Top Producer Summit

Beyond the Blame Game: Navigate the Mental Toll of Modern Ag

Fri, 03 Apr 2026 13:55:09 GMT

When market pressures mount, it is easy to succumb to the “blame game.” Yet, the most resilient operations are those that anchor themselves in a mission larger than the current balance sheet. For leaders like James Burgum and Lamar Steiger, coping with stress isn’t just about managing the books, it’s about managing the mindset.

The Many Hats of the Modern Producer

James Burgum, CEO of The Arthur Companies, believes the first step in managing stress is acknowledging the sheer weight of the roles farmers play.

“One of the things I did when I stepped into my role is an exercise where I said to our team, ‘Help me understand all the hats on the farm – farmworker, agronomist, grain merchandiser, mechanic, truck driver, snow removal lead, banker, economist,’” Burgum said during a discussion at Top Producer Summit. “You start to go down the list, and its dozens and dozens of roles that an individual farmer plays.”

By recognizing the complexity of these roles, Burgum argues that producers can move toward servant leadership—prioritizing the team’s needs.

“There are things that are much more important and much bigger than the challenges we’re wrestling with on the job every day,” Burgum says. “It’s hard to juggle all the balls, but at the end of the day, we want everyone on our team to make sure they get home at night and be there for their families.”

Choosing Abundance Over Scarcity

Lamar Steiger, owner of The 808 Ranch, learned about stress through the lens of his father, a man who seemed to face every possible setback: health crises, financial downturns and missed market peaks.

The farm struggled during times of high interest rates in the late ‘70s and early ‘80s and his father was diagnosed with an autoimmune disorder, Guillain-Barre, that left him paralyzed for six months.

Still, his dad always had an attitude of abundance, not scarcity, Steiger says.

“With my brothers holding other obligations, I was left to milk the cows,” Steiger says. “We were so far behind, and all my dad would say is, ‘It could be worse.’”

Breaking the Silence

Eventually, his family lost the dairy. After hitting rock bottom and battling depression , Steiger realized that the “tough it out” mentality was a liability, not an asset.

“When the stresses pile up, you’ve got to find help,” Steiger says. “I wasn’t ‘man enough’ to step up and say, ‘Hey, something’s wrong here.’ I should have said, ‘Time out—this is not working.’”

Steiger’s advice for those feeling the weight of the current market is simple: Find your “who.” Whether it is a spouse, a neighbor or a professional, talking through the stress is the only way to separate your self-worth from the volatility of the markets.

“In agriculture, we’re so reliant on outside forces,” Steiger says. “You’ve got to have an attitude that it’s going to work out. As my Dad would say, ‘Well, we never missed a meal.’ That was his bottom line for ‘It’s okay.’”

From Constraints to Catalysts: How Ag Leaders Turn Hardships into Strategy

Thu, 02 Apr 2026 18:19:01 GMT

In an industry defined by “one-year-at-a-time” cycles, the greatest threat to a growing operation isn’t just a market downturn—it’s the inertia that comes with size. Farm Journal CEO Prescott Shibles argues that long-term survival requires a rare blend of faith and agility. To maintain an entrepreneurial mindset, leaders must lean into “conviction” as the core of a strategy that survives the lows.

Here is how four industry leaders are turning today’s constraints into tomorrow’s differentiators.

1. Build when times are hard.

When Brent Smith, president and CEO of NewLeaf Symbiotics, joined the company in 2023, the grain market was entering a significant down cycle. While some saw a risky time to lead a startup, he saw an opportunity.

“I learned in my first startup that the best time to build a business is in hard times,” Smith said said during a discussion at Top Producer Summit. “Because if you can’t withstand tough times, you’re not going to survive long term.”

For Smith, survival meant doubling down on the company’s core: science. Despite the pressure to cut costs, NewLeaf continues to spend half of its operating expenses on science.

“It would be very easy to peel that back,” he admits. “But we focused on projects that make the most impact the quickest, while keeping an eye on the long-term innovation in our pipeline.”

2. Control what you can control.

Farmers face the ultimate constraint every year: the weather. Scott Beck, president of Beck’s Hybrids, recalls the planting crisis of 2019 when constant rains kept tractors out of the fields well into May.

“I was concerned for our customers not being able to plant, but also for us not being able to plant our seed for the next year,” Beck says. “There was nothing that we could do to control the weather, but we could control how we interacted with our customers.”

Rather than retreating, the Beck’s team focused on transparency and empathy, using video series to connect with farmers and even forming small groups for prayer and support. Ultimately, they wanted farmers to know they cared and were there to support them however they could.

Despite the financial reality of what could happen if farmers didn’t plant and returned seed, Beck’s decided their course of action would not include employee layoffs. Instead, they prepared to sell land to protect their people.

“Fortunately, the weather broke and everybody was able to get planted,” he says. “Then the second miracle happened. We had the second warmest September on record, and that’s what brought the crop through to enable 2019 to not turn out as bad as it started.”

3. Turn disadvantages into advantages.

In 2014, Lamar Steiger, owner of The 808 Ranch, was tasked with a monumental challenge: helping Walmart reinvent its beef supply chain. At the time, the retail giant was at a disadvantage, forced to accept whatever the major meatpackers provided.

Steiger’s strategy was to turn that lack of control into a new kind of independence.

“I convinced the Walmart team to go around the traditional supply chain,” Steiger says. Today, Walmart sources 28% of its beef from its own “farm-to-table” supply chain.

There’s no question that decision was really good for Walmart. But Steiger says it was also really good for him personally.

“It reminded me that no matter how big you are, there are always challenges,” he says.

4. Create “white space” for the future.

When the day-to-day tasks of an operation become overwhelming, long-term strategy is often the first thing to go. James Burgum, CEO of The Arthur Companies, believes leaders must intentionally carve out “white space” for their teams.

“It’s important to find ways where people can actually spend their time working on the business, not just in the business,” he says.

By protecting time for team members to execute ideas that are three to five years out, Burgum manages the tension between short-term urgency and long-term viability.

“It’s hard to step away from the daily fires you’ll face in your operation, but it’s important,” he adds. “How we manage that tension of short term and long term is creating that white space and making sure that we consciously work on the business.

The Long Game

Ultimately, resilience in agriculture is about knowing when to push and when to pivot.

“You have to know when to put the gas down, and you need to know when to tap the brake,” Smith says. “And regardless of what you are doing, you need to stay focused on what you’re doing.”

Whether it is investing in science during a downturn or choosing customer empathy over the bottom line, these leaders say constraints don’t have to be roadblocks; they can be the very catalysts that drive an operation forward.

When Risk in a Crisis Becomes a Turning Point: Lessons from Top Producers

Wed, 25 Feb 2026 16:51:43 GMT

In a volatile agricultural landscape, risk is a constant. Weather, markets, input costs, succession issues, cyberthreats and pandemics all push farm families into uncomfortable decisions. During the “When Taking Risk in Times of Crisis Pays Off” panel at Top Producer Conference, six producers shared how they’ve navigated those moments — and what they’ve learned when the stakes were highest.

The panel, moderated by Rena Striegel, president of Transition Point Business Advisors in West Des Moines, Iowa, included: Edward and Rebecca Dalton, of Dalton Farms, Wakeman, Ohio; Chris Payne of 3B Hay & Straw, Ontario, Ore.; Wendy Alsum Dykstra and Heidi Alsum Randall of Alsum Farms and Produce, Friesland, Wis.; and Ron Rabou of Rabou Farms, Albin, Wyo.

Their stories spanned family tragedy, ransomware, COVID-19 disruptions, organic transitions and bold expansion moves — offering a candid look at what it really means to take risk in agriculture.

Here are five key takeaways from the conversation:

1. Crisis as a Catalyst, Not a Dead End

For several panelists, a crisis didn’t just test their operations; it forced a complete re-evaluation.

The Daltons describe being emotionally exhausted and financially stuck before a Top Producer event pushed them to question everything.

“We were floundering in agriculture,” Rebecca says. “We were not making any money, really. We were just doing it to do it and to continue that legacy. And we were to the point where, like, ‘why are we doing this?’ You know, we only have so many days here. We only have so much time here.”

After a series of family tragedies and persistent unprofitability, they made a bold move to transition about half their acres to organic production. The shift brought much-needed profitability and renewed purpose.

“The risk was I was going to quit farming,” Edward explains. “We needed something and a spark and to just want to farm again.”

In Wyoming, Rabou’s turning point came after the sudden death of his father and the unraveling of a complex family ranch structure. Walking away from a fifth-generation operation was emotionally painful, but necessary.

“We did a lot of soul searching, and I kind of came to the conclusion that the risk for me for not doing something was much greater than actually doing something,” he says.

Rabou and his wife started essentially from scratch, building an organic grain operation and a hunting enterprise, borrowing heavily despite having grown up in a “never borrow” mindset.

2. Numbers Matter — But They Aren’t Everything

A recurring theme was the importance of knowing your numbers while recognizing data alone cannot drive every decision.

“Knowing our numbers is what really helped us,” Edward explains. “If you know your own data front and back, when you really get into those tight situations that you need to be able to think and move… sometimes you just have to move, whether you want to or not.”

Recently, the Daltons made a bold move back to conventional production. The Daltons’ choice to step out of organic was a conscious decision to go against what the spreadsheet said, in favor of their family and team.

“Right now, when I’m hauling $12 beans instead of $40 beans, like we were for a few years, I’m not really happy with that decision, but it was too much time,” Edward explains. “We were losing time with our boys, and that ultimately is why we went back, even though we were making more money per acre.”

Rabou emphasizes having a clear philosophy about leverage: “I have no problem borrowing money on appreciating assets, but I have to be very careful about borrowing money on assets that depreciate.”

For him, land and infrastructure are long-game investments, and he admits he more often regrets the risks he didn’t take than the ones he did.

“I’ve never looked back and said I shouldn’t have made that investment,” he says. “But I have looked back a multitude of times and said, ‘Wow, I wish I would have made that investment.’”

3. Fear vs. Action: Moving When the Window Opens

Panelists agree that fear is often the biggest barrier to seizing opportunity — especially when decisions must be made quickly.

Oregon onion grower and packer Payne describes how, in the middle of a tense meeting, he and another young partner were essentially challenged to buy out older shareholders in an onion packing facility. They had seconds, not months, to commit.

His broader advice to producers now: “Don’t get caught up in fear. If you let fear dominate your thought processes, you’re never going to succeed.”

Preparation helps in those “15-second” decision moments, Payne adds. Continually learning, attending conferences and thinking through scenarios ahead of time gives you a framework so you’re not starting from zero when opportunity knocks.

Edward adds, “You absolutely know how it’ll go if you don’t try. If you’re not willing to try, it’s not going to work. You can’t move forward if you don’t do something or try.”

4. Cyberattacks, COVID-19 and the Power of Systems

For Alsum Farms & Produce crisis came in very modern forms: a ransomware attack and then the COVID-19 pandemic.

“At 3 a.m. one morning in October, I got a call from our IT manager that we had been hit with ransomware,” Wendy explains.

She explains recovery from the attack required all hands on deck, multiple external experts and months of work to protect traceability and keep product moving. The aftermath included layered backups, new server and email security, user training and an ongoing relationship with cybersecurity and insurance professionals.

Just months later, COVID-19 hit. With 90% to 95% of their business retail-focused, the Alsum team quickly formed a COVID-19 response group, redesigning workflows to keep employees safe and shelves stocked.

The sisters say one key result from COVID-19 was when another supplier faltered, the Alsums were ready to step up for a major retailer — turning crisis into opportunity.

5. Relationships as a Strategic Asset

Beyond capital and land, the panel underscores the value of relationships — with peers, competitors and buyers.

Edward, Payne and Rabou maintain a group text, often used when one of them is wrestling with a big decision.

“Have people in an industry that you can trust and communicate with,” Edward stresses. “There’s been days they’ve literally had to walk me off a ledge when I’m trying to figure out how to make a decision.”

In the potato and produce world, Heidi says, competitors often become collaborators when the chips are down.

“The nice thing about the potato industry and the produce industry in general that we’ve experienced is that it’s been very collaborative,” she explains.
Rabou adds he sometimes sells grain below top price to maintain long-term relationships and outlet security.

“Those relationships to me are more important than making the dollar in the moment,” he explains.

His broader warning to producers is to stop comparing your operation to your neighbors’.

“You really have to determine what works good for you as an individual, you as a couple, you as a business,” he stresses. “Stop paying attention to what everyone else is doing.”

The Bottom Line from Top Producers

Across all their stories, the panelists echoed a few core principles:

Know your numbers but also know your values.
Act in crisis — don’t let fear make the choice for you.
Be willing to pivot, even away from something profitable, if it no longer fits your life or strategy.
Invest in appreciating assets and in relationships, both of which can pay off long after the crisis has passed.

In short, risk in times of crisis isn’t just something to endure; handled intentionally, it can be the turning point that reshapes a farm for the better.

Global Protein Demand Surges 2% Annually as Producers Navigate Volatile Markets

Thu, 19 Feb 2026 19:27:59 GMT

While global protein demand is growing at roughly 2% annually, livestock producers must navigate a complex landscape of regional shifts, disease risks and policy battles that will define the next decade of production.

“The Global Protein Outlook: Demand, Trade and the Supply Picture” panel discussion during this year’s Top Producer Summit brought together experts from the beef, dairy and pork industries to explore demand, trade dynamics and risks facing the livestock industry today.

Beef, dairy and pork experts explain how foreign animal disease and climate extremes threaten herds and what risk-management strategies producers can use to stay profitable.

(Farm Journal)

On the panel were:

Kenny Burdine, University of Kentucky agricultural economist
Stephen Cain, National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC)
Renee Strickland, Strickland Ranch & Exports, Inc.
Scott Hays, Missouri Pork Association

Five key takeaways from the discussion include:

1. Global protein demand is structurally strong, driven by population growth, rising incomes and a broad cultural focus on protein.

“Globally, we are seeing an increase in protein demand broadly across the board,” Cain summarizes.

He describes a few demand patterns:

Regions like sub-Saharan Africa and India: demand mainly from more mouths to feed, not big per-capita jumps.
Regions like Southeast Asia and China: both population and per-capita protein consumption have risen sharply.
Developed regions like the U.S. and Europe are in a fortified-protein trend: “We are cramming protein into everything,” Cain describes. “We have protein water on the market now … it’s across the world.”

Plant-based and alternative proteins seem to be a niche.

Burdine explains: “They’ve not taken any market share. It’s still kind of staying in that niche and not impacting the major protein categories.”

Cain adds the dairy alternatives are seeing category declines, with more consumers realizing milk is a whole food compared to the ingredient in an almond beverage.

2. Supply and trade are shifting toward more regionalized production and stronger competitors, but U.S. strengths in productivity and quality remain critical.

On the supply side, Cain explains rising demand does not always translate into equally increasing exports.

“We’ve seen that slow down,” he says. “More of that protein demand is being filled by domestic production, more regionalized players.”

He links this to some pushback against globalism and more inward-looking, domestic strategies. The U.S. remains a key exporter but faces growing regional competition.

Burdine adds while the U.S. has the smallest cow herd since 1961 , productivity gains mean more output per animal. He points out Brazil passed the U.S. as the largest beef producer.

“It’s not that there’s not competition out there, but we absolutely [have] a great advantage here in the states,” he says.

From pork’s perspective, Hays says the U.S. pork supply should stay steady into 2026, while global pork supply is shrinking. He predicts China may decrease 1.4 million sows, Spain is cutting numbers due to African Swine Fever, yet Brazil is continuing to grow its numbers.

3. Risk and resilience — disease, climate extremes and feed quality — are central concerns, making biosecurity, preparedness and careful storage essential.

Hays highlights herd health is the biggest concern for all livestock producers.

“What keeps every producer up is herd health,” he stresses.

He points out to these concerns today:

Porcine Reproductive and Respiratory Syndrome (PRRS): PRRS causes “very, very significant losses” and takes a multiyear recovery
Foreign animal diseases – African Swine Fever, foot-and-mouth disease and New World screwworm .

“Foot and mouth should scare everybody at this conference,” he stresses. “We would lose all of those exports on all of those products, from dairy to beef to pork.”

From the cattle perspective, Strickland adds climate extremes are a concern for ranchers today.

“I also fear the climate change extremes that we’re all experiencing,” she says. “Extreme drought, extreme rains… that’s really challenging for me as a producer.”

More information about disease challenges facing the livestock producers today:

PRRS ‘Still Sucks’: New Strain Plagues Pork Producers in Ohio

Strategies to Help Raise PRRS-Positive Pigs

Is a World Without PRRS Possible? Two Veterinarians Say ‘Yes’

Help Protect the U.S. from African Swine Fever

African Swine Fever: What it means for America if it were to get into the country

What Do Foot-and-Mouth Disease Outbreaks in Europe Mean for the U.S.?

The Smell You’ll Never Forget: A Calf Infested with New World Screwworm

New World Screwworm: An Infestation, Not Infection

4. Consumer behavior shows both opportunity and caution: strong protein demand despite high prices, but some trade-down, weaker foodservice and ongoing debates over “ultra-processed” foods.

Burdine compares today’s protein enthusiasm to past diet waves like Atkins and South Beach, but emphasizes: “Consumer trends are always challenging, but it’s the most encouraging in my career.”

Two features about the demand craze he points out are:

How widespread it is across species and products, including eggs.
Price behavior — despite very high retail prices, demand remains strong.

Burdines explains this suggests a deeper, more durable shift for increased protein demand, not just a short-lived fad.

Cain adds in the protein world trade-down due to inflation and increasing costs is real, especially in foodservice.

He notes lower-income consumers pull back on fast food and quick service, which hurts cheese and dairy demand. Cheese consumption, which usually increases about 2% per year, fell 2% last year, which he says is largely due to weaker foodservice traffic.

Burdine adds that trade-down happens across and within species.

Hays emphasizes the new dietary guidelines are a big win for protein and specifically animal protein.

“We’re excited,” he says. “Pork is at the top on the left-hand side, but it’s more about shifting the conversation. We’re moving away from ‘animal fat makes you fat.’ Meat provides hard-to-replace vitamins and minerals, including in the fat portion.”

He did share concern about how ultra-processed concepts are being used.

“We’ve taken this word ‘ultra-processed’, and now it’s a household word. It is the single unit of measure [for] whether or not we should or should not eat something,” Hays says. “And we don’t even know what the definition of it is.”

He explains if ultra-processed is the only metric, a sausage patty and a honey bun look identical, which is misleading for real nutrition decisions.

Cain adds allowing whole milk in schools is a big win, but schools are facing a higher cost than skim and calorie caps that make menu-balancing harder.

5. Strategic actions for producers: robust risk management, efficiency and quality focus, diversification and a commitment to mentoring the next generation.

Cain encourages producers to use risk management and pricing strategies to help make them viable at today’s prices.

“If you’re not economically viable today, you’re not going to be economically viable tomorrow,” he says.

Burdine adds to think about risk management broadly considering price tools and protection from acts of God. This includes biosecurity strategies and insurance.

“Focus on efficiency and quality to stay competitive in good and bad markets,” he stresses.

Hays asks grain producers to protect feed quality. Poorly stored corn or DDGs (dry distillers grains) can create toxin issues that hurt animal performance and reduce demand.

“Your consumer really needs it to be high quality,” he stresses. “And we’ll buy more of it.”

Strickland encourages producers to diversify their income and not put all their eggs in one basket. Her business includes a ranch, export company and a non-ag title search company.

“When one of them is not doing so well, something else bails me out,” she summarizes. “If you’re in a position that you can diversify just a little bit, it can get you through the hard times.”

The final message was a question: Who are you mentoring and investing in? All producers need to consider how they are going to pass information on to the next generation and help them be successful and thrive.

Your Next Reads:
U.S. Cattle Inventory Hits 75-Year Low at 86.2 Million Head
What Do Consumers Buy in the Meat Aisle When Money is Tight?
New Dietary Guidelines Move Food Pyramid Closer to the Farm

A 2014 Repeat? Why This Meteorologist Sees 'Bumper Crop Potential' for 2026

Wed, 11 Feb 2026 17:41:53 GMT

The weather outlook for 2026 is one of “cautious optimism.” While there is less immediate concern compared to the start of 2025, Matt Reardon, senior atmospheric scientist for Nutrien Ag Solutions, says the “spring predictability horizon” remains a factor where conditions could still shift.

El Niño and La Niña are the two opposing phases of the El Niño-Southern Oscillation (ENSO) cycle. This cycle describes the fluctuations in temperature between the ocean and atmosphere in the central and eastern tropical Pacific Ocean.

“That gives us some sense of where things might tilt weather-wise, particularly in winter,” Reardon says. “In summer, there are some correlations, too.”

For many U.S. farmers, El Niño is often welcomed because it can bring increased precipitation to major growing regions, though it can also cause flooding in some areas. Meanwhile, La Niña is frequently associated with increased drought risk in the Southern Plains and Mid-South, which can lead to yield-robbing conditions if the pattern persists into the summer.

“We tend to root for El Niño, particularly in North America, as it tends to be beneficial for our growing regions with a little more precipitation,” Reardon says. “But those correlations are very far from a home run. We’re talking just a slight lean in that direction.”

He says the forecast predicts fading out of La Niña pretty quickly in spring and heading toward an El Niño, potentially by summer.

What Can Farmers Expect This Spring?

“What I’m looking at as we head toward both spring planting then summertime heat and real drought risk in June and July is that one sea surface temperature is closer to home in the Northeast Pacific,” he says. “We found, especially this decade, that as those sea surface temperatures go, our season tends to go.”

Last year, with all the drought concerns going into 2025 growing season, water temperatures in the Northeast Pacific stayed warm – actually record warm.

“We had a great growing season for the most part with plenty of moisture, if not too much, in some areas,” Reardon says. “In 2023, those water temperatures stayed a little bit cooler, and we had more drought risk.”

Reardon admits he’s learned that “cautious optimism about where things are headed” is often helpful when determining weather expectations.

As he looks toward 2026, he sees a similar start to 2014, which was a huge bumper crop year.

“But things can change,” Reardon adds. “There’s that spring predictability horizon we’ve got to leap over here.”

Is Drought Likely in 2026?

One of his concerns is that the latest USDA Drought Monitor shows some overwinter drought, which he says isn’t uncommon.

“We’ve seen a lot of that this decade. Spring rains can quickly make up for a lot of that,” Reardon says.

On Feb. 9, the Southern Plains saw a lot of grass fires. He says some of those were prescribed burns, but winds will be picking up again over the next 10 days.

“We are keeping an eye on the Southern Plains,” Reardon says. “They are getting some rain over the next seven days, but that’s an area that’s so prone to drought, especially in spring. If we see it build there and then try to leach over to Little Rock or Nashville, that can start to become a concern.”

In big yield-robbing drought years, it often flares in the Mid-South or even the Southeast over into the southern plains, first in April or May, and then tends to spread north.

“That’s a common behavior of some of these big concerning years of the past like 2006 or 2012, so we are keeping an eye on that right now,” he says. “But the good news is, in the next 10 days, we are going to get some moisture into the ground.”

44 Million Acres: The New Frontier of Farm Consolidation and Growth

Tue, 10 Feb 2026 18:00:31 GMT

At the 2026 Top Producer Summit , Farm Journal Intelligence unveiled new farmland insights derived from predictive modeling and deep-data analysis. The research focused on the shifting landscape of land acquisition, identifying which operations are at risk of consolidation, who is positioned for growth and where the most significant opportunities lie.

Here are the six primary findings for farm businesses:

1. Scale Does Not Immune Operations from Consolidation.

(Farm Journal)

While smaller operations face the highest risk — with 58% of small farms “at risk” for sale or acquisition before 2030 — size is not a complete safeguard. Research shows the risk of consolidation or ownership transfer never drops below 27%, even for the largest operations. Furthermore, crop diversity made minimal impact on these odds; the likelihood of transition remains constant whether a farm produces one crop or more than 11.

2. Geography Trumps Diversification.

(Farm Journal)

Regional location is increasingly becoming a primary driver of financial success, often outweighing the benefits of operational diversification. As regional market divides grow, farmers and ranchers are finding that local market conditions and individual circumstances dictate their trajectory more. State-level or even county-level effects are more indicative of their situation than national trends.

3. The 44-Million-Acre Transition.

(Farm Journal)

Nearly 15% of American cropland is projected to change hands within the next three years, driven by generational transfers, continued consolidation and economic pressures. Farm Journal data identifies the Midwest as the epicenter of this shift, with roughly 12 million acres likely to transition. Nationwide, that total reaches a staggering 44 million acres.

4. Mapping the “Sweet Spot” for Expansion.

(Farm Journal)

By plotting cost per cropland acre against the volume of land likely to transition, clear opportunities for expansion emerge. For producers looking to grow their footprint, the most viable opportunities are currently concentrated in Kansas, Texas, North Dakota, Missouri, and Oklahoma, according to this research.

5. Integrity Is the Top Currency in Rental Markets.

(Farm Journal)

When more than 400 landowners were surveyed about tenant selection, integrity ranked as the most critical factor. Interestingly, age was reported as the least important factor. For producers looking to secure rented ground, a reputation for character and experience outweighs both seniority and youth.

6. The “Willingness” Factor in Technology.

(Farm Journal)

Producers most inclined to expand share a common trait: a higher comfort level and rate of adoption with technology. Crucially, this is not necessarily tied to technical skill or existing expertise, but rather to mindset and action. The most growth-oriented producers are defined by their willingness to try new technologies rather than their current mastery of them.

Download the Full Report

Preserving the Future: How Tennessee is Protecting Farmland While Driving Development

Tue, 10 Feb 2026 00:59:16 GMT

How is Tennessee, one of the fastest-growing states in the country, balancing economic development while still protecting farmland? Gov. Bill Lee says it’s one of the state’s greatest challenges, but he believes there is a way to do both.

Last year, Lee signed the Tennessee Farmland Preservation Act into law, tasking the Tennessee Department of Agriculture with developing a grant program to incentivize farmland owners to voluntarily enroll their land in a permanent conservation easement.

“We lose 9 acres an hour to development,” Lee said at the 2026 Top Producer Summit . “We recognize that agriculture is our No. 1 driver of our economy, so we have to preserve farmland. This act will incentivize farm property, and agriculture property in particular, to be put in land trusts so it can never be developed. This effort has been widely accepted by farmers and is beginning to take effect.”

Where is the Push for Economic Development in Tennessee?

Although economic development is taking place in many different forms, the state of Tennessee is seeing a big push for data centers. For some farmers, this could be the revenue generator they’ve been waiting on, but for others, it’s a contentious issue.

“If we are going to have a data center, it has to work for all of us,” Lee says. “Most important is that the impact on the grid for power is one that our state can effectively manage.”

He believes the data centers and the companies behind them should be partners with the state and with regulatory bodies.

“They should come in and say, ‘If we’re going to come here, this is what we will deliver to the state,’” Lee says. “Besides just the investment in dollars and what they will take from the grid, how will they deliver to the state?”

AI, a major data center and supercomputing facility in Memphis, is an example of a good partnership, he says.

“They are producing their own power and contributing to the grid. It’s a great partnership and model for things that we should be looking for in the future,” Lee adds.

How is Tennessee Helping Farmers?

Tennessee crop farmers are feeling pain right now like their peers across the country.

“It’s a tough environment for crop farmers,” Lee says. “We’ve seen the staggering losses some of our producers have experienced. But they’re very resilient people. They know that a few years ago, crop prices were good. Right now, they’re really bad. A lot of patience is required in farming, and they know that.”

Stability and predictability are nearly impossible to have in agriculture, he says. But he’s working to help provide stability and predictability from a federal standpoint through ag policy efforts.

“I think that’s what farmers look for more than anything,” Lee says. “They don’t want a rescue or an immediate solution to the problem they have. I think farmers want some indication of what stability looks like and what predictability looks like and what they can expect in the future.”

From a livestock standpoint, Tennessee has been investing heavily in the development of more local processing options.

“We do believe that locally sourced products are helpful to our own ag community,” he says. “To the degree that we can facilitate that in this state, we ought to do it. We’ve broadly expanded our ability to process beef in this state. We’re not nearly where we need to be, but we’re headed in the right direction.”

Creating a Pipeline for Agriculture

Lee is passionate about thinking about the future and creating pathways for skilled trades, especially in the agriculture industry. His experience running a company in the skilled trades business — plumbers, pipefitters, electricians and welders — has helped him see the need firsthand.

“One of the most important things we can do is recognize that kids’ giftings are really different,” Lee says.

Lee’s passion to better meet the demand for skilled labor came to fruition through the Governor’s Investment in Vocational Education (GIVE) Act.

“It created, initially, a $1-million program in high schools for vocational, technical and agricultural education programs,” he says. “It led to $500 million in middle school career and technical education programs, and ultimately $1 billion in our colleges of technology that deliver ag education, technical education and vocational education. We have removed the waitlist for our colleges of technology. We’re delivering 10,000 more workers a year who are skilled tradesmen.”

He believes it’s one of the reasons Tennessee has so many global companies making the decision to come to the state.

“We have a lot of activity here economically because the state with the workers is going to win every time,” Lee says. “We started seven years ago by creating a workforce that was much more diverse than what it had been previously, and that includes agricultural education.”

As a cattle producer and proud Tennessean, Lee says he’s most proud of how he’s helped support the state’s future in agriculture by investing in youth and the technologies that will be the future.

“It will be fun for me to look back years from now and say, ‘I’m really glad we did that. Ag was No. 1 in Tennessee when I was there, and ag is still No. 1 in Tennessee now that I’ve been gone,’” he says. “That’s what I hope for.”

Atlanta Fed Chair Bostic Recognizes Sectors of Agriculture Are in Crisis

Tue, 10 Feb 2026 00:19:57 GMT

Is an economic crisis brewing in farm country? That’s the question Raphael Bostic, outgoing president and CEO of the Federal Reserve Bank of Atlanta, is watching as balance sheets carry over operating expenses into the 2026 season.

“There’s a lot of distress in agricultural marketplaces and in a lot of our agricultural enterprises,” Bostic says. “I do think there’s a significant crisis here.”

During a fireside chat at the 2026 Top Producer Summit , he recognized the challenges facing farmers in today’s financial environment.

“I get to talk to a lot of smaller family farms and I worry about them, especially because the big operations, they are so large scale, it gives you a diversity of possible strategies,” Bostic explains. “You can tap into different types of credit that can allow you to weather volatility a bit more readily, and we don’t see that for a lot of the smaller folks.”

To help, USDA is set to release $12 billion in “ Farmers Bridge Assistance ” payments toward the end of the month.

“This is a short-run patch on something that could be a long-run problem,” Bostic says.

Rising Expenses and the Growing Debt Burden

USDA is expecting net farm income to be $153.4 billion, which is down $4.1 billion from 2025. Economists say this year’s latest outlook continues to reflect declining receipts and an ongoing reliance on help from the government, which is expected to increase by 45% in 2026 alone.

“Total production expenses are forecast to increase almost $5 billion or 1%,” says USDA economist Carrie Litkowski. “On the farm sector balance sheet, assets, debt and equity are all forecast to increase.”

The latest Purdue University - CME Group Ag Economy Barometer in January found 21% of farmers surveyed expect their operating loan to increase over a year ago. Of those, a third say it’s because they’re carrying over unpaid operating debt from the prior year. In 2023 that number was only 5%.

“We know that input prices for a host of products are up,” Bostic says. “We know that competition at a global level is up. We know that the tariffs have put tremendous pressure on the competitiveness of American products overseas because of those dynamics, and we also know many commodity prices haven’t changed to offset these things. These are all incredibly challenging dynamics to wrestle with, and how we move forward is really an open question.”

Fed Policy: Why Patience is Required for Rate Cuts

The Fed’s primary mandate of stable prices and maximum employment provides an environment with predictable growth, giving people the opportunity to invest for the long haul without having to worry about where the economy will be in five to 10 years.

“First we have to diagnose the problem,” Bostic says. “Is this an issue with labor availability, an issue in new technology or shifting climate patterns, etc., and then we need to think about what strategies will work for all of these new things.”

That mandate requires patience in seeing how current monetary policy impacts the market. Bostic notes inflation remains above the Federal Reserve’s target of 2%, but economic growth has been and will continue to be robust. One thing he’s not advocating for is a continuation of interest rate cuts.

“The government shutdown actually prevented a lot of data from being produced, so it is actually going to make the numbers a bit choppier in the next several months,” Bostic explains. “The usual signals we would get from those [reports] are actually going to be weaker than they would be otherwise. For me, that’s another reason why I think we want to be cautious. We want to be patient, and I think that’ll be prudent.”

Patience ahead of additional rate cuts would allow the Federal Reserve to see how tax cuts and deregulation stimulate growth into 2026 before cutting rates, which could spur inflation even further above the Fed’s target.

At the 2026 Top Producer Summit, Raphael Bostic, president and CEO of the Federal Reserve Bank of Atlanta, joins Bill Watts, Pro Farmer editor, to share insights into the economic forces shaping monetary policy and what that could mean for agriculture.

(Farm Journal )

The ag economy is seeing similar challenges to the economy as a whole. Bostic remarks while the top end of the economy is doing remarkably well, there is a growing number of U.S. consumers who are living paycheck to paycheck, evidenced by the increased rhetoric around a K-shaped economy. That has made itself evident in the ag economy by higher consolidation, with big farms getting bigger and smaller farms going out of business.

“This economy has continued to perform well at an aggregate level; consumers have continued to be resilient, and that’s a good thing,” Bostic says. “My outlook is that the resilience we’ve seen for much of 2025 will continue into 2026 and might even get a bit stronger, so we might actually see some of the tax benefits, some of the deregulation, those things could actually spur the economy to do even more than what it did last year.”

Consolidation and the Transformative Potential of AI

The latest red flag, a sluggish labor market has Bostic waiting on data and wondering if technology or AI are having an outsized role in the current new-hire economy.

“When you think about AI, for example, and those technologies, businesses are experimenting with ways to have AI introduced into their production processes to allow productivity that doesn’t require people,” Bostic admits. “You may have heard reports about a lot of entry-level hiring has happened at a much lower pace than it has in previous years. A lot of that is because the promise of AI has folks thinking, well, maybe I don’t need to do those hires, and I can get that same amount of productivity. That’s a structural change.”

From a farming perspective, those opportunities are also presenting themselves. Given the current challenges in agriculture, Bostic says it might be time to look at new ways to build toward the future.

“To the extent that work can be done, that is, generative, without necessarily needing a person to be there all the time, that’s potentially transformative,” Bostic says. “I know the day is long, seasons are hard, and if you can use technology to take two hours out of it that gives you space to do other things. The opportunity there is what do you do with that extra space?”

How the $15 Million Estate Tax Exemption Changes Your Farm Succession Strategy

Mon, 26 Jan 2026 20:01:10 GMT

The world of estate planning for farmers has changed dramatically after the passage of the One Big Beautiful Bill Act. This permanently increased the lifetime gift and estate tax exemption to $15 million indexed starting Jan. 1. With the federal estate tax exemption at historically high levels, most family farms are no longer at risk of paying federal estate tax. However, this shift has brought a new focus to income tax planning and the importance of preserving the step-up in basis at death.

Understand the Step-Up in Basis

When a person passes away, the value of their property is generally reset to its fair market value at the date of death. This is known as a “step-up in basis.” For farm families, this is a crucial benefit. Farmland and other agricultural assets often appreciate significantly over time. If heirs inherit these assets, they receive them at the new, higher value. This means that if they later sell the property, they will owe little or no income tax on the appreciation that occurred during the original owner’s lifetime.

Why Estate Tax Is Less of a Concern

With the current high exemption, only the largest farm estates face federal estate tax. For most families, the bigger risk is not estate tax; it’s the potential for large income taxes if the step-up in basis is lost. This can happen if assets are given away during the owner’s lifetime, rather than being passed on at death.

The Pitfalls of Lifetime Gifting

Many farmers consider making large gifts during their lifetime, worried that the estate tax exemption will drop in the future. While this can be a good strategy for very large estates, it can be costly for smaller farm operations. When assets are gifted during life, the recipient takes over the original owner’s basis, which is often much lower than today’s value.

If the recipient later sells the property, they could face a significant income tax bill. In contrast, if the property is inherited, the basis is stepped up to current value, minimizing or eliminating income tax.

Likely the best asset to gift during lifetime is farmland that will be retained in the family for multiple generations. The step-up in this case is not as valuable because we can’t depreciate farmland, and if it is not going to be sold, the heirs are not worse off. Plus, appreciation in farmland can be very volatile and could cause the farm couple to owe estate tax.

Hidden Cost of Gifting Negative Capital

Many farm operations are structured as a partnership for income tax purposes and farms with debt will typically create what is called a negative capital account and, in many cases, this can easily exceed $5 to $10 million for larger farm operations. Gifting any interest in these partnerships during a lifetime will create ordinary income to the farmer because the “debt” eliminated exceeds the basis in the partnership’s assets, which is typically zero. Whereas holding until death eliminates the tax for their heirs. However, a drawback is that the older generation might still be on the hook for the debt until they pass.

For the vast majority of farmers, estate tax planning is now about smart income tax planning. Preserving the step-up in basis at death can save heirs substantial taxes and help keep the family farm in the family. Careful planning today can help protect your family’s legacy for generations to come.

Paul Neiffer has been tracking the latest in tax policy and government programs. Learn more about what you should factor into your farm business and potential tax implications at Top Producer Summit, Feb. 9-11 in Nashville. View the agenda and register today !

Top Producer of the Year Award

Mon, 07 Apr 2025 16:53:51 GMT

You’ve taken the risks and built a successful business.

You give back to your industry and your local community.

Your story would help others push themselves to achieve success.

The Top Producer of the Year Award identifies and honors agricultural producers from whom our readers can learn business concepts, ranging from value-added ventures to succession plans to overcoming adversity. If these characteristics can be used to describe you, then you should apply to be the 2027 Top Producer of the Year.

Entrants will be judged on:

entrepreneurial originality (50%)
financial and business progress (30%)
industry or community leadership (20%)

Any farmer or rancher who derives at least half of his/her income from farming and farm-related ventures may apply.

Prizes: The 2027 Top Producer of the Year finalists will receive a trip for two and be recognized at Top Producer Summit, Feb. 15 to 17, 2027, in Nashville, Tenn. Additional prizes will be awarded depending on sponsors.

For details, email: meckelkamp@farmjournal.com.

Click here to download the 2027 application

Profiles of Past Winners

2026 Top Producer of the Year
Winner: Alsum Farms and Produce , Friesland, Wis.
Finalists: Dalton Farms , Wakeman, Ohio and Splitter Farms , Sterling, Kan.

2025 Top Producer of the Year

Winner: Marc Arnusch , Prospect Valley, Colo.
Finalists: Mark Hanna , Joice, Iowa, and Chase Larson , Belleville, Kan.

2024 Top Producer of the Year

Winner: Christiansen Land and Cattle , Kimball, S.D.
Finalists: Garrett Land & Cattle , Arion, Iowa, and PJ Haynie , Reedville, Va.

2023 Top Producer of the Year

Winner: Silent Shade Planting Company , Belzoni, Miss.
Finalists: MoDak Dairy , Goodwin, S.D., and Engel Family Farms , Hanover, Va.

2022 Top Producer of the Year

Winner: Malecha Enterprises , Villard, Minn.
Finalists: Clearwater Farms , Nezperce, Idaho, and Seven Springs Farms , Joe Nichols, Cadiz, Ky.

2021 Top Producer of the Year

Winner: LongView Farms , Nevada, Iowa
Finalists: DX Ranch , Gettysburg, S.D., and Came Farms , Salina, Kan.

2020 Top Producer of the Year

Winner: Kristjan Hebert , Moosomin, Saskatchewan
Finalists: Sam Ross , Pioneer, La., and Becky Berger , Hillsboro, Ore.

2019 Top Producer of the Year

Winner: Jimmy Tosh , Henry, Tenn.
Finalists: Chris Adams , Grand Forks, N.D., and Ron Rabou , Albin, Wyo.

2018 Top Producer of the Year

Winner: Frank Howey , Monroe, N.C.
Finalists: Bailey Family Farms , Iola, Ill., and Jeremie Pavelski, Heartland Farms , Hancock, Wis.

2017 Top Producer of the Year

Winner: Chalmers and Lori Anne Carr , Ridge Spring, S.C.
Finalists: Richard and Roderick Gumz , Endeavor, Wis., and John Pagel , Kewaunee, Wis.

2016 Top Producer of the Year

Winner: Donald and Cheri De Jong, Hartley, Texas
Finalists: Ron and Zoey Brooks and Brooks Farms, Waupaca, Wis., and Annie Dee and Dee River Ranch, Aliceville, Ala.

2015 Top Producer of the Year

Winner: Bill, Albert, Bernard and David Peterson and Peterson Farms, Loretto, Ky.
Finalists: Stan Boshart and SJB Farms, Tangent, Ore., and Roric Paulman and Paulman Farms, Sutherland, Neb.

2014 Top Producer of the Year

Winner: Lee Lubbers, Gregory, S.D.
Finalists: Jay and Cara Myers, Colfax, N.D., and Joe Zumwalt, Warsaw, Ill.

2013

Luke Brubaker; Mount Joy, Pa.
John Carroll; Illinois and Brazil
Dave Nelson; Fort Dodge, Iowa

2012

Gregg Halverson; Grand Forks, N.D.
Tim Richter; Lime Springs, Iowa
Mike Stamp; Decatur, Mich.

2011

Jim Kline; Hartford City, Ind.
Jake Clark; Grand Ledge, Mich.
Justin Crownover; Sunray, Texas

2010

Donny DeLine; Charleston, Mo.
Schmidt Farms; Sudlersville, Md.
Hudye Farms; Burlington, Colo.

2009

Lon Frahm; Colby, Kan.
Andy & Beth Snider; Hart, Mich.
Duncanson Growers; Mapleton, Minn.

2008

Dave Minich, Logansport, Ind.
Star Rock Farms, Conestoga, Penn.
Leroy Shatto,Osborn, Mo.

2007

Kip Tom, Leesburg, Ind.
Joe Nichols, Wallonia, Ky.
Randy Hughes, Janesville, Wis.

2006

Chad Olsen, Hendricks, Minn.
Dean Walker, Orofino, Ida.
Rick Rosentreter, Carlinville, Ill.

2005

Steve Irsik, Ingalls, Kan.
Bill Kubecka, Palacios, Tex.
Craig Yunker, Elba, N.Y.

2004

Brian Mitchell, Elkhart, Kan.
Kevin Green, DeWitt, Iowa
Jay Garetson, Copeland, Kan.

2003

Dean Folkvord, Three Forks, Mont.
Keith Masser, Sacramento, Pa.
Tim Dewey, Cimarron, Kan.

2002

Melvin Winger, Johnson, Kan.
Jerry Hostetter, Ephrata, Pa.
Jay Clasing, Ruthven, Iowa

2001

Ben Riensche, Jesup, Iowa
John Moser, Greeley, Colo.
Gene Veliquette, Williamsburg, Mich.

2000

Marty Klinker, Fairfield, Mont.
Donnie Young, Ulysses, Kan.
Steve and Lola Raska, Great Falls, Mont.

Top Producer Women in Agriculture Award

Mon, 07 Apr 2025 12:17:00 GMT

The Top Producer Women in Agriculture Award (formerly the Executive Women in Agriculture Trailblazer Award) will be given to a female producer who is a shining example for her peers. The winner will be an advocate for agriculture and represent an innovative farming or ranching operation.

Entrants are judged on agricultural advocacy (50%), farm business innovation (30%) and industry or community leadership (20%).

To apply, complete the entry form below and attach your resume and two letters of reference from an industry peer, banker or agribusiness leader. Winners agree to be recognized in articles published in Top Producer magazine and online. Any financial information remains confidential unless entrants agree to its release.

The winner’s prizes include:

A trip for two including hotel accommodations and a flat travel reimbursement stipend to attend the 2027 Top Producer Summit (Feb.15-17, 2027 in Nashville, TN)
Additional prizes provided by award sponsor(s)

Questions? Contact Margy Eckelkamp at meckelkamp@farmjournal.com.

Click here to download the 2027 application

Read about the 2026 winner, Helle Ruddenklau, Amity, Ore.

Read about the 2025 winner, Kimberly Ratcliff, Oakwood, Texas

Read about the 2024 winner, Pam Johnson, Floyd, Iowa

Read about the 2023 winner, Marcia Ruff, Circleville, Ohio

Read about the 2022 winner, Susan Weaver Ford, Kenly, N.C.

Read about the 2021 winner, Jennie Schmidt, Sudlersville, Md.

Read about the 2020 winners, Macey Wessels and Shelly Boshart Davis, Tangent, Ore.

Read about the 2019 winner, April Hemmes of Hampton, Iowa

Top Producer Next Gen Award

Mon, 07 Apr 2025 12:15:00 GMT

The Top Producer Next Gen Award (formerly Tomorrow’s Top Producer Horizon Award) will be given to a grower under the age of 40, who demonstrates excellence in the business of farming, including:

Marketing
Farm finance
Family and employee relations
Technology
Environmental stewardship

Entrants are judged on entrepreneurial originality (50%), financial and business progress (30%) and industry or community leadership (20%).

Any farmer, rancher or partnership that gets at least half of their income from farming and farm-related ventures may apply.

The winner’s prizes include:

A trip for two including hotel accommodations and a flat travel reimbursement stipend to attend the 2027 Top Producer Summit (Feb.15-17, 2027 in Nashville, TN)
Additional prizes provided by award sponsor(s)

Deadline: Sept. 1, 2026

For questions, contact meckelkamp@farmjournal.com.

Click here to download the Next Gen Award Application

Read about the 2026 winner, Tim Nuss, Lodi, Calif.
Read about the 2025 winner, Dalton Dilldine, Half Moon, Ark.
Read about the 2024 winner, Hallie Shoffner, Newport, Ark.
Read about the 2023 winner, Trey Wasserburger, North Platte, Neb.
Read about the 2022 winner, Brendan and Elaine Martin, Mt. Solon, Va.
Read about the 2021 winner, Matt Splitter, Lyons, Kan.
Read about the 2020 winner, Chase Dewitz, Steele, N.D.
Read about the 2019 winner, Tony Schwarck of Riceville, Iowa
Read about the 2018 winner, Maggie Holub of Scribner, Neb.
Read about the 2017 winner, Cody Goodknight of Chattanooga, Okla.
Read about the 2016 winner, Chris Noble of Pavilion, N.Y.
Read about the 2015 winner, Matt Sims of State Line, Ind.
Read about the 2014 winner, Jeremy Weaver of Needham, Ind.
Read about the 2013 winner, Joanna Carraway of Murray, Ky.
Read about the 2012 winner, Michael Daniels of Salem, Wis.

EXCLUSIVE: As DOGE Works to Stop Wasteful Spending, Secretary Rollins Says Vital Farm Programs Aren't at Risk

Thu, 20 Feb 2025 22:44:31 GMT

The Department of Government Efficiency (DOGE) has stormed Washington since President Donald Trump took office, working to uncover what it calls wasteful spending. That includes a comprehensive review of the money going out the door at USDA.

Before Agriculture Secretary Brooke Rollins was even confirmed, DOGE produced findings from its initial review of USDA. Those findings were something Rollins highlighted during her first address to more than 400 USDA staffers and others immediately following her confirmation.

“I welcome DOGE’s efforts at USDA because we know that its work makes us better, stronger, faster and more efficient. I will expect full access and transparency to DOGE in the days and weeks to come,” said Secretary Rollins during her address.

The American people gave us a mandate: end waste, fraud, and abuse in their government — and we are delivering.

🚨Here are just several contracts we terminated @USDA:

-Media contracts, including Politico subscriptions: $2.77 million

-Diversity, Equity, and Inclusion…
— Secretary Brooke Rollins (@SecRollins) February 15, 2025

According to Rollins, since Jan. 20, USDA has reviewed contracts, personnel, employee trainings and DEI programs. Based on that review, she announced USDA would terminated 78 contracts, which totaled more than $132 million, calling them “bold reforms.” That includes:

Media contracts, including Politico subscriptions: $2.77 million
Diversity, Equity and Inclusion Onboarding Specialist: $374,000
Diversity Dialogue Workshops: $254,000
International Development for Historically Underrepresented Communities: $298,000
Brazilian Forest and Gender Consultant: $229,000
Women and Forest Carbon Initiative Mentorship Program: $121,000

Today’s contract update:

95 cancellations with savings of ~$115M (ceiling value of ~$235M), including two USDA contracts:
- $265k for a “food and nutrition service 3 day leadership retreat in Atlanta”
- $30K for “Malaysia study tour facilitation services” pic.twitter.com/U5IMTpvPLe
— Department of Government Efficiency (@DOGE) February 21, 2025

Just a week later, DOGE posted an update saying the current update at USDA include:

95 cancellations with savings of ~$115M (ceiling value of ~$235M)
That includes two USDA contracts:
- - $265k for a “food and nutrition service 3 day leadership retreat in Atlanta”
- $30K for “Malaysia study tour facilitation services”

Live update from our @DOGE_USDA team’s meeting tonight 👇

Look what we just found (and cancelled!): $324,671 grant for “Increasing DEIA Programming for Integrated Pest Management” … you can’t make this up🤦🏻‍♀️

cc: @DOGE @elonmusk pic.twitter.com/GOaYpIeM13
— Secretary Brooke Rollins (@SecRollins) February 21, 2025

Secretary Rollins also providing an update Thursday, saying the agency canceled a $324,671 grant for “Increasing DEIA Programming for Integrated Pest Management.”

DOGE USDA
DOGE USDA took to X (formerly Twitter), seeking help and input from the public. That one post caused a flood of input, with more than 2,000 comments and suggestions. While some went as bold as asking DOGE USDA to abolish USDA reports, others asked DOGE to look into funding for solar on farmland and where the money has been spent to combat avian flu.

DOGE is seeking help from the public! Please DM this account with insights on finding and fixing waste, fraud and abuse relating to the US Department of Agriculture. Thank you.
— DOGE USDA (@DOGE_USDA) February 17, 2025

Are Farm Programs at Risk?

While farmers seem generally open to a USDA that wants to tackle waste, there’s also concern about what it could mean for crop insurance or other vital farm programs.

In an exclusive interview with Farm Journal during the 2025 Top Producer Summit , we asked Secretary Rollins how much push back she will have on DOGE and what assurances she can give producers that farm programs won’t be at risk.

“DOGE has brought, I think, a lot of excitement to all of America,” Rollins said. “I think there is not one person, except for maybe Elizabeth Warren and a few democrats ... everyone realizes at this moment in time in American history this is really important. Having said that, the United States Department of Agriculture, and since President Lincoln founded it in 1862, I believe, this agency is important to our farmers and ranchers with programs like the farm loans, etc., and imperative to a thriving rural America.”

Thank you @topproducermag for hosting @RogerMarshallMD and me in Kansas City, Missouri, with 1,000 of the Top Producers from across the US to talk about issues like expanding trade access and cutting regulatory red tape for farmers.

Biden’s ZERO trade deals and inflationary… pic.twitter.com/ejMxKxkRMG
— Secretary Brooke Rollins (@SecRollins) February 19, 2025

Rollins also pointed to President Trump’s approval rating within the rural community, as another reason this USDA will work to protect those programs.

“The farmers and the ranchers have been with him since he came down the escalator in 2015. I sincerely believe that those programs that are essential to keeping those communities thriving and hopefully even more prosperous going forward, that we’ll work with those to ensure that there is an understanding of how important those are,” said Rollins.

Checkoff Programs and DOGE
When DOGE took to X to ask for input, there were several comments about DOGE investigating agricultural checkoff programs. According to Pro Farmer Washington Correspondent Jim Wiesemeyer, DOGE is reportedly actively reviewing agricultural checkoff programs as part of its broader initiative to evaluate and potentially reform agricultural policy and spending.

AgriTalk’s Chip Flory asked Rollins if Checkoffs had become a target for DOGE.

“That is to be determined,” Rollins said. “I have not even begun to look at those. I know we’ve got a team looking at them. We’re going to get through the next few weeks and then we’ll start evaluating.

According to Wiesemeyer, USDA’s Agricultural Marketing Service oversees 22 checkoff programs, which vary in legal authority and regulatory structure. Some operate under commodity-specific statutes, while others fall under the Commodity Promotion, Research, and Information Act of 1996. State-level checkoff programs also exist, often independently from federal programs, covering commodities such as corn, rice, apples, and table grapes.

The Pros/Cons of Ag Checkoff Programs
Wiesmeyer reports agricultural checkoff programs provide collective marketing, research, and education benefits, but they also face criticism for transparency, fairness and mandatory participation.

Pros

Market development: Expands markets and funds large-scale advertising.
Research & innovation: Improves farming practices, technology, and sustainability.
Education & trust: Enhances consumer confidence in agricultural products.
Return on investment: Studies show benefits outweigh costs, with high benefit-to-cost ratios.

Cons

Transparency issues: Small farmers criticize unclear fund allocation.
Favoring large producers: Benefits may tilt towards larger operations.
Mandatory fees: Farmers must contribute, even if they disagree.
Potential misuse: Allegations of lobbying and mismanagement exist.
Harm to specialty producers: Organic farmers may not benefit but still pay.
Legal challenges: Constitutional disputes over mandatory participation.

Wiesemeyer reports while checkoff programs drive industry growth, concerns over equity and governance continue to spark debate and calls for reform.

Watch Rollins’ full interview with AgriTalk’s Chip Flory.

Your Next Read:

USDA’s Rollins: ‘Let’s Go Barnstorm The World And Find New Partners’ For Trade

How Iowa Farmer Mark Hanna is Investing in Innovation and Giving Ag Startups a Fighting Chance

Thu, 20 Feb 2025 17:23:24 GMT

You’ll still find Iowa farmer Mark Hanna behind the wheel of his combine every fall. The technology and automation is a signature of their farm, and what helps keep running the combine still fun for someone who’s been farming for 46 years.

But the landscape of equipment and technology today looks drastically different from when he started farming in 1979.

“I joined my dad’s operation where I was basically the labor force to help me get started,” Hanna says, who farmers in Joyce, Iowa. “I would trade my labor for the use of his machinery.”

The Cusp of the 1980s Farm Crisis
Right on the cusp of the 1980s farm crisis, Hanna’s rookie years of farming were tough.

“It was a horrible time. It was 1979 and my grandpa, Dewey, whose farm we actually bought in 1980, said he was always going to sell me that farm, even when I was little,” Hanna remembers. “And it came about in 1981, and a year later, the farm was worth half of what we bought it for.”

Hanna describes farming as an occupation of risks and rewards. And the risks then were high.

“The bank got concerned and said, ‘Boy, your equity is going backward here. Your net worth isn’t good.’ And I said, ‘Well, I have a private contract with my grandpa. And as long as I make that, it really doesn’t matter to you.’”

The Mortgage Lifters
With interest rates at 18%, Hanna weathered that storm. One way he did was with farrow to finish hogs.

“I figured out they were the mortgage lifters,” he says. “So, I just raised as many as I could in every nook and cranny on the farm for about five or six years. And that kept me making my payments and kept me farming.”

Throughout the ‘90s, Hanna expanded more and more, moving all his hogs and pigs into an environment he could control.

“By 1998, I had even my sows inside as fully confinement buildings,” Hanna says. “But 1998, that was a pretty tough. We had 8 cent hogs in December. I had all my buildings full. We had just built two new buildings. It turned out to be a $30,000 a month loss with no end in sight.”

The Hog Market Crash of 1998
In 1998, Hanna met his biggest challenge yet. With margins in the red and the debt mounting, he knew he needed to find additional income. So, he decided to take a job in town working nights, while also still raising hogs.

“After two weeks of that, I decided, ‘You know what? There’s more important things in life. I’m doing the best I can. And if I’m doing the best I can and I can’t make it, so be it.’ So, I kept breeding sows and keeping all the facilities full. And by July that year we had $60 hogs. I had full buildings, and I made more money than I ever thought I would and got my debt taken care of,” Hanna says.

It’s that moment in Hanna’s career that his son, Philip, says was a pivotal point for their family farm.

“It really stuck out to me is that he just focused on ‘what can I do and not worry about the things that I can’t control and just focus on that’,” says Philip Hanna.

The Next Generation
Hanna’s sons, Philip and Andrew, are now partners in their family farm. And they say the thing they admire most about their dad is his vision and ability to take risks.

“I feel like technology-wise, our biggest thing is being able to variable rate our planting, planting our split application of 32% and our fertilizer in the fall. That’s been huge,” says Andrew Hanna.

Mark’s sons, Andrew and Philip, are now partners on the farm.

(Tyne Morgan )

From the latest technology to the decision to dive into strip till in 2018, even Hanna’s employee of 20 years will tell you he admires Hanna’s intelligence and ability to always look ahead.

“They’re just really good people to work for,” says Larry Severson, a long-time employee. “I mean, they’re very innovative. They try new things like the strip tower. We were the first ones in this area to make that leap. And they went headfirst into it and it worked out really well for them.”

Mark Hanna was one of the first in his area to try strip till, and it wasn’t just a few acres. Hanna went all-in.

(Matt Mormann )

Investing in Innovation
What may be the biggest mark of success is how Hanna is investing in innovation through Ag Ventures Alliance .

“We help startups in ag thrive and be successful,” he says. “We offer them a wealth of information and knowledge and help to get them going.”

Ag Ventures Alliance and AgLaunch now select their top 10 startups each year, offering advice and financial investment.

“Out of that spun AgLaunch Farmers LLC , which we started two years ago. Farmers actually get a stake in each company. They have to put up $100,000 and pledge it to the AgLaunch Farmer LLC. When they’re successful, the farmers will get paid back with their stake in the equity in the company,” Hanna says.

Ag Ventures Alliance was created to accelerate ag tech innovation and redefine resilience and profitability for American farmers.

(Ag Ventures Alliance )

For Hanna, investing in others and helping start-up companies launch into the ag field is one of the most rewarding parts of his job today.

“I like to see new innovations. We like to try the newest thing that’s coming out there on our own farm,” he says.

For his sons, Hanna’s ability to give back and support others is just a glimpse into the strong character he instilled in both of them.

“I came out of high school wanting to be just like my dad, wanting to be a farmer like he has been in the past and to grow with him in the future,” Andrew says.

Phillip adds, “I hope with my brother and me, when my dad starts phasing out, that we’re going to continue to be on the new technology like my dad was and just keep on improving things on the farm and not be afraid of trying new things and new technology.”
Congratulations to Mark Hanna, a finalist for the 2025 Top Producer of the Year.

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2025 Top Producer of the Year Marc Arnusch Looks for Success Beyond Commodity Farming

Dalton Dilldine: Next-Generation Producer Follows in His Father’s Footsteps

Texas Rancher Kimberly Ratcliff Trades the Big Apple for Community Beef Business

30 Minutes With Secretary of Agriculture Brooke Rollins In Her First Week On the Job

Wed, 19 Feb 2025 21:14:00 GMT

Since Saturday, Nov. 23, 2024 , Brooke Rollins has been focused on how to build the teams and the plans that impact the trajectory of agriculture and rural America. On that day, while en route with her husband and four teenagers in their motor home to Auburn, Ala., for the Texas A&M football game, she got a call from now President Donald Trump. The purpose of his call: She was his top choice to fill his final significant cabinet position, Secretary of Agriculture.

Obviously, she had to wait for confirmation, which came last week on Feb.13 when the Senate overwhelmingly confirmed her as the 33^rd Secretary of Agriculture , but since that Saturday before Thanksgiving, she’s been on the go with an accelerated enthusiasm to understand the significant challenges facing rural communities that lost 147,000 family farms between 2017 and 2022 and why the cost of inputs are up 30% as exports are down $37 billion this year and likely to fall further in the months to come.

“This is a crisis, and this is something that I understand inherently,” Rollins said to kick off Top Producer Summit in Kansas City on Tuesday. “My promise to you is this, and my commitment will never waver, that every minute of every day for the next four years I will do everything within my power, with hopefully God’s hand on all of us and our work, to ensure we are not just entering the golden age for America, as my boss, President Trump, likes to say, but we are entering the golden age for agriculture.”

What Has Rollins Been Up to the Past Four Years?
Secretary Rollins and President Trump have worked together for almost eight years. She was in the West Wing with him for years two, three and four of his first term running his domestic policy agenda.

“This real estate guy from New York City brought that vision to life, and then in the last term, was able to really do some remarkable things,” Rollins said in regard to President Trump returning power to the people who just want a chance at the American dream. “I call it the great pause, the four years in between term one and term two. But I think the great pause allowed very intentional planning. It allowed a courageous and bold leader in President Trump to become a fearless leader and to do everything he can to bring America back to greatness.”

In the “dark days of January 2021,” as she described, Secretary Rollins helped launch the America First Policy Institute, a think tank established by former Trump officials to promote conservative policies. The idea was that those policies that made America great in Trump’s first term would continue indefinitely, not just for a second term, but for four years, eight years or 36 years, Rollins described.

First Week On the Job
Since being confirmed last week, Secretary Rollins has been in the Washington, D.C., USDA office for a few hours, but most of her time has been spent in Kentucky at National Farm Machinery Show in Louisville and Gallrein Farms and in Kansas visiting Finney’s County Feeder, High Plains Ponderosa Dairy and the National Beef Packing Plant .

Describing herself as “a reader and a studier,” Rollins seems adamant to hear firsthand from farmers and ranchers. She referenced her visits to the dairy farm and National Beef facility as inspiring, in a good way but also in a way that helps her understand the real challenges at hand.

Speaking to the crowd at Top Producer Summit, she shared her appreciation for the “entrepreneurial American game changers” who are doing their part to feed the world.

“It is so inspiring and a reminder of the very beginning of our country.” Rollins said. “Our revolution was fought by farmers, our Founding Fathers, like Thomas Jefferson and George Washington. The backbone of the great American experiment is this community.”

Thank you @topproducermag for hosting @RogerMarshallMD and me in Kansas City, Missouri, with 1,000 of the Top Producers from across the US to talk about issues like expanding trade access and cutting regulatory red tape for farmers.

Biden’s ZERO trade deals and inflationary… pic.twitter.com/ejMxKxkRMG
— Secretary Brooke Rollins (@SecRollins) February 19, 2025

Farmer Q&A
Watch and listen to what Secretary Rollins, as well as Sen. Roger Marshall of Kansas, had to say on stage at Top Producer Summit about these 7 topics:

Trade and tariffs — “ Let’s go barnstorm the world , and let’s go find some more trade partners and access [to market opportunities],” Rollins said.
Department of Government Efficiency (DOGE) efforts and modernizing USDA — “DOGE is a very valid and important effort across all government. The stories of waste and abuse were really just, not USDA specific but across government, beginning,” Rollins said.
Federal programs, such as CSP and EQIP — “Our commitment is that if there have been commitments made, those will be honored. Getting our arms around all of that right now is really, really, important. Again, going back to the President’s heart and commitment to our farmers, I feel confident we will be able to solve any issues that are in front of our ag community, that are potentially being compromised by the DOGE effort, while at the same time recognizing how very, very important it is,” Rollins said.
Future of USDA — “There’s no question USDA needs some modernization. I’m just beginning to lean into that as well,” Rollins said. USDA has 106,000 employees and 29 departments. “The Secretary is taking over a department where only 6% of the [D.C.] people work in the office,” Marshall added.
Renewable fuels — Prior to President Trump’s first term, he was “the first major candidate to support biofuels, and I think that carried him through Iowa in many ways. … We’ve got E15 year-round. I think that gives us some certainty as well. … The President is supporting that. I think we’re trying to figure out how to save 45Z, but we can’t let China benefit from it. Right now, China is benefiting more from [45Z] than my farmers and ranchers are, so we’ve got to fix that,” Marshall says.
Immigration policies and availability of long-term labor — “I have a full-bodied understanding of the challenges within the labor market, and I believe the President does too. … I believe that we will very soon be talking about it again. Clearly, the H-2A program needs significant reform, and Lori Chavez-DeRemer, she’s going through the [confirmation] process right now. … Hopefully she’ll get her vote very soon. We’ve got a lot of work to do,” Rollins said.
Trump’s cabinet members — “Our cabinet is comprised of people that have been working together and have been friends and colleagues for years, with a few exceptions. Bobby Kennedy is a new friend, but Lee Zeldin and I worked together in America First Works and America First Policy Institute for the last almost four years, Linda McMahon in education and John Brooks — these are our people,” Rollins said.

The Tax Man Cometh To The Farm

Wed, 19 Feb 2025 20:55:34 GMT

Everyone can benefit from a practical reminder from time-to-time. In this case, Paul Neiffer wants to remind farmers that the 2017 Tax Cuts and Jobs Act is set to expire at the end of 2025.

“We’ve had these tax cuts for eight years now, but farmers may not be thinking about this and what it could mean for them,” said Neiffer, principal of FarmCPAReport.com and a Top Producer columnist.

Neiffer addressed the topic of what farmers need to know now and address from a tax standpoint during the 2025 Top Producer Summit in Kansas City.

“Certainly, farmers are aware of the lifetime estate tax exemption dropping in half after this year. But I think a lot of these other provisions that would hit them, they’re probably not quite as aware of them,” he said.

Neiffer highlighted three provisions he believes U.S. farmers are likely most interested in seeing extended or made permanent. They include:

1. The 100% Bonus Depreciation. Neiffer said he believes the 100% provision will be made permanent, though it’s currently only 40%.

“We think that will come back to farmers,” he said. “The practical benefit is when they purchase equipment or farm buildings they’ll be able to deduct 100% of that item in the year of purchase. Also, there is a chance that trade-in of farm equipment will be similar to the old rules and non-taxable in most situations.”

2. The increase in the lifetime exemption for estates. If the current law is left unchanged, as of Jan 1, 2026, the present lifetime estate and gift tax exemption will be cut approximately in half. It currently is almost $14 million.

Neiffer is optimistic about the exemption. “I think the likelihood on the estate exemption is very good. I think that’ll stay at least at the current level,” he said.

3. The Section 199A Cap. This provision allows individuals, trusts and estates with pass-through business income to deduct up to 20% of qualified business income (QBI) from taxable ordinary income. Schedule F farmers are also granted the 20% deduction.

While Neiffer said there is some bipartisan support in Congress for extending the Section 199A deduction beyond 2025, he is ambivalent about that happening. “With that 20%, it would be a lot more costly to enact,” he noted.

Practical Next Steps Farmers Can Take
Looking ahead, Neiffer said he believes the likelihood of having a major tax bill before the end of 2025 is slim. At best, the bill would be ready by November or December.

For that reason, Neiffer’s recommendation to farmers is for them to plan on pushing income into 2026 but to have the flexibility to bring that income back into 2025.

“The reason is if the tax cuts don’t get extended that means 2026 tax brackets are going to be a lot higher,” Neiffer explained. “So, we would want to bring income into 2025. Now, farmers have the ability to do that using deferred payment contracts and some other elections that they can make – but only if they plan ahead accordingly. They definitely want to make sure they do that,” he added.

Your next read: It’s Tax Time: Your Guide To Calculate Farm Income

USDA's Rollins: 'Let's Go Barnstorm The World And Find New Partners' For Trade

Tue, 18 Feb 2025 18:50:09 GMT

On Brooke Rollins’ first full week on the job as Secretary of Agriculture, she addressed the 600 farmers, ranchers and industry leaders in Kansas City for the 2025 Top Producer Summit.

High on Rollins’ list of priorities was the topic of trade and President Donald Trump’s vision for U.S. agriculture moving forward.

While Rollins did not shy away from addressing the administration’s decision to implement trade tariffs, noting “farmer and rancher concerns are legitimate,” she focused on what she sees as her role ahead.

“My job is to ensure that as President Trump and our trade representatives are making their decisions that I am in the room and advocating on behalf of our people, on behalf of all of you,” she told Top Producer Summit attendees.

One of her key objectives, she says, is to find and expand market access for U.S. agricultural products domestically and abroad.

“Let’s go barnstorm the world, and let’s go find some more trade partners and access [to market opportunities],” she says.

Rollins says her goals for trade are a reflection of Trump’s vision and his determination to make agriculture part of the “golden age” he sees ahead for the U.S.

Trump is the consummate deal maker, Rollins notes, able to side-step bureaucracy and red tape in the process to work with world leaders.

“I don’t know that in the last 250 years, we’ve had anyone in office like President Trump,” she says. “He is a very unusual, remarkable and fearless man, and he wants to make a deal, and in the best way, and put America first.”

Agriculture Secretary Brooke Rollins spoke to a crowd of 600 farmers, ranchers and industry leaders at the 2025 Top Producer Summit.

(Jim Barcus)

Making Headway With Trade
Sen. Roger Marshall of Kansas, who moderated the conversation with Rollins, highlighted Trump’s work to build trade during his first term.

“He redid USMCA, and now that’s our largest ag partnership, with Mexico and Canada,” Marshall says. “He gave us South Korea and Japan, which has been so important to Kansas and our cattle industry, as well as trade 1.0 with China.”

Marshall then mentioned the headway he believes Trump and team have made with India.

“I see India replacing China as our major trade partner, as well that China is growing right now,” Marshall says. “I think there’s huge opportunities in India.”

U.S. ethanol, cotton and tree nuts are three of the top agricultural exports to India, a country that has in the past impeded agricultural trade with tariffs and non-tariff barriers alike. Trump called out the barriers to trade following recent conversations with India’s Prime Minster Modi.

A joint statement after the Trump-Modi meeting said Washington welcomed New Delhi’s recent steps to lower tariffs on select U.S. products and increase market access to U.S. farm products, while seeking to negotiate the initial segments of a trade deal by the fall of 2025.

Rollins says the progress underway with India was just one step forward to address what she described as a trade crisis for the U.S.

“Our exports are down $37 billion this year and likely to be down $42 billion in the months to come. This is a crisis, and this is something that I understand inherently,” Rollins says.

“We have a tremendous amount of work to do,” she adds. “But my promise to you is this, and my commitment will never waver, that every minute of every day for the next four years, I will do everything within my power with hopefully God’s hand on all of us and our work to ensure that we are not just entering the golden age for America, as my boss, President Trump, likes to say, but that we are entering the golden age for agriculture.”

Secretary Rollins joined Chip Flory on AgriTalk. Listen to their discussion about trade policy and tariffs; avian flu; and disaster and economic aid.

Your next read: Senate Overwhelmingly Confirms Brooke Rollins as 33rd Secretary of Agriculture

BREAKING: USDA Secretary Brooke Rollins and Sen. Roger Marshall to Join Farmers At Top Producer Summit

Sun, 16 Feb 2025 21:24:22 GMT

Secretary of Agriculture Brooke Rollins and Sen. Roger Marshall of Kansas will speak Tuesday morning at this week’s Top Producer Summit in Kansas City. The event is among the secretary’s first public appearances since being confirmed Feb. 13 . The fireside chat will cover key topics driving the future of agriculture.

A one-day pass to the event is available to give the agriculture industry a chance to hear Secretary Rollins share her vision for U.S. agriculture. Advanced registration is required due to security protocols. Register now with discount code ONEDAY to receive the special rate.

Secretary Rollins, originally from Glen Rose, Texas, serves as the 33rd Secretary of Agriculture. Most recently, she was founder, president and CEO of the America First Policy Institute. During President Donald Trump’s first administration, she was the director of the Domestic Policy Council and assistant to the President for Strategic Initiatives in the White House. She also previously served as director of the Office of American Innovation.

Sen. Marshall is a physician and U.S. Senator for Kansas. As a fifth-generation farmer from Butler County, Sen. Marshall became the first in his family to attend college. In the Senate, he serves on the Committee on Agriculture, Nutrition, and Forestry. He is the chairman of the Subcommittee on Conservation, Climate, Forestry, and Natural Resources and a member of the Subcommittee on Food and Nutrition, Specialty Crops, Organics, and Research.

Tickets are still available to attend the entire Top Producer Summit , which is agriculture’s premier educational and networking event for forward-thinking farmers and ranchers. The event will bring producers of nearly a dozen commodities together at the Loews Kansas City Hotel to share business opportunities and ideas for taking their operations to the next level.

In addition to the fireside chat with Secretary Rollins and Sen. Marshall, the agenda includes:

The Future of Farming with Byron Reese, futurist, technologist and entrepreneur
Conquer Decision Paralysis with Rena Striegel, Transition Point Business Advisors
How Income Taxes May Change Due To The Election with CPA Paul Neiffer
Land Diversification: What to Know Before Exploring Renewable Energy and Conservation Opportunities with Quint Shambaugh, Pinion
What’s Ahead for Farm Input Pricing with Sam Taylor, Rabo AgriFinance
What to Watch With the Weather in 2025 with Eric Snodgrass, Principal Atmospheric Scientist, Conduit Ag
Global Fertilizer Market Overview: What It Means At Your Farm Gate with Josh Linville, StoneX

Some of the nation’s most outstanding farm operations will be recognized, including winners of the 2025 Top Producer of the Year award , the 2025 Women in Ag award and the 2025 Next Gen award .

Do Tariffs Work? Leading Ag Economists Weigh In

Mon, 03 Feb 2025 17:00:00 GMT

Tariffs are a tool used by President Donald Trump during both his terms. But do they work? Not even ag economists are in alignment, as the answer seems to be: It depends.

This past weekend, Trump signed three executive orders for tariffs , the first time a president has used powers granted under the International Emergency Economic Powers Act of 1977. The orders also include retaliation clauses that would ramp up tariffs if the countries respond in kind. Trump cut the levy on imports of Canadian energy to 10%.

By Monday morning, Trump had agreed to delay tariffs on goods from Mexico for one month to allow more time for negotiations. The agreement happened just hours before the tariffs were set to take effect.

President Claudia Sheinbaum said U.S. tariffs against Mexico will be delayed for one month after a conversation with Trump on Monday. Trump then confirmed the news on Truth Social.

Which Input Could Be Impacted Most by Tariffs?

Tariffs on the U.S.'s top three trading partners could have a major impact on agriculture. The January Ag Economists’ Monthly Monitor asked economists which input is most at risk. The top answer was fertilizer.

Ag Economists’ Monthly Monitor

(Lindsey Pound)

“From a headline standpoint, it’s probably potash,” says Samuel Taylor, farm inputs analyst, Rabobank. “We get 85% to 90% of our potash from imports from the Canadian market. The residual is made up by Russia and Israel, in principle, with some other markets coming in.”

One day after Trump announced he would move ahead with planned tariffs, Prime Minister Justin Trudeau stated tariffs targeting $30 billion in American products, such as alcohol, produce, household goods and industrial materials, will roll out in two phases starting Feb. 4, the same day the U.S. tariffs are set to begin.

The tariffs on the other $125 billion worth of goods will come in 21 days to allow impacted Canadian companies to adjust their supply chains. Trudeau emphasized Canada’s response would be “strong but appropriate,” while also considering non-tariff measures such as restrictions on critical minerals.

Do Tariffs Work?

With tariffs and a potential trade war brewing that begs the question: Do tariffs work?

It’s something Farm Journal asked the nearly 70 ag economists part of the Farm Journal Ag Economists’ Monthly Monitor. The survey asked economists: “Do tariffs work in trade policy?” Economists views were mixed:

“Tariffs can work in trade policy — that’s why nations continue to use them. The complex part that extends beyond the tariff action is potential long-term repercussions that can result from trade flow changes.”
“In limited cases, typically only if they result in a policy response in the targeted country. Much of the time, tariffs are like cutting off one’s nose to spite one’s face.”
“Tariffs provide short-term gains but have always failed relative to free trade in the long term.”
“Absolutely, when properly applied.”
“Not over the long term. They tend to affect who gets to supply different markets around the world.”

The Ag Economists’ Monthly Monitor also asked: “When tariffs are used as a ‘tool’ in trade, who pays the tariff?” Not all economists were aligned on that answer either, saying sometimes it’s farmers and consumers, but it can also be the exporting countries.

“When the U.S. imposes tariffs on imports, importers in the U.S. pay taxes to the U.S. government on their purchases from abroad. When another nation imposes tariffs, importers in that nation pay import taxes to their government on their purchases from abroad. Often, when a tariff is implemented, another nation retaliates, and you end up with importers in both nations paying the price on whatever products the tariffs apply toward.”
“If an importing country places a tariff on the exporting country, producers in the exporting country and consumers in the importing country both lose (i.e., receive lower and higher prices, respectively). Conversely, producers in the importing country and consumers in the exporting country win (i.e., receive higher and lower prices, respectively).”
“In the short run, consumers who purchase goods with a tariff might see higher prices if the tariff is not absorbed elsewhere. In the long run, the tariff might result in changes to the supply chain that result in higher prices but also create other economic opportunities in America (e.g. reshoring of domestic manufacturing).”
“The correct economist answer is: It depends. Tariffs drive a wedge between prices in the exporting country and in the importing country. It depends on the circumstances of particular markets and how much is reflected in higher prices in the importing country and reduced prices in the exporting country.”
“Both the exporting nation and the importing consumer pay some portion of the tariff depending on who has more flexibility to adjust to trade barrier. If exporting countries can easily switch to supplying other markets, they won’t have to ‘pay.’ If consumers can easily find cheap substitute goods, they won’t have to pay.”

What A Battle Over the Panama Canal Means For U.S. Agriculture

Mon, 27 Jan 2025 21:12:28 GMT

The Panama Canal is in President Donald Trump’s crosshairs with him pledging in his inaugural address to take it over due to Chinese influence. As a result, Panamanian authorities have initiated an audit of Panama Ports Company. Because any disruption in access to this critical logistics channel would hurt U.S. ag exports, the industry is closely watching the developments.

The Panama Canal has been at the center of controversy since the U.S. turned it over to Panama in 2000 under a treaty signed in 1977.

“An ingredient of that treaty is the canal must be neutral. It can’t prefer one country over the other,” says Mike Steenhoek, executive director, Soy Transportation Coalition. “If that ever was in danger or peril, U.S. military intervention would be justified.”

The Areas in Question
While Trump has called Chinese influence in Panama a national security issue, Steenhoek says the specific issue is their influence at two regional ports.

“Two of the five are actually operated by a Hong Kong-based company called Hutchison Port Holdings,” Steenhoek says. “The company originally received a 25-year concession to operate those two ports: one on the Pacific side and one on the Atlantic side in the late 1990s. Just recently, that 25-year concession came up and was re-extended.”

Trump also claims U.S. ships have been unfairly charged for using the canal. Steenhoek attributes higher freight charges to the drought, which limited service, but also points out the tolls are transparent and governed by the treaty signed with the U.S.

“Part of the treaty made sure it had to be governed on a neutral basis, so one country or one industry didn’t receive preferential treatments,” Steenhoek says. “The tolls are very public and how they’re assessed is based on different types of vessels and different types of tonnage that’s utilizing the canal.”

Meanwhile, Panama’s president has declared Panama’s control of the canal as “non-negotiable.” The ag industry can only hope for a resolution that doesn’t disrupt trade.

Watch this 3-minute video to learn more about the Panama Canal:

Your Next Read: D.C. Insider Jim Weisemeyer Explains How Trump’s Return Could Shape Ag’s Future

Trump’s Cabinet Nominees Now Up Odds for Expanding U.S. Trade/Economic War with China

Wed, 20 Nov 2024 17:07:14 GMT

President-elect Donald Trump’s selection of Howard Lutnick, the CEO of Cantor Fitzgerald, as Commerce Secretary highlights plans to leverage tariffs in trade negotiations, with Lutnick emphasizing their use as both a revenue source and bargaining tool.

Lutnick has called the tariffs a negotiating tool that could be used to convince other countries to bring down their own levies or to force companies to move production to the U.S. He has said Trump would avoid taxes on products U.S. companies don’t make.

Commerce oversees the International Trade Administration, an agency in charge of enforcing trade laws and investigating unfair trade practices.

The appointment raises questions about the role of Robert Lighthizer, a prominent China hawk and decoupling advocate, who might still secure a key position such as National Economic Council leader or ambassador to China. The nomination marks Lutnick’s transition from co-chair of Trump’s transition team to a pivotal role in shaping U.S. economic policy.

Of note: Trump said that the Commerce Secretary would have “additional direct responsibility for the Office of the United States Trade Representative.” The phrase means that Trump may try to fold the latter position within the Commerce Department, a move that has been tried before to combine government trade work.

Trump’s trade agenda is heavily focused on imposing substantial tariffs, particularly targeting China. He has proposed a 60% tariff on Chinese goods and 10-20% tariffs on imports from other countries. Lutnick has been a vocal supporter of these tariffs, suggesting they could replace income tax revenue over time. He believes that by making American businesses more competitive through tariffs, it could lead to lower overall tax rates.

Lutnick’s vision aligns with Trump’s historical approach to trade, which emphasizes protectionism to bolster U.S. manufacturing and reduce reliance on imports. During a recent rally, Lutnick remarked that America’s economic prosperity in the early 1900s was due to tariffs rather than income taxes, indicating his belief in a return to such policies. Lutnick has said the incoming administration would use tariffs as a bargaining chip with other countries. “We’ll make a bunch of money on the tariffs, but mostly everybody else is going to negotiate with us,” he said on CNBC.

Lutnick’s appointment signals an aggressive stance on trade that could lead to increased tensions with trading partners. The Commerce Department plays a crucial role in enforcing tariffs and negotiating trade agreements, which may become contentious under Lutnick’s leadership. Economists have expressed concerns that such high tariffs could lead to retaliatory measures from other nations, potentially resulting in higher prices for consumers and disruptions in global supply chains.

On China, Lutnick has accused the country of being the source of fentanyl in the US, saying that “China is attacking America from its guts.” Kevin Chen, associate research fellow at the S. Rajaratnam School of International Studies, told the South China Morning Post, “There is little question that he will push forward with tariffs That being said, he has also suggested that the tariffs could be used to negotiate trade deals with other countries,” he said. Chen suggested that the choice of Lutnick —alongside other China hawks joining Trump’s team including Marco Rubio as secretary of state and Mike Waltz as national security adviser — could be “very dangerous for U.S./China relations” given the Commerce Department’s oversight of export controls.

“Lutnick is likely to focus tariffs on China’s manufacturing sector, especially for goods that the U.S. already produces. The likelihood of this leading to another U.S./China trade war is too high to ignore,” he said. “Lutnick fits in well with the trend of Trump’s cabinet picks … [as] he’s a China hawk who shares Trump’s strong views on the threat posed by China and how to address it.”

Asked about Lutnick’s nomination, Chinese foreign ministry spokesman Lin Jian said he would not comment on U.S. internal affairs but added that a trade war “will not produce any winner and is in no one’s interest.”

Treasury Secretary Possibilities

Trump is taking a closer look at Sen. Bill Hagerty (R-Tenn.) to potentially serve as Treasury Secretary, Axios reports. Hagerty, a former private-equity investor who was Trump’s ambassador to Japan, is one of three apparent finalists, along with former Fed governor Kevin Warsh and Apollo CEO Marc Rowan. The Treasury position is key as the Cabinet member will play in a key role in major issues, including:

Rising federal debt
Enacting Trump’s tax cut plan
Helping implement Trump’s tariff plans
Coming up with pay-for plans
Keeping inflation low
Implementing 45Z and other biofuel tax incentive programs (IRS)

U.S. businesses brace for potential Trump tariffs.

American companies are accelerating inventory orders ahead of Donald Trump’s inauguration, fearing the implementation of his proposed tariffs on imports. Trump has suggested levies of 10-20% on all imports and up to 60% on Chinese goods. Firms are also strategizing for potential impacts, including price adjustments and diversifying away from Chinese manufacturers, the Wall Street Journal reports ( link ).

Tariffs and Pricing Impacts

Walmart acknowledged the retailer would probably raise prices on some goods if Donald Trump moves forward with plans to enact sweeping tariffs. Walmart’s CFO John David Rainey stated that prices on some items may increase but it is uncertain which products might see price hikes due to the tariffs. A Walmart spokesperson indicated that any price changes are speculative, but future tariff-induced costs could burden sensitive shoppers.

Lowe’s words were more circumspect, with the home-improvement retailer’s executives noting tariffs would lift costs but also saying they were waiting to see what happens when the new administration takes office in January.

Walmart said shoppers are resilient but are still spending more on food than they have historically.

Lowe’s said homeowners are still waiting for lower interest rates to embark on big home-improvement projects.

Your Next Read: Could Trump Actually Be Good for U.S. Ag Trade?

Could Trump Actually Be Good for U.S. Ag Trade?

Tue, 19 Nov 2024 20:52:49 GMT

President-elect Donald Trump has released a slew of key cabinet and advisory picks at a historic pace the past two weeks, but the agriculture industry is waiting on two key selections — Secretary of Agriculture and the U.S. Trade Representative.

The Financial Times previously reported Robert Lighthizer could make an encore performance as the U.S. Trade Representative under Trump , but nothing official has been announced.

“Trump and Bob Lighthizer are two peas in a pod when it comes to using tariffs to get what they want in amongst our trading allies,” says Jim Wiesemeyer, Pro Farmer Washington correspondent.

If it’s a repeat of the last time, Lighthizer held that seat, there will be an increased focus on trade and using tariffs, which comes as no surprise since that was a major point on the campaign trail

“President-elect Trump was so strong on doing tariffs before that, it’s very likely that he’ll follow through now,” Mary Kay Thatcher, who’s the senior lead for federal government relations at Syngenta, told “AgDay’s” Michelle Rook. “I mean, he’s talked about at a minimum 20% tariffs on everybody. He’s talked about 60% on China, who will likely fall to two or three, but still a very important market. And he’s talked about putting them on Mexico. If Mexico doesn’t stop as many people coming across the border.”

Tariffs were the talk of the campaign trail, not just on commodities, but even ag equipment that’s imported on.

Ag groups want a focus back on trade, but they are also concerned it could come at a cost.

“Mexico, Canada, China are always our No. 1, No. 2 and No. 3 three ag markets,” Thatcher says. “And so, a lot of concern in agricultural circles about the fact that most likely that’s where the retaliation starts first.”

Reality of a Growing Ag Trade Deficit

As tariff talk heats up, there are still tariffs in place today, and a growing ag trade deficit that’s glaring for U.S. agriculture. The ag trade deficit is expected to balloon to $42 billion in 2025, under the current administration. And Indiana farmer Kip Tom, who served as the ambassador to the United Nations in the first Trump administration, argues the focus back on trade could bode well for ag.

“When Trump was president, we did nearly 50 trade deals around the world,” Tom told “AgDay’s” Clinton Griffiths in an interview. “He did the Phase One deal with China. And granted, we didn’t get to Phase Two or Phase Three, but the reality is he got to put together and he got started following the trade war that we had with him for a little bit. So, I think trade is going to be No. 1.”

Tom says Trump’s next four years will be looking at new trade deals, but today, groups like U.S. Meat Export Federation (USMEF) also want any trade negotiations to do no harm, especially considering some meat exports have actually grown this year, in spite of the widening U.S. ag trade deficit.

“I think if you look at 2024 pork exports, we’re pulling our weight. We’re going to have record volume and record value this year, approaching $8.5 billion or so on the pork side,” says Dan Halstrom, CEO of USMEF.

Mexico Becomes U.S. Top Buyer

Halstrom says record demand from pork is broad based, but the No. 1 buyer is Mexico.

“Mexico is being driven by everything,” Halstrom says. “I mean, food service, retail, convenience stores. The buying power of the Mexican trade has been record breaking but also a little bit amazing.”

Earlier this year, Mexico bumped out China as the top trading partner for the U.S. But in the final days of Trump’s presidential campaign, he threated to impose 25% tariffs on all Mexican imports if Mexico didn’t tighten the border. And Mexico’s economy minister said it’s considering retaliatory tariffs of its own.

“I think as long as we don’t have any disruption, then yes, I think the strong export pace is very well positioned to continue,” Halstrom says. “Of course, you have new administrations coming in with a lot of talk about the U.S.-Mexico-Canada Agreement (USMCA). But as long as we stay within the confines of the USMCA agreement and follow that, I think we’re well positioned to continue this momentum in Mexico.”

Dairy and the Importance of USCMA

Another protein seeing positive demand from Mexico through the USMCA is dairy.

“When the administration first negotiated USMCA, which was do no harm to what’s working well, and for us, dairy continues to be overall a really positive relationship. So, working to help preserve that,” says Shawna Morris, executive vice president of trade policy and global affairs at National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council.

The relationship with Mexico within USMCA has been a positive for dairy, but it’s the Canadian side of the agreement that needs work, according to Morris.

“I mean, they’re flat out not doing what they promised to do. And I just don’t see any way around calling them on the carpet for that,” Morris says. “Yes, they eked out a win in the last dispute settlement case the U.S. brought against them, but if one judge had changed their mind, though, we would have been on the winning side. It’s just a three-person panel. This isn’t gospel here; we’re talking about what Canada’s doing is shady. It needs fixed.”

She says between the way Canada administers the dairy tariff rate quota quantities to U.S. competitors, to their excessive exports of dairy protein, dairy is a piece of USMCA that needs to be addressed.

“The last administration tried to deal with that in USMCA,” Morris says. “We had some disciplines to try to tackle it in the agreement. And Canada has found some workarounds that both of those issues are going to need to be on the table. I think just in terms of UCMCA, it’s clean-up and follow through.”

The Biggest Wild Card: China

Even with southeast Asia, Latin America and Mexico carrying the weight for dairy exports, China is still the biggest wild card. We asked Morris if China does retaliate against Trump’s threatened 60% tariffs, if it would have the same impact as it did during the last trade war.

“China, even though it has pulled back on its global dairy imports, it’s still our third-largest export market,” Morris says. “So, it’s a pretty sizable market and difficult to place out into other markets the volume of that production, but I think what we also saw the first time around, in addition to the pain and disruption caused by the retaliatory tariffs that were imposed, was at the end of the process progress having been made.

Phase One Trade Deal with China

Progress in the form of the U.S. China Phase One agreement, which as Tom noted, was negotiated under Trump’s first term. Morris describes that deal as useful for dairy.

“We had a number of different non-tariff barriers, issues that were a drag on our ability to be able to reliably export to that market. And the phase one agreement included progress and dealt with a whole handful of those,” Morris says. “So, I’d say, yes, there’s upheaval. We’ve also seen from the first time around that that can yield significant progress in certain respects, and we’re hopeful that that’s more of what we’ll see this time around.”

China has also scaled back on their buys of U.S. pork, with exports down 11% so far this year, but Halstrom points out even with increased tariffs now entering the picture again, tariffs the past four years never went away.

“The thing to remember on these tariffs is, we’ve had a tariff now for quite a few years on China, on both beef and pork, and it’s not the ideal situation, but it doesn’t it doesn’t eliminate trade,” Halstrom says. “We ended up doing $2 billion in sales on beef with a tariff in 2022, I believe was the year. A lot of that came as a result of the phase one agreement in 2020, but people sometimes forget that there was a tariff involved, and we still had a pretty good outcome.”

Two weeks after the election, and Trump’s playbook seems to be unfolding quickly with all his cabinet picks. But some argue those tariffs might just be threats at first.

“Here’s what the Republicans tell me,” Wiesemeyer says. “Trump isn’t going to invoke these across-the-board tariffs right away. He’s going to use that as leverage to countries looking at their trade relationship with the U.S., and his key word is ‘reciprocity.’ If you don’t treat us like we treat you, then I’m going to invoke tariffs.”

Those close to Trump seem to be in alignment: the U.S. needs fair trade.

“When we’re spending $500 billion in China, and they’re only spending $350 billion with us, we need to level that out a little bit. And maybe it means more agriculture trade going into China to balance that trade out,” Tom says. “I’m very optimistic on trade with Trump. I have no doubts that we’ll get things put together. He knows farmers don’t like to get their money from the government; they like to get it from the market. And so, I’m really excited about that when we talk about trade. But yet, I know everybody’s pretty edgy about it at this point in time.”

Your Next Read: Do Tariffs Work? The Answer Isn’t As Straightforward As You May Think

Stabenow Finally Releases Full Text of Senate Farm Bill; Here's What It Means for Agriculture

Mon, 18 Nov 2024 17:35:08 GMT

Stabenow unveiled 1,397-page details of her long-awaited farm bill Monday morning. This comes as early Sunday evening Pro Farmer broke the news that Senate Ag Chairwoman (D-Mich.) had briefed Democrats but not Republicans on her coming farm bill text, which was expected to be released Monday.

Stabenow said in a news release and summary of the bill , “The foundation of every successful farm bill is built on holding together the broad, bipartisan farm bill coalition. This is a strong bill that invests in all of agriculture, helps families put food on the table, supports rural prosperity, and holds that coalition together.”

BREAKING: Chairwoman @SenStabenow Introduces Rural Prosperity and Food Security Acthttps://t.co/qRunZlk6zj
— Senate Ag, Nutrition, & Forestry Committee Dems (@SenateAgDems) November 18, 2024

The Rural Prosperity and Food Security Act includes $39 billion in new resources “to keep farmers farming, families fed, and rural communities strong.” The bill builds on the proposal Stabenow released in May by investing new resources and including innovative, new ideas to deliver the assistance farmers need faster.

It provides farmers with the certainty of a 5-year farm bill and the immediate help they need to manage the urgent needs of the present. It doubles down on our commitment to rural communities, ensures that the Supplemental Nutrition Assistance Program (SNAP) keeps up with the realities of American life, and brings the historic investments in climate-smart conservation practices into the farm bill. These new investments include:

$20 billion to strengthen the farm safety net to support all of agriculture and establishes a permanent structure for disaster assistance so emergency relief reaches farmers faster;
$8.5 billion to help families make ends meet, put food on the table, and improve access to nutrition assistance;
$4.3 billion to improve quality of life in the rural communities that millions of Americans call home.”

Farm CPA Paul Neiffer has already combed through the bill, and says, “This is our first preview of the Senate Farm Bill Proposal. There appears to be some benefit to production Ag, however, many of the proposals seem to penalize production ag such as the following:

Very limited increase in base acres
Restriction on payments due to ownership of farmland by higher AGI individuals or entities
Reduction in AGI limits
No change to definition of farm income
Possible limit on PLC payments
Items that may benefit production ag include:
Permanent ERP (although this is a very messy program)
Partial advance payments of ARC and PLC
Automatic 2023 and 2024 ARC or PLC decisions”

Senate GOP Ag Committee Ranking Member Reacts

Senate Ag Committee ranking member John Boozman (R-Ark.) on X wrote: “An 11th hour partisan proposal released 415 days after the expiration of the current farm bill is insulting. America’s farmers deserve better.”

“An 11th hour partisan proposal released 415 days after the expiration of the current farm bill is insulting. America’s farmers deserve better.” RM @JohnBoozman
— Senate Ag Committee Republicans (@SenateAgGOP) November 18, 2024

Meanwhile, the National Pork Producers Council (NPPC) issued the following statement:

“Though America’s pork producers appreciate Chairwoman Stabenow’s efforts to publish Farm Bill text, this is simply not a viable bill, as it fails to provide a solution to California Prop. 12,” said NPPC President Lori Stevermer, a pork producer from Easton, Minn. “Pork producers have continually spoken up about the negative impacts of this issue, and it is a shame these conversations were disregarded.”

In May, NPPC secured 100 percent of pork producers’ priorities in the House Agriculture Committee-passed bipartisan 2024 Farm Bill. In June, producers once again secured all policy priorities in Senate Agriculture Committee Ranking Member John Boozman’s 2024 Farm Bill framework.

NPPC said it urges both chambers of Congress to swiftly consider and pass a Farm Bill this year that includes a fix to California Proposition 12, a state law that places arbitrary housing standards on the pork industry, creating uncertainty for pork producers as they look to continue their operations to the next generation.

Additional Impact on Agriculture from Farm CPA

In a post this morning, Paul Neiffer of Farm CPA Report included a quick preview of the items that jumped out at him relative to the farm bill details released by Stabenow.

Reference Prices: The House proposal raised reference prices by approximately 10-20%. The Senate proposal appears to raise reference prices by a flat 5% (rounded). Although it appears that Cotton only went up by 4% instead of 5%.
Increase in Base Acres
- Only underserved and disadvantaged farmers may increase base acres
- Based on average of 2018-2022 plantings
- Includes prevent planted acres
- Maximum increase of 160 acres per farm
- If disadvantage farmer does not farm acres during 2025-2029, then increased base acres are eliminated
- Special 2023 and 2024 ARC/PLC election
- Automatic election to be paid the highest amount for 2023 and 2024 crop year even if the farmer originally elected ARC or PLC.

Limit on PLC Payment: The maximum amount of payment for PLC will be 15% of the effective reference price. As example, assume a farmer has a PLC yield of 200 bushels for corn and the effective reference price is $4.30 and the final corn harvest price is $3.50. Under the old PLC rules, the farmer could receive 200 bushels times 80 cents per bushel or $160. Under this proposal, the farmer is limited to 65 cents or $130 per acre.
Partial PLC Payments: Instead of waiting until after October 1 to collect a PLC payment, the farmer, in certain situations may elect to receive up to 50% of the crop beginning February 1. This is based on firm projections by USDA that the final harvest price will be below the effective reference price. If USDA pays too much, then the farmer must pay it back.
Agricultural Risk Coverage: As expected, the Bill increases the guarantee from the current 86% to 88%, less than the 90% in the House Bill. However, not expected, the Bill increases the maximum payment to 12.50% of benchmark revenue, matching the House Bill and makes this retroactive to the 2024 crop. 2023 crop remains at 10%.
Partial ARC Payments: Provides same mechanism for partial payments as under PLC.
Increase to Marketing Loan Rates: For 2025 crops and subsequent years, the loan rate will be the lesser of 110% of current loan rates or an adjustment based on current input costs versus a five-year average.
Sugar Program: Increase sugar cane payment to 24 cents per pound for 2025-2029. Sugar beet growers will receive 136.5% of sugar cane payment rate.
Permanent ERP: Emergency Relief Program would be made permanent (at least until next farm bill). Payment limits of $500,000 for specialty crops and $250,000 for all other crops.
Terms appear similar to old ERP programs, but it does not mandate how USDA will administer it, etc. Also, no extra payment limit if you can prove you are a farmer. This may still be messy for CPAs to help farmers calculate their claim. Also, requires farmers to insure all acres.
Adjusted Gross Income (AGI) limits: AGI limits dropped from $900,000 to $700,000.
- Increases AGI limits to $1.5 million for specialty and high-value crops.
- What happens if a farmer grows both? The Bill does not address this, other than likely leave it up to USDA to come up with rules.
- Waiver of AGI rules available to economically distressed producer.
- It appears that no payments will be allowed if the land is owned by someone or an entity whose AGI is over $700,000. This means that a farmer who is cash renting that ground will not qualify for any payment on that ground. Under current rules and the House Farm Bill proposal, any farmer who is cash renting the ground and their AGI is under the limit will qualify for a payment. This is a major change and will create the law of unintended consequences. They seem to want to not have an incentive for wealthier individuals to purchase land since their high AGI will not qualify them for any payments but under current rules they get no payment anyway.

Increase in CCC Scoring: Section 1708 indicates that for purposes of CBO scoring, the restrictions on utilizing CCC funds shall be $6.7 billion per year for 2024-2033. The last scoring by CBO was $400 million per year.

CRP Rentals Limit Increased to $125,000 from current $50,000

Crop Insurance Changes: Increases subsidies for beginning and veteran farmers and ranchers to essentially match House proposal.
- Increases SCO to allow for payment at 88% instead of 86% of guarantee. House was at 90%.
- Increases premium subsidies.
Makes improvements to Whole Farm and Micro Farm insurance plans.

Comments:

Several contacts, asked to respond to Stabenow’s late farm bill details, used the same words: “Wow, finally, but too late.” Stabenow is departing Congress after this session ends, and veteran farm bill watchers say this late-entry farm bill is not a positive chapter in her long career. Most are asking why she chose today in releasing the details, and why she took a partisan approach in briefing about the matter.

Ag Lenders: Just Over Half of Farmers Will Be Profitable in 2024

Thu, 14 Nov 2024 21:52:58 GMT

The American Bankers Association (ABA) and the Federal Agricultural Mortgage Corporation (Farmer Mac) have released their joint 2024 Ag Lender Survey.

The big takeaway: lenders believe only 58% of farmer borrowers will be profitable in 2024. That’s down from 78% in the previous year’s study.

“The agricultural economy is inherently cyclical, and ag lenders are navigating the changing conditions across the sectors they serve,” said Jackson Takach, chief economist of Farmer Mac.

“While the responses highlight slowing land values and a profitability shift from crops toward animal proteins, ag lenders remain steadfast in leveraging their resources and relationships to guide producers through all parts of the cycle,” Takach says.

Profitability expectations did vary by region and commodity category. Optimism was greater for livestock producers over row crop farmers.

The two top concerns listed by lenders for agricultural producers are liquidity and farm income.

For lending institutions, the respondents said the biggest concern was credit quality along with agricultural loan deterioration in the next 12 months.

“Agricultural credit quality remained robust in 2024, but lenders expect deterioration in the coming year as farmers face a more challenging environment,” said Tyler Mondres, senior director of research at the American Bankers Association. “Lenders are taking prudent steps to manage risk such as tightening underwriting standards, and they remain committed to working with and supporting their borrowers.”

Demand for loans secured by farmland and agricultural production loans increased in 2024, and both categories of loans are expected to rise in the next year as well.

The ABA/Farmer Mac survey has been conducted for nine years, and this year’s responses included more than 450 ag lenders who represent institutions ranging from less than $50 million to more than $1 billion.

You can read the full report here

Elevate Your Expertise: Join Ag Leaders at Top Producer Summit

Thu, 17 Oct 2024 22:16:47 GMT

As technology transforms what’s possible, consumer demands change and the global ag markets are ever more dynamic. The Top Producer Summit leads the way in provides business, technology, leadership content important to the next generation of farm leaders.

For those farmers and ranchers who want to use creative and ingenious ways to elevate their operations, TPS brings together industry and producers in order to help them make informed decisions to execute their vision.

Top 5 Reasons You Should Be in Kansas City February 2025

1. Our agenda is jam-packed with the industry’s best speakers. Hear from all-time favorites and learn from speakers new to the event.

2. Top Producer Summit is a one-of-a-kind networking event, with plenty of chances to talk with peers and make new friends!

3. The 2025 event will be held at the brand new Loew’s hotel in downtown Kansas City.

4. Meet the 2025 Top Producer award honorees.

5. A few days away from the farm or ranch will let you discover business opportunities, gain valuable insights and increase your competitive advantage.

Hear from other farmers and ranchers about why they enjoy attending Top Producer Summit each year.

Register here today.

America’s Premier Farmers and Ranchers to Gather at 2024 Top Producer Summit in Kansas City

Fri, 27 Sep 2024 16:51:50 GMT

Farm Journal’s 27th Annual Top Producer Summit, agriculture’s premier educational and networking event, is set for Feb. 5-7, 2024, at the Loews Hotel in Kansas City, Mo. The event will bring many of the nation’s top farmers and ranchers together to share business opportunities and ideas to take their operations to the next level.

The 2024 Top Producer Summit will feature industry-leading speakers on finance, innovative management practices, human resources, technology and succession planning. Attendees will also enjoy a night out networking at Kansas City’s Power & Light District.

The event will recognize several of the nation’s most outstanding farm operations. Finalists for the 2024 Top Producer of the Year Award include:

Christiansen Land and Cattle, Christine Hamilton, Kimball, S. D.
Garrett Land & Cattle, Kelly Garrett, Arion, Iowa
Haynie Farms, P.J. Haynie, Virginia and Arkansas

To register for Top Producer Summit, go to www.tpsummit.com

Top Producer also proudly awards two additional outstanding leaders in agriculture at the annual awards ceremony. The winner of the Top Producer Women in Agriculture Award will be awarded to Pam Johnson of Floyd, Iowa. The Top Producer Next Gen Award will go to Hallie Shoffner of SFR Seed in Newport, Ark.

Join us in Kansas City to honor these producers during the TP Summit event which includes dinner and the awards banquet. If you are not able to join in person, the entire awards banquet will be streamed live on Feb. 6 at AgWeb.com.

“Top Producer Summit is one of Farm Journal’s annual highlights for the farmers that attend and for Farm Journal to host as a company,” said Charlene Finck, president of Farm Journal. “It is the connection point for leading ag businesses with its superior networking and thought-provoking program.”

Agenda items include:

A pre-conference workshop on succession planning led by Rena Striegel of Transition Point Business Advisors
General session presented by mountaineer and business leader Vanessa O’Brien
Panel discussion of what’s next in the farm economy moderated by Tyne Morgan
Fireside Chat with Howard Buffett
General Session with innovator and creativity coach Kyle Scheele

Top Producer Summit is supported by platinum sponsors BASF, Case IH and Rabo Agrifinance. Silver Sponsors include NewLeaf Symbiotics. Bronze sponsors for the event include AGCO/FENDT, Balzer, Certis Biologicals, Corteva Agriscience, FMC, Growers, Pattern Ag, Precision Risk Management, Timac Agro USA and Tracer Minerals.

For the full agenda and to register for Top Producer Summit, go to www.tpsummit.com.

“Technical Debt” Continues To Grow Rapidly In The Agriculture Industry

Fri, 27 Sep 2024 02:17:54 GMT

Last December Southwest Airlines was forced to cancel more than 15,000 flights during the peak holiday season. It wasn’t weather, mechanical issues, or even striking airline workers that caused the chaos. Instead, the real reason for the grounding was the weight of the company’s overall “technical debt” had become too much too bear. In short, the company’s antiquated systems and technology broke down at the worst possible time.

Could the same thing happen in agriculture? Absolutely. In fact, the agricultural industry as a whole, at both the macro and micro levels are ripe for such technical tsunamis. That’s not just Chicken Little talking, such warnings are echoed by a recent McKinsey Global Institute study that placed agriculture dead last in terms of the industry’s state of digitization.

Is too much “technical debt” putting your farm’s future at risk? To answer that question you must first understand what technical debt means and how it affects your overall business.

Technical debt — or tech debt — is the implied cost incurred when businesses do not fix problems that will affect them in the future. Accruing technical debt causes existing problems to get worse over time. The longer the debt builds up, the more costly it becomes to rectify.

Learn more about the risk of technical debt at the 2024 Top Producer Summit. Register online today!

Farmers have been on the agricultural treadmill for the better part of two centuries now. It was JFK’s Chief Agricultural Economist Willard Cochrane that coined the phrase “technology tread-mill” to describe the race to adopt new technologies in order to remain cost competitive. From the Industrial Revolution to the Green Revolution, to the Biotech Revolution, to now the Information Age, it feels like Cochrane’s treadmill has accelerated to warp speed.

Assessing your farm’s technical debt is not as simple as evaluating risks from financial debt. There is not a clear formula, like a debt ratio, that measures total debt to total assets. Addressing technical debt involves taking inventory of the technology on the farm today and evaluating the short-term and long-term risks to your overall operation if one or more of those technologies fail.

That’s just the first layer of the onion when it comes to knowing your true technical debt. The exercise should also involve answering various questions about your farm’s overall technical health. Questions like — What technology is missing that I need today, or even tomorrow? What equip-ment should immediately be put out to pasture or parked in the digital fencerow? Are my technology pieces compatible? In other other words, do they play nice together and talk to each other? And finally — are you really using the technology you already have and the data that comes with it?

In the real world those questions might sound something like this — Do I need to digitize and record more of my field activities, like anhydrous or crop protection product application, in order to increase my farm’s future carbon market value? Is my yield monitor so old that they don’t even make memory card readers to download the data? Will my John Deere tractor display talk to my new Kinze planter? Do I religiously use technology to implement actionable agronomy practices like variable-rate seeding and crop removal recommendations?

Just like financial debt, not all technical debt is bad. Just like regular debt, it must be managed and serviced on a regular basis. The most important way to turn technical debt into a positive is to simply have a technology plan. What do you want your technology to do for you and does it align with the other overall future goals for your farming operation?

Tech debt cannot be eliminated by geeking out and going on a technology buying spree. Investment in tech should not be considered just a fair weather proposition, nor should it be considered when you’re behind the eight-ball like in the case of Southwest. Since the dawn of precision farm-ing, the industry’s pervasive mentality has been that technology falls into more of a luxury category than treating it as the capital expense it should be.

The agricultural treadmill has always been unforgiving. The recent rise of technical debt has only ratcheted up the intensity. If you are not proactive, you will likely spend all your time putting out fires. That leaves little time or energy left for planning. And as Winston Churchill once said: “He who fails to plan is planning to fail.”