MABA Ag Club and Member Forum on Supply Chain Issues

On Wednesday, November 10, 2021, Michigan Agri-Business Association members are invited to join us at the Radisson Hotel in Lansing for discussion of supply chain issues looking ahead to 2022 and beyond. This event is free, open to MABA members, and will begin at 9:00 AM, immediately following that morning’s Lansing Ag Club. Following is more information and the agenda.

RSVP here for the Lansing Ag Club Breakfast and this special Supply Chain Forum.

MABA Forum on Supply Chain Issues

Wednesday, November 10, 2021

7:00-8:45 AM MABA Ag Club Breakfast

  • Sponsored by Potato Growers of Michigan, Inc.

8:45 – 9:00 AM Break

9:00 – 9:05 AM Program Introduction, Anti-Trust Policy

  • Chuck Lippstreu, President, MABA

9:05 – 9:45 AM Fertilizer Market Drivers and Issues to Consider

  • Josh Linville, Fertilizer Market Analyst, StoneX

9:45 – 10:30 AM Chemistry Supply Chain Considerations

  • Cynthia Stanton, Head of Supply Chain Operations for North America, BASF

10:30 – 11:00 AM   Trucks and Labor – Michigan and U.S. Issues

  • Brian Hitchcock, President, Michigan Trucking Assn.

11:00 – 11:30 AM   Wrap-Up: Questions, Industry Priorities, Discussion
                                             

Member News and Resources on Supply Chain Issues

Across Michigan and the nation, the agriculture industry faces challenges from uncertain global supply chains and difficulty in future planning. This issue continues to grow more acute virtually by the day as farmers and retailers try to look ahead to spring and summer 2022, and beyond. MABA is launching this page as a resource for our members to access key news stories and analysis regarding different elements of this situation. If you want to see something added, email anyone of the MABA staff.

News Stories (Sorted by Date)

  • October 19 – China’s Curbs on Fertilizer Exports to Worsen Global Price Shock (Bloomberg 10/19)

  • October 19 – Nitrogen prices erupt due to ‘perfect storm’ of global forces (Capital Press 10/19)

  • October 15 – Fertilizer Crisis Piles More Pressure on World’s Future Food Supply (Bloomberg 10/15)

  • October 12 – The Quarterly: Adapting to Persistent Supply Disruptions (Cobank 10/12)

  • October 12 – Wholesale Fertilizer Prices Expected to Continue Rising on Lower Production, Higher International Demand (DTN)

  • October 11 – Fertilizer Fever: Soaring Costs Could Impact Farmers and Food Prices: FarmDoc Daily provides an excellent rundown of current issues in fertilizer with this post. Farmdoc Daily 10/11

  • October 10 – India Said to Ask Phosphate Fertilizer Firms to Absorb High Cost: “India won’t increase subsidies on phosphorus-based fertilizers and has directed producers to refrain from raising prices, according to people with knowledge of the matter, threatening the firms’ margins as global costs of the raw material surge.” Bloomberg, Oct. 10

  • October 9 – Fertilizer prices soaring as natural-gas rally adds to ‘perfect storm’. “Fertilizer prices were already running red hot this year before a European energy crisis fanned the flames, potentially adding to a pinch on farmers in the U.S. and around the world and stoking worries about food inflation.” Marketwatch, Oct. 9
  • October 5 – As Many As Half A Million Shipping Containers Could Be Waiting Off Ports Of LA, Long Beach: “Officials say there could be as many as half a million shipping containers on cargo ships off the ports of LA and Long Beach, waiting to be offloaded. Frustrated truck drivers say the port needs to speed up wait times and have more docks ready to offload products, to keep up with demands. The ports recently broke several records for the number of ships they had at shore, as well as for the number of ships waiting to dock.” CBS LA 10/5

  • September 30 – China Phosphate Fertilizer Export Freeze Adds to Global Supply Challenges: “The move by China earlier this week to ban phosphate exports until at least June of next year puts even more pressure on global phosphate trade. The U.S. doesn’t buy much phosphate from China, but the country represents about 30% of world trade. Now China’s traditional buyers will be looking elsewhere.” DTN, Sept. 30

2021 Stewardship Newsletters Provide Water Quality, Environmental Resources

Sept. 29, 2021 Across Michigan, farmers and agribusinesses are working to safeguard our water, soil and air. Keeping up to speed on best practices and new technology is central to meeting this goal. Throughout 2021, MABA has delivered information on water quality and stewardship considerations to help those involved in Michigan agriculture maintain and enhance environmental protection.

These one-page newsletter stories are available below and can be shared in full by anyone with interest in agricultural stewardship:

  • Drainage water management (DWM) can benefit new or existing tile drain systems, help with water management in-field. Michigan’s soils, hydrology, and topography make tile drain systems an essential element of agricultural systems in many areas of Michigan. Swings in precipitation patterns make in-field water management more difficult. Drainage water management (DWM) systems allow for the adjustment of the water table elevation in fields, providing another tool to manage water. Read more.
  • Planning for the 2022 Crop Starts with Fall Fertilizer Management. Fall is an excellent time to test soils for nutrient levels, both for fertilizer applications that might be made yet this fall, as well as complete nutrient management plans for the following year’s crop. As growers begin to prepare for the 2022 crop year, consulting with a crop adviser to implement purposeful fertilizer management plans is important! Read more.
  • Consider Weather Forecasts When Planning Fertilizer Applications. Heavy rainfall events are a prime contributor to agricultural nutrient losses, with water transporting nutrients to surface water bodies. Recently applied mineral fertilizers on the soil surface are at particular risk for transport as moving water can carry fertilizer particles, as well as quickly convert nutrients into dissolved forms. Commercial fertilizers are designed to be highly water soluble for optimal agronomic performance, but that also means they can easily dissolve into water and carried from fields. Read more.
  • Harvested wheat fields are an opportunity to manage nutrients and implement conservation. Harvested wheat fields are prime candidates for intensive soil sampling, utilizing grid or zone sampling schemes to identify nutrient variability in the field. Managing fertility on an intensive basis is the key to maximizing the economic and environmental benefits of today’s technology. Read more.
  • Container recycling is a simple, easy, important way to protect Michigan’s environment. Michigan’s Pesticide Container Recycling Program provides cost-free recycling opportunities for pesticide users to properly, and safely, dispose of containers. The program not only ensures plastics are recycled or converted to other beneficial uses instead of taking up landfill space, but also decreases the likelihood that unclean or improperly stored containers could leach pesticide residue into the environment. Read more.
  • Soil Sampling – A Critical First Step to Maximize Profit Potential, Environmental Stewardship. For many across Michigan, soil sampling has become “second nature,” with farmers and their ag retail advisors recognizing the importance of having a solid view of a field’s nutrient profile to inform decision making. With the growing season upon us, it is a good time to think about the latest soil testing practices and how they are used on fields, especially in terms of determining spring phosphorus and potassium application rates. Read more.

Drainage water management (DWM) can benefit new or existing tile drain systems, help with water management in-field

• Michigan’s soils, hydrology, and topography make tile drain systems an essential element of agricultural systems in many areas of Michigan.

• Swings in precipitation patterns make in-field water management more difficult.

• Drainage water management (DWM) systems allow for the adjustment of the water table elevation in fields.

Michigan’s soils, hydrology, and topography make tile drain systems an essential element of agricultural systems in many areas of Michigan, and the precipitation pattern seen in 2021 in our state spotlights opportunities to use this technology as a risk mitigation tool. This year, and in several recent years, periods of substantial drought are broken up by major rainfall events, delivering several inches of rain in a short period of time. This complicates management of water in fields, and can exacerbate dissolved P and N losses through tile drains.

Drainage water management (DWM) systems allow for the adjustment of the water table elevation in fields, allowing for a naturally high-water table during non-cropping times of the year. This allows for greater water infiltration to groundwater while keeping unnecessary water out of drainage systems. During the growing season, the water table can be lowered to the typical functional level of the drain tile system, providing all the same benefits of tile drainage that growers expect.

DWM systems also allow for raising the water table during drought events, retaining moisture in the soil profile for crop use. Unlike some other nutrient loss reduction practices, DWM systems don’t take farmland out of production or require changing in-field agronomic management. And they require minimal time to adjust water levels, taking just minutes to add or remove boards in the control structure.

Cost-share assistance programs are available in many counties. Growers are encouraged to contact their local conservation district offices to learn more about improving their tile drainage systems with drainage water management technology. As a conservation practice, DWM retains flexibility of in-field agronomic management, does not remove land from production, offers immediate yield increase potential, and has assessable cost-share opportunities – a unique combination and something to be considered in planning for 2022 and beyond.

This newsletter is brought to you by the Michigan Agri-Business Association and the Michigan Agriculture Environmental Assurance Program. For more information, visit miagbiz.org.