NIPSS COURSE 39 TO DESIGN SCIENTIFIC APPROACH ON FG AGRICULTURE POLICY.

Senior Executive members of Course 39, National Institute for Policy and Strategic Studies (NIPSS), Kuru, near Jos, in Plateau State have said that they would adopt scientific approach to Federal Government’s policy on agriculture as to hasten new technologies  to develop the sector.

The team leader, Dr. Nasiru Usman , stated this on Monday during the Course 39  courtesy visit on Governor Abubakar Atiku Bagudu of Kebbi State at Government House, Birnin-Kebbi.

Usman noted that because of the present administration on the agricultural sector, they have decided that this year’s theme would be  raged ” Science , Technology and Innovation in Developing Agriculture and Agro Allied Industries in Nigeria”,.

He said:  ” Kebbi was strategically selected for the tour because of its leading position in agriculture especially rice , the President charges the senior executive course members to see how agriculture can be developed using scientific and technological ways as well as that agro allied industries .

” We will see what people of the state are doing in agriculture , we see what the state and federal governments are also doing, the challenges and in the end come up with a report which will be part of policy formulation ”, he said.

Usman added that the Institute was established in 1979 as a center for research, dialogue and reflection to assist the government in strategic policy formulation.

In his remarks, Governor Bagudu represented by his deputy, Alhaji Samaila Yombe Dabai, commended the President Muhammadu Buhari for launching the CBN Anchor Borrower Program which according to him has succeeded with about 2.5 million tones of rice within the first year.
He described Federal Government action’s as a practical measure to ensure Nigeria were self reliant nation in food production. BY OLANREWAJU LAWAL

MAKING AGRICULTURE COMPULSORY IN SECONDARY SCHOOLS.

ONE positive outcome of the present excruciating recession is the realization by the government of the urgent need to move aware from our over dependence on revenue generated from exporting crude oil, to other more sustainable sectors with multiplier economic benefits such as agriculture and solid minerals. The present government at all levels has not failed to inform us of its commitment to diversify our contracted economy through agriculture. The potential for accelerated economic growth through agriculture cannot be overstated. To buttress this reality, in 2013, the Food and Agriculture Organization (FOA) stated that agriculture is eleven times more effective in poverty-reduction than any other sector.

The agricultural sector remains the most reliable enabler of economic growth. In Nigeria, it presently employs about 60-70% of our labour force, contributes around 40% of our GDP, and the second highest foreign exchange earner after oil. This is not to deny the reality that the sector has been neglected for close to over four decades now, as a result of the oil boom in the 1970s. In the years before 1975, Nigeria accounted for over 60% of the global supply of palm oil, 35 per cent of groundnut, 23% of groundnut oil and 25% of cocoa. Afterwards, due to neglect, agriculture has been practised more on paper than on the farms. Its image has been battered, as it is associated with the poor, crude methods (hardship) and subsistence living.

Some of the challenges that afflicted the sector includes but not limited to lack of political will; inconsistency in policies; poor public investment in research, mechanization, technology; inadequate or absence of critical infrastructure; limited access to credit; lack of good agricultural practices and standardization; poor market accessibility; corruption and politicization of the sector. This has led to the overdependence on importation of food items, which we have the capacity to produce better quality. It is unfortunate that our import bill for just five products cost us between 3-5billion dollars annually. These monies that should be used to revitalize the agricultural sector, and attract more private sector investments, are being taken out of the country to the benefit of others.

This is as a result of inconsistency and limited successes of previous policies such as the National Accelerated Food Production Programme (NAFPP) in 1972; Operation Feed the Nation, 1976; River Basin and Rural Development Authorities, 1976; Green Revolution Programme, 1980; Agriculture in Nigeria: The New Policy Thrust, 2001 and the National Food Security Programme (NFSP) in August 2008. The Agriculture Transformation Agenda of 2011-2015, even with its own peculiar challenges, was at least able to shift the paradigm back to agriculture, especially as a business. The present policy is the Agricultural Promotion Policy 2016-2020, which has broken the jinx of policy inconsistency as it is a modified and improved continuation of the Agricultural Transformation Agenda.

While my prayer is that we will see more consistency in policy even after 2020; my worry is that no adequate and sustainable provision, legal or policy, has been made to address the issue of the ageing farming population and youth apathy towards agriculture. The key challenge is that the present generation of youth has grown up with the wrong perception that agriculture is a dirty and labour-intensive activity meant for the poor in rural communities. This has made it the more difficult to attract young people into the agricultural sector; but all hope is not lost as we have come across a Bill presently in the House of Assembly, that when passed, will go a long way in rebranding the perception of the younger ones towards agriculture.

Presently, in the House of Representatives, there is a bill being sponsored by Honorable Yusuf Buba Yakub, representing Gombi/Hong Federal Constituency of Adamawa State in the National Assembly. The short title of the Bill is “Mandatory Inclusion of Agricultural Science in Secondary Schools Curriculum in Nigeria 2016”. The Bill which has passed second reading is designed to stimulate and sustain students interest in agriculture to enable students acquire useful knowledge and skills in line with global standards.

This will ensure that the students become knowledgeable in both the theoretical and practical aspect of agriculture at their tender age. By catching them young, it will cultivate and sustain their interest in and passion for agriculture.

Some of the key features of the bill include: Establishment – the Educational Research Institute is mandated to provide for mandatory inclusion of Agricultural Science as a core and compulsory subject for all secondary schools in Nigeria; Regulation/Implementation- (i) the Institute shall liaise with the states Ministry of Education to ensure the inclusion of Agricultural Science in the Secondary Schools Curriculum, (ii) the Agricultural Science shall be made a compulsory subject in all Junior Secondary Schools in those states; Short Title- This bill may be cited as the Mandatory Inclusion of Agricultural Science in Secondary Schools Curriculum in Nigeria Bill 2016.

Indeed, the significance of this Bill, when passed, cannot be overemphasized as it will guarantee inter-generational continuity and supply of skilled labour force in the agricultural sector. The study of agricultural science, even though not new, should be of paramount importance if we are serious about sustainable economic growth and development through diversification using agriculture. This will see a close synergy between the Ministry of Agriculture and that of Education in coming out with a curriculum that links the demand and supply of skilled labour in the agricultural sector. In schools that are presently offering agricultural science as a subject; agricultural laboratories will be created, and emphasis placed on practical not just theory. This will not only sustain interest but encourage innovation among the passionate students.

This and many more reasons are why the Coalition of Association for Leadership, Peace, Empowerment & Development (CALPED) is fully supporting the Bill, due to its multiplier economic benefits when passed into law. We also call on all well-meaning Nigerians (especially members of the National Assembly, CSOs, farming groups and media) to also see the Bill not only for Honorable Yusuf Buba Yakub to promote, but one that will benefit us all when passed and so we should advocate for and support it.

Goje is of the Coalition of Association for Leadership, Peace, Empowerment & Development (CALPED) BY YUSUF ISHAKU.

INTRODUCTION TO ORGANIC FARMING

Defining “Organic”

Organic farming is a method of crop and livestock production that involves much more than choosing not to use pesticides, fertilizers, genetically modified organisms, antibiotics and growth hormones.
Organic production is a holistic system designed to optimize the productivity and fitness of diverse communities within the agro-ecosystem, including soil organisms, plants, livestock and people. The principal goal of organic production is to develop enterprises that are sustainable and harmonious with the environment.

The general principles of organic production, from the Canadian Organic Standards (2006), include the following:

• protect the environment, minimize soil degradation and erosion, decrease pollution, optimize biological productivity and promote a sound state of health
• maintain long-term soil fertility by optimizing conditions for biological activity within the soil
• maintain biological diversity within the system
• recycle materials and resources to the greatest extent possible within the enterprise
• provide attentive care that promotes the health and meets the behavioural needs of livestock
• prepare organic products, emphasizing careful processing, and handling methods in order to maintain the organic integrity and vital qualities of the products at all stages of production
• rely on renewable resources in locally organized agricultural systems

Organic farming promotes the use of crop rotations and cover crops, and encourages balanced host/predator relationships. Organic residues and nutrients produced on the farm are recycled back to the soil. Cover crops and composted manure are used to maintain soil organic matter and fertility. Preventative insect and disease control methods are practiced, including crop rotation, improved genetics and resistant varieties. Integrated pest and weed management, and soil conservation systems are valuable tools on an organic farm. Organically approved pesticides include “natural” or other pest management products included in the Permitted Substances List (PSL) of the organic standards. The Permitted Substances List identifies substances permitted for use as a pesticides in organic agriculture.

All grains, forages and protein supplements fed to livestock must be organically grown.
The organic standards generally prohibit products of genetic engineering and animal cloning, synthetic pesticides, synthetic fertilizers, sewage sludge, synthetic drugs, synthetic food processing aids and ingredients, and ionizing radiation. Prohibited products and practices must not be used on certified organic farms for at least three years prior to harvest of the certified organic products. Livestock must be raised organically and fed 100 per cent organic feed ingredients.

Organic farming presents many challenges. Some crops are more challenging than others to grow organically; however, nearly every commodity can be produced organically.

Growth of Organic Agriculture

The world market for organic food has grown for over 15 years. Growth of retail sales in North America is predicted to be 10 per cent to 20 per cent per year during the next few years. The retail organic food market in Canada is estimated at over $1.5 billion in 2008 and $22.9 billion in the U.S.A. in 2008. It is estimated that imported products make up over 70 per cent of the organic food consumed in Canada. Canada also exports many organic products, particularly soybeans and grains.
The Canadian Organic Farmers reported 669 certified organic farms in Ontario in 2007 with over 100,000 certified organic acres of crops and pasture land. This is an annual increase of approximately 10 per cent per year in recent years. About 48 per cent of the organic cropland is seeded to grains, 40 per cent produces hay and pasture and about five per cent for certified organic fruits and vegetables. Livestock production (meat, dairy and eggs) has also been steadily increasing in recent years.

Why Farm Organically?

The main reasons farmers state for wanting to farm organically are their concerns for the environment and about working with agricultural chemicals in conventional farming systems. There is also an issue with the amount of energy used in agriculture, since many farm chemicals require energy intensive manufacturing processes that rely heavily on fossil fuels. Organic farmers find their method of farming to be profitable and personally rewarding.

Why Buy Organic?

Consumers purchase organic foods for many different reasons. Many want to buy food products that are free of chemical pesticides or grown without conventional fertilizers. Some simply like to try new and different products. Product taste, concerns for the environment and the desire to avoid foods from genetically engineered organisms are among the many other reasons some consumers prefer to buy organic food products. In 2007 it was estimated that over 60 per cent of consumers bought some organic products. Approximately five per cent of consumers are considered to be core organic consumers who buy up to 50 per cent of all organic food.

What is "Certified Organic"?

“Certified organic” is a term given to products produced according to organic standards as certified by one of the certifying bodies. There are several certification bodies operating in Ontario. A grower wishing to be certified organic must apply to a certification body requesting an independent inspection of their farm to verify that the farm meets the organic standards. Farmers, processors and traders are each required to maintain the organic integrity of the product and to maintain a document trail for audit purposes. Products from certified organic farms are labelled and promoted as “certified organic.”
In June 2009, the Canadian government introduced regulations to regulate organic products. Under these regulations the CFI oversees organic certification, including accreditation of Conformity Verification Bodies (CVBs) and Certification Bodies (CBs). This regulation also references the Canadian Organic Production Systems General Principles and Management Standards (CAN/CGSB-32.310) and the Organic Production Systems – Permitted Substances List that were revised in 2009.
The Canadian organic regulations require certification to these standards for agricultural products represented as organic in import, export and inter-provincial trade, or that bear the federal organic agricultural product legend or logo.Products that are both produced and sold within a province are regulated by provincial organic regulations where they exist (Quebec, British Columbia and Manitoba).
The federal regulations apply to most food and drink intended for human consumption and food intended to feed livestock, including agricultural crops used for those purposes. They also apply to the cultivation of plants. The regulations do not apply to organic claims for other products such as aquaculture products, cosmetics, fibres, health care products, fertilizers, pet food, lawn care, etc.
Food products labelled as organic must contain at least 95 per cent organic ingredients (not including water and salt) and can bear the Canada Organic logo. Multi-ingredient products with 70 per cent to 95 per cent organic product content may be labelled with the declaration: “% organic ingredients”. Multi-ingredient products with less than 70 per cent organic content may identify the organic components in the ingredient list.

Exporting Organic Materials

Exported products must meet the requirements of the importing country or standards negotiated through international equivalency agreements. Products exported to the U.S. must meet the terms of the Canada-U.S. equivalency agreement signed in June 2009. All products that meet the requirements of the Canada Organic Regime can be exported to the U.S. with the exception that agricultural products derived from animals treated with antibiotics cannot not be marketed as organic in the U.S. Canada is also exploring other international equivalency agreements with other trading partners to enhance trade opportunities for export and to assure the organic integrity of imported products.

Organic Certification

When considering organic certification, know the requirements and accreditation(s) needed in the marketplace where your products will be sold. When comparing certification bodies, make sure they have the certification requirements and accreditations needed to meet market requirements. As a minimum certification bodies should be accredited under the Canadian Organic Products Regulations. Some markets may require accreditation or equivalency agreements with countries in the European Union, or with the Japanese Agricultural Standard (JAS), Bio-Swisse or other international organic certification systems. As Canada develops international equivalency agreements the need for the certification body to have these international accreditations will diminish.
For more information on certification and links to Canadian regulations and standards see the Organic Agricultural section of the OMAFRA the CFI.

The Transition Period

The first few years of organic production are the hardest. Organic standards require that organic lands must be managed using organic practices for 36 months prior to harvest of the first certified organic crop. This is called the “transition period” when both the soil and the manager adjust to the new system. Insect and weed populations also adjust during this time.
Cash flow can be a problem due to the unstable nature of the yields and the fact that price premiums are frequently not available during the transition since products do not qualify as “certified organic.” For this reason, some farmers choose to convert to organic production in stages. Crops with a low cost of production are commonly grown during the transition period to help manage this risk.
Carefully prepare a plan for conversion. Try 10 per cent to 20 per cent the first year. Pick one of the best fields to start with and expand organic acreage as knowledge and confidence are gained. It may take five to 10 years to become totally organic, but a long term approach is often more successful than a rapid conversion, especially when financial constraints are considered. Parallel production (producing both organic and conventional versions of the same crop or livestock product) is not allowed. Use good sanitation, visually different varieties, individual animal identification and other systems to maintain separation and integrity of the organic and conventional products. Good records are essential.

Successful Organic Farming

In organic production, farmers choose not to use some of the convenient chemical tools available to other farmers. Design and management of the production system are critical to the success of the farm. Select enterprises that complement each other and choose crop rotation and tillage practices to avoid or reduce crop problems.
Yields of each organic crop vary, depending on the success of the manager. During the transition from conventional to organic, production yields are lower than conventional levels, but after a three to five year transition period the organic yields typically increase.
Cereal and forage crops can be grown organically relatively easily to due to relatively low pest pressures and nutrient requirements. Soybeans also perform well but weeds can be a challenge. Corn is being grown more frequently on organic farms but careful management of weed control and fertility is needed. Meeting nitrogen requirements is particularly challenging. Corn can be successfully grown after forage legumes or if manure has been applied. Markets for organic feed grains have been strong in recent years.
The adoption of genetically engineered (GMO) corn and canola varieties on conventional farms has created the issue of buffer zones or isolation distance for organic corn and canola crops. Farmers producing corn and canola organically are required to manage the risks of GMO contamination in order to produce a “GMO-free” product. The main strategy to manage this risk is through appropriate buffer distances between organic and genetically engineered crops. Cross-pollinated crops such as corn and canola require much greater isolation distance than self-pollinated crops such as soybeans or cereals.
Fruit and vegetable crops present greater challenges depending on the crop. Some managers have been very successful, while other farms with the same crop have had significant problems. Certain insect or disease pests are more serious in some regions than in others. Some pest problems are difficult to manage with organic methods. This is less of an issue as more organically approved biopesticides become available. Marketable yields of organic horticultural crops are usually below non-organic crop yields. The yield reduction varies by crop and farm. Some organic producers have added value to their products with on-farm processing. An example is to make jams, jellies, juice, etc. using products that do not meet fresh market standards.
Livestock products can also be produced organically. In recent years, organic dairy products have become popular. There is an expanding market for organic meat products. Animals must be fed only organic feeds (except under exceptional circumstances). Feed must not contain mammalian, avian or fish by-products. All genetically engineered organisms and substances are prohibited. Antibiotics, growth hormones and insecticides are generally prohibited. If an animal becomes ill and antibiotics are necessary for recovery, they should be administered. The animal must then be segregated from the organic livestock herd and cannot be sold for organic meat products. Vaccinations are permitted when diseases cannot be controlled by other means. Artificial insemination is permitted. Always check with your certification body to determine if a product or technique is allowed in the Permitted Substances List and the organic standards. Organic production must also respect all other federal, provincial and municipal regulations.

Organic produce can usually qualify for higher prices than non-organic products. These premiums vary with the crop and may depend on whether you are dealing with a processor, wholesaler, retailer or directly with the consumer. Prices and premiums are negotiated between buyer and seller and will fluctuate with local and global supply and demand.
           
Higher prices offset the higher production costs (per unit of production) of management, labour, and for lower farm yields. These differences vary with commodity. Some experienced field crop producers, particularly of cereals and forages, report very little change in yield while in some horticultural crops such as tree fruits, significant differences in marketable yield have been observed. There may also be higher marketing costs to develop markets where there is less infrastructure than for conventional commodities. Currently, demand is greater than supply for most organic products. WORDS FROM AROUND THE WORLD. (ONTARIO).

CASSAVA STARCH MACHINE SALE.

In terms of employment, agriculture is by far the most important sector of Nigeria's economy, engaging about 70% of the labor force. Agricultural holdings are generally small and scattered; farming is often of the subsistence variety, characterized by simple tools and shifting cultivation.


These small farms produce about 80% of the total food. About 30.7 million hectares (76 million acres), or 33% of Nigeria's land area, are under cultivation. Nigeria's diverse climate, from the tropical areas of the coast to the arid zone of the north, make it possible to produce virtually all agricultural products that can be grown in the tropical and semitropical areas of the world.


The economic benefits of large-scale agriculture are recognized, and the government favors the formation of cooperative societies and settlements to encourage industrial agriculture. Large-scale agriculture, however, is not common. Despite an abundant water supply, a favorable climate, and wide areas of arable land, productivity is restricted owing to low soil fertility in many areas and inefficient methods of cultivation. Agriculture contributed 32% to GDP in 2001.

    
The agricultural products of Nigeria can be divided into two main groups: food crops, produced for home consumption, and export products. Prior to the civil war, the country was self-sufficient in food, but imports of food increased substantially after 1973. Bread, made primarily from US wheat, replaced domestic crops as the cheapest staple food for much of the urban population. The most important food crops are yams and manioc (cassava) in the south and sorghum (Guinea corn) and millet in the north. In 1999, production of yams was 25.1 million tons (67% of world production); manioc, 33.1 million tons (highest in the world and 20% of global production); cocoyams (taro), 3.3 million tons; and sweet potatoes, 1,560,000 tons. The 1999 production estimates for major crops were as follows (in thousands of tons): sorghum, 8,443; millet, 5,457; corn, 5,777; rice, 3,399; peanuts, 2,783; palm oil, 842; sugar cane, 675; palm kernel, 565; soybeans, 405; and cotton lint, 57. Many fruits and vegetables are also grown by Nigerian farmers.

    
Although cocoa is the leading non-oil foreign exchange earner, growth in the sector has been slow since the abolition of the Nigerian Cocoa Board. The dominance of smallholders in the cocoa sector and the lack of farm labor due to urbanization holds back production. Nigeria has the potential to produce over 300,000 tons of cocoa beans per year, but production only amounted to 145,000 tons in 1999. Rubber is the second-largest non-oil foreign exchange earner. Despite favorable prices, production has fallen from 155,000 tons in 1991 to 90,000 tons in 1999. Low yield, aging trees, and lack of proper equipment have inhibited production.

    
Agricultural exports (including manufactured food and agricultural products) decreased in quantity after 1970, partly because of the discouraging effect of low world prices. In 1979, the importing of many foods was banned, including fresh milk, vegetables, roots and tubers, fruits, and poultry. The exporting of milk, sugar, flour, and hides and skins was also banned. During 1985–87, imports of wheat, corn, rice, and vegetable oil were banned as declining income from oil encouraged greater attention to the agricultural sector. In 1986, government marketing boards were closed down, and a free market in all agricultural products was established. In 2001, agricultural exports totaled $323.5 million. Exports of cocoa beans that year totaled $210.4 million; cotton lint, $21 million. NEWS FROM AROUND THE WORLD.

BENUE GOVT TASK STAKEHOLDERS ON AGRICULTURE.

Benue State Governor, Samuel Ortom has called on all stakeholders in the agriculture sector to rise up and embrace his administration’s policy for an agricultural revolution and work in with government to take Benue to her pride of place as a leading agricultural producing state.

He made the call yesterday at the Aper Aku Stadium while declaring open the Benue Farmers’ Summit themed “Climate is Changing, Food and Agriculture Must Change Too”.

Represented by his Deputy, Engr. Benson Abounu, the Governor noted that through the proactive steps taken by his administration the state witnessed bumper harvest in 2016.

He listed the initiatives as collaboration with the Central Bank of Nigeria on the Anchor Borrowers Programme as well as partnership with the Bank of Industries as well as Bank of Agriculture for the provision of loans, farm inputs, and training of Benue farmers in rice and soya beans production.

According to the Governor, his administration has adopted robust approaches that would guarantee sustainability and resilience adding that an Agricultural Policy and Strategic Plan of Action covering 2017  to 2020 had been drafted awaiting validation by stakeholders before finally being released.
He said the summit was part of a wake-up call on all stakeholders in the agriculture sector to rise up and embrace his administration’s policy for an agricultural revolution and work in with government to take Benue to her pride of place as a leading agricultural producing state.

Earlier in his welcome address, Benue State Commissioner for Agriculture and Natural Resources, Mr. James Anbua, disclosed that the state government was working towards providing tractors for farmers in the state as well as embarking on massive land clearing among others as a way of encouraging mechanised farming.

High points of the summit was the inspection of farm produce displayed by all the 23 local governments of the state by the Deputy Governor, Engr. Benson Abounu. BY BENUE.COM.NG.

GRAINS-WHEAT JUMPS 2 PCT TO HIT SIX-WEEK HIGH ON FROST DAMAGE FEARS

* Cold weather threatens U.S. production
* Corn firms 1 percent
* Soybeans rally more than 0.5 percent
By Colin Packham
SYDNEY, May 1 (Reuters) - U.S. wheat futures rose more than 2 percent on Monday as frost across key

growing regions stoked fears of widespread production losses, pushing prices to a six-week high.
Corn rose more than 1 percent, drawing support from wheat, while soybeans rallied more than 0.5
percent.

   The most active wheat futures on the Chicago Board Of Trade rose as much as 2.5 percent to $4.43
a bushel, the highest since March 10. Wheat was trading up 2.3 percent at $4.42-1/4 a bushel by 0442 GMT,
after rising 0.2 percent on Friday.

   "With frost through Kansas, Colorado and even stretching through to Oklahoma, the market is concerned

about how much of the crop has been damaged," said Andrew Woodhouse, grains analyst at Advance Trading
Australasia.

   Frost threatens rapidly maturing hard red winter wheat crops, with Kansas the biggest producing state
in the United States.
In Kansas, the largest U.S. wheat state, 82 percent of the winter wheat had reached the "jointing"
stage of growth by April 23, and 25 percent of the crop was in the "heading" stage, the U.S. Department of
Agriculture said, leaving it vulnerable to freeze injury.
The cold weather in the U.S. adds to a spate of unfavourable weather that threatens to curtail global
production.
Farming agency FranceAgriMer on Friday reported a sharp decline in crop conditions for wheat, with the
amount of soft wheat rated good/excellent falling to 78 percent from 85 percent in the week to April 24.
The most active corn futures rose 1.2 percent to $3.70-3/4 a bushel, having closed down 0.8
percent in the previous session.
The most active soybean futures rose 0.84 percent to $9.64-1/4 a bushel, having closed down 0.1
percent on Friday.
Analysts noted some support for corn amid recent delays to plantings, which may force some farmers to
switch to soybeans.
While rains fell across the Midwest, forecasts call for drier weather for much of the week.
Grains prices at 0442 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 442.25 10.00 +2.31% +2.55% 438.47 65
CBOT corn 370.75 4.25 +1.16% +0.41% 368.16 50
CBOT soy 964.25 8.00 +0.84% +0.73% 968.24 47
CBOT rice 9.54 $0.12 +1.22% +1.11% $10.13 24
WTI crude 49.24 -$0.09 -0.18% +0.55% $50.21 35
Currencies
Euro/dlr $1.089 $0.000 -0.04% +0.17%
USD/AUD 0.7481 0.000 -0.04% +0.27%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential. BY COLIN PACKHAM.

CHALLENGES FACING BEGINNING FARMERS.

The dynamic winds of agriculture drive producers in divergent directions in a single-minded pursuit of growing opportunities. New crops – industrial hemp, low-linolenic oil soybeans, vineyards, and wind energy – beckon from the horizon. Old crops – corn and soybeans – test new geographic boundaries, and many farmers experiment with double-crop field peas and cover crops. Yet, the greatest challenge for agriculture today may be nurturing its fragile crop of beginning farmers.

Between 2007 and 2012, the number of beginning farmers identifying themselves as primary operators grew by about 1,000. Of principal operators on family operations, 18% started in the last 10 years, based on the 2012 Ag Census.

Barriers to entry are predictable. Access to capital for operating equipment and crop inputs poses significant headwinds. The average U.S. farm acre sells for over $4,100; it’s double that amount in Midwest states. Although record commodity prices have declined, elevated land values, cash rents, and crop inputs contribute to balance-sheet turbulence.

“Younger and beginning cash grain farmers are very vulnerable to the current downturn in the ag economy,” says Michael Boehlje, Purdue University ag economist. “If they’ve been aggressive in cash-renting land, they may run out of cash and liquidity, and confront debt service problems.”
Frayne Olson, North Dakota State University, is working with Ryan Larsen to run the financial numbers of a cross-section of North Dakota farmers. They’re using the results to update financial stress test models this fall for ag bankers.

“The impact is most heavy on those least able to weather the storm,” Olson says. “Those who are younger and have entered agriculture in the last several years have had to compete for land, and they tend to have a higher cost structure. They have less equity and financial reserves. They’re canaries in a coal mine.”

Buffeted by high-pressure zones
Only 7.8% of farmers are under 35 years old; 5.4% of primary operators fall into that category. Virtually all of today’s young farmers are closely tied to established producers. Yet, they often suffer losses or earn only small profits as they launch their businesses. Most rely on off-farm jobs or custom work to supplement their on-farm incomes.

A 2011 National Young Farmers Coalition (NYFC) survey reinforced that lack of capital remains a real barrier. Those who start farming without help from family are even more vulnerable to economic downdrafts. High-value crops or direct-marketed products are a good fit, such as natural meats, certified organic produce and grains, or grass-based milk.

In 1964, only 4% of farmers had a college degree. By 2011, 25% had a four-year college degree (compared with 28% for nonfarmers). In 2014, an NYFC survey of 700 young farmers revealed another less obvious, but very real barrier, to entry: student loans. Respondents reported an average student loan debt of $35,000. A total of 53% were farming but admitted difficulty in making student loan payments. Another 30% weren’t pursuing farming because their earnings wouldn’t cover student loan payments. BY CHERYL TEVIS.

UK COMPANIES INVITED ON 5DAYS INVESTMENT TOUR OF GHANA.

THE UK Ghana Chamber of Commerce (UKGCC) will host a multi-sector business trip to Accra for British companies, investors, exporters, importers and SMEs, in October.

The five-day Ghana Investment Tour (GIT) will focus on showcasing collaborative and investment opportunities in Ghana’s technology, tourism and agriculture sectors, and provide a platform for UK firms, SMEs and investors to communicate with key regulators, potential local partners, and leading private sector players in the country.

The UKGCC, officially launching in Accra today (Sept 1), is set up to facilitate and promote trade and commercial relations between the UK and Ghana, and act as the voice for British businesses looking to access and engage with the Ghanaian market, whilst providing assistance to Ghanaian companies investing in the UK.

UKGCC’s CEO Tony Burkson, based in Accra, said: “Ghana remains an exciting prospect for British companies due to its historic trading relationships with the UK. British expertise and innovation is highly sought after in Ghana and the wider West Africa region.”

He said the tour was “an opportunity for British companies to meet decision makers, regulators and potential business partners in Ghana”.

The UK is one of the largest foreign investors in Ghana, and several British brands already operate in the West African country, including Barclays, Standard Chartered, Vodafone, Tullow, Blue Skies, British Airways, G4S, Prudential, GlaxoSmithKline, and Diageo. Ghana is also a favoured choice for SME’s making their first steps exporting into Africa, with benefits such as skilled and trainable labour, immediate access to all the Economic Community of West African States (ECOWAS) markets, and a large consumer base with a growing middle class.

GIT aims to give new, business-focused entrants to Ghana a packaged opportunity to research and act-upon their business and investment interests in the country, alongside a friendly team of UK and Ghanaian experts and professionals.

The tour, which will run from October 17-21, is supported by the Development of International Trade (DIT) in Ghana (formerly UKTI) and is organised in partnership with AB2020, a British company that connects and highlights investors, businesses, projects and entrepreneurs operating in Ghana, and sub-Saharan Africa.

AB2020 Creator and UK-born Ghanaian Akosua Annobil, based in London, added: “From traditional investors and angel networks, to tech start-ups and the Africa Diaspora, we’ve seen a healthy rise in appetite to do business in Ghana over the past year. However, we’ve also found that due to misconceptions, lack of connections, and perhaps a limited understanding of the diverse opportunities and cultures in the country, many are unsure of how to start and where to navigate.

“As a UK-based company with a Ghana focus we aim to ease those anxieties, which is why we’re excited to be partnering with the UKGCC on a series of Ghana Investment Tours for the British business community in October this year, and in to 2017.”

Ghana is one of the largest economies within ECOWAS, and in terms of investment is currently ranked 70th out of 189 countries in the latest World Bank’s Doing Business Rankings, placing the country as the fifth most favourable place to conduct business in Africa after Mauritius (28th), South Africa (43rd), Rwanda (46th), Tunisia (60th), and the first in West Africa above countries such as Cote d’Ivoire (147th), Togo (149th), Benin (151st), Burkina Faso (167th) and Nigeria (170th).

With a shared history and cultural links, Ghana and the UK have a strong bilateral trade relationship, strengthened by a steady stream of ministerial and diplomatic visits from high profile figures in recent years, including HRH Prince Edward and Adam Afriyie, the UK Prime Minister’s Trade Envoy to Ghana. NEWS FROM AROUND THE WORLD.

THE CARIBBEAN IS RUNNING OUT OF COCONUT.

ARE WE running out of coconuts?

At the worst possible time, the Caribbean is running short of one of its most emblematic products.
Rich-world consumers have never been keener on the coconut. Starbucks wants the tropical fruit’s milk for lattes, Rihanna promotes its water as a trendy sports drink, and the price of coconut oil has jumped more than 50 per cent in the past year.


The Caribbean is practically synonymous with the coconut, so its farmers should be cashing in. For a bunch of reasons, they aren’t. Storms, droughts and the Lethal Yellowing disease, spread by plant-hopping insects, have wiped out entire farms; growers have failed to invest in new trees, or fertilisers to improve yields. Caribbean plantations have shrunk by about 17 per cent since 1994, according to the UN’s Food and Agriculture Organisation.


“It’s fair to say that at this pace, the Caribbean is running out of coconut,” said Compton Paul, coordinator of a regional coconut program at the Trinidad-based Caribbean Agricultural Research and Development Institute.


It’s a problem that nobody saw coming. Two decades ago, international demand was waning amid medical warnings that tropical oils could raise levels of artery-clogging cholesterol.


Coconuts sold for next to nothing in the Caribbean, where they’ve grown for five centuries since being introduced by Europeans traveling from the Indian Ocean. Often, they were just left to rot on their trees. NEWS FROM AROUND THE WORLD.

TOURISM AND AGRICULTURE WILL HELP JAMAICA, SAYS MINISTER.

JAMAICA’S TOURISM industry offers numerous possibilities for investment, according to Jamaica’s Minister of Tourism, Edmund Bartlett, who was speaking at a community meeting at the Jamaica High Commission in London recently.

“There are numerous possibilities. Tourism has that ability to offer opportunities for wealth creation and entrepreneurship”, Minister Bartlett said adding that the government believes that the private initiative must lead the economy.

“We are encouraging you to invest, because there will be no humungous taxation. There will be no restrictions on the repatriation of profits.

Tourism is an industry in the sense that it’s a production process. It’s a series of moving parts that must converge seamlessly to provide an experience,” he said.

Minister Bartlett highlighted agriculture as one sector in which tourism has the potential to create tremendous growth. He noted that fresh fruits and vegetables have created a demand that is worth $75 billion.

According to the Tourism Minister , with some 88 per cent of all visitors describing good food as an important part of their tourism experience, there is great scope for investment in this area to not only to open new restaurants to also to develop great visitor experiences.

Mr. Bartlett said that agriculture is on the rise and that this sector was set to become the “star performer” of the Jamaican economy. He said the growth in agriculture will continue because of the growth in the tourism sector because; “we are eating more (local produce) than ever before”.

Mr. Bartlett noted that, Agriculture along with Marketing and Services, were three of the pillars of the tourism sector.

The Minister also said that there were opportunities to go into new markets by cooperating with other nearby destinations who might ordinarily be competitors such as Mexico, Cuba and the Dominican Republic.

Mr Bartlett noted that despite the emerging markets of China and India, Jamaica’s tourism still depended heavily on American visitors.

“For us Jamaicans, because of proximity, the US has to be the essential area of consideration,” Mr Bartlett said. “Last year, 63% of stopover arrivals came from the US alone. American visitors are only an hour and a half away in Miami, and just two hours away in New York.”

The Minister also stressed the need to tackle the scourge of crime in Jamaica, and stated that the government was making national security the top priority in the National Budget.

During a question and answer session which followed his presentation, the minister fielded many questions from the audience which included the need for road repairs in some parishes and the acquisition of public space for cemeteries, especially in the south western part of the island. Mr Bartlett promised that these would get attention up on his return. NEWS FROM AROUND THE WORLD.