Preventing a Recall: Protecting Your Food Business Workshop

Preventing a Recall: Protecting Your Food Business, January 26, Morehead City--this workshop is designed for small food entrepreneurs and food producers who sell directly to the public, seafood processors and retailers, meat handlers producing and selling meat products, individuals interested in developing food recall plans to protect their businesses, and those who want to expand market outreach and are required to obtain liability insurance to enter new markets. For more information, www.ncagr.gov/markets/agbizmarketing.htm

Sustainable Agriculture Workshop with Joel Salatin

Interested in organic gardening or pursuing a career in sustainable agriculture? The Western Piedmont Community College Sustainable Agriculture Program and Burke County Cooperative Extension will host a workshop entitled "Entrepreneur's Guide to Success in Sustainable Agriculture with Joel Salatin" Events will include a panel discussion, farm projects tour, exhibits by area organizations involved in sustainable agriculture and presentation by Joel Salatin.

Salatin is the owner/operator of Polyface Farms in the Shenandoah Valley of Virginia. A third generation alternative farmer, Salatin carries his message of environmentally sustainable farming practices to audiences nationwide. Salatin's farming methods have been profiled in the film, Food, Inc. and in the book The Omnivore's Dilemma by investigative journalist Michael Pollan. Salatin has written several books about farming including You Can Farm: The Entrepreneur's Guide to Start and Succeed in a Farming Enterprise.

This free workshop will be held on Monday, November 16 from 1-5pm at the Burke County Cooperative Extension office, 130 Ammons Drive, Morganton. Registration is from noon to 1pm., and space is limited, so be sure to arrive early. For more information about this event or if you or your organization would like to have a free exhibitor's table, please contact Chip Hope at chope@wpcc.edu, 828-448-3554 or Donna Teasley at donna_teasley@ncsu.edu, 828-439-4460.

USDA Announces Implementation of Livestock Disaster Assistance Programs

Beginning September 14, 2009 Producers may sign up to participate in these programs.

Agriculture Secretary Tom Vilsack today announced that producers may begin applying for benefits under the provisions of the Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP) and the Livestock Forage Disaster Program (LFP). These permanent disaster programs, authorized in the 2008 Farm Bill, replace previous ad-hoc disaster assistance programs and are funded through the Agricultural Disaster Relief Trust Fund.

"President Obama and I are committed to meeting the needs of those producers who have suffered devastating losses from natural disasters," said Vilsack. "These programs ensure that producers who have suffered agriculture losses receive the critical disaster assistance needed to remain financially solvent and help them continue on in their operations."

LFP provides payments to eligible livestock producers who have suffered livestock grazing losses due to qualifying drought or fire. For drought, the losses must have occurred on land that is native or improved pastureland with permanent vegetative cover or a crop planted specifically for grazing for covered livestock due to a qualifying drought during the normal grazing period for the specific type of grazing land in the county. For fire, LFP provides payments to eligible livestock producers that have suffered grazing losses on rangeland managed by a federal agency if the eligible livestock producer is prohibited by the federal agency from grazing the normal permitted livestock on the managed rangeland due to a qualifying fire.

Eligible livestock under LFP include beef cattle, alpacas, buffalo, beefalo, dairy cattle, deer, elk, emus, equine, goats, llamas, poultry, reindeer, sheep and swine. For losses due to drought, qualifying drought ratings are determined using the U.S. Drought Monitor located at www.drought.unl.edu/dm/monitor.html.

ELAP provides emergency assistance to eligible producers of livestock, honeybees and farm-raised fish that have losses due to disease, adverse weather or other conditions, including losses due to blizzards and wildfires. ELAP assistance is for losses not covered under other Supplemental Agricultural Disaster Assistance programs established by the 2008 Farm Bill, specifically LFP, the Livestock Indemnity Program (LIP) and the Supplemental Revenue Assistance Payments Program (SURE). ELAP is being implemented to fill in the gap and provide assistance under other conditions determined to be appropriate.

For both programs, producers must have suffered losses that occurred on or after Jan. 1, 2008, and before Oct. 1, 2011. There is a total $100,000 limitation per crop year that applies to payments received under ELAP, LFP, LIP or SURE. For the 2008 crop year, the $100,000 limitation is per "person" as defined and determined under payment limitation rules in effect for 2008. For crop years 2009 through 2011, the $100,000 limitation applies to payments received, both directly and indirectly, by a person or legal entity. Furthermore, individuals or entities are ineligible for payment under ELAP or LFP for 2008 if their average Adjusted Gross Income for 2005, 2006 and 2007 exceeds $2.5 million. For 2009 through 2011, an average adjusted gross nonfarm income limitation of $500,000 applies and is determined using the three taxable years that precede the most immediately preceding complete taxable year (for 2009, the applicable years are 2005, 2006 and 2007).

For more information or to apply for ELAP or LFP and other USDA Farm Service Agency disaster assistance programs, please visit your FSA county office orwww.fsa.usda.gov.

USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW, Washington, DC 20250-9410 or call (800) 795-3272 (voice), or (202) 720-6382 (TDD).

2010 Western Piedmont Region Demonstration Grant Program

The Tobacco Communities Reinvestment Fund aims to assist farmers and rural communities to develop new sources of agricultural income through provision of cost-share grants. The Reinvestment Fund will make two types of demonstration awards: Producer Grant Awards up to $10,000 for individuals and Community Grants Awards up to $30,000 for collaborative farmer projects.

The Fund will make cost-share demonstration grants to farmers, farm organizations, and community groups in the Western Piedmont Region of North Carolina. This includes: Alexander, Alleghany, Anson, Ashe, Burke, Cabarrus, Caldwell, Catawba, Cleveland, Davidson, Forsyth, Gaston, Guildford, Iredell, Lincoln, Mecklenburg, Rowan, Rutherford, Stanly, Stokes, Surry, Union, Wilkes, Yadkin, Davie, and Rockingham.

DEADLINE FOR APPLICATION is January 13, 2010.

Tight margins for most commodity crops and changing farm programs provide new challenges for North Carolina farmers. The purpose of the Reinvestment Fund is to help farmers to develop enterprises that allow them to earn more for their products through innovative production, processing, or marketing approaches.

The Tobacco Communities Reinvestment Fund is supported by a grant from the North Carolina Tobacco Trust Fund Commission.

ELIGIBILITY

Qualifying PRODUCERS must be farmers, who are actively engaged in full or part-time farming in the Western Piedmont region. Priority is given to farmers who earned a significant portion of their income from tobacco at the time of the Master Settlement Agreement (1997-1998) and to projects that create an opportunity for a new generation of farmers.

Qualifying COMMUNITY GROUPS must include qualifying farmers from the Western Piedmont region, and farmers must be active in the leadership of the group. Groups of farmers, farm coops, farmer associations, churches, local business, civic organizations, or combination of these are eligible and encouraged to apply.

Eligible PROJECTS are those that: have a likelihood of generating new farm income; establish new markets for local products and services; develop new uses for greenhouses; add value to existing farm products by processing, packaging or marketing in a special way; make new use of tobacco facilities and equipment; maintain or create quality employment, including self-employment or opportunities for home-based businesses; make optimal use of on-farm and natural resources.

High Priority will be given to projects that are innovative and demonstrate a new direction or opportunity for farmers in North Carolina.

IMPORTANT DATES!

Early Bird Deadline - December 18, 2009
Application Deadline -January 13, 2010
Award Notification - March 9, 2010
Interim Report Due - TBA
Final Report Due - TBA
Projects Completed - TBA

APPLICATION & DETAILED INFORMATION

http://www.ncfarmgrants.org

Jason Roehrig

jason@rafiusa.org

919-542-1396

Mountain Farmers Eligible for Funds to Help Diversify: WNC AgOptions Grant

WNC Agricultural Options will award approximately 45 farmers in 17 counties and the Cherokee Indian reservation $3,000, $6,000, and $9,000. These funds will be used to help farmers to diversify or expand their operations.

Interested applicants should see the agricultural agents at their local Extension Centers by November 23, and can visit www.wncagoptions.org to download an application. Projects should increase the sale of farm products and lead to the long-term sustainability of the farm business. The postmark deadline for applications is January 8.

WNC Ag Options is managed by the NC Cooperative Extension Centers in the West District. The program works with producers who demonstrate ways to increase farm income to other transitioning farmers, particularly tobacco growers. WNC Ag Options works in partnership with RAFI-USA's Tobacco Communities Reinvestment Fund, and the NC Tobacco Trust Fund Commission sponsors the program.

"The partnership we have with the WNC AgOptions program is very valuable to us," said William Upchurch, Executive Director of the Tobacco Trust Fund commission. "Our experience has shown that participating farmers utilize these grants for innovative, resourceful and profitable enterprises that can make a huge impact on their farming operation."

Recent recipients are transitioning from commercial to direct markets, extending their growing seasons, or developing value-added processing systems so that they will have a product to sell year-round. With a grant they received in spring 2009, Tammie and Mike Edwards of Yancey County are building a germination chamber in a greenhouse they previously used in tobacco production to start plants for their potted flower operation. Saving them the cost of buying their own plugs, "...could make a difference if we stay in business," Tammie Edwards said.

Skipper Russel of Haywood County, a 2005 and 2009 recipient, and Kaleb Rathbone, a 2006 recipient, both have the infrastructure in place to open up markets with Ingles grocery stores this year, in large part due to the WNC AgOptions grants. Russel, who purchased a refrigeration truck, sells lettuce to Ingles, and Rathbone, who installed irrigation, sells strawberries.

Other WNC AgOptions recipients use the funds to offset the financial risk of trying untested, unique endeavors, such as hops production. "Just applying for the grant was about the best thing I could have done," said Van Burnette of Buncombe County, who started "Hop 'N Blueberry" on his family's seventh generation farm. "I learned so much about the cost, timeline, and the activities, and narrowed down what I wanted to do with the farm."

Established in 2003, WNC AgOptions is entering its sixth funding cycle. Members of the WNC AgOptions steering committee include: representatives from NC Cooperative Extension Service, NC Department of Agriculture and Consumer Services-Marketing Division, HandMade in America, Appalachian Sustainable Agricultural Project, former WNC AgOptions recipients and other leaders in agribusiness.

2009 Farm Expo in Laurel Springs, NC

The 2009 Farm Expo is scheduled for August 29, 2009 at 1:00 pm at the Upper Mountain Research Station in Laurel Springs, North Carolina. Registration begins at 12:30 pm. The cost is $10/person and children 12 and under are FREE. Please RSVP to the Ashe or Alleghany County Extension Office by August 17 in order to receive your dinner ticket.

The 2009 Farm Expo will highlight research projects at the Upper Mountain Research Station, farm diversification opportunities, and have vendors showing off new farm equipment, conservation opportunities, farm related funding, area banks, and many other for profit and nonprofit agricultural services.

There will be over a dozen speakers from 3 universities and 3 farm tours lined up for the day. The Ashe and Alleghany Cattlemen's Association will be grilling fresh roast beef for dinner and North Carolina Department of Agriculture will be providing a "Taste of North Carolina" exhibit with strawberries and other fresh farm produce to highlight the abundance and diversity of crops grown in North Carolina.

Also, a free junk swap will be held from 1:00 pm until dark if you have any used equipment that you are look for or a home for some you no longer need.

If you are interested in participating in the junk swap, being a vendor, or if you have questions, please call the North Carolina Cooperative Extension-Ashe County Center @ 336.846.5850 or Alleghany County Center @ 336.372.5597.

Money Available for Farmers: Matching Funds Provide Dollars for Marketing Local Food

Appalachian Sustainable Agriculture Project (ASAP) is making matching funds available to farmers through a program funded by the North Carolina Tobacco Trust Fund Commission. Farmers can apply for matching funds that will enable them to conduct promotions and develop materials that identify their products as local. ASAP will offr approximately $50,000 total to Southern Appalachian farmers to help them market and promote local foods.

Individual farmers can apply to receive up to $1500 of assistance. Farmers tailgate markets are eligible for up to $2000. As much as $5000 is available for groups of farmers.

Matching funds mean that ASAP will pay up to half of accepted applicants' costs for promotions and marketing materials. Current and former tobacco farmers can receive up to 75% of these marketing costs.

Funds can go towards advertisements in print, on the radio, or in other media; product labeling; graphic design; materials such as posters and business cards; signs; and more.

"Southern Appalachian farmers produce a wealth of high quality foods, and there's a growing demand for locally grown food. Shoppers and farmers just need help connecting," says Charlie Jackson, Executive Director of ASAP. "Matching funds will allow farmers to form these connections through marketing and strengthen our local food system." Good marketing helps authentically local food stand out and compete with other products. Furthermore, providing matching funds encourages local make marketing plans, which are much needed to succeed in the current economic climate.

To apply for funds, farmers must be Appalachian Grown certified. The promotion must reach the public and support farmers within one or more of these Appalachian Grown Counties in North Carolina: Alleghany, Ashe, Avery, Buncombe, Burke, Caldwell, Cherokee, Clay, Graham, Haywood, Henderson, Jackson, McDowell, Macon, Madison, Mitchell, Polk, Rutherford, Swain, Transylvania, Watauga, Wilkes, and Yancey. If possible, approved applicants should incorporate the Appalachian Grown logo in the materials for which they receive funding. Appalachian Grown is a branding program that identifies products from family farms in the Southern Appalachians. ASAP developed the program to preserve the values associated with truly local food. Getting Appalachian Grown certified is a simple process and it's free.

For information about Appalachian Grown certification and the matching funds application, visit www.asapconnections.org or contact Megan Ray at megan@asapconnections.com.

Farm to Fork: Regional Food Systems

Building a Sustainable Local Food Economy in North Carolina: From Farm-to-Fork

We are pleased to announce that over the next year, the Center for Environmental Farming Systems (CEFS) has been funded to reach out across the state and together with our partners ask: What will it take to build a sustainable local food economy in North Carolina?

From the mountains to the coast, various organizations are promoting and implementing exciting initiatives to support our state and communities through sustainable local agriculture. Examples include new farmer's markets, local food policy councils, comprehensive county- or region-based food initiatives, farm incubator programs, farm and/or garden youth educational programs, health and nutrition projects focused on local sustainable foods, procurement initiatives by large retail and institutional buyers and schools, and much more.

If each North Carolinian spent $0.25/day on local food (just 2.5% of the $3,600 that we spend on average on food consumption per year), it would mean $792 million for the state's economy. That money circulates here in the state so has a multiplier effect, rather than going to a corporate headquarters in another state.

Other benefits of a sustainable local food economy in NC include economic development, job creation within farming and food sectors, preservation of open space, decreased use of fossil fuel and associated carbon emissions, preservation and protection of the natural environment, increased consumer access to fresh and nutritious foods, and greater food security for all North Carolinians.

Over the next year, CEFS and its partners will be gathering information from across food system sectors: conducting regional meetings, targeted issues discussions, interviews, and hosting a statewide summit on March 2 and 3, 2009. Our desired result is a Statewide Action Plan for Building the Local Food Economy with specific steps (short- and long-term) that policy makers, Universities, government agencies, environmental organizations, businesses, funding agencies, social activists, NGO s and citizens can take to make this happen.

A regional meeting is to be held in:
Asheville, NC: November 12, 1:30-4:30 pm at the NC Arboretum, 100 Frederick Law Olmsted Way.

The purpose of the regional meetings is to bring together those engaged in all aspects of the food system, to collect information and ideas that will the building blocks of discussion at the summitt and eventually the core components of the State Action Plan. We want to identify specific regional and local sustainable food systems model that are working and also regional challenges that can be addressed through policies, programs, and funding. These regional meetings will be facilitated listening sessions and provide important input into this process, so broad participation is encouraged.

The State Action Plan will:

1. describe key elements of our current food system and define key terms
2. identify the diversity of people, businesses, and organizations involved in and impacted by NC's food system;
3. highlight specific efforts and partnerships underway across our state and within different sectors of the food system to achieve greater "localness" in our food system; and
4. identify opportunities for action, and propose priorities, both in the short- and long-term, that will enable us to make progress toward a shared goal.

Please share this information with others who may be interested in Farm to Fork.

CEFS website

Tax Tips for Your 2007 Returns

I thought that it would be appropriate that my first blog for 2008 be a topic that we all love….TAXES! Annette Dunlap, MBA, with NC State University provided these tax tips for agricultural producers. Enjoy!

For explanations, or a more comprehensive list, contact your CPA or tax advisor, or check out the Internal Revenue Service’s web site (www.irs.gov), or the NC Department of Revenue web site (www.ncdor.com).

Optional Standard Mileage Rate. The rate is 48.5 cents per mile for 2007, and increases to 50.5 cents per mile in 2008. The rate for medical mileage is 20 cents per mile (up from 18 cents per mile in 2006), and the charitable mileage rate remains at 14 cents per mile, as it was in 2006.

Depreciation Methods. For property placed in service, farmers must use one of the following depreciation methods:

(1) The 150 percent declining balance method over the GDS (General Depreciation System) recovery period, switching to the straight line method when that method yields a greater deduction.

(2) The straight line method over the GDS recovery period.

(3) The 150 percent declining balance method over fixed ADS (Alternative Depreciation System) recovery periods, switching to the straight line method when that method provides a greater deduction.

(4) The straight line method over fixed ADS recovery periods.

Single-Purpose Agricultural Structures. The recovery period for single-purpose agricultural structures is 10 years. Greenhouses that have an area set aside for retail sale are considered multi-purpose agricultural structures.

Deductions for Meals. Beginning in 1998, 100 percent of the cost of business meals for employees is deductible if meals are at and for the convenience of the employer, no
longer limited to 50%.

Business Trip Expenses. Beginning January 1, 1994, business trip expenses for a taxpayers’ spouse, dependents or other individuals cannot be deducted unless those individuals are bona fide employees traveling with the taxpayer for a business purpose.

New Contribution Rules. Beginning in 2007, individuals who give separate cash contributions (gifts) of any amount are required to obtain a receipt from the organization receiving the donation. This documentation must be in writing and must be contained in the taxpayer’s file before the filing of 2007 tax returns.

Estimated Tax Payments. To avoid potential penalties, taxpayers with a 2007 adjusted gross income (AGI) of $150,000 or less should make estimated tax payments of withholdings equal to their 2006 taxes, or make prepayments equal to 90 percent of their 2006 taxes. If taxpayers’ 2007 AGI exceeded $150,000, they must pay a sum equal to 110 percent of their 2006 tax or 90 percent of their current year’s return. Similarly, if 2007 income is 40% higher than 2006, taxpayers must follow these estimated tax guidelines. Payments are due by March 1, 2008 with the tax return if no estimated tax payments were made for 2007.

Self-employed health insurance deduction. The deduction for health insurance expenses of self-employed individuals and their spouses and dependents is 100% in 2007.

Qualified long-term care insurance. (Self-employed) A qualified long-term care insurance contract will generally be treated as an accident and health insurance contract. The deduction for 100 percent of health insurance expenses of self-employed individuals applies to long-term care insurance premiums.

NORTH CAROLINA TAX CREDIT POINTERS

Property Taxes Paid on Farm Machinery. North Carolina allows a credit of up to $1,000 for the amount of property taxes paid on farm machinery by an individual farmer, general partners or an “S” corporation engaged in the business of farming. NOTE: These and other credits can be missed; however, they are now listed specifically in the North Carolina tax instruction booklet. Credits include: Gleaning credit, and a business credit to stimulate economic growth in tiered counties.