🦃 Turkey Troubles + Ag's Saltwater Startup, Bee Colony Issues, and more...

You might want to start thinking about what you’ll eat in place of the Thanksgiving staple this year, as shortages of the iconic holiday bird aren’t just on the horizon: they’re already here.

Hold up, where’d all the turkeys go? While there is an overall shortage, the bigger issue is a shortage of the most popular size—fowl under 16 pounds. (Because everyone loves turkey, but no one wants to wait a week for it to thaw, spend more time cooking it, or eat leftovers for two weeks afterward).

And there continues to be a labor shortage. “The labor problem is both COVID-19 induced and follows the trend of an aging and declining rural population where these processing plants are located," said James Mitchell, agricultural economist with the University of Arkansas.

The result is a 1.5%, or 84M pound, decline in turkey production from 2020 according to the USDA. This, paired with decreasing cold storage inventories, has meant a 13% increase in the cost of frozen whole hens to about $1.16/lb.

On top of that, the cost of meat processing has gone up throughout the pandemic, as processors have made significant investments in their facilities to keep their doors open and employees safe.

And if you’re thinking about ham instead… unfortunately the shortages are not unique to turkey. Per Mitchell: "We have seen similar issues with boneless hams and value-added pork.”

Quick Hits

→ Markets keep farms afloat. High commodity prices and well-timed government support have helped the nation’s farms overcome pandemic obstacles and lowered overall farm bankruptcies by 24% over the prior year.

→ ‘Ag-gag’ law gets blocked. A federal appeals court blocked a Kansas law that banned the undercover filming of livestock facilities and slaughterhouses.

→ John Deere’s green glows brighter. Third-quarter net income for Deere & Company hit $1.6B, with global revenues soaring 29% over the prior year’s Q3.

→ Dairy relief not done. The USDA will pay out an estimated $350M through the end of 2021 to mostly smaller dairy producers as a part of its greater $2B pandemic relief package for the industry.

→ A&M gettin’ buggy. Texas A&M will become the lead research site for the Center for Environmental Sustainability through Insect Farming, a project initiated with a $2.2M grant to gauge insects’ potential as a larger future food source.

→ Fueling via feedstock. ADM and Marathon announced a joint venture at a Spiritwood, North Dakota plant where they will annually pump out 75 million gallons of renewable diesel from 600 million pounds of refined soybean oil.

→ Crop status teeters. 60% of the U.S. corn crop was graded good/excellent, down from 62% last week. Soybeans sat at 56% rated good/excellent, down 1% from last week.

A seawater agtech startup has investors feeling anything but salty.

Saudi Arabia-based Red Sea Farms just scored $16M in pre-Series A funding from U.S., Saudi, and UAE investors. That money means the startup can focus on scaling their saltwater-based controlled environment agriculture (CEA) to a commercial size in the U.S. They also see expansion into UAE in the future.

Red Sea Farms’ end-to-end tech is targeted at tough growing conditions—think deserts and islands where freshwater is scarce. Saltwater can be used to cool greenhouses and irrigate crops that have been bred for salinity tolerance.

The combo of plant science, artificial intelligence, and sustainably-driven cooling can save up to 90% of the freshwater typically required for growing tomatoes.

The goods: Red Sea Farms delivers organic, pesticide-free cherry and Ramsi tomatoes to Saudi markets. They also build and retrofit greenhouses for saltwater cooling and remote monitoring.

Behind the money: Saudi, UAE, and U.S. investors blew past the $10M investment goal. AppHarvest and Bonaventure were two investors in complementary businesses: indoor farming in Appalachia and recycled rainwater for greenhouses, respectively.

Sometimes the results just speak for themselves...

Just ask David Nicola, the CEO of Blackdirt Farms.

After raising $1,555,000 via Harvest Returns, David had this to say,

"We are very pleased with the results of our partnership with Harvest Returns as it provided access to a base of investors outside Blackdirt’s existing network and proved to be an effective platform for raising capital."

So what's the 411 on Harvest Returns and how is it changing the face of farm funding?

It's simple.

Harvest Returns connects farmers, ranchers, and agribusinesses with passive investors to access alternative sources of funding. Funding terms are flexible and tailorable to any operations' needs.

Discover all that Harvest Returns can deliver today.

Between the drought in the West and a decline in colonies, life hasn’t been the bee’s knees for the striped pollinators.

The buzz: Bee colonies are currently seeing a 35% global decline every year, which subsequently impacts 75% of crops. Without bees, fruits and flowers don’t get pollinated, which is stinging the West Coast almond, plum, and apple crops.

And, unfortunately, that’s not all West Coast producers are facing. Drought and water issues are making things less than sweet, too.

Normally, Midwestern bees make the trip to California in the winter to pollinate fruits and other crops, but with drought in queen bee states like North Dakota, there are fewer bees, and it’s more expensive for West Coast producers to lease them.

Food chain fiasco: Less pollination means less food (and therefore more costly food for consumers). Plus, with an estimated 25 to 40% drag in domestic honey production, things are getting sticky.