Latest News & Updates in KC Agriculture - January 2021

Developments 

The Kansas City Chiefs will be back to defend its Super Bowl title, QB Patrick Mahomes will be there to electrify football fans whether they’re cheering for him or rooting for his opponent. And future Hall-of-Famer Tom Brady will be playing in his tenth Super Bowl Championship game.  But something will be missing. For the first time in 37 years Budweiser won’t be advertising, and the iconic Clydesdales reportedly won’t be the stars of a heartwarming, inspiring short film. Instead, the beer company is allocating money it would have spent on a commercial (worth some $5.6 million per spot) to support Covid-19 vaccine awareness.  However, just because the Budweiser brand will be sitting on the bench doesn’t mean its Belgium-based parent Anheuser-Busch InBev will be on the sidelines, too. AB InBev, which has exclusive advertising rights to Super Bowl’s alcohol category will still be pitching its other products: Bud Light, Bud Light Seltzer Lemonade, Michelob Ultra and Michelob Ultra Organic Seltzer.

Meanwhile Chipotle Mexican Grill will run its first-ever Super Bowl ad this year to highlight the farming practices of its suppliers. During the pandemic Chipotle has been one of the rare successes from the restaurant industry. The burrito chain has seen its digital sales more than triple in its last two quarters, and its stock has soared 72% in the last year, raising its market value to $41.9 billion. Chipotle’s ad aims to keep customers coming back to its restaurants by focusing on its “food with integrity” pledge and how it sources its ingredients. In the commercial, a boy asks if a burrito can change the world, from emitting less carbon to making farmers happier, while showing images of peppers and tomatoes being grown, picked and transported.

FCS Financial’s board of directors has announced the cooperative is returning more than $30.7 million to their member-owners in cash patronage for the 2020 calendar year. CEO David Janish, noted the organization had a strong year in 2020 and its patronage program allowed it to share that success with its member-owners. Since 2006, FCS Financial has returned nearly $180 million to member-owners. 

A new report from the American Farm Bureau Federation provides an in-depth examination into the USDA-National Agricultural Statistics Service’s (NASS) survey collection and data reporting issues. It also provides recommendations to improve accuracy and farmer confidence in the survey results. Read the full document at AFBF USDA-NASS Working Group Report.

A new USDA report analyzing data from the 2017 Census of Agriculture Typology shows family farms comprise 96% of all U.S. farms, account for 87% of land in farms and have an 82% stake in the value of all agriculture sold. Data show that small family farms, those farms with a Gross Cash Farm Income (GCFI) of less than $350,000 per year, account for 88% of all U.S. farms, 46% of total land in farms and 19% of the value of all agricultural products sold. Large-scale family farms (GCFI of $1 million or more) make up less than 3% of all U.S. farms but produce 43% of the value of all agricultural products. Mid-size farms (GCFI between $350,000 and $999,999) are 5% of U.S. farms and produce 20% of the value of all agricultural products. Source: USDA National Agricultural Statistics Service (NASS); www.nass.gov

In a survey conducted among its weekly newsletter subscribers earlier this month, Brakke Consulting, Inc., found that most animal health companies had a positive outlook going into 2021.  Eighty-six (86) percent of respondents felt their business would increase by more than 5%, the sort of average industry growth rate occurring over the last five years. But 41% indicated their business would increase 10-19%, and a healthy 13% responded that they expect a business increase next year of 20% or more.

Merck Animal Health has announced that Bovilis Nasalgen 3-PMH is now available to veterinarians and cattle producers to protect beef and dairy cattle from five of the most common pneumonia-causing viral and bacterial pathogens: infectious bovine rhinotracheitis (IBR), bovine respiratory syncytial virus (BRSV), parainfluenza 3 (PI3), Mannheimia haemolytica and Pasteurella multocida. (company press release)

Nextgen Cattle Company and its partners this month launched operations at its 100,000-square-foot beef processing plant, Missouri Prime Beef Packers. The facility was previously operated as a pork processing plant under the name Moon Ridge Foods. The company said the facility is undergoing upgrades and modifications for both fed and non-fed beef cattle. Missouri Prime Beef Packers expects to process 500 head of cattle per day. 

The winner of the 2021 AFBF Farm Dog of the Year award is an Australian Shepherd owned by New York Farm Bureau member Sonja Galley. The American Farm Bureau Federation, with support from Nestlé Purina PetCare, recognized the Aussie at its Virtual Convention earlier this month. (Editor’s Note/Full Disclosure: Our family has enjoyed the companionship, intelligence and industriousness of our Aussie, Fitzpatrick, for over a dozen years. OooRah!)  

Farmer sentiment improved modestly in December as the Ag Economy Barometer rose to a reading of 174, up 7 points from November. December’s sentiment improvement still left the barometer 9 points lower than in October. The Purdue University Ag Economy Barometer is a nationwide measure of the health of the U.S. agricultural economy.

USDA’s Export Sales Report for the week ending January 7, 2021 showed strong numbers for corn and soybeans.Allendale commodities broker Greg McBride said it was a bullish week for grains with 1.437 million metric tons of corn and 1.234 million mt of soybeans shipped. “We are riding a nice wave here off of this USDA (WASDE) report,” McBride said.  Source:  Iowa Agribusiness Radio Network

2020 Farm equipment sales exceeded 2019 figures across a variety of categories, according to new data from the Association of Equipment Manufacturers. AEM’s Ag Tractor and Combine Report showed tractor sales for the year were up 17.7% over 2019; combine sales had a smaller increase, up 5.5%. “The year 2020 was difficult on a number of fronts. Despite uncertainty in the overall economy, the ag equipment market has been pretty strong,” Curt Blades, AEM’s senior vice president of ag services, said in a statement. “The growth we saw in farm tractors and combines was pleasant news — driven largely by smaller equipment.”   Source: Agri-Pulse Communications.

Did you know? Bill Gates, the fourth richest person in the world, (net worth of $121 billion, according to Forbes) has acquired 242,000 acres of farmland across the U.S., enough to make him the top private farmland owner in America. The Land Report says Gates has built up a massive farmland portfolio spanning 18 states. His largest holdings are in Louisiana (69,071 acres), Arkansas (47,927 acres) and Nebraska (20,588 acres). Additionally, he has a stake in 25,750 acres of transitional land on the west side of Phoenix, Arizona, which is being developed as a new suburb. The Land Report notes the acreage is held directly and through third-party entities by Cascade Investments, Gates’ personal investment vehicle. 

At the outset of 2021, the Missouri Department of Agriculture issued a list of key accomplishments in 2020:

• The Missouri General Assembly appropriated $20 million in federal CARES ACT funding for the Department to create the Missouri Meat and Poultry Processing Grant Program. 

• The Missouri Grown program sold and distributed more than 450 holiday gift boxes to more than 34 states across the country.

• The Missouri Industrial Hemp State Plan was approved by the USDA.

• The Missouri State Fair Youth Livestock Show saw a 12% increase in 4-H and FFA livestock entries.

• The State Milk Board inspected an additional 320 dairy farms.

• The Grain Inspection Services team designed and created a workstation shield, allowing their employees to continue working safely during the COVID-19 pandemic. 

• The Meat Inspection Team worked with processors throughout the state to accommodate flexible inspection schedules, helping ensure continuity of business.

• The Plant Industries division took in more than 1,200 reports of unsolicited mystery seeds in Missouri and helped coordinate with the USDA.

Major beef packer Cargill has announced a pair of upcoming facility shutdowns, but not due to the coronavirus pandemic. Cargill plans to temporarily idle its Dodge City, Kansas., and Schuyler, Nebraska., facilities for scheduled maintenance on refrigeration systems. Both plants will be shut down for about a week; the Dodge City maintenance is scheduled to begin Feb. 4, the work in Schuyler will start March 18. Source: Agri-Pulse Communications, January 27, 2021.

People

TechAccel LLC, a Kansas City- Missouri-based private venture development organization investing in scientific breakthroughs to help solve the global food crisis, has announced Tina Youngblood, Ph.D., has joined the company as Chief Finance & Administrative Officer. Dr. Youngblood comes to TechAccel from Pathfinder Health Innovations, a software startup in Kansas City, where she served as CEO. She has also served as CEO at Spencer Re and Cunningham Lindsey; earlier she spent 10 years in a variety of global leadership positions with Zurich Insurance Group, including as chief of staff to the chief administrative officer of the corporate center in Zurich, Switzerland, as well as CAO of the North American division in Chicago.  In addition to Dr. Youngblood’s leadership roles in finance, equity and risk management, she brings experience as a tenured associate professor of accounting at Miami University in Oxford, Ohio. She received undergraduate and master’s degrees from Tennessee Technological University and a Ph.D. in accounting with a minor in cognitive psychology from the University of Tennessee. 

Everett Hoekstra retired as president of Boehringer Ingelheim Animal Health USA and has been succeeded by Randolph Legg. Legg will remain head of the company’s U.S. commercial business while serving as president. The company has also appointed Helmut Finkler as head of Regional Bio Manufacturing Americas and global manufacturing science and technology. He will oversee vaccine-production sites in the Americas. Finkler most recently served as head of global bio operations in global operations animal health.

Kevin Knoth is the new communications director for Missouri U.S. Rep. Vicky Hartzler. Most recently Knoth served in North Carolina’s U.S. Rep. Mark Walker’s office as communications director. 

Trey Forsyth has joined Michael Torrey Associates as director of government affairs, after serving as a policy adviser to chief agricultural negotiator Gregg Doud at the Office of the U.S. Trade Representative.

Osborn Barr Paramore president Rhonda Ries has been accepted into the Forbes Agency Council, an invitation-only group for owners and executives of successful public relations, media strategy, creative and advertising agencies. She was selected by a review committee based on the depth and diversity of her experience. Criteria for acceptance include a track record of successfully impacting business growth. 

USDA has named individuals who will hold senior staff positions in Washington, D.C. during the Biden Administration: Katharine Ferguson is the new Chief of Staff in the Office of the Secretary. Most recently, Ferguson served as Associate Director of the Aspen Institute Community Strategies Group. Before joining the Aspen Institute, Ferguson served in the Obama Administration as Chief of Staff for the White House Domestic Policy Council and as Chief of Staff for Rural Development at USDA. Robert Bonnie will be Deputy Chief of Staff for Policy and Senior Advisor, Climate. Most recently Bonnie served as an executive in residence at the Nicholas Institute for Environmental Policy Solutions at Duke University. Previously, he served as Director of the Farm and Forests Carbon Solutions Initiative at the Bipartisan Policy Center, where worked to develop new initiatives to combat the climate crisis through agricultural innovation. Sara Bleich, PhD, is Senior Advisor. Previously, Bleich served as a Professor of Public Health Policy at the Harvard T.H. Chan School of Public Health. Her research centers on food insecurity, as well as racial injustice within the social safety net. 

The Republican Steering Committee has announced new GOP members on the House Agriculture Committee. They include Rep. Michelle Fischbach, R-Minn.; Rep. Tracey Mann, R-Kan.; Rep. Randy Feenstra, R-Iowa; Rep. Michael Cloud, R-Texas; Rep. Kat Cammack, R-Fla.; Rep. Barry Moore, R-Ala.; and Rep. Mary Miller, R-Ill. 

Kansas’ newly elected U.S. Congressman Tracey Mann has named additional members of his D.C. staff. Laura Schlapp is Mann’s communication director. She previously worked at the Department of Defense and most recently served as regional media director for Vice President Mike Pence. Katherine Thomas is the new deputy legislative director. She previously worked on agriculture issues for former Sen. Pat Roberts, both as a legislative assistant on the Senate Ag Committee and as senior agriculture policy adviser in his personal office.  Source: Agri-Pulse Communications, January 27, 2021.

Events

All Pork Producers, Industry enthusiasts and Allied industries are invited to attend The Missouri Pork EXPO scheduled for February 2-3 at Margaritaville at the Lake of the Ozarks.  The complete EXPO Brochure, registration and Trade Show information are available at  www.MoPork.com. There will be 102 Trade Show exhibitors. Governor Mike Parson will address attendees at the banquet on Feb 2, and political analyst, Jim Wiesemeyer, with Informa Economics, will speak at the Leadership Breakfast, Feb 3. Missouri State Senator Caleb Rowden will be receiving the Outstanding Legislator award and MU Professor, Tim Safranski will be receiving the prestigious Chairman’s Award.

An opportunity is available for college students wanting to attend the 2021 Cattle Industry Convention and NCBA Trade Show in Nashville, Tennessee, August 10-13, 2021.  A team of interns – vital to the success of the largest annual meeting in the U.S. beef cattle industry – will gain first-hand experience and be able to interact with leaders of every segment of the cattle and beef industry. Up to 18 interns will be selected for this opportunity. Interested students must complete a student internship application by April 15, 2021. More information at www.ncba.org. 

National Cattlemen’s Beef Association is hosting a two-day virtual event for cattlemen and women across the country to get updated on industry, trends and developments. The 2021 Cattle Industry Convention Winter Reboot, scheduled for February 23-24, is an opportunity to connect with NCBA and serves as a kickoff event for the Cattle Industry Convention & NCBA Trade Show that will take place August 10-12 in Nashville, Tenn., at the Gaylord Opryland Resort and Convention Center. Winter Reboot attendees will receive a sneak peek into plans for the Cattle Industry Convention and the Cattlemen’s College. Register for the Winter Reboot here.

The Kansas Department of Agriculture and K-State Research and Extension will offer virtual workshops February 16 - 19, 2021, to assist farmers’ market vendors and managers, as well as those wanting to sell food products directly to consumers. The workshop series includes three online Lunch and Learn sessions, followed by a half-day virtual workshop. Registration for the February virtual workshops is now open. The cost is $5 per participant. Register here.

The Animal Agriculture Alliance (AAA) has made available to the public its session recordings from the first-ever Virtual Stakeholders Summit. The 2020 Virtual Summit, themed “Primed & Prepared,” focused on equipping food and agriculture stakeholders with the tools needed to bridge the gap between farm and fork. Session recordings from the 2020 Virtual Summit are available here. Condensed overview of insights shared at the event is available here.

The Animal Agriculture Alliance has announced its 2021 Virtual Summit “Obstacles to Opportunities” will take place May 5-6. Registration for the 2021 Virtual Summit opens February 1. For more information about the Virtual Summit, visit animalagalliance.org/initiatives/stakeholders-summit/.

Kansas State Conservation Commission will hold its regular meeting on Monday, February 1, 2021, at 10:00 a.m. using a virtual attendance format. The agenda will include a discussion of long-term planning objectives as well as updates on funding and technical assistance opportunities. The SCC consists of five elected commissioners; two ex officio members representing the Kansas State University Agriculture Experiment Station and Cooperative Extension Service; and two appointed members representing the Kansas Department of Agriculture and the USDA’s Natural Resources Conservation Service. More information about the online meeting is available at KDA–DOC at 785-564-6620 or kda.doc@ks.gov.

At 2 p.m. Tuesday, Feb. 2, University of Missouri Extension will host a free webinar on climate change. MU Extension horticulture specialist Robert Balek and Thomas W. Blaine, Ph.D., associate extension professor at Ohio State University, will present an overview of climate change in Missouri and the economic impact it can have on agriculture. Also included in the presentation is a discussion of how the climate is currently changing in Missouri and what the next few decades are likely to bring, with a special focus on agriculture. Hosting the presentation on behalf of MU Extension Labor and Workforce Development are Amy Patillo and Matt Pezold. For more information, contact Ms. Patillo at patilloa@missouri.edu.  

Digging Deeper...

This photo, posted by the Council Bluffs (Iowa) Police Department in June 2019, shows Missouri River floodwaters looking north from the Interstate 29 interchange with I-680 north of Council Bluffs.

Council Bluffs (Iowa) Police Department

A year ago, in the December 2019 edition of the Council newsletter, the focus of the Digging Deeper column was the U.S. Army Corps of Engineers’ lack of emphasis on flood control in the omnibus Endangered Species Act of 1973 that over the years shifted priorities away from mitigating often ruinous flooding to protecting endangered wildlife. At the same time a year ago, Missouri congressional representatives and senators were working on legislation – the omnibus Water Resource Development Act that is reviewed biennially – that would ensure farmers are participants in any USACE decision-making that directly impacts their farms and communities. Specifically, U.S. Representative Sam Graves’ House Act makes flood control the overarching and number one priority in the Corps’ Master Manual. 

By Dennis McLaughlin, McLaughlin Writers LLC.

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Missouri River Regions Looking At Improved Flood Control

Last month, more than a year after farms and communities along the Missouri River were finally recovering from disastrous spring flooding in 2019, it seems that earnest action has been taken to prevent or at least mitigate flood damage. Authorization of the Water Resources Development Act (WRDA) of 2020 – introduced by U.S. Representative Sam Graves, Ranking Member of the House Committee on Transportation and Infrastructure – is critical for flood control, navigation, ports, locks, dams and other water resources infrastructure.  

“Ensuring that timely flood control and navigation improvements continue to occur is a centerpiece of this bill,” said Ranking Member Graves.  “Lives and livelihoods depend on the important reforms in WRDA and I am proud to cosponsor this bipartisan bill so we can help reduce the disastrous flooding we’ve seen over the years and improve the navigability of our rivers. This bill is the product of a bipartisan effort and it’s the perfect example of the way things should work around here.”

The final bill contains many important provisions to North Missouri: 

• Expanding work on a Lower Missouri River Basin Flood Risk and Resiliency Plan

• Expedited completion of maintenance

• Repair activities for Federally operated and maintained levee systems in the Lower Missouri River Basin,

• Changes to the non-federal levee program to enhance flood protection, further prohibition of Interception-Rearing Complex’s (IRC’s), 

• Changes to the Inland Waterways Trust Fund cost-share which would help make repairs and upgrades to locks and dams on the Mississippi River,

• Continuation of work on the Upper Mississippi River Comprehensive Plan, along with several other provisions critical to flood control and navigation. 

Some Work Underway

According to USACE’s Omaha District, significant strides have been made in repairing over 350 miles of levees across the Lower Missouri River Basin that were damaged following the historic floods of 2019.  But a heightened level of flood risk remains for the communities and landowners behind these damaged levee systems as repair efforts remain ongoing. This risk is higher than it was prior to the 2019 flood because the levees were compromised, said a district spokesperson. “Until all of component of the system, such as seepage berms and relief wells are repaired, the system does not fully provide the same level of flood risk reduction as it did in its pre-flood condition.”

A lot of work has been done by the levee sponsors, other stakeholders, and USACE team to repair the levee systems that were decimated by the 2019 flooding. However, there is still a significant amount of work to be done. “The levees in their current conditions do not offer the same level of risk reduction as they did prior to the 2019 floods,” warned Matt Krajewski, Director of Emergency Operations, USACE-Omaha. “There is still work to be done up and down the system to restore the levees to their full protection level. I urge everyone to remain vigilant this upcoming flood season.”

To date, USACE has allocated nearly $500 million toward levee repair construction contracts, and more than $375 million of the work has been accomplished, including 15 projects that have been substantially completed, 12 that are currently under active construction and five projects that are still working through the design process. All levee systems ae expected to be at full height by March 1, 2021; and repairs on various other components of the levee systems will continue throughout much of the 2021 construction season. “Until these repairs can be completed the USACE, levee sponsor and local communities need to remain vigilant,” USACE Omaha said. 

The Omaha District remains focused on ensuring the safety of citizens and remain positioned to provide flood fight assistance to state, local and tribal government agencies, as appropriate. It will also continue working with other federal partners to communicate the conditions on the river systems as the 2021 run-off season gets underway.  When severe weather and/or heavy precipitation is forecast, the public is encouraged to keep in contact with their local emergency managers for the latest conditions in their area.

“WRDA 2020 makes it a priority to secure, upgrade and improve our non-federal levees,” said Rep. Graves in a statement.  “After all, these levees protect countless small towns, and every levee is important to our flood control efforts because it only takes one weak link for things to turn south in a hurry.”

It will help upgrade locks and dams on the Mississippi River that are so critical to shipping our products across the country, he noted. The legislation builds on existing efforts to revamp flood control plans on the Missouri and Mississippi rivers and speeds up the repair of federal levees damaged in 2019. For those areas that have seen repetitive flooding, Rep. Graves added, there will be new opportunities to upgrade infrastructure to reduce the risk of future flooding.

“This bill doesn’t fix everything, but WRDA 2020 does place a focus on improving flood control and navigation, which is critical. People’s lives and livelihoods are the top priority in my book. Our laws, regulations, and the management of our rivers should reflect that.” 

Source: U.S. Army Corps of Engineers, Omaha District; Omaha District’s System Restoration web page.

Flood Prognosis 2021

The risk for flooding along the Missouri River appears lower than normal headed into the 2021 flood season, according to officials with the U.S. Army Corps of Engineers and the National Weather Service. The ground remains dry across most of the region and snowpack levels are generally below average, says the Corps and the NWS. But they caution it is still early in the year, and conditions could change. Current data indicate 2021 will be drier with only about 90% of the normal amount of water expected to flow down the Missouri.

Despite the vagaries of weather, USACE has solid engineering data backing up its optimism about a floodless spring:

• Full flood control capacity on the Missouri River Mainstem Reservoir System is available for the 2021 runoff season.

• "All 2020 flood water stored in the annual flood control zone has been evacuated as of Dec. 21, 2020" said John Remus, chief of the USACE Missouri River Basin Water Management Division.

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Key Change In WRDA 

The Water Resources Development Act of 2020 includes major changes in the way projects are funded, which could accelerate reconstruction of locks and dams and other waterway projects, Agri-Pulse reported in December. Prior to the new legislation, half the funding for projects came from the Inland Waterways Trust Fund, which depends on revenue from barge fuel taxes. The other half comes from the federal Treasury. Under the new bill the Waterways Trust Fund contribution would drop to 35%, while the Treasury would pick up the tab for 65%. “The change would free up roughly $100 million a year in general funds for inland waterway construction projects,” wrote Agri-Pulse(December 16, 2020). 

Changing the cost-share has been a major priority for the Waterways Council, which includes agricultural shippers. Waterways Council President Tracy Zea said the cost-share requirement hasn't been changed since the 1986 water projects bill. “You’re looking at funding three to four projects to completion, additional, with that funding,” he told Agri-Pulse. Zea said the change will expedite the construction timeline of lock and dam infrastructure, including the upper Mississippi River project known as the Navigation and Ecosystem Sustainability Program, which was authorized in 2007. 

The water projects bill also authorizes roughly $9.9 billion in federal funds for 46 reports by the Army Corps of Engineers on navigation, flood risk management, hurricane and storm damage risk reduction, flood risk management, ecosystem restoration and water supply projects. Mike Steenhoek, executive director of the Soy Transportation Coalition, agreed additional funding would expedite work on waterway infrastructure projects, but noted there is always a concern with attaching a “widely bipartisan” bill to a massive omnibus bill that could get hung up on disagreements. “Any time it gets attached to something more controversial it has the opportunity to sink the entire ship and all of those passengers that are on board,” he said.

Source: Agri-Pulse Communications, December 16, 2020.

Digging Deeper...

Despite the upheaval COVID-19 dumped on every sector of the U.S. economy and every aspect of our society and culture, it seems the ag industry overall is poised to emerge from 2020 with renewed optimism and momentum. “After declining farm financial outlooks last spring,” noted the University of Missouri’s Food and Agricultural Policy Research Institute earlier this month, “farmer sentiments are skyrocketing.” 

Dennis McLaughlin, McLaughlin Writers LLC, with Ernie Verslues, MFA, Inc., president and CEO; Matt Teagarden, CEO, Kansas Livestock Association; Mark E. Stewart, Ed.D., president and CEO, Agriculture Future of America 

In A Year Of Disruption, Agriculture Shows Its Grit, Spunk, and Value 

When the U.S. economy took a devastating nosedive caused by the COVID-19 pandemic, the agriculture industry rose to new heights in the eyes of Americans. Gallup’s annual assessment of the country’s favorability leanings toward 25 business and industry sectors showed farmers and ranchers were top guns.  Farming and agriculture, already among the highest-rated industries over the years, stepped up to the top position on the medals stand, as Number One with a 69% positive rating according to Gallup.  The grocery industry was silver medalist, likely because of its quick recovery from the pandemic’s initial attack on inventories and supply chains. Restaurant, computer and retail industries, respectively, occupied the other positions in the top five. (More information available at Gallup Poll Social Series:  Americans' Views of U.S. Business and Industry Sectors, 2020. For more information about industry favorability click here.)

At the risk of coming off Pollyannaish or insensitive to the more than 1.5 million deaths globally from COVID-19, it still can be said that agriculture carried itself nobly, pragmatically and effectively during the pandemic. As Americans’ initial fears for their health and safety gave way to day-to-day concerns about putting food on the table, agriculture, food and transportation industries rose to the occasion.

Moderating a webinar discussion on the food supply chain hosted by the Agricultural Business Council of Kansas City in April, Tom Brand, executive director, National Association of Farm Broadcasting, said  consumer jitters over shortages and higher prices for groceries and home goods was misplaced. “Demand is the issue, not supply.” The economic fundamentals of production, inventory, transportation and liquidity were intact across all sectors of the food industry. And remained so as the pandemic crisis deepened.

Speaking to Council members in July, Dr. Dan Thomson, chair of Iowa State University’s Department of Animal Science, stressed that animal agriculture was an essential business. He made a point that COVID-19 forced a streamlining of most animal ag operations and processes, and the ag industry stood up to the challenge.  Distributors and grocery store employees and managers also earned their stripes as essential workers, said Dr. Thomson.

Things Looked Good……

……Until they didn’t. At the outset of 2020 optimism reigned in the ag industry, especially over trade, said Matt Teagarden, CEO, Kansas Livestock Association. Japan had lowered tariffs on beef imports from the U.S. to a level where American protein producers could compete with Australia and other beef producing nations.  In October 2019, China and the U.S. had reached an agreement to implement the first phase of a renegotiated trade agreement. Meat prices at home were higher, also. “People buy beef when the economy is good,” Teagarden noted.

As COVID-19 cases increased, business, education, social organizations and institutions went into lockdown. March’s ‘turn-for-the-worse’ was worse than anticipated. The effect on ag industry plans and operations, as well on the economy in general, was drastic, said Teagarden. “The losses were steep and severe.”  What had been a dynamic economy that was challenging business managers to be nimble enough to keep up with all the fast moving parts, now became, as Teagarden describes it, a challenge to see how quickly the economy could recover.

But first most American businesses readily switched from a focus on first or second quarter financial performance to worker and plant safety. In a March communique to its employees, customers, vendors and distributors, MFA Incorporated stated its first concern was for the security and well-being of its employees and their families and communities.  “Although farmers and the rural communities we live in have a long history of being resilient during such times,” wrote Ernie Verslues, MFA’s president and CEO, last March, “the nature of the coronavirus and how easily it can spread is a very real and serious concern for everyone.”

At that April Council meeting, Dennis Rodenbaugh, executive vice president, Dairy Farmers of America, said the immediate goal of his organization at the outbreak of the Covid-19 pandemic was to create a strategy guaranteeing health and economic security for its member dairy farmers, and opportunity as the country emerges from the crisis. Since the dairy co-op was dubbed an essential business and would remain operational, Rodenbaugh explained that within 48 hours of nation-wide lockdowns, 1,200 of DFA’s 6,000 employees were sent home to work remotely. Farmers, truck drivers and other staffers were provided with PPE gear and sanitizers so they could carry on as safely as possible. “Unfortunately, cows can’t be turned off,” he rued, “and gallons of milk had to be dumped.” Going forward, DFA is implementing and devising as many tools as possible to stabilize the market. To that note, KLA’s Teagarden adds that KLA dairy members are presently operating in a ‘strong’ space.

Shutting down operations was not an option, said Verslues.  Even as the pandemic-caused slowdowns in production and created a backlog of farm supplies, at the end of the day, he said, “We delivered on our value promise” – which meant the  Columbia, Missouri-based regional farm supply and marketing cooperative continued to provide its 45,000 farmer members with quality products and services, as well as wholesale products to agricultural companies. 

The initial impact of COVID-19 disrupted MFA, as it did everyone. But Verslues explained his team adopted a proactive strategy to face the situation head-on. Despite some early, temporary workforce curtailment, MFA was fully staffed onsite and remote by June.  Looking back, Verslues recalled that other obstacles were cropping up in fall 2019 before COVID-19, such as reduced planting in the wake of catastrophic flooding, and prevent planting policy and initiatives. So MFA was already reviewing its processes to react to market and natural disruptors.  “We are always reviewing our processes and contigencies,” Verslues said.

Seaboard Foods’ Kevin Smith, vice president, sales and marketing, said his company had no real playbook for the pandemic or the havoc it raised on an hourly basis. But Seaboard rapidly rolled out a plan focused first and foremost on the well-being of its employees, customers and “society in general.” The blueprint for survival called for curtailing unnecessary travel, customer visits and aligning its safety and business guidelines with CDC policies and recommendations. Seaboard also donated over 30%  of its food products to organizations providing nutritional safety nets for people in need nationally and globally.

Emerging Innovation

In detailing other steps they were taking to mitigate Covid-19 damage to the U.S. economy, all the speakers (Rodenbaugh, Smith and Nick Ebert of Sysco) at the Council’s April meeting said their companies were making special appeals to grocery retailers and food service restaurants and drive-thru outlets.  All three disclosed that part of their outreach included an appeal to retailers to review “limited quantity” purchase policies – underscoring the idea that producers had product, and the issue was not supply, but demand.

Rodenbaugh described a DFA campaign to encourage food service companies to increase use of dairy ingredients by an ounce or two in their portions of ice cream, milk shakes and cheese toppings as way to decrease dairy farmer raw product inventory, and reduce dumping. Rodenbaugh stressed that dealing with retail grocers required a respectful approach in a stressful time. The key, he said, was “to let store managers make stocking decisions while encouraging them to keep up with demand and manage their labor to accomplish that end.”  The supply is available, he emphasized. 

As food service operations were closed and allowed only to serve take-out fare, Kansas City-based Sysco realized its styrofoam containers were not suitable for diners wanting to carry-out traditional full-course family meals.  Nick Ebert, vice president of sales for Sysco, said his company came up with a number of container designs using better materials. Sysco is expanding its food service customer model in the future to reach out to retailer grocers like Albertsons and Kroger. 

The critical lesson from this Covid-19 pandemic, said Seaboard’s Smith, is “as we move toward normalcy, we have to plan for other Covids, and be prepared to pay for them with liquidity, strong P & L’s and strengthened supply chains.” He added it is not easy to predict pandemic outbreaks, but “the economy can be financially prepared using technology and applying what we’ve learned from this one.” 

Or to put it another way:  risk management has to be near the top of the list of any ag enterprise’s strategic plan. KLA is making sure it understands how each of its members does business. “Our members operate their businesses differently, and setting guidelines for risk management can’t necessarily be universal,” said Teagarden, adding that it is difficult to anticipate how to prepare them for natural, financial or biological disasters.”

Going Forward

Farm income is recovering from last spring’s coronavirus-driven declines, say surveys conducted by Kansas City Federal Reserve Bank. “An influx of CFAP government payments and higher prices for agricultural commodities provided greater support for farm finances in the third quarter and seemed to limit demand for financing,” said Kansas City Fed economists Cortney Cowley and Ty Kreitman.

“Although farm income generally remained low, rates of loan repayment stabilized and farmland real estate markets remained strong,” they wrote “The third quarter was the first time in seven years that bankers reported a decline in the credit needs of farm borrowers in all districts.”

Pat Westhoff, director of the University of Missouri’s Food and Agricultural Policy Research Institute recently noted: “This has been a phenomenal year with all sorts of market developments [appearing] every month; we think we've got things figured out; and then the next month, something new happens.”  But after declining farm financial outlooks this spring, farmer sentiments are now climbing, according to Purdue University’s Ag Economic Barometer. It’s director Jim Mintert said, “Since bottoming out in April at a rating of 96, it has been rising pretty consistently, and [in October] it set a new record high at a reading of 183.” 

Agriculture’s situation still is not business as usual, but KLA’s Matt Teagarden suggests the light at the end of the tunnel is getting brighter. The rapid development and introduction of COVID-19 vaccines could lead to a “relatively quick recovery of protein demand.” 

Source: Chuck Abbot, Successful Farming magazine;  Columbia Daily Tribune, Misouri;  Agricultural Business Council of Kansas City, April, 2020, Newsletter; University of Missouri’s Food and Agricultural Policy Research Institute 

2020: From A Different Perspective

From Mark Stewart, President and CEO, AFA

While ag businesses, suppliers, distributors and transporters were hustling to address demand pressures and shore up weak points in their supply chain, another agriculture group of future agricultural industry leaders were exposed to what might turn out to be one of the more unique learning opportunities it will encounter. 

Agriculture Future of America, based in Kansas City, Missouri, provides first class leader and career development experiences for highly motivated young men and women.  AFA programs are built through  partnerships with organizations, individuals, universities, communities and foundations. But just like the rest of the world, AFA had its feet put to the fire when COVID-19 disrupted normal routines and challenged it to adjust to conditions it never anticipated. 

“We did not have any plans to roll out new programs or expand, but we did have plans to introduce new strategies and prepare for our 25th Anniversary,” said Mark Stewart, Ed. D., president and CEO of Agriculture Future of America.  He also noted AFA planned to expand programs to address equality and inclusion principles, and introduce them into AFA’s staff training and development syllabus.

But first things first. AFA immediately adjusted its operations model to get online and go virtual.  “We were able to offer some webinar-style discussions about careers and topical issues for students through our partnership with Merck Animal Health.,” Stewart said. But in July, AFA conducted its first virtual presentations when it went virtual with its Crop Science Institute curriculum. Preparations to join the digital/cyber medium included selecting online program platform technology to house events as well as finding creative ways to engage industry partners with students, he explained. 

With what AFA learned from such events, its staff chose a different online platform to host its Leaders Conference event in November. “We tweaked some processes with our application and selection to ease the experience,” Stewart said, “and we thought creatively about program design since it would be all virtual.”  Ultimately, AFA was able to carry out most of its programs and continue its operations despite the pandemic.  

Lessons Learned 

AFA has seen two silver linings emanate from the pandemic. “One,” Stewart pointed out, “we knew in the  future not all of our of best talent wouldn’t reside in Kansas City.” He added that it wouldn’t make sense for all of the AFA staff to be located together in one place. “Second, we had talked for years about a virtual add-on or complementary element to our in-person experiences.”  Stewart elaborated: “The year 2020 was a catalyst in moving these discussions forward faster, and for that we have much to be grateful for as it has drastically changed our outlook on the future.”  What’s more, Stewart said, AFA is shifting its mindset from weathering the storm to looking for opportunity in it. “We’ve realized just how much we can do. We forged ahead with some critical hires, we went full speed into our next strategic plan with the mindset that this was the greatest opportunity for us to think differently and innovate. Ultimately, we have learned that even in the midst of great disruption, uncertainty or fear, there is great opportunity if met with optimism.”

Coronavirus Takes Its Toll on Hospitality Industry

At the Council’s December webinar and virtual annual meeting,  Mary Holland, owner/operator of Hereford House Restaurants and Pierpont’s at Union Station, said her industry was already prepared for COVID-mandated quarantines, lockdowns and closures that heavily targeted restaurant and bar establishments. Additional sanitation requirements and stricter oversight are nothing new to her fellow restaurateurs.   “Our industry is already held to high standards,” said Holland. Phil Strnad, general manager of the Hilton President Hotel for the last 13 years, reiterated, “People don’t understand how much we get inspected for cleanliness.” But Holland noted her dining rooms and kitchens upgraded their sanitation products and systems anyway.  

For the most part, the pandemic has not made things easy for the hospitality industry. Jason Fulvi, president of Visit KC, reported some of the bleak statistics:

• 167 events were canceled this year representing 300,766 room nights of lost business.

• Downtown room occupancy on March 11, 2020 was 71.5%; a week later, March 18, the occupancy rate was 8.8%.

But there was some good news. The rate had recovered somewhat to 22.5% over Thanksgiving and 45% of corporate travelers are considering resuming domestic business travel in the near future. Strnad said no one had any idea how bad the pandemic was going to be. He added, “We need to get people traveling and back into hotels again; get them comfortable.” The stakes for doing so are high for the regional tourism industry. Tourism has a $5.6 billion economic impact on the area annually. It supports 48,350 jobs. Kansas City hosts 25.2 million conventioneers and leisure visitors a year, and almost half (47%) stay overnight.

Fulvi suggested road trips and travel closer to home will likely drive much of the hospitality recovery as COVID-19 recedes. Surveys by 2020 MMGY Travel Intelligence indicate 68% of travelers feel safer in their own car; 45% are likely to travel by car after COVID-19; 43% will travel to destinations close to home. Trips of 300 miles one way appear to the preferred distance for Americans these days. 

Latest News & Updates in KC Agriculture - December 2020

Developments

Major League Baseball announced that it was “correcting a longtime oversight in the game’s history” by elevating the Negro Leagues from 1920 through 1948 to major-league status, a move that recognizes the sport’s long-excluded Black pioneers and immediately rewrites baseball’s record books. Roughly 3,400 Black and Latino players from seven distinct leagues, who were barred from joining the segregated National and American Leagues, will now be classified as “major-leaguers,” alongside white stars of the era, the Wall Street Journal reported. All statistics and records for those players will become part of MLB’s official history. Bob Kendrick, president of the Negro Leagues Baseball Museum in Kansas City, called the move “historical validation for those who had been shunned from the major leagues and had the foresight and courage to create their own league that helped change the game and our country, too.” Source: Wall Street Journal, December 17, 2020.

After 40 years of public service, U.S. Senator Pat Roberts delivered his final speech on the Senate floor, December 10. His office highlighted comments from his address below. (The full transcript is available here.)

• “I have had the honor and privilege of representing Kansans for 16 years in the House and 24 in the Senate.

• “I have held six gavels in the House and Senate, and that, in and of itself, might be a record. But, it’s what happened during my tenures as chairman that I believe have had the most lasting impacts. It’s not just having the gavel – it’s what you do with it.

• “To be a member of this United States Senate is a true privilege. A working family, it is the greatest deliberative body in the world. But, today, as compared to when I first came to the Senate, it’s the deliberative part that gives me great concern. I lament the loss of comity, the ability to work together, or just to get along. Sadly, gridlock appears to be the new normal. However, it does not have to be.

• “I am very proud that I have had the privilege of being chairman of a committee that does get along, and we do get things done – the Senate Agriculture Committee. And, it really is not that hard.

• “Here, in the Senate, only we can decide what our new normal is, and we ought to get to know one another. We don’t have to let the apparent gravitational pull of more and more politics in pursuit of power to change what our founders gave us – the creation of a nation of liberty and freedom, the envy of the world – and to literally move the United States Senate from the moorings of its historic and great past to simply be a rubber stamp for radical change.

• “Let us once again become a body of respect, humility, cooperation, achievement and friendship. That can and should be our new normal.

• “The entire country could use a little bit of what we say in Kansas, ‘Ad astra per aspera’ – to the stars through difficulties.”

The Water Resources Development Act of 2020 (WRDA) (S. 1811) was approved by the House of Representatives. S.1811 represents an agreement between House and Senate committees on final WRDA language, based in part on H.R. 7575, which passed the House by voice vote in July 2020 and was introduced by House Committee on Transportation and Infrastructure Ranking Member, U.S. Rep. Sam Graves and his colleagues on the Committee. The bill is critical for flood control, navigation, ports, locks, dams, and other water resources infrastructure: 

• “North Missouri’s inland waterways are dependent on the Water Resources Development Act (WRDA). Ensuring that timely flood control and navigation improvements continue to occur is a centerpiece of this bill,” said Ranking Member Graves.  “Lives and livelihoods depend on the important reforms in WRDA and I am proud to cosponsor this bipartisan bill so we can help reduce the disastrous flooding we’ve seen over the years and improve the navigability of our rivers. This bill is the product of a bipartisan effort and it’s the perfect example of the way things should work around here.”

• The final bill contains many important provisions to North Missouri including expanding work on a Lower Missouri River Basin Flood Risk and Resiliency Plan, expedited completion of maintenance and repair activities for Federally operated and maintained levee systems in the Lower Missouri River Basin, changes to the PL 84-99 non-federal levee program to enhance flood protection, further prohibition of Interception-Rearing Complex’s (IRC’s), changes to the Inland Waterways Trust Fund cost-share which would help make repairs and upgrades to locks and dams on the Mississippi River, and continuation of work on the Upper Mississippi River Comprehensive Plan, along with several other provisions critical to flood control and navigation. 

Boehringer Ingelheim will contribute $800,000 over the next five years to the Kansas State University Foundation to support interaction and collaboration between the company and veterinary students. The university said the collaboration will create opportunities for the company’s employees to train and present to students and allow for additional professional development and learning initiatives between Boehringer Ingelheim and the university. “The Kansas City Animal Health Corridor and BI share a history dating back more than 100 years,” said Randolph Legg, BI’s head of the U.S. commercial business. 

Kansas City-based American Hereford Association reports that producers, brand partners and customers celebrated 25 years of the Certified Hereford Beef® (CHB) brand in 2020. Among the world’s great beef brands, Certified Hereford Beef is found in the nation’s best restaurants and retail outlets. “The Certified Hereford Beef team is proud to celebrate a brand that continues to evolve and accommodate the demands of consumers worldwide,” says CHB President and CEO Amari Seiferman. With 7 million head harvested and a total of 900 million pounds sold, the brand continues to provide a growing opportunity for rural America and a safe and wholesome product for families everywhere.

Costco announced it will ban the use of cages for chickens in its global egg supply, saying it’s the first U.S. retailer to issue a global policy on the confinement of animals in its supply chain. “We are in the process of making that transition to cage-free eggs,” said Josh Dahmen, financial planning and investor relations director for Costco. 

U.S. farm profit this year will rise to a seven-year high after government aid payments doubled during the pandemic and trade disputes, according to USDA. Net farm income this year will jump 43% to $119.6 billion, the highest inflation-adjusted level since 2013, USDA said. The latest data show the increasing dependence of growers on government assistance after three years of trade and COVID-19 aid on top of traditional subsidies. Farmers face a less certain outlook next year if the Biden administration adjusts payments. Direct government aid, accounting for 39% of net farm income, rose to a record $36.5 billion from $22.4 billion last year. The forecast by USDA’s Economic Research Service marked a $16.9 billion rise in net income from a September projection. 

Comments from speakers at the conclusion of the Agricultural Retailers Association’s 2020 Conference and Expo, December 2, included these prognostications: 

• Scott Rawlins, of Kansas City, Kansas-based ag product distributor Wilber-Ellis Company, said “Waters of the U.S. returns in some fashion; we can expect TPP to come back; [we] should get used to hearing the term environmental justice; [we should] watch for nutrition programs and green payments; and [we] expect a more active regulatory [environment].”

• Growmark’s Chuck Spencer encourages ag retailers to see the opportunities in working with politicians and political appointees who may be considered to have a more urban rather than rural background. 

Kansas City-Kansas-based Wilbur-Ellis Company LLC has acquired the assets of Probe Schedule LLC, Aurora, Colorado, to provide its customers with a technologically innovative irrigation water management system. Probe Schedule is a leading irrigation management company backed by 24 years of continual research and development efforts. Its irrigation water management (IWM) software receives and collects data from in-field hardware devices and weather stations to calculate accurate crop water usage and soil moisture, providing growers with specialized irrigation schedules. 

Events

The Missouri Department of Agriculture is offering 30 high school students representing 4-H clubs and FFA chapters, as well as farm families, throughout Missouri the opportunity to explore careers in agriculture through the 2021 Missouri Agribusiness Academy. It is a competitive program for sophomores interested in pursuing agriculture-related degrees and careers. The students selected will have a yearlong opportunity to learn about the unique opportunities for careers in the Kansas City area, volunteer at the Missouri State Fair and learn more about the agriculture industry in Jefferson City. Since 1988, MAbA has graduated 990 students through a competitive application and interview process. The first leg of the 2021 MAbA will be held June 7-11, and marks the program’s 34th year. Students interested in participating must submit an application by Feb. 1, 2021. More information available here.

People

U.S. Rep David Scott (D-Georgia) will become the first Georgian and the first African American to lead the U.S. House Agriculture Committee. The House Democratic Caucus ratified the choice of Scott to lead the panel. He represents a suburban district south and west of Atlanta. The committee oversees the USDA as well as food stamps, school meals and soil and water conservation. Rep. Scott says he wants to focus on climate change’s threat to the nation’s food supply and other issues. He replaces Rep. Collin Peterson, a Minnesota Democrat who lost his bid for reelection. 

The Missouri Farm Bureau selected Garrett Hawkins, 40, as its 15th president Sunday, making him one of the youngest Farm Bureau presidents in the nation and the youngest president ever to lead Missouri's largest farm organization. He will start serving his two-year term immediately. 

Seth Meyer will be returning to USDA to assume the position of chief economist. Meyer takes the place of Rob Johansson, who has held the position since 2015 and plans to depart USDA at the end of January and accept a position as the associate director of economics and policy analysis at the American Sugar Alliance. Meyer comes from the University of Missouri’s Food and Agricultural Policy Research Institute, where he served as an associate director and research professor. 

Congressman-elect for Kansas’ 1st Congressional District Tracey Mann has announced his senior staff, starting in their official capacity on Jan. 3. His chief of staff will be Brandon Harder. He most recently served as the director of government relations and communications at the Farmers' Rice Cooperative. He also served as Sen. Jerry Moran’s agriculture and trade adviser. Reid Petty will serve as Mann’s district director. Petty most recently worked as Moran's Southwest Kansas District Director. Source: Agri-Pulse Communications.

Governor Laura Kelly announced her intention to appoint David Toland, Secretary for the Kansas Department of Commerce, to become her Lieutenant Governor when current Lieutenant Governor Lynn Rogers vacates the position in January. “Replacing Lynn Rogers is no small task, but of all the candidates I considered, David is ready to hit the ground running in his new role,” Governor Laura Kelly said. “I have been impressed throughout his tenure as Commerce Secretary by his enthusiasm, energy, and commitment to economic development and business recruitment. I look forward to our continued partnership as he takes on his new responsibilities in the Lieutenant Governor’s office.”

The National Cattlemen’s Beef Association recognized U.S. Senator and Chairman of the Senate Agriculture, Nutrition and Forestry Committee, Pat Roberts (R-Kansas) with the Capitol Hill Top Hand Award in honor of his long career fighting for cattle producers and rural communities in our nation’s capital. NCBA President Marty Smith said, “It is my honor to give Chairman Roberts the first Top Hand award and I personally thank him for all that he has done for every U.S. cattle producer.” The Capitol Hill Top Hand Award, in its inaugural year, is given to one elected official annually, who goes above and beyond the call of duty to represent cattle producers nationwide.

2020 Wrap-Up Video

Ag Business Group Re-Elects Krissek, Johansen as 2021 Leaders

(L to R) Greg Krissek, Dustin Johansen

December 10, 2020, KANSAS CITY, MO: Greg Krissek, CEO of the Kansas Corn Growers Association and Kansas Corn Commission was re-elected chairman of the Agricultural Business Council of Kansas City at the group’s annual meeting held December 10. Dustin Johansen, Vice President, Osborn Barr Paramore, was re-elected vice chairman of the Council.

Krissek, a native of Kansas City, Kansas, has over 30 years’ experience working with agriculture and ethanol sectors. Prior to being named CEO of Kansas Corn in 2014, his previous stints included executive positions with Kansas Department of Agriculture, ICM, Inc., and Kennedy and Coe. He earned his law degree and MBA from the University of Denver. He earned his bachelor’s degree from Rockhurst University in Kansas City.

Johansen manages the Kansas City office of Osborn Barr Paramore and leads OBP’s animal agriculture and equipment practices. Previously he spent nearly 20 years at Caterpillar in sales and marketing. Johansen was raised on a farm in central Missouri and is a graduate of the University of Missouri.

The Council’s Board of Directors is composed of 20 persons who serve staggered two-year terms. Those elected to the Board for a two-year term commencing January 1, 2021 were:

• Shonda Atwater, Metropolitan Community College

• Alan Barkema, Apical Economics

• Eric Bohl, Missouri Farm Bureau

• Bill Ford, Lathrop GPM

• JJ Jones, Roots & Legacies Consulting

• Debbie Kirchhoff, Kansas State University - Olathe

• Jackie Klippenstein, Dairy Farmers of America

• Stephanie Siders, CC Capitol Advisors

• Brad Tolbert, John Deere

• Bill Vaughn, Merck Animal Health

• Kelly Farrell, Farrell Growth Group

Krissek extended his thanks to several outgoing leaders who have played an influential role in the Council’s activities through the years.  Those include long-time board members Gary Anderson, Dennis Bode, Ron Seeber, and Alan Wessler.

Members of the Agricultural Business Council include over 350 individuals associated with the food and agribusiness sector.  Agribusiness continues to be one of the largest business sectors in the Kansas City region, accounting for 8 percent of the workforce and contributing 22 percent of the gross regional product.  For further information:  Bob Petersen (816) 810-5000; www.agbizkc.com

Digging Deeper... The Loss of a Giant

Earlier this month, agriculture – locally, nationally and globally – lost a giant when Dr. Barry Flinchbaugh passed away.  For more than half a century the Kansas State University agricultural economist influenced the formation of U.S. farm policy. In 2014, Dr. Flinchbaugh received the Agricultural Business Council’s Jay B. Dillingham Award for Agricultural Leadership and Excellence. He worked on every Farm Bill since 1976, and it has been noted he met every American president since Harry Truman. In this edition of Digging Deeper, we are featuring tributes to Dr. Flinchbaugh from Sara Wyant, founder of Agri-Pulse Communications and its chief editor, and U.S. Senator Jerry Moran, who said, “There may be no Kansan whose company I enjoyed more.” But before getting to their remembrances, it might be nice and surely fun to recall the directness, wit and insight Dr. Flinchbaugh provided whenever he spoke. So here, then, is a Sampler of Flinchbaughian Rhetoric (excerpted from his keynote speech to a Kansas Commodity Classic audience in January 2018). Dennis McLaughlin, McLaughlin Writers LLC

• “We’ve got a solid Kansas delegation with Sen. Moran and Sen. Roberts, and with Dr. Marshall we have a member on the House Ag Committee again….. If the other 49 states had the kind of delegation Kansas does, there’d be a lot fewer problems. But unfortunately, they don’t.”

• “There is a big lesson that needs to be learned or re-learned [regarding trade]. This is a global economy and we aren’t going back. In 1960, about 9% of our GDP came from trade. In 2016, it was 24%.

• “We’ve been through the nonsense of having congressmen fall for the idea of separating the two [regarding food stamps]…..If you take food stamps out of the bill, then that’s the last Farm Bill you’ll see. Urban congressmen don’t have any reason to support crop insurance without a nutrition program. The two have got to stay together.”

• “You’ve got people  saying if food stamp recipients need to be drug-tested, then so do farmers getting subsidies for crop insurance……It’s a no-win position.”

• “TPP was probably the most lucrative bill for farmers in my lifetime. It put the U.S. in a strong, countervailing position of power to China. It put two powers in the region instead of one bully. Rejecting it played right into China’s hands. We have to get across the point that multi-lateral agreements are far superior to bi-lateral agreements for farmers.”

• “At the end of the day, the question is, if you don’t have exports, you need to cut ag by 25%. Which 25% do you want to put out of business?”

• “You get all this talk about H2A workers, but we don’t need seasonal workers. Cows have to be milked 365 days a year. We need permanent workers.”

• “The reality of the last several years has been that net migration is going south, wages are going up and labor shortages are becoming common.”

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An Economist Who Influenced Decades of U.S. Farm Policy,

And Thousands of Students and Farm Leaders

Sara Wyant, Founder and Editor-in-Chief, Agri-Pulse Communications

There are a lot of different and talented agricultural economists in this country. But Dr. Flinchbaugh was unique in his style, his colorful stories and his convictions. If you ever met him, you wouldn’t forget him.

As a professor and extension educator, Flinchbaugh taught agricultural policy subjects to approximately 4,000 undergraduates and, as a much sought-after speaker, lectured at farm meetings around the country. Most recently, he served as professor emeritus, department of agricultural economics, at Kansas State University, where he joined the faculty in 1971.

"He was always able to look at complex numbers and develop a narrative around those numbers that helped everyone understand the policy and the implications — whether it was the farmer, the elected official or the person in the White House," noted Mike Torrey, principal and founder of Michael Torrey Associates and a former student in Dr. Flinchbaugh's farm policy class.

Kansas farmer Jay Armstrong was Dr. Flinchbaugh’s second teaching assistant in 1972-74. “I drove him around to every county in Kansas when he educated farmers on how use-value appraisal would work. It was complicated, but Barry’s style made it so farmers could understand it,” Armstrong recalled. “From that effort, ag organizations took hold of their now educated membership and got urban candidates to support a change to the Kansas constitution which has saved farmers untold millions.  

“His plain speaking style is what made him a necessary force in Kansas ag policy and in turn his talents were used nationally with Freedom to Farm. Outspoken? Certainly. Effective? Definitely, yes.”

Students flocked to Dr. Flinchbaugh’s classes and many remember his style as tough but rewarding. He frequently chewed on a cigar and in later years, took pleasure in stomping his cane at his side to make a point.

“The truth was that Barry’s ‘bark was worse than his bite’. He would challenge and sometimes even scare students. But once they became amiable to working and understanding, he would bend over backwards for them - not only in their studies but helping them with their lives and finances. In short, his heart was bigger than his bravado,” Armstrong added. “He told me many times, ‘put humor into teaching and students will remember….that’s the goal.’”

During his early professional years, he began working with leaders of both political parties on federal farm bills. On a national level, his contributions to the development of U.S. agricultural policy have included serving as chairman of the Commission on 21st Century Production Agriculture formed by the 1996 FAIR Act (also known as the Freedom to Farm Act).

Dana Brooks, the CEO of the Pet Food Institute, said she first met Dr. Flinchbaugh when he chaired the 21st Century Ag Commission in 2000. She was a new staffer on Capitol Hill. “I was mesmerized by his intelligence, personality, leadership and commitment to agriculture. When I started looking at graduate school programs, I picked Kansas State University because of its reputation and Dr. Flinchbaugh was an advisor to the program. He will always be larger than life in my memories.”

Some of Dr. Flinchbaugh’s speeches and comments created controversy. Gregg Doud, who is now the top agricultural adviser for the U.S. Trade Representative, remembers walking across the Kansas State campus during his freshman year when the American Agriculture Movement hung a Flinchbaugh look-alike in effigy. They were upset about comments Flinchbaugh had made about whether or not there were too many farmers in 1985. “I remember thinking, ‘who is this guy?’” Doud recalled. “He taught me never to back down.”

Many government leaders shared their memories of the impact he had on policy, as well as on them personally. Said Kansas U.S. Senator Pat Roberts, chairman of the Senate Agriculture Committee: “Franki [wife] and I are deeply saddened by the news of Dr. Barry Flinchbaugh’s passing earlier today. Dr. Flinchbaugh was nothing short of a legend in his field. His expertise made him one of the most coveted and trusted advisors for agricultural policy for decades.

"Dr. Flinchbaugh’s legacy as an educator and advocate will live on through his work at Kansas State University and his lifetime of dedication to agriculture. I will not only miss his guidance, but I will also miss his friendship, wit and humor. I have many special memories of Barry, in particular our times together on the Pat and Dan Show, where he moderated lively discussions between former Congressman Dan Glickman, our state agriculture groups and myself. Our prayers are with the Flinchbaugh family during this difficult time.”

When he learned that Dr. Flinchbaugh had died, Dan Glickman, who served as Secretary of Agriculture from 1995-2001 and appointed Flinchbaugh to the Commission on 21st Century Agriculture, said “There will be a little bit of Kansas history lost. He has been my mentor for decades and will be fondly remembered for his wit, his wisdom and irreverence.” Glickman added, “He was one of the most unforgettable characters I’ve ever met.”

A Life of Accomplishment

Dr. Flinchbaugh served on a variety of boards of directors such as the Farm Foundation, advisory organizations like the 25x’25 Alliance and national task forces, providing input on domestic food and agriculture policy and serving as an advisor to industry and government leaders

Originally from York, Pennsylvania, Dr. Flinchbaugh earned a bachelor's degree in animal science in 1964 and a master's degree in agricultural economics in 1967, both from Penn State. He went on to earn a doctoral degree in agricultural economics from Purdue University. Dr. Flinchbaugh has been honored with Outstanding Teacher Awards three times by Kansas State University and has been recognized by the agricultural industry with several honors. He received a Distinguished Service Award from the American Farm Bureau and recently was selected as one of Farm Credit's 100 Fresh Perspectives, a national recognition for leaders making positive contributions to agriculture and rural communities. He was a lifetime member of Penn State's Alumni Association, its Ag Alumni Society and its alumni Stockman's Club.

He and his wife Cathy raised three children: David (deceased), James, and Katherine. He is also survived by two grandchildren: Henry and Piper. A celebration of Dr. Flinchbaugh’s life will be scheduled sometime after the pandemic is over. The family suggests that memorials be sent to the Kansas State University Foundation for the Flinchbaugh Agricultural Policy Chair (Account O64415), the Flinchbaugh Agricultural Policy Student Scholarship (Account O64410) or given to a charity of your choice in Barry's name. The Kansas State University Foundation is at 1800 Kimball Avenue, Suite 200, Manhattan, Kansas 66502-3373.

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Remembering A Friend and Agricultural Titan

U.S. Senator Jerry Moran, Kansas

Dr. Barry Flinchbaugh was an icon of agricultural policy in Kansas and throughout the nation. Dr. Flinchbaugh was well known for his involvement in helping craft farm bills for nearly five decades, and his authority on agriculture issues made him a trusted advisor to me and many prominent federal officials of both parties throughout his lifetime.

More importantly Dr. Flinchbaugh was my friend. We met when I called him more than 30 years ago to ask a question about Kansas tax policy. Ever since, I’ve admired and respected (loved) him. He spoke his mind, told me what he thought and made me a better senator and person. His death is a huge loss to me and all of his many friends, and it is hard to find the words to capture a man revered by so many. There may be no Kansan whose company I enjoyed more.

Each year, I would make a surprise visit to his ag policy class at K-State. His trademark sarcasm, wit and quips that made him a talented professor and a sought-after speaker was always on full display at the front of the classroom. I saw he loved and cared about his students and those feelings were mutual.

There is no doubt Dr. Flinchbaugh’s presence in ag policy will be felt for generations to come through the thousands of students he taught and mentored during his decades-long career as a professor at Kansas State. His loss will be felt deeply within the ag community, and Robba [wife] and I will be praying for Dr. Flinchbaugh’s family and loved ones during this time.

Latest News & Updates in KC Agriculture - November 2020

Developments

As COVID-19 cases and hospitalizations continue to rise in Missouri and across the Midwest, Governor Mike Parson signed Executive Order 20-19, November 19, 2020, extending the state of emergency in Missouri through March 31, 2021.  This will allow continued flexibility in deploying critical resources around the state as well as the continued utilization of the Missouri National Guard and easing of regulatory burdens to further assist Missouri’s COVID-19 response efforts. 

Farmer confidence is at its highest in the five-year history of Purdue University’s Ag Economy Barometer, the latest monthly results show. Confidence rose by 27 points to 183 in October, the highest reading since the barometer began in 2015. More farmers than ever said their farms were in better financial condition than a year ago, and a solid majority expected good times in the near to medium term, Chuck Abbott reports. “The late summer/fall rally in commodity prices, combined with government payments arising from the second round of the Coronavirus Food Assistance Program (CFAP2), appeared to be the primary drivers behind the sentiment improvement,” Purdue economists James Mintert and Michael Langemeier wrote.

Boehringer Ingelheim Animal Health announced a collaboration with Henke-Sass, Wolf to develop a needle-free injection device for pigs. The device, which is expected to be available beginning in December 2020 in most countries, will be called FreVAX through Boehringer and EPIG as part of HSW. (IHS Markit Connect) 

From the Land of Kansas is a trademark program designed to promote and celebrate agricultural experiences and products grown, raised or produced in Kansas. The From the Land of Kansas brand makes it easier for people to find and support Kansas-made products and Kansas-based businesses. The program, affiliated with the Kansas Department of Agriculture, offers an array of incentives to Kansas companies that grow, raise, serve or produce. “Purchases directly support small Kansas businesses and promotes local Kansas communities,” say Janelle Dobbins, marketing manager for the program. For information about holiday gift boxes and promotions contact Dobbins at Janelle.dobbins@ks.gov or 785-564-6759.

Brakke Consulting surveyed people in the animal health industry about their Thanksgiving plans and how they will change from last year.  About 17% of respondents said they spent last Thanksgiving at home with their immediate family. But this year that number will triple to 60%.  Likewise, 42% said they spent last Thanksgiving with extended family and friends. This year only 9% will celebrate Thanksgiving with a large gathering.  Interestingly, 28% said they would spend Thanksgiving with extended family (no friends) compared to 29% last year – not much change.

Trade teams from West and East Africa, Indonesia, Vietnam, Thailand, New Zealand, and Australia visited Kansas last month virtually, as the U.S. Grains Council hosted its Export Exchange Conference. The virtual event included a trade show, meetings and trade team visits with international buyers over Zoom. Kansas Corn, Kansas Department of Agriculture and K-State’s International Grains Program hosted a virtual trade show booth for Kansas grains, and Kansas Corn staff and leaders participated in the online Grain Exchange Conference. This year’s Grain Exchange overall hosted 1,207 registrants from 55 different countries.  The Kansas Corn Commission is a long-time supporter of the US Grains Council, which is based in Washington, D.C. and has offices around the globe.

Corteva Agriscience has been honored by the Utility Arborist Association as a recipient of the 2020 Partners in Excellence Award. Presented to companies that go above and beyond to support UAA and its mission, the award recognizes members, sponsors and volunteers committed to the enhancement of utility arboriculture and right-of-way management.

Kansas City Southern president and CEO Patrick J. Ottensmeyer, and executive vice president for Precision Scheduled Railroading Sameh Fahmy will address the Credit Suisse 8th Annual Virtual Industrials Conference on Thursday, December 3, 2020. Interested investors not attending the conference may listen to the presentation via a simultaneous webcast on KCS’ website.

A new study by the University of Illinois has an optimistic insight on the global agriculture industry’s consumption of ground and surface water, said to account for about 70% of the world’s supply.  According to the researchers, water use by the agriculture industry has actually decreased over a 15-year period, from 1995 - 2010. The comprehensive study looked at water withdrawals in U.S. agriculture and food production over that time period and found an 8.3% drop for crops and a 14% decline for livestock use. The downturn in water usage is a result of a combination of factors, such as increasing efficiency of the irrigation system, the growth of genetically modified crops, a change in domestic per-capita income and a changing of grown crops. A detailed PDF report of the study – What Factors Drive the Changes in Water Withdrawals in the U.S. Agriculture and Food Manufacturing Industries between 1995 and 2010? – is available at the American Chemical Society, ACS Publications.

Blockapps, an Albany, New York-based, blockchain platform provider has launched TraceHarvest Network with hope of transforming the way agricultural products are managed. The new blockchain-powered business network was developed in collaboration with Bayer. The platform will set new standards in sustainability, driving digital transformation and food system resiliency that will shape the future of the agriculture industry. More information available here.                        

Events

The pandemic has led many conference organizers to shift their farm industry events online this winter. The American Farm Bureau Federation and Commodity Classic have both announced their annual conventions will be held virtually in January and March, respectively. The Cotton Council will hold its Beltwide Cotton Conferences virtually, in January. And EuroTier is also going online this year, in February. Other conferences have been postponed, including the National Cattlemen’s Beef Association and the Midwest Poultry Federation. USDA’s Agricultural Outlook Forum is scheduled for the end of February, with details pending, and the National Farmers Union’s conference is scheduled to be held in person in San Francisco, also in late February. 

Farmers and crop specialists can hear updates from some of the nation’s leading agricultural researchers December 1-2 at the 2020 University of Missouri Crop Management Conference. Due to Missouri COVID-19 restrictions, this year’s conference is offered live online, said MU Extension weed scientist Kevin Bradley. Details and registration available here.

Kansas State University's Olathe campus is offering a workshop covering the regulatory aspects of animal drug and vaccine development. The workshop can be attended in-person at the Olathe campus or virtually: Animal Health Regulatory 101, 8:30 a.m. to 4:30 p.m. December 9-10. Attendees will learn how to navigate two of the federal agencies that oversee these products, FDA and USDA; as well as the requirements the agencies place on the development and maintenance of drugs and vaccines.

Kansas Farm Bureau will host its 102nd annual meeting December 3-5 with a mix of virtual presentations, as voting delegates will gather at 10 sites across the state to conduct business and set policy for 2021. “Annual meeting is where we celebrate the outstanding work of Kansas farmers and ranchers over the past year and set the agenda for the new year,” Kansas Farm Bureau president Rich Felts says. “This year the mission is the same, but the format will be different to protect the health and wellbeing of our members and their communities.”

People 

Born and raised on a hog and cattle ranch in Richland, Missouri, Air Force colonel and NASA astronaut Michael Hopkins, 51, is commanding the latest SpaceX operation bound for the International Space Station. The NASA mission will keep the crew occupied in space for several months. “When I was growing up at the Lake, going to the School of the Osage, I never would have thought that someday I was going to be sitting here getting ready to launch to the International Space Station in a brand new vehicle,” Col. Hopkins said prior to launch Sunday, November 15, 2020. From the farm to outer space, Missouri farm kid Michael Hopkins is continuing to fulfill a dream of space travel. At the University of Illinois he earned a Bachelor of Science in Aerospace Engineering in 1991, then a Master of Science in Aerospace Engineering from Stanford University. Hopkins joined the Air Force through the University of Illinois ROTC program.

David Patterson, a Chancellor’s Professor in the MU College of Agriculture, Food and Natural Resources (CAFNR) Division of Animal Sciences and state beef Extension specialist, was named an American Society of Animal Science (ASAS) Fellow. ASAS was created in 1908 and has supported both scientists and animal producers across the globe. Patterson’s ASAS Fellow honor came in the Extension category, which recognizes an individual who has given prominent service to the animal industry and has had continuous membership in ASAS for at least 25 years.

Two pioneers of the US animal health industry died earlier this month: Wes Remington and Dr. Bob Hummel.  

Wes Remington started his career at Anchor Serum as a sales rep and advanced to the position of president until it was sold to Boehringer Ingelheim.  He then started a number of companies, including Med-Tech (which later became Tech America); Agri Laboratories; Phoenix Scientific, one of the first companies to manufacture off-patent animal drugs; Phoenix Pharmaceuticals (known today as Clipper Distributing); and Pete and Mac’s Pet Resorts.  Wes was instrumental in the passing of the federal generic animal drug bill in 1984.  In the later years of his career, Wes was a very philanthropic individual for the animal health industry; and he was a key financial supporter of the Kansas City Animal Health Corridor at its founding.  

Robert Hummel DVM began his career in 1961 as a Technical Service Veterinarian with American Cyanamid Company.   In 1967, Hummel co-founded Great Plains Chemical Company (later changed to Lextron), which became one of the largest Animal Health distributors in the U.S with an emphasis towards the food animal protein segment. After a merger with Walco, the company name was changed to Animal Health International and was later sold to Patterson Companies.  

U.S. Senator John Boozman, R- Ark., will take over Republican leadership of the Senate Agriculture Committee after Sen. Pat Roberts, R- Kan., leaves. Sen. Boozman will either be chair or ranking member pending the result of the Georgia special senatorial elections in January.

Farm Journal, Lenexa, Kansas, has named Doug Edge senior vice president, revenue development for the company. In this new role, he will manage the producer sales groups with direct responsibility for crop sales while also providing strategic leadership to sales and business development groups and serving on the company's executive committee.

U.S. Senator-elect Roger Marshall, R-Kan., has named Brent Robertson chief of staff in his Senate office and Katie Sawyer state director. Robertson has been chief of staff in Marshall’s House of Representatives office since 2016 and Sawyer has been district director of his first congressional district office since 2017.  Source: Agri-Pulse Communications. 

Americans Can Save A Little on Thanksgiving Dinner

It remains to be seen whether Americans will be social distancing at their Thanksgiving gatherings, keeping masks on and silencing festive sing-alongs inside their homes, as some states have suggested or mandated. But one thing is clear. They will be paying a little less this year for the average traditional holiday meal. The American Farm Bureau Federation’s 35th annual survey shows the average cost of this year’s Thanksgiving feast for ten remains affordable at $46.90 or less than $5.00 per person. This is a $2.01 decrease from last year’s average of $48.91.

“The average cost of this year’s Thanksgiving dinner is the lowest since 2010,” said AFBF Chief Economist Dr. John Newton. “Pricing whole turkeys as ‘loss leaders’ to entice shoppers and move product is a strategy we’re seeing retailers use that’s increasingly common the closer we get to the holiday,” he explained.

Turkeys, the classic entrée on the Thanksgiving menu, will cost about $1.21 per pound this year or $19.39, down 7% from last year. AFBF’s survey results show that retail turkey prices are also the lowest since 2010.

The shopping list for AFBF’s informal survey of a typical Thanksgiving spread for ten people includes turkey, stuffing, sweet potatoes, rolls with butter, peas, cranberries, a veggie tray, pumpkin pie with whipped cream, and coffee and milk – in enough quantities to satisfy America’s love for Thanksgiving leftovers.

In addition to turkey, foods that showed slight price declines include whipping cream and sweet potatoes. Foods showing modest increases this year included dinner rolls, cubed bread stuffing and pumpkin pie mix. 

While turkey is the centerpiece of the Thanksgiving table, AFBF acknowledged the holiday’s dinner traditions have changed for some families. So its price survey also includes ham, potatoes and frozen green beans. Adding these foods to the classic Thanksgiving menu increased the overall cost by $13.21, to $60.11.  But even with these additional items, the cost of the expanded Thanksgiving meal is still down compared to 2019.

This year’s national average cost, says AFBF, was calculated using more than 230 surveys completed with pricing data from all 50 states. Farm Bureau volunteer shoppers were encouraged to check prices online using grocery store apps and websites due to the pandemic. They looked for the best possible prices without taking advantage of special promotional coupons or purchase deals.

Source: American Farm Bureau Federation