Category: Ag Economics

  • How to Meet Today’s Wine Consumers Where They Are

    The rising generation of wine consumers are uniquely different from those that came before in so many ways.  As growers, wine makers and marketers seek to navigate changing trends and behaviors, watch this video featuring beverage alcohol consultant Danny Brager as he shares how to meet today’s wine consumers where they are.

    Please thank this video’s sponsor Ranch Systems for their industry support.

  • Red Wine from the Land Down Under Wreaks Havoc on Global Market

    As we’ve learned so painfully during the pandemic, one thing leads to another; and the actions of one politician in Australia have had a domino effect leading to severe challenges in the global red wine market.  Watch this brief interview with Mike Veseth, The Wine Economist and Professor Emeritus of International Political Economy at the University of Puget Sound, and learn more about the state of the wine industry in American Vineyard Magazine.

    Please thank this video’s sponsor Ranch Systems for their industry support.

  • California State Fair Commercial Wine Competition Now Open for Entries

    The California State Fair Commercial Wine Competition is now open and accepting entries from California wine producers. The competition provides an opportunity for California wine producers to showcase their best wines and have them evaluated by a panel of expert judges.

    The competition is open to all commercial wineries in California, with categories for red, white, rosé, sparkling, and dessert wines. The competition also includes categories for organic and biodynamic wines.

    The deadline for entries is May 31, 2023, and wines must be received by June 7, 2023. Judging will take place on June 21-22, 2023, and results will be announced in July. Gold, silver, and bronze medals will be awarded in each category, and the top wines will be featured at the California State Fair in July.

    Entries can be submitted online at the California State Fair website: https://calexpostatefair.com/participate/competitions/california-commercial-wine/.

  • Eating Almonds Before Meals May Help People with Prediabetes

    Two new research studies with almonds, one conducted over three days and the other over three months, demonstrated benefits to blood sugar control for Asian Indians with prediabetes and overweight/obesity – and the three-month almond intervention broke new ground, reversing prediabetes, or glucose intolerance, to normal blood sugar levels in nearly one quarter (23.3%) of the people studied.

    In both studies, 60 people ate 20 g (0.7 oz) of almonds, around a small handful, 30 minutes before breakfast, lunch, and dinner throughout the study durations. Researchers expressed their enthusiasm for these almond studies and the first-of-its-kind statistically significant reduction in measures of prediabetes by calling the reversal of prediabetes through diet “the holy grail of medicine.” Better glucose control over time through dietary strategies like including almonds could help stave off diabetes progression. Nearly 70% of individuals with prediabetes will develop diabetes within their lifetime.Both studies were randomized controlled trials funded by the Almond Board of California. The researchers hypothesized that the almond snack before major meals, known as “preloading,” would reduce glucose and insulin fluctuations after meals and reduce overall hyperglycemia compared to the control diet. The findings complement the breadth of research on different populations on how almonds support healthy blood sugar as part of a balanced diet.

    “Results from our studies indicate almonds might be a key differentiator in helping regulate blood glucose levels as part of a dietary strategy. These results showcase that the simple addition of a small portion of almonds before each meal can quickly and drastically improve glycemic control in Asian Indians in India with prediabetes in just three days. Eating 20 g of almonds 30 minutes before an oral glucose load showed a significant decrease in blood sugar and hormones. Almonds’ nutritional makeup of fiber, monounsaturated fats, zinc, and magnesium work together to help provide better glycemic control and reduce hunger,” said lead author Dr. Anoop Misra, Professor and Chairman, Fortis-C-DOC Centre of Excellence for Diabetes, Metabolic Diseases, and Endocrinology (New Delhi). “Our outcomes provide a promising dietary strategy for reducing prediabetes progression and returning people to normal glucose regulation.”

    His collaborators agree. “In view of the increasing prevalence of diabetes, dietary strategies like consuming almonds 30 minutes before major meals offers a good option to decrease the spike in blood glucose levels after meals,” said Dr. Seema Gulati, head, Nutrition Research Group, National Diabetes, Obesity, and Cholesterol Foundation.

    The longer-term study:

    This three-month longer-term study was with overweight or obese Asian Indian adults who had prediabetes. Participants were randomized into either the almond treatment group or into the control group, and both were provided with diet and exercise counseling as well as home-use glucometers to measure their glucose levels, which were recorded in diaries along with dietary intake and exercise.

    Study measures comprised a variety of anthropometrics: body weight; circumferences of waists, hips, and arms; skinfolds of customary locations of the body; and body fat estimates. Biochemical measures included insulin, blood sugar, hemoglobin A1c, C-peptide, glucagon, proinsulin, high sensitivity C-reactive protein, tumor necrosis factor alpha, and lipids.

    Eating 20 g (0.7 oz) almonds ahead of breakfast, lunch, and dinner, for three months resulted in first-of-its kind statistically significant reductions for the treatment group in body weight, body mass index, waist circumference, skinfold tests for shoulder and hip areas, as well as improved handgrip strength. Similarly, reductions were seen for fasting glucose, postprandial insulin, hemoglobin A1c, proinsulin, total cholesterol, LDL-cholesterol, and very low-density lipoprotein. Importantly, no changes occurred with beneficial HDL-cholesterol, meaning this cardioprotective lipid was maintained despite other observed biochemical alterations.

    These substantial metabolic improvements led to nearly one-fourth (23.3%) of the prediabetes study participants returning to normal blood glucose regulation. These findings are meaningful for global public health given the prevalence of diabetes, the troubling rates of progression from prediabetes to diabetes, and are specifically relevant to Asian Indians in India who are disproportionately impacted because of their greater tendency to progress from prediabetes to diabetes.

    Researchers think the nutrients in almonds may play a role in the observed health benefits from this study. “The natural combination of monounsaturated fatty acids and soluble fiber could be responsible for the positive metabolic outcomes,” Dr. Misra said. “Almonds may slow stomach emptying, which could help people ingest less food and fewer calories to promote weight management, which is important in helping reverse the course of prediabetes back to normal blood sugar regulation.”

    While the results are extremely promising, the researchers noted some limitations, including the relatively small sample size and limited period of intervention. They also noted that the study included Asian Indians who had well-controlled prediabetes, and the researchers cannot extrapolate the same impact of a premeal load of almonds in participants with type 2 diabetes. Including participants with poorly controlled metabolic states as well as those with diabetes could be useful.

    The short-term study:  

    • Part 1: One Day Oral Glucose Tolerance Testing (OGTT): Participants were first divided into two groups of 30. The first group consumed a 20 g (0.7 oz) portion of almonds. The second group received no almonds and both groups were given an OGTT.
    • Part 2: Three-Day Blood Glucose Monitoring: Using a continuous glucose monitoring system (CGMS), researchers compared the glycemic effects of preloading three meals a day (breakfast, lunch, dinner) with 20 g (0.7 oz) of almonds for three consecutive days in 60 participants, with the participants who received no preloading of almonds.

    Upon conclusion of the short-term study, researchers found that indicators for hyperglycemia, such as blood glucose, serum insulin, glucagon, and C-peptide (only OGTT results) were lower for the almond group versus the control group. There was an 18.05% decrease in PPBG levels, indicating improved regulation of glycemic responses among the almond consumers.

    Results from the continual glucose monitoring system showed statistically significant improvement in glucose variability over the first 24 hours in the almond group, indicating appropriate glucose control. Specifically, PPHG levels were lowered by 10.07% in the almond group compared to control. Additionally, treatment with premeal almond loading significantly improved several indicators that reflect daily glycemic control compared to the control group: lower mean 24-hour blood glucose concentration, less time spent above an elevated blood glucose level of 140 mg/dL, lower peak 24-hour glucose levels, decreased post-prandial blood glucose levels, lower minimum glucose levels at night, and lower overall hyperglycemia.

    Limitations of the short-term study include a limited period of intervention with a smaller sample size comprising people with prediabetes. Also, nutritional intervention studies can trigger behavioral changes in both groups as the participants are made aware of their risk during the recruitment process and were given dietary instruction prior to the study. Further research is needed to investigate the effects of almond preloading consumption on the same measures in different ethnicities and in individuals with diabetes and normal body weights to be able to provide broader recommendations.

    In summary, with both studies, Dr. Misra and colleagues found that study participants who ate 20g (0.7oz) of almonds 30 minutes before a meal showed significant improvements in glycemic control compared to not eating almonds before meals over three months. Almonds can be part of a nutritious dietary solution offering good potential for the reversal of prediabetes to normal glucose regulation in some Asian Indians and therefore potentially prevent or delay the development of diabetes in people with prediabetes.

    A one-ounce (28 g) serving of almonds provides 4 g (14% DV) fiber and 15 essential nutrients, including: 77 mg (20% DV) magnesium, 210 mg (4% DV) potassium, and 7.27 mg (50% DV) vitamin E, making them a perfect nutrient-rich snack for those with impaired glucose tolerance or type 2 diabetes.  — Article by the Almond Board of California

  • Entries Open for the California State Fair Commercial Cheese Competition

    The California State Fair Commercial Cheese Competition is now open and accepting entries exclusively from cheese makers in California. The competition is a celebration of the rich history and diversity of California’s cheese industry.

    Cheese makers from all regions of California are encouraged to enter their best cheeses in the competition, which will be judged by a panel of expert judges. The competition is open to all commercially-produced cheeses, including cow, goat, and sheep milk cheeses, as well as cheese blends.

    Winning cheeses will be awarded gold, silver, and bronze medals, and the coveted “Best of Show” award. In addition, winning cheeses will be featured in the State Fair’s dairy products display, which attracts thousands of visitors each year.

    Entry forms and fees must be received by May 26, 2023, and the cheeses must arrive at the competition by June 2, 2023. The competition will take place on June 12, 2023, and winners will be announced on June 15, 2023.

    For more information on the California State Fair Commercial Cheese Competition, including entry guidelines and rules, please visit https://calexpostatefair.com/participate/competitions/california-commercial-cheese/.

  • 2023 Real California Pizza Contest Kicks Off Search for Top U.S. Pizza Chefs

    The California Milk Advisory Board (CMAB) opened entries for the 2023 Real California Pizza Contest, the fifth annual search for the best pizza recipes using Real California cheeses. The contest, open to professional chefs and culinary students throughout the U.S., will award prizes up to $30,000 for the most innovative uses of cow’s milk cheeses from California during a bake-off event August 2 in Napa, Calif.

    The culinary competition is open for chefs to submit recipes in three categories: Cal-Mex, the REAL Californian and Plant-Forward. Cal-Mex recipes incorporate toppings that combine flavors from California and Mexican cuisines and feature Hispanic-style cheeses from California. The REAL Californian pizza category incorporates ideas inspired by the Golden State that highlight California dairy products and toppings. Plant-Forward pizza recipes emphasize the delicious flavor combinations of fruits, veggies, and Real California cheeses.

    “Cheese is the heart and soul of every great pizza. As the leading producer of Mozzarella as well as Hispanic-style and originals like Monterey Jack, chef participants have a broad range of options to showcase how California cheese and dairy helps them create innovative pizzas,” said Mike Gallagher, Business and Market Development Consultant for the CMAB.

    Participants can access the requirements, submit recipes, and complete entry documents HERE. This year’s simplified entry form includes pizza name, photograph, and a short description detailing the recipe concept and use of Real California cheese and dairy. Chefs can choose from more than 250 varieties and styles of cheeses that carry the Real California Milk seal, which means they are made with sustainably sourced milk from California’s more than 1,100 family dairy farms. Final deadline for submissions is May 21, 2023.

    All entries will be evaluated by an internal judging team with the top four recipes in each category selected as finalists. These 12 finalists will receive an all-expense paid trip to compete head-to-head at a bake-off event on August 2, 2023, at the Culinary Institute of America at Copia in Napa, Calif. The winners of the Cal-Mex, REAL Californian and Plant-Forward categories will each receive $5,000. The best overall pizza recipe creator, as selected by the judging panel, will receive an additional $10,000 grand prize award. All finalists who are not category winners will receive $500 each.

    Bakeoff finalists will be judged by a panel of award-winning pizza chefs including 13-time world pizza champion Tony Gemignani, renowned Italian and pizza chef Glen Cybulski, and 2022 Real California Pizza Champion David Jacobson.

    California is a reliable, consistent source of sustainable dairy products used by chefs throughout the world. As the nation’s largest dairy state, California boasts an impressive lineup of award-winning cheesemakers and dairy processors, that are helping to drive dining innovation.

    About Real California Milk/the California Milk Advisory Board
    The California Milk Advisory Board (CMAB), an instrumentality of the California Department of Food and Agriculture, is funded by the state’s dairy farm families who lead the nation in sustainable dairy farming practices. With a vision to nourish the world with the wholesome goodness of Real California Milk, the CMAB’s programs focus on increasing demand for California dairy products in the state, across the U.S. and around the world through advertising, public relations, research, and retail and foodservice promotional programs.

    The Foodservice Division of the CMAB supports foodservice operators and distributors that use Real California dairy products. The CMAB offers marketing and promotional support for foodservice operators that purchase dairy products with the Real California Milk seal, which means they are made with 100 percent milk from California’s more than 1,100 family dairy farms, using some of the most sustainable dairy practices in the nation.

  • Additional USDA Assistance for Distressed Farmers Facing Financial Risk

    The U.S. Department of Agriculture (USDA) today announced that beginning in April it will provide approximately $123 million in additional, automatic financial assistance for qualifying farm loan program borrowers who are facing financial risk, as part of the $3.1 billion to help distressed farm loan borrowers that was provided through Section 22006 of the Inflation Reduction Act (IRA). The announcement builds on financial assistance offered to borrowers through the same program in October 2022.

    The IRA directed USDA to expedite assistance to distressed borrowers of direct or guaranteed loans administered by USDA’s Farm Service Agency (FSA) whose operations face financial risk. For example, in the October payments, farmers that were 60 days delinquent due to challenges like natural disasters, the pandemic or other unexpected situations were brought current and had their next installment paid to give them breathing room.

    “In too many cases, the rules surrounding our farm loan programs may actually be detrimental to helping a borrower get back to a financially viable path. As a result, some are pushed out of farming and others stuck under a debt burden that prevents them from growing or reacting to opportunities,” said Agriculture Secretary Tom Vilsack. “Loan programs for the newest and more vulnerable producers must be about providing opportunity and tailored to expect and manage stumbles and hurdles along the way. Through this assistance, USDA is focusing on generating long-term stability and success for distressed borrowers.”

    In October 2022, USDA provided approximately $800 million in initial IRA assistance to more than 11,000 delinquent direct and guaranteed borrowers and approximately 2,100 borrowers who had their farms liquidated and still had remaining debt. USDA shared that it would conduct case-by-case reviews of about 1,600 complex cases for potential initial relief payments, including cases of borrowers in foreclosure or bankruptcy. These case-by-case reviews are underway.

    At the same time in October 2022, USDA announced that it anticipated payments using separate pandemic relief funding totaling roughly $66 million on over 7,000 direct loans to borrowers who used the USDA Farm Service Agency’s disaster-set-aside option during the COVID-19 pandemic. The majority of these payments have been processed and USDA anticipates it will complete all such payments in April 2023.

    New Assistance for Distressed Borrowers

    FSA intends to provide the new round of relief starting in April to additional distressed borrowers. This will include approximately $123 million in automatic financial assistance for qualifying Farm Loan Program (FLP) direct loan borrowers who meet certain criteria. Similar to the automatic payments announced in October 2022, qualifying borrowers will receive an individual letter detailing the assistance as payments are made. Distressed borrowers’ eligibility for these new categories of automatic payments will be determined based on their circumstances as of today. More information about the new categories that make up the $123 million in assistance announced today and the specific amount of assistance a distressed borrower receives can be found described in this fact sheet, IRA Section 22006: Additional Automatic Payments, Improved Procedures, and Policy Recommendations.

    To continue to make sure producers are aware of relief potentially available to them, all producers with open FLP loans will receive a letter detailing a new opportunity to receive assistance if they took certain extraordinary measures to avoid delinquency on their FLP loans, such as taking on more debt, selling property or cashing out retirement accounts. The letter will provide details on eligibility, the specific types of actions that may qualify for assistance, and the process for applying for and providing the documentation to seek that assistance.

    These steps are part of a process USDA announced along with the October payments that is focused on assisting borrowers unable to make their next scheduled installment. Earlier this year, all borrowers should have received a letter detailing the process for seeking this type of assistance even before they become delinquent. Borrowers who are within two months of their next installment may seek a cashflow analysis from FSA using a recent balance sheet and operating plan to determine their eligibility.

    Tax Resources

    USDA will continue to work with the Department of Treasury to help borrowers understand the potential tax implications from the receipt of an IRA payment, including that options may be available to potentially avoid or alleviate any tax burden incurred as a result of receiving this financial assistance.

    In early April, USDA will send a specific set of revised tax documents, educational materials and resources to borrowers that received assistance in 2022, including a link to a webinar hosted by a group of farm tax experts to provide education on the options available. USDA cannot provide tax advice and encourages borrowers to consult their own tax professional, but FSA is providing educational materials for borrowers to be aware of the options. USDA has tax-related resources available at farmers.gov/taxes.

    Improved Procedures and Policy Recommendations

    FSA is finalizing changes to its policy handbooks to remove unnecessary hurdles, improve loan making and loan servicing and provide more flexibility on how loans are structured to maximize the opportunities for borrowers.  Additional details on those changes can be found in the linked fact sheet and are the start of a broader set of process enhancements. The fact sheet also provides information on the eight, no-cost legislative proposals included in the Fiscal Year 2024 President’s Budget that are designed to improve the borrower experience.

  • BASF Ag Solutions Doubles Donation Goal to FFA, Reaching $10,000

    BASF Agricultural Solutions has exceeded its initial goal of $5,000 and raised a total of $10,000 during Give FFA Day on Thursday, February 23, 2023. Give FFA Day funds support agricultural education for Future Farmers of America (FFA). Since 2022, BASF had donated more than $550,000.

    “Together, not only did we meet our goal, but we exceeded it,” said Neil Bentley, BASF Vice President, Market Management Agricultural Solutions NA and FFA Supporters Board Member. “We raised $7,155 and with our company match, expect to surpass $10,000 for FFA. This is a huge milestone and shows how passionate BASF employees are for the industry when so many are willing to support organizations committed to leading the next generation to careers in agriculture.”

    Give FFA Day is part of an annual week-long celebration, National FFA Week, which took place from February 18 – 25. The National FFA Board of Directors designated the weeklong tradition beginning in 1948, spanning the week of George Washington’s birthday, to recognize Washington’s legacy as an agriculturist and farmer.

    A group of young farmers founded FFA in 1928, and the organization has been influencing generations that agriculture is more than planting and harvesting — it involves science, business and more. For more than 90 years, the National FFA Organization has strived to make a difference in students’ lives. Donations help FFA grow the next generation of leaders.

    The 2023 national goal for Give FFA Day was $500,000. In total, the 24 hours of support far exceeded that goal, raising $721,506 on February 23 alone – that’s nearly $1 for each member of FFA.

    About BASF’s Agricultural Solutions Division       

    Farming is fundamental to provide enough healthy and affordable food for a rapidly growing population while reducing environmental impacts. Working with partners and agricultural experts and by integrating sustainability criteria into all business decisions, we help farmers to create a positive impact on sustainable agriculture. That’s why we invest in a strong R&D pipeline, connecting innovative thinking with practical action in the field. Our portfolio comprises seeds and specifically selected plant traits, chemical and biological crop protection, solutions for soil management, plant health, pest control and digital farming. With expert teams in the lab, field, office and in production, we strive to find the right balance for success – for farmers, agriculture and future generations. In 2022, our division generated sales of €10.3 billion. For more information, please visit www.agriculture.basf.com or any of our social media channels.

    About National FFA Organization
    The National FFA Organization is a school-based national youth leadership development organization of more than 850,000 student members as part of 8,995 local FFA chapters in all 50 states, Puerto Rico and the U.S. Virgin Islands. The FFA mission is to make a positive difference in the lives of students by developing their potential for premier leadership, personal growth and career success through agricultural education. For more, visit the National FFA Organization online at FFA.org and on Facebook and Twitter.

  • Three Emerging Risks for the U.S. Farm Supply Sector

    The outlook for agricultural retailers is generally favorable for 2023 following a year of record profits in 2022. However, the sector faces an emerging set of risks that could depress profit margins and challenge traditional business models in the years ahead. Lower levels of industry working capital, higher property insurance costs, and changing grower needs are three of the key issues that ag retailers will need to navigate over the next five years.

    According to a new report from CoBank’s Knowledge Exchange, a downturn in the crop cycle—after several years of consecutive high profits—is likely during 2024 or shortly thereafter. The prospect of lower grain prices and financial pressure at the farm level, combined with the newly emerging risks, has business implications that ag retailers should begin preparing for now.

    “Grain and farm supply cooperatives delivered tremendous value to their customers over the past three years of extreme volatility in prices and economic activity stemming from COVID-19,” said Kenneth Scott Zuckerberg, lead grain, farm supply and biofuels economist for CoBank. “Unfortunately, the post-pandemic world is one that features a variety of new risks. The good news is that ag retailers and farm supply co-ops can develop risk mitigation strategies before the eventual cyclical downturn occurs.”

    Emerging Risks Flying Mostly Under the Radar

    A significant percentage of U.S. farming operations, comprised mostly of mid-sized and non-family farms, are increasingly seeking more products and services than traditional farm suppliers typically offer. This group has demonstrated a strong interest in biologicals and other specialty nutrients, as well as advice on carbon monetization and ESG compliance programs. Beyond specific product and service categories, more farmers of all types prefer to evaluate, order and mange input purchases electronically. Ag retailers that want to compete for these customers will need to adjust their business models accordingly.

    Lower levels of farmer working capital during the current upcycle suggests growers will cut back on input purchases more dramatically during the next downturn. Total farming working capital during the 2021/2022 crop cycle peak averaged $138 billion. That’s down from $215 billion during the 2012 peak. (All figures in 2023 dollars as reported by USDA.) The lower levels of working capital may be a result of strategic purchases of equipment while interest rates were at historically low levels. However, the reality is that farmers and ranchers will have less available cash to purchase inputs during the next downturn, unless they increase debt.

    Additionally, the rising cost of property insurance is an emerging risk factor that will pressure farm supply cooperatives profitability. The cost of property-casualty premiums has risen between 25% and 75% for the 2023 season, largely due to an increase in claims from natural catastrophes. Losses from extreme weather totaled $170 billion in 2022, compared to $155 billion in 2021, well above the long-term average.  Zuckerberg said farm supply operators might want to investigate alternative risk transfer mechanisms, such as a self-funded captive insurance arrangements, to address rising premium costs.

    Watch a video synopsis and read the report, Ag Retailers Prepare to Navigate 3 Emerging Risks.

    About CoBank

    CoBank is a 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 76,000 farmers, ranchers and other rural borrowers in 23 states around the country.

  • 2023 CA Antique Equipment Show™ Cancelled Due to Local Floods

    Due to local flooding and for the safety of our attendees, exhibitors, vendors, volunteers, staff, and community, the 2023 California Antique Equipment Show™ has been cancelled. Tulare County communities have experienced road closures, levee breaks, flooding, and mandatory evacuations. The International Agri-Center® grounds are on call for emergency relief and are currently unavailable for public events.

    All vendors, sponsors, and exhibitors who have paid fees to the International Agri-Center® will be issued a full refund by the end of March.

    The Gun Raffle fundraiser will continue, and the drawing date has been extended to June 1, 2023. For raffle details and how to buy a ticket, visit www.antiquefarmshow.org/gun-raffle.

    The next California Antique Equipment Show™ is scheduled for April 19-21, 2024. For more show information, please visit www.antiquefarmshow.org.

    To support farmers affected by flooding, the Tulare County Farm Bureau recommends donating to the following organizations:

    The International Agri-Center® is home to the AgVentures!® Learning Center and Museum, World Ag Expo®, the California Antique Equipment Show™, the Tulare Backyard Brew Fest, and has a wide range of facility rentals available for any size event. Learn more at www.internationalagricenter.org.