MFBF New Office Headquarters Address

Agriculture Day is an opportunity for you to join all the other agricultural groups in the state in raising the awareness of our senators and representatives in Boston about the agricultural industry in the Bay State. The events that occur on this day include recognition of our most outstanding legislative supporters, networking opportunities with senators and representatives, and meeting with other producers. With the long established tradition of Massachusetts farm hospitality, the day also includes sharing the commodities produced and raised locally with those in attendance.

Today, as producers and farmers in a highly populated state, it is essential for those closest to the land to educate our elected officials about the values associated with locally-grown food and ag products; and how they can support our efforts to continue to do so in this state. It is also a chance for your group to highlight your mission, concerns or latest achievements – or simply share some of the bounty from your harvests. Either way, Massachusetts Agriculture Day follows the time honored agricultural tradition of working together for a common cause, because we value and place importance on our involvement in this industry.

For years, The Mass Promo board has been dependent upon the staff of the Department of Agricultural Resources to carry the load for organizing this event. Times have changed, and there are less available resources.  For this year – 2011- we’re going to need volunteers and organizations. We understand that most of us are multi-tasking on a daily basis in our everyday lives, so we are willing to take whatever you can give us. There are a number of opportunities for you to become involved!

Massachusetts Agriculture Day is one of the most significant days for agricultural interests to make an impact with the legislators. It also represents a significant opportunity for your group to stand with the rest of the agricultural producers in Massachusetts and be counted – counted as a group that understands that to preserve something, we must work together to let our collective voices be heard.

Thursday, April 7, 2011

8:30-11:30       Exhibitor Set-Up in the Great Hall and Nurse’s Hall

9:30                Food Set Up

10:00-11:30     Farmer’s Orientation with Farm Bureau in Nurse’s Hall

11:30-12:00     Speaking Program

12:00               “Taste of Massachusetts” Reception in the Great Hall and Nurse’s Hall

Massachusetts farmers are reminded that the final date to apply for crop insurance on most insurable spring-planted crops for this year is March 15, 2011, according to the Raleigh Regional Office, USDA Risk Management Agency.  Current policyholders also have until March 15 to make any changes to their existing contracts.  Crop insurance provides protection against losses due to natural perils such as drought, hail, wind, and excessive moisture. 

The March 15 sales closing date applies to Corn, Fresh Market Sweet Corn, Potatoes, and Tobacco.  Beginning with the 2011 crop year, the Crop Revenue Coverage (CRC) plan of insurance has been discontinued.  Additionally, Actual Production History (APH) coverage is no longer available for Corn.  Instead, a producer may choose to insure their corn utilizing one of the following three choices: (1) Yield Protection – replaces APH, (2) Revenue Protection – replaces CRC, and (3) Revenue Protection with the Harvest Price Exclusion – new product for Massachusetts. 

Producers are strongly urged to contact a local crop insurance agent as soon as possible for premium quotes and more details.  For a list of crop insurance agents in your area, contact the local USDA Farm Service Agency office or log on to the Risk Management Agency web site at: http://www3.rma.usda.gov/tools/agents/.

It has been only a few months since the Massachusetts Farm Bureau Annual Meeting but the YF&R Committee has been hard at work. Since the day we got home from the Annual Meeting we have been working on collecting contact information for all YF&R members from all counties. The list is growing almost every day and we have high hopes that we will be able to have our own mailing list that can go out every month, concentrating solely on Young Farmers & Ranchers.

Back in early February, I was joined by Terri Lawton and Chris Grant as we had the opportunity to travel to Orlando, Florida for the National Young Farmer & Rancher Leadership Conference. The Conference was held at the Coronado Springs Resort February 5-7th. It was pretty interesting to join YF&R Committee Members from the entire country all of whom have the same drive and passion for Agriculture as we do.

The YF&R Conference kicked off on Saturday and was filled with great speakers, seminars, workshops, and good food! There were some fantastic speakers throughout the Conference which included Bob Stallman (AFBF President), Ken Schmidt (Former Director of Communications for Harley Davidson), Dick Wittman (Wittman Consulting), Andrew McCrea (American Countryside Radio), and Captain Jim Lovell (American Hero & Astronaut from Apollo 13). During lunch and dinner there were spokesmen and women who represented Monsanto, Case IH, and Ram; all who had motivational speeches and videos about American Agriculture.

On Monday we had the opportunity to choose from several different tours and although it was a hard decision we decided to go on Tour 4 which would take us to G&F Farms (strawberry operation and strawberry test trial farm), a Driscoll’s Packing Facility, Noble Worldwide Citrus, and Publix Supermarket Corporate Office for Dairy. When the tours were over we headed to the Florida FFA Leadership Training Center which sat on its own Peninsula right out of the City.

All three of us are extremely happy that we had the opportunity to attend the Leadership Conference as we pulled a lot from the meetings, discussions, events, and tours. Next year, the Conference is scheduled to be in Grand Rapids, Michigan and we have high hopes that Massachusetts can be represented in higher numbers and maybe even have some FFA members participating in the Collegiate Discussion Meet.

Both Drew Lock (YF&R Co-Chair) and I have high hopes of getting Massachusetts’ YF&R Committee active again, there is a lot of opportunity! Whether you are five acres or 500 acres, Organic, IPM or Conventional, produce, livestock or both; we all need to stick together and work together to promote agriculture.

American Agriculture is strong and prevailing. Consumers have a better understanding of where their food comes. Here in Massachusetts, consumers want to know who their farmer is and they appreciate the hard work that goes into the food that sits on their table. As Young Farmers & Ranchers we all need to work together to promote agriculture in a positive way! The future of agriculture is in our hands.

Jamie Cruz
Co-Chair YF&R Committee
jamie@mfbf.net

Massachusetts Farm Bureau Federation was named “Supporting Organization of the Year” by the National Association of Resource Conservation and Development Councils (NARC&DC).  Every year, the NARC&DC recognizes individuals, RC&D Councils, and partners who have done an exemplary job of delivering the RC&D Program to their communities. Massachusetts Farm Bureau Federation (MFBF) received this award for their strong and continuing support for organizing municipal Agricultural Commissions throughout the Commonwealth, and strengthening the voice of agriculture at the local level. MFBF was recognized as the New England RC&D winner after surpassing nominations from the other six states. After receiving the regional award, MFBF was among the seven regional winners that competed for national recognition.

The award was presented to MFBF President, Dr. A. Richard Bonanno at the National Associations’ Leadership Forum in Washington, D.C.  Presenting the award was James Sipperly, President of the NARC&DC.   “The Massachusetts Farm Bureau Federation is a model of outstanding partnership for Pilgrim RC&D Council in New England. Over the past several years, the Federation and the RC&D Council have led an effort to help farming communities organize municipal agricultural commissions. These commissions have had a tremendous impact, strengthening the voice and visibility of agriculture at the grass roots level and supporting the growth of a sustainable agricultural industry that supplies healthy food to the people of Massachusetts.

Commissions have passed important local regulations, educated local officials on farmers interests, protected farmland, and created farmers markets and local food guides – all of which support family farms and local foods. Without the partnership between the Federation and RC&D Council, those things could surely not have been achieved.” Accepting the award on behalf of MFBF, Dr. Bonanno stated, “We are honored to receive this award and thank the Pilgrim RC&D Council for nominating us. To be recognized by a peer organization has special meaning. Our organizations share similar goals and it is especially gratifying to be recognized as a true partner.”

The RC&D Program is administered by the Natural Resources Conservation Service, a part of the USDA. The program’s goal is to promote conservation, improve land use, develop natural resources, and enhance social, economic, and environmental conditions. Through the RC&D program, community-oriented projects are carried out in accordance with the priorities of area residents. Each Council is organized and directed by local people to meet local needs.

Are You Putting your Business at Risk? By Farm Family Insurance

Personal Use of a Business Vehicle

A real life claim brought to light risks associated with the personal use of business vehicles. An employee brought a company owned vehicle home after work. When pulling into his driveway, the vehicle struck and killed a one-year old child. The business faced potential exposure as the owner of the vehicle. The child’s family wanted to know if the business acted with appropriate care allowing this employee to operate the vehicle.

You could be responsible if you knowingly entrust the use of a company vehicle to a person who is intoxicated, incompetent, reckless, irresponsible or otherwise unqualified or incapable of safely operating the vehicle and an accident occurs as a result.

What is the Personal Use Exposure to Your Business?

• Injury to your employees              

• Injury to occupants of other vehicles

• Injury to pedestrians

• Injury to occupants of the insured vehicle

• Damage to other vehicles

• Damage to structures and other property

• Damage to insured vehicle and its contents

• Loss of use of the insured vehicle

• Loss of use of the insured’s property

• Loss of income to you and your business due to employee injury or damage to your vehicles

Avoid or Reduce Your Business Risk

You can avoid risk for your business by limiting any personal or non-business use of your vehicles. However, providing company vehicles for employees or business owners to use either while at work or while away from work can be very beneficial to the employer as well as the employee.

If you choose to have employees drive business vehicles, act responsibly. Demonstrate reasonable care in the selection and monitoring of drivers, and set expectations regarding the use of business vehicles to minimize your overall risk.

Utilize Written Guidelines and Training

To assist with reducing your risk, use written guidelines and training for the appropriate use of business vehicles. Consider the following ideas:

•  Allow only approved company employees with valid driver’s licenses to operate vehicles

• Allow company-owned vehicles to be used only for the company’s business purposes

• Lock company-owned vehicles and secure keys when not in use

• Prohibit towing by company-owned vehicles

• Expressly prohibit alcohol / drug use

• Expressly prohibit use of cell phones and other electronic devices unless “hands free” and/or legally permissible

• Require approved drivers sign a statement agreeing to abide by all company policies related to the operation and use of company-owned vehicles (vehicle agreement)

• Set policies regarding borrowed vehicles

• Carefully select approved drivers

            *              Review motor vehicle records of all prospective drivers

            *              Impose a minimum age limit for approved drivers

            *              overall work habits and level of responsibility demonstrated by prospective drivers

            *              Require a road test of each prospective qualified driver

• Implement a driver training program to include:

            *              Seat belt use

            *              Proper actions in the event of an accident or emergency

            *              Defensive driver training

• Implement a drug and alcohol testing program for all approved drivers

• Implement a vehicle maintenance and inspection program to include:

            *              Pre- and post-trip inspections of company-owned vehicles

            *              Safety inspections of all company-owned vehicles as required by law, at minimum

            *              Defect reporting and follow-up procedures

            *              Emergency repair and accident reporting procedures

            *              Proper storing and parking procedures

This information does not address all issues you may face or options to consider. Apply a few or all of the above practices to reduce your company’s exposure to loss associated with operating motor vehicles.

This article was provided by Farm Family Casualty Insurance Company for informational purposes only. Farmers face unique issues. Talk to an insurance agent who understands agriculture insurance. To find an agent near you call 1-800-THE-FARM or visit www.FarmFamily.com.

The Farm Family group of insurance companies, headquartered in Glenmont NY, operates in 13 states in the Northeast and is a subsidiary of American National Family of Companies.

The information contained in this article has been obtained from sources believed to be reliable. 1Bendickson, Nancy. Fleet Risk Control Guideline, The American Society of Safety Engineers. Retrieved April 8, 2010 from http://www.asse.org/practicespecialties/articles/bendickson.php. The information is general in nature and may not apply to all circumstances. Farm Family, its affiliates, agents and employees do not guarantee the accuracy or completeness of the information provided and assumes no liability, expressed or implied, in connection therewith.

March is membership month at Massachusetts Farm Bureau!  I urge every member to be part of the movement to sign up one new member during March.  It doesn’t have to be hard…I’m sure each of you can identify one farmer, part-time or full-time, who you can recruit as a new member.  Or instead, perhaps have a customer, a friend, or an employee who would find value being an Associate member.

The strength of Farm Bureau is in its membership.  Despite the economic times, last year American Farm Bureau Federation celebrated 50 years of continuous growth!  Unfortunately, Massachusetts LOST members, and we need to turn that around.  Our Regular, or farmer memberships, increased.  This is a healthy sign that I hope continues.  USDA says we have at least 7600 farmers in Massachusetts, so the potential for continued growth is there, but we need the efforts of our members to make it happen.  Stop by and sign up a new member, and you’ll receive a $20 incentive check from MFBF.  There are other incentive awards as well, and with a little effort you can have your own dues paid for free, and also have the good feeling of helping YOUR organization to grow.

Recently, Massachusetts Farm Bureau Federation entered into a one-time joint membership opportunity for forest landowners.  By joining Farm Bureau as a Regular member, forest landowners can opt to join either the Massachusetts Wood Producers or the Massachusetts Forest Landowners Association at no additional cost!  We recently did a substantial membership mailing to forest landowners, and the new memberships are beginning to come in the mail.  This is a natural constituency for Farm Bureau, as landowner issues are high on our agenda, and forest harvesting activities are defined as agriculture in state law.

But we need a strong base of Associate members as well.  Associate members can be an employee, a neighbor, a customer with an interest in agriculture, or a landowner who doesn’t manage their property for income.  Many of our Associate memberships are enrolled by Farm Family Insurance agents, and we appreciate their efforts, but Farm Bureau needs members who are genuinely interested in our issues and policies.  I encourage you to reach out and enroll a new member in March.

Last year, many of our county Farm Bureaus established a Student membership category.  For $25 annual dues, a student living at home or away can receive the newsletter via email, and enjoy all of the Farm Bureau discounts.  They can also participate in Young Farmer programs, so this membership category is a real bargain!  I’m sure that you have a valued summer employee, a son, daughter or grandchild with an interest in the farm.  Sign them up this month as a new Farm Bureau member!

You will find a membership application below.  Feel free to make copies and get started signing up those new members before you get busy this Spring!  All of Farm Bureau will appreciate your efforts.

On another topic:  MFBF would like to invite any active members to participate in an AFBF Leadership Training workshop, to be held March 21 in Sturbridge.  This one-day event will provide training in membership recruitment, effective meetings, public relations, and more.  The $10 registration fee also includes lunch.  The workshop schedule is listed below and is also posted on www.mfbf.net.  You can contact Susan Cornelia in the Marlborough office (508-481-4766 or susan@mfbf.net) for more information or to register by March 10th.  Whether you are a Farm Bureau leader, or active in other organizations you will find great value in this program.

 
 Remember, its membership month, and we need YOUR help!

 Douglas Gillespie
MFBF Executive Director
doug@mfbf.net

Any Farm Bureau member that is 65 years or older and has been approved for Medicare is eligible to enroll in the MFBF’s BlueCross/Blue Shield Medicare Supplement Insurance Plan.  The plans that are offered are the Medex 2 (without prescription coverage) and Medex 3 (with prescription coverage).  For further information, please contact Kerry Reynolds at the MFBF office at 508.481.4766 or kerry@mfbf.net

We are happy to announce that AFBF has scheduled a membership and leadership development training meeting in Sturbridge, MA on March 21st.   The meeting will start at 10:00 a.m. with registration beginning at 9:00 a.m, and is scheduled to  conclude at 3:00 p.m.  There will be a $10 per person registration fee.

Agenda:

9:00 a.m. - 10:00 a.m.                                Registration

10:00 a.m. - 11:00 a.m.                              Membership Campaign 101

Do you want to know more about how membership works in your county?  With Membership Campaign 101 we will give you the foundation to have a successful campaign.  We will discuss information on how to organize your campaign, from who to get involved, meetings that should be held, setting a schedule and a group discussion on what works. 

11:00 a.m. - 11:15 a.m.                              Break

11:15 a.m. - 12:00 p.m.                              Prospecting

When it comes to membership, striking it rich is when you find a wealth of new members.  Prospecting will teach you where to look for potential new members and how to best utilize your #1 untapped resource... your current members.  

12:00 p.m. - 1:00 p.m.                                Lunch

1:00 p.m. -1:45 p.m.                                   Effective Committees

Successful committees can manage issues of leadership, communication, organization and recruitment.  We will focus on the importance of getting the right volunteers involved and maintaining those productive committees needed for all Farm Bureaus.

1:45 p.m. - 3:00 p.m.                                  Make it Magnetic

Magnets attract objects, but they can also repel them.  So it is with Farm Bureau and volunteers.  If we have great opportunities for involvement, we can recruit volunteers to help us with membership and other vital committees, providing our volunteers a rewarding experience.  In this session, we’ll explore the principles that attract members to volunteer opportunities and provide you with tools you can use to help volunteers stick with the Farm Bureau for years to come. 

3:00 p.m.                                                    Adjourn

**Please contact Susan Cornelia in our Marlborough office either by phone at 508.481.4766 or via email: susan@mfbf.net .  This meeting is open to all Mass Farm Bureau members.**

They’re hot off the press and available for purchase.  We’re pleased to offer a limited number of the Massachusetts Century Farms 2010 books for sale. The book chronicles the stories behind these farms that have been family-owned and operated for at least 100 years. 

Did you know that there are thirteen farms in Massachusetts that have been continuously farmed for over 300 years?!  Or, that the largest Air Force Reserve base in the United States was once part of a Massachusetts Century Farm? From stories of brushes with famous people such as the Marquis de Lafayette and Teddy Roosevelt, to everyday details such as how milk was sold by the dipperful, the book offers an in-depth look at how these farms were operated through the years. It’s an interesting read and great company for these cold winter nights.

To order your copy, please send a check for ten dollars (includes tax and shipping) made payable to Massachusetts Farm Bureau (or MFBF). Send to: 249 Lakeside Ave.,
Marlborough, MA 01752.

If so, you are not alone!!  Seventy-six percent of the Commonwealth’s 3.1 million acres of forestland is privately owned by over 220,000 individual landowners.  An additional 20,000 to 30,000 acres is owned by municipalities as “Town Forests”.  The flow of public benefits such as clean water and air, wildlife habitat, recreation and long-term wood supply is directly related to the health and sustainability of these forests.  To promote and protect the health and sustainability of the Commonwealth’s forests, the Department of Conservation and Recreation (DCR) and the Massachusetts Farm Bureau have two programs that may be of benefit to you as a forest land owner – the Forest Stewardship Program and the Forest Viability and Enhancement Program.

FOREST STEWARDSHIP PROGRAM - Partner with Berkshire-Pioneer RC&D

The primary objective of the Forest Stewardship Program is to reduce the likelihood of
development of forest properties by encouraging active forest management through a 7-year agreement to the Massachusetts Forest Stewardship Program. The Forest Stewardship Program provides a cost share up to 100% of the cost for the development of Forest Stewardship Plans by a consulting forester.

Over 500 landowners have had Forest Stewardship plans approved on more than 45,000 acres in the 20 months Farm Bureau has been working with Berkshire Pioneer and DCR.  Berkshire-Pioneer RC&D has been running this program for DCR and U.S. Forest Service for over 15 years and is an excellent and experienced partner.

Another component of forest management that you might consider is Forest Stewardship Council Green Certification. The Forest Stewardship Council TM (FSC) is a non-governmental, non-profit organization that promotes the responsible management of the world’s forests.  Forest certification is a third party auditing system of forest management practices.  The use of certification engages the marketplace, encouraging recognition of the value of forests, and moreover to advance standards in forest management practices.  Certification assures consumers of forest products that the raw materials in their purchases originated from a forest managed under recognized sustainable management practices.  The principles and criteria established by FSC promote ecologically beneficial, socially responsible, economically viable forest management practices.

Add Green Certification to the mix and over 565 landowners have been assisted on more than 55,100 acres all at a cost of less than $13.85 per acre to the Commonwealth. Farm Bureau’s goal of this 3 year contract with DCR is to add 52,000 acres of private and municipal forestland to the Forest Stewardship Program and we are well on the way to making it, but it’s not too late for you to apply.  Find out more at: http://www.mass.gov/dcr/stewardship/forestry/service/documents/stewarshipplanappl.pdf

FOREST VIABILITY ENHANCEMENT PROGRAM:

The Forest Viability Enhancement Program will be very similar in structure and operation to the successful Farm Viability Program at DAR.  The Forest Viability Program will focus on forest landowners currently engaged in any one or a combination of the following three forest-based business categories: traditional forest products, non-traditional forest products or recreation and wildlife.

In Phase I of the Program, landowners will be identified by Farm Bureau and selected by DCR, to participate in this program based on responses to an application developed and distributed by Farm Bureau.   Approved landowner participants will then work with a technical team of consultants recruited and organized by Farm Bureau and comprised of environmental, economic, and marketing consultants with special knowledge of forest-based business to develop a focused Forest Viability Enhancement Plan.  A participant’s Forest Viability Enhancement Plan will suggest ways for the forest landowner to increase the economic return from the forest-based business through ecologically sustainable methods such as more efficient production of specialty products, niche marketing, direct marketing, value-added initiatives, eco-tourism, and improved management practices.

In return for the development of a Forest Viability Enhancement Plan, a participating landowner must commit to a Phase I seven (7) year Forest Stewardship Plan and will be managed by long-term forest management principles.

In Phase II, landowners with an DCR approved Forest Viability Enhancement Plan will then be considered for funding to implement specific portions of the Plan.  In addition to implementation funding for mutually agreed upon items identified in the plan, the implementation contract will require the landowner to convey to DCR a 20-year covenant on the entire property from which the forest-based business is derived.  Implementation awards are not to exceed $20,000 per plan.

Farm Bureau’s goal by June 30, 2012 is 15 covenants with 1500 acres under covenant.  To date we have 9 participants in the program and you can be one too!  Just call Kent Lage at 508-481-4766 or e-mail at kent@mfbf.net

Kent Lage
Director Forestry Programs
kent@mfbf.net

As our string of legislative breakfasts continue throughout the state and we approach Ag Day at the Statehouse on April 7, we are reminded of the importance of strengthening our association with our sister organizations and with the legislature.  Our legislative agenda is the direct result of our grassroots policy which culminates in our delegate session at the December MFBF annual meeting.  We take that agenda, help to develop appropriate legislation, find legislative sponsors, and follow that legislation through the process, hopefully to a satisfactory completion.  As you can read in Brad Mitchell’s column, we sometimes get surprises and we are forced to expand our efforts to protect agriculture.   Our efforts, combined with the efforts of our members, are keys to our survival.  We are about to embark on another membership recruiting year and the importance of both renewing memberships and attracting new members is critical to the success of our efforts.  See also Doug Gillespie’s column on membership.

In early February, I attended the Agent Kickoff meeting for Farm Family Insurance in Galveston, TX.  This meeting was combined with American National’s Kickoff (Farm Family’s parent company), which is headquartered in Galveston.  Our relationship with Farm Family Insurance is based on our need for good insurance policies that work well for our members and it is also based on the ability of Farm Family to expand their business within Massachusetts which becomes part of our overall growth strategy.  The insurance business in Massachusetts has become much more competitive and there is no question that 2010 was a tough recruiting year for us.  Regular membership was up but Associate membership was down in 2010.  We hope that 2011 will see a turnaround in this trend on the Associate membership side and a positive effect on our overall membership strategy.

In mid-February, I attended a luncheon at the Annual Meeting of the National Association of Resource Conservation & Development Councils in Washington, DC.  I was there to receive their partnership award.  The press release relative to this very nice event is included in this newsletter.

2011 and the new Congress has brought renewed debate on the Federal budget and huge deficits.  Once again we struggle to support efforts to reduce our national debt while, at the same time, striving to protect those parts of the budget that are most important to us.  One of the most critical debates in the Agriculture budget involves reductions in formula funding versus an expanded interest in increasing dollars for competitive funding.  In short, formula funding is a pool of money that is divided among the states based on the size of agriculture in each state.  These dollars fund our research and Extension efforts at UMass and, along with state dollars, leverage competitive grants to expand those efforts.  Formula funds have not increased much over time and cuts have been proposed both by the House in the Continuing Resolution to fund the Federal Government now and by the President, in his 2012 budget request.  Our view is that formula funds need to be maintained and that competitive funds should not be increased in down years.  If critical personnel at our Universities are lost, it makes little sense to increase the pool of competitive money that the staff, no longer there, can apply for.

Finally, I hope that everyone will make an effort to attend Ag Day at the State House on April 7, 2011.  I always appreciate your comments and concerns.  Let me know what you think at rich@mfbf.net

 
Dr. Rich Bonanno, President
Massachusetts Farm Bureau

USDA’s Risk Management Agency (RMA) has made major improvements to the federal Dairy Gross Margin insurance. Industry analysts predict that the new and improved insurance program will make believers out of most dairy producers. For starters, the premiums are now subsidized, like crop insurance. The difference is that the subsidies are set based on the level of the deductible the dairy operator elects. The higher the deductible the higher is the level of subsidy (if milk is enrolled in at least two months of the enrollment period.) Deductibles are now available from zero to $2 per hundred weight, in 10 cent intervals, an increase from the previous $1.50.

Also, instead of having to pay the full premium at time of enrollment, premium payments are now due at the end of the coverage period. Another important change is that now maximum feed loads amounts/values) have been increased to allow for forage, young, and dry cattle.

How it Works

The Dairy Gross Margin insurance program is an income over feed cost financial safety net. It provides dairy producers a monthly enrollment opportunity to develop and implement a financial safety net for their business plan for the year ahead.

The insurance covers the difference between the expected gross margin (insurance guarantee) and the actual gross margin for producer’s selected month(s), for a targeted amount of milk. Futures prices from the Chicago Mercantile Exchange (CME) are used to determine the value of milk and feed. Using futures prices results in uniform commodity pricing for all producers.

The expected gross margin is determined by using the producer’s estimated hundredweights of milk times the futures price(s) for a selected month(s) period. Feed costs are calculated by determining the expected  amount of feed to be fed (RMA established default or producer actual) during the same time period.  These quantities of feed are converted into shelled corn and soybean meal equivalents and multiplied by the CME prices for the selected period.

The actual gross margin is calculated for the same time period as the expected gross margin, using the actual CME prices. The calculations are done using the same methodology as was used to calculate the expected gross margin.

Cause of loss covered is the difference between the expected gross margin (insurance guarantee) and the actual gross margin. It does not insure against death or other cause of production loss or damage to the producer’s dairy cattle. It does not insure expected price changes which are already reflected in Board of Trade (BOT) futures prices.

An insurance indemnity (loss payment) results when the expected gross margin exceeds the actual gross margin.

Enrollment Periods. Looking up to a year ahead, the last 10 months of each enrollment period is when insurance is available. Producer can elect to insure during selected months, or for all 10 months in each period.

If you raise animals, you have no doubt heard of the Humane Society of the United States (HSUS). HSUS is a DC based special interest group that advocates for animal rights. HSUS is not to be confused with your local humane organization where you might have adopted a dog or cat. The vast majority of HSUS efforts are geared towards lobbying and public relations, pushing for various laws at the state and federal level.

HSUS is increasingly active in Massachusetts. Last legislative session they filed a bill that would have banned certain forms of animal agriculture – battery caged egg operations, veal crates, and gestation crates for sows. 

In press releases and blogs, HSUS and their supporters typically refer to such farms as “Factory Farms”. The bill died in Committee, but it has been refiled. This time HSUS appears to be putting more of a push behind the bill. They have hired a Massachusetts coordinator, are doing lobbying trainings for supporters, and are organizing a lobby day at the Statehouse. It’s clear they are putting a renewed emphasis on this issue in Massachusetts.

The odd thing is that we only have a half-dozen or so operations that would be impacted if this bill became law. We don’t have any crated veal operations. I only know of a couple folks using gestation crates and two or three using battery cages. Even then, none of these are large farms.  All of the egg operations together wouldn’t have a fraction of the number of birds you would find on a single floor of a large egg operation in the Midwest. To make things even odder, HSUS ranks Massachusetts as tied for third place in their ranking of state’s animal protection laws.   Through their own measurement, Massachusetts is already way ahead of most of the country in animal welfare.

It begs the question then, why the big emphasis by HSUS in Massachusetts?

No one knows, but the most logical theory is that Massachusetts is a state ripe for fundraising.  Our population is largely urban and suburban where agriculture is not a major employer. We have a lot of pet owners who are susceptible to the type of emotional campaign for which HSUS is known. In short, Massachusetts citizens are an easy target for HSUS. Their campaigns on various bills and issues are always accompanied by fundraising pleas which by all accounts are wildly successful. HSUS reportedly has $200 million in assets.  The American Farm Bureau in contrast had assets of less than $38 million in 2007.  While HSUS frequently raises the battle cry over “factory farms”, it would seem HSUS fits quite well into the category of “Factory Fundraisers”.

Massachusetts farmers are not operating factory farms by ANY definition of the term. This includes the handful that would be impacted by the HSUS bill. MFBF has two concerns with the HSUS bill:

• We think it’s unfair to target these farming operations. The systems they have in place were state of the art ten years ago and recommended by USDA and Extension Services. Many can’t afford new systems. Closing them would create a hardship for these families and their employees. It would also hinder the local food system, causing many buyers to purchase eggs and pork from out-of-state - more likely than not from larger operations that also employ battery cages and gestation crates.

• We don’t think HSUS will draw the line here. While they are targeting these ag practices today, If they get what they want today, tomorrow they will be pushing for bans on practices that more common in Massachusetts, and which many more farms rely on in order to remain sustainable.  After HSUS was successful in banning hen cages where the hens’ free movement was limited, one farmer spent $3.2 million on an “enriched cage system” that allowed birds to move freely. HSUS’s response? Unacceptable – only cage-free is acceptable.

Farm Bureau has filed its own bill on humane standards for livestock. In next month’s issue we’ll go into more detail on this bill and its benefits.

 Brad Mitchell
Director Government Relations
brad@mfbf.net

Organic farming has become one of the fastest growing segments of U.S. agriculture.  In Massachusetts, producers are turning to certified organic farming systems as a potential way to lower input costs, decrease reliance on nonrenewable resources, capture high-value markets and premium prices, and boost farm income. 

The USDA’s Risk Management Agency (RMA) recognizes organic farming practices as good farming practices and continues to move forward in improving crop insurance coverage for organic producers and producers transitioning to organic production, so they will have viable and effective risk management options available to them.

One of the best ways to protect your valuable investment is by buying the protection that comes with a Federally reinsured and subsidized crop insurance policy.  RMA provides coverage for 1) certified organic acreage, 2) transitional acreage being converted to organic acreage, and 3) buffer zone acreage.  Insurance can only be provided for a crop grown using organic farming practices when a premium rate for the organic practice is contained within the actuarial documents or there is an approved written agreement.

Covered perils under most crop insurance policies include losses due to the following causes if the damage is significant enough to lower a yield below the deductible for the entire insured unit: drought, excess moisture, freeze, hail, prevented planting (for eligible crops), insect damage, disease, and weeds, if recognized organic farming practices fail to provide an effective control method that may result in losses.

Program premiums are adjusted to recognize any additional risk associated with covering organic farming practices under the terms of the Crop Provisions. These premium adjustments are reviewed annually based on the accumulated insurance experience.

Crop insurance programs can be difficult to understand.  The plan and coverage level that might be right for one farmer’s operation may not be the best plan for his or her neighbor.  Knowing how to choose may seem as complicated as learning how to speak another language, but it doesn’t have to be.  Well-trained, certified crop insurance agents are ready and willing to help producers understand their options.  A good crop insurance agent will be able to answer your questions and help you choose the right tools for your operation.  It doesn’t cost a dime to ask.

For more information about Federal crop insurance programs, producers should visit the RMA Web site at http://www.rma.usda.gov.  Federal crop insurance program policies are sold and delivered through private crop insurance companies.  A list of crop insurance agents is available at all USDA Service Centers or on the RMA website at http://www3.rma.usda.gov/tools/agents/. 

Organic producers are also encouraged to call Custom Ag Solutions (CAS) at 877-227-8094 to discuss how Federal crop insurance programs can work in their individual operations.  This article was developed by CAS based on two RMA Fact Sheets: 1) Crop Insurance Works for Organic Producers and 2) Organic Farming Practices.  CAS works with RMA and the MFBF to educate Massachusetts producers about Federal Crop Insurance Programs.

Bristol County Farm Bureau honored longtime member Charles Costa of Westport for over 50 years of Farm Bureau membership.  At their February legislative breakfast, BCFB presented Costa with a Farm Bureau jacket.  US Congressman Barney Frank was also present to honor Costa for 50 years of service to the USDA Farm Service Agency.  Costa is a past BCFB Vice President, FSA County and State Committee member, FSA State Director and Assistant Commissioner of Agriculture.

In July the Mass. Legislature passed a school nutrition bill.  In addition to allowing public school districts to make multiple purchases of locally grown foods from farmers in contracts of less than $25,000 without bids, the bill directs state agencies and public colleges to purchase agricultural products grown in Massachusetts.  It also instructs both the Mass. Dept. of Elementary and Secondary Education and the Mass. Dept. of Agricultural Resources to collect data about local farms and public schools doing business together.  For more information contact mafarmtoschool@gmail.com  or call the Mass. Farm to School Project office at 413-253-3844.

A Wool Pool is being organized to provide local sheep producers with a way to market their wool. Those with small flocks of sheep who have no outlet to sell their wool (most buyers won’t purchase small quantities) can take advantage of this opportunity. It is scheduled to be held on July 2, 2011 at the Cummington Fairgrounds. Consignors are asked to bring their wool at pre-arranged delivery times to avoid chaos.  Volunteers will also be needed for handling the wool. Interested parties should contact Aaron Loux at 413-230-8607.  Please call a month ahead for price estimates.

Applications are now available for the Worcester County Farm Bureau scholarship. WCFB gives multiple $500.00 scholarships every spring to children of regular and gold members of Worcester County Farm Bureau in good standing. 

Email Jon Nourse, President of WCFB for the application. The e-mail address is jwnourse@aol.com or call Jon at 508.366.2644

Island Alpaca Company, www.islandalpaca.com, 10% discount to MA Farm Bureau Members off current retail prices for alpaca goods in the farm store (except spinning equipment).  Martha’s Vineyard, 508-693-5554.

Roberts Brothers Lumber, 1450 Spruce Corner Road, Ashfield MA 01330, 10% savings on current Lumber Price Sheet, excluding delivery, planning and any other services.

Dowse Orchards, 98 North Main Street, Sherborn, MA  01770, 10% savings on farm produce.  508-653-2639, www.dowseorchards.com.

Twin City Eye Care, 867 Merriam Ave., Leominster, MA  01453, 978-537-6045, www.twincityeyecare.com. 20% discount on lenses and frames.

Budget Truck Rentals – Moving household contents or moving product to that Farmers’ Market, MFBF members get a 15% discount on Budget Truck Rentals by using MFBF account number 56000133689.  Visit www.budgettruck.com/mafbf or call 1-800-566-8422.  (Insert Ad).

Prescription Rx – This benefit helps reduce prescription drug costs.  MFBF members save an average of 30% (some as high as 75%) on prescriptions.  The card is like a coupon that you use over and over again at over 75,000 national and regional pharmacies.  The cards will be sent with your Farm Bureau membership renewal invoice or call the office to request one now.  If your CVS pharmacist or clerk does not recognize the Rx card, have them enter COBRA CODE 25875 for the CVS pharmacy terminal system. 

Dodge – it is a great time to purchase a new Dodge vehicle.  Remember our $500 rebate after you make your “best deal!”

Grainger sales – 10% discount and free shipping on internet orders. wwwgrainger.com. 

Items for sale

FOR SALE:  Tires. Great prices, all sizes, tire repairs, road service, calcium chloride service. Hoey Tire, Worcester. Call 508-755-6666, www.hoeytire.com.

FOR SALE:  Century Boom Sprayer $600.00; Penns Creek one sided 25’ boom sprayer (also does corn) $3,200.00; John Deere Pequa 2 row planter $2,495.00; 2 row cultivator/fertilizer $1,200.00; Knverland 3 bottom plow $2,000.00; electric fence supplies, call 617-645-6444.

FOR SALE:  Hay, 1^st and 2^nd cut – no dust guaranteed. Wholesale and retail. We deliver and unload. Call our work cell at 774-259-6960 or our office # at 508-252-9029. Thank you. Skip and Tish @ Homestead Farms.

Service

APPRAISER/CONSULTANT for farm/forest property. Estate planning, buying/selling, APR/CR valuation my specialty. William King 508-867-2600.

FARM MAINTENANCE:  All types arena work, construction & renewal. Paddock areas built, fencing new & repairs, hydrant work, brush work, field fertilization & care. CRF Maintenance Services. www.cringfarm.com  508-234-9824.

SERVING THE FARMERS IN MASS: Helping farmers keep what they make.  Experienced in dairy, beef, fruit & vegetable farming; experienced with APR, retirement planning, estate planning & taxation, tax free exchanges. Donald E. Graves, CPA, LLC,Masters Degree in Taxation &   Financial Planning, Bentley College, 377 Main Street, Suite 1, Greenfield, MA  01301-3332,  1-800-286-6036, info@donaldegravescpa.com

PASTURES: Let our expertise in pasture construction and design provide you with pastoral views,   solutions for your equestrian needs and elimination of boarding fees.  Reclaim your   woodlands into pastures. Increase your property value. Call Woodridge Farm, Lincoln, MA  781-259-0251