Good morning.
Punxsutawney Phil saw his shadow yesterday (we all know what that means). But do we all know the (crazy) history of Groundhog Day?
Unsurprisingly, Groundhog Day got its start at least partially because of agriculture. Farmers in the region wanted to know if their crops were going to survive, or if cold weather was going to put their yields at risk.
But did you know that the groundhog... used to be a food product itself?
That's right: in the late 1800s, fluffy little Punxhawtawney Phil’s ancestors used to be cooked up right after making the to-winter-or-not-to-winter decision. Groundhog was considered a delicacy back in the day.
These days, though, Phil is (of course) a celebrity—and has stuck to just predicting the fate of other ag products.
(Here's hoping he's wrong about more winter this year, though.)
The News:
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Rural Inflategate
- Ethanol Takes Flight
- Enko Brings in the Big Bucks
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All aboard the inflation station: Inflation is basically a four-letter word anymore. People everywhere are seeing inflation impacting everything from their grocery store bill to their utility bills.
But research shows that rural Americans are suffering more from increased costs of living compared to urban dwellers.
The limit does not exist: The inflation rate right now is 6.5%. And the Federal Reserve is hoping that increasing interest rates will slow inflation down.
In 2022, the Fed bumped the interest rate seven times and recently raised it another quarter percentage. But good news (?), it’s the smallest increase since last March.
Rural woes: Inflation is determined by the consumer price index—and wouldn’t you know it, rural Americans are left out of this. That’s leaving out 14% of the U.S. population or 46M people. (Sampling error, much?)
An Iowa State University professor found expenses for rural Americans increased by 9.2%, but their earnings only increased 2.6%.
Wide-open spaces: Higher costs for gas and repairs or replacement vehicles impacts rural areas where commutes are longer than our urban friends’. As of 2018, nearly 25% of workers in the most remote rural counties commute 50 miles or more. Urbanites: about 10%.
Getting groceries is a long haul in the country, too. And rural grocery stores are dwindling, making the drive even longer for some rural folks.
Growing old is gonna cost ya: It’s a fact that rural counties typically have an older population. Youngsters move to urban places for work or school.
Aging means high health insurance and medical bills—and those have increased, too. Health insurance in rural areas increased by $517. More visits to the doctor + higher costs at the doctor = higher dollars spent for the aging population in rural areas.
Timing matters: If inflation subsides (fingers crossed), rural communities can bounce back, according to that ‘Clones professor. But if those higher costs stick around for a while, it could mean a crisis for rural households.
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→ Cornered? U.S. trade officials are worried that Mexico’s regulatory process for GMO corn and other products from the U.S. is "not grounded in science," as the two countries continue to try to resolve their trade dispute.
→ Spark of innovation. The USDA is investing $2.7B into 64 projects nationwide that will work to expand and upgrade the rural electric grid.
→ Get your homework in. The deadline for ag producers to return their 2022 Ag Census—online or via mail—is coming up on Feb. 6.
→ Soy many soybeans. Research powered by five different organizations hopes to help soybean farmers maximize their yield potential by measuring how much heat and drought impacts the plants’ flower retention.
→ Getting back into a flow. After the Mississippi River got to record low water levels—and after the Army Corps of Engineers spent weeks dredging it 24/7—barge traffic is starting to return to normal.
→ Cutting-edge for… cutting? JBS plans to start using AI technology for their carcass sorting and cutting processes, hoping to maximize values of the meat.
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matt_benoit from Getty Images
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The forecasts are in: corn is expected to go sky-high.
Like, literally…
Fuel of the future: Earlier this week, United Airlines and friends announced a partnership to develop and produce a sustainable aviation fuel (SAF) that will utilize, you guessed it, ethanol.
"Say that again?"
That’s right. Your ears aren’t deceiving you. Blue Blade Energy, the new partnership, is a joint venture between United Airlines (the airline, duh), Green Plains Inc (an Omaha-based ethanol producer), and Tallgrass Energy Partners LP (an energy infrastructure firm).
Planning to start test-plant construction next year, the group announced it should be fully functional by 2028—producing 135M gallons of SAF annually and up to a total of 2.7B gallons, according to the offtake agreement.
Blue Blade Energy plans to use SAF technology developed by the U.S. Department of Energy, converting ethanol into a low-carbon fuel.
Good for corn farmers: With the project utilizing a whopping 230M gallons of ethanol annually, Todd Becker of Green Plains noted it could be "a game-changer for U.S. agriculture."
Good for the environment: The aviation industry is responsible for around 3% of the world’s greenhouse gas emissions. SAFs can reduce carbon emissions by over 80% compared to traditional aviation fuel and will help United Airlines meet its net-zero emissions goal by 2050.
Soundbite: "The production and use of SAF is the most effective and scalable tool the airline industry has to reduce carbon emissions. … The magnitude of this deal and the volume of SAF that it could bring online in this decade dwarfs everything else." — Michael Leskinen, President of United Airlines Ventures
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Watch out, Gatorade: there’s a new sports drink in town. Soon to be on the shelves of 1,000 Midwestern Walmarts, GoodSport has 33% less sugar than normal sports drinks and three times the electrolytes. The best part? All ingredients are naturally sourced, plus it’s a great source of calcium and B vitamins.
What ag product is GoodSport’s primary ingredient?
Hint: It’s more hydrating than water.
Answer at the bottom of the email.
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Enko Brings in the Big Bucks |
fotokostic from Getty Images
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Bad news for pests: Agritech company Enko has raised another $80M in Series C funding. To date, the crop health startup has raised $150M.
Who is Enko? Based in Connecticut, Enko uses DNA-encoded libraries, machine learning, and artificial intelligence to develop sustainable solutions for farmers fighting pest resistance and crop disease. Since its start in 2017, Enko has used its tech platform ENKOMPASS to generate hundreds of molecules and new chemistries.
Spending that moolah: Enko says it plans to amplify its efforts by advancing the company's product pipeline of novel crop protection chemistries. The aim is also to improve global food security.
In addition to herbicides, fungicides, and insecticides, Enko is also developing biostimulants with the goal of helping crops utilize water and nutrients more efficiently.
The added money was sourced from investment firms Eight Roads Ventures and Endeavor8, agrichem company Nufarm, and legal firm Akroyd LLC.
But they aren’t done yet. According to Enko, moving into Series D funding indicates the company has proven its technology and is ready to go into commercial development. Products could be available on the market by 2030.
Soundbite: "Farmers worldwide are struggling with challenges exacerbated by climate change. Enko is working to help farmers adapt and mitigate some of the key challenges to the food chain around the world: pesticide-resistant weeds, fungus and pests."- Jacqueline Heard, Enko CEO.
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Milk. "GoodSport uses ultrafiltration to deliver milk’s hydration benefits in a clear, all-natural, and refreshing sports drink," says Iowa dairy farmer Dan Venteicher. GoodSport comes in four flavors: lemon-lime, fruit punch, wild berry, and citrus.
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Written & Edited by Sheridan Wimmer, Kevin Cross, Jen Hill, Amelia VanLandegen, and Ashley Scoby
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