Latest News & Updates in KC Agriculture - May 2022

Developments

Agriculture is responsible for just 10% of total U.S. GHG emissions, much lower than other economic sectors. American Farm Bureau Federation economists analyzed the data from EPA in the latest Market Intel. 2020 overall emissions from agriculture fell at least 4.3%, or 28.8 million metric tons, compared to 2019. Emissions from agricultural soil management like fertilizer application and tillage practices were reduced by 8.4%. “The most recent numbers show America’s farmers and ranchers are dedicated to feeding America’s families while remaining committed to improvements in sustainability,” said AFBF President Zippy Duvall.

University of Missouri’s FAPRI has raised its forecast for farm income in the wake of the conflict in Ukraine and the run-up in commodity prices. FAPRI now expects net farm income to reach nearly $120 billion this year, up from its March forecast of $105 billion. It now projects farm production expenses will total $446 billion, up from the March forecast of $420 billion. Production expenses totaled about $392 billion in 2021. 

Missouri Department of Agriculture is now accepting applications for the Missouri Agriculture Energy Saving Team – a Revolutionary Opportunity (MAESTRO) grant, funded through the U.S. Department of Energy. The MAESTRO grant was created to help small farming operations across Missouri reduce energy use. Funding will be used to assist K-12 school districts with agriculture programs. Applications must be submitted by Sept. 1, 2022. The Department will grant awards up to a maximum of $10,000 per approved school. The goal of the grant is to ensure valuable energy-efficient upgrades are being made in Missouri K-12 school districts.

More than 17,000 farms in Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota produced and sold food locally through direct marketing practices, resulting in $577 million in revenue in 2020, according to the Local Food Marketing Practices Survey results from USDA’s National Agricultural Statistics Service. The results cover both fresh and value-added foods, such as meat and cheese. The more than 3,800 farms that sold food directly to institutions and intermediates brought in the most revenue at $317 million; this was followed by operations with direct-to-consumer sales, such as on-farm stores and farmers markets, at $166 million. Sales directly to retailers accounted for $93.6 million. 

The Livestock Marketing Information Center, Lakewood, Colorado, reports March trade data showed record beef exports, while pork exports held steady. Beef exports in March totaled 303.7 million pounds, up 1.2% from last year. It was also the highest beef export level reported for any month of March. March pork exports totaled 544.2 million pounds, down 25.3% from a year ago but in line with the five-year average. First quarter pork exports were down 20% from 2021 to 1.5 billion pounds. During the first quarter, Mexico was the top pork export market with 602.5 million pounds shipped, an increase of 42.4%. Japan ranked as the second highest pork export destination at 276.2 million pounds, down 16.1% from 2021. South Korea rounds out the third spot with 133.9 million pounds shipped, down 7.4% from a year earlier.

NCBA has condemned the unfunded and duplicative Meat and Poultry Special Investigator Act of 2022, which was marked up by the House Agriculture Committee. The special investigator bill would create a new position in USDA with immense prosecutorial and subpoena power. To comply with this legislation, USDA would be forced to divert resources from other mission-critical areas of the Agricultural Marketing Service, stealing resources from the essential programs cattle producers rely on every day.  “Arming USDA with unchecked subpoena and prosecutorial power while significantly undercutting the DOJ’s role in the process is poor practice,” said NCBA vice president of government affairs Ethan Lane.

Avian influenza numbers are dropping, says Robert Pierce, University of Missouri Extension wildlife and fisheries specialist. Fewer reports of dead and sick birds point to an end to the current outbreak of avian influenza, Pierce says. Rising summer temperatures also will likely lead to a decrease in avian influenza. “The good news is that there is evidence that the AI virus does not tolerate high temperatures well, so we should not see problems during the summer,” says Pierce. Numbers could tick upward again in the fall as temperatures drop.

Programs to help U.S. farmers build markets overseas boosted agricultural exports by an average of $9.6 billion annually from 1977 to 2019, an annual lift of 13.7% in export revenues and returning $24.5 for every dollar invested. Those are the key conclusions from a new study prepared to evaluate the impact of programs administered by USDA’s Foreign Agricultural Service (FAS), including the Market Access Program (MAP) and Foreign Market Development (FMD) program.  U.S. Grains Council, the organization that builds markets overseas for feed grains and ethanol, led the study’s preparation on behalf of FAS and the cooperator community.  The study is available here.

Cargill plans to build a new soybean processing facility in Pemiscot County, near Hayti and Caruthersville, in southeast Missouri to support growing domestic and global demand for oilseeds driven by food, feed and fuel markets. “The Missouri Soybean Merchandising Council (MSMC) is committed to increasing market development opportunities in the state, and we are proud to work with Cargill on this project to bring value back to the soybean farmer,” said Aaron Porter, MSMC vice chair and farmer from Southeast Missouri. The facility will be the first of its kind for Southeast Missouri with an annual production capacity of 62 million bushels of soybeans. Missouri currently ranks sixth in the United States for soybean production.  

USDA is investing $770 to create new market opportunities for rural businesses and people in 36 states and Puerto Rico. The investments include $640 million for 122 projects to help people living in socially vulnerable communities. The funding will help a diverse rural America keep resources and wealth right at home through job training, business expansion and technical assistance. It will help companies hire more workers and reach new customers. It will open the door to new economic opportunities for communities and people who historically have lacked access to critical resources and financing. It will also help entrepreneurs and business cooperatives create jobs, grow businesses, and find new and better markets for the items they produce.

U.S.-China Economic and Security Review Commission warns China’s efforts toward self-sufficiency could present risks to the economic and national security of the United States. The report says China could gain further leverage over U.S. supply chains by purchasing agribusinesses and land in the United States, reduce U.S. competitiveness by stealing intellectual property and create bioweapons using DNA from genetically modified American crops. Full report available at Agri-Pulse Communications, May 26, 2022.

Overland Park-based TechAccel, an investor in Epicrop Technologies Inc., Lincoln, Nebraska, is collaborating with Dr. Sally Mackenzie, epigenetics expert and director of the Penn State Plant Institute. TechAccel’s involvement includes the development of two joint ventures conducting trials with epigenetic enhancement of canola and strawberries. Epigenetics refers to the genomic neighborhood that surrounds genes and controls how they are expressed. This local process controls how genes respond to environmental change.

NCBA is asking members to send a letter to U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler expressing their opposition to mandatory greenhouse gas reporting requirements. Accurately measuring greenhouse gas emissions at the ranch level is nearly impossible and estimates will be inaccurate at best. Agencies like USDA and the EPA already are involved in regulating the agricultural industry and calculate emissions through programs like the EPA annual Greenhouse Gas Emissions Inventory and USDA Life Cycle Assessments. Those measurements provide high-level estimates without collecting individual producer data.  

In partnership with the Nebraska Beef Council, the Kansas Beef Council extends funding for nutrition outreach to state beef councils in high population regions. Recently, the California Beef Council, with the support of KBC and NBC, hosted an educational session, booth and dinner for the California Academy of Nutrition and Dietetics Annual Conference in Oakland, California.  Checkoff-funded state partnerships like this are essential to communicate accurate, science-based information about beef nutrition to key influencers who live in states with high populations. 

Events

Grub Crawl returns! Sink your teeth into City Market at Grub Crawl, the annual tasting tour of City Market restaurants on June 3! The Grub Crawl Passport will lead you to almost 20 different delicious destinations. While tasting and sipping your way around City Market, enjoy live music from the Aspiring Artists Micro Music Festival and sample Aspire Healthy Energy Drinks. Tickets are $45 each and are on sale now! Click here for more details. The Ag Business Council of Kansas City is a proud sponsor of the 2022 Grub Crawl at City Market.

Pork industry professionals will get the latest in production and management education through topical seminars at the 2022 World Pork Expo presented by NPPC.  The Expo takes place June 8-10 at the Iowa State Fairgrounds in Des Moines, Iowa. This year’s line-up of Business Seminars and Pork Academy gives producers the opportunity to learn about critical topics such as sustainability, data, industry collaborations, nutrition, and more.

Kansas State University-Olathe is offering a webinar presentation July 13 at noon: Animal Health Regulatory Affairs Certificate.  The certificate combines the knowledge of animal science and veterinary medicine with skills needed to navigate governmental processes and regulations throughout a product's lifecycle. More information available here.

The Kansas Department of Agriculture’s Marketing and Promotions Advisory Board will meet at 9:00 a.m. on Friday, June 3. This is a regularly scheduled board meeting that will be held via virtual meeting technology. The board meeting is open to the public. To request a copy of the agenda or directions on how to participate in the virtual meeting, please contact Jennifer Hill at 785-564-6700 or Jennifer.Hill@ks.gov. The KDA Marketing Advisory Board is seeking new members to fill positions beginning this summer. If you are interested in in applying to serve as a member of the board, find out more about how to apply here.

The Angus Foundation invites golf and Angus enthusiasts to enjoy a day on the green at its annual Golf Tournament, held in conjunction with the 2022 National Junior Angus Show in Kansas City, Missouri. The event, which will help further the Foundation’s mission of supporting Angus youth, education and research, will be held on Tuesday, July 5 at the Shiloh Springs Golf Club in Platte City, Missouri. Registration will begin at 6:30 a.m., with a shotgun start at 7:30 a.m. Sponsorship options are available to state and regional Angus associations, individuals, businesses, farms and ranches. There are different promotional opportunities at eight sponsorship levels. The sponsorship deadline is June 3. Player registration is open until June 20.

People

Farm Journal announced Michelle Rook, one of the most experienced and respected reporters in agriculture media, has joined as a national reporter. Working as part of Farm Journal’s award-winning broadcast team, Rook will serve as the lead field correspondent for the nationally syndicated television shows AgDay and U.S. Farm Report, as well as agriculture’s top-rated national radio show AgriTalk.

Kansas Corn has named Zoe Schultz Regional Outreach Coordinator responsible for developing engagement programs between western Kansas farmers and industry partners.

In a recent trade mission hosted by the Kansas Soybean Commission, Kansas Corn leaders Terry Vinduska and Tanner McNinch learned about efforts to build trade with Morocco. They met with the Moroccan Milling Training Institute, saw corn and DDGS imported from the U.S., visited a modern feedlot and an integrated feed mill, which also feeds and processes poultry. Vinduska is a past-chairman of the U.S. Grains Council and had visited Morocco twice before to evaluate USGC projects there. Tanner McNinch is in his first year of leadership with Kansas Corn. Both saw positive results of market development efforts funded by corn and soybean farmers.

Ben Travlos is the new director of state and local legislative affairs for the Missouri Farm Bureau. Most recently he worked for the Missouri Corn Growers Association as the associate director of public policy.

Digging Deeper...

The latest global consumer and B2B market research reports on plant-based meat alternatives (PBMA) are dishing out some appetizing forecasts for the next few years. The global plant-based meat sector reached a value of US$ 8.5 Billion in 2021, according to India-based IMARC Group. Expectations call for the market to reach US$ 34 Billion by 2027, from a compound annual growth rate (CAGR) of 25.8% from 2022 to 2027 – this despite flat or negative growth in Q4 2021 for key players in the space like Beyond Meat and Maple Leaf Foods. But there is something else going on in American kitchens and dining rooms. Dennis McLaughlin, McLaughlin Writers LLC – Sources: Kentucky Economic Association, Journal of Applied Economics and Policy (formerly the Kentucky Journal of Economics and Business); NYU Stern School of Business, Sustainable Market Share Index™ 2021 Market Share; Information Resources, Inc., Power of Meat 2022;  Sosland Publishing,  Trends & Innovations Webinar Series.

PBMA Market More Nuanced Than You Think

So who’s eating plant-based meat alternatives? It’s not vegetarians, so much. A new report released in February 2022 by the University of Kentucky shows meat substitutes made from plants have doubled in total sales over the past two years. But that growth has not cut into the sales of beef and pork. Instead, the study, published in the Journal of Applied Economic Perspectives and Policy found that shoppers were more inclined to buy less chicken and fish when they bought PBMA products than beef or pork.  “We were surprised by the results,” said Shuoli Zhao, a professor of agricultural economics at the University of Kentucky and the lead author of the study. “Those products are usually marketed as a competitor of red meat.”

But that’s not entirely so. Lisa Simon, a registered dietician in the U.K., says meat alternatives can be a great choice for those wanting to consume what they think is a healthier diet, particularly for those who eat a lot of meat. She implies that eating meat or adhering to a strict vegan diet is not a zero-sum concept.  “For example, if you are looking to avoid too much saturated fat, you would probably prefer to avoid ground beef meats, and if salt is a concern, you may want to avoid brands with more than 1g per portion.” Simon states growing consumer health concerns about the high prevalence of obesity and diabetes “has augmented PBMA demand owing to its low calorie and high-protein content.”

Dr. Zhao points out that the study suggests PBMA complements rather than competes with beef and pork consumption and demand.  Instead (and ironically) plant-based “red” meat has become a substitute for chicken, turkey and fish. Although the current demand for PBMA lags real meat significantly, its sales growth has been significant.

Who’s Eating PBMA?

According to the study, most plant-based meat alternative purchases are impulse buys, rather than items place on a shopping list ahead of time – and that might be why they are in the same shopping carts with products that PBMA marketers and investors are hoping to replace. “Although most consumers are still traditional meat lovers, they may give plant-based meat alternatives a try. So at the end of the day, they buy both,” said Yuqing Zheng, also a professor of agricultural economics at the University of Kentucky and co-author of the study.

The study shows global sales of plant-based meat alternatives were $10 billion in 2018, more than $20 billion in 2020 and are expected to reach $30 billion in the next five years. While the findings contained in the University of Kentucky’s study are draped heavily with economic data, Chicago-based Information Resources, Inc., (IRi) recently drew a practical image of what the actual PBMA market looks like. It was presented earlier this month by Sosland Publishing’s Trends & Innovations Webinar Series. Succinctly put, households that buy meat alternatives are still buying meat. But they have become more adventurous, said Chris DuBois, senior vice president for Information Resources’ Protein Practice. “They’re decreasing beef and chicken spending year over year but increasing pork, veal, lamb and exotic spending.”

Meat Not In Freefall

In 2021, 6.5 million first time buyers of PBMA products also spent $150 million more on fresh meat. Oddly, while the alternative meat products sector is attracting new buyers faster than they are losing them, veteran consumers of PBMA are buying less. What’s more, according to IRI, inveterate PBMA eaters – or retained meat alternatives buyersas they are officially identified in research parlance – spent $3.4 billion on fresh meat in 2021, about a million more than in 2020.

The seeming disconnect between the promotional hype of PBMA and its current slow sales was explained recently in the Financial Times by Neil Rankin, founder of steak house and a BBQ restaurant in London, and a chef using plant-based meat.  “The ebbing of the sales surge is down to products which fail to meet taste expectations. There are a lot of people who have moved to plant-based because of sustainability issues, but yet they aren’t really satisfied with what’s out there. Price has also been an issue as plant-based meat makers have struggled to get repeat purchases from customers once the initial excitement has died down.”

Chris DuBois also noted consumers are exhibiting stronger “plant-forward” eating patterns that focus on fruits, vegetables, nuts, seeds, oils, whole grains, legumes and beans. A plant-forward diet, however, does not define one as a vegetarian or vegan.  And it doesn’t forebode a freefall for meat.  Almost three quarters (74%) of Americans consider themselves meat eaters, while 6% call themselves vegetarian and 4% say they are pescatarian. Interestingly, a sizeable 29% of the U.S. population indicated it will give cell-based or cultivated meat a taste, assuming it can be produced to scale and priced reasonably. Which remains to be seen.

Over a third (37%) of Americans want to reduce meat and poultry consumption, according to IRi’s Power of Meat 2022. Significantly, however, 54% of youngsters forming the Generation Z cohort (born 1997-2012 and the oldest of whom are just 25) insist that meat and poultry belong in a healthy, balanced diet – which bodes well for meat producers, processors and retailers going forward for the next 50-plus years.

Ed Note: The focus of this article spotlights just a tip of an iceberg of data available on the subject of PBMA that is presented in the University of Kentucky study and is available online here and from Sosland Publishing’s Trends & Innovations Webinar Series.

Agricultural Business Council Recognizes Dillingham Awardees

Bob Petersen, Jan Lyons, Mike Beam

Chris Daubert, Abner Womack, Bob Petersen

Kansas City’s Agricultural Business Council held its 12th Jay B. Dillingham Award for Agriculture Leadership and Excellence Luncheon at historic Union Station. Receiving the Council’s highest recognition were Jan Lyons, founder of Lyons Ranch in Manhattan, Kansas and Dr. Abner Womack, co-founder of the University of Missouri’s Food and Agricultural Policy Research Institute (FAPRI).

Event Master of Ceremonies and Council Executive Director Bob Petersen called on two local agricultural luminaries in their own right – Mike Beam, Kansas Secretary of Agriculture and Chris Daubert, Dean, College of Agriculture, Food & Natural Resources at University of Missouri – to introduce the awardees.  John Dillingham, Jay B’s son, was on hand to present the “classic” video clip of an interview his father gave to Agriculture Future of America in 2004. The younger Dillingham offered a dramatic perspective on the impact Kansas and Missouri agriculture has had globally: “Every single person on the face of the earth is a potential client of the farmers, livestock producers, processors, transporters et al in our region.” Presenting sponsor of the event was John Deere.

Honoree Jan Lyons, with her husband Frank, established Lyons Ranch in 1977 when they purchased a group of bred heifers and selected few Angus cows from top breeders in the state as foundation cows.  Using A.I. and embryo transfer, the ranch was able to breed to specifications focused on economical and sustainable maternal traits for the herd. 

Lyons got involved in industry organizations early in her career and went on to record several “firsts,” serving as the first woman president of the Kansas Livestock Association in 1994 and as the first president of the Kansas Angus Association in 1981. She was Chairman, Cattlemen’s Beef Promotion and Research Board in 1996 and President of the National Cattleman’s Beef Association in 2004. Beef Magazine named her “Producer of the Year” in 2004 for her leadership during the BSE crisis. In 2008 she was recognized as “Stockman of the Year by Kansas State University.

Lyons encouraged the agriculture industry and community to “plan our own future and prepare for disruption.” And she offered this advice: “Consider the consequences, intended or not, when you enlist government help.”

Dr. Womack is Professor Emeritus of Agriculture Economics at MU. He earned national recognition for his work at FAPRI and his earlier achievements while working at USDA’s Economic Research Service where he developed economic models focusing on the structure of the global food system. At FAPRI he evaluated potential economic consequences of policy options under consideration by legislators. Over his career he has received accolades from many organizations such as these:

• AFBF’s Distinguished Serve Award , 2014

• Top Producer Magazine’s Leaders That Made A Difference: Brave Thinkers, 2013

• USDA’s Secretary of Agriculture Award, 2001

• EU, University of Missouri Fellows Award, 1999

• Council of Agriculture Science & Technology’s Charles A. Black Award, 1999

Closing his remarks, Dr. Womack advised the Council members to “respect what you have accomplished in agriculture.”

Agri-business Has $24.4 Billion Impact On Region

New Study Details Economic Impact Of Ag In Kansas City Area 

KANSAS CITY, Mo. (May 2, 2022) – Agriculture and its related businesses continue to be a driving force in the regional economy, according to an analysis (read here) released by the Agricultural Business Council of Kansas City. 

Using the most recent data available, 66 agriculture, food, and food processing sectors were analyzed to determine their overall contribution to the economy supported by the Kansas City Agribusiness Council. These 66 sectors have an estimated total economic impact of approximately $24.445 billion and support 98,655 jobs in the Greater Kansas City area.

The study looked at the impact of agriculture, food, and food processing sectors of the 20 counties contained in the Greater Kansas City area. The study found those agri-business sectors account for 6 percent of the entire workforce in the area, or 98,655 jobs.

In looking at the components of the agri-business sector, meat processing accounts for over $3 billion in total output.[1]  In terms of employment, landscape and horticultural services leads all categories with a total employment estimated at 8,966 jobs.  Standing in second place with 6,952 jobs is the category for beef cattle ranching and farming, including feedlots and dual-purpose ranching and farming.

“This study illustrates the continuing strong role agri-business plays in this region’s economy,” said Bob Petersen, executive director of the Agricultural Business Council.”   He continued, “These are impressive numbers – over $24 billion in Gross Regional Product and over 98,000 jobs.”

“Agriculture has clearly been a key economic driver for the Kansas City region and it holds great potential for the future as well,” said Secretary of Agriculture Mike Beam. “The Kansas Department of Agriculture appreciates the strong ties we have with the Agricultural Business Council of Kansas City and other ag partners in the Greater Kansas City area, and we look forward to exploring opportunities for continued growth in this region.”

“Here at the Missouri Department of Agriculture, we are thrilled to see the economic impact of agriculture in the Kansas City region,” said Missouri Director of Agriculture Chris Chinn. “The Kansas City area is the hub of the world’s leading animal health corridor, as well as agribusinesses and companies that impact producers and consumers across the planet. We are proud of the role our industry plays in the region, and look forward to continued growth.”

Greg Krissek, CEO of Kansas Corn, noted that Kansas City was founded with agricultural roots and this report solidifies that agriculture and related industries remain the backbone of the Kansas City economy. To put this in perspective, the total estimated agricultural impact of $24.5 billion is larger than the entire economies of 103 counties in Kansas and the estimated job impact of 98,655 is larger than the entire population of all but 5 counties in the state.

The economic analysis was assembled by Tori Laird, agency economist, with the Kansas Department of Agriculture.  In addition to staff support from KDA, funding was also provided by the Missouri Department of Agriculture and Kansas Corn, in addition to the Agricultural Business Council of Kansas City.

[1] Total output for meat processed from carcasses is $2,064 million and output from animals (except poultry) slaughtering is $969 million.

About The Agricultural Business Council of Kansas City

The Agricultural Business Council of Kansas City is an association that advocates growth and awareness of the food, fiber, agri-science and related industries in the Kansas City region.

About the Kansas Department of Agriculture
KDA is the state agency devoted to the total support of agriculture in Kansas. The department works for the entire Kansas agriculture sector, including farmers, ranchers, food establishments and agribusinesses. The department is dedicated to providing support and assistance to make Kansas businesses successful and encouraging more agribusinesses to expand in or relocate to Kansas. 

About the Missouri Department of Agriculture

The Missouri Department of Agriculture is dedicated to the promotion and protection of the state’s agriculture industry. With nearly 100,000 farms on more than 28 million acres of farmland, MDA works to connect farmers with consumers. Missouri’s family farms are committed to producing a safe and secure food supply for consumers locally and globally.

About Kansas Corn

The Kansas Corn Commission, composed of a nine-member, farmer-elected board, focuses on strengthening and expanding foreign and domestic markets for “corn in all forms.” Building infrastructure and demand for higher blends of ethanol fuels, investing in youth and young growers through programs focusing on K-12 STEM education and sharing positive information about corn farming and agriculture with consumers to build understanding. The Kansas Corn Growers Association represents more than 1,100 Kansas members on state and national legislative and regulatory issues, and actively works with other organizations to maximize the voice of Kansas corn producers.

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For more information contact:

• For general questions, Bob Petersen (816) 810-5000.

• For technical questions, Tori Laird, agency economist, Kansas Department of Agriculture (785) 564-6726

Honoring Senator Blunt

The Council’s 2022 Mizzou Showcase luncheon focused on expressing appreciation to retiring Missouri Senator Roy Blunt for his support of agricultural research. CAFNR Dean Chris Daubert pointed that, among other things, Sen. Blunt supported Federal funding for CAFNR, including funding for top research areas and Programs of Distinction including: ARS Livestock Genetics, FAPRI, the Center for Agroforestry, the ARS Plant Sciences Center, and the Missouri Water Center.

In his remarks, Senator Roy Blunt heaped acclaim on the region (and his state in particular) for its leadership in agricultural science, innovation and production.   He noted the Missouri River Valley is the biggest, most productive agricultural region in the world. “I am an infrastructure guy,” Sen. Blunt stated, “and the Missouri River Valley region that includes the Mississippi River provides natural, built-in infrastructure.”

It’s the biggest advantage you can have, the senator claimed. The size and reach of this natural waterway system allows Missouri and surrounding states to grow crops faster, transport them quicker and farther and allows margins of profitability to increase.  But, he warned,  the region needs to stay focused on the Missouri River with good policy, strong management, as well as with updated construction and maintenance practices. 

After serving Missouri for almost 35 years as its Secretary of State, as a U.S. Congressional Representative and as its current U.S. Senator, Senator Blunt has left a big footprint on not only the state of Missouri but also on the region as a whole in terms of agricultural development.  

Touching on other advantages the area offers, Sen. Blunt touted, “It’s a good time to be getting an ag degree.” There are a lot of things happening in food science, and from where he was standing the Senator said he and the agriculture industry overall can get in touch with ag experts and scientists at six land grant colleges. All within 200 miles of each other. “The prospects have never been better [for ag students],” Sen. Blunt observed. He added that surveys of folks with ag degrees working in agriculture show that job satisfaction levels are high.

As for world affairs, Senator Blunt offered unique insight from his recent trip to Ukraine. Russia’s designs on Ukraine is more than an imperialistic endeavor. Russia without Ukraine is a sublevel economy – is how he described the situation. So while Ukrainians are fighting for their country, freedom and sovereignty, Russia might very well be fighting for its economic existence. 

Digging Deeper...

According to a study spearheaded by the Greater Kansas City Chamber of Commerce, the immigrant population in the U.S. has helped strengthen America’s labor force. Like just about every other major and mid-major metropolis in the U.S., greater Kansas City is facing serious workforce shortages. “It began well before COVID-19 disrupted our economy,” says Joe Reardon, president and CEO, of the Chamber.  As baby boomers retire, younger immigrants are filling critical gaps in the market. The Chamber is engaged an all-out effort to marshal the region’s assets across the entire community – businesses, consultants, educators, policy makers, church groups, social services and health and agriculture – to welcome immigrants, refugees and other newcomers to grow the region’s globally competitive workforce. The initiative is called Welcoming KC.  Dennis McLaughlin, McLaughlin Writers LLC – Sources: Wall Street Journal, April 16, 2022; Welcoming KC, Greater Kansas City Chamber of Commerce, 2021; The Future of Equity in Cities, 2017, National League of Cities.

Making Greater Kansas City A Welcoming Destination

The phrase – think globally, act locally – is thought to have been coined in 1915 by a Scottish urban planner and social activist, Patrick Geddes, when he published Cities in Evolution. Another Scotsman, Niall Ferguson, historian, writer and columnist, wrote in his 2010 book – The Shock of the Global – that the concept of thinking globally and acting locally really took hold of thought leaders from business, government, education et al in 1970s. “It was the 1970s that introduced the world to the phenomenon of globalization, as networks of interdependence bound peoples and societies in new and original ways,” observed Ferguson.

The 1970s saw the breakdown of the postwar WWII economic order, the advent of floating currencies and free capital movements, Ferguson said. Non-state actors rose to prominence while the authority of the superpowers diminished. The Shock of the Global examines the large-scale structural upheaval of the 1970s that tore down standard frameworks of national borders and superpower relations, revealing an international system in the throes of enduring transformations. 

A recent article in the Wall Street Journal (April 16, 2022), however, suggests a good piece of the construct of globalization, as it has developed over the last 30 years, could be unraveling. After Russia’s invasion of Ukraine, de-globalization has been spoken of, in some circles, as inevitable. Comparisons to global events in the world 100 years ago abound. “The world could be in for something like what happened just over a century ago, when World War I, the Russian Revolution and, yes, a global [flu] pandemic provoked countries to turn inward,” the WSJ reported. But the article went on: “Just as the path toward a more globalized world isn’t inevitable; however, neither is globalization inevitably going into retreat.”

But there might be other changes to globalization’s dynamics. The pandemic-induced shortages and the Russian invasion illustrate how over-reliance on a single country’s production – such as microprocessors or natural gas – can be dangerous. “Perhaps there will be a recognition that globalization is neither a fait accompli nor a magic wand that can in and of itself lead to a more prosperous future,” said Justin Lahart, the author of the WSJ piece. 

Thinking Globally

Heady stuff that maybe ought to be left to elites at Davos doing whatever it is they do – because we all know the real reason why earthlings in the 1970s were starting to think more globally. In January 1970 Boeing Company certified its iconic 747 jet liner for commercial travel. It was the world’s first wide-body, long-range jumbo aircraft. Boeing’s original customer, Pan American Airlines, pioneered a new era of passenger flight that reduced seat costs by 30%, thereby democratizing air travel.  [Full disclosure: This is conjecture on the part of this writer – but as a former summertime Boeing employee back in college, I am proud of the company’s contribution to globalization.]

Thousands of Americans, like folks in Keokuk, Iowa, for example, who had never even been to relatively-nearby Chicago, could now travel to the capitols and major cities of Europe and Asia. They were also bringing home a novel realization and appreciation for the rest of the world. In other words, Thinking Globally.

Acting Locally 

Americans, though, weren’t the only people discovering new worlds. Millions of Europeans, Asians, Africans, Middle Easterners and South Americans visited the United States. American travelers took  pictures, created memories, made entries in their diaries and then went home. But people from around the world, it seems, made plans to return to the U.S., and stay. 

Immigrants have had a multi-billion-dollar impact on the Kansas City regional economy every year, says Joe Reardon, president and CEO of the Greater Kansas City Chamber of Commerce.  “But worth even more is the human impact,” he asserts. “They start small businesses, bring innovative ideas, and become active and passionate members of our community. New faces become old friends, and we are all better for it.”   

Granted, Digging Deeper is taking literary license to apply the “think globally, act locally” trope to herald the Chamber’s efforts to make Kansas City a designated globally Welcoming City. “We know that by using all the assets across our entire community,” says Reardon, “we can welcome immigrants, refugees, and other newcomers to grow the region’s globally competitive workforce.” In other words, Acting Locally.

Welcoming Kansas City

The Greater Kansas City region has become more diverse over the last 25 years. The immigrant population increased from 33,000 in 1990 to more than 150,000 in 2018. Immigrants are an important part of our economic and cultural fabric, working in a variety of industries and establishing strong roots in the community as homeowners and parents of U.S.-born children. “Neighborhoods in Northeast Kansas City and Central Avenue in Kansas City, Kansas own their survival to immigrants and refugees,” says Greg Valdovino, Vice President of Diversity, Equity, and Inclusion of the KC Chamber. “In Kansas City, 8.7% of all immigrants are entrepreneurs, making them not only good neighbors but contributors to our economy.”

At a time where the general population in the metropolitan area grew by 40 percent, the immigrant population increased by more than 300 percent. That’s why the Greater Kansas City Chamber of Commerce has developed an omnibus action plan that reflects the values of welcoming and inclusion “to ensure everyone feels as though Greater Kansas City is home.”

This reflection has driven the development of the Greater Kansas City Welcoming Plan. “A welcoming plan is a roadmap that helps identify key priorities,” says the Chamber. “By bringing together the government, business, and nonprofit sectors,” officials say, “we created a roadmap that identifies the programs, policies, and activities needed to accomplish our goals of being an inclusive community and Certified Welcoming.”

Kansas City’s population remains predominantly white and black. While the city lost white residents in the 1990s, it gained residents of other races and ethnicities. Immigrants have contributed to the changing profile of the city suburbs and region, with the number of foreign-born residents more than doubling in the 1990s. The Greater Kansas City Chamber of Commerce (GKCCC) considers the area’s  greatest asset to be its people, no  people matter what their background is or where they’re from.  “In order to compete for the best and diverse talent, we have to be more culturally attractive,” says Valdovino. “Younger generations are getting used to diversity and inclusion, they want to live and work with people that look different than them.”

A mantra heard at GKCCC is that the region is stronger when everyone has the opportunity to contribute and succeed. Notes Reardon: “The economic and social benefits of being a welcoming community are clear, and it’s in that spirit we will keep Greater Kansas City a healthy and vibrant community for everyone.” The plan lays out a framework to proactively address and engage a changing community by bringing together key regional  leaders to learn more about current demographics, consider the implications of demographic changes, identify priorities for action, and work together to develop new policies and programs. The Chamber enlisted 40 additional local partnering organizations to draft a plan to make the region friendly and open to immigrants, refugees, and newcomers from other cities, states, and countries. 

Here’s The Plan

At the core of the Plan are several values that GKCCC has identified as essential components to the Welcoming KC blueprint.

VALUE – Resiliency and Growth: “We believe in economic growth that leverages our diversity. By capitalizing on all talents, we help our communities withstand crises. We embrace and celebrate the resiliency of individual community members and of our community as a whole. The Greater Kansas City region strives to be a place where all can thrive.

VALUE – Racial Equity and Belonging: “We believe the various backgrounds, cultures, and experiences of our region’s population make us a more vibrant, connected, and creative community. Advancing racial equity and belonging in Greater Kansas City requires a long-term commitment on everyone’s part. It’s not enough to invite people to the table -- we need to advance inclusion at all levels. 

VALUE –  Opportunity In the Greater Kansas City Region: “We open doors to education, language learning, health, employment, and other opportunities to help everyone achieve their fullest potential.”

VALUE –  Connection and Cohesion: “No one succeeds in isolation; together, we can decrease biases and stereotypes, have rich cultural experiences different from our own, and solve tough problems through collaboration and creative problem-solving. We can see each other as good neighbors. We are so much better together.”

But values need to be articulated as goals, which need strategies for reaching them. Here’s how GKCCC is going about that.

GOAL –  Empower Racially and Ethnically Diverse Residents With Education and Access to Civic Life: “Identify organizations or individuals with experience and expertise on anti-racism, immigration systems, and equity and inclusion and connect them with local governments to provide professional development opportunities for civil servants.”

GOAL –  Create, Support and Promote Opportunities for All Residents To Build Trusted Relationships: “Enlist community leaders and organizations to work with immigrants and refugees to provide education and information on the history of race and racism in the United States and  to address anti-Blackness, power, privilege, and oppression, as well as the ways in which all residents are impacted by racism.”

GOAL – Create Equitable, Inclusive Economic Development for the Region:  Develop workforce  systems and programs that are accessible to immigrants and refugees; breakdown barriers that limit opportunities for success for immigrant and refugee entrepreneurs. Regional economic development services collaborate to address barriers for immigrant and refugee entrepreneurs.

GOAL – Create a Welcoming, Inclusive Workplace Environment:  Provide culturally and linguistically appropriate education to immigrants and refugees on workers’ rights and workplace safety; encourage  local businesses to diversify their workforce, including support to ensure compliance with visa requirements and re-credentialing. 

GOAL – Prepare and Support All Students, including Immigrants and Refugees for the Workforce: Create twilight schools in the community; provide GED/HiSet and trade/vocational classes at no cost; ensure paid internships, scholarships and financial aid programs are accessible to racially and ethnically diverse students, including immigrants and refugees. 

GOAL – Commit to Immigration Integration and Economic Mobility: Prepare immigrants and refugees to enter certification programs through trade/ vocational classes by offering them at a variety of times and locations; old on-site English learning classes at employment locations; expand the Kansas City Public Library RISE program to ensure the services it provides are accessible throughout Greater Kansas City. 

GOAL – Create Equitable Educational Outcomes for Racially and Ethnically Diverse Students: Identify, promote and incorporate proven family engagement strategies that focus on the unique needs of racially and ethnically diverse students, immigrants and refugees; ensure early childhood education is accessible. 

GOAL – Create a Welcoming and Inclusive Climate Attractive to Racially and Ethnically Diverse Residents:   Promote the arts and cultures of racially and ethnically diverse residents; ensure arts and cultural programs and services celebrate the contributions of immigrants, refugees and racially and ethnically diverse residents; ensure government communication materials reflect and celebrate the diversity of the community. 

Learn More

The Greater Kansas City Chamber of Commerce put together a leadership team of key stakeholders from the Chamber and the Kansas City region – including REACH Healthcare Foundation, Communities Concerned for Immigrants and Refugees/Vibrant Health and Shabbir Advisors to develop Welcoming KC. Over an 18-month period, GKCCC received input from consultants at Welcoming America, Decatur, Illinois, www.welcomingamerica.org. Additionally, the plan has been informed by input from community leaders, government officials, community members directly impacted by the plan, and the public at large.

For an in depth and detailed look at GKCCC’s welcoming KC read the full report here.

Did You Know?

The National League of Cities (NLC), located in Washington, D.C. is the nation’s leading advocacy organization devoted to strengthening and promoting cities as centers of opportunity, leadership, and governance. Through its membership and partnerships with state municipal leagues, NLC serves as a resource and advocate for more than 1,900 cities and towns. NLC, like the GKCCC, also recently (2017) published a detailed report on how cities are gearing up  to promote equity and diversity in municipal settings.  Future of Equity In Cities is available at www.nlc.org.

But did you know NLC was first founded in 1924 as the American Municipal Association in Lawrence, Kansas by a group of ten state municipal leagues seeking greater coordination and representation in national affairs. In 1947, the organization opened its membership to individual cities with populations of 100,000 or more. That membership threshold was gradually moved downward, and in 1964, to signal the organization's growing emphasis on cities as members, the American Municipal Association changed its name to the current NLC. By 1977, the population requirement was eliminated.

Longtime Top Gun for Kansas Senators Charting New Course

U.S. Senator Roger Marshall, M.D., announced the upcoming departure of his general counsel Chad Tenpenny. Tenpenny is the only person to have served on the staff of senators Bob Dole, Pat Roberts and Marshall. In May, after nearly twenty-four years of service to Kansas as a staff member in the U.S. Senate, Tenpenny will transition to the private sector. Tenpenny plans to build a law practice that focuses on federal, state and local government affairs, general counsel services and political consulting. 

“Chad has provided steady and strategic advice and counsel to me in my first year and a half in the U.S. Senate,” said Sen. Marshall.  “He understands the Sunflower State better than anyone; Chad knows how to work behind the scenes to accomplish positive results for all Kansans,” noted the senator.  “Chad is loyal, dedicated to his job, and will be missed by all of Team Marshall. I offer congratulations and wish him the best of luck in his future endeavors.”  Said Tenpenny, “Serving Kansas and three outstanding and hard-working Senators has been an absolute privilege. Developing friendships with Chairman Roberts, Senator Marshall, fellow staff and community leaders in all corners of our state as well as D.C. has been a true blessing. I look forward to building on this wonderful experience as I transition to the private sector.” 

Senator Pat Roberts had this to say about his longtime state director and chief of staff: “The people of Kansas know and respect Chad and depend on him as a direct link to the Federal Government. His steady dependable leadership in the State has been a gift to me and to all Kansans over the years. Chad has been out there riding shotgun, covering all 105 counties, with me since my early days in the Senate. We covered almost every inch of the State, from the Cimarron National Grasslands in Morton County to the eastern border in Wyandotte County.”

Tenpenny began his public service career as an intern for Senator Dole. After earning both his undergraduate and law degrees at the University of Kansas, Tenpenny joined Roberts’ Washington, D.C. staff focusing on tax and international trade issues. For more than two decades Tenpenny served Senator Roberts in a variety of roles including as State Director and Counsel, and ultimately as his third and final Chief of Staff. Since 2021, Tenpenny has served as Senator Marshall’s General Counsel.

Highlights of Tenpenny’s senate service include involvement in the effort to permit and fund construction of the South Lawrence Trafficway, accompanying Roberts on a trade mission to Havana, Cuba where they met with Fidel Castro, and serving both Roberts and Marshall in the effort to thoroughly vet and confirm presidential appointees including federal judges. Tenpenny also played a key role in four successful U.S. Senate campaigns.

Outside of his work in the senate, Tenpenny manages a small family farm in Williamstown and maintains a Lawrence rental property business. He resides in Leawood with his two high school age daughters and wife Chelsea Good. 

Latest News & Updates in KC Agriculture - April 2022

Developments

ADM, a global leader in sustainable human and animal nutrition, announced it is supporting  Missouri Farmers Care Foundation’s (MFCF) efforts to alleviate childhood hunger while highlighting Missouri agriculture. With this support, ADM and Brownfield Ag News are serving as presenting partners for the 2022 Drive to Feed Kids. The contribution by ADM will provide the equivalent of 500,000 meals to food insecure families throughout Missouri.

FCS Financial recently selected 35 recipients for its Scholarship Program who will each receive a $1,500 scholarship to assist with the cost of higher education. Since 2004, nearly $775,000 has been distributed through the FCS Financial Scholarship Program. The program is designed to encourage and support higher education for children and grandchildren of FCS Financial members. “FCS Financial’s Scholarship Program provides essential funds for Missouri’s youth who demonstrate academic and community leadership,” says David Janish, CEO. “As a cooperative, we are dedicated to supporting our rural communities and the next generation of leaders. This year’s recipients will no doubt prove to be valuable resources for the future of rural Missouri and agriculture.” 

A forecast from CoBank says consumers may reduce their beef consumption as retail beef prices rise, reports  Agri-Pulse Communications (April 29, 2022).  “The sharply higher costs for feed, energy and labor have yet to fully impact wholesale and retail meat prices, but that will soon change. And as consumers notice their dollar is not going as far as it used to, they may trade down at the meat case, with chicken being the primary beneficiary,” said Brian Earnest  lead animal protein economist for CoBank.

The Kansas Department of Agriculture reported the state exported $5.35 billion in agriculture goods in 2021, an increase from $4.04 billion in 2020. The total included $2 billion in meat and $1.5 billion in cereals, with two-thirds of all exports going to Mexico and Japan.  The surge in 2021 represented a 32% increase in Kansas agricultural exports, which also included vinegar, beverages, dairy products, milling products, fats, vegetables, flour and starch. It was the first time Kansas agricultural exports topped $5 billion in a decade.

Kansas Department of Agriculture, in conjunction with the USDA’s Animal and Plant Health Inspection Service, has identified highly pathogenic avian influenza (HPAI) in a commercial turkey flock.  KDA is working closely with USDA–APHIS on a joint incident response at the affected premises in McPherson County. According to KDA’s animal health officials, the turkey farm increased its biosecurity in early March and increased the monitoring of their flock. Upon noticing clinical signs of HPAI in their birds, they immediately contacted KDA. The affected premises was placed under quarantine and the birds will be humanely depopulated and disposed of in an approved manner to prevent the spread of the disease. In addition, KDA will be establishing a 20-km surveillance zone around the infected premises, and other farms or properties with poultry that fall within that zone will not be allowed to move birds or poultry products on or off their property without permission from KDA. The animal health team is working to locate all poultry owners in the area to ensure they know the symptoms of HPAI and are taking critical steps to protect their birds. 

Producers are increasingly worried about supplies of key inputs for the upcoming growing season, pushing a measure of farmer sentiment to the lowest point since the early days of the COVID-19 pandemic. This concern is behind the Ag Economy Barometer’s drop in farmer optimism of about 10% in March, 36% below the same month in 2021. The indicator, maintained monthly by Purdue University and the CME Group, reflected several factors weighing on the minds of the 400 producers surveyed in mid-March, but chief among them was the Russian invasion of Ukraine. “Concern about the war's impact on input prices and input availability on their farming operations was paramount in the minds of producers responding to the March survey and was a major factor in this month's decline in sentiment,” said James Mintert, director of Purdue’s Center for Commercial Agriculture. The concerns about the future financial situation were also reflected in a pair of questions about future investment plans. Some 62% of producers said their plans for machinery purchases were lower than a year ago; half the respondents offered a similar response one month ago. About 57% of producers said they expect input prices to rise by more than 20%, while 36% have an even more pessimistic view and expect prices to rise by 30% or more.

Farm Journal Foundation is partnering with the Zoetis Foundation to launch a new program to find solutions for relieving student debt in the veterinary industry. The effort’s long-term goal seeks to address shortages of veterinarians to work with farmers in rural areas. The new Veterinary Debt Solutions Program will convene leaders from across the livestock, academic, nonprofit, and veterinary sectors to address barriers that veterinarians face in building long-term careers in rural areas. 

According to recent data from the Association of Equipment Manufacturers (AEM), ag tractor and combine sales in March declined for the first time since July 2021. Total farm tractor sales in the U.S. fell 21.1% in March compared with a year ago. Sales for self-propelled combines also dipped 10.2%, with 343 machines sold. One area that saw growth was the 100+ hp. 2WD segment, which was up 7%. Curt Blades, AEM’s senior vice president, industry sectors and product leadership, says the sales report was not a surprise. “Inventory levels are down more than 10% in both the U.S. and Canada, and this is the result of supply chain difficulties catching up with this segment of the manufacturing industry.”

Goodyear Tire and Rubber Company is planting a species of dandelion, as it looks to develop a rubber source that can be cultivated in U.S. soils. The tire maker hopes to develop and commercialize a source of natural rubber, planting Taraxacum kok-saghyz, in Ohio this spring. The species, native to Eastern Europe and Central Asia, is one of the few plants the company has flagged as a potential source of tire-quality rubber. "Global demand for natural rubber continues to grow, and it remains a key raw material for the tire industry," Chris Helsel, a senior vice president of global operations and chief technology officer for Goodyear, said in a release. "This is a critical time to develop a domestic source of natural rubber, which may help mitigate future supply chain challenges." More than 90% of the natural rubber produced in the world today is made using latex from rubber trees outside of the U.S., the release stated. The goal of the program is to create a source of latex that can be harvested every six months and grow in the temperate climate of the U.S. Goodyear is working with Ohio-based Farmland Materials on the "multi-year, multi-million-dollar" project, which also has support from the U.S. Department of Defense, the Air Force Research Lab and BioMADE. The rubber produced will be used to produce tires for military aircraft.

NCBA, along with several state affiliates, including Kansas Livestock Association, submitted an amicus brief last week to the U.S. Supreme Court urging them to adopt a limited, clear waters of the U.S. (WOTUS) definition that provides certainty for cattle producers. The brief was submitted because the Supreme Court is hearing a case that challenges the authority of the Environmental Protection Agency (EPA) under the Clean Water Act. While cattle producers are not direct parties in Sackett v. EPA, the case has implications for the livestock industry and will impact the Biden administration’s rulemaking on WOTUS. 

Kansas Corn observed Earth Day by teaming up with over 50 fuel stations across the state of Kansas to offer Earth Day discounts for ethanol fuels. Several independent stations as well as many Casey’s General Stores and 24/7 Travel Stores provided a 22-cent-per-gallon discount on E15/Unleaded 88 fuels during a two-hour time window Friday, April 22. 

In a recent commentary published on the Missouri Farm Bureau’s website, MFB president Garrett Hawkins takes on the issue of eminent domain as it relates to Missouri farmers and landowners who have fought to protect private property rights against private, for-profit companies from using the power of eminent domain without providing a substantial benefit to Missourians. Read the full document at www.mofb.org.

People

Kansas City-based AgriThority®, an agricultural product development company, announces new members of its Board of Advisors composed of globally respected leaders in the agriculture industry. As a specialist in accelerating innovative technologies to commercialization around the world, AgriThority continues to evolve services with the independent counsel of its advisors. Adrian Percy, Ph.D. is executive director of the NC Plant Sciences Initiative at North Carolina State University and Venture partner of Finistere Ventures LLC. With more than 30 years of experience in the agricultural sector, Percy is an advocate of the need for and benefits of modern agriculture. Valdemar Fischer serves as chairman of Syngenta Group LATAM at Syngenta Group in Panama City, Panama. His deep international experience extends from the U.S. and Mexico to Ecuador, Brazil, and Australia. He continues to monitor the agricultural needs and sustainability movement within the EU and around the world.  

Events

After a two-year postponement caused by the COVID-19 pandemic, the American Royal Rodeo returns to Kansas City, May 5-7 at the American Royal Complex. The PRCA-sanctioned ProRodeo will feature bareback riding, steer wrestling, team roping, barrel racing, bull riding and other competitions. More information available here.

Kansas State Olathe will conduct a two-day, interactive workshop as an introductory course on the regulatory aspects of animal drug and vaccine development. The workshop provides attendees with an understanding of the veterinary drug approval processes. Content is designed for those tasked with developing and maintaining an animal health company's product portfolio and with a company's regulatory strategies. The workshop will take place May 11-12, 2022. More information available here. 

The Angus Foundation invites golf and Angus enthusiasts to enjoy a day on the green at its annual Golf Tournament, held in conjunction with the 2022 National Junior Angus Show in Kansas City, Missouri. The event, which will help further the Foundation’s mission of supporting Angus youth, education and research, will be held on Tuesday, July 5 at the Shiloh Springs Golf Club in Platte City, Missouri. Registration will begin at 6:30 a.m., with a shotgun start at 7:30 a.m. Sponsorship options are available to state and regional Angus associations, individuals, businesses, farms and ranches. There are different promotional opportunities at eight sponsorship levels. The sponsorship deadline is June 3. Player registration is open until June 20. Adult registration is $100, and National Junior Angus Association (NJAA) member registration is $75.

Kansas City Recognizes Ag Day - March 22

Council Board Member JJ Jones and Executive Director Bob Petersen attended the Kansas City, Missouri, City Council meeting on March 10, 2022, where they officially recognized March 22, 2022 as Kansas City Ag Day, and the month of March 2022 as Kansas City Ag Month.

Council Vice Chair Ron Seeber joined the meeting virtually sharing the following remarks to highlight the work of the Agricultural Business Council of Kansas City.

Thank you, Councilwoman Bough. Thank you to your colleagues on the Council and to Mayor Lucas.

My name is Ron Seeber and I serve as the elected vice chair of the Agricultural Business Council of Kansas City. In my paying job, I am president of Kansas Grain and Feed Association, Kansas Ag Retailers, and Renew Kansas. The Agricultural Business Council of Kansas City brings together businesses on both sides of the state line in this region and we are grateful for the recognition you bestow on us today.

Agriculture and agribusiness in this region continue to be a dynamic and exciting sector. Just three weeks ago we hosted a forum on ag innovation and technology. Some of the topics included GPS applications, auto-steer tractors, drones, remote sensing, and robotics. We are seeing a wonderful wave of innovation fueled by entrepreneurs and existing technology companies.

It is a very exciting time to be part of agribusiness and Kansas City continues to be one of the nation’s leading agricultural hubs. It is up to all of us to look for ways to nurture and foster an ecosystem that encourages innovation.

It is also an exciting time to be part of Kansas City and we welcome the Big 12 Basketball tournament and the thousands of guests it brings to our rejuvenated downtown. What a difference 20 years makes.

We thank you and your predecessors for their vision that brought us the Power and Light District, T-Mobile Center and all of the economic activity that this has stimulated. We are thankful for the re-investment in infrastructure, even if a drive down Main Street takes a few extra minutes. We look forward to a new KCI that will further enhance our position as a key national hub.

Let me close with two points:

1. Agriculture continues to be a really big deal in Kansas City.

2. We are proud to be part of a City with a vision and the great renaissance it is creating.

Digging Deeper...

It was only four months ago that plant-based and cell-cultured meat producers seemed giddy about their prospects. Impossible Foods was telling Forbes Magazine about a likely IPO in 2022 (see Digging Deeper, AgBizKC newsletter December 2021). Two years earlier, Barclays Bank was suggesting the market for plant-based and lab-made meat could climb to $140 billion by 2029 as innovators in the space capture 10% of the $1.4 trillion global meat market. But by late last month (February 2022), the fortunes of alternative-meat “meats” were taking a tumble. “After years of spectacular growth, the category has in fact stalled,” said Maple Leaf Foods, Inc., COO, Curtis Frank, on the company’s 2021 Q4 earnings call to financial markets last month. 

Dennis McLaughlin, McLaughlin Writers LLC – Sources: Megan Poinski, Food Dive, February 28, 2022; Daily News, Food Industry Network, March 8, 2022;  Joe Fassler, The Counter, September 2021;  Forbes Magazine, November 2021;  International Food Information Council, Food Insights, 2021.

Is Alternative Meat Over Cooked?

A slow fiscal quarter or even a disastrous one does not necessarily portend a bleak outlook for a company or an industry. But in the case of alternative meat makers, whose fortunes were flying high in 2020, when sales grew 45% over 2019, there is cause for concern. Earnings disclosures for Q4 2021 from industry players like Beyond Meat and Maple Leaf Foods showed flat or negative growth, reported Megan Poinski in Food Dive’s February 28 edition. “And no clear way to jumpstart sales,” she added.

In his February earnings call to Wall Street, Beyond Meat president and CEO Ethan Brown said, “The key question is whether this reduced-growth rate is an aberration or a harbinger of things to come.” Brown’s company wasn’t the only plant-based meat company with diminishing growth in Q4 2021. Maple Leaf Foods disclosed a sales decline of 3.7% for its Greenleaf Foods division, which includes plant-based meat brands Lightlife and Field Roast. Maple Leaf CEO Michael McCain said his company is reallocating capital to be consistent with a much smaller growth rate than anticipated.

Brian Holland, managing director and senior research analyst at Cowen, a New York-based diversified financial services firm, told Food Dive that while he found companies' “estimates to be aspirational, the slowdown has been much faster and more abrupt than expected.” The alternative meat segment, Poinski noted, was intended as a sustainable way for consumers to get meat-like protein without eating meat. But faux meat products serve a customer’s choice not a need. And, Holland said, their creators have failed to capture a majority of consumers.

Plant-based meat companies are bogged down. As growth in the category is decelerating, Holland maintains, competition is increasing. Beyond Meat is seeing both its market share and profit constricting. Add the overcast of inflation, supply chain difficulties and the aftermath of a global pandemic, and things are just getting more challenging.

How is Cell-Based Meat Doing?

In May 2019, about half a year before the COVID-19 outbreak, analysts at Barclays Bank determined the combined market for alternative meat (both plant-based and cell-cultured) had the potential to reach $140 billion (yes, billion) by 2029 or thereabouts. The projection assumed faux meat could capture about 10% of the $1.4 trillion global meat industry. “While lab-based meat is still likely several years away from hitting supermarket shelves,” Barclay analysts said at the time, “plant-based protein continues to gain ground versus its animal-based counterpart, and we expect this trend to continue for the foreseeable future.” 

Earlier this month, March 8, 2022, CDN Newswire, a worldwide press release distribution platform, published an optimistic study, Cultured Meat Market, from India-based Data Branch Market Research (DBMR). Its bottom line is the global cultured meat market is growing at a Compound Annual Growth Rate (CAGR) of 15% in the forecast period of 2022-2029. At the same time, pioneers of lab-grown meat claim costs for cell-cultured are decreasing drastically – from close to $350,000 a pound to $11.36 a pound according to a recent study (Fall 2021) from CE Delft, a Dutch consulting firm.  Cell-cultured meat could be on peoples’ plates in five years, ventured the BBC in a broadcast commentary last fall. 

Is there something wrong with this cheery picture? There is: potentially monstrous, unseen, unreported and understated costs.  A study released in September 2021 by The Counter, an independent, non-partisan, nonprofit news service investigating forces, trends and influences shaping how and what Americans eat, warned that confidence in the prospects of cell-cultured meats could be overstated. And enthusiasm for its potential to become humanity’s mainstream, predominant source of protein is probably ill-conceived. Entitled Lab-Grown Meat Is Supposed To Be Inevitable; Science Tells A Different Story, the lengthy piece states that “splashy headlines have long overshadowed inconvenient truths about biology and economics. Now, extensive new research suggests the industry may be on a billion dollar crash course with reality.” 

At the risk of dismissing the astounding accomplishments and advances in bioscience, biochemistry, nutrition engineering et al that have created and cultivated meat in the laboratory, it should be noted that there seems to have been unrealistic assumptions in estimating the expense and complexity of designing and building bio-manufacturing facilities. So says The Counter. In its September 2021 article, it reported that the Good Food Institute (GFI), a nonprofit representing the alternative protein industry, earlier in 2021 had published a techno-economic analysis (TEA) that projected the future costs of producing a kilogram of cell-cultured meat. Prepared independently for GFI by Dutch research consulting firm CE Delft, and using data provided by 15 private companies, the document showed how addressing a series of technical and economic barriers could lower the production price from over $10,000 per pound at the time to about $2.50 per pound over the next nine years. A challenge-worthy 4,000-fold reduction in costs.

With TEA findings in hand, GFI lobbied for a huge public investment. It argued that forward-thinking governments should increase public funding to research and develop cell-cultured meat “to seize the opportunity and reap the benefits of becoming global leaders” in cultivated meat technology. In late April 2021 The New York Times published a piece – Let’s Launch a Moonshot for Meatless Meat.” Author Ezra Klein, a co-founder of Vox and a NYT columnist wrote that the U.S. government should invest billions to improve and scale both plant-based meat alternatives and lab-cultivated meat. 

But Wait

There has been skepticism about the feasibility of this moonshot venture.  Among dissenters, one voice has stood out. Paul Wood, who has a PhD in immunology and served as the executive director of global discover for Pfizer Animal Health, told The Counter that the idea of lab-cultivation of animal protein was “old news, no matter how science-fictional it sounded.” Drug companies have used a similar process for decades, and Wood knows it firsthand because he has been involved in it. He also explained the process is extremely technical, resource-intensive and expensive. Dr. Wood also noted he didn’t understand how costly biomanufacturing techniques could ever be used to produce cheap, abundant human food.  Here’s what he and skeptics are pointing out:

• With a projected price tag of $450 million, one hypothetical cultured meat factory would cost about the same as a traditional slaughterhouse – but produce a lot less meat. It’s a complex, precise, energy-intensive process, but the output of this single bioreactor train would be comparatively tiny. The hypothetical factory would need to have 130 production lines with more than 600 bioreactors all running simultaneously. Nothing on this scale has ever existed. So if the goal is to switch to cultivated meat by 2030, then construction better get started now. If cultured protein is going to be even 10 percent of the world’s meat supply by 2030, it will need 4,000 factories. 

• All of those facilities would also come with a heart-stopping price tag: A minimum of $1.8 trillion, according to Food Navigator, Europe’s leading outlet for news and analysis for the European food and drink industry.

• Even GFI’s own numbers suggest that cell-cultured meat may never be economically viable, even if it’s technically feasible. Current costs are 100 to 10,000 times higher than commodity meat, according to the CE Delft analysts.

• Paying off a $450 million facility in an investor-friendly term of four years, GFI’s analysts found, would mean adding $11.25 per kilogram to the cost of cultured meat. But with a repayment term of 30 years, the proposed facility could reduce its capital expenditure cost to about $1.50 per kilo of meat produced. The problem is that traditional investors are unlikely to relax their repayment terms so dramatically. They’re in it for the money. But the GFI report points out that investors concerned with social causes might be more patient. Their idealism might make them aware of potentially huge payouts down the road. And they may prove to be more flexible. If investor altruism proves to be in short supply, GFI makes clear that the remaining option is for “government bodies” and “non-profit funders” to shoulder the burden. This can be read as a concession: Cultured meat may never reach price parity on its own terms. It will likely need public or philanthropic support to be competitive.

There are signs that cultured meat startups have tempered their expectations, notes The Counter’s deputy editor Joe Fassler.  “The industry’s early, heady days were flush with optimism. Co-founders spun visions of giant bioreactors effortlessly cranking out meat, and investors had dollar signs in their eyes—even displacing a modest fraction of the trillion-dollar global meat industry could mean making billions. Now, despite GFI’s soaring rhetoric, some companies are quietly—or overtly—planning for a much more modestly disrupted future.” The most animated cheerleaders of cultured meat would have you believe the required innovations have advanced forcefully and are available. 

But the truth is this, says Fassler, “A sequence of as-yet-unforeseen breakthroughs will still be necessary. We’ll need to train cells to behave in ways that no cells have behaved before. We’ll need to engineer bioreactors that defy widely accepted principles of chemistry and physics. We’ll need to build an entirely new nutrient supply chain using sustainable agricultural practices, inventing forms of bulk amino acid production that are cheap, precise, and safe. Investors will need to care less about money. Germs will have to more or less behave. It will be work worthy of many Nobel prizes—certainly for science, possibly for peace.”

Editor’s Note: The Counter’s “Lab Meat is Supposed To Be Inevitable. Science Tells A Different Story,” September 2021, is a recommended read. It is an exhaustingly researched, non-partisan, balanced report. It is available at https://thecounter.org.