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12 CapitalPress.com August 18, 2017 Concern remains about liability for farming without federal permission DUARTE from Page 1 “But given the risks posed by further trial on the govern- ment’s request for up to $45 million in penalties, and the catastrophic impact that any signifi cant fraction of that would have ... this was the best action I could take to protect those for whom I am responsible,” he said. Jeffrey Wood, an acting assistant attorney general for the U.S. Justice Department’s Environment and Natural Re- sources Division, said in a statement that the agreement “serves the public interest in enforcement of the Clean Wa- ter Act and deterrent of future violations.” Political pressure had been mounting on President Don- ald Trump’s administration to resolve the case, which was set to go to trial to enforce $2.8 million in fi nes and up to tens of millions of dollars more in mitigation credits sought by the Corps. In 2013, the Corps notifi ed Duarte that he had “fi lled” wetlands in his fi eld south of Red Bluff, Calif., by plow- ing it and ordered him to stop work. The Pacifi c Legal Foun- dation fi led suit on Duarte’s behalf in 2013, disputing the Corps’ allegations and argu- ing the government violated his Fifth Amendment due-pro- cess right by not allowing him to answer the charge in a hearing. The Corps responded with a counterclaim alleging the Clean Water Act violation. Last year, U.S. District Judge Kimberly Mueller sid- ed with the government, rul- ing that Duarte should have obtained a permit to run shanks through wetlands at a depth of 4 to 6 inches, creat- ing furrows. In May, House Agriculture Committee chairman Michael Conaway and House Judicia- ry Committee chairman Bob Goodlatte sent a letter to At- torney General Jeff Sessions arguing that Duarte’s fi eld work should qualify as “nor- mal” farming practices under the Clean Water Act exemp- tion. Duarte had an ally in U.S. Agriculture Secretary Sonny Perdue, who last week told the Capital Press he planned to talk to Sessions and Envi- ronmental Protection Agen- cy administrator Scott Pruitt about the government’s con- tinued pursuit of the case. “I’m hoping that the U.S. Justice Department will see fi t to hold off on that until a bet- ter defi nition of Waters of the U.S. appears,” Perdue said. The agreement announced Aug. 15 follows several months of talks involving Tony Francois, a PLF attor- ney handling the case, and Justice Department offi cials. Duarte would have pre- ferred to see the case through and appeal the court’s liability ruling to try to set a precedent that was favorable to growers, Francois said. Duarte and the PLF remain concerned about the case’s implications for legal liability for farming without federal permission, which they be- lieve undermine protections the Clean Water Act affords to normal farming practices, Francois said. In a recent pre-trial brief, U.S. attorneys said the case would not be used as a pre- text for federal prosecution of growers who engage in nor- mal plowing on their farms. No federal dredge-or-fi ll per- mit is required for plowing as long as it is not for the pur- pose of converting federally protected waters to new uses, the government contended. Landowners should check with the Corps about permit requirements, wetland de- lineations and other aspects before doing activities that could be regulated under the Clean Water Act, said Mi- chael Jewell, chief of the reg- ulatory division for the Corps’ Sacramento District. The U.S. District Court will hold a hearing in about 45 days to approve the set- tlement, which is subject to a 30-day comment period. The consent decree can be viewed at https://www.justice.gov/ enrd/consent-decrees. Biodynamic farming is a closed-loop system, with animals at its heart BIODYNAMIC from Page 1 “It is a method of organic agriculture that predates the national organic program by 70 years,” said Jim Fullmer, executive director of Junc- tion City, Ore.-based Demeter USA, the nation’s biodynamic certifi cation authority. “This is like the grandmother of all of it.” Fullmer said public aware- ness of the system has surged in the U.S. during the past decade, based on its growing popularity among West Coast wineries seeking to differenti- ate their products — and claim massive price premiums. Fullmer and the Victor pro- ducers believe the nation is on the cusp of yet another “foun- dational” biodynamic trend. Demeter has been fl ooded in recent months with calls from marijuana growers. Though recreational pot use has been legalized in many states, including Oregon and Washington, it’s still not le- gal federally, leaving growers without the option of seeking federal organic certifi cation. Medical pot use is allowed in California, which is scheduled to legalize pot for recreational purposes starting next year. The system Biodynamic farming is a closed-loop system, with ani- mals at its heart. The animals provide compost for crops and are in turn supported by farm- raised forage. By promoting diverse in- sect and soil microbial life, biodynamic farmers keep pests and diseases in balance without chemicals, explained Ken Michael, who runs Vic- tor-based Teton Full Circle Farm with his wife, Erika Es- chholz. “It’s pretty much self-sus- taining,” Michael said. “Wa- ter and sunlight are the main inputs.” Certifi ed growers must meet the baseline requirements of organic farming. In addi- tion, they must spend at least a year demonstrating their mas- tery of nine required homeo- pathic treatments, which are many times ridiculed by those in mainstream agriculture. One treatment, for exam- ple, entails burying manure in a cow horn, thereby “am- plifying” natural energy to accelerate its conversion to humus, which is used to inoc- ulate compost with benefi cial microbes. Another treatment involves burying a horn with pulverized quartz, which is added in small doses to water and sprayed on foliage to stim- ulate photosynthesis. Some producers, such as Michael, base crop decisions on a celestial planting calendar, which he explained “follows the moon through the various constellations” and “makes Farm Credit System Total non-performing loans (Billions of dollars) John O’Connell/Capital Press Ken Michael and Erika Eschholz lead a tour of their Teton Full Circle Farm, a certifi ed biodynamic produce farm in Victor, Idaho. Biodynamic farming is a closed-loop system that requires farm inputs to be produced on the same farm. John O’Connell/Capital Press Dale Sharkey and her husband Jed Restuccia started the fi rst biodynamic farm in Victor, Idaho, in 1996, Cosmic Apple Gardens. A few more biodynamic businesses have since opened in the area, employing agricultural practices that seek to maximize the benefi t of the energy in nature, and also seek to buid soil health through a sustainable system. sure we’re in the rhythm that the plants are following.” The Victor farmers explain the homeopathic treatments are complex and aren’t fully understood by science, making them diffi cult to explain to the public. They contend farmers must experience the benefi ts of the treatments to believe them. Clusters of biodynamic farms often develop as work- ers versed in the system leave to start their own operations nearby. Demeter USA had certifi ed 15 farms in 1993. Today, 300 farms are certifi ed biodynam- ic. Biodynamic farmers pay Demeter a $420 annual renew- al fee, plus half a cent for ev- ery dollar in earnings, and are subjected to an annual audit. The Victor cluster Reid speaks of his favorite cow, Glenda Goodwitch, to prove his system’s effective- ness. Goodwitch, mother to Aun- tie Em, is 14 years old and re- mains the top milk producer on his dairy. The geriatric cow is pregnant with another calf. Reid, who holds the fi rst raw milk permit issued in Ida- ho, was recently recognized as having one of the 10 best organic dairies in the U.S. by the Cornucopia Institute, a nonprofi t organization that promotes organic agriculture. “If you treat your cows as well as you treat your pet dog, they’ll return just as much love, and even better, a lot of good milk,” said Reid, who has trained his cows not to defecate inside the barn. Reid acknowledges his yields can’t compare with conventional dairies, but his customers pay a con- siderable premium for milk they believe delivers better nutrition and “energy.” Lo- cal families who subscribe to his delivery service pay $12 to $15 per gallon for his raw milk, and up to $35 per LOANS from Page 1 1.96 1.74 1.63 Source: Federal Farm Credit Banks Funding Corp. 2012 ’13 ’14 ’15 ’16 Mid- 2017 Capital Press graphic Biodynamic wine Most vineyards seek to plant “every square inch” of their property in grape vines, explained Jeffrey Landolt, vineyard and estate director at Benziger Family Winery in Glen Ellen, Calif. About 20 years ago, how- ever, Benziger commenced with tearing out vines, as it started on the path toward be- coming biodynamic. In addition to grapes, the 90-acre farm is now also home to about 1,000 olive trees, a fruit orchard and fl ower gar- dens, which promote a diver- sity of insects to keep harmful pests in check. Bird boxes are scattered throughout the prop- erty — habitat for blue birds that also play a role in insect control. And though the industry has long valued bare soil to avoid competition with vines, Benziger plants specialized blends of cover crops — plant species raised primarily to benefi t soil health — beneath the grapes. Benziger maintains a fl ock of 80 sheep to graze the cover crops and add manure to the system. Bedding, manure and spent grape skins are also composted together for addi- tional fertility. The percentage of organic matter in the farm’s soil has grown from 1 to 3 percent under the biodynamic system. Landolt explained that Ben- ziger is “pushing the enve- lope” of biodynamics, having developed some of its own homeopathic treatments. For example, the farm has experi- mented with different minerals to use in the preparation in- tended to stimulate photosyn- thesis. Benziger’s biodynamic wines sell for $60 to $100 per bottle, containing a “unique and a wider swath of the po- tential fl avor and aroma pro- fi le.” “I think we’re about to ex- plode in biodynamic agricul- ture (production) in general,” Landolt said. Fullmer, the biodynamic certifi er, said 70 vineyards, mostly on the West Coast, are currently certifi ed biodynamic. “What initially brought biodynamics to the U.S. con- sumer’s mind was wine,” Fullmer said. “Wine is a great ambassador.” Marijuana niche In the near future, Fullmer anticipates many marijuana growers who call themselves “farmers” will have to earn the title — at least if they hope to receive his association’s certi- fi cation. Biodynamic pot growers are expected to raise livestock to generate compost for their high-value crops. They’ll also have to implement diverse crop rotations. But the payoff is considerable for those will- Research results Rupert, Idaho, crop scien- tist Jeff Miller recalled a peri- od about 15 years when com- post teas enjoyed short-lived popularity among many local potato farmers. In his own trials, Miller noticed no benefi t from the teas — compost concentrates mixed with water and applied to soil to boost benefi cial or- ganisms. However, a grower who at- tended his fi eld day swore she had success with them. A year later, the grower acknowl- edged she’d switched back to conventional methods, and that her promising results were likely based on her own desire for compost teas to work. Miller sees parallels be- tween that grower and those who report successes with some of the more unusual bio- dynamic practices. “Let’s say I do fi ve things to my crop and three work and two don’t,” Miller said. “With- out properly controlled scien- tifi c studies, it’s hard to know what things are giving you the benefi t.” Washington State University soil science professor John Re- ganold is among a small group of researchers who have studied biodynamic farming in depth. Colleagues have suggested that Reganold is “out of his mind” to give the system any consideration, he said. “I say, ‘No, they’re farm- ers, and they’re good farmers. They’ve got good soil, and they’re making money,” Re- ganold said. Reganold emphasizes the system generally preaches sound farming fundamentals, such as good care for ani- mals, crop diversity, building soil health and sustainabili- ty. Reganold’s research has confi rmed a slight increase in compost temperature, as well as improved respiration of soil organisms, following the addi- tion of manure from a buried cow horn. He’s seen no evidence to support claims that any of the homeopathic preparations directly result in production gains. Indirectly, however, he’s certain biodynamic farm- ers benefi t from the prepara- tions because they’re forced to spend more time observing their fi elds. “Organic is getting bigger and bigger, and now people are saying, ‘We want a differ- ent edge,’” Reganold said. Farm Credit System’s portfolio isn’t limited to crops and livestock $2.05 billion 2.61 2.04 pound for his raw cheese. The Teton Valley’s fi rst biodynamic farm, Cosmic Ap- ple Gardens, opened in 1996. Founder Jed Restuccia and his wife, Dale Sharkey, raise vegetables, beef, poultry and eggs on their 50-acre farm, selling food directly to cus- tomers through a community supported agriculture arrange- ment. Cosmic Apple animal products, however, are labeled only as organic, since the farm imports too much outside feed for them to meet biodynamic specifi cations. “It’s healing the Earth through agriculture, and that’s what we want to do,” Sharkey said. Full Circle Farm sprang out of Cosmic Apple, where Eschholz worked for 11 years, starting as a volunteer. Full Circle employs one worker and two interns and offers 20 CSA “work shares” for supple- mental labor. People who put in several hours per week of weeding, harvesting and other chores get free produce. ing to make the investment. One grower reported selling biodynamic pot for $60 per eighth-ounce, compared to about $35 for a standard vari- ety raised under natural light. “They’ve been lab techni- cians up until now, but can- nabis producers are becoming farmers, which is a beautiful thing,” Fullmer said. Under Oregon’s industrial hemp license, Fullmer raises a medicinal cannabis variety with several “healing com- pounds” but without the psy- choactive ingredient, THC. His own crop rotation includes medicinal herbs, such as yar- row and red clover blossom. He also has a herd of Scottish Highland cows. Fullmer has fi elded calls from processors throughout the country seeking a certifi ed biodynamic marijuana sup- ply for oil extract production. Only eight growers are now certifi ed or in the process of becoming certifi ed. Alicia Rose, founder of HerbaBuena in Northern California, makes medicinal marijuana extracts and topical products. She was the fi rst to inquire with Demeter about certifi cation for marijuana. Familiar with biodynamics as a consultant to high-end win- eries, Rose fi gured the system represented a good alternative to pot farmers who are exclud- ed from seeking federal organ- ic status. Rose helped a Sonoma fruit and olive farmer become the fi rst Demeter-certifi ed pot grower and now has six biody- namic suppliers. “A lot of people buy it only because it has the word ‘certi- fi ed’ on there,” Rose said. “In some ways, we’re lucky we live in Northern California and there’s been a considerable biodynamic movement here, especially because of the wine growers.” Crop insurance payments authorized under the 2014 Farm Bill have also helped alleviate farmers’ fi nancial problems caused by lower commodity crop prices, she said. Meanwhile, lower crop prices equate to lower feed costs for livestock producers, boosting their profi ts, Gill said. The Farm Credit System’s portfolio also isn’t limited to crops and livestock — the network lends to rural utili- ties and food processors, for example. “That’s going to be under- pinning when we have cer- tain areas that are stressed,” she said. If economic conditions don’t improve for several years, it would likely be re- fl ected in a greater volume of non-performing loans, said Tom Nakano, chief fi - nancial offi cer of Northwest Farm Credit Services, a system lender. It’s diffi cult to estimate how long farm incomes would need to be down before that credit de- terioration showed up, he said. “To predict it across the whole portfolio is pretty tough.” Many farms rely on off- farm income, so some loans were affected when family members lost their jobs due to the fi nancial crisis, said David Lewandrowski, senior policy analyst for the Farm Credit Administration, which regulates system lenders. For this reason, the sys- tem charged off more bad debt in 2012 and 2013 even though commodity prices were higher than today, said Lewandrowski. “That was basically a rip- ple of the fi nancial crisis,” he said. Farm Credit lenders main- tained fairly conservative lending standards even when commodity prices were high, reducing the risk of credit de- terioration now that they’ve fallen, Lewandrowski said. “The system is well-posi- tioned to handle it,” he said. Due to the variety of the region’s agriculture indus- try, Northwest Farm Credit Services doesn’t have more than about 10 percent of its portfolio in any one sector, compared to 30 percent or more for some ag lenders, said Nakano. “Our greatest strength is the diversity of commodi- ties and industries that we fi nance,” he said.
