Agriculture News
Struggling farmers have a new worry: A resurgent Russia
Wall Street Journal | Posted on September 24, 2018Vladimir Mishurov transformed the remnants of the “Lenin’s Path” collective farm in this village into a profitable business. He also helped make Russia the world’s largest wheat exporter for the first time since the last years of the czars. Over the past decade or so, Mr. Mishurov replaced his aging Russian equipment with a dozen high-tech machines from John Deere and other makers, and started using powerful new fertilizers and seeds. He bought and rented more acres from neighbors and family, eventually reaching about 3,600, taking advantage of Russia’s overall low prices for land.And as many farmers do in the U.S., he often worked days on end with little sleep, especially during the harvest.
The major difference between Mr. Mishurov and a farmer on America’s Great Plains: The Russian’s costs are lower, and mostly in rubles, making his overseas sales—priced in dollars—immensely more valuable. Amid a multiyear, brutal slump in grain prices, Russian agriculture is thriving. The country exported more than 40 million tons of wheat in the year ending June, around 50% more than the previous year, and the highest level for any country in the past quarter-century. Russia overtook the U.S. as the world’s biggest exporter of wheat in 2016, and again beat the U.S. in 2018.The growing Russian competition is one more pressure point threatening American farming, which is facing the biggest wave of farm closures in the U.S. since the 1980s. A global oversupply of grain has pushed prices down to around half the level in 2012, when prices peaked, making it difficult to turn a profit in dollars.
Disaster Averted by North Carolina Pig Farmers
Pork Business | Posted on September 24, 2018A report from the North Carolina Pork Council (NCPC) on Saturday updated the public on how well pig farmers in the state planned and prepared for the predicted devastation from Hurricane Florence. Despite numerous reports to the contrary, the pork industry in the state made sure animals were safe from the storm and that environmental precautions minimized potential lagoon breaches.“Farmers have activated back-up power generation due to significant power outages,” he said. “On-farm reports indicate sporadic and minor wind damage to structures.
Can Technology Actually Change Our Food Systems
Saveur | Posted on September 24, 2018Many recent food innovations appeal purely to novelty, but these six show actual promise for the future of food. If you’re familiar with blockchain technology, you’re probably thinking, “but what does Bitcoin have to do with my dinner?” While most commonly associated with the enigmatic cryptocurrency Bitcoin, its first major application, blockchain is a much wider type of technology that be utilized in the medical industry, in elections, and in keeping tabs on our food. The basic premise behind blockchain is that it creates a secure, uneditable record of transactions, which verifies the validity and source of something. With the heightened concern about where our food comes from, blockchain could be a powerful tool in our farms, grocery stores, and restaurants. There are a few niche applications where 3D printing may prove beneficial down the road, given ample funding and dedication. For example, it could be useful for elderly or disabled individuals that can no longer make food for themselves, or for the small subset of people with swallowing disorders who require specific food textures. The most viable niche application out there has to do with repurposing food waste into a printable material. AgriDust has started turning compost-type food waste into a printable material to make containers for plants, foods, and other short-use packages. The impact is succinct and direct, making it one of the most promising 3D-printing innovations.
Update on National Bioengineered Food Disclosure Standard
Delta Farm Press | Posted on September 24, 2018The Office of Management and Budget has received USDA’s final rule for the National Bioengineered Food Disclosure Standard, according to the National Law Review. The bill mandating establishment of the standard was passed by Congress in summer 2016. The bill:Requires a standard be established for disclosing the presence of bioengineered ingredients,Directs the agriculture secretary to establish requirements for carrying out the standard,Directs the secretary to conduct a study to identify potential technological challenges related to electronic or digital disclosure methods.Forbids states from establishing their own labeling requirements. The bill nulled a Vermont labeling law that was to take effect.USDA has released several proposed labels to certify a food contains bioengineered ingredients.
Measuring Repayment Capacity and Farm Growth Potential
Farm Doc Daily | Posted on September 24, 2018Repayment capacity measures include the capital debt repayment capacity, capital debt repayment margin, replacement margin, term debt and capital lease coverage ratio, and replacement coverage ratio (Farm Financial Standards Council). Capital debt repayment capacity, capital debt repayment margin, and the term debt and capital lease coverage ratio address a farm’s ability to repay operating loans and to cover the current portion of principal and interest due on noncurrent loans such as a machinery, building, or land loan. The replacement margin and the replacement margin coverage ratio enable borrowers and lenders to evaluate whether a farm has sufficient funds to repay term debt and replace assets. For a farm to grow, it is essential that the replacement margin be large enough to repay term debt, replace assets, and purchase new assets, and that the replacement coverage ratio be greater than one. This article defines and illustrates the use of key repayment capacity measures.
Flooding Swamps Upper Midwest Harvest
DTN | Posted on September 24, 2018Forecasts for heavy rain in the Upper Midwest for the final days of the official 2018 summer season have been verified -- and the result is not favorable for harvest. From eastern South Dakota to across northern Iowa, southern Minnesota and into southern Wisconsin, rainfall of 2 to 5 inches has flooded fields, delayed harvest and leads to potential for crop loss. About 10% of total U.S. corn and soybean production is in the area hit by the storms.
Arizona LGMA updates food safety practices for the upcoming growing season
PR Newswire | Posted on September 24, 2018The Arizona LGMA (Leafy Greens Marketing Agreement) is entering its upcoming growing season with improved food safety practices in light of the E. coli outbreak earlier this year associated with romaine. The updated Food Safety Metrics include: more rigorous risk assessments to address intense weather conditions; additional measures for the production of leafy greens near concentrated animal feeding operations; more prescriptive requirements for the cleaning and sanitizing of harvest equipment;, and stronger traceback requirements. These changes are required of all AZ LGMA members and will be verified during the upcoming season beginning in November 2018.
US Farm Debt Continues Its Upward March
Agricultural Economic Insights | Posted on September 24, 2018With farm income having dropped and continuing to decline, there is beginning to be more attention paid to the level of debt in the U.S. farm sector. This week we will examine some of the broad trends in debt use. Today, the total indebtedness stands at $407 billion. Total debt has grown steadily, increasing by 46% since 2010 (an annual compound growth of 5% per year). The total interest cost on this debt is forecast to be $21.9 billion dollars for 2018. When one looks at the components of the total debt it becomes clear that real estate debt has accounted for the majority of the increase (figure 2). At $248 billion, real estate debt currently accounts for 61% of total debt. This share has increased since 2010 when it accounted for 55% of total debt. The increasing use of real estate debt has likely been driven by a couple of factors. First, long-term interest rates have remained low which provides an incentive to utilize long-term financing on real estate. Second, the drop in farm income has likely made it necessary for farmers to utilize agricultural real estate for collateral. Third, farmland prices increased over this time period often resulting in more borrowings when farmers purchase farmland. Additionally, it is likely that lenders have sought to refinance borrowers and secure loans with real estate during the farm income downturn.
California Farmers Are Trade-War Casualties
Wall Street Journal | Posted on September 24, 2018China imposes retaliatory tariffs on pistachios, almonds and wine, while Canada is taxing ketchup.
Court temporarily blocks anti-union law in North Carolina, but fight isn’t over for farm workers
The News & Observer | Posted on September 24, 2018Agriculture is one of the biggest, most powerful industries in North Carolina. But its corporate and political backers just lost the first round of a legal battle with the industry’s lowest-paid workers. Last year the N.C. General Assembly passed a law that, in part, made it illegal for farms and unions to negotiate settlements involving union contracts. It also made it illegal for farm workers to directly transfer parts of their paycheck to the union as dues. A federal judge blocked the law from taking effect — at least temporarily — as the lawsuit continues winding its way through the court system.