North Carolina s Changing Agriculture

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1 North Carolina s Changing Agriculture January 20, 2015 Richard C. Reich, PhD. Assistant Commissioner NC Department of Agriculture & Consumer Services

2 North Carolina Agriculture 100 Years Ago and Today 1910 Farms 253,725 Acres 22,439,129 Value/Acre $ Cattle 700,861 Dairy cows 308,914 Mules 174,711 Hogs 1,227,625 Corn 2,459,457 Cotton 1,274,404 Tobacco 95, ,218 8,414,756 $ 4, ,717 45,960 9,083 8,901, , , ,443

3 NC Farm Numbers Farms Farms Source: USDA, NASS

4 Million Acres NC Land in Farms Land in Farms Farm land accounted for 62 % of the state s total 31.4 million acre land area in 1950 In 2012, farm land accounted for 27% 0 Source: USDA, NASS

5 Age Average Age of Principal Operator '02 '07 12 Source: Census of Agriculture, 2012 Census Year

6 North Carolina s Number One Industry Agriculture is a $78 billion industry in NC Agriculture and Agribusiness account for 17% of the State s economy

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9 First Tobacco Sweet Potatoes Second Poultry & Eggs Hogs & Pigs Turkeys Christmas Trees Trout Third Cucumbers (Processing & Fresh Market) Fourth Upland Cotton Broilers Strawberries: Fresh Market Tomatoes: Fresh Market Fifth Greenhouse & Nursery Peanuts Bell Peppers Burley Tobacco Catfish Squash NC s National Rank

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11 Pick Your Own Operations 493 Certified Farms/Roadside Markets 874 Community Supported Agriculture 126 Local Farmers Markets 206

12 Innovative Marketing Campaigns for Local Food Sustaining the livelihood and heritage of the Carteret County fishing industry through public marketing and education. Working to support Haywood County farmers by promoting high-quality farm products to community-minded customers A certification program that wants to make sure that farm products grown, raised and made in the Piedmont Region are clearly identified and promoted

13 On Farm Animal Value-Added Rapid Growth in small grower poultry slaughter (119) Emergence of Grass-fed beef, pastured pigs, free-range chickens Artisan Dairies (52 cheese makers) More farmers registered as meat handlers (800+)

14 North Carolina Dairy Industry 290 dairies in NC - Including 8 organic dairies - Average of 184 cows/dairy - Produced 934 million pounds of milk in 2013 Inspected farmstead cheese makers are stable

15 Agritourism NCDA&CS Agritourism Office established in offers marketing resources with NCSU 667 agritourism farms in NC, representing 23 categories listed at agritourism farms belong to the North Carolina Agritourism Networking Association (ANA)

16 Snapshot of the NC Wine Industry Early 1980 s 4 Wineries Home to 3 American Viticultural Areas: Yadkin Valley, Swan Creek and Haw River Annual economic impact is $1.28 B with 7,600 jobs 125 wineries and 400 vineyards on 1,800 acres

17 Housing Density, North Carolina, 1940 Source: Conservation Trust of NC

18 Housing Density, North Carolina, 2000 Source: Conservation Trust of NC

19 Housing Density, North Carolina, 2030 estimated Source: Conservation Trust of NC

20 Agricultural Development and Farmland Preservation North Carolina has lost 1.7 million acres of farmland since Total Grant Amount Awarded $17.5 million -> $58 million Over 712,500 acres protected in Voluntary Ag Districts Voluntary participation 86 counties Source: USDA-NASS

21 North Carolina exported to over 175 countries in 2013 Valued at over $4.25 Billion

22 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- NC Sweet Potato Exports United Kingdom Netherlands Canada Belgium All Others Source: WiserTrade-NC- All Partner Countries- HS Code 07

23 2014 NC Ag Research Unique partnership 533 research projects on stations 113 NCSU, NCA&T and USDA faculty members conducting research projects 153 Graduate students conducting research 1,917 acres in research

24 2013 General Assembly appropriated $5 million for upgrade of equipment and technology Purchasing 136 new pieces of equipment, including 65 new tractors; sprayers, planters, irrigation systems, etc. New Equipment for Research Stations

25 2013 General Assembly allocated funds to support bioenergy development from agriculture and forestbased products. Focus on R&D for dedicated feedstocks Leverage current technology and identify existing gaps A competitive grant program of $1,000,000

26 Impact of Biotechnology Wide adaptation of GE crops since % of US soybeans are GE comparable in NC 94% of US cotton is GE; 77% for Bt 88% of US corn is GE; 67% for Bt USDA- Biotechnology & Regulatory Services 335 notifications and permitted field inspections were conducted in NC during Crops include: corn, soybeans, cotton, tobacco, canola, wheat, potato, trees, sugar cane, oilseed rape Future developments: environmental stress tolerance, enhanced biofuel crops, trees Source: USDA Economic Research Service

27 Specialty Oilseeds and Local Feed Grain High Uric Acid Rapeseed ~ 16,000 acres Clary Sage ~ 25,000 acres Grain Sorghum up to 100,000 acres Increased grain sorghum production is for NC animal feed.

28 FSMA Proposed Rules Produce Safety Preventive Controls for Human Food Preventive Controls for Food for Animals Foreign Supplier Verification Program Third Party Accreditation Intentional Adulteration Sanitary Transportation of food

29 Unmanned Aerial Vehicles Potential ag uses include crop scouting, yield projections, moisture monitoring, etc. Currently being used by hobbyist ; no commercial use approved in N.C. On hold until FAA clarifies rules to integrate these systems into U.S. airspace.

30 AGRICULTURAL WATER RESOURCES ASSISTANCE PROGRAM (AgWRAP) Implement BMPs to conserve and protect water Increase water use efficiency Increase water storage and availability for Ag purposes. FY2012: $1,000,000 FY2013: $500,000 FY2014: $1,000,000

31 AGRICULTURAL WATER RESOURCES ASSISTANCE PROGRAM Irrigation Well Agricultural pond sediment removal Agricultural water supply/reuse pond

32 New Peak-season Soil Fees Historically, about two-thirds of all soil samples processed each year arrive at the laboratory between December and March. Loading Dock Bulk Storage Room Hallway

33 Peak-season Soil Fee Authorized by Appropriations Act of 2013 $4 for in-state soil testing during peak season Dec. 1 through Mar Soil Samples Analyzed by Month New receipts allocated to NCDA&CS to help alleviate testing delays. In FY2014, ~$147,000 collected in peak-season soil fees FY2011 FY2014

34 Summary NC Agriculture has continued to grow and diversify. Markets for specialty crops, value-added products, agritourism and exports have been expanding. Increased support for local farms and purchases of local food have provided many new direct markets. Continued urban development, population growth and bioenergy demands must be balanced with our ongoing need for farmland and water for agriculture. Research is still the key to better productivity and sustainability for our future.

35 Contact Information Dr. Richard C. Reich, Asst. Commissioner North Carolina Department of Agriculture & Consumer Services 1001 Mail Service Center Raleigh, NC

36 Dig It! The Secrets of Soil.. is coming to Raleigh!!!! May 16 August 16, 2015 Washington, DC July Jan 2010 Omaha, NE Oct - Dec 2010 Spokane, WA Feb - Sept 2012 Minneapolis, MN Nov July 2013 Sacramento, CA May Mar 2015 Raleigh, NC May - Aug 2015 Now is the Time!!