Each year agriculture always has a different chapter to tell and 2021 was no exception.
Uncertainty and optimism greeted this past year as farmers and ranchers waited to hear what President Joe Biden’s policies might mean to their livelihood. Many of those feelings remain. Uncertainty from COVID-19 caused major disruptions in the supply chain in 2021 and temporarily devastated beef and pork markets. Disruptions remain as the economy sprang into recovery mode. A strong dose of inflation has also clouded the picture.
Low interest rates spurred record sales for farmers who like the value of crop and pasture land in their operations.
A temperamental Mother Nature was stingy in turning on the faucet particularly in the northern Plains early on as drought spread south during the growing season. However, unlike August 2020 when a derecho devastated a promising Iowa corn crop, grain producers throughout many parts of the High Plains region reported favorable yields. That matched nicely with prices. A year ago, according to Dodge City’s Pride Ag, wheat was $5.49 a bushel, corn was $4.72, sorghum was $5.74 and soybeans were $11.67. In early December, the respective prices were $7.92 for wheat, $5.98 for corn, $5.83 for sorghum and $11.42 for soybeans—the only majority commodity that was lower.
Wheat exceeded production expectations even with weather challenges.
“This year’s harvest was drawn out a bit due to cooler weather,” Justin Gilpin, CEO of Kansas Wheat, told writer David Murray. “It’s usually over by mid-July,” but dragged out this year until the end of July. Every single wheat class had some unique challenge this year.
Gilpin said that back on the old wheat-trading floors, traders used to regard the price of oats as a leading indicator for the price of wheat. “They used to have a saying, ‘Oats knows,’” Gilpin said. Earlier this year, the price of oats reached an all-time high of $5.90 a bushel.
As part of a Phase One agreement negotiated by former President Donald Trump, China re-entered the market particularly for corn, soybeans and sorghum. A trade war between the two countries hurt market outlets but eased as China started to fulfill commitments. China agreed in January 2020 to purchase and import on average $40 billion of U.S. food, agricultural seafood products annually for a total of at least $80 billion over the next years. China agreed to expand beef products purchases that could mean up to $1 billion annually. It also broadened the list of pork products that could generate $1.7 billion annually. China has been beset by African swine fever to its herds.
The results have helped bolster livestock prices although other issues were top of mind, too.
Farmers and ranchers expressed concerns about consolidation in the processing industry as much focus was spent on the Big Four packers—Tyson, JBS, Cargill and National Beef. Meanwhile, in Washington, Congress looks for ways to deliver on a promise to help provide greater transparency in market prices. The U.S. Department of Agriculture also is providing resources to aid to help smaller meat processors.
Beefing up
The beef industry got several big injections into the market place with the announcement of new plants in North Platte, Nebraska; Mills County, Iowa; and Warren County, Missouri.
Sustainable Beef, North Platte, Nebraska, announced plans to build a $200 million, 300,000-square-foot plant that will process 1,500 head of cattle a day beginning in early 2023 and employ 875 workers. In Iowa, Cattlemen’s Beef Heritage Company has announced plans to build a $325 million plant and process 1,500 head per day in late 2023 in Mills County, Iowa, which is near Council Bluffs. American Foods Group’s plant will harvest about 2,400 head of cattle a day at its site near Archer Road and Veterans Memorial Parkway in eastern Missouri. The total investment could be potentially as high as $450 million, according to a company spokeswoman. The plant will be about 500,000 square feet and employ about 1,300 people.
Also, National Beef is adding capacity at its Tama plant with a total investment estimated at more than $100 million and will double the capacity of the plant to approximately 2,500 head per day.
The dairy industry added positive news. Hilmar Cheese Company Inc. led the charge when it announced plans to build a $460 million cheese and whey protein processing plant and create 247 jobs in Dodge City, Kansas, by late 2023.
Rural communities take a bow
The year also marked a renaissance with rural art. Murals popped up throughout the Plains as communities embraced their rural roots with common sites serving as the canvas.
Grain elevators make a giant statement, and Audrey Sayles and her cousin Staci Beauford consider them the lighthouses of the Plains. Sayles and Beauford are both farmers’ daughters who grew up in the Plains of eastern Colorado. They told Web Editor Shauna Rumbaugh their goal is to paint elevators and grain bins along the interstate route in eastern Colorado. Beauford said, “Our mission is first of all to help the local economies. If they can get a few more people to stop on the interstate and pull in and support the local businesses, that’s great. But the other part is just to tell our story.”
Communities also reached out to help their neighbors. In Greeley County, Kansas, friends of the late Mike Vogt, who unexpectedly died in a multi-vehicle accident in late September, organized a large-scale effort to cut fall crops. His wife, Sharon Vogt, was thankful for neighbors who rallied to cut his fall crop.
“They did ours first,” Sharon Vogt told Field Editor Kylene Scott. “It wasn’t even, ‘Well, after we get ours done, we’ll come help you.’ They did ours first. And now they’re still working on theirs. And it’s just like, ‘Oh, my word. You know?’”
In south central Kansas, Madie Marshall, a former 4-Her and current Kansas State University student, of Barber County, shows incredible resolve in her fight against cancer as family members and friends rallied to help with a fundraiser that raised $35,000 to defray costs associated with her cancer treatments. Callen Corr, another Barber County youth, donated his steer to help. The event was a highlight to the Barber County Fair as organizers were celebrating 100 years.
“When I first found out, I got pretty emotional because it’s very overwhelming and heartwarming to see the support from home,” Madie told Field Editor Lacey (Newlin) Vilhauer. “It’s not something anyone had to do for me and my family, but the fact that they did is just something. I can’t put into words how grateful we are for everyone’s love and support. Cancer is such a hard thing to go through, but Barber County has let us know that I am not fighting this alone and there is a huge support system at home.”
Technology remains on the minds of many farmers and ranchers and it has many advantages to improving the operation’s bottom line. But man’s best friend can help when a microchip or data processor will not serve a purpose—herding sheep, goats and cattle.
Laura Stimatze of Owasso, Oklahoma, has been training dogs for 34 years. She raises Border Collies but, during certain times of the year, will train any dog willing to work.
“[Good working dogs] aren’t just born by happenstance,” she told Copy Editor Jennifer Theurer. “They have to have the desire to work and want to work bad enough to do it your way.”
What’s ahead?
As the 2021 chapter closes a familiar foe—COVID-19—continues to weigh on the marketplace. A new variant, Omicron, has raised questions about how the supply chain, which includes imports and exports, will mean to agriculture. The cost and availability is on the minds of nearly all High Plains producers as they look to fine-tune their crop rotation.
Agriculture’s outlook will depend on several factors, including how the Biden administration and Congress will debate climate change. Renewable fuels industry certainly wants to see ethanol, an important piece to corn, soybean and sorghum producers, regain its foothold.
Infrastructure of not only roads, bridges and ports are essential to the High Plains economy but also broadband, and the 2020 shutdown gave an unfortunate glimpse into the haves and have-nots of technology. The federal and state governments are on the same page about its importance but how it is carved out will define future haves and have-nots in rural communities.
Still, farmers and ranchers will continue to look for ways to improve their bottom lines. The challenge will be new with new story lines and new ways to solve it. Upon reflection there is no doubt they will meet the challenge with renewed resolve and optimism.
Dave Bergmeier can be reached at 620-227-1822 or [email protected].
