Experts Brief Council on 2023 Farm Bill

(Left to right) Chris Klenklen, Dr. Pat Westhoff, Joel Leftwich, Sec. Mike Beam, Dustin Johansen

In their presentations previewing budget projections for the 2023 Farm Bill, Dr. Pat Westhoff, director of the Food and Agricultural Policy Research Institute at the University of Missouri, and Joel Leftwich, chief strategy officer for the Kansas Farm Bureau, provided an in-depth and entertaining look at the process of creating a Farm Bill. And getting it passed. Both noted that lawmakers tended to think drawing up a Farm Bill was easier said than done. With a drollness (perhaps picked up from his days as deputy staff director for Senator Roberts), Leftwich indicated many Ag Committee members were nonplussed by an urgency to get a bill passed before the five-year fiscal deadline.

Dr. Westhoff mentioned the key to creating a Farm Bill was not just writing one, but scoring it. “So, some key issues in the farm bill debate,” he said, “include considerations such as the budget target for the new bill and determining the net change in spending from the current bill.” Other topics for discussion and debate center on increasing the budget or cutting it to reduce the deficit. He also emphasized that “new budget projections by the Congressional Budget Office (CBO) will provide a point of reference for the debate over the next farm bill.” If the debate follows the pattern of recent farm bills, he explained, budgetary concerns are likely to be front and center.

In recent reports, Dr. Westhoff has said the projected annual budget deficit increases from $1.3 trillion this year to $2.3 trillion in 2033, as federal spending increases more rapidly than tax receipts. Social Security and Medicare account for more than half of the $3.7 trillion increase in annual federal spending over the next ten years.

Policymakers in both parties are reluctant to reduce allocations for Social Security and Medicare, and a Republican House does not want to raise taxes. “If the 2023 Farm Bill is expected either to reduce or to have no net impact on the federal budget deficit, any proposal to increase spending in one program will have to be offset by equal or larger reductions in other program spending. Identifying potential areas of budget cuts that a majority of the House, the Senate and the President can all agree upon will be a major challenge.”

While Dr. Westhoff highlighted the budgetary issues the Senate and House ag committees face, Leftwich focused more on the political makeup up of the House and Senate ag committees. Of note, he showed that the GOP House and Senate ag committees had a combined membership of 18 lawmakers with Farm Bill experience. Democrat membership in the House and Senate ag committees included only 11 lawmakers with Farm Bill experience.

Digging Deeper...

Technological developments in agriculture have been influential in driving changes in the farm sector of the U.S. economy. Innovations in animal and crop genetics, chemicals, equipment and farm organization and operation have enabled continuing output growth without adding much to inputs. As a result, even as the amount of land and labor used in farming has declined, total farm output tripled between 1948 and 2019. The latest USDA agricultural census counts 3.4 million producers or “the farmers and workers involved in making decisions on these farms – from planting to harvesting to marketing.” This category could refer to the farm’s owner, a member of the owner’s family, a manager, a tenant, a renter or a sharecropper. Indeed, there are plenty of profiles focusing on farmer and rancher age, gender, size and location of the farm, number of generations working a farm property, and analyses of their productivity, profit, loss and so on. But until just recently there has not been much investigation into farmers’ psyche and character.

Dennis McLaughlin, McLaughlin Writers LLC – Sources: USDA Economic Research Service using data from USDA National Agriculture Statistics Service (Censuses through 2017) and USDA’s Farms and Land in Farms: 2021 Survey (updated February 2022);  Agricultural Retailers Association’s 2022 ARA Conference & Expo (December 2022); Aimpoint Research, Columbus, OH.

New Research Dives Deeper Into Farmer Psyches

It's time to move beyond conventional stereotyping when defining who a farmer is. That was the message coming out of the Agricultural Retailers Association’s 2022 ARA Conference & Expo (December 2022), attended by more than 600 ag retail industry professionals. “Ag retailers are expected to serve customers in new ways, be leaders in technology and find higher efficiencies in their business,” said Margy Eckelkamp, editor of Farm Journal’s The Scoop.

The job of agricultural retailers and dealers is getting tougher. It’s complex enough to deal with Business 101 matters like inventory, profit margins, supply chains, inflation and employee issues. Now, say consultants in the ag retail field, their customers are changing. As technology gets a firmer grip on agriculture operations, Future Farmers of America may be more recognizable from their wearable electronic trackers, sensors and monitors than the iconic FFA blue jackets.  

ARA board chair Ian McGregor with The McGregor Company, Warden, WA, said in his keynote address, “As trends like consolidation and technological innovation continue to change the dynamics in our industry, we must be looking ahead to collect the critical tools and knowledge needed to meet the needs of farmers for years to come.”

Other ARA speakers and panelists echo similar sentiments. Farmers play a significant role in the economy, even though farms account for less than one percent of the value added to the national GDP, farm products contribute heavily to other parts of the economy – including manufacturing, restaurants, retail, notes the Bureau of Economic Analysis. “Understanding who they are and why they grow what they do is integral to understanding their role in the overall in the U.S. and global economy.”

A Different Slant

Brett Sciotto, CEO, Aimpoint Research, presented new findings on who the future farmer-customers will be and how they will drive changes in ag retail. Aimpoint, based in Columbus, OH, is a global, strategic intelligence firm that specializes in in agri-food.  

U.S. farms continue to consolidate, with 15% of crop farms controlling 80% of output. Last year as it studied the situation, Aimpoint uncovered a unique perspective on farmers:  Some of the most important indicators of farm financial success may not be the size of the farm, but the personality type, skill sets and ambition of the operator. “As the agriculture industry continues to transform,” Sciotto said, “we set out to answer two very important questions. Who are farmers of the future and what will they require of us?”

Sciotto explained it is important to look at both internal and external factors impacting farmers of the future because both play a role in determining future success. “Some farmers think success is dictated by external factors like commodity prices and government regulations, while others think they will succeed no matter what is thrown at them.”

Aimpoint developed five farmer profiles describing innate traits and characteristics that played a role in determining future success: 

• Independent Elites: Representing about 20% of the universe, they are successful, smart and financially sound. They can afford to be early adopters of technology and management practices that give them a competitive advantage. They are innovative, open to change and secure in their knowledge. They see significant opportunity in the current environment and believe success is within their control. Over half expanded their operations over the last couple of years.

• Enterprising Business Builders: Representing about 21% of those surveyed, their highest priority is growth. They are sophisticated marketers, financially healthy and willing to innovate and adopt new technology. This group is confident they can make a profit in any market. They seek advice, best practices and collaboration from anyone who can help make them better operators. They are willing to leverage outside investors and borrowed money to expand their operations.

• Classic Practitioners: Representing 24% of growers, they want to be successful but are struggling. They rely more on safety nets and farm bill programs. They lack the business IQ to get to the next level. They tend to save money rather than invest money.  They are slower to adopt technology and management practices. They are the most loyal to their suppliers of any group. They like the practice of farming more than the business of farming.

• Self-reliant Traditionalists: Representing 22%, they’ve saved money, are short-term thinkers, not planners. They are not expansion-minded, they believe they’ll survive hard times. These tend to be small owner/operators and less educated. They do not value technology or innovation.

• Leveraged Lifestylers: Representing about 14%, they think their profitability is tied to markets recovering and government reducing regulations and providing more supports. They love the farming lifestyle but don’t have the business sense to navigate it. They have all the latest tech and equipment, which adds to the financial pressure. They are short-term thinkers, impulsive decision makers. They understand they could fail if they don’t change, but they don’t know how to do it.

Learn more at www.aimpointresearch.com/thought-leadership/farmer-of-the-future

Agricultural Business Council to Honor Two Local Leaders

Dr. Marty Vanier (Left) and Blake Hurst (right)

KANSAS CITY, MO, March 20, 2023 - The Agricultural Business Council of Kansas City will honor two of the region’s leading agricultural figures on May 18 at a luncheon in the Chamber Board Room in Kansas City’s historic Union Station.  The honorees will receive the Council’s highest award, the Jay B. Dillingham Award for Agricultural Leadership and Excellence.

Agricultural Business Council Chairman Dustin Johansen notes the honorees are champions for agriculture in separate but very key areas in the region. The 2023 honorees are Dr. Marty Vanier, K-State National Agricultural Biosecurity Center, Manhattan, Kansas, and Blake Hurst, owner, Hurst Farms and retired president of Missouri Farm Bureau.

Dr. Marty Vanier, Kansas State University, Manhattan, KS

Dr. Marty Vanier is the director of the National Agricultural Biosecurity Center (NABC) at Kansas State University in Manhattan, KS.  She has deep roots in Kansas agriculture where she grew up on a prominent family ranch in central Kansas that raised commercial and registered Hereford cattle.  In her professional life, she has held several leadership positions in the veterinary pharmaceutical and food safety areas.

She received her undergraduate and graduate (D.V.M.) degrees from Kansas State University.  She began her career in Washington, DC, with the Animal Health Institute and later joined USDA’s Food Safety Inspection Service as deputy director for Information and Legislative Affairs.  In 1987, she returned to K-State as part of the Food Safety Consortium in the University’s Department of Animal Sciences and Industry.  She later served for seven years as executive director of the Kansas Agricultural Alliance. 

In June of 2003 Dr. Vanier moved from the Department of Animal Sciences and Industry to the KSU National Agricultural Biosecurity Center.  Later she joined the NBAF Program Executive Office as Director of Strategic Partnership Development.  She returned to the NABC in 2019 as its director.  In that role she directs the development, coordination, implementation and leveraging of a broad range of programs and capabilities addressing diverse threats to the US and world agricultural economies and food supply.  She serves as the liaison between the NABC and national, state and local stakeholders and allied industry groups.

Dr. Vanier has received a number of awards for her distinguished service.  She was awarded the President’s Award in 2002, 2012, and 2014 and the 2009 Veterinarian of the Year Award from the Kansas Veterinary Medical Association.  In addition, in 2017 she was named a Distinguished Alumnus of the University’s College of Veterinary Medicine.  She was honored by the U.S. Army War College in 2017 by being named to the Commandant’s National Security Program.

Blake Hurst, Hurst Farms, Westboro, MO

Blake Hurst retired as president of Missouri Farm Bureau after serving in that role for 10 years. Prior to serving as president, Blake served as vice president, and as a district board member. At Hurst Farms, Blake raises corn and soybeans with his family. He also operates a wholesale greenhouse business with his wife, Julie; daughter, Lee; and sons-in-law, Ryan Harms and Matt Schlueter. The family raises flowers in two and a half acres of greenhouses. Hurst is a free-lance writer, with his essays appearing on Agri-Pulse as well as other national publications.

During Blake’s time as Missouri Farm Bureau President he served on the American Farm Bureau Board of Directors, the Chicago Mercantile Exchange Group’s AMAC, and the FTC Precision Ag Task Force. Additionally, he testified on behalf of Farm Bureau on several occasions at Congressional hearings. He also led statewide coalitions, helping to pass the following initiatives: 2014 Missouri Amendment 1 - The Missouri Farming Rights Amendment, 2019 SB 391 - Standardized the regulation of CAFOs, and 2020 Missouri Amendment 3 – Cleaner Missouri.

“These individuals have had a positive and lasting effect on our community,” said Council Chairman Johansen. “They are strong examples of what a leader can accomplish.”

The event will be held at the Chamber of Commerce Board Room in Union Station beginning at 11:30 a.m. for networking followed by lunch. Visit www.agbizkc.com for more information and to register to attend.

Latest News & Updates in KC Agriculture - February 2023

Developments

Agriculture Future of America has acquired Magnetic Ag — an agriculture-focused digital newsletter distributed through email twice weekly — from Magnetic Ag founder and AFA alumnus, Travis Martin. Since its inception in 2020, Magnetic has grown to serve more than 12,000 active subscribers including agricultural business, technology and policy professionals, alongside agriculture educators, students and farmers. Magnetic is aimed at making agriculture industry news digestible by consolidating news from a variety of industry media into each newsletter edition, making the newsletter a hub for the latest agriculture news. With a casual and catchy writing style, Magnetic shares agricultural business, policy, technology and market news. “Adding Magnetic to AFA’s offerings helps us further serve the industry by developing transformational leaders who find themselves at various stages of their careers,” says Mark Stewart, AFA president and CEO. “Magnetic is a great conduit for equipping agriculture professionals with well-rounded industry news to ensure they are informed.” To subscribe, visit magnetic-ag.com. Contact Becca Frazier, becca@magnetic-ag.com, to learn about news placement opportunities with Magnetic.

After Mexico suddenly moved its GMO corn ban to take effect immediately, the Kansas Corn Growers Association called for a swift response by the U.S. Trade Representative (USTR). KCGA is calling on the USTR initiate a dispute settlement under the U.S.-Mexico-Canada Agreement (USMCA). Earlier this month Mexico officials called for a ban on imports of biotech corn used for certain purposes. The decree indicated the Mexican government would continue to allow imports of biotech corn used as animal feed while exploring substitutes. KCGA and National Corn Growers Association expressed serious concern with the accelerated implementation timeline. Mexico has been the top export market for U.S. corn in four of the past five years, and over 90 percent of the U.S. corn crop is GMO. “Our corn growers need the Mexico market, and Mexico needs our corn. The USMCA is supposed to protect its member countries from unfair trade barriers and that trade agreement must be upheld,” said KCGA President Brent Rogers. “Mexico’s trade barrier banning GMO corn imports is not based on sound scientific evidence. Regulators and health organizations around the world have determined the safety and benefits of GMO crops.”

In his keynote comments opening the USDA’s 2023 Ag Economic Outlook event, USDA Chief Economist Seth Meyer warned that there is still a high level of uncertainty for the U.S. farm economy due to inflation in the U.S and globally, the continuing war in Ukraine, and other challenges.  Nevertheless, he expects the U.S. farm economy to remain relatively strong in 2023. “I think that 2023 is shaping up to be a good year, and that’s following 2022 which was a great year.” In an interview with Agri-Pulse Newsmakers, he explained it’ll be “lower than last year but still going to be above the long-term trend.” Source: Agri-Pulse Communications, February 24, 2023.

The Kansas Department of Agriculture is seeking feedback from Kansans for the 2023 Bluestem Pasture Survey to collect information on native tallgrass pasture use and practices. The survey is administered through the K-State Land Use Survey Center and will be open through March 31, 2023. The Bluestem Pasture Survey provides reliable, accurate information to Kansas ranchers and the agricultural community as a whole. The survey asks about native tallgrass pasture availability, leasing rates, and fencing rates, and should take less than 15 minutes to complete. To participate, click here. For more information contact Dr. Leah Tsoodle, Director, Land Use Survey Center, at LTsoodle@ksu.edu; or Tori Laird, KDA Division of Agriculture Marketing, at  Tori.Laird@ks.gov to receive a written survey or to complete the survey over the telephone.

USDA’s National Institute of Food and Agriculture announced an investment of $70 million in sustainable agricultural projects that integrate research, education, and Extension efforts. The goal is to establish robust, resilient, and climate-smart food and agricultural systems. Several schools and organizations will benefit from the funding. University of Missouri will receive a $10 million grant to address USDA-NIFA Sustainable Agriculture Systems goals on climate-smart agriculture along with strengthening regional bio-economies in rural areas. This project involves a diverse team of 34 collaborators from 17 states. The project will train farmers to produce cover crop seed and be a catalyst to further adopt cover crops as a climate-smart practice, helping farmers adapt to climate change. Through transdisciplinary research, Extension, and education activities, the project will develop a comprehensive national program on cover crop varietal improvement, leading to increased use of regionally adapted varieties.

Nestlé, the world’s largest food group, says the price of staple items will continue to rise this year. The company said it increased prices by 8.2% in 2022, but said this was not enough to offset a rise in its own costs.Price increases will be “very targeted” and only implemented where “input cost inflation justifies it,” says Nestle. But it did not disclose which of its 2,000 brands would be affected.

Kansas State University recently announced, that it was awarded $25 million through the Kansas Department of Commerce’s Challenge Grant Program that will be applied to an infrastructure project underway at the College of Agriculture. The Kansas Legislature challenged state educational institutions to leverage privately earned money with the state funds at a 3-1 ratio for facilities construction and renovation projects. The project hopes to attract and retain students and build the state’s workforce through increased enrollment. The University met the challenge and raised $75 million in private donations to compete for the maximum award of $25 million. The College of Agriculture infrastructure project is the first in its new interdisciplinary approach to develop solutions and educate and train future leaders to move agriculture forward and benefit Kansas. The buildings will position the college to attract students and faculty focused on expanding next-generation research and working closely with the private industry.

ADM has completed the acquisition of a 95-acre research farm in Montgomery City, Missouri. The pilot-scale site, previously owned by Novis International, will be called Montgomery City Science and Technology Farm. It features a standard animal nutrition laboratory, 30 acres of pasture for grazing, and housing for poultry, swine and ruminants in its nutritional health studies. “The Montgomery City Science and Technology Center bolsters our capabilities,” said Ryan Lane, ADM president of North American animal nutrition, during an interview at the International Production & Processing Expo (IPPE). “Directionally, this farm is perfect for where ADM is going in terms of needed capabilities to understand the effects of nutrition on the gut microbiome, but it also has solutions that address our sustainability needs.”

The U.S. beef cow herd has dropped to its lowest level since 1962, after severe drought raised costs for livestock feed last year, said USDA in a January report. Ranchers increasingly sent cows to slaughter last year, instead of keeping them to reproduce, as dry weather reduced the amount of pasture available for grazing in the western United States and on the Plains. At the same time, a tight labor market limited slaughtering at meatpacking plants. Cattle producers will not make "meaningful progress" in rebuilding the U.S. herd until 2025 at the earliest, said Rabobank. Meanwhile, restaurants, retailers, and importers will increasingly compete for limited supplies of U.S. beef.

As expected, the chicken industry recorded massive Super Bowl LVII wing consumption. Americans consumed a record-breaking 1.45 billion chicken wings over the Super Bowl weekend, according to the annual Chicken Wing Report published by the National Chicken Council. That's a 2% jump over last year's figure, representing the consumption of an additional 84 million wings nationwide. Tom Super, a spokesperson for the National Chicken Council, explains that the increase in consumption stems from favorable prices and [a return] to pre-pandemic gathering trends.

The Ag Economy Barometer from Purdue University and the CME Group measured a reading of 130 in January, a slight improvement over December’s figure and the second straight increase. “Although producers were a bit more optimistic about the future this month, they again reported expectations for tighter margins in 2023 than in 2022,” Purdue’s Jim Mintert said. The January survey also polled farmers about their upcoming operating loans for the 2023 growing season, something 22% said they expect will be larger than their 2022 note. That figure is a slight drop from the 27% who said the same thing in early 2022.

People

A group of 20 young producers from across Kansas met in Topeka February 14-15 for the first installment of the 2023 Kansas Livestock Association’s Young Stockmen’s Academy. Merck Animal Health is again partnering with the association to host these members for an in-depth look into KLA and the livestock industry. A series of four seminars will be held throughout the year at various locations at Kansas.  

During this session, attendees learned about the array of member services provided by KLA, heard about the importance of being an advocate for the livestock industry, saw KLA lobbyists in action at the state Capitol and took part in the KLA Legislative Meeting. As part of an interactive training session – led by KLA staff and WIBW-Topeka farm broadcaster Greg Akagi, the group was given an overview of various media outlets available to help tell the beef production story. In addition, YSA members attended a Senate Agriculture and Natural Resources Committeemeeting at the Capitol and participated in a financial planning seminar conducted by Pinion, formerly Kcoe Isom.   

Chesterfield, MO-based RaboAgriFinance, a subsidiary of Rabobank, has named Chris Olson Head of Rural, U.S. effective March 1, 2023. Olson has served Rabo AgriFinance since 1998, most recently as the GM of the Central Territory. He has held numerous management leadership roles throughout his tenure with the company. In the newly created role, Olson will manage the Rabobank North America’s U.S. rural Direct Lending operations.

Emily McVey, the vice president of the Kansas City Animal Health Corridor, has been announced as a recipient of the 2023 Economic Development 40 Under 40 Award, the biennial award recognizing rising stars under 40-years-old in the economic development industry. The awards program is hosted by Development Counselors International (DCI), a New York-based integrated marketing firm that works with economic development and travel organizations around the globe, and Jorgenson Consulting, a leading national executive search firm.

House Agriculture Committee Chairman Glenn Thompson (R-PA) and Ranking Member David Scott (D-GA) have announced the chairs and ranking members who will lead the House Ag Subcommittees. Heading the Dairy and Poultry subcommittee will be Rep. Tracey Mann (R-KA).

Farm Journal, Lenexa, KA, has appointed Jimmy Emmons Senior Vice President of Climate-Smart Programs. Nationally recognized as a no-till farmer, regenerative rancher and soil-health expert, he will lead Farm Journal’s Trust In Food’s national programs to accelerate the adoption of conservation agriculture. They include partnerships with Climate-Smart Commodities Connected Ag Project, America’s Conservation Ag Movement and Trust In Beef; these coalition-driven conservation programs have been developed to accelerate the adoption of conservation agriculture at scale.

Events

Kansas’ state agricultural trademark – From the Land of Kansas – is celebrating its 45th anniversary in 2023. The program will kick off its celebration at the Kansas State Capitol on Monday, March 6, from 10:00 a.m. to 2:00 p.m. Members of the From the Land of Kansas program will be offering samples of their products and showcasing their businesses. The From the Land of Kansas program began in 1978 within the state’s agriculture agency, now the Kansas Department of Agriculture, and was designed to promote and celebrate agriculture experiences and products grown, raised or produced in Kansas. The program has grown to include 375 members and farmers’ markets. These businesses span the breadth of the agriculture industry, from restaurants, agriculture equipment manufacturers, retailers, farmers and ranchers, to food processors, agritourism, wineries, breweries and distilleries. The program’s website, FromtheLandofKansas.com, offers a wealth of information, and provides a map to help consumers find Kansas businesses and farmers’ markets across the state.

Forage and beef producers can learn from world-renowned forage experts the how and why of renovating toxic tall fescue pastures at a March 23 workshop in Mount Vernon, Missouri “This one-day workshop focuses on managing tall fescue toxicity and integrating novel tall fescue varieties into a grazing system,” says Craig Roberts, state forage specialist with University of Missouri Extension. “Toxic tall fescue reduces livestock weight gains and lowers reproductive performance and profits.” The Alliance for Grassland Renewal and its partners sponsor the workshop, which will be at the MU Southwest Research Center, Mount Vernon. Register at TallFescueMO23.eventbrite.com.

University of Missouri Extension will hold a free cattle grading workshop 6-8:30 p.m. Friday, March 17, at South Central Regional Stockyards in Vienna. “Producers may wonder how their cattle grade as compared to others and how this affects their price,” said Anita Ellis, an MU Extension livestock specialist in Fulton. The workshop will help cattle producers determine the grade of their animals. Tony Hancock, Missouri Department of Agriculture reporter, will explain and evaluate different feeder calf and cull cow grades. Live animals will be used to explain grade differences and differences in cull cows. MU Extension ag business specialist Rachel Hopkins will talk with producers about feeder calf scenarios and different ways to add value to cull cows. Register at muext.us/CattleGradingWorkshop or call MU Extension in Maries County at 573-422-3359. Registration deadline is Friday, March 10. There is no charge for this program.

For the fifth year in a row, Missouri Governor Mike Parson drove a John Deere tractor to the Capitol in honor of the FFA tradition of students driving their tractor to school during National FFA Week. Lieutenant Governor Mike Kehoe joined in on the tradition again this year, demonstrating his ties to agriculture and commitment to FFA students. Missouri FFA President Colton Roy, from the Trenton FFA Chapter, received the proclamation on behalf of the 2022-2023 Missouri FFA State Officer team.

As part of its ongoing lineup of professional and academic development presentations, Kansas State University Olathe is holding a workshop on Pesticides in Animal Health, March 29-30.  This workshop provides a practical approach to getting pesticide products approved and keeping them in the market post approval, while avoiding common pitfalls and challenges faced along the way. The course provides 13 contact hours of veterinary continuing education as certified by Kansas State University's College of Veterinary Medicine. More information is available online.

NAMA is welcoming exhibitors to St. Louis, April 26-28, for its 2023 Agri-Marketing Conference. Organizers suggest exhibitors use NAMA’s Connection Point that “connects exhibitors to clients straight to you. From top leaders to agri-marketers to students—exhibitors gain access to the professionals who are shaping our industry today and in the future. More information about Connection Point at www.nama.org/connection-point.html.

Digging Deeper...

In addition to being conscious of their own health, consumers are also concerned about the health of their community and planet. New technologies have been developed to allow consumers to trace ingredients — to know, literally, where their food came from — identifying the location of origin and farmer profile, as well as shipping, preparation, and storage methods. This information holds manufacturers accountable for their environmental footprint and treatment of workers and animals. This helps brands to demonstrate their value to the community and consumer, helping to differentiate them from the competition. “The biggest trend driving change in the food and beverage industry right now is Transparency. “Consumers want to know and understand what ingredients are going into their products, which is why we are seeing so many innovative products with shorter ingredient lists that you can pronounce,” says Samantha Abram, Co-Founder of Emmy Organics.  Consumers are seeking simplicity in addition to better quality foods. “Until now, Abram adds, “it was rare to flip to the back of a product on shelf and read it before putting it in your cart. Consumers are reading the back of packages now more than ever.” 

By: Dennis McLaughlin, McLaughlin Writers LLC – Sources: 2023 Ag Innovation Forum, Agricultural Business Council of Kansas City; Transparency, Food and The Global Supply Chain, New Food Magazine 2019, Stanley Chia, Pegasystems; Nielsen Global Corporate Sustainability Report, 2018; Charlie Arnot, CEO, Center for Food Integrity; Allison Flinn, DVM, Executive Director, Value Chain and Consumer Affairs at Merck Animal Health; Samantha Abram, Co-Founder of Emmy Organics.  

Transparency: It’s What’s For Dinner

Over the last decade, consumers have become increasingly health conscious and concerned about what they eat. Early on, the movement was restricted to foodies, organic aficionados and food safety activists leary of additives, artificial ingredients and genetically modified crops.  This apprehension on the part of shoppers, noted The Nielsen Company in a 2018 study, prompted food companies to promote their products as “free of artificial ingredients and additives.” Such label claims as “All Natural,” said Nielson, grew 7.8% in 2017 over 2016.  Boasts of “Nothing Artificial” were 3.6% higher in that same time span.  

Transparency has gone mainstream, wrote Stanley Chia in a 2019 article for New Food magazine. He is  Director of Emerging Enterprise Sales for software company Pegasystems. “Initially just the pet project of green consumers,” he said at the time, “transparency is now gaining traction worldwide with many shoppers caring about ingredient sourcing, labelling and what impact the manufacture and distribution of products has on the environment and society.” 

Charlie Arnot, CEO of The Center for Food Integrity and a speaker at many KC Agricultural Business Council events, has maintained that transparency is no longer optional; it’s a basic consumer expectation. “The changes people expected to happen over five years happened in about five months.”

Moderating a panel discussion on transparency in food processing, packaging and tracing earlier this month at the Ag Business Council’s 7th Annual Ag Innovation Forum, J.J. Jones, Principal of Cultivated Conversations, summed up consumer attitudes on the subject: “People just want to be comfortable.”

New Merck Study

Jones’ timely comment came on the heels of a major study confirming the importance of transparency and sustainability in the minds of consumers, especially when it comes to purchasing animal protein.  On January 31, 2023, Merck Animal Health published the results of its first-ever consumer transparency research. The study focused on consumers’ growing interest in transparency and its importance in their purchasing decisions and brand trust. It explored consumer desire for transparency in animal protein, such as meat, fish, eggs and dairy, and their perceptions of industry transparency when it comes to animal welfare and sustainability. It also looked at the interplay of transparency and traceability and consumers’ willingness to pay for transparency label claims.

“The survey results tell us consumers want more information than ever in order to make informed decisions about the food they put on their dinner tables,” said Allison Flinn, DVM, Executive Director, Value Chain and Consumer Affairs at Merck Animal Health. "We work to be an industry leader in improving animal health through our biopharmaceutical and technology portfolio solutions, and we also have the technology that can provide greater transparency and allow consumers to make informed decisions. In fact, our DNA TRACEBACK® technology, which uses nature’s bar code – DNA – with data analytics, provides an evidence-based animal protein traceability solution to accurately trace meat and seafood that is verifiable from farm-to-table to help build trust in food labels.”

The DNA TRACEBACK platform is an advanced meat traceability solution that verifies the exact origin of meat products for the food producer, food retailer and consumer. Each animal in the program is DNA sampled so that in every stage of the production chain – from the farm gate, the processing plant and right through to the restaurant plate – the exact origin of meat or seafood is verified.

According to Merck, a sample of each animal’s DNA code is captured at slaughter and assigned a unique barcode number. This DNA number is then linked to the animal and can be traced through the supply chain all the way to individual cuts of meat served in restaurants.

Study Methodology

As for the numbers, the research found that 66% of consumers say transparency in animal protein is extremely or very important. The study focused on consumers’ growing interest in transparency and its importance in purchasing decisions and brand trust. Two-thirds of the survey respondents say transparency in animal proteins is extremely or very important and the reasons are personal, with health and nutrition topping that list.

What’s more, 86% of consumers who said transparency is important also ranked traceability as extremely or very important, and 40% of those consumers want to know where the livestock comes from. More than 50% of the respondents said they were willing to pay a 5% premium for transparency on the label and want more information than ever about how their food is grown and raised to make informed decisions at the grocery store.

For the study researchers defined transparency as knowing how food was grown, raised and made. Traceability was defined as knowing where foods come from, or more specifically, being able to follow the movement of food products and ingredients through the supply chain. The study surveyed more than 1,000 consumers who represent the U.S. shopper.

Highlights from the study include:

• 66% of consumers reported transparency in animal proteins (meat, fish, eggs and dairy) is extremely or very important and the reasons are personal – health and nutrition top the list;

• 86% of consumers who reported transparency is important also rank traceability as extremely/very important and 40% of those consumers also want to know where the livestock comes from;

• Over 50% of consumers surveyed reported they were willing to pay a 5% premium for transparency on the label and want more information than ever about how their food is grown and raised to make informed decisions at the grocery store;

• High-transparency seekers, or those who consider transparency most important to their purchasing decisions and are willing to pay for it on the label, are typically millennial, non-Caucasian, educated males who live in urban areas with their children – and they do the grocery shopping;

• Environmental sustainability and animal welfare are important animal protein purchase considerations with 55% surveyed reporting environmental sustainability as very/extremely important and 66% reporting animal care/treatment as extremely important/very important. “Sustainability, nutrition, food safety, and animal welfare are all topics consumers want to know more about, and we know greater transparency builds trust,” said Dr. Flinn. “Consumers also want to know the brands they buy from are transparent.

The Business of Ag Tech

Jim Barcus Photos

This year the Agricultural Business Council of Kansas City aimed the spotlight on a different aspect of ag technology. During its 7th annual Ag Innovation Forum at the Downtown Marriott, the focus centered on the business of ag technology – rather than its applications for on farm and ranch operations – such as soil management, irrigation, seeding and pesticide practices, harvesting et al.  In his wide-ranging keynote presentation, Dr. Bill Wilson, Distinguished Professor, Department of Agribusiness, North Dakota State University, said, “The demand for ag tech is robust.”

The next wave of ag innovation, however, will be directed toward improving business and market fundamentals.  Dr. Wilson stated, “One of the largest markets primed for disruption is agriculture finance.”  He quipped “that no technology can replace a good farmer.” But farming and the agriculture industry overall has become more complex because of data reporting requirements, statutes and regulations.  “2022 saw a quiet but steady rise in financial tech products being built for the massive agriculture industry,” he noted. “Digitization is everything.”

In recounting her recent attendance at the Consumer Electronics Show in Las Vegas, Ag Innovation Forum’s emcee Tyne Morgan, host and executive producer of Farm Journal’s U.S. Farm Report, made a point of describing the growing footprint at CES – the second largest trade show in the world. Ag technology’s development in the last 10 years has been astonishing, she noted. “Ag is viewed as the solution [to so many global problems], and its momentum is like a freight train leaving the station.”

Staying the course on the business perspective of ag innovation, another keynoter, Carter Williams, president and managing partner of iSelect Fund, said technology is being developed quickly. “But getting people to adopt it on the farm is another story.”  Williams’ advice for ag tech developers was to “connect with early adopters.” Among his witty offhand comments, Williams suggested ag innovators and climate warriors focus their research “more on biology than nitrogen,” noting that nitrogen itself is inert while biology is alive with potential for development and advances.

In his keynote observations, Steve Welker, operating partner, Lewis & Clark Agrifood, said 2023 is shaping up “to be a great year to invest in ag tech.” Although advances in ag tech take a long time, he explained, “The future is bright; good tech companies are looking for good investors.” Welker also pointed out that millennials are “thinking a lot about food,” which is incenting innovators to produce healthier, sustainable foods. “Tech enables value creation for the food industry.”

Chavonda Jacobs-Young, USDA’s Under Secretary of Agriculture for Research, Education and Economics, was a surprise guest, making an afternoon appearance to offer Forum attendees a recap of President Biden’s remarks on agriculture in his State of the Union address.

This year’s Innovation Forum featured three panels: New Technology/Entrepreneurs; Transparency and Information Systems; Climate-Smart Pilot Programs. 

• New Technology/Entrepreneurs:  Moderator Mike Rohlfsen, chief commercial officer, TechAccel, observed that “precision agriculture” involves more than seed technology, and now includes animal health. He also noted that 75% of growers don’t use precision technology.  Panelist Reza Bloomer, director of business development for InnerPlant, briefed attendees on research underway to recode DNA traits in seeds under distress. “Seeds themselves are a novel data source, and we need to tap into them to see what they need.” Dave Baitinger, seed production engineering team leader at Bayer Crop Science, talked about adding automation to the process of creating the next iteration of plant breeding.  As a veterinarian by education, Dr. Justin Welsh, executive director of livestock technical services at Merck Animal Health, described his team’s work in creating monitoring systems and technology to determine early on what ails a ruminant cow as more exciting than dispensing antibiotics and vaccines.

• Transparency and Information Systems: Moderator J.J. Jones, principal, Cultivated Conversations, noted that at the end of the day consumers “just want to be comfortable” with the processed foods, produce and animal protein they purchase. Deb Arcoleo, partner, Transparency Ventures, described the effectiveness of a digital platform service app, SmartLabel, that shoppers can use to learn more about a product (provided that product is participating in the program). She noted that her research indicates 52% of U.S. consumers don’t think the food industry is transparent.  Lamar Steiger, owner of The 808 Ranch and a beef supply chain consultant to Walmart, attributes Walmart’s famed low prices to a business model that owns and operates a supply chain that moves 33% of its goods and products. Dr. Manreet Bhullar, research assistant professor of Horticulture and Natural Sciences, Kansas State University, discussed his team’s work to enhance microbial safety of fresh produce.

• Climate-Smart Pilot Programs: Moderator: Moderator Amy Skoczlas Cole, president, Trust in Food, observed the challenges facing efforts to institute climate-smart programs into farming are a “little sobering” but the opportunity is promising. She noted that “65% of producers say consumers do have the right to know how farmers farm.” But Cole said farmers also “want credit for what they have already accomplished [in adopting climate-smart practices]; 45% of them are using digitized tools.” Katina Dove Hanson, acting senior advisor, for USDA’s Climate-Smart Commodities, outlined how the program is being rolled out and funded, but pointed out the it was still in a ‘pilot’ phase – a work in progress. Coralie Pierre, senior manager of Programs & Partnerships at Field to Market, illustrated how efforts are underway to remove barriers in order to scale sustainable ag. “Our progress and ultimate success,” she said, “lie in learning together, mobilizing more capital to support farmers in the transition, and pursuing solutions that create wins for farmers, business, society and our planet.” Kristen Coady, DFA’s senior vice president and chief communications officer, explained the lynchpin to climate-smart production  was “to connect on-farm greenhouse gas (GHG) reductions with the development of climate-smart dairy products.” Nathan Fields, with the NCGA &Farmers for Soil Health, said among things that his group was focused on building soil health across corn and soybean acres by utilizing cover crops to 30 million acres by 2030.

Latest News & Updates in KC Agriculture - January 2023

Developments

The American Farm Bureau Federation signed a memorandum of understanding with Agriculture Future of America.  According to an AFBF release, the MOU will foster “cross-promotional efforts of organizational objectives and events.” “We are excited to join with AFA and share Farm Bureau’s resources and programs with college students and young professionals who are the next generation of leaders in agriculture,” Farm Bureau President Zippy Duvallsaid. “The collaboration we’re announcing today will benefit both of our organizations and help ensure a bright future for American agriculture.” AFA President and CEO Mark Stewart said the two organizations are at a “unique crossroads of mutual investment in building leaders to strengthen the future of our industry.”

U.S. Grains Council held its official ribbon-cutting ceremony in India earlier this month to mark the opening of its South Asia office there. The first new office for the organization since 2010, the expansion of a full-time office in this key growing ethanol market was made possible through extra grant funding from the Kansas Corn Commission. Kansas Corn CEO, Greg Krissek joined USGC staff and board members at the opening to celebrate the event. “Kansas Corn has supported USGC efforts for exports around the world of corn in all forms for many years,” said Krissek. “Four years ago we agreed to partner on establishing a U.S. Grains office in India, which in 2023 will become the most populous nation in the world. In the same time period, India has become a top five importer of US ethanol. While still a complicated market to penetrate, having USGC staff on the ground in India will provide US farmers the best opportunity to enter the market when India’s needs come to the forefront-as they most certainly will in the coming years.” India is a top customer of U.S. ethanol for industrial use, noted Cary Sifferath, USGC Vice President.

The Kansas Department of Agriculture is accepting applications for the 2023 Specialty Crop Block Grant Program. Funds for the program are awarded to the agency by the USDA’s Agricultural Marketing Service. The grant funds are in turn granted to projects and organizations to enhance the competitiveness of specialty crops by leveraging efforts to market and promote specialty crops; assisting producers with research and development relevant to specialty crops; expanding availability and access to specialty crops; and addressing local, regional, and national challenges confronting specialty crop producers. Specialty crops are defined by the USDA as “fruits, vegetables, tree nuts, dried fruits, horticulture, and nursery crops, including floriculture.” Applications are due to KDA no later than 5:00 p.m. CST on March 15, 2023. For more information, please download and carefully read the 2023 Kansas Request for Applications from the KDA website: agriculture.ks.gov/specialtycrop.

Oklahoma State University Extension specialists say several factors are to blame for record-high egg prices. The sticker shock is expected to continue through the first quarter of 2023. At this time in 2021, eggs were $1.47 a dozen, in 2022 they were $1.93 a dozen and today it at $4 a dozen. USDA data shows egg prices typically jump during the holiday season, and the cost of eggs has historically increased during times of economic strain such as the recession in 2008 and the spread of COVID in 2020. However, today’s record prices reflect the nationwide impact of Highly Pathogenic Avian Influenza and a booming demand for egg consumption. In states where HPAI decimated commercial poultry flocks in 2022, the demand for laying hens outpaced egg supplies. It takes months for laying hens to grow to sexual maturity, start laying eggs and provide a consistent supply at peak production. The worldwide egg demand also relies heavily on the fact that eggs are an essential ingredient in many prepared foods. While eggs are more budget-friendly than beef, pork, turkey or chicken, the rapid climb of egg demand in 2022 does not run parallel to a price hike in other markets.

Livestock Marketing Association has applauded U.S. Congressional Representatives Mark Alford (R-Mo.), Jimmy Panetta (D-Calif.), and Dusty Johnson (R-SD) for introducing the Amplifying Processing of Livestock in the United States (A-PLUS) Act. If enacted, the bill would remove an outdated regulatory barrier and allow livestock auction market owners to own or invest in small and regional meatpackers. The Administration, Congress, and the livestock industry agree there is a need for increased packer competition and additional processing capacity. Currently, livestock auctions owners are not able to own, invest, or participate in the operation of a packing plant or meat marketing business due to a dated Packers and Stockyards Act restriction. This prohibition falls under a 102-year-old law and predates the current, transparent method of selling livestock at an open auction to the highest bidder. The A-PLUS Act is essential in removing this unnecessary barrier to cattle industry investment in the packing sector. The bill would allow livestock auction owners to own or invest in cattle and hog packers smaller than the current ten largest packers.  For more information about the A-PLUS Act contact Chelsea Good, Vice President of Government and Industry Affairs & Legal at cgood@lmaweb.com or 816-305-9540.  

Corn farmers, industry representatives, and guests from across the state gathered in Jefferson City January 25, 2023 for the Missouri Corn Growers Association annual meeting and legislative day. The morning kicked off at the Capitol Plaza Hotel with MCGA’s annual meeting, where Lt. Gov. Mike Kehoe provided the keynote address. Following the annual meeting and luncheon, growers visited the State Capitol to discuss the importance of Missouri’s corn and ethanol industries with legislators and their economic impact on the state. “With farmers becoming a shrinking minority and many new faces in this year’s legislature, the event provided the chance to have a voice with elected officials here in Jefferson City,” noted MCGA president Clint Stephens.

Missouri Department of Agriculture director Chris Chinn announced that 22 youth groups from across Missouri were awarded grants from MDA’s 2023 Building Our American Communities grant program. Eleven local chapters of the National FFA Organization and 11 Missouri 4-H clubs statewide have been awarded funds for their community service projects this year. “Missouri FFA and 4-H programs continue to enrich and cultivate a strong passion for agriculture and service in our youth,” said Director Chinn. “These groups demonstrate leadership, generosity, and personal growth through their projects. Their hard work inspires me and does not go unnoticed. I applaud each FFA chapter for ‘Living to Serve’ and each 4-H club for devoting their ‘hands to larger service’ every day.” Each of the 2023 awardees will receive $500 toward their projects, which may include upgrades or additions to existing facilities, grounds or buildings, such as fairgrounds, parks or community centers used by local organizations.

The National Cattlemen’s Beef Association (NCBA) filed a lawsuit (January 19, 2023) against the Environmental Protection Agency challenging the Biden administration’s final “Waters of the U.S.” (WOTUS) rule. NCBA previously filed technical comments on this rule, highlighting the importance of maintaining agricultural exclusions for small, isolated, and temporary water features, like ephemeral streams that only flow during limited periods of rainfall but remain dry the majority of the year. Regulating these features at the federal level under the Clean Water Act disrupts normal agricultural operations and interferes with cattle producers’ abilities to make improvements to their land.

Kansas attorney general Kris Kobach announced his support of legislation intended to prevent Kansas farmers from selling land to foreign entities. Kansas Senate Bill 100 would prohibit any non-U.S. citizen from buying Kansas real estate in certain areas. The bill would also give the attorney general authority to investigate real estate transactions believed to involve foreign agents. Exemptions to the bill would include property located in Johnson, Sedgwick, Shawnee or Wyandotte counties, along with property acquired before July 1, 2023. Kobach said these counties were excluded from the legislation because the concern is about foreign interference with agriculture, not urban businesses. 

Farm leaders will meet in Washington, February 2, to increase pressure on Congress to demand a more aggressive U.S. trade agenda that includes new free trade agreements and better access to foreign markets through lower tariffs. The umbrella group Farmers for Free Trade is organizing an event with members of the Corn Refiners Association, National Corn Growers Association, National Milk Producers Association, CoBank, North American Meat Institute, National Association of Wheat Growers, and National Association of State Departments of Agriculture. “With a new Congress, new committee leaders, and newly confirmed ag trade officials at USTR and USDA in place, the U.S. ag community is taking advantage of an important moment to push for regaining a foothold in international trade,” says Farmers for Free Trade. “The United States has not completed a trade agreement that provides access to a new market in over a decade, while competitors in South America, Europe and Asia have been completing deals that preference their ag products.” Source: Agri-Pulse Daybreak, January 30, 2023

Events

The Kansas Department of Agriculture will host virtual workshops February 6-10, 2023, to assist farmers’ market vendors and managers, and also for those wanting to sell food products directly to consumers. The workshop series includes five online Lunch and Learn sessions. “Over the past two years, we’ve seen an increase in people’s enthusiasm for locally sourced food, and these workshops will address common questions and concerns for farmers and small businesses who are embracing these opportunities to reach local consumers,” said Londa Nwadike, food safety specialist with KSRE and the University of Missouri. Registration for the February virtual workshops is now open. The cost is $5 per participant. Register at www.fromthelandofkansas.com/FMWorkshop. Dates and topics:

• Monday, Feb. 6, noon to 1:00 p.m.: Accepting EBT/SNAP and Double Up Food Bucks

• Tuesday, Feb. 7, noon to 1:00 p.m.: Meat and Poultry Regulations; Kansas Value Added Meats Lab

• Wednesday, Feb. 8, noon to 1:00 p.m.: Kansas Sales Tax Information

• Thursday, Feb. 9, noon to 1:00 p.m.: Food Safety Regulations; Kansas Value Added Foods Lab

• Friday, Feb. 10, noon to 1:00 p.m.: Kansas Senior Farmers Market Nutrition Program

Kansas State University Olathe announces a new lineup of animal health professional development events coming up, most of which offer both online and in-person experiences. Here are the next two events as well as a link to the full schedule.

• Animal Health Regulatory Affairs 101, Feb. 22-23 –  This two-day, interactive workshop is 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 involved with a company’s regulatory strategies. This course provides 11.5 contact hours of veterinary continuing education as certified by Kansas State University’s College of Veterinary Medicine. 

• Pesticides in Animal Health, March 29-30 – This workshop provides a practical approach to getting pesticide products approved and keeping them in the market post approval, while avoiding common pitfalls and challenges faced along the way. The course provides 13 contact hours of veterinary continuing education as certified by Kansas State University’s College of Veterinary Medicine.

NAMA is welcoming exhibitors to St. Louis, April 26-28, for its 2023 Agri-Marketing Conference. Organizers suggest exhibitors use NAMA’s Connection Point that “connects exhibitors to clients straight to you.” From top leaders to agri-marketers to students—exhibitors gain access to the professionals who are shaping our industry today and in the future. More information about Connection Point at www.nama.org/connection-point.html.

The 61st annual Western Farm Show takes place February 24 – 26 at the American Royal Complex, in Kansas City, Mo.  The show is produced by the North American Equipment Dealers Association. For more information, contact Jami Applegate, Farm Show manager, 816-561-5323. japplegate@naeda.com.  

People

Rep. Jason Smith, R-Mo., has been selected to serve as chairman of the House Ways and Means Committee, which writes tax laws and oversees trade policy. Smith was selected by the GOP steering committee for the post, beating out Adrian Smith of Nebraska and Vern Buchanan of Florida.

At its recent annual meeting the Missouri Soybean Association re-elected Matt Wright to serve as president.  Wright is a soybean grower from Emden representing District 3 on the board. Wright has been a board member for more than 10 years, serving in various leadership roles including vice-president. “I feel incredibly honored to be elected to serve another year at the helm of the Missouri Soybean Association,” said Wright. “As the policy branch of the organization, I am continuously impressed with the advocacy our board and staff puts forth and the work we get done for our growers across the state. As the leader of MSA, my goal is to create a strong future for soy.”

Ag Council Gets Briefed on NDAs and Dealing With Government

Stinson LLP hosted the Agricultural Business Council this month as it kicks-off the 2023 Luncheon Meeting agenda with the Annual Legal Update. Stinson partner Jim Selle moderated a panel of specialists delving into the intricacies of intellectual property, patent and trademark protection laws. The panel also discussed the legal climate surrounding litigation involving the EPA, FSA, and Department of Natural Resources.

Selle provided an overview of legal issues that are emerging as agriculture innovation develops. “A lot of money is going into technology,” he said. That has created a unique ‘supply chain’ of activity and players: 1) Inventors, 2) Borrowers, investors, 3) Contractors, manufacturers, suppliers, 4) Sellers, 5) Buyers, lessors, licensees.  

All these links in the chain call for extra agreements and limited or capped warranties. “It is getting complicated,” said Penny Slicer, a Stinson partner and registered patent attorney involved with patent, trademark and intellectual property protection. Her comments on non-compete and non-disclosure  agreements were timely, as the Federal Trade Commission has proposed a ban on non-disclosure agreements  that could outlaw terms in some 30 million contracts, pre-empting such laws in every state. A final ruling is some 18 months off. Inside the Beltway, odds are the proposal is unlikely to become law.

Bob Thompson, partner at Bryan Cave Leighton Paisner LLP, and Jean Paul Bradshaw II, partner at Lathrop GPM, shared experiences on “doing business with government.” Thompson explained that mistakes or even misrepresentations that might be the subject of a civil lawsuit in a private transaction, can in fact be a “federal case” when that representation is made to a federal agency under a penalty of perjury.   The difference is that if someone cuts corners or misrepresents something in a private setting, they get sued.    When you are dealing with the government, you get indicted instead.   Bradshaw noted that federal “prosecutors really don’t know what goes on, on a farm.” But they will try to make their case based on the premise that it “looks wrong.”

On the issue of clean water as it is defined and regulated in WOTUS, both presenters voiced their worries that EPA could actually prosecute violations against clean water statutes occurring through negligence as having occurred through criminal intent. On the positive side, they think the Biden Administration will not be as aggressive as the Obama Administration was on the matter. They also are concerned that many agencies regulating agriculture, waters and land are headed by advocacy groups rather than genuine, trained environmental scientists.

Digging Deeper...

Earlier this month in Las Vegas, the Consumer Electronics Show convened its 56th tradeshow extravaganza. CES was first held in 1967 in New York City attracting 17,500 attendees and more than 100 exhibitors. The first keynote speaker at the time was Motorola chairman Bob Galvan who introduced radios and televisions with integrated circuitry. The technology was described back than as a “monolithic integrated circuit” set onto one small piece of semiconductor material. Silicon. Engineers called it a chip. This year’s CES event featured around 4,000 exhibitors, attracted almost 200,000 attendees and occupied 2.2 million square feet. CES is the second biggest tradeshow in the world, and spotlights technologies including mobile hardware and accessories, energy and power, 5G technology, robotics, IoT/sensors, AI and cybersecurity.  But something else lately has grown its profile at CES: Agriculture Technology, and its footprint is getting bigger.  

By: Dennis McLaughlin, McLaughlin Writers LLC – Sources: National Geographic Society, Washington D.C.; McKinsey & Company, Chicago, Illinois; Future Farmer Magazine, Fargo, South Dakota; Business Facilities Magazine, December 2021 and 2022 issues; Kansas Bioscience Authority 2010 Progress Report.

Farm Tech Is Getting To Be Big Business

It shouldn’t come as a surprise that agricultural technology is gobbling up exhibit space at CES and other such events and forums known more for their high tech displays of electronic products such as radio receivers, television sets, MP3 players, video recorders, DVD player, digital cameras, camcorders, personal computers, video game consoles, telephones and mobile phones.  Agriculture, however, has always been a leader in innovation, notes Future Farmer, a Fargo, ND-based ag tech magazine. Always, in this context means 12,000 years of human civilization.

The National Geographic Society maintains that “agriculture triggered such a change in society and the way in which people lived that its development has been dubbed the Neolithic Revolution that took root 12,000 years ago.” Traditional hunter-gatherer lifestyles that humans had followed since their evolution, explains National Geo, were swept aside in favor of permanent settlements and a reliable food supply. “Out of agriculture,” it goes on, “cities and civilizations grew, and because crops and animals could now be farmed to meet demand, the global population rocketed—from some five million people 10,000 years ago, to more than eight billion today.” In other words, when early humans didn’t have to spend all day hunting and foraging for food, they could begin to cultivate societies, communities, the arts, scholarship and science and technology.

In a more timely perspective on the agricultural industry, McKinsey & Company describe it as having radically transformed over the past 50 years: “Advances in machinery have expanded the scale, speed, and productivity of farm equipment, leading to more efficient cultivation of more land. Seed, irrigation, and fertilizers also have vastly improved, helping farmers increase yields. Now, agriculture is in the early days of yet another revolution, at the heart of which reside data and connectivity. Artificial intelligence, analytics, connected sensors, and other emerging technologies could further increase yields, improve the efficiency of water and other inputs, and build sustainability and resilience across crop cultivation and animal husbandry.”

The agricultural and food technology industries have been undergoing tremendous change, reports Business Facilities  as trends develop in the way consumers value food safety and security and an older population seeks healthier diets, reports Business Facilities, a pioneer magazine publisher is the site selection industry.  “Companies in this industry sector are looking to adapt to these trends by spending billions on research, new product development and supply chain optimization,” say its editors.

Ag Biz Council Keeps Pace

The future of food, beverage and agriculture production has never been more exciting, though maybe exacerbating at times. Farmers are facing labor shortages, climate change and environmental protection regulations that require action, all while trying to feed a growing global populace. As they work to overcome these challenges, one key strategy they deploy is the introduction of advanced ag innovation into their farming practices.

The Agricultural Business Council of Kansas City is doing its part to keep the ag industry apprised of developments and advances. It will be presenting its 7th Ag Innovation Forum, February 8, 2023, at the Kansas City Downtown Marriott. (Registration information available here.)

Ag Adapts

Several ag tech-focused startups are active in the region. But many local pioneer ag companies are also adapting ag tech to improve their conventional operations. And they have been at it for quite some time. Enough so, that the greater Kansas City area has been tagged as the Silicon Valley of Ag Tech.

Last year in ranking the Top Ten U.S. cities having the various attributes and resources that might attract companies and startups to relocate there, Business Facilities listed Kansas City, MO, as No. 9 among cities considered to have “The Best Tech Hubs Growth Potential.”  The magazine also ranked Kansas City No. 10 among cities that had “The Best Business Climate.”

Kansas City’s rankings are impressive considering the competition, which included some heavy weights like Dallas-Fort Worth, Seattle, Phoenix, Atlanta, Charlotte, Nashville and Indianapolis. But this is not Kansas City’s or the state of Kansas’ first rodeo. Back in 2010 the Kansas Bioscience Authority – created in 2004 through a bipartisan effort on the part of a Republican-controlled legislature and a Democratic Governor and Secretary of Revenue – was ranked No. 5 in the nation by Business Facilities for its biotechnology strength.

In 2010 the magazine’s Editor-in-Chief Jack Rogers said, “Biotechnology strength is one of the most important and fiercely competitive rankings categories. Kansas clearly has shown that it is a biotech force to be reckoned with, and has staked a claim to a leadership position for years to come.” He also noted that KBA’s stewardship of a $581 million biotech investment fund [in its first five years of existence] was “a uniquely focused effort that has made Kansas a national  center for animal health research, a leader in pharmaceuticals and an emerging player in bioenergy.”

Couple that recent history to the upcoming commissioning of the National Bio and Agro-Defense Facility and the inauguration of Kansas State University’s Innovation Center, and you’ve got pretty good argument to further claim the region as the “Silicon Valley of Agriculture.”

Council Welcomes Several Newcomers to its 2023 Board of Directors

The Ag Business Council of Kansas City is pleased to welcome several new members to its board of directors.  Here is an introduction…

Justin Gilpin

Justin Gilpin became Kansas Wheat CEO September 1, 2009. Gilpin is a graduate of Kansas State University’s Milling Science program within the Department of Grain Science and Industry. Before joining Kansas Wheat, Gilpin worked at General Mills, Inc., where he was a wheat buyer for three flour mills. He executed daily wheat market orders on the floor of the Kansas City Board of Trade, worked with flour sales, elevator and mill management, and sourcing wheat from various classes. He has been involved in a number of U.S. Wheat Associates committees, is past-chair of the Kansas City Board of Trade Cash Basis committee, Wheat Quality Council board Member and is an adjunct research scientist for Kansas State University's Department of Grain Science and Industry. He currently serves as Chairman of Heartland Plant Innovations and works daily leading efforts at the Kansas Wheat Innovation Center on the KSU campus.

Brad Hamilton

Brad Hamilton is Vice President of Supply Chain & Logistics at Seaboard Foods where he is responsible for procurement, planning, third-party logistic services, inventory, analytics, transportation, and export logistics. Over the course of his 23-year career at Seaboard, he has held various leadership roles in financial analytics, information services, margin management and strategic planning. Seaboard Foods is a large division of Seaboard Corporation and a vertically integrated pork producer and processor.

He is an alumnus of Northwest Missouri State University where he earned B.S degrees in both Finance and Computer Management Systems.  He is a native of Burlington Junction, MO, a small farming community in the northwest part of the state.  He and his wife, Andrea, have four children. In his spare time he enjoys running/training for races with his wife, landscaping, construction projects around the house and supporting their children in various activities.  He and his family are active in their church, as well.

Haley Larson

Dr. Haley Larson is an assistant professor of animal health at Kansas State University's Olathe campus. Dr. Larson earned her B.S. in Animal Science and Ph.D. in Ruminant Nutrition from the University of Minnesota.  Her graduate studies focused on understanding how manipulation of growth and fermentation patterns in feedlot cattle effects animal performance.  While completing her degree, Larson began working as a senior scientist for Cargill Animal Nutrition and Health. 

At Kansas State, Dr. Larson teaches several animal health graduate-level courses within the department of applied and interdisciplinary studies as well as the College of Veterinary Medicine’s diagnostic medicine and pathobiology department.  She leads courses on regulatory affairs for animal health products, research strategies for new product development, zoonotic pathogens in the food chain, as well as others. 

James Nygren

James Nygren is a Legislative Affairs Officer for two Farm Credit Associations – Frontier Farm Credit, based in Manhattan, Kansas, and Farm Credit Services of America, headquartered in Omaha, Nebraska. Prior to his position he worked for state and federal elected officials covering Agriculture, Energy, Environment, Immigration and Trade issues. Nygren received his B.S. and J.D. from the University of Nebraska and his M.P.S. at George Washington University.

Emily Schuckenbrock

Emily Schuckenbrock is the Senior Program Manager of Leader Competency Development with Agriculture Future of America (AFA). AFA is a national organization headquartered in Kansas City focused on shaping leaders to make a positive impact in the food and agriculture industry. Emily has designed and executed key programming for the organization including AFA Leader Institutes, virtual learning and young professional events, and the organization’s flagship experience, AFA Leaders Conference. Emily has worked to support the development of thousands of young leaders in agriculture and food by building opportunities that connect seasoned leaders, professional development learning models and trending industry topics to the next generation of talent.

Emily has a bachelor’s degree in Agricultural Education and Leadership and a master’s degree in Agricultural Leadership, Communication and Education, both from the University of Missouri-Columbia. Emily moved to Kansas City, MO in 2019 and quickly fell in love with the area, settling in the  Northland. When Emily isn’t on AFA time, you’ll find her strolling downtown Parkville with her fiancé, Austin, or visiting her folks on the family’s century farm in Bowling Green, MO. 

Jackie McClaskey

Dr. Jackie McClaskey was named President and CEO of the American Royal Association in December 2022. She has served as President of New Campus Development for the American Royal since January 2019 leading all aspects of the project to build a new home. McClaskey served as the Kansas Secretary of Agriculture from 2013 to 2019 following service as Assistant and Deputy Secretary in the Kansas Department of Agriculture. Prior to joining to the Department of Agriculture, McClaskey served as an assistant dean for the College of Agriculture at Kansas State University for 13 years. In addition, McClaskey is a co-founder and president of Roots and Legacies, Inc., an agricultural services and leadership consulting firm.

A native Kansan, McClaskey grew up on a diversified family farm near Girard. Her family was involved with livestock as well crop production. She earned a bachelor's degree in agriculture economics from Kansas State University, a Master of Science in agricultural economics from Texas A&M University, and a Ph.D. in Animal Science from Kansas State University in January 2014. Her Ph.D. dissertation analyzed foreign animal disease response policy. McClaskey, her husband Mike Matson and their two Australian Shepherds, Lady and Scout, live in Manhattan.

Jim Staiert

Jim Staiert is the Associate Administrator of the USDA Economic Research Service (ERS) and has been with ERS since August 2020.  Jim began his career at USDA in 1990 as an Economist with the Agricultural Cooperative Service conducting research of the financial performance of the nation’s 100 largest agricultural cooperatives. In 1995, Jim took a position with the USDA Office of Budget and Program Analysis (OBPA) where he served as a Program Analyst providing advice to the Office of the Secretary on legislative, regulatory, and budgetary matters of the Department. During his time with OBPA, his area of responsibility included the mission areas of Rural Development (RD), Farm and Foreign Agricultural Service (FFAS), Farm Production and Conservation (FPAC), Natural Resources and Environment (NRE), and the Marketing and Regulatory Programs (MRP). In 2018, Jim became the first Budget Director for the newly created Farm Production and Conservation mission area.  In this role, Jim helped to merge 3 existing budget offices to create a consolidated budget office for the entire mission area, managing $70-90 billion in Federal resources each fiscal year. Throughout his career, Jim has had a hand in implementing 5 Farm Bills. 

Jim was born and raised on a mixed-use family farm (dairy, hog, corn, soybeans) in Southwest Iowa. Jim attended Iowa State University and received undergraduate degrees in Finance and Agricultural Business as well as a Master’s in Economics. Jim and his wife Ana moved to Kansas City, MO in May 2021, after spending about 30 years in Washington, DC.  Jim and Ana enjoy travel and have traveled extensively to Europe and South/Central America.