October 2006

2006 Average Farm Operator Household Income Forecast to be Down 5.1 Percent From 2005 (Economic Research Service Online) “In 2006, average farm operator household income . . . is projected to be $75,848, down 5.1 percent from 2005 but 5.4 percent above the 5-year average of 2001-05. The projected 0.6-percent increase in off-farm income is more than offset by a 30.9-percent decrease in farm income. Operator households are expected to realize 86.7 percent of their income from off-farm sources. However, family farms are diverse, and the outlook for farm households varies. Reporting farm household income by the farm typology, farm specialization, and geographic location helps demonstrate this diversity.” This article is featured at http://www.ers.usda.gov/Features/farmincome/2006/August/.

This issue affects every farm that has manure (Farmshine, Oct. 20, ’06). “The National Cattlemen’s Beef Association (NCBA) and other organizations are actively urging members of Congress to take up and pass legislation confirming that they never intended for America’s farmers to be attacked via provisions of the 1980s Superfund laws. . . . Commercial fertilizer is exempted, but manure is not specifically mentioned as an exemption. Proposed legislation seeks to clarify the manure exemption in order to close this gaping loophole for lawsuits. . . . Without such clarification, every livestock operation, agricultural field or organic farming operation on which manure or manure compost is spread for fertilizer in this country could be subject to comprehensive and highly regulated cleanup under Superfund law.” More information is available at http://capwiz.com/beefusa/issues/.

Farm Income Drop Predicted (Country Focus, PA Farm Bureau, Oct. ’06). “The U.S. Agriculture Department is predicting net farm income will decrease 26 percent this year as fuel and fertilizer costs rise, drought reduces production and government payments fall.” More information is available at http://www.ers.usda.gov/Features/farmincome/2006/August/

Group to Study Big Farm Impact (Country Focus, PA Farm Bureau, Oct. ’06). “Former U.S. government officials, environmentalists and industry leaders have launched a two-year study into health and environmental impacts of large-scale animal farms. . . . Some industry representatives . . . have expressed concern that the study panel might lean toward vilifying large animal farmers. The study is being funded by the Pew Charitable Trusts.” Read more at the DesMoines Register website: http://desmoinesregister.com/apps/pbcs.dll/article?AID=/20060625/NEWS03/606250344/1001/NEWS

Coping with Family-Business Ills (BusinessWeek Online, Oct. 24, ’06). “(N)ot all problems encountered in a family business will require outside professional help. A well-prepared family business should be able to cope independently with most of the common issues. . . . If you want to increase your in-house ability to deal with challenges like these, the best thing any family business leader can do is to install an experienced board of directors. The next best thing is to embark on a lifelong personal effort to learn all aspects of managing a family business. . . . If you take the time to educate yourself about family business problems now, you'll not only learn to solve many of your organization's problems without outside help, you'll learn to distinguish between troubles that really do require expert assistance, and those you can handle on your own.” Read more of author James Olan Hutcheson’s suggestions at Coping with Family-Business Ills.

Avoid the alternate-generation phenomena (Dairy Herd Management, Oct. ’06). Author Darrell Dunteman has noticed that, “The first generation takes some risk, is innovative, and builds a successful business capable of supporting family members who want to return to the farm. The second generation maintains what dad and mom built, but the business stagnates. If the business survives to allow the third generation to return, they revitalize and push the business forward. This phenomenon occurs because the first generation often fails to delegate responsibility and train the second generation. The second generation either muddles along or fails. But, if they succeed, they remember their crude training process and vow to do a better job of training the next generation. . . . What about your operation?” Dunteman suggests “that you make a commitment to properly train the next generation of managers for your business. It’s one of the best ways to ensure future success.” Read the complete article at http://dairyherd.com/directories.asp?pgID=726&ed_id=5840 (free registration required).

Farm Respiratory Protection (Lancaster Farming, Oct. 14, ’06). “There are several respiratory hazards associated with farming. Dusty fields, pesticide vapors, hydrogen sulfide accumulations in manure pits, and nitrogen dioxide in silos just to name few. Dust from moldy hay and grain can cause allergic reactions such as Organic Dust Toxicity Syndrome (ODTS) and Farmer’s Lung. In many cases long-term lung damage caused by dusts, mists, gases and vapors can be prevented with an inexpensive respirator. Before choosing a respirator determine the type of respiratory hazard from three basic categories. . . . particulate contaminants. . . . gases and vapors . . . . oxygen-deficient atmosphere.” This article is based on a fact sheet by Penn State’s Dr. Dennis Murphy et al. Read the fact sheet at http://www.cdc.gov/NASD/docs/d001001-d001100/d001011/d001011.html.

Pa.’s Animal Health Database System Offered Nationally (Lancaster Farming, Oct. 28, ’06). “Pennsylvania’s animal health database system has become a national model for use by other states, according to Pennsylvania Department of Agriculture officials. Launched last week at the U.S. Animal Health Emergency Response and Diagnostic System (USAHERDS) is the national version of PAHERDS, Pennsylvania’s innovative program to protect millions of livestock and poultry flocks from the outbreak of disease. . . . ‘Once again, Pennsylvania’s cutting-edge technology is helping the nation,’ Agriculture Secretary Dennis Wolff said. ‘Through USAHERDS, other states can monitor and contain animal diseases quickly and effectively, protecting our food supply and local economies across the nation.’” Read the complete article at http://www.govtech.net/magazine/story.php?id=101825.

USFA Bumps 2007 all-milk price forecast to $13.40 range, up from about $12.75 this year, reports the “Washington Dairygrams” feature in Hoard’s Dairyman (Oct. 10,’06). “Expects further declines in cow numbers. Class III futures averaged $12.61 for last quarter of 2006; $12.41 for first quarter 2007.”

Ten Questions to Ask Your Business Attorney (AllBusiness.com). “Once you decide to hire a business attorney, you have to find one who has the right experience for your business needs.” This article provides “a list of questions to ask, the answers to which will help you determine whether you have found the right business attorney.” Questions include: “How long have you been practicing law? What is your area of specialty? Have you represented companies like mine? Who are the attorneys and paralegals at your firm that would work on my matters and what experience do they have? How do you charge legal fees and for what expenses will I be charged (e.g., faxing, word processing, copying, postage)?” Read the complete article at http://www.allbusiness.com/legal/law-firms-attorneys/526-1.html

Should we consider a living trust? (Hoard’s Dairyman, Oct. 10, ’06). Attorney Phillip R. Maples, writes, “It is the hope of estate planners using living trusts that the probate process can be avoided . . Assuming it is wise to avoid probate, a living trust is not the only way to go.” There are “tools at a good estate planner’s disposal from which he or she will pick and choose to custom tailor . . . the right estate plan for the client. . . . There is nothing unique to the living trust that saves taxes.” Also, “many clients are under the mistaken belief that their living trust will somehow protect them from losing their funds if one of them should have to go into a nursing home. This is simply not the case. Other planning must be undertaken to address that issue.” Maples identifies benefits of living trusts, including: confidentiality for families who “don’t wish to have their assets know publicly, nor do they wish to disclose who received their assets;” owning of multi-state properties that would require probate in multiple states; or, an estate plan where complex tax-based trusts are created within a living trust.”

The Case for 20-70-10 is the “Ideas” feature by Jack and Suzy Welch in Business Week (Oct. 2, ’06). “Done right, differentiation is not, for instance, ‘rank and yank,’ . . . differentiation is based on the principle that the team with the best players wins.” The Welches define this as “rewarding stars in an outsized way that is both soul-satisfying and financially satisfying; by developing ‘the middle 70’ with training and coaching; and by moving out bottom-tier performers so better talent can be brought in. . . . Because of differentiation’s performance appraisals, people know where they stand. Maybe the news is not always good, but it does allow them to control their own destinies.” Read a similar article by Jack Welch at http://www.usatoday.com/money/companies/management/2005-04-17-welch-advice_x.htm.

Market Outlook (Dairy Outlook, Oct. ’06). Penn State’s Dr. Ken Bailey writes, “The outlook for 2007 is for a tighter milk supply as cow numbers adjust to economic losses in 2006. The milk supply in 2007 is forecast to grow just 1.4 percent for the year. Thus prices will improve. We are assuming that nonfat dry milk prices will average over $0.90 per pound and that dry whey prices will average $0.31 per pound. Block cheese and butter prices will average $1.35 and $1.31 per pound, respectively. Look for the Class III price to rise from $11.71 per cwt in 2006 to $12.77 per cwt in 2007, an improvement of over a dollar per cwt. But this forecast is conditioned on a re-alignment of supply and demand by early next year.” Read Dr. Bailey’s complete report at http://dairyoutlook.aers.psu.edu/

Pa. Producers Urged to Apply for 2007 Conservation Programs (Lancaster Farming, Oct. 7, ’06). “Pennsylvania farmers and landowners interested in receiving financial assistance through USDA Natural Resources Conservation Service’s (NRCS) conservation programs should apply by Dec. 1, to be considered in initial funding allocations for 2007. . . . NRCS natural resources conservation programs help people reduce soil erosion, enhance water supplies, improve air and water quality, increase wildlife habitat, and restore and enhance wetlands. . . . To learn more about these and other conservation programs, please contact your local USDA-NRCS service center or visit http://www.pa.nrcs.usda.gov.”

Archived News Articles

2007: Current
2006: Jan | Feb | Mar | April | May | June | July | Aug | Sept | Oct | Nov | Dec
2005: Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec
2004: May | Jun | Jul | Aug | Sep | Oct | Nov | Dec