W.Va. Farmer-Food Bank Flap And Us & Them Remembers An Unlikely Friendship, This West Virginia Morning

On this West Virginia Morning, both of West Virginia’s major food banks purchase fresh produce from West Virginia farmers. But a farmer-food bank flap had some social media pages heated up – and demonstrated the value of a written contract. Randy Yohe has the story. 

On this West Virginia Morning, both of West Virginia’s major food banks purchase fresh produce from West Virginia farmers. But a farmer-food bank flap had some social media pages heated up – and demonstrated the value of a written contract. Randy Yohe has the story. 

Also, in this show, friendships that endure between people with very different values and beliefs can be a remarkable gift. In the next episode of Us & Them, host Trey Kay remembers his dear, albeit unlikely, friend Alice Moore who recently passed away. Kay talks about how their friendship taught him about relationships, politics and people.

West Virginia Morning is a production of West Virginia Public Broadcasting which is solely responsible for its content.

Support for our news bureaus comes from Shepherd University.

Caroline MacGregor is our assistant news director and produced this episode.

Listen to West Virginia Morning weekdays at 7:43 a.m. on WVPB Radio or subscribe to the podcast and never miss an episode. #WVMorning

Distress Grows For Ohio Valley Farmers As Trade Deals Stall

West Kentucky Farmer Barry Alexander doesn’t have an answer on when the Trump administration will reach a trade deal with China, now a year into tariffs that have hamstrung some Ohio Valley industries.

Alexander is optimistic these continued negotiations will be worth it, but his plan in the meantime lies in massive, silver storage bins on Cundiff Farms, the 13,000-acre operation he manages.

He pulls a lever, and out tumbles a downpour of pale yellow soybeans.

“These beans have been in here since Halloween day,” Alexander said. “The large bin on the right, that’s 350,000 bushels. The next-size bins down, that’s 180,000 bushels. To give reference, a thousand bushels is one semi-truck load.”

Credit Liam Niemeyer / Ohio Valley ReSource
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Ohio Valley ReSource
Soybeans at Cundiff Farms.

He’s been trying to hold onto about half of his soybean and corn bushels, waiting to see if he can sell for a better price before he’s forced to start planting again in early April.

Crop prices have crashed partly because of Chinese tariffs, and the losses have put a strain on some farmers he knows.

Credit Liam Niemeyer / Ohio Valley ReSource
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Ohio Valley ReSource
Massive, steel storage bins, half-full with grain, on Cundiff Farms in west Kentucky.

“There are farmers that have decided to retire because they didn’t want to work through these things now. We’re to that point,” Alexander said.

Alexander said he’s survived in part because his sprawling farm has resources to work with: eight full-time employees, two new $550,000 combines he traded up for, and the storage bins to help ride out bad crop prices.

“Our large structures are not cheap, but financially for our farming operation, they’re a necessity for us to do what we do,” Alexander said.

Farmers like Alexander are coping with losses from tariffs and a continuing trade war, and it’s not clear when it will end. A March 1 deadline for negotiations with China was delayed indefinitely by President Trump, and an agreement with Mexico and Canada that Trump signed in November has yet to be ratified by Congress. The retaliatory tariffs on U.S. crops and dairy remain, compounding problems caused by overproduction and low crop prices, and small farmers are suffering the most.

Credit Liam Niemeyer / Ohio Valley ReSource
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Ohio Valley ReSource
Barry Alexander, a lifelong west Kentucky farmer, in his small office.

Size Matters

“If you look at all the large farmers, these guys have the storage facilities to wait out bad prices,” Kent State University-Tuscarawas Agribusiness Professor Sankalp Sharma said. “For a lot of these small guys…they couldn’t actually store their commodity, they still had to deal with those lower prices.”

Sharma and others argue grain prices have been low for five years because farmers are overproducing, and tariffs are only making the situation worse.

“The United States soybean harvest this year in general was just crazy. There was a bumper crop, and prices were down because of that,” Sharma said. “This was just your classic demand and supply situation.”

Credit Alexandra Kanik / Ohio Valley ReSource
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Ohio Valley ReSource

Both Ohio and Kentucky set records for soybean harvests in 2018: 289 million bushels and 103 million bushels, respectively. This is up significantly compared to two decades ago, when Ohio harvested 162 million bushels and Kentucky harvested a little over 24 million bushels in 1999.

Farmers are also becoming more efficient than ever before — Ohio set records in 2018 for most corn and soybean bushels produced per acre.

Credit Alexandra Kanik / Ohio Valley ReSource
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Ohio Valley ReSource

Oversupply problems haven’t been limited to grains, though. Small dairy farmers are also dealing with excess supply and tariffs, with hundreds of cases of extra milk being dumped at Ohio Valley food banks.

Farms At Risk

Greg Gibson’s operation is small, but his family has made it work for decades. He milks 80 cows at his dairy farm in Bruceton Mills, West Virginia, and he took over the operation in 2002. The past year of tariffs hasn’t been easy.

“Everything’s down. Historically, if milk price is down you can sell some corn or you could sell some replacement animals are something,” Gibson said. “But nothing has a lot of value to sell right now, so it’s really hard to generate any additional revenue. And a lot of that is because of the trade problems we’re having.”

Like many Ohio Valley farmers, Gibson is receiving payments from the $12 billion in federal relief from the Market Facilitation Program intended to to help those who suffer losses from tariffs.

Credit Nicole Erwin / Ohio Valley ReSource
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Ohio Valley ReSource
Small farms are squeezed by the dairy crisis.

Gibson appreciates Trump’s efforts to renegotiate trade deals, and like Alexander, is cautiously hopeful about the prospects of new trade deals.

But he said he’s also disappointed in Trump because the payments are not nearly enough to recoup his losses. He says milk’s price has plummeted nearly a dollar per hundred pounds of milk sold and the payments only reimburse 12 cents of that.

“I would have rather him said ‘I got to do this. You’re going to take the hit. Sorry.’ Don’t promise me you’re going to take care of me and then don’t,” Gibson said.

Some commodity associations including the National Corn Growers Association and the National Milk Producers Federation have called on the Trump administration in past months to bolster what they call lackluster relief payments.

Credit Alexandra Kanik / Ohio Valley ReSource
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Ohio Valley ReSource

Gibson’s squeezed budget has had him extend paying off his farm loans and put off paying several repair bills. He’s also had to put up his 150-year-old family farm as collateral for his loans.

Farm lenders say Gibson’s situation isn’t unique right now. Senior Vice President of Agricultural Lending Mark Barker helps oversee lending for Farm Credit Mid-America, which serves most of Ohio and Kentucky.

“Are we doing things differently? Well, sure,” Barker said. “Because we have customers coming in now and telling us ‘I’m struggling at this point. I’m challenged.’”

Barker said while most people are making their loan payments right now, the rapidly increasing amount of debt farmers are taking on to deal with depressed prices is concerning, especially for smaller operations.

“It seems like the larger producers, you think about their equipment and everything else, they’ve got some added advantages,” Barker said. “It doesn’t mean the smaller producer is necessarily ‘out,’ but I do think they got more challenges in this current environment.”

U.S. Department of Agriculture economists predict nationwide farm debt will reach $263.7 billion in 2019, levels of debt not seen since the 1980s farm crisis, when thousands of farm families defaulted on their loans amidst a trade embargo with the Soviet Union and high loan interest rates.

New Farmers

Tom McConnell leads the Small Farm Center at West Virginia University’s Extension Service and tries to help small farms succeed, in a state that has the highest proportion of small farms in the nation. He’s lived through the 1980s farm crisis and saw many dairy and beef farmers lose their farms.

He said one solution for small farmers to withstand these depressed prices is to switch to crops that bring a higher value, like vegetables. But those can be more labor-intensive, and the transition can be difficult.

“If you’ve been in a family that has milked cows or grown row crops for three generations, and I suggest you grow three acres of sweet corn and five acres of snap beans, there will be some resistance to that,” McConnell said.

McConnell said it might take a new generation to redefine what a successful small farmer business model can look like.

One of those younger small farmers is Joseph Monroe, who moved from Indiana to central Kentucky to raise beef cattle and grow tomatoes and greens. Monroe believes a way forward for smaller farms is to find ways to work together to sell products and have a greater market impact.

“I think there needs to be some pioneers and some examples out there of how to draw up a contract to work together,” Monroe said. “I think we need to throw all the darts and see what hits.”

Ohio Valley Farmers, Electric Cooperatives Push Back On Trump’s Budget Cut Proposals

West Kentucky Soybean Farmer Jed Clark, like many Ohio Valley farmers, is in a tighter financial situation because tariffs from the trade war and market forces have depressed crop prices.

“We’ve had a collapse in our grain markets,” Clark said. “We’re seeing some of the lowest commodity prices for wheat we’ve seen in a long time.”

The Trump administration’s budget proposal for fiscal year 2020 would cut U.S. Department of Agriculture funding by 15 percent. That includes a proposal to reduce the amount of subsidies farmers receive to afford crop insurance, which can cost thousands of dollars depending on the crop. Farmers would have to pay for 52 percent of their crop insurance instead of 38 percent.

“Taking that subsidy away and having a ten percent increase [in insurance cost] over quite a few acres has to be quite a bit of money,” Clark said. “Anytime we start increasing and putting more burden on the family farms to do this, it hurts the family farms.”

USDA data show farmers in Ohio, Kentucky and West Virginia in 2018 received more than $240 million dollars total in crop insurance subsidies.

University of Kentucky Department of Agricultural Economics Dean Barry Barnett said the cut in crop insurance subsidies is surprising to him given Trump’s vocal support for farmers, but it isn’t anything new.

“This really isn’t a partisan thing,” Barnett said. “It’s really been more of a situation where administrations have been proposing these budget cuts for several years now, and Congressional appropriators have refused to go along with those proposed cuts.”

Trump proposed crop insurance subsidy cuts in his 2019 budget proposal, and President Barack Obama proposed similar cuts in 2016.

Also earmarked for elimination is the Rural Economic Development Loan and Grant Program, also known as REDLG. The program gives up to $300,000 grants to local utility companies that then use the funding to give loans to rural businesses and communities to help them expand.

Loan recipients then pay back the low-interest loans to the utility, which the utility can then use to give out more loans, what’s known as a “revolving loan fund.”

Midwest Electric Cooperative CEO Matt Berry in northwest Ohio said they’ve received three grants from REDLG over the past 20 years worth $750,000 dollars.

He said the money has helped jump-start businesses including a local brewery, an ice cream shop and a company that makes standing desks. He estimates more than 300 jobs have been created from funded projects and that the program is a “no-brainer.”

“I hope it’s just a lack of understanding on the administration’s part because they may be just looking at the initial cost and not the full impact of the program,” Berry said. “It’s a huge benefit.”

Berry said because this is just a proposal, he hopes Congress will reject the elimination later this year.

Trump Doubles Down On Trade War As Farmers Feel Pain From Tariffs

As President Donald Trump addressed farmers at a national conference Monday Ohio Valley agriculture leaders said they are standing by his effort to renegotiate trade deals. But some leaders cautioned that costly tariffs on farm products need to end soon.

President Trump doubled down on his fight for better trade deals during his speech to American Farm Bureau Federation members at their convention in New Orleans.

“We’re turning all of that around with fair trade deals that put American farmers, ranchers and in fact put America first,” Trump said.

Farm Bureau leaders said the organization is behind the president but expressed concern that continued tariffs on American farmers are taking a toll.

“If we had our way, we’d get a great resolution, and we’d have it tomorrow,” Ohio Farm Bureau spokesman Joe Cornely said. “So we’re reminding the administration that we need these problems resolved as quickly as possible.”

U.S. soybean exports to China normally bring in $14 billion a year but have plunged because of the tariffs. Trump administration officials plan to continue negotiations with China in early February.

Credit Nicole Erwin / Ohio Valley ReSource
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Ohio Valley ReSource
Soybean farmer Jacob Goodman watches prices for his crop drop.

American Soybean Association President Davie Stephens, a Kentucky farmer, said soybean farmers also want a quick resolution to the trade dispute. But Stephens says the situation has also helped Ohio Valley farmers realize they were too invested in China.

“It’s opened up soybean farmers’ eyes and farmers’ eyes in general,” he said. “We put all of our eggs in one basket, so to speak.”

Stephens said he hopes for a trade agreement before the Trump administration’s deadline in March when tariffs on $200 billion of Chinese goods increase from 10 percent to 25 percent.

In W.Va., Small Farmers Face Tough Odds as One Project Aims to Help

This story is part of an episode of Inside Appalachia about projects aimed at spurring job growth in Appalachia.

On a recent Monday morning, as the rising sun burns off the low-hanging fog and fishermen haul in their morning catches from the Greenbrier River, at Sprouting Farms, the day is well underway.

Produce has been harvested and safely stored in a giant refrigerator. Employees are packaging cherry tomatoes into plastic clamshells, activities you might find at any of the farms that dot the Greenbrier Valley.

But while the daily tasks are handled at this production-scale vegetable farm, the crux of Sprouting Farms’ mission goes beyond the fields at hand.  

Credit Brittany Patterson / WVPB
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WVPB
High tunnels can be rented for $30 per month at Sprouting Farms in Talcott, WV.

“Our goal is to not just make this site work, but the whole regional food system work, and we have lots of farmers and partners who are interested in making that happen,” says Sprouting Farms project Director Fritz Boettner.

In 2017, Sprouting Farms received a $1.5 million grant from the Appalachian Regional Commission. The project was an inaugural recipient of ARC’s POWER initiative, which provides federal dollars to coal-impacted communities. The goal is to diversity and help grow these economies.

Sprouting Farms aims to boost the reach of small-scale agriculture in the eastern and southern parts of West Virginia by training new farmers and providing inexpensive land and tools for budding agriculturalists. During the project’s first year, the team quickly realized to make local food production a bustling economy of scale in a state with challenging topography and a spread-out population, they needed to boost access to markets — everything from the more traditional farmer’s markets to the wholesale level, including getting more local food in restaurants and grocery stores.

“The demand is there. I’ve never really had that issue,” Boettner says. “It’s just how do we get supply and demand a lineup and how do we get the infrastructure in the middle to sort of pull it all together.”

Credit Brittany Patterson / WVPB
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WVPB
Tomatoes are just one of the many things grown at Sprouting Farms.

On a recent tour of the 83-acre farm, Boettner explains how Sprouting Farms is trying to break down barriers — physical, financial and market-based — so farmers can be successful in West Virginia.

Outside of the farm’s faded red barn, a row of white plastic covered greenhouses, or high tunnels, are clearly visible. Black plastic tarp is also used on some parts of the farm.

Credit Brittany Patterson / WVPB
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WVPB
The seed starting greenhouse is one tool available to renters at Sprouting Farms.

Some of the 30 greenhouses are used by Sprouting Farms itself, but others are rented by local farmers who may not have the space or ability to invest thousands of dollars into the equipment needed to farm in this way. 

One high tunnel immediately sticks out. An abundance of bright pink and yellow flowers seem to dance inside. Sunflowers peak out merrily from the back. This monthly renter is one of the farm’s first. Now in her second year,  renting offers the opportunity to grow a business without making costly upfront investments, Boettner says.   

“Here we’re not even talking about food,” he says. “She rents it and has a cut-flower business. She grows flowers for weddings and restaurants and things like that.”

Credit Brittany Patterson / WVPB
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WVPB
One renter at Sprouting Farms uses her high tunnel to run a cut flower business.

Renters pay $30 per month for a 30-by-100-foot high tunnel. That includes electricity and water. For a few dollars more, they can use the farm’s tools, including the tractor.

But what if you want to be a farmer, but don’t know how?

Training the Next Generation

Beckley resident Ruby Daniels came to Sprouting Farms in March to participate in the project’s apprenticeship program.

Daniels’ family history is steeped in farming. Her great-grandfather was a slave who came to West Virginia to cut coal out of the seams before that job was done by machines. After he was injured, the family ran an orchard and a restaurant in the area.

Daniels has a master’s degree in therapeutic herbalism, and owning her own farm has long been a dream, but she says she lacked some of the production planning expertise.

“I didn’t know how to figure out the numbers,” she says, standing in the 200-square-foot greenhouse she shares. “How do I figure out if I want to sell 20 pounds, how do I figure out how many plants do I need? This was a good program for that.”

Credit Brittany Patterson / WVPB
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WVPB
Daniels grows herbs, beans and other things in the high tunnel she shares.

Daniels makes herbal teas and tinctures with the herbs she grows and says Sprouting Farms has given her the tools she needs to expand.

“This is a good farm for teaching an apprentice because you see things,” she says. “And everybody does farming different.”

Sprouting Farms’ decision to both be a fully operational production farm and offer education program is intentional. Boettner says by running their own farm, the team can workshop the best ways to grow on a larger scale in West Virginia, which doesn’t have big swaths of flat land like the Midwest or California.

The farmers who rent or train here also benefit from having the staff and tools on site, he adds.

“One day I could say, ‘You know, rent two greenhouses and here’s an acre and you can make a living doing it,’” he says. “The hope would be one day that would be possible. Not only like, you can do that, but here’s exactly what you know, you could grow right now in order to do that and get an offer that assistance with business planning and so forth.”

Creating New Markets

Boettner is a West Virginia native and no stranger to farming. He grew up in Charleston, but spent a lot of time at his grandparent’s farm in Virginia. He says he always knew he wanted to be a farmer.

“I’m a West Virginian, and I don’t know — it’s like everybody always wants to come back, but opportunities aren’t flourishing,” he says. “And I also believe in trying to make things better than when I started.” 

Credit Brittany Patterson / WVPB
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WVPB
Sprouting Farms Director Fritz Boettner poses.

After spending some time in Colorado, Boettner did move back. He co-founded a consulting firm called Downstream Strategies. Clients began hiring him to look into different economic development opportunities for West Virginia. One that came up a lot was agriculture.

At some point he and his business partner decided to take the thought experiments to the fields.  Using a grant from the U.S. Department of Agriculture, they crafted a business plan. Then, they heard about the ARC grant.

“Right now we need to be that catalyst and I think we need to be some of those risk takers,” he says. “And to me, that’s what the investment of the ARC grant is, to try to build something that does not exist currently and it’s hard to do that.”

Marshall University’s Robert C Byrd Institute partnered with the project for the ARC grant. While it has helped launch Sprouting Farms, Boettner says there’s still a big obstacle before agriculture is a viable economy here.

“We know that here the markets are a challenge,” he says.  

West Virginia leads the nation in small farms. Of the more than 20,000 farms here, 97 percent of them are considered small and 93 percent are family-owned, according to the USDA. Most vegetable farmers in the state gross ring less than $50,000 a year, and once expenses are accounted for, it’s hardly a good living. Selling more produce, or higher-value produce, to restaurants or grocery stores, could help.

That’s why Sprouting Farms started a food hub, Greenbrier Valley Grown. Food hubs are a centralized location where farmers can bring their food for processing and to go to market. They become the middleman. Farmers tell the hub what they have to sell. The hub aggregates it and delivers it to buyers. A restaurant might be getting squash from four different farms, but it’s delivered by just one entity: The hub.

Credit Brittany Patterson / WVPB
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WVPB
The refrigerated truck owned by the Greenbrier Valley Grown food hub is used to transport food from the eastern part of the state to customers in Charleston, including at the Capitol Market.

Todd Schmidt, an associate professor at Cornell University who studies agribusiness development in rural communities, says food hubs are growing in popularity across the country as more restaurants, grocery stores and other institutions seek more local food, because increasingly their customers ask for it.

“The market access issue, particularly in thinking about collaborative marketing operations, cooperatives, food hubs is something that is, that is providing beneficial to small-scale producers,” he says.

‘Helping Each Other Out’

Having access to a food hub has benefited Roger Dolan, who owns The Wild Bean in downtown Lewisburg. The hip coffee shop also serves vegetarian fare and does a rocking trade in smoothies.

Dolan says he has always tried to source as much of the produce The Wild Bean uses locally, but says it was hard juggling communications with multiple farms to get what he needed. Then he found a food hub and, despite an occasional produce shortage, he says it’s a boon to business to be able to advertise the restaurant uses locally-sourced produce.

“We’re putting money right back into our local economy by supporting local farmers that are going to come to our shop and spend their money,” he says. “It’s like a cycle, we’re each helping each other out.”

This fall, the two largest food hubs in the southern and eastern portions of West Virginia are converging. Sprouting Farms’ Greenbrier Valley Grown and ReFresh Appalachia’s food hub are joining with other large producers and growers’ groups under the umbrella organization, the Turnrow Appalachian Farm Collective.

“We’re trying to achieve some economies of scale here and hopefully to get West Virginia agriculture products into bigger markets,” says Brandon Dennison, the founder of the Coalfield Development Corporation, which runs farmer training program ReFresh Appalachia

The West Virginia Department of Agriculture estimates West Virginians consume $8 billion of food annually but the state only produces $800 million. If the new combined food hub can boost the amount of locally produced food bought by West Virginians by just a few percentage points, it could have big returns, says Jim Matson, an agricultural economist based in South Carolina.

“We’re not trying to replace every amount of food that comes in there with local food in most cases,” he says. “We’re just trying to add a little bit to it that can help to support these local families, add to local communities.”

Just the Beginning

Credit Brittany Patterson / WVPB
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WVPB
Sprouting Farms in Talcott, WV.

Back at the farm, Boettner and I climb to the top of a hill to get the birds-eye view of Sprouting Farms.

As we look out over the land, dotted with white covered high tunnels, he reflects on the work they’ve accomplished so far.

“I’m happy with the progress we’ve made, absolutely, but I also know there’s an extremely long way to go,” he says laughing.

Boettner says as the project goes into its second year, it does so with more data and feedback on what has worked so far, and what hasn’t. One thing he doesn’t question is the appetite for more local food. 

Sprouting Farms has two more years of federal funding from the ARC for the first phrase of the project. They’re hoping that in the meantime, they can find a way to be more self-sustaining, bringing a profit to their organization, to continue after the grant runs out.

W.Va. Ag Officials Say Flooding May Contaminate Hay

West Virginia officials are warning farmers about the possibility that their hay could be contaminated by recent flooding.

The state Agriculture Department said in a news release feeding contaminated hay to animals can be dangerous.

The agency said forages that are affected by flood waters become contaminated with soil, bacteria and debris. Agriculture Commissioner Kent Leonhardt recommends that farmers make sure they know where hay comes from before buying it.

The department said not to feed bales that aren’t sealed on both ends and said some individually plastic-wrapped baleage may be usable. Farmers should closely inspect bales for punctures or separation of plastic layers. If the plastic separates, discard the forage. If it remains intact until feeding, inspect for abnormal smells or colors and presence of molds or excess moisture.

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