Friday November 13 Ag News

KC Fed: Farm Financial Outlook Improves
Nathan Kauffman, Vice President and Omaha Branch Executive
Ty Kreitman, Assistant Economist

The outlook for agricultural credit conditions in the Tenth District improved in the third quarter alongside increases in commodity prices and the announcement of additional government aid. After dropping sharply in the second quarter due to disruptions associated with the COVID-19 pandemic, the prices of most agricultural commodities began to recover in the summer months. Strengthening demand supported additional increases in crops prices through the third quarter and into October, expanding profit opportunities for many producers heading into harvest. As a result, credit conditions deteriorated at a notably slower pace and the share of bankers reporting declines in farm income and loan repayment rates dropped from the previous quarter.

Farm Income and Lending Activity
A sharp decline in farm income in the previous quarter abated somewhat in the third quarter. Increases in prices for the region’s major commodities late in the third quarter, in addition to direct government payments, supported farm incomes in the Tenth District.  About 55% of agricultural bankers throughout the District reported lower incomes than a year ago, compared with 75% in the second quarter. Recent developments also led to more optimistic expectations about changes in farm income through the end of the year.

The slower decline in income was consistent across all states in the District while prospects for farm borrower liquidity also improved from the previous quarter. The pace of decline in income and liquidity was slower than the previous quarter in all states. The sharp deterioration in farm finances in the second quarter subsided most notably in Kansas and Oklahoma. The financial outlook for producers was most optimistic in western Missouri, where 40% of respondents indicated they expected liquidity would be higher than the same time a year ago and 50% expected farm incomes to be higher.

Following years of steady growth, demand for farm loans appeared to soften. About 25% of bankers reported that loan demand was lower than a year ago, the highest share since 2013. The third quarter also was the first time more bankers reported a decline in loan demand than an increase since 2013. Alongside flat loan demand, the availability of funding increased for the fourth consecutive quarter. Looking forward, increases in funding were expected to continue, but loan demand was expected to rebound.

Credit Conditions
Alongside a better outlook for farm income in 2020, most measures of credit conditions also deteriorated at a more gradual pace in the third quarter. About 20% of respondents reported a decline in loan repayment rates, compared with about 35% in the previous two quarters and 30% the same time a year ago. Repayment challenges were expected to ease across all types of farm operations in the next three months and improve slightly among row crop farmers and cattle producers.

Weakness in repayment rates also moderated across states in the District’s farm economy. The pace of decline in farm loan repayment rates slowed in all states, and was most noticeable in Kansas. Expectations about the coming months also were more optimistic than in recent quarters, particularly among bankers in western Missouri.

With an improved financial outlook from recent months, problem loan rates in the third quarter also dropped. Respondents indicated the average share of farm loans monitored for potential problems or exhibiting weaknesses throughout the area reached the lowest level in five years. The share of loans placed on a watch list declined from a year ago in all states expect Nebraska and Oklahoma and the classification rate of farm loans reported was lower in every state in the District.

The pace of renewals or extensions for existing borrowers remained elevated, but rates of liquidation slowed. Slightly more than 25% of respondents continued to report an increase in renewal or extension activity, but that was down from 40% in prior quarters. Alongside improved profit opportunities for producers and slower deterioration in liquidity, the share of bankers with borrowers selling machinery or land to bolster working capital declined notably and about 35% indicated that no borrowers had any planned sales.

Interest Rates and Farmland Values
Interest rates on agricultural loans continued to decline in the third quarter and farmland values increased slightly throughout the District. Variable rates on operating loans and fixed rates on farm real estate loans reached historically low levels and provided support to farmland values. The value of nonirrigated cropland and ranchland increased 3% from a year ago and nonirrigated farmland also increased slightly for the second straight quarter.

The stability of farm real estate values was consistent across all types of land in a majority of states. On average across all types of farmland, values increased from a year ago in all states expect Nebraska. The average increase was over 5% in Oklahoma and western Missouri and less than 5% in the Mountain States and Kansas.

Conclusion
Better profit opportunities for both crop and livestock producers, as well as additional government support across the sector, created more favorable conditions for farm finances in 2020 than earlier in the year. Farm income and credit conditions remained weak, but the pace of deterioration slowed from the last quarter and demand for farm loans was more subdued. Amid improvement to cash flows and repayment capacity, bankers were monitoring a smaller share of loans for problems. Bankers continued to express concerns, however, about the potential for renewed pressure in the months ahead, depending on the path of agricultural commodity prices and government support programs.



Industrial Hemp Tolerance to Early-POST Herbicides
Stevan Knezevic - NE Extension Weed Management Specialist

As Nebraska just legalized industrial hemp in 2019, during the 2020 season we have conducted a total of five studies (four field studies at Mead and one in a greenhouse in Lincoln) to test hemp tolerance to various herbicides that are commonly used in corn and soybean. This is the third article (in a series of five), that outlines the results of a study that tested hemp tolerance to herbicides applied early-POST to about one foot tall industrial hemp.

The treatment list included total of 11 herbicide combinations that were based on two, primarily grass-type, herbicides (Dual II Magnum, Assure II) used in combination with three, primarily broadleaf, herbicides (Moxy 2E, Stinger and Hornet). There were no weed control ratings presented. For individual weed response ratings to tested herbicides please check the corn and soybean sections of the 2020 Guide for Weed, Disease and Insect Management in Nebraska.

Industrial hemp (variety X-59 for fiber) was planted on June 8, 2020 in 30” rows, 0.5” deep and at about 20 thousand seeds per acre (10lbs / acre). Herbicides were sprayed on 10-12” tall hemp. Study was arranged in the randomized compete block design with 3 replications with 30 ft plots. Hemp injury ratings were conducted at 6, 13 and 21 days after treatment (DAT) utilizing the scale from 0-100 (0=no injury; 100=dead plant). The study was terminated after last rating.

Results
Hemp exhibited variable tolerance levels to tested herbicides. Visual injury levels ranged from almost no injury (~5%) to temporary injury (~20%), and in few cases, the severe injury or death (60%-100%).

Slight hemp injury was evident in plots with Dual II Magnum, Assure II and Stinger. All three products caused temporary hemp injury which lasted about two weeks and was evident in the form of leaf yellowing. For example, tank-mix of Dual II Magnum with Assure or Stinger caused 5-8% visual injury at 6 DAT, which was similar to 6-7% from a tank-mix of Assure with Stinger and Dual II Magnum. However, by the 13 or 21 DAT, all injuries disappeared, suggesting that these three products have potential for use in hemp after crop emergence (post-emergent).

Heavy hemp injury (>30%) was caused by tank-mixes with Moxy 2E, which was as much as 47% at 6 DAT, while the injuries were reduced to about 20-30% by 13 DAT and ~ 10% by 21 DAT, indicating the plant recovery. We do not know if these injuries resulted in any yields or biomass reduction on the season end as the study was terminated after last rating.

Severe hemp injury (60-10%) was caused by any tank-mixed containing Hornet, which caused about 70% injury at 6 DAT, which became much worse (97%) by 13 DAT and crop death (100%) by 21 DAT.

See data and photos here:  https://cropwatch.unl.edu/2020/industrial-hemp-tolerance-early-post-herbicides.  

Conclusion
Hemp exhibited relatively good tolerance to several products that can be used postemergence in industrial hemp. Assure II, Dual II Magnum and Stinger caused almost no hemp injury, thus they should be safe to use. Moxy 2E also has some potential for use. The temporary injury from Moxy 2E could be considered acceptable since it lasted only for about two weeks. Hornet caused unacceptable injuries, thus should not be used in hemp post-emergent. It is important to note that the above conclusions are based only on one year of data, this study will be repeated in 2021 season.



Nebraska Corn Board to Meet

The Nebraska Corn Board will hold its next meeting to address regular board business on Tuesday, Nov. 24, 2020. Due to COVID-19 concerns, the meeting will be held in-person and through videoconferencing technologies at several sites across the state. Sites with videoconferencing capabilities will be the Cornhusker Marriott (333 South 13th Street in Lincoln), Nebraska Extension Clay County office (111 W. Fairfield, Clay Center), University of Nebraska Panhandle Research and Extension Center (4502 Ave I, Scottsbluff) and Nebraska Extension Dawson County office (1002 Plum Creek Parkway, Lexington).

The meeting is open to the public and will provide an opportunity for public discussion.  A copy of the agenda is available by writing to the Nebraska Corn Board, P.O. Box 95107, Lincoln, NE  68509, sending an email to nikki.bentzinger@nebraska.gov or by calling (402) 471-2676.




National Pork Board Elects Officers

David Newman, a pork producer representing Arkansas, was elected to serve a second term as president of the National Pork Board at the organization’s November board meeting earlier this week. The National Pork Board’s 15 producer directors represent America’s 60,000 pig farmers, who pay into the Pork Checkoff – a program that funds research, promotion and education efforts benefiting the industry.
 
“Like everyone, U.S. pig farmers have faced significant challenges this year,” Newman said. “Supply chain disruptions caused by COVID-19 and the real threat of African swine fever have made this one of the most difficult years to be a pig farmer. But it has also shown us how resilient and agile our industry and the Pork Checkoff are in the face of adversity.”

Despite the numerous challenges the pork industry has faced, Newman is optimistic about the opportunities ahead.

“I am excited to be able to lead the Pork Checkoff for a second term as we implement key learnings from the past year, continue to build on retail sales growth for pork seen during the pandemic and show consumers the values of the pork industry from farm to fork through our Real Pork master brand,” said Newman, who owns and operates a farrow-to-finish Berkshire farm that markets pork directly to consumers and food service operators.

Rounding out the Pork Board’s executive officer team are Vice President Gene Noem, from Ames, Iowa, and Treasurer Heather Hill, from Greenfield, Indiana. Both are serving their second of a three-year term on the board.

Other producers appointed by U.S. Secretary of Agriculture Sonny Perdue and signed in this week to serve second terms on the Pork Board include: Scott Phillips, Drexel, Missouri; Deb Ballance, Fremont, North Carolina; and Todd Erickson, Northwood, North Dakota. Al Wulfekuhle, from Quasqueton, Iowa, was appointed to serve his first term.
 
Dr. David Newman, President – Newman is in his second term as a board member and owns and operates a farrow-to-finish Berkshire farm in Myrtle, Missouri, that markets pork directly to consumers throughout the U.S. David is also an associate professor of Animal Sciences at Arkansas State University where he teaches and conducts research, with an emphasis in meat science. He most recently served as board president, on the 2020 Strategic Planning Task Force, and on the Swine Health committee. He previously chaired the Domestic Marketing committee, served on the Producer Services committee and participated in Pork Leadership Academy.
 
Gene Noem, Vice President - Noem finishes hogs at JMG Farms in Howard County. Gene also manages the contracted gilt multiplication for PIC North America. He is in his second term on the board, most recently serving on the 2020 Strategic Planning Task Force and co-chairing the joint We CareSM Task Force with the National Pork Producers Council. Gene also serves on the Iowa Pork Producers Association board of directors and on its Promotions Committee.

Heather Hill, Treasurer – Hill is co-owner of Hill Farms in Greenfield, Indiana, a 600-sow farrow-to-finish operation, with her husband Marc and his parents. Hill Farms also grows corn, soybeans and wheat. Heather is a former president of the Indiana Pork Board and has been actively involved since 2009. She also serves on the National FFA Career Development Sales Committee and is a leader for the local 4-H chapter. Heather is an Operation Main Street speaker.



USMEF Details Creative Global Marketing Solutions, Elects New Officer Team at Virtual Planning Conference

Adapting market development programs for U.S. pork, beef and lamb to a COVID-impacted world and meeting the rapidly changing needs of international consumers were dominant themes of the U.S. Meat Export Federation (USMEF) Strategic Planning Conference, which was held virtually Nov. 10-13.

USMEF President and CEO Dan Halstrom kicked off the conference with a recap of 2020 export results, noting that U.S. pork exports are on a record pace, while beef exports have trended lower but are poised for a strong finish to the year. Halstrom noted that the recovery of foodservice activity in most key Asian markets is providing momentum for U.S. beef, with demand bolstered further by tightening supplies from Australia. He added that while pork exports to China have begun to cool from the unprecedented levels seen earlier this year, China's demand will remain strong in 2021 and U.S. pork is well-positioned for growth in Japan, Mexico, Southeast Asia and Central and South America.

Keynote speaker Anja Manuel, a former diplomat, author and leading advisor on emerging markets cited recent experience with pandemics as one of the reasons many Asian countries have recovered more rapidly from COVID-19 compared to the U.S., Europe and Latin America.

"They have the experience of SARS and MERS, so they've been through a pandemic before," Manuel said. "Their health systems are nationalized, so it's easier than here to get everybody on the same page. They're going to come back faster economically than the rest of us."

Manuel said U.S. beef and pork have a great opportunity for further growth in China, if trade tensions on non-agricultural issues don't interfere.

"We need to find a way where we're honest about our differences - where we push back on the Chinese when they're crossing the line, or we actually cooperate," she said. "And I think one of those areas is agricultural exports. It's really a sign of elegance and status in China to serve high-quality beef, pork, everything. [China's middle class] wants things to be safe and natural and clean, and U.S. meat has all of those attributes. So, I think the market is there for you if the governments don't get in each other's way."

Day two of the conference was highlighted by a panel discussion on creative marketing strategies. USMEF members heard from Joel Haggard, senior vice president for the Asia Pacific, South Korea director Jihae Yang and Gerardo Rodriguez, marketing director for Mexico, Central America and the Dominican Republic, on the challenges involved in meeting consumers' needs through various stages of COVID-related restrictions. All noted that the surge in e-commerce, online ordering and delivery services, as well as expanded options for preparing higher-end meals at home, are likely to endure well into the future, even as restrictions are eased.

The conference concluded Friday with a presentation by former assistant U.S. trade representative Sharon Bomer Lauritsen and the election of USMEF's new officer team.

Bomer Lauritsen, who recently retired from the U.S. government after 29 years of service and is now a trade policy consultant at Ag Trade Strategies, LLC, recapped many key trade breakthroughs for U.S. red meat over the years. She noted that while the Trump administration's approach to tariffs and trade sometimes put agricultural exports in a negative position, it also helped bring key trading partners such as Japan and China to the negotiating table on longstanding market access obstacles for U.S. beef and pork. She also offered a preview of what to expect from a new administration.

"President-elect Biden has stated his priority will be fixing domestic issues first, but that doesn't mean that the new administration at lower levels can't lay the groundwork to build constructive relationships and a foundation for trade negotiation," she said. "Biden also hasn't rejected engaging on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), but has stated the U.S. would need to see changes. I think it's possible to move forward with a Japan negotiation, although automotive issues will be difficult and could have ramifications for agriculture."

Bomer Lauritsen feels that more than ever, the agricultural sector will need a unified voice.

"Agriculture will need to speak up with the new administration on its priorities, and we need to strengthen the bipartisan nature of American agriculture," she said. "Over the past 30 years I've seen it to a small degree falling apart. There has never been a more important time to maintain a strong and unified agriculture and agribusiness voice at the state level, and in Washington, D.C., to balance the industrial voices. U.S. agriculture will need to defend and advance its interests, make sure they are heard over the non-ag voices, and keep the rules of trade strong and enforced to ensure that American agricultural exports continue to thrive."

The new USMEF chair is Pat Binger, who leads international meat sales for Cargill Protein North America. Based in Wichita, Kan., Binger has been in the red meat industry for 33 years, including 17 years directing Cargill Protein's overseas network of offices. He succeeds Idaho cattle feeder Cevin Jones, who chaired the organization for the past year.

Raised on a diversified farm in northeastern South Dakota and a graduate of Northern State University, Binger joined Cargill subsidiary Excel Corporation in 1987. His first opportunity to become deeply involved in international marketing came in 1991.

"While working in sales for another Cargill subsidiary, I was asked if I was interested in assuming responsibility for a small export business we had at that time," Binger said. "Although I didn't have any export experience, I said, 'Absolutely!' Shortly thereafter, I took a three-week trip to eight countries, traveling throughout Asia, meeting customers and gaining market exposure. I returned from that trip really excited about international business and the global red meat trade, and it's been a passion of mine ever since."

Despite facing trade barriers and an uncertain economic climate in many key regions of the world, Binger sees excellent prospects for further expansion of U.S. red meat's global footprint.

"From a carcass utilization standpoint, we need to continue to find ways to expand our export product mix - that's a big opportunity going forward," he said. "Additionally, there are items today that our industry is not getting boxed, either due to lack of labor or a combination of labor and complexity, and that's another opportunity that we need to manage through. But all in all, I am very optimistic about the U.S. red meat industry's ability to take on challenges and seize the opportunities that lie ahead. I remain excited and highly encouraged about the future of our industry."

Mark Swanson, chief executive officer of Colorado-based Birko Corporation, is USMEF's new chair-elect. Dean Meyer, a corn, soybean and livestock producer from Rock Rapids, Iowa, will serve as vice chair. The newest member of the USMEF officer team is Secretary-Treasurer Randy Spronk of Edgerton, Minnesota. A past president of the National Pork Producers Council and the Minnesota Pork Producers Association, Spronk also served as chair of USMEF's Pork and Allied Industries Committee and represented the pork producing and feeding sector on the USMEF Executive Committee. He serves on the board of directors of Wholestone Farms and is president and managing partner for Spronk Brothers Holding, which includes operations that produce pork and feedgrains, along with feed milling and delivery.

USMEF presented its 2020 Distinguished Service Award to Richard Wortham, executive vice president of the Texas Beef Council, while Bomer Lauritsen received the organization's Michael J. Mansfield Award. More information on these awards is available online.

USMEF's next meeting is the 2021 USMEF Spring Conference, which is set for May 26-28 in Minneapolis.



NCGA Sustainability Efforts Have a Clear Focus Gaining Momentum

Over the last four years, the National Corn Growers Association has homed in on sustainability initiatives completing a full assessment of its checkoff-funded organizational efforts and initiatives, NCGA CEO Jon Doggett told attendees of Field to Market’s Fall Plenary & General Assembly Meeting in his Keynote Address.

The productive effort looked at what is happening on the ground at the state and national level, and what our customers along the value chain were doing on sustainability. The investigation asked what goals the industry is setting, what was driving those decisions and delved into corn growers evolving role in meeting these goals.

“For decades, corn farmers have been making advancements in how they grow their crops, but they never referred to it as sustainability. To them, it was just the right thing to do, so they were good stewards of their land,” Doggett said. “But now we are bringing our customers together to evaluate and explore the options and opportunities to address climate in a manner that adds value for corn producers and enhances productivity and sustainability.”

The key to this effort was the formation of a Climate Task Force that invested two years working with industry partners to develop recommendations. Doggett says many of those recommendations are being implemented, but a big development was forming a Corn Sustainability Advisory Group to carry on their work.

At a surface level, Doggett said, the group affirms NCGA’s commitment to collaborate with partners to build out the sustainability story for export markets, ethanol markets, feed industry and livestock partners, and the corn processing sector.

Two concrete actions have also resulted, including the NCGA Corn Board approving a U.S. Corn Commitment Statement towards continuous improvement that can be found on our website.  To show our commitment towards continuous improvement, NCGA will be releasing a Corn Sustainability Report and Environmental Sustainability Goals early in 2021.

“Corn growers are committed to creating a more environmentally and economically sustainable world for future generations with transparency and through continued advances and efficiencies in land, water and energy use,” Doggett said. “By doing this, we can address the challenge of a changing climate that we are all experiencing.”



BLS Data Confirms Meat and Poultry Industry Reaches New All-Time Low Injury Rate

A newly released Bureau of Labor Statistics (BLS) annual report for 2019 shows U.S. meat and poultry packers and processors continued their lengthy track record of  reducing worker injuries, reaching a new all-time low for injuries.

“The BLS report proves that year after year, meat and poultry companies remain committed and have invested billions of dollars to reduce worker injuries and illnesses,” said Julie Anna Potts, President and CEO of the North American Meat Institute (Meat Institute). “Our members are proud of their record to reduce workplace related injuries over the last 20 years and will continue to adopt new technologies and methods to ensure the safety and well-being of its critical infrastructure workforce.”

The BLS report released final 2019 incidence rates for non-fatal occupational injuries and illnesses recorded with the Occupational Safety and Health Administration (OSHA). Meat industry results improved from both 2018 and 2017 levels, reaching a new, all time industry low of 4.0 cases per 100 full-time workers (per year).

For perspective, just 10 years ago this number was 9.3, while in 1999 the incidence rate was 17.1. A twenty- year injury rate reduction from 17.1 to 9.3 to 4.0 illustrates the sustained industry trend of workplace safety improvement.

Meanwhile, in sharp contrast to this data, and in the midst of a global pandemic, anti-animal agriculture and activist groups have falsely accused the meat and poultry industry of ignoring the safety of the men and women who work in their facilities.

“Just as meat and poultry companies have proven their determination to reduce injuries, they are remaining vigilant to reduce the spread of COVID-19,” said Potts. “They continue to check temperatures, provide testing, supply additional personal protection equipment such as facemasks and shields, conduct contact tracing, provide enhanced employee benefits like paid leave, and much more. Although the industry was challenged in the spring, numbers of positive cases associated with meat packing dropped significantly into the summer.”

In the early 1990s, the Meat Institute declared worker safety a non-competitive issue, which encouraged member companies to collaborate to find solutions that prioritized and enhanced worker safety. The meat industry, together with OSHA and the United Food and Commercial Workers union, also developed Voluntary Ergonomic Guidelines for the Meat Packing Industry — guidelines that OSHA called a “model” for other industries. In 2019, labor and human rights, including worker safety, was identified as a key pillar in the Meat Institute’s sustainability efforts and the industry is developing additional metrics and targets for continuous improvement over the next decade.

In August, the Meat Institute and OSHA signed a two-year alliance to provide Meat Institute members, the public, and other stakeholders with information, guidance, and access to training resources that will help protect workers. During the two-year alliance, participants will develop information on recognizing coronavirus transmission risks and best practices for preventing transmission, and on challenges for exposure control in meatpacking and processing facilities. Alliance participants will also conduct outreach to small- and medium-sized facilities on available guidance and compliance assistance resources, including the On-Site Consultation Program, and will work together on other outreach activities, including providing information on OSHA’s enforcement policies and procedures relevant to the meatpacking and processing industry.
 
The North American Meat Institute is the leading voice for the meat and poultry industry. The Meat Institute’s members process the vast majority of U.S. beef, pork, lamb, and poultry, and manufacture the equipment and ingredients needed to produce the safest and highest quality meat and poultry products.



FFAR Grant Increases Dietary Fiber in Wheat Crop

Diets lacking fiber are linked to health concerns such as colon cancer and heart diseases; yet, Americans only consume 30 percent of the recommended daily amount of fiber. One way to increase fiber consumption is to produce wheat varieties that contain more fiber. The Foundation for Food & Agriculture Research (FFAR) awarded a $479,997 Seeding Solutions grant to the University of California, Davis to increase the dietary fiber content in wheat products. Bay State Milling, California Wheat Commission and LimaGrain Cereal Seeds provided matching funds for a total investment of $959,997.

“A small increase in fiber content in refined flour products can translate into a significant boost in the public’s consumption of dietary fiber.” said FFAR Executive Director Dr. Sally Rockey. “By developing wholesome food with more fiber, and the same great taste, we can lower the incidence of preventable, diet-related diseases.”

Refined wheat flour, commonly known as all-purpose flour, is more popular than whole wheat flour in most industrialized countries, but lower in fiber. To increase fiber in refined flour, University of California, Davis researchers, led by Dr. Jorge Dubcovsky, are investigating ways to increase wheat dietary fiber using modified starch synthesis enzymes. The first generation of wheat varieties with increased dietary fiber in the plant’s starch showed reduced grain yield, making the grain more costly for consumers.

Dr. Dubcovsky’s team is developing a second generation of wheat varieties with high fiber in the refined flour but with a higher grain yield. Using genetic tools and molecular markers the researchers are identifying genes responsible for wheat yield, quality and fiber content. With this information, the researchers are testing combinations of wheat genetics, environmental conditions and growing practices that encourage high-yield and high-fiber crops.

“Most of the refined flour is starch, so the trick is to hide the fiber in the starch,” said Dr. Dubcovsky. “We increased the relative amount of ‘resistant-starch,’ which is not digested in the small intestine and works as dietary fiber. We are now combining modern and traditional breeding methods to improve the grain yield of the high-resistant-starch varieties, to make this healthy product more affordable to consumers.”

Ultimately, the researchers are encouraging fiber consumption by developing productive high-fiber wheat varieties with higher yields and lower costs, while maintaining flavor and quality. This research offers consumers a healthy alternative to refined products.



New Administration Appears Ready to Scale Up Ag Solutions To Domestic and Global Challenges

With Election Day behind us, the opportunity is now here to renew the nation's forward progress towards solutions for the major challenges faced by the United States and the world – climate change, natural resource depletion and hunger being prominent among them.

As SfL has long asserted, addressing these pressing issues will require a fully cooperative effort involving lawmakers from both sides of the political aisle. Also required for our nation to move forward are new kinds of "uncommon collaboration” that incorporate a range of interests as wide as the range of sustainable development goals at risk.

The co-joined climate, hunger and health challenges the world is facing today require integrated systems solutions. The old single-issue, siloed management style of problem solving will not address the multiple problems we face.

More multiple-faceted approaches to climate change are fortunately reflected in proposals under consideration by the incoming administration that call for action to be taken by a broad range of federal agencies. A guidance memo for USDA, authored by former high-level agency officials for the Climate 21 Project, is just one example of the cases being made to the incoming administration to utilize the vast, under-recognized federal potential to address climate issues.

An item under consideration is a "carbon bank" overseen by the USDA's Commodity Credit Corporation, which would pay farmers and forest owners to store carbon in their soils and lands. Another proposal calls for the creation of a White House National Climate Council, which would have the same standing in the new administration as the current Domestic Policy Council and National Economic Council.

One prospective climate policy at the Treasury Department would promote carbon reductions through tax, budget and regulatory policies; another initiative at the Transportation Department would push electric cars and trucks. Meanwhile, the president-elect has vowed to "promote and advance renewable energy, ethanol, and other biofuels to help rural America and our nation's farmers." Biden has cited the biofuel industry's objections to the millions of gallons of demand lost when the Trump administration’s EPA granted an unprecedented number of small refinery exemptions to the Renewable Fuel Standard biofuel blending requirements. He says he "will honor the critical role the renewable fuel industry plays in supporting the rural economy and the leadership role American agriculture will play in our fight against climate change."

Many are offering ideas for addressing climate change – driven in part by the National Climate Assessment released in late 2018 that warned climate change will take a huge toll on U.S. agriculture with more drought, heat and more extreme rainfall.

Farmer and ranch organizations and multi-stakeholder sustainability platforms like Field to Market are also stepping up and providing proactive leadership in support of climate smart agriculture systems that will enable agricultural landscapes to produce not only food, feed, fiber and energy but also clean water and air, enhanced biodiversity and solutions to these challenges.

Companies like Danone, General Mills, Nestle and PepsiCo have gone a step further and signed a United Nations-sponsored pledge to set more ambitious emissions targets, aimed at keeping global warming to 1.5 degrees Celsius. Tyson Foods Inc. is among two dozen major food, beverage and apparel companies that have joined the Science Based Targets initiative (SBTi), a project to develop the first science-based global standard for corporate net-zero target setting to encourage farm and forestry suppliers to help companies meet their net-zero targets.

In September, Walmart, the world's largest retailer (and a major presence in rural America with its huge market for agricultural products), set a 2040 target for zero emissions – a move which will put major pressure on its suppliers and entails the protection, management or restoration of at least 50 million acres of land. Smithfield Foods Inc., a vertically-integrated pork producer and processor, said in September it would make all of its company-owned operations carbon neutral by 2030, one of the most aggressive targets of any company in the country. Fruit and vegetable producer Dole Foods says its farms will be carbon neutral by the end of this decade.

The incredible breadth and diversity of effort coming out of the farm and food production sector demonstrates that a new era is emerging for U.S. agriculture, one in which farmers, ranchers and foresters can be valued and rewarded financially for all of the goods and services sustainably managed operations deliver from the land. The incoming administration has given every indication that it is ready to enable agriculture solutions to address the multiple challenges of our day, and SfL stands ready to help President-elect Biden scale all that agriculture can deliver.