Ag Technology Draws Investment Interest

Cindy ZimmermanFinancing, General

Agriculture 2.0 is drawing big interest from Silicon Valley venture funds, according to Illinois-based Open Prairie Ventures.

“Current projections are that the food supply will need to double over the next 30 years to feed the ever-increasing demands of the global population,” said Jim Schultz, founder of Open Prairie Ventures. “If we are going to increase our food supply by 100% in the next thirty years, this demand for growth will be fueled by safe agricultural technologies that increase crop yields on less land.”

Schultz believes that technological improvements in the last thirty years which have improved agricultural productivity are only the beginning. Among the most important areas Open Prairie Ventures has identified for future technology developments in agriculture are Quality Control Processes; New market developments; Reduced labor costs; Improved production processes; Reduced environmental damage; and Reduced energy consumption.

Robust RTK Signals Expand Across Corn Belt

Kurt LawtonGPS, Industry News, Satellite, sustainability, Variable rate

Check out a good story by Farm Industry News that offers the latest look at RTK signal correction across the Midwest.

The umbrella of real-time kinematic (RTK) correction signals that covers much of the Corn Belt will be larger and more robust by the time the 2011 planting season rolls around. As a result, growers in many geographies will have multiple correction signal options for driving RTK navigation systems.

Going into 2010, most of the heart of the Corn Belt was covered by either radio or cellular systems, or both. But there were coverage gaps. By 2011, a coverage gap in Illinois will have been plugged, and coverage in Ohio, Indiana, South Dakota, Nebraska, Kansas, Missouri and other states will have been beefed up.

The improved coverage is a result of build-outs of both traditional radio-based systems and newer cellular delivery systems, which distribute RTK corrections via the Internet through cellular communications networks. Unlike in recent years, when additions to the cellular delivery system were dominated by new and expanding state department of transportation (DOT) systems, this season’s new cellular entries are systems dedicated to agricultural users.

Read on…

It’s 100% Wearable

Melissa SandfortAgricultural Anthropology

Before I buy a shirt, I look at the label to see if it’s 100% cotton. If it is, it usually requires ironing. I think I have an iron and ironing board somewhere in the house. Maybe. 100% cotton means it stays on the rack and I look for another shirt. I bet when Grandpa’s mother made a sweater out of wool, Grandpa didn’t say, “I don’t like to wear 100% wool. It’s scratchy. Can you make a different one?”

And his mom made the sweaters entirely by hand, starting with carding. A pair of cards (pictured here) is used to brush the wool between them until the fibers are more or less aligned in the same direction. The aligned fiber is then peeled from the card as a rolag and used for spinning, which then in turn, is used to make clothing.

To card, the person carding sits with a card in each hand. The card in the non-dominant hand rests on a leg. A small amount of fiber placed on this card and the other card pulled through the fiber. The moving card separates, straightens, and aligns the fibers. This step, repeated many times, transfers small amounts of the wool to the moving card. Once all the wool has been transferred, the cards are swapped hand-for-hand and the process repeated until all of the fiber is sufficiently aligned and satisfactorily free of debris at which time a rolag is peeled from the card.

They now have drum carders, cottage and commercial carders so people don’t have to do this by hand. I bet Grandpa’s mother would’ve enjoyed the extra free time. To think I don’t even remember how to turn on my sewing machine.

Until our next history lesson…

USDA Floating on Microsoft Cloud

Cindy ZimmermanUSDA

The United States Department of Agriculture (USDA) announced last week that it is on the verge of going live with a commercial cloud service offering for its Enterprise Messaging Service (EMS) which includes email, web conferencing, document collaboration, and instant messaging. USDA is the first cabinet-level agency to move its e-mail and collaboration applications to the “cloud,” a rapidly growing form of computing involving flexible, scalable services delivered over the internet.

USDA awarded the contract to Dell earlier this year for Microsoft Online Services in an effort to streamline agency messaging, reduce costs and improve efficiencies that build on existing infrastructure and allow USDA to extend its on-premise software investments agreements to the cloud solution.

Over the past six months USDA has worked closely with Dell and Microsoft on a comprehensive set of plans and actions required to successfully migrate 120,000 plus users to the cloud solution. USDA expects to begin moving employees within the next four weeks and has granted Federal Information Security Management Act (FISMA) Authority to Operate (ATO) for the Microsoft cloud infrastructure, certifying that it provides a trustworthy foundation for operations.

Read more here.

Search eXtension.org

Cindy ZimmermanGeneral

Local county extension agents used to be the main source of information for farmers and ranchers in any particular area whenever they had questions about the latest research and technology. These days, it’s getting more commonplace to surf the internet from the farm and get information from all over the world, but the trick is often sorting out the wheat from the chaff.

Combining the county agent as the traditional source of information with the internet is eXtension.org, an interactive learning environment offering researched-based knowledge from experts at 74 different universities across the country. The site includes resource areas from farming to community planning and features professional educators with expertise in those topics to provide online learning opportunities.

Check it out – eXtension.org,.

Year-End Tax Deductions on Equipment Buys

Kurt LawtonAg Leader, Education, Equipment, Financing, Insights Weekly, sustainability

Insights WeeklyWith the end of the year upon us, it’s always wise to check with your tax professional to discuss possible year-end investment strategies on equipment purchases.

Gary J. Hoff, agricultural economist, University of Illinois, says that legislation passed by Congress and signed by the President on September 27, 2010 will reduce the tax bite for many farmers this year. Here’s a look at one of the provisions of the Small Business Jobs Act of 2010 (SBJA) that may have a major impact on small businesses including farmers, which affects the amount of self-employment tax liability for 2010.

Section 179 Expensing Election. Congress has once again increased the IRC §179 expensing election. Instead of a maximum deduction of $250,000, Congress has increased the deduction to a maximum of $500,000 for tax years beginning in 2010 and 2011 only. The deduction is reduced if qualifying purchases exceed $2 million.

Farm equipment and all of the other assets that qualified for the deduction in the past continue to qualify. SBJA also added three new categories for 2010 and 2011.Two of the new categories do not apply to a farm return; however, one may be applicable.

The expensing election now applies to qualified leasehold improvement property. This is any improvement to an interior portion of a building that is nonresidential real property. Either the lessee or the lessor can make the improvement to the portion of the property included in the lease. The portion must be occupied exclusively by the lessee. The improvement will only qualify if the property has been in service more than three years. Certain improvements do not qualify, such as an enlargement of the building, a structural component benefitting a common area, and an expense attributable to the internal structural framework of the building. In addition, the lease cannot be with a related party.
While the §179 maximum deduction is $500,000, the maximum deduction for the qualified leasehold improvements is limited to $250,000.

50% Bonus Depreciation. The 50% bonus depreciation deduction for qualifying property was set to expire at the end of 2009. However, SBJA extended the deduction for 2010. The qualifying property must be placed into service before January 1, 2011. No change was made to the property qualifying for the 50% bonus.

Visit these links for more information.

University of Illinois ‘the farm gate’ blog: “Income Tax Changes for Farmers: Are You Ready”
http://www.farmgate.illinois.edu/archive/2010/09/income_tax_chan.html

DTN Story: Rev Up Year-End Tax Deductions
http://www.dtnprogressivefarmer.com/dtnag/common/link.do;jsessionid=04AF146BC6F937E0E7A7F190288D8B18.agfreejvm2?symbolicName=/free/news/template1&paneContentId=2003&paneParentId=70104&product=/ag/free/home/quickview&vendorReference=0702DA77

Farm Industry News: 100% equipment tax deduction deadline nears.
http://farmindustrynews.com/farm-recordkeeping/100-equipment-tax-deduction-deadline-nears

Check out DTN online seminars here:
http://about.dtnpf.com/ag/news%5Fevents/

Iowa State University Center for Ag Law and Taxation – Latest Newsletter here:
http://www.calt.iastate.edu/

IRS Publication 225 (2010) – Farmer’s Tax Guide
http://www.irs.gov/publications/p225/index.html

IRS Section 179 Expense Deduction – Farmer’s Tax Guide
http://www.irs.gov/publications/p225/ch07.html#en_US_2010_publink1000218173

Ag Leader dealer locator
http://www.agleader.com/dealer-search/

DeLorme Selects New President and CEO

Kurt LawtonCompany Announcement, GPS, Software

DeLorme, a leader in mapping, GIS, and GPS technology and maker of XMap for agriculture, announces a leadership change.

Mike Heffron has been named President and Chief Executive Officer, effective January 4, 2011. Heffron also will serve on the Board of Directors. He will be the first person to hold the office of CEO other than Company founder and owner David DeLorme, who will continue as Chairman of the Board of Directors.

“Mike has a truly exceptional professional background and is the ideal person to lead us forward as we solidify DeLorme’s role as a game-changing provider of world-class geographic data and innovative GPS hardware,” said David DeLorme. “His extensive background as a senior executive in the government contracting space provides DeLorme with a skill set that will be critical as we look to expand our footprint in both the U.S. government and NGO markets,” added DeLorme.

Says Heffron, “I am looking forward to the opportunity to work closely with David, the board, and the whole DeLorme team. They are as good a group of professionals, dedicated to the success of the company and each other, as I have met throughout my career. The opportunity to lead and be a part of the DeLorme team is an honor and privilege for me.”

Heffron was most recently President of the EI&S Operating Group of global defense, security and aerospace giant BAE Systems. In that role, Heffron led an enterprise with $8.5 billion in revenues in 2009, maintaining both topline revenue growth and profitability even in the face of the global recession. An engineer by training, Heffron has had an exceptional career as a technologist and business leader.

As the first person other than David DeLorme himself to be both President and CEO, Heffron’s hiring comes at a watershed period in the company’s history. Since the late 2000s, a key DeLorme initiative has been licensing its in-house library of digital global geographic data; that includes the DeLorme World Base Map, the only consistently-detailed, GPS-accurate 1:250,000-scale digital map of the entire surface of the Earth. DeLorme has recently entered into data licenses with various federal and private-sector clients. Heffron is expected to continue to lead growth in this area, and to spearhead other strategic initiatives in the geographic data and GPS device market space.

Founded by David DeLorme in 1976, the company was initially best known for its unique Atlas & Gazetteer series of topographic map books for individual states. DeLorme later pioneered the mapping software business, launching the first product ever to put virtually every street in the country on one CD-ROM. Since the mid-1990s, the DeLorme Earthmate line of laptop-connected and handheld GPS receivers has introduced countless first-to-market innovations, with applications for both the professional and consumer markets.

Learn more about their XMap applications for agriculture.

Introducing The ZimmPoll

Chuck ZimmermanZimmPoll

Starting today we’re launching a new feature on all the ZimmComm New Media news websites, including Precision.AgWired.com. This is a weekly quick-vote style poll which we’re affectionately calling the ZimmPoll.

The ZimmPoll is designed to gauge your opinions on a range of topics, including agriculture and agribusiness, emerging technologies and consumer trends. Look for a new poll each week in the sidebar on Precision.AgWired.com and on AgWired.com, energy.agwired.com and animal.agwired.com.

The ZimmPoll is sponsored by Rhea + Kaiser. “Target-audience opinions and insights are key to the success of all of our businesses today,” says Diane Martin, president and CEO of R+K. “We hope ZimmComm readers will benefit from – and have a little fun with – these real-time opinions of their ag industry peers.”

Start now and stay tuned for a new ZimmPoll each week. You’ll see results immediately, and we’ll also publish a weekly results recap where you’ll be able to share additional comments and ask questions about the week’s poll question.

ZimmPoll is sponsored by Rhea+Kaiser, a full-service advertising/public relations agency.

Hey Santa – How ‘Bout Some Green For the Holidays?

Joanna SchroederUncategorized

Oh, the weather outside is frightful,
But the fire is so delightful,
And since we’ve got no place to go,
Fill Out a Survey! Fill Out a Survey! Fill Out a Survey!

The snow doesn’t show signs of stopping,
And I’ve bought some corn for popping,
The lights are turned way down low,
Fill Out a Survey! Fill Out a Survey! Fill Out a Survey!

When I’ve completed the short questionnaire,
How I’ll hate going out in the storm!
So I’ll daydream about my online shopping spree,
Where I’ll buy a sweater to keep me warm.

I’ve clicked “register me to win,”
And, my dear, I may win $250.
All because it was snowing,
And I Filled Out a Survey! Filled Out a Survey! Filled Out a Survey!

I hope my rendition of “Let it Snow” hasn’t offended you too much to fill out our Precision.AgWired.com survey. If not, those who complete the survey will have a chance to win $250. Happy Holidays and may Santa bring you some extra green this year.