Archived Content

Protect Yourself: Lessons from Grain Elevator Fraud

Wed, 05 Oct 2022 18:44:12 GMT

Last week the Ashby Farmers Cooperative Elevator Co. abruptly shut down after its board discovered the elevator manager had allegedly siphoned $2 million from the grain elevator. The former manager, Jerry Hennessey, is now on the run and co-op leaders are evaluating the situation, seeking a new owner and exploring the legal ramifications.

Initial investigations show Hennessey had been pocketing funds while inflating grain inventories from the single-location grain co-op for at least a decade. He used the money for hunting trips, taxidermy and paying his personal Cabela’s credit card.

This case resurfaces memories of other similar incidents of embezzlement, fraud and Ponzi schemes occurring with grain buyers. Such as when Missouri grain dealer Cathy Gieseker cheated farmers out of more than $27 million in grain sales back in 2010. Or when Illinois farmer Robert James Printz and Timothy Boerma, a former manager of Towanda Grain Company, defrauded the central Illinois elevator in 2014.

Other examples can be found in Wisconsin , Nebraska and South Dakota (just to name a few).

These cases serve as reminders of why farmers should exercise due diligence when working with grain buyers, experts say.

Exercise the role of the board.

Board seats for grain elevators or co-ops are not honorary positions, says Erik Ahlgren, attorney with Ahlgren Law Office in Fergus Falls, Minn., who was hired by the Ashby Farmers Cooperative Elevator Co.

“You act as an overseer for the management,” he says. “The management doesn’t run the board; the board oversees the management.”

Since elevators tend to have small staffs, Ahlgren says, the board needs to ensure there are multiple internal controls in place to guard against embezzlement. This can as simple as one person reviewing invoices and a different person writing the checks.

“If I can write checks without anyone overseeing, then it is really easy to write a check to a taxidermist,” says Ahlgren, in reference to Ashby case.

Get grain contracts in writing, always.

Bona fide grain deals that involve some type of forward pricing will require a written contract between the dealer and the farmer, says Kevin McNew, Farmers Business Network’s chief economist and former president of GeoGrain.

“Each state regulates these differently, but as a general rule, if you are making a grain deal for something other than spot delivery, you should have it in writing,” says McNew, who was slated to be an expert witness in the Gieseker trial . A general rule of thumb, he says, is if you are making a grain deal for something other than spot delivery, you should have it in writing.

Review scale tickets and settlement sheets.

Don’t rely on scale tickets for the terms of your deal with the buyer; that’s the purpose of the settlement sheet, McNew explains.

“So, while the scale ticket is a document showing ownership transference and weight of the load, the settlement sheet is the key document that will show the payment on those bushels,” he says. “Whether you had a previous contract with an agreed upon price or whether you have no outstanding contract, so the load is given a spot price, this will all be transparent in the settlement sheet.”

Know the other party.

Nearly all states have grain-dealer laws that require licensing for entities buying grain directly from farmers, McNew says. Each state is different, but grain dealers must post bonds, go through annual audits and meet certain financial solvency requirements.

But, these requirements are generally inadequate to completely insure farmers if the buyer goes bankrupt.

“Whenever you are doing deals with a third party, it is important to use good judgement in the deals you make,” he says. “No laws, rules or regulations will completely protect you from bad business practices of those you trade with.”

Beware the “rolling hedge.”

“This fictitious instrument allows farmers to perpetually ratchet up their price on a market rally but never see their price fall if the market turns south,” McNews says. “It’s like hitting the lottery, giving the farmer the right to the highest price ever printed on the board without any downside risk or cost. The truth is no business would ever back such a one-sided contract.”

If you see something strange, speak up!

Remember the Transportation Security Administration traveler advisory: If you see something suspicious—report it.

McNew says in the case of grain fraud, it seems more onerous on grain buyers: If you see suspicious activities by your grain suppliers, you better report them, otherwise you might find yourself with a massive legal bill.

Canadian Company Enters U.S. With New High-Speed Planter

Wed, 21 Sep 2022 02:14:32 GMT

Over the years, planter manufacturers and agronomists have preached to farmers about going slow when planting corn so even emergence and picket-fence stands result.

That’s still good advice for using most planters, but some companies with high-speed planters are turning that sermon on its head.

The latest is the Canada-based company, Väderstad Sales Inc. The company is moving into the U.S. this year with the introduction of its high-speed planter Tempo L. The planter is available with 12, 16, 18 or 24-row units, according to Larry Wieler, CEO.

Wieler reports that the Tempo L planter offers a unique feature in the marketplace, a new way of delivering seed into the seed furrow, using air pressure.

“We don’t rely on gravity or felts or any friction; we just use clean air power,” he says. “Because we control the seed, if you’re on an uphill or downhill grade or in bumpy conditions, you don’t lose control of the seed and the planter isn’t affected by those changing ground conditions. So, you keep precision regardless of the conditions you are in,” he adds.

In most scenarios, Wieler says he anticipates farmers will plant with the Tempo L at a speed of about 10 mph. But that isn’t the planter’s top range.

“Two years ago we did a race, and we averaged 12 miles an hour and did 1,250 acres of corn in 24 hours with a 16-row planter,” Wieler says. “We don’t recommend everybody to go that fast, but it’s nice to know that you can if you have to.”

Farmers can get more information on the Tempo L availability and pricing at www.vaderstad.com/en/ .

What's That Clanging in My Combine? Diagnosing Not-So-Funny Noises

Tue, 20 Sep 2022 05:02:41 GMT

You’re running your combine and hear the following sounds. Can you diagnose the cause?

The Sound: A “bam!” or “pop!” when engaging the separator or unloading system--followed by slow shaft speed warning buzzers going off in the cab.

The Cause: This sound is often the result of a shear bolt breaking on an auger or belt drive. Identify why the shear bolt broke before replacing it. If there is no obvious clog, slug, plug or obstruction to cause the shear bolt to break frequently, be suspicious that the holes in the hub or pulley are egged-out with enough freeplay to shear the bolt during normal operation.

The Sound: Rapid-fire rattling, the smell of burning rubber--and slow shaft speed warning buzzers going off.

The Cause: The rattle of a slip clutch is a familiar warning that some belt, conveyor, auger or other system is overloaded. Determine the cause of the overload. Don’t give up until you find the cause. Unless severely worn, slip clutches don’t lie.

The Sound: An increasing odor of burning rubber accompanied by a “whap-whap-whap” sound.

The Cause: It’s never a good thing to smell burning rubber on a combine because it’s usually from an overworked, over-heated drive belt. If the odor is accompanied by a “whap-whap-whap” sound, it means the belt has begun to de-laminate and strands of the belt are flailing against nearby machinery. Ignore the smell and sound long enough, and the sound of a slip clutch rattling will soon be added to the mechanical symphony.

The Sound: A clang-clang-grinding sound that’s only evident when the combine is running empty on end-rows.

The Cause: Augers with failed bearings make a clanging sound when they hit their housings. They may run silent when full of grain, but get noisy on end-rows when the combine empties out. Any unusual noises that appear on end-rows or when combines are running empty suggest significant problems that need to be diagnosed.

And finally, here’s a noise I heard in a combine cab that only took a few seconds to figure out. I was riding with the operator, and kept hearing a faint voice saying, “Hello? Hello?” There was a brief silence then a string of faint profanity, as the operator got cussed out for accidentally “butt dialing” his best friend.

When to Use Soybean Inoculant

Mon, 08 Nov 2021 20:25:37 GMT

The right inoculant helps nitrogen fixation, but only if used correctly

Soybeans fix nitrogen, everyone knows that, but did you know soil bacteria are key partners in the process? Rhizobia, the soil bacteria in question, form a symbiotic relationship with the soybeans to create nodules and fix nitrogen all season long.

But sometimes soil might not have enough rhizobia for your soybeans. In that case, a soybean inoculant could help add beneficial bacteria back to the soil. Discover what soil, weather and rotation gives you the most bang for your inoculant buck.

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Rhizobia, the soil bacteria important to nitrogen fixation in soybeans, sometimes need help from inoculant.

“If you use inoculant in a field that hasn’t had soybeans for three to four years, you’ll have a greater response [than one that had them more recently],” says Jim Pullins, marketing manager for Verdesian Life Sciences seed treatments and inoculants.

In years without soybeans, rhizobia cannot feed or reproduce as well. In this case, levels are often below what soybeans prefer. Adding them back through inoculant can produce more nodulation.

When soil pH is greater than 8 or less than 5.8, inoculants can be added, says Justin Clark, technical market specialist with BASF. Bacteria naturally in the soil struggle to survive in those pH extremes and you can use inoculant to replenish their populations.

Fields with poor drainage or large pockets that held standing water the previous year are great candidates for inoculant. Renew rhizobia populations in especially damaged fields or spot treat if you don’t want the expense of inoculating the entire field.

On the other hand, extremely dry areas or sandy soils have low rhizobia survival rates, Clark says. Fields with organic matter of 1% or less have low bacterial activity and might be worth treating.

“Inoculant needs to be used anywhere a fumigant has been applied,” Clark adds. The fumigant kills whatever is living in the soil—the bad with the good.

“Using inoculant generally provides a 2% to 3% yield advantage,” Pullins says. In some cases, where soil is poor or bacterial levels are low, he has even seen yields double from inoculant use.

Testing averages a 4:1 return on investment for inoculant, or at least a 2 bu. per acre advantage. “The technology is usually less than $5 per acre,” Pullins says. “It can change depending on geography and seeding rate.”

Careful Considerations When Handling Inoculants

Since inoculants use living organisms (bacteria)they’re more susceptible to death during storage and application. Ensure whoever applies your seed treatment inoculant or stores your in-furrow treatment doesn’t kill the bacteria before you can use them.

“One thing that’s important to realize is not only the benefits of inoculants, but also the watch outs,” says Justin Clark, technical market specialist with BASF. Here are a few reminders he says are important this year and every year:

Make sure to follow mixing directions. Don’t use chlorinated water with application. The chlorine will kill the bacteria.
Watch storage temperatures. Aim for between 44°F and 77°F, not too hot or too cold.
Store the product and its packaging away from direct sunlight.
Make sure the product doesn’t freeze, as that kills rhizobia bacteria.
Don’t treat frozen seed.

4 Reasons Your Soybeans Turned Yellow

Mon, 08 Nov 2021 20:18:47 GMT

Yellow soybeans? That probably isn’t a good sign. What’s happening, exactly?

Dorivar Ruiz Diaz and Ignacio Ciampitti, Extension specialists with Kansas State University, recently discussed four potential culprits in a recent edition of K-State’s “Extension Agronomy eUpdate” newsletter. Here’s what may be happening in those particular fields.

1. Nitrogen deficiency. This may be due to a delay in rhizobial nodule development because of extreme wet, dry or hot conditions. Check lower leaves – if they’re pale green or chlorotic, N deficiency may be the reason. Soybeans that are double-cropped after wheat are also susceptible, and even hail-damaged soybeans are at risk if enough foliage was injured.

2. Iron chlorosis. If soils are overly saturated, temporary symptoms of iron chlorosis is a potential result. Topmost leaves will turn yellow while veins remain green. Highly alkaline pH soils are most susceptible.

3. Potassium deficiency. Unlike iron deficiency, K deficiency is more common later into the season. Look for irregular yellow mottling around leaflet margins. It’s a problem most common when soils are too wet or too dry. Good root growth will solve these problems, unless there’s a true K deficiency.

4. Rooting restrictions. Any number of issues – including wet or dry soil, compaction problems, or even root insects and diseases – will adversely affect growth and could lead to yellowing. “With a restricted root system, the growing plant can’t access the nutrients it needs to make more leaves,” the researchers note. “As a result, nutrient deficiencies can show up in fields where you [otherwise] might not expect them based on a typical soil test.”

Click here for more information about these potential problems.

Fine-Tune Your Soybean Seeding Rates

Mon, 08 Nov 2021 19:28:16 GMT

Using the right seeding rate for planting conditions can help you boost yields and profits.

By Mike Staton, Michigan State University Extension

Numerous soybean seeding rate studies have been conducted in the United States. These trials have shown that soybean plants have a tremendous ability to compensate for a wide range of planting populations. The yield per acre remains relatively constant across population. This is because the number of seeds produced per plant is inversely related to the number of plants per acre.

Given the above information, what is the optimum soybean seeding rate? In general, most agronomists agree that 100,000 relatively uniformly spaced plants at harvest will produce the maximum economic return under most conditions. This could justifiably be increased to 120,000 plants per acre to build in a buffer for adverse conditions and to increase peace of mind. In Northern Michigan where maturity group I varieties are planted, the target harvest populations should be between 125,000 and 140,000 plants per acre.

Higher planting populations are generally recommended under the following conditions:

Early planting (before May 1)
Untilled soil
Late planting dates (after June 15)
Low productivity soils
Planting with a drill

Soybean seeding rates should be reduced to target a harvest population of 100,000 plants per acre in fields having a history of white mold or where excessive plant height or lodging have occurred in the past.

The next question is how many seeds per acre should be planted to end up with the desired harvest population? Consider factors such as seed quality, soil conditions, planting date, weather conditions, planting equipment and seed treatments as these can impact soybean germination and emergence.

The following formula is helpful for calculating soybean seeding rates.

Target Plant Population at Harvest
—————————————————————————————— = Seeding Rate
(Warm Germination Percent ÷ 100) x (Seed Emergence Percent ÷ 100)

For example, what seeding rate should be used if we want to end up with 120,000 plants per acre at harvest, the warm germination test is listed as 90 percent on the seed tag and soil conditions and weather conditions are adequate to achieve 90 percent emergence.

120,000 plants per acre at harvest
—————————————————————————- = 148,148 seeds per acre
(90 ÷ 100) x (90 ÷ 100)

Emerson Nafziger and Dennis Bowman at the University of Illinois have incorporated the formula into an excellent online Soybean Seeding Rate Calculator . Neither the online calculator nor the formula presented above adjust planting rates for the type of planting equipment used (planters versus drills and air seeders). To account for the variability in the seed metering, planting depth, and seed-to-soil contact associated with drills and air seeders, decrease the emergence estimate to 80 percent when using the formula listed above or the Illinois seeding rate calculator. The percent emergence should also be decreased by an additional 10 percent when planting early or when planting into untilled or poor soil conditions. Consider increasing the emergence estimate by 5 percent when using fungicide and insecticide seed treatments.

Comparing soybean seeding rates, harvest populations and yields in each of your fields every year will help determine the optimum planting populations for your fields over the long run.

Crop Tech: Value of Poultry Litter

Mon, 08 Nov 2021 19:23:11 GMT

The use of poultry litter can contribute to reduced fertilizer input costs for many farmers, depending on the price and transportation expense, according to research by Kansas State University (KSU) nutrition management specialist Dorivar Ruiz-Diaz and colleagues.

Moisture content and nutrient concentration in poultry litter can be highly variable, depending on production conditions, storage and handling methods. Lab analysis is the best way to determine the level of nitrogen and phosphorus in the material to be applied, he says. A lab analysis provides information regarding nutrient levels, as well as the chemical forms of these nutrients.

The table below presents average values for different types of poultry manure collected for a period of time in Kansas. There is a large range in nutrient values, likely due to the source of the litter. A good sample average would be 55-55-47 for Kansas.

While poultry litter might represent significant savings, farmers also need to consider the “hassle factor” of using it. Reliable delivery, storage site location, uniform application, access to application equipment and odor can all be additional challenges for producers unfamiliar with its use.

2019 Income Estimates $15 billion Less than 91-Year Average

Sun, 15 Nov 2020 20:59:16 GMT

While 2019 income forecasts are expected to be above 2018, they’re still dramatically lower than the average over the past 91 years. In 2019 experts expect net farm income to reach $69.4 billion, 2018 hit $64.2 billion and the 91-year average (adjusted to 2019 dollars) is $84.2 billion.

“Although the forecast for higher income caught most of the headlines, farm financial conditions are still challenging,” said David Widmar and Brent Gloy in a recent post on Agricultural Economic Insights . “Since 1990, net farm income has only been less than $70 billion six times.”

The pair is quick to point out that even though three of the six below-$70 billion years were in the past four years, 2016, 2017, 2018 and 2019, current conditions are significantly stronger than in the 80s when real farm income fell before $50 billion (in 2019 dollars).

Notably, 2018 marks the lowest income year since 2002, obviously even lower than 2016 which had served as the “low-water” mark for the current slowdown, the economists explained. Without MFP payments 2018 income would have dropped below $60 billion and put it back into levels not seen since the 1980s.

A portion of MFP payments weren’t distributed in 2018. That $3.5 billion was included in the forecasted net farm income for 2019.

Increased forecasts for farm income come from lower production expenses and higher crop values. Together, they add $9.6 billion to the pile. However, decline in direct payments and other unnamed costs drive the total down to just a $5.2 billion increase over this past year.

Credit: Agriculture Economic Insights

“The USDA’s first estimate of 2019 farm income provides some positive news,” the economist wrote. “First, real net farm income is expected to be 8% higher. Second, the major sources of these improvements—higher values of production and lower costs of production—are encouraging.”

Because this is just a forecast, time will tell if these numbers hold true for 2019.

https://www.agweb.com/article/usdas-long-term-projection-shows-farm-income-up-by-12/

https://www.agweb.com/article/farm-bill-wont-impact-farm-income-significantly-/

Partnerships in North Carolina Help Stevia Business Boom

Sun, 15 Nov 2020 19:42:25 GMT

PureCircle, stevia producer for beverage and food industries, is expanding its stevia production with the StarLeaf variety. The company says it sources stevia from plants grown around the world but this year’s dramatic production increase is from North Carolina farmers.

Nearly 16,000 tons of the company’s stevia will be StarLeaf—a 200% increase over 2017.

Farmers in North Carolina are converting old tobacco fields to grow StarLeaf stevia varieties. This provides farmers with access to a new market and puts what could have been fallow land back into production.

The variety PureCircle is pushing—on about 80% of their contracted acres—StartLeaf is said to yield 20 times more than others while maintaining taste. The company says it will increase StarLeaf to 90% of its production in 2019.

“The food and beverage industry has seen a steady increase in product launches featuring stevia as an ingredient, as evidenced by the 10% increase in 2017 as compared to 2016 according to Mintel [global market research and insight company],” PureCircle says in a recent press release. “In 2017 alone, about 3,500 products launched with stevia.”

Retailers Respond With Resilience

Wed, 11 Nov 2020 06:18:53 GMT

Amid today’s challenges, retailers are investing in their businesses and realizing their important role in the marketplace, particularly in regard to the seed business.

“In the context of seed, the retailer is the person who analyzes pest pressures, diseases, weather, and is positioned to help answer those challenges with a solution,” says Daren Coppock, president and CEO of the Agricultural Retailers Association.

Define Your Identity. Seed sales and service are significant parts of the River Valley Cooperative’s business. This year, the team at River Valley Cooperative in eastern Iowa launched a campaign solidifying its brand.

“It’s a rebirth of the River Valley story, ‘On the Ground Year Round,’ so our customers know we are by their sides to help their businesses in every season,” says Andy Rash, vice president of sales and marketing at River Valley.

Branding is a tool that retailers are relying on to establish and reinforce their capabilities with customers.

“It’s all about differentiation,” says agronomy manager Dan Olson with CHS Dakota Plains Ag in southern Minnesota. “Our customers lean on us to be cutting-edge and bring timely, relevant information. And if we can bring some branded products to continue to build their trust and support, that’s our core business—hands down.”

One such example is this year’s launch of Allegiant Seed by CHS.

“Farmers have access to information and can get it anywhere,” Olson explains. “What growers need from us is confidence in the product.”

Olson says test plots are key to demonstrating product performance—both with seed and crop protection.

“CHS Dakota Plains has 22 test plots dedicated to its products to showcase, build data and host field days,” says Steve Carlsen a technical specialist with West Central Distribution. “In this economy, as a retailer you differentiate your business when you’re able to keep it one-on-one with training and sales.”

Delivering Trust. “The retailers who have been successful focus on their customers, know their products, know their territory and do right by their customers,” Coppock says.

According to Farm Journal Media research, 70% of farmers look for consistent or strong yield performance when selecting seed.

Shift In Sales Training. Today’s technologies and market forces have led retailers to shift how they focus their time in product sales.

“There are two schools of thought—I want you to do it for me, or I want to learn,” Olson says. “Retailers need to want to be the local expert. And we want a strong partner who can come in and bring technical aspects while we bring the products that we know fit in the geographies.”

At CHS Dakota Plains Ag, sales managers spend 25% of their time on product training and delivering the message around the product.

Changes at River Valley Coop meant that the business brought a lot of its sales training in-house. Every sales meeting focuses on tactics.

“We leverage our partner’s expertise, but we needed to bear down and focus on our sales behaviors to give us the strongest brand, image and drive value on the farm,” Rash explains. “I look at sales as a sport—and it’s a contact sport—you have to sharpen yourself. You have to continue to develop.”

Brandt Opens New Lab to Improve Quality Control

Wed, 11 Nov 2020 06:18:53 GMT

Brandt, a global agricultural company, completed a new 2,000 square foot formulations lab to help improve quality control as their production expands.

The new lab is located in their Pleasant Plains, Illinois, production facility and is six times larger than the previous lab there.

“A lot of proprietary new formulation development work and QC is done in Pleasant Plains,” says Brian Haschemeyer, director of discovery and innovation for Brandt. “The lab expansion will allow Brandt to develop better, more advanced products; to screen and produce new formulations more efficiently; and be able to run quality control tests faster.”

New instruments have also been introduced to the lab such as an ICP-OES machine and Nitrogen Analyzer, which allow the company to perform full fertilizer analysis and heavy metal screening.

Other new tools include a high-performance liquid chromatography machine, which analyzes the presence and concentration of plant growth regulators and bio-stimulants. It also added a new UV Vis dye analysis instrument to screen the quality and concentration of dyes and colorants.

“New products are our lifeblood,” says Bill Engel, executive vice president of Brandt. “We continue to make significant investments in our business to ensure that we are able to bring innovations to the market our customers want. And it goes without saying that we are committed to always delivering high quality products.”

Brandt operates five labs including the one in Illinois and is constructing a sixth lab in Visalia, California that is expected to open in April.

New White Mold Strain Could Become a Problem for Southern Farmers

Wed, 11 Nov 2020 06:18:53 GMT

A recent discovery in Brazil shows that white mold, while typically just a problem for northern states, could take root in southern states—if this strain makes it to the U.S. White mold is commonly listed as one of the top 10 diseases in the U.S. and leads to significant yield loss in affected states.

“White mold, also known as Sclerotinia stem rot, occurs worldwide, and the pathogen attacks and causes disease in many different crops. In the U.S., the fungus needs a cold period like winter before it can produce microscopic spores that infect soybean flowers in the summer. But in Brazil, the fungus does not need a cold period to produce spores,” says Glen Hartman, a USDA Agricultural Research Service research plant pathologist and professor in the Department of Crop Sciences at the University of Illinois.

The concern is what could happen if the strains are imported to the U.S. or if the country’s current strains adapt to warmer temperatures? Farmers in the south are unfamiliar with the disease which could leave them virtually defenseless.

Hartman worked with other researchers to evaluate what the U.S. versus Brazilian strains do without being exposed to cold temperatures, mimicking what the virus experiences in South America and could experience in the southern U.S. The group tested soybeans, common beans and canola plants to see if the fungus caused symptoms.

“All strains, regardless of their origin, were more likely to produce spores at a pleasant 68° F than at 86° F,” the study indicates. For states that routinely reach high temperatures this might be a good sign. However, Hartman notes there have been isolated southern outbreaks in St. Louis, Mo., and even Kentucky.

“That outbreak in Kentucky is kind of curious. I think that’s the furthest south we’ve ever seen it in the U.S. in a summer crop,” he says. “If that happened once, can it keep going? We don’t know, but it’s out there.”

DowDuPont Agricultural Division To Become Corteva

Wed, 11 Nov 2020 06:18:53 GMT

On Monday, DowDuPont announced it will name its agricultural company Corteva Agriscience. This is one of three companies to be formed as a result of the merger. The spin-off will be completed by June 1, 2019.

Corteva is derived from a combination of words that mean “heart” and “nature.” The new organization brings together DuPont Crop Protection, DuPont Pioneer and Dow AgroSciences to create its agricultural company. It will focus on seed, crop protection and digital agriculture.

“This is the start of an exciting journey,” says James C. Collins, Jr., chief operating officer, Agriculture Division of DowDuPont. “Corteva Agriscience is bringing together three businesses with deep connections and dedication to generations of farmers.

Corporate headquarters for the new company will be in Wilmington Del. Other sites include Johnston, Iowa and Indianapolis, Ind., with both serving as global business centers.

“We will continue to invest in some of the most recognized and premium brands in agriculture: Pioneer, Mycogen, and the newly launched Brevant seed brands, as well as our award-winning Crop Protection products, such as Aproach Prima fungicide and Quelex herbicide with Arylex active, while bringing new products to market through our solid pipeline of active chemistry and technologies,” Collins says.

Corteva Trims Seed Brands

Wed, 11 Nov 2020 06:18:48 GMT

Corteva Agriscience, formerly Dow and DuPont companies, will go to market through five regional companies, down from 10 before the merger. The five retiring companies will be combined into the five remaining brands.

Last standing U.S. brands include: Dairyland Seed, Hoegemeyer, NuTech, Seed Consultants and Terral. This means Brodbeck, Curry, Doeblers, Pfister and Prairie Brand are being consolidated.

“We have some outstanding brands with long histories, good people and loyal customers and we intend to honor those legacies,” says Brian Barker, multi-channel seed brand leader. “Realigning our multi-brand approach was necessary to better focus our product and service offerings to customers.”

Pioneer will still be the company’s “flagship” seed brand. The retail network will be served by Mycogen and Terral in corn and soybeans, and Phytogen and Alforex for cotton and alfalfa seed.

“Corteva Agriscience, Agriculture Division of DowDuPont, is implementing a bold plan to focus and rebalance our seed brand portfolio in the U.S.,” says Judd O’Connor, vice president, North America. “This strategy will allow us to better serve our customers – both farmers and retail dealers and distributors – with differentiated, broader and stronger product portfolios.”

The company says most employees and dealers with the consolidated brands will be offered positions or dealerships under the new structure. “Popular” products from retiring brands will be made available through the remaining regional brands.

Corteva continues to license and distribute technology and genetics to independent seed companies and says current U.S. agreements will stay in place. In addition, DuPont Pioneer and Dow AgroSciences stated it will honor program, product and service obligations for existing seed orders.

Gene Editing: Building Better Blueprints, One Gene at a Time

Wed, 11 Nov 2020 06:18:48 GMT

The following commentary is from Bob Reiter, Monsanto’s Global VP of Research & Development. The opinions expressed are those of the author.

Ever since its introduction to the world over five years ago, a gene-editing tool called CRISPR-Cas9 has been the scientific breakthrough that everyone is talking about. And while it’s the one generating the most buzz, CRISPR is just one of the gene-editing tools that scientists have been excitedly exploring over the last decade. In fact, more than 11K gene-editing studies have been published since 2010.

It encourages me to see new articles everyday about the latest gene-editing research and potential scientific breakthroughs, particularly in human health care. What draws me into these stories is the great promise that gene editing may enable researchers to treat incurable and fatal genetic diseases , modify human immune cells to kill certain types of cancer cells , and even stop the spread of Malaria , which kills nearly half a million people each year. In agriculture, we believe gene-editing could help cultivate plant varieties that reduce the need for pesticides and don’t require as many natural resources, while also helping farmers grow more crops – which would be a win for both people and the planet.

But as “gene editing” and “CRISPR” become more embedded in pop culture, I sometimes worry that the scientific community isn’t doing enough to adequately help the public understand exactly what this technology does, why it’s something to celebrate instead of fear, and why scientists, like me, are so excited about it.

In many news stories, CRISPR is described as a pair of molecular “scissors” that enables scientists to make precise improvements within DNA, which is often referred to as the “ Blueprint of Life .” Other gene-editing tools are said to function more like a “ pencil and eraser .” I’m sure most people are quite familiar with scissors, pencils, erasers, and blueprints, but here’s a story that helps bring these concepts together in a more concrete way.

That Time I Built a House…

When I was in my early twenties, I built a house. And I don’t mean that I hired a contractor to build a house, or picked out a floorplan in a new neighborhood development… I mean that I literally drew the blueprints and, with the help of two family members, built the entire house from the ground up.

This is where I should probably remind you that I’m a plant scientist, not a carpenter or construction worker. The biggest thing I’d “constructed” before the house was probably my sixth-grade science fair project, when I built a detailed model of the entire cellular respiratory pathway using only my sister’s college biology textbook as a reference (this was long before the Internet).

Fast forward about ten years to when I won a government lottery for one of a few properties at a new lakeside development in Manitoba, Canada, where I’m originally from. I only had to pay $350 for the land – so taking it was a no-brainer; but the catch was that I had to build a house on it within five years.

I was still in graduate school at the time – needless to say, I couldn’t afford to hire professionals to build the house for me. So, I did what any other financially-challenged, but technically-minded college student would do: I went to the University of Wisconsin library, studied all the construction books I could find in the engineering section, designed and built the architectural plans for my house, and miraculously, got them approved.

Then, over the course of a few summers, my dad, brother-in-law and I brought this dream to reality. Our construction process was slow, but precise. I was the reader and translator of the blueprints, cutting each board or tile to the correct measurements. Then I gave detailed instructions to my “crew,” telling them exactly where each piece needed to go. And eventually, we ended up with a pretty impressive 1,400-square-foot lake cottage that my family still uses to this day.

Everything Hinges on the Blueprint

Over the years, I’ve thought back on that process many times, particularly as I’ve watched the evolution of both human health and agricultural research due to increasing knowledge about DNA and genetic sequencing. Much like the blueprints that informed the building of my house, DNA provides the information for building all the proteins within every living thing on Earth – humans, animals, plants, bacteria, and other single-celled organisms. Proteins are like the building blocks of our bodies. Everything we do is controlled by the proteins within our cells, and each gene in our DNA contains the code for a unique protein structure.

DNA can’t do it all alone; it relies on molecules called Messenger RNA (mRNA) to deliver the instructions for building each protein to the parts of the cells that make them. In my house-building analogy, I was like the Messenger RNA, reading the blueprints and delivering specific instructions for building each piece of the house (or protein) to my crew, which then carried out the orders.

Now consider this: what if there was a defect in the blueprint for the house? If we followed those instructions anyway, the defect would be built into the house – which could later lead to structural problems, ranging from minor to catastrophic, depending on which part the defect involved.

But… if I was able to pinpoint the defect in the blueprint, I could take an eraser and pencil to fix the mistake (or use scissors to snip out the faulty section and replace it), then deliver those new instructions, and my crew would build the flawless version of the house as it was originally intended.

On the other hand, if I wanted to add a feature to improve the house design mid-construction, like adding a kitchen cabinet or moving a wall one inch to the left, I could do the same thing: update the blueprints and deliver the improved instructions to the building crew. It’s important to remember that, relative to the size and complexity of the blueprint, these changes are small and precise. The house as a whole will still stand as it would have before, with one or two targeted improvements having been made.

That is what gene-editing tools are now enabling scientists to do. And the possibility of making improvements never before dreamed about – like fixing rare diseases caused by a defect in the genetic blueprint – is certainly worth getting excited about.

“It will take consumer understanding and acceptance of gene-editing tools and the products they enable for the technology to be impactful across industries and around the world. The only way that will happen is if those of us who have already embraced gene editing can do a better job of communicating with those who haven’t.”

The Potential of Gene Editing for Agriculture

Gene editing offers the same exciting potential of newly possible innovations in agriculture. In crop science, we believe gene-editing tools like CRISPR will allow researchers to make precise improvements within a plant’s DNA to:

Enable a beneficial characteristic (such as drought tolerance or improved nutrition),
Deactivate an unfavorable characteristic (such as disease vulnerability), or –
Break genetic linkages between genes conferring positive traits (like disease resistance) with less desirable traits (like drought sensitivity), generating plant varieties with the most desirable combinations of traits.

Basically, these tools have the potential to help plant scientists integrate the most desirable traits into improved seed products for farmers with more efficiency and precision than ever before. And by giving plants a better chance of survival, particularly in regions that struggle with hunger and malnutrition , we will be able to give people a better chance at life as well. As Bill Gates eloquently advocated in a recent article , “…improving the productivity of crops is fundamental to ending extreme poverty… Gene editing to make crops more abundant and resilient could be a lifesaver on a massive scale.”

Gene Editing vs. Genetic Engineering

Since gene editing does not introduce DNA from a different plant species (like “GMO” crops produced by genetic engineering), the end product (edited DNA) is no different than what plant breeders might eventually arrive at through selective breeding for a specific trait . This is why the U.S. Department of Agriculture recently announced that it will regulate gene-edited plant varieties in the same way as varieties bred through traditional methods – a rational, science-based approach that I agree with. Keep in mind that all new plant varieties still go through years of field trialing and safety testing before they are made available to farmers to grow. Gene-editing tools simply help plant breeders achieve the desired genetic blueprint much faster, as well as more reliably and cost-effectively, before seeds advance to the next stage of the development process.

Often I am asked if gene-edited seed products will replace the GMO seeds available to farmers today. (As a refresher, the key difference is that genetic engineering transfers a desirable trait from one species to another, while gene editing makes improvements using genetic material from within the plant’s own family.) I go back to my construction story and consider building my house in a warmer climate. In a “gene-editing scenario,” I could edit the blueprint and redesign the structure to have thicker walls, more insulation, and properly positioned windows. But if I really wanted the house to be cooler, I would need to “genetically modify” the blueprint to include an air-conditioning unit – an external “trait” not included in the home’s original design. So sometimes there are limits as to what we can do to improve a plant by just editing its native DNA sequence, and I foresee a continued need for both types of technology to meet the world’s agricultural challenges.

Communicating the Benefits of a Better Blueprint

Scientific breakthroughs like gene editing are the reason I became a scientist – I’ve always been motivated to do research that helps make the world a better place. The safe and responsible use of these tools can do just that. However, it will take consumer understanding and acceptance of gene-editing tools and the products they enable for the technology to be impactful across industries and around the world. The only way that will happen is if those of us who have already embraced gene editing can do a better job of communicating with those who haven’t. We must help people understand that gene editing works with nature in a way that is safe… and that a better blueprint builds a better house.

Bob Reiter is Monsanto’s Global VP of Research & Development.

Monsanto to License Corn Rootworm Trait to Corteva

Wed, 11 Nov 2020 06:18:48 GMT

Competitors come together in agreement today—Monsanto will license the Corn Rootworm III and MON89034 (Bt) traits to Corteva Agriscience, the ag division of DowDuPont. This technology can be integrated into Corteva’s trait technologies. For example, after pending regulatory reviews, Corn Rootworm III will be offered with the Enlist trait for corn.

The “billion-dollar bug,” corn rootworm, is currently displaying resistance to Bt trait technologies in some areas of the U.S., so new tools in the fight are much-needed. Monsanto representatives say the trait is in “phase 4” of development—the last stage before commercial launch—but did not provide a specific launch year.

“The combination of Corn Rootworm III with Corteva Agriscience’s molecular stack for insect control and the Enlist corn trait will give our customers the ability to protect yield while extending the durability of industry-leading trait technology,” says Tony Klemm, global corn portfolio leader for Corteva.

This move indicates Monsanto will continue licensing trait technologies to other players on the market—a practice the company has widely used and will likely continue even if/when the pending acquisition by Bayer goes through.

“We view this agreement as an endorsement for the novel mode of action that Monsanto’s Corn Rootworm III traits bring to farmers, as it builds on the current products planted today by adding a new RNAi mode of action that enhances effectiveness against one of the industry’s most destructive pests,” says Calvin Treat, Monsanto global soy and corn technology lead.

App Allows for Easy Input Purchasing

Wed, 11 Nov 2020 06:18:48 GMT

Input buying is at your fingertips—literally. Agrellus , an online input provider, announced it’s unveiling an app for iPhone and Android that allows farmers to shop for inputs with the tap of a finger.

“We’ve launched the brand new Agrellus mobile app for growers around the country to buy seed, fertilizer, chemicals, irrigation parts and more at better prices,” says James Ferraro of Agrellus. “Growers can use the Agrellus app to check labels, set GPS delivery locations, upload permits and make brand name or custom requests on thousands of products.”

The app allows users to “find,” “request,” “view quotes” and “accept and pay” for inputs.

Quotes are sent to users from actual retailers or manufacturer, with most quotes hitting user phones in just a few days. After finding the product or services that fit needs best, simply place the order. Agrellus accepts credit cards, electronic bank transfers, John Deere financing and supplier-approved credit.

The company was founded in Texas in 2015 and launched the online input platform in 2017. It’s owned by Texas farmers, ag retailers, Silicon Valley technology executives and independent investors.

Looking for other useful apps? Check out this weather app , this field scouting app or this farm safety app.

Telematics Pay Off With Eyes On Efficiency

Wed, 11 Nov 2020 06:18:48 GMT

At Southern States Cooperative, senior management identified fleet management as one of the top five initiatives for the company. With more than 2,500 vehicles—300 of which are sprayers or spreaders—maximizing the company’s investment was in the bull’s-eye.

“As a whole, fleet management has so many opportunities and challenges,” explains Thurman Register, who for the past six years has been fleet manager at Southern States. “Fleet operations will always be a cost center; however, our goal is to mitigate and manage those costs. The challenge is to increase revenue with the same or fewer vehicles while reducing the cost or expense per vehicle—all the while maintaining the same or better customer satisfaction and expectations.”

The top objectives for Southern States were efficient fuel consumption, fleet rightsizing and fleet utilization and increasing vehicle efficiency and productivity.

As Register explains, data were going to drive fleet management decisions. In 2012, the company started a trial with Verizon’s Networkfleet GPS tracking system. The Networkfleet system can be installed on any vehicle chassis—a fork lift, pickup, sprayer, spreader, etc.—and is used to monitor vehicles and equipment.

Vehicle location is an important tool. Remotely tracking assets has led to greater efficiencies in serving customers. For example, at some fertilizer plants, the company has set up a geo-fence, so the plant manager receives a real-time alert via text message when tender trucks are heading back to the plant, so they can start blending loads.

Location technology also helps route equipment to the field, and it helps the trucks pick up equipment.

“It happens a lot where we drop off a piece of equipment, and a farmer may tell us it’s ready for pickup, but they’ve drug it a couple fields away,” explains B.J. Tingle, precision ag specialist with Southern States in Shelbyville, Ky. “With GPS location, we always know exactly where the equipment is and the best way to get there.”

The Shelbyville location maintains six KBH tender trailers, five truck spreaders, two TerraGators, three road tractors and three sprayers.

Register says this kind of efficiency at the locations adds up. He gives another example of road tractors at a facility turning at most four tender trailers a day before the technology was used. And now depending on demand, the road tractors can each turn six trailers a day.

Weather overlays are also providing guidance on how to dispatch application equipment in light of any coming storms.

Some locations have customer-
facing monitors displaying their machinery fleet in action as a way to market their full offering of services.

“We need data we can react to; data that is in real time; and what we are working toward, which is predictive data,” Register explains. “If there is a sensor out there to help us measure a key performance metric, we want to use it.”

The key machine-generated data include percentage of load, PTO run time, hours, miles and fuel usage.

Register says the most valuable action in fleet management hasn’t been collecting the data but rather analyzing data, so they can be used in the process of decision-making.

“The end goal is to be able to calculate the total cost of ownership on every asset and also know the cost per mile, hour or acre for that unit to operate,” Register says.

The company runs application equipment in eight states: Alabama, Delaware, Kentucky, Maryland, North Carolina, South Carolina, Virginia, and West Virginia.

In using Networkfleet, the team tracks the speed and run time of machinery. That has led to a reduction in fuel use, wear and tear on equipment and labor needs. Register explains that to know exactly what it costs for a TerraGator to apply product across an acre, it’s going to be a combination of telematics and other data sources.

“Without data, you are shooting from the hip,” he says. “Telematics data help us make those informed business decisions.”

Some application machines are outfitted with three systems used in fleet management—Networkfleet GPS, the telematics system from the manufacturer (Ag Command or JDLink) and Raven Slingshot.

As Tingle explains, being able to send and receive application files wirelessly is another leap forward in efficiency and accuracy of the applications.

After monitoring machine performance in the past three years, Southern States has been able to increase efficiency of its sprayers and spreaders by 8%.

“Once we quantify that improvement into dollars, that’s a big number for Southern States because we have close to 300 machines,” Register says.

Included in cost of ownership is maintenance. The company is tracking the vehicles that cost the most from a maintenance perspective and setting benchmarks as it reviews choices with vendors.

“For us in the field, we’ve been able to see how preventative maintenance pays off,” Tingle says. “And when we do have downtime, it makes it easy to see the value in responsive service from the dealer.”

Two years ago, the company did a utilization study, which included a full count of the machines it owned.

“We discovered we had spares that were backup to spares—so new equipment was coming in, and old equipment never went away,” Register explains. “There’s a cost to iron sitting around, so we had to educate our team internally to what those costs are. We implemented a remarketing program, and it captured $200,000 in a year.”

The co-op uses telematics data in its replacement strategy to identify what equipment is underutilized or overutilized. These data are supplemented with annual vehicle inspection programs during which each piece of equipment is inspected and all data points are recorded. All of these reports add up to build a replacement plan by equipment type, equipment manufacturer and even by location.

“Rightsizing any fleet is constantly evolving,” he says. “But from the utilization study, we reduced our asset spend by $1.4 million.”

This kind of analysis also helps define return on investment when new machines are added to the fleet.

In 2014, the Shelbyville, Ky., location added its first self-propelled, high-clearance spreader whereas previously it only had truck spreaders.

“We know having that new capability brought in more business, and it helped us cover more acres,” Tingle says.

Some changes, albeit still very data-driven, are dependent on behavioral changes.

“As part of our proactive fuel management program, we used telematics data to set metrics around things we could improve. Idle time was and is one of our core focus points because it’s behavior-driven,” Register explains. “Our applicators and drivers do a great job of helping us meet those targets, and we reinforce that positive behavior via KPI reporting and an idle policy.”

He gives another example with application equipment.

“As soon as you say you’re installing GPS on equipment, people assume you’re there to watch what they’re doing. It’s the ‘big brother’ syndrome. But that’s not it,” he says. “GPS/telematics technology has advanced so far that it’s not about watching dots on a map move anymore. From a fleet perspective, it’s not about where a vehicle is but how a vehicle is performing.”

The return on the investment of fleet management extends beyond maximizing the assets.

“It’s an investment to install the tracking and telematics equipment,” Register says. “The ROI is realized in several ways (fuel savings, total cost of ownership, reduced downtime, maintenance and repair cost savings, efficiency, etc.), but the overwhelming advantage is the capture of the ‘big data.’ It can help us answer questions that we may not know we need to answer.”

As an example, he says that if there was a sustainability initiative to reduce the company’s greenhouse gas emissions by 2%, then the fleet data can show what the company is doing today and what it might take to accomplish that.

“Without telematics in place, you’d be hard-pressed to know how to do that,” Register says.

Wheat Seed Available Through FBN Direct

Wed, 11 Nov 2020 06:18:48 GMT

Arcadia Biosciences, creator of GoodWheat, recently partnered with Farmer’s Business Network (FBN) to offer its wheat varieties online through FBN Direct. GoodWheat is an identity-preserved specialty product that could help increase farmer profitability when compared with commodity wheat.

GoodWheat offers varieties with high fiber-resistant starch, reduced gluten and other specialties. Arcadia created the GoodWheat lineup to address consumer demands and provide farmers and food manufacturers with opportunities to differentiate their products at a premium.

This agreement with FBN allows Arcadia to scale up production of specialty wheat products to meet anticipated demand following the 2019 commercial launch.

“With their commitment to innovation and growing network of premier farmers, the FBN network is an ideal partner to help us build capacity for our specialty wheat varieties,” said Raj Ketkar, Arcadia president and CEO, in a recent press release.

FBN says Arcadia provides its users opportunities with wheat, which they might not otherwise have.

“This important partnership with Arcadia provides our members access to grow specialty, identity-preserved GoodWheat and enables them to earn a premium over commodity wheat,” says Amol Deshpande, FBN CEO and co-founder.

U.S. DOJ Approves Bayer, Monsanto Deal

Wed, 11 Nov 2020 06:18:48 GMT

The U.S. Department of Justice reportedly approved Bayer’s acquisition of Monsanto—conditional on the sale of certain assets to secure antitrust approval, according to Wall Street Journal .

This approval comes at the heels of the European Union’s approval of the deal, which required several divestments, including Bayer’s LibertyLink and row-crop businesses and Monsanto’s NemaStrike seed treatment. BASF will acquire the LibertyLink and row crop businesses.

With this approval in the books there are just a few countries left to grant approvals before the companies merge, notably Canada and Mexico.

“Bayer has announced several planned divestitures. With these actions, Monsanto continues to be confident in the companies’ collective ability to secure the required approvals within the second calendar quarter of 2018 and in the time contemplated by the agreement,” the company said in a recent news release.

The companies say the acquisition will lead to $2.63 billion annual spending on research and development, with 10,000 employees dedicated to it. If combined, the companies plan to pair the chemical, data science and seed research sides for what they say will be streamlined, simultaneous innovation. For example, instead of creating a herbicide chemistry and then waiting up to ten years for the accompanying seed technology the two could launch together, leaders from both companies have said.

DONE! Bayer Closes Monsanto Deal

Wed, 11 Nov 2020 06:18:44 GMT

(Bloomberg) -- Bayer AG closed its $63 billion acquisition of Monsanto Co., emerging from an arduous two-year antitrust review as the biggest seed and agricultural chemicals maker in the world.

The deal’s closing is just the beginning of another tough task: knitting the two companies together. Integration should begin in about two months, once the sale of some of Bayer’s agriculture assets to BASF SE is complete. The combined unit will be based in Monheim, Germany, while the North American business and seeds division will be led from St. Louis.

The transaction, which will double the size of Bayer’s agriculture business, means “we will be even better placed to help the world’s farmers grow more healthy and affordable food in a sustainable manner,” Bayer Chairman Werner Baumann said in a statement on Thursday.

Bayer has sold off its plastics business and remade itself into a life-science company with half its sales from health and half from agriculture. The takeover also marks the third in a series of mega-deals in the industry, following Dow Chemical Co.’s merger with DuPont Co. and China National Chemical Corp.’s takeover of Syngenta AG.

To soothe regulators’ concerns about whether enough competitors would remain in the market, Bayer agreed to sell about 7.6 billion euros ($9 billion) in assets to BASF. They include field seeds as well as Bayer’s vegetable-seeds business, some seed treatments and digital farming projects.

Copyright 2018, Bloomberg

Bayer Closes Monsanto Deal But Won’t Fully Integrate For Two Months

Wed, 11 Nov 2020 06:18:44 GMT

The long-awaited and highly debated deal is done —Bayer officially owns Monsanto. As of Thursday, June 7, 2018, Monsanto stocks are no longer available on the NYSE, Monsanto shareholders are getting fat checks and Bayer is among the largest global seed and ag chemical companies.

“Today’s closing represents an important milestone toward the vision of creating a leading agricultural company, supporting growers in their efforts to be more productive and sustainable for the benefit of our planet and consumers,” says Hugh Grant, outgoing chairman and CEO of Monsanto.

What synergies or job losses does Bayer anticipate? Listen:

Per the U.S. Department of Justice requirements, Bayer and Monsanto, while combined, will continue to operate separately until divestments are made. Only after those divestments will the companies integrate, led by Bayer’s Liam Condon. And at that point the Monsanto name will be retired.

“This is something that we expect to happen within the next approximately two months,” says Liam Condon, Bayer president of the crop science division. The company is awaiting the approval for divestments of products and portfolios to BASF.

“They need to be approved in certain jurisdictions, this is only a matter of process, not a matter of content, so it’s definitely going to happen,” Condon says. “It’s just some authorities need a bit more time because of their regulatory procedures.”

When the Monsanto name retires brand names such as Asgrow, Dekalb, Channel, Stone, etc. will remain in place. The company says it doesn’t expect farmers will see any immediate changes to the way they work with their seed and chemical providers as a result of this acquisition.

What value does the acquisition provide farmers? Listen:

“Today is a great day: for our customers—farmers around the world whom we will be able to help secure and improve their harvests even better; for our shareholders, because this transaction has the potential to create significant value; and for consumers and broader society because we will be even better placed to help the world’s farmers grow more healthy and affordable food in a sustainable manner,” says Werner Baumann, chairman of the Bayer board of management. “As a leading innovation engine in agriculture, we offer employees around the world attractive jobs and development opportunities.”

USDA: Net Farm Income to Decline; Debt, Assets Rise

Wed, 11 Nov 2020 06:18:44 GMT

USDA released net farm income projections for 2018 that call for a $9.8 billion drop from 2017 to $65.7 billion. However, they also anticipate assets and equity to increase.

According to USDA, net cash farm income is forecast to decrease 12.0% to $91.5 billion.

“In inflation-adjusted 2018 dollars, net farm income is forecast to decline $11.4 billion (14.8%) from 2017 after increasing $13.0 billion (20.3%) in 2017,” the agency noted. “If realized, inflation-adjusted net farm income would be just slightly above its level in 2016, which was its lowest level since 2002.”

USDA’s definition of net cash farm income encompasses cash receipts from farming as well as farm-related income, including government payments, minus cash expenses. Meanwhile, net farm income incorporates noncash items, including changes in inventories, economic depreciation, and gross imputed rental income of operator dwellings.

Cash receipts for all commodities, including livestock, are forecast to remain nearly stable in 2018 at $374.0 billion.

“Both total animal/animal product and total crop receipts are forecast to be relatively unchanged from 2017 as increases in receipts for some commodities are offset by declines in other commodities,” the agency said.

USDA expects farm sector equity to increase by $21.8 billion for a total of $2.62 trillion in 2018. Similarly, farm assets, driven by farmland values, are projected to increase by 1.2% to $3.0 trillion in 2018, reflecting an anticipated 1.8% rise in farm sector real estate value.

While farmland values will increase, so will land related debt. Farm debt is expected to increase by 3.5% to $406.9 billion, led by an expected 4.4% rise in real estate debt.

“The farm sector debt-to-asset ratio is expected to rise while the total rate of return to farm assets is expected to decline in 2018,” USDA said.

Ag Pro Podcast: Building Relationships in Seed Sales

Wed, 11 Nov 2020 06:18:44 GMT

In the AgPro Podcast, voices from the industry asked: What is your business doing different for seed sales in the coming year?

Lance Dobson
Lexington, Mo.

Beck’s Seed Dealer

“I’m pretty new at the game, so the best thing I can do is gain trust and go from there—build the brand. When I can get in front of a farmer, it helps a lot if they’re looking for a change in the first place. If a guy’s happy with what he’s doing in seed, that’s a pretty tough sale. I really don’t want to push if the farmer is indeed happy. But if he is looking for something a little different, then I focus on showing the value that I bring to the farm operation and how I can help him be successful. I want to gain their trust as a component of their operation, and that could be a customer that I have for a long time.”

USDA Issues $4.8 Billion In Safety Net Payments

Wed, 11 Nov 2020 06:18:40 GMT

Last week, USDA announced farmers would receive $4.8 billion in safety net payments under the farm bill, even though the legislation is expired.

Agriculture Secretary Sonny Perdue said producers should start seeing payments this month for the USDA’s Agriculture Risk Coverage (ARC), Price Loss Coverage (PLC) and Conservation Reserve (CRP) programs

“Despite a temporary lapse of farm bill authorities, farmers and ranchers can rest assured that USDA continues to work within the letter of the law to deliver much needed farm safety net, conservation, disaster recovery, and trade assistance program payments,” Perdue said.

Who got paid?

Amazon, Walmart? Farming’s Wild Scramble For Online Ag Retail

Wed, 11 Nov 2020 06:18:40 GMT

What if an entire farm supply of herbicide, fertilizer or seed was a mere click away and deliverable by Amazon or available by pickup from Walmart? Outlandish? Probably. Maybe. However, farming is rooted in one inescapable certainty: Change waits perpetually offstage.

The scramble for ag retail dollars has kicked up a dusty haze as traditional chemical players scrap gravel with an expanding list of online start-up companies elbowing for market space. It’s a brick-and-mortar vs. e-commerce clash, and the rules of purchase, customer loyalty, and transparency are at stake. The Wild West has come to ag retail and the outcome for U.S. farmers remains a looming issue.

Confusion and Surprise

“It’s crazy right now and I’ve never seen a more competitive time in the ag retail space,” says Curtis Garner, senior farm analyst for Bowles Farming Co. in Los Banos, Calif. “Twenty years ago, there was money made hand-over-fist; not now. Ag retail is in new territory and I can’t even predict what’ll happen a decade from now.”

In November and December of 2017, Bowles Farming Co. joined five neighboring farms and approached 11 retailers with a proposition to buy in bulk, shaking the tree for the best deals available on herbicide, fertilizer, defoliant, growth regulators, and more. Retailer reaction? Confusion and surprise, according to Garner: “They wanted to know why I was doing this and what was going on. A lot shied away and said we were already getting the best deals possible, but some guys wanted to play ball—especially the independent dealers.”

Garner believes ag retailers are caught in a whirlwind of change. “There is a new generation of farmers raised on an ‘information should be open and free’ mentality and we’re seeing the reverberations specifically in ag retail. The culture is changing so fast that business is playing catch-up.”

“Maybe no one wants to admit it, but some retailers are scared and see change coming from online competition. No question, the big retailers got lazy and provided opportunity for online disruption. Nobody knows where this is headed, but I don’t think online ag retail will blow up the supply chain as much as some think,” he adds. “In the end, the ones who create value on both sides are going to win.”

Who Fits the Future?

According to USDA’s Farm Production Expenditures 2017 Summary , “Combined crop inputs (chemicals, fertilizers, and seeds) are $51.8 billion.” The number of online ag vendors seeking to tap the input market is steadily growing, with a roster including Agrellus , Agroy , AgVend , CommoditAg , Farmer’s Business Network (FBN), FarmTrade , HarvestPort , INPUTS , The FarmElement , and more. In addition, InCeres , Agriconomie , Yagro , Agrofy , and Ag.supply are based overseas. (According to a 2018 Farm Journal purchasing behavior study of 997 U.S. farmers, 8% of growers bought at least some inputs online this year and 13% plan to buy some inputs online in 2019.)

Despite the crowded stage, Alexander Reichert, co-founder and CEO of AgVend, sees the future of ag retail as the combination of the convenience and time savings of e-commerce, with the service and local agronomic expertise of traditional ag retail. AgVend launched in 2018, covers 26 states, and partners with ag retailers looking to sell crop protection, nutrition, fertilizer, lubricants and oils online (seed sales are set for 2020). AgVend enables growers to search for products, filter results (based on price, delivery, bundled services, etc.) and select the option that best fits their needs, with the retailer handling the last mile delivery or pickup. (AgVend also offers retailers an online storefront if needed.)

Reichert estimates total sales of online ag inputs in the single digits, but expects the figure to steadily rise. “We’re going to see the percent of e-commerce purchases hit 10% and rise fast. Within three to five years, I project we’ll see the number grow as high as 25%.”

“AgVend has an advantage of credibility and network with established retailers. Other players in the online retail market are held back by trust issues. Buy a branded product online and watch what happens when a generic shows up at the door. It’s a very, very bad customer experience,” Reichert adds.

Representing approximately 11 million acres of U.S. farmland, Brad McDonald is the managing director and co-founder of Agroy Inc., which utilizes online technology to link suppliers and buyers. Agroy connects farmers directly to providers of ag inputs through direct purchases online, or through mobile applications specifically designed for given retailers. Essentially, Agroy connects the dots as a third-party seller.

McDonald is certain: Online ag input purchases will continue to gain traction. “This is going to be second-nature. Twenty years ago nobody bought online and now look at the pace of change. I don’t believe farmers are going to abandon current retailers, but the overall system is going to be more efficient through new purchasing technology. The players willing to disclose prices and offer products online will fit into the future.”

Praised and Pilloried

In 2015, FBN lobbed a grenade into the online ag retail market, allowing growers to go further upriver to source ag chemicals directly from manufacturers. In addition, paid membership allowed growers to view anonymous aggregation of seed performance data. The access to transparency was a radical change for growers, further accented in 2017, with the release of FBN’s seed relabeling project, which showed when a given corn or soybean seed was sold by multiple companies. Seed relabeling remains a common industry practice and one that farmers are often unable to track or recognize. According to FBN, relabeling is practiced by 67% of corn seed companies and 78% of soybean seed companies.

FBN was praised and pilloried from all ends of agriculture, and the clamor continues with the kickoff of the F2F Genetics Network in 2018. Pared down, FBN offered its own seed line for non-GMO corn ($99 per bag) and off-patent glyphosate-resistant soybeans ($29 per bag).

Charles Baron, co-founder of FBN, says the pushback from major industry players is consistently strong. “We’re constantly up against heavy-handed tactics, but we maintain focus on grower profit through a fair and transparent market. Whether it’s seeds, inputs, or crop marketing, the future is transparency and increasing farmer profit—and that’s our model.”

“When we first started, we were attacked for introducing transparency. What does that say about principles of the industry? Well, first they attacked and now they’re trying to replicate our online system.”

As anemic commodity prices pile the pressure on farmers, Baron insists the online option is not merely about cheaper products, but it is the future of distribution. “This is going to restructure the industry in ways massively beneficial to farmers. Why? It puts the farmer consumer in control.”

Baron is insistent: Following mechanization, the Green Revolution, and genetic technology, the online transformation will trigger a “fourth revolution” in farming. “Growers can connect and network online to leverage power through data sharing on genetics and pricing to actually change the structure of the industry. That’s where the deepest and most profound change is going to come and it is already starting. Online is going to be the fourth revolution in agriculture.”

Subscribing to the local and personal formula, Tyler Horbach believes the future of online ag retail will be a marriage of brick-and-mortar and e-commerce. Horbach is the founder of The FarmElement , an Iowa-based startup that partners with local retailers and co-ops. “We don’t disrupt their way of business, but enhance it by adding an additional channel to their business model.”

Within 10 years, Horbach estimates 50% of fertilizer and chemicals will be purchased online. He says the tide of younger farmers is inescapable. “Everyone can see this happening, especially growers 35 and younger, who already have limited loyalty to retailers.”

Horbach acknowledges a wave of online change, but says the gravity of purchases will always require a hands-on connection. Growers betting livelihoods on chemicals, fertilizer and seed can’t afford to make flippant purchases: “This is not like buying a pair of shoes. A farmer will always need human interaction, service and trust.”

Achilles Heel

Online retail expansion has an inescapable ceiling, according to Michael Boden, head of U.S. Crop Protection Sales for Syngenta . Crop management requires a host of decisions which can’t be completely met by e-commerce and the lack of human interaction is a major Achilles heel, he says. “Most growers value a service component and the agronomy that comes with it from a local relationship. That’s where online ventures miss the mark. Online options may offer more price transparency, but they don’t provide the decision-making components needed to make good agronomic decisions.”

In addition, Boden says counterfeit products and stewardship are growing areas of concern over online sales: “When online entities acquire products from sources other than authorized dealers or contracted distributors, you’d better question and be concerned about the quality.”

Echoing Boden’s concerns, Chris Novak, CEO of CropLife America , says the online sale, handling and delivery of agriculture chemicals raises significant stewardship questions and requires understanding of federal and state law. “We’re beginning to hear stories and we’re looking for data on counterfeit ag products sold online. It’s a major concern that speaks to farmer loss, quality control and lost sales for the industry.”

“There is certainly opportunity for farmers to purchase online, but if they end up with any problems that result in damage to crops, they may not be able to resolve these issues by going back to the company or the sales rep. An online purchase can mean farmers give up some of that access to service. It is important that consumers consider this factor,” Novak adds.

“There’s been a lot of fearmongering from the existing channels,” says Baron. “We, frankly, find it ridiculous.”

Consolidation and Crystal Balls

The number of major market players on center stage continues to shrink, and further consolidation is an incessant concern for farmers. How might an expansion of online retail affect future consolidation? Todd Janzen, attorney with Janzen Ag Law , says the legal spillover from e-commerce is a likely road to turmoil, at least in the short-term. “It doesn’t take a crystal ball to see the big online issues stacking up. If farmers can go online and see that they’re being price-gouged, it’s going to create waves. Zone pricing, seed rebranding, and now seed sales are all related to transparency. Traditional agribusiness has consistently moved toward consolidation, but these online players have definitely upset the traditional apple cart.”

“Agriculture is headed for a wild time of anti-trust questions, regulatory issues, transparency factors and Amazon.com comparisons, and it all connects with online ag retail,” Janzen continues. “Who can say that even more online ag companies won’t pop up and what happens then?”

Selection will play a counterbalance role, notes Reichert. “There are so many products out there that struggle to get in front of growers because they don’t come from one of the top manufacturers. Traditionally e-commerce in other industries has given rise to these lesser-known brands, which slows consolidation and creates more product diversity.”

Networking, in tandem with online retail, is a vital counterweight to consolidation, according to Baron. “Who really believes there’s not more consolidation coming in all aspects of agriculture? Farmers have to connect to gain market strength with independent genetics, price transparency and lower cost technology. Selling online is just one piece; farmers need to network to drive deep market transformations.”

The torrent of change is so rapid that Garner declines to make a 10-year prediction, but says online ag retail could boomerang on consumers and spark another level of consolidation: “I think the successful online ag retail sites may eventually be purchased by established manufacturers and retailers. What’ll happen if you can just go buy UN-32 from Walmart?”

“You have to be willing to recognize change,” Garner concludes, “because there is one thing for certain in agriculture: Nothing remains the same.”

For more articles, see:

Killing Hogzilla: Hunting a Monster Wild Pig

Agriculture’s Darkest Fraud Hidden Under Dirt and Lies

Blood And Dirt: A Farmer’s 30-Year Fight With The Feds

Seeds of Discord: Crossing the Great Cover Crop Divide

Bald Eagles a Farmer’s Nightmare

Living the Dream: Honoring A Fallen Farmer

Cover Crop Bandwagon Frustrates Farmers

Corn’s Carbon Cowboy Busts Outstanding Yields

Pigs Don’t Fly: Feral Hog Spread Is A Man-Made Mess

Jimmy Frederick Booms 163 Bu. Soybeans

Who Killed the Finest Soybean Soil in the World?

Meet The Father of Six-Row Corn

AgPro Podcast: Importance of Soil Testing in 2019

Wed, 11 Nov 2020 06:18:40 GMT

On the AgPro Podcast, voices from the industry asked: From lessons learned in 2018, how are you helping farmers prepare for 2019?

Steve Patterson

Richmond, Va.

SVP of Marketing and Communications, Southern States Co-op

A: The No. 1 thing they need to do is pretty basic—they need to be soil testing, but not everybody does that. Overall, farmers can’t be sloppy with their practices. You’ve got to pay more attention to your planting rate. Is your planter calibrated? Are you paying attention to how to increase your Maximum economic yields? Are you relying on anybody in the industry that can help you make these tough decisions? In these times of low commodity prices, we believe you can still make money as a producer, but you can’t if you’re just doing the same thing that you’ve always done.

37% Of Farmers Are ‘Not At All’ Confident In Tariff Aid Package

Wed, 11 Nov 2020 06:18:40 GMT

Last week, the Trump Administration announced that it will roll out a $12 billion aid package to farmers as early as this September. The emergency aid is designed to offset financial losses farmers affected by tariffs are expected to incur as a result of the trade disputes between the U.S. and China. But only 10% of farmers responding to a Farm Journal Pulse survey last week said the relief plan alleviates their financial concerns.

Nearly 670 farmers responded to the question: To what degree does President Trump’s $12 billion relief plan for U.S. farmers relieve your concerns about the impact of tariffs on your farm income? Thirty-seven percent of farmers responded “not at all.” Another 24% said the plan alleviates their concerns only “somewhat,” while 29% percent said they are “not sure.”

= Completely	67	10 %
= Somewhat	162	24 %
= Not At All	245	37 %
= Not Sure	192	29 %
Total # of Responses	666

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