I THINK THEREFORE AI AG CAAR GAINS NEW LEADERSHIP FIGHTING FOR EUROPEAN FARMS Page 5 Page 4 Page 15 APRIL 2024 | V.45 | N.02 | $4.50+GST
DREAM. GROW. THRIVE. SPECIAL RATES FOR SPRING SEEDING ARE HERE In the market for tractors, air drills, tanks or planters? Take advantage of special rates from FCC on seeding equipment for a limited time. Get pre-approved and have your loan funded by April 30. Some conditions apply. Call 1-888-332-3301 for details FCC.CA/EQUIPMENTPROMO
APRIL 2024 3 CONTENTS DEPARTMENTS APRIL 2024 | V.45 | N.02 4 CAAR Leadership News 5 AI & Ag 9 Strategies to recruit top talent 10 Fertilizer alternatives via bugs and lightning 15 Rage against the European Union 19 Being level-headed about shipping over water 27 Hungry for Coal 30 By the numbers INDEX OF ADVERTISERS Agvise Laboratories | www.agvise.com............................................. 25 Farm Credit Canada | www.fcc.ca...........................................................2 Hi Tech Installations Ltd. | www.hitechinstallations.info.........13 Marcus Construction | www.marcusconstruction.com...........17 Meridian Manufacturing Inc. | www.meridianmfg.com.........31 Nutrien Ag Solutions | www.nutrienagsolutions.ca..................32 5-8 Gen AI is in your headspace Canadian farmers should consider Gen AI technology that uses agronomic data to provide them with solutions on what their crops need them to do next to give them the best odds of outputting a bigger and better yield using fewer and less expensive resources. 19-26 The highs and lows affecting Canadian agriculture transportation by water A water crisis is affecting the transportation routes of cargo ships on the St. Lawrence River, the Great Lakes, the Panama Canal, and the Mississippi River. georgeclerk/iStock/Getty Images Plus photo Igor Borisenko/iStock/Getty Images Plus photo 10-14 What’s new in fertilizers? An in-depth examination of Canadian fertilizers in the international market as affected by global politics. We also look at some new fertilizer technologies here and on the horizon for farmers to consider. Elena Bionysheva-Abramova/iStock/Getty Images Plus photo
4 THE CAAR COMMUNICATOR Myrna Grahn is our new Executive Director We are excited to announce the appointment of Myrna Grahn as the new Executive Director of the Canadian Association of Agri-Retailers (CAAR). She stepped into her new role as of March 25, 2024. Myrna brings a wealth of experience and a passion for agriculture and the agrifood system to our organization. In her illustrious career, she has demonstrated a remarkable commitment to advancing the industry’s interests and disseminating accurate, balanced, and current information about where your food comes from. Her journey in the agricultural industry spans over 30 years and is marked by a commitment to excellence and innovation. After graduating with honours from the University of Manitoba, she embarked on a career path that saw her assume pivotal roles within various sectors of the agricultural landscape. Hailing from a grain and cattle farm in Riding Mountain, Manitoba, Myrna’s roots in agriculture run deep. Her journey has seen her traverse diverse landscapes, from urban to rural settings, and her multifaceted perspective encompasses various facets of the industry, from production to processing, innovation education, and beyond. Myrna has cultivated an extensive network and earned a reputation as a trailblazer and visionary leader. Her ability to collaborate, influence, and align stakeholders from government, industry, and academia is unparalleled, making her a formidable force in advancing the interests of the agriculture and food sector. Notably, Myrna has spearheaded transformative initiatives such as the Manitoba Industry-Academia Partnership and the Manitoba Protein Advantage implementation phase, a collaborative strategy aimed at sustainable growth and global leadership in the protein industry. Her previous roles, including leadership positions in government initiatives and the Faculty of Agricultural and Food Sciences, underscore her strategic acumen and her dedication to driving positive change. Myrna has demonstrated exceptional communication skills throughout her career. She adeptly manages sensitive topics and conveys messages to diverse audiences, including the media. As a dynamic public speaker and facilitator, she has engaged and inspired stakeholders, from senior executives to grassroots members. Before joining CAAR, Myrna served in senior leadership roles within leading agricultural organizations, where she played instrumental roles in fostering growth, driving operational efficiencies, and championing sustainable practices. Her strategic vision and ability to forge meaningful partnerships have consistently propelled organizations toward success. Under Myrna’s leadership, CAAR will continue to advocate for the agri-retail sector, championing initiatives that promote sustainability, innovation, and prosperity. With her deep-rooted understanding of the agricultural sector and her unwavering commitment to the well-being of Canadian agriculture, we are confident that Myrna will steer CAAR toward new heights of achievement and impact. Her strategic acumen and her passion for collaboration will undoubtedly strengthen CAAR’s position as a leading voice within the Canadian agricultural community. Please join us in welcoming Myrna Grahn to her new role. With her at the helm, we are poised for a new era of innovation and advocacy that will lead to growth, opportunity, and success for CAAR and the entire agri-retail industry. CAAR LEADERSHIP NEWS Produce. Protect. Proud. PUBLISHER 205 - 1 Wesley Avenue Winnipeg, MB R3C 4C6 TF: 800-463-9323 | T: 204-989-9300 E: info@caar.org | W: caar.org Executive Director: Myrna Grahn Marketing, Communications & Event Manager: Nikeisha Paul-Hunninghan Distribution: Farms.com PUBLISHING PARTNER 90 Woodlawn Road W Guelph, ON N1H 1B2 Tel: 888-248-4893 Email: CAAR@Farms.com Website: www.Farms.com CONTRIBUTORS: Stu Rasmussen, P. Ag, CAAR Board Chairman Denise Faguy, Associate Editor Andrew Joseph, Editor COVER dzika_mrowka/iStock/Getty Images Plus DESIGN & LAYOUT Tanya Myers ADVERTISING SALES Andrew Bawden Director of Business Development and Digital Media 877-438-5729 X 5030 Email: Andrew.Bawden@Farms.com Website: www.Farms.com NEXT AD BOOKING DEADLINE July 11, 2024 ANNUAL PUBLICATION SCHEDULE February, April, August, October, December © 2024 The Canadian Association of Agri-Retailers. CAAR makes no expressed or implied warranties of merchantability or fitness for a particular purpose or otherwise, concerning the use of any product or fertilizer and assumes no liability for any injury or damage, direct or consequential, which may be incurred from the use of such products or services therein. Federal, provincial and municipal laws and regulations supersede the information contained herein. Canadian Mail Publications Sales Agreement #42518524 Return undeliverable Canadian addresses to 90 Woodlawn Rd W, Guelph, ON N1H 1B2 Printed in Canada. Please recycle where facilities exist. FOLLOW US ON Myrna Grahn Stu Rasmussen, P.Ag. Board Chairman
APRIL 2024 5 GENERATIVE AI When it comes to AI, aka artificial intelligence, people either know all about it or they don’t. The everyday person assumes that AI is a giant talking head of a computer that, after digesting all of the knowledge on the World Wide Web and digital social media, should be able to answer any question we pose. That it can look and talk like a human is one thing. It might even innocently spew out a particularly noxious answer, simply because it doesn’t understand social norms as well as some people do. Or perhaps it does understand them, which is why it spews out noxious dialogue. Garbage in. Garbage out. It’s true that on AI sites such as ChatGPT, we can ask the brain to tell us how it believes yield and quaility of the Saskatchewan wheat crop will be in 2024 and, based on its current knowledge, it should offer us a reasonable answer. But that’s not the type of AI the agricultural sector needs to concern itself with. Instead, we must concern ourselves with generative artificial intelligence, aka Gen AI or generative AI. This is the technology where a computer program is fed as much information as possible about a local area—say, the farm of one of your customers. From all that data, the generative AI software provides the farmer with the best option to proceed. It’s not predicting anything; instead, it’s using the available data to provide feedback on how best to proceed in the near term. A few companies out there use Gen AI digital crop advisors using agronomic data to turn it into an actionable recommendation for the farmer. Analyzing big agronomic data provides AI-supported insights to optimize production practices. It helps farmers understand patterns affecting the performance of crop varieties and production on their specific farms. It tracks climate trends to help farmers become more resilient to the changing daily climate. We discussed AI with Pearson plc, a company whose workforce solutions help ag businesses unAI & Ag A viewpoint on how artificial intelligence can positively impact the agricultural sector. By Andrew Joseph, Editor Technology isn’t here to take over the world, but rather to help farmers make better choices to achieve their economical goals. wildpixel/iStock/Getty Images Plus photo
6 THE CAAR COMMUNICATOR derstand their workforce’s present and future needs, identify professional and skills development opportunities, and partner with employers and employees to future-proof their organizations in an evolving global economy. Headquartered in London, UK, Pearson also has offices in the US and Canada. We talked with Jonathan Finkelstein, founder of Credly and the Senior Vice President of Workforce Skills at Pearson. He explained what Gen AI is and how various sectors can use it. “Until recently, organizations mainly used artificial intelligence for statistical analysis, processing vast amounts of data and offering outputs that would have taken humans far more time and energy to complete,” noted Finkelstein. “The advancement of deep-learning models, which allow AI to classify text and images and transcribe audio automatically, has given rise to Gen AI. “Gen AI is a kind of artificial intelligence that— rather than analyzing or applying rules to data—produces something new: text, images, video, code, and other content,” he added. Deep-learning models trained on massive amounts of data power Gen AI’s outputs. The AI model “learns” to generate a statistically probable output based on reconciling the prompt it receives against the data it’s been fed. As Finkelstein explained to CAAR, Gen AI produces text relying on a large language model (LLM) trained on a high volume of text to develop patterns and probabilities of word choice and order concerning a given prompt. “Much like autocomplete on a smartphone, models like ChatGPT generate words one at a time (very quickly), with each subsequent word based on the previous one.” Models that produce code, images, and video also do so based on vast amounts of training data, influencing the outputs. “In this way, Gen AI produces a new work that shows traces of its training data,” said Finkelstein. “When you ask a Gen AI model like ChatGPT to write you a song about Wednesdays in the style of Dolly Parton, for instance, it will use its data about the genre of a song, the style of Dolly Parton, and social commentary about Wednesdays to write what it deems to be the most statistically probable text that satisfies your prompt’s parameters.” He said that Pearson believes Gen AI can positively impact how people understand and prepare for the changing world of work. AI’s surge forward in our personal and professional lives has changed our perception of what’s possible. It’s also changing the reality of what’s necessary in the world of work. Thanks to Gen AI, tasks that have long seemed inextricably intertwined with particular jobs are now being cast in a new light. “Our research (https://resources.credly.com/hubfs/ Pearson%20Skills%20Outlook%20(AI)%20-%20 Q4%202023/U.S..pdf) focused on how generative AI will affect roles such as farm product buyers by automating or significantly reducing the amount of time spent on daily tasks,” related Finkelstein. “Most generative AI models that have gained popularity are conversational AI chatbots, so rather than a “talking AI with a face,” these models use natural language processing to understand requests and questions and respond in writing.” Finkelstein said that these models have the potential to automate repetitive tasks in the agriculture sector, which will make quick work of responsibilities such as scheduling and documentation. Generative AI models trained on high-quality data can also offer data-driven insights and recommendations, allowing ag companies to work even more efficiently and use past experiences to inform projections like yield forecasts and product demand. He continued: “Our research anticipates that within blue-collar jobs, farm product buyers will experience the greatest impact of generative AI, based on the tasks associated with the role and AI’s ability to reduce the time spent on those tasks. “With the right data sets and prompts, a generative AI model can use past buying trends, current inventory, and projected demand insights to make product buyers’ work more efficient,” added Finkelstein. “By reducing the time spent on manual tasks like maintaining and reporting transaction and inventory data, generative AI will allow farm product buyers to use more of their uniquely human skills—communication and problem-solving, for instance.” With generative AI utilized as an accelerator for repetitive tasks, farm product buyers will now have more time to spend on higher-value work requiring additional skill sets. Pearson has developed data on AI. But where did it come from? For the “Gen AI Proof Jobs” installment of their Skills Outlook series, Pearson used a combination of census and other workforce datasets to form a comprehensive view of the current workforce across the US, UK, Australia, India, and Brazil. “Using our proprietary occupations ontology of GENERATIVE AI
APRIL 2024 7 5,600 jobs and 26,000 tasks, we framed each job as a collection of tasks, allowing our machine-learning algorithms to calculate future technology impact on each job at a task level,” related Finkelstein. He said that Pearson’s models weighed the future impact of 16 emerging technologies on each job’s tasks, considering the adoption rates for these technologies tailored by country and industry. By projecting the percentage of time saved per task by the year 2032 and incorporating economic models and industry-specific growth patterns, Finkelstein said that Pearson could extrapolate which jobs Gen AI would impact the most. Or at least in those five countries over the next decade. “Our “Gen AI Proof Jobs research found that Gen AI will have a more significant impact on white-collar roles over the next 10 years,” Finkelstein pointed out. “Blue-collar roles—especially ones with more creative, manual, and collaborative tasks—are at less risk from the changes the rise of Gen AI will bring.” He added that these insights are not meant to be considered as alarm bells to scare individuals or organizations into making dramatic career shifts, but rather that they should drive opportunity and inform strategic workforce planning. “Our research has uncovered a polarization between the tasks most impacted by technology— repetitive and technical tasks, such as scheduling appointments or answering and directing calls—and those less impacted, such as those requiring inherently human skills like creativity and collaboration,” noted Finkelstein. “Looking to the future, the next questions individuals and organizations should ask include: How do we refine these human skills that future technology won’t replace and leverage technological advancements to augment our human work? And as we make progress, how do we provide continuous skills development, equipping people to transition into more valuable future, high-demand roles?” For those organizations that are already able to recognize AI’s potential for efficiency and scalability, they can begin to offer employees more personalized learning solutions. Finkelstein added that AI will empower people to make more valuable and productive career choices and be able to execute those choices more efficiently. The company QuantamBlack, AI by McKinsey, revealed that less than a year after the debut of many Gen AI models, one-third of all its survey respondents reported that their organizations use Gen AI regularly for at least one business function. “If the past year (2023) is any indication, we’ll see even greater advancements in Gen AI’s abilities and uses,” extolled Finkelstein. In a recent report issued by Bloomberg Intelligence, it was predicted that the Gen AI market would surge by over 42 percent annually, reaching Gen AI provides farmers with key insights to plan their next move in the field to maximize crop potential and to reduce input costs. PhanuwatNandee/iStock/Getty Images Plus photo
8 THE CAAR COMMUNICATOR $1.3 trillion in value by 2032, up from just $40 billion in 2022. Over the next 10 years, we will also see an increased demand for specialized AI assistants, new infrastructure, and coding automation tools. Major Gen AI companies will continue reducing AI-generated hallucinations—Finkelstein called these confident but factually incorrect responses—refine their training data and work to meet evolving regulatory requirements, such as the European Union’s recent announcement that it wants AI-generated content to come with a “warning” label. According to Pearson’s data, farm product buyers would be the most impacted in the blue-collar job sector—some 27 percent affected per role hour at a task level. We asked Finkelstein just how Pearson arrived at the number. According to Finkelstein, all of the models utilized by Pearson weighed the future impact of 16 emerging technologies on each job’s tasks, considering the adoption rates for these technologies tailored by country and industry. The company extrapolated which jobs would be impacted the most (or least) by Gen AI by projecting what percentage of time could be saved per task by the year 2032 and incorporating economic models and industry-specific growth patterns. “At Pearson, our purpose is simple: to add life to a lifetime of learning. We believe that every learning opportunity is a chance for a personal breakthrough,” noted Finkelstein. “That’s why our (approximately) 20,000 Pearson employees are committed to creating vibrant and enriching learning experiences designed for real-life impact. We are the world’s leading learning company, serving customers in nearly 200 countries with digital content, assessments, qualifications, and data. For us, learning isn’t just what we do. It’s who we are.” Summing up, Finkelstein reiterated how Gen AI can help the agricultural industry. “Pearson’s workforce solutions can help agricultural businesses understand their workforce’s present and future needs, identify professional and skills development opportunities, and partner with employers and employees to future-proof their organizations in an evolving global economy.” Along with crop efficiencies, Gen AI technology in farming can help farmers reduce their GHG emissions. Andrii Yalanskyi/Stock/Getty Images Plus photo GENERATIVE AI
APRIL 2024 9 HUMAN RESOURCES Data from the Canadian Agricultural Human Resource Council (CAHRC) has indicated that by the year 2030, there will be more than 100,000 vacant jobs to fill in the industry. The CAHRC found there was a 15 percent increase in job vacancies when compared to the number of jobs in 2022 (the last year for which there is data) that could not be filled by Canadians and residents of Canada. The report, titled Sowing Seeds of Change, said this is due in part to Canada’s aging population, as more than 85,300 people—30 percent of the workforce—are expected to retire over the same period. Attracting top talent often remains elusive in the ag retail space. So, how will your ag retail operation attract top-tier professionals? Even when top candidates are identified, they often remain entrenched in their current positions, content with their roles, and not willing to make the switch to a new organization. You cannot just rely on salary as an enticement. As important as it is, monetary incentives are not the sole driving force for attracting talent to your team. Crafting a recruitment strategy that aligns with both the candidate’s expectations and the organization’s capabilities is paramount, which necessitates innovative and tailored approaches. Here are some strategies to attract and recruit top talent effectively: • Understand your talent fit: Each company has unique requirements and culture. Identify- ing your organization’s core values, vision, and culture is essential to targeting suitable candi- dates. Promote key things about your company culture to seek out enthusiastic individuals aligned with your brand identity. • Customize compensation and benefits: While competitive salaries are crucial, non- monetary benefits play a significant role in attracting top talent. Crafting a comprehensive compensation package tailored to individual preferences, including career development opportunities, flexible work arrangements, and lifestyle benefits, can be equally enticing. • Offer flexible work arrangements: Em- bracing flexible work options such as remote work and flexible hours appeals to modern professionals seeking work-life balance. Being able to adapt to evolving work patterns not only enhances employee satisfaction but also attracts top talent seeking agile work environments. • Create an optimal in-office work environ- ment: Designing a conducive in-office work- space with amenities and features that foster creativity and productivity is essential. Top tal- ents are selective about their work environ- ments, and investing in a comfortable and inspiring workspace can differentiate your organization. • Communicate company purpose: Articulat- ing a clear company purpose beyond profit motives resonates with top talent, particularly millennials. • Invest in employee development: Prioritize employee growth and development through training and career advancement opportunities. Demonstrating a commitment to nurturing talent enhances employee engagement and attracts ambitious professionals seeking per- sonal and professional growth. • Foster leadership development: Cultivate a culture of leadership by providing opportunities for skill development and autonomy. Encourage employees to innovate and lead by example, fostering an environment conducive to growth and leadership. • Personalize recruitment approaches: Adopt a personalized approach to recruitment, em- phasizing transparency and alignment with company values. While technology streamlines the process, a personal touch demonstrates genuine interest and commitment to potential hires. Unfortunately there’s no one-size-fits-all solution to recruiting top talent. To ensure your company is able to recruit the best people available, it requires creativity, adaptability, and a deep understanding of both organizational needs and candidate preferences. By implementing tailored strategies and remaining attuned to industry trends, organizations can effectively attract and retain top talent to drive success. Strategies to recruit top talent Craft tailored compensation packages, offer flexible work arrangements, and create an optimum work environment. By Denise Faguy, Associate Editor
10 THE CAAR COMMUNICATOR FERTILIZER TECHNOLOGIES It’s spring, a time when crop farmers and retailers think profoundly about fertilizer—the type, the amount of application, when to apply, and the cost of the fertilizer relative to its effectiveness. And yes, availability affects the type of fertilizer some retailers can offer their farmer clients. We could beat a horse to death and explain again that Russia’s war on Ukraine has caused a shortage of fertilizer, which in turn has increased the price of fertilizer around the globe. So even if you could get hold of what you needed, its cost was high, reaching a peak in May 2022. Ukraine, Russia, and its ally Belarus had all been major fertilizer suppliers to farmers worldwide. In 2020, pre-war Russia contributed 14 percent of the world’s urea and 11 percent of its phosphate. With Belarus, Russia delivered 41 percent of the global potash mined. If a country had no moral qualms about buying and selling from Russia and Belarus, it would probably receive its fertilizer at a relaxed price point. But for Canada, the US, and the hundreds of other countries that refused to do business with them, it meant a fertilizer shortage. Now Canada and the US aren’t slouches when it comes to producing fertilizer, and as such, they were able to make up the fertilizer shortages—quickly enough, though perhaps not quickly enough for those who bought high to ensure they had what they needed early in the planting season. Although Canada’s ag industry and all other sectors are facing blowback from the federal government to reduce its greenhouse gas (GHG) emissions by 40 to 45 percent by 2030, we point out happily that there is no mandatory reduction of fertilizer being placed on farmers. And the rest of the world noticed that, too. Fertilizer Canada proudly states that the Canadian fertilizer industry contributes $23 billion annually and over 76,000 jobs. Potash is Canada’s most important fertilizer, economically speaking. In 2022, Canada’s exports of potCanadian fertilizer and the new insect and lightning alternatives Could lightning-derived technology or cricket frass be a new fertilizer option for manufacturers? By Andrew Joseph, Editor Canada remains one of the world leaders in the production of potash, with Nutrien Ltd. leading the way. iamporpla/iStock/Getty Images Plus photo
APRIL 2024 11 ash doubled—more than doubled by 130.5 percent, compared to 2021. Unsurprisingly, Canada was by far the world’s leading potash producer in 2022, with a large amount produced in Alberta and Saskatchewan. The Canadian fertilizer manufacturing industry was valued at $7.6 billion in 2023. Rabobank is a Dutch multinational banking and financial services company headquartered in Utrecht, Netherlands, with offices worldwide, including corporate offices in Toronto. Rabobank has forecast an increase of close to five percent in total fertilizer consumption in 2024. It was noted that with fertilizer prices at lower levels and affordability being more positive, the world’s farmers are expected to increase sales into 2024. And that’s good news for every one of the Canadian fertilizer manufacturers. Ukraine, Belarus, and Russia have been at war for over two years now, which has curtailed their fertilizer production and shipments. There were shortages even before that during COVID-19, and before that, when flooding affected Louisiana fertilizer production, global fertilizer shipments took a hit. Canada’s fertilizer industry has smartly picked up the slack to provide fertilizer products for demanding customers worldwide. In 2021, Canadian fertilizer producer Nutrien Ltd., for example, increased its potash production by almost one million tonnes because of market demand. In 2022, Nutrien also increased its potash and nitrogen production. Although nitrogen and urea remain the industry’s largest products worldwide, phosphate also accounts for a significant portion of demand. While demand for fertilizer in Canada corresponds to farmer hectarage seeded and farmer incomes—a function of global crop prices—global prices depend on the strength (or weakness) of the Canadian dollar. Looking at data compiled by the research department of Statista (www.statista.com), Wesfarmers ranked as the largest fertilizer company in the world as of January 1, 2024, at US$42.29 billion, with Nutrien ranking second at US$24.22 billion. Wesfarmers is an Australian company that sells retail products, chemicals, and fertilizers. Wesfarmers is well-known for having made a big splash in the Australian and New Zealand markets. Nutrien is a Canadian company headquartered in Saskatoon, formed in 2018 when Calgary-based Agrium Inc. and PotashCorp (aka Potash Corporation of Saskatchewan) of Saskatoon merged. The company is one of the largest potash producers globally, with over 20 million metric tonnes of potassium chloride plant capacity at six Saskatchewan mines. Nutrien also has two large phosphate mines situated in the US. Statista said that in 2022, Nutrien had revenues of approximately US$37.9 billion, noting that the company had been showing a growing trend over the past few years. It is also the third-largest manufacturer of nitrogen fertilizer, following the American company CF Industries and the Norwegian chemical company Yara. Of course, Yara and CF Industries have entities of their own in Canada, too. Canada’s fertilizer industry will continue to grow domestically and internationally, especially in the US, as COVID-19 fears ebb away. Recently, we saw many farmers panic-buying any type of fertilizer they could get their hands on. It’s why there was a run on animal waste, causing a shortage there. It’s also why every retailer warned its customers to order early to ensure they were first in line to receive fertilizer, rather than putting in a request as needed. Although companies such as Nutrien could and has, in fact, picked up the slack and offer fertilizer as required, it also caused others to formulate their concepts of alternative fertilizer. It is not just done in case there’s a shortage, but rather as a green alternative to aid in the reduction of GHG emissions. Jiminy! That’s Cricket! We saw industry-wide complaints from farmers when the April 2022 peak fertilizer pricing for anhydrous ammonia was over US$1,600 (CDN $2,171) a ton before falling to $1,152 (CDN $1,563) a ton on August 25, 2022. As of February 2024, prices were even lower. MAP (monoammonium phosphate consists of phosphorus and nitrogen) had an average price of $809 (CDN $1,097) per ton, potash $509 (CDN $690)/ton, urea $527 (CDN $715)/ton, anhydrous $770 (CDN $1,044)/ton, UAN28 $334 (CDN $453)/ton, and UAN32 $390 (CDN $529)/ton. Sure Source Commodities LLC (aka SureSource Agronomy) of Petrolia, Ontario, has developed a new fertilizer source that will make your conscience feel good—unless you love or hate insects. Featuring pelleted frass—that’s what the company calls the excrement, exoskeletons, and discarded feed materials of crickets—the Kickin’ Frass product re-
12 THE CAAR COMMUNICATOR ceived regulatory approval from the Canadian Food Inspection Agency on February 20, 2024. SureSource said that cricket frass fertilizer provides growers with a sustainable fertilizer option that does not come at the cost of yield. SureSource takes pride in turning waste into something farmers can use to create healthier soil and healthy crops. The crickets are cultivated on a state-of-the-art, closed-environment farm belonging to Aspire Food Group. The facility was designed for high-quality insect farming in London, Ontario. And while Aspire grows the crickets for food, the leftovers got SureSource thinking. SureSource received a $200,000 Ontario grant in April 2023 as part of Bioenterprise Canada’s Fertilizer Accelerating Solutions and Technology Challenge. Bioenterprise calls itself Canada’s food and agritech engine. It is made up of a community of entrepreneurs, researchers, accelerators, and partners who are looking to drive Canadian innovation in our sector. Putting its money where its mouth is, Bioenterprise divvied up $2 million equally between the 10 Challenge winners, including SureSource. The other nine winners were ALPINE, BioLiNE Corp., CanGrow Crop Solutions, CRF AgriTech LP, Escarpment Renewables, Haggerty AgRobotics, International Zeolite Corp., ReGenerate Biogas, and Woodrill Farms. The Challenge‘s goal was to “transition alternative fertilizer solutions from research and validation phases to successful commercialization and market entry.” With the funds in hand, SureSource then met up with the Vineland Research and Innovation Centre to commercialize a pelleted fertilizer made from cricket frass. Located in Vineland Station, Ontario, Vineland considers itself a leader in the research and innovation of horticultural products and technologies. Along with Aspire Food Group’s foray into using insects as a food group for human consumption, trendy TV chefs are using them with wild aplomb, and not just for shock value. Many other companies in Canada have entered the insect-as-food sector. While this writer had long ago munched on stewed inago (whole stewed, but crunchy grasshoppers) and hachi-no-ko (baby bees, aka bee larvae) in his years living in Japan—they were delicious—the insect as food craze remains two-fold for North American consumers. Insects as food continue to be an oddity or “dare” for carnival eats and treats in such fare as scorpion lollipops or cockroach candy, or it’s found as a cricket powdered mixture secreted in grocery stores within the packaged organic foods section. There, usually in a stand-up resealable pouch, the cricket powder is hailed more as a protein substitute for meat. It’s not, but it is chock-full of protein. And it didn’t taste much like anything, unlike the Japanese delicacies. While North American consumers still struggle with their gag reflex when consuming insects, the US Department of Agriculture claims that the average person annually accidentally eats up to 1 lb. (453.6 grams) of flies, maggots, and other insects. People who wore masks during the COVID-19 pandemic and a full nose/mouth mask for their sleep apnea probably consumed less. But those who farm insects still hope that North American bug powder consumption will increase. Even if it doesn’t in North America, the protein substitute is hoped to be better accepted by those countries still considered “developing.” Regardless, SureSource has, with the source materials from Aspire Food Group, enough of a cricket waste source that can be easily repurposed with the help of Vineland as a commercially viable fertilizer pellet source. SureSource said that Kickin’ Frass would be of interest to organic and greenhouse farmers. They noted that in trials, the frass-fertilizer-grown lettuce had higher chlorophyll concentrations. While high levels of chlorophyll often indicate poor water quality, in the greenhouse with automated watering, this was a good thing, meaning that the plants were able to absorb easily with less work for the plant. The company has indicated that because frass stimulates biological activity and nutrient cycling exceptionally well, the trials showed that the frass fertilizer produced the same yields as similar carbon-based fertilizers and soil amendments, but at much lower application rates. In other words, Kickin’ Frass provided more for less. SureSource said that Kickin’ Frass will initially be available as a dry crumble in bulk, in 1,000 kg/2,204 lb. totes, and 25 kg/55 lb. bags. It also offers third-party custom blending and packaging. Wait, what’s wrong with green ammonia? Although the ag community may praise the HaberBosch process, which has for decades been a scientific method to produce ammonia from nitrogen and hydrogen and has helped manufacturers create fertilizers, eco-warriors often decry the science as being responsible for 1.8 percent of the world’s carbon FERTILIZER TECHNOLOGIES
APRIL 2024 13 dioxide emissions. Back in the 1870s, farmers understood that adding ammonia and nitrate to the soil could increase their crop yields dramatically. Sodium nitrate was mined in South America for use as a nitrogen fertilizer. So high was its demand that just 20 years later, there was concern that the increased global demand would deplete the nitrate deposits. Owing to those concerns and the fact that rival Great Britain (now the United Kingdom) held a stranglehold on the world’s nitrate supply, German chemists Fritz Haber and Carl Bosch developed the ammonia-making process in 1913. Although the German war machine of WWI corrupted the process to create nitrate explosives, after the war ended, the Haber-Bosch process was considered for agricultural purposes. Despite all the good that fertilizers have done for humankind, we still need to be mindful of the negative effects of improper usage. As CAAR members know, while fertilizers have played a key role in boosting crop yields and providing security for North American food producers, the success of the fertilizer industry and the larger yields have also contributed to drawing more people to our breadbasket and growing our national population. But with the good comes the environmental and climate challenges. One solution—along with the cricket carcasses— has been something touted as green ammonia. This is hydrogen produced by electrolysis and powered by renewable energy sources. Green ammonia is also called green hydrogen. Using green ammonia/hydrogen will reduce carbon emissions in ammonia manufacturing, but it doesn’t do anything about the roots of carbon emissions. As we know, after an ammonia-based fertilizer is applied to soil, the bacteria begin a nitrification process that converts the ammonia into nitrates. Nitric oxide, a GHG emission, is created as a by-product during this process. As well, ammonia gas is also released into the atmosphere via the volatilzation process, which contributes to air pollution. Some researchers are looking to move away from ammonia-based fertilizers and continue on the nitrate fertilizer path, but to do so in a more green and sustainable manner.
14 THE CAAR COMMUNICATOR However, the solution to mining nitrate is lightning, or at least a lab-created version of it. Capturing Lightning in a Bottle The world record for one person being struck by lightning at separate times is seven by Roy Sullivan, a US parks ranger who achieved the feat during his work hours between 1942 and 1977. All the strikes took place at Shenandoah National Park in Virginia. The tiny hamlet of Harrow, Ontario, is considered the most lightning-affected place in Canada, with 35.9 days a year of lightning strikes based on a 10year average. Of course, this data was from 2013, so we could have a crackling new winner. Although we have talked about lightning as helping form the next fertilizer resource, we should confirm that it is simulated lightning. And it’s from the UK. Debeye Ltd.—headquartered in Wiltshire, England, UK—has developed a modular and containerized system that uses air, water, and electricity to produce nitrate fertilizer. Dr. Burak Karadag, the Chief Technical Officer of Debye, developed the technology. And if creating such a technology sounds like rocket science, the truth is out there. Once upon a time, Karaday was a space engineer working on satellite propulsion. After becoming interested in the properties of lightning, he wanted to see if he could combine space and lightning and do something with both on Earth, tackling one of the planet’s bigger challenges. He was aware that a thunderstorm’s lightning can produce enough electrical energy to separate the nitrogen atoms in the air. Once the atoms are separated, they fall to the ground with rainwater. Combined with minerals in the soil, the fallen atoms formed into nitrates, a type of fertilizer. For him, that was global food security. He acknowledged that fertilizer played a key role but that global politics can cause shortages. Also, there is the negative issue of GHG emissions. The Debye proposition was that lightning hits water with enough energy to break it apart to create nitrogen dioxide, which is water-soluble and easily absorbed by plants. Using locally, renewably powered direct nitrogen capture technology could make this type of fertilizer a near-zero-emission process. Being able to produce it locally would also prevent global politics from limiting a country’s ability to obtain needed fertilizer resources. Currently (no pun intended), Debye is working with the York, England, UK-headquartered Agri-Tech Centres on an 18-month trial basis to examine the feasibility of the simulated lightning fertilizer product concerning lettuce crops. While the hope is that the applied lightning fertilizer will provide a similar yield to the contemporary fertilizers used by farmers, Debeye plans to provide a greener resource. Next, the company seeks to develop a one-kilowatt proof-of-concept prototype to quantify and compare crop yields and post-harvest properties for standard nitrogen fertilizer and fertilizer produced. If commercial viability is determined, the next step would be undertaking small-scale pilot projects in a farm setting within three years, subject to funding. FERTILIZER TECHNOLOGIES Although the technology is new, lab-formed lightning may be the answer to creating affordable nitrate fertilizers for farmers. BalazsKovacs/iStock/Getty Images Plus photo
APRIL 2024 15 Rage against the European Union Although the weeks-long protest and blockades in France may have halted on February 1, 2024, farmers in other European countries have taken up the cause with their protests. By Andrew Joseph, Editor E46AV22/iStock/Getty Images Plus photo EUROPEAN AG Like a revolution that took place 150 years ago, it began in France in 2024. Or did it begin as early as 2023? The issue: French farmers were upset with how little their efforts and products were being valued by their government. While it’s true that may be an over-simplification of things, we’ll get to the crux of the matter soon enough. During the protests, delaying tactics squeezed access in and out of France’s larger cities. It wasn’t a full-out denial of entry but rather just enough of a delaying tactic to be annoying and inconvenient. As such, two of France’s main farmers’ unions asked their members to end the protest that was blocking access in and out of Paris. Make no mistake, the French farmers did not enjoy harassing their compatriots. But their hold on the arteries going in and out of the capital appears to have worked, as the French government agreed to many of their demands. French Prime Minister Gabriel Attal, then just three weeks into the job, had failed with his initial attempt to quell the blockade that was starving Parisians of access to fresh fruits and vegetables. His second attempt went much better. The protests began in France after farmers realized the government ignored their concerns. French farmers were angry over rising input costs, increased taxes, falling income, and European agriculture policies. Regarding its European neighbours, French farmers were upset about their government purchasing too many agricultural products from Ukraine. Understanding that Ukraine is at war with Russia and can use financial aid, French farmers railed against its government for being too generous in flooding the market with Ukrainian agricultural goods, not to mention that they believe that much of the Ukrainian products to be substandard to expected French food quality. Even worse for the French farmers, the Ukrainian products were sold cheaper than their own. For French farmers, purchasing too many substandard and inexpensive Ukrainian agricultural products affected their livelihood while lowering the accepted food standards for consumers. The French farmers said they had been raising their concerns to the government for years, but to A German citizen carrying a sign that says “We support our farmers” as the country’s farmers demand a reversal on diesel fuel subsidy cuts. Astrid860/iStock/Getty Images Plus photo
16 THE CAAR COMMUNICATOR EUROPEAN AG finally get their point across, a tractor blockade at every roadway leading in and out of Paris caught the attention of not only the government but also other European countries facing similar shortcomings. Vive la France One of the most challenging things for anyone—especially a government—is admitting they erred. As France’s Prime Ministeer Attal explained, “Have we responded to the problem? Evidently not. Have we made mistakes? Clearly.” To apologize and correct the situation, Attal said the government wants French ag to come first— meaning French food products produced in France by its farmers. The French government also announced a $162 million financial aid package for its farmers. A financial aid package worth over $215,000,000 was promised for French livestock farmers. The Prime Minister also announced a ban on the import of fruit and vegetables treated with thiacloprid, which is an insecticide that may be harmful to honeybee populations. Thiacloprid has been banned in the EU since 2019, but Canada and the US allow its use, though only for limited purposes in Canada. Most importantly, the French plan—which follows the UK and EU’s plans—to reduce pesticide usage has been put on hold. While pesticide reduction is still being considered, the French government wants to implement an easier way for farmers to reduce pesticide usage while maintaining their yield quantity and quality. It just doesn’t know how to do that yet. It wasn’t all just blocking traffic; some farmers dumped manure in front of local government buildings, while others dumped rotting fruit and bales of hay in public squares. Although France’s Paris blockage is considered over as of February 2, 2024, 18 protesters were arrested on January 31. Those arrested tried to manoeuvre their ag vehicles to the Rungis wholesale food market south of Paris. Rungis is a food terminal where many supermarkets, stores, and restaurants purchase their ag supplies. After police turned back farmers from entering the 578-acre site, some continued to attempt to enter, resulting in those arrests. Still later that day, some protesters made it into the food terminal, resulting in additional arrests, taking the total to 79 people. Despite delaying French travel, the farmers appeared to have the support of much of the populace, with supportive car honking being the norm rather than angry horn blasting. Around the World Even as the French ag revolution sputters to a halt with the government capitulating to the farmers’ demands, farmers’ unions elsewhere in Europe are considering similar action. Farmer associations in Italy, Belgium, Germany, Spain, Greece, and the Netherlands are also considering action ahead of the EU elections in June. These associations are not just railing against their own governments; they are railing against the European Union’s agricultural plans. Farmers blocked the streets with tractors on February 1, 2024, in Brussels, Belgium. Then they had an even more violent argument with Belgian authorities, clashing with the police outside of the European Parliament building. Lots of thick black smoke from multiple fires marked the occasion. Why Brussels? Brussels is the headquarters of the European Union. Just hours later, the French farmer base reached an agreement with its government, which gave Belgium and the other European countries some hope that they might also see success. For Belgium, Spain, Italy, the Netherlands, et al., the ag communities are faced with European farm subsidies, land-use policies, transport permits, export quotas, and tariffs. While Canada and the US have these issues, too, European farmers are being hit harder. Then again, it’s all relative, isn’t it? France wasn’t the only country to be concerned that Ukraine’s agricultural products were undercutting its livelihood. Poland, Romania, Slovakia, and Bulgaria also expressed their apprehension. To help suffering Ukraine, the European Union had essentially shot itself in the proverbial foot. For Ukraine, the European Union waived duties on food imports and exempted Ukrainian truckers from requiring permits. Yes, it helped money-starved Ukraine, but it also undercut ag in other countries where Ukrainian products were sold. The above countries all complained that it wasn’t fair that they had to abide by the EU rules, but also that they now had to compete against cheaper goods and services from Ukraine. And, as France pointed out, substandard products. To make matters worse, Ukraine is not a member of the European Union.
APRIL 2024 17 Blockages in Germany (and France) began in mid-January 2024 after the countries announced they would phase out a diesel fuel tax break. In the two countries, it was hoped that the removal of the tax break would encourage more people to switch to an alternative fuel source, especially where vehicles are concerned, to affect better GHG emission results per the United Nations Paris Agreement. In Germany, the plan to remove the diesel fuel tax break angered those in the far-right parties. Realizing that Europe doesn’t want to see that again, Chancellor Olaf Scholz made concessions, noting that a car tax exemption for farming vehicles would be retained and cuts in the diesel tax breaks would be staggered over three years. Despite Chancellor Scholz stating his belief that extremists were fanning flames of discontent, German farmers opted to continue their blockade actions. The German farmers said they want a complete reversal of the diesel fuel subsidy cuts. Bargaining in good faith, Chancellor Stolz added that they will see “what else we can do so that agriculture has a good future.” We Need More Cowbell In Spain, it is fighting against the strict EU regulations and the perceived lack of Spanish government support for what Spainish farmers want. Spanish farmer groups say the EU environmental regulations cut into their crop profitability and force them to raise prices, increasing consumer costs. The country has been hit hard by drought in the 2022 and 2023 growing seasons, affecting olive and rice yields. St age S uti s f Dry Fertilizer Storage Liquid Fertilizer Storage Chemical & Seed Warehouses Oth S vices Design Services Site Development Full General Contractor Renovations & Remodels 6,440 Metric tons 55,000 sq. ft. 22,415 metric tons 800-367-3424 www.MarcusConstruction.com
18 THE CAAR COMMUNICATOR Spanish truckers moving goods between Spain and France said that about 200 trucks a day were delayed by the French blockade. Fenadismer, a Spanish transport association, noted that the delay caused an estimated CDN$10.84 million daily in losses for Spanish companies. Along with the standard complaint against cheaper Ukraine goods flooding Spain, the government wants to tell the EU to halt negotiations with the Mercosur trade bloc—an economic and political group featuring Argentina, Brazil, Paraguay, and Uruguay—and trade agreements with Chile, Kenya, Mexico, India, and Australia. Another Spanish complaint against the EU is that it has banned a pesticide farmers say they rely on to produce rice. Bomba rice is a type of pearly white short-grain rice used exclusively by the Spanish to make its national dish, paella. Because of the pesticide ban, Spanish farmers say the entire rice crop is threatened by a fungus. Spanish farmers took to the streets in early February with all their protesting ire. Unlike the French farmer demonstration, in which the ag community essentially blocked arteries in and out of the capital city of Paris with their tractors, Spanish farmers are doing things their way. On February 8, 2024, Spanish farmers from the northern city of Vitoria drove their tractors through its streets, disrupting traffic. Stopping in front of the Basque regional parliament, guarded by police in riot gear, the protesting farmers rang cowbells to disrupt the government proceedings. In Barcelona, dozens of farmers spent the night in the city centre before moving to surround the regional parliament buildings in the morning. The day before, convoys of tractors slowly moved on major highways, disrupting traffic flow, but were led by an armada of police vehicles. S ince Tuesday, Spanish farmers have blocked highways and ports in Malaga and Castellon on Spain’s east coast, too—this time physically blocking roads— some 15 main roads—and setting up tire fires across the roads and staging a sit-down protest. Although the sit-in was quickly ended by police and the small, fiery staging of tires across the roads was extinguished and dismantled, no arrests were made as the protest was loud but peaceful. But when protestors trespassed into multiple large goods distribution centres, police felt it necessary to detain a dozen people. Despite the protests and delaying actions, the government and retail associations in Spain said they did not expect imminent food shortages. No one expects the Spanish food shortages. More Protest Action on the Way Portugal also said it would organize protests, though no dates were proffered. The European Union also has plans to stem the tide of member dissent. The EU had previously created rules for its member countries’ farmers to follow to improve biodiversity while addressing climate change. Just before the European farmers’ revolt against the EU broke out, an early draft of a report from the European Union that was viewed by news agency Reuters claimed that member country agriculture must cut non-CO2 (carbon dioxide) emissions by 30 percent by 2040, whatever their country’s 2015 levels were, to comply with the overall climate goal. At least the EU was able to partially read the room of farmer protests across the continent and scrapped that “goal” from the final report draft. But the EU had other plans, including one where crop farmers had to leave four percent of their farmland fallow, not planting anything for one growing season. This “resting” of the soil was meant to prevent it from becoming weak and ineffectual. Yet, at the same time, the EU plan affects farm yield, meaning less farm income and less food for a hungry planet. Not admitting defeat, on January 31, the European Union announced it was “fallow” exempting its farmers for 2024. Farmers would still be able to receive EU farm support payments, but as a concession, they would need to grow crops without applying pesticides. And that’s exactly what the European Union wants, even though Spain is in the midst of railing against it. Fewer to zero pesticides is wanted as European farmers transition to organic farming. Conceptually, organic farming is wonderful, except it takes more land to grow the same amount of fruits and vegetables. The United Nations is also asking countries to produce more food while polluting less. The United Nations and all 196 agreeing countries following suit have not instructed their respective ag sectors how to do that. As in Canada, other governments around the world are requesting technical assistance from private businesses to produce products or methodologies to lower GHG emissions while increasing farm yield without increasing farmer input costs. EUROPEAN AG
RkJQdWJsaXNoZXIy NTc0MDI3