NAAA eNewsletter

January 4, 2018

NAAA eNewsletter

How the Aerial Application Industry Fared in 2017, Plus the Forecast for 2018

Overall, industry economic activity data has shown an improvement in the agriculture industry during the 2017 calendar year. U.S. ag exports increased 8 percent in 2017 from $129.6 billion to $140.5 billion. In addition, the USDA projects net farm income to be up 12.6 percent to $100.4 billion in 2017 from 2016 with an additional projection that farmers are expected to increase their production expenses in 2018. NAAA’s year-end survey in 2017 showed that operators flew 4.2 percent more hours per aircraft in 2017 compared with 2016, 314.7 hours versus 302 hours, respectively, and 58 percent of the nation’s ag aviation operators are optimistic about 2018’s prospects.

Another positive statistic from global crop protection consulting firm Phillips McDougall shows a forecast of real growth in the crop protection product market of 2.7 percent annually through 2020.

With the world population growing every day, there is an abundant supply of consumers for sustainable food, fiber and biofuel. According to the U.N., world population will increase from 7.6 billion today to 8.6 billion in 2030, and it is estimated to grow to 9.8 billion by 2050.

2017: A Year of Deregulation

When the Trump administration took power in January 2017, a central promise of the campaign was that for every new regulation implemented, two would have to be repealed. While there has been relief in stamping out many overly restrictive and unnecessary environmental regulations over the past year, which has been helpful to our industry, deregulation can be a double-edged sword. For example, there has been a movement towards relaxing regulations protecting manned aviation safety in the form of loosening tower marking and UAS safety requirements. Overall, however, it has been a net benefit for the aerial application industry.

Early in his term, President Trump signed an executive order that would rescind and replace the Obama administration expansion of what is defined as a Water of the U.S. (WOTUS), which would expand what types of waters would need a National Pollutant Discharge Elimination System (NPDES) Pesticide General Permit (PGP) for an aerial applicator.

NAAA has made progress as well by pushing the passage of NPDES-PGP exemption legislation in the House and prompting the Senate to conduct a congressional briefing on the subject for Senators and their staff in December with the hopes similar legislation may make it through that body. NPDES-PGP legislation is also being widely touted as a part of a regulatory relief package in the farm bill that must be reauthorized by Oct. 1 of this year. NAAA will be pushing hard for its inclusion in the farm bill as well as language giving state and federal pesticide regulatory agencies primacy in promulgating and enforcing pesticide laws so that ballot initiatives like the one enacted in the spring of 2017 in Lincoln County, Oregon banning aerial forestry herbicide applications can’t be put in place unless the whole state agrees to such a policy.

EPA Administrator Scott Pruitt decided earlier this spring to prevent the revocation of chlorpyrifos. NAAA and many ag groups have advocated for years to keep the tolerances active for chlorpyrifos, so this was a big victory given that the basis for revocation was based on unsubstantiated data that its researchers would not release supporting their health claims.

Tax reform was one of the biggest policy changes to happen this year in Washington, D.C. One draft of tax reform extended depreciation schedules for general aviation fixed-wing aircraft from five years to 12 years. Over the past two years NAAA met with many lawmakers making the case that ag aircraft operate in more rugged conditions and as such should be depreciated in a much shorter timeframe. Those efforts have paid off as the newly enacted tax law allows for 100 percent of equipment acquired and placed in service after Sept. 27, 2017, to be immediately written off, or “expensed.” This full capital expensing is expected to last through 2022.

NAAA spent a significant amount of time in 2017 on the safe integration of drones into the national airspace. NAAA continued to urge that drones meet certain requirements to ensure manned aircraft safety. An FAA registry for drones was deemed to be illegal by a federal court last year, but recent defense legislation, supported by NAAA, was enacted that allowed for the legality of the registry. NAAA was also selected to serve on several federal advisory panels suggesting policy solutions to the FAA on how to safely integrate drones into the airspace, including requirements that drones be equipped to be tracked and identified.

As the use of UAV’s become more common, NAAA crated a UAV encounter checklist on steps for ag aviators to take to ensure one’s safety, and to report a UAV encounter to law enforcement, media and insurance providers. NAAA developed a similar checklist for victims of ag aircraft shootings last year as well after a spate of ag aircraft shootings occurred in a short timeframe.

2017 Public and Industry Outreach

NAAA has needed to set the record straight several times throughout the year, when high profile and widely read publications incorrectly stated things such as how drones are far more effective and efficient compared to manned aircraft when treating crops or embellishing the health hazards posed by crop protection products. NAAA set the record straight by responding with the facts, expanding UAVs are years and years, if not decades, away from competing with manned aircraft when applying products and that products registered for aerial use are tested extensively before the EPA allows them on the market.

NAAA has also broadened aerial applicators’ reach with potential customers over the past year by equipping our website—AgAviation.org—with the “Find an Aerial Applicator” search tool. The public database allows a potential customer to type in his city, state or ZIP code to find a list of NAAA aerial applicators that have opted into the system within up to a 250-mile radius of their location. Coupled with an advertising campaign in major ag trade publications such as CropLife magazine and CropLife News e-newsletter directing readers to the “Find an Aerial Applicator” database, the number of hits to NAAA’s database jumped 57 percent!

NAAA now has more than 5,300 followers of its Facebook page and this year launched a Twitter account @AgAviationNAAA. Both platforms post almost daily promoting the benefits of modern agricultural production and aerial application’s important role in food, fiber and biofuel production, as well as our industry’s professionalism and progressivism. It’s important for us to all use social media by liking NAAA’s Facebook page, and following @AgAviationNAAA on Twitter and sharing our posts so our message can spread.

2018 Challenges and Opportunities

Ag aviation is expected to face a growing number of physical obstacles as the communications industry, tasked with providing rural broadband access nationwide, will continue to erect towers in areas ag aviators operate. Drones will continue to increase in number in ag and other rural industries as well. One of the best opportunities to address these challenges will be the legislation to reauthorize the FAA, which will need to be reauthorized by March 31, 2017. It is unclear if House Transportation Chairman Bill Shuster’s long-term reauthorization bill will have the votes to pass due to a provision that would privatize the air traffic control system. Additionally, commercial pilot training requirements are holding up the senate version of the bill. If enough members of Congress are opposed to these provisions, expect another short-term extension for the FAA ranging from six months to 1 year.

Furthermore, the wireless communication industry is attempting to water down one of NAAA’s greatest successes, a provision included in the 2016 FAA extension bill that required that required rural towers under 200 feet and 10 feet in diameter to be marked and entered into a national database, claiming it is expensive and unnecessary. Communication tower statistics indicate there are 150,000 wireless communication towers in the U.S. today, and this is expected to increase to more than 200,000 by 2025 since 23.5 million Americans in rural communities do not have access to broadband Internet. There is a push—even as part of an infrastructure spending bill—to federally fund or federally grease the skids to ensure this rural infrastructure need is addressed.

Despite low commodity prices, there is are a bounty of opportunities for ag aviators to diversify their operations. CropLife magazine and Purdue University conducted a national survey last June of cooperatives, independent retailers and regional and national retailers performing precision ag services, and the results show significant growth. For example, those surveyed indicated that companies providing field mapping services grew from 29 percent in 1997 to 75 percent in 2017. These are services that can be done by ag aircraft, and USDA-ARS’s Aerial Application Technology Research Unit has detailed information helping ag aircraft operators equip and conduct these services. The same survey shows that those offering precision/variable rate application of fertilizer services have grown from 32 percent in 1999 to 78 percent in 2017. Again, this could provide real opportunity for ag aviators to diversity their businesses by providing crop input saving services for farmers, either by providing aerial surveying and/or precision applications by air.

2018 NAAA Aerial Application Industry Survey

NAAA also will be conducting a survey—an industry/aerial pesticide use survey—early this year to collect importantly needed data on your operation and how you make applications. The data is kept strictly confidential, yet the results from it are vital in helping us continue to (re)register products with the EPA because it counters agency theoretical data that overestimates aerial application risks with our real-world data. Be on the lookout for it and please complete it and submit the results to us. Again, this information is vital for us to help you retain the tools in your aerial tool arsenal.

The Year Ahead in Federal Drone Policy

Last year the aviation world saw more drone activity then ever before. Here’s a preview of what’s in store for 2018.

Remote ID and Tracking

While NAAA has been advocating all UAVs have the ability to be remotely tracked and identified as a way to protect low-level aviators, there is a broad coalition of other groups who need to identify and track UAVs as well, such as law enforcement and other security entities. NAAA served with 76 other groups on the Remote ID and Tracking Aviation Rulemaking Committee this past summer to provide recommendations to the FAA. However, NAAA was one of 10 aviation groups that dissented from the groups final report because the report recommended exempting several types of UAVs and did not include any weight threshold.

This report is just one of many considerations the FAA will use should they implement ID and tracking requirements on UAVs which they are likely to do later this year. NAAA will continue to advocate all UAVs larger than 8 ounces are tracked and held to the same safety standards as manned aviation.

Flights Over People

The Department of Transportation had previously wanted to begin allowing UAVs to fly over people, but the process was deferred due to safety concerns by the Departments of Defense and Homeland Security. However, there are indications the concerns have been resolved and flights over people, as well as night time operations may become standard once a remote ID policy is in place.

Drone Integration Pilot Program

In October of last year, President Trump issued a presidential memorandum directing the Department of Transportation to establish a pilot program to allow state and local governments to loosen restrictions on unmanned aerial vehicle (UAV) operations. The administration says the pilot program will accelerate the development of UAV technologies.

Interested local governments are in the process of submitting plans for innovative solutions to integrate UAVs into the national airspace. At least five locations will be chosen within the next year and data from the operations will be used to form strong UAV policy. The FAA has assured the operations taking place in the selected locations will conform to all current safety standards to protect manned aviation. NAAA and the Mississippi Agricultural Aviation Association has endorsed Mississippi State University’s (MSU) petition to be one of the selected entities. This is due to their efforts analyzing ag aviation GPS data to determine a safe distance that drones should operate from low-flying manned aircraft and MSU’s commitment to research UAVs equipped with ADS-B/LATAS tracking systems and visible strobes to provide for manned aircraft safety.

Air Traffic Control for Drones

The FAA reauthorization bills that are currently pending in the House and Senate mandate the creation of an unmanned traffic management (UTM) system. The bills to reauthorize the FAA must be passed by March 30, 2018 but if this mandate is included in the final bill, don’t expect action for some time. The FAA will require a lot more data before it can create an effective UTM system. Much of this data will probably come from the drone integration pilot program.

A New FAA Administrator

Michael Huerta's five-year term ends at the end of February, and no new administrator has been named. That means Deputy Administrator Dan Elwell is likely to be acting administrator for some time. Trump has made it his priority to cut regulations across all sectors of government, so it is expected whoever he choses to be the new FAA administrator will push to quickly integrate drones into the national airspace. NAAA will impress upon any nominee the importance of doing this in a safe manner that will protect the safety of manned aviators.

NAAA and NAAREF Board Meetings Feb. 16-17

We look forward to seeing you Feb. 16-17 at the NAAA and NAAREF Board Meetings, with a couple of meetings beginning on Feb. 15. All meetings are open to NAAA members. We will be back at the Hilton Old Town Alexandria for our meetings. The hotel is across the street from the King Street Metro stop (take either Blue or Yellow Line), which is the second stop south of Ronald Regan National Airport (DCA). You can view a map of the metro system here.

You can view a tentative schedule here. Please email Lindsay Barber if you will plan to attend the meetings.

Hilton Old Town Alexandria, 1767 King Street, Alexandria, VA 22314
Rate: $148/night plus tax

Reservations: Call 1-800-HILTONS (mention NAAA Board Meeting) or make your reservation on-line here.

Room Block Closes: January 19, 2018. Room rates will be higher after block closes and we cannot guarantee rooms after this date.

It's Time to Update Your Information for the 2018 Membership Directory

Have you moved or changed employers since you renewed your 2018 NAAA membership? Allied companies, have you reviewed your company description lately? Time is short to ensure your listing in the 2018 NAAA Membership Directory is correct before going into production.

If any information has changed, please let us know, as the membership directory is heading to the printer in the next several weeks. You can provide your information by:

Updating your information online at www.agaviation.org. Log in using your username and password and update your information under My Profile;
Responding to the letter or email that you will receive soon;
Emailing your changes to information@agaviation.org;
Faxing your changes to 202-546-5726; or
Calling the NAAA office at 202-546-5722.

We must have your updated information by January 19th to guarantee inclusion in the 2018 NAAA Membership Directory!

Members Only Content Expiring Soon! Renew Today!

It's finally 2018, which means it is time to renew your NAAA Membership if you haven’t already done so. Your exclusive membership content such as NAAA eNewsletters and online membership directory will expire soon. Renew today so you can be included in this year's 2018 Membership Directory--the best resource to connect you with NAAA members, government officials and allied companies who provide you with the parts and services to run your business.

Once you renew your membership, you can take advantage of NAAA’s new Recruit-Rebate-Rewards Program where you can receive a 10% rebate for recruiting new members to join the NAAA. Click here for more details so you can start referring and earning today!

NAAA membership is as important as ever as NAAA needs resources to continue pushing for stringent tower-marking requirements and to promote the safe integration of UAVs into the national airspace system (NAS) to ensure the safety of ag pilots (click here to view NAAA’s UAV safety campaign video). Similarly, NAAA has worked hard to make sure EPA and manufacturers register crop protection products with labels allowing aerial use.

NAAA continues to advocate daily on these and other important issues for the safety and continuity of the aerial application industry. An NAAA membership comes with numerous benefits whether you’re an operator, pilot or allied company. Take a look at this infographic to see why your membership matters:

Online Renewal Instructions

You can renew your membership at AgAviation.org by logging into your account in the upper right hand corner. Once you’ve logged in, click Membership Renewal on the left-hand toolbar (as seen in the graphic below).

Auto Renewal Information

NAAA offers auto renewal for membership and NAAREF donations. When you sign up for auto renewal, NAAA will automatically charge the credit card on file every Sept. 1. There are four ways to sign up for auto renewal:

When you receive your renewal statement in September, mark the box in the payment area for auto renewal.
Renew your membership online and you’ll be asked during the process if you’d like auto renewal.
Call the NAAA office at (202) 546-5722 and request auto renewal.
Return the membership form in the next Agricultural Aviation magazine and mark the box in the payment area for auto renewal.

How Would You Rate the 2017 NAAA Ag Aviation Expo? Please Tell Us by Jan 5!

Thank you to the attendees and exhibitors for joining us for the 2017 NAAA Ag Aviation Expo in Savannah earlier this month.

We are continually working to improve our educational sessions, networking, trade show and the programs/services offered to attendees. If you have not already done so, please click on the following link and complete the short survey so that we have substantive input to help us continue to improve future Ag Aviation Expos. Please complete the survey by January 5, 2018.

Attendee survey: https://www.surveymonkey.com/r/2017NAAAAttendeeSurvey
Exhibitor Survey: https://www.surveymonkey.com/r/2017ExpoExhibitor

All responses are anonymous, but if you wish to share further details, please contact Lindsay Barber, NAAA’s Director, Meetings, Marketing & Special Projects. Thank you for taking the time out of your schedule to complete this important survey and we look forward to seeing you Dec. 3-6, 2018 in Reno, Nev.