The first report concludes that farm production costs are likely to increase 6% in 2022, which follows a 12% increase in 2021. This continues a trend stretching back several years. Since 2013, farmers have seen almost all production expenses increase. For example, livestock and poultry expenses have gone up 46% and marketing, storage and transportation costs have increased 59%.

Farmers are seeing a number of production cost increases including:

• Rising fertilizer, seed and chemical prices, which now make up to 17.5% of on-farm expenditures
• Rising fuel and energy prices, exacerbated by uncertainty due to the Russia-Ukraine conflict
• Increased costs of labor, both on-farm and for agribusinesses serving farms
• COVID-19 disruption of labor markets and production

“The rising prices for fuel, fertilizer and other supplies create an unwelcome counterforce to higher commodity prices,” .
“Higher prices for crops are getting a lot of attention right now and of course help farmers balance the books, but when expenses are rising just as quickly or even outpacing revenue, the financial gains evaporate. Right now, there are serious concerns about whether farmers will be able to access the supplies they need to put a crop in the ground.”

said AFBF President Zippy Duvall.

AFBF is working to ensure the administration and Congress understand the severity and potential implications of increased production costs and the limited availability of some supplies.

Future Market Intel articles will explore the rising cost of production expenses like seed, pesticides, energy, machinery, land, labor, credit and water. A Market Intel analyzing fertilizer prices was published in December 2021.

Source: Farm Bureau

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The following statement may be attributed to American Farm Bureau Federation President Zippy Duvall:

“I’m honored to have been chosen by President Trump to join the Great Economic Revival Industry group focusing on agriculture. America’s farmers and ranchers are deeply committed to feeding the nation during this crisis, but there are mounting challenges threatening their ability to keep putting food on Americans’ tables.

The lost food service and restaurant market due to the COVID-19 shutdown hit America’s farm families hard. The prices paid to farmers and ranchers have spiraled down, and in some cases, demand has disappeared, despite empty grocery shelves. No one is more eager than farmers to get the economy humming again. It’s imperative that we do this in a manner that keeps our families, neighbors, coworkers and communities safe.

We look forward to working with fellow agricultural leaders and the Trump administration to ensure healthy, affordable food continues to be available to families across the country and farmers are able to hold on as we return to some sense of normalcy in America.”

Source: American Farm Bureau Federation

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Nearby futures prices for nearly all the major crops have dropped by double-digit percentages. Pushed down by a 40% plunge in ethanol prices, corn prices have fallen 15%. Soybean prices are down 10%, while the price for cotton, which is heavily dependent on foreign manufacturing capacity, sank nearly 30%. Buoyed by demand in the U.S. and China, wheat prices have declined only 3%.

On the livestock front, since the beginning of the year, both beef and pork futures prices have declined more than 30%. Milk futures prices have also fallen sharply, with the price for milk used to make cheese down 28% and the price for milk used to make nonfat dry milk falling by 34%.

AFBF President Zippy Duvall said:

“The resilience of farmers and ranchers has been nothing short of stunning, but we must not take for granted their ability to hold on with prices spiraling, taking all hope of breaking even with them. I stand by my assurance that our food supply remains strong, but America will have fewer farms and ranches supplying it unless USDA acts quickly to deliver aid and our economy is released from the grips of this pandemic soon.”

Dr. John Newton, American Farm Bureau Federation chief economist, said:

“The drop in demand is pushing the prices farmers would get paid for their crops to lows that may make it very difficult for them to justify putting another crop in the ground this spring. While the whole country is optimistic there is an end in sight, the question of when the economy will be healthy again is fueling further market uncertainty.”

“It’s worth noting that these prices are in no way tied to what shoppers pay in the grocery store. There are a lot of hands through which these commodities pass from the farm to the fork, so a drop in prices paid to farmers very rarely, if ever, translates into lower consumer prices immediately,”

Newton explained.

For more detailed information about futures prices, see this Market Intel article.

Source: American Farm Bureau Federation

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The following statement may be attributed to American Farm Bureau Federation President Zippy Duvall:

“Farmers and ranchers will not let Americans down during this unprecedented crisis. We are asking Congress to do the same by us, because thousands of producers will need help with cash flow given the rapid and unanticipated decline in commodity prices, the likely closure of ethanol plants, and the decline in full-service restaurant and school meal demand, among other changes.

“Congress must have farmers’ backs by expanding USDA’s borrowing authority under the Commodity Credit Corporation. There is a long history of the CCC being tapped to responsibly support agriculture in times of crisis. This should be no different.

“Farmers and ranchers are proud to be trusted to feed nearly 330 million Americans and we’ll continue working every day to do so, but our ability to continue producing food depends on our ability to keep our farms and ranches afloat. We urge Congress to pass coronavirus relief including full CCC funding and authority without delay.”

Source: American Farm Bureau Federation

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The following statement may be attributed to American Farm Bureau Federation President Zippy Duvall about the commitment of farmers and ranchers, as well as a serious concern related to the U.S. government’s decision to suspend visa processing in Mexico to combat the spread of the virus.

“Farmers and ranchers remain committed to doing the work in the fields, orchards, and barns across the country to ensure Americans have access to healthy, affordable food.  Particularly now, during these challenging times, and assured food supply allows families to focus on the safety and well-being of their loved ones. We commend the good work being done to protect families and our population and appreciate all the workers focused on ensuring food gets from our farms to grocery stores, and of course, we are grateful for the health care workers ensuring we can treat those who are ill and contain the pandemic.

“The decision to halt visa application processing in Mexico will restrict the number of immigrant workers being allowed to enter the country. Under the new restrictions, American farmers will not have access to all of the skilled immigrant labor needed at a critical time in the planting season. This threatens our ability to put food on Americans’ tables.

“We fully support the administration’s efforts to protect the public during this health crisis. We are in constant contact with USDA, the State Department and the White House. We have urged them to find safe, practical ways to admit farm laborers as emergency workers for visa purposes while still protecting public health. Failing to do so will impact our ability to provide a healthy, affordable domestic food supply.

“We will remain watchful and vigilant to ensure U.S. agriculture and others in the food supply chain are able to continue feeding America, as we do 365 days a year. We are in close communication with our state Farm Bureaus, Congress and the administration as we all work together to protect our food supply and our communities in the face of the coronavirus pandemic.”

Background:

• The United States will suspend routine immigrant and nonimmigrant processing visa services in Mexico beginning March 18, 2020.
• In 2019, 258,000 immigrant workers were approved under the H-2A guest worker program.
• Immigrant laborers with previous work experience in the U.S. and who do not require in-person interviews will be allowed to return to the H-2A program.
• U.S. Agriculture Secretary Sonny Perdue is aware of the issue and has publicly pledged to work with the State Department to ensure needed farm laborers are safely admitted.
• The USDA asks that questions regarding the H-2A program be directed to  farmers.gov/manage/h2a or email aglabor@usda.gov

Source: American Farm Bureau Federation

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“Reliable access to broadband is no longer a luxury but a necessity for farmers, ranchers and their rural communities. This legislation will create a more accurate National Broadband Map, which will help ensure resources are targeted to the areas that need it most. Farm Bureau thanks members of both chambers who diligently worked to pass this legislation and are committed to ensuring all Americans, including those in rural communities, have broadband in their homes, at their businesses, and on their farms.”

The DATA Act requires broadband providers to report more specific data to create a significantly more accurate and granular National Broadband Map. With more precise data, federal agencies can target funding to areas that need it most. Current broadband coverage maps are inadequate because they rely on census block data to determine which areas are covered. Census blocks are too large in rural and remote locations to accurately determine need. If even one household in a given census block is reported by a provider as being served, then the entire block is considered served. Census blocks larger than 2 square miles comprise more than 64% of the U.S. land area, so every rural area is impacted by this problem in some way.

Source: American Farm Bureau Federation

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Farm State of Mind Campaign to Expand Impact in Rural Mental Health

Bayer and the American Farm Bureau Federation announce the transition of Bayer’s Farm State of Mind campaign, an initiative to raise mental health awareness among the farming community, to Farm Bureau. The campaign aims to reduce the stigma surrounding the topic of mental health in rural communities and to provide relevant information to farm families on this important topic. Farm Bureau plans to combine the Farm State of Mind assets with those of its ongoing Rural Resilience campaign, expanding the reach and effectiveness of its rural mental health initiatives.

Challenging weather, destructive pests, trade disputes, labor shortages and market volatility over the past few years have brought an unprecedented level of pressure on America’s farmers. A 2019 Farm Bureau survey shows that an overwhelming majority of farmers and farm workers say financial issues, farm or business problems and fear of losing their farm negatively impact their mental health. In addition, 48% of rural adults said they are personally experiencing more mental health challenges than they were a year ago. Nearly one in three farmers don’t feel comfortable talking to friends or family members about solutions for a mental health condition.

AFBF President Zippy Duvall said:

“As a third-generation farmer, I’m familiar with the stress of farm life, and I’ve heard heartbreaking stories as I’ve traveled the country about warning signs missed and loved ones lost. We’d like to thank Bayer for taking the initiative around this important topic and are excited to expand our impact by growing this campaign to connect even more farmers and ranchers with the resources they need.”

Complicating this issue is that many farmers are reluctant to talk about the effects of stress or seek help. The Farm State of Mind initiative provides farmers with resources, encourages conversations and reduces the stigma surrounding the issue of mental health. Transitioning this program to an organization as trusted as Farm Bureau will greatly expand its reach and effectiveness among farmers.

Lisa Safarian, President of Bayer Crop Science for North America, says:

“Bayer recognized the need to help raise awareness on the important issue of mental health in farm communities – these are difficult conversations to have and our heart goes out to those individuals and families who have been impacted. That’s why we developed the Farm State of Mind campaign. It was important for us to provide information and resources on the topic to those who needed it, but we quickly realized that this issue is much bigger than any one single company and no group is better positioned than Farm Bureau to take the lead on this campaign to help realize its full potential.”

The campaign is designed to encourage an open dialogue among farmers through social channels and offers a variety of tips, resources, and referrals to address mental health needs. Farm State of Mind has already reached millions of farmers across the country and that number continues to grow.

Bayer is also providing Farm Bureau with a financial contribution to help support the transition and future success of the Farm State of Mind campaign.

Source: American Farm Bureau Federation

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AFBF President Zippy Duvall said:

“As farmers and ranchers, we often feel we are at the mercy of factors beyond our control, whether it’s weather or the actions of foreign governments, so it’s important to take control where we can, and this new member benefit can help us do that. Understanding how commodities markets work and, most importantly, making them work for each farm as a risk management and marketing tool, is crucial. This important partnership will give Farm Bureau members access to invaluable education and resources to help them succeed, a central goal of the Farm Bureau mission.”

Through this partnership, eligible state Farm Bureau members can receive:

• Ten free trades each year when opening a new trading account.
• A 20% discount on an annual subscription to Know-Risk Crop Marketing, giving them access to powerful software tools and expert advisors.
• Access to INTL FCStone’s Market Intelligence expertise at reduced rates.
• A 40% reduction in fees to attend market outlook conferences and educational seminars designed to help members utilize and understand targeted risk management strategies.

Source: American Farm Bureau Federation

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The Foundation, through the White-Reinhardt Fund for Education, sponsors the scholarships and grants in cooperation with the American Farm Bureau Women’s Leadership Committee. The fund honors two former committee chairwomen, Berta White and Linda Reinhardt, who were trailblazers in early national efforts to expand the outreach of agricultural education and improve agricultural literacy.

Daniel Meloy, executive director of the Foundation said:

“We are excited to celebrate and boost the efforts of these outstanding educators and community programs through the White-Reinhardt Fund,” said. These teachers and volunteers are inspiring students to understand where their food comes from and how they can be part of innovative solutions to keep agriculture sustainable for generations to come.”

The Foundation awarded 10 teachers and classroom volunteers with $1,500 scholarships to attend the National Ag in the Classroom Conference, to be held in Salt Lake City, Utah, June 23-26.

This year’s recipients are: Leah Slaughter, Lake Weston Elementary School, Orlando, Florida; Jenna Stevens, Clinton County Ag in the Classroom, DeWitt, Iowa; Nancy Smith, Bentwood Elementary, Olathe, Kansas; Audrey Varney, Maine Cooperative Extension Maine 4-H/University of Maine Farmington, Turner, Maine; Christopher Arrington, Marion Public Schools, Marion, Michigan; Karrie Newton, Northern Granville Middle School, Bullock, North Carolina; Matthew Koth, Highland Elementary School, Omaha, Nebraska; Brianne Willson, Camden Middle School, Ava, New York; Debra Nelson, Bottineau High School, Bottineau, North Dakota; and Melissa Shirk, Philadelphia Elementary, Loudon, Tennessee.

The conference helps educators from across the nation learn how to incorporate real-life agricultural applications into science, social studies, language arts, math and nutrition lessons. Scholarship recipients were judged on their past use of innovative programs to educate students about agriculture as well as plans to implement information gained at the NAITC conference in their own lesson plans and share the information with other teachers and volunteer educators.

The Foundation also awarded 10 communities with $1,000 grants, which will be allocated through county Farm Bureaus this spring and used to create new agricultural literacy projects or expand existing agricultural literacy efforts. Criteria for selecting winners included: the effectiveness of demonstrating a strong connection between agriculture and education; how successfully the project enhances learner engagement in today’s food, fiber and fuel systems; and the processes and timelines for accomplishing project goals.

The 2020 spring grant recipients are: Kent County Farm Bureau, Delaware; Banks County Farm Bureau, Georgia; Barrow County Farm Bureau, Georgia; Douglas County Farm Bureau, Georgia; Hall County Farm Bureau, Georgia; Franklin County Farm Bureau, Illinois; McLean County Farm Bureau, Illinois; Randolph County Farm Bureau, Indiana; Washington Farm Bureau, Tennessee; and Moore County Farm Bureau, Texas.

Source: American Farm Bureau Federation

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“These hard-working entrepreneurs have demonstrated their commitment to take on some of the biggest challenges in agriculture. Their innovation will help American farmers continue to grow healthy, affordable products for consumers,” said AFBF President Zippy Duvall. “It’s a pleasure to recognize and award these outstanding businesses to help them deliver solutions that will drive U.S. agriculture forward.”

The competition provides an opportunity for individuals to showcase ideas and business innovations in agriculture. This is the sixth year of the Challenge, which was the first national business competition focused exclusively on rural entrepreneurs launching food and agriculture businesses.

Farm Bureau would not be able to recognize and support these rural businesses without generous funding provided by sponsors Farm Credit, Bayer Crop Science, John Deere, Country Financial, Farm Bureau Financial Services and Farm Bureau Bank.

The 10 semi-finalist teams were awarded $10,000 each. They are:

Ag Butler, Lebanon, Missouri. Team lead: Kevin Johansen

Green State Biochar, Barton, Vermont. Team lead: Donna Pion

Hivelend, Baltimore, Maryland. Team lead: Dawn Musil

HydroSide Systems LLC, Coeur d’Alene, Idaho. Team lead: Dana Mohr

Innovative Agricultural Technologies, LLC, Carthage, North Carolina. Team lead: Matthew Parker

Rantizo, Iowa City, Iowa. Team lead: Michael Ott

Re-Nuble, New York, New York. Team lead: Tinia Pina

SwineSentinel, Ames, Iowa. Team lead: B.J. Brugman

The Bene Baby Company, Inc, Nekoosa, Wisconsin. Team lead: Nikos Linardakis

Tractor Zoom, Waukee, Iowa. Team lead: Kyle McMahon

Semi-finalist teams have the opportunity to participate in pitch training provided by Cornell University and will travel to the AFBF Annual Convention in Austin, Texas, in January to compete to be the Farm Bureau Entrepreneur of the Year. The 10 semi-finalists will compete on Friday, Jan. 17. The final four teams will advance to compete on Sunday, Jan. 19, with the opportunity to win:

• Farm Bureau Rural Entrepreneur of the Year for a total of $30,000
• People’s Choice Award (chosen by public vote), for a total of $25,000

Source: American Farm Bureau Federation

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