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Agribusiness Association of Iowa’s Community College Career Day: Two Trends Enable Opportunity for Ag Innovation and Rural America
On February 9, I joined the Agribusiness Association of Iowa’s Community College Career Day to talk to students about opportunities in agriculture. Together with a panel of agribusiness leaders, we shared our excitement about the future of our industry with hundreds of Iowa students.
I believe there are two key converging trends that will drive agricultural innovation and will result in opportunities for students to have a positive impact in Iowa and around the world.
The first is societal shifts relating to agriculture and food. Millennials and Gen Z now represent almost half of the U.S. population, and their interests differ considerably from previous generations. Food choices have moved beyond the plate and align with personal beliefs – including animal welfare, fair trade and sustainably sourced. Consumers want food with attributes, like increased protein, healthy oils and medicinal benefits – all with easy to understand “clean labels.” Compounding this is the existential threat of climate change to rural and urban ways of life. Today diverse coalitions are being formed at the local, national and global level to mitigate the impact. Farm groups and corporations are not only aligning in their public statements and sustainability goals but are also working together to accelerate specific actions. From Cargill to General Mills, companies are committing to implement regenerative farming across millions of acres. Ag associations are also taking stronger steps to engage on climate solutions, including the creation of the Food and Ag Climate Alliance to work with the new Biden Administration. And finally, as one of the fastest growing investment sectors, “ESGs” (environment, social and governance) illustrate how AgTech investors not only want to get a positive return but have a positive impact on the world.
Converging with these societal shifts is the economic pressure farmers and ranchers have faced for nearly a decade. Prices for agricultural products have remained relatively stable as input costs have steadily increased. Government support filled the difference. Today, more than half of farmer income is subsidized (the Farm Bill plus trade and pandemic relief). Not only is this not sustainable, it’s not how farming families want to grow their operations.
As societal interests converge with farm economics, AgTech innovation offers a solution. Now more than ever, we must embrace the opportunity to increase value of farming and food production by enabling new technology that meets consumer demand and climate change.
Farmers are the foremost entrepreneurs and will adopt innovation that brings value to their production and protects the natural resources we all need. When done right, adoption can be quite fast. Consider how fast biotech adoption was overall – specifically biotech insect protection that brought production, environmental, and consumer value. Now we can bring increased value to crop production through functionality and nutrition, as well as through the adoption of sustainable practices. In addition, today the “digitization of ag” – such as data, AI, machine learning and other technology – is accelerating prescription farming, precision planting, variable rate input management and equipment automation. In the future, digitization will enable more dynamic uses of data, including certification of production practices and standards, and the traceability of food and feed. As part of that, we must continue to engage today’s students who will be the biologists, data scientists, inventors and entrepreneurs of tomorrow.
For the past twenty years, I’ve had the chance to talk with students around the world. What draws them consistently to agriculture is the chance to have a challenging job that also helps improve our society by delivering on a higher good. Not only are these exciting careers in all disciplines – each plays a critical role to lift rural communities and connect with our urban neighbors. My hope is that the students in Iowa and around the world continue to choose agriculture.
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ZeaKal Board Advisor Commentary: “AgTech Start-Ups Key to the Next Wave of Agricultural Innovation”
Agriculture plays one of the most critical roles in the health and well-being of our people and planet. Throughout history, humanity has continuously fought against issues of poverty and, with it, the challenges of famine and malnutrition. Each time, innovation in agriculture has risen to face these trials and lift the human condition.
Agriculture plays one of the most critical roles in the health and well-being of our people and planet. Throughout history, humanity has continuously fought against issues of poverty and, with it, the challenges of famine and malnutrition. Each time, innovation in agriculture has risen to face these trials and lift the human condition. In fact, many of the technologies we enjoy today, would not have been possible without advancements in agriculture freeing up human capital. One could argue, that agricultural innovation is the root of human technological progress. With the recent challenges to agriculture - floods, trade wars, surplus commodities and poor farmer economics - I have been reflecting on where innovation in agriculture needs to go and more importantly from where it will originate from.
AGRICULTURAL INNOVATION: A BRIEF HISTORY
During my eighteen-year tenure as President of DuPont Pioneer and Head of International Operations, I witnessed incredible scientific advancements made to help farmers increase the productivity of each acre. During much of the 1900s, yields increased by more than 1.5% annually in corn through genetics, mechanization and agronomic practices. More recently improvements in productivity accelerated as we further optimized genetics, invented new traits, developed trait stacks and added dual trait modes of action. The combination of these innovations improved yields, increased stress resistance and introduced different herbicide tolerance and insect control products across several of the major crops. The solutions were elegant and addressed the critical pain points farmers around the world faced every season. Combined, these technologies helped farmers deliver the volume of food and feed the world needed. Farm operations expanded across North America and Brazil, and farmers in Asia and Africa adopted modern practices and gained greater access to new technologies. This innovation renaissance over the past three decades could be attributed to the leadership of a few companies including DuPont Pioneer (now Corteva), Monsanto (now Bayer) and others.
However, around 2014 things started to change. Supplies of commodities grew. Global regulatory systems became unpredictable. Environmental pressures intensified. Consumer preferences shifted. The science required to meet changing demands became not only more complex and lengthier, but also much more expensive. While I don’t believe that any of these headwinds will be the death knell of commodity agribusinesses, it is changing what the market is asking for from innovation. Instead of just yield, there is now demand for value in the form of better nutrition and even functionality. Farmers want new safer chemistries or biological solutions that can fill a shrinking toolbox of crop protection products. Furthermore, farmers want greater choices in crop alternatives that can be added to the rotation, but supported by toolsets that they have come to expect in major row crops like corn and soybeans.
“Instead of just yield, there is now demand for value in the form of better nutrition and even functionality.”
THE ROLE OF START-UPS IN THE FUTURE OF AGRICULTURAL INNOVATION
As we enter this decade, I am convinced that the type of innovation the market is demanding will increasingly be served by the start-up community. While overall research spending across the large agricultural companies has remained relatively stable, it is now more focused and narrower among the majors due to complexity, unpredictability and increasing costs. To create the type of disruptive technologies that the world needs, innovation needs to be nimbler, more diverse, less constrained and responsive to changing trends. I see the emphasis on “Open Innovation” from the large companies as further validation that they also believe that the next generation of innovation will come externally from start-ups.
In the past eight years, the agtech sector has quickly grown, and venture capitalists, agribusinesses and farmers alike have taken notice. According to Finistere Ventures, since 2012 a record $25 billion has been invested into the agrifood sector, with upstream startups achieving a nearly 18% year-over-year increase in investment in 2019. Within this pool of investment, most science and research around “output traits”, greener chemistry, better nutrition and improved sustainability resided within the start-up community. These entrepreneurs are tackling incredibly complex challenges like improving grain composition and nutrition, providing alternatives to synthetic chemistry and responding to environmental concerns, to name a few. They are also from the outset telling a story that seeks to engage the consumer – something that our industry has been woefully lacking.
“To create the type of disruptive technologies that the world needs, innovation needs to be nimbler, more diverse, less constrained and responsive to changing trends.”
Despite all this innovation, more must be done as an industry to ensure that these technologies translate into in-market products that will benefit the world. During the previous era of innovate-and-deliver – the two decades of the 1990s and 2000s - the industry’s farmer-focused solutions did not adequately involve the supply chain and consumers. Our business model did not fully reflect or understand their needs. The result was an economy driven by volume and not value. The disconnect with consumers also further distanced the farm from the fork, which created a vacuum that allowed misinformation to seep in.
For this next generation of technology to succeed, we must not only commit to science innovation but also innovate the way technology engages with the supply chain and consumers. We must focus on how we can capture and share value creation from what the market is dictating at the dinner table back to the farmers who are growing it in the field. We must boldly encourage, support and invest in the entrepreneurs driving the future of agtech innovation. As I personally transition from leading one of the world’s top plant genetics companies to now mentoring breakthrough startups such as ZeaKal, I look forward to remaining at the cutting edge of agtech innovation and seeing how it will shape the world in the years to come.
Chicago Council on Global Affairs Guest Commentary: “Delivering Innovation Today Will Help Meet Tomorrow’s Food and Nutrition Needs” published on Agri-Pulse
It’s hard to look at the global food situation and not feel overwhelmed. World population is expected to exceed 9 billion by 2050, requiring us to boost food production by a whopping 50 percent over the next several decades. On top of that, we expect more than 3 billion additional people in the middle class by 2030 – resulting in more diversified, protein-rich diets and an escalation in urbanization. And … we must meet these demands with limited land and natural resources.
It’s hard to look at the global food situation and not feel overwhelmed. World population is expected to exceed 9 billion by 2050, requiring us to boost food production by a whopping 50 percent over the next several decades. On top of that, we expect more than 3 billion additional people in the middle class by 2030 – resulting in more diversified, protein-rich diets and an escalation in urbanization. And … we must meet these demands with limited land and natural resources.
Is there hope we can fully meet tomorrow’s food and nutrition needs?
I believe the answer is yes, with the right commitment, policies and blueprints for collaborative action on the part of governments, international organizations, research institutes and the private sector and many others. I also believe that science-based innovation – in agricultural technologies, processes and approaches – will play a central role in ensuring that the solutions we find will be up to the enormity of the task we face.
What the Data Tells Us
The findings of two recently published reports highlight the complexity of the situation we face. On the positive side, the 2015 Global Food Security Index – released today by The Economist Intelligence Unit (EIU) and sponsored by DuPont – found that food security has modestly improved in almost every region of the world. Food security only exists when people at all times have physical, social and economic access to sufficient and nutritious food that meets their dietary needs for a healthy and active life.
In relation to global food security figures, the EIU cites several contributing factors such as slow gains in food system infrastructure improvements, sustained economic expansion in most regions – particularly in developing countries – and lower food prices. Sub-Saharan Africa saw impressive gains in food quality and safety, with higher consumption of proteins and greater diet diversification.
However, malnutrition – from undernourishment to obesity – is a growing worldwide problem. Just last month I participated in The Chicago Council on Global Affairs Food Security Symposium, where leaders from around the world gathered in Washington, DC, to consider how we could better leverage agriculture and food to improve nutrition. In the report, “Healthy Food for a Healthy World,” the Council called upon the United States to use the enormous power of its agriculture and food sector to reduce the reality and risks of malnutrition globally.
The reason for this call to action is starkly clear: more than 800 million people in the world are chronically undernourished, according to the UN’s Food and Agriculture Organization, and this has enormous implications for health systems, economic development and of course human lives. It’s critical for us to make nutrition a priority now in developing our global food systems for the future.
The right policies and actions can go a long way in addressing malnutrition and food security, particularly when they help unleash the power of private sector-led innovation to drive step-change improvements in the way we produce, store and transport food.
Farmers Need Access to Technology
According to the EIU’s Global Food Security Index Special Report on Innovation, we’re seeing agricultural technology advance quickly with great potential to help farmers feed their families and the world. New software is contributing to more efficient water usage, more accurate digital soil maps and better testing kits. Biotechnology also is playing a vital role in protecting crops from pests, weeds and disease. Improved fertilizers and other inputs are boosting crop yields. New seed varietals are resulting in crops that are higher yielding, more stress and drought tolerant, fungal resistant and less reliant on nitrogen fertilizers. Crop biofortification is demonstrating strong potential to help reduce micronutrient deficiencies and public health over time.
But for promising innovations such as these to generate the greatest potential impact, we have to work harder to ensure that farmers have access to them. That’s where partnerships can make a huge difference. At DuPont Pioneer, we are collaborating at unprecedented levels and leveraging our strengths in seed technology, agronomy, agricultural systems and scientific research to help bring sustainable solutions to farmers based on their unique needs.
Innovation alone can’t eradicate the plague of malnutrition and food insecurity, but if we work together – governments, the private sector, NGOs, universities and others – we can bring our strengths to bear on this pressing challenge and improve outcomes. I would urge companies involved in the global food chain to collaborate to find multi-sector solutions, localize approaches to applying innovative technologies and methods, and keep advancing scientific and technological research, particularly in the areas of crop production and nutrition.
The task ahead of us is formidable but so are the resources we can call on: ingenuity, commitment and belief in a better world for all.
Chicago Council on Global Affairs Guest Commentary: “Local Solutions are Essential to Help Farmers Adapt to Changing Climates”
While modern innovation transformed agriculture, helping farmers continuously adapt their operations in the face of climate change remains a top priority around the world. Today’s Global Food Security Symposium brought together agriculture industry veterans and next-generation entrepreneurs who have seen the impacts of weather volatility in the field firsthand. But the voice of the farmer must be heard to understand the challenges and opportunities ahead.
This post is part of a series produced by The Chicago Council on Global Affairs, marking the occasion of its fifth Global Food Security Symposium 2014 in Washington, D.C., which will be held on May 22.
While modern innovation transformed agriculture, helping farmers continuously adapt their operations in the face of climate change remains a top priority around the world. Today’s Global Food Security Symposium brought together agriculture industry veterans and next-generation entrepreneurs who have seen the impacts of weather volatility in the field firsthand. But the voice of the farmer must be heard to understand the challenges and opportunities ahead.
Farmers like panelist Trey Hill, a Maryland farmer who had to replant 1,000 acres of corn following this year’s cold snap, demonstrate the power of innovation applied at the local level. Hill’s fourth-generation Maryland farm is a model for sustainable management practices to increase productivity in one of the most environmentally sensitive areas – the Chesapeake Bay watershed. Novel decision services tools will help farmers like Trey have a prescriptive approach to whole-farm management, ultimately combining productive and sustainable practices to unlock the full potential of each acre.
Technology adoption and innovation have improved farming in the developed world. A U.S. farmer with advanced seed technology, a smart phone and GPS is practicing a profoundly different kind of agriculture than her great grandfather did behind a mule decades ago. But for farmers in many developing countries, the process of growing food hasn’t changed much -- a fact we cannot ignore.
In the last month, many scientific reports have called for urgent climate change policy – zeroing in on agriculture as an important place to start. The Intergovernmental Panel on Climate Change requests immediate action to adapt food systems with emphasis on increasing productivity and resiliency across the value chain. The Chicago Council’s report went further to highlight the fact that the bulk of climate change resources have focused on mitigation. The Council calls for greater focus on agriculture and food research, including gathering and analyzing data more rigorously to support adaptation. Building capacity in developing countries will be essential to this approach, since agriculture is localized.
Farmers understand better than most the impact of climate change on food security. To truly tackle this complex challenge, we must continue to provide innovation at the local level. The impact of bringing high-quality hybrids and no-till equipment to smallholder farmers will be incredible and immediate. Recently, I spoke with smallholders in Africa and China as well as top U.S. producers. While they have very different operations, each wants to increase productivity and resiliency of each hectare.
At DuPont, we believe science can unlock innovation to bring local solutions to a global challenge. That’s why we are investing in research at the local level, like our recent research hub and insectary in Delmas, South Africa, which will bring new tools to combat local pests and harsh weather. Comprised of a network of research facilities and testing locations around the continent, local researchers and agronomists will work to bring local innovation to farmers faster.
Collaborating with global partners to develop local products and production methods is important to increase food production sustainably and effectively. Seed is only one part of the equation – holistic solutions are needed. That's why we continue to build unique collaborations with organizations like the Buffett Foundation and John Deere. Together, we will bring new products to support a conservation-based system of agriculture designed and targeted to sustainably improve the productivity of African smallholders.
While the challenge is complex, let’s continue to get solutions in the hands of local leaders, especially farmers. Meaningful lasting changes will take local innovation. Let’s not shy away from using resources to produce food. Instead, let’s use all tools available to bring the promise of food security and sustainability together.
Chicago Council on Global Affairs Guest Commentary: “Today’s Challenge Requires Tomorrow’s Leaders”
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Huffington Post Contributor: “To Fight Hunger, Inspire Youth”
This week some of the foremost international leaders in government, business, non-profit and academia are gathering in Washington, D.C., to inform the G8 Summit conversation on the issue of food security, and to propose solutions to feed a growing world population. Heads of State, President Obama, even Bono, are joining together at the Chicago Council Global Affairs Symposium on Friday to share their goals for eradicating world hunger today and issue calls to action for feeding nine billion people in the decades to come.
This is a powerful showing of support for improving how we produce food, get it to market and feed those who need it most. However, even with the lengthy VIP list, there will be a significant audience missing from Friday’s symposium — the people who are going to be responsible for feeding those additional two billion in 2050.
Today’s youth.
Come 2050, today’s leaders in government, business and non-profit will no longer be in power. We will be on the sidelines. So we need to start talking now about who is going to take our place, and how we are going to inspire and prepare the next generation of food leaders.
The farmer that will feed the world in 2050 is 13 years old today, and with less and less children interested in taking over their family farms, we need to find new ways to get them excited about being part of the solution to world hunger. Additionally, the strong global demand for food creates an unprecedented need for young talent in roles that people may not immediately relate to food and agriculture.
We’ll need leaders in global health, law, development, finance, engineering and information technology — to name just a few. It is our responsibility to get young people excited about the challenge of feeding the world and then provide the opportunities to become the next generation of leaders.
Shirking this responsibility of preparing today’s youth for tomorrow is not an option. Consider the strong connection between George Washington Carver, Henry Wallace, and Norman Borlaug.
George Washington Carver was at Iowa State University when he took a professor’s young son under his wing, bringing him along on walks through his research plots and sharing his love for plants. That boy grew up to be Henry Wallace.
After discovering some of the first corn hybrids and founding Pioneer Hi-Bred, Wallace became Secretary of Agriculture, Vice President, and then inspired the Rockefeller Foundation to build the first agricultural research stations in Mexico. This station employed Norman Borlaug who would go on to invent improved wheat varieties and be credited for saving 1 billion people from starvation.
What would have happened if these men had never met? If when their paths had crossed, they never paused to share their knowledge, passion and inspire the next generation. It is hard to imagine.
Following the events surrounding the Chicago Council Symposium and the G8 activities, let’s take time to understand the critical role of youth today in ensuring global food security tomorrow. Let’s also appreciate the role we all play to make sure they do.
Chicago Council on Global Affairs Expert Commentary: “Even Those with Full Plates Need Food Security”
In advance of the Global Agriculture Development Initative's Symposium on Global Agriculture and Food Security, the Initiative solicited commentary by leading global food security and international development experts to provide analysis on what critical steps countries must take to help reduce global hunger and alleviate poverty worldwide. This piece originally appeared on Huffington Post's Web site.
Paul E. Schickler is president of Pioneer Hi-Bred. He was named vice president, director, Latin America Operations for Pioneer in 1999, with Africa added in 2002. In October 2003, responsibility for the remaining international businesses was added, and he was named vice president, International Operations. In November 2007, he was named Pioneer president.
In the United States, it's easy to take our food supply for granted. Less than one percent of the U.S. population claims farming as an occupation, yet there is no national shortage. To the contrary, agricultural exports are strong. From the dining room of most U.S. consumers, the notion of "food security" -- an adequate supply of daily food for a growing population -- may seem irrelevant.
And yet, food security is the cornerstone to stable societies. As noted by the late Norman Borlaug, 1970 Nobel Peace Prize Winner and Father of the Green Revolution: "You can't build a peaceful world on empty stomachs and human misery." And that's a growing challenge with global population -- and demand for food -- expected to double by 2050.
Food security is national security. Better farming can change the game -- addressing multiple global issues that include hunger, poverty, environmental degradation, poor nutrition and even civil unrest.
That's why it is so important that on Thursday, the Obama administration is announcing its new food security plan -- outlining the best ways to maximize the effectiveness of the $22 billion that the U.S. government and other G8 countries pledged at the G8 Summit in L'Aquila, Italy, in July 2009 to "increase food production, improve access to food and empower smallholder farmers to gain access to enhanced inputs, technologies, credit and markets." The immediate objective is to reach the first Millenium Development Goal of cutting global hunger and poverty in half by 2015. The plan will channel investment to potentially 20 countries in Africa, Asia, and the Western Hemisphere to support food security policies that those countries have crafted themselves.
The need for international action is obvious. Members of these developing countries -- Kenya, Ethiopia, Bangladesh, Guatemala, and Haiti for example -- face challenges that didn't exist 25 years ago. Besides, in the eternal race to feed a growing population, poor countries now are likely to shoulder the brunt of steadily rising food prices due to demand from a rising global middle class.
Rising food prices have led to civil unrest and increased protests: Already in the last five years, the world has seen more food protests across multiple countries than it did in the previous 30. The growing middle class in markets such as China and India is likely to continue driving up demand for improved diets -- and with it, the price of grain that poorer consumers depend on for their daily bread and other basics. Add to that the specter of global warming -- with drought, disease, and insect infestation -- and the prospect of continued food price increases will be part of a distasteful menu for a long time to come.
What is the answer to this challenge? Collectively, we must double agricultural production by 2050. With limited new farmland to bring under cultivation, the focus is on increasing the yield and nutritional impact produced by every existing farm acre.
To get there, investment in agricultural innovation is essential. Public-private partnerships between companies, NGOs, governments, and academic researchers are critical to leveraging the $22 billion pledged at L'Aquila. This is where U.S. companies can make a difference, putting their expertise in innovation and investment in research to work for food security.
Many public-private partnerships already are under way. For example, DuPont, is teaming up with the International Rice Research Institute in Los Banos, Philippines to find hybrids to boost rice yield growth rates which have fallen below one percent since 2000. If not reversed soon, this trend will lead to tight supply and higher prices.
In Kenya, we are working with the United States Agency for International Development, the Bill & Melinda Gates Foundation, and others with the International Maize and Wheat Improvement Center (CIMMYT) to improve maize harvests for African farmers by 30 percent to 50 percent with new varieties that need less fertilizer.
Such cooperative efforts - in concert with a strong, holistic agricultural policy - can pay huge dividends -- a one percent improvement in agriculture GDP reduces poverty rates by roughly one percent. Building food security around the world will help all of our globe's populations.
This is why, though you and I may go to bed with a full stomach, we all need to be thinking about global food security.