💨 The Dicamba Saga + Farm Labor Implosion, Argentina's Beef, and more...

Welcome to June, where that nice summer breeze is… hopefully void of dicamba.

It’s the time of year when farmers will be out spraying the notorious weed killer while simultaneously crossing their fingers that neighboring producers don’t come at them with pitchforks in the case of drift damage.

At least that’s been the way June has played out since the Xtend trait saw its first widespread use in 2016.

The Office of Inspector General (OIG) decided to kick off this year’s dicamba season with a bang too. The agency released their rather salty report on their findings from an investigation into the EPA’s renewal of the dicamba herbicide label back in 2018.

The OIG found that senior EPA officials at the time overstepped their bounds and intentionally manipulated the scientific review process. In fact, many of the staff scientists wouldn’t even sign off on the final reports made for that renewal decision. In its estimation, bypassing the standard scientific process is what caused the legal debacle with the Ninth Circuit in 2020.

Worth noting: The OIG has said that during the initial registrations of dicamba, initial assessments from staff scientists were excluded to “address stakeholder risks.” Lines may have been crossed - allowing for political interference in what was supposed to be a fully scientific process - and EPA senior officials promise to not repeat those errors.

While we are here: Lawsuits continue to mount for Bayer and BASF over damage attributed to in-season use of dicamba. Two new high-profile suits have been filed recently by a Texas grape farmer and an Arkansas honey farm. And those come as the two companies are working to appeal a jury verdict that granted $265 million to a Missouri peach farm over damages.

→ Detour. Brazil’s driest growing season in 91 years is leading the government to reroute cargo ships full of ag goods along the Tiete-Parana waterway as river levels fall.

→ That grocery bill though... Led by sugar, grain and vegetable oil costs, international food prices are the highest they’ve been since September 2011, according to the Food Price Index.

→ U.S.-Israel ag tag team. The two nations are spending a combined $6.7 million on 20 research projects that range from drip irrigation systems to aquaculture, specialty crop harvest and more.

→ Sorghum’s time to shine. U.S. sorghum acres are expected to reach 6.91 million acres, nearly 1 million more than 2020 and up 12% from 2019, all thanks to strong export demand and surging prices.

→ A dairy demand gap. China is on a building spree, constructing more than 200 large dairy farms to address the 30% of domestic milk demand left unfilled.

→ In their element. Elemental Enzymes announced a licensing deal with Corteva for their Waterflux technology that helps crops battle soil salinity, drought and tough temperatures.

Given the ‘help wanted’ signs we’re seeing everywhere, it’s no surprise that the ubiquitous labor shortage is squeezing the ag sector, too - with no signs of stopping.

The USDA’s 2021 Farm Labor quarterly report was published with April data, and it isn’t pretty.

Overall, farm wages were up by as much as 6% over 2020. 11% fewer farm workers were hired in the same period last year. And H-2A position requests are up five times since 2005 - and are being debated as the Farm Work Modernization Act moves to the Senate.

A soundbite: “The fear of exposure to Covid-19, lack of childcare, several rounds of government checks, and unusually high unemployment benefits have kept many people out of the workplace,” Sarina Sharp, Daily Dairy Report analyst, summed up.

Wage wars: Farm operations are competing for labor across industries and ultimately paying their workers more. Specialty crop farms - think produce, nut and ornamental operations - make up 52% of all farmworkers and are paying over a dollar per hour more than they were at this time last year.

Field crop workers on the West Coast are bringing home the highest wage, and gross wages for those working with livestock are up 5%.

Timely tangent: Ganaz, a workforce management platform designed specifically for farmworkers, just earned $7 million in a Series A funding round. The company aims to modernize payroll, communication and other HR functions specifically for farm operations.

MAGNETIC'S MUST-SEE STUFF

#MilkFlipCup. It’s back! The annual challenge among ag social media influencers is getting heated, and all funds raised go towards Feeding America. Check out the bracket and watch live showdowns here.

Carbon confusion? Farm Journal’s Carbon Innovation Center will help clear the air on any carbon program questions you may have.

Give back to the future. Ag Future of America is hosting their Day of Giving tomorrow, and what’s better than supporting the future of the industry we know and love? Go here to donate.

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The world’s number five beef exporter, Argentina, slammed the brakes on beef exports in mid-May.

Why? The country’s Agroindustrial Council suspended exports for one month with intentions to lower domestic inflation. Beef exports in Argentina have gone sky-high in recent years, and the government blames exports for the crazy inflation.

To the moon. So far, inflation is up nearly 50%. And the fear from the Argentinian government is that’s just the start...

But inflation is nothing new for the South American nation. This is their third consecutive year in a recession. During the first quarter of 2021, consumers watched their prices shoot up 17.6%. Many say they have no money left to purchase the expensive protein source.

And back on the farm… Farmers aren’t thrilled, to say the least. To argue the government’s temporary kibosh on exports, farmers held a livestock sale strike that lasted through June 2, forcing processing plant closures across the country. And they’re prepared for more: farmers have threatened a grain sale strike next.

Where this goes: Producers are upset their export market is temporarily MIA. Plus, countries worldwide will feel the pinch: China, for example, imports more than two-thirds of Argentina’s beef, and will have to find somewhere else to fulfill its demand.