Latest News & Updates in KC Agriculture - April 2021

Developments

As Agriculture Future of America celebrates its 25th anniversary, Farm Journal Media has elevated its support of AFA to a new level. With the establishment of a long-term, exclusive partnership, Farm Journal and AFA will collaborate to enhance AFA’s outreach to students while supporting connections with the agricultural industry. The partnership will allow Farm Journal to further strengthen its network of young professionals. “Farm Journal has been a long-standing supporter of AFA, and we are thrilled to welcome them as a partner,” said Mark Stewart, AFA president and CEO. “The partnership, which tightly aligns with our mission, heightens both organizations’ dedication to building transformational leaders in food and agriculture.”  Farm Journal will provide media support for a campaign that highlights AFA alumni and provides greater visibility to the organization. The two organizations will work closely in multiple industry events, broadening the opportunities for student and industry intersections.

Canadian National Railway announced April 20, 2021 its plan to buy Kansas City Southern, the longtime local rail operator, for $33.7 billion. Canadian National's bid to buy Kansas City Southern for $325 per share would represent a 21% premium over rival rail company Canadian Pacific Railway's proposed acquisition announced in March. Kansas City Southern's board had agreed to sell to Canadian Pacific for $29 billion, which valued Kansas City Southern at $275 per share. The deal was announced pending regulatory approvals, which are now underway. 

Boehringer Ingelheim has transitioned to renewable energy to power its largest U.S. manufacturing site, in St. Joseph, Missouri, as part of a broader company commitment to environmental sustainability in the United States and around the world. Wind energy now provides all the electricity used at the site, where BI employs nearly 1,000 people who manufacture vaccines for horses, pigs, cattle and other animals. BI and its predecessor companies have manufactured animal health products in St. Joseph for more than a century. The company recently signed a 10-year contract with Evergy Inc., which serves about 1.6 million customers in Kansas and Missouri, to buy energy generated at a wind farm in Kansas for its site in St. Joseph. The change will reduce carbon emissions at the site by 76% as part of a larger company commitment to environmental sustainability nationwide.

The U.S. Court of Appeals for the D.C. Circuit heard a challenge to the EPA’s E15 decision brought by the American Fuel and Petrochemical Manufacturers, which argued EPA should not have allowed for the sale of E15 — a fuel mixed with roughly 85% gasoline and 15% ethanol — during the summer months. That decision was made in May 2019 following years of ethanol industry lobbying and negotiations with the Trump administration over biofuels policy.

The Association of Equipment Manufacturers reports a positive first quarter for tractor sales. Tractor sales growth continued for the 11th straight month in March, closing out the quarter with nearly 55% growth in total tractor sales over 2020 figures. According to figures from AEM, year-over-year sales in March increased 84.1% in 2021. The biggest gains were in small, sub-40 horsepower tractors, which nearly doubled in sales (up 96.5%). Sales of 100 horsepower units were also higher, shooting up 63.5%. Sales of larger four-wheel-drive units were up a modest 2.5% to reverse the slight sales decrease observed in February. “The strength of ag tractor and combine sales this month, driven largely by small tractors, but showing strength across all size classes, reinforces the optimistic findings of a survey we shared earlier this year,” AEM’s Curt Blades said in a statement. “That survey found increased customer demand has manufacturers optimistic that sales will increase or remain stable, despite COVID-19 and workforce challenges in 2021.” Combine sales also observed quarterly and monthly growth; March sales were 6.7% higher in 2021, capping off a quarter that observed a 16.5% sales increase over 2020.

The Lawrence-Douglas County Sustainability Office is teaming up with After the Harvest, a Kansas City, Missouri-based produce rescue nonprofit, and Community Organized Gleaners, a grassroots volunteer group of experienced farmers, to expand food recovery on Douglas County farms. The goal is to rescue nutritious fruits and vegetables from farm fields after the marketable harvest and distribute them to Douglas County agencies providing food and shelter assistance to community members.

To celebrate Buy Missouri Day, the Missouri Department of Agriculture’s Missouri Grown program announced funding for 13 retail businesses that carry Missouri Grown products. The Missouri Grown Retail Promotion Matching Grant awards up to $1,000 per retail store for reimbursement of expenses associated with promoting Missouri Grown member products.

FCS Financial recently selected 34 recipients for their Scholarship Program who will each receive a $1,500 scholarship to assist with the cost of higher education. Since 2004, more than $720,000 has been distributed through the FCS Financial Scholarship Program. The program is designed to encourage and support higher education for children and grandchildren of FCS Financial members.

Farm Journal Foundation announced its support for the America Grows Act of 2021, a bipartisan bill introduced April 27 that would significantly increase U.S. public investment in agricultural research and development. The bill, introduced by Senator Dick Durbin (D-IL) and Senator Jerry Moran (R-KS), would increase funding for agricultural research by 5% annually on an inflation-adjusted basis at four agencies at the U.S. Department of Agriculture for the next 10 years. The America Grows Act would increase funding for four agencies at the USDA: Agricultural Research Service, Economic Research Service, National Agricultural Statistics Service and National Institute of Food and Agriculture.

Compass Minerals observed International Workers’ Memorial Day, April 28,  with a moment of silence across all sites at 9 a.m. CDT. The annual day of remembrance recognizes workers killed, disabled, injured or made ill by their work. “We encourage our employees to pause, reflect and remember on this day,” said Allen Dupree, senior vice president, environment, health, safety and sustainability. “Safety is essential and our company continuously works to maintain focus on our Top Risks and ensure the well-being of all employees.”

Tyson Fresh Meats has joined U.S. CattleTrace, making it the first beef processor to become a member of the animal disease traceability program. Shane Miller, the company’s chief operating officer, said Tyson is hopeful their involvement will help advance industry efforts to implement the program across the country.  CattleTrace was launched as a pilot project in 2018 as part of a collaborative partnership between KLA, the Kansas Department of Agriculture, Kansas State University, USDA and individual producer stakeholders. The name of the organization was changed to U.S. CattleTrace in January 2020, with the involvement of additional cattlemen’s organizations in Florida, Kentucky and Texas.

People 

Mikayla Bodey has joined the Senate Ag Committee as professional staff to the majority. Bodey will handle the rural development and energy portfolio. She previously worked for Rep. Angie Craig, D-Minn., as her senior legislative assistant covering the portfolio for the House Ag Committee and the House Committee on Energy and Commerce. She also oversaw the congresswoman’s work as co-chair of the Congressional Biofuels Caucus. Before working for Craig, Bodey worked for former Sen. Claire McCaskill, D-Mo., as a legislative correspondent with a focus on agriculture and environment issues.

Former Farm Production and Conservation Undersecretary for USDA during the Trump Administration Bill Northey has returned to Iowa to start a consulting business, WHNorthey, focusing on agriculture, conservation, and sustainability issues. 

TechAccel LLC has hired Mike Dean as controller. Dean has worked in accounting and finance for more than 20 years, most recently with the USDA and a pharmaceutical contract research organization. He holds a BS degree in business administration from the Ross School of Business at the University of Michigan. TechAccel invests in and advances innovations to produce healthier plants, animals and foods, while protecting and rejuvenating the environment. 

TechAccel also brought Joe Langle on board as vice president of its Program Management Office. Langle previously was Program Management Manager at the Kansas City National Security Campus, a U.S. Department of Energy facility managed by Honeywell Federal Management and Technologies LLC. Langle has an MS in mechanical engineering from the University of Texas San Antonio, and a BA in mechanical engineering from the University of Missouri Columbia. 

Events

The 2021 World Pork Expo will take place at the Iowa State Fairgrounds in Des Moines, Iowa. Professionals in the pork industry can expect three days of networking, education, and innovation from June 9-11. National Pork Producers Council will continue to monitor developments in COVID-19 guidelines (local, state, federal) for the World Pork Expo to ensure the health and safety of all participants. NPPC will provide guidance to exhibitors and attendees. Registration information will soon be available online for those who plan to attend the 2021 World Pork Expo, June 9-11.

The Missouri Agribusiness Association is holding its MO-AG Summer Meeting July 8-9 at the Lake of the Ozarks. They will have speakers on topics ranging from carbon, federal and state ag policy, river issues, pesticide, and more. Lieutenant Governor Mike Kehoe, Congresswoman Vicky Hartzler, Senator Mike Bernskoetter, and the Missouri Department of Agriculture will speak on important topics pertaining to agribusiness. More information is available here.

The Missouri Governor’s Conference on Agriculture is coming back to Tan-Tar-A Resort in Osage Beach, Missouri, this fall for its 49th celebration of agriculture.  Missouri Department of Agriculture has set the conference dates for November 18-19, 2021. Missouri farmers, ranchers, agribusiness leaders and aspiring agriculturalists are invited to enjoy the packed program that will include a commodity outlook, Missouri Agriculture Awards luncheon and nationally recognized speaker line-up. More information is available at www.agriculture.mo.gov.

Exciting Time to be in Agriculture

Brett Begemann, featured speaker at the Council’s April meeting, recalled it wasn’t until the late 1990s that people ‘really’ started to talk about food. Before that, food production, processing, packaging and transportation were just banal topics that didn’t command headlines. Now, Begemann, who is COO for Bayer’s Crop Science division in St. Louis, claims food is a headliner. At least three times a week, newspapers like the Wall Street Journal, the Chicago Tribune and business-oriented cable and television news programs run stories about agriculture and food. 

“It’s an exciting time to be in ag.” That’s because 25 years ago talk about the environment and things like sustainability got serious. And there is no industry that has done more to promote, develop and advance the concept of sustainability than agricultural, Begemann said. He attributes ag’s emergence as a leader in sustainability to the array of digital tools that are driving innovation today.  But he put Council members and the ag industry in general on notice to keep talking and touting the business. “If you’re not at the table, you’re on the menu.”

Serving as host of the virtual meeting was Chris Daubert, dean of the University of Missouri‘s College of Agriculture, Food and Natural Resources.  He described CAFNR’s vision and mission as “imagining a healthy world.” CAFNR’s “food for life philosophy cultivates this world through visionary and transformative solutions for the environment, food systems, economies and communities.” Dean Daubert noted that CAFNR is changing core components that impacts what people eat, where they live and how they will face the future.

CAFNR has numerous existing research, teaching and extension programs that are nationally and internationally recognized. To highlight the recognized strength of existing and future programs, CAFNR has established criteria for Programs of Distinction, a select collection of programs that exemplify CAFNR’s drive to distinction.

Dr. Rob Kallenbach, University of Missouri’s associate dean of the Agriculture & Environment Extension indicated the goal of the Extension is to double the economic impact of agriculture in Missouri by 2030 “while sustaining our natural resources.” The strategic plan calls for such action as turning advances in animal genetics into better stock and couple that with an effective business model to capture retail value. 

Latest News & Updates in KC Agriculture - March 2021

Developments

In the aftermath of recent winter storms, Dairy Farmers of America is donating $50,000 through its DFA Cares Foundation to Southwest food banks and Feeding Texas to help with relief and recovery efforts. “As farmers, we work hard each and every day to help make food for our local communities,” says Larry Hancock, a dairy farmer from Muleshoe, Texas, and a member of DFA’s Board of Directors. Last spring DFA launched its DFA Cares Farmers Feeding Families Fund, which was created to help raise money and deliver dairy products to community food banks across the country. To date, the Farmers Feeding Families Fund has raised more than $675,000 in donations from DFA farmer-owners, employees and industry partners and has supported rural and community food banks and pantries throughout the Southwest. 

Kansas City drivers will have more fuel choices at the pump after the Environmental Protection Agency approved the year-round sale of E15 fuel in the Kansas City metro area. EPA removed a regulation that previously banned the sale of E15 in the region. The Kansas Corn Growers Association and Missouri Corn Growers Association staff worked closely with the Kansas Department of Health and Environment, the Missouri Department of Natural Resources and EPA to allow year-round E15 sales.

 National Beef is investing $100 million to increase capacity at its Iowa Premium beef processing plant in Tama, Iowa.  Daily capacity at the plant is expected to double to 2,500 head, requiring the addition of a second shift. National Beef acquired the facility in 2019. The project is expected to be complete in late 2022, and the company expects to create hundreds of jobs in the Tama area.

USDA’s NIFA recently awarded over $8.5 million in funding for 29 research and Extension grants that will advance solutions to critically important problems in U.S. agriculture. “These NIFA investments in user-inspired projects bring together researchers, Extension experts, and practitioners to find solutions that can be rapidly adopted by the agricultural community,” said NIFA Director Carrie Castille.

Canadian Pacific Railroad has agreed to purchase Kansas City Southern in a deal worth about $25 billion after discounting $3.8 billion of KCS debt that Canadian Pacific will take on. It would combine two of the industry's fastest-growing rail operators. The companies said the deal would help them become more competitive. That could become increasingly important as the USMCA goes into effect. The combined company would operate 20,000 miles of rail employing nearly 20,000 people and generating annual sales of about $8.7 billion.

Cargill is investing in its U.S. soy processing operations, with modernization and expansion projects planned across its network of crush facilities in seven states. Once completed, the company estimates the $475 million in investments will improve operational efficiencies while increasing capacity to better meet growing demand for U.S. soy products. Improvements will include faster unloading of oilseeds and loading of products, increased capacity to provide additional market opportunities, and better overall logistics, safety and ease of doing business, the company said. All facilities will continue to operate while construction and expansion projects are underway. 

The University of Missouri’s College of Veterinary Medicine received an $11 million gift to fund a new imaging center. Officials say this is the largest gift in the college’s history, and it will be used to advance comparative and translational medicine research at the university.  

U.S. beef and pork exports began this year below the large volumes posted a year ago, according to January data released by USDA and compiled by the U.S. Meat Export Federation. Beef exports totaled 105,047 metric tons in January, down 2% from a year ago, while value fell 3% to $653 million. The decline was due mainly to lower beef variety meat shipments. January beef exports were strong to South Korea and continued to gain momentum in China, while exports to the Middle East also rebounded. Pork exports in January totaled 248,656 metric tons, down 9% from a year ago but still slightly above USMEF’s projections. Pork export value was down 13% to $642.8 million. While pork exports to China and Hong Kong declined as expected, exports to Japan increased in January, and demand was strong in Central America, the Philippines and the Caribbean.

St. Joseph, Missouri-based American Angus Association surpassed 20 million registrations on March 17, 2021. A registration certificate is more than a piece of paper, says the Angus organization. The registration paper creates demand and extra value in cattle that are powered by the qualities that the Angus breed brings to the table. Registration numbers signify the data behind the animal, tracing its lineage and potential to change the direction of cowherds. 

Americans are buying more beef, pork, poultry, and lamb than ever as increased time at home during the pandemic sent meat grocery sales soaring by 20% from 2019 to 2020, reports the North American Meat institute. The recently released national analysis shows that three out of every four Americans agree meat belongs in healthy, balanced diets (up by nearly 20% since 2020), and 94% say they buy meat because it provides high-quality protein. Nearly all American households (98.4%) purchased meat in 2020, and 43% of Americans now buy more meat than before the pandemic – primarily because they are preparing more meals at home.

Agriculture is a diverse industry usually located in remote parts of the country. The risks and occupational exposures associated with farming and ranching are often not familiar to healthcare workers serving rural communities. Nurses are the frontline of rural community healthcare which is why FCS Financial is teaming up with four other Farm Credit associations to offer 20 scholarships to nurses from Missouri or Arkansas to complete the Agrisafe Nurse Scholar program. The program consists of 20 hours of virtual, on-demand learning utilizing lectures, interactive question and answer sessions and group discussions. More information is available here.

March Madness reaches its finale this weekend when the NCAA Basketball Championship’s Final Four event tips off. There have been a number of game changing rules over the years for this collegiate sport, like the 3-point shot, the 30-second shot clock and the jump stop (once called  ‘steps’ or ‘travelling’ by refs).  But many fans and hoop historians claim the slam dump changed the game forever. Credit for this electrifying act of athletic prowess, however, doesn’t solely belong to the talented players performing it. Acclaim should go to a lifelong Illinois farmer and a John Deere cultivator. 

Truth be told, early on, players, coaches, athletic directors and gym maintenance supervisors weren’t so keen on the slam. Too many broken wrists, shattered backboards, costly replacements and delayed/postponed games threw a wet blanket on the flying circus. So entered Arthur Ehrat, farmer and manager of the former Farmers Elevator Company in 1975, looking for a solution. He tinkered with some 30 different springs – including automobile valve springs – that could snap the rim back into place during a dunk. None were strong enough. Except a John Deere spring that had the right shape and measurements. Ehrat designed his prototype after it and named it The Rebounder, which he patented in 1982. His breakaway rim, now integral to just about every backboard in the world, also resides in the Basketball Hall of Fame and The Smithsonian.

Stagnant public funding for agricultural research is threatening the future vitality of U.S. food systems – posing risks to farmer productivity and profitability, the steady supply of affordable food for consumers, and ultimately global food security, according to a new report. The report, jointly commissioned by Farm Journal Foundation and the American Farm Bureau Federation and authored by the IHS Markit Agribusiness Consulting Group, highlights the vital importance of public funding for agricultural research and development (R&D). New innovations are crucial so that farmers can increase their productivity and meet rising global demand for food, even as climate change intensifies. The world population is expected to reach 10 billion by 2050, and food production will need to increase by 60%-70% to meet rising demand. While private-sector funding for agricultural R&D has been increasing, U.S. public spending has been flat for the past decade. The full report is available from AFBF.

People

Former Kansas Sen. Pat Roberts has joined Capitol Counsel as a new partner. Roberts served four terms in the Senate and eight terms in the House of Representatives. At the time of his retirement, he chaired the Senate Agriculture Committee and also served on the Committee on Finance and the Committee on Health, Education, Labor and Pensions. He is the only person to serve as chairman of the House Agriculture Committee and Senate Agriculture Committee, working on a total of eight farm bills.

Rep. Emanuel Cleaver, D-Mo., has hired Haydin Brady as his new district communications coordinator. Brady most recently served as community affairs liaison in Cleaver’s Kansas City office.

Richard Fordyce has joined Osborn Barr Paramore as business growth director. Fordyce previously served as the administrator of USDA’s Farm Service Agency. At OBP, he will focus on strategic business development and will represent the agency in roles with various local, regional and national agriculture industry organizations.

Corn farmers and industry representatives joined the Missouri Corn board of directors virtually for the Missouri Corn Growers Association annual meeting. Members also took the opportunity to honor grower-leaders and retiring CEO Gary Marshall for their work on behalf of corn farmers. Award recipients included: President’s Award, Mark Scott, Wentzville; Honorary Lifetime Award, Mike Moreland, Harrisonville, Greg Schneider, Warrenton; Years of Service Award, Kyle Kirby, Liberal, Greg Schneider, Gary Marshall, Jefferson City.

The National Pork Producers Council joined the National Pork Board to honor Missouri Pork Producers Association executive vice president Don Nikodim with the Paulson-Whitmore State Executive Award at the National Pork Industry Forum. The award, named after former Minnesota and Wisconsin Executive Directors Don Paulson and Rex Whitmore, recognizes the outstanding leadership and commitment of state pork organization executives.

Cargill is adding two new members to its executive team to help implement strategic growth initiatives. Jon Nash will take over as the leader of global protein and salt enterprise. Pilar Cruz will be Cargill’s chief sustainability officer, responsible for the company’s sustainability, corporate responsibility and global communications functions. The company also announced changes for several other members of its executive team. All of these changes and additions go into effect April 1.

U.S. Senator Roger Marshall, R-Kan., has hired Audra Weeks as his new press secretary. She most recently was the deputy press secretary on the Trump Campaign as well as in the press shop of former Secretary of Agriculture Sonny Perdue.

Kansas Department of Agriculture has announced results of elections to lead the state’s five grain commodity commissions. The Kansas Corn Commission is now led by Brian Baalman, district one; Dennis McNinch, district two; and Steve Rome, district three. The Kansas Grain Sorghum Commission is now led by Jon Berning, district two, and Brant Peterson, district three. No candidates ran for districts one, two, or three for the Kansas Soybean Commission, which will now appoint this combined position. The Kansas Wheat Commission is now led by Brian Linin, district one; Ronald Suppes, district two; and Gary Millershaski, district three. Source: Agri-Pulse Communications.

Missouri Department of Agriculture announced 30 high school sophomores were selected to participate in the 2021 Missouri Agribusiness Academy. Students selected will spend several days in June in the Mid-Missouri region exploring careers in agriculture, building leadership skills and learning more about farming, ranching and food production. “Giving back to agriculture is important and we’re thrilled to contribute to the future of agriculture through MAbA,” said Director of Agriculture Chris Chinn. “I’m so proud of each of these students and the accomplishments they’ve already achieved as leaders. We hope that MAbA helps each of them add value to those skills and ultimately find their future in an agriculture career.” Since 1988, the Missouri Agribusiness Academy has awarded more than 990 academy memberships through a competitive application and interview process for high school sophomores interested in pursuing agriculture-related college degrees and careers.

Agriculture Future of America recently selected 22 college students to serve as organizational Ambassadors. The Ambassadors represent AFA on their respective campuses and will serve through March 31, 2022. Ambassadors kick-off their term in March 2021 with training and team building exercises. In the initial training, Ambassadors will gain further insight on their role including goals specific to their campus involvement with AFA, their function in partner relationships, coaching on sharing AFA with various audiences and resources available throughout their term. “AFA was founded to serve students and there’s no better way to do so than by empowering the Ambassadors as advocates for the organization and wider agriculture industry,” says Mark Stewart, AFA president and CEO. “The Ambassadors work in tandem with AFA to bring premier leader and career development experiences to highly motivated young professionals studying agriculture and related fields.”

Events

The 2021 World Pork Expo will take place at the Iowa State Fairgrounds in Des Moines, Iowa. Professionals in the pork industry can expect three days of networking, education, and innovation from June 9-11. National Pork Producers Council will continue to monitor developments in COVID-19 guidelines (local, state, federal) for the World Pork Expo to ensure the health and safety of all participants. NPPC will provide guidance to exhibitors and attendees. Registration information will soon be available online for those who plan to attend.

Kansas Department of Agriculture will host a free informational webinar focused on updates to the H–2A guest worker program including CDL requirements for custom harvesting and farm employees. The webinar will take place virtually on April 7, 2021, at 7:00 p.m. The focus will be on USDA’s H–2A program for temporary agricultural employment of foreign workers via the Farm Worker Modernization Act. Register here.

Digging Deeper...

With the exception of paper towels and toilet paper, no other grocery category captured more attention and created more concern among consumers than meat products – or rather the shortage of them – during the spring 2020 outbreak of COVID-19. Agriculture economists morphed into media mavens appearing on just about all the network and cable television news programs and contributing articles and analysis to major newspapers and news syndicates. The crisis in meat aisles and at butchers’ counters everywhere was a shock. But not necessarily unforeseen. By Dennis McLaughlin, McLaughlin Writers, LLC

COVID-19 Exposed  Animal-To-Meat-To-Market Bottleneck

… And The Need For Local Smaller Processing Plants 

Back in July 2020 speaking virtually at the Agricultural Business Council’s meeting, Glynn Tonsor, Ph.D., Professor, Kansas State University’s Department of  Agricultural Economics, singled out  a couple  of  “shocks” the meat industry absorbed with COVID-19. The first one was the shift to social distancing and self-quarantining from mid-March through April. With millions of Americans staying closer to home, the meat industry had to reevaluate the benefits and costs related to its retail, food service and export channels.  Shock number two, he said, was the “animal-to-meat bottleneck” in April and May 2020, creating a surplus of animals and a shortage of meat in stores.

In follow up remarks a few days after speaking at Kansas State University’s recent annual Cattlemen’s Day Symposium, March 5, Jayson Lusk, Ph.D., Distinguished Professor and head of the Department of Agricultural Economics at Purdue University, said, “Supply chains for many agricultural products have an hour-glass shape; and in between a sizable number of farmers and consumers is a small number of processors.”

The concentrated nature of the meat processing sectors in the U.S., Dr. Lusk wrote in a March 11, 2021 follow-up post, implies that disruption of the processing capacity of any one plant from accidents, weather or, case-in-point, pandemic illness can lead to system-wide disruptions and possible meat shortages. At the KSU symposium, Dr. Lusk pointed out that ten processing plants slaughter 63% of all cattle and 15 plants slaughter 59% of all hogs.  

Small Plants Get Traction

In the wake of supply problems caused by processing plant closures last year, one solution has become increasingly expedient: Expand the number and size of smaller meat processing operations to reduce reliance on big plants. Movement in this direction started in May 2019 when a bipartisan group of Congressional representatives proposed legislation to amend the Agricultural Marketing Act of 1946, which would direct the USDA to make grants available for improvements to meat and poultry facilities and to allow for interstate shipment, as well as for other purposes.  

But it has been states like Kansas and Missouri that have made significant moves to smooth the way for small plants to develop capacity and proficiency to take up the slack in meat processing and packing. 

The Coronavirus Aid, Relief and Economic Security (CARES) Act passed in March 2020 paved the way for states to access federal funds to create grant programs to aid local small meat producing and processing businesses to upgrade their facilities. Last May, Kansas Governor Laura Kelly introduced the Strengthening People and Revitalizing Kansas (SPARK) Taskforce to rebuild Kansas economy. At the time, Gov. Kelly said, “The state’s recovery effort must serve urban and rural areas alike across the state and all sectors of the economy.” Small food animal producers and processors received grants to maintain their operations and upgrade facilities.

By the end of last year SPARK approved more than $130 million in relief funding for economic development and connectivity in the state. Federal allocations were provided in the form of grants to eligible businesses through the Kansas Department of Commerce. The Kansas Livestock Association (KLA) and the Kansas Department of Agriculture supported  the need for assisting small processors in capacity-related improvements. 

In particular, KLA urged its members to look into the Securing Local Food Systems grant program, created to support small meat processing facilities, food processors, food banks, local direct-to-consumer producers and retail outlets “to address supply chain disruptions as a result of the pandemic.” The program is based on the need to increase capacity of local food systems. Specifically, KLA said the program was targeted at small meat processors needing funds to expand cold storage, upgrade equipment and renovate or expand existing processing areas. 

Across the state line, the Missouri Meat and Poultry Processing Grant Program was created to support Missouri meat and poultry processing facilities to address COVID-19-related supply chain disruptions. Missouri’s General Assembly appropriated $20 million in federal funds from the CARES ACT to help support these facilities. Missouri Department of Agriculture said grants were intended to incentivize small facilities to increase livestock or poultry slaughter and processing, and to become an inspected or exempted facility in the near term. MDA maintains that increasing slaughter and processing facility capacity will add resilience to the mat supply chain.  

In the last week of December 2020, Congress passed an additional $900 billion coronavirus relief bill that included $60 million in grants for small meat processors, reported KOSU, an Oklahoma public radio outlet. “Up to $200,000 in grants can be used to update or expand a small processing facility to meet USDA inspection standards,” wrote KOSU editor Seth Bodine. Updating to federal inspection standards would mean the meat could be sold across state lines, he explained.

Gaining Momentum

On September 29, 2020 U.S. Congressmen Chellie Pingree (D-MA) and Jeff Fortenberry (R-NE) introduced legislation – Strengthening Local Processing Act – that would increase the federal share of costs for state inspection from 50% to 65%. For Cooperative Interstate Shipment (CIS) facilities, the fed’s share would bump from 60% to 80%,  encouraging more states to operate state inspection programs and participate in CIS.  Specifically, the Strengthening Local Processing Act intends to accomplish these imperatives:

• Increase the federal share of costs for state inspection from 50% to 65%. There are 27 states that operate a state inspection program.

• Increase the federal share of costs for state inspection for Cooperative Interstate Shipment (CIS) facilities from 60% to 80%. There are eight states that participate in CIS.

• Authorize competitive grants to small and very small establishments, state inspected facilities, custom exempt facilities, or new small-scale slaughter facilities for activities related to COVID-19 response and recovery.

• Authorize a $10 million grant program for colleges and universities to establish or expand meat processing training programs.

• Authorize a $10 million grant program for small and very small establishments or nongovernmental organizations to offset the cost of training new meat processors.

Meanwhile Back At The Ranch

Referring to the Strengthening Local Processing Act, Christopher Young, executive director of American Association of Meat Processors, said it “will be a game changer for small processors.” Federal and state relief packages, programs and grants to spur processing plant development and expansion are indeed having a positive impact. 

But with the recent growth in business for small plant operators, there has been growing pains.  Liz Boyle, Ph.D., professor of Meat Science in the Department of Animal Sciences and Industry at Kansas State, noted a number of challenges facing small processors during her presentation at Kansas State’s Cattlemen’s Day Symposium. One obstacle is labor. “Everybody’s working overtime, trying to keep all of the customers happy,” said Matt Carselowey, president of Kansas Meat Processors Association (KMPA),  which represents about 50 small processors in the state. 

Another processor in Kiowa, Kansas, secured funding grants to cover repairs and new equipment to take on increased demand. It also added five new employees. “It’s a whole lot more stressful,” a manager told Dr. Boyle. “I’ve never had to keep a calendar a year out until this year; it’s just made everything harder to keep track of and [added] more paperwork.” The manager also remarked that his facility could be adding a second shift. “And I’ll be sleeping less.”   

Dr. Boyle recalled that over the last decade or so many industry and public service campaigns have been launched to encourage consumers to get to know their farmers and learn more about where their food comes from. While the coronavirus pandemic accented some vulnerabilities in the meat processing industry, it inadvertently may be responsible for prescribing Americans with a much-needed Rx for positive nostalgia. The reemergence of smaller local meatpacking facilities and a greater demand for retail beef and pork has reminded the public that local processing is still round, she said.  “And it is a good way to support local business.”

Source: Proceedings, Kansas State University Cattlemen’s Day Symposium, March 5, 2021; Jason Lusk, Ph.D., Distinguished Professor, Department of Agricultural Economics, Purdue University; Agricultural Business Council of Kansas City, July 2020 Newsletter; Glynn Tonsor, Ph.D., Professor, Kansas State University’s Department of Agricultural Economics; Liz Boyle, Ph.D., Professor,  Meat, Science, Department of Animal Science  and Industry, Kansas State University. 

Driving Ethanol Demand

Emily Skor, CEO, Growth Energy

At the Council’s March meeting, Emily Skor, CEO of Growth Energy, presented a buoyant outlook for her industry.  Despite the myriad challenges brought on by COVID-19, 2020 was a good year for ethanol.  She noted that retail growth for E-15 expanded with the number of retail sites selling E15 increasing 10%. Now more than 2,300 stations across 30 states are making E15 available to consumers. She described this boom as not just “a road to recovery, but the expressway to growth.” 

Currently Growth Energy is working with a list of leading retailers – including Casey’s, Cumberland Farms, Family Express, Holiday, Kum&Go, Kwik Trip, Minnoco, Murphy USA, Protec Fuel, QuikTrip, RaceTrac, Royal Farms, Rutters, Sheetz and Thorntons – to give more drivers access to cleaner burning, high octane E15 throughout the U.S. 

On March 9, 2021, two days before Skor addressed Council members (March 11), Growth Energy announced that American drivers across the nation reached a major milestone, logging 20 billion miles on the road since E15 blends were approved.  “In an unprecedented year,” Skor said, “hitting this milestone is a huge testament to the benefits E15 offers drivers who use it and retailers who sell it.”  Opening new markets is at the heart of Growth Energy’s mission, she added, further explaining that it expects to grow demand through effective policy solutions, accelerated market choice and access, as well as enhancement of global confidence in ethanol. 

To expedite this strategy, Skor explained that Growth Energy would continue to work with the top 20 retail chains; target additional efforts toward the top five markets; position E15 as the primary fuel product to replace E10; enhanceits relationship with terminals already offering E15.  Growth Energy also intends to influence and advance USDA’s Higher Blends Infrastructure Incentive Program (HBIIP).

The Kansas City Metro Area, including surrounding towns and counties in both Kansas and Missouri, already has a sizeable E15 footprint, Skor pointed out. And as coincidence would have it, the day after her Council presentation the Environmental Protection Agency (EPA) announced on March 12 that it was allowing E15 fuels to be sold year-round in the region.

“This announcement is a big step for the Kansas City metro area and a continuation of the hard work being done there to improve air quality and address environmental issues,” said Skor in a release. “Allowing the year-round sale of E15 will help strengthen these clean energy efforts and give more Kansas Citians access to cleaner, more affordable fuel options. A recent report found that nationwide, switching from E10 to E15 would reduce greenhouse emissions by almost 20 million tons per year. Ethanol environmental benefits are tangible and will help continue Kansas City’s efforts to protect human health and contribute to our country’s overall efforts to decarbonize the transportation system.”

Relocating NIFA and ERS to KC Metro

It’s been almost two years since USDA announced it was relocating two of its agencies to the Kansas City Metro Region.  About a year ago USDA actually initiated the change of addresses for both the Economic Research Service (ERS) and the National Institute of Food and Agriculture (NIFA), and began moving staff to the Kansas City area. Lately, however, there have been rumblings in the media and from government watchdogs that the move isn’t moving fast enough and staff positions aren’t being filled very quickly. 

But there are always going to be growing pains with a transition of this magnitude. People in the know, like Scott Brown, Ph.D., Associate Extension Professor at the University of Missouri’s Division of Applied Social Sciences and College of Agricultural, Food and Natural Resources, have a different, more optimistic perspective on these developments. Dr. Brown said that although ERS and NIFA are not fully staffed they are making progress. “It’s amazing how well they have done in the middle of a pandemic.” 

For example, as of February 2021, USDA released a report indicating NIFA had 221 employees on board and 122 vacancies. Recruiting is actively underway, and prospects for populating the positions are more than favorable. Consider this: Six premiere  land grant institutions – Kansas State, University of Missouri, Oklahoma State, University of Nebraska, Iowa State, and University of Arkansas – are within 300 miles of the Kansas City metropolitan area. That represents a gusher of ag talent, adds Dr. Brown, as new ag grads, graduate students and ag professors seeking a career apply for jobs with NIFA and ERS. 

In April, the Agricultural Business Council of Kansas City will Dig Deeper into all the ramifications of the USDA’s initiative to relocate ERS and NIFA to the region. 

MoKan NAMA Book Drive to Promote Ag Literacy

The MoKan NAMA Book Drive to promote ag literacy for elementary aged school children is off and running! They have established a list of ag-centric educational books for the drive on Amazon. Check it out and then choose from one of the three convenient donating options:

1. Purchase books and mail them to: Ceva Animal Health, Attn: Jody Donahue, 8735 Rosehill Road, Suite 300, Lenexa, KS 66215.

2. Mail a check with donation to: Woodruff, Attn: Scott Lynn, 331 Southwest Blvd, Kansas City, MO 64108.

3. Make a credit card donation here.

Donations must be received by April 9, 2021.

Latest News & Updates in KC Agriculture - February 2021

Developments

Missouri Governor Mike Parson proclaimed February 20-27, 2021, as National FFA Week in Missouri on behalf of nearly 26,000 members of Missouri FFA. Missouri FFA President Justin Eddy of Columbia received the proclamation on behalf of the 2020-2021 Missouri FFA State Officer team. “Missouri agriculture has a bright future, and you can see that in action through our FFA members,” Gov. Parson said. “Living and working on a farm is one of my greatest honors, and the First Lady and I continue to look to these young leaders to move the agriculture industry forward for generations to come.” For the third year in a row, Gov. Parson drove a John Deere tractor to the State Capitol in honor of the FFA tradition of students driving their tractors to school during National FFA Week. 

The Senate voted 92-7 Tuesday, February 23, 2021 to confirm Tom Vilsack as USDA secretary, his second run at the Cabinet post. The former Iowa governor spent eight years leading the same department for former President Barack Obama’s entire administration. In his testimony, he proposed “building a rural economy based on biomanufacturing” and “turning agricultural waste into a variety of products.” He pledged to work closely with the Environmental Protection Agency to “spur the industry” on biofuels.

The National Dairy FARM Program has published its 2020 Year in Review. Serving as the annual summary of the achievements and program developments of the FARM Program, the Year in Review showcases successes and challenges during a year of change and uncertainty. The Review can be downloaded from the website here, for a printed copy, contact dairyfarm@nmpf.org.

New analysis of EPA data highlights agricultural emissions reduction and the importance of developing new research and technologies to capture more carbon in cropland and pastureland. AFBF’s latest Market Intel also reviews trends in U.S. carbon sequestration as climate-smart farming practices increase. The report reveals that U.S. carbon sinks offset 12% of U.S. greenhouse gas emissions and sequestered 764 million metric tons during 2018. The largest carbon sink involved U.S. forestry lands. More information is available here.

In Kansas, home to about 1.5 million beef cows, ranchers are working around the clock to make sure newborn calves survive and cattle have access to food and water. Matt Teagarden, CEO, Kansas Livestock Association, says the cold weather “definitely refocuses folks” to checking on cattle and finding calves. Source: Agri-Pulse Communications

Farm states are likely to lose more influence in the U.S. House because of population shifts that are expected to result in lost seats across the Midwest as well as in Pennsylvania and New York. The results of the 2020 Census are not expected to be released before March, but analysts expect the states losing seats to include Illinois, Ohio, Michigan and Minnesota. State legislatures, and in some cases independent commissions, are responsible for drawing new districts based on the Census results. In most cases, the lost districts are likely to come out of rural areas. Source: Agri-Pulse Communications.

Lathrop GPM managing partner Cameron Garrison spoke with the Kansas City Business Journal on the first year of the formation of Lathrop GPM and the successes achieved through the combination, including during the COVID-19 pandemic.  Cameron said, “Going through a crisis like that, it brought us [Lathrop and GPM] together tighter, so it moved us forward faster than we thought.”

A survey of more than 3,000 American consumers shows beef is currently chosen about three times more often than plant-based alternatives. But while the plant-based presence in the market remains small, it is growing. The study, funded by the Beef Checkoff and conducted by ag economists Glynn Tonsor, Jayson Lusk and Ted Schroeder, found beef has good consumer perceptions on taste, appearance, price, and on nutrition qualifiers such as protein and iron content. Consumers also perceive beef to be better overall for farmers, consumers, and rural communities. But plant-based alternatives score highest on animal welfare, health and environmental concerns and have better scores than beef for cholesterol, fat and dietary fiber. Consumers of plant-based alternatives are typically younger, have children under the age of 12, have a higher household income, and are Democrats residing in a western state, the study noted.

Exports of U.S. beef and pork experienced a strong finish to the calendar year in December, beating 2019 figures and offering insights into consumer trends around the world and what is yet to come in the new year. According to USDA data analyzed by the U.S. Meat Export Federation, pork exports in 2020 topped the 2019 record by 11%, reaching nearly 3 million metric tons. Value of pork exports also shot up 11% to a record $7.71 billion. Beef exports finished 2020 with annual totals lower than the previous year – down 5% in volume and value – but ended the year with fourth-quarter volume up 4.5% over 2019 figures.  The pork sector set export records in China, Central America, Vietnam and Chile; U.S. beef exports to China and Taiwan set records for the same time period. Exports of U.S. lamb were up 27% by volume but fell 9% in value to $23.8 million.

The Ag Economy Barometer, a monthly measurement of farmer sentiment from Purdue University and the CME Group, dipped seven points in January largely on a decline in the barometer’s Index of Future Expectations. That index has dropped about 19% since October while a similar measurement of current conditions has risen about 12% in the same time period. “The ongoing strength in the Current Conditions Index appears to be driven by the ongoing rally in crop prices, while the deterioration in the Futures Expectations Index seems to be motivated by longer-run concerns about policies that could impact U.S. agriculture in the future,” said Jim Mintert of Purdue University’s Center for Commercial Agriculture.  

Earlier this month Kansas Corn STEM launched a new public library program, aiming to provide Kansas public libraries with new resources based on the book, We Grow Corn! Raising Corn on a Kansas Family Farm. The series follows the book, with six units focusing on growing corn and its many uses. Kansas Corn STEM is supported by Kansas corn farmers through the Kansas Corn Commission. Over the past five years, Kansas Corn STEM has been providing free supplies and training to K-12 teachers. While the “We Grow Corn!” book is being used by K-12 teachers, this series was created specifically for public libraries, making it different than what students would see in the classroom. “The Kansas Corn STEM education team strives to create new programs to help educators. We are excited to expand our efforts beyond the K-12 classroom to the community via public libraries,” said Sharon Thielen, Ph.D. director of education, Kansas Corn. More information available at www.wegrowcorn.com.

People

Ford B. West, 73, of Davidsonville, Maryland, died on Feb. 14 after fighting a courageous 15-year battle with metastatic, castrate resistant, prostate cancer. A veteran of the Vietnam War, he attended North Carolina State University where he earned a Master of Science in Food Science. He began his professional career with the National Canners Association and in 1979, he joined The Fertilizer Institute, later becoming president in 2005. West was with the Fertilizer Institute for 34 years.

Mike Rohlfsen has been promoted to chief commercial officer at TechAccel LLC. Rohlfsen brings deep international agribusiness, agtech, and entrepreneurial expertise to new the role. Prior to joining TechAccel, Rohlfsen served 18 years with Cargill Inc., in a variety of financial, strategic marketing, product and business development positions. Most recently, he founded and led Somaris Global, a Minneapolis-based business development firm working in next-generation agriculture technology. His career has consistently focused on applying new technology spanning the aquaculture and organic food supply chains, sustainable biomass product development and precision agriculture.

TechAccel LLC also promoted Jeff Inman to principal. Inman joined the TechAccel as an Associate on the investments team in January 2020, providing support to business development and due diligence of emerging opportunities. In his new role, he will add deal sourcing, focused areas of strategic relationship outreach, and analysis in valuation and modeling.

Brian Sikes has been named chief operating officer of Cargill. He previously led the company’s global protein and salt enterprise. As part of his new role, Sikes will also serve as a management director on the Cargill board of directors. Sikes joined Cargill in 1991 and has held leadership positions in the protein business in the United States, Canada and Europe. He spent four years leading the protein business in North America, based in Wichita, Kansas. Under his leadership, Sikes drove the global expansion of Cargill’s protein offerings, which include beef, poultry, eggs, seafood, value-add and specialty products, as well as plant-based options and investments in cell-based protein technologies. Sikes is a graduate of Texas Tech University. He is on the executive board of the Greater Wichita Partnership, a hub of collaboration between the public and private sectors.

Bayer has elevated two seasoned leaders and accomplished scientists to the key roles of president of Crop Science North America and head of The Climate Corporation and Digital Farming. Dr. Jacqueline Applegate will assume her new role at Crop Science March 1. Dr. Jeremy Williams will assume his new responsibilities at Climate on March 15. Both will continue to be based in St. Louis. Applegate, who will also join the global Crop Science Executive Leadership Team, will be responsible for the commercial performance of the Crop Science Division in the United States and Canada, including the consumer Roundup business. Williams, who will also join the global Crop Science Executive Leadership Team, will lead Bayer’s digital farming strategy and data science capabilities globally.

Kansas Farm Bureau has hired Joel Leftwich as chief strategy officer, effective March 1. Leftwich most recently served as executive director of the William L. Hudson BVI Workforce Innovation Center, which helps train and employ individuals with visual impairments. Before that, Leftwich spent nearly 20 years in D.C. in various roles. He worked on Capitol Hill as a legislative aide to former Rep. Jim Ryun, R-Kansas., was a longtime staffer for former Sen. Pat Roberts, leading to eventually working as the staff director for the Senate Ag Committee. He also held roles with PepsiCo and DuPont, and was a managing director for the Glover Park Group. Source: Agri-Pulse Communications

Chance Hunley has left the Senate Ag Committee and now serves as a legislative assistant to Rep. Jake LaTurner, R-Kansas. He covers the portfolio for agriculture, natural resources, energy, environment, transportation, immigration, and technology. On the Senate Ag Committee, he was a legislative assistant to former Sen. Pat Roberts, R-Kansas., and covered commodities, crop insurance, conservation, food safety, and livestock issues.

Dustin Johansen, Vice Chairman of the Agricultural Business Council of Kansas City has joined Farm Journal’s national livestock and crop sales to help clients integrate data, research and activation capabilities into marketing strategies. He was previously vice president, ag business development at Osborn Barr Paramore. He is also vice chair of the MoKan NAMA chapter.

Farm Journal has announced several other new hires and promotions at its Lenexa, Kansas, offices: Rebecca Bartels, director of business development, Trust In Food; Emma Bruno, digital and data marketing specialist Jason Hill, senior ad operations specialist; Todd Rowan, sales representative; Nicole Starr, national accounts manager, livestock; Danny White, sales representative, Machinery Pete.

NCBA has tapped Kansas cattle producer Jerry Bohn as its new president. Bohn is a retired lieutenant colonel in the U.S. Army Reserve and has been a part of the cattle industry his entire life. He has also served 34 years as the manager of Pratt Feeders, a commercial cattle feeding operation in Kansas. Don Schiefelbein of Minnesota was named president-elect, and Todd Wilkinson of South Dakota was elected vice president

The House Agriculture Committee is getting seven new Republican members, who represent some of the most productive farming regions in the country. Democrats have yet to release their full roster of committee members, but House Speaker Nancy Pelosi announced late Tuesday that Rep. Jimmy Panetta, D-Calif., would be on the panel again for this Congress. Rep. Tracey Mann, R-Kansas, replaces Sen. Roger Marshall, R-Kansas, who ran for the Senate seat vacated by the retirement of former Senate Ag Committee Chair Pat Roberts. Mann is a former Kansas lieutenant governor and holds a degree in agricultural economics. 

Missouri Corn Growers Association elevated Bradley Schad to chief executive officer, effective March 15. Schad succeeds Gary Marshall, who is retiring after leading the state’s corn industry group for 34 years. Schad currently serves as the senior director of market development and grower engagement. He started with Missouri Corn in 2008, managing programs focused on ethanol and other market opportunities.

Events

Kansas Department of Agriculture reminds Kansans that the month of March has been proclaimed Kansas Agriculture Month. In addition Tuesday, March 23, 2021 has been declared Kansas Agriculture Day.  KDA notes:“Kansas has a history deeply rooted in farming and ranching. That tradition lives strong today as agriculture remains our state’s largest economic driver. Farmers and ranchers in your communities go to work each day to grow the food, fiber and energy that sustains each of us. Agribusinesses that line your main streets deliver critical support to this important sector in Kansas. The Kansas agricultural community is leading the way in a dynamic, complex and growing agriculture industry.”

Registration is open for the 2021 Pork Industry Forum. All pork producers and media are invited to attend the virtual Pork Act Delegate Session being held on Wednesday, March 3, from 2-5 p.m. CST. All attendees must register to attend the session at www.porkindustryforum.com.  Pork producers and media are also invited to register for the March Pork Producer Webinar with featured speaker Mohanbir Sawhney on March 2 at 3 p.m. CST. Sawhney has written seven management books as well as dozens of articles in leading academic journals and publications. Sawhney consults many Fortune 500 businesses, including John Deere, Cisco, Facebook, McDonald’s, Microsoft, and Unilever.

The KC Animal Health Corridor is now accepting applications from early-stage companies to present at the 13th annual Animal Health Summit, held virtually August 24-26, 2021. The Summit is one of the only opportunities in the world for early-stage companies in the animal health and nutrition sectors to present their vision, business plan and technology to potential investors. The selection committee will consider companies that meet the following criteria:

• Seeking $500,000 - $20 million in funding, or strategic partnerships to advance a company’s technology.

• Revenue projections of $20 million within 5-7 years

Applications are due April 5. To apply to present as an emerging company, visit the Animal Health Summit application page . For more information, contact Kimberly Young at young@thinkkc.com.

Ag Innovation Forum: Using the Tools We Have

KANSAS CITY, Mo. (February 18, 2021) – Keynote speaker Carl Casale opened the Council’s 2021 Ag Innovation Forum on an optimistic note with an offbeat message. Casale, a fourth-generation farmer with a twenty-six-year career at Monsanto Company and seven-year stint as CEO of CHS, Inc., and currently a senior agricultural partner at Ospraie Management, LLC, said the agriculture industry needs “to use the tools we already have.” He noted that investment should be directed toward production systems and processes and improving existing tools and technology.  COVID-19 has crafted a new lens through which the world views food production.  A shrinking world population has plenty to eat. The challenge he said is how to produce, process and distribute calories and protein in a way consumers want them. He is positive about entering the post COVID-19 era: “Where there is change, there is opportunity.”

In the Forum’s closing keynote address, John Niemann, president, Protein Ingredients & International Cargill Meat Solutions, said Cargill has doubled down on its message about protein: “For Cargill, protein is about more than nutrition; protein has purpose.”  That theme, Niemann explained, is designed to enable the company to create new skills and capabilities and to exceed expectations of its customers. He illustrated these points noting that consumers didn’t ask Apple to develop its iPhone. They never saw it coming, and now they can’t see how they can live without it. Niemann summed up his remarks saying, “Agriculture is bigger than the farm – it is leveraging technology to improve safety, quality and efficiency with automation, analytics, and digital tools.”

This year’s Innovation Forum featured four panel discussions: Promising Projects in the Pipeline; New to Market Technology; Financing New Initiatives; Searching for Long-Term Solutions.

Promising Projects in the Pipeline 
Nikki Hall, Corteva Agriscience, moderator

• Dr. Bob Hutkins, professor of Food Science & Technology, University of Nebraska, described partnering with companies that produce and sell advanced probiotics and prebiotics. He noted 60% of Americans complain of gastrointestinal issues. At $136 billion a year, digestive healthcare costs, are higher than heart disease.

• Kevin Kimle, director of Agricultural Entrepreneurship Initiative, Iowa State University, talked about creating an investment fund in a university setting for ag startups.

• Dr. Jared Decker, associate professor of Animal Science & Wurdack Chair of Animal Genomics, University of Missouri, said in the age of genomics, phenotyping is key. “We don’t need more data, we need more of the right data.” 

New to Market Technology
Gary Wheeler, Missouri Soybean Association, moderator

• Matt Crisp, CEO, Benson Hill, focused “on empowering breeders, farmers, ingredient and food manufacturers, retailers and consumers to develop a better food system from plant to plate.”

• Karsten Temme, CEO & Co-Founder, PivotBio, detailed how his company makes microbes that allows food crop growers to produce their own nitrogen, replacing nitrogen fertilizer.

• Naeem Zafar, CEO, TeleSense, noted that “the quality of crops never gets better once they are harvested,” which is why his company has developed sensing technology to reduce spoilage in stored grain. 

Financing New Initiatives
Chris Simpson, Polsinelli PC, moderator

• Renee Vassilos, director of Agriculture Innovation, The Nature Conservancy, said her group was seeing a lot of new players that want to invest in the agriculture space, citing such giants as Microsoft and Google, as well as industry incumbents like John Deere and Syngenta. She added ag needs new tools and innovation to get to where it needs to be.

• Kerryann Kocher, CEO, Vytelle, called it a “rapid explosion of companies” looking at agriculture as an opportunity to invest. She noted an inflow of “coastal money” into the farm belt and described coastal investors as “experienced and serious” about the ag business.  

• Spencer Stensrude, executive director, Ag Ventures Alliance, mentioned that ag tech does not have enough dollars coming into the space, and the money that does come takes its time. Established farming operations and tech innovators resent having to spend up to half a year away from businesses to court investors.  He stressed the ag industry needs a bigger population of investment groups willing to bid against others to partner with ag tech developers. “That’ll move investors to move quickly to a close.”   

Sustainability
Gardner Hatch, Woodruff, moderator

• David Darr, senior vice president, sustainability officer, Dairy Farmers of America, described DFA’s sustainability goals: 30% greenhouse gas reduction through the science-based target initiatives by 2030; committed to industry-wide goals for the U.S. dairy industry to be net zero on greenhouse gas emissions by 2050.

• Dr. Jason Clay, senior vice president- markets, World Wildlife Fund, warned that “whatever is sustainable today, won’t be tomorrow.” The challenge for farmers is to produce more with less land, less water and less pollution. He remarked that agriculture has to tell a better story of its achievements so far in improving sustainability. He pointed out that positive actions like regenerative agriculture have to be more than a practice; it has to have results.

TechAccel was lead sponsor of this year’s Ag Innovation Forum, and two of its executives presided over the event as masters of ceremonies. Tony Simpson, head of business development, welcomed attendees hinting that the Forum would offer a look at what the Post COVID-19 era would look like.  Simpson said the need for good technology and innovation to feed and care for both people and animals has never been more important. “It is incumbent on us in the ag industry to band together like this,” he said, “to talk about new technology so we can stay on the cutting edge of innovation.”

TechAccel’s chief commercial officer Mike Rohlfsen opened the afternoon session on financing and investment, remarking about how bifurcated the world has become overall, but specifically in how people decide what they want to purchase and what they want to eat. The “haves” can afford to consume food via all sorts of production methods, preparation, packaging and so forth – and these preferences can drive innovation. “However,” he said, “half the world simply wants to have more to eat and have a better mix of calories.” The ag industry needs to take into account all of these factors as it goes forward in advancing technology. Rohlfsen suggested that relying on models that look too far into the future can be daunting to the point of creating panic that could stifle ingenuity. But not for long. He stressed: “I never bet against ingenuity.” 

Ag Looks Ahead at Key Legal Issues

(L to R) Eric Lausten, Curt Blades, Andrea Sellers

As more details emerge about how President Biden will handle regulations that were loosened while Trump occupied the White House, Bob Thompson, partner at Bryan Cave Leighton Paisner, moderated a discussion with three legal specialists who began to unpack some of the implications re-regulation might have in store for the ag industry.  The Council’s annual legal update was sponsored by Bryan Cave Leighton Paisner and featured Eric Lausten, principal, Husch Blackwell Strategies, Curt Blades, senior VP for agriculture and forestry at the Association of Equipment Manufacturers, and Andrea Sellers, co-chair agribusiness at Stinson law firm. 

AEM’s Blades said farmers have always had and will continue to have the ability to repair their own equipment. “Equipment manufactures stand solid in their support of a farmer’s right to repair their equipment [but] stand equally opposed to the modification of equipment that could impact safety, regulatory compliance or infringe on intellectual property.” The scope of the legislation, he pointed out,  is typically broad and covers personal and business technology devices, home appliances, medical equipment, heavy off-highway equipment, boats, snowmobiles, ATVs, and more.

AEM is opposed to new “Right to Repair” legislation, Blades explained, because it is unnecessary legislation. It’s AEM’s position that it puts farmer safety at risk, provide avenues to bypass regulation, disregards aspects of intellectual property, and could make farmers unknowing pawns in a larger digital special interest agenda. The issue is complex. More information is available from AEM and the Equipment Dealers Association.

Andrea Sellers focused her remarks on intellectual property rights applicable to seed, contracts relating to R&D and contracts relating to use and distribution. She noted that “protectable innovations” included GMO plants, plants produced by traditional breeding techniques and germplasm with restricted access. Sellers said disputes over IP rights often emerge over raw data when ‘payers’ claim rights to innovation breakthroughs because of their investment or sponsorship. They don’t – so innovation and investment parties have to work out arrangements going into the research and development.

In his “Transition 2021,” Eric Lausten, principal for Husch Blackwell Strategies based in Washington, D.C., provided an extensive analysis of the political impact the Biden administration will likely have on agricultural policy.  He said the president will seek a centrist approach and bipartisanship where possible. “But recent events and each party’s vocal wings are apt to disrupt.” Lausten pointed out that USDA Secretary Vilsack’s appointment could be a sore spot for the progressive Democrats who see Sec. Vilsack as maybe too close to corporate agriculture.  On the other hand “rural economic development is a priority for House Dem Whip (and kingmaker) Jim Clyburn.”

Lausten’s presentation is thorough, exhaustive and enlightening. Copies of his presentation are available from the Council. Contact Erica Venancio for further information.