Good morning.
Cue the sad trombone sound effect.
Russian troops reportedly stole $5M of farm equipment from a dealership in Melitopol, Ukraine, shipped it to Chechnya, and then realized the Ukrainian farmers back across the border had remotely locked all the equipment. Wah wah.
The machinery was equipped with GPS, which meant it could be tracked all the way to a Chechnyan village. And it could be controlled by those back at the dealership—which meant the Russians realized they’d been duped when they couldn’t even turn on their stolen combine harvesters.
We’ll count that as: AgTech: 1. Russia: 0.
Stories:
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Dollars for Double-Croppers |
Anna Moneymaker | Getty Images
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Biden is tryin’ to keep wheat on the table and pull dollars out of the grocery bill in one fell swoop.
His request to Congress calls for a cool $500M to offset rising costs and food shortages related to the war in Ukraine.
The skinny: Under the proposal, double-cropped wheat would gain a $10/acre incentive, paid out through crop insurance premiums. Loan rates would also increase for crops like wheat, rice, soybeans, and oil, giving growers more time to sell their crops at a higher profit.
The government says the program could replace up to 50% of Ukraine’s usual wheat exports.
ICYMI (somehow): Together, Russia and Ukraine make up nearly 30% of global wheat exports. They also export a significant amount of fertilizer. The war has strained already tight fertilizer stocks and sent global grain prices soaring.
Looks good on paper: The proposal has been met with some serious skepticism—not from Congress or political foes, but from those it’s designed to help. Some farmers say the market is currently creating its own incentives.
And while the loan rate increases might be aimed at mitigating swollen input costs, the program numbers don’t quite pencil out.
"If you’re looking at $17 beans, why would you want to put grain under loan at $8? It’s a liquidity issue that’s market distorting," says ProFarmer policy analyst Jim Wiesemeyer.
Tangent: Ukraine is now playing Where’s Waldo Wheato. Their deputy ag minister is accusing Russia of getting sticky-fingered with grain from silos in occupied territory, to the tune of 1.5M tonnes. The Kremlin denied responsibility for the missing wheat.
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→ ICYMI fertilizer funding. Anuvia Plant Nutrients, a startup that makes bio-based fertilizers, raised $65.5M in a Series D funding round and is set to increase production capacity.
→ Farmer drought. With the percentage of people working in agriculture dropping, some say more relaxed regulatory restrictions could push innovation, and help solve the problem of having fewer farmers.
→ More reports? No thanks. 120 ag organizations sent a letter to the SEC asking for more time to comment on a proposed rule that would force farmers and ranchers to report details about their supply chain to remain in compliance.
→ Ascending ammonia. Thanks to the domino effect from the war in Ukraine, anhydrous ammonia prices could keep rising until they hit $2K/ton in 2023, according to a University of Illinois ag economist.
→ Out-of-this-world belching. Satellites in space detected methane emissions from a California feedlot’s burping cows.
→ One flew the coop. The U.S. has officially seen its first case of the H5 bird flu in a human, after a person in Colorado (who was involved with culling poultry) tested positive.
→ Zero COVID, zero meat? China’s controversial full-lockdown measures to prevent COVID outbreaks are halting the country’s meat market, with some nations canceling exports there thanks to mounting logistics snags.
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On the Verge of Full Tractor Autonomy |
"These tractors drive themselves these days." – Almost.
With $7.5M in a Series A funding round led by Yamaha Motor Ventures, a Canadian startup is on the verge of making truly fully autonomous farm equipment a reality.
Farm simulator—but in real life: Verge is a Canadian software developer focused on creating the world’s first AI-powered interactive software that helps farmers plan, simulate, and validate their equipment’s movement in the field so they can streamline their field operations.
Don’t sit idly by: Verge aims to improve equipment efficiency by increasing machine utilization rate, reducing idle time, and saving on fuel costs. Growers can pre-plan all their field operations to reduce in-field decision-making and save time.
I-digital twin: Following the latest raise, Verge Ag is developing the digital twin of the farm that will help growers plan field operations, thanks to digital characterization of fields, terrain, water flow, and operational windows.
Soundbite: "We are developing a solution that helps farmers manage their land and equipment to efficiently and remotely execute field operations, enabling farming to be truly autonomous," said Ryan Johnson, CEO of Verge.
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Grains: Plenty of red as a lack of positive news had money flowing out of commodities.
Livestock: Cattle surged while hogs felt the slog of a slow slaughter pace.
*As of market close [5/2/22]
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Magnetic's Must-See Stuff |
Setting records. There are some astounding numbers coming out of farmland sales right now, with data showing huge increases in value over the course of 2021 and into 2022. Take a look at a dozen recent sales from seven different states, showing just how high the numbers are climbing.
And if you pick up some land with a pond… Here are some tips to maintaining the perfect pond—and making sure it’s not just an algae-infested mess.
New jobs each week. Don't miss them on the Magnetic Ag Job Board.
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With spring in the air, it's that time of year in Holland... you know, #TulipTime.
But the kicker is that the famed Dutch flower crop didn't originate in what many consider its homeland.
Can you guess where the blooming perennial originated from out of the options below?
Answer at the bottom of the email.
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California Drought Drags, Water Dwindles |
David Alvarez Velicia / Getty Images
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This year is shaping up to be the driest California has ever seen, with records dating back to 1895.
Entering the third year of *severe* drought, today’s megadrought conditions (aka: low to no precipitation and higher temperatures) show no signs of subsiding.
And although drought has (unfortunately) been a repeat topic here lately in Magnetic, there’s no understating how hard it’s hitting California right now.
California dreamin’ nightmare. Water supplies are on the brink. Six million residents near L.A. will restrict outdoor watering to one day per week beginning June 1—an unprecedented measure. San Joaquin Valley growers are leaving acres unplanted because they can’t get water. Both parties rely on water from the Central Valley Project.
Soundbite: "The reality is, this drought has left us without the water supply we need to meet normal demands in these areas. To make sure we have enough water for basic human health and safety needs, everyone in these communities must immediately and dramatically reduce their water use," said Adel Hagekhalil, GM of the Metropolitan Water District of Southern California.
Feeling the burn. With food prices already sky-high, plus the war in Ukraine, high commodity prices, and even peak avocado prices, the drought is adding fuel to the fire for frustrated consumers. Mike Wade, of the pro-agriculture California Farm Water Coalition said "higher prices and fewer choices" is the reality. Without sufficient water, producers are cutting back on what they grow, and some are exiting agriculture completely.
The damage. We’re looking at a $3B negative economic hit from this year’s drought in California. Crops like peaches, plums, nectarines, almonds, and pistachios will be hit the hardest.
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Written & Edited by Kelsey Faivre, Aaron Dunajeski, AmeliaVanLandegen, Ashley Scoby and Travis Martin
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