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.