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october201117tolandownerstoestablishandcultivatebiomasscropsorheatpowerbio-basedproductsandbiouels.Healsospeculatesthattherecouldbeaboosttothesectorromconservationprogramsaimedatreducingsoilerosionalongandsedimentinwaterways.x1cTheyx19vebuiltsomepro-gramsspecix1callyorthoseareasthatarehardtoarmbecausetheyfoodrequentlyx1dhesays.RecentlytheenrollmentcapwasexpandedandincentivesincreasedtotheUpperArkansasRiverConservationReserveEnhancementProgram.DespitetheseincreasestogovernmentprogramsLutgenisconcernedaboututurebudgetcutsandwhetherornotundingwillbeslashedorconservationprograms.Butoverallhesaysagricultureisagoodplacetoberightnow.x1cTheagriculturalbaseotheeconomyisstillprettystronginallsegments.Farmlandpricesarestillrisingandagricultureingeneralhasbeenveryhealthy.Thearmersaredoingwellandthataectseverybody.x1dThehighpriceocommoditiesmaybegoodorarmersbutincreasedcompetitionorlandromhigh-pricedcommoditiesisaectingtheprox1tabilityothenativeseedsector.x1cThehighpriceocommoditiesaectswhatwepayourgrowerstogrowseed.Wehavegottocompetewithwheatcornandsoybeans.Thisaectsallseedmarketsbecausetherex19sonlysomuchlandouttherex1dhesays.Whenlandownersdosignuporconservationprogramsbusinessesarehavingatoughertimethaninthepasttryingtodetermineseedneeds.x1cThereusedtobestandardmixesx1dsaysLutgenx1cNowitx19salmostprescriptionmixesoreacharmer.Itx19salittlemorechallengingtox1gureoutwhatthedemandisgoingtobebecauseyoumayknowtheacresbutyoudonx19tknowtheingre-dientsandthepreciseingredientsdependupontheareaitx19sin.x1dx1cTheCRPsign-upwasandisaboosttothenativeseedindustryx14itwasapleasantsurprise.Wesawalotoplantingduringtheallo2010aswellasthespringandallo2011.Wex19relookingatadditionalplantingsintheallo2012.Itx19shelpedconsumesomeinventoriesandthatneededtohappenx1dsaysMarkMustoeco-ownerandmanageroClearwaterSeedinSpokaneWash.x1cLastyearthereseemedtobenobottomtopricesbutnowweareinastabilizingmode.x1dGovernmentSpendingHoweverMustoeisconcernedthisstabilitycouldbeshort-lived.Thisallhex19llbewatchingthe2012U.S.ederalbudgetclosely.x1cIagriculturetakesahugebudgetaryhittherex19snoquestionthatitx19sgoingtoaectconservationprograms.MuchothenativeseedindustryintheUnitedStateswhetheritistheCRPorBureauoLandManagementsomehowrelatesbacktoederalorstategovernment.Ithinkeveryoneisbeingcautiousatbestlookingattheirbusinessmodelsandtryingtox1gureouthowtodiversiywhatwegrowandwhatwedo.x1dButthedegreetowhichthedex1citcrisisandthenewbudgetwillaectnativeseedbusinesseswillnotbeknownuntilearlynextyearsaysMustoe.HowtheCRPishandledintheupcoming2012FarmBillisalsoanissueMustoeisollowing.x1cIthecaporenrolledacresisreducedthepossibilityoacresbeingbidintoCRParegoneuntilweallunderwhatevernumberthatcapisandthatcouldtakeseveralyears.Itx19salong-termdealx1dhesays.Thegrowingdebateoverlocalecotypematerialorrecla-mationrehabilitationandrestorationprojectsversustheuseospecieswithbroadapplicationshasalsoletMustoewithmorequestionsthananswers.GovernmentagenciessuchastheBLMaremovingtowardtheuseolocalecotypematerialandthatx19sgoodorbaddependingonwhoyoux19retalkingtohesays.x1cInsomeagenciestherearepeoplewhothinkseedoraprojectneedstobealocalecotypewhichisinaradiusosomanymilesothatsitex14andtherearesomewhodonx19t.Therex19satug-o-wargoingonaboutwhatscientix1callyisbestortheconservationotheenvironment.Itx19salmostmoreoabeliesystemthanascience.x1dFornowgiventhelackoscientix1cevidenceontheissueMustoesayshethinkstheuseoplantmaterialwithbroadappli-cationsmakescommonsense.x1cIwepigeonholeourselvesintothis10-mileradiusIthinkitdilutesandhurtstheindustry.x1cYoucangrow100poundsoXYorZbutwhatdoyoudowhentherex19snojobthereItx19sbestortheindustryiwelookatthebiggerpictureonabroadlandscape.x1dThedebateotencausesdisagreementevenwithinagenciessaysMustoe.x1cOnepartotheagencyisgoinginalocaldirectionandtheotherol-lowsabroaderapplication.Itx19sahardthingtoknowwhattodo.x1dTomLutgenpresidentoStarSeedInc.locatedinOsborneKan.hasalsohadagoodyear.Generallyhesaystherewasgoodmovementinthesectorsosaleswerebrisk.x1cTheindustrydoesnx19thavealotocarryoverstockwhichishealthyortheindustryx14tostartthenewyearresh.x1dIntheshorttermsaleswonx19tbeslowingdowninhishomestateoKansas.Lutgenx19santicipatingmoreinterestinanddemandornativegrassesandherbaceousplantsatertheannouncementothelatestprojectareaortheUSDAx19sseventhBiomassCropAssistanceProgramwhichprovidesincentivesRForaCatalogPhone303.431.7333Fax303.467.7886Emailsalesapplewoodseed.com5380VivianStreetArvadaCO80002USAwww.applewoodseed.comSpecialistsinWildflowersSince1965GardenFlowersNRCSPollinatorConservationMixturesBiomassFeedstocksWildflowerSeeds