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June 15, 2021
Magnetic
TOGETHER WITH:
AgButler
 
Good morning.

New look, who dis? You might be noticing our fresh cut this morning, but we’ve got even bigger news to share...

We’re excited to launch the new Magnetic website! It’s our hub from which you can share our news stories, see past newsletters, and read our exclusive Magnetic content.

And speaking of ‘Magnetic Originals,’ check out our first ‘Movers & Shakers’ piece on the scroll.

Today's Stories:
  • The Next Water War
  • China's Poker Face
  • Adidas in Agriculture?
WATER

The Slippery Slope That Has Been WOTUS
Slippery Slope
GIPHY
Water debates in agriculture have been on a wild ride. And a new memo just out of the EPA is signaling more of the same.

During the Trump administration, the Navigable Waters Protection Rule removed federal oversight from several tributaries and waterways. Now, Biden’s team is suggesting a new flow – one that will repeal the rule.

First, a bit of a history lesson:

1972: The Clean Water Act was established to regulate discharges of pollutants in U.S. waterways.

2015: President Obama created the Clean Water Rule, or as many in agriculture know it, Waters of the United States (WOTUS), under the Clean Water Act. The rule included oversight by the federal government of minor streams and wetlands, which caused agricultural groups to question its clarity and how it would affect farmers and ranchers.

2019: The Trump administration formally repealed WOTUS, citing a major power grab by the federal government.

2020: The EPA and Army Corps of Engineers published the Navigable Waters Protection Rule, which helped define “waters of the U.S.” and provided a sigh of relief to farmers and ranchers.

Now that we’re caught up: Biden’s EPA said the changes by Trump caused “significant environmental degradation” – saying dry places like New Mexico and Arizona were especially under water with problems. One of the EPA’s concerns is the more than 300 development projects that may be polluting waterways in those states.

Tributary? More like Tribu-hairy: Now Biden wants to reverse the Navigable Waters Protection Rule, and farmers and ranchers are not here for it. The administrator of the EPA says they’re “committed to establishing a durable definition of ‘waters of the United States.’” A proposed new EPA rule could take effect later this year.

Commodity Corner
Commodity Corner
Grains: Grains lower on favorable 6-10 day forecasts, bringing cooler temps to the western Corn Belt and elsewhere. Market holding its breath to see if it happens or not.

Livestock: Cattle markets rise on continued strong demand and hogs dip as traders note rising slaughter weights last week.


*As of Market Close [6/14/21]
Quick Hits

Fueling drama. The Biden administration has allegedly been in discussions with U.S. oil refiners on how to relieve them of biofuel blending mandates.

Livestock ‘scripts to surge. The FDA announced a two-year transition from allowing over-the-counter sales of certain medically important livestock antimicrobials to being prescription only.

Pour some sugar on me that tree. Maple syrup production in the U.S. is off 17% in 2021 due to one of the shortest maple seasons in a decade, with high temperatures leading to poor sugaring weather.

“Thanks but no thanks.” Indian farmers will not be ending their protests in New Delhi, noting that the 3.9% price hike the government will pay for a new-season rice variety still won’t cover the costs of production.

Canadian bacon ain’t so Canadian. A labor strike at Olymel’s plant in Vallée-Jonction has led to Canadian-raised pigs being trucked across the border to be slaughtered at U.S. plants.

Tell Paul Bunyan to pause. A White House press release shared plans to reverse or repeal a rule allowing logging of Alaska’s Tongass National Forest, the nation’s largest national forest.

INTERNATIONAL AG

Poker Face
Tortuga Ag Tech
rzoze19 | Getty Images
Ever consider playing poker blindfolded?

That’s essentially how trading agricultural goods with China works.

The country of over 1.3 billion people has been doing its best to hold its ag industry cards close to its chest.

Consider the handling of its rebound from African Swine Fever.

Nine months ago, China stated they were well down the road to recovery, and the country’s pork production was buzzing right along again. Then, 2020 saw China import more pork than ever before.

Sounds like someone was bluffing.

Some economists argue that’s exactly what was going on. Theories suggest China might have withheld the true state of their swine herd so they could purchase almost a billion bushels of corn at lower prices.

But signs do point to their swine herd actually growing again now. That giant pile of corn they’ve been snapping up in recent weeks has to be going somewhere. The country’s been importing so much that ships have had to wait up to a month to dock and unload.

Worth noting: The USDA has estimated that China will import 26 million metric tons of corn this year, but some in the industry think that number will continue to grow.

Time will tell because China probably won’t.

Just for Fun

Talk of maple syrup in Quick Hits got us thinking. There’s no doubt that our Canadian neighbors dominate the maple syrup game. The U.S. comes in a distant second. But for fun, can you guess which nation has the third-highest maple syrup exports?

Hint: You’re headed across the pond to a member of the European Union.

Answer on the scroll
SPONSORED BY AGBUTLER

The 411 on Farm Labor
AgButler
If you’ve been keeping up on the news -- ya know, like reading Magnetic -- you’re probably tuned in to the debacle that is all things farm labor.

Shortages. Policy. Legal disputes.

It can be quite a headache to keep it all straight.

But now you don’t have to.

Tune in today at 1 p.m. CST for a free webinar with AgButler and Farm Journal as they dive into the topic of the need for a high-quality labor force in rural communities and the breakthrough solutions (like AgButler!) that are making it a reality.

As the go-to app to find a network of experienced ag workers, AgButler is constantly watching the farmworker landscape to fine-tune their technology.

Not available today for the webinar? No worries. Register anyway and you'll be sent the recorded, on-demand video later in the week.
MAGNETIC ORIGINAL

Making Crop Dusting Cool

Ag Aviation Adventures
Tyson and Cally of Ag Aviation Adventures aren’t your average couple.

During the growing season, you’ll find them based in Minnesota as they work with farmers and co-ops for all their crop-dusting needs. But in the offseason, you can expect them to disappear to the mountains (or somewhere warm!) to get their adventure fix.

Magnetic snagged a quick Q&A with the couple to ask:

  • How did they find themselves in their nomad, adventure-seeking lifestyle?
  • What don’t people realize about ag-specific aviation?
  • Do they ever worry that crop-spraying drones might swipe their jobs?

All this and more, here in our first Magnetic Original.

FIBER

Adidas. Agriculture. Did we read that right?!

Tennis shoes. Track suits. Textile fiber made from wood and agricultural waste… “One of these things is not like the others.”

And yet they all belong to Adidas. Just last week Adidas announced their 3 million euro ($3.7 million USD) investment in Spinnova Oyj, the Finnish sustainable textile material company.

Soundbite: "We are an ideal match with the ambitious and pioneering Adidas sustainability strategy," said Spinnova CEO and Co-Founder Janne Poranen.

Why it matters: Spinnova has developed technology to make textile fibers out of everything from wood to food waste (we’re curious, too) with zero harmful chemicals.

Sustainability isn’t just a buzzword for Adidas. It issued a 500 million euro sustainability bond in September 2020, which has been oversubscribed five times. Proceeds have gone to renewable energy production and recycled material projects. And by 2024, the company has pledged to shift to only using recycled polyester in its products.

Wrap it up: People might not have ever pegged Adidas as potential leaders in the sustainable agriculture world. But the textiles it uses have to come from somewhere. And as climate change and technology continue to disrupt or evolve the supply chains the company depends on, it looks like Adidas is thinking big on its sustainability strategies.

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Answer

The Netherlands
Written by: Travis Martin, Sheridan Wimmer, Daniel Bechman, Amelia VanLandegen
Editor: Ashley Scoby



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