A new report calls for greater accountability in the system that provides funding to farmers in underserved communities. The research takes a dive into the Farm Credit System, examining the risks and suggesting improvements to make the system more fair and sustainable.
Report lead author Dr. Joshua Humphreys is a farmer and president of the Croatan Institute. He asserted that, despite the Farm Credit System making around 45% of all agricultural loans, there is no transparency in how much of the funding goes to small, midsized or socially disadvantaged farmers.
"Minority home buyers were deeply underserved," Humphreys pointed out, "yet no data demographically related to race, ethnicity or gender along the lines of other equal lending opportunity sectors are provided."
According to the report, most Farm Credit System loans go to very large operations, and fewer than 20% to small or beginning farmers. Humphreys said the findings can be an opportunity for the system to address the disparities.
The report also examines the system's lack of climate-related reporting, and suggests ways to make sustainability a bigger priority in lending. For the last several decades, farmers have dealt with increased risks -- from rising temperatures and more frequent severe storms to wildfires.
Report contributor David Beck, director of policy at Self-Help Credit Union, said as agriculture's Government-Sponsored Enterprise, more can be done to help farmers to transition to more eco-friendly practices.
"For instance, helping small farmers or even larger farmers switch to more regenerative ag practices that can require a lot of upfront cost," Beck explained. "So, maybe helping subsidize that switch to more sustainable ag systems."
The research touches on governance issues as well, such as board members serving expired terms. Humphreys added these challenges must be addressed, as taxpayers ultimately would bail the system out in the event of a crisis.
"Agriculture is not immune from a wide array of environmental, social and governance risks and opportunities," he insisted. "I think that's the key takeaway, is that we really want to encourage the Farm Credit System to end its laggard position among Government-Sponsored Enterprises."
The report recommends conducting more climate research, implementing Green and Impact Bonds, and establishing a grant set-aside program through a congressional mandate.
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Some West Virginia lawmakers want to remove consumer sales taxes on the processing of beef, pork and lamb at slaughterhouses.
House Bill 2146 would reduce the cost for individuals who want to have their livestock processed by a professional slaughterhouse.
Dwayne O'Dell, director of government affairs for the West Virginia Farm Bureau, said the change could save Mountain State farmers thousands of dollars a year.
"Annually about 20,000 head of livestock grown in West Virginia are harvested at these facilities," O'Dell pointed out. "Typically, the tax on that is dependent upon what the animal weighs, $30 to $60 per head."
Processing meat locally remains a challenge for many farmers. According to the nonprofit group FoodPrint, many small farmers say they have trouble finding a local processor or have to travel long distances.
Since the pandemic, farm income has dropped and producers have been further squeezed by fertilizer costs. O'Dell added potential tariffs under the new administration could also affect farmers, noting somewhere between 15% and 25% of meat and poultry is exported.
"Cost of production has been high, labor costs are high," O'Dell observed. "This would be an effort to try to offset some of that and allow some extra money to be kept at the farm level."
A tax exemption could also give up-and-coming farmers a helping hand, he noted.
"We also anticipate it would be beneficial to young farmers who are trying to get started," O'Dell explained. "To be able to supplement them somewhat and give them some additional income."
Commercial red meat production in West Virginia last year totaled more than 1 million pounds, according to the U.S. Department of Agriculture. The processing of livestock, including cattle, sheep and pigs, is regulated by the government under the Federal Meat Inspection Act. Currently, more than two dozen states also have their own meat inspection programs.
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A Utah legislator has introduced a bill to increase transparency for consumers in the Beehive State when purchasing cultivated meat products.
Cultivated meats are genuine animal meat, but are produced by cultivating animal cells in a controlled environment.
But since the beginning of the year, two U.S. states have proposed cultivated meat bans as policymakers have expressed concerns about the impacts cultivated meat could have on livestock producers.
For state Representative Neil Walter - R-St. George - HB 138 is all about ensuring Utahns are aware and have a choice.
His bill would enact a state provision that requires cultivated meat products to be labeled as such.
"This bill, by requiring meat to be labeled if it is cultivated, plant-, or insect-based meat substitutes, just makes sure consumers have a choice," said Walter. "It doesn't restrict manufacturers and it doesn't restrict the market."
Walter said the potential state provision would be complementary to regulations imposed by the United States Department of Agriculture.
In 2019 the department created a formal agreement to help ensure foods containing cultured animal cells entering the market were both safe and properly labeled.
The agency has remained open to labeling considerations. HB 138 is heading to the state Senate with bipartisan support from the House.
Walter called his bill straightforward. He added that within a consumer protection and disclosure context, one of the legal definitions that needed to be updated in the state was surrounding cultivated meat.
"We needed to be specific about what that was, and so this bill allowed for that definition," said Walter. "This isn't a complicated bill - it is pretty straightforward. It defines meat substitutes and it just says if you're selling a meat substitute, you can't tell the public it is something different than what it is."
And while some meat producers are concerned about the impact cultured meats could have on conventional meat and seafood industries, moving forward alternative forms of proteins could help mitigate things like deforestation, habitat loss, antibiotic resistance, as well as zoonotic diseases.
Walter said the bill would make sure the state is ready for developments down the line.
"This isn't anything new. It's something that in a lot of contexts we've been doing for a long time. We just have some alternatives that are different than maybe the alternatives we've had in the past. "
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School districts across Arkansas have until February 28 to apply to participate in the Farm to School Institute.
The yearlong program, through the department of agriculture, helps schools launch or expand their Farm to School programs.
Jessica Chapman, program coordinator with the state Department of Agriculture Farm to School Institute, said selected schools will bring a team to a summer retreat to devise a one-of-a-kind plan for their campus.
"Even if they already have something going, this is a great way to build their Farm-to-School program in all different aspects," said Chapman. "So, we focus on classroom, we focus on getting Farm-to-School in the cafeteria and in the community."
Each team will be paired with a coach and receive $1,000 to implement its plan. The application is available at ARfarmtoschool.org.
Nearly 85% of schools in Arkansas are participating in at least one Farm to School activity. All schools can apply to be part of the institute.
Chapman said each campus is different, and they look for programs with a strong community base and an engaged administration.
"You've got some elementary schools that's got an outdoor classroom," said Chapman. "You've got some that are at middle schools, and they've got maybe a hydroponic system, or maybe at the high school it has like a really strong FFA program. We help you evaluate where your school's at."
Arkansas is one of only 16 states nationwide to offer the institute. Fifteen teams will be selected to participate.
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