Day: December 3, 2017

A committee exploring the effects of recreational marijuana on Nevada’s gambling industry is wrestling with how the state’s casinos might deal with the pot business while not running afoul of federal law.

Lured by a potential economic impact in the tens of millions of dollars, Gov. Brian Sandoval’s Gaming Policy Committee is trying to figure out how casinos can host conventions and trade shows on marijuana.

The 12-member committee ended its meeting Wednesday without a formal decision on the matter, but Sandoval said he hopes to have committee recommendations for possible regulations by February.

The Nevada Gaming Commission has discouraged licensees in the past from becoming involved with the marijuana business, fearing legal backlash. Committee members have also voiced opposition to the idea of allowing marijuana use at resorts.

However, events like MJBizCon, a conference on various aspects of the marijuana growing industry, have drawn the attention of the gambling industry because of their strong turnout.

Cassandra Farrington, who started the conference, told the committee that the event brought about 18,000 people to the Las Vegas Convention Center last month and it’s only expected to grow. She noted that marijuana products are not allowed on the show floor, and people who violate that ruled are expelled.

Trade shows like Farrington’s conference can generate millions of dollars in tax revenue, said Deonne Contine, the director of the Nevada Department of Taxation. Contine told the committee that a show with about 15,000 people can produce a $28.2 million economic impact on the city.

Attorney Brian Barnes said any marijuana business in gambling facilities could be considered racketeering or money laundering under federal regulations.

“Marijuana business is illegal under virtually every aspect of federal law,” Barnes said.
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Liz Whitehurst dabbled in several careers before she ended up on a Maryland farm, crating fistfuls of fresh-cut arugula in the November chill.

The hours were better at her nonprofit jobs. So were the benefits. But two years ago, Whitehurst, 32 — who graduated from a liberal arts college and grew up in the Chicago suburbs — abandoned Washington for a three-acre plot in Upper Marlboro, Maryland.

She joined a growing movement of highly educated, ex-urban, first-time farmers who are capitalizing on booming consumer demand for local and sustainable foods and who, experts say, could have a broad impact on the food system.

For only the second time in the last century, the number of farmers under 35 years old is increasing, according to the U.S. Department of Agriculture’s latest Census of Agriculture. Sixty-nine percent of the surveyed young farmers had college degrees — significantly higher than the general population.

This new generation can’t hope to replace the numbers that farming is losing to age. But it is already contributing to the growth of the local-food movement and could help preserve the place of midsize farms in the rural landscape.

“We’re going to see a sea change in American agriculture as the next generation gets on the land,” said Kathleen Merrigan, the head of the Food Institute at George Washington University and a deputy secretary at the Department of Agriculture under President Barack Obama. “The only question is whether they’ll get on the land, given the challenges.”

The number of farmers aged 25 to 34 grew 2.2 percent between 2007 and 2012, according to the 2014 USDA census, a period when other groups of farmers — save the oldest — shrank by double digits. In some states, such as California, Nebraska and South Dakota, the number of beginning farmers has grown by 20 percent or more.

New to farming

A survey that the National Young Farmers Coalition, an advocacy group, conducted with Merrigan’s help shows that the majority of young farmers did not grow up in agricultural families.

They are also far more likely than the general farming population to grow organically, limit pesticide and fertilizer use, diversify their crops or animals, and be deeply involved in their local food systems via community-supported agriculture (CSA) programs and farmers markets.

Today’s young farmers also tend to operate small farms of less than 50 acres, though that number increases with each successive year of experience.

Whitehurst took over her farm, Owl’s Nest, from a retiring farmer in 2015.

The farm sits at the end of a gravel road, a series of vegetable fields unfurling from a steep hill capped by her tiny white house. Like the farmer who worked this land before her, she leases the house and the fields from a neighboring couple in their 70s.

She grows organically certified peppers, cabbages, tomatoes and salad greens from baby kale to arugula, rotating her fields to enrich the soil and planting cover crops in the off-season.

On Tuesdays, Thursdays and Fridays, she and two longtime friends from Washington wake up in semidarkness to harvest by hand, kneeling in the mud to cut handfuls of greens before the sun can wilt them. All three young women, who also live on the farm, make their living off the produce Whitehurst sells, whether to restaurants, through CSA shares or at a D.C. farmers market.

Finances can be tight. The women admit they’ve given up higher standards of living to farm.

“I wanted to have a positive impact, and that just felt very distant in my other jobs out of college,” Whitehurst said. “In farming, on the other hand, you make a difference. Your impact is immediate.”

Larger impact

That impact could grow as young farmers scale up and become a larger part of the commercial food system, Merrigan said.

Already, several national grocery chains, including Walmart and SuperValu, have built out local-food-buying programs, according to AT Kearney, a management consulting firm.

Young farmers are also creating their own “food hubs,” allowing them to store, process and market food collectively, and supply grocery and restaurant chains at a price competitive with national suppliers.

That’s strengthening the local and organic food movement, experts say.

“I get calls all the time from farmers — some of the largest farmers in the country — asking me when the local and organic fads will be over,” said Eve Turow Paul, a consultant who advises farms and food companies on millennial preferences. “It’s my pleasure to tell them: Look at this generation. Get on board or go out of business.”

There are also hopes that the influx of young farmers could provide some counter to the aging of American agriculture.

The age of the average American farmer has crept toward 60 over several decades, risking the security of midsize family farms where children aren’t interested in succeeding their parents.

Between 1992 and 2012, the country lost more than 250,000 midsize and small commercial farms, according to the USDA. During that same period, more than 35,000 very large farms started up, and the large farms already in existence consolidated their acreage.

Midsize farms are critical to rural economies, generating jobs, spending and tax revenue. And while they’re large enough to supply mainstream markets, they’re also small enough to respond to environmental changes and consumer demand.

If today’s young farmers can continue to grow their operations, said Shoshanah Inwood, a rural sociologist at Ohio State University, they could bolster these sorts of farms — and in the process prevent the land from falling into the hands of large-scale industrial operations or residential developers.

“Multigenerational family farms are shrinking. And big farms are getting bigger,” Inwood said. “For the resiliency of the food system and of rural communities, we need more agriculture of the middle.”

Numbers are still small

It’s too early to say whether young farmers will effect that sort of change.

The number of young farmers entering the field is not nearly large enough to replace the number exiting, according to the USDA: Between 2007 and 2012, agriculture gained 2,384 farmers between ages 25 and 34 — and lost nearly 100,000 between 45 and 54.

And young farmers face formidable challenges to starting and scaling their businesses. The costs of farmland and farm equipment are prohibitive. Young farmers are frequently dependent on government programs, including child-care subsidies and public health insurance, to cover basic needs.

And student loan debt — which 46 percent of young farmers consider a “challenge,” according to the National Young Farmers Coalition — can strain already tight finances and disqualify them from receiving other forms of credit.

But Lindsey Lusher Shute, the executive director of the coalition, said she has seen the first wave of back-to-the-landers grow up in the eight years since she co-founded the advocacy group. And she suggested that new policy initiatives, including student loan forgiveness and farm transition programs, could further help them.

“Young farmers tend to start small and sell to direct markets, because that’s a viable way for them to get into farming,” Lusher Shute said. “But many are shifting gears as they get into it — getting bigger or moving into wholesale.”

Just last year, Whitehurst was approached by an online grocery service that wanted to buy her vegetables. Because While Owl’s Nest produces too little to supply such a large buyer on its own, the service planned to buy produce from multiple small, local farmers.

Whitehurst ultimately turned the deal down, however. Among other things, she feared that she could not afford to sell her vegetables at the lower price point the service wanted.

“For now, I’m focused on getting better, not bigger,” she said. “But in a few years, who knows? Ask me again then.”
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The city of Zibo, China’s ceramics capital, is undergoing environmental shock therapy to clear its filthy skies and transform its economy — and not everyone is happy.

Much of Zibo’s sprawling industrial district has become a ghost town of shuttered factories, empty showrooms and abandoned restaurants after a cleanup campaign that began last year intensified this winter. Dozens of chimneys stand inactive.

“There used to be a lot of workers here, but now they are demolishing the entire place,” said a caretaker who gave his surname as Wei, pointing at the deserted warehouse of an abandoned factory he was guarding. “We have no idea what they will build here — that’s the boss’s decision.”

Zibo, home to 4.5 million people about 260 miles south of Beijing in Shandong province, is one of 28 northern Chinese cities targeted in an unprecedented six-month anti-pollution blitz as China scrambles to meet air quality targets.

The city is also at the heart of a wider, long-term government effort to upgrade China’s heavy industrial economy.

Once responsible for about a quarter of China’s ceramic output, mainly floor and wall tiles, Zibo has slashed capacity by 70 percent and shut more than 150 companies and 250 production lines as part of a ruthless war on pollution.

Surviving plants have rushed to comply with tough new standards, but business is still threatened by constant production suspensions ordered by the government, as well as natural gas shortages this winter as northern cities switch to the fuel from coal.

“It is a brave step that China is taking, but they have to take it,” said Alex Koszo, the founder of Vecor, a Hong Kong-based company that has built a joint-venture plant in Zibo to manufacture environmentally friendly tiles from fly ash.

“They have the will, the money, and access to technology, so I think we are looking at a very different Zibo, and a very different Shandong, in five to 10 years.”

The local environmental bureau declined to be interviewed, telling Reuters that cleanup efforts were “still at an early stage” — but changes are already conspicuous.

With old factories marked for demolition, new apartment blocks, shopping complexes and roads are being built. The city registered growth of 7.8 percent in the first three-quarters of this year, driven by the service sector, according to the local government. Displaced workers have shifted to construction sites and other industries like textiles, residents said.

Zibo has also established a “greentech” incubator in the old district and opened a new high-tech industrial park in order to attract companies and encourage innovation in ceramics.

But some local businessmen accuse Beijing of running roughshod over local industry and paying too little heed to circumstances on the ground, with one boss accusing inspectors of behaving like “imperial envoys.”

“There is a ring of 28 cities, and pollution only needs to appear in Beijing — even just medium-level pollution — and all our factories have to shut,” said the owner of a large local factory who declined to be named, fearing repercussions. “It doesn’t matter whether you meet the standards or not, you have to shut.”

Upgrades

Over the past decade, Zibo’s ceramics makers took advantage of closures elsewhere to drive up output and seize market share in China. Zibo’s tiles were used throughout China and exported around the world. In recent years, however, the industry was weighed down by poor quality and chronic overcapacity that eroded prices and exposed the sector to European Union anti-dumping measures.

Beijing’s war on pollution served as an opportunity to tackle those problems. Now, the mainstay of the local economy is a shadow of its former self.

With annual production capacity slashed to 246 million square meters, compared with 827 million square meters before the campaign began, the government hopes surviving manufacturers can upgrade and compete with higher-end producers.

“I think the steps the government is taking now will push the costs up, and therefore the price of the goods will be up and the quality will meet international standards,” said Koszo.

But the local factory owner said the campaign has inflicted long-term damage, eroding cost advantages and driving customers away.

“If Zibo was the only place producing tiles in the whole country, then it wouldn’t be a problem. But this is an unfair policy. They are closing us but not others,” he said.

Stop-start production

Environmental officials deny the pollution crackdown or the heightened vigilance of inspectors will cause deep harm to China’s economy, saying any losses would be compensated by the long-term benefits of clean investment.

But in Zibo, even environmentally compliant manufacturers are losing customers. The factory owner said he has lost 80 percent of domestic clients and half his overseas ones, with many frustrated by the stop-start nature of production.

Zibo’s ceramics companies are not only hit by emergency closures aimed at curbing smog. A year ago, they were ordered to switch from coal to gas, but suppliers are giving priority to residential winter heating.

“People are losing patience and manufacturing is shifting to the south,” said Bryan Vadas, director at the Tile Agencies Group in Australia, which used to source products for export from Zibo but has now started buying elsewhere.

Environment Minister Li Ganjie said this year that China would not adopt an “indiscriminate one-size-fits-all approach,” adding that companies have plenty of leeway to clean up and survive.

“Only enterprises that have no clear survival value, pollute heavily and have no hope of being rectified will be shut down,” Li said.

But local enterprises have struggled to cope with repeated policy changes, with industry entry requirements adjusted four times in less than two years, the local factory owner said.

“I have worked hard to build up this business,” he said.

“Personally, I just think the government should tell us directly that they don’t want us to stay in operation. There’s no need for them to torture me.”
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Every year, the festive holiday windows of New York City’s department stores draw fans from near and far. Tina Trinh reports.
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