Produce - General

One of North America’s Largest Farms Files for Financial Protection, Is Restructuring

Thu, 23 Apr 2026 14:50:01 GMT

Earlier this week, Monette Group, which farms more than 400,000 acres in Canada and the U.S. filed for financial protection and is restructuring.

The company filed for creditor protector in Canada via the Companies’ Creditor Arrangement Act (CCAA) and filed Chapter 15 in Delaware Bankruptcy Court.

The Cost of Expansion: Efficiency Erosion and the Leverage Trap

The group’s recent financial trajectory highlights a cautionary tale of aggressive, debt-fueled expansion meeting a volatile economic climate. While the organization successfully scaled its footprint and top-line revenue over the last several years, operational efficiency and debt sustainability have reached a critical breaking point. [all dollars are Canadian]

The Era of Aggressive Growth (2017–2022)
Driven by substantial borrowing, the Group underwent a massive scale-up, growing revenue from $45 million to $198 million and expanding its cultivated land from 97,000 to 269,000 acres. While total EBITDA initially followed this upward trend, the underlying efficiency—measured by EBITDA-per-acre—began to signal trouble, dropping significantly from its 2015 highs.
Operational Headwinds and Margin Compression (2024–Present)
The transition into 2024 saw revenue climb to a record $347 million across 440,000 acres, yet profitability decoupled from growth. Diversification into produce and cattle, intended to broaden the portfolio, instead acted as a drag on the bottom line. By 2024, EBITDA-per-acre plummeted to a decade low of $83—a nearly 50% decline. This downward trend was exacerbated in 2025; despite a projected $72 million EBITDA, actual earnings reached only $31 million due to a “perfect storm” of poor crop prices, high input costs, and yield losses.
The Sustainability Crisis
The group’s reliance on cheap capital (approximately 3% interest rates) and rising real estate valuations proved successful in a low-rate environment. However, the convergence of flat property values, persistent inflation, and high interest rates has rendered the current capital structure unsustainable. Despite holding significant underlying asset value, the group is now overleveraged, with compressed margins leaving little room to service debt or maintain liquidity.

What Is Monette Group?

Since 2010, Monette Group has been aggressively expanding from its family farm in Saskatchewan to Manitoba and British Columbia in Canada. Current President Darrel Monette took over the family farm in 2013. In 2019, the company expanded into the U.S. first in Montana and then Arizona and Colorado. The company’s website says its core values are: teamwork, efficiency, growth and ‘get shit done.’

With its expansion and diversification, the business expanded into four main brands:

Monette Farms: growing pulses, wheat, corn, sugar beets, barley, and alfalfa in Canada and the U.S.
Monette Produce: with growing locations in California, Arizona and Canada
Monette Cattle: ranches located in Saskatchewan and British Columbia
Monette Seeds: located in Saskatchewan in partnership with NexGen Seeds

The 18 business entities of Monette Group employ between 300 and 600 people, depending on the season.

Grain production, primarily canola, wheat and durum accounted for over 60% of group revenue in 2024 and more than 50% in 2025. Grain operations dominate the Canadian footprint with 68% of the group’s production occurring in Canada.

Fresh produce operations are primarily located in Saskatchewan and British Columbia, with significant fall and winter production in Arizona. In 2025, produce accounted for approximately 15% of group revenue. Crops include carrots, squash, broccoli, cabbage, pumpkin, cauliflower and watermelon. The group’s produce is mainly sold to Loblaws and the Little Potato Company.

Cattle ranching accounted for approximately 10% of revenue in 2024 and 17% in 2025. Cattle ranching operations focus on Black and Red Angus cattle, including herd breeding in British Columbia and feedlots across Alberta and Saskatchewan.

Seed processing accounted for 19% of revenue in 2024 and 16% in 2025.

Its main crops 10 years ago were green and red lentils, durum, canola and malting barley.

According to the company’s website, Monette Farms’ newest addition is west of Phoenix, Arizona. It’s a certified organic farm and headquarters to Monette Seeds USA.

What Monette Farms Has Said

President Darrel Monette has penned a letter sent to landowners and leasing partners as well as a press release distributed with general counsel as the point of contact. Both are dated April 21, 2026.

In both Monette says this process will allow them to stabilize finances, restructure debt, and continue operating.

The letter read: “This filing is a proactive response to current industry pressures (higher input costs, higher interest rates, and tighter credit) and is not a liquidation.”

It continued: “We are working with our advisors and a court-appointed Monitor to develop a restructuring plan for credit and court approval.”

Per a company press release, the day-to-day farming activities, spring seeding and livestock care are continuing as planned. The release also said all employees are being retained at this time.

The Assets of Monette Group

According to its 2025 financial statements, the group has $1.24 billion of total assets booked at cost (and not reflective of market value.)

As of April 12, 2026, the group owns 274,000 acres of land. In the U.S. Monette owns 61,700 acres in Arizona, Montana and Colorado.

For crop production, it leases 175,000 acres in Canada and 43,000 acres in the U.S. with annual total lease payments of $29.4 million. For its cattle business, Monette holds grazing licenses on 1.2 million acres of land in Canada.

The group owns three seed processing facilities in Canada.

It leases more than 1,700 separate units of farm equipment, with 1,600 units leased from John Deere Financial. Annually, the group spends $26 million on leased equipment.In 2023, it was newsworthy when the business transitioned from Case IH equipment to John Deere equipment in a reported $100+ million deal.

What Else Is There To Watch?

Monette Group is one of the largest privately held farming operations in North America.

The timing of this filing is critical for the farm to put in a 2026 crop. In the CCAA filing, Monette Group said its seed expenses are $40 million per year. To get set up for seeding, Monette’s operations may receive 41 truck loads of product a day (nearly 15,000 truck loads a year).

The main filing is in Canada with proceedings under the Companies’ Creditors Arrangement Act (CCAA) as part of a court-supervised restructuring process. From here is a process by which Monette will work with a court-appointed monitor to develop a restructuring plan for creditor and court approval.

The Chapter 15 filing asks the U.S. court to recognize the Canadian CCAA proceeding as the “foreign main proceeding” which can extend the protection of U.S. assets. It also prevents U.S. creditors from taking legal action such as seizing assets or filing lawsuits.

In the CCAA document, it is stated Monette Group held a $950 million secured credit facility dated December 5, 2018, which matured on April 15, 2026. Repayment of the obligations owing to the syndicate of lenders is a necessary component of the group’s overall restructuring strategy.

The CCAA filing comes after Monette per the guidance of its lending syndicate to sell assets. Two tracts were sold in 2025: in Regina, Saskatchewan for $41.18 million and 17,000 acres of land in Montana for $47.5 million. Additional sales were attempted this this winter, but with only one completed sale of 12,932 acres of farmland in the Stewart Valley of Swift Current, Saskatchewan for $54 million.

In the affadavit, Monette says a restructuring and selling of assets by the court appointed monitor is important to provide an orderly sale of assets and not cause a bulk liquidation which could result in lower values.

The farm has been active on social media:

How One Kansas Family is Cultivating a New Legacy by Diversifying their Farm

Tue, 07 Apr 2026 02:52:31 GMT

In a state where wheat, cattle and corn fill the fields of Kansas, broccoli doesn’t typically make the list of farm favorites. But it’s Jacob Thomas’, the co-owner of Jet Produce and Meats , favorite food to grow. His family’s farm started as a livestock operation in the 1950s. Today, it’s making a way for the next generation by diversifying the operation and connecting to the personal side of producing food.

“When I pick a head of broccoli, I know exactly ... what’s going to happen to it. Somebody’s going to buy that to eat for dinner,” Thomas said. His passion for produce began at age 14 when he asked his dad if he could plant a garden. “I think the draw to it for me was that a lot of farms are growing corn, soybeans and even raising livestock. How does that actually feed a person?”

Jacob and his wife Jennifer, started their farm and business while Thomas was a junior in college at Iowa State University. Their venture began on a quarter of an acre. “It was like, wow, there really is something to this. People will stop on the side of the road and buy vegetables. This is interesting.”

The following year, their business model grew to selling food at the farmers markets. Today, the operation, spans nearly 17 acres, includes eight greenhouses, and operates its own storefront on the family farm. Jet Produce also sells its products to farmers markets in the Kansas City area.

(Jet Produce and Meats Facebook Page)

Jet Produce grows most vegetables, pumpkins, popcorn and flowers. Thomas said flowers account for nearly 20% of their sales and help them manage risk throughout the year. Jacob notes that the direct connection to the consumer changes the experience of farming.

“That’s something that’s just really nice for me,” he said. "[To] have all that positive interaction with customers that are just so thankful for the food.”

Back to the Roots

Jacob and Jennifer have help from their daughters Lisa and Sarah, ages 7 and 5. Jacob’s parents are also active in the operation. Dale Thomas, Jacob’s dad, can be found managing the storefront. He wasn’t originally sure about Jacob’s interest in horticulture, but he now sees the value of adding produce to their operation.

“It’s a lot more personable than the farming I ever did,” he said. Dale’s primary role on the farm is taking care of the livestock and hay. It’s a job that brought the family back to its roots. “The Leavenworth Farmers Market, just basically said to Jacob one day, ‘you know there’s nobody here selling beef, why don’t you grow beef or sell beef?’”

Now, Jet Produce sells beef, pork, chickens, and lamb directly to customers. But the family isn’t just building consumer connections; their focus is also at home.

“My girls were at that age where they just want to hang out with me all day and they want to learn,” Jacob said. “Every opportunity I can get to have them help me plant something, help me sorting, anything that they can do.”

Jacob, Jennifer, Lisa and Sarah Thomas.

(Credits: Jet Produce and Meats Facebook)

Overall, Jacob said the wide variety of crops and livestock has gained the respect of other farmers in the area, even if it started as a different model of farming. “They realize now that what I’m doing isn’t just like a really big backyard garden. That it is farming,” he said. “It’s just different farming.”

These Half-Dozen U.S. Ag Trade Missions Aim To Diversify Global Demand

Wed, 31 Dec 2025 16:39:38 GMT

Trump’s USDA team has announced its agribusiness trade missions for the year ahead.

“Our team certainly plays an important role in generating demand overseas for the products,” says Luke Lindberg, USDA undersecretary for trade and foreign agricultural affairs.

Lindberg points to a three-point plan Agriculture Secretary Brooke Rollins’ team is deploying:

Get better trade agreements.
Build willing buyer and willing seller relationships.
Hold trading partners accountable.

According to Lindberg, the goal is it “helps to cultivate, it helps to diversify, so we’re not solely focused on one or two key buyers. I think if you go to many business owners and ask them, would you rather have one buyer that buys 80% of your products or would you rather have some diversification to lots of buyers who have ups and downs of their own, I think many of them would say they prefer the diversification model.”

So far, six agribusiness trade missions have been announced for 2026 with the goal of growing global markets, increasing exports and strengthening the agricultural economy.

The six mission destinations, and potential agricultural focus areas, include the following.

1. February 2026, Jakarta, Indonesia

Since 2020, annual U.S. ag exports to Indonesia have hovered between $2.75 billion and $3.25 billion. Overall, it’s the 11^th largest trade partner for U.S. ag goods.

Indonesia is the fourth-largest market for U.S. soybeans following China, the European Union and Mexico. According to U.S. Census Bureau trade data, in 2024 Indonesia imported from the U.S. $1.2 billion in soybeans, $198 million in wheat and $139 million in cotton. This past July, the Indonesia private sector and the U.S. wheat industry signed a memorandum committing to purchasing at least 1 million metric tons of U.S. wheat between 2026 and 2030 plus a minimum of 800,000 metric tons of wheat in 2025 (prorated).

The Trump administration has worked to address long-standing barriers to U.S. agricultural trade and expanding market access into Indonesia with a trade agreement eliminating tariffs on more than 99% of U.S. products.

2. April 2026, Manila, Philippines

U.S. ag exports to the Philippines have more than doubled since 2010. In 2024, the total value was $3.5 billion, making it the ninth-largest customer for U.S. ag trade.

With limited domestic production, the Philippines imports nearly all of its dairy products, and specifically $365 million comes from the U.S. Poultry exports to the Philippines totaled $187 million, with a majority of that in frozen chicken leg quarters.

The U.S. gained market share for ethanol imports into the Philippines, having doubled volumes in 2024 with a value of $138 million.

Beef and beef products are the sixth-largest group of ag products the Philippines imports from the U.S. This category has also experienced recent growth by increasing 58% from 2023 to 2024. The U.S. is second to Brazil in market share for beef imported into the Philippines.

In 2024, the Philippines imported $120 million of pork and pork products from the U.S. The country’s local supply has been declining because of African Swine Fever.

According to an announcement in July, the Trump administration said the Philippines will charge zero tariffs for U.S. exports into their market, while the Philippines will pay 19% tariffs to the U.S.

3. May 2026, Istanbul, Turkey

According to USDA analysis, Turkey has grown its strength as an importer of raw materials and then reexported finished products. This includes importing wheat for flour and cotton for apparel.

Because of its geographic location, Turkey has also grown as a strategic regional transshipment hub, connecting U.S. exporters with trade partners across the Caucasus region.

In September, Turkey lifted its retaliatory tariffs on some U.S. ag products: rice, tree nuts, distilled spirits and more. The Trump administration says a focus for the upcoming agribusiness trade mission will be to address nontariff barriers to trade, which includes import bans on U.S. animal protein.

4. August 2026, Australia and New Zealand

The Trump administration says its trade breakthroughs with Australia will give greater access to U.S. beef exporters. The U.S.-Australia Free Trade Agreement is structured to give comprehensive duty-free market access.

Other protein sectors have significant trade established with Australia. In 2024, $328 million worth of U.S. pork and pork products were imported. And $173 million of U.S. dairy products were brought into the country.

New Zealand imported $520 million worth of U.S. ag goods, including: soybean meal, dairy ingredients (lactose and whey), fresh fruit and distiller’s dried grains.

5. September 2026, Saudi Arabia

This agribusiness trade mission will focus on technical issues and nontariff barriers. Saudi Arabia is the 23^rd largest ag export market for the U.S., and it is a gateway to the $3 billion market for U.S. ag goods that is the Cooperation Council for the Arab States of the Gulf.

Over the past 10 years, the country has increased its imports of U.S. hay by 540% to its recent total of $152 million in 2024.

Corn, tree nuts and rice are also key ag goods exported from the U.S. to Saudi Arabia, totaling $239 million, $169 million and $123 million, respectively.

6. November 2026, Vietnam

USDA says this trade mission will focus on preferential access for specialty cheese and meats as well as improved market access for U.S. peaches and nectarines.

U.S. ag exports to the country peaked in 2018 at $4 billion and in 2023 were around $3.1 billion. Ranked from highest value to smallest, the top five ag products exported from the U.S. into Vietnam in 2023 were: cotton, soybeans, distillers grains, soybean meal and tree nuts.

For meat and meat products, the key prospects include frozen/chilled beef (boneless and bone-in), frozen chicken (leg quarters, legs and paws), and turkey.

Dairy could be a growth market for U.S. exports into Vietnam as nonfat dried milk powder has led the segment to total $146 million of imports in 2023. Fresh cheese (for foodservice/restaurants) is in demand by younger generations despite not being part of a traditional diet in the country.

USDA also points to fresh fruit as a growth category for the country, namely apples, cherries and grapes.

Scientists Team with NASA to Grow Crops in Space as Zero Gravity Yields New Discoveries for Farmers on Earth

Fri, 10 Oct 2025 20:42:34 GMT

As humans set their sights on living beyond Earth, one surprising challenge is emerging: how do we grow healthy crops in the uncharted environment of space?

Purdue University researchers, in partnership with NASA, are answering this question by experimenting with tomato plants aboard the International Space Station (ISS). Their groundbreaking work could pave the way for future space colonies—and even improve agriculture back on Earth.

From Earthly Challenges to Space Solutions

Plants, like humans, are susceptible to diseases caused by microbes, bacteria, fungi, and viruses. On Earth, these problems are manageable, but in the confines of a spacecraft or a Martian colony, a sick crop could spell disaster.

Stranded astronaut Mark Watney (Matt Damon) struggles to survive on Mars in “The Martian” motion picture that first came out in October 2015.

(20th Century Fox/The Martian)

Dr. Anjali Iyer-Pascuzzi, a professor of Botany and Plant Pathology at Purdue, has spent years collaborating with NASA engineers to develop the Advanced Plant Habitat—a growth chamber designed to give plants their best chance to thrive in space.

“For decades, NASA sent plants into space, but always in containers that weren’t ideal for growth,” Dr. Iyer-Pascuzzi explained. “With the Advanced Plant Habitat, we’ve finally created an environment where we can truly study and support plant development beyond Earth.”

Tomatoes Take Flight: Engineering Meets Biology

The journey from concept to space-ready experiment wasn’t easy. Denise Caldwell, a Purdue PhD candidate, described the difficulty of translating biological needs into engineering solutions.

“We faced problems like how to keep seeds in place and how much water to use,” Caldwell said. “I grew this successfully 22 times and so I felt confident that what we were doing was going to work.”

Their efforts paid off when, in December 2023, their tomato experiment launched to the ISS. By early 2024, astronauts began testing the system in space—an apex moment for Caldwell. “Watching from home with my children as the experiment began was surreal. We were learning how plants behave in ways we never could on Earth.”

Last week I saw plants for the first time in 4 months. I might have gotten a little teary. We get fresh fruit and veggies via our cargo vehicles and they provide welcome pops of color and scent, but it turns out this does not compare at all to seeing living plants and smelling… pic.twitter.com/AfxHemAUbz
— Loral O'Hara (@lunarloral) January 24, 2024

Unlocking New Knowledge for Earth and Beyond

One of the most exciting discoveries from the experiment is how microgravity reveals hidden aspects of plant biology.

“When you take away gravity, you start to see pathways and genes and functions that you normally wouldn’t see on Earth,” said Dr. Iyer-Pascuzzi. “So, for me as a scientist, that’s the really cool thing because we have this plant hormone that now we’re seeing connections, in space, when we remove the gravity, that we didn’t see here.”

These lessons have the potential to help farmers on Earth by unlocking new scientific knowledge about plant growth and resilience.

One key insight is that plants seem less concerned with the lack of gravity, as long as they receive the right light, nutrients, and carbon dioxide. However, some natural plant defenses are suppressed in space, meaning extra care will be needed to prevent disease.

Looking ahead, Dr. Iyer-Pascuzzi is optimistic: “Is it possible to grow crops on Mars? Absolutely—if we provide the right conditions.”

Stranded astronaut Mark Watney (Matt Damon) discovers his potato farm has been destroyed as he struggles to survive on Mars in “The Martian” motion picture. (20th Century Fox/October 2015)

(20th Century Fox/The Martian)

As Purdue’s team continues to analyze data from the ISS experiment, their work represents a giant leap for both human and plant kind. Their research isn’t just shaping the future of space travel—it’s also helping us better understand and improve agriculture right here at home.

Reference:

For more on Purdue’s space plant research, visit Tomatoes in spaceflight: A giant leap for human and plant kind.

Rural America is Facing a Mounting Labor Crisis

Fri, 11 Jul 2025 21:01:26 GMT

The American labor market is reaching a critical turning point that could tighten labor availability in rural industries and slow growth across the U.S. economy. A new quarterly report from CoBank’s Knowledge Exchange warns that demographic shifts and recent policy changes may start impacting businesses as soon as late 2025.

From livestock and crop operations to food processors and rural cooperatives, this labor shortage is becoming especially noticeable in the heart of America’s farmland. Many producers are already struggling to fill roles, and the challenge is expected to intensify in the coming months.

“Barring an unforeseen change in labor force participation rates or immigration policies, the pool of available workers is set to shrink sharply in the next few years,” says Rob Fox, director of CoBank’s Knowledge Exchange. “The problem will be even more serious in states with slower population growth in the Upper Midwest, Corn Belt and Central Plains.”

Demographic Pressures Mount

Fox says the warning signs have been building for years. Labor force participation has steadily declined, birth rates have dropped and immigration policy has become more restrictive.

Between 2022 and 2024, nearly 9 million immigrants arrived in the U.S., driven by global humanitarian crises and relaxed federal rules. While that influx temporarily eased labor constraints, Fox says it only masked deeper, long-term trends.

U.S. fertility rates have fallen from 2.12 children per woman in 2007 to 1.62 in 2023, meaning fewer young people are entering the workforce just as the last of the baby boomers retire. In addition, labor force participation has slipped from a peak of 67% in 2000 to 62% today. Nearly 2.5 million working-age Americans have left the labor force in the past eight months alone.

“There is no single reason people are stepping away,” Fox explains. “It’s a combination of rising caregiving responsibilities, job skill mismatches, mental health challenges and higher disability rates. These are complex issues that won’t be resolved overnight.”

Shrinking Workforce Hits Agriculture Hard

The effects are already being felt across rural America. Farms, food processors, equipment dealers and cooperatives are struggling to find and keep the workers they need to maintain daily operations. Seasonal labor has become harder to find and full-time positions, especially those requiring specialized skills or long hours, are increasingly difficult to fill.

In regions with slower population growth, such as the upper Midwest and central Plains, the challenge is even more acute. These areas often lack the population inflows that help offset workforce losses elsewhere in the country.

While labor has been tight for several years, Fox warns that conditions are poised to deteriorate further.

“What we are facing is not just a cyclical labor issue; it’s a structural one,” he says.

Border encounters have dropped sharply since August 2024, signaling a steep decline in immigration. Combined with rising political pressure to increase deportations, the agricultural labor pool could shrink even more in the months ahead.

“Immigration has long been a key pillar supporting the rural workforce,” Fox notes. “Without a steady flow of new workers, farms and agribusinesses will have to get creative, either by increasing wages, automating tasks or changing how they manage production.”

Technology Offers a Path Forward

In response, more agricultural businesses are turning to technology to help offset the labor gap.

“The key to addressing labor scarcity always lies in innovation,” Fox says. “AI and robotics are no longer limited to the factory floor. They are increasingly being used in fields, dairies and food plants.”

A recent Gallup poll found that nearly one in five workers already uses artificial intelligence in some form each week. At the same time, the cost of robotics has dropped by nearly half in the past decade, making automation more accessible for a broader range of farms and agribusinesses.

CoBank’s report notes that many farm supply customers are using new tools to increase efficiency, improve decision-making and free up time for employees to focus on higher-value responsibilities.

Planning for What Comes Next

As producers look toward 2026, a combination of labor constraints, volatile input costs and shifting policy landscapes will continue to shape decision-making. Fox thinks adaptability will be essential.

“Technology will be critical to agriculture’s future,” he says. “AI and robotics can help farmers do more with fewer workers, boosting efficiency and margins. But investment decisions must be made carefully, especially in this uncertain economic environment.”

Until clearer policies emerge on trade, labor and energy, rural America will need to prepare for continued pressure.

“This is a pivotal moment,” Fox concludes. “Farms that plan ahead, embrace innovation and stay flexible will be best positioned to succeed.”

Grassley: I Still Support Trump, But Congress Should Lead On Trade, Tariffs

Mon, 07 Apr 2025 18:08:57 GMT

With financial markets spiraling deeper into the red, Senator Chuck Grassley (R-Iowa) is pounding the table in support of a bill that would wrestle back the executive branch’s authority to enact unilateral world trade decisions without Congressional approval.

The senior senator from Iowa has long held the belief the U.S. Constitution gives Congress direct oversight in regulating foreign commerce. Grassley says the legislature has deferred this authority to the executive branch since the 1960s, and it’s time to claw that power back within the walls of Congress.

“The impression is that I’m doing this because of what Trump did last week. It has nothing to do with that,” Grassley told AgriTalk host Chip Flory on Monday. “This president is doing what Congress gave him the power to do, right? I felt the same way in 2019 and I tried to get some changes then.”

Now, Grassley says he is simply piggybacking on the heightened awareness of trade tariffs after last week’s “Liberation Day” announcements from the Rose Garden. He still supports the President’s overall agenda and is hoping for the best-case scenario – which would entail a worldwide negotiation process to balance trade deficits among the U.S. and its trade partners.

“If he’s successful in putting tariffs on other countries to get them to sit down at the table to bring all tariffs down, I’m going to say he did a better job than my approach of negotiating tariffs down,” Grassley says, adding that the administration can immediately help farmers by supporting a new 5-year Farm Bill and directing the EPA to approve year round E-15 fuel availability.

Under the proposed bipartisan legislation – which is co-sponsored by a handful of U.S. Senators from across the nation – the Trade Review Act of 2025 would require congressional approval of new unilateral tariffs proposed by the executive branch within 60 days.

Over the weekend, senior Trump administration officials, including USDA chief Brooke Rollins, made the rounds on the Sunday morning political TV programs to try to assure corn and soybean farmers – who have suffered profit line hits from two years of inflated operating expenses and low commodity prices – that the President’s tariff strategy would eventually pencil out to long-term gains in domestic manufacturing and crop export markets.

Then, on Monday morning, Trump posted on social media saying he will impose an additional 50% in tariffs (on top of the current 54% rate) on China by April 9 if the country did not back off the 34% retaliatory tariffs it enacted on American goods. Ag economists say the China tariffs will have a devastating impact on U.S. crop and meat exports, and many believe the tariffs have effectively handed Chinese feed and fiber demand to Brazil.

Related: As China Retaliates and Hits U.S. With a New 34% Tariff, What’s the Possible Impact on Ag?

(iStock/Lori Hays)

The U.S. today is China’s largest ag trading partner, but 2024 import data shows that relationship could be fading fast: shipments of U.S. farm goods into China nearly halved from 2022 levels, when China purchased almost $43 billion in U.S. ag products. Last year, that figure plummeted to $29 billion, and many expect the tariffs will slash that figure even lower. China has also torn up or suspended several trade deals with U.S.-based poultry producers, and some experts fear a decrease in demand for U.S. pork products could be devastating to American hog farmers.

Related: Pork Producers Resist Urge to Panic, Respond to New Tariffs

Overall, despite alarm bells being sounded from basically every corner of the economy, the senate’s current longest-tenured member is hopeful there’s a light at the end of this long, roller coaster tariff tunnel for America’s farmers and ranchers.

“If we can export our stuff in a free way, it’s going to help the economy of the United States, and it’s going to help our consumers if we don’t have tariffs on products coming into the United States,” Grassley says. “I’m supportive of the President’s effort to get a better deal for Americans, especially for our farmers because we export about a third of our production, and that’s where farmers want to get it.”

Your Next Read: Ag Markets Try to Recover Early Monday, Except Cattle

Small But Capable: Is 2025 The Year of The Utility Tractor?

Wed, 19 Feb 2025 12:30:00 GMT

Several farm machinery companies are releasing new low-to-medium horsepower utility tractors for model year 2025.

Which begs the question: If 2024 was The Year of The Combine , is 2025 already shaping up to be The Year of The Utility Tractor? It doesn’t have the same ring to it though, now does it?

Many of these machines feature redesigned operator cabs and revamped engine transmissions. It seems tractor manufacturers are increasingly integrating technologies, such as in-cab monitors, LED lighting packages, and machine guidance and telematics, which are usually reserved for higher horsepower models.

Ease-of-use, versatility and operator comfort seem to be the common threads that tie all of these introductions together beyond engine output.

The following new machinery introductions were announced last week during the National Farm Machinery Show in Louisville, Ky., and World Ag Expo in Tulare, Calif.

AGCO announces the launch of its Massey Ferguson 2025 compact tractor lineup, which includes a new Premium Series model and MF Economy and Sub-Compact Series models.

(Alex Visciotti )

AGCO’s Massey Ferguson brand has announced its 2025 compact utility tractor line, which is comprised of three distinct series.

Premium Series (24.8 hp to 60.3 hp) tractors designed for daily use and ideal for a variety of applications from snow removal and landscaping to fieldwork and property maintenance.
Compact-Economy Series (24 hp to 57.3 hp) tractors balance affordability with capability and offer a variety of configurations.
Sub-Compact Series (22.5 hp to 24.5 hp) tractors that Massey Ferguson says are perfect for hobby farmers and first-time operators.

Each utility series features updated ergonomics and operator comfort features, a wide range of compatible attachments and implements, and user-friendly options for enhanced ease-of-use.

RELATED: AGCO Launches Massey Ferguson 2025 Compact Tractor Series, New Double Square Baler

Case IH’s new Farmall C Series tractor

(Case IH)

Case IH has announced its new medium utility Farmall C tractor Series.

The four-model lineup offers a 12-speed PowerShuttle and a 24-speed Hi-Lo transmission alongside a suite of factory-installed technology updates.

The manufacturer says the Farmall C Series has a larger, reinforced front axle, boosted hydraulic flow, heavier gross vehicle weight and increased rear lift capacity. All models in the series feature fully integrated base telematics to geo-locate the tractor and monitor the machine for service.

Additional new features include an auto PTO function to automatically engage and disengage the PTO, and an advanced loader joystick in the cab to simultaneously lift and shuttle control for fast material handling.

Dealers are taking orders now, and Case IH says Farmall C will ship in the fall.

Kubota Tractor Corporation’s new MX4900 utility tractor.

(Greg Latza/Kubota)

Kubota Tractor Corporation has unveiled its all-new MX4900 utility tractor.

The company says it is designed to be a workhorse at a new price point. From transporting hay bales to grading a driveway, or performing general property maintenance, the sub-100 hp machine provides a capable solution that ranchers and farmers have been waiting for.

There are two types of transmissions available on the MX4900 and both models are equipped with a Kubota engine and Common-Rail System (CRS) with electronically controlled fuel injection.

The MX4900 also features both ROPS and Cab options with ergonomically placed controls. Some of the comfort features include a spacious operator station, optional suspension air ride seat with optional armrests on the cab model, and all-new optional dealer-installed LED lighting kits.

The MX4900 will be available at authorized Kubota dealers in spring 2025.

New Holland’s PowerStar Series utility tractor.

(New Holland)

New Holland’s brand new PowerStar Series offers four distinct utility tractor models ranging from 86 to 117 hp.

The company says the next-gen series offers new styling, greater operator comfort inside a refined VisionView cab with independent suspension, and a wide array of productivity-enhancing features. Underneath each hood is a FPT Industrial 3.6-liter four-cylinder engine, and the lineup complies with Stage V emissions standards.

The PowerStar series also offers all-new, factory-installed LU Series front loaders standard on all models. These loaders offer more lifting capacity, greater lifting height, faster cycle times, improved visibility, easier coupling and refined control.

The new PowerStar Series tractors will arrive in dealer inventory in Q4 2025.

Your Next Read: How to Fix Simple Machine Issues

Iconic Holiday Road Trip Stop Returns to Its Georgia Pecan Farm Roots

Sun, 22 Dec 2024 16:31:00 GMT

Dashing through the snow in a front-wheel drive sleigh … the seasonal holiday road trip is a right of passage for many families. At one time, the roadside icon Stuckey’s was often a likely stop.

“At our peak, we had 368 stores in 40 states,” says Stephanie Stuckey, current chair of the Stuckey’s Corporation. “Stuckey’s really is synonymous with the road trip, during what I consider the era of the great American Road Trip, which would have been the 1950s to the 1970s.”

Stephanie Stuckey, current chair of the Stuckey’s Corporation.

(Stuckey’s Corporation)

The roadside oasis, and its iconic pecan candies, are woven into the fabric of highway history.

“Back then, Americans wouldn’t travel by plane. They would load up in the car, usually in a family station wagon, and drive for five days,” Stuckey says.

The company was founded during the Great Depression by pecan farmer, WS Stuckey, as a roadside pecan stand.

“He always considered himself first and foremost, a pecan farmer and a pecan broker,” adds Stuckey, his granddaughter.

Pecan farmer and Stuckey’s Corporation founder, WS Stuckey.

(Stuckey’s Corporation)

Today she’s leading a resurgence of that business, not as a highway stop, but as a pecan company with roots on Georgia farms.

“This is our big audacious goal: I want us to be the go-to pecan snack brand in the world,” she says.

Helping her on the journey is RG Lamar, a third-generation pecan farmer and company CEO.

RG Lamar, a third-generation pecan farmer and Stuckey’s Corporation CEO.

(Stuckey’s Corporation)

“I can say as a Georgia pecan grower, I may be a little bit biased, I don’t know, but I genuinely believe we grow the best pecans in the world in the state of Georgia,” Lamar smiles.

He credits ample rainfall in the southeast and higher oil content with helping grow a larger-sized nut. The result is perfect for creating candied treats at Christmas.

Today, on an in-shell basis, Stuckey’s handles about 2 million pounds of Georgia pecans a year. As a state, Georgia grows roughly 100 million pounds.

“Interestingly, roughly 10% of the pecans grown in Georgia are grown in someone’s yard,” Larmar says.

Soon, the newly refocused Stuckey’s brand will be using even more Georgia pecans as the business continues to expand.

“Why is it that when you go into the grocery store, walk down the salty snack aisle and you get to the nuts, you can find every other nut sitting in that section, but you don’t see pecans there very often,” Lamar asks.

Georgia Pecan Orchard

(Stuckey’s Corporation)

It’s a question this farmer and farmer’s granddaughter are aiming to answer.

“Of the original 368 stores there are only 12 left,” Stuckey says. “That’s OK because I saw what wasn’t on the balance sheets and that is the value of the brand.”

A brand, dumping, churning, dipping and packaging pecans, log rolls and clusters just the way the founder WS Stuckey did when he started.

“I would like to think if he were alive today, he would be really happy we’re making our comeback the way we began, as a pecan company,” Stuckey says.

Watch Christmas in the Country on Dec. 25 on AgDay TV .

Santa Will Drink More than 5 Million Gallons of Milk This Christmas Eve

USDA Issues Permit for Santa’s Reindeer to Enter the U.S.

Banker poll shows nearly 40% of farmers may lose money in 2024

Thu, 19 Sep 2024 20:10:44 GMT

A Creighton University survey of rural bankers reflects a bleak picture for U.S. farmers.

For a 13th straight month, the overall Rural Mainstreet Index from Creighton University sank below growth neutral, according to the September survey of bank CEOs in rural areas of a 10-state region dependent on agriculture or energy.

The region’s overall reading of 37.5 for September was the lowest since the beginning of the pandemic in spring 2020, according to a news release. The index ranges between 0 and 100, with a reading of 50 that represents growth neutral.

“Weak agriculture commodity prices, sinking agriculture equipment sales and elevated input costs pushed the overall reading below growth neutral for the 13th straight month,” Ernie Goss, Jack A. MacAllister chair in regional economics at Creighton University’s Heider College of Business, said in the release.

For the fourth time in the past five months, farmland prices sank, according to the survey. The region’s farmland index fell to 43.8 from 45.5 in August.

“Only 4.2% of bank CEOs reported that farmland prices expanded from August levels,” Goss said.

On average, bank CEOs expect farmland prices to decline by 5.3% in the next 12 months.

“Of greater concern, approximately one-fourth of bankers anticipate a 10% to 20% downturn in farmland prices over the next year,” Goss said.

The farm equipment sales index for September increased to 19 from 16.7, though September represents the 14th straight month that the index has fallen below growth neutral.

“Higher borrowing costs, tighter credit conditions and negative farm income are having a negative impact on the purchases of farm equipment,” Goss said.

Across the region, bankers expect approximately 39.1% of farmers to experience negative 2024 farm income.

Rural bankers remain very pessimistic about economic growth for their area over the next six months, the release said. The September confidence index slumped to 22.9 — its lowest level since November of last year — down from 27.3 in August.

“Weak agriculture commodity prices, negative farm cash flow, combined with downturns in farm equipment sales over the past several months, continued to constrain banker confidence,” Goss said.

Are Arizona Crops Sizzling as Temperatures Soar? One Farmer Says the Heat is Normal for July

Fri, 28 Jul 2023 22:23:40 GMT

Global temperatures may have set a new record in July, according to some early analyses. As the high U.S. temperatures stole headlines this week, the Biden administration rolled out provisions to protect workers from extreme heat.

The United Nations Secretary-General, António Guterres, says scientists confirmed July is on track to be the world’s hottest month on record. One study suggested global temperatures in July could beat the previous record set in 2019 by 0.2 degree Fahrenheit.

Arizona is seeing a streak of heat. Earlier this month, Phoenix broke a 1974 record for the consecutive number of days the temperature reached more than 110 degrees Fahrenheit, according to the National Weather Service.

Yuma County, Arizona farmer John Boelts says the heat people are experiencing in his area is typical for July.

“The heat always impacts us, but I think the best way to describe it is we’re used to that,” says Boelts, who along with his wife, Alicia, operates Desert Premium Farms in Yuma, Ariz. “That’s normal weather for July and the low desert here in Yuma,” he adds.

The streak of heat in Arizona isn’t the only news generator this week. The state also recorded the all-time record low one day this week, when Phoenix Sky Harbor reached a low of 97 degrees on Wednesday. That made it the highest low temperature ever recorded on July 26 in the city.

“As a teenager starting to work in ag full time myself, I can remember leaving to go to work and passing the bank signs, long before we all had thermometers in our vehicles, and it was not unusual to see 94, 95 or 99 degrees at sunup here in Yuma as you’re driving through town headed out to the field. So that’s kind of what we’re experiencing now,” he says.

His area is known for growing crops like leafy greens, broccoli and cauliflower that are then shipped across the U.S. and Canada, but those crops aren’t grown during the heat of the summer in Arizona.

“This time of year, we know it’s going to be hot. So we’re growing crops like cotton and sudangrass, and we’re preparing our land in a way that’s appropriate for the time of year and the season in this type of weather, because we’ll start planting fall melons and our winter produce crops in August,” Boelts says.

Crops like cotton need heat and a lot of sunshine, making it ideal for Arizona in the summer. Boelts says he and other farmers were more challenged by the second consecutive year of record cool temperatures in May and June.

Blame It (Partially) On El Nino

What’s causing the warm temperatures that parked across the South and Southwest earlier this month, but then crept into the Midwest this week? USDA Meteorologist Brad Rippey says for the South, the problem heat started in mid-June.

“That’s when we started to see some trouble brewing in Texas. More recently, that’s expanded into the western United States, especially the Desert Southwest. That heat that’s coming up from the South is likely more related to El Nino than anything we’ve seen to this point,” says Rippey. “So, you can likely blame some of that high heat in Texas and Arizona, for example, on the developing El Nino.”

Rippey says there’s also some linkage to the high pressure system over Canada and the heat over Texas this week.

“It’s sort of a blend between blocks, if you will, and that is creating some of the extreme heat that we’re seeing in the western Corn Belt and in the Great Plains this week. But again, that’s not completely related to El Nino,” Rippey adds.

NOAA officials declared El Nino arrived in June, but the signs of it have been minimal so far. Earlier this year, some officials predicted the arrival of El Nino would bring ample rainfall to the Corn Belt and other favorable changes. However, Rippey says the current summer weather isn’t too far off course with a typical El Nino.

“The thing about El Nino is its biggest impacts on the northern hemisphere weather typically occur during the cool season as you move into October and beyond, so that October to April timeframe,” Rippey says. “That’s when you see the consistent signal within Nino, usually wet in the southern United States, mild and often dry across the North.”

Signs of Change

He says those El Nino effects are still months away, but for now, El Nino is a contributing factor to the heat in the deep South.

As Boelts manages Arizona heat every year, he says this year he and other residents are hopeful the moisture situation continues to turn more favorable not only for where he lives, but also to support the water level in the Colorado River.

“We know we’re not going to get a lot of rainfall, so we’re very dependent on being able to irrigate our crops with Colorado River water,” he says. “And we’ve been very excited to see that the Colorado River watershed has received a lot of moisture this year, not just in Arizona, where we contribute heavily to the Colorado River watershed, but also in the in the upper parts of the basin in Utah and Colorado. We’re moving in the right direction, refilling those reservoirs. And so we’re hopeful that we’re at the beginning of a trend of improvement.”

Nominate Outstanding Farmers for Top Honors

Fri, 28 Jul 2023 14:31:07 GMT

The 2023 Top Producer Summit will be held Jan. 23–25 in Nashville. During the Summit, Top Producer will recognize remarkable farmers who have taken risks, built thriving businesses and given back to their communities.

The entry deadline for each award is Sept. 30.

2023 Top Producer of the Year

The award honors three producers whose operations are at the forefront of agriculture and crowns one winner. Entrants are judged on entrepreneurial originality (50%), financial and business progress (30%) and industry or community leadership (20%). All three finalists receive trips to the Summit, CEO coaching sessions and other prizes. The winner also receives a lease of a Case IH tractor. Learn more.

2023 Tomorrow’s Top Producer Horizon Award

The award recognizes farmers 35 and under who represent the next generation of esteemed farm leaders. Entrants are judged on entrepreneurial originality (50%), financial and business progress (30%) and leadership (20%). The winner receives a trip to the Summit, a drone and other prizes. Learn more.

2023 EWA Trailblazer Award

This award is given to a female producer who is a shining example for her peers. Entrants are judged on agricultural advocacy (50%), farm business innovation (30%) and industry or community leadership (20%). The winner receives a trip to the Summit and leadership or succession planning consulting sessions. Learn more.

Does Your Farm’s Financial Reporting Pass the Grade?

Mon, 24 Jul 2023 20:46:50 GMT

Think about how your farm has grown in size and scope over the past decade. Has your financial reporting followed suit?

“Farmers really struggle with anticipating the needs for better financial reporting,” says Curt Covington, senior director of institution credit at AgAmerica Lending . “One of the biggest risks farmers make as they grow is information risk.”

Covington defines information risk as the quality of the financial data and information farmers are collecting, analyzing and acting on. To have the best information today, he says farmers must adopt accrual accounting.

Most farmers use cash basis accounting, says Paul Neiffer, a CPA who works with farmers.

The main difference between accrual basis and cash basis accounting is the time at which income and expenses are recognized and recorded. The cash basis method generally recognizes income when cash is received and expenses when cash is paid. The accrual method recognizes income when it is earned and expenses when they are incurred.

“It’s important for farmers to understand that cash accounting — cash in, cash out — does not do a very good job of explaining what your farm really made,” he says. “It doesn’t help you plan forward. By using farm accrual accounting on an on-going basis (not simply making some adjustments at year-end), you can accurately determine how much income you generated off of this year’s crops and know what you really made for the year, not what you show to the tax man.”

Listen to Covington on The Farm CPA Podcast with Paul Neiffer:

For today’s complex farm operations, accrual accounting can remove some of the guesswork and provide better information for multiyear projections, Covington says. It can also make your loan renewal process easier.

“You want to get your loans approved quicker? You want to get it done with less questions? Provide us accrual based financial reporting,” he says.

The switch to more comprehensive financial reporting, Covington admits, can be a bit tedious. “Plus, farmers often say they don’t see the benefit to the cost,” he says.

Yet he encourages farmers to look at adding someone to the team who can provide strong bookkeeping and/or analytical skills.

“Once you employ managerial accounting principles to understand the enterprises in your business, you’ll see the benefits,” he says. “It is one of the most valuable tools you can implement.”

Assess Your Farm Financial Reporting
Successful and profitable farmers display certain financial habits that separate them from others. These habits, consistently applied through the years, add up, and the results are evident. Neiffer encourages farmers to ask themselves these questions:

Are you using a computerized accounting system?
Do you record your income and expenses on some type of accrual system?
Do you print out your balance sheet, income statement and statement of cash flows on a monthly basis and use it in your farm operation?
Do you know more about your farm finances than your banker does?
Do you book crop inventories on your balance sheet?
Do you calculate your deferred tax liability and know what that means?
Do you calculate depreciation based on some type of economic depreciation or book depreciation?
Do you prepare both historical and fair market value balance sheets?

If you do at least six out of eight, give yourself an A. If you do four to five, give yourself a B-. Less than four is likely a failing grade on your farm financial reporting.

“For those farmers with a failing grade, I would suggest looking at the guidelines at the Farm Financial Standards Council website,” Neiffer says. “They can help you get a passing grade.”

Read More:
Farming for ROI: It May Be Time to Give Your Accounting Method a Makeover

Top 10 Reasons You Might Need Accrual Accounting

Adapt or Crash: Choose Your Business Path

Mon, 24 Jul 2023 20:22:34 GMT

As the leader of a business, you have two choices. As trends and economics change, you can adapt and capitalize on the opportunities, or you can stay the course and watch your business decline.

At some point, your farm will face an inflection point, which is a business term for an event that changes a company or industry. Think about GPS guidance, the pandemic and electronic commodity training.

“After that inflection point, all bets are off; the industry changes,” says Damien McLoughlin, professor of marketing at the University College Dublin in Dublin, Ireland. “The forces that drive that change are rarely a surprise, and the change, which appeared to be so gradual, then suddenly comes into play.”

In using the book, “ Seeing Around Corners ” by Rita McGrath as a guide, McLoughlin provides steps to push your business toward growth.

Build a united organization. Everyone on your team needs to understand they play a vital role. “When a leader casts a vision of great improvement, everyone feels hopeful,” says Mark Faust, president of Echelon Management.
Focus on innovation. Create a business culture that accepts and thrives on innovation, McLoughlin says.
Enhance your business’s resilience. To do this, Faust suggests sitting down with your team and discussing the future. Look at the trends; see how your competitors are approaching the changes and brainstorm solutions.
Develop a written strategy. “Strategy is simple,” McLoughlin says. “It’s about a leader asking: What are the opportunities in our environment, and what resources do I have now, or can I assemble, that allow me to take advantage of these opportunities?”

Andy Grove, Intel’s co-founder, described a strategic inflection point as an event that changes the way we think and act. The seismic event occurs, then businesses either thrive or die.

Is Trouble Brewing for the Farm Economy?

Mon, 24 Jul 2023 20:05:15 GMT

For the first time since September 2020, the rural economy is showing signs of weakness. That’s according to the March Rural Mainstreet Index (RMI) from Creighton University.

For June 2022, the RMI sits at 49.8. That is down from May’s 57.7. The index ranges between 0 and 100 with a reading of 50 representing growth neutral and is generated by a monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.

“Much like the nation, the growth in the Rural Mainstreet economy is slowing,” says Ernie Goss, who chairs Creighton’s Heider College of Business and leads the RMI. “Supply chain disruptions from transportation bottlenecks and labor shortages continue to constrain growth. Farmers and bankers are bracing for escalating interest rates — both long-term and short-term.”

Bankers were asked their U.S. recession expectations for the next 12 months. Approximately 92.9% rate the likelihood of a U.S. recession above 50%. Only 7% rated a recession probability below 50%.

“Fuel prices are starting to have a severe negative impact on rural Nebraska,” shared Jon Schmaderer, CEO of Tri-County Bank in Stuart, Neb.

Farmland Prices Stay Strong

The region’s farmland price index for June hit 76.8, up from May’s 72. That marks the 21st straight month the index has moved above growth neutral. Over the past several months, the RMI has registered the most consistent and strongest growth in farmland prices since the survey was launched in 2006.

So far in June, Peoples Company appraisal team tracked 32 cropland auctions across 17 Iowa counties. In total, 4,305 acres of cropland sold in auctions for $57.8 million, or an average of $13,426 per acre.

In late May, a farm in Plymouth County, Iowa, sold for $25,000 per acre – a new record .

On average in June, bank CEOs expect 2022 net farm income for grain farmers to be 12.6% above 2021 levels.

The June farm equipment-sales index climbed to 71.4 from May’s healthy 66.9. This was the 19th straight month that the index has advanced above growth neutral. Readings over the past several months are the strongest string of monthly readings recorded since the beginning of the survey in 2006.

Meanwhile, the loan volume at rural banks is increasing. The June loan volume index rose to 78.5, its highest reading since May 2019, from last month’s 73.0.

“Escalating costs of farm inputs pushed borrowing up to its highest reading since May 2019,” Goss says.

Surging energy prices and rocketing agriculture input prices constrained the business confidence index to 33.9, its lowest level since May 2020. This marks the lowest back-to-back readings since the beginning of the pandemic in April and May 2020.

The RMI, which started in 2005, represents an early snapshot of the economy of rural agricultural and energy-dependent portions of the nation. It focuses on 200 rural communities with an average population of 1,300.

Squash the Record: Nebraska Pumpkin Grower Paddles 846-lb. Pumpkin on Missouri River

Mon, 24 Jul 2023 18:11:29 GMT

To commemorate his 60th trip around the sun, Duane Hansen set a new world record. Hansen, of Syracuse, Neb., grew a pumpkin that clocked in at 846 lb. (and appropriately named it Berta). He hollowed it out to create a makeshift boat.

At 7:30 a.m. on Aug. 27, Hansen jumped in his pumpkin and launched from the Missouri River boat ramp in Bellevue, Neb. Eleven hours and 38 miles later, he docked in Nebraska City, Neb. Hansen’s 38 miles afloat in his orange vessel eclipses the previous record of 25.5 miles, which was set in 2018 by a man who paddled from North Dakota to Minnesota, according to Guinness World Record .

“I’ve been dreaming about this,” Hansen says. “This has been a five-year journey to get a pumpkin that’s big enough.”

What was the biggest challenge of the journey? “Not swamping it,” Hansen told News Channel Nebraska .

Gourdspeed Duane, gourdspeed.

High Interest Rates and Inflation Dragging Down the Rural Economy

Mon, 24 Jul 2023 15:56:25 GMT

For a fifth straight month, the rural economy has posted signs of trouble. That’s according to the Rural Mainstreet Index (RMI) from Creighton University.

For September 2022, the RMI sits at 46.3. While it is up from August’s 44, it is still the fifth month below growth neutral.

The index ranges between 0 and 100 with a reading of 50 representing growth neutral and is generated by a monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.

“The Rural Mainstreet economy is now experiencing a downturn in economic activity,” says Ernie Goss, who chairs Creighton’s Heider College of Business and leads the RMI. “Supply chain disruptions and inflationary pressures from higher farm input costs continue to constrain growth. Farmers and bankers are bracing for escalating interest rates, higher farm input costs and drought.”

Four of 10 bankers indicated that high and escalating farm input costs were the greatest economic challenge to their bank and area over the next 12 months. More than two of 10 bank CEOs reported drought impacts were the greatest economic challenge going forward.

James Brown, CEO of Hardin County Savings Bank in Eldora, Iowa, reported that, “initial farm customer reviews show good crop production and cash flow analyses.”

All Eyes on Farmland

The region’s farmland price index for September climbed to 61.1 from August’s 60.0, marking the 24th straight month that the index has moved above growth neutral.

“Increases in interest rates and farm inputs will adversely affect our farmers,” reports Jim Eckert, president of Anchor State Bank in Anchor, Ill.

According to Jim Rothermich of the Land Talker, five farmland sales auctions between Aug. 27 and Sept. 2 yielded sales of greater than $20,000 per acre in Iowa counties of Ida, Dubuque and Sioux.

After falling below growth neutral in August, the farm equipment-sales index soared to 58 for September from 45.9 in August. The index has risen above growth neutral for 21 of the last 22 months.

The September loan volume index climbed to a strong 79.5 from 73.9 in August.

“Higher costs of farm inputs and drought conditions in portions of the region supported stronger borrowing from farmers,” Goss says.

Looking forward, the slowing economy, strong energy prices and high agriculture input prices constrained the business confidence index to 40.7 in September, which was up from 38 in August.

The RMI, which started in 2005, represents an early snapshot of the economy of rural agricultural and energy-dependent portions of the nation. It focuses on 200 rural communities with an average population of 1,300.

John Phipps: The New Technology Helping Cool the GMO Debate

Tue, 20 Jun 2023 13:59:09 GMT

The public apprehension over Genetically Modified Organisms (GMOs) has slowly dissipated as an abundance of non-GMO offerings have been made available to consumers. One major concern was the transference of genetic material between species.

These transgenic mutations made some consumers uneasy, but they also made GMOs detectable. Soon simple and rapid tests could make sure if corn was GMO or not. Such detectability is crucial.

Compare this situation to organic, for example, where the only criterion was essentially the word of the producer, backed by paperwork, inspections, and other oversight – not a laboratory test. Science has moved on.

Using a genetic engineering tool with the handy name of CRISPR/Cas9, breeders can now alter genes without using transgenic material. This is essentially the same method as conventional plant breeding only capable of targeting a specific gene segment instead of waiting for an identical natural mutation to occur and be sorted out.

CRISPR results are identical to results from conventional breeding. Without outside material involved it is impossible to differentiate from conventional and CRISPR results.

While food activists may still object, recent scandals in the organic food industry suggest trying to discriminate against CRISPR products will be impossible or at least worse than the current shaky organic verification regimes. It would also make no sense or calm any fear.

Gene alterations occur constantly from natural causes such as background radiation, gene replication errors, and traditional breeding, evidenced by the importance of pedigrees for breeding livestock.

When this genetic tool first began getting attention, I wrote about it in Top Producer. I was a little too enthusiastic six years ago about when the first fruits of this work would show up in supermarkets.

It is happening now, and one of the first foods to be improved is sadly, mustard greens. The new varieties are less bitter, I guess, but then I’m far from a salad aficionado.

My hope is we could finally solve some more pressing vegetable issues – like shippable tomatoes with August-garden juiciness and flavor. Meanwhile consumers may be, knowingly or not, storing one of the most advanced scientific discoveries in their refrigerators.

In other words, we’ll be putting CRISPR in the crisper.

6 Tips to Maximize Time on the Farm

Fri, 12 May 2023 01:59:37 GMT

Do you feel like your to-do list far exceeds the hours in a day? Or, do you feel you spend your entire day just putting out fires and never focusing on the important jobs on the farm? “If you do not run your day, your day will run you,” says Mary Kelly, CEO of Productive Leaders and a 20-year veteran of the Navy.

“When you take control of time and use it wisely, you free yourself up for new opportunities. Having control of your time protects you from needless stress and allows you to plan for the success you want.” These strategies help you have more control over your time and own your schedule, she says. Your goal: Be very strategic with your time.

1. CREATE A DAILY TO-DO LIST

Once you have your list, plan your entire day, Kelly says. Include the small details, such as taking 5-min. or 10-min. breaks.

“Know what you want to do and make room for interruptions,” she says. “If a critical and unplanned issue needs attention, find a way to attend to it while still doing crucial tasks.”

A clear plan for each day increases focus, adds Bob Milligan, senior consultant at Dairy Strategies .
“Uncertainty and indecision increase stress,” he says. “Developing this plan could be part of your end-of-the-day routine.”

2. USE A PRODUCTIVITY TECHNIQUE

Do you have trouble concentrating on a large project for a long time? Use a version of the Pomodoro Technique , Kelly suggests. This technique was invented in the 1980s and is named after the classic tomato-shaped kitchen timer. (Pomodoro is Italian for tomato).

Step 1: Set a timer for 25 min. and give one task your undivided attention for that time.
Step 2: When the timer dings, take a break and do a totally different task for 5 min.
Step 3: After your 5-min. break, spend another 25 min. working on the original task.
Step 4: Take another 5-min. break; lather, rinse, repeat!

3. CLEAR THE CLUTTER

Can you only see snippets of your desk under a pile of piles? These stacks of very important papers and other clutter can quickly expand to fill any space.

“Every week, I schedule a cleaning of the workspace,” Kelly says. “I take everything off the desk and then file it, toss it or organize it. It is easier to be productive and switch gears when my workspace is neat, clean and organized.”

4. USE TASK TIME ESTIMATES

Know which tasks are your top priority and label them your As and Bs and 1-2-3s, suggests Mark Faust, president of Echelon Management .

“You’ll know what you have to get done first; then start putting a time estimate next to each priority,” he says. “Add up the total hours of work on your list, and if it exceeds seven hours of work, then push off some items until tomorrow. Long lists slow you down.”

5. CREATE HABITS TO REACH GOALS

“Tracking your habits gives you a visual reminder of all the progress you are making, but make sure it is an attainable goal,” Kelly says.

For instance, if you need to update leases for all of your rented farms, set a daily goal to review two or three. Do this for a certain number of weeks and the job is done.

“Setting a goal that is too large is overwhelming and often leads to giving up,” she says. “Seeing your progress gives you increased energy to keep moving forward.”

6. WORK AHEAD OF DEADLINES

We tend to overestimate what we can do in the short term and underestimate what we can do in the long term. As a result, Kelly says, many people miss deadlines because they are unrealistic.

“They do not plan their work properly, they procrastinate and then they are late,” she says. “Set deadlines to avoid procrastination or the I-still-have-plenty-of-time-to-do-this attitude.”

Deadlines inspire action and improve productivity. Kelly’s advice: Assign deadlines to every goal and task. Doing this helps us work more efficiently toward the right results.

9 Tips for Improving Soil Health on Your Farm

Thu, 23 Mar 2023 02:19:55 GMT

Create a groundwork for high yields and profitability

Farmers know improving soil health can supercharge crop performance. However, it’s not always clear what steps or adjustments a farmer can take to see real results. Try these nine strategies first to transform soil from good to great.

1. START WITH THE FOUNDATION

First, look at how well water moves up and down the soil profile, says Farm Journal Field Agronomist Ken Ferrie . “One of the biggest issues affecting soil health a lot of times are past sins, such as compaction layers that restrict root and water movement limiting soil oxygen.”

If flipping a field’s soil health is the goal, he says, it might require deep tillage to remove layers or improving field drainage with tile before adding other systems like cover crops or no-till.

2. KEEP A LIVING ROOT

“The soil is alive; in one teaspoon of healthy soil there are more microbes than there are people on the earth,” says Mitchell Hora, CEO of Continuum Ag . “Those microbes need to eat, which means we need to pump more carbon and simple sugars into the ground via photosynthesis.”

Without living roots, microbes can die off and processes such as nutrient cycling, water management, building aggregate stability, improving water holding capacity, storing carbon or building organic matter all stop.

3. TAKE A HOLISTIC APPROACH

“The whole farm, every single acre, works in tandem because the environment all works together,” says Jamie Johnson, a farmer in Frankfort, S.D., and 2022 regional winner of the American Soybean Association Conservation Legacy Award. “We try to approach it as a whole system.”

For them, that means incorporating other types of agriculture back into the operation, such as livestock to provide added nutrients, organic matter and biodiversity.

4. ADOPT PRECISION AG

Precision ag practices, such as variable rate applications and creating management zones, can save farmers money and resources by limiting over or under application while focusing on improving overall soil heath.

“If we can tell through precision ag applications a soil type is not able to produce a certain number of bushels, then there’s no reason to plan for bushels beyond its ability because the soil is the limitation,” says Neil Dominy, assistant state conservationist for partnerships for the Nebraska Natural Resources Conservation Service. “Management zones can help us dial that in.”

5. BALANCE SOIL PH

The bacteria that break down organic matter don’t work well in highly acidic soils. Organic matter can tie up important nutrients, including nitrogen. A pH range of 6 to 7 is optimum for making sure nutrients are available to plants, although most field crops work well between 5.5 and 6.5.

“We always think about nutrients producing a big crop, but those nutrients also feed the microbial biology in the soil,” Ferrie says. “If a farm is too acidic, for instance, it really slows down the biology.”

6. NO-TILL CEREAL RYE AHEAD OF SOYBEANS

Farmers looking for an easy place to start should consider no-tilling cereal rye as a cover crop in the fall ahead of next season’s soybeans.

“In that soybean year, you can drill your soybeans or plant your soybeans green and then let the rye keep growing,” Hora says. “You’re getting the benefit of that rye managing your moisture while feeding nutrients back to the seedbed.”

7. MINIMIZE DISTURBANCE

Farmers focusing on soil health should limit or minimize disturbance of soil, Hora says.

“If you’re building those microbial communities up but then destroy their home with tillage or over application of fertilizers, what good are we really doing?” he asks.

By limiting disturbance, you can help improve aggregate stability, add pores, improve carbon sequestration and increase water infiltration.

8. PLANT GREEN, TERMINATE RYE LATER

Before you terminate a cover crop such as rye, wait until it starts to drop pollen, or the soil becomes dry after soybeans are up and growing. Then hit the field with a single herbicide pass on a day when rain is not in the forecast.

“This lets you reduce that early pass of herbicide,” Hora explains. “We don’t need a pre-emerge, we don’t need that preplanting pass of herbicide or even that early post- emerge pass.”

He currently relies on a quart of generic glyphosate. If you want to eliminate chemistry further, use a roller or crimper to terminate rye even in soybeans between V1 and V3.

9. BE ON OFFENSE, NOT DEFENSE

“Often cover crops and no-till have been branded as defensive management tools — defense against erosion and defense against water quality problems — but really that cover crop is my offensive tool,” Hora says. “It’s my nutrient stabilizer, it’s my herbicide program, it’s my moisture management program, it’s my soil building program, it’s my resiliency program.”

Farm Journal Editor Clinton Griffiths is a TV newsman turned magazine editor with a passion for good stories. He believes the best life lessons can be found down a dirt road.

From Fresh Berries to Lettuce, What We Now Know About the Agricultural Losses Caused by Flooding in California

Fri, 17 Mar 2023 21:18:25 GMT

California farmers are facing another round of flooding , with fields still bearing fresh scars from January’s flood event . An area known for the production of fresh berries, as well as leafy greens, is bracing for the worst, and officials expect the March flooding to spread over more acres than January.

The Monterey County Ag Commissioner’s office conducted an assessment of the January floods, which projected the flood waters covered 20,000 acres in Monterey County, which is home to the Salinas Valley. The losses were pegged at $330 million , and that was at a time when the majority of the spring crops hadn’t been planted yet.

“Now we have March flooding, so those farms adjacent to the Salinas River, and in other low lying areas, which are at most risk for flooding again, I think the difference this time is kind of two-fold,” says Chris Valadez, the president of the Grower-Shipper Association of Central California . “One, you had crops planted in the ground for the upcoming spring harvest. So, there is direct crop damage this time more so than there was and would have been in the January event, and two, not only did you know virtually all of the 20,000 or so acres, flood again, but this weather system and the resulting flood and volume of water that was coming down the Salinas River and spilled over laterally into farm fields was more aggressive.”

Related Story: California Strawberry Commission shares update on devastation from river flooding

This week, the atmospheric rivers are having a larger cut due to a levee breach. The water is impacting fields planted in fresh berries, like strawberries and raspberries. Some of the low-lying area are also home to leafy green production like lettuce. While the damage will be severe for those in the flood water’s path, Valadez says the entire area includes close to 360,000 acres of productive farmland, most of which is expected to still be harvested this year.

“There are an array of different row crops, vegetables, and others that that are planted in that will be harvested and shipped come this spring. That is just kind of the good news, if there’s any to share from this event,” he says. “The bad news is there’s more acreage there’s going to be more direct crop loss, there’s going to be more negative impact onto the agricultural economy, families and farm workers that will continue kind of suffering through this region.”

Residents in the rural community of Porterville, California, say it took 15 minutes for floodwaters from a broken levee to devastate their homes. Some are now wading through the murky waters to feed their animals, as they say they had no warning that the flood was about to hit pic.twitter.com/UEjVyHUgTo
— Reuters (@Reuters) March 17, 2023

Valadez says this March flood event will have a negative impact on the farming communities, as well as the farm families and employees who rely on the production each year. That’s a concern Supervisor Luis Alejo of the California State Association of Counties in District 1, also told CNN.

“The pain is going to be prolonged for many weeks and months. This should have been the beginning of the harvest season,” says Alejo.

Related Story: California farm groups praise governor’s actions to recharge aquifers

There are concerns about what any crop loss will do to overall supplies this year, and the damage is still unknown.

“There will be more crop losses as areas that have not experienced flooding now are now experiencing it for the first time,” says Norm Groot with Monterey County Farm Bureau.

Valadez says if previous flood and drought events have taught the area one thing, it’s farmers in that part of California are extremely resilient, but Valadez says the weeks and months ahead will be hard for those producers, and they’re going to need help.

“In some cases, they’re going to need people to get out of the way, we’re going to need to cut some red tape at the local level, perhaps at the state level as well, regulatory speaking, to get berms and levees back up so that the river can handle appropriate water levels getting from point A to B, so that they’re not as at risk to flow laterally and on to ag fields,” he says. “And so reducing red tape, allowing farmers to kind of put the pieces back together and really allow them to rebound because they are naturally resilient and history has shown they’ll come back stronger than ever.”

Valadez says the area is confident they will be able to work together and overcome the challenges Mother Nature is throwing their way, as the ultimate goal is to get farms back to a healthy state so those fields can start producing valuable crops again.

Why a New App Designed by Iowa State Could Be a Game Changer to Identify and Diagnose Unwanted Pests

Fri, 03 Feb 2023 02:09:49 GMT

In fields across Iowa, unwanted pests are on the prowl year after year, but a new app could help farmers not only detect which pests are in their field, but also give insights on how to treat the field if it’s a yield-robbing pest.

“It is the first of its kind in the sense we are trying to cater the needs of farmer by putting these management practices or strategies linked with insect detection,” says Arti Singh, assistant professor in Department of Agronomy at Iowa State University.

The main goal is to make pest management simpler, which is why the app is a one-stop shop that first identifies the pest, but also gives management advice by recommending on next steps.

“They go into a field, they take a picture, and in real time, it tells them which insect it is, whether it’s a beneficial insect or if it’s a harmful insect,” she adds. “It also gives them the scientific name and common name of the insect.”

The app is already able to identify 2,000 different insects today, but by early next year, it will have the capability detecting and diagnosing more than 4,000 pests. The growth of the app’s capability is being driven by the power of artificial intelligence.

“We use a concept called deep learning, which is the subset of artificial intelligence, where we collect these images, and we pass it through a network, if you will, and the network is essentially extracting all different kinds of features of this of the images and then making a decision on which insect class it belongs to,” says Baskar Ganapathysubramanian, professor associate chair for Research Mechanical Engineering, Iowa State University.

In order to double the amount of insects it can detect by early next year, millions of images will need to be collected, a process that’s already underway.

“I think the large amount of data that we have been collecting, both from sensors, from images, from drones and from citizen scientists, has provided a wonderful opportunity for us to train new kinds of artificial intelligence models on this data so that we can facilitate decision support and enable farmers to do what they do better, faster and easier way,” says Ganapathysubramanian.

While creating a pest identification has a goal of simplicity for the end user, the data on the front end can be noisy.

“Different people use different kinds of cameras, different people use different kinds of phones, at different locations in different resolutions,” says Ganapathysubramanian. “So, how do you account for all those things while you design insect detection app is something that we have to deal with.”

Another challenge is the sheer amount of data that the app will need to process. Ganapathysubramanian says some pests will have more than 100,000 images, while other insects may only have 20 photos, and many of those pests have similar characteristics.

“There are also some beetles that looks very, very similar, but they actually belong to different class, so how do you distinguish between two similar looking images, but they actually belong to wildly different classes where one class could be a beneficial pest insect and the other class could be actually a pest, or perhaps an invasive species.”

While artificial intelligence is key, the human element is still a vital piece of the puzzle. However, the sheer amount of data creates a challenge with sorting through all the data.

“You have lot of images, it takes an entomologist, actually to decide what it each individual image, which class it belongs to, but if we have 20 million images like these, it’s difficult for an entomologist to go and look at and rank and read each individual image,” explains Ganapathysubramanian.

The app will help farmers solve pest problems not only today, but also tomorrow, as deep learning continues to evolve with the pests and diseases farmers face.

“We don’t know about these new crops which insect pests or diseases can be a problem, says Singh. “If we have this library of insect pests, and we can use the smartphone app to identify in a timely way and mitigate, I think this will be a game changer for farmers.”

While the app is off to a strong start, the researchers say their work is far from over, as the technology could soon harvest solutions across the U.S. And the researchers say it’s because artificial intelligence, data science and the large amount of data that they’re collecting, are coming together to provide real-time insight and solutions for farmers.

Will There Be A Lettuce Shortage This Year As Parts of Drought-Plagued California Are Now Flooding?

Mon, 23 Jan 2023 20:51:05 GMT

After three consecutive years of drought, relentless rains have hammered California for the past three straight weeks. From flooding to mudslides, the unforgiving weather is wreaking havoc on agriculture and infrastructure in the state. The culprit? An atmospheric river. Even with the intense moisture, the rains hit ahead of the area’s main growing season, which is good news for crops like lettuce and strawberries.

“One of the areas that’s been hardest hit has been the Salinas Valley, which is a northward draining river that starts in southern California, drains northward through some very fertile land in central California, and then exits the northwestern coast of California,” says Brad Rippey, a meteorologist with USDA.

Livestock producers worked to get their livestock to higher ground, while produce fields in some areas flooded as levees caved to rushing waters. California is finally getting a break from the back-to-back storms, Rippey says an atmospheric river is nothing new, but it is rare during a La Niña year.

It’s been like this every day since New Year’s Day. #California #flooding #eldoradocounty #CaliforniaStorms

It’s been hard and the livestock is having a bad time as well but I’m thankful, our house almost burned down 2 years ago. This should help the drought. 🙏🏻 pic.twitter.com/7sJmPOcll7
— 🌷 LIZZIE🌷REFORMED (@farmingandJesus) January 14, 2023

“It’s something that’s been going on since the beginning of time,” Rippey explains. “It’s a very concentrated area of moisture originating in the tropical Pacific, and then pointed like a fire hose at the west coast of the United States.”

Rippey says it causes a series of individual storms, and as California saw, the atmospheric river repeatedly hammers an area with intense moisture.

While the rain might eventually be good news for water allocations for growers, today, producers are wading through the damage.

“It continues to be an evolving situation where not only industry but the emergency response officials and system within the region are still assessing the ongoing nature of those impacts,” says Chris Valadez, president of the Grower-Shipper Association of Central California .

As Rippey mentioned, one of the hardest hit areas is the Salinas Valley. The flooding concerns remain along the Salinas River in Monterey County, as well as portions of Mariposa and Merced counties in the Central Valley, all of which are big growing areas. Monterey County grows 61% of the nation’s leaf lettuce and 57% of the celery. The area is also home to 56% of the country’s head lettuce supply.

“This is a primary region for the production of leafy vegetables and fresh berries, namely strawberries for the U.S. consumer over the spring, summer and fall period of time,” Valadez says.

It’s not clear how long the flooding will last, but the good news is the area is in between growing seasons right now.

“We’re in between seasons right now, a lot of that area is used for late winter and spring production for crops, like strawberries and lettuce crops,” Rippey explains. “Right now, a lot of the lettuce, for example, is coming out of the desert Southwest like Yuma, Arizona, so we’re still a couple of months away from affecting California’s production for some of those specialty crops.”

Related Story: Salinas Valley infrastructure needs a makeover: Q&A with Jim White at Growers Ice

Valadez says the last large flooding event the area had was in the mid-1990s. At that time, the rains and flooding came in March, which hammered fields already planted. As a result, the rains then did flood out many crops that year.

While flooding is never good, and infrastructure will take time to repair, Valadez says this year’s rains hit before the main growing season.

“Those crops largely aren’t impacted because they’re not quite yet into production. However, there are situations here were some of those crops, namely on the leafy vegetable side, were planted,” Valadez says. “I would also perceive, admittedly, there may be some acres that could have suffered so much damage they are not planted. If and where that’s true, I would anticipate that being a very small percentage of the overall available productive acreage or irrigated productive acreage here in this region.”

Timing is key, but the floodwater is still sprouting doubts on when the crops will get planted.

“I believe there’s confidence that as waters recede most of the acres that were impacted should get planted this year, they will be delayed,” Valadez says.

The other concern, for Rippey, is water contamination.

“Water tests will have to be done and soil testing, just to make sure it’s safe to grow these crops,” he says.

Even with the recent rains, the U.S. Drought Monitor shows 92% of California is still covered in drought. The picture is improving, though. Three months ago, nearly 41% of the state was seeing D3, or extreme drought. Today, that’s dropped to 32%. The significant improvement is planting hope the state is possibly turning a corner and can start to recover some of the scars left from so many years of drought and dry weather.

6 Tips for Being a Mentor to a Young Farmer

Mon, 12 Dec 2022 20:19:13 GMT

At a certain point in your farming career, people will ask you for help and advice. This provides you the opportunity to give back, lift others up, provide value and feel good.

But mentoring doesn’t come natural to all of us. Plus, there are times when people ask but they either are not a good fit or maybe aren’t the type of person in which you want to invest.

Here are a few tips for evaluating a mentoring request.

1. ASSESS THE FIT. Is this a person you have the expertise and skills to help?

2. SET TIME PARAMETERS. If someone wants to have a phone call or take you to lunch, you are not obligated to donate your entire afternoon. Say, ‘Sure I have 30 minutes to talk with you.’ Then stick to the parameters. If needed, kindly stop the person when you need to go. They need to respect your time.

3. DETERMINE THE MENTEE’S WILLINGNESS. Does the mentee actually want guidance? Ask him or her if they are up for honest feedback. Like you, I get a lot of resumes from acquaintances’ kids looking for me to recommend them for a job or internship. But not all resumes are the caliber I can recommend to my colleagues. The best thing I can offer is kind suggestions for improvement. I’ve had people get mad, taking offense to the fact I won’t just “send it on.” These are parents and students who can’t accept feedback, and they are not likely to get ahead.

4. SET SOME GOALS. Ask the mentee what their goals are and what outcomes they seek. Are they ready to do something new or take a leap? There is no reason to listen to someone complain about their personal problems (if they are serious enough, you need to connect them with a counseling professional). If the mentee doesn’t keep it focused and productive, move on.

5. ENSURE APPRECIATION. Does the mentee show you genuine appreciation and respect for your time and talents? If they are late, constantly rescheduling or just mooching, it’s not a fit. Have you ever had someone in your house you can’t seem to get to go home no matter how many hints you drop? Or do you have a person who gobbles food or beer and never repays? It feels bad — and it enables. Your mentee should feel grateful for what you offer; if not, it’s not worth it for them.

6. DECIDE IF YOU CARE. No really, do you enjoy talking to the mentee? That’s the easy gut-check question. If you are having fun and learning something from your mentee, it’s probably a great relationship that could span a career. It can be hard to kindly tell someone no; however, I encourage you, for the mentee’s sake equally as much as your own, to evaluate carefully and offer your time thoughtfully.

Join Sarah Beth Aubrey at the 2023 Top Producer Summit in Nashville, Jan. 23-25. Register now!

Executive Women in Agriculture Focus
Tuesday, Jan. 24, Noon to 3:30 p.m.

12:00 p.m. to 12:15 p.m. – Open and Welcome, Sarah Beth Aubrey, ACT
12:30 p.m. – 1 p.m. –Keynote Presentation, Jackie Applegate, Bayer
1 p.m. – 1:20 p.m. – How to Start a Side Business, Sarah Beth Aubrey
1:20 p.m. – 1:30 p.m. – Break
1:30 p.m. – 2:15 p.m. – Female Farmer Panel: Jennie Schmidt, Maryland; Susan Weaver Ford, North Carolina
2:15 p.m. – 3:00 p.m. – How to Keep the Balls in the Air Panel: Mandi Kerr, Global Hemp Association
3:00 p.m. – 3:30 p.m. – Facilitated Wrap Up, Group Fun, Sarah Beth Aubrey

4 Year-End Tax Tips for Farmers from Paul Neiffer

Mon, 21 Nov 2022 20:36:17 GMT

Before you flip the calendar to 2023, cross a few important tax to-dos off your list, encourages Paul Neiffer, CPA and principal with CLA.

1. BE SPECIFIC WITH PREPAID EXPENSES

Supply chain struggles have put a damper on prepaid expenses. To obtain a valid prepaid expense, a farmer has to request a certain quantity of a product. If a supplier can’t provide that quantity, it isn’t a valid prepaid expense for the year.

“So many farmers think they can go down to the co-op and put a deposit down on a product for large sums of money,” Neiffer says.

“We’ve had several clients go through audits and fail on that front, despite our warnings. It just doesn’t work.”

2. STAY OFF THE TAX TREADMILL

Farmers sometimes climb on a tax treadmill ride that can last for decades. With COVID-19 aid, it might be even harder to hop off in 2022. Plus, farmers have received Emergency Relief Payments this year. These types of payments are similar to crop insurance, but you can only defer to the year after damage was incurred.

“These payments are for damage that occurred in 2020 and 2021,” Neiffer says. “2022 is the latest you could defer 2021 payments, and since producers collected them this year, they’re stuck with reporting these payments in 2022.”

3. DRAFT A PLAN FOR UNWANTED REVENUE

With the drought in the West, some cattle producers have been forced to downsize their operations. If you fall into this camp, consider a deferment.

“If a producer normally sells 500 head in a year, and this year they sold 1,000 head, they get to take that extra 500 head and either defer for one year, or up to four, five or six years — depending on how long the drought goes on,” Neiffer says.

4. COUPLE EQUIPMENT PURCHASES WITH TAX PLANNING

If you’re planning to buy farm equipment before the end of the year, here’s a refresher on two tax tools you can use .

Section 179: For 2022, the Section 179 deduction limit is at $1.08 million with an equipment spending cap phasing out beginning at $2.7 million. It can be used for new and used equipment.
Bonus depreciation: Bonus depreciation provides a 100% additional first-year depreciation deduction for qualified property through 2022.

For example, if you buy a new piece of equipment for $300,000, you can depreciate that amount this year. Or you can depreciate the asset out over its useful life, Neiffer says. For example, a new combine can be depreciated out over five years.

“If you pay cash for equipment, deducting all of the depreciation up-front is fine,” he says. “But if you are financing 100%, you may want to elect out of full depreciation and match up the yearly depreciation amounts with your loan payments.”

Jenna Hoffman is a content creator who investigates the issues in Washington, D.C., that matter most to farmers.

7 Pumpkin Facts to Impress Your Friends on Halloween

Fri, 28 Oct 2022 15:35:39 GMT

In honor of Halloween, arm yourself with a few impressive statistics, courtesy of USDA , about everyone’s favorite fall squash: the pumpkin.

1. All States produce some pumpkins, but six States produce most of them.

2. In 2021, Illinois maintained its leading position in pumpkin acreage, harvesting more than twice as many pumpkin acres as any of the other top States, at 15,900 acres.

3. Pumpkins are a type of squash, indigenous to North America, and have been cultivated since at least 7,500 BCE. Today, pumpkins come in two types: pie type and decorative type. Pie pumpkins are generally smaller, denser, and sweeter than decorative pumpkins. Decorative pumpkins come in many varieties, although the orange Howden used for carving is the most common.

4. 80% of pumpkin acres in Illinois are devoted to varieties destined for pie filling or other processing uses.

5. Yields vary greatly among states and years. On average, Illinois grows about 40,000 lb. per acre (predominantly pie varieties), California grows about 30,000 lb. per acre. Indiana and Texas each grow around 25,000 lb. per acre.

6. Growers mainly produce jack-o'-lantern type pumpkins (Howden), but demand for specialty pumpkins—like White Howden, Cinderella, and Fairytale—continues to expand as consumers look for new and interesting varieties.

7. On average each American used 6 and a half pounds of pumpkin each year between 2016 and 2018.

And, of course, you can’t talk pumpkins without touching on the pumpkin spice obsession. Enjoy this AgDay clip from 2017 featuring host Clinton Griffiths:

Source: USDA

Flip Your Soil: Climate Smart Agriculture New Name for Conservation Practices Designed to Promote Soil Health and Carbon Sequestration

Mon, 17 Oct 2022 19:46:34 GMT

Soli health practices can help Flip Your Soil from good to great. These practices are also part of the new Climate Smart Agriculture push to sequester carbon and lower greenhouse gases.

USDA recently announced nearly $3 billion in funding for climate smart agriculture projects, but this isn’t a new concept for many farmers, they’ve been climate smart for years. Nebraska Natural Resource Conservation Service (NRCS) State Conservationist Robert Lawson says it’s just a new name for the many conservation practices growers are utilizing on their farms. “So, when we talk about climate smart ag, we talk about the practices we are implementing day in an day out. So whether that’s no-till, cover crops, crop rotation, nutrient management, those are some of the specific practices.”

The goal, he says, is to improve soil health and promote carbon sequestration. “Using no-till, cover crops that’s helping to build the organic matter over time and that is only helping improve the soil, reducing erosion and also improving water quality as well.”

Farmers are also using technology such as precision agriculture to better manage inputs and nutrients, which also improves soil health. “Whether that’s irrigation water management and nutrient management and variable rate technology,” according to Lawson.

These conservation practices also help farmers reduce the ever-rising cost of inputs on their farm. He says, “Oh absolutely it can help with the ledger sheet by reducing tillage practices over the field, by going no-till, reducing the amount of diesel that you need to buy for the year using cover crops to help with weed suppression so its not another pass over the operation.”

Lawson says many farmers integrated these practices into their operations, even before there was government or other incentives because they want their farms to be sustainable. “They’re the stewards of this land and the reason they are is because they know they want to, they need to keep it for future generations.”

And they want to leave the land better than they found it.

IMF Anticipates Global Inflation Will Peak in Late 2022

Tue, 11 Oct 2022 18:10:47 GMT

The International Monetary Fund forecasts a slowdown in global growth from 6.0% in 2021 to 3.2% in 2022 and 2.7% in 2023.

The global slowdown in 2022 is as projected in the July 2022 World Economic Outlook (WEO) update, while the forecast for 2023 is lower than projected by 0.2 percentage point. In the revised forecasts , 93% of countries received downgrades to their growth outlook.

More to Come

Aside from the global financial crisis and the peak of the Covid-19 pandemic, this is “the weakest growth profile since 2001,” the IMF said in its WEO published Tuesday morning.

“The worst is yet to come, and for many people 2023 will feel like a recession,” the report said, echoing warnings from the United Nations, the World Bank and many global CEOs.

Cause for Shift

The IMF noted three major events currently hindering growth: Russia’s invasion of Ukraine, the cost-of-living crisis and China’s economic slowdown. Together, they create a “volatile” period economically, geopolitically and ecologically.

More than a third of the global economy will see two consecutive quarters of negative growth, while the three largest economies — the United States, the European Union and China — will continue to slow, the report said.

Inflation Timeline

The IMF anticipates global inflation will peak in late 2022, increasing from 4.7% in 2021 to 8.8%, and that it will “remain elevated for longer than previously expected.”

Global inflation will likely decrease to 6.5% in 2023 and to 4.1% by 2024, according to the IMF forecast. The agency noted the tightening of monetary policy across the world to combat inflation and the “powerful appreciation” of the U.S. dollar against other currencies.

Red Flags

The IMF also highlighted that the risk of monetary, fiscal, or financial policy “miscalibration” had “risen sharply,” while the world economy “remains historically fragile” and financial markets are “showing signs of stress.”

In an interview with the Financial Times , Pierre Olivier Gourinchas, the IMF’s chief economist, said there was as much as a 15% chance global growth could fall below 1% eventually. This level would likely meet the threshold of a recession and would be “very, very painful for a lot of people.”

“We are not in a crisis yet, but things are really not looking good,” he said, adding that 2023 would be the “darkest hour” for the global economy.

The energy crisis is also weighing heavily on the world’s economies, particularly in Europe, and it “is not a transitory shock,” according to IMF’s report. “The geopolitical re-alignment of energy supplies in the wake of Russia’s war against Ukraine is broad and permanent,” the report added. “Winter 2022 will be challenging for Europe, but winter 2023 will likely be worse,” the IMF said.

The U.S. economy is expected to stagnate over the four quarters of 2022 and then maintain a sluggish 1% growth rate in 2023.

More on inflation:

Could Food Prices Ease in 2023? USDA’s New Consumer Food Price Forecast Has a Bit of Good News
Is Out-of-Control Inflation on the Horizon? Watch These Two Indicators
John Phipps: The Inflation We Expect