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USDA Announces New Opportunities to Strengthen Organic Market

The Organic Market Development Grant (OMDG) Program, managed by the Agricultural Marketing Service (AMS), will provide up to $75 million in competitive grants to eligible entities, including business entities that produce or handle organic foods, non-profit organizations, tribal governments, and state and local government entities. The program is designed to expand and improve markets for domestically produced organic products, such as investing in infrastructure and developing new consumer products using rotational grains.

The second program, the Organic Certification Cost Share Program (OCCSP), helps organic producers cover organic certification costs. The Farm Service Agency (FSA) increased the cost share amount to the maximum allowed by statute, covering up to 75% of costs associated with organic certification, up to $750 for crops, wild crops, livestock, processing/handling, and state organic program fees (California only). OCCSP will cover costs incurred from Oct. 1st, 2022, through Sept. 30th, 2023. Producers and handlers can apply for OCCSP through their local USDA Service Center, and the FSA will accept applications from state departments of agriculture to administer OCCSP.

These two programs build on several other USDA initiatives under the Organic Transition Initiative, such as the Natural Resources Conservation Service’s $75 million assistance for conservation practices required for organic certification and the AMS’ Transition to Organic Partnership Program (TOPP), which builds mentorship relationships between transitioning and existing organic farmers to provide technical assistance and wrap-around support in six U.S. regions.

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Planet Extends Partnership With AXA Climate

Planet Labs PBC, a provider of Earth observation data and insights, has announced extending its partnership with AXA Climate. This Paris-based company provides consulting services to help businesses and public entities adapt to climate change and biodiversity loss. The collaboration is aiming to develop parametric insurance products to protect farmers against the effects of drought on their livelihoods.

AXA Climate offers drought insurance services that estimate crop yield and losses and automatically trigger payouts within a few days of the end of a risk period. Planet Lab’s satellite data allows AXA Climate to provide reliable, up-to-date soil moisture data worldwide and even for remote regions. The partnership has enabled AXA Climate to offer high-quality index insurance coverage services for farmers and cooperatives, helping them combat threats of drought to agriculture worldwide.

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Local Bounti Corporation Reports Q1 2023 Financial Results

Local Bounti reported sales of $6.7 million, a significant increase from the $0.3 million reported in the same period of the previous year. Local Bounti’s gross profit for the quarter was $0.3 million, with an adjusted gross margin percentage of approximately 33%, excluding depreciation, stock-based compensation, business combination-related integration costs, and other non-recurring items.

The company’s net loss for the first quarter of 2023 was $23.5 million, compared to a net loss of $25.8 million in the prior year. Local Bounti reported an adjusted EBITDA1 loss of $7.4 million, excluding $6 million in stock-based compensation, $4.3 million in interest expense, $3.5 million of depreciation and amortization, and $2.4 million of business acquisition and strategic transaction due diligence and integration related costs and other non-recurring items.

Craig M. Hurlbert , Co-CEO of Local Bounti, expressed his satisfaction with the results saying: “First quarter results were consistent with our expectations and reflect the commissioning phase of our Georgia facility. This facility is an important lever for our business to achieve the anticipated growth acceleration in years to come as we complete the full integration of our vertical ‘Stack’ system.”

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AppHarvest Q1 2023: Significant Sales Growth & 2023 Guidance Reiterated

AppHarvest Inc. (APPH) has reported robust financial results for the first quarter of 2023. The company’s net sales surged to $13.0 million in Q1 2023, a significant jump from $5.2 million reported in the first quarter of 2022, marking a staggering increase of over 250%. The revenue also represents nearly 90% of the company’s net sales for the entire fiscal year of 2022.

Despite the remarkable revenue growth, the company posted a net loss of $33.6 million and a non-GAAP Adjusted EBITDA loss of $23.2 million in Q1 2023, which aligned with expectations. These figures compare to a net loss of $30.6 million and a non-GAAP Adjusted EBITDA loss of $18.0 million in Q1 2022.

AppHarvest Founder and CEO Jonathan Webb said, “Under Tony Martin ’s leadership, we’re already seeing improved performance in the first quarter with net sales of $13 million.” He added that Martin focuses on a data-driven approach for optimizing production and driving more efficiency across the four-farm network.

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Village Farms International Inc. International Reports Strong Q1 2023 Results

Village Farms International, Inc., a Vancouver-based company, has released its financial results for the first quarter of 2023. The report highlighted the continued strong growth in the company’s Canadian Cannabis business, significant improvement in its Fresh Produce business, and the launch of its cannabis products in Germany.

According to Village Farms’ CEO, Michael A DeGiglio , the first quarter of 2023 was a solid start for the company, with the Canadian Cannabis business delivering a 40% year-over-year growth in retail branded sales. This growth outpaced the overall market growth and maintained the company’s number two market share position nationally. The company was also one of only three of the top 10 producers to expand market share in the same period last year.

Furthermore, the company achieved its 18th consecutive quarter of positive adjusted EBITDA, with a year-over-year increase of 95%. The CEO credited the company’s ongoing focus on production efficiency and cost management for this success.

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Bayer Q1 2023: Strong Growth in Crop Science Outside Glyphosate Business

The Bayer Group had a slower-than-usual start to 2023, according to its Q1 quarterly statement presented by CEO Werner Baumann . However, the company’s sales figures were similar to the powerful results in the prior-year quarter. 

Baumann explained that while the glyphosate business’s normalization accelerated, the effect was primarily counterbalanced by growth in other segments of the Crop Science business.

In the Crop Science division, the sales decreased by 1.1% to €8.351 billion, adjusting for foreign exchange and portfolio effects. However, excluding the glyphosate business, Crop Science sales increased by approximately 8%. In addition, the division reported double-digit percentage increases in the Europe/Middle East/Africa and Asia/Pacific regions. On the other hand, sales in Latin and North America declined due to lower volumes.

Read more here.