Category: Ag Economics

  • Celebrating Prune Growers for California Farmer and Farmworker Month

    October is California Farmer and Farmworker Month, and the California Prune Board is celebrating those within the industry who work so hard to produce the premium fruit that contributes to health and wellbeing.

    “California’s prune growers and orchard workers have worked tirelessly through the pandemic to keep this wholesome fruit on tables and in pantries for families, frontline workers, and food banks,” said Kiaran Locy, California Prune Board, Director of Brand & Industry Communications, and Buy California Marketing Agreement board member. “While many Americans were sheltering in place and working from home, the California Prune industry worked together with retailers and distributors to ensure a consistent and stable supply of premium fruit.”

    The California Prune industry generates more than $717 million in annual economic impact flowing into the state economy creating and sustaining more than 7,000 full-time equivalent jobs. California’s prune industry is an important economic driver that contributes to the economic health of the communities throughout the state.

    “Choosing California Prunes and other California-grown food, wine, flowers, garden and nursery plants, directly supports and stabilizes our economy,” added Locy. “California is the largest producer of agricultural products in the nation and the largest producer of prunes in the world.”

    California Prune growers steward 43,000 acres of land. Generations of growers across the Sacramento and
    San Joaquin Valleys have brought a craftsmanship to cultivating their trees with the best orchard management practices. The California Prune industry has invested millions of dollars in agriculture and sustainability research that conserves energy, reduces water use, and improves the safety and quality of prune production while ensuring longevity for the industry.

    Growing a healthy food takes dedication and California’s prune growers and orchard workers are part of the vital network of producers that provide nutritious school meals and pantry-stable wholesome fruits for the most vulnerable of our population. Each year California Prunes works with USDA to secure prune purchases for school nutrition programs and food banks which also helps support the livelihood of prune-growing communities.

    As prune growers and orchard workers are an invaluable part of California’s ag community, the California Prune Board celebrates October California Farmer and Farmworker Month by spotlighting a series of meet-the-grower profiles, sharing videos on “What Makes California a Great Place to Grow Prunes” and “How I Got Into Agriculture,” alongside heritage recipes from grower families. The California Prune Board is further sharing these stories on social media channels throughout the month of October in partnership with #CAGROWN to honor the grower and orchard workers’ contributions and dedication to ensuring a safe food supply, even under the most daunting of circumstances.

    Always in season, California Prunes are good for your gut, heart, and bones. With under 100 calories per serving this fruit has no added sugar and packs a powerful punch of important vitamins, minerals, antioxidants, and fiber that support overall health and wellbeing.

    California Prune fans can access heritage recipes from grower families by visiting:https://californiaprunes.org/california-prunes-101/our-growers/ and follow @CAPrunes on Instagram, Facebook,Pinterest, YouTube, and Twitter.

    Mitchell Family Prune Cake
    What’s a prune farmer’s favorite way to eat prunes? Well, for the Mitchell family of Yuba City, Calif., the choice is easy: this old-fashioned prune cake recipe takes the (ahem) cake. A soft, prune-studded spice cake is covered in a buttery-sweet glaze that has everyone going back for another slice (or two.)

    SERVINGS: 12 pieces PREP TIME: 20 minutes COOK TIME: 1 hour
    INGREDIENTS

    For the cake:

    1 heaping cup California Prunes, minced (28-30 prunes)

    2 cups boiling water

    1 cup neutral baking oil or olive oil

    1 1/2 cups sugar

    1 tablespoon vanilla extract

    3 eggs

    2 cups all-purpose flour (or 2 cups gluten-free flour +
    2 teaspoons xanthan gum)

    1 teaspoon baking soda

    1 teaspoon cinnamon

    1 teaspoon nutmeg

    1/2 teaspoon cardamom

    1 teaspoon coarse kosher salt

    1 cup buttermilk

    1 cup walnuts, roughly chopped

     

    For the icing:

    1/4 cup melted butter

    1 cup sugar

    1/2 cup buttermilk

    2 teaspoons molasses

    1 teaspoon vanilla extract

    1 pinch coarse kosher salt

     

    DIRECTIONS

    Place the minced prunes in a large bowl and cover with boiling water. Soak for 20 minutes, then drain thoroughly.

    Preheat the oven to 300°F and spray a 13×9 metal or glass baking pan with cooking spray. Set aside.

    In a large mixing bowl combine the oil, sugar, vanilla, and eggs. Whisk to combine.

    In a separate mixing bowl combine the flour (or gluten-free flour + xanthan gum), baking soda, cinnamon, nutmeg, cardamom, and salt. Whisk to combine.

    Add the dry ingredients to the egg mixture alternating with the buttermilk in 3 additions. Stir to combine. Fold in the drained prunes and walnuts.

    Scrape the mixture into the prepared pan and bake for 45-60 minutes until cooked through and a toothpick in the center comes out clean.

    While the prune cake is baking, make the icing:

    Combine all the ingredients into a medium-sized saucepan. It will seem like the pot is too big, but the sugar mixture needs room to swell up in the pan. Bring to a boil and cook for 4-5 minutes or just before the softball stage.

    While the cake is hot from the oven and still in the pan pour the icing over the cake. Use a fork to gently poke holes all around the top of the cake so that it can absorb the icing. Enjoy the Mitchell family’s Old-Fashioned Prune Cake at your next special occasion!

    Recipe Notes: Sugar in the cake recipe can be substituted for 1/2 cup monk fruit.

  • Half Moon Bay’s World Heavyweight Championship Of Godzilla Gourds, Oct. 11

    No weigh? Weigh! Bring it on burly, beefy, bodacious behemoths!
     
    The excitement is building in Pumpkintown as the World’s Greatest Gourd Growers and their mind-blowing, Volkswagen-sized orange orbs hope to squash the world record on Monday, October 11 at the 48th Safeway World Championship Pumpkin Weigh-Off — the “Super Bowl of Weigh-Offs” — in the World Pumpkin Capital of Half Moon Bay, California and and this year organizers, in association with title sponsor Safeway, are upping the ante big time to celebrate the world’s greatest gourd growers.
     
    The world’s biggest top prize has been increased to $9/pound (from $7/pound) for the 2021 weigh-off champion. Also at stake are thousands of dollars in super hefty prize money doled out to the top 20 plus the big carrot: a $30,000 total mega-prize for a new world record pumpkin entered at Half Moon Bay.
     
    The weighing of pumpkins will begin around 7am and anticipate ending the weighing around 11am followed by the awards presentation and luncheon.
     
    Defending champion Travis Gienger’s rhinoceros-sized 2,350-pound mega-gourd (he named it The Tiger King) handily won the 2020 Safeway World Championship Pumpkin Weigh-Off in Half Moon Bay CA. It was the heaviest pumpkin weighed in North America in 2020.
     
    Beauty will share center stage with beefy brawn — a special $1,000 prize will be awarded to the “Joe Cotchett Family Most Beautiful Pumpkin”.
     
    Additional special bonus prizes include: Biggest California Pumpkin — $1,000; Biggest Coastside Pumpkin — $1,000.
     
    Using forklifts and special harnesses, the gargantuan gourds will be carefully placed on a 5-ton capacity, industrial-strength digital scale under the watchful eye of officials from the San Mateo County Agricultural Commissioner’s Office of Weights, Sealers, and Measures. Half Moon Bay’s Weigh-Off will serve as an officially sanctioned Great Pumpkin Commonwealth (GPC) site.

    Spectators are welcome. Admission is free.
     
    WEIGH-OFF LOCATION:
    IDES Grounds, 735 Main Street, Half Moon Bay CA.
     
    COVID PANDEMIC RESTRICTIONS: 
    The event will be held in accordance with State, County and City Health and Safety guidelines at the time of the weigh-off. Health guidelines strongly recommend that attendees be fully vaccinated. If not fully vaccinated, guidelines strongly recommend that attendees obtain a negative COVID-19 test prior to attending the event and wear a face covering at the event.

    LIVESTREAM ON FACEBOOK: Follow the weigh-off Livestream on Facebook.
     
    OFFICIAL RULES:
    • This event is open to growers of giant competition-sized pumpkins only.
    • Pumpkins must be grown, cared for, and entered by the weigh-off contestant.
    • Each contestant is limited to one entry.
    • Pumpkins that have won prizes in any other weigh-off competitions are not eligible.
    • In the event of a tie, prize money will be distributed equally among the tied parties.
    • Decisions of the judges are final in all cases.
    •Pumpkins must be in healthy and undamaged condition, free of rot, holes and cracks through the cavity, chemical residue, and soft spots.
    •To be classified as pumpkin, specimen must be 75% yellow/orange in color; all others will be classified as squash.
    •The vine must be trimmed to one inch from the stem. No foreign material is permitted in the weighing.
    •All pumpkins will be weighed without the use of tarps or other carrying devices.
    •Pumpkins will be classified by division based on where the specimen is grown, not the residence of the grower.
    •The weigh-off will be conducted in accordance with GPC rules.
     
    DELIVERY OF ENTRIES:
    Growers are responsible for bringing their entries to the weigh-off by 7:00 a.m. Weigh-off staff will move using brute strength manpower, special harnesses and forklifts. ALL entries will be handled with care.
     
    WEIGHING:
    The weighing and inspection will be officiated by the GPC and San Mateo County Department of Agriculture Office of Weights and Measures. The official weighing will be conducted using a 5-ton capacity digital scale.
     
    GROWER PRE-REGISTRATION IS REQUIRED:
    This event is open to growers of giant competition-sized pumpkins only. Growers are required to pre-register online on through this Eventbrite page. This will help us manage and control the event and provide an accurate count of entries. Participating growers are allowed to have a limited number of family and assistants (max. 4 including grower). Your cooperation will help us run a well-organized event.This event is open to growers of giant competition-sized pumpkins only.

     
    GROWERS AWARDS LUNCHEON:
    There will be an awards luncheon to honor all contestants immediately following the weigh-off.
     
    GROWERS VIP WELCOME PARTY, SUNDAY EVENING (OCT. 10) AT CAMERON’S INN & PUB:
    Registered weigh-off growers and their small traveling party (4 max.) are cordially invited to a VIP (Very Important Pumpkin) Party with complementary food and beverage at Cameron’s Inn & Pub on Sunday, Oct. 10 from 5-8pm. Please bring your weigh-off pumpkins to the VIP party for news media on-site to preview the weigh-off entries.
     
    WORLD’S BIGGEST TOP PRIZE – $9/Pound
    1st place prize money will be awarded in a “pay-by-the-pound” system with the champion receiving a hefty $9 per pound.
     
    WORLD RECORD MEGA-PRIZE – $30k
    The Safeway World Championship Pumpkin Weigh-Off is offering a special $30,000 mega-prize for the world record breaking pumpkin at the prestigious Half Moon Bay event. To receive the $30,000 mega-prize, the grower must break and hold the world record at the conclusion of the Half Moon Bay weigh-off. If two or more growers happen to break the world record at Half Moon Bay, the prize money would go to the grower of the heaviest pumpkin. The current world record heavyweight champion pumpkin is 2,703 pounds held by Stefano Cutrupi of Italy just set in late September, 2021! Magnifico!! Here’s how the $30,000 breaks down: the winner receives a world’s biggest $9 per pound plus plus the difference to get to a total of $30,000.
     
    PRIZE MONEY:
    1st Place — $9 per pound
    2nd Place — $3,000
    3rd Place — $2,500
    4th Place — $2,000
    5th–10th Place — $1,000 each
    11th–20th Place — $200 each
     
    SPECIAL PRIZES:
    World Record Pumpkin — $30,000 (total)
    Biggest California Pumpkin — $1,000
    Biggest Coastside Pumpkin (Montara to Pescadero) — $1,000
    Most Beautiful Pumpkin — $1,000
    Special GPC plaques and ribbons will also be awarded.
     
    LIVESTREAM ON FACEBOOK: Follow the weigh-off Livestream on Facebook https://www.facebook.com/halfmoonbaypumpkinweighoff/
     
    CONNECT WITH US ON SOCIAL MEDIA:
    FACEBOOK https://www.facebook.com/halfmoonbaypumpkinweighoff/
    TWITTER @HMBPumpkinFest
    INSTAGRAM https://instagram.com/hmbpumpkinfest
     
    2021 PUMPKIN FESTIVAL SIDELINED AGAIN BY CITY COUNCIL VOTE 
    For the second year in a row, the world-famous Half Moon Bay Art & Pumpkin Festival will not be allowed to take place after the Half Moon Bay City Council voted unanimously to deny organizers the required special event permit for this year’s carefully planned, months-in-the-works, single day HMB Pumpkin Minifest 49.5 that had been slated to bring back the uniquely joyous, feel-good Pumpkin Fest vibe to Main Street on October 16. Heartbreak beyond words x two now for our non-profits, our local artists and musicians, our suppliers, vendors and sponsors, local businesses and the entire Coastside community and festival fans everywhere.

  • U.S. Dairy Consumption Beats Expectations in 2020 and Continues to Surge Upward Despite Disruption Caused by Pandemic

    The U.S. Department of Agriculture (USDA) released their annual per-capita dairy consumption data today and the story, despite major shocks caused by the COVID-19 pandemic, remains America’s growing love for dairy products of all shapes and sizes. The information from USDA’s Economic Research Service (ERS) adds 2020 data to an accounting of per capita dairy consumption dating back to 1975 when the average American consumed just 539 pounds of dairy foods per year. Last year, the average American consumed 655 pounds of dairy in milk, cheese, yogurt, ice cream, butter, and other wholesome and nutritious dairy foods, demonstrating a resilient and growing love for all things dairy. The 2020 figure represents an increase of 3 pounds per person over the previous year.

    “What 2020 shows us is that Americans are choosing to include dairy in all parts of their day because it’s delicious, nutritious, and fits almost any occasion,” said Michael Dykes, D.V.M., president and CEO of the International Dairy Foods Association (IDFA). “Despite challenges posed by the pandemic to all parts of the supply chain in 2020—including the near-overnight loss of the foodservice sector—per capita dairy consumption continued to surge upward thanks to growth in ice cream, butter and yogurt. Last year’s consumption figures are nearly 70 percentage points above the annual average, showing America’s growing appreciation for their favorite dairy products.”

    Ice cream continued to rebound and grew by 6% year-over-year in 2020. Meanwhile, yogurt consumption jumped 3% and butter notched a 2% increase. Milk and cheese remained resilient throughout 2020 despite the closure of restaurants, cafes, schools, and other institutions that drive demand. Overall, ERS data show American dairy consumption continuing its growth trajectory. Since USDA began tracking dairy consumption in 1975, per capita consumption has grown 22%.

    “How we consume our dairy is different than a generation ago,” said Dykes. “Americans eat more dairy than we drink and we include dairy in all meals and occasions as well as for fitness and recovery, to live a healthy life, and to celebrate those special moments. With a greater focus on producing sustainable foods, dairy will continue to grow as a category well into the future.”

    Select charts of per capita dairy consumption in the United States:

  • California Dairies, Inc. To Open A New Milk Bottling Facility

    Secretary of the California Department of Food and Agriculture Karen Ross and other state and local officials joined California Dairies, Inc. (CDI) on Wednesday, September 29, at a groundbreaking ceremony in Kern County, CA, at the future site of CDI’s new ultra-high temperature (UHT) and extended shelf-life (ESL) milk processing facility.

    “This is an exciting day and marks the launch of a transformational investment being made by our farmer-owners,” said Brad Anderson, CDI’s President and Chief Executive Officer, as he made opening comments. “This new facility will process our Kern County-produced milk into innovative fluid milk products that have been seeing growth in demand throughout the U.S. and international markets.”

    CDI, the largest dairy farmer-owned cooperative in California and the second largest in the United States, is building this state-of-the-art milk processing facility under the name Valley Natural Beverages. The project is being built in northern Kern County, a region with significant milk production but no local processing facilities. Not only will this investment significantly reduce the transportation distances of milk produced in Kern County, it will also further demonstrate CDI’s commitment to sustainable solutions by incorporating renewable energy sources and waste conservation as key priorities in the facility and operational design.

    “As farmers, we aim to be good stewards of the land to leave a lasting legacy for future generations,” said Simon Vander Woude, CDI’s Chairman of the Board of Directors. “CDI’s member-farms are leading the way in implementing sustainable on-farm practices, and the construction of this state-of-the-art facility will carry that mission forward.”

    Simon Vander Woude and Melissa Hurtado

    CDI and its family-owned dairy farms have a long history of prioritizing on-farm sustainability. In 2011, CDI co-founded Dairy Cares, a leading non-profit pursuing research and innovation in the area of sustainable dairy practices in California. More recently, CDI has adopted the U.S. Dairy Stewardship Commitment, which aims to be carbon neutral or better by the year 2050.

    The 220,000 square foot facility will be built on 30 acres of land in Northern Kern County. The facility is expected to create approximately 100 new jobs when fully operational in 2023.

    About California Dairies, Inc.

    California Dairies, Inc. is the largest member-owned milk marketing and processing cooperative in California, producing 40 percent of California’s milk. Co-owned by more than 300 dairy producers who ship nearly 17 billion pounds of Real California Milk annually, California Dairies, Inc. is a manufacturer of quality butter, fluid milk products, and milk powders. In addition, California Dairies, Inc. is the home of two leading and well-respected brands of butter – Challenge and Danish Creamery. California Dairies’ quality dairy products are available in all 50 United States and in more than 50 foreign countries. For additional information on California Dairies, Inc., visit www.CaliforniaDairies.com.

  • U.S. Dairy Industry Publishes Biennial Sustainability Report

    The checkoff-founded Innovation Center for U.S. Dairy released its biennial 2020 U.S. Dairy Sustainability Report inclusive of progress made in 2019 and 2020 within environmental stewardship and broader social responsibility commitments to people, animals and communities.

    The report provides a transparent accounting of the progress and impact that the dairy community has made against the U.S. Dairy Stewardship Commitment since its launch in 2018. Those dairy companies and processors that have voluntarily signed onto the Stewardship Commitment represent 75 percent of U.S. milk production* and are dedicated to nourishing a growing global population with responsibly produced dairy foods and beverages.

    Lisa Watson, Innovation Center for U.S. Dairy

    “The U.S. dairy industry has continued to prioritize social responsibility, helping people and communities thrive, while advancing sustainable practices and becoming an environmental solution,” said Lisa Watson, social responsibility officer of the Innovation Center for U.S. Dairy. “It’s the result of cross-sector collaboration among dairy farmers, companies and other key stakeholders working together to address complex sustainability challenges and accelerate positive change.”

    In 2020, the U.S. dairy industry experienced significant disruptions to its individual businesses, dairy farms, cooperatives and companies brought on by the COVID-19 pandemic. Despite the challenges, the report shows the progress the dairy industry made by collectively standing by its social responsibility commitments.

    Key highlights include:

    • More than 95 percent of resources from processors was recovered, redirected and put to beneficial use such as donated to feed hungry people, repurposed for industry purposes and to feed animals and sent to composts (vs. sent to landfill).
    • U.S. dairy provided 1.538 billion servings of nutritious milk, cheese and yogurt in 2020 to food banks in the Feeding America network, a 33 percent increase over 2019 and a 107 percent increase since 2016.
    • The dairy industry supported 3.3 million jobs in the U.S. and contributed $752.93B in total economic impact.
    • By making use of the water present in milk, U.S. dairy processors were net positive for water, returning more than they withdrew from municipal and other sources.
    • The U.S. Dairy Net Zero Initiative was launched as an industry-wide effort to make sustainable practices and technologies more accessible and affordable for dairy farms of all sizes and included initial corporate partnerships with Nestlé and Starbucks.

    A first for U.S. dairy, the report incorporates nationally aggregated processor data against Stewardship Commitment metrics. Dairy processors developed and provide ongoing support for a reporting tool to serve as a credible and consistent way to calculate and track processor sustainability progress. Aggregations on GHG and water intensity, as well as other sustainability metrics, will serve as a baseline for future reporting.

    For information about the industry’s sustainability work and the dairy checkoff, visit www.usdairy.com.

    *At the close of the 2020 Sustainability Report reporting period (December 31, 2020), the Stewardship Commitment represented 74% of U.S. milk production.

    About the Innovation Center for U.S. Dairy and U.S. Dairy Stewardship Commitment
    The Innovation Center for U.S. Dairy® is a leadership forum that brings together the dairy community and third parties to address the changing needs and expectations of consumers and customers. Initiated in 2008 by dairy farmers through the dairy checkoff, Innovation Center leaders and members collaborate on important areas like the environment, nutrition and health, animal care, food safety, and community contributions. Through the Innovation Center, the U.S. dairy community demonstrates its commitment to continuous improvement from farm to table, striving to ensure a socially responsible and economically viable dairy community. For more information, visit www.usdairy.com/about-us/innovation-center

  • Scientists can Switch on Plants’ Response to Light

    Scientists have figured out how plants respond to light and can flip this genetic switch to encourage food growth. The discovery could help increase food supply for an expanding population with shrinking opportunities for farming. The research on this genetic switch, led by UC Riverside, has now been published in the journal Nature Communications

    Almost every aspect of plant growth and development is influenced by light. Plants are able to sense light, as well as temperature, with a protein called phytochrome B. This protein conveys light information into the cell that changes the expression of genomes, altering plant growth. However, phytochrome B cannot interact directly with the plant’s DNA. For that, plant cells rely on a family of eight proteins called PIFs.

    “The activity of these PIFs is directly controlled by phytochrome,” said lead study author and UCR botany professor Meng Chen. In addition to controlling the amount of PIFs that accumulate in plant cells, the scientists have learned that when phytochrome B is activated by light, it inhibits the activity of the PIFs.

    “PIFS are like chefs in a restaurant. You can regulate the number of them. Get rid of half, for example and you reduce the restaurant’s productivity,” Chen explained. “Alternatively, you could keep all chefs — in our case, PIFs — but tie up their hands. That could also slow down their work the same as getting rid of half of them. That’s what we’re saying.”

    The scientists also found another key component of plants’ light response. PIFs have two parts; one part that binds to genes, and one that activates the genes, which tell the plant to perform different functions such as growing or flowering. This study found the precise location of these activator regions — the first time this has been done in plant cells.

    To find this activation region, Chen’s team chopped the protein into many small pieces. Then, they examined whether any of the pieces were able to activate genes and found that one of them was. For more detail, the scientists then changed the amino acids on a PIF, where they believed the activator region to reside, and observed how the plant responded. This allowed them to be sure where the gene activator region is located as well as how it is built.

    “This approach allowed us to surprisingly recognize the similarities between this part of the PIF in plants and a tumor-suppressing protein in humans,” Chen said. In fact, Chen said the basic gene activation mechanisms in plant, yeast, and animal cells bear remarkable similarities to one another.

    “Plants, animals, and fungi (like baker’s yeast) all evolved from a common ancestor,” Chen said. “Genetic information in DNA converts to RNA to protein, and that basic function is conserved through these gene activators across three kingdoms of life, before plants, animals and fungi diverged.”

    One of the biggest reasons to study these cellular functions is to manipulate them. In this case, the discovery could allow scientists to turn light and temperature-related genes on and off to benefit crop growers.

    Dark-grown (left) and light-grown (right) Arabidopsis seedlings. In the dark, PIF3 (and other PIFs) has full activity, so the seedling is very tall. In the light, phytochrome B inhibits the stability and activity of PIF3, slowing seedling growth. (Meng Chen/UCR)

    Part of the strategy to increase crop yields is to grow more plants per acre of land. Currently, if you place crops too close together, plants can “see” the competing neighbors through their shade. Then plants will use more energy for growing taller toward the light, but not necessarily for maximizing leaf growth and seed production.

    Alternatively, if plants can ignore their neighbors and concentrate on leaf and seed production instead of growing taller, growers can increase yield on the same acreage.

    “You don’t want only stems to grow, you want yield,” Chen said. “For that, plants need energy to make leaves so they can increase photosynthesis, the process of making food out of sunlight. You want the right part of the plant to grow.”

    Chen’s group demonstrated that by reducing the activity of PIF proteins, they could slow down stem growth.  This study thus uncovered a precise way to make the plants grow shorter, so that seeds, fruit and edible portions of the plant can grow, even in shade.

    “Now we know how plants turn genes on and off in response to changes in light and temperature,” Chen said. “It’s the first step toward controlling their responses to light and temperature, and making them more tolerant of different, sometimes challenging environments in a changing climate.” — By Jules Bernstein, UC Riverside

  • USDA Awards $248 Million for International School Feeding Projects

    The U.S. Department of Agriculture will invest $248 million in 10 new school feeding projects expected to benefit more than a million children worldwide, Deputy Secretary of Agriculture Jewel Bronaugh announced today.

    USDA’s 2021 commitment, through the Foreign Agricultural Service’s McGovern-Dole International Food for Education and Child Nutrition Program, includes both direct financial support and the donation of U.S.-grown commodities to be used in school meals.

    “Globally, school feeding is one of the most successful social protection measures, reducing food insecurity, improving nutrition for vulnerable children and their families, and offering a powerful incentive for families to send their children – especially girls – to school,” Bronaugh said.

    Through the McGovern-Dole Program, FAS works with development organizations and governments in developing countries to reduce hunger and improve literacy and primary education. By providing school meals, teacher training and related support, McGovern-Dole projects help boost school enrollment and academic performance, with a special focus on girls. In areas where the COVID-19 pandemic has forced schools to close, project implementers have also pivoted to provide take-home rations for students and their families.

    The 10 new projects USDA is funding in 2021 are in addition to 40 projects already underway in 30 countries. Some of this year’s funding will go towards local procurement of agricultural commodities to supplement donated U.S. commodities, helping increase dietary diversity and build connections between project schools and local farmers.

    “The ultimate goal of the McGovern-Dole Program is to bring about sustainable, lasting change. We’re not just providing food, we’re also investing in education and working to ensure that the communities we serve will ultimately be able to continue school feeding and related activities on their own or with local support,” Bronaugh said.

    Since the McGovern-Dole Program was established in 2002, it has benefitted more than 31 million children in 51 countries and utilized more than 1.3 million metric tons of donated U.S. commodities.

    “USDA is proud to be the largest international school feeding donor via the McGovern-Dole Program. We’re also bringing that leadership and expertise to bear as part of the Global School Meals Coalition, which was launched at the United Nations Food Systems Summit last month,” Bronaugh said. “We look forward to working with other like-minded countries and international organizations through the coalition to make sure that all schoolchildren worldwide have access to nutritious school meals by 2030.”

    A complete list of 2021 McGovern-Dole awards is available here.

  • New Grant Advances Research on Domestic Organic Rice

    The University of Arkansas, in collaboration with The Organic Center and the University of California Cooperative Extension, has been awarded nearly $500,000 through USDA’s Organic Research and Extension Institute (OREI) to help undertake a three-year project studying the challenges and opportunities for organic rice production and usage in the United States.
     
    Currently, consumer demand for organic rice exceeds domestic supply, and leads to significant import competition. Meanwhile, research is needed to determine whether domestic organic rice production can be competitive and sustainable, and what attributes consumers consider desirable in the rice they eat.
     
    The long-term goal is to facilitate the growth of organic rice production in the U.S. and foster the growth of the domestic market. Specifically, researchers will focus on identifying and assessing the economic impacts of different production practices used in domestic organic rice production. To expand domestic consumption of organic rice, researchers plan to study consumers’ preferences. In addition, researchers will develop a multi-state outreach program to disseminate the findings of the research.
     
    “It will be important to assess producer and consumer attitudes about organic rice production and consumption, and then identify any barriers that need to be overcome to improve the market opportunities” says Dr. Alvaro Durand-Morat of the University of Arkansas who is lead Project Investigator.
     
    The research will include using discussions with farmer focus groups and surveys, as well as studies of consumer behavior and attitudes concerning desired attributes of rice they buy and consume. Findings and results will be disseminated through many channels, including interactive extension tools, presentations, and journal and newspaper publications, to reach targeted audiences.
     
    During the first year, The Organic Center will issue press releases and grower group announcements to publicize the planned research. It will also provide a web portal to post description of the project, updates, and other information. Meanwhile, it will launch a social media campaign about the research via The Organic Center and Organic Trade Association Facebook and Twitter accounts. This campaign will continue throughout the full four years of the project to disseminate information gathered at farmer and industry group listening sessions, requests for stakeholder input, research findings, and stakeholder meeting conference sessions and workshops.
     
    During the second and third years, The Organic Center will increase its outreach to allow wide dissemination of on-farm research findings and recommendations. Included will be webinars, and publications explaining research results.

    “We are thrilled to be a part of this monumental research,” said Dr. Jessica Shade, Director of Science Programs at The Organic Center. “This project will fill a critical need to help increase the domestic supply of organic rice.”
     
    OREI helps support wide ranging research projects that specifically address the most critical issues impacting organic growers. The 2018 Farm Bill approved increasing funding for OREI to $50 million per year by 2023, thus establishing permanent funding for the program. For the current 2021 funding round, this amount increased from $20 million to $25 million. In 2022, the amount will increase to $30 million. In 2023, the program funding amount will be capped at annual distribution of $50 million.

    This project is funded by USDA NIFA# 2021-51300-34910.

  • Adapting to Persistent Supply Chain Disruptions

    The U.S. economy is on a strong growth path and cash-rich consumers are spending robustly on both services and goods. Roughly 80% of the U.S. adult population has now received at least one vaccination shot, leading to renewed participation in many public activities.1 But while the U.S. economy is running hot, it is still very much in the grips of the pandemic. Its negative influence, however, has steadily shifted from curtailing demand to derailing supply chains.

    According to a new Quarterly report from CoBank’s Knowledge Exchange, supply chains are arguably in the most dire condition since the start of the pandemic, as lead times for manufacturing inputs recently reached record highs. Persistent supply chain disruptions and labor shortages are adding significant costs to business operations, and consumers will feel these effects through higher prices for months to come.

    “Supply chain snarls are likely to persist well into 2022, and so will elevated inflation,” said Dan Kowalski, vice president of CoBank’s Knowledge Exchange division. “The latest producer price index data for August was up 20% year-over-year, while the consumer price index increased just 5.2%. So it’s clear that many businesses are passing only a small portion of those cost increases on to the final consumer. We expect that will change in the months ahead and many businesses will raise prices.”

    Rapidly rising input costs and product shortages are hitting agriculture particularly hard, as ag commodity prices have flattened and inflation compresses margins. However, robust exports have kept much of agriculture in the black. The USDA currently projects that China will import $39 billion of U.S. ag products in 2022, up from an estimated $37 billion in 2021. While that forecast looks promising, success will be much more dependent on prices remaining high as volume is likely to fall.

    Grains, Farm Supply & Biofuels

    Corn, soybean and wheat prices declined from their third-quarter highs, but will likely rebound due to tight supplies and rising demand for soybean and vegetable oils for use in renewable diesel fuel. The export picture remains cloudy in the short term as grain terminal operations in the U.S. Gulf region are just beginning to recover from Hurricane Ida and export volumes remain depressed.

    Ag retailers are benefitting from strong demand for crop inputs resulting from above-average U.S. grain prices and net farm income. While harvest is far from conclusion, farm supply cooperatives should experience a favorable fall agronomy season, barring any extreme weather events. Skyrocketing fertilizer prices and crop chemical shortages are two key short-term risk factors for the ag retail sector.

    The U.S. fuel ethanol sector saw mixed performance during the past quarter as production fell but operating margins increased dramatically. The regulatory environment remains dynamic and U.S. biofuel policy continues to be an area of friction between farmers, ethanol producers and fossil fuel refineries. Debate surrounding the Environmental Protection Agency’s proposed renewable fuel standard (RFS) blending volume requirements continues.

    Animal Protein & Dairy

    Returning demand from the food service sector led to extraordinary strength in the U.S. meat and poultry complexes throughout the summer. While pent-up demand has been a tailwind for the meat industry in recent months, the full effect of inflation is expected to test consumers’ appetite for meat during the fourth quarter.

    Foreign demand for U.S. animal protein has remained robust. Combined U.S. exports of beef, pork and chicken are forecasted to reach record highs in 2021, increasing 3% over last year. But inadequate labor availability continues to dampen productivity throughout the meat industry and is expected to remain a concern throughout the supply chain into 2022.

    Strong consumer demand for chicken breast meat and wings, combined with improved export demand resulted in a continuation of historically low ending stocks. Freezer inventories of broiler meat at the end of August were reported to be down 3% from July, and 20% below prior year. Beyond labor, hatchability remains a major constraint to chicken production growth. Weekly incubation rates have been reported at 3-5% higher than a year ago, yet harvest is down 1% from last year.

    The U.S. beef industry continues to benefit from elevated domestic demand and extraordinary foreign demand. U.S. beef exports are on pace to hit record levels for 2021, with Korea up 17% in volume through July, and China up 137% compared to 2020. Per-head packer margins remain at historic highs. In August, the choice boxed beef cutout valuation averaged $322/cwt., up nearly 50% compared with the same period last year.

    African Swine Fever (ASF) continues to add trepidation to the U.S. pork sector outlook. Roughly 27% of U.S. pork is exported. If ASF is found in U.S. hogs, it could effectively shut down exports overnight. Meanwhile, pork prices and hog values have responded favorably to tight supplies. Pork cutout prices are up 60% from a year ago and are 40% higher than the five-year average. Nearby hog futures eclipsed $120/cwt for the first time since 2015.  

    Rising feed and construction costs halted the 11 month-long expansion of the U.S. dairy herd last quarter while record hot temperatures dented milk cow productivity. The U.S. cow herd dropped by 29,000 head over three consecutive months into August. Labor supply tightness has prompted dairy producers to evaluate purchases or leases of robotic milkers, which have become more cost efficient with rising labor costs.

    Despite the congestion in the global supply chain, exporters continue to move big volumes of U.S. dairy products, particularly milk powder and cheese to Mexico and Asia. Domestic demand for dairy products also remains resilient with the return to school lifting fluid milk demand and the expanded cheese processing industry’s demand for milk is constant and growing.

    Cotton, Rice & Specialty Crops

    U.S. cotton prices have continued their slow but steady climb over the past 18 months, rising nearly 20% since the beginning of the year, outpacing both corn and soybeans. Texas is poised to post its second largest crop in history. Exports to China had been on a torrid pace since the beginning of 2020 but have stalled over the past two months. However, other markets have picked up the slack as world mill use has outpaced production for two years in a row.

    Flood damage resulting from Hurricane Ida has reduced rice harvest prospects on a crop that was already set to be smaller year-over-year on lower planted acreage as farmers switched acres to corn and soybeans. Concerns over flood damage lifted rough rice futures late in the quarter. Global rice supplies remain ample and have dampened the outlook for U.S. rice exports and prices.

    Hurricane Ida also impacted Louisiana’s sugarcane region. Crop damage was modest, but it will likely take a small bite out of local yields and extraction rates. Louisiana provides about 20% of the total domestic sugar production. The most consequential impact of the hurricane is that it temporarily shut down the sugar refining facilities in New Orleans, adding another supply chain problem for end-users. Spot wholesale cane prices have spiked to the mid-50 cent range, compared to the 2015-2019 average of 35 cents/lb.

    California tree nut growers anticipate a smaller crop but sharply higher prices. Intense drought conditions trimmed bearing acreage and yield potential this growing season. But the combination of an expanded global market, continued weakness in the U.S. dollar and a smaller harvest is widely anticipated to lift tree nut prices in the marketing season ahead.

    Power, Water & Communications

    The price for taking winter delivery of natural gas is now trading at a seven-year high as global scarcity concerns and a more measured return to domestic production growth have fueled early buying. The market appears to be concerned that the demand for U.S. natural gas exports is so strong that there may be little flexibility in meeting domestic demand, should another cold winter unfold. Exports have risen significantly, with the U.S. now exporting about 10% of its dry gas production, a 30% increase compared to year ago levels.

    The country’s largest reservoirs in the West have tipped to crisis, threatening the region’s water supply and hydropower generation. In August, the federal government declared a water shortage on the Colorado River for the first time, triggering mandatory water consumption cuts for the Southwest states. Unfortunately, a recent report by the National Oceanic and Atmospheric Administration foresees little relief on the horizon for the region. With scarcity proving to be the mother of invention, the West will likely come up with innovative ways to conserve water in the year ahead, identifying longer-term solutions for improved resiliency.

    Momentum is growing in Washington to reform the Universal Services Fund (USF) in an effort to bridge the digital divide. Currently, the USF does not offer a large enough revenue base to fund future broadband programs that are needed to ensure broadband is available in unserved rural areas.

    Private wireless networks are growing in popularity with towns and cities as a cost-effective way to bridge the digital divide. Cities are leveraging light poles and roof tops and partnering with equipment manufacturers and system integrators to build private wireless networks using CBRS spectrum.

    Read The Quarterly. Each CoBank Quarterly provides updates and an outlook for the Macro Economy and U.S. Agricultural Markets; Grains, Biofuels and Farm Supply; Animal Protein; Dairy; Specialty Crops; Other Crops and Rural Infrastructure Industries.

    About CoBank

    CoBank is a $158 billion cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 75,000 farmers, ranchers and other rural borrowers in 23 states around the country.

    CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and maintains an international representative office in Singapore.

    Reference:

    1. COVID Data Tracker, Centers for Disease Control and Prevention, https://covid.cdc.gov/covid-data-tracker/#vaccinations_vacc-total-admin-rate-total, accessed Oct. 6, 2021
  • Beef & Cattle Markets Driven by Supply & Demand

    Following warnings about government intervention in beef and cattle markets from leading agricultural economists from around the country, François Léger, Owner and CEO of FPL Food, on behalf of the North American Meat Institute (Meat Institute) offered his perspective on the market as a beef packer and processor during the House Agriculture Committee’s hearing to “Review the State of the Livestock Industry.”

    “The cattle and beef industry are driven by the supply and demand fundamentals of the free market, and the cattle industry is cyclical,” Léger said. “Not that long ago the cattle market was the reverse of today – in 2013, 2014 and 2015, the herd was small, and producers were making record profits while packers were losing money.

    “During the pandemic, with packing capacity operationally reduced and the cattle herd large, cattle prices dropped. FPL worked with the Georgia Cattlemen’s Association to help support the cattle industry: we need cattle producers. And cattle producers need packers.”

    For Léger’s complete written testimony go here.

    During the hearing, House Agriculture Chairman David Scott (D-Ga.) submitted for the record an analysis of beef and cattle markets originally requested by the Chair and Ranking Member of the Committee during the previous Congress. The analysis is a 180 page book called “The U.S. Beef Supply Chain: Issues and Challenges,” and is the result of a collaboration with Texas A&M’s Agricultural and Food Policy Center, national experts and the U.S. Department of Agriculture.

    One of the most significant findings of the report was that U.S. Senator Charles Grassley’s (R-Iowa) proposal to have the government mandate for a minimum of negotiated cash market purchases, called the 50/14 bill, would cost cattle producers $16 billion over 10 years.

    “Senators Grassley and Fischer’s proposed legislation will reduce the use of alternative marketing arrangements, hurting producers by limiting the ways in which they can market cattle, and damaging the entire industry by reducing the economic incentives to meet consumer demand for beef,” said Julie Anna Potts, President and CEO of the Meat Institute. “But this pales in comparison to the unintended consequences: an estimated $16 billion negative impact over 10 years, which will largely be borne by cattle producers. In a rush to pick winners in the beef and cattle market, Members of Congress may harm those they are trying to protect.”

    François Léger’s FPL Food employs 1300 workers and slaughters cull cows and bulls, sourcing cattle through auction barn purchases across the Southeast from more than a dozen states, from east Texas to the Carolinas, from Mississippi, Alabama, Louisiana, Virginia to Florida, and Georgia. FPL’s fed cattle operation, Chatel Farms has a herd totaling more than 8,000 head including Angus and Akaushi (Wagyu), pure-bred seed-stock animals, and feeder cattle to support the FPL Food beef brands.

    Léger told the Committee that production in meat packing and processing plants is tied to the number of employees working the line, and the pandemic has only exacerbated labor shortages.

    “Currently, we see on average 20 percent daily absenteeism in our plant,” Léger said. “I come to work every day and the first decision I face is which line to run and how to staff it. We have increased our starting salary to $15 an hour, which also means we must increase all salaries up the chain. Our average salary is now $20 an hour for plant workers, and yet we still cannot run at full capacity because of absenteeism. Our costs in salary alone have increased by $7 million a year.”

    Léger concluded his remarks with a warning of his own, “We cannot achieve these goals in a restricted market that does not allow companies like mine to produce products that meet consumer expectations. USDA has announced plans to propose new Packers and Stockyards Act rules to regulate the interactions between packers and producers, and bills have been introduced in Congress that would place certain purchasing requirements on packers. Government intervention could jeopardize packers’ ability to provide products customers and consumers desire. The industry needs to be customer oriented; we must provide the products customers want. Thirty years ago, I saw first-hand in France the result of direct government intervention into the meat industry, and it was a failure. I hope we avoid the same mistake here.”

    Léger’s testimony also reminded the Committee that the Meat Institute recently unveiled the Protein PACT for the People, Animals, and Climate of Tomorrow, the first joint initiative of its kind designed to verify progress toward global sustainable development goals across all animal protein sectors to ensure customers and consumers trust that meat aligns with their sustainability expectations.

    “Through the Protein PACT, Meat Institute members have developed robust metrics for continuous improvement and publicly committed to sustain healthy animals, thriving workers and communities, safe food, balanced diets, and the environment, and align with the United Nations’ 2030 Sustainable Development Goals,” Léger said.

    For more information from the Meat Institute on beef and cattle markets see the following:

    They Said It: Economists, Academics, Industry Agree: Supply, Demand, Labor, Economies of Scale Drive Beef and Cattle Markets

    On Inflation: North American Meat Institute to Secretary Vilsack: Scapegoating Industry Does Not Help Consumer

    On Market Structure and Capacity: Meat Institute’s Public Comments in Response to Secretary Vilsack’s Request for Information on Investments and Opportunities for Meat and Poultry Processing Infrastructure