shop online at www.missourivalleyshopper.com March 18, 2014 • Page 19 Financing beginning farmers and ranchers PIERRE, S.D.- The South Dakota Value Added Finance Authority (VAFA) approved three Beginning Farmer Bond applications totaling almost $1.5 million at a meeting on Thursday, Feb. 27, in Brookings. The Beginning Farmer Bond program through the SDDA is available for eligible beginning farmers or ranchers to purchase agricultural land at lower interest rates. "To be eligible for the program, an applicant must be at least 18 years old, a resident of South Dakota, have a net worth under $400,000 and own less acres than 30 percent of the county median," says Terri LaBrie, finance adminis- trator for SDDA. "The limit on a beginning farmer bond is $509,600." Typically, the Beginning Farmer Bond program works through a local lender. However, if retiring farmers are interested in passing on their land to a beginner farmer, the interest off that contract sale is federally tax exempt, providing substantial savings to the seller. Unfortunately, there are regulations prohibiting this type of transaction with closely related parties such as parents or grandparents. "The bond program is a great way for a beginning farmer to buy land. However, it's also advantageous for a retiring farmer that would be willing to enter into a contract for deed or an individual investor looking to help finance a beginning farmer," says LaBrie. The SDDA administers this program through VAFA. The board meets monthly and reviews the applications and issues the bonds for approved projects. Board members include: Bob Hull, Sisseton; Mark Gross, Sioux Falls; Bill Hansen, Centerville; Chuck Jepson, Ft. Pierre; Jim Doolittle, Belle Fourche; Marcia Hendrickson, Chancellor; and Nathan Jensen, Beresford. For information on the financial programs offered through SDDA, please contact one of the board members or Terri LaBrie at 605.773.4026 or terri.labrie@state.sd.us. Agriculture is South Dakota's No. 1 industry, generating over $21 billion in annual economic activity and employing more than 122,000 South Dakotans. The South Dakota Department of Agriculture's mission is to promote, protect, preserve and improve this industry for today and tomorrow. Visit us online at http://sdda.sd.gov or find us on Facebook at https://www.facebook.com/S DAgDept and Twitter @SDAgriculture. Challenges facing farmers today and tomorrow Though farming was once big business in the United States, by 2012 less than 1 percent of Americans were professional farmers. Many challenges face today's farmers, many of which are largely unknown to the general public. Many people have an outdated view of a farm as a small, family-owned and operated parcel of land where livestock is raised in open pens and crops are hand-harvested when ripe. The reality is that modern-day farms have had to overhaul operations to meet demand and remain competitively priced while adapting to the ever-changing ways technology infiltrates all parts of life. Each of these factors present obstacles for today's farmers. Technology Rural farming communities are expected to make an effort to integrate modern technology into an industry that has been around for centuries. But such a transition in rural areas, where communications systems may not be as up-to-date as those in urban areas, is not always so easy. According to the Manitoba Rural Adaptation Council, a shift from a resourcebased to an information- based economy, compounded by the rapid introduction and expansion of new technology in the workplace, has altered farm operation and the skills in demand. Older workers who have been schooled in one way of agriculture may have a significant impact on labor supply and the vitality of farming as a career. Younger adults who are knowledgeable in technology may no longer seek out agricultural careers. Decrease in farming as an occupation The United States Environmental Protection Agency says that only about 960,000 Americans claim farming as their principal occupation. As that figure has dwindled, the average age of farmers continues to rise, as the Bureau of Labor Statistics notes that roughly 40 percent of the farmers in this country are 55 years old or older. This has led to concerns about the long-term health of family farms throughout the United States. Environmental concerns Many farmers have come under scrutiny for how farming impacts the environment. A growing emphasis on sustainability and conservation has led many people to protest certain farming practices. Protesters claim that certain practices, such as raising livestock, can pollute water, while the use of fertilizers and chemical pesticides is bad for the environment. Many farmers, however, have altered their methods to be more environmentally friendly and self-sustainable in the process. Climate change is another environmental issue farmers must deal with. Strong storms and severe droughts have made farming even more challenging. Financial fall-out The ongoing recession of the last half-decade has also affected farmers. In November of 2012, the United States Bureau of Labor Statistics indicated that the unemployment rate within the agriculture, forestry, fishing, and hunting industries was at 13.6 percent, far higher than the national unemployment rate. As a result, many farm families have found themselves stuck between a rock and a hard place, as rising costs for equipment and technology are being coupled with decreasing profits and rising unemployment. Further complicating matters is competition from corporations and international food producers who have made it difficult for family farmers to turn a significant profit. Many family farmers rely on loans and lines of credit to survive, but thanks to changes in the financial sector that saw banks become less willing to extend lines of credit, some farmers are facing bankruptcy. Though it can be easy for those who do not work in the agricultural industry to overlook the struggles facing today's agricultural professionals, a greater understanding of those struggles and the challenges that lay ahead can benefit the industry and its employees down the road. ? GMOS From Page 18 By modifying plant genetics, a scientist can isolate a particular gene that makes a crop drought-tolerant and increase its potency to make that crop thrive better in drought-stricken areas. Genes from one plant can also be transferred to another plant to create desired traits. If a particular gene is unsavory to certain insects, this gene can be put into other crops to deter those insects. In the past, crops were bred to feature specific, desired traits with the hope that breeding two different flowering plants to form a hybrid would bring out the best features in both species. However, the process is time-consuming and genetic modification in the laboratory generally produces faster, less expensive results. Proponents of foods containing GMOs say that desired traits can be produced in these foods more readily, which is advantageous to the agriculture industry by creating larger, more tolerant crops. In addition, GMOs may help crops become more resistant to disease, reducing reliance on herbicides and pesticides needed to fight disease. GMOs also may help certain crops grow better in colder climates and where soil conditions are salty. But some environmental activists, public interest groups and even religious organizations argue tampering with foods is not proper. In addition, such opponents say the potentially harmful environmental and medical impact of laboratory-built crops warrants concern. In 2000, a study published in the journal Nature found that pollen from a genetically modified corn crop called B.t. corn caused high mortality rates in monarch butterfly caterpillars. Unintented harm to other organisms living in close proximity to GMOs is a significant concern. In addition, there is concern that foods that contain GMOs and those that do not may cross- breed and create superplants. Such plants may become disease- and herbicide-resistant, thusly choking out the intended crops. In June 2013, Monsanto Co., the world's largest seed company, was sued by an environmental group and a Washington farm over claims it failed to take steps to prevent genetically altered wheat from contaminating regular wheat after Monsanto field-tested the modified wheat in 16 states. Another area of concern is the health implications of introducing foreign genes into foods. The effect of such practices on the human body are largely unknown. Unexpected allergic reactions or even physical changes in the body may occur. Evidence as to the safety of GMOs is insufficient. Many European nations have backed away from growing crops containing GMOs. Things in North America aren't as cut and dry. Efforts are ongoing to have GMO ingredients listed on the labels of packaged foods produced in the United States, but no such labeling is presently required. That's disconcerting to some, as there is a high likelihood that many of the packaged foods sold in the U.S. contain some GMOs. 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