Syngenta Thrive

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Tony Driver, Syngenta agronomic service representative, recently received the 2021 Norman Borlaug Lifetime Achievement Award from the Texas Plant Protection Association (TPPA). Driver has worked at Syngenta on various cropping systems in south and central Texas and eastern Oklahoma for 38 years.

“Tony is a well-respected agronomic service representative with Syngenta Crop Protection. He has served TPPA as an officer and board member and been a sponsor for the conference for many years,” Bob Sasser, TPPA Executive Director and Driver’s former colleague, told Farm Progress. “He is well-deserving of this award; he is supportive of TPPA and encourages others to be involved.”

Growing up in a farming community in Humphrey, Arkansas, Driver’s interest in agriculture started at a young age. In high school, he joined Future Farmers of America, and his instructor encouraged him to pursue an undergraduate degree in agriculture at the University of Arkansas at Pine Bluff. After graduating, he worked for the Arkansas Soil and Water Conservation District as a soil conservationist. He later received his master’s degree in weed science from the University of Arkansas at Fayetteville.

“I am honored to receive this award because it demonstrates that my dedication and commitment to the agricultural industry is recognized by the growers and customers I work with and support,” Driver says. “It is also an honor to join past recipients of the Dr. Norman Borlaug Lifetime Achievement Award. This recognition is one that I will always cherish.”

Cover image: Tony Driver, Syngenta agronomic service representative and recipient of the Dr. Norman Borlaug Lifetime Achievement Award. Photography by Shelley Huguley. 

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Purdue University recently presented Gordon Vail, Ph.D., head of U.S. Crop Protection Field Development at Syngenta, with a Distinguished Agriculture Alumnus (DAA) award. Vail received his doctorate in botany and plant pathology from Purdue.

“When I was on campus receiving the award, I discovered that Vern Hawkins — Syngenta Crop Protection president and North American region director — is also a past recipient of the Purdue DAA, so receiving this award certainly puts me in elite company,” Gordon says.

The nominating committee recognized Vail for his many contributions to Syngenta and legacy companies over his 28-year career. The committee also selected Vail because of his continued investment in Purdue, noting that he visits campus for an annual research update hosted by the Purdue Weed Science group.

“When returning to campus, he can be counted on to interact with faculty and students, offer professional guidance on projects, and perhaps mention that his resume still proudly notes that he was a coach and member of Purdue’s first-place team at the 1993 North Central Graduate Student Weed Contest,” the awards committee wrote.

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Q: Why was 2021 a breakout year for Southern rust in corn? What do you expect to see in 2022?

A. Phil Krieg, Illinois agronomy service representative at Syngenta: 2021 was a breakout year for Southern rust because of the near-perfect weather conditions that we had for the disease to establish, infect and spread north throughout the Corn Belt. When conditions favor rust development, the infection cycle continually repeats itself — spreading disease throughout the plant and helping it to readily move from plant to plant. Because Southern rust does not overwinter in the Midwest, it’s always a wait-and-see game as to whether the disease presents itself in any given year, so we have no idea if we’ll see it in 2022.

A. Travis Faske, Ph.D., professor and extension plant pathologist at the University of Arkansas: Southern corn rust is an annual occurrence in the mid-Southern United States, and severity depends on environmental conditions and the corn growth stage when rust is first detected. In 2021, several factors contributed to the severity of Southern rust development. First, widespread rainfall delayed planting, which contributed to a wide range of corn growth stages when Southern rust was reintroduced in the region. Second, when rust arrived in July, the weather conditions were very good for rust development. Third, hybrids were susceptible to Southern rust. This year, rust will return to the region, but arrival time and summer weather conditions are the unknown factors.

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Conditions that favor Southern rust development are high relative humidity and temperatures around 80 to 90 degrees Fahrenheit — especially at night.

Phil Krieg Illinois Agronomy Service Representative at Syngenta

Q: How can growers identify Southern rust in corn? What environmental conditions foster the disease, and how does it spread?

A. Krieg: Southern rust pustules are orange to tan, circular or oval, and about 1/16 inch in diameter. Most pustules develop on upper leaf surfaces. The fungus that causes Southern rust can infect a plant after approximately six hours of leaf wetness. Dew usually provides enough moisture to cause infection, but frequent rainfall can promote severe disease development. Conditions that favor Southern rust development are high relative humidity and temperatures around 80 to 90 degrees Fahrenheit — especially at night. Each year, wind currents from southern, more tropical areas carry rust spores north and begin new infections. The weather conditions outlined above take over after the spores arrive and infect the plant, determining the spread and severity of the disease.

A. Faske: Southern rust produces orange-colored pustules that rupture through the upper leaf surface. Pustules are often surrounded by a light green halo and clustered near the first pustule from the initial infection. These pustules are commonly detected in the mid-to-upper canopy. The most common misdiagnosis is common rust. Common rust produces dark-red-colored pustules that can rupture through the lower leaf but are more common on the upper leaf surface. The environmental conditions that favor Southern rust are frequent rainfall causing four to eight hours of leaf wetness, high relative humidity, and warm temperatures (82 to 88 degrees Fahrenheit). Wind spreads the rust spores to infect nearby plants. During the cropping season, windblown spores move progressively northward — infecting new fields.

Q. What is the yield impact of Southern rust in corn when left untreated?

A. Krieg: The Southern rust fungus uses a plant’s nutrients for growth and reproduction, which affects grain fill and ultimately reduces yields. Rust pustules also rupture leaf epidermal tissue, which can interfere with the regulation of water loss by stomata. Consequently, severe rust outbreaks make it harder for plants to use water efficiently, so infected plants may exhibit symptoms of mild to severe drought stress. In severe cases, these infections may predispose plants to secondary infections by stalk rot pathogens, which leads to lodging and yield loss. Yield losses of up to 45% have been reported with severe disease.

A. Faske: Grain yield losses have ranged from 20% to 40% in Arkansas when Southern rust occurred at tassel and the severity and percent of leaf area (ear and nearby leaves) affected at dent was above 40%. However, grain yield losses ranged from 5% to 10% when Southern rust started later at milk, with a similar degree of severity at dent.

Q. What fungicide strategies do you recommend to control Southern rust in corn?

A. Krieg: Applying Trivapro® or Miravis® Neo fungicides before the disease establishes in corn helps give the best return on investment (ROI) and yield protection. In 2021, two-pass fungicide applications helped provide the best ROI and yield response due to the early onset of the disease and the extended period of infection throughout the region.

A. Faske: Scout corn at tassel and later reproductive stages for Southern rust. If detected and conditions favor disease development — and corn growth stages are tassel, silk, blister or milk — protect yield potential with a fungicide. Good coverage is important to protect leaves at mid-canopy. Several fungicides have good efficacy against Southern rust. These fungicides contain a strobilurin fungicide plus at least one other class of fungicide.

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Cover image: Headshots courtesy of Travis Faske and Phil Krieg. 

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With increasing pressure from Pythium and Phytophthora infections posing a significant threat to soybean yield, growers are looking for an additional tool to protect their crop.

The Environmental Protection Agency recently granted federal registration for that tool: CruiserMaxx® APX seed treatment, Harnessing the novel active ingredient picarbutrazox, CruiserMaxx APX adds unmatched Pythium and Phytophthora protection to the proven broad-spectrum disease and insecticide protection base seed treatment. CruiserMaxx APX offers more uniform emergence, stronger roots and quicker speed-to-canopy.

CruiserMaxx APX will be available for limited trials in 2022 and more broadly available in 2023. To learn more, visit SyngentaUS.com/CruiserMaxxAPX.

© 2022 Syngenta. Important: Always read and follow label instructions. Some products may not be registered for sale or use in all states or counties. Please check with your local extension service to ensure registration status. CruiserMaxx® and the Syngenta logo are registered trademarks of a Syngenta Group Company.

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Because California only receives around 21 inches of rainfall annually, growers in the state know how to do a lot with a little. For example, they use irrigation and smart water techniques to ensure orchards, row crops and livestock succeed.

“We have no other choice in California ― being water conscious is a necessity,” says Ethan Nichol, a California independent crop consultant.

Water management from California to Maine and every state in between is complex. It requires data about soil moisture and crop moisture uptake, and information about current and upcoming weather conditions. New technologies are more important than ever when it comes to water management in flood, drip and center-pivot irrigation.

Understand Farm Water Consumption

It’s difficult to measure improvement without benchmarking. Growers must know where fields stand today to measure savings from better water-use efficiency.

“One of the biggest struggles I’ve seen is farmers don’t always know how much water they’re putting down on fields,” says Dayna Gross, sustainability manager of partnership and programs for Syngenta North America. “Step one is increasing monitoring to understand what is actually being put out on the field.”

To understand where your operation stands, USDA’s Sustainable Agriculture Research and Education group recommends the following steps:

  1. Collect data. Map fields, location of water supply networks, inventory pumping plans, and meters or measuring points. USDA also recommends noting field slope and soil information, including texture, type and infiltration rates. If the field uses irrigation, then document the irrigation method, the schedule, and well construction and testing records.
  2. Audit the operation. Perform a physical irrigation audit to verify water use by reviewing water- and energy-use efficiency on the farm.
  3. Create a report. Data collection and audit information will provide evidence needed to generate a report about equipment, irrigation schedules and water uses across the operation. This report will provide practical information, such as when to schedule maintenance and how to improve irrigation systems overall.

“That measurement piece and record keeping are key,” says Steven Wall, sustainability development manager for Syngenta North America. “And new tools can help you understand soil moisture and plant health so you can use all of this information to get the right amount of water to the plant at the right growth stage.”

Use Technology to Inform Decisions

The days of walking fields to check for moisture stress aren’t over yet, as soil probes are still widely used, but certain tools help focus scouting efforts. From satellites and drones to stationary soil monitors and plant-sensing technologies, growers can increasingly turn information into action.

“Remote sensing is a great tool, and imagery is a great way to get a feel for how crops are doing,” Wall says. “Aerial imagery is one way to see discoloration or other indicators of plant stress.”

Seed and agronomy companies are taking note. Syngenta, for example, launched the Water+™ Intelligent Irrigation Platform, allowing users to control irrigated corn production and grow corn with less water. It’s a collaboration with growers, industry partners and Lindsay Corp.

Growers have more precise information about irrigation on-farm with the Water+ Intelligent Irrigation Platform, which brings together Syngenta genetics, crop protection inputs, agronomic advice, and irrigation technology and equipment. It informs planting, controls pivots, and provides crop monitoring — including irrigation recommendations and updates — from laptops or phones.

Monitoring crops for moisture use enables greater efficiency than soil sensing alone. In California, Nichol saw an 800 pound-per-acre difference in almond yields field-to-field when he gave trees moisture as needed instead of using a flat rate across the operation. He began using an irrigation decision support tool from Phytech in 2016 to make these changes.

The Phytech sensor-based system works directly on the plant, informing operators about plant health and water needs based on moisture uptake.

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Step one is increasing monitoring to understand what is actually being put out on the field.

Dayna Gross Sustainability Manager of Partnership and Programs
at Syngenta North America

Comparing two orchards where he used the Phytech technology, Nichol found that the one he expected to produce higher yields was demanding 20% less water than the other. It turned out that due to pest pressure, the orchard was not performing as well as usual. By giving the trees what the monitors indicated was needed, he saved critical water resources.

“If I was only looking at the soil moisture probes, I would have over-irrigated for sure,” he says. “Without that feedback, we would have wasted water and money.” Smart water resource allocation not only reduces costs, but it also means farmers, ranchers and orchard operators are being more sustainable.

“What’s exciting as we start using more technologies for irrigation is creating greater efficiencies,” says Wall. “If we reduce pumping because we see that we’re using too much water, we save energy and water consumption costs while maintaining productivity. On top of that, we benefit aquifers and the environment overall. It’s a win-win.”

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Many tree nut and citrus growers recently watched their margins erode due to increasing input costs, questionable water availability and lackluster crop prices. Phytophthora root rot, which can reduce tree efficiency and yield potential, puts further pressure on their bottom lines.

“Here in California, growers are running on razor-thin profits,” says Garrett Gilcrease, Syngenta agronomy service representative based in Hanford, California. “Even a minor Phytophthora infestation can cost thousands of dollars a year.”

In Florida, citrus producers face added challenges from Diaprepes root weevils and Huanglongbing (HLB), or citrus greening, both of which damage tree roots.

“When you combine HLB, which can cause major root loss, with Diaprepes root weevil and Phytophthora, it’s a recipe for tree loss,” says Zach Langford, Syngenta sales representative based in Lake Wales, Florida.

Get Ahead of Phytophthora

Gilcrease and Langford say growers can get ahead of Phytophthora root rot with an integrated approach that includes proper irrigation management, resistant rootstocks, soil and root sampling, and fungicide treatments, if warranted.

A water mold, Phytophthora thrives under wet conditions, infecting tree roots and reducing their ability to pull water and nutrients from the soil.

Gilcrease says the pathogen was common when California orchards were flood irrigated. It waned as growers converted to pressurized irrigation systems and began planting on berms. But Phytophthora root rot resurged recently because drip and micro-sprinklers only wet the top foot or so of the soil surface, he says, noting that the key to preventing the disease is proper irrigation management. This includes not overwatering, especially in the spring before trees have fully leafed out and use less water. Growers also should avoid soil compaction and use practices that aid water infiltration.

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Even a minor Phytophthora infestation can cost thousands of dollars a year.

Garrett Gilcrease Agronomy Service Representative at Syngenta

As a soilborne pathogen, Phytophthora may infest nut and citrus tree roots years before above-ground symptoms appear. Tree health declines as the infection progresses, causing reduced fruit set, poor vegetative growth, early leaf drop and even tree death.

Take Advantage of Free Soil Programs

Langford and Gilcrease recommend scouting and soil sampling to catch issues early. Syngenta offers a Soil Pathogen Assessment (SPA) program to gauge Phytophthora propagules in California and Arizona orchards. In Florida, Syngenta provides the similar Citrus Soil Assay program.

Charlie McKee, a Florida-based citrus producer in Lake Wales and production manager with Donley & Myers Grove Caretaking, says he has used the Citrus Soil Assay program for 10 to 15 years. It provides information on his own groves and gives him statewide data about citrus tree health.

“It helps you see what’s going on with the root mass and propagules, so you can get the best timing for treatment,” says McKee. “It helps maximize your dollar as much as possible.”

In California and Arizona, Gilcrease says the SPA program began about 10 years ago for citrus growers. It has since expanded into tree nuts. Each year, Syngenta representatives in the two states collect about 1,200 samples for testing. They initially collected only soil samples, which were assayed for Phytophthora propagules ― a type of vegetative reproductive body. If a Phytophthora species wasn’t active at the time of sampling however, lab soil tests often didn’t detect them. Gilcrease says Syngenta representatives now collect soil as well as root samples. As part of pathogen assessment, the laboratory runs ELISA (Enzyme Linked Immunosorbent Assay) tests on roots to detect a protein unique to Phytophthora.

Langford says he also looks at the disease load metric, which is a treatment threshold based on the number of propagules found in the soil, when making treatment recommendations.

“This metric adds another layer of information to help make the best recommendation,” Langford says.

Develop a Resistance Management Program

When lab results warrant a fungicide treatment, Gilcrease and Langford say growers have a handful of options they can rotate for resistance management. Phosphorous acid is a Group 33 fungicide also widely used as a fertilizer. According to University of California – Riverside (UCR) studies, several Phytophthora species have developed resistance or reduced sensitivity as a result.

Ridomil Gold® SL fungicide, a Group 4 soil-applied fungicide from Syngenta, protects trees from soilborne oomycete diseases, including Phytophthora root rot. It is injected through micro-sprinkler or drip systems.

Ridomil Gold GR fungicide is a soil-incorporated granular formulation. The active ingredient in both Ridomil Gold GR and Ridomil Gold SL products ― mefenoxam ― builds up around roots stopping current and preventing future infections.

And Orondis® fungicide — a Group 49 soil-applied fungicide also from Syngenta — controls 11 Phytophthora species, according to UCR trials*. Injected through micro-sprinkler or drip systems and using oxathiapiprolin as its active ingredient, Orondis reduces soil propagules and moves systemically within the tree to improve tree vigor and health.

For more information about the Soil Pathogen Assessment or Citrus Soil Assay programs, contact your local Syngenta representative.

*https://rd.almondboard.com/files/2019%20%20PATH15%20AdaskavegBrowne-Disease%202.pdf

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  • Farmers need pesticides to fight a wide variety of pests.
  • Replacing atrazine with alternative herbicides would likely increase overall herbicide use.
  • Supporting registrations of pesticides that are safe, effective and economical helps maintain a strong U.S. food supply.

 

With few new active ingredients coming to market, industry leaders say maintaining registrations of existing pesticides, such as atrazine, is paramount.

“We need to have multiple tools available to our farmers,” says Bill Johnson, Ph.D., Purdue University extension weed specialist. “This is especially important in a year like this one where there are supply-chain issues. And when you think about the wide variety of pests and environmental conditions, we need to have multiple tools at our disposal as conditions dictate.”

In Arkansas, where at least one population of Palmer amaranth has resistance to six different herbicide modes of action, keeping atrazine is critical, says Tom Barber, Ph.D., University of Arkansas extension weed scientist.

“We’ve got a lot of five-way resistant populations in the state that are pretty widespread, and atrazine is still one of the only herbicides that is highly effective on those populations,” he says.

A Potentially Costly Loss

Because atrazine is applied mostly to corn, sorghum and sugar cane, its unique mode of action also can benefit weed control in rotational crops such as cotton and soybeans, where it isn’t used.

“It’s part of an integrated approach with crop rotation to help manage our Palmer amaranth,” Barber says. “Taking that away would mean more applications of multiple residual herbicides. We would probably have to make at least three applications just to overlap residuals. A lot of times that would mean two applications more than we’re making now.”

Johnson says the loss of atrazine would make weed control more costly and difficult for Indiana corn and sorghum producers without a guarantee of environmental benefits.

“I think we would really struggle with control of some weeds, like morning glory, waterhemp, giant ragweed, and newly germinated annual grasses that are common in cornfields,” he says. “We’d have to pick up those weeds with other herbicides that aren’t as effective and are more expensive. And we would be replacing one product with another product that may not put us at a better place environmentally.”

Having fewer weed-control options also could increase resistance selection pressure on the remaining herbicides, Johnson says. Already, Indiana has waterhemp populations resistant to four different modes of action, and testing is underway on suspected resistance to a fifth mode. A number of other weeds, including Palmer amaranth, marestail and giant ragweed, have confirmed resistance to multiple modes of action.

Arkansas’ Barber agrees, saying growers in his state would likely apply more pounds of herbicide active ingredient per acre if atrazine weren’t available. It also could confound weed control for growers of non-GMO corn hybrids.

Atrazine allows them to successfully grow a crop using conventional seed, “and they’re getting excellent yields,” he says. “It would possibly make growers move to a technology that has glufosinate.”

But that technology has its own set of challenges as Barber and fellow University of Arkansas weed scientists have identified three Palmer amaranth populations with tolerance to glufosinate.

Benefits to No-Till

In Indiana, about half the acres that receive atrazine are farmed conventionally and half are in some form of no-till or conservation tillage. In those systems, growers keep plant residue on the surface and minimize soil disturbance to significantly reduce soil erosion, Johnson says.

In recent years, no-till production also has been praised for helping store carbon in the soil — benefiting soil health and global warming. The loss of the herbicide could prompt some growers to return to tillage, potentially increasing soil carbon releases, says Mark White, Syngenta senior stewardship and regulatory portfolio manager.

Industry Support

Barber and Johnson were among eight Weed Science Society of America (WSSA) members who submitted letters to the EPA in 2021 supporting the current uses and rates of atrazine. Their comments were in response to EPA’s draft Endangered Species Act biological evaluations for triazine herbicides, which include atrazine, simazine and propazine.

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We’d have to pick up those weeds with other herbicides that aren’t as effective and are more expensive. And we would be replacing one product with another product that may not put us at a better place environmentally.

Bill Johnson, Ph.D. Purdue University

The evaluations are part of the agency’s pesticide registration review, conducted at least every 15 years on each crop protection product or group of products.

The review is just the latest of many that atrazine has undergone since it was initially registered in 1958. Over the years, EPA made several label changes — including designating it a restricted-use material — to better protect workers, the environment and nearby crops.

Caydee Savinelli, Ph.D., Syngenta stewardship team and pollinator lead, says the company continues to support pesticides like atrazine because they are highly effective. They also make sound business sense for both the farmer and the registrant.

As part of that effort, Syngenta updated its atrazine.com website in 2020 to better reflect key safety information, studies and the herbicide’s benefits.

“We know that the public is interested in the safety of their food,” says Chris Tutino, Syngenta senior communications manager. “So, we redesigned the site to help people understand and share the science behind atrazine’s safety that ultimately leads to higher crop production in an increasingly food-insecure world.”

In addition, Savinelli says, safeguarding domestic food production moved into the public spotlight during the pandemic as imports were disrupted — creating supply-chain issues.

“I think it’s important for us to support the American farmer,” she says. “Farmers are business people. They have to make a profit, and the margins on commodity crops are not that high.”

From a weed-control standpoint, Mark White, Syngenta senior stewardship and regulatory portfolio manager, says atrazine continues to perform after more than 60 years of commercial use.

In fact, researchers have conducted more than 7,000 studies on atrazine over the years, making it likely the most-researched pesticide in history.

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“The overwhelming scientific consensus points to the safety of atrazine both to human health and ecological health,” White says.

Savinelli and White say Syngenta remains a strong supporter of proactive and regulatory stewardship of its products, including the triazines.

Clarify Public Value

Genevieve O’Sullivan, vice president of communications and marketing for Crop Life America, says one challenge with communicating these types of issues to the public is the frequent use of industry terms, such as no-till or cover crops.

Instead, O’Sullivan likes to demystify the terms. Take sustainability, for example. She defines it as “simply using technology to produce more using less.”

To start the conversation, O’Sullivan says industry representatives need to first listen to the public’s concerns. These approaches are based on consumer research Crop Life conducted during the past three years.

“We actually went out and listened,” she says. “What questions do you have? What are your concerns? That’s how we started the real conversation.”

In addition, the industry needs to take an informational approach, O’Sullivan says, instead of a persuasive one.

“Don’t try to convince anybody of anything,” she says. “It’s important to create shared values.”

Update

On June 30, 2022, EPA announced that it was adopting a new aquatic ecosystem concentration equivalent level of concern (LOC) for atrazine at 3.4 parts per billion (ppb), down from 15 ppb. The scientific and regulatory record completely and categorically refutes this new LOC, says Tutino. For additional information and updates, please visit atrazine.com.

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Since early 2021, there have been rumbles of enthusiasm and frustration about soybean oil prices right beneath the surface. Soybean growers and processors have been thrilled about record-high prices, but end-users of soybean oil, especially bakers, have had a significant case of sticker shock. What, exactly, has been going on?

Soybean Oil Prices Surge Higher

Soybeans are a bit unique in that they are a component crop. This means the economic value of growing a bushel of soybeans is derived from the value of the crop’s two primary outputs from the crushing process: meal and oil. Historically, Missouri soybean oil prices hit a high of $0.55 per pound between 2011 and 2012 (Figure 1). After those highs, prices fell to around $0.30 per pound for several years. In 2021, however, prices surpassed historic records. They abruptly jumped briefly above $0.80 per pound and spent most of the year above $0.60. For the entire year, the average weekly price was $0.65 per pound. In other words, the average price for all of 2021 was higher than any single weekly observation since 2010.

For the first five months of 2022, soybean oil prices have been even higher, averaging $0.77 per pound and twice exceeding $0.90 per pound. All else the same, higher soybean oil prices make it attractive for soybean processors to buy and crush soybeans. However, the value of soybean meal and the price of soybeans is also important.

Since 2021, soybean oil has accounted for roughly half of the total value of crushing a bushel of soybeans. This is significant as soybean oil typically accounts for just 25% to 35% of the total economic value. The implication is that the decision to crush soybean — or to build a new crush plant — is heavily influenced by high soybean oil prices.

A Trend Years in the Making

The USDA provides usage data for soybean oil, including the three primary uses (Figure 2). The largest category of soybean oil usage is the “food, feed, and other industrial uses” category. Over the last 12 years, this category has consistently accounted for 14 billion pounds of soybean oil usage. The smallest category of usage is exports. For 2022-2023, soybean oil exports are estimated at 1.4 billion pounds — the lowest levels in more than a decade.

Early in the 2010s, biofuel accounted for roughly 5 billion pounds of soybean oil usage. Since 2014-2015, however, biofuel usage has more than doubled to 12 billion pounds in 2022-2023. More specifically, over the last eight years, usage of biofuel increased at an average annual rate of 10%. For context, the Rule of 72 reminds us that a 10% growth rate results in a doubling every seven years. Overall, this is a pretty aggressive growth rate, especially considering it’s the only growth category within soybean oil.

Looking ahead, one has to wonder if, or when, biofuel might surpass the food, feed, and other industrial uses category.

Wrapping it Up

While the debate around high soybean oil prices came to the forefront in 2021, the increased biofuel usage trend has been underway for several years. In many ways, the current situation feels a lot like the “food versus fuel” debate that corn and ethanol faced around 2010. This time around, however, a better descriptor might be “doughnuts versus diesel.”

Beyond the data, one doesn’t have to go very far to hear about plans to construct a new soybean crush facility. With soybean oil prices maintaining record-high levels, the situation will undoubtedly incentivize the expansion of production. At the farm level, this demand will likely translate into even more soybean acres. All that said, the price of soybeans and the value of soybean meal will also affect the feasibility of widespread sector expansion. At some point, the industry might be searching for answers on how to utilize all the soybean meal created.

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Widmar and Gloy are the co-founders of Ag Economic Insights (AEI.ag). Founded in 2014, AEI.ag helps improve decision making for producers, lenders, and agribusiness through: the free Weekly Insights blog, the award-winning AEI.ag Presents podcast- featuring Escaping 1980 and Corn Saves America, and the AEI Premium platform, which includes the Ag Forecast Network decision tool. Visit AEI.ag or email Widmar(david@aei.ag) to learn more. Stay curious.

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Approximately every five years, most recently in 2018, Congress passes a package of program authorizations and funding commonly known as the farm bill. The legislation has immense consequences for the agricultural industry as it covers everything from crop insurance programs to farmer training to sustainability initiatives.

The latest version, the Agriculture Improvement Act of 2018 (2018 Farm Bill), expires on Sept. 30, 2023. The Act builds upon previous farm bills — but with a few changes from the 2014 legislation. Notably, the $867 billion package expanded programs related to trade, research and extension, specialty crops and organic agriculture, among others.

As we enter the final years of the legislation, we break down the major areas funded by the 2018 Farm Bill.

76% is dedicated to nutrition. The majority of this goes toward the Supplemental Nutrition Assistance Program (SNAP), but the 2018 bill also expanded funding for grants that promote healthy eating and reduce food waste.

9% funds crop insurance through the Federal Crop Insurance Program, which works with the private sector to offer insurance products that primarily compensate producers from losses in yield or revenue.

7% pays for conservation initiatives, including programs that assist producers/landowners improving water/air quality, soil health, wildlife habits and more.

7% is allotted to commodity programs — the two largest of which are Price Loss Coverage and Agriculture Risk Coverage. These initiatives provide price support through market and/or yield declines of certain commodities, which aids in business planning and accessing credit.

1% goes to everything else. Major areas covered include trade, research and extension, rural development, horticulture, and more.

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Agriculture is dominated by trends with small annual changes that play out over several years or decades. There are many examples of this, from yields to producer consolidation, but the trend that’s perhaps easiest to overlook is global acreage.

The adjacent graph shows global harvested acres since 1960. In 2021, world acres were 2.4 billion acres, up 63 million acres since 2016. For context, the U.S. harvested 85.4 million acres of corn in 2021. While 63 million is a small increase compared to the 2.4 billion total, it’s about three-quarters of the area of the U.S. corn crop.

This isn’t the first time global acreage has expanded. In the 1970s, acreage increased by 269 million acres. North America was a significant source of that expansion, contributing 74 million — or 28% — of the total increase. Global acreage again expanded in the 2000s and early 2010s due to demand from ethanol production and soybean trade. That expansion totaled 280 million acres, with South America and sub-Saharan Africa leading the increase at 73 million additional acres each.

Another important takeaway from Figure 1 is that those acres largely remain in production once the expansion occurs. In other words, sizeable global acreage contractions don’t happen, even when ending stocks are high and commodity prices are low. Even throughout the Farm Financial Crisis of the 1980s — when the U.S. government was trying to limit the pains of oversupply through programs such as Payment-in-Kind and Conservation Reserve Program — the overall global acreage trend was sideways.

Oilseeds in the Driver’s Seat

When the global acreage factory expands, it doesn’t do so uniformly across all crops. Of the 63 million acres added in recent years, a staggering 73% of those new acres have gone to oilseeds. While soybeans account for most oilseed gains (+25 million acres), all oilseeds — including peanuts, rapeseed and sunflowers — have increased.

Corn acreage has also trended higher but only gained 15 million additional acres. Across the other primary crops, cotton, rice and wheat posted small expansions, but acres of millet, oats, rye and sorghum were unchanged or lower.

Where the Increases Occurred

In addition to being concentrated by crops, oilseed acreage gains have also occurred in just a few regions and countries. For example, Brazil alone accounted for 44% of the increase between 2016 and 2021. Outside of South America, South Asia — mainly India— and the former Soviet Union region also have been a significant source of expansion.

Russian acreage increased by 8 million since 2016, and Ukraine added another 4.4 million. While many have recently noted these two countries are a significant source of global corn and wheat exports, they’ve also been a source of acreage expansions. The region’s largest crop is wheat — which increased by 4.2 million acres since 2016 — but oilseeds have again dominated the expansion, gaining 11 million additional acres. The crop with the most significant acreage gains within the region was sunflowers, up 6.6 million acres.

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Wrapping it Up

There are several reasons these data can be challenging to follow. First, the year-to-year changes, or variations, can be noisy due to weather-related issues. It often takes several years to establish a trend. Second, world acreage has increased by nearly 800 million acres since 1960, or a 47% increase, but the trend has played out over six decades. On average, this is equal to a lackluster 0.6% annual rate of increase. Third, the global factory expansion cycles between years of slow expansion and stretches of very little change. Taken together, one could monitor these data for several years before observing any significant changes. However, when financial conditions are strong, we can expect global acreage to increase.

Looking ahead, keep in mind the acreage expansion has been underway for at least two years. For example, South America and the former Soviet Union regions began to increase acreage during the trade war. It’s unclear how long the current expansion will last, but a significant element of the “cure for high prices” is already underway. The expansion will eventually begin to ease the current supply concerns.

Widmar and Gloy are the co-founders of Ag Economic Insights (AEI.ag). Founded in 2014, AEI.ag helps improve decision making for producers, lenders, and agribusiness through: the free Weekly Insights blog, the award-winning AEI.ag Presents podcast- featuring Escaping 1980 and Corn Saves America, and the AEI Premium platform, which includes the Ag Forecast Network decision tool. Visit AEI.ag or email Widmar(david@aei.ag) to learn more. Stay curious