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Today’s Topics
Kraft
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Farmers’ case against giant dairy co-op will go to trial

A collection of dairy farmers who allege anti-competitive conduct by the nation's largest dairy cooperative will take their case to a jury trial. A U.S. district court judge late last week denied a motion for summary judgment — which would have wrapped the case up without trial — from defendant Dairy Farmers of America (DFA).<strong>(No paywall)</strong>

Madison looks at former meat factory for wholesale food market

Madison, Wisconsin, was hit particularly hard by the 2015 merger of Kraft and Heinz and its accompanying layoffs. Now, the city is assessing whether the former meat processing site could be repurposed into a food terminal for regional producers. If the terminal is approved, the city will join others who are building infrastructure for medium-scale regional food distribution.

Kraft Heinz’ iconic products face changing consumer tastes

Thousands of workers have been laid off and several factories shuttered since the Brazilian investment firm 3G Capital helped facilitate Kraft’s acquisition of Heinz in 2015. Now, at the end of the trademark cost-cutting cycle that follows many 3G deals, Kraft Heinz must grapple with changing consumer preferences, the Wall Street Journal reports.

undersecretary appointments
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Senate vote near for USDA farm subsidy and conservation chief

Three months ago, the Senate Agriculture Committee recommended Senate approval of Robert Bonnie to run the USDA's farm subsidy and land stewardship programs, which cost more than $10 billion a year. The nomination is set for a floor vote next week, after a series of delays forced by senators who put "holds" on it.

Senate confirms Moffitt as agriculture undersecretary for marketing

California state agriculture official Jennifer Moffitt, who pledged to give farmers more leverage in dealing with meatpackers, was confirmed by the Senate on Wednesday as agriculture undersecretary for marketing and regulatory programs. She was the first Biden nominee approved by the Senate for a sub-cabinet post at the USDA.

USDA nominees Bonnie and Torres Small are cleared for Senate vote

Chairwoman Debbie Stabenow said the Senate Agriculture Committee is making progress on stocking the USDA with President Biden's choices for sub-cabinet posts. The committee advanced two nominations to the floor on Tuesday, creating the possibility of confirmation votes before the Senate adjourns for its summer recess.

Iowa ag director choice to run USDA subsidy, stewardship, insurance programs

President Trump nominated Bill Northey, the Iowa agriculture secretary, to be undersecretary of agriculture for farm production and conservation, the No. 3 post at the USDA. The president also nominated Nebraska state agriculture director Gregory Ibach to be undersecretary for marketing and regulation.

Northey nearing nomination for USDA post, says Grassley

Iowa Sen. Chuck Grassley told reporters that it’s just a matter of time until Bill Northey, the Iowa state agriculture secretary, is nominated for a senior post at the USDA. Since spring, Northey has been considered the likely nominee for undersecretary for farm production and conservation, overseeing farm subsidies and land stewardship programs.

Paris climate accord
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FERN talks COP28 and food-system reform with World Wildlife Fund

Minor reduction in ag and food revenue under Paris climate agreement

Compared to other developed nations, the United States would feel little impact from climate mitigation efforts modeled on the Paris accord, said two Purdue University researchers on Thursday.

Inspector general to review Pruitt meeting with mining execs

The inspector general’s office at the EPA will investigate an April meeting between EPA administrator Scott Pruitt and the National Mining Association, said The Hill newspaper.

2017 among three hottest years on record

According to a UN report, 2017 is on track to be one of the three hottest years on record. The cause, it says, is climate change, which the report implicates in “extraordinary weather,” including extreme hurricanes, floods, and droughts.

California leads country with new climate-change legislation

California Gov. Jerry Brown has extended the state’s climate plan for another decade by signing into law a bundle of bills meant to lower greenhouse-gas emissions. “The legislation puts California at the forefront of plans by mostly Democratic governors to reduce carbon emissions and adhere to the goals of the Paris climate change accord after Republican President Donald Trump withdrew the United States from the pact,” says Reuters.

concentration
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Study finds market power drove pandemic food inflation

On earnings calls last week, major food brands bragged about their ability to keep raising prices. Soda and snack giant PepsiCo told investors that it raised prices 16 percent last quarter, bringing in 18 percent more profit. Nestle announced a 10 percent price hike and Unilever said its food brands cost 13 percent more. In all these cases, higher prices helped food giants increase profits even as their sales decreased. <strong>(No paywall)</strong>

USDA issues grants to expand local meat processing capacity

Five independent processors will receive grants totaling $59 million to expand local meat processing capacity, Agriculture Secretary Tom Vilsack said on Tuesday. The grants are part of a $1 billion initiative by the administration to strengthen the food supply chain and introduce more competition into the meat processing sector.

Fewer hog farms, but far more hogs per farm

In the space of a generation, U.S. hog production has transformed, even if the Midwest, with Iowa foremost, is still the leader, said a new USDA report. There were half as many hog farms in the country in 2017 as there were in 1997, and the largest farms, often specialized operations, raised 93 percent of the pigs.

Cattle market reformers see resistance from big ag groups

A band of senators from the Midwest and northern Plains, with the best chance in years to inject transparency into the consolidated cattle market, pressed on Tuesday for a federal mandate for meatpackers to buy more cattle for cash, rather than through obscure formulas. "We need some sunlight," said Montana Sen. Jon Tester.

Charles Grassley
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A solid majority likely in Senate for Perdue, says Grassley

Sonny Perdue can expect a broad and bipartisan vote in the Senate next week to become agriculture secretary, though it won’t be unanimous, said Iowa Sen. Charles Grassley.

Grassley safe for re-election, aids GOP goal of keeping Senate majority

Democrats' chances of defeating Senate Judiciary chair Charles Grassley, a longtime Agriculture Committee member, were never great and are fading like the shortening days of autumn, says Sabato's Crystal Ball. "With Trump now positioned as a slight favorite to win the Hawkeye State, there is no sign that Grassley is in any danger," says the political website, rating the race as "safe Republican."

Grassley to hold hearing on ag concentration

Senate Judiciary Chairman Chuck Glassley of Iowa said he would hold hearings next month on "a wave of consolidation among seed and chemical producers, including the merger of Dow and DuPont," the Des Moines Register reported. The announcement came one day after the Committee on Foreign Investment in the United States approved the $43 billion merger of ChemChina and Swiss-based Syngenta, which has significant operations in the United States.

Ag mergers need coordinated review, says Senate chairman

The Justice Department and Federal Trade Commission ought to collaborate in their review of two major mergers that affect the seed and ag chemical supply, said Senate Judiciary chairman Charles Grassley in a letter to regulators. "It is important that these transactions are not reviewed in isolation," wrote Grassley, noting that different regulators are handling each of the mergers, Dow-DuPont and ChemChina-Syngenta.

renewable fuels
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Imports of renewable diesel are up 29 percent

The United States imported near-record volumes of renewable diesel fuel in each of the first five months of this year, averaging 30,000 barrels a day, said the Energy Information Administration. The imports, which were 29 percent higher than in the same period in 2023, came from one producer, Neste, and were shipped almost wholly to the West Coast.

U.S. crop sector insulates itself from world market with biofuels, says analyst

After decades of pursuing sales to foreign buyers, the U.S. crop sector is “once again becoming domestic market-focused, due mainly to biofuels policy,” said Scott Irwin, an agricultural economist at the University of Illinois, on Wednesday. It would be a significant, albeit gradual, change in focus.

Soybean oil rapidly gaining ground as renewable diesel feedstock

The skyrocketing growth in the production of renewable diesel has been accompanied by a dramatic expansion of soybean oil as a feedstock for the fuel, said three University of Illinois agricultural economists on Wednesday. Soybean oil’s share of the feedstock market has tripled in the past few years, to 27.4 percent.

Renewable diesel boom is wild card for U.S. soybeans

Thanks to a rush in investment, the renewable diesel industry is in a building boom in the United States and abroad "that is very comparable, I believe, to the ethanol boom of the mid-2000s," said economist Scott Irwin of the University of Illinois on Thursday.

Federal Reserve
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Land values rise while farm income shrinks in northern Plains

Continuing a four-year trend, land values rose during the growing season in the northern Plains, despite financial tightening in the farm sector, said ag bankers in a quarterly survey by the Minneapolis Federal Reserve Bank.

Lower commodity prices darken farm income outlook, says Federal Reserve

Farmers are on track to harvest some of their largest corn and soybean crops ever, but the ongoing decline in commodity prices is putting farm income in question, said the Beige Book issued by the Federal Reserve Board on Wednesday. Regional Fed banks in Chicago and Minneapolis said the farm income outlook had weakened in recent weeks, while the Kansas City Fed said agricultural conditions in its district “faced headwinds from weak crop prices.”

Higher commodity prices soften farm income decline, say banks

Springtime increases in corn, soybean, and wheat prices brightened the outlook for the agricultural sector amid expectations of lower farm income this year than in 2023, said Federal Reserve regional banks in the Beige Book report on Wednesday. The Chicago and Dallas banks said the discovery of bird flu in dairy cattle was a cause for concern.

Interest rates rise faster than farmland values, says economist

For the first time since 2001, interest rates are rising faster than farmland values, creating a potential obstacle to land purchasers, said assistant economist Ty Kreitman of the Kansas City Federal Reserve Bank. “With interest costs now above average land value appreciation, farm operating profits will determine the magnitude of returns for financed land,” he said.

Cropland values soar by 15 percent in Midwest and Plains

High commodity prices and low interest rates fueled a sharp 15 percent increase in the value of cropland in the Midwest and Plains in the third quarter, according to surveys of ag bankers by four regional Federal Reserve banks. "Alongside prospects for further strength in commodity markets, the outlook for farm finances and agricultural land values through the end of 2021 remained strong," said a summary of the surveys.

JBS
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U.S. hits REvil ransomware group linked to attack on JBS

Trump administration tried to influence state responses to meatpacking plant outbreaks, documents reveal

Top staff at the Department of Agriculture, including former agriculture secretary Sonny Perdue, and at the Vice President’s office sought to influence how states responded to early outbreaks of Covid-19 in meatpacking plants last spring, a trove of documents reveals.<strong>(No paywall)</strong>

JBS says it’s back in full operation after ransomware attack

Meat processor JBS said all of its plants were fully operational on Thursday, four days after a ransomware attack shut down cattle slaughter plants in the United States, Canada, and Australia. Less than a day's worth of production was lost during the attack, the company said.

Ransomware attacks, including JBS, to be topic at U.S.-Russia summit

The United States is "looking closely" at whether to retaliate against Russian President Vladimir Putin for the ransomware attack on meatpacker JBS, said President Biden on Wednesday. The White House said all options for action were on the table and that Biden would raise the issue directly with Putin when the leaders meet in Geneva later this month.

‘The workers are being sacrificed’

new FERN investigation, published Friday in collaboration with Mother Jones, reporters Esther Honig and Ted Genoways tell the stories of workers in America's meatpacking plants who are facing high rates of Covid-19 — and of the industry's chilling disregard for its workforce. <strong>(No paywall)</strong>

San Joaquin Valley
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California again rejects groundwater protection plans as inadequate

Farmers in California’s San Joaquin Valley didn’t stop over-pumping groundwater when doing so contaminated local water supplies with arsenic, and they didn’t stop when the valley’s floor began sinking underneath them, by a foot per year in some places. State officials have long hoped to stop them with regulations—and last week, they decided that several local regulatory plans weren’t strong enough. <strong>(No paywall)</strong>

California’s San Joaquin Valley looks to solar, not farming, as climate change worsens

California’s San Joaquin Valley will become increasingly difficult to farm as climate change intensifies. But with the right regulations and policies, the state’s multibillion dollar agricultural belt could become something else — a clean energy powerhouse that the state desperately needs. At a panel event on Tuesday, energy professionals and community leaders gave a glimpse of the valley’s potential future — one where alfalfa fields give way to solar farms and carbon is sequestered beneath fallowed orchards. They also acknowledged how daunting an economic transition it would be.<strong> No Paywall </strong>

‘The truth is California does not have enough water’

California’s San Joaquin Valley is getting drier, hotter and more polluted as climate change intensifies, and its communities will need to embrace more equitable agricultural strategies in order to survive, according to local experts and political leaders.<strong>(No paywall)</strong>

High exposure to pesticides linked to higher risk of birth abnormalities

California water board gives farmers a break thanks to rain

A wetter fall has convinced California regulators to ease up on water restrictions for farmers and ranchers in the San Joaquin-Sacramento River Delta and its watersheds, says Reuters. A foot of rain fell on the northern half of the state in October, making it the second wettest on record in the northern Sierra Nevadas. The south remained dry.

produce
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Stung by coronavirus, producers ask government to buy their goods

Fishers, brewers, distillers: What aid do they need to survive Covid-19?

As the spread of the novel coronavirus disrupts business as usual across the country, food producers of all kinds are turning to the government for the help they say they need to stay afloat through the pandemic. From fishermen to produce growers to brewers, companies and organizations are lining up for federal aid as policymakers argue about the coming stimulus for small businesses.<strong>(No paywall)</strong>

Vegetable prices rise but food inflation stays dormant

Thanks to declines in food prices in 2016 and 2017, grocery store prices will stand at a lower overall level at the end of this year than they were at the end of 2015, said the monthly Food Price Outlook. For the second month in a row, USDA raised its forecast of price increases for fresh vegetables but forecast a scant 0.5 percent rise in food prices for the year.

WWF finds enormous rate of food waste in produce

In a study on food waste in the United States, the World Wildlife Fund found that on a specific set of farms in four states, 40 percent of tomatoes, 39 percent of peaches, 56 percent of romaine lettuce, and 2 percent of processing potatoes were left in the field rather than harvested.