Consumer Demands

Optimism Reigns at Joplin Stockyards as Cattle Prices Hit Historic Highs

Tue, 14 Apr 2026 14:10:23 GMT

Monday is sale day in Carthage, Mo. At the Joplin Stockyards, the air is filled with the rhythmic chant of auctioneers and the shuffling hooves. Among the crowd of buyers, part-owner Jackie Moore watches the ring with a smile, watching a market that is finally paying off for producers.

“Cattle are $100 higher than they were a year ago,” Moore says.

The higher prices and the resulting grins haven’t always been the case for the buyers and sellers sitting ringside at the Moore family’s business. Moore is an industry veteran, having started his career at the stockyards back in 1977, long before the operation moved to its current Carthage location.

“It’s been a long time since 1977,” he reflects.

Moore is grateful many cattlemen today are no longer focused on the years of struggle. Instead, they are seeing cash for their efforts.

“They’re in the driver’s seat now. They’re getting paid for what they’re doing. You know we see those people walk up to the window — you sold 20 head of calves, and they get a check for $50,000. He’s got three little kids at home, a trailer house and 80 acres of land. He’s the happiest guy in the world, and nobody would be happier for him than I am,” Moore says.

Moore is quick to point out the cattle industry is cyclical. While the current environment is prosperous, the question remains: When could the momentum shift? He believes the answer is tied closely to heifer sales and the eventual rebuilding of the national herd. Moore said buyers are purchasing more heifers to breed than they have historically.

“I think we’ve got a year and a half left of this really, really good market. Maybe then, as we see those heifers calve that they’re buying today, that we get enough cattle to satisfy the market,” Moore explains.

External factors are also playing a role in the current market dynamics. The suspension of live cattle imports along the Mexico border has tightened an already record-low cattle inventory. The border has remained closed since last July . While Moore believes a reopening could have an initial impact on the market, he doubts it will significantly alter long-term prices.

“We taught the cartel how to slaughter those cattle, how to feed those cattle, how to make money with those cattle. So consequently, you know, I don’t think there’s gonna be as big a need for them to export those cattle as there once was,” he says.

Midwest Market Solutions president Brian Hoops said there could be a headline risk for algorithm trades when the border opens, but he thinks, realistically, it might not have a large impact because of what has already been priced into the market. He agrees with Moore that processing has changed since the closure.

Moore notes the cattle environment in both Mexico and the U.S. is evolving, even without the steady flow of imports.

“Where this all leads us probably remains to be seen of how long the border is actually closed,” he adds.

Hoops says: “They’ve [Mexico] invested millions and maybe billions of dollars in an infrastructure because the border being closed. It’s kind of a double edged sword where we get a benefit of the border, being closed and having left less cattle here on feed and seeing higher prices, but it’s also forced Mexican producers to invest in infrastructure.”

Moore adds: “What happens down the road? I don’t know. I don’t really know. I’m very optimistic, and I’m bullish at the cattle market. All I know to do is just keep playing the game and enjoy the ride.”

Consumer Demand

On the consumer side, demand for beef continues to grow and is reaching record levels. Nebraska Farm Bureau reports an index created by the Livestock Marketing Information Center (LMIC) to gauge beef demand reached 138 last year, the highest on record and a 10-point jump from 2024.

Director of LMIC Tyler Cozzens says a similar jump has only happened two other times in the last 25 years. He says since 2019, the index increased 27%.

“Prices are extremely high. You’re right about that,” Hoops says. “There’s still optimism that prices are going to continue to move higher because we’re going into the spring grilling season.”

The Unique Relationship Between Sorghum and Conservation

Wed, 17 Sep 2025 13:13:51 GMT

This article is published as part of America’s Conservation Ag Movement , which supports farmers and ranchers in building profitable, resilient futures for their operations.

Grain farmers are facing uphill challenges from all sides. Every day they battle economic uncertainty, rising costs and weather pressures, prompting some to search for diversification opportunities at the farm gate.

As farmers think outside the box, United Sorghum Checkoff Program is urging them to give sorghum a shot.

The Resource Conserving Crop

The organization has gone so far as to officially trademark sorghum as “The Resource Conserving Crop,” highlighting the heritage crop’s ability to weather droughts and sustain people and livestock.

“With deep roots that anchor the land, sorghum reflects the enduring values of American farmers: strength, hard work and self-reliance,” says Norma Ritz Johnson, executive director. “From feeding draft animals of the past to advancing food security and resource-smart farming today, sorghum remains a vital part of agriculture’s future.”

Ritz Johnson highlights these two benefits as sorghum’s foundation for resource conservation:

1. Sorghum thrives with one-third less water.
According to the Checkoff, sorghum can grow with less water use than comparable grains and it can endure extreme heat, giving it an economic advantage both in areas facing mounting weather pressures and in regions where other crops simply cannot be productive.

“Water scarcity is one of the biggest challenges facing agriculture today, and it’s where sorghum shines brightest,” Ritz Johnson says. “Its natural drought tolerance and efficient water use are unmatched, enabling it to produce high yields with significantly less water than other grains.”

The Checkoff notes, according to studies, 91% of sorghum acres are rain-fed, resulting in 1.5 trillion gallons of irrigation water savings per year.

2. Sorghum is a workhorse of sustainability.
Ritz Johnson says sorghum delivers value to farmers through reduced input needs and greater stability. Of note, the Checkoff highlights low seed costs ($6 - $19 per acre depending on seeding rate and seed treatments) as a standout economic benefit of crop adoption.

Sorghum’s benefits as a resource-saving crop extend to its growers as well, with surveys finding greater adoption of conservation tillage and other conservation practices amongst growers.

(United Sorghum Checkoff Program )

Interestingly, the sorghum moniker seems to extend beyond the crop and its conservation attributes and into the farmers who grow it and the agronomic practices they use to do so. The Checkoff has polled its producers and found they are adopting conservation practices, like conservation tillage, at a higher rate than their counterparts.

“Sorghum farmers are natural conservationists because they have to be,” Ritz Johnson says. “In many regions where sorghum is grown, resource constraints — especially water — make conservation tillage not just a choice but a necessity. Farmers understand that by leaving crop residues on the surface, they can protect their soils, retain moisture and reduce the need for inputs like herbicides and fertilizers.”

Ritz Johnson says the conservation leading edge doesn’t end with tillage practices, noting sorghum producers are using precision irrigation techniques like drip and pivot irrigation to optimize water use, cover crops to protect soils and creative crop rotation systems to enhance soil moisture retention and reduce evaporation. That intense water management can add up to a recipe for success even in the driest growing seasons.

In all, for United Sorghum Checkoff Program, this presents an opportunity for sorghum as a crop and sorghum producers to step into a gap that is widening for an ever-evolving production agriculture system in the U.S.

“What’s impressive is how seamlessly sorghum aligns with broader conservation agriculture goals,” Ritz Johnson says. “U.S. sorghum farmers are leading the way in proving that profitability and stewardship can go hand-in-hand, many of which are motivated by the long-term benefits: healthier soils, reduced input costs and greater strength in the face of extreme weather.

“As conservation programs and incentives here and abroad expand, sorghum farmers are well-positioned to lead the charge in sustainable production,” she adds.

Expanding Opportunity

Ritz Johnson now leads an organization that is tasked with ensuring this position for sorghum growers is not squandered. To accomplish that, they are tackling downstream demand by engaging with consumer-packaged goods (CPG) companies who are targeting sustainability in their supply chains.

“Sorghum offers them a natural, proven way to advance those goals — and we’re working hard to help them see the opportunity,” she says.

That vision has USCP doubling down on farm-level data as a means to more fully tell sorghum’s sustainability story, specifically with companies who are looking to meet rigorous industry or organization goals.

They are also expanding conversations beyond traditional markets, Ritz Johnson says, to include gluten-free and ancient grain-based foods as well as exploring alternative sectors such as pet foods and biofuels.

Courting the Consumer

In the vein of direct-to-consumer marketing that other agriculture sectors have pioneered, the United Sorghum Checkoff Program is eyeing opportunities to market the crop to consumers as well as CPGs.

Using targeted outreach through influencers, social media and education, specifically in the food space, the organization is sharing what they believe is a “clear and compelling” message on product labels and in conversations with major food brands.

United Sorghum Checkoff Program is reaching all the way to consumers to tout the crop’s benefits through social media and education in the food space.

(United Sorghum Checkoff Program )

“Consumer awareness is the engine that drives demand for sustainable products, and we’re seeing a growing interest in crops like sorghum that offer real natural resource benefits,” Ritz Johnson says. “The challenge — and the opportunity — is to make sure consumers understand why sorghum stands out.”

“Ultimately, the more consumers recognize the value of sorghum, the more demand we’ll create — not just for the crop itself but for the sustainable practices that farmers are using to grow it.”

America’s Conservation Ag Movement is a public/private collaborative that meets growers across the country where they are on their conservation journey and empowers their next step with technical assistance from USDA-NRCS and innovation solutions and resources from agriculture’s leading providers. Learn more at americasconservationagmovement.com .

How Much Meat Will the U.S. Eat in 2025 and 2026?

Fri, 22 Aug 2025 15:48:46 GMT

Domestic availability of red meat, poultry and eggs is projected to increase in 2025, driven by gains in chicken and pork availability, and is expected to rise further in 2026, reports the USDA Economic Research Service (ERS). This increase stems from USDA’s forecast of per capita supply available for use on the domestic market.

How are these numbers determined? ERS says availability, also known as disappearance, serves as a proxy for consumption and includes fresh and processed meat and eggs sold through grocery stores and used in restaurants.

“The latest USDA data indicate 226 lb. of red meat and poultry and about 22 dozen eggs are available per U.S. consumer in 2025. By 2026, per capita availability is forecast to increase to 227 lb. for red meat and poultry and to 23 dozen eggs,” ERS reports.

Data for 2025 and 2026 are forecasts. Per capita meat availability serves as a proxy for consumption and does not reflect indirect uses, such as pet food or food waste.

(Data: USDA)

Chicken Projected to Be Most Consumed Animal Product
For chicken, per capita availability of broiler meat has been growing for many years and is projected to reach 102.7 lb. in 2025 and 102.8 lb. in 2026, ERS says. This will make it the most consumed animal product in the U.S.

However, availability of turkey has been falling in recent years and is projected to reach a low of 13.0 lb.per person in 2025 but increase to 13.6 lb. in 2026.

Per capita table egg availability for 2025 is projected at 21.5 dozen and is projected to increase to 22.9 dozen per person in 2026.

Pork and Beef Projections
ERS reports that pork availability per capita is projected at 49.7 lb. in 2025 and 50.9 lb. in 2026, up from 49.9 lb. in 2024.

Meanwhile, per capita beef availability for 2025 is projected to be slightly lower than 2024 at 58.5 lb., but is projected to decrease further to 56.9 lb. per person in 2026.

3 Factors Fueling Americans' Obsession with Protein

Fri, 06 Jun 2025 15:48:10 GMT

Meat is having a moment, and the craze for more protein is benefiting protein across the board. The fact cattle prices continue to crush records is proof of that, as well as the robust demand for pork.

“I am still bullish of dairy. I’m bullish of beef. I’m bullish of pork and poultry,” says Dan Basse, AgResource Company . “I think as you think forward, I see the next two or three years as being the years of protein. It’s that side of the fence in agriculture that’s going to do very well.”

Basse’s optimistic outlook on protein hinges on one major factor: consumers’ ability to pay for it.

“I’m still bullish of protein, until we see the labor force start to shrink in the United States, and I start to see disposable income coming down. Again, there’s not a period looking backward in history that I can find where disposable income on a personal basis has risen this quickly from 2020 to 2025,” he says.

“Meat protein, not just pork or not just beef, but meat is having a moment. I’m an economist, so I have concerns on the macroeconomic front, but it is exciting to be in an era where the public’s desire for meat protein is growing,” says Glynn Tonsor, a professor in the Department of Agricultural Economics at Kansas State University.

People Are Eating More Protein Than Ever Before

Cargill’s 2025 Protein Profile found people are eating more protein than ever before. The report found 61% of consumers report increasing their protein intake in 2024, which is up from 48% from 2019.

According to Cargill, the shift in shoppers’ preferences toward whole, minimally processed foods, is giving protein a chance to shine.

“It’s really important to remember the U.S. public wants meat protein,” Tonsor says. “There are a lot of signs. We are in a pro protein environment. I don’t think there’s issues. I actually think there is a celebration about the taste and the eating experience and so forth for all the major proteins.”

A Slight Shift in May’s Monthly Meat Demand Monitor

Tonsor also authors what’s called the Monthly Meat Demand Monitor (MDM) , which tracks U.S. consumer preferences, views and demand for meat. The first half of the year, the MDM continued to show consumers’ growing demand for protein, but in the report in May, it did show a slight shift.

“The biggest takeaway from the MDM would be we have two conflicting patterns,” says Tonsor. “One is the public really wants meat protein, but the macroeconomic environment is giving us some pause. So, we continue to see strong signals people want protein. Taste is leading that decision, so that’s good and very supportive, but we also see lots of uncertainty on the macro-economic front. So, trade discussions, elevated unemployment, inflation concerns and so forth. Those are not supportive of meat demand, so those are the two trends that are fighting the way out.”

Tonsor points out the May MDM showed a pullback in consumers eating away from home, like in restaurants, but showed a boost in retail demand, which would be grocery stores.

“But part of that is a substitution away from restaurants,” he says. “And that’s across the board. It’s not just pork or beef or chicken. It’s all of them that we track, so I do think it is a headwind that is growing here in 2025.”

Tonsor says if confidence in the economy rebounds, and tariff discussions ease, the restaurant piece of meat demand could quickly recover, especially considering we’re entering the summer months, where meat demand is typically higher.

3 Major Drivers Behind the Protein Craze

And even with the pause in restaurant demand in May, Tonsor says the push for consumers to eat even more protein doesn’t seem to be going away, and it’s being driven by three major factors.

“More people are having meat as an ingredient rather than center of the plate. So, it’s coming across as more convenient. It’s an input,” Tonsor says. “Also younger folks in particular are quite physically active, and their demand for protein and that broader lifestyle is elevated.”

Those two factors are strong drivers of meat demand, especially in the younger crowd. But another supportive piece of the growing demand for protein is related to weight loss drugs.

“We have a GLP-1 effect, so Ozempic, Mounjar and so forth, in the MDM, we put out a report earlier this year, showing maybe 15% of the U.S. public is using the GLP-1,” Tonsor says. “That’s a higher end, but that’s what we estimate. And if you are on those products, you’re actually consuming beef, pork and chicken more frequently.”

He says all of those things add up to support the growth in meat demand.

“It’s the income and the future status of my finances is mainly the only headwind at the moment, and that’s why I keep reiterating that concern,” Tonsor says.

Demand is What’s Pushing Cattle Prices to New Highs

It’s not just the hog industry that’s benefiting from the strong demand, both domestically and with exports

Cattle prices continue to crush records. But according to one veteran cattle analyst, it’s not historically tight cattle numbers pushing prices higher, it’s the strong demand.

“This price increase that we’re experiencing in the industry is demand-driven,” says Randy Blach, CEO of CattleFax. “Our per capita supplies were flat last year. They’re going to be flat again this year. And yet we’ve had a market that’s gone from a $1.75 to $2.25. That’s all been demand driven with what we’ve seen throughout the industry.”

The incredible demand is pushing beef demand to its highest level in nearly 40 years.

“Beef demands that are a 37-year high,” he says. “And I think when people think about demand, obviously quality has been the key to that. We’ve seen the quality of the animals being produced has increased substantially.”

As record-high cattle prices also push the cost of beef higher, that would push consumers to eat more pork and chicken in the past. But it’s a trend Tonsor is not largely seeing this time around.

“We see some of that, but not nearly as much as you might think. So, there’s less of that adjustment than historically we would have seen,” Tonsor says. “This is 100% Glynn’s opinion, but I think habits are a little stickier. Persistence of an item in your meal is a little sticker than in the past. Meat is an ingredient, not just the center of the plate. Higher beef prices have not elevated chicken demand as people have expected, and I think it’s because the consumer substitution effects, they exist, but they’re not as strong as they were 20 years ago.”

As consumers crave more protein, it’s a bright spot for all of livestock with many hopeful this isn’t just a trend but a permanent fixture on consumers’ plates.

The Farm Babe: 3 Ways To Become A More Effective Advocate

Thu, 27 Feb 2025 20:43:36 GMT

Florida-based Michelle Miller is a farmer, social media influencer and speaker well known for her brand “ The Farm Babe. ” Through these platforms, she connects with consumers and debunks misconceptions about modern agriculture.

Miller recently joined an episode of the Ag Inspo podcast with hosts Rena Striegel and Ron Rabo to share more about her platform and what others in the ag industry can do to better reach consumers.

Have a Point of View
One of the keys to reaching a large audience and gaining traction, Miller says, is to make sure your content stands out.

“Part of my driving force is I had more of a big city background. Sometimes farmers take their perspective for granted because it’s all they know and all they’ve ever done. But for somebody on the outside looking in, it’s pretty incredible,” she says. “People have no idea what a harvest looks like. They have no idea what a combine does. They don’t know how livestock are raised. They’ve never seen the birth of a calf. How cool is that? Share it.”

Find What You’re Comfortable With
Maybe you have an interesting message to share, but–like many farmers–aren’t the type who is comfortable in front of the camera. Miller says there’s a way to make that work, too.

“Some of the greatest people to follow, in my opinion, are great to follow because you feel like you know them,” she says. “What were to happen if you were to bring your dog, your kids, your spouse or that goofy grandma or somebody who makes people laugh?”

Other great storytelling tools are captions and voiceovers.

“Maybe the video is just your equipment, but through the caption you can say, ‘Here is my John Deere combine. When we started farming in the ‘80s, it was $50,000 and now this is $900,000.’ You can create a message that improves policy and raises awareness and education for the general public through the caption,” Miller says.

Shoot Your Shot
Sometimes reaching the consumer is as simple as taking a chance and contacting them directly.

Miller recalls doing this when Burger King released a commercial that painted agriculture in a negative light, promoting its new initiative of feeding cattle lemongrass to reduce methane emissions.

“I thought ‘what if we could just have a conversation?’ So I Google searched who the global chief marketing officer for Burger King was, and I just sent him a tweet politely explaining why we found the ad so offensive, and inviting him to come on out to the farm,” she explains.

Burger King took her up on that offer.

“Their C-suite executives came out to the farm, and then I put together a two day tour. We went to a methane digester, feed lots and my farm. I had Iowa State involved, Iowa Farm Bureau and some ruminant nutritionists,” Miller says. They ended up retracting that original ad, and they did a new ad. A new commercial was filmed on my farm, as well as in northeast Iowa with a bunch of other farmers.”

As far as how to get started as an agriculture advocate, Miller offers this advice:

“Just take a step back and try to think about what you do and why. What are the greatest parts of your job? Tell that story, because you might see it every day, but the average person doesn’t. That’s the content that you put out there.”

Farmers Speak Up On The Importance Of Global Ag Innovation

Thu, 23 Jan 2025 18:06:35 GMT

By Whitney McFerron

There are many benefits of having strong agricultural industries and thriving food systems both in the U.S. and abroad. In the U.S., agriculture contributes over $1.5 trillion to our GDP, thanks to our farmers’ high production efficiency and strong exports into global markets.

It’s also important that agricultural industries outside of the U.S. remain strong. History shows when countries have better food security and growing economies, they can actually increase imports, creating new trading partners for the U.S. Countries that are more food and nutrition secure are also more stable.

A recent report from Farm Journal Foundation found global hunger and malnutrition are linked to numerous geopolitical risks, including immigration, radicalization, terrorist threats and environmental degradation, so it’s important smallholder farmers abroad have the tools they need.

The more than 30 farmers in Farm Journal Foundation’s Farmer Ambassador program, who come from 23 states and represent all aspects of American agriculture, understand the value of investing in ag innovation and development both in the U.S. and overseas.

In 2024, Farmer Ambassadors and Farm Journal Foundation staff held more than 100 meetings in Washington, D.C., with members of Congress, legislative staff and executive branch officials to educate them on the value of investing in agricultural research, global food and nutrition security programs, and international agricultural development.

Iowa Farmer Ambassador Sarah Tweeten and Delaware Farmer Ambassador David Marvel are among the more than 30 Farmer Ambassadors in the program.

(Farm Journal Foundation)

Using Innovations to Solve Challenges
Farmers all over the world face significant challenges as volatile input costs, extreme weather events and shocks such as COVID-19 and the Russia-Ukraine war have made agriculture more unpredictable than ever. One way to help farmers prepare for risks is to invest in agricultural research and innovation.

Drought-resistant crops, new treatments for crop and livestock diseases, and precision agricultural technologies are all innovations that can make a big difference for farmers operating on razor-thin margins.

Public institutions that conduct agricultural research are extremely important for driving innovation. They often focus research on underrepresented areas, such as food safety, animal health, pests and disease treatments, and crops with smaller acreage in the U.S., such as wheat, rice and sorghum. Importantly, public sector research often helps unlock early stage innovations that can later be developed by the private sector. One important institution funded by the U.S. government is the Foundation for Food and Agriculture Research (FFAR), which invests in impactful public-private partnerships in agricultural research and matches on average an additional $1.40 in private sector funding for every taxpayer dollar.

Public investment in agricultural R&D has an extremely high return on investment, returning about $20 to the U.S. economy for every $1 spent, according to USDA. In spite of this, USDA data also shows public funding for agricultural research has been declining for the past two decades. At the same time, competitors, including China and the European Union, already outspend the U.S. on public agricultural research, putting America’s position in global agricultural trade at risk, according to a Farm Journal Foundation report.

There are more than 30 farmers in Farm Journal Foundation’s Farmer Ambassador program, who come from 23 states and represent all aspects of American agriculture.

(Farm Journal Foundation)

Championing Agricultural Innovation Across the Country
Farm Journal Foundation’s Farmer Ambassadors are working hard to reverse this trend. Along with meetings in Washington, D.C., they held numerous events around the country to educate important stakeholders about the value of investing in and scaling innovation. They also participated in public speaking engagements, interviews with media outlets, and wrote op-eds in news publications about this important issue.

For example, Farmer Ambassador Kassi Tom-Rowland hosted U.S. Rep. Rudy Yakym, R-Ind., on a tour of her Indiana row-crop farm, followed by a public discussion about how global food and nutrition security impacts U.S. national security. California Farmer Ambassador Colby Pereira hosted U.S. Rep. Jimmy Panetta, D-Calif., at her produce operation, Braga Fresh, to discuss how U.S. agricultural innovations can support international development.

Farmer Ambassador Renee Strickland, a cattle rancher from Florida, authored an op-ed in the Miami Herald on how farmers were impacted by hurricanes last year and how investments in agricultural innovation could make them more resilient. Farmer Ambassadors A.G. Kawamura of California and Brad Doyle of Arkansas also participated in events on the international stage, speaking at side events and briefings hosted by Farm Journal Foundation at the UN Climate Conference COP29 in Baku, Azerbaijan.

As a nonprofit, nonpartisan organization, Farm Journal Foundation works to educate both Republicans and Democrats on global food and nutrition security. Fortunately, many members on both sides of the aisle are champions for ag development and innovation. The Foundation looks forward to continuing its work this year with the new government administration, and as Congress continues debating important legislation, such as the farm bill.

Agriculture is a dynamic, innovative industry that is critical to food security, national security and economic growth. Farm Journal Foundation Farmer Ambassadors, and countless other farmers across the country, understand the value of supporting agricultural innovation and development both in the U.S. and overseas, and they are using their voices to bring more champions to support this important cause.

Consumers Are Driving Sustainability Initiatives

Wed, 04 Dec 2024 18:00:00 GMT

By Heather Gieseke

When it comes to sustainability initiatives, many farmers believe it’s politics driving carbon strategies and programs.

True, climate change and politics have become interconnected. Climate-smart grants, for example, have incentivized businesses to reduce carbon emissions.

But it’s consumers inducing U.S. companies to carry out these initiatives. Today’s shoppers want to know about the climate impacts or the humanitarian elements behind how their food is grown or services are delivered.

Purchasing Power Change

Sustainability is also important among younger generations, who will soon have most of the purchasing power in the U.S.

“Companies that understand these trends, and create truly sustainable brands that make good on their promises to people and the planet, will seize advantage from brands that make flimsy claims or have not invested sufficiently in sustainability,” reports the Harvard Business Review.

Products making environmental, social and governance-related claims averaged 28% cumulative growth between 2018 to 2022, versus 20% for products that didn’t, according to McKinsey & Company.

It’s important to note these sustainability initiatives are completely voluntary. They’re not being driven by government requirements but by consumer trends. That should give farmers more confidence in the increased opportunities ahead for incorporating climate-smart practices.

Pay-Off for Farmers

It’s also important to keep in mind there are additional rewards beyond reducing emissions or taking advantage of government programs or supply-chain premiums. Sustainability practices take time, learning and adjustment, but they can bring significant on-farm benefits, such as soil health, improved water quality and availability, reduced expenses and, ultimately, greater productivity on your farm.

The shift in purchasing power, the drive for transparency and the growing passion for food’s journey is certain to continue driving increased demand for sustainable products that are more than just a label. Increased transparency across the supply chain is resulting in meaningful and measurable stories of how sustainable, climate-smart products are better than their less sustainable counterparts.

Farmers should be increasingly aware of how you, too, can create your own measurable stories, whether it’s selling carbon offsets you’re generating on your farm or earning premiums for grain produced with fewer emissions than your neighbor down the road.

These changes are valuable both on and off the farm and will continue to be there in the future.

No one knows better than you that the future of your farm depends on balancing practices and profits that sustain your land, resources and family . The stakes are evolving based on weather patterns, technology, market demand and more. What actions are you taking to remain resilient?

New Report Reveals Ag Isn't On Track To Meet Rising Demand

Wed, 09 Oct 2024 18:43:36 GMT

Virginia Tech’s College of Agriculture and Life Sciences recently released its 2024 Global Agricultural Productivity (GAP) report , showing global agriculture productivity is falling behind the curve.

“Global agricultural productivity growth has slowed from 1.9% annually during 2001-2010 to 0.7% annually during 2013-2022,” said Tom Thompson, the report’s executive editor, associate dean of the College of Agriculture and Life Sciences, and director of CALS Global at Virginia Tech. “This dramatic slowdown will prevent us from reaching our agricultural production and sustainability goals by 2050, with potentially dire impacts on food and nutrition security, unless we reverse this trend.”

Agricultural productivity growth during this period was even lower in the U.S. – averaging 0.21% annually. The report’s authors attribute this in part to the lack of public funding in agricultural research and development. At the same time, South Asia led progress at 1.4%.

“South Asia’s TFP growth highlights the critical role of innovation and investment,” said Tabila Nakelse, the report’s research lead. “Achieving sustainable productivity growth requires bridging the gap between research and widespread adoption. This lesson is vital for all regions seeking to overcome challenges and boost agricultural efficiency.”

Global total factor productivity should be at 1.91% annually to meet the demand projected in 2050, according to the report. But due to current productivity being so far below that level, it may actually need to rise to 2%.

“Tackling agricultural productivity growth will require cooperation across political and philosophical lines throughout the food system,” said Jessica Agnew, associate director of CALS Global and the report’s managing editor. “Using our resources wisely and most efficiently is applicable to every farmer, in every farming system, at every scale of production.”

Some of the risks of not ramping up growth include:

Reduced competitiveness in global agricultural markets
Deterred investment in the agricultural sector
Increased inequalities, particularly for smaller farms and rural communities
Limited ability to adapt to climate change
Higher food prices
Overuse of inputs or natural resources

5 Recommended Priorities To Help Bridge The Gap
In order to meet these growth goals, the report emphasizes the importance of closing the disconnect between the development of new innovations and their delivery to producers, something the authors call “the valley of death”.

It outlines five main priorities to help solve this issue and drive agricultural productivity growth:

Invest in agricultural innovation systems, including the infrastructure, human capital and skills development, financial systems, partnerships, socio-cultural considerations and environmental conditions required for producers at all scales of production.
Expand market access so all levels of producers can access competitive input and output markets to make informed decisions.
Strengthen regional and global trade.
Reduce food loss and improve output quality as climate, pest, disease and resource challenges intensify.
Cultivate partnerships to accelerate the development and dissemination of technologies, practices, and knowledge.

Government Price Controls Didn't Work The First Time, And They Won't Now Either

Fri, 20 Sep 2024 19:37:09 GMT

Do you ever get the feeling that you may be living in a time warp? I mean, doesn’t it seem just a little weird that bell-bottom pants and Marcia Brady hairstyles are the latest rage? I don’t know about you, but one trip through the 1970s was good enough for me.

Unfortunately, bad fashion sense and bad hairdos are not the only bad idea that has been resurrected from this tumultuous decade. Recently, the idea of reviving government price controls on food and other consumer staples has been injected into the public forum.

Why Now?
It’s an election year, and a presidential election year at that. We all know politicians will say almost anything if it will mean just one more vote come election day.

On Friday, August 16, Democratic presidential candidate Kamala Harris floated a public policy that hasn’t been tried since the Nixon administration. To address rising food prices, Harris proposed a federal ban on price gouging, focusing on “excessive” and “unfair” mergers and acquisitions that give big food companies the power to “jack up” food and grocery prices.

There is a reason that such a heavy-hand tampering by the government in the supply and demand workings of the marketplace was banished from the political landscape as we know it. Former president Richard Nixon tried it, and it failed miserably! It would have been prudent for Vice President Harris to have brushed up on her history before rolling out this bad batch of political candy to lure the last group of undecided voters.

The twist of historical irony is that Nixon rolled out his first series of economic control measures, including wage and price freezes, almost 53 years to the day that Harris publicly floated her ideas. On August 15, 1971, in a nationally televised address, Nixon announced, “I am today ordering a freeze on all prices and wages throughout the United States.”

After a 90-day freeze, increases would have to be approved by a pay board and a price commission, with an eye toward eventually lifting controls — conveniently, after the 1972 election. Unfortunately the American people would pay the price — but not until after Nixon coasted to a landslide re-election in 1972 over Democratic Senator George McGovern.

Not Then, Not Now
By the time Nixon reimposed a temporary freeze in June 1973, Daniel Yergin and Joseph Stanislaw explain in “The Commanding Heights: Battle for the World Economy,” it was obvious price controls didn’t work: “Ranchers stopped shipping their cattle to market, farmers drowned their chickens, and consumers emptied the shelves of supermarkets.”

When price controls were implemented in 1971, inflation stood at 5.8%. By the summer of 1975 it had ballooned to 8.7%. For the rest of the decade, inflation totally derailed the U.S. economy. The real pain came with what it took to ultimately slow that train. The Federal Reserve took the Fed Funds rate from a low of 3.75% in 1971 to an astronomical 19.29% in 1981.

For U.S. agriculture, these were the worst of times. As interest rates rose and land and commodity prices bottomed, U.S. agriculture endured one of the darkest periods in modern history. The final governmental gut punch came in 1979 with President Jimmy Carter imposing a grain embargo on the Soviet Union, resulting in a 20% decline in agricultural exports.

Farmers saw the rally cry to “plant fencerow to fencerow” and “feed the world” turn into prayers so that they could feed their family. Bankruptcies and suicides became all too common as the fabric of rural America ripped apart. Government had failed them, and their best hope was that Willie Nelson would show up to do another Farm Aid concert in their back 40.

With farm income expected to record its largest year-to-year dollar drop in history, now is not the time to roll out love me ’til election day economic proposals. Still reeling from supply chain chaos caused by the Covid-19 pandemic, U.S. agriculture is in a weakened state.

The Real Drivers
It is important that all links of the U.S. food supply chain remain strong. With average profits of less than 3% for farms and only 1.6% for grocery stores, one has to wonder who the government is going to have to squeeze if price controls were implemented. Vice President Harris specifically pointed her finger at large corporate food processing companies and suppliers.

Although the Harris proposal was light on specifics, it marshals the Federal Trade Commission and state attorney generals with new authority to “impose strict new penalties” on companies that price gouge. She also said her administration would address “unfair mergers and acquisitions” that contribute to higher priced food and groceries.

One would hope if these government agencies were currently doing their day job, then the above mentioned issues should not be a problem in the first place. We don’t need a governmental “grocery czar” telling us what a box of Cheerios should or shouldn’t cost.

Our government needs to look in the mirror to see the key factors that have really driven up grocery prices. Energy costs and interest rates are two of the biggest. Both have a huge impact on food production costs and the price paid at the grocery store. Over the past four years, the consumer price index for energy has risen 32%. In that same time, the prime interest rate has gone from 3.25% to 8.50%.

Even Captain Obvious could connect the economic dots from the current administration’s policies and legislative actions to the reality that is happening to consumers at the checkout line. On day one in office, President Biden canceled the Keystone XL pipeline, and he and Harris have continued for the past three-and-a-half years to throttle the traditional fossil fuel industry at every turn. Meanwhile, the Congressional Budget Office projects that under Biden’s four-year term $7.902 trillion will have been added to our overall national debt. Such actions and polices have been a lead foot on the gas pedal that is driving inflation.

It’s That Bad
So, before we grant our government Wizard of Oz powers over the nation’s food supply chain, it might behoove Vice President Harris and her economic advisers to address the root cause of inflation. Instead of trying to fix it artificially through failed policies of the past and election year pandering, they should address the real issues behind high food prices and inflation as a whole. When friendly press allies such as the New York Times, Washington Post and CNN all shot the Harris plan down from the moment it left her lips — you know it’s bad. The Washington Post called it a “populist gimmick”, and personal finance guru Dave Ramsey said, “It’s not sustainable because it’s artificial.”

Let us hope and pray that such policies will forever remain as a footnote in our history books and not become part of our future economic reality. Whenever I hear something like this I’m always reminded of what Ronald Reagan considered the nine most terrifying words of the English language, “I’m from the government, and I’m here to help!”

Celebrating World Milk Day and the Farmers Who Make Its Enjoyment Possible

Tue, 04 Jun 2024 12:38:10 GMT

By Rory Christie: Newton Stewart, Scotland, United Kingdom

Nobody drinks or eats the soil—but the quality of every glass of milk begins with the health of the soil, including the efficiencies that farmers can put into it and draw out of it.

As we approach World Milk Day on June 1, we should celebrate a nutritious beverage. At the same time, this is an opportunity to recognize the farmers who make its enjoyment possible and everything that goes into what they do.

When people think about dairy farmers, they tend to think about the milking of cows. That makes sense. On my farm in Scotland, we manage a herd of more than 1,100 milking cows. These animals and milk they produce are at the heart of our business.

Yet successful dairy farming requires more than cows. It starts with the soil and its blend of minerals, moisture, and microorganisms. We invest a significant amount of time and energy on keeping it optimal. This has been true for as long as we’ve farmed, but we’re always updating our knowledge and techniques and adapting to circumstances.

Soil in optimum health supports healthier crops, which means heathier cows producing nutritious milk.

Here’s an example. To make sure our cows have good forage for grazing, we used to plough 300 acres per year. Then we discovered new technologies that have allowed us to eliminate our ploughing almost entirely. Instead of ripping up the ground when we put seeds in the soil, we now use a method of direct drilling for our grass and cereals. This keeps disruption at a minimum—and boosts the soil’s health.

We have always worked hard to manage the soil’s acidity, which we measure in units of pH , from zero to 14. The lower the number, the higher the acidity. Two decades ago, we aimed for a pH of 5.2 to 6.0. Today, with our direct drilling, reduced artificial fertilizer use and variable-rate lime spreading, we try to achieve 6.7 pH, which is almost exactly in the middle of the scale—and a level that allows us to cut back on inputs even as we grow the same amount of grass or more.

That’s the first benefit. There are plenty of others.

When heavy equipment moves across fields, it compacts the soil structures that allow roots to thrive. Because we’ve limited our tillage, we now drive our tractors less and thereby reduce compaction. We’ve also cut back on our use of fuel. That’s an economic savings for us that also decreases our farms greenhouse gas emission.

Growing more grass means we’re doing a better job of promoting the biogenic carbon cycle , which involves taking carbon from the atmosphere, where it poses a problem, and putting it in the soil, where it contributes to the flourishing of plants. This is an important part of sustainable agriculture. With smart policies, it could even create a new gold rush for farmers.

We’re also trying to breed better cows, based on traits such as milk volume and quality. We take the calves from the cows in the top 25 percent and use them to replace the cows in the bottom 25 percent as we cull the herd. We’re one of the first dairy farms to do this with crossbred milking cows and we believe it will introduce even more efficiencies into our operation.

Our farm also is committed to renewable energy. We have installed 250 kw of solar panels and our wind turbine adds another 33 kw. We don’t have a connection to the national electricity grid because right now it is economically prohibitive to buy one. Because we must use everything we produce, we continue to invest in power balancing and put considerable thought and effort into setting up systems that use our power efficiently. This investment in renewable energy has cut our electricity costs by 30 percent.

My experience as a dairy farmer has taught me that economic and environmental goals are not at odds with each other. Instead, they are often symbiotic. As our carbon footprint shrinks our profits rise because we’re becoming more efficient with our resources. We can always do better: If supply chains and consumers were to appreciate that food prices should reflect more than merely the cost of production, farmers like me would have new capital to invest in the soil, biodiversity, and renewable energy.

My hope is that drinking and eating our nature-friendly milk and cheese gives you a delicious and healthy diet—and it helps me do well by doing good.

Rory Christie is part of a progressive and innovative family-run business that specializes in pastoral dairy and intensive pig production in Scotland. Rory is a member of the Global Farmer Network. www.globalfarmernetwork.org

8 Factors Shaping the Rural Economy in 2024

Mon, 18 Dec 2023 16:31:33 GMT

CoBank has released their 2024 outlook report , which takes a look at the key themes the organization expects to shape agricultural and the rural economy in the coming year.

Director of CoBank’s Knowledge Exchange Rob Fox shares that while the U.S. economy is still in good shape overall, high prices are expected to continue to take a toll.

Here are the top eight factors to watch in 2024.

1. Global Slowdown
Global growth in 2023 is estimated at 2.5%, which is less than half of the average growth between 2000 to 2018. This trend is expected to continue into next year.

CoBank recommends accounting for permanently slower global economic growth in your business plan moving forward.

2. Prices Remain Elevated
While inflation and the unemployment rate are down, higher prices appear to be sticking.

According to the report, the price of food at home has risen by 25% in the past three years and has affected consumer shopping behavior as a result. Retail spending has fallen in all but two months through the past year – which is expected to continue.

“Consumers are increasingly feeling the pinch of higher prices for food, housing and other essential goods. People have anchored mental expectations about what prices should be and those anchors take a long time to move,” Fox says. “Consumers are beginning to realize some prices aren’t going back to where they were three years ago and changing their purchasing behaviors to reduce spending. That will create stronger headwinds for the U.S. economy in 2024.”

3. Slowed Government Progress Continues
With slim majorities in both the House and Senate, shutdown deadlines continue to loom. Little progress has been made on major legislation such as the Farm Bill.

While CoBank shares the work already put into the Farm Bill could incentivize committees to pass it before 2025, the election of a new Senate Chair and the inexperience of many members of Congress may limit progress.

4. Lower Profitability Resulting From Several Factors
Commodity prices have seen the effect on high interest rates, a strong U.S. dollar and the resiliency of the U.S. economy. And despite the drop in fertilizer prices, the cost of production for agriculture commodities remains high.

CoBank is anticipating ag commodities to benefit from more upside price risk than down in 2024 due to tight inventories and a strong El Nino weather pattern during the growing season.

5. An Increase of Planted Soybean Acres
An expansion of soybean acreage is expected for two reasons: 2023’s smaller soybean harvest in the U.S. and an increase in biofuel demand.

USDA’s early release of its Agricultural Projections to 2033 points to planted soybean acreage rising 4% YoY to 87 million acres this spring.

Current 2024 futures prices suggest a decline in prices for the sector, but the outlook relies heavily on the value of the U.S. dollar, conditions of wheat in Russia and South America’s corn and soybean harvests.

6. Livestock Growth Plans Put On Hold
Lower feed costs and domestic demand should help profitability a bit in the livestock sector, but costs are still high. CoBank expects the industry to focus heavily on efficiency, technology and risk management.

7. Uncertainty In The Dairy Industry
Increased prices for consumers could keep sales growth at a slow rate, though they’re still expected to grow. International demand will play a large role in profitability and lower feed costs paired with improved cow productivity should increase milk production to meet the need.

8. Power, Energy And Broadband Sectors Face Obstacles
Global conflicts create uncertainty for commodity markets and energy prices. While oil prices have fallen by 5% in the fourth quarter, CoBank does not anticipate this environment to last.

As for broadband, investment continues to flow into the industry. However, it will not be without challenges due to a tight labor market, tight credit conditions and a difficult permit process.

Click here to read CoBank’s full report.

Keeping the Politics Out of Labels

Sun, 17 Dec 2023 13:00:00 GMT

By Jenny Holtermann: Wasco, California USA

We slap labels and warnings and disclaimers on everything these days—and the more we do it, the less we seem to pay attention.

When was the last time you read the long legal notice that asked for your consent before you upgraded your phone’s operating system? Have you ever made a joke about getting arrested by the mattress police because you removed a tag, supposedly “under penalty of law”? (Spoiler alert: It’s okay for buyers to remove mattress tags.) And don’t get me started on the reckless overuse of “non-GMO” labels, especially when they involve salt —a mineral that can’t be GMO or non-GMO because it doesn’t even have genes.

Each of these examples owes its existence to anxious lawyers, meddlesome regulators, or misleading marketers.

What they rarely consider are the basic needs of ordinary consumers for accurate and useful information.

That’s why I’m so encouraged by a new federal court ruling that blocks my home state of California from mandating a bad and inappropriate label on a popular agricultural product.

Last month, the U.S. Court of Appeals for the Ninth Circuit said it was unconstitutional for California’s government to require the placement of cancer warning labels on glyphosate, a crop-protection tool that helps farmers and gardeners fight weeds.

Glyphosate is one of the oldest, most popular, and most effective herbicides in the world. Regulatory agencies everywhere have deemed it safe. That includes the Environmental Protection Agency here in the United States, as well as the European Food Safety Authority and the European Chemicals Agency , plus the Food Safety Commission of Japan and agencies in Canada and in Australia

and New Zealand .

This is the very definition of a scientific consensus: A result found to be true and confirmed repeatedly by international teams of researchers.

So why would a single state like California seek to require a warning label that is essentially a false alarm? The answer is simple: Labels have become political. Many of them are no longer about what people need to know, but rather what special-interest groups seek to impose—in this case, environmental activists who want to raise costs and uncertainties among farmers and consumers.

The federal judges slapped down California’s regulation because public officials chose to play politics instead of following sound science.

We need good labels, of course—and especially when it comes to our food. The “ Nutrition Facts ” label required by the Food and Drug Administration makes sense. It provides data on calories, ingredients, and serving sizes in a form that people can understand as they decide what to buy and eat.

We need proper warning labels, too. The FDA requires labels on safe products that may be found in kitchens everywhere, such as Clorox Bleach . Keep it out of the reach of children!

Crop-protection products such as glyphosate need labels that offer usage instructions. They provide helpful information on wearing gear such as long-sleeved shirts during application, washing hand thoroughly afterward, and how to dispose of empty containers.

On my almond farm in California, we use safe crop-protection products to protect our trees and nuts from pests and disease. We study and take required tests to receive certificates and licenses that indicate we are prepared to use these important tools safely. We also enroll in continuing-education classes to make sure we’re up to date on best practices.

All of this preparation is important to us as we work together to grow the healthy and nutritious food that our customers expect, always putting safety first. We also do it because it’s good for almond trees, keeping them healthy during the productive lives, which can last as long as 30 years. Most of all, we do it for our family: My children live and play in our fields, and we’d never put them in harm’s way.

When public officials play politics with labels, however, they put everything at risk because they encourage people not to take their words and warnings with the seriousness that appropriate labels deserve.

The federals judges saw the threat—and they wisely struck a blow against the proliferation of pointless labels.

Their wisdom recalls a famous line from the movie “The Incredibles.” Confronted with the platitude that “everyone is special,” a kid replies: “Which is another way of saying no one is.”

In other words, when everything carries a label, then nothing does—and the surest way to get consumers to stop paying attention to labels is to overwhelm them with labels full of confusing, useless, and deceptive information.

Jenny Holtermann is a 4^th generation family farmer, working with her husband’s father, brother, and families to grow almonds in California. She is an avid agvocate for agriculture and water management. Jenny is a member of the Global Farmer Network. www.globalfarmernetwork.org

ADM: Sustainability Important for Consumer Trust and Purchases

Wed, 08 Nov 2023 20:53:21 GMT

In a recently published report , ADM shares new insights for consumer behavior regarding regenerative agriculture.

The company surveyed consumers and decision-makers in the retail and consumer-packaged goods (CPG) sectors in July via their online platform, “Outside Voice.” Some of their key insights and takeaways include consumer trust, purchase consideration, and future regenerative agriculture trends for CPGs and retailers.

Consumer Insights
ADM surveyed over 1,500 adults in their research and found that nearly three-quarters of them agreed they would prefer for over half of their food and beverage options to be sustainably sourced.

More than 70% of the consumers said they expect companies to sustainably source ingredients and products, while 65% said they are more likely to purchase products that have been sustainably sourced.

These preferences play a factor in not only what products consumers are buying, but also who they are buying them from.

Once provided with more information on regenerative agriculture, 73% of the consumers shared they would be more likely to trust retailers and brands using regenerative agriculture programs. At the same time, 72% said they would be more likely to purchase products from those companies.

Retailer and CPG Insights
Along with consumers, over 300 CPG and retail decision-makers were surveyed.

Close to three-quarters of CPG executives and nearly half of retailers shared their company already uses at least one type of regenerative agriculture program. As far as what’s important when beginning one of these programs, 90% of the respondents with a program in place agree finding the right partner was key.

They also shared what qualities the right partner possesses.

Of the remaining decision-makers, 65% say their organization plans to adopt a regenerative agriculture program in the next five years – though more than half of them say their company isn’t moving fast enough on implementation.

Overall, the CPG and retail decision-makers surveyed agreed regenerative agriculture programs have a positive impact on several areas of their businesses.

“Our new research clearly shows that consumers are more interested in products that come from companies involved in regenerative agriculture – and executives understand the urgency to be one of those companies,” said Conrad Givers, ADM’s vice president of strategic differentiation. “From our relationships with hundreds of thousands of farmers around the globe, to our unparalleled R&D and formulation expertise, to our unmatched global footprint, ADM is uniquely positioned to partner with both farmers and downstream customers to meet those growing consumer needs.”

Airlines Push Jet Fuel Subsidies to Help Corn Growers

Tue, 15 Aug 2023 21:49:49 GMT

United Airlines announced in May it’s on track to use 10 million gallons of sustainable aviation fuel in 2023, which is 10 times more than it consumed in 2019. Multiple airlines are showing their interest in SAF for climate reasons and to keep corn growers relevant in the rise of electric vehicles. But environmental activists are pushing back, causing a divide in the White House.

Under the Inflation Reduction Act, the Biden administration is targeting at least 3 billion gallons (11.4 billion liters) of sustainable aviation fuel (SAF) production per year in the U.S. by 2030 as part of its broader push to fight climate change.

“These tax credits, which encourage the use of more eco-friendly fuels, could make or break the prospects of corn ethanol as a sustainable aviation fuel. Airlines, biofuel refiners and oil companies are lobbying for more generous tax credits for ethanol-based fuels that reduce emissions,” says Jim Wiesemeyer, ProFarmer policy analyst.

Ethanol proponents and climate activists disagree over how to measure emission reductions and, therefore, credits.

The ethanol industry is asking the administration to use a methodology to calculate emissions developed by the Department of Energy called GREET that shows ethanol has a lighter carbon footprint as a SAF than when compared to the methodology proscribed by IRA. The method outlined in the IRA was developed by the International Civil Aviation Organization.

Environmentalists, on the other hand, advocate for the Corsia standard, which penalizes fuels more for changes in land use linked to crop planting. Critics argue that supporting ethanol could hinder investments in advanced, less carbon-intensive alternatives to SAF. They say ethanol would increase reliance on older, less efficient fuels.

Wiesemeyer says the White House is divided in which model—GREET or Corsia—to use.

“If tax credits are extended to ethanol, despite its lower emissions reduction compared to alternatives, it could significantly expand the supply of sustainable aviation fuel, making it more accessible and affordable for airlines. This move could help airlines meet emissions targets while avoiding higher costs that come with investing in newer, more expensive sustainable fuels,” says Wiesemeyer.

Food Inflation Outlook for 2023 Drops Below Previous Projections

Wed, 26 Jul 2023 20:34:01 GMT

USDA expects food price inflation for 2023 to be slightly lower at 5.8% compared to the previous projection of 5.9%.

The grocery store price inflation forecast has been significantly reduced by a whole percentage point to 4.9%. Food price inflation for 2024 is expected to considerably decrease compared to 2023, with an expected rise of 2.4%.

Restaurant prices are predicted to increase slightly less than before, now at 7.5% as compared to previous 7.7%. For 2024, a 6.1% rise in restaurant prices is anticipated.

Interestingly, some food categories are expected to experience price declines in 2024, including pork, eggs, and dairy products. Notably, egg prices have shown significant volatility, escalating by as much as 37.8% in February 2023, yet ultimately expected to only rise 2% over the year.

USDA’s initial forecasts often undergo revisions, as seen in the fluctuations in 2023 food price inflation predictions beginning from July 2022. This dynamic forecasting, which includes various inputs like energy, labor, and maintenance costs, particularly affects restaurant prices.

For 2024, USDA projects that food price inflation will be lower than that seen in 2023 and significantly lower than the rise seen in 2022, though these are initial forecasts and subject to changes as more data comes in. However, despite the reductions, consumers will continue to pay more than the 20-year average for all types of food, marking a four-year trend. The anticipated reductions have been tied to interest-rate increases initiated by the Fed.

Pasture to Plate: A Culture-Driven Beef Business

Wed, 26 Jul 2023 17:09:52 GMT

The Ducheneaux family reconnects consumers with their food source

Kelsey Ducheneaux-Scott sat on her front porch, stared out across rolling pastures and thought, “What the hell did I do?” She had just heaved box after box into freezers in the living room, kitchen and laundry room — carefully dispensing 1,700 lb. of ground beef.

Exhausted from the haul (and hoping the circuits wouldn’t blow due to strategically placed freezers) Ducheneaux-Scott couldn’t believe the sheer amount of work before her. How was she going to sell so much grass-fed burger in three months, before her next butcher appointment? Anxiety and stress seeped in during that cold March night in 2020. Little did she know how quickly that product would move.

“COVID hit and there was no beef in any of our stores,” Ducheneaux-Scott recalls. “We sold out of that 1,700 lb. in a matter of three weeks. People realized how easily local grocery stores can be disrupted here in rural South Dakota.”

PASTURE TO PLATE

With a focus on feeding those around her, Ducheneaux-Scott is leading a transformation of her family’s operation. DX Ranch was established in the 1930s near Eagle Butte, S.D., on the Cheyenne River Sioux Indian Reservation. It began with beef cattle and draft horses.

Today, Ducheneaux-Scott and her husband, Monte Scott, work alongside her family raising quarter horses and 280 head of cow-calf pairs in a regenerative production system.

“I am a fourth-generation rancher on DX Ranch, and I’m the 125th generation to steward this landscape,” Ducheneaux-Scott says. “We’ve focused on ensuring we’re not just thinking about the livestock above ground but also thinking about the livestock below ground.”

FATHER-DAUGHTER DUO

For her entire life, Ducheneaux-Scott has worked alongside her father, Zach Ducheneaux. That was until early 2021, when Ducheneaux was selected by the Biden administration to serve as the Farm Service Agency administrator (he received the call for the position while they were at the sale barn).

Luckily, Ducheneaux had prepared his daughter to be a leader on the ranch and in life. They are members of the Lakota tribe, which is a matriarchal society.

“My dad never let me think I couldn’t do something because I was a girl,” Ducheneaux-Scott says. “He empowered me to believe I could do things better because I was a girl and had a different perspective.”

After college, Ducheneaux-Scott wanted to be a rancher and bought into the family’s cowherd in 2016.

“I was obsessive in watching those calves grow that year,” she says. “I might as well have had names and birth certificates for every calf.”

After selling that calf crop, Ducheneaux-Scott headed back to the ranch and pondered the future.

“I drove through two counties that face food insecurity,” she says. “I thought, golly, the system is so broken. We have up to 80,000 head of cattle grazing on 3.2 million acres here on the Cheyenne River Sioux Indian Reservation, and there isn’t any local beef being packaged and made available for purchase. The beef grown here is phenomenal, but none of us get to actually eat it.”

At home, she scribbled down a bunch of ideas and started a business plan. That plan morphed into DX Beef , which has a simple mission: Provide nutritious and local beef that improves its communities.

The direct-to-consumer business featuring their 100% grass-fed beef has expanded in the past two years and is helping the family move away from the commodity market model.

“For the first 90 years of our existence, we’d largely been victim to the commodity markets just like everyone else,” Ducheneaux says. “Behind the effort of Kelsey, in 2020, for the first time, we sold more beef in the box than we did on the hoof. A tremendous advocate for buying, selling and serving

locally, she’s found a way to provide healthier, grass-finished beef to our fellow reservation residents at a price they can afford.”

In 2019, the family sold 12 head of cattle through their business. In 2020, they sold close to 80. This year the total will top 110.

All beef is processed and mostly sold through their online store. To meet local needs, it is sold by the pound or portion of the whole beef. They even do wholesale orders for nearby restaurants.

CULTURE AND TRADITION

The hurdles of small-scale direct marketing are difficult to overcome. Yet Ducheneaux-Scott is seeing great success thanks to her marketing and organizational skills. Through storytelling, which is rooted in their Lakota culture, the family uses technology to share the story of their ranch and products.

“Family comes before the dollar in this operation,” Ducheneaux says. “We’re not solely about monetizing the value of that product, and we realize there are other values to our beef.”

Their story is shaped by their love and respect for the 7,000 acres of tribal land they manage through a tribal lease.

“I’m a grass and soil nerd,” Ducheneaux-Scott says. “Soil health is so critical to a resilient ecosystem. Our grazing system is focused on mimicking nature. This ecosystem evolved from having cloven-hoofed bison and other wildlife graze at a pace that allowed for a robust rest period, so we practice rotational grazing.”

The DX Ranch herd is an Angus base, influenced with breeds that will help the cattle handle the sometimes-brutal central South Dakota climate, Ducheneaux-Scott says. From changing their calving season to May to decrease cattle stress to steadily increasing soil health, the Ducheneaux family aims to work with Mother Nature.

“We have flexibility in our management so we can listen to what the landscape is telling us because she knows better than we do,” Ducheneaux-Scott says. “We

are simply another biological species that’s a part of this greater ecosystem.”

Listen as Kelsey Ducheneaux-Scott discusses her operation with Andrew McCrea on the “Farming the Countryside” podcast:

OTHERS BEFORE ONESELF

As a producer, business owner and member of her nation, Ducheneaux-Scott says she is driven by the opportunity and honor to feed others.

“I’ve come to appreciate having someone tell say your beef tasted good or how they brought their family together around our product,” she says. “Those are the experiences that make feeding cows in a blizzard, slopping through the mud to check calves and sleepless nights all worth it.”

Snapshot of DX Ranch

Operation: DX Ranch includes quarter horses and 280 head of cow-calf pairs in a regenerative production system on the Cheyenne River Sioux Reservation near Eagle Butte, S.D. The ranch is also home to DX Beef, a direct-to-consumer business featuring their 100% grass-fed beef.

Family: Following in the footsteps of her father, Zach Ducheneaux, Kelsey Ducheneaux-Scott is the fourth generation of her family to ranch. She and her husband, Monte Scott, work with several members of her family in the operation.

Leadership: Ducheneaux-Scott is the director of programs for the Intertribal Agriculture Council, which provides a voice for the Native American community on ag policy and programs. In 2021, Ducheneaux was selected to lead the Farm Service Agency, where he oversees 10,000 employees.

Travel to Gettysburg, S.D., and virtually visit DX Ranch.

Quest for Answers: Archie Griffin Applies World Travels to his North Carolina Farm

Tue, 25 Jul 2023 17:28:21 GMT

Archie Griffin knows short-term thinking is critical, but he takes the long view. For his eastern North Carolina family farm, Griffin is concentrating on the years and decades ahead.

“Farmers who incorporate long-term thinking, up to 30 years in the future, are the ones who succeed and differentiate themselves from their competition,” Griffin says.

With a 30,000-ft. perspective and insights from visits to 48 states, 36 countries and six continents, Griffin is a student of innovation. He is adding practices to transform his operation, which primarily has included tobacco, corn, sweet corn, soybeans and wheat.

Originally started in the 1960s by Griffin’s grandfather, Griffin Farms in Washington, N.C., today is led by Griffin and his father, Steve. Griffin returned to the farm in 2012, during sky-high commodity prices, but then prices retreated.

“My dad would tell me you just had to tighten your belt,” Griffin says. “You have to become more efficient. Agriculture is cyclical.”

Yet, Steve Griffin had also driven another mantra into his son’s mindset: “Those who refute change will ultimately succumb to the mercy of those embracing it.”

“Tobacco is about 15% of our acres but makes about 85% of our farm’s gross income each year,” Griffin says. “If tobacco disappears, what do we do?”

GLOBAL ADVENTURES

Faced with tobacco’s declining consumption and profit margins, Griffin set out to find answers. In 2018, he was selected as the second American ever to be a Nuffield Scholar , which is an international program that started in 1947.

The Nuffield International Farming Scholars program is an elite opportunity for producers across the globe. Each class of scholars embarks on an international journey to study key issues and develop a worldwide network.

With his scholarship, Griffin visited farmers in more than 16 countries, looking for common threads of success and new ideas.

“It’s not until you step outside your comfort zone that you truly begin to grow and do things differently,” he says.

Griffin’s findings centered on three areas: efficiency, technology and differentiation. These strategies allow farms to become more circular, resourceful and profitable.

“Producers have focused on a 180° production cycle, where only inputs and outputs are considered,” he says. “This mindset has led to the belief high inputs equal high yields, which equal high profits.”

Instead, Griffin says, farmers should look at a 360° circle, which recycles all waste products and vertically integrates. This approach is illustrated at Griffin Farms.

They started planting cover crops on every acre after harvest. They are also using some of the greenhouses used to start tobacco plants for vegetable production. An aerobic digester, egg production and a cattle herd are also in the pipeline.

Griffin is focused on not wasting resources, especially water. They are putting in water control structures to capture water as well as digging ponds to collect water runoff to be used for irrigation.

For nearly 20 years, Griffin has grown sweet corn and sold it locally. His connections with customers and grocery stores spurred him to add other produce to his crop mix. Last year he grew 7 acres of acorn and spaghetti squash.

“Most farms are limited by water or labor needs,” he says. “We have irrigation, and because of tobacco we have a large employee base. So those issues aren’t a problem for us.”

As for the future, Griffin is always dreaming. Their community is on a major road to the Atlantic Ocean, so he is planning a farmstead to feature farm products from each of the 100 counties in North Carolina.

“How do you move from just producing commodities? You have to adapt, innovate and overcome,” Griffin says. “When you stop innovating, you plateau.”

Postcards and Perspectives

ISRAEL: A Lesson in Efficiency

Only 20% of total land is classified as arable in Israel, but the country produces 90% of their food needs, Griffin says.

“Many farms have been forced to move large quantities of suitable soil to better locations,” he says. “Some farms have gone an extra step by utilizing hydroponic and aeroponic production systems.”

In aeroponic systems, plants are spoon-fed water and nutrients directly. “Farmers are growing bell peppers in an aeroponic system at the Vidor Agriculture Research Center in the Arava Desert,” Griffin says. “Through technology, they have been able to increase production by 26% and decrease their input and resource use by 12%.”

UNITED KINGDOM: Diversity Drives Revenue

At Uncle Henry’s farm in the United Kingdom, owners Steve and Meryl Ward focus on vertical integration. Originally a livestock and crop farm, Uncle Henry’s now consists of a farm shop, butchery, café, hog operation, crop farm and two anaerobic digesters.

“If I had to mimic any farm it would be this one,” Griffin says. “Their anerobic digesters, for example, have allowed the Wards to reduce or eliminate multiple lines of input expenses, adopt a 360° production cycle and complete the circle of sustainability, in addition to adding alternative sources of revenue.”

ZIMBABWE & ZAMBIA: Political Turmoil Prompts Innovation

“Within 24 hours of touching down in Zimbabwe, I saw a total country meltdown,” Griffin recalls. “Military helicopters were flying over, and I was hit with teargas. Talk about political turmoil.”

Many of the crops grown in Zimbabwe and Zambia are similar to production in North Carolina. For much of history, tobacco has contributed to roughly half of all people employed in commercial agriculture and 12% of Zimbabwe’s gross domestic product.

Yet, national policy and corruption have made tobacco profit margins slim. Griffin met with growers who are diversifying away from the crop.

“Adam Gordon, a farmer from Chisamba, Zambia, introduced niche crops such as macadamia nuts and exotic fruits to be less reliant on the historical crops and fill the special needs of select buyers,” he says. “It was remarkable to learn every farmer I visited had budgets for every operation on their farm.”

Scan to watch Archie Griffin’s presentation from the 2021 Top Producer Summit.

3 Consumer Trends Farmers Can’t Afford to Ignore

Fri, 21 Jul 2023 18:10:21 GMT

Consumer preferences can totter between fads and trends (think emus versus plant-based meat). For farmers to capitalize on consumer demands, they must be able to sort out what is an of the moment fad or a significant shift, says Rob Dongoski, Ernst & Young food and agriculture leader.

“This is a big challenge in agriculture, since it takes so much time to change course,” he says. “You really have to find the end market first.”

As a partner at Ernst & Young, Dongoski has over 20 years of experience serving clients in the food and agribusiness sectors. He works with a number of Fortune 500, Global 1000 and private companies in advisory and transaction capacities.

Dongoski will speak at the 2023 Top Producer Summit , which runs Jan. 23-25 in Nashville. Register now.

Listen to Rob Dongoski discuss food trends with AgriTalk’s Chip Flory:

In helping clients develop growth strategies, complete buy-side and sell-side transactions and lead significant enterprise transformations, Dongoski has his pulse on some key trends. Here are three he believes farmers should monitor.

Consumers want fresh and uncomplicated food. Overall, Dongoski says, consumers are starting to shift to diets with more fresh food and foods with limited ingredients. “These are things at the perimeter of the grocery store,” he says.
Food miles are becoming mainstream. Local has been thrown around frequently in the last decade in terms of consumer trends. Dongoski says it is now mainstream. “Consumers are tracking food miles, as in how far does it take for strawberry to get to my grocery store? You know, 1,800 miles doesn’t sound very local,” he says.
Younger generations are willing to pay more for food. Baby boomers and Generation X have different views on food than their younger counterparts, Dongoski says. While older generations are not willing to pay more for organic or regenerately grown food, Generation Z and Millennials are willing to do so.

How Farms Can Cash in On Trends

Dongoski says farms of all sizes can capitalize on their trends, but in different ways. Large farms have the ability to scale and work with large companies, while small farms can specialize and find niche markets.

The other big trend shaping the future of farming is the technology used to do it.

“There’s going to be folks who will continue to play a big role in the dirt and there’s going to be farmers who are going to play big roles probably under glass,” he says. “We’ve reached a point where greenhouses, vertical farms and aquaponics play a potential role in our in our food system.”

In either system, Dongoski says data will be key.

Learn more from Dongoski about the future of farming, consumer trends and more at the 2023 Top Producer Summit. Register now!

3 Trends that Will Drive the Food System of the Future

Thu, 20 Jul 2023 18:30:46 GMT

These three tenets will drive the industry and impact farms

The food system is being reimagined today and farmers can benefit by thinking about how to improve their ability to take advantage of opportunities in the process, says Rob Dongoski, partner and food and agribusiness leader at Ernst and Young. He says the food system will be based around the following three tenets.

1. Consumer Centric
This transition was underway and received a big boost from the COVID-19 pandemic. Dongoski anticipates the transformation will be significant in the next five to 10 years.

Consumers are increasingly listening to what product marketers are telling them rather than scientists.

“Marketers are winning the communication battle because they are better funded,” he says.

Part of what’s at play is significant changes in consumer demographics. Dongoski says the most populous generations in the workforce today are Millennials and Gen Z.

“While Boomers and Gen Xers think about cars and houses as status symbols, Gen Z and Millennials think, ‘I grocery shop at Whole Foods. I cook at home. I go to the farmer’s market.’ Their experience with food is very different,” he says.

2. Planet Friendly

“Farmers are land stewards as land continues to be the largest asset on their balance sheet,” Dongoski says. “As their stewardship practices become more understood by consumers, I think it will bring new light to the definition of sustainable food.”

Still, he does believe farmers have opportunities to be more conscious of practices that are planet friendly.

“There are many opportunities to care for livestock differently, for example,” he says. “The pendulum can shift to extremes, but I do think we can be smarter.”

3. Connected System

“When I think about the future of food, I believe the food system will look retro,” Dongoski says. “The future is a place farmers and consumers have been before.”

Decades ago, he says, consumers had a butcher and a baker on the corner, and milk was delivered to their home. Consumers knew their food producers and processors.

In the future, that personal connection won’t be based on geography, instead it will be based on data.

Today consumers get glimpses of farmers’ production practices in grocery store aisles and on menus, as stores and restaurants feature names, photographs and information on the farmers who produced the food.

“That’s how consumers will have insights into your operations and practices, which will influence consumers,” he says.

Listen to Rob Dongoski share trends on the “Farming the Countryside” podcast:

Read more stories from the 2023 Top Producer Summit:

Preventative Maintenance for Your People: How to Reduce Turnover and Boost Morale

How to Run An Innovation Sprint on Your Farm

Nominate Outstanding Farmers for Awards from Top Producer

Take Time to Celebrate Accomplishments

5 Business Principles That Define Success

Farming Boom or Bust in the Decade Ahead? How to Manage Price Cycles

Be Inspired by Five Remarkable Farm Operations

Ideas Big and Small: Create a Culture of Creativity on Your Farm

John Phipps: AAA Batteries, How You Doin’?

Wed, 17 May 2023 17:30:33 GMT

The world uses 4,000,000,000 AA batteries per year — enough to power Finland for seven weeks or Houston for 20 minutes in July. Another few hundred million go AWOL as junk drawer flotsam, under car seats and in Labradors. Many escape while consumers try to chew open their bomb-proof sealed packs.

Oddly, while global AA battery consumption has been widely publicized, with it being a suspiciously round number, AAA battery sales are obscure. This can only mean a heinous plot by Big Deep Battery, a right- or left-wing (depending on polarity) conspiracy.

Battery Bias
AAAs exist for remote controls, particularly those with more buttons than the left end of an accordion. Helpful hieroglyphics near the battery compartment demonstrate proper insertion but have shrunk to illegibility along with the batteries. Batteries usually fail in the dark, which adds to the challenge. Devices using a three-cell cartridge, already disturbing in its lack of symmetry, are correctly refilled much less often than probability would predict. Worst of all, a dead cell is identical to the new one you just laid it next to.

Regardless, the consumption of these smaller batteries is growing, as devices using such power sources become more efficient. The advent of the LED, for instance, was the death blow to the venerable D battery, along with its lame little brother, the C cell. This transition also changed public perception of cordless devices to things that might actually work when needed, unlike the D-cell corrosion chambers we called flashlights back in the day. Those were truly the Dark Ages as numerous flashlights were frantically located, whacked on kitchen counters to encourage illumination, and battery-swapped in the dark as water filled the basement during a power outage.

Depending on those older batteries during an emergency was a fatal error, as often demonstrated by horror movies where an attractive female character blithely relied on a two-cell flickering torch as she inexplicably chose to investigate a noise in the attic, often bizarrely clad in sleepwear, despite movie audiences shouting, “Don’t go in the attic!” D cells were destined to fail fitfully before they should but could nail the timing. Heroines today use a flashlight app, which helps locate the phone when dropped in an inaccessible location.

New technology has erased old dreary expectations, so now AA and AAA batteries are a default item on practically every shopping app. Just don’t look at the price. Above all — this happened to a guy I know — never buy batteries at an airport. They are pricier than booze, and you don’t get double for a dollar more.

Prop 12: A Different Kind of California Wildfire

Fri, 12 May 2023 15:42:08 GMT

Proposition 12 legislation took effect in California on Jan. 1, 2022. National Pork Producers Council (NPPC) assistant vice president and general counsel Michael Formica predicts Proposition 12 repercussions will be seen in California as early as this morning.

The law requires egg-laying hens, calves raised for veal and breeding pigs (sows) to be able to lie down, stand up, and turn around in the spaces in which they are housed, without touching the sides of the stall, or another animal.

Most sows are housed in individual pens. Proposition 12 prescribes sows must have at least 24 square feet of floor space to move around, which would effectively require large group pens.

California’s Position

California raises about 8,000 sows—only 1,500 in commercial production—while maintaining a market demand of roughly 700,000 sows. California’s pork needs are generally met through states like Iowa, Minnesota and others in the Midwest.

Formica says only 4% or 5% of U.S. pork production is currently compliant with Proposition 12 legislation.

Various retailers have pleaded with the California Department of Food and Agriculture (CDFA) to rewrite the timeframe for enforcing Proposition 12. CDFA says they lack authority to delay the compliance deadline.

Formica explains that 28 months of unsuccessful compliance delays with the CDFA and the Animal Care Program has put retailers in an “impossible” position that could lead to criminal charges for the sale of uncertified meat.

Lessons Learned

Californians didn’t clearly understand what was being voted on, Formica adds.

“They didn’t know the impact this was going to have,” says Formica. “They were presented the question, ‘Do you think farm animals should be protected from cruel treatment?’ I would have voted the same way.”

Pro Farmer policy analyst Jim Wiesemeyer says before this legislation made its way to the proposal stage, “it should have been battled with questions,” to better educate voters.

NPPC and the American Farm Bureau have filed a joint petition on Proposition 12, scheduled to be addressed by the Supreme Court on Jan. 7, 2022.

Related Articles:

> California’s Prop 12 Took Effect Jan. 1

> Prop 12 Countdown: California Food Industry Leaders Fight Back

BREAKING: Tyson Foods to Eliminate 10% of Corporate Jobs, 15% of Senior Leaders

Thu, 27 Apr 2023 13:39:28 GMT

Tyson Foods Inc will eliminate about 10% of corporate jobs and 15% of senior leadership roles, Chief Executive Donnie King told employees on Wednesday.

The layoffs are the latest cost-cutting move for the biggest U.S. meat company by sales as it grapples with declining profit and struggles to improve results in its iconic chicken business.

Discussions with most affected employees are slated to take place this week, King said in a memo to employees seen by Reuters. Shares closed 1.1% lower at $60.35 on Wednesday.

“We will drive efficiency by focusing on fewer initiatives with greater intensity and removing duplication of work,” King said.

Tyson had about 6,000 U.S. employees working in corporate offices as of Oct. 1 and 118,000 workers at non-corporate sites such as meat plants and warehouses, according to regulatory filings.

The eliminated roles in senior leadership are mostly vice presidents and senior vice presidents, a company spokesperson said.

Some corporate employees already quit after Tyson said in October it was relocating all corporate jobs to its headquarters in Springdale, Arkansas. The 10% reduction in corporate roles is not due to employees leaving the company rather than relocating to Arkansas, a spokesperson said.

A recent overhaul in Tyson’s executive leadership left some investors and analysts nervous.

The company fired Chris Langholz as president of its international business in August. In September, Tyson said Noelle O’Mara, who led its prepared foods division, had left the company. John R. Tyson, great-grandson of the company’s founder, took over as finance chief.

“The frequent changes in the leadership team over the past few years suggest that there are inefficiencies within the corporate offices,” said Arun Sundaram, senior equity analyst at CFRA Research.

In January, Tyson replaced the president of its poultry business after the company wrongly predicted demand for chicken.

The company has struggled for years to improve results in its chicken business and said in March it will close two U.S. processing plants with almost 1,700 employees.

Meatpackers generally increased pay for plant workers during the pandemic. Now they face declining operating margins and must increasingly compete to buy livestock to run plants at full slaughtering capacity, analysts said.

“Margins fall apart like this and it’s like, we’re really bleeding now,” said Bob Brown, an independent livestock market expert.

Tyson’s adjusted earnings of 85 cents per share in the quarter ended Dec. 31 were down 70% from a year earlier. The company is set to report its next quarterly results on May 8.

(Reporting by Tom Polansek in Chicago Editing by Matthew Lewis)

8 State Requests for Year-Round E15 Reviewed by US Budget Office

Mon, 27 Feb 2023 20:03:52 GMT

The Office of Management and Budget (OMB) on Friday completed its review of eight states requests to remove the volatility waiver provided under law for ethanol blends—the Reid Vapor Pressure (RVP) waiver of 1 pound per square inch (PSI). Removing the waiver would allow sales of E15 fuel year-round in the states.

Related article: Renewable Fuel’s Big Week: EPA’s RFS Proposal And Year-Round E15 Legislation

Background

Illinois, Iowa, Kansas, Minnesota, Nebraska, North Dakota, South Dakota, and Wisconsin made their requests early in 2022 and EPA sent forward its proposed rule Dec. 5, 2022.

Now what?

EPA can now release the proposed rule. The timing of the comment period associated with the proposed rule may dictate whether or not the waivers, if granted, can be in place for the 2023 summer driving season which starts June 1 and runs through Sept. 15.

Related article: E30 Ethanol Blend Inches Closer to Pumps with EPA’s Latest Actions

Without the waiver, states will be unable to sell E15 fuel in the summer months.

3 Tenets Of A Decade-Forward View of the U.S. Food System

Wed, 25 Jan 2023 18:10:29 GMT

The U.S. food system is being reimagined today and farmers can benefit from thinking about how to improve their ability – and agility – to take advantage of opportunities in the process, according to Rob Dongoski.

“We’re taking a decade-forward view of the entire food system, and most of the folks in this room are key players,” he told farmers attending the 2023 Top Producer Summit on Tuesday in Nashville.

He says the food system will increasingly be based around three tenets according to Dongoski, founder of the Ernst & Young Global Agribusiness Center. The three tenets are:

1. The food system is in the process of moving from being a commodity-driven supply chain focused on scale to a more personal, consumer-centric system.

Dongoski says the transition was already underway when it got a big boost from the Covid pandemic. He anticipates the transformation underway will continue for the next five to 10 years.

“Consumers are getting really loud about what they want,” he says. “’I’m not sure about all those processed foods. I like to know what’s in my food’
are just two of the messages they’re giving us.”

Dongoski says consumers are also increasingly listening and buying into what product marketers are telling them rather than scientists. Science doesn’t hold as much sway. “Marketers are winning the communication battle because they are better funded,” he says.

Part of what’s at play in the marketplace are significant changes in consumer demographics.

Dongoski says the most populous generations in the workforce today aren’t Gen Xers and Baby Boomers. Instead, the Millennials and Gen Z generations have increasing influence, and they think about food in very different ways from their predecessors.

“While Boomers and Gen Xers think about cars and houses as status symbols, Gen Z and Millennials think, ‘I grocery shop at Whole Foods. I don’t go to the fast, casual dinner outlets. I cook at home. I go to the farmers market.’ Their experience with food is very, very different,” he says.

Despite the myriad changes underway, some things remain from the past regarding how consumers evaluate their food purchases. “They have always and will always consider two key criteria – affordability and taste,” Dongoski says.

2. The second tenet is food will need to be increasingly planet friendly.

Dongoski says he always enjoys hearing from people when they come back from global environmental events such as the Davos Conference and COP27 and tell him to think about “all the damage your industry does.”

His response to them: “I think you mischaracterize most of the people that do the hard work on the land. I’ve never met a farmer or anybody that owns land who is thinking, ‘Man, what I really (want) to do is destroy it.’”

Still, he does believe farmers have opportunities to be more conscious of practices that are planet friendly.

“There are many opportunities to take care of livestock differently,” he contends. “The pendulum can shift to extremes, but I do think we can be smarter. When I see things in the grocery store like plastic-wrapped bananas, that just seems kind of silly to me,” he adds.

3. The third tenet of the future: food will be based around a more connected system.

“When I think about the future of food, I believe the food system will look retro,” he says. “The future is a place farmers and consumers have been before.”

Decades ago, he says consumers had a butcher and a baker on the corner, and milk was delivered to their home. “We had home delivery decades ago, folks. It’s not new,” he says. “We’re going back to that scenario where consumers know their food producers.”

A key difference, he says, is the future system won’t be geographically based. Rather, the personal connections between consumers and producers will be based on data.

Today, consumers get glimpses of farmers and their production practices when they walk down grocery store aisles and eat in restaurants. Stores and restaurants often feature names, photographs and information on the individuals and families who produced the food the consumer plans to purchase.

“That’s how consumers will have insights into your operations and practices that you’re willing to expose and be proud of, that will influence a consumer,” he says.

Watch the 2023 Top Producer Awards Banquet

See 8 Farmer-First Startups at Top Producer Summit

3 Consumer Trends Farmers Can’t Afford to Ignore

Are Landlocked Soybean Crush Facilities Destined to Survive?

Mon, 09 Jan 2023 23:03:13 GMT

Pressure on the Federal Reserve is easing prices in the start of 2023, especially in the fuel corridor, according to Jordan Fife, President of BioUrja Trading .

With planting season around the corner, Fife says diesel in particular looks to be more reasonable for producers this year, as it’s trading 10% off from its peak a few weeks ago, and it’s given back almost all the gains it’s had over the year.

As more renewable diesel crush facilities open in 2023, he foresees more diesel and profit in the industry. However, Fife is not certain the crush locations reflect the greatest diesel needs, nor where the crush money will be made.

“The crush facilities on the West and Gulf Coasts are still on track to be built and will be profitable because that’s where it’s going to be most consumed,” Fife says. “A lot of people looked at the smaller, landlocked facilities and said, ‘Does that make sense? Will that be a profitable venture?’ I think those location will go away, and I’m not sure they should have been there to begin with.”

Despite thinking the crush hype has “crashed”, Fife feels renewable diesel is here to stay and will likely maintain momentum on the coasts.

On the Gas Front

Gas prices tell the same deflating story. The AAA reports the gas average on Monday is $3.28, down from $3.30 one year ago, which Fife says sets off alarms in the markets.

“Gasoline demand is down 20%,” Fife said of the market report on Friday. “Blender input—the amount of ethanol blended into gasoline—was also down 14%. This is pointing to just how awful gasoline demand is right now.”

According to Fife, once those data points are pushed lower, they won’t get “warmer”.

“Nobody ever says, ‘I didn’t drive for five days because it was below 25 degrees outside and now that it’s up to 40, I’ll drive twice as much,’” Fife says. “Once you lose that demand, you never gain it back.”

On the other hand, he feels there are positives to these demand drop-offs. Due to the cold wind that moved across the U.S. this week, Fife says refineries moved to reduce production 40%, leaving the Gulf production to slow or even shut down, in some cases.

“If we didn’t have that shift in production, we would have had enormous supply build-ups,” he says.

The International Energy Agency estimates that the U.S. will be 600,000 barrels per day above the oil supply demand. Fife says this will further add to the stock, which is “nothing new.” However, once COVID-19 cases peak and settle in China, he foresees a return of a bullish oil market.

“Personally, I think we’ve seen peak oil prices for the time being,” says Fife. “I don’t think we’re going to the $150 per barrel that others had predicted.”

Fife’s peak-price assumptions are based on multiple factors, including:

• Increases in product availability
• Upticks in production wells

“Deflation is not a great thing if you’re trying to sell corn, beans, etc., but it is good for the overall economy,” he says. “We want these things to happen so the fed can take its foot off the pedal.”

Up the “E”

Despite high amount of available crude oil, Fife is bullish on E15.

While companies like Pilot are working to ensure E15 is made available at each station, the E15 markets don’t always sway these companies to blend. But that’s not Fife’s only reason for leaning bullish.

“There are more people putting money into E15 right now—they’re putting money into infrastructure and availability right now,” says Fife. “We’re seeing a lot of E15 in Iowa, Nebraska and Minnesota, but not in the Gulf, Houston or New York. You need those huge driver centers to latch onto it.”

Once the larger U.S. cities connect with E15, Fife says that’s when renewables will have their moment.

More on fuel:

This Researcher Looks to Uncover Renewable Diesel Source in Unique Place
John Phipps: It’s Now Less About the Supply of Oil, And More About Refining Capacity in the U.S.

Dairy Farm CEO Offers Practical Advocacy Tips

Wed, 30 Nov 2022 22:17:01 GMT

This article was written by Nate Birt, Vice President of Trust In Food, a Farm Journal initiative. Learn more at www.trustinfood.com.

As a third-generation dairy farmer, Sutton Rucks of Milking R Dairy, Inc., in Okeechobee, Fla., is always looking for ways to grow the business he’s been part of since his pre-teen years. A pivotal moment several years ago prompted his family to focus more time and investment in advocacy for dairy farming and outreach to the public—and they haven’t looked back.

“In our area, we had several activist videos pop up, and we were going to take the approach of we’re going to take our farm sign down and stick our head in the sand and keep doing what we do, milking cows,” explains Rucks in a November 2022 video interview with Trust In Food, the sustainable agriculture division of Farm Journal.

“One day, the family and I … [said], ‘This is our passion, this is what we love to do. We’re going to open our doors. We’re going to bring these people out here. I tell people when they come here, ‘If there’s a calf on our farm for one day or a cow on our farm for 20 years, our goal is to give her the best life we possibly can.”

Over the past three years, the Rucks family has expanded into giving farm tours, serving up its own proprietary ice cream flavors and diversifying into other products such as meat and, in 2023, a fresh produce partnership with another farmer.

He encourages his fellow dairy farmers to consider ways small and big they can reach out to their community. His first event didn’t have any dedicated space. Instead, they invited students from the city, provided bales for seating and made a small corn pit and a few cornhole games. The guests loved it. Every relationship built with people matters, Rucks says.

“I know it’s grassroots, but just that one positive impression you can leave on one person at a time, it’s eventually going to multiply into hundreds if not thousands and tens of thousands,” he says.

Click the play button to watch the full video interview on dairy farm advocacy with Florida dairy farmer Rucks.

John Dillard: Supreme Court Hops In The Pig Pen

Fri, 25 Nov 2022 14:00:00 GMT

Can California’s voters dictate how hogs are raised in Indiana based on animal welfare concerns? That is effectively the question the U.S. Supreme Court is pondering in a pending case, National Pork Producers Council v. Ross.

The case has implications for food production well beyond raising hogs. Depending on how the Supreme Court rules, it could open the door for states to start metaphorical food fights — with food laws.

THE FINE PRINT

In 2018, California’s voters passed a ballot initiative, Proposition 12, that requires California confinement operations to provide a minimum of 24 sq. ft. of space per sow.

More importantly, the law prohibits the sale of uncooked whole pork from sows or immediate offspring of sows that do not meet California’s standards, regardless of if the hogs are raised in California or out-of-state.

California is not a big pork-producing state; most of the pork consumed there is produced elsewhere. But, California is the largest pork-consuming state, accounting for 13% of the pork market. We can not ignore it as a market.

POWER OF ONE STATE

If California’s government sets standards for pork that can be sold in the state, a good portion of the industry is going to comply with California’s requirements.

But should one state be permitted to dictate — through market power — how a product is grown in another state? That’s the question the Supreme Court is pondering in the NPPC case. The U.S. Constitution’s Commerce Clause gives Congress the power to regulate interstate commerce.

The Supreme Court has interpreted the Commerce Clause to prohibit state governments from outright discrimination against out-of-state products.

But it is unclear if states can enforce laws that intend to influence out-of-state businesses activities so long as they treat in-state and out-of-state products equally.

The Supreme Court heard oral arguments on Oct. 11 (it will likely be a few months before the Court issues its decision). The justices appeared to struggle with balancing a state’s right to regulate commerce in its borders with the consequences of allowing California’s law to stand.

ETHICS AT HAND

In particular, the justices were concerned with if a state could dictate farming practices based on perceived ideas of morality. While animal welfare concerns are germane to pork production, states could premise access to their markets based on other questions of morality where political partisans disagree, such as employee status (e.g., undocumented, union), abortion access, fuel sources or carbon emissions.

We can anticipate the Supreme Court’s decision will have implications for farmers and ranchers caught in the middle.