Good morning.
We're going to ask you to guess a number:
How much does the ag sector contribute to the American economy?
Only after you guess a number do you get to peek at the real answer here.
Unsurprisingly, the economic impact of ag is massive. But there are even more fun facts in new research from The Food Industry Association, including that Hawaii had the biggest gains from 2022, and total exports were up by a whopping 24%.
So thanks to all the Magnetic readers who helped contribute!
P.S. Round 4 of Magnetic March Madness is open. Don't forget to vote! You can find the current bracket and the deets on the scroll.
The News:
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Tai Says Tariffs Are Stickin’ Around |
Ask about the U.S.’s current plan to address tariff trade barriers and you might hear… crickets.
Or at least, that’s what the takeaway was from a recent Senate Finance Committee testimony from U.S. Ambassador Katherine Tai. She shared current plans—or really, the lack thereof—to reduce tariffs on U.S. products. Not a single country is in negotiations right now.
But Tai says barriers facing farmers and ranchers are a "top line priority" for the U.S. trade agenda.
By the numbers:
- U.S. ag exports reached $196B in 2022
- USDA Economic Research Service says that number could slide to $184.5B in 2023
- A trade deficit is possible in 2023 as ag imports could reach $199B
Ag trade turbulence: Discussing trade issues with everything from biotech corn to apples, poultry, and cotton, lawmakers from across the aisle and across the country expressed concern about remaining on the sidelines for trade deals. The one tariff reduction on the horizon is for India to reduce its tariff on pecans to 30%.
Eyes on Indo-Pacific: Tai stated the U.S. is currently focused on the Indo-Pacific Economic Framework, which is intended to strengthen partnerships and economic growth among 13 countries. Tariffs are not specified as a focus for IPEF.
Where this goes: Lawmakers pushed for the UK to be the first country approached for a free trade agreement. The hope is the Biden administration will pull Congress in to empower a trade promotion authority to… well, get to work.
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→ Waiting on WOTUS. A Texas judge put an injunction in place in his own state and in Idaho over the Biden administration’s "Waters of the U.S." rule.
→ Rocketing sustainability. Ag startup Agmatix is partnering with NASA’s Food Security and Ag Consortium to help farmers improve their conservation management and take up sustainable practices.
→ Innovation on the incline. Syngenta is launching a global platform to offer innovation challenges and a startup accelerator for early-stage ag companies.
→ Not on my land. The Iowa House passed a bill that would require pipeline companies to get 90% approval of their routes before using eminent domain for the rest; the legislation will now head to the state Senate.
→ Surplus of cereals. In the Midwest, farmers plan to plant more corn and wheat this year in an effort to fill the void left by supply deficits out of Ukraine and ongoing high prices.
→ Heating up funding. The Biden admin is sending $197M in grants to help 22 states and seven tribes prep for wildfire season.
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Spring is here, and we can finally feel the temperature rising.
Magnetic March Madness is heating up, too. We’re only one week out from selecting the champion.
Vote today to send your favorite brands to the Final Four.
Voting is open through Thursday at noon CST.
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Pepsi Pays to Play the Regenerative Game |
PepsiCo Inc has popped into the regenerative ag game. The company announced a $216M investment in three ag-based groups, funding regenerative acres and reduced carbon emissions.
By the Numbers: PepsiCo has different goals for each partner, aiming for complete implementation by 2030:
- Practical Farmers of Iowa (PFI), 1.5M regenerative acres
- Soil and Water Outcomes Fund (SWOF), 1M regenerative acres
- IL Corn Growers Association (ICGA), 600K regenerative acres
500K regenerative acres are expected by the end of 2023 and a reduction or removal of 3M metric tons of greenhouse gas by 2030.
Soundbite: "As the climate crisis continues to escalate, the threat to our food system increases as well. It's critically important to partner, for the long term, with organizations that have earned the trust of farmers as they make the transition to adopt climate-smart agriculture practices." — Jim Andrew, PepsiCo chief sustainability officer
Sweet spending: According to PepsiCo, the money will provide cash for farmers to pay for cover crop seed, education projects, carbon sequestration, and water quality improvement projects.
Another label: Much like "natural" or "superfood," regenerative ag has yet to be officially defined. PepsiCo says it’ll work with Sustainable Agriculture Initiative and the USDA’s Climate Smart Commodities program to help create a credible program, but it may not include a package label.
"We know that for our customers, our consumers, our shareholders, these issues are important at the meta-level, but this particular announcement is not tied to any sort of on-pack label." — Margaret Henry, senior director, sustainable agriculture strategy and external engagement
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A cocaine smuggler has brought a whole new meaning to "Cocomelon." And we definitely aren’t talking about the kids’ show. Last week, U.S. Customs and Border Protection intercepted $1.5M worth of cocaine concealed in a shipment of melons.
Any guesses on the type of melons?
- Cantaloupe
- Cucamelon
- Honeydew
- Muskmelon
- Watermelon
Answer at the bottom of the email.
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AgTech Startup Goes Micro |
The current carbon craze has companies battling climate change on the micro level.
California-based Andes is harnessing the power of microorganisms to benefit plant health and sequester carbon dioxide out of the atmosphere. And it’s doing it through crop production.
How does it work? The company is using what it calls Microprime, a seed treatment technology that releases microorganisms into the soil. As the plant grows, the microorganisms capture carbon from the atmosphere and store it in the ground.
Additionally, it fixates nitrogen from the air into the soil, encouraging plant health and reducing the need for synthetic fertilizers.
Now that’s a two-for-one!
By the numbers: Andes has secured $38M in funding to date. Investors showing interest in the project include Voyager VC, Yamaha Motor Ventures, Leaps by Bayer, Cavallo Ventures, KdT Ventures, Venturance, Germin8, and Accelr8.
The company estimates it has sequestered more than 50K tons of carbon. Last year, Andes partnered with U.S. Midwest farmers, installing the Microprime seeds across 25K acres.
The company claims that farmers enrolled in its Carbon Removal Program have increased their net income by up to 25% by participating.
Soundbite: "Catastrophic climate disasters that jeopardize human life and natural resources are inevitable without high-permanence, scalable carbon sequestration. Andes is proud to transform the carbon dioxide removal industry with the tools that are required for a brighter, livable future for all." — CEO Gonzalo Fuenzalida
Increased interest: Since securing more partners in the U.S., Andes expects a threefold increase in interest from farmers.
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E. Watermelon. One hundred and twenty pounds of narcotics were hidden in the trailer full of watermelons.
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Written & Edited by Kelsey Faivre, Jen Hill, Dawson Schmitt, Amelia VanLandegen, and Ashley Scoby
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