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NEWS RELEASE -
July 8, 2010
For More Information, Contact: By Mark Parker Soldier, Kansas--Meat producers who have broken away from the commodity herd are headed down a trail that can lead to profitability—as long as financial savvy guides their efforts. Addressing more than 30 family farmers from across eastern Kansas recently, Jim Munsch advised growers to begin by identifying who their customers are and what they want. The Wisconsin organic beef producer and business consultant led the recent Growing Your Farm Profits workshop presented by the Kansas Rural Center near Soldier, Kansas. A growing number of consumers, Munsch told the farmers, want more than just sustenance from the meat they buy. The meat that alternative market farmers offer can include a variety of “extras.” It could be grass-fed or organic, it could come from a farm focusing on animal welfare or it might simply originate from a known, local farm, Munsch said. And just as those factors affect value, he noted, they also impact the cost of production as well as the price of the product. “We have to determine the parameters of value,” said Munsch, whose certified organic Deer Run Farm markets beef through a large organic vegetable CSA (Community Supported Agriculture) coalition. “Whether it’s organic, grass-finished, or focused on animal welfare, those things have value to certain consumers but you have to determine what they’ll pay above the price of more traditional products. “At that point, figure your costs to determine profitability. If you can’t make a profit, then you have to go back and make modifications. Ultimately, if you can’t find a way to profit, you’ll be faced with the decision of abandoning the enterprise or simply regarding it as a hobby.” The good news for direct meat marketers is that, to a significant degree, pricing is more manageable than it is in traditional markets. Those “extras” in the basket of goods and services become part of the business, Munsch said. Each must be performed well and at a cost that’s less than the price the product commands. “The tricky thing is that there is no formula for determining price,” he said. “You have to be in the marketplace and engaged with your customers and, ultimately, make a judgment call on the value of (your product).” “The U.S. has the cheapest food in the world so consumers have room to spend more of their disposable income on food if they choose,” Munsch continued. “Eighty-percent simply want food that’s cheap and safe. The rest want more than that and are willing to pay for it. There is a price premium that can flow back to the farmer if he or she can do a good job.” Surveys of his Grazier’s Organic customers, Munsch said, indicate that animal welfare currently ranks as the number one purchase motivator but those preferences are dynamic.” You have to know customers’ hot buttons,” he explained. “Those can change so it’s important to find out what is important to them and how your product stacks up.” Munsch cautioned, however, that as value and price go up, demand falls because the market becomes smaller. He emphasized that accurately tracking all costs is imperative, suggesting that each expense be allocated to the appropriate enterprise. It is also important to remember, Munsch stressed, that the additional requirements of a more direct marketing scheme adds to cost. “You always hear people complaining about the middleman,” he said, “but you have to keep in mind that the middleman provides necessary services. Cut him out and you have to perform those (tasks) and they can become a big portion of your costs. You can’t take your eye off the ball on costs just because you’re selling in a higher priced market.” For Munsch, it comes down to measuring results, whether they are related to finances or production. “The more decision-making information you have the better,” he asserted. “Whether that information measures the quality of your product, the costs of production, or it gives you a better picture of why buyers buy—or why they don’t—is very valuable to you.” Workshop attendee David Heidebrink, who operates Heide-Way Farm at Wakefield, Kan., said there is an informational need among food growers. “There really isn’t a model for how to set prices so doing it right can be a challenge,” said Heidebrink who produces fruits, vegetables and herbs in addition to natural beef, pork and chicken. “Any help I can get on pricing and the financial aspects of this business is appreciated.” Likewise, John Bauman of Bauman’s Cedar Valley Farms near Garnett, Kan., expressed a desire for more management information. “This workshop could have lasted for two days and we wouldn’t have run out of things to talk about,” said Bauman, whose family produces pasture-raised eggs and poultry as well as grass-fed beef and lamb. “You can’t learn too much about either marketing or production. They’re both extremely important and you sure can’t have one without the other.” Aside from the financial aspects of alternative meat enterprises, Munsch offered food for thought for those attending the workshop. While urging producers to differentiate their product and to accentuate its positive aspects, he suggested that “talking down” more traditional meat production is unwise. “Remember this is not religion, this is not politics—this is marketing,” he said. “Talking bad about the rest of the industry reflects poorly on you, too. Spend your time talking about good things.” In addition to learning about positioning their farms to succeed, Grow Your Farm Profits participants received costing software tools Munsch is developing for USDA’s Risk Management Agency. For more information on the Kansas Rural Center and the resources it offers farm families, log onto the Center’s web site: www.kansasruralcenter.org - Mark Parker is a free-lance journalist working from Parsons, Ks.
See the Kansas Farmers' Market website for all the presentations from this workshop. ### NEWS
RELEASE - June 18, 2010
Contact: Martha Noble Under the proposed rules, independent family farmers who meet the same quality standards as mega feedlots must be paid the same price. Those standards must be transparent and made publicly available. "These rules are crucial to restoring a level playing field for independent family farmers" said Martha Noble, Senior Policy Associate with the National Sustainable Agriculture Coalition. "Undue and unjustified price preferences for industrial scale factory farms have caused substantial harm to markets, small and mid-sized farmers, and rural communities," said Noble. "Family farm advocates have called for an end to unjustified price preferences for decades and perhaps we have arrived at the point where the government will get serious about enforcing the law," added Noble. "We will be examining the details of the proposed rules carefully in the coming days to make sure they actually do what USDA is claiming they do." NSAC advocated for the inclusion of the directed rulemaking during congressional consideration of the 2008 Farm Bill and made promulgation of strong rules a major push with the new Administration from the start. The rule expands and clarifies the rights of independent producers to bring suit against packers for unfair and deceptive trade practices. Some Courts have required farmers to prove not only individual harm but also "competitive injury" to the market as a whole. In explaining their intent, USDA explains its view that an independent producer should not have to prove "competitive injury" to bring a suit for unfair practices. "It was critical for USDA to address the competitive harm issue," said Noble. "We applaud them for doing so, but will need to read the details of the rule before coming to an assessment of whether further strengthening might be necessary." The rule also expands the number and character of unfair practices that can be challenged which now include retaliatory actions, unjustified contract termination and refusal to share data needed to determine fair compensation. The rule dictates practices that will make packer transactions with other packers more transparent. Packers would be prohibited from selling to packers, a common way of sending price signals. Packer buyers could only buy for a single packer at auction and the purchasing packer must be clearly identified. The new rule made major reforms to the rules governing production contracts between poultry growers and processors. Processors must send sample production contracts to USDA within 10 days of execution. USDA may then post the contracts on line to improve transparency for growers. Contracts must be sufficient in length to allow the grower to recoup at least 80% of any significant capital improvements required by the contract, defined as an investment of $25,000 or more. To suspend the delivery of birds under an ongoing production contract, poultry processors must give farmers 90 days notice that they are being terminated. The Farm Bill also directed new rules governing arbitration provisions in poultry contracts. The Farm Bill gave growers the right to opt out of mandatory arbitration. Companies, however, have not been clear with growers about their right to opt out. The new rules require clear and conspicuous language in the contracts giving growers the right to opt in or out of arbitration. "While additional reforms, including a ban on packer ownership and feeding of livestock are necessary to ensure truly competitive markets, this rule represents a giant step forward for both independent livestock producers and contract poultry producers," according to Noble.
### NEWS
RELEASE - May 1, 2010 KANSAS RURAL CENTER JOINS PUBLIC TV PANEL ON “FOOD INC.” ON MAY 5 On Wednesday May 5, tune in to your local public television station in Kansas to see an evening devoted to the film “Food Inc” and a panel of Kansas agricultural leaders responding to the film. The panel, “Taking Stock: Perspectives on Food Production in Kansas”, features Kansas agricultural leaders including the Kansas Rural Center’s Executive Director Dan Nagengast, responding to “Food Inc.” which took on corporate/industrial agriculture and the food system. “Food Inc.” will be aired starting at 7 p.m. and runs about 90 minutes. On KTWU/Topeka it will be followed by a short locally produced program featuring related farm and food historical footage (also including KRC staff) at 8:30 p.m. The panel discussion will begin at 9.pm. “Food Inc.” has raised the hackles of some farm organizations and their members as being a harsh criticism of the American farmer and rancher. Others including consumers and sustainable agriculture advocates see it as a fair description of the corporate domination of an industry critical to everyone who eats, and that exploits the American farmer and rancher, as well as consumers. The film, which was released in June 2009, criticizes our highly concentrated food and agriculture industry, where our nation’s food supply is controlled from seed to plate by a handful of corporations that often put profit ahead of safety and consumer health. Public reaction to the film strikes the heart of the differences between industrial agriculture and a sustainable agriculture and food system . Food Inc. was shown on public television stations across the state in late April including KTWU/Topeka, KPTS /Wichita and Smoky Hills Public Television stations. To provide viewers with more information and discussion, KTWU/Topeka brought together several panelists to debate the claims of the documentary, including Josh Svaty, Secretary, Kansas Department of Agriculture; former Governor John Carlin and professor of political science at KSU, who also co-chaired the Pew Foundation’s Study on Confined Animal Feeding Operations; Mark Smith, president Kansas Livestock Association; Steve Baccus, president of Kansas Farm Bureau; Diana Endicott, Coordinator of Good Natured Family Farms; and Dan Nagengast, Director Kansas Rural Center. WIBW/Kansas Agriculture Network Farm Director Kelly Lenz will moderate. Tune in on Wednesday May 5 to your local PBS station!
### NEWS
RELEASE - April 22, 2010
INCREASING
HERD PERFORMANCE AND HEALTH HELPS BOTTOM LINE AND ENVIRONMENT Frankfort, Kansas—“Here in Eastern Kansas, we’re blessed with the amount of forages we can grow—and we have to work to select the forages we can use,” explained Gary Kilgore, Professor Emeritus, Kansas State University, at a recent “Improving Livestock Production Workshop” workshop in Frankfort. “Match the system to the animal,” he said. “Your goal as a livestock person is to match the requirements of the animal to the available forage.” Kilgore suggested selecting forages “best adapted to your farm’s soil and climate.” He said an effectively managed forage-based system is cheaper than putting up hay. “Grazing is less-costly if the nutritional needs of your animal are met.” He said a producer should utilize both warm and cool season grasses as well as the method of stockpiling forages to meet the animals’ requirements year-round. The result, he explained, is good animal performance and improved water quality due to adequate ground cover to control erosion and trap nutrients. “Think about the water quality aspect—there is no better protection than growing grass,” Kilgore said. Over 50 people attended the “Improving Livestock Production Workshop” on April 13, which was sponsored by Middle Kansas Watershed Restoration and Protection Strategy (WRAPS); Tuttle Creek WRAPS; Kansas State University Research and Extension; Jackson and Pottawatomie County Conservation Districts, and the Kansas Rural Center. Dale Kirkham, field organizer with the Kansas Rural Center’s Clean Water Farms Project (CWFP) referred to the evening’s catered meal and asked if cows were being catered. “Are we going to cater to their needs?” he asked. “Let four legs and a rumen do the harvesting,” Kirkham suggested. He said the cow’s rumen is designed to graze and break down fibrous materials. Kirkham said a producer should think of ways to make a positive impact on the landscape while improving herd production and health. He said allowing the animals to graze year-round improves herd health by avoiding reduced gain due to mud; reduces occurrence of scours, and reduced stable fly population. It also improves water quality by controlling erosion and compaction, and distributing minerals across the landscape, he said. Jason Schmidt, CWFP field organizer, explained the services available through the Kansas Rural Center in connection with WRAPS. He said the components of the CWFP include: the River Friendly Farm Plan (RFFP) Environmental Assessment; limited cost-share funding, and grazing informationand education. According to Schmidt, the RFFP, which is voluntary and confidential, helps a farmer establish priorities on the farm. “It helps you decide what to tackle first,” he said. He said the CWFP can also connect producers with technical assistance to implement best management practices (BMPs) which improve water quality. Barbara Donovan, Coordinator of the Tuttle Creek WRAPS, explained the WRAPS program is a volunteer program that works with residents “to protect our water and soil.” She said a cost-share program is currently available to residents of the watershed with an extended deadline of June 1. For more information on the cost-share program, please contact Donovan at 651-247-8292 or email her at donovanmn@aol.com . Will Boyer, Watershed Specialist with Kansas University Research and Extension, said it is important to the bottom line of an operation to have an adequate supply of clean drinking water. “Reduced water consumption equals reduced feed consumption,” he said. “I’m not telling you to fence your streams out, instead look at developing another water source,” he said. He said, if possible, one should develop a water source in an underutilized portion of the pasture. Boyer also urged graziers to think about ways to improve grazing distribution in a pasture by strategic placement of mineral feeders, fly rub or gates. Dr. Larry Hollis, Extension Beef Veterinarian with Kansas State University, presented a spring health calendar for cattle herds—included are pre-breeding shots that build immunity to prevent Lepto-Vibrio, abortions and non-bred cows, as well as protection from scours in newborn calves. Hollis prefers modified vaccine over killed for improved immunity; as long as the cows are not pregnant when the vaccine is administered. Calves should be vaccinated, dehorned, and castrated priot to be ing sent to grass. He also recommended checking herd bulls and having semen evaluated. After such a harsh winter, Hollis said the occurrence of frost-bite on a bull’s scrotum can lead to the inability to breed. He also suggested marking cows that are in poor body condition, weaning their calves early and culling them from the herd. “This saves bull power,” he said. Hollis said to use caution when buying used bulls due to trichomoniasis or “trich”. Trich is a venereal disease in cattle that causes infertility and may cause cows to abort. He said many states require testing for trich when importing an out-of-state bull, however Kansas does not. Hollis suggested talking to a veterinarian about the history of the bull to see if testing for the disease is necessary. Hollis also provided suggestions for marketing “value-added” cattle. Hollis said to start with the end in mind. He said to ask: “What do customers want to buy?” He suggested adding value to your calves by using better genetics; a uniform breed type, and a shorter breeding season to develop a group of calves that are uniform in color, size and build. He said cattle buyers are willing to pay a premium for calves that look like “peas in a pod.” Hollis also suggested maintaining health records and weaning calves well ahead of the sale date as he said buyers are willing to pay a premium for healthy, weaned cattle that are broke to a waterer and bunk. According to KRC’s Mary Howell, CWFP field organizer, who organized the program, producers from seven Kansas watersheds and two other states were in attendance. “Extending the grazing season improves water quality—which results in increased herd performance and health. In the end, it all translates into improved livestock production and ties directly into the producer’s bottom line,” Howell said. Financial support for the program came from the Kansas Rural Center via the Kansas Department of Health and Environment with U.S. EPA 319 Funds, with other support from the Jackson and Pottawatomie County Conservation Districts, and Middle Kansas and Tuttle Creek WRAPS.
### NEWS
RELEASE - April 20, 2010
Kansas Rural Center, Kansas Department of Commerce Sessions to be held in Dodge City, Marysville, Independence, Lawrence, Newton The Kansas Rural Center and the Kansas Department of Commerce will host a series of five direct marketing workshops for agricultural producers beginning April 27 throughout Kansas. The workshops are designed for all farmers and agricultural producers who are looking to expand their business through direct marketing. The sessions will cover topics such as business planning, food safety, value-added opportunities, marketing principles, agritourism and more. Guest presenters include Mercedes Taylor-Puckett (Kansas Rural Center), Steve Morris (Kansas Department of Agriculture), Becki Rhoades (Kansas Department of Commerce) and Jan Jantzen (Flint Hills RC&D). "These workshops will interest farmers who are currently involved in direct marketing, those trying to create an identity for their farm or business, those working to identify or expand their customer base or people who are providing marketing assistance to farmers," said Taylor-Puckett, who is the Local Foods and Farmers Market Project Coordinator with the Kansas Rural Center. "Communities across Kansas are beginning to look at the potential of regional food production as an economic development opportunity. Farmers and value-added producers will want to meet the increased demand for local foods, and these workshops will help develop a road map for direct marketing farm products." The locations and dates for the workshops are as follows:
All workshops go from 9 a.m. to 3 p.m. Online registration is available at www.ksfarmersmarkets.org/producers/events. To ensure adequate materials and availability of lunch for all participants, advance registration is recommended. Walk-in registration will be welcome, but the availability of lunch cannot be guaranteed. The workshops are sponsored by the Kansas Rural Center, the Kansas Department of Commerce, Kansas Department of Agriculture, Kansas State Research and Extension and USDA Risk Management Agency. For more information, contact Mercedes Taylor-Puckett at (785) 840-6202 or mercedes.taylorpuckett@gmail.com
### NEWS
RELEASE - April 6, 2010 Farmers Urged to Talk Over Options for Expiring CRP Ground Holton, Kansas—Speakers at the Conservation Reserve Program (CRP) informational meetings held in Holton and Seneca Kansas in early March agreed on one thing: farmers with expiring CRP ground need to talk over their options with FSA and County Conservation District offices before they make decisions. “We want to talk to you” was the message from FSA speakers, county conservation district staff, fish and wildlife specialists, and watershed representatives. The Conservation Reserve Program (CRP) is a voluntary program designed to reduce erosion, protect water quality, and benefit wildlife. Through CRP, the landowner is compensated with a payment for establishing an approved cover on the land instead of farming it. But contracts for large chunks of CRP land across the state are expiring soon. That means landowners have some big decisions to make—decisions that will impact farm profitability, soil erosion, water quality, and wildlife habitat. FSA personnel are concerned that producers may break out CRP ground before the contracts expire, which leaves them open to fines. Conservation district representatives want producers to understand all their options for reenrollment and for proper management practices if taken out of CRP. The Meadowlark Extension District, Delaware WRAPS, Jackson and Nemaha County Conservation Districts, USDA FSA and NRCS, Kansas Rural Center, Pheasants Forever, and Kansas Department of Wildlife and Parks organized the informational meetings. “We wanted to address producer questions as they relate to expiring or potentially expiring CRP contracts,” stated David Hallauer, Meadowlark Extension District spokesman. At the Holton meeting, David McAfee, Jackson County Director of FSA, said there are currently 555 contracts for CRP in Jackson County—totaling 18,500 acres. Over the next two years, contracts for more than 8,000 of those acres will expire. “We’re going to have to make some decisions pretty soon,” he said. “Farmers and landowners need to explore options available as CRP contracts expire.” McAfee said there will be no notice sent to farmers or landowners in regard to their contracts expiring and that they need to take the initiative to inquire with FSA. “Don’t tear up brome or CRP without talking to the FSA office,” he stressed, explaining that fines can occur if a field is broken out or planted before the contract expires. Reenrolling expiring acreages in CRP is a possibility. McAfee expects a signup in June of this year totaling 3 million acres nationwide. He said those acres will be rated based on an erodibility index with the highest eroding land being ranked the highest for re-enrollment in CRP. Bruce Yonke, Jackson County NRCS District Conservationist, said, “We want to talk to you before your CRP expires.” He said a buffer coordinator is available to discuss environmental practices that may work even if the farmer or landowner wishes to not renew their CRP contract. “I would encourage you to look at other programs.” CRP practices for continuous signup include CP 21-Filter Strips; CP 22-Riparian Buffer; CP 33-Habitat Buffers for Upland Birds; CP 38E SAFE-State Acres For Wildlife Enhancement. Yonke said a person should consider soil conservation plans, and then determine if these practices are applicable to each farm. “A filter strip is ideal if it is along a hedge row,” he said. Field Coordinator for the Kansas Rural Center’s Clean Water Farms Project, Ed Reznicek, said allowing land to come out of CRP is a set back for water quality. Grassland, he stated, retains and stores water, filtering run-off. “Don’t forget the investment of time and money in establishing a good stand of grass. Take it out, and that investment goes away,” he said. “In most cases, the right thing to do is leave it in grass.” Reznicek discussed the options available for keeping expiring CRP in grass including re-enrolling in CRP; using native grass for hay production; grazing, and other uses such as lease hunting. Marlene Bosworth, Delaware Watershed Restoration and Protection Strategy (WRAPS) Coordinator, explained some of the cost-share programs the Delaware WRAPS offers. She said the focus of the WRAPS project includes environmentally friendly and income-producing options such as CRP. According to Bosworth, programs like CRP provide a “reliable, stable source of income.” She said it is important to think about farm income. “We want to keep family farms profitable,” she said. Typically, she said, the areas enrolled in CRP are the least productive areas on the farm. “If the land is enrolled in CRP, you don’t have to worry about yields.” Randy Whiteaker, District Biologist with Kansas Department of Wildlife and Parks, discussed income opportunities through wildlife lease programs such as walk-in hunting areas (WIHA) and/or fishing areas; special hunts on private lands. “Some people look at CRP from a wildlife angle,” he said. “If you have CRP coming out and are planning to crop it, don’t go back to farming fence-row to fence-row,” Whiteaker said. “Leave borders or corners for wildlife, or contoured buffer strips,” he said. He also encouraged producers to “take advantage of continuous sign-up programs” like those Yonke mentioned. “The bottom-line is: if you have CRP coming out, take the time to come in and talk to FSA,” Whiteaker said. “Don’t break all that grass out—there are things to do that fit your situation.” David Hallauer of Meadowlark Extension District said CRP has benefits including an economic component; both water quality and wildlife benefits, and an intrinsic benefit. “It is impossible to put a dollar figure on protecting highly erodible land,” he said. According to Hallauer, there are pros and cons to converting former CRP to cropland that each landowner should consider. “The answers don't tend to be one size fits all,” he said. He said he wanted landowners and operators attending the meeting to know “that there are numerous options and a number of considerations within each option that will need to be evaluated as a decision is made.” In order to answer additional questions, a resource notebook was made available from the sponsoring organizations at the meetings. The notebook contained CRP considerations; CRP Benefits & Options; as well as other publications geared toward managing CRP and its conversion to grazing or cropland. The Meadowlark Extension District is making these resource notebooks available at the Jackson, Nemaha and Jefferson County Conservation District and Extension offices. Or you can also find information on their website at www.meadowlark.ksu.edu and click on Crops and Soils menu.
### - ANNOUNCEMENTS - Vendor opportunity: Merriam Farmers' Market The Merriam Farmers' Market is now taking applications for the summer season scheduled from May 1st - October 9th, 2010. Stall space is limited, and on a first come, first served basis. The Marketplace is a 10,000 square foot covered pavilion with 36 stalls and 120 parking stalls surrounding it for customer convenience. Restrooms are also at the facility. Stalls are $299 for the season. The marketplace is located just northwest of Johnson Drive and I-35 on Merriam Drive. Visit our website at www.merriam.org/park/Marketplace or call 913-322-5550. ### Loans available for Non-Organic Hoop Houses If organic production is not the strategy that you want to pursue for your farming operation, as is required by the USDA NRCS EQIP Organic Initiative, the Kansas Department of Commerce’s Agriculture Value Added Loan program is an excellent resource for expanding your operation. For those interested in greenhouses or hoop houses to extend their production season, the Value Added loan is available. This loan charges no interest for the first two years and then the rate is locked in at 1 percent over the prime rate for the remainder of the loan. There is no penalty for early payment. If you would like more information about the loan program, contact Mari Tucker at (785) 296-6080 or mtucker@kansascommerce.com
### New Book on Crop Rotation on Organic Farms "Crop Rotation on Organic Farms: A Planning Manual" helps farmers use rotations to build better soil; control pests, weeds and diseases; and develop profitable farms. Consulting with expert organic farmers, the authors share rotation strategies that can be applied under various field conditions and with a wide range of crops. "The purpose of this book is to help growers and farm advisors use crop rotations to build better soil, control pests, and develop profitable farms that support satisfied families," says editor Charles Mohler, a senior research associate at Cornell University. "Crop Rotation on Organic Farms" is most applicable for the Northeast but will also be useful in other regions. Published by the Natural Resource, Agriculture and Engineering Service (NRAES) and funded in part by SARE, the 154-page book includes instructions for making rotation planning maps and discusses the transition to organic farming. Other features include:
Download Crop Rotation on Organic Farms for free at www.sare.org/publications/croprotation.htm. To order print copies ($24.00 plus $5.95 s/h) visit www.sare.org/WebStore call 301/374-9696 or send check or money order to SARE Outreach, PO Box 753, Waldorf, Maryland 20604-0753. (Please specify title requested when ordering by mail.) Discounts are available on orders of 10 or more. Allow 3-4 weeks for delivery. Call 301/374-9696 for more information on bulk, rush or international shipments. The Sustainable Agriculture Research and Education (SARE) program is supported by the National Institute of Food and Agriculture (NIFA) USDA. SARE's mission is to advance - to the whole of American agriculture - innovations that improve profitability, stewardship and quality of life by investing in groundbreaking research and education. SARE Outreach operates under cooperative agreements with the University of Maryland and the University of Vermont to develop and disseminate information about sustainable agriculture. Visit www.sare.org for more information. Who We Are Projects Calendar & News Policy & Advocacy Publications Wind Projects Heartland Network Kansas Food Policy Council Clean Water Farms Project Links Home Page © Copyright
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