Good morning.
🚨 Teaser alert.
We know we’re still 27 days away from the actual basketball tip-off, but we can’t keep our secret any longer…
March Magnetic Madness is coming.
64 ag companies, 4 weeks, 1 champion. Will your team be the winner?
See all the details on the scroll and enter your company today.
Stories:
- Farmland Values See Double
- Sensing Something Big
- Lumber Industry Knocking on Wood
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Farmland Does A Double Take |
Farmland is seeing double. Double digits in its value, that is.
Upskie daisies: Farmland values increased a whopping 22% during 2021, and ag bankers are saying "they’re not done here."
Iowa alone has increased 30% over the past year. Putting this in perspective – the last time farmland values increased this much was in 2011.
According to the Federal Reserve Bank of Chicago, from Jan. 1, 2021, to Jan. 1, 2022, the percent changes in dollar value of good farmland for these five states were:
- Illinois: +18%
- Indiana: +22%
- Iowa: +30%
- Michigan: +19%
- Wisconsin: +12%
Can you take me higher: The increase was aided by low interest rates, subsidies, strong commodity prices and high corn and soybean yields last year. Specifically, corn yields rose 9.4% and soybeans rose 8%.
Up, up and that’s where they’ll stay: Farmers got some nice profits in 2021, but in 2022, the rise of input costs and increased cash rents could hinder profits. However, even with these risks, experts say the ag sector should be well positioned with support from "strong balance sheets, high agricultural commodity prices and sharp gains in farmland values."
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→ Vilsack to pull back the input price curtain? The Secretary of Agriculture noted his interest in the Department of Justice investigating if current farm input prices are justified.
→ Romo to promo beef. Former Dallas Cowboys quarterback Tony Romo will be the new face of the ‘Beef. It’s What’s For Dinner’ brand.
→ China scales back soy. Looking to lessen dependence on imported grains, the Asian nation hopes to cut 30M tonnes of soymeal by reducing its use in livestock feed and using more alternative proteins.
→ Nutrien profits off fert frenzy. Canada-based Nutrien saw a 4x jump in fourth-quarter profit to $1.2B thanks to high demand for potash and other fertilizers.
→ Farm Bill big bets laid out. The National Association of State Departments of Agriculture has outlined its biggest priorities for the upcoming Farm Bill: trade promotion and conservation efforts.
→ Nestle to nerd out. The planned Nestle Institue of Agricultural Sciences will work with farmers, startups, academic institutions, and more to focus on plant science and dairy livestock projects for the company’s supply chain.
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Joe Raedle / Getty Images
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A long time ago, in a field far, far away, a farmer earned a premium for the higher quality grain found to be growing in the center of his field.
It’s not science fiction…It’s not a pipe dream…And it’s not far off.
Space-age sensors: Researchers at Kansas State teamed up with John Deere to analyze data in what could prove to be a "Mecca" in ag technology—remotely sensing grain protein concentration (GPC).
The goal? Give farmers a powerful crop management tool. And…provide an opportunity to selectively harvest and market grain based on quality. Whoa.
Soundbite: Noting that this is an "emerging area of research," K-State agronomist Ignacio Ciampitti said, "Field crop quality differentiation is becoming important to understand, and can increase the competitiveness of U.S. crops."
The deets: Researchers analyzed a variety of sensors used to determine GPC—both during the growing season and at harvest.
On-combine harvest sensors proved to be more accurate, but remote sensor data was nothing to shake a stick at, providing a valuable GIS tool for making in-season crop management decisions.
The end-vision for farmers? Segregated harvest and targeted marketing—sell the higher quality grain at higher prices, then go back and harvest the rest.
And there’s significant interest among producers. According to researchers, over 55% of soybean farmers surveyed noted that they would invest in the new tech if they could earn a 50¢ premium per bushel.
Where this goes: The kinks are being worked out, but as Ciampitti noted, "on-combine sensors may quickly become the gold standard for predicting in-season grain protein concentration."
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Calling all ag companies, agtech startups, ag nonprofits, and other ag-related brands!
We need your help. Nominate your company to get them on the bracket and rally your team to vote your way to the championship!
Ever wonder who would win in a showdown between Bayer & BASF? Land O’Lakes & CHS? Indigo Ag & FBN? This competition could make that a reality.
The stakes? A $500 donation to Feeding America in your company’s name and bragging rights that your business has the best brand, team, and culture in the ag biz.
Enter your company today for free.
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Grains: More attention on South America's drought conditions boosted grains for the day.
Livestock: Stronger export sales couldn't help cattle prices while hogs reached a contract high.
*As of Market Close [2/17/22]
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Cutting-Edge. Business Wise. |
The two phrases above are just what you need when it comes to custom software development in agriculture.
And DelMar strikes the balance between strategic thinkers who can visualize your dream solution and practical builders who can make it a reality.
Just take it from Kyle Lutes, DelMar’s Founding Partner:
"We're sized and structured in such a way as to provide immediate, personal, hands-on service from the very first point of engagement, at the conceptual level, through implementation and technical support down the road."
Ready to take your business to the next level?
Schedule your no-cost, no-obligation consultation call with the DelMar team today.
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Tony Romo may have the gig now, but what former athlete also promoted beef to the masses as a nutritious, healthy meal option?
- Larry Bird
- Mark McGwire
- Walter Payton
Answer at the bottom of the email.
**Win a Magnetic koozie when you submit a trivia question and it gets used in a future newsletter! Submit questions here.
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Lumber Issues Hollow Supply Notice |
Sean Rayford / Getty Images
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The South – known for heat, beaches, and increasingly…lumber.
The region is stepping up its wood game supplying North America. The demand saw increases partly from Canadian companies accessing forests there. Availability and U.S. tariffs on softwood have caused the companies to venture farther south.
Canadian wood recently stacked up more than a quarter of U.S. demand, and U.S. producers accounted for two-thirds of the domestic market. However, availability of timber in British Columbia and high lumber prices for Western spruce, pine, and fir have caused uncertainty.
Plus, this: One of Canada’s largest lumber producers, West Fraser Timber Co., is facing "unscheduled downtime" because of transportation issues.
Flooding late last year washed away tracks and blocked highways. The hollowed production bumps lumber futures that are already 32% higher this month because of tight supplies. With peak building season approaching, housing inflation could build.
Not to mention... Warm weather and beetles have been cutting down forests over the past 20 years. The mountain pine beetle has destroyed 50M acres of forest and is partly to blame for the worst lumber shortage in history. Prices are up 200-300% compared to before the pandemic.
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Written by Sheridan Wimmer, Kevin Cross, Rachel Robinson, and Travis Martin
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Magnetic Ag
P.O. Box 7292
Greenwood, IN 46142-6423
United States
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