Older farmers face tough times

With Helena Bottemiller Evich, Catherine Boudreau and Pradnya Joshi

HEARING FROM THE NATION’S AGING FARMERS: Much of the ag news of late has chronicled young farmers and their struggles. In recent months, lawmakers introduced legislation to make sure young farmers have their voices heard in the next farm bill. Stone Barns hosted a conference in December for young farmers that touched on diversity and inclusivity. The American Farm Bureau Federation’s annual conference that starts Friday includes tracks and awards for young farmers. And next month, the organization is hosting a conference catering exclusively to young farmers and ranchers, with perks like family play areas and nursing rooms.

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But that’s not an entirely accurate portrait of our farmers today who, for the most part, are at the end of their careers. A report released last year by the National Young Farmers Coalition showed that farmers over the age of 65 outnumber farmers under the age of 35 by 6 to 1. It has been a steadily growing trend: the 2014 USDA census of agriculture showed that the average age of the principal operator of the nation’s farms rose to 58.3 years in 2012, from 50.5 years in 1982.

Facing tough times: John K. Hansen, president of the Nebraska Farmers Union, an organization with 3,500 members, said that the past four harsh years in many ag sectors have forced farmers who never took out loans to assume huge debt loads. “It’s like the house is on fire and no firemen showing up. We are really struggling,” Hansen said. “I’ve talked to a bunch of farmers who told me they went from being debt free to being in a situation where they owe way more money than they ever thought they would owe again.”

How that is playing out: Hansen added that the Nebraska Rural Response Hotline has fielded more calls from farmers facing financial stress than at any other time since it launched in 1984. He said that at the group’s September conference, a 68-year-old farmer who lives modestly and has no children said he had recently filed for Chapter 13 bankruptcy because he could not keep his farm going. At a December meeting, a 70-year-old farmer talked about how his wife and his banker pepper him with the same questions about how he plans to survive.

'An eerie silence': Hansen said that although aging farmers may be less vocal about how much they are suffering, lawmakers should not assume they don’t need any assistance. “It’s this eerie silence. But the silence should not be taken to mean things are OK. It means a lot of folks have given up on waiting for remedy,” said Hansen. “Our guys no longer have any faith that Congress is going to do anything ... . They’re just trying to figure out the best way to get out.”

HAPPY WEDNESDAY, JAN. 3! Welcome back to Morning Ag where your host would love to hear from readers about how your crops and livestock are faring through this bitter cold snap. Got any other news tips? Please send them to chaughney@politico.com and @chaughney. Follow the team at @Morning_Ag.

HOW MILLENNIALS ARE UPENDING GROCERY HABITS: On a younger note, millennials, now the largest cohort of shoppers in the U.S., are continuing to make their mark on the ever-changing food landscape — in part by eating out more and gravitating toward prepared foods.

A new USDA Economic Research Service report finds that millennials — defined for purposes of the study as people born between 1981 and 1996 — are following the long-held trend of younger generations spending less on food that is prepared at home.

Pull-out stat: Millennials eat in a restaurant or a bar about 30 percent more often than consumers from any other generation, ERS found.

Leaning healthy: Although eating out tends to track with a less healthful diet, the report contends that millennials are showing some signs of seeking healthier and less processed foods. The data, however, revealed a mixed bag: As millennials see their incomes rise, for example, they devote more of their grocery budget to buying vegetables. Millennial shoppers also devote the smallest share of their food expenditures to grains and meat. But when they do buy food to eat at home, millennials spend proportionally more on prepared foods, pasta, and sugar/sweets than any other generation, ERS found.

Hot sauce in their bag: USDA researchers note that millennials place a lot of value on convenience and “experiential attributes.” To back up this point, they cite a 2015 ERS report that said millennials “also shop more frequently at gas stations; use same-day delivery services; and are more likely to buy organic food, hot sauce, energy drinks, and artisanal alcohol beverages.”

TRANSPORTATION’S RELATIONSHIP WITH NAFTA As the White House continues to threaten a pullout of what the president has called the worst trade deal in history, thousands of transportation jobs up and down the Mississippi River and across truck and rail networks are in jeopardy, Pro Trade’s Doug Palmer reports.

The ports story: Barges with tons of grain are shipped along the Mississippi. Much of the cargo is offloaded at the Port of South Louisiana, a massive complex that stretches over 54 miles between Baton Rouge and New Orleans. From there, ships take it around the world, including to nearby Mexico, which imported $3.6 billion of wheat, corn and other cereal grains from the United States last year.

“We’re actually the largest grain-exporting port in the United States,” Paul Aucoin, the port’s executive director, told Doug. “All the grain barges from the Midwestern states come down river to the Port of South Louisiana.”

The trucking story: A North American economy without NAFTA would snarl trucking and shipping patterns and upend supply chains that have created hundreds of thousands of jobs. The trucking sector's employment has increased to 1.47 million workers in 2017, from 1.18 million in 1994, the first year of NAFTA. Nearly two-thirds of U.S. NAFTA freight is carried by trucks, according to the Transportation Department.

The railroad story: Tearing up NAFTA would have a “huge” impact on railroads, said Tom Hamberger, president and CEO of the Association of American Railroads, employing one of Trump’s favorite words. “You can’t just uproot and unwind 25 years of investment,” he said.

Pros, read Doug’s full story here, and see this graphic by Pro DataPoint’s Taylor Thomas illustrating how the trucking and ports sectors rely on trade.

IOWA MANDATES DICAMBA TRAINING: Government officials in Iowa late last week mandated increased training on how to better apply the herbicide dicamba. According to the state’s website, all farmers and certified applicators must undergo training before using the product. The department is partnering with Iowa State University on developing the program.

“This past growing season showed how important it is that applicators closely follow all aspects of the product label when using dicamba products and the additional training requirements will hopefully help reduce off-site impact from the product," Mike Naig, Iowa deputy secretary of agriculture, said in a statement.

The announcement follows concern raised by federal agencies on the effects of dicamba’s use. In October, the EPA labeled dicamba a “restricted-use pesticide,” which allows only certified applicators or someone in the presence of a certified applicator to use it on fields.

In November, the EPA said damage from dicamba has been far more more extensive than had previously been reported. And many of the debates about its usage revolved around improper application. At a November presentation, EPA reported that the state of Iowa had reported 107 official dicamba related injury investigations through mid September.

ROW CROPS

GOP retirement wave continues with Shuster, Hatch: House Transportation Chairman Bill Shuster announced Tuesday that he would step down at the end of his term, joining the wave of GOP lawmakers to head for the exits. The Pennsylvania Republican said he planned to spend his final year pushing for an infrastructure bill, which has gained little momentum because Congress has yet to identify politically viable funding options. More from POLITICO’s Tanya Snyder, Elena Schneider and Jake Sherman.

Sen. Orrin Hatch (R-Utah), the longest serving GOP senator, also announced his retirement Tuesday, creating a potential opening for Mitt Romney. Details here.

— Hashing out the budget: Congressional leaders from both parties will meet with White House officials on Wednesday to haggle over the basics of a budget deal. It is the first of several key strategy sessions taking place in the coming days to avert a government shutdown, POLITICO’s Sarah Ferris and Jennifer Scholtes write.

— Fighting salmonella: The Food and Drug Administration said it would allow formic acid in poultry feed to fight salmonella. But unlike European regulations, which ban the use of formic acid in egg-laying chickens to avoid any residue in the eggs, the U.S. will allow it to be used in both egg-laying hens and broiler chickens. Yours truly reports here.

— Hard life on the third shift: A Bloomberg Businessweek article examines the harsh conditions faced by sanitation workers that race all night to hose down meatpacking plants. Many are immigrant workers who are employed by firms like Packers Sanitation Services.

— ICYMI, Nonpartisan CBO analyzes crop insurance cuts: The Congressional Budget Office in a report last month estimated the savings and impact of four proposals to change the federal crop insurance program, which is expected to cost taxpayers nearly $78 billion over a decade. In total, the four proposals would reduce spending by $32.7 billion over 10 years. Eliminating the controversial policy known as Harvest Price Option would save the most money — $19.2 billion over a decade — while prompting farmers to insure 2.5 million fewer acres (out of 300 million) and reduce the level of coverage on 20 million acres. Read more from DTN here.

— More meat: USDA predicts that in 2018, Americans will break a record set in 2004 for the most red meat and poultry eaten in a year. Food & Wine has more.

— A giant copycat: As consumers gravitate toward smaller, niche or locally made products, the global conglomerate Unilever has been following in the footsteps of upstart competitors by introducing “copycat” foods and other consumer goods, The Wall Street Journal reports.

— Sugary drinks are now more expensive in Seattle: The Emerald City’s 1.75 cents per ounce soda tax kicked in Jan. 1, and businesses there are still working out the kinks, KING 5 reports.

Revolving door: Jessica Bennett joins the Renewable Fuels Association as vice president of external affairs. She previously worked as director of renewable fuels for the National Corn Growers Association.

Matt Herrick, previously who worked at USAID and USDA, has joined the Rockefeller Foundation as its new managing director of communications..

THAT'S ALL FOR MA! See you again soon! In the meantime, drop your host and the rest of the team a line: cboudreau@politico.com and @ceboudreau; hbottemiller@politico.com and @hbottemiller; chaughney@politico.com and @chaughney; jlauinger@politico.com and @jmlauinger; and pjoshi@politico.com and @pjoshiny. You can also follow @POLITICOPro and @Morning_Ag on Twitter.