Good morning.
In need of a good laugh? Us too.
Look no further than the world of TikTok agriculture influencers. From cow whisperers to chicken dancers, these ag-themed accounts are sure to tickle your funny bone and maaaybe even educate you a little in the process.
Life on the farm is anything but boring!
The News:
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Andrey Grigoreiv, Getty Images
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How many farmers does it take to change a tire on their tractor? None, the tires are late because of supply chain issues.
Are you yanking my chain? ‘Fraid not. Although fertilizer availability is better this year, the farm equipment sector is still feeling the brunt of the supply chain snafus. So much so that one farmer’s retirement auction set record-high prices for tractors and a planter.
At the National Farm Machinery Show (NFMS) in Louisville, Kentucky, last month, ag equipment experts say the hurdles aren’t getting much lower – at least during the first part of 2023. And even though NFMS had booths showcasing the latest in technology and equipment, bringing these new innovations to market may be pushed back a bit.
What’re we short on? Castings – and manufacturers say those are a major hurdle for all types of equipment. The Association of Equipment Manufacturers (AEM) surveyed its members and found:
- Of the 179 companies AEM surveyed, 98% are still experiencing supply chain issues; and 58% are experiencing worsening conditions.
- The most sought-after components are tracks (and their included components): only 27% of optimal inventory is available.
- In both the agriculture and construction sectors, semiconductors and chips are in short supply: 44% optimal inventory is available across both sectors.
- Wiring harnesses, often made in Ukraine, are in short supply.
- Seat cushions made in Texas are in supply chain holdups.
Soundbite: "We're conditioned to expect the black swans to the point where they're no longer black swans, they're just kind of inevitable disruptions," says Sam Taylor, farm inputs analyst for Rabo AgriFinance, RaboResearch.
Practice means patience: The good (or at least better) news is that suppliers are expecting things to improve during the second half of 2023.
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→ War zone. 100+ mph winds shook parts of Texas, Oklahoma, and Kansas last weekend with experts noting that the dryland wheat crop may see 80%+ abandonment.
→ CRISPR calves. UK-based biotech firm Acceligen's gene-edited calf has demonstrated a 96% reduction in susceptibility to bovine viral diarrhea virus (BVDV), according to a recent study.
→ Stuffing the (seed) vault. The Svalbard Global Seed Vault, also known as the "Doomsday Vault," received 60,000 new seed samples, upping the total to 1M+, as global efforts to secure food supplies ramp up.
→ Cargill is milkin’ it. The agribusiness giant donated $500,000 to the University of Idaho to help build the largest research dairy facility of its kind.
→ Speaking of milkin’ it… A 13-year-old registered Holstein cow named "Ever-Green-View My Gold-ET" set a new record for the most lifetime milk production, producing over 77,000+ pounds of milk in ~6 years.
→ Oh, no you don’t, Mexico. The U.S. is considering all options if it cannot resolve a trade dispute over Mexico's potential ban of genetically modified corn in the country, potentially affecting $2.7 billion worth of corn exports.
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Global Beef Market Watchers: |
Strong prices. Weak futures. Tightening supplies. Uncertainty abroad.
So… what will the future look like for beef markets?
Well, just like your grandma’s seven-layer dip, there’s a lot that goes into it.
Global gadzooks: Due to a host of situations at home and overseas, the answer to that question is dependent on many factors. Let’s break it down:
Markets to watch: Beef exports out of Europe were significantly down last year, and supplies are tight in New Zealand as they recover from Tropical Cyclone Gabrielle.
Elsewhere, supply is going up. Both Mexico and Australia are projected to ramp up their production of beef this year.
But these are the more "minor" players…
The Big Leagues: China, Brazil, and the USA are expected to be the real market drivers.
Easing COVID restrictions will increase demand for beef in the Far East (imports to China were already up 15% last year). And in a market historically driven by the food service industry, retail sales of beef in China are actually expected to go up as well.
And Brazil is ready to deliver. Assuming they quickly get over the BSE scare reported earlier this week, the South American nation is planning to approve more beef production plants for exports to China.
Home sweet home: In the US, tight supplies are going to drive the markets. The USDA reported that the number of beef cattle in the US is at its lowest point since 1962. Holy cow.
Increased input costs and lack of forage due to drought ramped-up cull rates, and supplies are getting tighter.
Where this goes: What does the future hold? We’ll see. But consumer prices in the US should stay elevated for quite some time.
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River levels (both high and low!) have been making recent news for farmers across the country.
And the mega Mississippi River was not absent from some of those headlines.
So, let's test your knowledge of the famous waterway as it pertains to agriculture...
The river is a huge part of the country's agriculture system, with ___% of the nation's agricultural exports being produced in the Mississippi basin.
Answer at the bottom of the email.
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Spring Brings... Farm Bill Talks |
As March rolls in, farmers and ranchers turn their thoughts to spring work; calving, planting, and the Farm Bill.
The House Ag Committee held their first hearing on the 2023 bill, where opening statements pointed out challenges farmers face and brought plenty of politicking.
Addressing Inflation: Ever increasing input prices were front and center at the hearing. In his opening statement Committee Chair Glenn "G.T." Thompson (R-PA) pointed out that the price of diesel has gone up 95% since 2020 and fertilizer inputs are up 125%. Representatives of the Farm Bureau Federation encouraged committee members to widen commodity program baselines to address increased costs of production.
Regulating the Regulations: Thompson also hit the current Administration hard on regulations, saying, "In fact, this Administration continues to promote nonsensical regulations and policies that create needless uncertainty for farmers, ranchers, and working families, further limiting our ability to meet the growing food demands of our nation and the world."
Committee Ranking Member David Scott (D-GA) pointed fingers at the Trump Administration, claiming the trade war with China was devastating for American producers.
Can’t We Get Along? Industry witnesses from a wide swath of ag sectors encouraged the committee to take a hard look at rules including the Packers and Stockyards Act and Waters of the US. Clarity and a bipartisan approach were urged. Zippy Duval, President of American Farm Bureau pointed out that the Farm Bill has been a bipartisan effort in the past and presents an opportunity to, "rise above partisanship."
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Written & Edited by Sheridan Wimmer, Kevin Cross, Jen Hill, Travis Martin, Dawson Schmitt
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