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Newsletter | Past
Issues
July,
2004
In This Issue:
Welcome
to the Ohio Ag Manager
Bankruptcy:The
Option of Last Resort
Census
Profile of Ohio Farmers
Drift
Management
Employing
Minors on the Farm
Farm
Management Topics at Farm Focus
Ohio
Farms:More Individuals, Less Partners and Corps
Subscribing
to the Ohio Ag Manager Electronic Newsletter
Welcome
to the Ohio Ag Manager
Chris Bruynis-
Extension Educator, Wyandot County
Welcome!
The Ohio Ag Manager is designed to deliver current information
relevant to the management of agricultural businesses
in short, succinct articles. The newsletter design concept
is to provide managers with 8 to 10 articles on issues
and trends that could impact the agricultural industry.
Each of these articles would be linked to complete reports
or websites containing more detailed information. This
design would allow for the reader to retrieve details
only on topics and issues that are important to the
management of their agribusiness.
The
Specialists and Extension Educators at The Ohio State
University encourage you to become involved in this
Newsletter. The resources of the Department of Agricultural,
Environmental, and Developmental Economics and The Ohio
State University Extension are being made available
to you through this newsletter. You can assist us in
providing you with the information you need by emailing
questions to ohioagmanagerinfo@ag.osu.edu
. Our goal is to deliver the information you need
to manage your agribusiness.
We
hope you find this newsletter a useful source of management
information!
Return
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Bankruptcy:The
Option of Last Resort
Donald J. Breece PhD, OSU Extension Farm Management
Specialist
Low yields in areas of the state most affected by past
weather problems, or expanding dairy operations during
recent years of extremely low prices, have lead some
to consider bankruptcy. Certainly, businesses
unable to service all indebtedness, facing pressure
from creditors and possible legal action, may seek protection
under the Bankruptcy Code, but only as the last resort.
Voluntary workouts should first be considered, to include:
restructure of debts or repayment of loans over a longer
term, partial sale of assets, interest only payments,
reduction of interest rates, or forgiveness of part
of the debt. These negotiations may include additional
collateral or other credit enhancements provided to
the lenders. When all else fails, the Bankruptcy
Code offers the following choices: Chapter 7 liquidation,
Chapter 11 reorganization, or the streamlined version
of reorganization for family farms, Chapter 12.
Chapter 12 is modeled after the Chapter 13 bankruptcy
for wage earners and was added to the Code in 1986.
It is important to have a cash flow plan well thought
out before filing a Chapter 12 because of the shorten
time lines provided by the Code. Within 90 days
of the filing of a Chapter 12 petition, a repayment
plan must be presented to the Bankruptcy Court.
Except for cause, confirmation hearings must conclude
within 45 days after filing of the plan. The University
of Minnesota Extension Service has an excellent series
of fact sheets, for example "Chapter 12 Reorganization,"
(including a listing of the fact sheet series). http://www.extension.umn.edu/distribution/businessmanagement/DF7301.html
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Census
Profile of Ohio Farmers
Stan
Ernst, OSU AED Econ.
The average Ohio farmer is a little bit older at 53.8
years old and more likely to claim farming as their
primary occupation, according to just-released results
of the 2002 USDA Agriculture Census. We also see a continuation
of the trend toward more farms at the top and bottom
of the size continuum and fewer in the middle. Based
on value of annual farm production, most (73%) operations
are "small" at less than $25,000, with 37% of all farms
producing $2,500 or less. All this, of course, results
from the USDA definition of "farm" as an enterprise
selling $1,000 or more of farm products, but the trend
toward small farm operations as rural residences and
parttime enterprises continues nonetheless. On the other
end of the scale, 1,196 of Ohio's 77,797 farm operations
produced more than $500,000 of product in 2002. In case
you're wondering, Ohio's 14.6 million acres of farmland
is down about 1% from 1997, and average farm size held
at 187 acres, based on growth in numbers of farms below
the average and 31 percent growth in farms exceeding
2,000 acres. For more details on the 2002 Ohio Ag Census,
see http://www.nass.usda.gov/oh/
.
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Drift
Management
Andy
Kleinschmidt, Extension Educator, Van Wert County
Gene
McCluer, Extension Educator, Hardin County
A
wet spring with limited time for spraying can lead farm
managers to experience increased stress over fields
overgrown with weeds. Limited time for spraying may
force applicators to spray when conditions are too windy.
Drift can result in the movement of pesticides beyond
the target area. Ohio Pesticide Law provides language
to discourage drift. Ohio Pesticide Law states it is
unlawful to operate in a negligent manner (Ohio Pesticide
Law, Section 921). Drift is also a label violation regardless
of intent. Pesticide labels and Ohio Pesticide Law are
effective in conveying that drift is not acceptable.
Pesticides
used on the farm may create liability issues when misapplied
or if off-site drift occurs. Any applicator misapplying
pesticides could be subject to administrative penalties,
criminal liability, or civil liability. The penalty
for each instance of misapplication is determined on
a case-by-case basis. Minor infractions may receive
only a warning, while misapplication resulting in environmental,
property, or personal health injuries will likely receive
a stiffer penalty. The Ohio Department of Agriculture,
in cooperation with the county prosecutor, can bring
criminal charges against applicators for misapplication
of pesticides. When one party believes that another
party has harmed property by the misuse or misapplication
of pesticides, the harmed party may also bring a civil
lawsuit for damages.
It
is impossible to determine how much drift occurs from
one field to another across Ohio . Drift incidents may
range in damage from a few edge rows to several acres.
In most cases, the incidents are resolved locally by
the parties involved. Communication is the key to resolving
drift issues. Early recognition of the problem and immediate
communication with the applicator can lead to an amicable
resolution. Waiting until harvest to talk to the applicator
because you wanted 'to see whether there was any damage'
may not provide the best outcome to the situation. Addressing
the problem early with open communication can go a long
way to preventing problems later.
In
some cases there may be as many as three parties involved
in the spray situation: a custom applicator/operator
who applied the pesticide, a farmer who is renting the
land, and a landowner. The general rule of law in Ohio
is that the party who applied the pesticide will be
responsible for harm caused by misuse or misapplication.
In most cases the applicator responsible for drift will
have their insurance cover any damage. If the applicator
chooses not to use insurance, be sure to arrive at mutual
agreement on: 1) the damaged area, and 2) method of
comparing damaged area to undamaged area (yield monitor,
weigh wagon, scales, etc.), and 3) grain price. For
more information about pesticide liability, consult
an attorney, see an OSU Extension fact sheet online
at http://ohioline.osu.edu/als-fact/1005.html
or check the Ohio Revised Code §921.
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Employing
Minors on Your Farm
Chris
Zoller, Extension Educator, Tuscarawas County
(click
here to read a PDF version of this article)
Now
that school is out of session students may be looking
for a summer job on your farm baling hay, milking cows,
picking vegetables or assisting with many of the other
day-to-day tasks. Students are often eager to work,
but there are some precautions you as the employer must
be aware of prior to hiring. The following paragraphs
will help answer some of the more common questions.
Who is Covered?
The
employment of minors under age 16 is subject to federal
requirements set by the Fair Labor Standards Act and
the agriculture
requirements
are less than for many other industries. In 1967, the
U.S. Secretary of Labor determined that certain jobs
in agriculture are hazardous to children less than 16
years of age. However, like many other federal regulations,
there are exemptions. These include the employment of
children less than 16 years of age when employed on
farms owned or operated by their parents or guardians
and those who have completed an approved tractor and
machinery certification course.
In
addition to federal hazardous occupation regulations,
there are also state regulations. For most Ohio laws,
a person under the age of 18 is considered a minor and
the Ohio Revised Code prohibits minors from working
in certain hazardous jobs related to agriculture. The
Ohio list of hazardous occupations is the same as the
federal list, but the Ohio code sections and related
regulations say the Ohio hazardous occupation list applies
to those under 16 years of age . There are many
sections of the Ohio Revised Code concerned with the
employment of minors that do not apply to minors employed
on farms. These include obtaining an age and schooling
certificate (unless you employ children of migrant workers);
keeping a list of minor employees; and paying the minimum
wage.
Hazards
Occupations in Agriculture:
Although
it would be easier to list the non-hazardous jobs in
agriculture, below is a list of those jobs declared
hazardous by the U.S. Secretary of Labor. Because of
space limitations, the full details of each hazardous
occupation can not be provided here. Please see a copy
of the "Ohio Farm Labor Handbook" for complete details.
Jobs designated as hazardous to youth under 16 years
old include:
•
Operating a tractor of more than 20 PTO horsepower,
or connecting or disconnecting implements from such
a tractor.
•
Operating any of the following:
•
Corn picker, combine, hay mower, forage harvester, hay
baler or potato digger.
•
Feed grinder, grain dryer, forage blower, auger conveyor
or the unloading mechanism of a non-gravity type self-unloading
wagon or trailer.
•
Operating a trencher, earth moving equipment, fork lift,
or power-driven circular, band or chain saw.
•
Working in a yard, stall or pen occupied by a bull,
boar or stud horse; or sow with suckling pigs or cow
with newborn calf.
•
Felling, bucking, skidding, loading or unloading timber
with butt diameter of greater than six inches.
•
Working on a ladder at a height of more than 20 feet.
•
Driving a bus, truck or automobile or riding on a tractor
as a passenger.
•
Working in a forage, fruit or grain storage facility;
an upright silo within two weeks after silage has been
added or when a top unloading device is operating; a
manure pit; or a horizontal silo when operating a tractor
for packing purposes.
•
Handling or applying pesticides with the words or symbols
"Danger", "Poison", "Skull and Crossbones" or "Warning"
on the label.
•
Handling or using blasting agents.
•
Transporting, transferring or applying anhydrous ammonia.
When
Can Minors Work?
Under the federal regulations, minors under 16 years
of age may not be employed during school hours unless
employed by their parent or guardian. Unless provided
a special exemption, minors are subject to the following
restrictions:
•
No person under 16 years of age is to be employed:
•
during school hours
•
before 7:00am or after 9:00pm from June 1 to September
1 or during any school holiday of five school days or
more duration, or after 7:00pm at any other time.
•
for more than three hours a day in any school day.
•
for more than 18 hours in any week while school is in
session.
•
for more than eight hours in any day which is not a
school day.
•
for more than 40 hours in any week that school is not
is session.
•
No person under 16 years of age is to be employed more
than 40 hours in any one week nor during school hours
unless the employment is incidental to a state approved
program.
•
No minor is to be employed more than five consecutive
hours without allowing the minor a rest period of at
least thirty minutes.
What
Records Should I Keep?
The Federal Regulations require employers of minors
under 16 years of age to maintain and preserve records
with the following information about each minor employee:
•
Name in full.
•
Place where the minor lives while employed.
•
Date of birth.
•
Proof of needed parental or guardian signatures.
Keep
in mind that minors employed by a parent or guardian
are exempt from these record keeping requirements.
The
Ohio Revised Code exempts agricultural employers from
record keeping provisions related to minors. However,
the Ohio Revised Code requires an agreement as to wages
for work to be performed be made between the employer
and a minor before employment begins. For the protection
of the employer, this agreement should be in writing
and signed by both parties.
The
state agency responsible for enforcement of the Ohio
Code as it relates to prohibited jobs for minors is
the Division of Minimum Wage, Prevailing Wage and Minors,
Department of Industrial Relations. You may contact
them at 614-644-2239.
It
is your responsibility as the employer to make sure
you follow the rules and keep your farm a safe place
to work.
(This
article was written from materials contained in Ohio
State University Extension Bulletin 833, Ohio Farm
Labor Handbook, written by Dr. Bernie Erven and
Russell Coltman, The Ohio State University. Copies of
the Ohio Farm Labor Handbook are available
for purchase through your local county Extension office).
Return
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Farm
Management Topics at Farm Focus
Andy
Kleinschmidt, Extension Educator, Van Wert County
Gary
Prill, Extension Associate/Farm Focus Coordinator, Van
Wert County
Farm
Focus ( http://farmfocusshow.com/
) will celebrate its 30 th anniversary this year.
The two-day event will be held from 8 a.m. to 5 p.m.
on Friday, July 30 and from 8 a.m. to 4 p.m. on Saturday,
July 31. The Farm Focus show is held on the north side
of Van Wert off U.S. 30 and east of State Route 127,
on the Marsh Foundation Farms and Campus. This year's
show has several farm management-related speakers from
marketing to livestock.
Alan
Brugler, president of Brugler Marketing and Management,
will bring his expertise to a Marketing Panel at Farm
Focus at 1 p.m. Friday, July 30. Brugler will join Mike
Zuzolo of Risk Management Commodities, Inc. as they
discuss current and future market issues. Dale Minyo,
well-known broadcaster for ABN, will serve as the session
moderator. Prior to joining Brugler Marketing and Management,
Alan Brugler was the director of Analysis and Product
Research for the AgDaily News Division of Data Transmission
Network (DTN) and was also a market strategist for DTN
Ag.
Doug
Tenney, who authors a monthly marketing column for The
Ohio Country Journal, will appear in the Features Tent
at Farm Focus at 1 p.m. Saturday, July 31. Tenney has
many years of experience in grain marketing and has
been speaking on marketing at Ohio State University
Extension meetings and area adult farmer groups. Tenney
will address farm marketing issues.
Changes
are coming in the way we identify animals. Although
some livestock have had identifications or pedigrees
that track their background, momentum is in motion to
add others. A more uniform and standard system is planned.
Gary Wilson, a New Concord, Ohio Angus cattle producer,
will be speaking at 11 a.m. Friday, July 30 in the Farm
Focus Family Features Tent. His topic will be "The U.S.
Animal ID Plan." This session will provide the latest
developments in livestock identification. Wilson currently
serves on the USDA's National Animal Identification
Development Team as co-chairman of the Cattle Industry
Working Group.
For
more information on Farm Focus please visit http://farmfocusshow.com/
or call 419-238-1214.
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Ohio
Farms: More Individuals, Less Partners and Corps
Stan
Ernst, OSU AED Econ.
The vast majority of Ohio farms are operated by individuals
or families, according to just-released results of the
2002 USDA Agriculture Census. Some 91 percent of the
state's 77,797 farms fit that category, an increase
over the 1997 census despite a 1.2 percent decrease
in farms during the same period. Farm partnerships declined
nearly 35% and incorporated farms dropped 15% to 1,843
farms. These business structure decisions likely reflect
continued growth in the number of small and parttime
farms in the Buckeye State. For more details on the
2002 Ohio Ag Census, see http://www.nass.usda.gov/oh/
.
.
Return
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Subscribing
to the Ohio Ag Manager electronic newsletter
David
Marrison-Extension Educator, Ashtabula County
Farm
business managers, agribusiness managers and Extension
Agents are encouraged to subscribe to receive the Ohio
Ag Manager electronic newsletter at the beginning of
each month. Interested parties can subscribe electronically
to this newsletter by sending a blank e-mail message
to: ohioagmanager-on@ag.osu.edu.
Contact David
Marrison if you experience problems subscribing.
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Readers can
subscribe electronically to this newsletter by sending
an e-mail message to: ohioagmanager-on@ag.osu.edu.
A successful subscription message will receive by an
automatic reply from the listserv. Contact your local
Ohio State University Extension Office or e-mail dmarrison@ag.osu.edu
if you have problems subscribing.
Editors: Chris
Bruynis, Bill Hudson & David Marrison
Information
presented above and where trade names are used, they
are supplied with the understanding that no discrimination
is intended and no endorsement by Ohio State University
Extension is implied. Although every attempt is made
to produce information that is complete, timely, and
accurate, the pesticide user bears responsibility of
consulting the pesticide label and adhering to those
directions.
All
educational programs conducted by Ohio State University
Extension are available to clientele on a nondiscriminatory
basis without regard to race, color, creed, religion,
sexual orientation, national origin, gender, age, disability
or Vietnam-era veteran status.
Issued
in furtherance of Cooperative Extension work, Acts of
May 8 and June 30, 1914, in cooperation with the U.S.
Department of Agriculture, Keith L. Smith, Director,
Ohio State University Extension.
TDD # 1 (800)
589-8292 (Ohio only) or (614) 292-1868
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