February 2006

Employment Law and You (Greenhouse Product News, Feb. ’06). Authors Robert D. Noonan, Esq. and Emily Noonan write, “With increasing employee lawsuits and workplace regulation . . . , the need for employers to be aware of legal pitfalls in the employment process is greater than ever. . . . Once a business owner becomes an employer, the obligation to comply begins. Both state and federal laws regulate employment—and they may differ. . . . Whether state or federal laws, the compliance obligation will vary with the number of employees. Many of the most important employment laws—those that have produced significant legal action—reach down to the smallest employers. Child labor laws, wage laws, immigration laws, workplace safety laws, workers’ compensation laws all apply to an employer with just one employee.” The authors provide “a step-by-step examination of how the law affects the employment process.” Read the complete article at Employment Law.

Do You Know the Basics of a DOL Inspection? ask an article in Pennsylvania Vegetable Growers News (Feb. ’06). “As an ag/hort employer, you should be aware that the Department of Labor (DOL) is authorized to inspect your operation’s records, and to inspect any facts, conditions or practices necessary to determine whether your operation has violated the Fair Labor Standards Act (FLSA).” Labor law attorney David Steffany “reminds employers that because of a memorandum of understanding between the DOL and Immigration and Customs Enforcement (ICE). The DOL is responsible for inspecting I-9 forms for compliance.” The complete article also appears on the Gempler’s Alert website at http://www.gemplers.com/alert/2005/11/GovernmentInspections_FLSA.asp.

New Mastitis Treatment May Offer Alternative to Antibiotics (Agricultural Research, Feb. ’06). “In trials at ARS’s Bovine Functional Genomics Laboratory, Beltsville, Maryland, scientists Max Paape and Douglas Bannerman showed that injecting the cows’ mammary glands with the sugar Poly-x reduced mastitis infections at about one-twelfth the cost of antibiotics. The sugar, a type known as a ‘polysaccharide,’ occurs naturally in the cell walls of certain yeasts. . . . ARS has applied for patent protection on their yeast-sugar treatment and is seeking a licensing partner to commercially develop and market it to conventional and organic dairy farmers alike.” Read the complete article at http://www.ars.usda.gov/is/AR/archive/feb06/mastitis0206.pdf.

Bring change to employee management is the “People Side” feature in Northeast DairyBusiness (Feb. ’06). One of the key components of effective labor management listed in the article is training. Author Martha Baker says, “Many dairy managers and owners are able to perform almost any task on the dairy and think these tasks just take ‘common sense.’ The result: inadequate training for many employees. One of the most effective tactics I have found is formal training for new employees by a trainer or mentor. Follow that with time for the employees to practice the new skills on their own, and then a testing period during which new employees must ‘teach’ either a supervisor or manager how to do the job. If they can’t successfully do this, they go back through the formal training, practice period and test. If they are unsuccessful more than twice, consider them for a different position or dismiss them.”

PA production keeps climbing (Farmshine, Feb. 24, ’06). “Pennsylvania dairy producers shipped 3.5 more pounds of milk per cow per day this past January than they did in January 2005. Including this with all of 2005’s performance, the past 13 months Pennsylvania has averaged 2.4 more pounds per cow per day. . . . Pennsylvania’s growth of 2.4 lbs. per cow per day . . . is 41% ahead of the U.S. growth level of 1.7 lbs. The statewide emphasis being placed on this important performance area is yielding outstanding results.”

Protecting Employee Information (American Nurseryman, Feb. 15, ’06). Phillip M. Perry writes, “If your business is like most others, computers have made payroll duties fast and efficient. . . . Advances in electronic data processing, though, carry a downside: There’s now more risk than ever that an insider with a flash drive or an outsider with Internet access can steal sensitive employee information. And that kind of theft can pose real problems for your business, from a plunge in workplace morale to a costly lawsuit if employees sue for negligence. . . . A successful program to protect payroll data will combine techniques that address physical documents, computer files and employee practices.”

Outlook for the Farm Economy was presented by USDA chief economist Keith Collins at the recent Ag Outlook Forum in Washington, DC. Collins notes that in 2005 “domestic demand for farm products soared, exports set a record high, U.S. farm income was the second highest ever, and farmland values and farm wealth reached new all-time highs. The reasons for this outcome include strong global demand for food, the flexibility of the agricultural system to rebound from shocks, a substantial increase in government support spending and cyclically tight markets for some commodities, such as meat.” Turning to dairy, Collins comments, “In 2004, production was flat; in 2005, it rose 3.3 percent; and in 2006, it is forecast to be up nearly 3 percent. These increases exceed the trend growth in dairy product demand, consequently, the all-milk price is forecast to average $13.45 per cwt in 2006, down over 10 percent from 2005.” In a final section on farm income, Collins says, “Farm household income is also expected to decline for the first time in 7 years, but at over $83,300, would still be 20 percent higher than in 2003 and well above the average of all U.S. households.” Read Mr. Collins’ complete remarks at Outlook.

Success On The Brink Of The Farm Bill is an opinion piece by Sen. Rick Santorum in Lancaster Farming (Feb. 18, ’06). “Dairy farms are a critical component of Pennsylvania’s agriculture sector. . . . And the dairy industry, especially those operating smaller family owned farms, faces some unique challenges that require specific assistance. For Pennsylvania, that assistance comes in the form of the Milk Income Loss Contract (MILC) program, a program that many in the Senate, especially those from Western states, have been looking to terminate. But it would be irresponsible for Congress to allow the MILC program to expire. That’s because the program provides a valuable price support to our dairy producers though a supplemental payment whenever the minimum market price for milk drops below an established trigger price. . . . Understandably, this is a vital protection for dairy farmers across Pennsylvania—and across the country, as approximately 85 percent of the nation’s dairy farmers are fully eligible for the benefits of MILC.” Read the complete article on Sen. Santorum’s website at Farm Bill.

Dairies profit from greenhouse gas market (Manure Manager, Jan/Feb ’06). “Dairy farmers in two states made history in November when they received their first payment for ‘carbon credits,’ representing greenhouse gas reductions from their farms.” The dairy farmers (from Washington and Minnesota) “were paid for capturing methane. . . using anaerobic digesters. Both farmers worked with Environmental Credit Corp (ECC), a leading supplier of environmental credits to global financial markets, to take advantage of this new income opportunity. . . the two dairy farmers were credited with preventing the release of over 720 tons of methane to the atmosphere—equivalent to more than 13,000 metric tons of carbon dioxide. At current prices, the carbon credits produced by these two projects were worth more than $26,000. . . . ECC, a member of the Chicago Climate Exchange (CCX) . . . is said to be the world’s first (and North America’s only) voluntary, legally binding, rules-based, greenhouse gas emissions allowance trading system.”

More Work Needed on Nutrient Trading Plan says Pennsylvania Farm Bureau in Country Focus (Feb. ’06). “Farm Bureau supports the concept of voluntary nutrient trading but not all of the details of the program as envisioned by DEP. . . . Nutrient trading would allow farmers who earn credits for best management practices to sell the credits to businesses needing to reduce point-source water pollution. . . . Under DEP’s plan, farms no matter what size would have to implement environmental measures such as 100-foot manure application setbacks or 35-foot vegetated buffers, plus prepare nutrient budgets and conservation plans which go beyond what’s required by state and federal regulations. . . .” Among other problems mentioned is that “DEP’s plan also fails to include a process for buyers and sellers to find each other.”

What We Have Here is a Failure to Motivate by Carl and Deb Potter (Business Management, Turf Producers International, Feb/Mar ’06) says, “In spite of the millions of dollars companies spend every year on safety incentive programs, research shows that injuries continue to occur. Additionally, such programs often actually de-motivate employees, at best yielding diminishing returns over time.” The authors describe several examples of safety incentive programs that “can be costly and, in the long run, do not typically result in a reduction of injury rates.” They recommend, “Rather than try to ‘buy’ your employees’ commitment to safety, consider . . . techniques to engage everyone to take personal responsibility for safety.” The complete article, with description of recommended techniques is online at http://www.bytesizenews.com/clients/carlpotter/internal.aspx?ArticleID=8809&&sid=0.

Cow numbers growth could hurt our prices says Peter Vitaliano in the “Milk Check Outlook” column of Hoards’ Dairyman (Feb. 10, ’06). “Forecasters are particularly troubled by the fact that the nation’s dairy cow herd has been growing for more than a year. USDA currently projects that cow numbers will by up by another 65,000 this year. . . . For the past three years, in a temporary reversal of long-term patterns, commercial use of U.S.-produced milk has grown faster than growth in production per cow. This has allowed the national dairy herd size to grow this past year without collapsing milk prices. However, with the current recovery in production per cow, the longer-term ‘maintenance rate’ probably will start to reapply. What’s the outlook then for keeping prices stable while getting cow numbers to head back down again? The key factor will be how strong commercial demand remains, both domestically and internationally. And to keep the balance, CWT exports will need to be very aggressive this year and followed by an expanded herd retirement program.”

Different insurance rules apply for those doing custom work (Hoard’s Dairyman, Feb. 25, ’06). “If you’re doing any amount of farm custom work for pay, revisit your insurance policy. Once you cross a certain line, custom work becomes a separate business and is not covered under a general farm policy. . . . Most insurance companies allow farmers to help each other out or exchange some labor. . . Many insurance companies also allow for a limited amount of for-pay custom work to be covered under a farm policy. . . However, if gross receipts from custom work exceed the insurance company’s threshold . . . , then you must purchase commercial general liability insurance like other small businesses.”

Center for Farm Transition looks to future (Lancaster Farming, Feb. 3, ’06) Pennsylvania Secretary of Agriculture Dennis C. Wolff writes, “With the expectation that greater than 25 percent of the Commonwealth’s farms will change hands in the next 10 years, the need to provide transition assistance is of paramount importance. . . . Launched by Governor Rendell at the 2006 Farm Show, the Center will serve to bring together in one location a collection of existing information and resources that will assist new farmers looking to get started, existing farmers who wish to make changes to their operations, and those transitioning their assets either for retirement or into new careers. . . . For more information on the Center for Farm Transitions . . . visit www.iplantofarm.com or call Rob Davidson at 1-877-475-2686.

Tips for Tough Transitions (Business Week Online, Feb. 16, ’06). “‘It has been widely assumed that the failure of family businesses to survive was due to a lack of planning. In actuality, more recent research reveals three factors that correlate with failed survival,’ says Paul Karofsky, a family-business consultant and principal of Transition Consulting Group. ‘These are failed leadership; the inability to agree on personal, family, or business goals; and unresolved conflict.’  Similarly, there are three factors that are associated with effective continuity, according to Karofsky.  ‘One is family meetings, another is strategic planning, and the third is having a board of advisers and a board of directors.’”  Read the complete article at Tough Transitions.

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