💸 $68 trillion of wealth transfer and the top ten global crops

Weekly Edition #12

Good Morning. Welcome to the Gravel Road - your weekly agri-news infotainment. The newsletter that’s here for you like your closest friend. We’ll even come help you shovel snow - our earliest availability is June 12.

Here’s what we have this week:

• 👨‍👩‍👧‍👦 Leave a Lasting Legacy

• 🥩 Meat News

• 🤖 Farm Bots

• 🌱 Top Ten Crops

WISDOM

The Great Wealth Transfer is upon us. Over the next two decades, Baby Boomers are set to pass on $68 trillion of wealth.

A large percentage of that will be in agricultural assets like land, facilities, livestock, and equipment. After all, the average age of US farmers is approaching 60 years old.

So how do you prepare for the next generation taking over your labor of love?

You create a farm succession plan. This involves more than a simple estate plan, as it encompasses the transition of an ongoing, operating business.

Resources abound for farm succession planning. There’s seminars, one-on-one consulting, webinars, books, essays, and more. As you research, learn more, and begin creating your plan, here are some frequent terms you will encounter:

• Last will and testament: A legal document that outlines how a person's assets and property will be distributed after their death.

• Trust: A legal arrangement in which property is held by one party (the trustee) for the benefit of another party (the beneficiary).

• Power of attorney: A legal document that authorizes one person to act on behalf of another person in legal and financial matters.

• Probate: The legal process of administering an estate after a person's death, which includes distributing assets and paying debts.

• Estate tax: A tax on the transfer of property and assets after a person's death.

• Gift tax: A tax on gifts of property or assets made during a person's lifetime.

• Capital gains tax: A tax on the profit made from the sale of an asset, such as land or equipment.

• Partnership agreement: A legal agreement between two or more parties who agree to operate a business together.

• Operating agreement: A legal agreement that outlines how a business will be run and managed.

• Buy-sell agreement: A legal agreement that outlines how ownership of a business will be transferred in the event of death, disability, or retirement of one of the owners.

Farm succession planning is a vital process that can help to ensure the long-term success and sustainability of a farm. By taking the time to plan and prepare for the future, individuals can help to ensure a smooth and successful transition to the next generation and ensure that their farm continues to thrive for generations to come.

Disclaimer

This is not legal advice. This is in the nature of general information, not specific advice. For estate matters, always seek legal advice from an attorney within your jurisdiction.

SEEDS

• 🌽 Ag & Ed Experience: Commodity Classic is in Orlando this week, where thousands of ag enthusiasts will attend the trade show. Attendees will see the latest in machinery, technology, seed genetics, crop protection, marketing, policy, sustainability, and more.

• 🥩 Product of USA: The new proposed rule by the USDA outlining changes to the “Product of USA” labeling was released. Proponents say this will help consumers interpretations of the voluntary label align with reality. Opponents say it doesn’t do enough to protect US meat, poultry, and egg producers.

• 🥓 Fed Investment: Speaking of US meat, Ag Secretary Tom Vilsack announced the USDA is investing another $89 million to finance new and expanding independent meat processing facilities.

• ⛈️ Record Disaster: $21 billion in crop losses were estimated to have occurred in 2022 due to 18 weather and climate disasters, per the Farm Bureau. This made 2022 the third most costly year on record.

• 🤖 Farm Bots: SwarmFarm, an Australian autonomous farming platform, recently raised $8.3 million to further develop its autonomous technology beyond tractors.

• 🥬 Lush Lawn: If you look good, you feel good. The same can be said for your lawn. Here’s some tips for your spring lawn care.

• 🐷 New Pigs: Swine breeding and genetic innovator, Acceligen, used gene editing and protein modification developed by Kansas State University to develop a breed of pigs naturally resistent to Porcine Reproductive and Respiratory Syndrome (PRRS). It’s estimated PRRS costs hog farmers $500 million in losses each year.

THIS WEEK’S TOP TEN: Global Crops

Often times, those of us involved in agriculture get so focused on the crops grown and livestock raised around us that we forget how plentiful other commodities are around the world. This week, we’re zooming out to see the bigger agriculture picture. This is how the 8 billion people on this planet are fed.

Here’s the top ten crops produced around the world:

1. Sugarcane - 1.8 billion metric tons

2. Corn (maize) - 1.2 billion metric tons

3. Rice - 508 million metric tons

4. Wheat - 777 million metric tons

5. Potatoes - 381 million metric tons

6. Cassava (manioc) - 296 million metric tons

7. Soybeans - 368 million metric tons

8. Sweet potatoes - 118 million metric tons

9. Tomatoes - 184 million metric tons

10. Bananas - 117 million metric tons

*To help our US readers, 1 metric ton is equal to 1.102 US tons

If you’re wondering why there’s no meat products on the list, the short answer is: we don’t produce as much meat.

But, for all the carnivores out there, here’s the top five global meat products:

1. Pork - 109.6 million metric tons

2. Poultry - 108.8 million metric tons

3. Beef - 68.2 million metric tons

4. Goat and Sheep Meat - 16.7 million metric tons

5. Buffalo Meat - 4.3 million metric tons

MEME OF THE WEEK

That's a wrap, folks.

THANK YOU to everyone who works off the beaten path to feed our nation.

Was this newsletter forwarded to you? Click below to get new issues directly in your inbox.

Missed an issue? See previous editions here.

INTERESTED IN ADVERTISING ON THE GRAVEL ROAD?

Send an email ([email protected]) with a bit about your company and we will get back to you lickety-split.