Agriculture
3 November 2024: Grain, Ethanol & Snow Updates
2024-11-29
During Thanksgiving, grain and soybean trading came to a halt overnight. As per schedule, trading is set to resume at 8:30 a.m. in Chicago. This pause in trading provides a moment for reflection and anticipation of the market's resumption.

Uncover the Dynamics of Grain and Soybean Trading

Grain and Soybean Trading During Thanksgiving

Trading in grains and soybeans was suspended overnight as a mark of respect for Thanksgiving. This break allows market participants to spend time with their families and gives the market a chance to stabilize. Once trading resumes, it will bring with it a new wave of opportunities and challenges. 1: The significance of this overnight closure cannot be underestimated. It serves as a reminder of the importance of holidays and the need for balance in our lives. While the markets are closed, industry experts and analysts will be closely monitoring the situation and preparing for the upcoming trading sessions. 2: The resumption of trading at 8:30 a.m. in Chicago will mark the beginning of a new trading day. Market participants will be eager to assess the impact of the Thanksgiving break on prices and market sentiment. This will be a crucial time for traders to make informed decisions and adjust their strategies accordingly.

Ethanol Production: Reaching New Heights

According to data from the Energy Information Administration, ethanol output last week witnessed a significant surge and inventories also climbed. The production of this biofuel increased to an average of 1.119 million barrels a day in the week that ended on Nov. 22. This is an impressive achievement, surpassing the previous week's production of 1.11 million barrels and reaching the highest level since record keeping began in 2010. 1: In the Midwest, the largest producing region, output rose to an average of 1.048 million barrels. This regional gain showcases the strength and potential of the Midwest's ethanol industry. The increase in production is a result of various factors such as improved production techniques and increased demand for biofuels. 2: However, it's not all good news. While Midwest production saw a significant increase, other regions faced some challenges. East Coast production remained steady at 12,000 barrels per day, and Rocky Mountain production was unchanged at 15,000 barrels per day. Gulf Coast production also fell to 34,000 barrels a day from 35,000 barrels, and West Coast output declined to 9,000 barrels from 10,000 the week prior. These regional variations highlight the complexity of the ethanol market and the need for careful monitoring.

Snowfall: A Forecast for Several States

The National Weather Service has forecasted snow for much of central Missouri tonight into tomorrow morning. While most areas will only get a dusting, some regions can expect up to 2 inches of snow. Wind chills will be in the single digits or teens in the mornings through the weekend into next week. 1: Flurries are also expected in parts of Iowa, Minnesota, South Dakota, and Nebraska. However, accumulations are likely to remain below a half inch. This forecast indicates that while there will be some snowfall, it may not have a significant impact on daily activities. 2: The additional snowfall forecast for tomorrow and possibly Sunday adds an element of uncertainty to the weather situation. It will be important for residents and businesses in these areas to be prepared and take appropriate measures to ensure their safety and well-being.
Regenerative Agriculture: Boosting Montana Farm's Growth
2024-11-29
Jeff and Marisa Sather's fourth-generation Sather Farm and Ranch in northeast Montana is guided by a holistic triple bottom line. This approach aims to maximize profit for the operation while also maximizing ecological and social benefits. With Jeff managing the operation and Marisa as a biologist with the U.S. Fish and Wildlife Service, they are committed to making sustainable decisions.

Unlock the Power of a Triple Bottom Line for Sustainable Farming

Using Cover Crops

Growing cover crops for livestock grazing is a crucial aspect of building soil biology. However, drought and grasshopper predation pose challenges. The Sathers are exploring alternative methods such as applying compost extract and fish hydrolysate to jump-start the rebuilding process. They also use a calcium treatment to break up soil compaction, reducing the need for herbicides. In years when cover crops thrive, as seen in 2021 during a severe drought, the benefits are evident. The Sathers have had success with a five-way, cool-season mix planted early in spring and grazed at different times. Soil tests have shown an increase in organic matter in just one year.

Despite potential yield reductions, the net profit per acre has improved. In drought conditions with no fertilizer, they can still harvest high yields of durum wheat.

Regenerative Livestock Production

On the cattle side, the Sathers have implemented regenerative practices. They delay calving until May and June to allow for pasture calving and practice managed grazing by rotating cattle through multiple small paddocks. They select for efficient herd genetics that thrive on grass and require few purchased inputs.

In addition to cattle, they run flocks of free-range butcher chickens and turkeys, as well as hogs sold locally. The poultry and hogs add value to the cropping enterprises' grain screenings, and the turkeys help reduce grasshopper damage to the market garden.

Growing the Farm

The Sathers have grown their operation by purchasing nearby farms. Their land base now includes 5,000 acres of cropland and 7,000 acres of pastureland. They are constantly looking for diverse enterprises and new farmers to join their operation and rejuvenate local communities.

They consider options such as selling, leasing, or gifting acres to help create revenue streams for others. While some enterprises are still experimental, they showcase the possibilities for young people starting as apprentices on the farm.

Marisa sums up the vision for their new-generation farm: "We aim to see the productivity of our operation increase over time, including traditional yield and value. This includes ecological and social value like adding families to the landscape and integrating diverse enterprise mixes. We want to see thriving wildlife and a thriving human community as we continue to succeed and grow our operation."
See More
North American Farmers Embrace Agrivoltaics for Profitable Harvest
2024-11-29
In North America, two visionary minds, Joshua Pearce and Ethan Winter, are at the forefront of a revolutionary concept - agrivoltaics. This relatively new term combines cropping practices with solar panels on the same fields, offering a highly profitable harvest for farmers and ranchers.

Uniting Agriculture and Solar Power for a Sustainable Future

Fields of Opportunity

Joshua Pearce, who arrived in Canada in 2021 from Michigan Tech University, is an academic engineer with diverse expertise. He believes that agrivoltaics in North America presents a "slam dunk" opportunity. In his latest research, he posits that just 1% of Canadian farmland could provide a quarter to a third of the country's electrical energy needs. "You can increase the yield for your crop if you do it right. You do get more food, and you get the added revenue of the solar. That's why agrivoltaics is growing like crazy in the whole world," he said. Agrivoltaics is forecast to become a $9.3 billion marketplace by 2031, growing at a compound annual rate of 10.1% from $3.6 billion a year ago. However, setting up solar fields is complex and requires public policy, energy corporations, education, and leasing.Pearce challenged 125 of his MBA students to propose profitable agrivoltaic developments on Alberta farmland, and every student found a way to do it. They explored different crops, solar arrays, and contracts with farmers. But this new technology is outside the box of established farming practices, and massive education is needed. "If you quizzed 100 farmers, a handful would have heard of [agrivoltaics]. We have a long way to go before it's going to happen," he said.

Smart Solar Program

Ethan Winter, based in New York state's upper Hudson Valley, is the national Smart Solar director for American Farmland Trust (AFT). Established in 1980, AFT works to protect farmland and ranchland and promote conservation practices. The AFT Smart Solar program expanded in 2023, adding regional solar specialists and an in-house expert in energy and agrivoltaics. In January, the USDA and the Department of Energy hosted national sessions to listen to farmers and stakeholders express their interest in agrivoltaics.AFT has formalized updated policy recommendations, including prioritizing solar development on non-farming land, safeguarding soil health, growing agrivoltaics, and promoting equity. To administer state-level programs, AFT is identifying research and resources for farmers. The National Renewable Energy Lab is leading a national analysis on solar and wind land needs. Potentially, over 10 million of the 880-million-acre total farmland base could be needed for solar by 2050.

Leasing Guidance

The National Agricultural Law Center provides guidance to farmers on farmland-based energy issues, including lease tips. Lease rates for solar vary by location, from several hundred dollars to $2,000 per acre per year. Landowners are paid for providing land. Winter advises landowners to be ready for offers and be aware of nondisclosure agreements. AFT worked with legal experts to develop a leasing guide for farmers and plans to expand it to other regions.

Ongoing Research

Several universities are conducting research on agrivoltaics. Cornell, Iowa State, Ohio State, and Oregon State are developing interdisciplinary programs, with some having field-test sites and focusing on social science. The USDA's biggest investment in agrivoltaics is at the University of Illinois, which received a four-year, $10 million grant to develop experimental arrays and solar cropping trials. AFT is also working with The Land Institute on a pilot project to grow perennial wheatgrass between the rows.

Healthy Skepticism

At the frontier of agrivoltaics, Pearce and Winter are confident about the opportunities but acknowledge the healthy skepticism from farmers. "It's been likened to farming in an obstacle course. There are challenges, and that's why we need more producer voices. We need to make sure we're mindful and balance the trade-offs between energy and agricultural production," Winter said. Annual academic agrivoltaics conferences have begun in the US and Canada.
See More