Good morning.
There’s beer. There are tractors. And now there are tractors on beer. (But we don't recommend you drink that beer on a tractor). Got all that?
Busch Light is launching limited-edition John Deere beer cans as part of its For the Farmers campaign. Even cooler than the design is that Anheuser-Busch will donate $1 for each case sold of the green and yellow cans to Farm Rescue, which sends aid to farmers in crisis.
We’re also green with envy over the two companies’ Cornfield Cornhole event next weekend, where they’ll sling-shot hay bales into a giant cornhole board—which just sounds like a great time.
In a year where challenges for farmers have been pretty much nonstop, the partnership could be liquid gold for many in need.
We’ll drink to that.
The News:
- Ag Shipping Back on Track(s)
- Got Milk Employees?
- Sencrop's Microclimate Magic
|
Ag Shipping Back on Track(s) |
Keep your marketing and production input plans in place.
‘Cause rail shipping may finally be back on track.
Late last week, the Surface Transportation Board (STB) issued new rules requiring all Class I railroads (aka, "the big guys") to submit frequent status reports while the STB investigates railway congestion.
In English? Keep us updated while we determine how to deal with your issues.
Background: For months, rail delays have caused major headaches across the country—and agriculture is feeling the brunt of the slowdowns.
By the numbers:
- Grain train speed: down 6%
- Terminal wait times: up 22%
- Railcar delivery bids: up $3K over average cost (USDA report)
In response, the STB held an "Urgent Issues in Freight Rail Service" hearing late last month, telling dozens of rail shippers to basically, "say whatever you want."
And they did… practically railroading Class I companies.
The National Grain and Feed Association, representing companies that operate over 8,000 grain facilities, testified and noted how railcars delayed at their facilities due to COVID-related labor shortages are charged demurrage fees.
But if the railroad fails to move filled cars due to the same labor issues… the grain facilities aren’t compensated.
Yeah… like that’s fair.
The NGFA estimates that revenue loss for member companies due to RR issues topped $100M—just for the first quarter of 2022.
Where this goes: Under the new rules, Class I carriers must develop comprehensive service recovery plans while the STB extensively monitors the improvement process.
Fingers crossed that growing-season crop inputs and marketed commodities will be riding the rails with a little more speed.
|
→ Thriving. Japan’s Kubota Corporation has invested in Silicon Valley startup Parcel THRIVE, which works to optimize the production value chain for specialty crops like fruits, vegetables, and nuts.
→ Bayer’s big bump. Sales at Bayer Crop Science shot up 21.6% in the first quarter of 2022, including major sales increases in their corn seeds/traits, herbicide, environmental science, and fungicide divisions.
→ Rural financial strain. There are more than 24K farm families who are delinquent in their USDA loans or are already near foreclosure, according to U.S. Ag Secretary Tom Vilsack’s testimony at the Senate Ag Appropriations Committee.
→ White House bringing the WiFi. A new program from the Biden admin would bring broadband access to 80% of Americans (50% of rural areas), plus lower or eliminate costs for certain eligible households.
→ Yet another shortage? With diesel gas prices hitting new record highs this week, plus higher demand and decreased production, the fuel could be the next shortage farmers face, in addition to equipment parts, inputs, and more.
→ Dark news from the Black Sea. The ongoing disruptions to the worldwide grain market because of the war in Ukraine could last several years, according to Graincorp in Australia.
|
The worker shortage is affecting industries across the board, but it’s becoming udderly impossible for dairy owners to find people to work.
COVID is really milking it: Many farms rely on the H-2A visa program to employ immigrants, but because of the ‘vid (COVID-19, of course), the rate of incoming immigrants has slowed.
Like, molasses slow.
They estimate the U.S. is short 2M immigrant workers, compared to if the pace stayed the same. This only adds to the increased pressure on an already-struggling supply chain.
Dairy frustrations: The H-2A program has seasonal restrictions—but the dairy industry isn’t seasonal, it’s a year-round gig. The National Milk Producers Federation (NMPF) is asking the Biden administration to exempt dairy worker positions from the H-2A’s seasonality restriction.
While there is a lot of debate about the rising levels of migration at the U.S. border, some lawmakers and advocates say the high inflation rates and labor shortages churn the need for immigration bills to help the economy.
Soundbite: "Overall, there’s a huge disconnect from the government and legislative level and how that gets down to the field level to actually help farmers," says Florida dairy farmer Brittany Nickerson-Thurlow. "Federal officials need to adapt to changes in how programs are done to make sure the dairy industry, and the communities they serve, continue to thrive."
|
Grains: Wheat soared while corn and soybeans weren't far behind after yesterday's WASDE report.
Livestock: Worries over consumer demand related to prices took down all livestock.
*As of Market Close [5/12/22]
|
It's Time to Plant a New Investment |
NFTs. Cryptocurrency. Blockchain. In today’s digital world, it can be hard to figure out where to invest your hard-earned money—and hard to see what you’re actually investing in.
But farmland? That’s a real asset, run by real humans, earning real, steady returns.
And investing in farmland doesn’t get much easier than with Field Yield. Invest in curated, sustainably operated farms chosen by the Field Yield experts. Use their digital platform and join other investors as you watch your portfolio grow.
Even during periods of recession or heavy inflation (hello, 2022), research shows that farmland value holds strong.
Hedge against inflation, diversify your portfolio and invest in a time-tested, vital industry: now that’s an investment worth making.
Learn more about how Field Yield is democratizing farmland ownership, and how you can get started investing today.
|
Sencrop's Microclimate Magic
|
Forecasting a weather event in ag is somewhat like a traffic jam in Atlanta. You know there’s probably going to be one (sorry, Atlanta), but how bad is it going to be?
Then came Waze. Crowdsourced information can tell us where the cops are and when to slam on the brakes.
Now, ag’s getting its own weather Waze.
Thanks to French startup Sencrop, crowdsourced information is uncomplicating climate forecasting, now with an additional $18M in Series B Funding.
How it works: A network of connected weather stations, plus a subscription, gives customers access to real-time data on temperature, humidity, wind speed, rainfall, and sunlight. Farmers can pick their poison for forecasting models to get ahead of agronomic risks.
The company has already sold 20K weather stations, so you could say the tech is taking Europe by storm.
Soundbite: "Sencrop's mission is to democratize precision farming and reduce crop risks for farmers," says Martin Ducroquet, Sencrop Co-Founder and General Manager.
Turn off the truck: There’s no more checking fields with Sencrop. Without hitting the dirt, farmers can see the real-time and future conditions of their fields to:
- Activate antifreeze systems at just the right moment
- Predict and protect against diseases and pests
- Plan out irrigation based on real water needs
Up next: North American expansion. The round’s funding will help Sencrop stay strong in its core markets and build international steam.
|
While planting might be on the mind of most Magnetic readers these days, there are a few of you hard at work harvesting.
Specifically, asparagus growers.
Harvest is underway in the nation’s largest producing state, where 60% of the country’s asparagus is grown. Which state below is it?
- California
- Michigan
- Washington
Answer at the bottom of the email.
|
Why are you keeping us a secret? Make sure to share Magnetic with friends, family, and coworkers to snag Magnetic goodies when you hit certain referral counts.
Your link:
*Curious where you stand? You can always check your referral hub and see rewards here.
|
|
|
Written & Edited by Kevin Cross, Sheridan Wimmer, Kelsey Faivre, Ashley Scoby, and Travis Martin
Were you forwarded this email? Sign up here.
Best jobs in agriculture → Magnetic Ag Job Board
|
ADVERTISE
Not feeling Magnetic anymore?
Break our hearts and unsubscribe here.
Magnetic Ag
P.O. Box 7292
Greenwood, IN 46142-6423
United States
|
|
|
|
