Farm Wars

America’s trade war with China is fueling a long-running battle over weedkillers in American farm fields. It’s a tough time to be an American farmer — especially if you grow soybean. They are a $40 billion business in the U.S., but the price of soybeans plummeted last year because of the trade war. Soybean farmers are desperate to restore their profits and one way to do that is to boost their harvest.

Weeds can get in the way of that goal. For years, farmers have been able to keep weeds at bay with products like Monsanto’s herbicide Roundup, but now, some weeds are resistant to the chemical. Monsanto and other chemical companies have  another effective weedkiller that relies on an herbicide called “dicamba.” But there’s a problem: besides killing weeds, dicamba can harm other sensitive plants. In fact, in 2017, the drifting chemical damaged some three and half million acres of valuable crops.

There are petitions and lawsuits in the works.  One farmer died in a fight over the weedkiller.  It’s forcing farmers to ask: where’s the line between doing what’s good for my business and doing what’s good for my neighbors?

In this episode, host Trey Kay and his colleague Loretta Williams travel to Arkansas to report on a simmering battle — more like a civil war — that pits farmer against farmer.

W.Va. Farmers and Bottlers Come Together at Summit

West Virginia is home to numerous beverage companies that brew beer, distill spirits and syrups and press cider. The state also boasts farmers who produce fruits and grains those bottlers could use.

The problem is the two groups are often disconnected.

The “Craft: Farm to Bottle Summit” in South Charleston earlier week this aimed to address that gap, bringing the two groups together and helping each understand the other’s needs. The Robert C. Byrd Institute (RCBI) in Huntington organized the summit. More than 100 people attended.

Changes to state laws in recent years have made it easier for bottlers and manufacturers to open new businesses, according to Bill Woodrum, the Director of Entrepreneurship for RCBI.

“The next step we see for that is helping those local bottlers whether it’s anything from kombucha to soft drinks to beer, wine, spirits, to be able to identify local sources for their product,” Woodrum explained.

Alex Duran, assistant operations manager from Greenbrier Valley Brewing Company was excited about the possibilities coming out of the summit.

“For us it’s very important that you use West Virginia first. Not to outcast anybody from the other states, but from our perspective this way it highlights some of the smaller communities in our area,” he said.

Both groups are small and face unique economic restrictions and challenges. They need to simultaneously grow product demand and produce production. It’s tricky and takes coordination. An example from the conference was a farmer just can’t just show up with a ton of strawberries. Brewers need to know weeks in advance when the fruit will be ready so they can plan their production schedule.

Charles Bockway, a reporter who covers the West Virginia beverage industry, said the economic landscape is shifting and becoming more hospitable to small manufacturers and local farmers. The agricultural sector has never thought of bottlers as a potential market, but they are coming to realize the possibilities.

Many at the conference looked to keynote speaker Todd Boera from the Fonta Flora Brewery in Morganton, North Carolina for guidance. His brewery has more than doubled in size in the last six years and obtains 97 percent of its supplies from the Appalachian region. 

“It’s the hard road, but every time we do something that we just put a whole lot of work into, whether it’s sourcing the ingredient to begin with and then processing that, or maybe it’s some brewing technique — whenever we have, whenever we taste the final product it’s 100 percent worth it because this isn’t a gimmick , it truly creates a better product and it just happens to tell a really cool story at the same time,” Boera explained.

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.  

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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.”

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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.

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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.”

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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.”

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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.” 

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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.

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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

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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.

Hogwash: Farmers Fear Trump Trade Disputes Are Damaging Ag Markets

Jimmy Tosh sells a lot of pigs. He is owner and CEO of Tosh Farms, Tosh Pork, and Bacon By Gosh, in Henry County, Tennessee, and has 84 contracted barns in the region where farmers grow pigs for his products.

On a recent July day, Tosh craned over some 1,200 piglets and reflected on how recent market disturbances have affected his business.

“These pigs in January were selling for the $75 to $80 dollar mark,” Tosh said. “Because of seasonality and the effect of the tariffs these pigs now are in the $16 to $18 dollar range.”

These little piggies will grow to be around 280 pounds before they head to the market. But with 25 percent of his pork products depending on export markets, the growing trade war between the U.S. and China could have Tosh looking to find the pigs new homes.

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Ohio Valley ReSource
With hog prices dropping, will these little piggies go to market?

“China is our fourth largest market by value, it’s our third by tonnage,” he said. “They take a lot of the pork that we do not consume in this country; the heads, the feet, livers and stuff. That market has gone from a thousand metric tons three months ago to zero last month.”

Other tariffs are also having an effect. As with any successful business, Tosh has plans to expand with a new unit that would produce about 225,000 pigs a year. He needs another 40 barns to do that. With the steel and aluminum tariffs in place, the extra costs for metals used in construction will increase his costs by $15,000 and $17,000 for each new barn.

“Whether we build another unit after that really depends on the market conditions we are in,” Tosh explained. “The tariffs, the amount of hogs, and mainly are we going to be profitable or are we going to lose money?”

This week the administration moved to impose tariffs on an additional $200 billion worth of Chinese products on top of the $34 billion in goods already targeted for import taxes. China has already retaliated against that earlier round of tariffs, and other trading partners from the E.U. to the Americas have all put U.S. agricultural products in the crosshairs again.

The National Pork Producers Council reports that U.S. producers face punitive tariffs on 40 percent of total American pork exports to China and Mexico, and hog, corn and soybean farmers all fear they could be losing major customers for their exports.

Farm country is closely aligned with Trump country. But as the Trump administration escalates its trade dispute with China, farmers are among the first to feel the pain.

Soy Price Plunge

The situation is just as dire for U.S. soybean farmers who are losing contracts with China.

In far west Kentucky, corn and soybean farmer Jacob Goodman has just checked the afternoon market prices.

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Ohio Valley ReSource
Soybean farmer Jacob Goodman watches prices for his crop drop

“Here is our electronic grains overview,” he said, tapping at a keyboard. Soybeans that had been trading at more than $10 at the beginning of the month were now down to under $9.

“That is the price per bushel and when you are looking at thousands of bushels, gosh, at 60 or more an acre, that price adds up very quickly,”  Goodman said.

Soybeans are the top agriculture export for the U.S. and China is the top buyer. The commodity’s price dropped to a 10-year low after China announced its retaliatory efforts. In 2017 more than half of the soybeans grown in the Ohio Valley and the U.S. went to China. Goodman said farmers are already dealing with a near 50 percent loss in profit over the last few years.

“When you go and start picking fights with people that buy your products, that adds a whole ‘nother level to it,” Goodman said.

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Ohio Valley ReSource

Countries responding to tariffs implemented by President Trump have said they will retaliate by hitting his base of supporters hardest, farm country. That carries a cruel irony for Goodman. He said he is a blue dot in a sea of red.

“I would definitely say that I am kind of the black sheep in the area because I didn’t vote Trump,” he said. 

“Whenever we start to threaten other countries with withholding grain or something like that they just turn around and buy from somebody else,” Goodman said. “A soybean in Kentucky is the same as a soybean in Brazil.”

Credit Nicole Erwin / Ohio Valley ReSource
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Ohio Valley ReSource
Goodman’s family farms 4,000 acres of corn and soybeans in Fulton Co., KY.

‘Domino Effect’

The President’s attempt to bring down the U.S. trade deficit has instead increased tension with trading partners, according to David Laborde with International Food Policy Research Institute.

“This is why policy makers are very careful not to play short-term games because there is long-term cost,” Laborde said.

Laborde said there is now a “big premium” for Brazilian soybeans and it is forcing U.S. farmers to have to sell for less in order to compensate for tariff effects.

“We are going to see countries like China aim to diversify their supply chain and start to do new investments or build new trade relations with other countries around the world,” Laborde said. “You know you create a distortion, you create a conflict and policies and markets are going to react all over the world and with a very different pattern of production at the end.”

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Ohio Valley ReSource

He said U.S. farmers are simply not in position to absorb these prices with the consecutive annual losses in farm income. “We are in a place where people can go bankrupt if the low prices remain,” he said.

When soybeans became the number one export commodity, many farmers prepared for an increase in demand by buying more land and seed. Those farmers will be the ones with the most to lose in the market distortions brought on by a trade dispute, according to Laborde.

“In the end someone still has to pay for this,” Laborde explained. “So it means that insurance premiums will have to go up and because [the U.S.] is heavily subsidized, the government will have to find money to compensate the insurance to pay the subsidies of the insurance schemes.”

Credit Alexandra Kanik / Ohio Valley ReSource
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Ohio Valley ReSource
Jimmy Tosh hog barns in Tennessee.

Bargaining Power

Laborde said that all the trade decisions are now coming from the executive branch of government.

“I think there is a lot of bargaining power from Congress that is not used, so maybe they don’t want to enter into a conflict before the midterm election,” Laborde said. “Just two months of this kind of trade war activity can move investors in another direction for two decades.”

But it is not yet clear if the trade troubles will move the President’s base of support.

Farm groups have kept a soft tone as Trump has pushed for new deals, including his attempts at renegotiating the North American Free Trade Agreement. Eddie Melton, an official with the Kentucky Farm Bureau, reflects the majority of farmers in the Ohio Valley who view the President’s actions as necessary.

“There have always been challenges in agriculture–always,” Melton said. “But through challenges we always find opportunities and I hope we can find opportunities again.”

Melton is hopeful. He said if China isn’t willing to move in the direction the President wishes, maybe India will.

“I think this gives us an opportunity to expand markets,” Melton said. “I really do.”

Hog farmer Jimmy Tosh is not so sure. “I don’t support his tariff position. I have always been a free trader,” he said. “I’ve been Republican my whole life but I do have concerns right now,” Tosh said.

Farmers Market Training Events Set in West Virginia

A series of training seminars will be held around West Virginia aimed at boosting farmers markets and farm production.

The first seminar will be held Tuesday at the Country Inn in Berkeley Springs. Additional seminars are scheduled for Nov. 9 at Jackson’s Mill near Jane Lew and for Dec. 14 at the State Fairgrounds in Fairlea.

They are being hosted by the West Virginia Farmers Market Association and the West Virginia Food and Farm Coalition.

The Department of Agriculture said in a news release that among the topics for discussion will be branding and marketing, product pricing, regulatory compliance, access to capital and insurance, and social media.

The sessions are open to the public, but participants must register in advance. For more information, contact Erica Gallimore of the Farmers Market Association at (304) 412-6166.

Justice Calls for Advancing West Virginia's Farming, Jobs

Governor Jim Justice says West Virginia has opportunities to expand farming and jobs with fertile soil and good climate, rainfall and temperatures for growing, calling for state’s reconstituted Agriculture Advisory Board to advance them.

The first-year governor, whose family businesses include farms, says he wants West Virginia to find a niche crop to market to the world, also noting that it is within 600 miles (966 kilometers) of two-thirds of the U.S. population and those markets.

Agriculture Commissioner Kent Leonhardt recently relaunched the board, saying it was established to develop a strategic plan for the state’s agriculture but has been inactive for several years.

The board consists of the governor, commissioner and the director of the cooperative extension service of West Virginia University.

Its first meeting is scheduled Monday.

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