Good morning.
The working guard dogs from the Huntsville, Texas prison are taking on a second job:
Potentially sniffing out bovine respiratory disease.
Texas A&M researchers are looking into the possibility of dogs being able to detect BRD, which is a big challenge for feedlot cattle.
In the past, canines' noses have been used to detect human diseases. So researchers hope the same could be true for livestock diseases like BRD.
Researchers are starting their second study this year, and have tapped the guard dogs from the Huntsville prison to participate.
Hope those dogs got a nice raise.
Stories:
- "Volatility": 2023’s Word of the Year
- The 2023 Protein Forecast
- Mad Funds for Regenerative Organic Farmers
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"Volatility": 2023’s Word of the Year |
Wow… glad that’s over.
For many in the ag industry, 2022 delivered all of the ups, downs, twists, thrills, and shrieks of Space Mountain—without the certainty that the craziness would eventually come to a halt.
So as we wrap up the old and ring in the new, what can we expect from grain markets in 2023?
Who knows.
Wheat, corn, and soybean prices all slumped early this week, and export demand is down pretty much across the board.
Yet there are some theories on what we need to be watching…
Weather woes: Last year was DRY, and the drought continues across much of the Plains and Western Corn Belt. The amount of rainfall—in the right place at the right time—will, as usual, be a big determining factor in what grain markets look like.
And let’s not forget our friends to the south. Brazil is rockin’ and rollin’ with good weather, but Argentina is stuck in a hot and dry cycle. Both are certain to impact global grain trading.
Geopolitical issues: War. China. COVID. Have we heard this before?
As the Russo-Ukrainian war rages on, markets remain volatile, and people across the globe who rely on crops from the steppe are starving.
The war, paired with the uncertain future of China’s COVID policies (and their impact on global grain exports), creates a geopolitical storm that leaves markets scrambling for shelter.
What’s ahead: This year’s outlook may be up in the air, but due to market volatility and high input costs, James Mintert, agricultural economist with Purdue University, noted this: "We expect farm incomes and margins to tighten up in 2023."
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→ Out of this world. The first ag-specific satellite launched this week; the plan is for 7 to be launched between now and 2026 to gather data on crop monitoring, yield prediction, soil moisture, biomass levels, and more.
→ New at the helm… Army vet Alexis Taylor was sworn in as the USDA’s Under Secretary of Agriculture for Trade and Foreign Agriculture Affairs, and will work on food security issues, promoting U.S. exports, building trade relationships, and more.
→ Export expectations. The projection for 2023 ag exports from the U.S. is down $3.5B, with soybeans, cotton, and corn exports expected to fall, while beef, poultry, and wheat should climb.
→ The clash over… mustard? India’s supreme court is debating whether genetically modified mustard is okay to be commercially released; it could signal the beginning of one of the world’s largest food producers switching to GM crops.
→ Testing, testing. The USDA is researching how to track COVID in wild and domestic animals, including the development of field tests and a model for predicting which species could host the virus.
→ Dairy high prices. As commercial use of milk and other dairy products increased toward the end of 2022, milk prices set a new record of $25.50 per cwt (up from the previous high of $24 per cwt set in 2014).
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The 2023 Protein Forecast |
We asked the Magic 8 Ball for 2023 predictions of the U.S. animal protein industry. Response: "Reply hazy, try again." Helpful.
Nice to meat you: Even with so much going against the U.S. animal protein industry over the past three years—record high feed costs, labor shortages, and supply chain issues—it’s seen "phenomenal" financial performance.
What we’ll see in 2023: Those issues stacked against the industry will continue in 2023, putting a cautionary tail on expanding production. Major market participants will likely pause and guard balance sheets.
Total meat and poultry production is expected to decline by 1% in 2023—largely in beef production (7.6%) because of drought-driven contraction.
Poultry is expected to expand, even with pressures of diseases. Pork production will go up 1% from 2022.
It’s me, hi, I’m the problem, it’s me: Increased interest rates equals declined consumption rates. While grocery store sales are rising, it’s not quite as fast as the inflation rates—and this trend is expected to get even worse in the first half of 2023.
Wurst-case scenario: Many experts project a world meat shortage in the coming years. The beef production downturn is said to be the start of it.
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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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CES (Consumer Electronics Show) opened yesterday in Las Vegas. While you may wonder what this has to do with agriculture, John Deere has been making headlines and turning heads at the show since the company’s first exhibit there in 2019.
This year, Deere won CES® 2023 Innovation Awards Best of Innovation honors in the Robotics and the Vehicle Tech & Advanced Mobility categories.
For which product did Deere receive these awards?
Answer at the bottom of the email.
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Mad Funds for Regenerative Organic Farmers |
After a mad $4M seed funding round, Mad Capital inches closer to its goal of shifting 10M acres to regenerative agriculture by 2032.
Mad Capital is mad about regenerative organic and transitioning farmers. It provides customized, one-stop credit specifically for this audience, offering operating, equipment, and infrastructure loans, plus mortgages, working capital, and transitional loans.
While traditional banks provide the majority of farmers with financing, those institutions are usually poorly equipped to provide transition financing.
When you switch to organic/regenerative practices, consistent yields don’t come instantly—and can take 3+ years. Most farms aren’t ready to handle that financial setback.
Enter Mad Capital, who partners with these banks/non-bank lenders. Mad Capital blends the financing with "innovative capital," aka long-term flexible financing from the private funds it raises.
Soundbite: "Regenerative agriculture aspires to work with nature, rather than against it," said Mad Capital co-founder Phil Taylor. "Mad Capital is a bold reimagination of financing in nature's image, empowering farmers to create farm ecosystems that are good for the earth and good for humanity."
Feeling rad: Mad Capital plans to use the seed funds to boost operations, expand its farmer ecosystem, and transition more acres into regenerative organic farms.
Mad Capital currently finances 44K acres, but hopes to finance 10M by 2032. While most farms it works with are approximately 2K acres, it works with farms as large as 12K and as small as 40 acres. The company looks to finance 100K acres in 2023.
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Written & Edited by Kevin Cross, Sheridan Wimmer, Amelia VanLandegen, and Ashley Scoby
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