Good morning.
We know you probably have barbecues, fireworks, and hot dogs to get to, so we won’t keep you long today.
Peace out from the Magnetic crew, and we hope you have a great long holiday weekend—and a happy start to the second half of 2022 (already?!).
Let’s get to the news.
The News:
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Soybean Speculation Submits to King Corn |
The ag community was on the edge of its collective seat yesterday with nail-biting anticipation reminiscent of a royal birth announcement or the CMAs.
And when the USDA’s annual acreage report was revealed, "The crown goes to…"
King Corn.
Monarchy still intact: Although some pre-report speculation suggested otherwise (more on that in a moment), soybean acres took a backseat to planted corn acres—just like they have since 1984.
By the numbers: According to yesterday’s report, the USDA estimates that farmers planted a total of 89.9M acres (ma) of corn this year. And soybeans? 88.3 ma.
Speculation season: Before the announcement, several analysts suggested that soybean acres would overtake The King, citing skyrocketing fertilizer prices and a renewable diesel boom.
But it seems they were a bit off. And so was the USDA.
When the USDA released its Prospective Planting report back on March 31, it projected that farmers would plant 89.5 ma of corn and a whopping 91 ma of soybeans.
A good showing on corn projections, but in light of its soy estimates, let’s just say we won’t be taking the USDA as our betting buddy to the track.
Overall, corn acres were down 4% from last year, and soybean acres were up 1% from 2021.
Wheat and wild: With so much speculation centered around the tally of corn and soy acres, it’d be easy to skim over corn’s shorter cereal cousin. So how did wheat stack up? 47.1 ma planted—the fifth-lowest since records began in 1919.
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→ Meat mistakes. The National Chicken Council asked the FDA and USDA for stricter mandates on labels for meat alternatives; its survey shows 1 in 5 Americans have accidentally bought a meat alternative because of a confusing label.
→ Harvesting heartbreak. Faced with the possibility of the Russian army stealing and selling their wheat, Ukrainian farmers have taken to destroying combine equipment so the Russians can’t harvest their crop.
→ R-CALF won’t go to SCOTUS. The Supreme Court has said it won’t hear the case involving the Ranchers-Cattlemen Action Legal Fund’s battle against several beef councils nationwide over their use of "checkoff dollars."
→ Funding extension for shelf-life extender. Chinova Bioworks raised $6M in a Series A round, and plans to use it to grow its team and enhance production capacity of its alternative to chemical-based food preservatives.
→ Cash for conservation. According to Louis Dreyfus Brazil’s CEO, a successful deforestation strategy in the country will have to include compensating farmers for instituting conservation practices.
→ Hog heaven? Not so much. The USDA is predicting tighter hog supplies through the end of 2022, and into 2023, with inventory down 1% this month and expected farrowing numbers for the coming months on the decline too.
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Are Fishing Subsidies Fin-ished? |
Ozturk | Getty Images Signature
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It’s oh-fish-ial.
After 20 years of negotiations, the World Trade Organization (WTO) reached a whale of a deal to decrease subsidies in the fishing industry to reduce overfishing.
What are we talking aboat: According to the Food and Agriculture Organization (FOA), 35% of fisheries are overfished these days (compared to 10% in 1974). With higher fish prices (25% increase in the first four months of 2022), overfishing was only going to get worse.
There’s also an indication that almost 40% of marine species have decreased over the past 40 years. That’s why, in Geneva last week, the Fisheries Agreement was established to:
- Preserve the world’s oceans
- Boost failing fishing stocks
- Protect communities who depend on marine resources
And the how: Countries in the WTO (164) will ban subsidies to illegal, unreported, and unregulated (IUU) fishing (which represents 12-28% of fishing globally), and limit subsidies to other fisheries.
The agreement does allow for subsidies if they are used to rebuild fishing stock. There are also measures to enhance transparency and government accountability for the way they’re distributing said subsidies.
Before anyone takes a port bow: There are some conservation groups who say there are still subsidies needing to be fixed, and the deal doesn’t go far enough to prevent overfishing.
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It's Gonna Be A Barn Burner |
They say ‘Midwest is Best.’
And they weren’t wrong if they are talking about the AgTech ecosystem in the Corn Belt.
That’s exactly why The Combine and partners are hosting AgTech Connect 2022 on July 20!
What can you expect during AgTech Connect 2022?
Here’s a sneak peek:
- Keynote address by a soon to be announced leader in Corporate Venture Capital
- AgTech Startup Showcase including Grain Weevil, Corral Technologies, TreadSure, Bluestem Biosciences and NAVE Analytics.
- Sustainability Panel
- Investing in AgTech Panel
- Happy Hour
With topics and discussions relevant for farmers, investors, and founders, it’s sure to be jam-packed event!
Don’t wait. There is a limited number of spots available! Register here.
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Turning Waste into Wealth?
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Build Back Better is now Build Back… Biobased?
The Biden admin is setting aside $10M from its bipartisan infrastructure bill to create a pilot program that will boost production of renewable ag materials.
One farmer’s trash is… their treasure: The goal is to spur development of biobased materials that can lower farms’ carbon footprints—and drum up new income streams for farmers. Win-win.
This is no BS. Ag Secretary Tom Vilsack pointed towards farms raising livestock as having potential to develop more renewable materials. Animals produce—well, a lot of waste.
Traditionally, there hasn’t been much to do with that waste, and it sometimes finds its way into our rivers, Vilsack said. Finding alternative uses for that waste will be a cornerstone of the pilot program.
Soundbite: "This program will help farmers take field residues and waste products and turn them into value-added products that create wealth and drive economic development in rural areas," Vilsack said.
What’s next? Up to $10M will be divided among the "highest rated applications," which can include entities from the private sector as well as eligible universities. Info about the grant application process can be found on the National Institute of Food and Ag’s website.
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AgWeb put out a recent poll that got caught our eye and we’re curious if Magnetic readers can pick the leading vote-getter.
Readers were asked "What is one childhood farm chore you do NOT miss?".
Can you guess which chore below got the most vote?
- Chopping weeds in soybean fields
- Hauling in square straw/hay bales
- Picking up rocks
Answer at the bottom of the email.
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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.
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Chopping weeds in soybean fields was the winner (or loser, depending on how you look at it)
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Written & Edited by Kevin Cross, Sheridan Wimmer, Ashley Scoby, and Travis Martin
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P.O. Box 7292
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