December 30, 2023
Spotlight Story
Spotlight – The World Economic Forum discusses seven innovative solutions for fighting food waste. Check out the story, here.
Industry Updates
David Hula broke the world corn record with a yield of 623.8 bushels per acre on his Charles City, Virginia, farm. This beat the previous record of 616 bushels per acre he set in 2019. The 2023 record was set with Pioneer's P14830VYHR hybrid. This new hybrid is from a freshman class of corn products from the company. [link]
Russia has no interest in extending the Black Sea grain deal, the RIA news agency reported, citing Russia's agriculture minister Dmitry Patrushev. Russia withdrew in July from the deal which had allowed Ukraine to safely export grain from its ports. Russia says it quit the deal because the arrangement was not delivering grain to the poorest countries, and because it still faces barriers to its own exports of grain and fertilizer. [link]
A research team at the Korea Electrotechnology Research Institute (KERI) has developed a breakthrough technology that effectively eliminates pests without the use of pesticides and protects farms from soil diseases by using microwave heating, the core mechanism of microwave ovens. Traveling down into the ground, microwaves selectively heat the moisture to 60-100 °C. Given that moisture makes up 10-30% of the soil, and that most pests live near the roots of crops and are heat-vulnerable (60 °C or more), KERI’s technology is expected to be highly effective in sterilization. [link]
The number of U.S. farm acres owned by foreign entities grew more than 8% in 2022, though the 43.4 million acres of foreign-owned forest and farmland is just 3.4% of the country's agricultural land, according to a U.S. government report. Foreign entities bought 3.4 million acres of U.S. farmland in 2022, with the biggest increases in Colorado, Alabama and Michigan. Canada remains the largest foreign investor, accounting for 32% of the acres, much of which are forest in Maine. China's holdings, a primary concern of lawmakers who want to restrict foreign ownership of farms, account for less than 1% of foreign-owned acres at 350,000, a slight decrease from 2021. [link]
Whole Foods Market announced a new pollinator health policy aimed at reducing the use of toxic pesticides in its fruit and vegetable supply chain. The policy seeks to help protect bees and other pollinators that are essential to one in three bites of food. Whole Foods has joined a growing trend in the grocery retail industry addressing threats to biodiversity by becoming the thirteenth company on Friends of the Earth’s Bee-Friendly Retailer Scorecard to establish a pollinator policy addressing toxic pesticides in its supply chain. Whole Foods’ policy requires fresh produce and floral suppliers to adopt Integrated Pest Management (IPM) practices by 2025. Suppliers may work with designated third-party certifications with meaningful IPM criteria or submit a legal attestation confirming that they adhere to the requirements of the policy. [link]
The Food Systems Countdown to 2030 Initiative (FSCI) has published new research that provides the first science-based monitoring to guide decision makers as they seek wholesale transformation of the global agriculture and food system. The research aims to fill data gaps inherent in the UN's Food Systems Summit by identifying an indicator framework composed of 50 metrics that monitor agriculture and food systems at a global level. Following this first global baseline, the FSCI will track agriculture and food systems annually until 2030, updating the framework as needed where new indicators or better data emerge. The overarching objective is that all people – especially the most vulnerable – have equitable access to healthy diets through sustainable and resilient agriculture and food systems. [link]
A new study tests whether hemp is an effective plant for intercropping between wine grapes to increase soil health and potentially add another cash crop to vineyards. Vintners planted hemp with other cover crops on a vineyard in New Zealand, and found that while hemp was a robust grower, it didn’t compete with grape vines for water, even in dry conditions. Surprisingly, the wine made from grapes grown near hemp had a delicious, complex flavor profile, but researchers say more tests are needed to see if hemp was the driving factor. [link]
The California Department of Food and Agriculture's Office of Environmental Farming and Innovation (OEFI) has announced $9.2 million in grant funding to six research projects under the Livestock Enteric Methane Emission Reduction Research Program (LEMER-RP). These funds, allocated by the Budget Act of 2022, support research that evaluates additives and dietary modifications shown to reduce enteric methane emissions in the dairy and livestock sectors. In 2020, dairy and livestock enteric methane emissions accounted for more than 11 million metric tons of carbon dioxide equivalent (MMTCO2e) emissions per year in California, representing 35 percent of the state’s agriculture and forestry sector greenhouse gases. Enteric methane production is a natural part of the digestive process for ruminant animals like cattle, goats, and sheep, and it is belched into the atmosphere. [link]
The Ohio Department of Agriculture has announced nine land trusts, seven counties or townships, and 25 Soil and Water Conservation Districts will receive funding to help preserve farmland across the state. These organizations will receive allocations from the Clean Ohio Fund to select, close and monitor easements under the Local Agricultural Easement Purchase Program (LAEPP). Ohio landowners interested in selling an agricultural easement on their farms can fill out an application with their LAEPP sponsor organization. A total of $6 million will be made available in this round of funding. [link]
After weeks of hot and dry weather in Mato Grosso, Brazil, analysts are starting to significantly curb soybean yield outlooks. December monsoon rains were to be crucial in replenishing soil moisture but have thus far failed to materialize in any impactful way. Week-over-week, Center-West Brazil has seen temperatures significantly above normal and rainfall significantly below normal. December will end up being one of the hottest and driest Decembers in 30-plus years for Center-West Brazil, including important soybean-growing Mato Grosso. [link]
It is “very unlikely” that the EU will reach its target of expanding the share of organic farming to at least 25% of EU agricultural land by 2030, according to a new report from the European Environment Agency (EEA). The share of EU agricultural land that is farmed organically has been continuously increasing since 2012 and currently stands at 9.9% or 16 million ha. The current policy measures and short and medium-term decrease in demand for organics, due to unfavorable economic conditions, point to a share below 25% in 2030, the EEA said. [link]
A new study released by The Breakthrough Institute on beef operations from 16 countries shows that pasture-finished operations produce 20% more carbon than cattle finished on grain. The findings challenge the prevailing narrative that grass-fed operations are inherently more environmentally friendly. When accounting for soil carbon sequestration and carbon opportunity cost, the total carbon footprint of grass-fed operations is a staggering 42% higher. [link]
A new app created by Farm Journal's Trust in Food and AgWeb helps growers wade through the USDA's Partnerships for Climate-Smart Commodities program and find the right grant projects for their farms and ranches. The new app pilot, the Climate-Smart Opportunity Navigator, seeks to remove the paperwork clutter and match farms and ranches with the right Climate-Smart Commodity grant project in minutes. Harnessing USDA data, producers can input their operation basics — such as location, commodities produced, and production practices and interests — and be matched with one or more of the Climate-Smart Commodities projects that fit their individual specs. [link]
In Case You Missed It…
Broadly, it was a tough year for food and agribusiness stocks in the U.S. Some of the largest packaged food manufacturers were down 20%-30%, on average, in 2023. Fertilizer companies were down across the board, with declines of 15%-40%, on average. Agribusiness and ingredient companies were a mixed bag; ADM declined 22% in 2023 while The Andersons increased by 65% for the year. Commodity prices were a mixed bag as well; lean hogs declined by 28% in 2023 while cocoa prices increased by over 60% this year.