Latest News & Updates in KC Agriculture - July 2024

Developments

Kansas Department of Agriculture’s Division of Conservation (KDA–DOC) has made available funds in the form of cost share assistance and incentive payments to assist commercial feedlots and dairy operations with livestock water efficiency technology. The Kansas Livestock Water Efficiency Pilot Project is part of the state’s ongoing effort to encourage water conservation and to seek solutions for water challenges in the state. The initiative is designed to enhance and/or upgrade current large-scale livestock watering systems in commercial feedlots and dairies by providing cost share assistance for practices such as upgrading to high efficiency livestock waterers and water recycling systems.

The consequences of Congress’ failure to pass a modernized farm bill are brought to light in a new analysis by American Farm Bureau Federation economists. It provides a clearer picture of major impacts of relying on the antiquated 2018 farm bill, including the likely loss of more family farms in the U.S., all of which impact the country’s ability to produce the food, fuel and fiber America’s families rely on. The Market Intel highlights five specific impacts of the failure to pass a new farm bill: a weakened farmer safety net, less future funding for sustainability efforts, a gap in coverage for dairy farmers, further erosion of U.S. leadership in public agricultural research as China takes the lead, and reduced overall economic and national security. AFBF President Zippy Duvall said, “If Congress fails to pass a new and improved farm bill, they will be responsible for leaving farmers in a lurch at a time when we’ve lost more than 140,000 family farms in just five years. When the current farm bill was drafted in 2018, the agricultural landscape was drastically different. Policy that pre-dates a global pandemic, historic inflation, skyrocketing supply costs and geopolitical uncertainty just won’t cut it today or next year. Congress must not put farmers, ranchers and America’s families on the back burner. The House Agriculture Committee has done its part so far. It’s now time for the Senate Agriculture Committee to move this process forward.” The current farm bill extension will expire in September. The nearly seven-year-old law never anticipated a global pandemic, global unrest, record-high inflation and supply chain issues. The people who rely on crucial farm bill programs recognize the need for action now. Five hundred and thirty organizations, including the American Farm Bureau Federation, this week sent a letter to Congress urging lawmakers to come together and pass a bipartisan farm bill.

The National Cattlemen’s Beef Association confirmed that efforts to prevent ultra-processed, lab-grown protein from showing up in the diet of the American armed forces were successful, following news that the U.S. Department of Defense is not pursuing lab-grown protein projects for human consumption. “The Department of Defense can and should be on the cutting edge of science, and we respect their work to investigate defense applications for new tools and technology. However, there’s a big difference between industrial or defense applications and the food we put in our bodies. U.S. farmers and ranchers are more than capable of meeting the military’s need for high-quality protein,” said NCBA Senior Director of Government Affairs Sigrid Johannes. “NCBA appreciates the DoD’s responsiveness on this issue….”

The National Pork Producers Council released a new economic contribution report detailing the significant impact America’s pig farmers have on the United States’ agricultural and overall economy. The report highlights the pork industry’s value chain contributions and trends in production and industry structure. “America’s pork industry is a vital pillar of our nation’s agricultural economy, contributing over $62 billion annually and supporting hundreds of thousands of jobs across the country,” said NPPC president Lori Stevermer. “Producers are committed to delivering wholesome, affordable, sustainable pork products that not only feed millions of families but also drive economic growth and innovation in rural communities.” “Last year brought significant financial challenges for U.S. pork producers, marked by decreased gross cash receipts and a substantially higher average cost of production in 2023,” said Holly Cook, NPPC economist. “Despite these hurdles, this report demonstrates that the pork industry remains a vital contributor to the nation’s economy and a key player in global trade.”

According to the National Children’s Center for Rural and Agricultural Health and Safety, 33 serious injuries involving children occur on a farm or ranch in the United States every day. To prevent these incidents, only youth with proper training and experience should be allowed to drive large equipment (the leading cause of injury and death for all ages on farms), said Tawnie Larson, a project consultant for the Kansas Agriculture Safety and Health program at Kansas State University. “Farm kids do things like drive tractors all the time, which may be not too challenging for some,” she said. “The issue is that, cognitively, they are not prepared to safely handle a situation where something goes wrong, and that’s how major accidents happen.” Kansas Agriculture Safety and Health, is striving to improve the health and safety of Kansans and their neighbors engaged in agriculture throughout the state of Kansas and adjourning regions. More information available at www.k-state.edu/kash/.

USDA has designated three more Kansas counties as primary natural disaster areas due to drought. This designation allows the Farm Service Agency to extend credit to qualified producers through emergency loans. These loans can be used to meet various needs, including the replacement of essential equipment or livestock, reorganization of a farming operation, or refinancing certain debts. FSA will review applications based on the extent of losses, security available and repayment ability. Grant, Hamilton and Stanton counties received the primary designation. According to the U.S. Drought Monitor, these counties suffered from a drought intensity level during the growing season of D2 for eight or more consecutive weeks, D3 or D4. Contiguous counties also are eligible. These include Finney, Greeley, Haskell, Morton, Stevens and Wichita. The deadline to apply is March 10, 2025. For more information, contact a local FSA office.

A new analysis finds Americans are increasingly choosing dairy products as snacks, boosting retail dairy sales by 15.4% over the past three years even as fluid milk consumption declines. A report from CoBank indicates that growing butter, cheese and yogurt sales is compensating for the continuing erosion in drinking milk consumption. Consumption of butter has increased by 43.2% per capita, 45.8% for cheese, and 142.4% for yogurt over the past 25 years. U.S. cheese consumption alone is expected to grow by 10 more pounds per person every 15 years, compared to European cheese consumption, which already averages over 50 pounds per person each year. Despite concerns about lactose sensitivity or intolerance, which affects one in three Americans, cheese remains popular as a snack, with many brands contributing to its growth. The snack market for cheese is expected to reach $65.1 billion this year, with compound annual growth of 6.5% until 2034. U.S. dairy product exports have increased 152% since 2019. “Exports will also be an important point of focus as the U.S. is the world’s largest single-country cheese producer,” the report says. Looking ahead, the outlook for dairy is favorable with "tighter supplies, strong product demand, and higher prices nearly across the board," says Mark Jekanowski, chairman of the USDA World Agricultural Outlook Board. USDA has been raising its forecasts for milk and dairy products, now estimating prices at $22.25 per hundredweight, with projections for a further increase next year.

USDA’s Kansas Rural Development Director Christy Davis announced that the USDA is investing $9.3 million in two Kansas communities that will strengthen food supply chains, increase independent meat and poultry processing capacity and lower food costs. “The USDA is committed to the needs of hardworking producers and small businesses that keep rural communities strong,” said Davis. “The USDA is working to give farmers and ranchers a chance to compete in the marketplace, which will increase local food options and lower costs for Kansas families.” A $2.4 million grant will help build a new USDA-inspected beef and hog processing facility for Top End LLC dba TEAM Processing of Kanorado. The western Kansas facility will provide fee-for-service processing to over 50 local producers. A $6.9 million grant will help construct, equip, and obtain a grant of inspection for a slaughter and fabrication facility, serving an estimated 100 producers in Kansas and Missouri, for Real Kansas Meats LLC of Fall River. The project is expected to create 117 new full-time jobs.

USDA’s National Agriculture Statistics Service estimated 91.5 million acres of corn has been planted in the United States for 2024, a 3% decrease from last year. Conversely, soybean planted area is estimated at 86.1 million acres, marking a 3% increase from 2023. NASS conducted surveys with approximately 9,000 segments of land and nearly 64,000 farm operators during the first two weeks of June to gather detailed information on actual planting activities.

USDA has awarded a record-breaking $14.3 million to the Patrick Leahy Farm to School Grants to 154 projects in 43 states, the District of Columbia, Guam and Puerto Rico. These investments will help 1.9 million children eat tastier, nutritious foods in school, while supporting farmers and producers in their local and regional communities. “Farm to School is a huge win for children, schools, farmers, producers and communities,” said Secretary Vilsack. “When schools have access to fresh, local food options with homegrown flavor, they can serve delicious, healthy dishes that kids are excited to eat, while also supporting the local economy.”

The Missouri Department of Agriculture announced the availability of Food Insecure Cost-Share Grant funds of up to $50,000 per project. Qualifying projects for the grant funds must benefit residents affected by food insecurity in areas which have been designated as an urbanized area by the United States Census Bureau. Applications are due by Aug. 31, 2024 and awarded projects must be complete or near completion by March 31, 2025. The Food Insecure Cost-Share Grant will fund projects that support farmers markets and other economic development initiatives that work to reduce food insecurity in urban areas. Applicants will only be reimbursed for 75% of the total project expenses made during the grant period. This is a competitive grant program, and funds may be used to increase food production and availability within an urban area; demonstrate growth of local economic communities; increase local economic impact; increase availability of food to local residents; or enhance already established areas within a community and provide assistance to the community. Projects must reside in areas which have been designated as an urbanized area by the 2020 United States Census Bureau. If you have questions about your location qualifying, please reach out to Whitney.Williams@mda.mo.gov, or call (573)-751-7794.

U.S. beef exports reached $902.4 million in May, the highest level since June 2023, while pork exports trailed the previous May in both volume and value. The U.S. Meat Export Federation cited strong beef sales to Mexico, Taiwan, and countries that are part of the Association of Southeast Asian Nations for the increase in exports.Beef export value was 3% above last year's and the highest in 11 months. The total volume was 110,133 metric tons, down 5% from a year ago. Japan contributed significantly to market growth and demand, according to USMEF Presidentand CEO Dan Halstrom. “The tourism boom has provided a much-needed lift for Japan’s foodservice sector, and it is a source of optimism for buyers and importers.” Pork exports were down 4% from May 2023 by volume and 2% by value.“Pork shipments to Mexico trended a bit lower in May, but that’s following a record April performance,” Halstrom said. “Even so, export value to Mexico still topped $200 million. Despite the slight decrease in Mexico, Korea showed continued strength for another month, and demand continues to grow in Central America and the Caribbean.”

The Kansas Department of Agriculture’s agricultural advocacy, marketing and outreach team is seeking talented Kansans to serve on the Marketing Advisory Board. The mission of the KDA Division of Marketing is to serve all Kansans through innovative programming and to deliver solutions designed to create an environment that facilitates growth and expansion in agriculture while increasing pride in and awareness of the state’s largest industry — agriculture. The Marketing Advisory Board will advise the program team on a variety of topics through the following sub-programs: agricultural business development, international agricultural development/ trade, From the Land of Kansas trademark program, local foods and affiliated programs, agricultural workforce development, and agricultural education. If you are interested in applying to serve as a Marketing Advisory Board member, please submit a resume, statement of interest/cover letter and tax clearance confirmation PDF via email to Russell Plaschka, Director of Marketing, at Russell.Plaschka@ks.gov. For more details about the board and about the application process, visit the KDA website. All questions can be directed to Russell Plaschka at 785-564-7466. Applications are due by August 1, 2024, and the first board meeting of the new term has been scheduled for Thursday, September 12, in Hutchinson at the Kansas State Fair. 

People

Former Kansas City Southern CEO Patrick Ottensmeyer — who led the cross-border railroad through turmoil over free trade, the transition to a Precision Scheduled Railroad operating model, and its historic merger with Canadian Pacific — died over the weekend. He was 67. “Pat’s vision and leadership played a monumental role in the great history of Kansas City Southern as he helped reshape the railway industry,” CPKC CEO Keith Creel said in a statement. “We have lost a remarkable leader and a cherished friend. Pat’s legacy lives on and can be seen in the work we do every day at CPKC. His contributions as a railroader and as a person will never be forgotten.”

Kevin Strathman, Dairy Farmers of America chief financial officer, has started his term as board chair for Harvesters, a regional food bank in northwestern Missouri and northeastern Kansas. He has served on the board for eight years, including as board treasurer and president elect before beginning the chair role.

Tom Brand, executive director of the National Association of Farm Broadcasting for 12 years, became director of the St. Joseph Community Alliance in Missouri on July 29. Before NAFB, he was farm director at KFEQ radio in Missouri for 15 years.

Sarah Kelly will cover agriculture and food issues for Rep. Jake LaTurner, R-Kan., as a senior legislative assistant. Kelly has previously worked at the Institute for Veterans and Military Families at Syracuse and in the office of Sen. Joni Ernst, R-Iowa.

Past president of the Missouri Corn Growers Association Jay Schutte has been elected to the National Corn Board. The election was held during the recent National Corn Growers Association’s Corn Congress in Washington, D.C. Schutte, a corn farmer from Benton City, represented Missouri corn growers for more than a decade, sitting on the Missouri Corn Growers Association and Missouri Corn Merchandising Council board of directors for three consecutive terms. Schutte also worked on behalf of corn farmers nationally, having served on the NCGA Risk Management Action Team, chairman of NCGA’s Ethanol Action Team, and U.S. Grains Council Asia Advisory Team.

Events

Renowned scientist Peer Ederer will be the featured speaker for the Henry C. Gardiner Global Food Systems lecture October 7 at Kansas State University. Ederer’s international company specializes in research and communicates scientific evidence about the role of animals in the global food system. His presentation will begin at 7:00 p.m. in K-State’s McCain Auditorium. Admission is free. Ederer has been involved in scientific research in cooperation with leading universities worldwide for more than two decades. He formed the company GOALSciences in 2020, which stands for the Global Observatory of Accurate Livestock Sciences, to encourage accurate scientific data regarding livestock production around the world. In 2022, Ederer was a driving force in developing the Dublin Declaration, a report drafted “to give voice to the many scientists around the world who research diligently, honestly and successfully in the various disciplines to achieve a balanced view of the future of animal agriculture.” As of May, more than 1,200 scientists have signed their support for that document. The lecture series is funded by the Gardiner family of Ashland. Organizers are planning a day-long conference October 7 to commemorate the 10th year of the series. For more information and to register:

www.k-state.edu/research/global-food/events/lecture-series/.