Claire Carlson for the Daily Yonder
Broadcast version by Mike Moen for Iowa News Service for the Public News Service/Daily Yonder Collaboration
The fertilizer industry is scrambling to find solutions to fertilizer prices that have been on the rise since last fall, but some farmer advocacy groups worry the efforts being made don't address the control big fertilizer companies wield over the market and the effects of synthetic fertilizer on the environment.
A document published earlier this spring by the Fertilizer Institute, an organization that represents and advocates for the fertilizer industry, highlights several action items for lawmakers and farmers to strengthen the domestic fertilizer supply and maximize usage. The goal is to get these action items in front of as many policymakers and constituents as possible to push for stronger fertilizer legislation, according to Corey Rosenbusch, president and CEO of the Fertilizer Institute.
"Last fall, when we started to see significant shifts in the market, farmers were quite concerned about the crop inputs and what that was going to mean for their upcoming planting season and crop season," Rosenbusch said. "[The Fertilizer Institute] hit the road and visited with a lot of farmers and commodity groups to inform them of what was going on in the markets and why we saw prices rising."
These conversations led the organization to put together the short and long-term solutions laid out in the policy solutions document.
Among these solutions include eliminating fertilizer export restrictions in China, dropping vaccine mandates across Canada-U.S. borders for truck drivers transporting fertilizer, and encouraging growers to adopt 4R Nutrient Stewardship practices - a framework that helps farmers identify how much of and what kind of fertilizer to use, as well as when the best time to apply it is and where on the farm.
According to one farmer advocate, these solutions don't address what he believes is a key cause of these high prices: price manipulation by the small number of fertilizer companies controlling the industry.
"The way [this document] approaches the issue as though there is a long-term supply-demand failure within fertilizer ignores that the issue we've been having with fertilizer is as much an issue of concentration and price gouging as it is supply disruption," said Joe Maxwell, president of the advocacy group Farm Action.
Four corporations control 75% of nitrogen fertilizer production and two companies control the majority of potash production in North America, according to research from the Bureau of Economics and the Agriculture and Applied Economics Association. Between 1984 and 2008, the number of fertilizer producers decreased from 46 firms to 13.
While the Fertilizer Institute doesn't acknowledge this issue in their document, it is being addressed by the USDA. On March 17, a notice from the USDA seeking public input on a document titled "Access to Fertilizer: Competition and Supply Chain Concerns" was published in the Federal Register. The deadline for comment was recently extended to July 15.
"USDA is committed to using every tool at its disposal to enhance competition and improve resiliency in the fertilizer market," said Andy Green, senior advisor for the USDA's Fair and Competitive Markets program, in a USDA press release. "Finding ways to encourage sustainable and independent choices for fertilizer supplies demonstrates the Biden-Harris administration's ongoing investment in American goods and services to rebuild a more resilient, secure, and sustainable economy."
In mid-March, the USDA announced plans to allocate $250 million in grants to farmers to address rising fertilizer costs and encourage competition. Two months later, Secretary Tom Vilsack announced an additional $250 million to be directed toward farmers. The comments from the document published in the Federal Register will inform how these grants are used.
"There is definitely room for that money to be spent promoting the idea that our long-term fertilizer solution has to be tight nutrient cycling on-farm and therefore reducing farmer need for fertilizer in the first place," said Jesse Womack, conservation policy specialist with the National Sustainable Agriculture Coalition. "This means not just creating additional domestic production of fertilizers but truly reducing farmer dependence on fertilizer."
While it's unlikely the use of synthetic fertilizer could be totally eliminated, Womack said, reducing the amount that is used is one way farmers can be more resilient in the face of high fertilizer prices.
Organizations like the National Sustainable Agriculture Coalition and Farm Action are working to build incentives into the 2023 Farm Bill that would encourage use of agriculture practices like crop rotation (growing different types of crops in the same location), cover crops that grow nutrients in place, and both off- and on-farm composting to improve soil health.
Fertilizer representatives aren't as convinced dependency can be reduced. "Without fertilizer, you can erase 50% of crop yields and we've been talking about massive starvation and food security," said The Fertilizer Institute's Rosenbusch. "Now that [this issue] is front and center we realize that the foundation of long-term food security is access to fertilizer."
The Federal Register's public comment portal on consolidation in the fertilizer industry can be accessed here. The Fertilizer Institute's policy solutions document can be accessed here.
This story was produced with original reporting from Claire Carlson for the Daily Yonder.
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By Naoki Nitta for Civil Eats.
Broadcast version by Suzanne Potter for California News Service reporting for the Solutions Journalism Network-Public News Service Collaboration
It's no wonder that hospital food gets a bad rap, says Santana Diaz, executive chef at the University of California Davis Medical Center, a sprawling, 142-acre campus located in Sacramento, California. As a seeming compromise between nutrition and institutional efficiency, food has long been dished up as an afterthought to patient care. “That was never the focus of hospitals,” he adds.
But for Diaz, good food is key to good health. Since taking the helm of the facility’s nutrition and dining services in 2018, he has worked to revamp the cuisine, including sourcing almost half of ingredients from farms and ranches within a 250-mile radius of the Sacramento Valley. Food grown in local fields, orchards, and pastures with healthy soil management practices simply make for healthier, more nutritious, and more flavorful meals, he says—the perfect ingredients for changing the “stigma” associated with hospital fare.
Diaz is not alone in making this shift, but he may be ahead of the game. In 2022, the University of California (U.C.) system—a network of 10 campuses and five medical centers—committed to supporting regenerative farming as part of U.C. President Michael Drake’s vision to mitigate the effects of climate change and drive a more equitable food system. And as an advisor to an initiative lead by the nonprofit organization Roots of Change, Diaz is helping to steer the larger institution toward local agriculture—through the system-wide procurement of regeneratively ranched beef.
The term, a general reference to pasture management that prioritizes soil health and perennial plants by grazing livestock through rotated paddocks, encompasses a set of practices that advocates say results in healthier animals and pastures. Research also shows that beef from cattle raised strictly on grass is more nutritious than conventional beef, although it’s not yet clear how regenerative practices may impact those findings.
Cumulatively, the U.C. dining system serves more than 600,000 meals a day during the academic year. By ensuring reliable demand for regeneratively raised meat, proponents of the system’s new procurement pledge see the sizable volume giving the state’s independent ranchers and rural economy a huge boost, and bolstering the local and regional meat supply chain.
It’s a tall order, but Diaz knows the sway that comes with institutional demand. The former executive chef at the Sacramento Kings’ Golden 1 Center and the San Francisco 49ers’ Levi’s Stadium is also a founding member of Beef2Institution, a non-profit program helping K-12 schools, hospitals, and sports venues in California source beef from local, family-owned ranches.
Institutions are the perfect outlet, says Diaz, for ground, braising, and stewing meat and the other lower-value, secondary cuts that make up nearly two-thirds of every beef carcass. So featuring hamburgers, boneless short ribs, and carne asada as part of a local farm-to-fork menu offers nearby ranchers a prime bread-and-butter opportunity, he says—all the while exposing a captive audience to the value of beef raised on regenerative pasture.
“Obviously, we’re not going to change patient behavior . . . in [one] hospital stay,” Diaz notes. But because diet plays a major role in raising the risk of heart disease, diabetes, and other chronic conditions, there’s huge merit, he adds, in educating them about preventative and nutritional approaches to health management.
And with his kitchen alone churning out 6,500 meals a day—along with patients, the medical center feeds an army of clinicians, staff, and medical and nursing students—the appetite of the entire U.C. system will likely have a resounding impact on the larger beef market in the state. “That’s how institutions can flex their buying power,” Diaz says.
A Premium Product
Despite research showing that eating less beef has significant health and environmental benefits, including shrinking an individual’s carbon footprint by as much as 75 percent, America’s steak and burger consumption is on the rise.
Currently, the vast majority of U.S. beef comes from cows raised on pasture for about the first year of their lives, then moved to concentrated animal feeding operations (CAFOs)—large-scale industrial facilities that grain-finish cattle in confinement for six to eight months before slaughter. Along with concentrated levels of environmental pollution, critics deride beef feedlots as places where hundreds if not thousands of cattle are crowded together. These conditions typically require antibiotics to prevent herds from getting sick; subsequently, this “subtherapeutic” use has also been linked to antibiotic resistance.
Nevertheless, CAFOs are also the basis of a “hyper-efficient” commodity system, says Renee Cheung, managing partner at Bonterra Partners, an impact investment advisory firm for regenerative agriculture and co-author of a market analysis of grass-fed beef. These operations pump out a consistent, year-round supply of beef for the meatpacking industry, a sector dominated by a handful of multinational giants that control more than 80 percent of the country’s beef market.
Grazing cattle on pasture for the entirety of their lives, on the other hand, is far less productive. As such, strictly grass-fed or grass-finished operations tend to be modest in scale, says Cheung, with the majority of ranches in the U.S. herding around 50 heads. The smaller volumes and seasonality of pastures create more variability in slaughter weight and harvest windows, running counter to the conventional year-round commodity model.
As a result, non-CAFO operations don’t benefit from the economy of scale built into the heavily consolidated processing and marketing infrastructure, Cheung says. With limited access to centralized meatpacking facilities, these producers are often saddled with high overhead for transport, cold storage, and market delivery—all of which add to premium prices at the meat counter.
The cost, however, also reflects a more superior product. Compared to conventionally raised beef, studies show that strictly pasture-fed beef contain higher nutrients with less fat, often with lower levels of antibiotics, hormones, and risk of food contamination. And grass-fed cuts simply taste better, according to Chef Dan Barber, sustainable and ethical farming advocate and author of The Third Plate, who extols its rich, complex, and “undeniably beefy” flavor.
Not all pasture-based ranchers have adopted paddock-based regenerative practices, but the number appears to be growing. That’s in part because the holistic principles of regenerative ranching go hand in hand with land stewardship and animal welfare, says Michael Dimock, executive director of Roots of Change. By “mimicking nature,” the grazing patterns of ruminants benefit from natural forage and room to roam, all the while “maximizing soil health and biodiversity” of plants, insects, and other animals.
Regardless, recent research shows that 100 percent grass-fed cattle have a larger carbon footprint than those finished on grain because they fatten at a slower rate, yet also weigh as much as 20 percent less at maturity. And while regeneratively managed pastures have been shown to sequester carbon, the science behind the potential for “carbon-neutral beef” has been overblown. Still, Dimock adds that well-managed, rotational grazing enhances pasture productivity, helps restore spent cropland, and prevents wildfires by keeping invasive grasses and dry brush in check.
It’s also a highly efficient use of marginal land, notes Dimock—a classification of the 70 percent of the world’s arable regions unsuited for crop production due to poor soil, aridity, or steepness. As he sees it, regenerative ranching is also accessible and practical for smaller operations because it’s scalable, and lowers the financial risks associated with compliance-centered practices like organic farming.
The Power of Procurement
Making regenerative beef a more attainable business model requires developing a resilient supply chain, says Dimock, one that caters primarily to smaller producers. The COVID-19 pandemic exposed the vulnerabilities of a heavily consolidated industry, including bottlenecks in meat processing due to labor shortages and transportation breakdowns. Along with the USDA’s recent $1 billion investment in expanding the nation’s meat and poultry processing capacity, he sees California’s $600 million Community Economic Resilience Fund (CERF) giving a major boost to the state’s meat supply infrastructure.
The targeted funding includes shoring up the network of smaller, regional harvest, processing, and storage facilities, he adds, and will help rural communities develop stronger economic hubs that decentralize the current top-heavy model. But those new and expanded facilities won’t succeed if there isn’t a consistent market for the kind of meat they process.
“If we want to give small-scale ranchers a fair shot,” Dimock says, “we have to break up [the current corporate stronghold].”
Going up against the commodity system, however, comes with additional challenges. While grass-fed beef accounts for roughly $4 billion, or 4 percent of the overall U.S. market, an estimated 80 percent of the supply consists of imports, largely from Australia, Uruguay and Brazil—countries where raising livestock on pasture is far more economical. Passed through a USDA-inspected plant, these products can be labeled “domestic,” leaving true domestic producers at an economic disadvantage.
In fact, the general lack of standards and regulations for the grass-fed sector has created a Wild West landscape of labels, says Bonterra’s Cheung. For its part, the USDA has recently announced stepping up its labeling guidelines, which distinguish true grass-fed beef from confusing claims such as “pasture-raised,” “50 percent grass-fed,” and “grass-fed and grain-finished.” These are highly misleading terms, she notes, given that most cattle are pastured for the first year of their lives. And “there has been a lot of outright cheating in the industry,” she adds—for instance, grass-fed labels can still apply to confined cattle raised on grass pellets.
The fundamental practices of regenerative ranching align with California’s efforts to promote farming “in a manner that restores and maintains natural systems,” says California Department of Food and Agriculture (CDFA) Secretary Karen Ross. The approach also complements the state’s climate smart initiatives and efforts to advance social equity through the support of small-scale farms and ranches.
Still, Ross acknowledges that the term’s inherent flexibility can make it a fuzzy concept. That’s especially true in California, where regional variations in microclimates, precipitation levels, and soil structure reflect a wide practice spectrum—some ranches in the state’s mountainous reaches, for example, may winter their herds on dried silage when fields are bare, while others may have the means to transport them to greener pastures.
“If you talk to 12 people about regenerative [practices], you’ll get 12 different definitions,” Ross says.
Currently, several certifications such as the American Grassfed Association (AGA), Regenerative Organic Certified, and Land to Market provide a range of overlapping criteria that ensure the regenerative provenance of meat. By outlining transparent measures, these voluntary labels are intended to legitimize and safeguard the premium nature of regeneratively produced beef.
Last month, the CDFA began work on officially defining regenerative ranching and agriculture. Rather than developing standards for state certification, and the goal is “to make sure that when we use the term, we have a shared understanding of what the practices are,” says Ross. The “inclusive” set of parameters will help inform state policy around regenerative food production, she adds—including public procurement initiatives.
Public institutions are “a ready-made way” to spur and ensure market demand for healthy food from sustainable sources, adds Ross, who has been involved in discussions about the UC initiative. “We’re investing in better outcomes for farmers, the community, and the environment,” she says. “That’s the power of procurement.”
Building the Supply Pipeline
Balancing supply and demand is nonetheless a delicate endeavor, says Tom Richards, co-owner of Richards Grassfed Beef in Yuba County, California. The fifth-generation rancher has been a key voice in both the UC initiative and Beef2Institution.
Most of California’s pasture-grazing operations focus on a premium, direct-to-consumer market. Between online sales, farmers markets, restaurants, and specialty retailers, year-to-year demand tends to be stable—and manageable.
The supply of better beef “isn’t something you can just dial up,” says Richards. Increasing herds is a risky investment—“it takes three years to raise one of these animals,” he notes—so clear market forecasts are imperative. “The biggest thing that we need from the industry is for somebody like a Santana [Diaz] or UC to say, ‘we’re committed to [helping you] map out a three- to five-year plan to grow your supply,’” he says.
“Right now, the market’s operating on a push,” Richards adds. “But what the industry needs is the pull”—with heavy strings attached.
For smaller-scale operations in particular, committed relationships all along the supply chain are essential to staying afloat. Yet that business model runs counter to industry approach, says Clifford Pollard, the founder of Cream Co. Meats. The Oakland, California-based meat processor “bridges the gap” between regenerative ranches and broadline product distribution on the West Coast, and has played a central role in promoting Beef2Institution’s efforts.
Conventional meat processors “trade in commodities,” Pollard says, sourcing raw material at the lowest price possible. Cream Co., on the other hand, cultivates its supply pipeline “over many years of sustained [purchasing] commitments” to individual operations, he says.
Ultimately, with demand driving supply, the large-scale procurement will undoubtedly influence the equation. Nevertheless, even incremental steps by institutions can pave the way for meaningful change, Pollard notes. “There’s often a hesitation that it has to be all or nothing, but shifting even a small portion of your spend towards [regeneratively minded sourcing] is impactful,” he says, and U.C.’s commitment really gives regenerative producers “a seat at the table.”
“We don’t need the whole table,” Pollard adds. “Just a seat.”
Naoki Nitta wrote this article for Civil Eats.
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