November 11, 2023

Spotlight Story

A new article from McKinsey discusses how to strike a balance and catalyze a sustainable land-use transition. Check it out, here.

Industry Updates

Farm machinery manufacturers Agco, CNH Industrial, and Deere have been expanding their lines of retrofit products to turn equipment already in service into smart machines that can plant seeds, spray crops and perform other tasks with more precision and automation. Equipment makers’ emphasis on lower-cost retrofits comes as farmers’ incomes are under pressure from sliding commodity markets. Prices for corn and wheat futures are down 29% since the start of the year, while soybean prices have fallen 14%. [link]

Although results from the combine are positive, the pace of the northern Indiana corn harvest has been slow at just 40% harvested, according to one estimate. Enough corn remains on fields such that harvest operations could take the entire month of November. Delays have been caused by high intermittent rains, high moisture levels, and a slow dry down. The northern Indiana bean harvest is roughly 90% complete, with yields "respectable" this year. [link]

Consumer distrust of large food manufacturers will be a challenge for the industry moving forward, according to a Corbion global survey. The survey found a loss of trust in large food manufacturers, especially among North American respondents. Food recalls, a perceived lack of transparency and a distrust of artificial ingredients all have contributed to the sentiment, Corbion found. In North America, products perceived as clean label with ingredients consumers can understand are trending and help alleviate the distrust. More consumers are seeking natural products made without artificial ingredients, chemicals or other unknowns. European consumers shared a need for quality nutrition that’s affordable, noting that while vegetarian and healthy diets are the ethical choice, they remain cost prohibitive. In Asia, consumers express a desire for “quality food” with “natural ingredients” they can taste, while South American respondents wanted foods that provide pleasure and indulgence, while still being healthy. Across all regions of the globe, Corbion’s survey found consumers additionally share a strong desire to better society and the planet. More consumers, especially younger generations, are seeking brands with a greater commitment to sustainability. [link] 

Nutrien Ltd. has released a new study detailing and quantifying the perception gaps between farmers and consumers in North America on issues like sustainability, technology and land usage. The findings revealed the largest perception gaps between farmers and consumers are around topics related to environmental stewardship and industry advancement. For example, farmers were significantly more likely than consumers to agree with statements related to the responsible use of crop inputs, chemical use, environmental progress, farming careers, and soil quality. Topics related to societal support for farmers reveal much closer agreement between the two groups. The study also found that younger consumers have the lowest interest and trust in agriculture. [link]

Commercializing the production of synthetic dietary fats could relieve pressure on a global agricultural sector that is struggling to decarbonize, a new study has found, replacing dominant oil crops like soy and oil palm. The widespread manufacture of farm-free food could yield numerous environmental and societal benefits — enabling people to “eat our way” out of a burgeoning climate crisis, according to the study published this week in Nature Sustainability. Some benefits would include reductions in water use and pollution, greater local control over food production and decreases in weather-related shortage risks, reduced need for low-paying and physically taxing labor, and a return of land to its natural state. Although synthetically produced ingredients may be unappealing to consumers, they may be less concerned with fats produced in this manner relative to carbohydrates or proteins. Agriculturally derived fats generate about 1 to 3 grams of emitted carbon dioxide per thousand calories, the authors determined. [link]

Major chemical companies and grassroots agriculture groups are locked in a dispute over the use of next-generation genetically modified organisms (GMOs) in farming, as lawmakers debate the European Commission’s controversial proposal to widely deregulate new genomic techniques (NGTs). The proposal was discussed by European Parliament (EP) members of the Agriculture and Environment committees on October 26 and was addressed again on November 7. Slow Food and Friends of the Earth Europe have urged MEPs to reject the proposal and keep new GMOs regulated under the current EU GMO rules. They warn that deregulation would threaten nature and the rights of consumers, farmers and breeders to transparency. However, KWS, BASF and Bayer note that NGTs can actually boost environmental sustainability in farming and alleviate food security fears while the transparency concerns can be overcome. The far-reaching deregulation proposal suggests excluding new GMO plants, such as products from CRISPR-Cas9, from the current legal framework, which Slow Food suggests would exempt these NGTs from labeling requirements, safety checks and traceability processes. [link]

Social media users believe reducing and eliminating meat intake is ineffective in addressing climate change and reported low willingness to engage in either action, according to a new study from La Trobe University. The study, published in Sustainability, asked more than 700 Facebook account users, between the ages of 18 to 84, about their beliefs on climate change, the impact of meat consumption on the environment and meat intake. It's estimated that 80 billion animals a year are raised and killed for food worldwide and, according to the World Economic Forum, Australians are among the highest meat eaters in the world. [link]

Organizations led by Carbon180 and the Savanna Institute released a set of recommendations for policymakers this week, focused on agroforestry as a solution for resilient agriculture in the upcoming farm bill. Coalition leaders say agroforestry systems, which integrate trees and other perennial crops into farms and ranches, have immense potential to transform US agriculture – boosting farm economies, biodiversity, and resilience to extreme weather while sinking and storing more carbon from the atmosphere. The policy paper provides recommendations for each farm bill title that could support more farmers and ranchers in integrating trees into their agricultural systems, plus includes stories from practitioners in Arkansas, California, Illinois, Iowa, Minnesota, New York, Oregon, and Wisconsin. [link]

New research shows that if acreage locations of the USDA's Conservation Reserve Program (CRP) were selected at random, the program would store more carbon in the soil relative to CRP acres in their current locations. As of 2020, the locations of CRP acres likely store 9 percent less carbon in soil than they would if located at random. The reason why the CRP is storing less carbon in soil than if the acres were placed randomly has to do with where program acres are concentrated. The Southern Great Plains have a disproportionately high amount of CRP acres, compared to the rest of the country, and the “coarse-textured soils” in this area store carbon poorly. The research suggests that, to store the most carbon in soil, CRP acres should be concentrated in North Central states like Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, Nebraska and Ohio, and land along the Mississippi River. [link]

The Small Producer Initiative (SPI) at Texas State University has received a $750,000 grant from the U.S. Department of Agriculture’s 2501 Program along with a $400,000 cooperative agreement with USDA’s Natural Resource Conservation Service (NRCS) in support of regenerative agriculture outreach initiatives. The awards will allow SPI to continue to provide small, urban, minority and veteran farmers and ranchers with regenerative ranching and soil health demonstrations on farms and ranches throughout Texas. The grants will also enable SPI to provide beekeeping training, financial literacy training and assist NRCS with engaging new and small farmers. [link]

McCain Foods USA was awarded $6.9 million in funding through the U.S. Department of Agriculture (USDA)'s Regional Conservation Partnership Program (RCPP), which will be used as part of an "Improving Soil Health in Potato Supply Chains" project. Under that project, McCain Foods USA and its partners, Campbell Soup Company and the Soil Health Institute (SHI), will help potato farmers implement soil health and climate-smart agriculture practices and systems on more than 6,000 acres in Wisconsin and Maine. The project will use the USDA funding to scale up an existing soil health technical assistance partnership, supporting sustainable farming that prioritizes soil health through residue and tillage management, cover cropping, nutrient management, soil carbon amendment, and pest management. Growers participating in the program will form peer coaching cohorts to build their conservation plans with support from SHI. [link]

Seventeen major food manufacturers earned an average grade of F for their lack of progress in reducing pesticides in the products they sell, according to a new analysis by As You Sow. General Mills, which earned a B in 2021, was in this year’s top spot with a C rating. Archer Daniels Midland Co., also known as ADM, and PepsiCo Inc. received a C minus; Conagra Brands Inc. and Campbell Soup Company received a D score, while Lamb Weston Holdings Inc. and Nestle received a D minus. The rest of the companies received an F: B&G Foods Inc., Cargill, Danone S.A., Del Monte Pacific Ltd., General Mills Inc., Kellanova, The Kraft Heinz Company, Mars Incorporated, Mondelez International Inc., Post Holdings Inc., and The J. M. Smucker Co. [link]

China’s state-run food group COFCO International and Modern Farming Group, which makes milk products, have signed an agreement “to supply and accept soybeans” coming from sustainable areas of production in Brazil, the world’s top supplier of the oilseed. According to a statement from the World Economic Forum’s Tropical Forest Alliance, the deal is valued at more than $30 million and marks the first soybean order in China under a “clear deforestation- and conversion-free (DCF) clause.” The agreement is part of efforts to curb commodity export-driven deforestation in global soybeans, beef, palm oil and pulp and paper markets. [link]

Perdue believes it has a clever way to combat criticism about chicken production: sell humans practically the same food it feeds its chickens. The company has created “Chix Mix,” a new snack that is “made from most of the same ingredients” that’s in the company’s chicken feed. The stunt promotes Perdue’s vegetarian and antibiotic-free chicken feed, based on consumers becoming “increasingly interested in the health and quality of the foods they eat,” according to the company. The snack contains corn, wheat puffs and edamame, but with a dash of barbecue spices “just for humans.” [link]

New Zealand’s Fonterra Co-Operative Group wants its nearly 8,500 farms to reduce emissions by 30% by 2030, the world’s largest dairy exporter said this week. New Zealand, home to 5 million people, has about 10 million cattle and 26 million sheep and nearly half its total greenhouse gas emissions come from agriculture, mainly methane. Fonterra said that through improving farm practices, novel technologies and offsetting emissions by planting it expected to reduce emissions by about 22%. A further 8% reduction from a 2018 baseline is expected to come from not having to take into account, by 2030, emissions created by land being converted into dairy farms early this century. [link]

Adopting regenerative agriculture practices may boost consumer perception, strengthen trust and increase purchase consideration for sustainability-minded consumers, according to a new ADM report. “Farming for the Future: The State of Regenerative Agriculture Program Adoption,” is based on survey data from both consumers and consumer product and retail decision-makers obtained through ADM’s proprietary consumer insights platform. After learning more about regenerative agriculture, 73% of consumers agreed they would be more likely to trust retailers and brands that implement regenerative agriculture programs, and 72% agreed that they would be more likely to purchase from them. [link]

In Case You Missed It…

In mid-October, General Mills announced that it was collaborating with Walmart and Sam’s Club to advance the adoption of regenerative agriculture on 600,000 acres in the United States by 2030. Check out the announcement, here.