare queen" were the faces of our rural population;
• Traditional vs. Organic - Can we say..."Enough!"  There are people who demand organic food and there are people who say it's silly.  Stop the argument and go create and then sell something. 
  

If you are interested in the article by Christopher Doering carried by the Des Moines Register here is that link.

I don't have all the answers...or even the right answers but congratulations to Secretary Vilsack for speaking up.  If you want to connect, you can do so here or our Twitter Stream is @RuralLifeRadio.

Of Food & Film

Two interesting stories to share with you.  In the first I had a meeting with the chairperson of the Iowa House Agricultural Committee, Annette Sweeney, who I took to task last year over the "Farm FIlming Bill" she authored.  In short it would have made it a felony to get a job at an Iowa Farm and then take secret video of the operation including animal agriculture.  Here is that post.  And, here is the post from  the Insight on Business News Hour.  (Sorry about the tin foil hat....)

My argument, which caused some in the ag community to doubt my judgement, was it was a bad bill that would give folks, who already have an agenda, to point to Iowa Agriculture and say, "See!  We told you they were doing horrible things and now they have put in place a law to cover up their crimes."  (I'm telling you...that would be the rally call.)  My proposal was to change the bill and make it a crime only IF the person filming what he/she considered to be abuse failed to, in a reasonable amount of time, turn the footage or photo over to law enforcement so they could follow up on the complaint.  After all, IF the point of the complaint is the protection and welfare of critters and humans shouldn't it run through the correct channels?

That's exactly what this bill now does.  Congratulations to Representative Sweeney for making those subtle changes.  Next?  (And, it was great catching up with you!)

Sustainable Local/Regional Farm Programs

I like this.  The Environmental Working Group for Agriculture recently posted this piece regarding the 2012 Farm Bill and, what they say, is a way to support small family farming operations that produce local/regional food.  It's worth a read and, judging from the overwhelming support "Buy Fresh/Buy Local" has had on consumers seems like a sound idea.  Your thoughts?

Thanks for coming by!  On Twitter it's @RuralLifeRadio or you can comment here. - Michael Libbie 

Tough Week for Iowa Agriculture

Twice this past week the US Senate took up the ethanol subsidy.  Finally getting a vote to end the program and attempt to save some $2.5 billion.  Not that there is much that will happen but this is the first blow and Rural Iowa will suffer.  Speaking of corn we keep hearing reports that the crop is excellent.  Where?  With the cold wet spring and flooding we might see corn "knee high" by the 4th...but it might be a push.   

Meanwhile, and more pressing, the National Oceanic and Atmospheric Administration (NOAA) released a report saying the "Dead Zone" in the Gulf of Mexico is likely to grow to the size of New Hampshire.  Where are the fingers being pointed?  Farm states like...Iowa.  From the report:

"Hypoxia is caused by excessive nutrient pollution, often from human activities such as agriculture that results in too little oxygen to support most marine life in bottom and near bottom water."

This continues to plague agri-business and is another PR blow to the industry.  In response, Iowa Secretary of Agriculture Bill Northey and Iowa State University, last year, began a program to help producers and consumer mitigate runoff.  How is it going?

We asked Chuck Gipp the Director of the Soil Conservation section of the department and he told us the task-force isn't ready to open their findings for public comment and may not until this fall.  "This has been a major undertaking.  The goal of the task-force is to study the scientific data and come up with a plan that will reduce Hypoxia by reducing run off by 45%.  During this work we're finding all sorts of areas where we can have a major impact." 

Asked if legislation might be a factor Gipp said not at this point.  "Our goal is not to regulate but tofirst learn what the problems are, where they are coming from and deal with them in such a way as we don't cause more problems for producers or for our state."

We'll see...

Meatless Mondays & Silly Ideas

I was driving Tuesday afternoon listening, as I usually do, to what is called "The Big Show".  It's a farm block of news and information coming from 1040-WHO Radio in Des Moines.  The conversation about beef prices was between the host and Kevin Venner who offers commodity comments.

When the subject of "Meatless Monday's" came up Venner poo-pooed it with this comment:  "The people who watch Oprah and those who visit the meat counter at the grocery store are not the same people."

Wrong, Mr. Venner they are, and sticking our collective ag-heads in the sand while the number of vegetarian and/or anti-meat folks continues to increase is dangerous...and silly.  Already we're seeing successful changes to school lunch menus and campaigns to push Meatless Monday's into the private sector.

Rather than say something silly it's better to respond with a powerful message about why meat and meat products are a part of a sensible diet...and offer that rational.  Wishing it will go away...will not make it so.

Thanks for reading...and be careful out there.  

Saving The Barn...

I guess it's silly...trying to save an ancient barn in the middle of property owned by    the West Des Moines High School...But those of us with a passion for rural get it.  What is ironic is this is happening in Iowa... 

As I write this over 1,000 people have joined the Facebook Page, "Save The Maplenol Dairy Barn" and that's just in a couple of days.  Folks from across the urban/rural spectrum see the value in keeping and using something that is part of...Iowa. 

What is it they see?

They see the past as a mirror to the future.  A link to a time when we knew where our food came from.  A time when agriculture wasn't something studied as history or science but lived...daily.  It's a link to the story of life and death; of work and sweat and reaping and sowing.  And...in their hearts they long for a connection.  Even if that connection comes from old brick and mortar and peeling paint.

A barn carries that story from generation to generation.  When everything changes the barn...no matter its shape...stands as a monument to something real and wholesome.

The people who have signed their names...and those of you who haven't yet...understand these things.  For the life of me I can't figure out why others, who are much smarter than me, can't see it.

But then...maybe it's too simple.

Photos - www.lucky-soda.com  

 

 

 

Tis The Season - Christmas Eve 2010

For weeks folks have been making lists, checking them twice...or in my case many more times.  "Hmmm...does she REALLY want that?"  It's a great time of the year and nothing beats the look and the feel of a Rural Christmas...

We got snow overnight here in Central Iowa.  Not a bunch...but enough to hide some of the brown spots that were poking through.  Remember last year?   What a difference.  Last year it started snowing on October 13th and it just stayed around.   FOREVER...

What's in the news?   Here is a sobering thought:  Over the past 40 years we've lost 800,000 farmers/ranchers.  Well, not "lost" exactly...but they're not farming or ranching any longer.  It's a story that points to the problems we'll face in coming years when it comes to agriculture and...policy.   Here is the full story from our friends at Southwest Farm Press. 

In a related story...more and more urban folks are turning to local food production.  Back when 40% of Americans lived on the farm not many people had to think or worry about where there food was coming from.  That's all changed today as more and more city folks are seeking food that comes from local farms.  It's a huge boost for those acreage and small farmers who see the value in sustainable production.  And...the trend is growing.  Here is the full story from our friends at Amber Waves. 

Good news for agricultural equipment manufacturers.  Last week the Association of Equipment Manufacturers released their annual business outlook and projected a 3.7% increase in business for 2011.  That's on top of 2.4% growth this year.  Here's the story from the folks at Industry Week.

Time's up...  Got lists to look at.  And it's Christmas Eve when our thoughts turn to family and friends, logs on the fire and the merriest of seasons.  Stay safe out there and from all of us down Highway 6...Merry Christmas.

 

 

Rural Broadband - More Federal Money

If you follow Highway 6 you know we have, for years, been banging the drum about building the infrastructure to put more of Rural America on Broadband Internet.  Our view is that because Rural America, in many places, lacks connectivity it is at a severe economic disadvantage.

The Obama Administration and Secretary of Agriculture Tom Vilsack agree and so another $363 million is coming from the federal government to level the playing field.

This isn't about playing "Farmville" this is about the economy.  By providing 1.2 million rural households with broadband Secretary Vilsack says they will create 5,000 jobs.  That is not counting the thousands of people already making a rural living by engaging others through the Internet.

Traveling through Iowa on a three day mission of announcing the program former Iowa Governor Vilsack borrowed a line out of our play-book and said, “This is very similar to what happened in the 1930s and ’40s when we brought rural electrification to the countryside.  This is connecting folks to the 21st century."

Hey, as long as it gets done...you can quote us all day long.  On Twitter it's @MichaelLibbie or @RuralLifeRadio

Here is the story from our friends at the Des Moines Register.

 

 

 

The Rural Economy - It's Getting Better

We're based in Iowa and when we get news about the rural economy or "what's going on out there" we pass it along.  I recently attended the Spring Management Clinic for the Farm Equipment Manufacturers Association where we heard from Dr. Barry Flinchbaugh of KU.  Here is part of what he said along with an interview.

As a follow up, in the associations newsletter, The Shortliner we get this information based on work being done at Creighton University of Omaha with comments by Creightons economist, Dr. Ernie Goss.

"For the second time in the past three months, the Creighton University's overall index for the Rural Mainstreet economy declined and remained below growth neutral, according to the April survey of bank CEOs in a 10-state region.

The Rural Mainstreet Index (RMI), which ranges between 0 and 100, sank to 44.2 from 47.4 in March. Despite the pullback, the index is more than double the reading of 21.7 for April 2009. A reading of 50.0 is considered growth neutral.

The farmland-price index moved above growth neutral for a third straight month to 59.5 from 58.2 in March. After beginning a downward slide in spring 2008, farm and ranch land prices have once again begun to grow.

The farm equipment-sales index soared to 57.2 from March's 41.4 and February's 42.4 reading. Prior to February, both farmland price growth and farm equipment sales had been slipping. “We are tracking significant improvements in farm and ranch land prices and farm equipment sales. I expect both of these factors to remain healthy in the months ahead,” said Creighton University economist Ernie Goss.

The Mainstreet Economy: Index Above 50 indicates expansion	Apr-09	Mar-10	Apr-10
Farmland Prices	41.2	58.2	59.5
Farm Equipment Area Sales	29.6	41.4	57.2
Confidence Index	45.6	54.3	60.2
Loan Volume	50.8	55.2	61.1
Rural Hiring	15.8	45.7	46.7
Retail Business	20.5	42.4	43.4

The survey also showed that hiring in rural areas has yet to bounce above growth neutral. However, the new-hiring index moved higher to 46.7 from March's 45.7. This was the 28th consecutive month that the index has been below growth neutral.

Only 10% of the bankers said hiring was up from last month, while 17% of bank CEOs reported that April hiring was down from March. “Despite a weak hiring index, the rate of job losses for Rural Mainstreet is approximately one-fourth of what the region was experiencing just six months ago,” said Goss, the Jack A. MacAllister Chair in Regional Economics at Creighton.

Respondents were also asked the following questions:

How important is the revival of a $1-per-gallon biodiesel tax credit to the economy in your area?

Important Or Very Important: 72%

Neutral Impact: 28%

Negative Impact: 0%

Should the 45-cent-per-gallon blender credit for ethanol production be extended beyond its Dec. 31, 2010 expiration date?

• Yes: 82%
• Not Sure: 10%
• No: 8%

In terms of the policy of too big to fail, in banking what should the federal government do?

• Not intervene; let markets decide: 57%
• Support Only Bigger Banks: 0%
• Support All Banking: 43%

The survey represents an early snapshot of the economy of the rural, agriculturally and energy dependent portions of the nation. For the full survey details go to: creighton.edu/business/economicoutlook/mainstreet.

Thanks again to the Farm Equipment Manufacturers Association for spreading the information.  Follow me on Twitter:  @RuralLifeRadio

Ken Root & AgChat Foundation

Two interesting stories for you.  One revolves around traditional media and my friend and fellow broadcaster, Ken Root the other is a Social Media movement created by farmers to tell their story to the 98.5% of the country that needs to know.  We'll start with traditional media.

 Last week my friend Ken Root landed a new job with WHO-TV 13.  This move signals, I think, a couple of major changes in thinking.  WHO-TV 13 thinks there is a demand for a local agri-business show that highlights a major industry here in Central Iowa.  They are correct.  The consumer is more involved in food choices today than ever before and Ken understands the power of food production on the large and small scale.  Think Community Supported Agriculture.  In addition Ken brings a wealth of knowledge and a strong voice of a person who has actually "been there".  Unable to convince his former bosses at 1040-WHO Radio about this and being the kind of guy who isn't easily corralled he was let go. So you know, the two WHO's are not related.  The radio station is part of the Clear Channel Communications and the television station is owned by Oak Hill Capitol Partners an investment group with offices in California, New York and Connecticut and owns LocalTV LLC.  Way to go Ken and WHO-TV 13 here is link to his broadcasts.

Now on to the world of Social Media and agriculture.  For sometime many of us have been art of #AgChat a monitored conversation held on Twitter started by Michele Payn-Knoper of Cause Matters Corp. who is an advocate for agriculture and telling farmers and producers about why they need to open up and share their stories with the rest of the world.

Many of you know, that from many angles, agriculture is being attacked.  From production methods to processing.  And, there is an agenda.  Now comes the AgChat Foundationa non-profit group dedicated to "empowering a connected community of AgVocates".  And, yes Michele is smack dab in the middle along with our friend Chuck Zimmerman from ZimmComm New Media and AgWired.

The AgChat Foundation, begun by farmers, is another attempt to share the story of agriculture with the 98.5% of the folks who are not connected to production agriculture.  It's also a way to harness social media to communicate with each other. Real farmers using social media?  Yep.  Here is a listing of their Board of Directors.

We think's it's another good step and thought you should know.

Michael P. Libbie - Acreage owner, advertising guy and talk show host.  You can catch, Insight on Business here and I monitor @RuralLifeRadio and @MichaelLibbie on Twitter.