by Dr. Tony Forshey, State Veterinarian, Ohio Dept. of Agriculture

Summer marks the beginning of fair season – a time when thousands of 4-H youth all across the state showcase the animal projects they have spent so much time perfecting.

 As these hard working kids gear up to show their animals, I  want to encourage all exhibitors to be aware of livestock tampering rules so they do not accidentally disqualify their market animal projects.

Some key things to keep in mind as you prepare your animal for the show ring:

• If an animal is sick, the exhibitor should contact the veterinarian.
• Prescription medications must be prescribed by a veterinarian for a valid medical purpose.
• Extra-label use of any medication must be prescribed by a veterinarian and have an extended withdrawal time.
• Over-the-counter drugs must be used according to label directions for a valid medical purpose.
• Showing any livestock which has been administered a drug that exceeds the tolerance level, or a drug for which the withdrawal period has not elapsed, is prohibited.

Other prohibited practices include: exhibiting an animal which has been tranquilized, making a false statement on a drug use notification form, failing to file or update a drug use notification form, negligently causing an unlawful substance to be present in an animal, or failing to sign a chain of custody form.

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The National Farmers Union is developing a series of videos to promote safety on the farm. Think about it: You have kids, grandkids or just seasonal help that will be working 0n your farm in the near future. Why not expose them to some professionally-made teaching materials that help you keep everyone safe on the farm? All you need is a computer, an internet connection and five minutes or less per video.

Here they are:

Ohio Farmers Union President Joe Logan said today that “enough is enough” with further consolidation in agricultural industries and related big business that controls more and more of the inputs farmers need to feed America and the world.

He refers to a proposed merger of Dow Chemical Co. and DuPont Co.

“Where are the Teddy Roosevelts and the trust busters of today?” Logan asked.

Two previous waves of mergers in the agricultural inputs sector have already created what is known at the Big Six: Monsanto, Syngenta, Bayer, DuPont, Dow and BASF. The current rumored or announced deals—including Dow-DuPont, ChemChina-Syngenta, and Bayer-Monsanto—would be a third wave of consolidation.

“Competition is eroding more and more with each of these mega deals. While financial markets applaud supposed efficiencies of larger businesses, customers – farmers – have fewer choices, less competition and input prices continue to go up,” Logan said.

The National Farmers Union today joined Food and Water Watch and the American Antitrust Institute in a letter to U.S. Department of Justice (DOJ) Antitrust Division urging a challenge to the Dow-DuPont merger.

The letter can be read in its entirety here.

The proposed merger would create a powerful duopoly between Dow-DuPont and Monsanto. Together, the two companies would control 76% of the market for corn and 66% of the market for soybeans, giving them the power to charge farmers higher prices and effectively decide which seeds farmers could plant.

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Johnson Expresses Ongoing Concern in U.S. Senate

The Senate Agriculture Committee yesterday examined the current state of affairs at a hearing about the Farm Credit System (FCS) and the farm sector’s credit outlook.

National Farmers Union President Roger Johnson applauded committee members for making this issue a priority. (Check out our recent post on this issue describing some of the problems.)

“The multi-year trend of low commodity prices coupled with higher input costs is becoming ever more challenging for producers,” he said. “Unfortunately, we are seeing this manifest in weakening credit conditions as it relates to loan repayment rates and lenders restructuring debt to manage credit risk.”

Many producers have already tapped capital from prosperous years and now find themselves with liquidity challenges, he explained. If low commodity prices persist, debt restructuring of operating and equipment costs from short-term to medium and long-term debt may present a real challenge for the farm credit sector.

The hearing featured two panels of witnesses that included the Farm Credit Administration Board, Farm Credit Services of America & Frontier Farm Credit of Omaha, community bankers from Iowa and Kansas, and one producer.

In conjunction with the hearing, NFU joined more than 50 agriculture groups signing a letter in support of FCS and other creditors and the critical role ag lending institutions play in ensuring farmers, ranchers and rural Americans have continued access to competitive credit. NFU independently submitted a statement for the hearing record.

The Federal Reserve Bank of Kansas City said in late April that farm lending is robust and concluded in a report that, “Agricultural credit conditions deteriorated somewhat as repayment rates declined and delinquency rates picked up slightly alongside reduced farm income.”

In short, lower commodity prices, higher input prices and (in Ohio) higher taxes are having effects on farm credit – and therefore farm income.

“Farmers and ranchers are facing serious hardships as they deal with the financial challenges associated with the lean times we are in. The Federal Reserve’s assessment of farm credit conditions, with signs of deterioration and more challenging loan renewals has NFU very concerned about the hard times ahead,” said Roger Johnson, president of NFU.

There are twelve Federal Reserve Banks in the U.S. Each one is responsible for a portion of the country. Ohio’s Federal Reserve Bank is in Cleveland. Along with their regular duties, each of the banks also contributes to the nation’s economic data and research. The Kansas City bank covers regional issues like agricultural economics.

The K.C. Fed said non-real estate loans declined slightly so far in 2016, but the overall loan rate is higher.

“Producers, cash-strapped by persistently high input costs and low commodity prices, may experience trouble accessing credit, negative farm budgets and depressed markets if the trends continue as forecasted by the U.S. Department of Agriculture,” he explained to members of the committee.

Johnson pointed to the Farm Service Agency (FSA) loan portfolio as an indicator to measure the health of the farm sector. FSA loan demand is up 21 percent over the same time last year with $3.4 billion of the $6.47 billion in lending authority for fiscal year 2016 being utilized. The findings of the report expand on the narrative of the multitude of challenges faced by farmers and ranchers.

Large operating loans accounted for a significant share of the total loan volume growth, which could be due to the persistently high input costs and farm expansion, the report says. In addition, loan delinquency rates increased slightly and repayment rates declined; though, rates are still below the 15-year average.

Reduced cash flow and short-term liquidity problems have lenders seeking to restructure existing loans, leading to an increased demand for loan renewals and extensions, the report found. Banks reported slight increases to interest rates for higher-risk borrowers in an attempt to reduce their risk.

“The 1980’s constantly looms over us, and while conditions are different, today we must remain vigilant and provide support as we face a situation that is trending negative,” Johnson concluded.

The Ohio Farmers Union, working through Darke County attorney Ted Finnarn – an OFU member and a member of the Ohio Dept. of Taxation’s CAUV Advisory panel – has been doggedly working for the past three years to get Columbus to fix the problems with Current Agricultural Use Valuations (CAUV).

Part of this effort is a petition drive, spearheaded by Finnarn, and directed at OFU and other farm organizations across the state. Finnarn works for OFU  but also attends meetings of the Ohio Farm Bureau Federation and other groups educating and advocating regarding CAUV reform. He circulates the petition, linked below, across the state.

Here’s what you can do.

Download and print the petition. Sign and it and ask your friends and family in rural Ohio to also sign. Once a page is filled out, please send the page via U.S. mail to Farmers Union, c/o 421 Public Square, Greenville, Ohio 45331.