Associated Press writers Lisa Rathke and Patrick Whittle reported earlier this month that, “Eric Pray is used to shipping seafood all over the country. But since the coronavirus took hold, he has shifted his focus closer to home — selling lobsters from a homemade tank in his garage.

“Pray, of Portland, Maine, is one of hundreds of fishermen, farmers and food producers who have shifted to a direct-to-consumer model amid the virus outbreak. The pandemic has stressed and sometimes disrupted supply chains, shuttered restaurants and changed the way consumers buy food, leaving some producers scrambling for a new way to reach their customers.

“The farm-to-table movement in the United States has grown in recent years, as consumers have increasingly demanded locally sourced food. But in the past several weeks, the movement has grown out of necessity because some producers can’t rely on the complex web of processors, distributors and middlemen to get food to customers.”

The AP article noted that, “For some, the challenges have turned into opportunities — and new customers.

“‘When restaurants reopen, we’ll probably keep doing home delivery, because we’ve got a good base of customers,’ Pray said.

“But it’s not good news for many of America’s food producers. In late April and early May, U.S. beef and pork processing capacity was down 40% from last year, according to Jayson Lusk, head of the department of agricultural economics at Purdue University. Plants are now mainly back online but at reduced capacity with beef and pork plants running about 10% to 15% below last year, he said.”

A news release yesterday from USDA’s Farm Service Agency (FSA) stated that, “Agricultural producers who have not yet enrolled in the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs for 2020 must do so by June 30. Although program elections for the 2020 crop year remain the same as elections made for 2019, all producers need to contact their local USDA Farm Service Agency (FSA) office to sign a 2020 enrollment contract.

“‘The Agriculture Risk Coverage and Price Loss Coverage programs are critical safety-net programs for farmers, helping producers weather market distortions resulting from natural disasters, trade disruptions and, this year, a pandemic,’ said FSA Administrator Richard Fordyce. ‘Contact your FSA county office today to complete enrollment before June 30. This can be done in concert with filing your acreage report and applying for other FSA programs.’

“To date, more than 1.4 million ARC and PLC contracts have been signed for the 2020 crop year. This represents 89 percent of expected enrollment. FSA will send reminder postcards to producers who, according to agency records, have not yet submitted signed contracts for ARC or PLC for the 2020 crop year.”

The FSA update added that, “Producers who do not complete enrollment by close of business local time on Tuesday, June 30 will not be enrolled in ARC or PLC for the 2020 crop year and will be ineligible to receive a payment should one trigger for an eligible crop.”

A news release earlier this week from the USDA’s Risk Management Agency (RMA) stated that, “[RMA] today announced changes to the Livestock Risk Protection (LRP) insurance program for feeder cattle, fed cattle and swine starting this summer with the 2021 crop year. Changes include moving premium due dates to the end of the endorsement period and increasing premium subsidies to assist producers.

“‘These changes will make these policies more usable and affordable for livestock producers,’ RMA Administrator Martin Barbre said. ‘We are working to ensure these improvements can be implemented by July 1 so producers can take advantage of these changes.'”

The RMA update noted that, “Specifically, the changes:

• Allow premiums to be paid at the end of the endorsement period, putting it in line with other policies.
• Increase the premium subsidy for coverage levels above 80 percent. Those with an 80 percent or higher coverage level will get a 5-percentage point subsidy increase.

“Producers may buy LRP insurance throughout the year from Approved Insurance Providers (AIPs), with coverage prices ranging from 70 to 100 percent of the expected ending value of their animals. At the end of the insurance period, if the actual ending value is below the coverage price, producers will be paid an indemnity for the difference. Premium rates, coverage prices and actual ending values are posted online daily.

“RMA is authorizing additional flexibilities due to coronavirus while continuing to support producers, working through AIPs to deliver services, including processing policies, claims and agreements.”

Reuters writer Tom Polansek reported this week that, “The U.S. Environmental Protection Agency said on Monday that farmers can use existing supplies of an agricultural weed killer linked to crop damage, after a federal court blocked sales and use of the product last week.

“The EPA said farmers have until July 31 to use supplies of dicamba-based herbicides that they had on hand as of June 3. The products, sold by Bayer AG and rivals, are known to drift away and damage crops that are not resistant to the chemical.

“A three-judge panel of the 9th U.S. Circuit Court of Appeals ruled on June 3 that the EPA had substantially understated the risks related to the use of the herbicides, which are sprayed on genetically engineered soybeans and cotton.”

The Reuters article noted that, “The decision confused farmers who bought herbicides months ago as they wrap up planting in the U.S., the world’s No. 2 soybean exporter. Different responses to the decision from states subsequently created an uneven playing field for growers.

“‘EPA’s order will mitigate some of the devastating economic consequences of the court’s decision for growers,’ the EPA said in a statement.

“About 60% of the U.S. soybean crop this year is expected to be seeded with Bayer’s dicamba-resistant Xtend soybeans, according to Bayer. They need to be sprayed with the herbicide to ward off weeds that have developed a tolerance for another chemical, glyphosate.”

Financial Times writer Gregory Meyer reported last week that, “Four US poultry executives have been indicted in the first criminal case to emerge from a years-long investigation into whether meat companies rigged the price of chicken sold to restaurants and grocers.

“One of the defendants is the chief executive of Pilgrim’s Pride, a New York-listed poultry company controlled by JBS of Brazil, the world’s largest meat producer. Another is president of Georgia-based Claxton Poultry.

“Each of the four executives was accused of conspiring to fix prices and rig bids for broiler chickens, the type of bird raised for meat.”

The FT article stated that, “The US Department of Justice antitrust division probe followed civil lawsuits from food distributors, supermarket chains and farmers alleging that US chicken companies had colluded in reducing production and driving up wholesale prices. Colorado-based Pilgrim’s Pride previously disclosed receiving a justice department subpoena last July.

“Other US poultry companies have also disclosed federal subpoenas related to the chicken investigation, including Tyson Foods — the largest US meat company — and Sanderson Farms. None of the companies has been charged.”

DTN writer Victoria Myers reported recently that, “As many land auctions have moved online over concerns of the spread of COVID-19, prices for quality farmland have appeared to remain strong.

“Last week [May 4th], R.D. Schrader, president of Schrader Real Estate and Auction Company based in Indiana, shared real-time sales results, to help indicate how the pandemic is affecting farmland prices.

“Licensed in 29 states, Schrader conducted the first online, multi-tract auction on the internet simultaneously with a live auction back in March 2000. Today, due to COVID-19, more sellers have been taking advantage of Schrader’s ability to provide simulcast bidding as well as timed online sales.”

The DTN article explained that, “Schrader said there are several factors contributing to recent land prices like tight supplies, favorable interest rates and 1031 exchange money. Also known as like-kind exchanges, the 1031 exchange money has been playing an especially important role in motivating buyers as there is a financial impetus (avoiding a premium on capital gains for those funds) to reinvest within the limited timeframe (180 days to close).

“Farmland prices continue to be location dependent and are tied to better quality land, Schrader said. Over the past decade, a shift in who is buying farmland has also helped support the market.

“‘From 2004 to 2005, about 40% of buyers were investors and 55% were operators,’ said Schrader, referring to a data-set showing buyers of Iowa farmland. Beginning around 2010, those statistics show existing farmers becoming the dominant buyers, at 70% to 80%.”

The DTN article added that, “Schrader shared recent large-acreage sales by his company, which showed strong prices for row crop farms from the last quarter of 2019 and into the first quarter of 2020.”

DTN writer Emily Unglesbee reported yesterday that, “The U.S. Court of Appeals for the Ninth Circuit issued a decision Wednesday vacating the registrations of three dicamba herbicides, XtendiMax (Bayer), Engenia (BASF) and FeXapan (Corteva). The ruling does not appear to include Syngenta’s Tavium dicamba herbicide.

“The ruling has enormous implications for farmers this summer, given that roughly 60 million acres of dicamba-tolerant cotton and soybeans were slated for 2020 planting, with the expectation that farmers could use dicamba over the top for weed control.

“Much legal wrangling likely remains ahead, but the consequences for weed control this summer could be serious if the ruling stands, said University of Illinois weed scientist Aaron Hager.”

The DTN article stated that, “‘Given that there are many thousands, if not millions, of Xtend acres that have not been treated yet, if this label is fully vacated right now and there is no appeal and stay from the courts, farmers will have to scramble to come up with alternative solutions,’ he said.

“When asked what this ruling means for legal use of dicamba in 2020, an EPA spokesperson could only tell DTN by email that ‘EPA is currently reviewing the court decision and will move promptly to address the Court’s directive.’

“At least one dicamba registrant, Bayer, has vowed to fight the ruling and try to mute its effect on farmers this growing season.”

Ms. Unglesbee indicated that, “The Ninth Circuit’s ruling came from a lawsuit brought against EPA and Monsanto (now Bayer) in 2017 by a coalition of farming and environmental groups, namely, the National Family Farm Coalition, the Center for Food Safety, the Center for Biological Diversity and the Pesticide Action Network. The lawsuit alleged that EPA violated both the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), as well as the Endangered Species Act (ESA) when it first registered dicamba for use on dicamba-tolerant crops in 2017.”