A Wave of Change I pleaded with our staff to hold this month’s magazine long enough for me to write my perspective the day after the Presidential Inauguration. They humor me and so, on January 21st, I get to share with you my thoughts and impressions following that historic event. The idea of putting politics aside is one that is difficult for me. My career began in politics, as a legislative staffer to two different California State Assemblymembers. At that time, my whole being oozed politics; it’s who I was; it’s what I did. Since then, though, courtesy of a few job changes and a bit more life experience, my hard-nosed political edge has softened. I am more driven by a desire to create reasonable, balanced solutions then being right. After all, in politics, right is a moving target. This weekend our local paper published a special commemorative piece on the inauguration of President Barack Obama. As my husband and I were perusing the sections, I asked him if he thought we should keep the piece to some day show our children. “Absolutely,” was his reply. His answer took me a bit by surprise and at the same time is exactly what I expected him to say. He understands that politics and history is not necessarily the same thing. It’s important to understand, though, that my husband is a staunch Republican. He is a red state. He supported McCain from the very beginning to the bitter, bitter end. I tend to hang in the middle of the political spectrum and vote 50/50 either way. I’m a candidate girl, no longer a party girl. In fact (and I’m sure admitting this will some day come back to haunt me), I didn’t vote for either of the major Presidential candidates. I just couldn’t do it. One was too good to be true, the other had strayed too far from the man I had come to respect and admire. It felt like I was doing the “lesser of two evils” thing and I am so sick of that logic in voting. That being said, it should be no surprise that I’ve been somewhat noncommittal about the election of President Barack Obama. My attitude has been about reserving judgment until he got in and gets his feet dirty. I would like to be pleasantly surprised and find that he is able to move the machine in a direction that is more ethical, honest, respectful and worth being proud of. But then again, I worked in politics. I’m a bit cynical on the ability of any one person to sway national politics, no matter how intelligent, eloquent or far-from-the-Good-Ole-Boy network he may be. Even with my jaded outlook, it was hard not to get excited about yesterday. And subsequently why my NRA-card-carrying, red-as-red-can-be, Republican husband insisted that we save the commemorative newspaper piece. Whether you like the man and his politics, or not is a moot point. Yesterday, history was made. And there is something inherently magical in being a part of that moment in time. I imagine having conversations with my children about what I did that day, what it felt like, how I reacted. They will be similar to the conversations I’ve had with my parents about the day Kennedy was shot. I know where they were, how they felt, what it was like to be in that moment. (Dad was working in a brussels sprout factory and mom was in her office working as a bookkeeper; they both recall that the world stood still.) Very rarely do we get to be an active participant in an event that will, undoubtedly, change the course of our country forever. It’s awe-inspiring and at the end of the day, has absolutely nothing to do with politics. Today, however, is Day 1 of “Yes We Can” and the world sits on the edge of its seat, on pins and needles, waiting to see what will happen. Quite frankly, I don’t envy President Obama. There is a mounding wave of pressure and expectation that is truly ridiculous for one man to bear. Ultimately, he will end up failing someone. It’s just not possible to do so otherwise. My hope is that the sentiments expressed and the momentum on which he glides into office will last a bit longer than the average honeymoon period. We in agriculture are desperate to see the impact of his many plans – the economic stimulus package, changes in health care policy, further participation in the DOHA Round and expansion of free trade agreements. With the U.S. Senate confirmation today of former Iowa Governor Tom Vilsack as secretary of agriculture, there is hope for an active voice at the Obama Administration table. For now, though, as we go back to our daily lives – after all, the cows could care less about the history of yesterday – I think it’s ok to let down our political guard. For another 24-hours or so, it’s ok to not be red or blue. It’s ok to not get into “big government or small government,” who he’s selected to be in his cabinet, what his position is on energy, the war in Iraq, or anything, for that matter. For the next day it’s ok to simply be an American proud of this country and in recognition of the great historical moment that we were witness to.

Million-Dollar Farms in the New Century By Robert A. Hoppe, Penni Korb, and David E. Banker Economic Research Service U.S. Department of Agriculture Small farms (those with annual sales less than $250,000) represent a large majority of U.S. farms (92 percent), but account for a relatively small share of total farm production (23 percent). This report examines the other end of the size spectrum, where a large percentage of farm production occurs, specifically on “million-dollar farms” whose annual sales total $1 million or more. The 35,100 million-dollar farms reported in 2006—2 percent of all U.S. farms—accounted for 48 percent of the sales of U.S. agricultural products. What Is the Issue? Understanding million-dollar farms is especially important because of the large and growing share of U.S. food and fiber they produce. This report examines the growth of production from million-dollar farms since the 1980s. It lays out the current role of million-dollar farms in U.S. commercial agriculture, including their share of farms, their production of specific commodities, and their receipt of Government payments. What Did the Study Find? Major shifts occurred in the distribution of gross farm sales between the 1982 and 2002 Censuses of Agriculture, with sales measured in constant 2002 dollars. Farms with sales of $1 million or more doubled their share of total U.S. farm sales from 23 percent in 1982 to 48 percent in 2002. Some of these million-dollar farms are relatively recent entrants to farming, while others existed as far back as 1978. The shift in production to million-dollar farms is likely to continue. Average operating profit margins increase with sales, reflecting economies of size in farming. As a result, million-dollar farms—and farms growing to that size—have a competitive advantage relative to smaller farms. The shift in production may eventually slow, however, once million-dollar farms’ shares of the commodities most amenable to large-scale production reach their upper limits. Million-dollar farms do not have market power. The shift in farm production to million dollar farms reflects a long-term concentration of farm production on fewer farms that has been underway since the beginning of the 20th century. However, there are still too many million dollar farms—just over 35,000—for any single farm to dominate agriculture or the production of specific commodities. Million-dollar farms receive a small share of Government payments. Most Government payments are commodity-related or targeted at current or past production of specific commodities, largely feed and food grains, cotton, and oilseeds. Relatively few million-dollar farms—particularly those with sales of $5 million or more—specialize in crops covered by commodity programs. As a result, million-dollar farms received only 16 percent of U.S. Government payments in 2006, a small share compared with their 48-percent share of gross sales, although disproportionately large compared with their 2-percent share of all farms. Million-dollar farms have more operators than farms with lower sales. The number of operators per farm averaged 1.5 for all farms in 2006, but 2.1 for all million-dollar farms and 2.6 for $5-million farms. Multiple-operator farms accounted for 66 percent of million-dollar farms, substantially more than the 46-percent share for farms in general. Multiple generation farms—those with at least 20 years’ difference between the ages of the oldest and youngest operators—made up a larger share of million-dollar farms (23 percent) than any other sales class. Most million-dollar farms are family operations. Eighty-four percent of the million-dollar farms in 2006 operated as family farms—defined as any farm where the majority of the business is owned by the operator (or the principal operator on multiple-operator farms) and individuals related to the operator. Only 7 percent of million-dollar farms were organized as nonfamily corporations, generally with no more than 10 stockholders. The situation was similar for farms with sales of $5 million or more, although a smaller share (64 percent) was classified as family operations and a larger share (21 percent) as nonfamily corporations. The operators and spouses on million-dollar farms, however, provided only 10 percent of the farms’ labor, compared with 39 percent for farms with sales between $500,000 and $999,999. Million-dollar farms account for most contract production. Thirty-nine percent of U.S. farm production came from farms with production or marketing contracts in 2006, and million-dollar farms accounted for about 62 percent of this contract production. Sixty-three percent of million-dollar farms used contracts, and about half of their production— mostly livestock—was under contract. Note that farms with production contracts only receive a fee from contractors, and only the fee—rather than sales—is included in their gross cash income. Measuring size by gross cash income rather than sales would reduce the number of million-dollar farms among some specializations, such as poultry farms. Million-dollar farms also served as contractors. Approximately 5,400 farms reported contracting livestock production (including poultry) out to other farms. The share of farms contracting livestock production out was highest for $5-million farms at 12 percent. How Was the Study Conducted? Most of the data in this report are from the 2006 Agricultural Resource Management Survey (ARMS). The ARMS is a detailed, annual survey of farm businesses and associated households conducted jointly by the U.S. Department of Agriculture’s Economic Research Service (ERS) and National Agricultural Statistics Service (NASS). The report also uses data from the last five censuses of agriculture to follow the shift in production to million-dollar farms. Finally, the 2002 Census of Agriculture Longitudinal File—which links records for individual farms from the last six censuses—traces the history of today’s million-dollar farms. To view the complete study report, visit www.ers.usda.gov/Publications/EIB42/

Fresh Fruit February 2009 – Newsbites Market report of table grapes Table Grapes: The good news is that the table grape market (specifically, the imported table grape market) is the strongest that it has been in months with chain stores showing considerably more of an appetite for grapes than we have seen in recent weeks. The days leading up to Christmas and through to the end of 2009 have seen demand for table grapes increase. The profound disinterest that the market had shown in the Brazilian Festivals had left many wondering whether this was an early indication that the weakening North American economies would cause consumers and retailers to shift focus away from imported fruit,even as mainstream an item as table grapes. It is far too early to come to any conclusions about the impact that the economic slowdown will have on imported table grape consumption. Indeed, the most that one can say is that the Brazilian festivals have finally exited the market (although at distressingly low prices) and while California Crimsons are still available, their poor quality and condition have madethem quite unattractive to most chain stores. This has made the Chilean alternative (and the last of the Peruvians) more interesting to chain stores who have finally found their purchase order books. Flames: The holiday season has seen an upswing in table grape demand combined with a shortage of Flames in the market. Through Week 52, Flame arrivals on the East Coast stood at 454 thousand cases, 12% higher than last year’s dismal showing through the same week, but still shy of what the market would normally have expected for this time of the year. The harvest in the north has been painstakingly slow and the fruit quality variable with a higher than optimal percentage of small caliber fruit and splits. Nonetheless, in Week 1, the East Coast will expect 796 thousand cases of Flames to land, but much of that fruit will not be available for the New Year festivities. By the end of Week 1, total Flame arrivals on the East Coast should be at over 1.25 million cases or 20% higher than last year at the same time. The relative shortage of Flames in the market has created a fairly hot market in Week 1 with pricing at US$ 18 for Medium, US$ 20-22 for Large and US$ 22-24 for X-Large. Going into Week 2, following the New Year weekend, we still expect a good Flame market but we would look for a US$ 2 softening across the board as greater volumes arrive in a week that traditionally shows a post-holiday sales slump. White Seedless: The disappearance of the Brazilian Festivals has had a rejuvenating effect on the white seedless grape market. With that fruit out of the market and only a light volume of Chilean white seedless arriving in Week 52 (and only slightly more expected in Week 1) white seedless prices are holding their own at US$ 16-18 for Medium, US$ 18-20 for Large and US$ 22 for X-Large. Again, these prices are on light volumes. Perlettes, though, are the sad exception. They have been the product most affected by the Brazilian Festivals and have not seen values at levels anywhere near what they normally see in the pre-Christmas weeks. In Week 1, Perlettes are struggling to stay at US$ 12 – 16. In Week 2, their value will decline considerably as bigger volumes of the more desirable varieties will arrive. Source: Mark Greenberg, Fisher Capespan CDFA Issues Statement on Avocado Commission Audit The California Department of Food and Agriculture has completed a standard audit of the California Avocado Commission that contains possible financial improprieties. The department received the final audit on Tuesday, January 6 and -- at the request of CDFA Secretary A.G. Kawamura -- referred it immediately to the California Department of Justice for review. CDFA will await the final review from the California Department of Justice. Rare Fruit Growers – Grafting Workshop The California Rare Fruit Growers, Sequoia Chapter, is inviting those interested in learning different methods for grafting deciduous fruit trees to a demonstration Saturday, February 7th from 10:00 a.m. to noon at 1710 Lewis Lane in Tulare. If you have a selected deciduous rootstock or scion wood that you would like to graft, bring it to the demonstration. You will have an opportunity to learn to graft and a method of grafting multiple varieties on a single fruit tree. A donation to the club to help with expenses is suggested. For more information, contact Ralph Osmon at 559-688-5793. US: Local groves could hold the seeds of a grapefruit industry While traditional white grapefruit has not historically grown well in the Central Valley, newer pink and red varieties could fill a market gap created by diseases ravaging Florida orchards, according to Joel Nelsen of California Citrus Mutual. "The disease problem in Florida is just wiping that industry out," Nelsen said. Since two bacterial diseases — Huanglongbing and citrus canker — are taking out grapefruit trees in Florida, local farmers have started planting their own crops here. "There's potential for a new market there," said Nick Hill, vice president and partner of Greenleaf Farms. He said his company has planted 50 acres of Ruby Red grapefruits in Tulare County in hopes of getting a foot in the door of the industry. While white grapefruit grown in the area usually isn't up to par, Hill said Ruby Reds seem to handle the Central Valley heat well. They are also sweeter, and the meat boasts the pretty red color reflected in its name. Not only are these grapefruits tasty, but the large citrus fruits also can be healthful. Pink and red varieties get their pigment from lycopene, which has been associated with decreasing the risk of ovarian cancer and prostate cancer, as well as helping prevent heart disease. Like other citrus, grapefruit brims with Vitamin C, which is good for your skin, gums, immune system, heart and more, according to Fort Myers dietitian and author Jamie Gates. And the fruit's high soluble fiber content helps decrease cholesterol — more so if eaten whole as opposed to juiced, she says. In fact, grapefruit has been mentioned among the so-called "superfoods" packed with essential plant-derived nutrients that are important to human health. The fruit can keep two to three weeks in the fruit/vegetable compartment of a refrigerator. "In terms of fiber and nutrients, it's right up there with blueberries," Gates says. One caveat: Grapefruit juice can interfere with an enzyme in the body that helps metabolize certain medications, causing more of them to stay in your bloodstream longer and increasing their side effects. Some brands of cardiac, cholesterol and antidepressant medications are among those with interaction issues. If you take an at-risk drug, consult your physician about eating grapefruit, Gates says.

Fresh Fruit February 2009 – People and Places Stemilt founder Tom Mathison remembered as a tree fruit leader and innovator Stemilt founder and tree fruit pioneer Thomas Kyle Mathison passed away on December 26, 2008 after a courageous battle with cancer. He was 82 years old. Born and raised on Stemilt Hill near Wenatchee, Tom was a third generation apple and cherry grower, intelligent businessman, and driving force behind bringing Washington fruit to the global marketplace. Upon graduating from Wenatchee High School, Mathison joined the U.S. Army and fought in the Pacific Theater during World War II. He was in Tokyo Bay for the signing of the armistice as the war ended. After the war, Mathison returned home to work on the family farm, which he came to manage after his father’s untimely death in 1947. Not unlike other family farming operations, the Mathison’s ran into tough times. After one particularly disappointing crop, Tom decided to invest in the business and began looking for new ways to improve the quality of his fruit at the marketplace. He traveled to California to study the harvesting and packing techniques of growers there. Returning home with a wealth of knowledge, Tom implemented new methods and technologies in order to turn around the family business. After his innovations proved successful, Tom began packing for other growers and formally incorporated Stemilt Growers in 1964. His mission was simple: create long-term financial return to the land by building consumer demand. Among his many accomplishments, Tom played a key role in bringing Washington fruit into Japan and China, and also helped forge trade negotiations with Mexico. Mathison was also a leader in organic and sustainable farming. In 1989, he began the forward-thinking Responsible Choice program, encouraging growers to reduce their use of chemicals and pesticides. His philosophy helped Stemilt become a leader in organic farming and sustainable business practices. Tom is survived by his loving wife of 58 years, Lorraine; son Robert (Cleta) Mathison; son Kyle (Jan) Mathison; and daughter Lavonne (Hans) van Someren Greve, all of Wenatchee; seven grandchildren, Aaron, Joyce, West, Tate, Susan, Lillian, and Steven; and six great-grandchilden, Adelaide, Gage, Finn, Jax, Rye, and Thomas. A celebration of life will be held at the Wenatchee Convention Center on March 18, 2009 at 11:00 a.m. In lieu of flowers, please make a donation to the Thomas K. Mathison Memorial Scholarship Fund, in care of the Washington Apple Education Foundation, 2900 Euclid Ave., Wenatchee, WA 98801, phone: (509) 663-7713 ; fax: (509) 663-7469. California Raisin Marketing Board Announces New Hires in the New Year The California Raisin Marketing Board (CRMB), the state marketing order that represents the nearly 3,000 growers of California Raisins, announced the addition of three new members to the CRMB team: Mr. Gary Schulz as President, Mr. Rick O’Fallon as Marketing Director, and Mrs. Cookie Fritz as Administrative Assistant. “We are delighted to welcome Gary, Rick and Cookie to the CRMB team,” said Larry Blagg, Senior Vice President of Marketing for the CRMB. “Under Gary’s leadership and with each of their experience and support, we look forward to the continued success and innovation of CRMB marketing programs.” Mr. Schulz brings more than 25 years of agriculture business experience to his new position as CRMB President. Serving as General Manager for the non-profit, International Agri-Center for more than 15 years, he managed the world’s largest ag trade show, World Ag Expo. With more than 1,500 exhibitors, Mr. Schulz was directly responsible for marketing World Ag Expo to exhibitors and attendees across the country and in more than 60 foreign nations. Most recently, Mr. Schulz has consulted on organization management through his own consulting firm and served as Program Director for the Central Valley Business Incubator, where he both recruited and coached entrepreneurial companies. Along with his position as CRMB President, Mr. Schulz has been appointed to the position of President and General Manager of the Raisin Administrative Committee (RAC). Co-located with the CRMB in Fresno, the RAC serves the raisin industry as the federal marketing order, created in 1949 and overseen by the United States Department of Agriculture. The 47-member Committee monitors acreage, production, quality control, an export program, and promotion and marketing research. Their efforts are funded by raisin handlers and the grower reserve pool. The RAC promotes raisin exports through the work of representatives in seven international regions. As Marketing Director, Mr. O’Fallon brings many years of experience in the food industry with him to the CRMB. Most recently, Mr. O’Fallon served for 11 years with the National Pork Board as National Marketing Manager for the Western Region. During that time, he helped promote a wide variety of pork products to the processor, food service and retail industries. Mr. O’Fallon also worked in a variety of sales and management positions for Foster Farms for 14 years and has very close contacts at all levels of the food and marketing industries. Mrs. Cookie Fritz joins the CRMB as Administrative Assistant. Mrs. Fritz has lived in Clovis for 23 years and has more than 10 years experience as an Administrative Assistant for the Affordable Housing Development Corporation. She has also worked in the property management and accounting fields and as a substitute clerical assistant for the Clovis Unified School District. Mrs. Fritz brings a well-regarded professionalism and positive attitude to the CRMB team. New Members Appointed to Pierce’s Disease/Glassy-Winged Sharpshooter Board California Department of Food and Agriculture Secretary A.G. Kawamura has appointed two new members to the Pierce’s Disease/Glassy-winged Sharpshooter Board: Marilyn Wolf of Constellation Wines US/Robert Mondavi Woodbridge and Jim Ledbetter of Vino Farms. “Both of these candidates came very highly recommended both by local growers and producers and by statewide industry representatives,” said Secretary Kawamura. “Marilyn and Jim share the board’s aim to improve and accelerate research efforts toward a solution to the complex challenges posed by this pest and disease.” Marilyn Wolf has been appointed to the vacancy created by the resignation of Jim Unti. Wolf specializes in grower relations for Constellation Wines US/Robert Mondavi Woodbridge and will represent producer/processors in the Central Valley wine grape growing region. She has been active in the wine industry for close to 25 years. Jim Ledbetter has been appointed to the vacancy created by the resignation of Frank Leeds. Ledbetter is president and partner of Vino Farms and will represent producers in the North Coast wine grape growing region. The Ledbetter family has been farming in California since the 1930s and has a legacy of leadership in agriculture with their involvement in a number of wine grape associations and initiatives in the state. The Pierce’s Disease/Glassy-winged Sharpshooter Board was established in July 2001 to support scientific research to find a cure for Pierce’s disease. An annual assessment paid by winegrape growers supports its research efforts. The board also advises the California Department of Food and Agriculture on a variety of issues pertaining to Pierce’s disease and the glassy-winged sharpshooter. While Pierce’s disease has been in California for a century or more, the establishment of the glassy-winged sharpshooter infestation in Southern California in the late 1990s suddenly thrust the disease to the top of the list of threats to crops ranging from grapes to alfalfa to stone fruits. Because of its biology and its broad range of hosts for feeding, the pest is particularly well-suited for spreading the bacteria that cause Pierce’s disease.