Good Morning.
A man will spend 6 years in prison for running a multimillion-dollar fraud scheme related to (wait for it)... cow manure.
For 5 years, Ray Brewer told investors that he was building anaerobic digesters at dairies that would turn manure into green energy. And that little white lie brought in the green: after being told they'd get 66% of all net profits, investors gave $9M to the enterprise.
The man produced fake construction schedules, fake invoices, and even fake photos to keep his investors "updated."
Now that's some real bull.
Stories:
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USDA Report Highlights Market Concentration |
The USDA’s Economic Research Service (ERS) released a study reviewing the last 40 years of consolidation among crop seed, meatpacking, and retail companies.
Giant mergers faced considerable scrutiny in recent years. The report highlighted how seed prices rose significantly as the industry became more consolidated. And those prices weren’t the only things germinating quickly.
By the numbers: In the study, ERS found that,
Meatpacker consolidation in the hog industry nearly doubled from 1980 to 2019, gobbling up bigger slices of the pie. More strikingly, concentration in the beef industry rose from 36% to 85% during that same period.
Silver lining? ERS notes that concentration can facilitate the exercise of market power, with firms driving sales prices above competitive markets or livestock prices below. But high concentration can also "result from factors like innovations or the realization of scale economies that improve productivity and reduce costs and prices."
Leveling the field: ERS concluded its report with the suggestion that more in-depth studies could be done to measure the impacts of market consolidation. The industry is also awaiting the impact new plants coming online will have on current consolidation in the meatpacking industry.
Soundbite: "The new plants, if realized, will add some additional capacity to the industry. Depending on overall cattle supply conditions, this may or may not have much impact on markets in general but likely will impact regional markets for a period of time." - Derrell Peel, Oklahoma State University Livestock Extension Specialist.
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→ Hot competition. The USDA is dedicating $115M to 15 different projects that will help expand competition in the meat processing industry.
→ Squawking in court? A district court judge ruled that large poultry processors will have to face litigation about their alleged price fixing of chicken products.
→ Stay safe. There was a 41% increase from 2021 to 2022 in injuries of people working in grain bins and other confined spaces, including 22 deaths.
→ A stimulating new program. The Fertilizer Institute introduced the Certified Biostimulants Program, which will label products that follow biostimulant industry guidelines.
→ Protect your neck specialty crops. Expanded insurance coverage from the USDA will help specialty crop farmers get access to more enterprise units and improve their risk management.
→ Market heating up. Record temperatures throughout North America, especially the southern U.S. and Canada, are causing prices to skyrocket for certain commodities, including limes and lettuce.
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Farming without Glyphosate: Bleak 😐 |
Our nation without glyphosate would be… expensive. And a recent study proves it.
Global strategic intelligence firm Aimport Research debuted its report "A Future Without Glyphosate" a few days ago. This report was commissioned by Bayer.
The skinny: Eventually U.S. agriculture would adapt. Key word: eventually. In the meantime, farmers, the economy, and the environment would struggle.
While everyone would face elevated inputs and operating costs, small farmers would be more disadvantaged.
It’s no surprise that the increased costs for growers would also hit your wallets in the grocery store.
And there’s this: A substantial amount of greenhouse gasses would be added to the environment and soil would be lost. If farmers can’t spray, they’ll have to till. Tilling takes tractors, of course, and tractors burn fuel. Plus, boosting tillage methods and increased soil erosion can go hand-in-hand.
Bumping up tillage could add CO2 emissions equivalent to 6.8M cars and increase production costs by $1.9B.
On the world stage, the U.S. is number one for corn. A glyphosate ban in the U.S. would instantly decrease its competitiveness.
Soundbite: "This report confirms what many farmers know, glyphosate is currently a core tool in our modern agricultural system, helping keep costs down and promoting increased conservation practices." — Gregg Doud, Aimpoint Research Chief Economist
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Guess The Price!
The skyrocketing price of farm and grazing land is a hot topic at every farm store across the country. But can you accurately guess the price/acre of these listings?
A) 2,577 acre ranch in Culbertson, MT
B) 9,818 acre ranch in Carmel Valley, CA
C)12,369 acre ranch in Minden, NV
D)1,339 acre farm in New Canton, IL
Answer at the bottom of the email.
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Innova Memphis Manages Millions |
Memphis may be home to BBQ and blues… but it’s also the home of ag innovation, thanks to $40M now headed to the Innova Ag Innovation Fund IV.
Innova invests in bioscience and AgTech startups at the pre-seed, seed, and early stages. The firm’s focus is on automation and digitization opportunities in agriculture.
Backstory: Innova was founded by the Memphis Bioworks Foundation in 2017. Since its founding, the group has invested in many startups, including Clean Crop Technologies, Rantizo, and Kilimo. With the addition of the $40M, the total capital under management is over $100M.
Farmers at heart: Many investors come from Farm Credit institutions, and more than 300K farmers are in the investor base. The fund is part of the USDA Rural Business Investment Program, which is designed to generate wealth opportunities and economic development in rural regions of the U.S.
Soundbite: "We really want to invest in innovation and entrepreneurs that support the farmer, the producer, and are very close to the production of the goods. That’s where we see a lot of fundamental issues: labor shortages, transparency requirements, environmental sustainability," said Innova partner Jan Bouten.
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Per acre listing price: A) $2,481 in MT B)$2,597 in CA C)$7,276 in NV D)$10,380 in IL
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Written & Edited by Dawson Schmitt, Amelia VanLandegen, Kelsey Faivre, Jen Hill and Ashley Scoby
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Magnetic Ag
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Kansas City, MO 64153
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