Hundreds Of Farmers Go Bankrupt Despite Record Levels Of Federal Aid
More farmers are filing for bankruptcy despite receiving record-high levels of federal aid throughout the pandemic. About 580 farmers have filed for chapter 12 bankruptcy protection in the yearlong period ending June 30th, 8% more than the previous year. Bankruptcies slowed down for farmers this April after government officials approved $16 billion in direct support. By the end of the year, a record-high $33 billion in support is expected to be granted to struggling farmers, according to the University of Missouri’s Food and Agricultural Policy Research Institute. “Agricultural markets have been horrible,” said Wisconsin based attorney Paul Swanson, “and the pandemic exacerbated it, big time.” Swanson currently has 40 open farm-bankruptcy cases, about one-third more than last year. Hog farmers lost almost $5 billion in actual and potential profits alone in 2020, according to the National Pork Producers Council.
Vertical Farms Expand Operations Worldwide
Farming and supply chain challenges brought on by the pandemic have forced growers to invest more heavily in vertical farms. These indoor growing facilities have been popping up for decades but have recently become more vital to the world’s food supply, particularly in large cities where 60% of the global population lives. In vertical indoor farms, efficient hydroponic and aeroponic methods controlled by artificial intelligence provide optimal nutrients and LED lighting tailored to each crop. With their high-tech equipment, vertical farms can produce massive amounts of food such as potatoes, radishes, carrots, celery, green beans, tomatoes, peppers, blueberries, blackberries, and raspberries, especially in cities with “food deserts” whose residents lack access to farm fresh produce.
One of the largest vertical farm companies, AeroFarms of Newark, New Jersey, began in a defunct paintball arena in 2004. AeroFarms has since expanded operations to include 70,000 square feet in Newark, 150,000 square feet in Danville, Virginia, and 90,000 square feet in Abu Dhabi, including lucrative contracts with local restaurants, supermarkets, and school lunch programs. Infarm, founded in Israel in 2013 and now based in Berlin, employs more than 400 people in 40 countries and sells its farm produce directly to European supermarket chains and some U.S. chains such as Kroger. Experts predict that vertical farms will expand in the U.S. over the next year, as more employers allow employees to work from home and office buildings become vacant. According to market research firm Gartner, Inc., 82% of companies said that current work-at-home arrangements will become permanent. Office vacancy is predicted to expand by nearly 20% in 82 of the country’s largest urban centers by the end of 2020, and then continue rising the following year, according to Moody’s Analytics Real Estate Information Services Network, a potential boon to the vertical farm industry.
Ocean Agriculture Grows Beyond Fish and Seaweed
As of now, 11% of the world’s land area is used for crop production, but land only accounts for 3% of the globe’s surface area. With the expansion of ocean agriculture, another 70% of the world’s surface is being used to grow an increasing number of crops. The seaweed industry has seen tremendous growth with expanded use in food products as well as food supplements, fertilizers, medications, and eco-friendly packaging as an alternative to plastics. Farmers off the coast of Florida have also expanded marine crops such as Salicornia, a.k.a sea beans or sea asparagus, noted for their beneficial trace minerals from the seawater. A recent trial in Florida found that 1 kilogram of sea beans can grow in just 10 weeks. Ocean Reef Group, an Italian ocean diving company, has undertaken more extensive ocean agriculture. Since 2012, its Nemo Garden Project has been growing strawberries, orchids, basil, and lettuce in contained pods on the ocean floor. Another startup company, Canada’s Agrisea, is now growing rice in the ocean. Sea-grown rice holds the promise of supplying much-needed calories to countries that depend on the crop while solving water shortage issues that plague rice crops grown on land.
The Promise Of Subterranean Farming
Sangdo Station in Seoul Korea is home to an unusual, eye-catching installation: an underground farm. The subterranean hydroponic concept, called Metro Farm, is a walled-off vertical organic farm whose water, LED light, and other metrics are automated by technology. Metro Farm harvests about 66 pounds of vegetables a day that feed as many as 1,000 people on a daily basis at a nearby cafe, reducing the carbon footprint, protecting crops that are increasingly affected by climate change and pollution, and using a farming method that is 40 times more efficient than traditional farming. Farm8 is the technology firm behind the venture, which plans to open three more farms in Seoul metro stations in 2020. If successful, the concept can be used in areas whose climates are not hospitable to traditional growing methods.
USDA To Offer $15 Million To Socially Disadvantaged And Veteran Farmer Groups
The U.S. Department of Agriculture is making approximately $15 million in funding available to socially disadvantaged and veteran farmers and ranchers. The 1990 Farm Bill defines these farmers and ranchers as “subjected to racial or ethnic prejudice because of their identity as members of a group without regard to their individual qualities.” The groups include African-Americans, American Indians, Alaskan Natives, Hispanics, Asians, and Pacific Islanders. Nonprofits, community-based organizations, and higher education initiatives that serve these populations are all eligible for funds.
Funding will come the USDA’s Outreach and Assistance for Socially Disadvantaged Farmers and Ranchers and Veteran Farmers and Ranchers Program (a.k.a. the 2501 Program) and will increase through fiscal year 2023. The assistance may come in the form of initiatives such as farmer training and education, demonstrations, and conferences on farming and agri-business. Financial awards can be up to $450,000 per applicant. The deadline to apply is August 26, 2020.
Farm System Reform Act Aims To Help Small Regional Farmers
In 1980, 34% of pigs in the U.S. were slaughtered by four massive meatpacking companies. By 2015, that number rose to 66%. Similar consolidation has taken place across the agricultural industry for decades, resulting in monopolies that exert extraordinary power over how farmers must raise their products and how much money farmers are able to make. Farm incomes have not changed for the past 30 years when adjusted for inflation, according to USDA data. In 2018, most U.S. farms lost money, and the median farm income was negative $1,840. To help small regional farmers gain more control over their own production systems and get paid fairly, Senator Corey Booker introduced the Farm System Reform Act late last year. The act, among other things, creates a $100 billion fund to help farmers currently running concentrated animal feeding operations (CAFOs) transition to less-intensive operations. The act also re-directs financial liabilities from independent farmers to the agricultural conglomerates that contract with them.
Global Meat Consumption Predicted To Decline Until After 2025
Data from the United Nations predicts that worldwide per-capita meat consumption will drop by almost 3% in 2020 to its lowest levels since 2011. In the U.S., researchers at the University of Missouri’s Food & Agricultural Policy Research Institute, predict that this year’s per-capita meat consumption will decline for the first time since 2014. U.S. meat consumption is not expected to return to pre-pandemic levels until 2025 at the soonest. In the European Union, pork consumption is expected to fall to a seven-year low in 2020, with beef and chicken also dipping down. In China, which accounts for 40% of the world’s pork consumption, consumers are expected to eat 35% less pork this year, according to Beijing consulting firm Bric Agriculture Group.
One reason for the decline is the economic fallout from the coronavirus, particularly the recession in the United States, as consumers tighten their wallets at the meat counter. Restaurant closures and limited dining out options have also suppressed demand and wholesale orders of meat. Before the pandemic, about 50% of U.S. meat consumption took place outside the home, according to Boston Consulting Group. While cooking at home, American consumers don’t appear to be allocating quite as much money for meat. Experts also cite the rise in plant-based eating and meatless options in grocery stores and restaurants as other factors.
Bees Are Rebounding, A Good Sign For Agriculture, Study Says
For decades, scientists have witnessed shrinking populations of pollinators, which are critical to agriculture and the world’s food supply. Honeybees are the most easily tracked, and fortunately, only 22.2% of bee colonies died from October 1 to March 31, according to the Bee Informed Partnership’s annual survey. The average loss has been higher at 28.6%, and the new figure marks the second smallest winter loss in the survey’s 14-year history. To compile the survey, scientists interview 3,377 commercial and backyard beekeepers across the United States in both winter and summer. Low winter losses are considered the most important marker of colony health. In the previous winter of 2018-2019, a record 37.7% of bee colonies died. That significant loss also followed beekeepers through the summer of 2019 with a 32% death rate during that season. While the new numbers are encouraging, University of Georgia entomologist Keith Delaplane says it is possible that beekeepers are relocating their colonies indoors during the winter, improving their chances of survival.
Dairy Farmers Worldwide Suffer Massive Economic Downtown
The global dairy industry is valued at about $700 billion, and the sector accounts for about 14% of agricultural trade, according to the United Nations. But it appears that consumers around the world eat more cheese and butter when dining out than at home. As restaurants have closed, dairy farmers worldwide have been forced to dump millions of gallons of unused milk and euthanize older cows due to low demand for milk products. According to the National Milk Producers Federation, U.S. herds will likely contract to record lows this year. To help the struggling dairy industry, the U.S. is issuing $2.9 billion in aid, while the European Union has pledged 30 million euros ($34 million) to aid its dairy industry, and Australia has earmarked funds as well.
Government stimulus money has helped dairy farmers survive the pandemic thus far, yet dairy industry analysts predict a long road to economic recovery. Consumer consumption patterns have been changing for decades, and overall milk consumption is on the decline in developed nations. “How fresh fluid milk becomes a staple again remains to be seen,” said Tony Sarsam, chief executive officer of the bankrupt Borden Dairy Co. “It’s not going to be solved with a government program. Consumers want new ideas, indulgent foods, healthy choices and convenience, and the dairy industry has a lot of work to do there.”
Paris Rooftop To Become Europe’s Largest Urban Farm
A 4,000 square meter (43,055 square foot) farm on the rooftop of the Paris Exhibition Centre is set to become the largest urban farm in Europe. Soon after local authorities eased COVID-19 restrictions, developers began executing plans to expand the farm over the next two years to 14,000 square meters (150,695 square feet). The farm belongs to Agripolis, a French farming company with a focus on transforming unused urban areas into organic farming spaces. In the French capital, the Agripolis rooftop farm will feature rental space for citizens to grow their own produce as well as an on-site restaurant where visitors can sample various local farm-grown products and dishes made with them. Agripolis aims to produce 1,000 kilograms (2,205 pounds) of fruit and vegetables every day at the height of the growing season. “The goal is to locally supply healthy, pesticide-free products to local businesses, company restaurants, and to farming associations in a nearby area,” Agripolis president Pascal Hardy said.
