Drought hits Texas hard

 

There are drought conditions impacting 25 per cent of United States, mainly in Texas and the southwest, but growing conditions have been nearly ideal in Iowa and neighbouring parts of the Central U.S. corn belt.

The U.S. Drought Monitor reported on June 24, 2025, that 25.83 per cent of the U.S. and Puerto Rico were experiencing some degree of drought.

The percentage of crop acres experiencing some level of drought included 16 per cent of corn acres, 12 per cent of soybean acres and three per cent of cotton acres.

Crops experiencing higher levels of drought conditions included 39 per cent of the durum wheat acres, 29 per cent of barley, 25 per cent of spring wheat, and 20 per cent of winter wheat acres.

But in Iowa crops are off to a strong start this growing season, according to this week’s United States Department of Agriculture”s Crop Progress Report.

 USDA rated 85 per cent of the corn crop and 77 per cent of the state’s soybean crop as good to excellent.

                           

Agropur turn-around featured

 

Kate Helmore has written an article for the Globe and Mail about Agropur’s turnaround in the dairy processing industry.

She writes that “five years ago, Canadian dairy co-operative Agropur was in dire straits.

“The 2,700-member dairy giant was over-leveraged, shackled with unproductive assets and drowning in debt. 

“And then the pandemic hit, which only made things worse. Agropur sells large amounts of dairy products to restaurants across the country, especially pizza chains.”

Emile Cordeau took over as chief executive officer, changed strategy to focus on its core business, sold some parts and expanded into the United States where it now processes more milk than in Canada, albeit for lower revenues and profits than in Canada.

She writes that today Agropur’s debt is equal to two times EBITDA (earnings before interest, taxes, depreciation and amortization), down from eight times EBITDA five years ago. 

Sales are strong and the co-operative is now focusing on growth. But to do this, the Quebec-based dairy giant needs to go beyond the Canadian market.

Chicken farmers sue major processors

 

A group of broiler chicken growers has filed a federal class action lawsuit accusing nearly 30 poultry companies of conspiring to suppress grower pay and eliminate competition through a long-running “no-poach” agreement and coordinated data sharing.

The lawsuit was filed Oklahoma and named industry giants Tyson Foods, Pilgrim’s Pride, Perdue Farms, Koch Foods, Sanderson Farms plus dozens of other vertically integrated processors. 

The farmers claim the companies — referred to collectively as “the Cartel” — used an unwritten agreement not to recruit or hire one another’s contract growers, thereby depressing compensation and locking farmers into exploitative, high-debt contracts.

The growers also alleged the companies used Agri Stats, a third-party data firm, to exchange confidential pay information and monitor compliance with the no-poach pact. These practices, they argued, effectively eliminated competition for broiler grow-out services nationwide.

According to the complaint, integrators used rigid “tournament” pay systems to rank growers against one another and limit payouts. Even top performers were paid less than they would have earned in a competitive market because their bonuses were tied to a suppressed base rate shared across companies.

The complaints are familiar to anyone who has watched the documentary Super Size Me 2, Holy Chicken! 

Creator Milton Spurlock, who died last year, documented his experiences establishing a fast-food chicken restaurant and featured a farmer who was contracted to one of the major chicken processing companies and was black-listed for his co-operation with Spurlock.

The lawsuit cites a May 2024 class certification decision in In Re Broiler Chicken Grower Antitrust Litigation (No. II) as the moment plaintiffs gained access to previously undisclosed evidence supporting their claims. The growers now seek treble damages under the Sherman Antitrust Act and Packers and Stockyards Act, along with a jury trial.

Federal prosecutors have previously stated that no-poach agreements among employers are per se illegal under antitrust law.

 

Del Monte Foods is filing for bankruptcy protection as consumers increasingly bypass its products for healthier or cheaper options.

For 139 years it has been a major, familiar and beloved company marketing canned fruits and vegetable.

Del Monte has secured $912.5 million US in debtor-in-possession financing that will allow it to operate normally as the sale progresses.

"After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods," chief executive officer Greg Longstreet said in a news release.

In Canada it is now owned by Kraft-Heinze after Nabisco merged with them and after it had purchased the Canadian rights to Del Monte.

Help available for small businesses and rural organizations

 

 

The Sarnia-Lambton Economic Partnership is advertising new funding to help municipalities, Indigenous communities, not-for-profit organizations, and small businesses.

 The Southwestern Ontario Development Fund (SWODF), administered by the Ministry of Economic Development, Job Creation, and Trade, provides support for projects and investments to existing businesses, municipalities and not-for-profit organizations for economic development in southwestern Ontario.

The objective is to provide financial support and services to help companies to grow their business, improve productivity, invest in innovation and skills development, pursue new markets, generate broad positive regional economic impact, and create new good, sustainable jobs.

 Under the Business Stream, eligible companies who have at least 3 years of operations and employ at least 10 people, commit to creating at least five new jobs, invest at least $500,000 in the project, and be located in southwest Ontario, may apply for repayable, interest-free contributions of up to 15 per cent of eligible projectcosts, to a maximum of $5 million per project.

Application period 20 runs from June 19, 2025, to September 17.

The Rural Ontario Development Program, administered by the Ministry of Rural Affairs and successor to the former Rural Economic Development (RED) Program, has been modernized with $20 million in cost-share funding over two years. 

Through four distinct streams, Economic Diversification & Competitiveness, Workforce Development and Attraction, Community Infrastructure Enhancements, and Business

Development, the program supports projects that remove barriers to growth, build local capacity, attract and retain investment and jobs, strengthen regional partnerships, and convert community assets into economic drivers.

Rural municipalities, Indigenous communities, local services boards, not-for-profit organizations, and rural small businesses employing one to 20 workers may apply for grants ranging from $10,000 to $250,000 with provincial contributions covering 35 to 50 per cent of eligible costs depending on the stream. 

The first intake opened closes on September 24.

Proposition 12 survives

 

 

California’s proposition 12 has survived a challenge because the Supreme Court has declined to hear an appeal filed by Iowa.

The law sets minimum housing standards, including a ban on sow gestation stalls.

While the law applies in California, it has nation-wide and international impact because all meat and poultry marketed in California must comply.

Meat packers don’t want to have separate supply chains for California so require suppliers to comply with proposition 12 standards.

That includes pigs and pork from Canada.

New Environment Farm Plan launching

The fifth edition Environmental Farm Plan (EFP) will be available to

Ontario farmers starting July 14.

It is up to date on regulatory requirements, the latest science on best management practices and has links to new tools and new areas of focus such as biodiversity and climate change.

It was prepared by federal and provincial agriculture staffs and is supported by  the Ontario Federation of Agriculture, Christian Farmers Federation of Ontario, Farm & Food Care Ontario, and the Ontario Soil and Crop Improvement Association which administers the program.

“We encourage all farmers to complete the updated edition. An EFP provides farmers with the opportunity to assess their farm’s environmental impact using new tools that ultimately improve long-term productivity, profitability and sustainability,” said Melanie Hunter,field services manager for the soils and crops association.