Good morning.
Mint: it's the flavor you think of for tea, toothpaste, and chocolate (maybe. We know this is a hot debate).
But it could also be the next ingredient in... herbicide?
It turns out the flavorful leaf also includes a molecular compound that could help control weeds. Harpe BioHerbicide Solutions is currently researching the possibility, and hopes to make the herbicide available by next year.
Now that's a fresh idea.
Stories:
- Crushing It: Soybean Processing Plants Expand
- EPA Hopscotches SCOTUS on WOTUS
- Ag’s Omnibus Opportunity
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Crushing It: Soybean Processing Plants Expand |
Soybean processing plants are absolutely crushing it, with 23 processing plant expansions and new builds announced heading into 2023. This adds almost 750M bushels/year in crush capacity.
Extra demand for soybeans could bump prices about 13% higher in the next few years if projections stay on target.
What’s the hype? ICYMI, there’s crazy demand for low carbon fuels these days. Soybeans and other veg oils are prime ingredients for renewable diesel.
Soundbite: "It sequesters and eliminates a significant amount of greenhouse gas and carbon as compared to fossil fuels," said John Jansen, VP of Strategic Partnerships for the United Soybean Board.
All gas renewable diesel, no brakes. Today, the renewable diesel capacity is about 1.5-1.6B gallons/year. But by 2030, it could potentially be as high as 6B, according to Grant Kimberley of the Iowa Soybean Association.
Will there be enough beans? Short answer: Yes. Farmers will grow more soybeans, and yields will increase through the years.
Long answer: Farmers planted 88.3M acres this year according to the USDA June "Acreage" report. Ag researcher James Fry said that number could be as high as 94-95M by 2030.
And while soybean oil exports will eventually decline, the U.S. will have more soybean meal to sell to nations who need it in the European Union, Southeast Asia, etc.
Bad news for livestock farmers? With demand and prices for soybeans and its oil on the rise, one might think it’s bad news for livestock farmers who rely heavily on soybean meal.
Not the case. "I just don’t know what this country is going to do with all of the soybean meal that comes from making renewable diesel," said AgResource Company president Dan Basse. He went on to say that soybean meal could be very cheap in the next 2-3 years.
All in all: outstanding news for American soybean farmers—and more fuel for the fire for low carbon options.
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→ Tariffs are corny. After 20% tariffs on U.S. ethanol exports were set to begin Jan. 1, Brazil has suspended those, and the two countries will continue working on a longer-term solution for the trading relationship.
→ Bovine bandits. In Colorado, someone stole 80 pregnant cows from an 18,000-acre ranch, hitting the owner with a loss of about $100K.
→ Export explosion? The USDA is investing more than $200M to help 60+ ag organizations expand international markets for U.S. farm and food products.
→ Autonomy over… autonomy? China has called for more self-reliance when it comes to ag technology, including seed development and core equipment.
→ Hitting pay dirt. After a year of several record farmland sales, experts say the farmland market is expected to stay strong into 2023.
→ Secure the grains. A new proposal in Japan would increase domestic wheat acreage by 9% and soybean acreage by 16%, as the nation tries to be less reliant on imported ag products.
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EPA Hopscotches SCOTUS on WOTUS |
Skyhobo from Getty Images Signature
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The Environmental Protection Agency (EPA) used the second-to-last day of 2022 to clarify which U.S. waterways are protected by the Clean Water Act—even though it’s unclear what authority they have to do so.
The EPA’s new rule returns the Waters of the United States (WOTUS) to reworked, pre-2015 Clean Water Act protections for streams, wetlands, and other waterways.
Meanwhile, the Supreme Court of the United States (SCOTUS) is still debating the EPA’s Clean Water Act jurisdiction and the definition of WOTUS. A decision is expected in 2023.
Soundbite: "Why this rule is coming out now when they could have waited and taken into consideration the Supreme Court decision that’s pending, makes no sense. All we’re doing is going to add into uncertainty," said incoming National Cattlemen’s Beef Association President Todd Wilkinson.
But the EPA’s rule coming before the Supreme Court ruling gives the government space to interpret the SCOTUS decision when it comes.
Backstory: The Obama-era WOTUS rule was criticized for being overly restrictive, kicking off court battles. The Trump administration repealed that rule and replaced it with its own rule, which was struck down in 2021 by a federal judge.
The rule: Longstanding exemptions for farming activities will remain in place. A Trump-era exclusion for prior converted farmland is out.
Where this goes: It’ll go into effect 60 days after its formal publication in the Federal Register.
But legal backlash is expected from farmers, developers, and businesses who may find fault with inconsistencies with the Clean Water Act.
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Innovation has always been at the heart of farming.
Dreaming, inventing, and experimenting with new tools, equipment, and products is what allows farmers to continue improving their operations.
And if there’s any company at the forefront of helping farmers for the future, it’s Beck’s.
That’s exactly why the largest family-owned retail seed company in the United States launched its Practical Farm Research (PFR)® program.
With 400 studies across 700+ acres, PFR evaluates hundreds of new management practices and inputs, delivering unbiased agronomic data to help farmers make better decisions and increase profitability.
So, do you want in on all the intel, the know-how, the knowledge…?
Reserve your spot for an upcoming PFR Insight Meeting today.
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When it comes to ag policy in 2023, four major issues are considered to be top of mind for the industry.
Can you name them?
Answer at the bottom of the email.
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As 2022 came to a close, a number of ag-related appropriations hung in the balance of the omnibus bill. Other legislation didn’t quite make the cut as the sun set on the year.
On the (omni)bus: The consolidated bill is estimated to provide $1.7T in funding. That includes dollars toward ag, including $25.48B for USDA funding, reimbursing Commodity Credit Corporation losses, adding to food aid, and cracking down on conservation easements.
The legislation laundry list also includes supplemental appropriations for disaster relief. Specific assistance ($250M) is going to rice farmers struggling with flat prices and surging inputs. Disaster relief will also provide ad-hoc aid for livestock losses.
Off the (omni)bus: Legislation exempting farmers from Securities and Exchange Commission reporting requirements didn’t make it to the bill despite overwhelming support from farmers and ag organizations.
Reform for farm labor also didn’t make the cut. The Affordable and Secure Food Act would have reformed the H-2A visa program and provided other paths to improve ag labor challenges.
A lack of bipartisan support prevented the ag labor reform piece from passing in the Senate omnibus spending bill. While many industry groups support the act, the American Farm Bureau Federation isn’t among them, saying a system with more stability is needed.
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The new farm bill, trade policy, immigration reform, and crop insurance. For more info on each, keep reading here.
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Magnetic Ag
P.O. Box 7292
Greenwood, IN 46142-6423
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