Agricultural Business Council Celebrates A Career Well Done

Photo by Greg Tammen, Kansas State University Olathe

For someone who claimed he didn’t know the meaning of the word “laconic” [brief and to the point], Senator Pat Roberts offered a master class on the use of it in his talk to Council members at a special luncheon honoring his 40-year career in the U.S. House of Representatives and the U.S. Senate. The event took place October 15 at Kansas State University Olathe, and featured comments from both Kansas Governor Laura Kelly and Attorney General Derek Schmidt. 

Gov. Kelly introduced Sen. Roberts as a “rabid Wildcat, a natural standup comedian and a revered statesman who became [for her] a role model, a mentor and an advisor.” In closing, she thanked Sen. Roberts for “finally retiring” so she could “publically recognize” him for all that he did “behind the scenes” to get things done. The Governor described the Senator as a “true public servant and a Kansas treasure.” 

Among the many reflections he noted from his career, Sen. Roberts’ lamented how the senate is at odds. “Senators used to spend more time together,” he said, adding that they used to vote “as people,” not a necessarily a political block. He mentioned that his first encounter with Sen. Pat Leahy did not get off on a good start. Since then he and the Senator from Vermont have become “best friends.”

Among some of his laconic observations, Sen. Roberts remarked that “doing away with the filibuster is non-sense.” He related a recent interview with regional political broadcaster Mike Mahoney: “As usual, he cut me off.” He also warned that the country “is getting close to a monarchy,” but suggested the “pendulum will swing back.” The Senator struck a more serious note when he said there are no self-made men. “It’s your friends who make you who you are.”

Sen. Roberts, a graduate of Kansas State University, served eight terms in the U.S. House of Representatives from 1981 to 1997.He served as a First Lieutenant in the U.S. Marine Corps and worked as a newspaper reporter before entering politics in the late 1960s. He was elected to the U.S. House of Representatives in 1980 to succeed 1st District Congressman Keith Sebelius, for whom he had worked. He served eight terms in the House, including one as chairman of the House Agriculture Committee. Sen. Roberts was first elected to the U.S. Senate in 1996. On the Intelligence Committee, he was responsible for an investigation into the intelligence failures prior to the 2003 invasion of Iraq. He led Kansas' congressional delegation and chaired the Senate Agriculture, Nutrition and Forestry Committee. Sen. Roberts is the first person to chair both the House and the Senate agriculture committees. On January 4, 2019, Roberts announced that he would not seek reelection in 2020.

Digging Deeper...

Cyber hackers will be a menace to U.S. economic and national security for the foreseeable future. Ransomware attacks could be a daily occurrence in five years, warned Army General Paul Nakasone, director of the National Security Agency, at a conference earlier this month in Washington, D.C. That’s why he and his top brass at the U.S. Cyber Command have launched a “surge” operation against ransomware enemies. The strategy is to discover and understand the methods ransomware warriors use so businesses, hospitals, schools, governments and individuals can initiate tactics to pursue, capture and neutralize the hackers. In his remarks at the symposium hosted by cybersecurity firm Mandiant, Gen. Nakasone referred to hacks perpetrated on Colonial Pipeline and JBS last spring that disrupted fuel and food supply chains. “Ransomware,” he declared, “is a national security issue.”  Dennis McLaughlin, McLaughlin Writers LLC – Sources: Sophos Group PLC, Abington, England, “Whitepaper May 2021” (available at www.sophos.com); Mandiant, Alexandria, Virginia; Wall Street Journal, September 7, 9, 2021; Vanson Bourne Research, U.K.; Tom Bienkowski, RSS Feed, May 24, 2021.

Hackers Beware

October is National Cyber Security Awareness Month. It was established in 2004 by the National Cyber Security Division of the Department of Homeland Security and the nonprofit National Cyber Security Alliance.  But, hundreds of corporations, cities, public utilities, hospitals, among other organizations, have been well-acquainted with ransomware attacks for quite some time. And this year’s high profile hacks of Colonial Pipeline and food processing giant JBS made the general population even more aware of damage ransomware causes – especially when it’s their energy needs and food supply in the crosshairs.  

But how do you really measure that level of awareness? Well, you can start with the general ledgers of corporations. Their executives and board of directors have increased spending this year on cybersecurity.  At the same time, companies that provide cybersecurity systems and highly-skilled professionals are seeing a heavy rush of cash from venture capitalists.  Investors have plowed $12.2 billion into worldwide cybersecurity startups and established businesses so far this year, according to Prequin, Inc., a global assets data analyst. That’s over $2 billion more than 2020 as a whole.

Some of the biggest beneficiaries from the influx of investment capital could be the cybersecurity specialists themselves.  Chief information security officers (CISOs), senior-level executives within an organization who are responsible for protecting the company’s  information assets, are earning a median annual salary of $509,000 this year, up from $473,000 in 2020, says executive search firm Heidrick & Struggles  International.  Cyber insurance brokers aren’t doing badly, either. According to management broker Marsh, the year-over-year increase on average U.S. cyber insurance rates in the second quarter rose 56%. Marsh attributes the increase largely to a boom in ransomware attacks on businesses.

More Work To Be Done

Increased investment and budgeting for cybersecurity notwithstanding, there are still challenges facing U.S industry and institutions. Mandiant, based in Alexandria, Virginia, estimates that nearly half a million cyber security jobs remain open. There are not enough trained cybersecurity technicians and experts to fill them. At the same time, as cyber security positions remain unfilled, cyber criminals are honing their own skills and developing advanced, unpredictable hacking tactics, techniques and procedures.  

To keep pace with ransom warriors, U.S. companies and organizations need to implement strategies that involve training their security teams to develop and improve problem-solving and critical thinking aptitudes. Efforts toward that end are underway. Initiatives include a task force formed by the Justice Department and an executive order from President Joe Biden directing federal agencies and contractors to overhaul their cyber defenses. In September, the Treasury Department issued sanctions against a Russian-operated cryptocurrency exchange, which it accused of facilitating ransom payments to cybercriminals. In late September the Biden Team announced the U.S. will convene a summit of 30 nations before year’s end to discuss how international cooperation can mitigate the impact of cybercrime. 

During the Mandiant conference, Deputy National Security Advisor Anne Neuberger explained the upcoming 30-nation summit will focus on setting international norms for cyber activities, financial regulation for cryptocurrencies, law-enforcement partnerships and building resilience against cyberattacks, she said. “One of the things that we really want to accomplish together in cybersecurity,” she said, “is to be fighting different fights in six months [to] a year.” 

A New Kind Of Villain

In order to be fighting a different fight the action has to be proactive. Kellen Dwyer, a former U.S. Department of Justice attorney involved in several cyber and national security activities, said in a Wall Street Journal piece (September 7, 2021), “Whenever the Justice Department has confronted a new and sophisticated criminal threat, it has focused its resources on proactive rather than reactive investigations and reorganized itself accordingly.”   

Dwyer previously served in the Justice Department in several cyber and national security roles. As an assistant U.S. attorney in the Eastern District of Virginia, he obtained a computer hacking indictment against Julian Assange and represented the United States at Assange’s extradition hearings in London. He received the Attorney General’s Award for the trial of a Russian hacker who helped develop malware used in one of the largest data breaches in U.S. history. Kellen also prosecuted Aleksey Burkov, a Russian hacker whose arrest in Israel triggered a high-profile tug-of-war between the U.S. and Russia.

“Proactive investigations,” Dwyer wrote, “start with known or suspected criminals and seek proof of specific crimes they may have committed, as well as intelligence on the criminal apparatus that supports them, such as who supplies them with necessary tools and contraband, how they communicate and how they move their money.”

A successful ransomware attack requires three critical components, according to Kellen Dwyer: 

• Access to compromised computers

• Malware to remotely encrypt the victim’s data 

• Means to receive and launder ransom payments. 

Cybercriminals who specialize in each of these areas abound. And they are apt to convene cybercrime forums that bring all of these elements together. Indeed, ransomware gangs typically don’t breach computer systems themselves. They create the malware needed for such attacks and lease it to low-skilled “affiliates” in exchange for a percentage of the take. 

Contrary to popular stereotype, ransomware attacks are not necessarily committed by lone wolves with exceptional computer savvy. “In reality,” Dwyer says, “most hackers don’t have the technical sophistication to create malicious tools that are essential to their trade.”  They rely on enterprises known as ‘cybercrime-as-a-service’ (CaaS) organizations. The CaaS business model includes malware developers, hackers and shady staffers involved in promoting, selling and distributing hacking tools and services on the dark web. 

The ominously sounding dark web is indeed shadowy, and is part of the internet housing hidden sites that can’t be visited through conventional web browsers. Sites on the dark web use encryption software so visitors and owners can remain anonymous and their locations unknown. It is home to illegal activity such as prohibited drug and gun sales, illicit pornography and stolen credit card and Social Security numbers. 

But for the record, not all that takes place on the dark web is sinister, malevolent or menacing.  Dissidents fearing political prosecution from their government might use the dark web to communicate with each other. For the sake of ultimate privacy, an individual might seek medical advice while remaining unidentified. Journalists might use the dark web to keep sources anonymous. 

Good Guys Take The Gloves Off

Like criminal organizations in the physical world, however, cybercrime organizations can be infiltrated. Law enforcement can learn where an organization meets, how it communicates and where it stores information. It can place undercover agents in the organization or arrest members and persuade them to inform on others. Members of cybercrime organizations who cannot be tied to particular hacks can be targeted for “sting” operations or charged with conspiracy.

An increase in proactive investigations into CasS organizations could cripple the ecosystem that enables ransomware. Indeed, fewer than 10 strains of ransomware were responsible for most of the attacks committed in the past six years, and just five cryptocurrency exchanges received 82% of funds extorted by ransomware, according to blockchain analysis firm Chainalysis Inc.  

Such investigations also could yield valuable intelligence. If investigators arrest malware developers, they are likely to learn about their hacker-clients. If a cryptocurrency exchange that caters to criminals is taken down, investigators will find leads on ransomware gangs that used its services. This sort of intelligence building pays dividends, says Dwyer. “When an attack happens, you know where to look and, ideally, already have gathered evidence on the suspects.”

To pursue a proactive approach, investigators will have to add cyber prosecutors and agents and give them the resources to conduct long-term investigations. They could be organized into “strike forces” focused on particular regions of the world in much the same way the Organized Crime Drug Enforcement Task Forces have prosecutor-led strike forces that conduct intelligence-driven, multi-jurisdiction investigations into priority targets and their affiliate financial networks.

But the real battle for cybersecurity should be fought in the confines of all companies and organizations. Security and business continuity planning should be ingrained in every enterprise’s corporate culture. This planning should include a cyberattack response plan and other “war-gaming” activities. In addition to creating a rapid response plan, reporter Tom Bienkowski in a May 24, 2021, release from RSS Feed says, “It is advisable to conduct extensive employee training to stand as a line of defense against cyberattacks. Good cybersecurity practices must be reinforced across all functions of every organization. Leadership should set an example, demonstrating a commitment to security that sets a tone for the business.”

Beware of 10 Types Of Hackers

Hackers are computer savvy people with bad intentions. That’s how India-based JigSaw Academy, a data science institute, sees them. But they’re not all cut from the same cloth – or wear the same hat.  In March 2021, the Academy published an article by cyber data specialist and computer engineer Ajay Sarangam who catalogued ten types of hackers. Here is a synopsis of his profiles: 

1. White Hat Hackers – known as ‘ethical hackers,’ they are professionals with expertise in cybersecurity who work with governments and organizations to hack their computer systems to discover loopholes and weaknesses, and build better firewalls to lower or eliminate ransomware attacks and other intrusions.

2. Black Hat Hackers hack into organizations’ networks to steal bank data, funds or sensitive information. They use the stolen resources for their own profit, selling them on the black market or to harass their target for ransoms.

3. Gray Hat Hackers are not out to rob targets or help people and institutions. They could be considered sport hackers; they enjoy experimenting with systems to find loopholes, crack defenses and have fun. 

4. Script Kiddies are juvenile amateurs using ‘scripts’ from other hackers. Their motivation is attention. Standard Kiddie Script attacks are Denial of Service (DoS) and Distributed Denial of Service (DDoS), during which they flood an IP address with so much traffic the site collapses. Such attacks might occur on Black Friday shopping websites.

5. Green Hat Hackers – are learning the ropes of ransomware attacks with the intention of profiting from it; they welcome opportunities to learn from experienced hackers.

6. Blue Hat Hackers – want to learn the trade not for profit, but rather to gain popularity or settle scores with rivals. 

7. Red Hat Hackers – focus on stopping black hat hacker attacks. They can be quite ruthless when counteracting black hat malware.

   These seven types of hackers, described above, are broadly referred to in the cybersecurity world, notes Ajay Sarangam. The three types, below, he says, work in different capacities. 

8. State/Nation Sponsored Hackers – attempt to acquire information about other countries to protect national interests and/or to help ward off aggressive actions.

9. Hacktivists – target government websites and networks to obtain data in government files for personal or social gain.

10. Whisleblowers –are individuals working in an organization who attempt to expose the organization’s confidential information possibly because of a personal grudge or to bring to light illegal activities within the organization.

Who Got Hacked, Who Paid, Who’s Next

Earlier this year (in January and February), Sophos Group PLC, a security software and hardware company based in the U.K., commissioned independent British research firm Vanson Bourne to survey 5,400 IT decision makers across 30 countries to learn more about their actual encounters with hackers and ransomware attacks. And how they dealt with them. Sophos develops products for communication endpoint, encryption, network security, email security, mobile security and unified threat management. 

Here are some key findings that emerged from the survey:

What Industries and Groups Were Targeted in 2020?

Percentage of Respondents 

• Retail - 44% 

• Education - 44%

• Business & professional services - 42%

• Central government & NDPB - 40%

• IT, technology & telecoms - 37%

• Manufacturing & production - 36%

• Energy, oil/gas & utilities - 36%

• Healthcare - 34%

• Local government - 34%

• Financial services - 34%

• Media, leisure & entertainment - 32% 

• Construction & property - 31%

• Distribution & transport - 25% 

What Industries and Groups Paid Ransom?

Percentage of Respondents 

• Energy, oil/gas & utilities - 43%

• Local government - 42%

• Education - 35%

• Healthcare - 34%

• IT, technology & telecoms - 32%

• Business & professional services - 32%

• Retail - 32%

• Construction & property - 28%

• Financial services - 25%

• Manufacturing & production - 19%

What Industries and Groups Expect a Ransomware Attack?

Percentage of Respondents  

An average of almost half of the respondents surveyed said they expected or wouldn’t be surprised if their company or organization were with hit with a ransomware attack in the near future. They cited the growing sophistication of hacking technology as the reason for their concern.

• Manufacturing and production - 60%

• Healthcare - 55%

• Central government and NDPB - 54%

• Construction and property - 51%

• Energy, oil/gas and utilities - 51%

• Financial services - 47%

• Retail - 47%

• Distribution and transport - 46%

• Education - 46%

• IT, technology and telecoms - 46%

• Local government - 43%

• Business and professional services - 40%

• Media, leisure and entertainment - 40%

Special Report: Investors See Opportunity in Agriculture

Last February during the Agricultural Business Council’s 2021 Ag Innovation Forum, Kerryann Kocher, co-founder and CEO of Kansas City-based Vytelle, said there had been a “rapid explosion of companies” looking at agriculture as an opportunity to invest. She pointed to an inflow of “coastal money” descending on the farm belt and described coastal investors as “experienced and serious” about the ag business. 

Fast forward to September, and Vytelle – an innovator of in-vitro livestock fertilization technology – this week announced it has been on the receiving end of a round of Series A funding worth $13.2 million. According to the Kansas City Business Journal (September 29, 2021), investors included Open Prairie Rural Opportunity Fund, Ag-Tech VC and Fulcrum Global  The round was co-led by Open Prairie through the Open Prairie Rural Opportunities Fund, Ag-tech VC and Fulcrum Global Capital. Also participating in the round were local investors Innovation In Motion and KCRise Fund, as well as Serra Ventures and existing investor, UK-based Wheatsheaf Group. 

“It’s a really big milestone for us as a company,” Kocher told the Business Journal. “We’re really looking to expand and are excited about the validation and the commitment from our investors to do just that.”

Vytelle has a staff of 90 people working as lab technicians, veterinarians and specialists in data science, bioinformatics and quantitative genetics. The company hopes to add 20 more employees in finance and recruitment roles. In the last four years Vytelle has earned 20% of the IVF embryos market in the U.S. It also has customers in 21 countries. 

“The precision livestock company developed an integrated technology platform that uses breakthrough IVF technology as well as an animal performance data capture system and an artificial intelligence-based genetic analytics engine,” reported the Business Journal.  “Vytelle can help cattle producers accurately identify the elite performing animals with the best genetic traits to pass on, and it uses a non-hormone IVF approach, which eliminates the need for additional labor.”

Much of this round of Series A funding will be used to add 15 more labs where embryos for cattle farmers will be produced. The money also will be used to enhance the company’s AI analytics tools. In the next five years, its goal is to secure 25% of the embryo global market share.

Special Report: Despite Pandemic-Caused Disruptions to the Cattle and Beef Industries, It Could Be Business-as-Usual Down the Road

Kansas State University agricultural economists say that short-term disruptions in the fed cattle and beef industries have not changed longer-term motivations for how buyers and sellers establish prices for cattle. They have finished an exhaustive review of price discovery in the fed cattle and beef industry over the past 20 years, which not only explains current ways of doing business, but also where cattle markets may be headed in the future.

 “We recognize COVID and the constraints it imposed on the beef industry; labor constraints and packer capacity became a major concern,” said Ted Schroeder, a livestock economist with K-State Research and Extension. “The ability to move cattle through a constrained packing system was an issue and something we need to stay aware of.”

But the global pandemic – as well as a 2019 fire at a packing plant in Holcomb, Kan. and a cyber-attack in late May on the world’s largest meat supplier – are “black swan events,” according to Schroeder.

“We can’t predict those events. We have to deal with them as they occur and we have to manage through them and build systems that are going to be resilient to such events. They have not altered longer term opportunities for the beef industry and must not deter progress made in improved supply chain alignment.”

Schroeder and colleagues Brian Coffey and Glynn Tonsor have published a study in which they note factors that have transformed the fed cattle and beef industry over 20 years, factors that have contributed to resilience.

The full study, ‘Effective and Efficient Cattle and Beef Market Alignment: Price and Value Discovery, Divergent Incentives, Risk Management and Future Prospects,’ is available online. The complete report from K-State’s Department of Agricultural Economics is available online at https://agmanager.info.

Latest News & Updates in KC Agriculture - September 2021

Developments 

Merck Animal Health has announced the release of a new podcast series called Driven By Prevention. The series will explore some of the swine industry’s biggest issues and trends, and address important topics including immunology, vaccinology, influenza and management practices with swine industry leaders and influencers. Each episode is from the Merck Animal Health Science Talks webinar series hosted by The National Hog Farmer. The series also will include new content featuring swine industry experts. New episodes will be released every two weeks and can be found on all major podcast platforms, including Spotify, Google Podcast, RadioPublic, Breaker and Anchor. To listen to the series, click here. Learn more here.

In a late August press conference at the Missouri State Fair hosted by the Missouri Farm Bureau, Governor Mike Parson announced plans to deploy more than $400 million in American Rescue Plan Act (ARPA) funds to increase broadband internet access, adoption, and assistance statewide. In addition to the $400 million plan, the Department of Economic Development also submitted an application to the U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) Broadband Infrastructure Program requesting an additional $56 million for broadband deployment. If approved by NTIA, this funding could support up to 19 projects, connecting more than 17,000 households, businesses, and other institutions.

National Farmers Union vice president Patty Edelburg recently provided remarks during a public stakeholder meeting hosted by the EPA and the Army Corps of Engineers regarding the agencies’ intention to revise the definition of “waters of the United States” (WOTUS) under the Clean Water Act (CWA): “As the Army Corps of Engineers and the EPA start writing rules to achieve sound environmental goals, we also ask that you consider the needs farmers and ranchers have for those rules to be clear, easy to interpret, and economically practical. We also strongly encourage the agencies to continue to conduct outreach, to listen carefully to the concerns of farmers and ranchers, and to understand the unique challenges they face on their land.” 

On September 1, Kansas City, Missouri, pledged to start replacing city fleet vehicles with electric cars, trucks and buses as their gas-powered counterparts age out. City manager Brian Platt approved a new policy stating that "all new municipal fleet vehicles shall be zero emission battery electric vehicles (BEVs) where available and if a suitable option exists." The city's fleet currently consists of around 3,500 vehicles, ranging from sedans and SUVs to busses and firetrucks. KCMO has already purchased several electric cars. Earlier this year the city also purchased two electric busses. City leaders noted electric vehicles have dropped in price significantly in the past few years, enough to justify the purchase. Mayor Quinton Lucas said it was important for Kansas City to make lowering carbon emissions a priority." 

The Missouri Department of Agriculture announced that funding for the Urban Agriculture Matching Grant Funding Program will award grants of up to $10,000 for reimbursement of expenses associated with urban agriculture. Eligible projects include urban agricultural projects that introduce a new crop or product to an area, expand the use of an agricultural product or add value to agricultural products. For more information about grant opportunities available through the Missouri Department of Agriculture, visit the Department at  www.agriculture.Mo.Gov. 

The Missouri Agricultural and Small Business Development Authority introduced the Biofuel Infrastructure Incentive Program to increase the distribution and use of biofuels in the state of Missouri. Funds will be awarded to fuel retailers, fuel distributors, terminal companies or fleet operations that dispense, or will soon store or dispense, ethanol blends of E15 or higher or biodiesel blends of B6 or higher. Applications are due Oct. 29, 2021, and projects receiving funds will be notified no later than Nov. 30, 2021. The maximum award per category (ethanol or biodiesel) to any single entity is 50% of eligible costs, or $250,000, whichever is less.

The National Pork Producers Council and American Farm Bureau Federation have entered a petition to the Supreme Court of the U.S. to review the decision from the U.S. Court of Appeals for the Ninth District regarding California’s Proposition 12, the state’s animal housing law. NPPC and AFBF are disputing the Ninth Court’s finding that Prop 12 does not violate the “dormant Commerce Clause” that mandates housing requirements for pork produced outside California (and then shipped to into the state).  According to Cornell Law School’s Legal Information Institute, the dormant Commerce Clause “refers to the prohibition, implicit in the Commerce Clause, against states passing legislation that discriminates against or excessively burdens interstate commerce.” (Reported by Agri-Pulse Communications, September 28, 2021).   The petition, reported Agri-Pulse, says the law “substantially burdens interstate commerce.” It also noted that California residents consume 13% of the nation’s pork, while 99.9% of pork sold in the state comes from sows raised out-of-state. “A previous attempt to get the issue before the court failed in June, said Agri-Pulse, when the court turned down a petition filed in a separate case by the North American Meat Institute.

Ohio-based Midmark Corporation, a clinical environmental point-of-care design firm in the animal health space has acquired Shor-Line, a 74-year-old manufacturer of animal cages and veterinary tables.  Shor-Line, which is headquartered in Kansas City, Kansas, and is officially named Schroer Manufacturing Co., also specializes in scales, surgery tables, anesthesia machines and lights. According to Midmark, Shor-Line has “a long history of customer service, innovation and high-quality equipment.

Kansas native Eric Stonestreet, former pig farmer and Emmy Award-winning actor, is redefining commonly misunderstood phrases as they relate to modern pig farming. In a new Rural Dictionary series of five new videos released by the Pork Checkoff, Stonestreet says: “Modern pig farmers embrace new technology every day with apps that control barn climate. They use cleaning robots, AI, and they're even developing facial recognition with the intention of raising healthy animals.” True to form, Stonestreet uses humor to drive home important truths about modern pig farming in a way that people can relate to and understand. Watch Rural Dictionary at https://pork.org.

People

Kansas Corn recently spotlighted KaCee James, an agriculture education teacher at Jayhawk-Linn High School, for the roles she has in the Kansas Corn STEM program. She has participated in the program as a Lesson Author and a member of the Teacher Advisory Board. James is an enthusiastic supporter of Kansas Corn STEM curricula that cover numerous content areas, all while being tied to corn.  She has started her 13th year of teaching the science and art of agriculture and food production.

The American Sugar Alliance promoted Robert Johansson to director of economics and policy analysis. Johansson joined ASA in January 2021 as the associate director of economics and policy analysis. Before joining ASA, Johansson served as the chief economist at the Department of Agriculture.

Brian Reuwee has joined the team at Rabo AgriFinance as senior vice president of marketing and communications. Reuwee previously was vice president at Fleishman Hillard in St. Louis. 

Mitch Baker has joined Kansas U.S. Representative Tracey Mann’s staff as a legislative assistant armed forces, national security, foreign trade, international finance, veterans and international affairs. Baker previously worked for Sen. James Lankford, R-Okla., as a legislative correspondent. Before that, he worked at USDA under the Trump Administration in the office of partnerships and public engagement. 

Katherine Thomas has joined Senator Ben Sasse’s staff as legislative assistant covering the agriculture and food, commerce and foreign trade issues. Thomas previously worked for Rep. Tracey Mann, as the deputy legislative director and for Senator Pat Roberts on the Senate Ag Committee 

Kylie Bohman is working for Senator Josh Hawley as a legislative correspondent, working on the agriculture and energy portfolio.

Senn Boswell is a legislative aide in the office of Senator Roy Blunt.  He will be involved in immigration, labor and employment, and small business portfolio issues.

Former U.S. Trade Representative Robert Lighthizer has joined the recently formed research group America First Policy Institute. He will be the chairman of the Center for American Trade. Source: Agri-Pulse Communications.

Events 

Farm Journal’s MILK Business Conference, the only event that focuses exclusively on every business aspect of dairy operations, is set for November 30 through December 2, 2021, at the Paris Hotel in Las Vegas. The event will offer educational and networking opportunities for dairy industry leaders, live and in person, and will take place prior to the start of the National Finals Rodeo. The MILK Business Conference agenda highlights include: Five Mega Trends in 2022 and Beyond; How to Become the Employer of Choice; Turning Manure into Money; an expert session on mental health; a traceability session on beef and dairy. “We are thrilled to be hosting the MILK Business Conference in person in Las Vegas this November,” said Cliff Becker, senior vice president of livestock for Farm Journal. “A dairy’s greatest asset in 2035,” he added, “might not be their cows. Register and attend to find out what it will be.”  Click here for more information.

Kansas City Southern will release its third quarter 2021 financial results on Tuesday, October 19, 2021, before the opening of trading on the New York Stock Exchange. KCS will also hold its third quarter 2021 earnings conference call on Tuesday, October 19, 2021 at 8:45 a.m. eastern time. Shareholders and other interested parties are invited to participate via live webcast or telephone. To participate in the live webcast and to view accompanying presentation materials, log onto www.Investors.kcsouthern.com immediately prior to the presentation. To join the teleconference, call (844) 308-6428 from the U.S., or (412) 317-5409 from all other countries.

The Kansas Beef Council is hosting a Beef Insights webinar on October 6. The program will feature NCBA Executive Director of Nutrition Research Shalene McNeill. During the presentation, McNeill will discuss new research on the benefits of eating beef and why some consumers choose to include it in their diet, while others limit their intake. She also will highlight the checkoff’s efforts to reach physicians and nutrition experts and provide an update on the work being done to keep beef at the center of the plate for consumers. The webinar is free and will be held from noon to 1:00 p.m. Registration is required to participate.

Kansas grain commodity groups will host the Kansas Commodity Tailgate 2021 gathering before the K-State vs Iowa State football game on October 16, 2021. It will take place at the IGP Institute, 1980 Kimball Avenue, Manhattan. IGP will provide a fall outlook session at the tailgate. Registration is available here. The event starts three hours before kickoff.

Missouri and Kansas produce growers can enroll in free workshops to meet training requirements of the Food Safety Modernization Act Produce Safety Rule. Both in-person and online workshops are scheduled for the next several months. FSMA includes standards related to water quality, use of manure and compost, and worker health and hygiene, says Londa Nwadike, food safety specialist with University of Missouri Extension and Kansas State Research and Extension. The standards are intended to reduce the risk of contamination from E. coli, Listeria, Salmonella and other disease-causing microbes. For more information and registration, visit their website or contact Londa Nwadike at 816-482-5850.

The Missouri Governor’s Conference on Agriculture is coming back to Tan-Tar-A Resort in Osage Beach, Missouri, this fall for its 49th celebration of agriculture.  Missouri Department of Agriculture has set the conference dates for November 18-19, 2021. Missouri farmers, ranchers, agribusiness leaders and aspiring agriculturalists are invited to enjoy the packed program that will include a commodity outlook, Missouri Agriculture Awards luncheon and nationally-recognized speaker line-up. More information is available at www.agriculture.mo.gov.

Registration is open for the 2021 Kansas Livestock Convention, which will be held December 1-3 in Wichita. The Wichita Hyatt, which is convention headquarters, is sold out. However, rooms still can be reserved at the Drury Plaza Hotel Broadview at (800) 325-0720 (group number 2431364) and Fairfield Inn & Suites Downtown at (316) 201-1400. Be sure to tell the hotel you’re with KLA to receive the convention room rate. Learn more here.

Registration is now available for the 2021 Missouri Conservation Partners Roundtable virtual event, October 13-14. This link will take you to the conference website where you can watch a short video introduction, check out the schedule and register for this free virtual event here. The program explores various definitions, connections and relationships with nature and the outdoors that can influence wellness, one-health, and agency relevancy. See the conference website for a full description. Contact Amy Buechler with any questions: amy.buechler@mdc.mo.gov

Agriculture Strives for Sustainable Production Growth

At the UN’s Food Systems Summit next week, the United States will be advancing a new coalition to help elevate sustainable productivity growth as a strategic action priority, said USDA Secretary Tom Vilsack. He was speaking at the annual Ag Outlook Forum in Kansas City, Monday, September 20, presented by the Agricultural Business Council of Kansas City and Washington, D.C.-based Agri-Pulse Communications. “We can’t let our European friends have just one strategy,” Sec. Vilsack pointed out. 

USDA maintains that countries together must get behind action for productivity growth that advances social, economic, and environmental objectives. A new Coalition of Action for Sustainable Productivity Growth for Food Security and Resource Conservation is one way to do that. “It’s not a simple thing,” Vilsack noted, adding that the U.S. “must have a leadership position.” Among other remarks, Sec. Vilsack said agriculture exports to China were running at a record pace, not seen since 2014. Experts are forecasting record trade activity for 2022 – even though China has not met all of its commitments in the 2020 China Phase One Trade Agreement. 

U.S. Senator Jerry Moran opened the Forum stressing that ag matters, and asked attendees to think about how different the country would be without the Heartland and Midwest to keep coastal cultures and attitudes on an even keel. He expressed some dismay that ample grain and foodstuff that “a hungry world could use” remains stockpiled.  He also noted that while most of the news focuses on staff vacancies at Kansas City-based ERS and NIFA, the two USDA agencies continue to allocate millions of dollars for research and development in animal health and agricultural science.

Tim Bettington, Zoetis’ executive vice president and president of U.S. Operations and Global Customer Experience, said when NBAF in Manhattan, Kansas, is certified and up and running its impact will extend far beyond the local economy – though it should be a $3.5 billion boost. NBAF’s capabilities will expand. People tend to key on diseases like African Swine Fever and Hoof & Mouth, he noted. “But there are more than 200 known types of zoonoses; this is a huge step forward.”

Bettington offered numerous observations about agriculture going forward. Methane emission is the next wave of livestock innovation and technology will contribute to reductions – not herd reduction or change in meat consumption habits. Feed innovation will contribute to gut health and less methane emission. Companies will partner with each other and collaborate with universities. As for plant-based food, Bettington commented that while distributors and retail food outlets said new introductions of such products draw interest, re-order rates are low.    

Luncheon speaker Ben Fargher, managing director, sustainability for Cargill Agricultural Supply Chain North America, said more people outside the ag industry are beginning to acknowledge that agriculture is part of the solution to developing sustainable systems for farming and raising livestock. “All sectors of agriculture are where the action is.”

Ag Economy

Sara Wyant, founder and editor-in-chief, Agri-Pulse Communications, moderated a panel of ag industry economists who offered insights on the agriculture economy going into the next couple of years. 

Soy oil demand is strong, spurred by California’s low-carbon fuel standard, Seth Meyer, chief economist, USDA, said. But that demand is causing problems for food companies that depend on vegetable oils. “Renewable diesel plants are being built by big petroleum companies who will put those plants, if not inside the gate of the refinery, next to the refinery,” Meyer said. Scott Gerlt, economist, American Soybean Association, said demand for renewable diesel will continue to grow but won’t meet the 7 billion gallons of production capacity that had been anticipated, which is more than California needs.

 Jackson Takach, chief economist at Farmer Mac, talked about interest rates “which are the lowest in history” and farm real estate “which is a hot commodity.” He noted that the financial outlook for farmers could be stabilizing as low interest rates help those who have to make capital expenditures. Takach also pointed out that “inflation is still hanging around.” And what the Fed “is going to do” remains to be seen.

Lower production and higher prices could define the immediate future of the livestock market, noted Katelyn McCullock, director and senior agricultural economist, Livestock Marketing Information Center.  Long term drivers of the livestock market, she said, could be influenced by labor shortages, slaughter capacity and climate-related regulation. 

New Markets

Long-time director and former officer of the Missouri Farm Bureau Blake Hurst moderated a panel discussing new markets. Tim Lust, CEO, National Sorghum Producers, described the sorghum business as one that nobody knew about, and nobody cared about. But demand from aviation fuel makers and alcohol beverage distillers has boosted the fortunes of the crop. “Exports are the elephant in the room,” he said. “Biofuels have been our staple.” China has already bought 26% of the crop to produce baijiu, a cultural drink made with alcohol infused with herbs, spices, fruits, and other ingredients.

Rick McNary, founder of Shop Kansas Farms, described a new kind of “food insecurity” – people who had the money to buy food, but couldn’t find it during the pandemic. He has created a rural grocery initiative that encourages farmers to market their meats online. Laura Wood Peterson, principal, LWP Consulting, provided an overview for how farmers can improve profitability as they participate in new carbon markets and adopt more sustainable practices.

Digging Deeper...

Investors have poured $11 billion into autonomous or driverless trucks in the last two and a half years, according to Seattle-based PitchBook, a data research company. Recently, several companies building self-driving trucks have gone public or announced their intention to do so. On August 15, CBS  60 Minutes aired its fifth feature on the topic in five years. Driverless trucks are being programmed to get from a distribution center to an Interstate to an off ramp where more conventional drayage will carry  goods and products over last mile to their final address. Ocean-going container ships are looking to service the last mile, as well, by acquiring freight forwarding and customs house brokerage companies.  Dennis McLaughlin, McLaughlin Writers LLC – Sources: Wall Street Journal editions August  2021; PitchBook, Seattle, WA; CBS “60 Minutes,” August 15, 2021; Statistica, Hamberg, Germany; Alberto Cavallo, Harvard Business School; Material Handling & Logistics, web-based magazine, Australia’ Supply and Demand Chain Executive; Digital Commerce 360, Chicago; Supply and Demand Chain Executive, Fort Atkinson, WI.

The Last Mile

Who’s Behind The Wheel? 

They’re not quite around the corner yet, but they’re not too far down the road. Self-driving trucks will likely hit the road before autonomous cars. Such an advance in automotive technology is all the more important because it comes at a time when over-the-road drivers are in short supply. The occupation just doesn’t seem to have the lure it once had of wide-open roads, independence and a campy counter-culture with its own CB-radio jargon, plaid shirts and logo caps. So freight companies, big-box retailers and shippers of all kinds of cargo are eager to get autonomous rigs on the road. The possibility of mitigating existing driver shortages – about 61,000 – while at the same time eliminating those salaries, has caught the attention of C-suite executives.

Other factors argue the case for driver-less trucks hitting the road first. Highways are ideal for 18-wheel AI truck operations; they’re wide, smooth and traffic is more predictable, with fewer stops and obstacles.  The business case is also strong.  The American Trucking Association said shippers paid $791 billion to move goods by truck in 2019.  Automotive engineers say autonomous trucking will significantly lower logistics and transportation costs, saving a lot of money. Embark Trucks, Inc., San Mateo, California, estimates its self-driving technology (which it hopes to sell to fleet operators as a subscription) will save 80 cents per mile, cutting costs in half, compared to human-driven trucks.

But who’s really behind the wheel of driverless trucks? Short answer: Capitalism and private sector investment. Recent investor enthusiasm reflects the importance of logistics in dealing with pandemic-related disruptions, including traffic jams at ports and driver shortages that have led to shipping delays. “It’s the Amazon effect [see more below], where everyone got comfortable getting everything delivered with the click of a button,” says Jim Scheinman, of Maven Ventures, which has invested in Embark.

Investors have poured $11 billion into autonomous truck startups in the past two and a half years. More telling is that $5 billion of that amount was raised in just the first five months of this year alone, according to Seattle-based PitchBook.  Investor enthusiasm for autonomous trucks is based on a more lucrative reality: Driverless trucks are expected to return larger profits. They will participate in a $800 billion market of moving goods. Driverless truck developers reason that if their technology lowers the cost of shipping, their cut of the savings will be staggering. By contrast, autonomous cars likely will debut in the ride-hail vehicle market valued at only $35 billion annually.  

Aurora Innovation, Inc., based in Pittsburgh, Pennsylvania and Mountain View, California, recently  announced plans to go public, joining a convoy of other autonomous truck startups, including Embark Trucks, Plus and TuSimple. These groundbreakers are working with big-name shippers like Hewlett-Packard, ABInBev (Anheuser-Busch) and carriers like UPS, Navistar, Paccar and Volvo. Players in the autonomous trucking space are somewhat mum regarding a rollout timetable, but 2023 or 2024 are reasonable target dates. Some, however, think driverless trucks will be operating by the end of 2021 and for sure in 2022.

Truckers themselves are obviously less enthusiastic than their bosses.  “Automated trucking threatens to jack-knife an entire $800 billion industry,” said 60 Minutes, in its latest coverage of the situation. Truck driving is one the more common jobs for American's without a college education. This disruption caused by the driverless truck cuts deep. Appearing on this segment of the CBS program, Steve Viscelli, a sociologist at the University of Pennsylvania and an expert in freight transportation and automation, said,  “I've identified two segments that I think are most at-risk: refrigerated and dry van truckload.” Those constitute about 200,000 trucking jobs. He added that 80,000 to 90,000 line-haul drivers were also vulnerable.  

On The High Seas

Last mile logistics refers to the final step of the delivery process from a distribution center or facility to the end-user. But the last mile delivery can range, metaphorically, from a few blocks to 50 or 100 miles, explains Carrie Mantey of the publication Supply and Demand Chain Executive. Last year, the ‘last mile’ grew its footprint in terms of the public’s awareness of its importance and of its critical role in the overall transportation operations of the entire supply chain. 

When the era of driverless trucks actually rolls out, it’s likely vehicles will travel autonomously to a highway exit near the destination, where a human or robo-operator will takeover. The last mile is precisely where robo-taxis will be most in demand.  “They’ll have to contend with less predictable characters, like people on foot, bike, and scooter,” says an Embark engineer.  “Building software to predict the movements of that group is a harder job.”

On the high seas, the last mile means literally (and easily) close to 50 or more miles. For one thing, the skipper has to shut down the average container ship or supertanker 15 miles from the dock. If a 180 degree turn is involved in the approach to a port, the vessel will require a one and a half mile turning radius. And it takes a fully loaded ship about 20 minutes to stop from its normal cruising speed. 

So, you might wonder why in the world would container ship companies  – whose non-stop circumnavigation time around the world for one of their ships takes about 77 days  and a normal Atlantic crossing from the UK to New York with 5,000 to 10,000 40-foot containers on board requires nine or 10 days – be interested in the last mile? 

Again, the short answer: Business and private sector investment.  “The whole global supply chain is under pressure,” Soren Skou, CEO of Denmark-based A.P. Moller-Maersk, said in early August. “Even if the consumer demand should turn down at some point, we will see the inventory restocking continue.”

That is why Maersk, the world’s largest container shipping line by capacity, is acquiring Salt Lake City-based Visible Supply Chain Management LLC, which operates nine fulfillment centers across the U.S. It is also purchasing Netherlands-based B2C Europe. The combined enterprise value is $924 million.

The deals follow a series of acquisitions and investments in sectors including warehousing, customs brokerage and trucking technology, aimed at extending Maersk’s expansion beyond ocean freight into inland logistics. 

“Our strategy has been to provide a more integrated solution,” says Skou. “So we are moving from shipping containers from port to port to shipping from door to door. For that to happen, we need to grow our capabilities on shore. Now, we are looking to be able to deliver goods from Asia to the U.S., not just to the port but also to someone’s door.”

Visible SCM is the larger of the two new acquisitions, with an estimated $550 million in annual revenue, while B2C Europe brings in about $140 million, according to investment analyst group Jefferies. The additional revenue is tiny compared with Maersk’s, but Skou notes the operations would help the company’s global sales force sell a broader array of services to big customers. 

Skou says the strong financial foundation would help accelerate a strategy Maersk launched in 2017 to make end-to-end logistics a bigger share of its revenue.  Maersk, he points out, has a “substantial” balance sheet, a bountiful war chest and $11.5 billion in free cash flow.  “With no debt, we have quite a significant ability to make acquisitions.” Maersk hopes to announce two more acquisitions by the end of the year.   

How Much Does Last Mile Delivery Cost?

Why Is It So Expensive?

According to Hamburg, Germany-based Statistica, a consumer research firm, the last mile delivery is the most expensive part of the fulfillment chain, costing an average of $10 per package, about $8 of which is paid by the consumer. Final mile delivery for larger items, such as refrigerators, ovens, and other electric appliances, can cost up to $50 per item. The average salary of a delivery driver is $15.69, so online stores delivering small items need to be sure that logistic plans ensure drivers make multiple deliveries an hour.   

Delivering thousands of packages to their final destination every day is a complex logistical challenge, notes Statistica. Last mile fulfillment is complicated, and many factors contribute to the overall cost:

Lower average speeds = more time on the road, and fewer miles-per-gallon: When drivers are delivering multiple packages to different locations around a city, they have to use local roads. The need to decelerate, stop, and accelerate at rapid intervals has a significant impact on both average speeds and fuel efficiency. So not only do drivers have to spend a lot more time on the road to cover the same distance, but they also burn in gas.

More stops lead to more idling and downtime: Driving and dropping off packages in the city leads to a lot more idling than other stages of shipping. With all the traffic lights, diverse vehicles on the road, and winding streets, it’s impossible to avoid. On average, a delivery truck uses 0.84  gallons of fuel when idling. And drivers are getting paid whether they are stopped or moving.

The Amazon Effect

Online spending represented 21.3% of total retail sales in 2020, according to Digital Commerce 360, a research and media firm. Consumers spent $861.12 billion online with U.S. merchants in 2020, a significant bump upwards of 44% year over year. Much of the boost coming from the COVID-19 pandemic, no doubt. That was the highest annual U.S. ecommerce growth in at least two decades. It is also nearly triple the jump of 15% between 2018 and 2019.  Globally in 2020, 80% of consumers shopped online, says consumer data provider Statistica, Hamburg, Germany.  In the U.S. an estimated 60 percent of shoppers said their favorite online source was Amazon, followed by Walmart’s web shop at 15%. 

But Amazon didn’t become the world’s most valuable public company in 2019 just because it was essentially the first company to operate in and exploit the potential of the online e-commerce retail space. Rather, Amazon focused on the last mile from its beginnings 25 years ago, delivering purchases to customers with faster, more affordable and uncomplicated shipping capabilities. Last mile delivery is the most expensive part of the fulfillment chain, costing an average of $10 per packaged delivered, reports Materials Handling & Logistics journal. On average, businesses charge the consumer a little more than $8 to cover these costs, covering the rest from the profit of sold products. 

Global logistics spending soared beyond $10.6 trillion annually in 2020, MH&L reports. Of that figure, the journal adds, 70% derives from transportation costs, and more than 40% of the transportation costs are within last mile distribution. “The only way to survive and thrive in the omnichannel, contactless era,” says MJ&L, “lies in understanding the impacts that are reshaping the state of last mile distribution and what it means for supply chain visibility, use of technology and growth going forward.”

Latest News & Updates in KC Agriculture - August 2021

Developments 

Several hundred members of the Kansas agriculture community gathered online on Thursday, August 26, for the sixth annual Kansas Governor’s Summit on Agricultural Growth hosted by Secretary of Agriculture Mike Beam and Deputy Secretary Kelsey Olson. Although the event was originally scheduled to take place in person, it was converted to a virtual event two weeks before the date, with an abbreviated and adapted agenda.  Governor Laura Kelly said, “Our partnership isn’t just about the agricultural industry or the food supply chain. It’s a commitment from me to address the unique issues facing our rural and farming communities.” This includes a focus on trade, economic development, education, health care, and other efforts to bolster rural communities through the Office of Rural Prosperity, the Eisenhower Transportation Legacy Program (IKE), and the Office of Broadband Development. USDA Secretary Tom Vilsack was unable to attend the Summit in person, but sent a greeting to the Kansas agriculture community emphasizing that agricultural producers play a critical role in fostering a healthy environment, and are the best stewards of the land.

The second virtual presentation of the Kansas City Animal Health Corridor’s annual Animal Health Summit took place in both livestream and recorded webinar formats, with opportunities for one-on-one virtual meetings. One of the trends that was reinforced in a presentation at the Summit is that much of the industry’s innovation is now coming from startups – over 500 in the vet industry according to data compiled by Fabian Kausche and Stonehaven Consulting.  The breadth of the new concepts and technologies being developed to improve animal health is truly amazing. Funding all this innovation comes from an unprecedented wave of private equity/venture capital entering the segment.  Seattle-based Pitchbook recently reported that pet companies have raised over $1.1 billion dollars thus far in over 125 animal health deals worldwide in 2021. Source: Brakke Consulting.

U.S. CattleTrace is unveiling its U.S. CattleTrace Tag Store, located on their website. USCT said that a robust contact tracing system in the United States “must operate at the speed of commerce.” Currently in the cattle industry, the most cost-effective, efficient is RFID ear tags. USCT also noted that RFID tags can be difficult to find and purchase in an online setting. “So we want this new online experience to be easy to use, while also giving U.S. CattleTrace members the opportunity to save money on their tags,” said U.S. CattleTrace Board of Directors chairman Brandon Depenbusch.

Merck Animal Health has announced new naming for its cattle vaccine portfolio – one of the largest and most comprehensive vaccine portfolios in the industry. The goal of the new naming and packaging is to make it easier for customers to recognize the company’s vaccines and to identify specific formulations. “All Merck Animal Health cattle vaccines will lead with Bovilis followed by the current product name, such as Bovilis Vista, Bovilis Vision or Bovilis Guardian,” said Scott Nordstrom, DVM, director of livestock innovation and discovery, Merck Animal Health. “In addition, all vaccine packaging will share a new, consistent design and color coding to make it easier for customers to identify the vaccine formulation needed.”  

The Ocean Shipping Reform Act of 2021, recently introduced by U.S. Representatives John Garamendi, D-California and Dusty Johnson, R-South Dakota, looks to support American exports by establishing reciprocal trade opportunities to help reduce the United States’ longstanding trade imbalance with China and other countries and establish rules of the road for fair trading. The Ocean Shipping Reform Act would provide new authority to the Federal Maritime Commission to address unjust and unreasonable practices by ocean carriers. It would institute new penalties against ocean carriers and marine terminal operators for violations of the Shipping Act, require expanded public disclosure from the FMC and carriers, and establish a series of new regulations against unfair carrier practices. 

Sanderson Farms Inc. has agreed to sell itself for around $4.5 billion as the poultry giant rides a wave of demand for chicken products. Cargill Inc. and agricultural-investment firm Continental Grain Co., which owns a smaller chicken processor, have reached a deal to take Sanderson private. The deal values Sanderson at $203 a share, about 30% above the stock price before The Wall Street Journal reported in June that the company had attracted suitors including Continental. Mississippi-based Sanderson is the country’s third-biggest chicken producer. It runs 13 poultry plants from North Carolina to Texas, processing about 13.6 million chickens a week. 

Republican Senators Chuck Grassley and Joni Ernst of Iowa, Roger Marshall of Kansas, and John Cornyn of Texas introduced a bill last week to prohibit state and local governments from interfering with the production or manufacture of agricultural products in other states; it challenges those states from interfering in interstate commerce. “Defendant” governments would still be able to regulate farming and ranching within their own states. 

University of Missouri’s Center for Regenerative Agriculture has launched a new website with information on regenerative agriculture. The website allows farmers, landowners, farm advisors, and even consumers to access a wide range of information on regenerative agriculture practices and concepts, noted Rob Myers, director of the Center.  Greg Luce, director of research for the Missouri Soybean Association and Merchandising Council, said, “The website will be a much-needed central point for information in conservation-related areas of interest.” To visit the website and sign up for the Center’s monthly newsletter click here.  

St. Louis-based Donald Danforth Plant Science Center has received a $12.5 million grant from the National Science Foundation (NSF) to establish the New Roots for Restoration Biology Integration Institute.  Allison Miller, PhD, a Danforth Center and professor of biology at Saint Louis University will serve as the director of a collaboration between eight organizations involving 26 scientists and educators. The goal of the five-year research project is to integrate plant traits, communities and the soil ecosphere to advance restoration of natural and agricultural ecosystems.

The beef cattle industry is recovering from the pandemic, with progress expected to continue in 2022, according to new findings from industry analyst group CattleFax. Beef prices are near record highs, and consumer and wholesale beef demand are at 30-year highs too. While drought continues to threaten pasture conditions in the Northern Plains and the West, strong demand and higher cattle prices are positive signs for the beef industry, says CattleFax.

Despite battling dry planting conditions, a wet spring, and hail damage the wheat research team at Kansas State University collected enough data to advance two breeding lines to seed production ahead of a potential variety release in 2022.   “The K-State wheat breeding program is at the heart of wheat production in the United States,” said Aaron Harries, vice president of research and operations for Kansas Wheat.  The potential wheat varieties result from the long-running breeding program at the K-State Agricultural Research Center at Hays, led by Dr. Guorong Zhang, Kansas State University wheat breeder, and his team. The program — supported financially by Kansas wheat producers through the Kansas Wheat Commission — focuses on the development of new and improved varieties of both hard red winter (HRW) and hard white (HW) winter wheat for western Kansas. “Our goals in the breeding program are to develop new wheat varieties that give Kansas producers top agronomic performance and provide protection from major pests and diseases,” Dr. Zhang said. 

Building a rotational grazing system, establishing a successful vaccination program and discussing industry issues at the federal level all were topics on the agenda at the August 19 KLA/Kansas State University Ranch Management Field Day. More than 80 producers attended the event, which was hosted by the Norman Roth family near Sterling. Retired Natural Resources Conservation Service state rangeland management specialist David Kraft highlighted the benefits rotational grazing has for both the grazer and the ecosystem in a pasture. He encouraged those looking to implement such a program to start by evaluating the resources available to them and knowing the needs of their animals. K-State extension veterinarian A.J. Tarpoff discussed herd health strategies and how an effective vaccination program can have a significant impact on reducing the cost of production in the cowherd.  NCBA president Jerry Bohn of Wichita gave an update on industry issues being discussed in Washington, D.C., including tax policy. Bohn said Congress must prioritize policies that support land transfers to the next generation of farmers and ranchers. To help protect producers from excessive tax burdens that could shift agricultural lands to other use, he said NCBA is fighting to protect long-standing provisions in the federal tax code such as stepped-up basis. Additionally, he said NCBA continues to be a leading voice in the fight for a full and permanent repeal of the death tax.  

The Kansas state rules and regulations board has approved the adoption of temporary amendments to the Kansas industrial hemp regulations which were proposed by the Kansas Department of Agriculture. The regulation amendments will align Kansas’ industrial hemp regulations with the USDA’s Final Rule on commercial hemp production.  The amended regulations extend the timeframe to complete sampling and harvest, provide flexibility to producers regarding potential remediation of plants if sampling tests above acceptable THC levels, and increases the threshold at which a crop will be deemed to have been produced negligently. 

Propelled by surges in sales to China, Mexico and Cuba, U.S. exports of chicken and eggs are at a record pace after the first six months of 2021,  reports Agri-Pulse Communications. And a new analysis released Wednesday by the U.S. Poultry and Egg Export Council says trade is expected to continue strong through the rest of the year. The U.S. shipped about 1.9 million metric tons of broilers worth $2.1 billion to foreign buyers from January through June this year according to the USAPEEC report, which is based on the latest USDA data. That’s a 6.8% increase from the same time period last year for volume and a 21.1% increase in value.  Source: Agri-Pulse Communications, August 25, 2021.

Events

Missouri’s State 4H Board is holding its 11th Annual Clover Classic Golf Tournament presented by The Climate Corporation, a subsidiary of Bayer, and Great American Insurance-Crop Division on September 21 at A.L. Gustin Golf Course in Columbia.  Event organizers are looking for sponsors at various levels. For more information contact Chris Willow  or call 573-882-2680. 

The 21st Annual National Farmers Market Week took place August 1-7. This year, USDA Secretary Tom Vilsackvisited Pearl Street Farmers Market in Denver to commence the week-long campaign. Vilsack's proclamation discussed the role farmers markets play in federal nutrition programs and in supporting minority and family farms. The Farmers Market Coalition is focused on three main messages this year: 1) Farmers markets are essential businesses and their short supply chains provide resiliency for food systems; 2) farmers market operators are local food heroes; 3) farmers markets offer safe outdoor spaces that allow shopping with air circulation and social distancing. 

Missouri and Kansas produce growers can enroll in free workshops to meet training requirements of the Food Safety Modernization Act Produce Safety Rule. Both in-person and online workshops are scheduled for the next several months. FSMA includes standards related to water quality, use of manure and compost, and worker health and hygiene, says Londa Nwadike, food safety specialist with University of Missouri Extension and Kansas State Research and Extension. The standards are intended to reduce the risk of contamination from E. coli, Listeria, Salmonella and other disease-causing microbes. For more information and registration, visit here or contact Londa Nwadike at 816-482-5850.

The American Royal’s 41st World Series of Barbecue returns to the Kansas Speedway, September 16-19. Considered the world’s largest barbecue competition, the event will include live music, BBQ demos plus a full line up of kids’ activities.  But due to recent announcements regarding enhanced COVID-19 restrictions, the American Royal has rescheduled its American Royal Youth Rodeo and ProRodeo to early May 2022.

The Missouri Governor’s Conference on Agriculture is coming back to Tan-Tar-A Resort in Osage Beach, Missouri, this fall for its 49th celebration of agriculture.  Missouri Department of Agriculture has set the conference dates for November 18-19, 2021. Missouri farmers, ranchers, agribusiness leaders and aspiring agriculturalists are invited to enjoy the packed program that will include a commodity outlook, Missouri Agriculture Awards luncheon and nationally-recognized speaker line-up. More information is available at their website.

Lenexa, Kansas-based Farm Journal reports that country music star Easton Corbin will headline the live 2021 #FarmONTM Benefit Concert during Farm Journal Days™. Proceeds from this second annual benefit concert will go to the National FFA Foundation. Highlights from the concert will air in prime time on Monday, Sept. 20, 2021, from 7 to 8 p.m. CDT, on RFD-TV and stream on other online and social networks. Corbin is a three-time American Country Music Award winner and has three Billboard Top Country Albums.

Kansas State University Olathe will conduct a two-day virtual workshop September 22, 8:30 am - 4:30 pm, which will provide attendees with the regulatory insights necessary to make smarter business decisions in management and leadership in the animal health industry. This program provides an overview of essential regulatory guidelines, terminology, concepts and applications in the day-to-day animal health business management. Registration information is available here.

Agri-Pulse Communications is pleased to announce a September 10 webinar called “Future directions: Exploring farmers' climate-smart tools.” This complimentary one-hour program will provide updates on how farmers are increasingly producing more outputs with fewer inputs and less impact on natural resources. For more information, click here.

Metropolitan Community College has announced their inaugural Manufacturing Leadership Skills Series, October 7-9 at their Penn Valley campus. This series is designed to advance leadership and management skills training for first- and second-line supervisors and apprentice mentors. Conducted in an empathetic, mentoring style, the Leadership Series will feature technical instruction, plant tours, peer-to-peer networking and support. In addition, we will be conducting tours of MCC new Advanced Technical Skills Institute building during the kick-off event. Click here for more information.

Farm Journal announces a town-hall-style conversation with U.S. Secretary of Agriculture Tom Vilsack during Farm Journal’s next Farm Country Update. The free webinar titled “American Ag Policy: A Conversation with the Secretary of Agriculture” is set for Thursday, September 2, 2021 at 2 pm CDT. The virtual event will focus on topics important to farmers and all the agriculture industry including policy priorities, COVID assistance, trade, climate, market transparency and goals for the upcoming year. Audience participants will be able to submit questions during the event. Find more information on this free event here.

People

Samantha Turner will join Missouri Soybean Association as director of communications effective September 22. Previously she had interned with the association, and most recently served as communications director for the National Biodiesel Board.

The Kansas Corn Growers Association board appointed Tanner McNinch, Ness City to serve as a board member representing west central Kansas. The action came after Dennis McNinch, Utica submitted his resignation. Dennis McNinch serves on the National Corn Growers Association board and also the Kansas Corn Commission. In his resignation, he cited the time involved in serving on the national board and the state checkoff. Tanner McNinch is a fifth-generation farmer with his wife and two children at McNinch Farms in west central Kansas. The family farm grows corn, wheat and sorghum. 

Justin Calhoun joins the University of Missouri Extension as state specialist in soils and cropping systems. He will be based at the Fisher Delta Research Center in southeastern Missouri. Calhoun will also be an assistant professor in the MU Division of Plant Science and Technology. Calhoun has a bachelor’s degree from the University of Arkansas at Monticello and a master’s degree from Mississippi State University. He will receive his doctorate from MSU in December.

Agricultural Business Council Honors Two Agribusiness Leaders

After a year’s interruption caused by COVID-19 in 2020, Kansas City’s Agricultural Business Council got its 2021 Awards Luncheon back on track at historic Union Station’s Chamber Board Room. Receiving the Jay B. Dillingham Award for Agricultural Leadership and Excellence – the Council’s highest recognition – were Diane Olson, retired Missouri Farm Bureau, and Dr. Ralph Richardson, most recently dean and CEO of Kansas State University Olathe campus.

Event Master of Ceremonies and Council Vice Chair Dustin Johansen, a business development executive at Farm Journal Media, noted that this year’s Awards Luncheon coincided almost to the date with the passing of Jay B. Dillingham 14 years ago. “As we reflect on Kansas City’s agricultural heritage, a major part of that revolved around the Kansas City Stockyards,” Johansen said. “Even though that era is behind us, we remember and respect how it shaped our city.” Johansen also recognized eight past recipients of the award who were in attendance at this year’s event.  John Dillingham, son of Jay B. Dillingham, provided remarks on behalf of the family.

Honoree Diane Olson, regarded by her colleagues as a ‘rockstar’ during her 34-year career, was introduced by Garrett Hawkins, president of Missouri Farm Bureau. She began her Farm Bureau career in November 1985 and has been a state and national leader in promoting agriculture in new and innovative ways ever since. She was a founding member of the Board of Directors of the Agricultural Business Council of Kansas City and coordinated Missouri’s Agriculture in the Classroom Program; served as president of the National Agriculture in the Classroom organization; hosted three National Agriculture in the Classroom Conferences, two of which were held in Kansas City. 

“Agriculture plays an important role in Kansas City,” said Olson, “And I was privileged throughout my career with Missouri Farm Bureau to work with other leaders in the area to promote its importance. It was rewarding to serve the Agricultural Business Council of Kansas City from its inception to the organization it has become.”

No less a luminary himself, Kansas State University President and U.S. Air Force General Richard Myers introduced award recipient Ralph Richardson, DVM. Dr. Richardson served as dean and CEO of the K-State Olathe campus for four years after serving as dean of the College of Veterinary Medicine at Kansas State University from 1998-2015. In his remarks upon receiving the award, he said, “I’m honored beyond words to be a recipient of the Jay B Dillingham Award. Having grown up in a home with deep roots in agriculture, being involved in veterinary medicine and public health as a profession, and being an active part of agriculture in the region through Kansas State University, the Animal Health Corridor, and the Agricultural Business Council makes this recognition particularly meaningful to me. I’m sincerely humbled and deeply thankful.”

Dr. Richardson was a member of the inaugural board of directors of the Kansas City Animal Health Corridor, and facilitated the creation of numerous programs at K-State such as the Beef Cattle Institute, the Center for Vector-borne Diseases, the expansion of the Kansas State Veterinary Diagnostic Laboratory, and the building of the National Bio- and AgroDefense Facility.

Presenting sponsor of the event was John Deere.

Digging Deeper...

A new barge terminal is open for business on the Missouri River. It came on stream (no pun intended) in June, giving corn and soybean producers in western Iowa an effective, efficient, and economical venue from which to ship millions of bushels of row crops to markets downstream and overseas – and to offload tons of vital equipment, fertilizer and other inputs western Iowa farmers need for profitable growing.  It may herald good times to come on the Missouri River. By: Dennis McLaughlin, McLaughlin Writers LLC

(Sources: Tom Waters, chairman, Missouri Levee and Drainage District  Association and chairman, Missouri Highways and Transportation Commission; Chris Chinn, director Missouri Department of Agriculture; Ben Nuelle, Agri-Pulse Communications, June 16, 2021; Mike Steenhoek, executive director, Soy Transportation Coalition; Dan Dix, general manager, Port of Blencoe, Iowa; Mike Naig, Iowa Secretary of Agriculture)

Missouri River Gets Much Needed Infrastructure Funding

Located half-way between Council Bluffs and Sioux City, on the Iowa side of  the Missouri River, the Port of Blencoe will serve as a gateway to world markets. The port is the farthest stop north on the Missouri River and will shift high-volume freight from road to waterway. With its newly constructed, recently christened barge terminal, the port provides a marketing option for Midwest corn and soybean producers. “The facility's ability to ship millions of bushels of row crops downstream toward the Mississippi River could also increase the prices grain buyers will pay for their grain,” noted Ben Nuelle, in an Agri-Pulse Communications report (June 16, 2021).

The Port of Blencoe, operated by Iowa-based NEW Cooperative, Inc., and three-years in development, will provide western Iowa farmers with direct access to international markets. It’s a doorway to global trade, Iowa Secretary of Agriculture Mike Naig told Agri-Pulse. “I call it an on-ramp to the superhighway to the Gulf of Mexico.” The port will service six barges and a single towboat about 17 times a year.

It has been 16 years since barges have navigated into the region. State and local officials as well as business leaders in the area hope the new port will help increase end-market grain prices. "This part of Iowa, typically, has some of the lowest prices for grain,” said Dan Dix general manager of the Port of Blencoe. However, he noted, producers are so far-removed from end-users that over-the-road and rail- transportation costs cut into their profits.   

Commenting on freight rates, and congested rail and highways, Tom Waters, chairman of the Missouri Levee and Drainage District Association (MLDDA) said, “Rivers remain the one mode of transport underutilized in the transportation system; it’s environmental and economic benefits continue to make it a viable choice for transportation well into the future.”

More to the Story

The recent commencement of barge operations at Port Blencoe may not have elicited more than a ho-hum from communities and businesses down river, but it is emblematic of positive efforts from federal, state and local government to implement river infrastructure projects that will improve flood control systems and enhance commercial navigability. With infrastructure high on the list of priorities in the White House and in Congress, it is a good time for floodplain communities, river-dependent commerce and transportation operations to put forth proposals and applications for financial allocations from governmental agencies and departments. “Infrastructure is a big deal right now,” says Waters, referring to the multi-trillion dollar projects being discussed by the White House and Congress.

While the iron is hot, it’s a good time to strike.  And that’s what seems to be happening. The Missouri River flooding of 2019 has forced lawmakers, business leaders, engineers and communities to demand more attention be directed toward upgrading the nation’s inland waterways infrastructure. In particular its dams and levees. On January 19, 2021, The U.S. Army Corps of Engineers (USACE) delivered to Congress its Fiscal Year 2021 Work Plan for the Army Civil Works program. It was a presentation detailing where USACE would spend its allotments from the 2021 Consolidated Appropriations Act, Public Law 116-260 that became law on December 27, 2020.

Of the $7.3 billion funding that the Act provides for USACE’s Army Civil Works projects, $2.2 billion will be spent on the nation’s rivers: Navigation - $1.3 billion; Flood Risk Management - $0.5 billion; Other Authorized Project Purposes - $0.4 billion.  

In its own words, here is how USACE described its spending plans to lawmakers:

“The Army Civil Works program includes funds for the planning, design, construction, and operation and maintenance of water resources projects, with a focus on the highest performing work within the three main Civil Works mission areas: commercial navigation, flood and storm damage reduction, and aquatic ecosystem restoration.  It also funds programs that contribute to the protection of the nation’s waters and wetlands; the generation of low-cost renewable hydropower; the restoration of certain sites contaminated as a result of the nation’s early atomic weapons development program; and emergency preparedness and training to respond to natural disasters.”

Close To Home                                                       

Late last December, the United States Congress passed the bipartisan Water Resources Development Act (WRDA) of 2020, and it was signed into law in early January 2021. According to a release from the U.S. House Committee on Transportation and Infrastructure, “WRDA 2020 included essential provisions to invest in U.S. ports, harbors and inland waterways; build more resilient communities; and ensure that the U.S. Army Corps of Engineers carries out projects in an economically and environmentally responsible manner.”

The efforts of Missouri’s U.S. Senators Roy Blunt and Josh Hawley and U.S. Congressional Representatives Emanuel Cleaver and Sam Graves were key in making sure lawmakers understood how critical the Missouri River is to overall national agricultural, inland navigational and regional flood control interests.  Biennial WRDA legislation – which the Transportation and Infrastructure Committee has developed and passed on a bipartisan basis since 2014 – is critical to all 50 states, territories, and Tribal communities.

Tom Waters said, “MLDDA worked with Congressman Sam Graves and the House Transportation and Infrastructure Committee staff, Congressman Emanuel Cleaver and Senator Roy Blunt to get language in the WRDA 2020 regarding the Missouri River.” WRDA 2020 also has several exciting things in it, he pointed out, involving the Missouri River. “The Lower Missouri River Study in WRDA 2020 begins a process of developing a system plan for the River and opens the door to begin feasibility studies for a few critical locations along the River where flood control infrastructure improvements can be made. 

In addition to Missouri’s Washington Congressional Delegation, Waters noted his groups have been working closely with the Missouri Department of Natural Resources and the State Legislature to begin implementing some of the ideas developed by Governor Parson’s Missouri River Flood Recovery Advisory Working Group. He also pointed out that MLDDA and MHTC have acquired funding for requisite feasibility studies. “We’ve raised our share of the costs, and are ready to go,” he said, adding, “We’re just waiting for federal allocations to arrive.”  

The 2019 flood event once again demonstrated how important flood control infrastructure is for Missouri, Waters reported.  “For years, the Levee Association has been telling the story about the need for improvements in our flood control system. In recent years, the River itself has been telling the story. Flood after flood over the past several years has drawn attention to the Missouri River, and I am hopeful we will begin to see improvements made to benefit all those impacted by Missouri River flooding.”

WRDA 2020: What’s in it for Mighty Mo?

The legislation provides more than $7.7 billion for the Army Corps of Engineers (which is $145 million above the Fiscal Year “enacted” level. The funding will support vital flood control and navigation projects across Missouri and the nation. How much of that will actually be carved out for the Missouri River remains to be seen after feasibility studies have been completed.

Navigation and Ecosystem Sustainability Program (NESP): Bill includes language that advances the NESP, which authorizes the modernization of seven locks and dams on the Upper Mississippi River.

Missouri River Bank Stabilization and Navigation Program: The legislation provides $9.4 million for operation and maintenance work activities, including critical structure maintenance for navigation.

Lower Missouri River: The bill includes language that urges the Corps to work with state and federal agencies and stakeholders to identify authorities and opportunities for the development of a more comprehensive, system-wide plan for flood control in the Lower Missouri River Basin. Senator Blunt has also introduced legislation (cosponsored by all the Senators from lower Missouri River basin states) that would overhaul the Corps’ process for managing projects along the lower Missouri River system.

Inland Waterways Trust Fund: The bill makes full use of the Inland Waterways Trust Fund revenues. The bill also ensures the resources inland navigation operators put into the Inland Waterways Trust Fund are used for construction and modernization of our nation’s locks and dams.

Mississippi River and Tributaries Project: The legislation includes $380 million for the Mississippi River and Tributaries Project, providing vital funding for the Corps to fulfill its flood control and navigation missions.

Delta Regional Authority (DRA): The bill provides $30 million for the DRA with a focus on infrastructure development in rural areas, including $15 million for flood control, public infrastructure, and transportation improvements. The DRA provides infrastructure, health care, and economic development assistance to 29 counties in Southeast Missouri.

Small Ports: The legislation includes $65 million for the dredging of small ports, including those in Missouri located on the Mississippi River.

Kansas City National Security Campus: The bill provides more than $4 billion for the Infrastructure and Operations account at the National Nuclear Security Administration. This funding is essential to the operation of the Kansas City National Security Campus, and will help ensure the safety, security, reliability, and effectiveness of the nation’s nuclear weapons stockpile.  

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MDA Director Chinn Touts Missouri River

In a recent press release, Chris Chinn, director, Missouri Department of Agriculture, counted the Missouri River among the “unsung heroes” of the state’s agricultural industry. “As Missouri farmers and ranchers, we are blessed with this advantage, in addition to our rail and trucking options to get our products to market,” she said. “The three transportation options working together create a competitive environment that brings down the cost of grain transportation overall.” 

Director Chinn also pointed to the large amount of fertilizer that is carried upriver to Missouri farmers during planting season. On their return trip, she said, the barges are loaded down with grain for export to customers around the world.  But it takes a lot of work to maintain these systems appropriately. 

“We’ve seen leaders, such as Governor Mike Parson, step up to prioritize navigation and flood control along our river systems that have paid off for agriculture.”  Barge traffic has been increasing over the years because of these collective efforts, Chinn said. “Since the 1990s, we’ve seen a renaissance on both the Missouri and Mississippi rivers in terms of management,” she added. 

According to Missouri’s Grain Inspection Services – with service sites in St. Joseph, Marshall and New Madrid – barge traffic has grown dramatically.  For example, since 2008, New Madrid’s service point saw nearly 12,500 barges inspected; Marshall’s service point (which includes Missouri and Mississippi River locations) saw more than 8,500 barges come through for inspection.

“But the most impressive numbers are found in the increases in five-year averages,” Chinn explained. “Marshall’s five-year average increased from 373 barges annually from 2008 to 2012, to 953 annually from 2016 to 2020.”  An impressive 255% bump in activity.  Farther south, she noted, “New Madrid’s five-year average went from 759 annually from 2008 to 2012, to well over 1,000 annually from 2016 to 2020. That’s a 31% increase at one of the most critical river shipping ports in our state.”