Addressing Industry Issues: Panel discusses current challenges faced by the ag industry during annual forum
“Meeting Tomorrow’s Challenges, Today” was the theme of the U.S. Department of Agriculture’s 101st Annual Agricultural Outlook Forum, held Feb. 27-28 at the Crystal Gateway Marriott in Arlington, Va., where industry stakeholders from across the U.S. and world- wide gathered to discuss all things agriculture.
In order to expand on the conference theme, the plenary session held on the first morning of the event included a panel of professionals who addressed current challenges faced by those in agriculture today.
The panel was moderated by Oklahoma State Uni- versity Vice President and Dean of Agricultural Pro- grams Jayson Lusk and featured South Carolina Com- missioner of Agriculture Hugh Weathers, Farm Foun- dation President Shari Rogge-Fidler and National Milk Producers Federation (NMPF) Executive Vice President of Policy Development and Strategies Jaime Castaneda.
Short-term challenges
When asked about their take on the industry’s short-term challenges – things producers should focus on over the next six to 12 months – the experts agreed industry uncertainty is at the top of the list.
“I think something we can all agree on is the uncertainty we’re seeing right now, and there are a whole host of interpretations on this,” Weathers stated.
He noted there is uncertainty as a new administration transitions into office, uncertainty regarding low margins resulting from softening markets and high input costs, uncertainty surrounding what will be included in the next farm bill and when it will come about, uncertainty in the regulatory environment and, overall, uncertainty for the global positioning of agriculture.
Rogge-Fidler agreed, noting she believes policy and economics are core uncertainties at the moment.
“When I reached out to farmers to ask them how these uncertainties are actually affecting them, I noticed they are undertaking some very different strategies,” she shared. “Some of them are going to put new investments and expenses on hold, while others have started leaning in and watching for new opportunities to pop up to expand their diversification strategies in an effort to mitigate the uncertainty.”
The panel agrees labor is also a short-term challenge.
Rogge-Fidler mentioned President Donald J. Trump’s recent actions regarding immigration have caused anxiety among producers, especially specialty crop farmers, and noted many are calling for reform of the H-2A Visa Program.
“I totally agree with the notion of labor. We need to address labor issues,” added Castaneda. “Farms don’t have the labor force they need, and let’s face it, a lot of folks in the U.S. don’t want to do the work to milk a cow. It isn’t about what producers pay – they pay well, they have benefits, they provide housing and they offer insurance. It’s just a fact of the matter – Americans don’t want to do that type of hard work.”
Another short-term challenge the panel brought up was risk management, which broadly covers crop insurance, market risks and weather volatility, and to round out the discussion, Castaneda brought up the issue of American ag constantly selling itself short.
“The U.S. needs to think of itself as a top producer of great-quality products,” he stated. “It annoys me people think they need to go to fancy food stores and travel oversees to buy European products, just for the sake of buying European products. What they don’t know is our cheese is actually the best in the world. Parmesan cheese from Wisconsin beat every single Parmigiano Reggiano from Italy in an international taste contest.”
“And, we can say the same about so many of our different products,” he added. “I think a challenge in the future is we have to think about ourselves in a better light.”
Long-term issues
Lusk then asked the panel to look further into the future – five to 10 years – and share what long-term industry challenges they see in the cards.
Again, the panel agreed on one overarching issue – cultivating the next generation and ensuring agriculture sustainability.
“We need to make sure the next generation wants to stay on the operation because we are seeing more ag kids go work somewhere else,” said Castaneda.
Weathers reiterated this sentiment, stating, “When we look at some statistics, the average school teacher in the U.S. is 42 years old, the average lawyer is 46, the average doctor is 48 and when we get to production farmers, we are bumping the 60-year mark. Where is our next generation coming from?”
Castaneda also cited the significant decline in ag operations and land in farms today.
“When I started with NMPF about 25 years ago, we had 60,000 dairy farms. Today, we probably only have about 25,000, and this number is going to keep declining,” he pointed out.
On this note, Rogge-Fidler said some of the long-term challenges she sees in the industry include land and water use – both urban and rural.
“In urban areas, pressure on farmland is a conversation we continue to have across the whole U.S., and in rural communities, we see data centers springing up – solar, energy, wind, etc. – and farmers are having to make those trade-offs of what to do with their land. I just wonder, will we have enough farmland for the future?”
She continued, “Water use is a persistent problem around the globe, as well, and certainly one in the U.S. we to need to figure out together.”
Additionally, Rogge-Fidler brought up the issue of shifting consumer demand, especially in an era where many consumers have turned to Ozempic or other similar appetite suppressants and are, in general, consuming less.
“What are the broad implications for the food and agricultural system as patterns completely shift in terms of consumer demand for foods?” she asked. “Figuring this out, especially what the impact on our farming and ranching sectors will be, is key.”
On the other hand, she noted many futurists talk about reaching “peak global population” and wonders how the ag industry is poised to feed a growing world.
Lusk chimed in to note his concern for long-term challenges in agriculture is the decline in investments made for agricultural research in the U.S.
“Frankly, some of our competitors on the world stage, like China, are spending much more than we are on ag research today,” he said. “We probably won’t see the effects until 10 to 15 years from now when we haven’t developed new crop varieties or practices to help us stay productive.”
Industry optimism
In an effort to avoid sounding too pessimistic, Lusk asked the panel to touch on some “bright spots” that make them excited for the future of ag.
Rogge-Fidler noted, in her area, she has heard some positivity regarding short-term relief on energy costs and, personally, she is excited about the future of innovation in the industry.
Castaneda commented on the shift in popularity to animal-based diets, with dairy consumption – especially cheese – consistently increasing in the U.S. and a growing interest in expanding protein production.
Weathers agreed, noting consumers have become more interested in nutrient-dense diets and are spending more time shopping the outer aisles of the grocery store for fruits and vegetables, dairy and meat.
Castaneda noted one bright spot many take for granted is the luxury of food security, as American ag producers can be counted on to feed the world.
“There are many people in this country with anti-animal agriculture views, but they live in a wealthy country and they don’t know what hunger is,” he said. “I grew up in a developing country where people would do anything for meat, dairy or eggs – anything to give them some nutrition, which is a luxury in a developed country.”
He added, “The most important thing about agriculture is that it feeds the world.”
Snowballing off of this, Weathers said, “Despite everything anti-ag groups have attempted to try to prevent the American people and others across the world from consuming animal protein, the evidence is in the popularity of steakhouses and the price of beef on the menus, as well as in the ever-increasing per capita consumption of cheese, yogurt and butter.”
Hannah Bugas is the managing editor of the Wyoming Livestock Roundup. Send comments on this article to roundup@wylr.net.
