Farm to Market: How Global Politics Shape Ohio Agriculture

The global marketplace affects everyone—especially our farmers. As international trade tensions rise and tariff talks dominate headlines, Ohio's agricultural community finds itself at the center of the storm.

Wendy Osborn, Director of Market Development at Ohio Corn and Wheat, joins us to unpack what these developments mean for Ohio's vital grain industries. As the seventh-largest corn producer in America, Ohio plays a critical role in both domestic and global food systems. The United States leads the world in corn production, with Mexico standing as our largest buyer and Canada purchasing 40% of our corn ethanol exports.

Our conversation reveals how today's farmers face a double challenge: navigating potential trade disruptions while simultaneously managing historically high production costs. Modern farming operations require significant investment in advanced technology, equipment, and land—costs that continue to climb with inflation. When trade barriers arise, the impact on farmers' bottom lines can be devastating.

The episode also highlights exciting innovations in corn usage, including bioplastics development and other petroleum-product replacements. Despite current challenges, Ohio's strong transportation infrastructure and domestic livestock markets provide some stability for grain producers.

Listen now to gain a deeper understanding of how global politics affect your food supply and the farmers who grow it. Subscribe to Central Ohio Matters for more insights into the issues shaping our region's future.

Transcript

Speaker 1 0:02

Welcome to Central Ohio Matters , the podcast where we delve into the issues that shape Central Ohio's future . Each episode features in-depth conversations with local leaders , visionaries and changemakers driving progress in our region . These conversations offer insights into the challenges our communities face and the solutions being crafted to move them forward . Here are your hosts , michelle Gatchel and Ryan Rivers .

Meet Wendy Osborn from Ohio Corn & Wheat

Speaker 2 0:41

Welcome everybody . We have a great episode for you today , you know , Ryan , with all of the talks about tariffs on different products , and I thought it would be really interesting to talk to someone who would understand what this could mean for Ohio farmers . So Wendy Osborne is the Director of Market Development at Ohio Corn and Wheat .

Speaker 3 0:57

Wendy , thank you so much for joining us . It's a pleasure to join you today and talk about the important topic of trade and tariffs to join you today and talk about the important topic of trade and tariffs .

Speaker 2 1:10

Yeah , and just in general for Ohio corn and wheat . How big of an industry is that for Ohio ?

Speaker 3 1:14

Ohio is a really important producer of corn and also wheat . Just to give you some insight on the corn production for the United States the United States is the largest producer of corn in the world , so we're important . Corn is important really for domestic use , but also we play an important role in really feeding and fueling the entire world .

Speaker 2 1:38

And what are some of our ? What are some of the reciprocal countries that we trade with ?

Speaker 3 1:44

What are some of the reciprocal countries that we trade with ? So we trade with quite a few countries , but our most important markets are . Our biggest markets are is Mexico , canada , japan and Colombia . Those are four largest markets . So you've been hearing a lot in the media about the relationships and the USMCA negotiations , partnerships and the USMCA negotiations , and so Mexico is our largest buyer of all ag products , but also an important . They're also our largest buyer for corn . And then Canada is actually our largest buyer of corn ethanol . About 40% of our corn ethanol exports go to Canada . Wow , okay .

Speaker 4 2:23

Wendy . So where does Ohio rank as far as production in the United States ?

Speaker 3 2:28

Yeah , Ohio is an important market . We are actually the seventh largest producer of corn in the United States .

Speaker 2 2:37

Corn season is upon us , you know . Are they planted already or are they in the process of ?

Speaker 3 2:46

know ? Are they planted already or are they in the process of ? Our farmers are just getting ready to start planting in Ohio . So in the south of Texas those farmers already have started planting . But Ohio will be starting planting here in the next few weeks and then into early May .

Speaker 2 2:59

Okay , and so let's talk a little bit about the fact . With you have three organizations that are part of Ohio Corn and Wheat . Let's talk about the checkoff programs first , because I think these are very not unique programs , but programs that a lot of people unless you're a farmer don't know that exist .

Ohio's Corn and Wheat Production Overview

Speaker 3 3:20

So the Ohio Corn Checkoff for the Ohio Corn and Wheat is a strategic alliance of three organizations the Ohio Corn Checkoff , the Ohio Wheat Checkoff and then the association . So the association collects membership dues and that is really focused on policy driven corn checkoff and the wheat checkoff . For every bushel of corn and wheat that's sold here in Ohio Money . A very small portion of that goes into the corn and wheat checkoff and we really focus on education , research and then also working to make to help farmers become more profitable . So addressing issues and focusing on trade , we develop relationships with other countries . A lot of our work with Ohio is done through the US Grains Council and the US Wheat Associates and so a portion of those funds then go to those countries and the US Grains Council and the US Wheat Associates . They have offices all over the world , so they're based in several other countries and they're really developing those issues , working on removing some of those trade barriers and building relationships with our customers across the world .

Speaker 4 4:37

What are some of the challenges , wendy , today , that the industry faces ?

Speaker 3 4:43

Well , like many other industries and many Americans , we've really dealt with the rising costs of inflation and also rising costs of land . So that's a really important topic because we have seen an increase in overall cost of production . So , again , that's why it's really important for these trade negotiations . Different than , again , the last time we had a trade war is that we have seen increasing cost of production . So any challenges that we have in trade or price is going to have a significant impact on our farmers' overall bottom line .

Speaker 2 5:25

With technology these days . How has that , how have you guys seen technology improve our farmers lifestyles ?

Speaker 3 5:34

Technology has been at the forefront of every farming operation . There's so many advances in precision farming , which has helped farmers to be more raised crops , more sustainable . They're able to apply chemicals and fertilizer much more on a precise way , as well as really again just advancing the labor as well . It's not been as , or they've seen changes in the amount of acres that they can cover , so there's been a lot of advantages of technology . The challenge sometimes can be , though , that technology also increases overall cost as well , so it does increase the cost . Today , it's a lot more expensive to put out an acre of crop than it was 10 or 20 years ago .

Speaker 4 6:27

What about broadband expansion ? I'm sure that plays a big role

Industry Challenges and Technology Advances

Speaker 4 6:31

in the future of farming here in Ohio .

Speaker 3 6:34

Yeah , we've seen a lot of efforts being made to increase broadband , a lot of initiatives on the policy side , so that's really helped . But that's really a critical issue Again , as we continue to get more technology and get more efficient , we're going to you know as well more access to those capabilities .

Speaker 2 6:59

I saw a news article , I think , yesterday , talking about corn . Farmers were going to plant more cornfields than soy or others . Why is that ?

Speaker 3 7:11

So the WASDE report just came out yesterday talking about the changes in corn production . We've seen actually soybeans on the soybean side the trade implications have been really impacted and so farmers usually , especially in Ohio and across the Midwest , they plant corn and soybeans on a rotating basis . So typically just for soil health and also for production efficiencies , they either plant corn and soybeans and usually on a rotation . We are seeing , we have seen this past year a little bit of increase in corn prices , but the biggest challenge has been the decline in soybean prices . So that's encouraged more farmers to plant corn versus soybeans because of the decrease in prices for soybeans . So they try to make those decisions based on profitability and what the market looks like for corn and soybeans . But soybeans has been significantly impacted . A lot of our soybeans here in the US goes to China and we've seen an increase in competition both in corn and soybeans from Brazil . So that's also impacting these trade and tariffs .

Speaker 2 8:30

Yeah , interestingly , one of the I would say adjacent articles to that was the fact that Canada was going to start planting more corn just because of everything that's going on .

Speaker 3 8:38

So they don't need as much from us from us , and that's again something that we're keeping an eye on as we look at these tariffs and issues , because corn is such an important again . United States is the largest producer of corn and we also are the largest export of corn , but we've seen increased competition from Brazil . They've really expanded the amount of acres that they're able to produce and they're becoming a large trading partner , especially with China . A lot of Brazil corn is now going to China , and so we've had some challenges in that market . But as , again , some of these tariffs are being enacted , other countries are maybe looking for other solutions , and so we've worked really hard to develop those relationships with these buyers and we're excited and want new , more new opportunities and more train deals . But it could have negative ramifications if other countries are looking for alternatives , specifically if they're looking at planting more corn in those countries , and we don't want to again lose that market .

Speaker 2 9:47

Yeah , let's talk about things that corn , like we grow an acre of corn and what is the main thing that corn is used for these days .

Speaker 3 10:03

So a large portion of our corn is goes to feed livestock and also produce corn ethanol . So again , trade , trade is really important . But then a lot of our corn is going to feed livestock here , both domestically and then also internationally . So as we've seen more countries eat more meat and , you know , increase their economic as they increase their ability to purchase more meat and use , have more meat in their diet , they've also increased their corn demands to feed their livestock so that they can feed that , have more protein in the diet for those other countries

Environmental Benefits and Research Initiatives

Speaker 3 10:42

. And so , and then the other is for corn ethanol , which is really corn ethanol is really good for the environment . So again , domestically we've had an increase in overall domestic consumption of corn ethanol . But also internationally we've seen ethanol exports actually hit a record by last year and we continue to see the opportunity for corn ethanol being used worldwide .

Speaker 2 11:11

What are some of the other small grains that we flourish in ?

Speaker 3 11:18

I can't speak to this specifically . I really focus on wheat . Okay , just to note , though , wheat is really important in the United States , and specifically to trade , because 50% of US wheat is exported to other countries .

Speaker 4 11:32

Wow , okay , great exported to other countries . Wow , okay , great . What about current , right now as far as the labor market ? Are there challenges there or what , right now kind of , is the situation as far as finding adequate labor and be able to have all the necessary hands on deck ?

Speaker 3 11:51

I wouldn't be able to speak to that specifically because typically that is most of the ag market is definitely feeling the impacts of that , but it's more on horticultural products or the animal livestock industry that's facing the biggest challenges on for corn and wheat farmers just because of the technology and the equipment that they've used , not as significant as again they've seen rising labor costs . But I know the animal industry and the horticulture industry has felt impacts and that's been one of the main topics for them .

Speaker 2 12:33

We spoke with the Soybean Council last week week and they were saying that with their checkoff money they started a whole research and development of their own to find uses to for soy that they could their farmers could you know grow from . If you will , um , do you guys have access to a research and development personally through the association ?

Speaker 3 12:56

So we work closely . The Ohio Corn Checkoff has a collaboration with many of the other state checkoffs and we work closely with the National Corn Growers Association to promote new uses for corn , for corn , so we have a Consider Corn Challenge where we look to invest in companies that are looking for new opportunities and new ways to utilize corn . Specifically , a lot of companies are focused on making bioplastics with corn , and so there's a lot of an advantage and a lot of opportunities , but we collaborate with the National Corn Growers Association to do that .

Speaker 2 13:42

And new uses , things that you're seeing that haven't really kicked off but are coming up .

Speaker 3 13:51

Well , I think the most important thing and that again , I didn't know before I started Ohio Corn and Wheat is that there's a lot of our corn or other bio-based products to replace those petroleum-based products . So there's a lot of opportunity . A lot of cosmetic companies and others are really interested and so they're working on those new technologies . Again , there's a lot of startup companies that are looking for those new technologies , but we feel that corn can be a great replacement for those petroleum-based products .

Speaker 2 14:43

So on the state level , the Ohio level , what's some legislation or policies that you guys are working on right now ?

Speaker 3 14:52

Luke Crumley could speak to this a little bit more . He's our policy person . But just to our main focus right now is on getting E15 passed . So currently today we are there's about 10% ethanol that is mixed into gasoline and so we're really pushing for those higher blends of ethanol . It's better for the environment and then also a huge cost saving to the general public , and so we're looking to focus on higher blends of ethanol and getting legislation passed on E15 .

Speaker 2 15:28

I want to just kind of set kind of an idea for people and this is going to sound very basic to you but , like growing up you know , you always heard knee high by the fourth of July right for the corn , and I'm curious when do we start harvesting this and get it out to the markets ?

Speaker 3 15:51

So typically harvest begins in September . So every year Ohio is a little bit different as far as planting and we're just really dependent on the weather . So planting typically happens in April and May and then harvest usually begins in early September . Again , sometimes that depends on when the planting occurred or when we can get in the fields . In Ohio we especially deal with challenges as far as weather and rainfall . We're grateful to have a lot of rain here in Ohio and moisture , but our farmers , it just really is dependent on the weather . So typically then the harvest runs through October and sometimes November if we've had a really wet fall .

Speaker 2 16:39

So tell me a little bit about as a farmer yourself . You have first-hand knowledge about . You know how this all works . Last year we had a pretty rough weather year . How did that affect the corn and wheat crops ?

Speaker 3 16:57

Yeah , well , specifically in southern Ohio I know my county that we farm in , and also eastern Ohio , was really impacted by the drought . Fortunately , ohio was able to get some drought assistance that helped many of our farmers . We're very fortunate . That doesn't sometimes make it whole , but it does help , you know , survive another year and get to another year . But again , I think this is something . I grew up on a farm and farmed my whole entire life . It is something that we deal with as farmers . There's a lot of new technologies , a lot of advancements that have been made in corn seed and wheat seed , a lot of advancements that have been made in corn seed and wheat seed , and so it's something that , as the years continue to progress and as our management practices continue to improve , we also we are dependent on the weather , but there's a lot of advantages and a lot of things that helped mitigate some of those impacts , and so we've seen it's been a lot better than it was 20 years ago .

Speaker 4 18:04

And Wendy , you're in Southern Ohio . Do you work with , is there partnerships , any universities or educational programs students ?

Speaker 3 18:13

We work and partner a lot with the Ohio State University on research specifically for our corn and wheat checkoff . So vomitoxin has been one of the main issues that Ohio has seen and faced the challenges . So we work pretty closely with the Ohio State University on that research . So anytime that we have an issue or something that needs addressed , we partner pretty closely with the Ohio State University on that research .

Speaker 2 18:45

You know you have a background in lending and I'm curious , you know , for Ohio farmers and just the family farm in general , you mentioned the fact that it's almost more , it's getting higher prices just to farm as opposed to what is being spent on the crops , right ? So how are farmers able to make it work ?

Speaker 3 19:11

Well , it's really important , especially at times like this , that they understand and can manage their cost of production and can manage their cost of production .

Speaker 3 19:24

So land costs , specifically in Ohio , have have increased , that whether you own the land , or also rental rates have increased , and so farmers have to continue to manage those , those overall costs .

Speaker 3 19:32

As far as equipment costs also tend to be a really higher cost , and some of those don't fluctuate from year to year , but they do vary between farmers . And so managing those costs and then higher input costs , seed costs , fertilizer costs those typically are dependent on the year and so I know this year one of the things that most farmers are keeping attention on is the fact that we do import a lot of fertilizer , specifically potash . 90% of our potash is imported and about 80% of that comes from Canada . So they're keeping an eye on what these tariffs could mean and if potash would be included in those tariffs . So I think farmers have to and they've learned to continue to manage those overall rising costs , while , again , sometimes we as an industry are more price takers and the commodity is dependent . They do focus on marketing their grain and making sure that they can get the highest profit and the highest price . But managing those costs of production is going to be extra critical this year .

Speaker 2 20:49

Is there an alternative for potash if it keeps growing in pricing ?

Speaker 3 20:55

Well , we're hoping that and we've had many discussions with the national corn growers association um has been really involved in and making sure that they've had communication with the administration . We've seen signs that um , because of the questions that the administration has asked um , possibly exempting that or having a reduced tariff if that comes to um comes to the forefront . But they know it's a , it's a really critical for farming . So we are um hopeful and again trying to stay abreast of the issue to make sure that potash um those expenses uh are not farmers are not impacted by um any tariffs on on potash . But it's kind of a wait and see . I I know that there's going to be some announcements here over the next couple of weeks and so trying to digest that information and making sure that farmers are nimble and thinking through some of those issues and what that could mean for some of the farmers .

Speaker 2 21:58

With all the uncertainty , though , in general , what's the state

Tariffs and Their Implications for Farmers

Speaker 2 22:02

of corn and wheat in Ohio ?

Speaker 3 22:05

I'm again , hopefully optimistic . We really would like to have more trade agreements , which could be . You know , we're hoping that out of what comes out of this is that some of these trade barriers do get removed and that we are hopeful . But it's definitely a critical time . Just again , with the rising input costs and overall expenses , prices have been challenged , especially on soybeans , and that's affecting also our corn farmers , because our corn farmers also do raise soybeans and so there's a lot of uncertainty . It's going to be critical for our farmers this year just to again stay abreast of what the issues are , make sure that they have a good marketing plan and are nimble and thinking through their expenses so that they can be profitable .

Speaker 2 22:55

And is Ohio well equipped as far as importing or exporting ? I mean , do we have good trucking routes and shipping routes and that thing ?

Speaker 3 23:04

Ohio is very fortunate that we have the rail access rail going to Mexico .

Speaker 3 23:12

We also have the Mississippi River , which a lot of our grain is moved down the Mississippi . So in Cincinnati area we have a lot of barges going out of there to move down to the port of New Orleans where it goes on vessels across the world . And then we have the Maumee River . That doesn't see as much movement but has certainly some movement going out the Lake Erie , out Lake Erie for transport as well . And then we have a really good infrastructure , a lot of highways , so to make it accessible for our trucks as well . But rail and barges and moving out the getting it on vessels is a much more efficient way of moving grain and so we again fortunately in Ohio have a lot of access to a lot of different markets . The other advantage for Ohio is that we have a large livestock industry , so we have a lot of pork producers , a lot of layers and I think we're number two in ag production , so we have a lot of our corn being going to feed livestock as well and make corn ethanol .

Speaker 2 24:27

Nice , nice , anything else . Like you , you would want Ohioans to realize and know about the industry .

Speaker 3 24:36

The most critical thing for right now . I think that , and then the month . That's really important for everyone to watch because I think it's affecting all industries , the agriculture industry specifically , because we're so reliant on exports . But the thing is really to watching on these tariffs and how they could impact on the overall price . I think it's going to be really important again just also making sure that our farmers and communities understand that Mexico is our largest buyer of all ag exports and they also are the largest buyer of corn , so our relationships with Canada and Mexico are super critical in these negotiations .

Speaker 2 25:21

So , wendy , if people want to find out more about the Ohio corn and wheat , how can they find out ?

Speaker 3 25:27

There's several avenues for our for those to find out more information about Ohio corn and wheat . So if they visit ohiocornandwheatorg , they'll see the top news stories and information , as well as all the information on what our checkoffs are doing , as well as the association . But I also encourage people to follow us on social media LinkedIn , facebook , instagram , all those . We're all on those stations . And then we have also our Colonels podcast , where we share news and information that's impacting our farmers as well .

Speaker 2 26:02

Yeah , I checked that out and it's great information . So check it out , people . Well , Wendy , I want to thank you so much for joining us and sharing a little bit about Ohio's corn and wheat industry and where we are and what we are expecting this year . Thanks for having us .

Speaker 4 26:21

Thank you , Wendy .

Speaker 2 26:23

That concludes this episode of Central Ohio Matters . Wait till you hear our next episode . You know kind of following along these same lines and how the tariffs are affecting our supply chains . We're going to talk to some commodity dealers about what they're seeing already as far as the implications of these tariffs and how they're having to adjust shipping , which can be huge for overseas things , what countries they're dealing with . All of that it's a fascinating conversation and you're going to want to join us for our next episode of Central Ohio Matters where we talk to Brian and Max from Possible and Company . Alright , have a great week .

Speaker 1 27:09

Thank you for listening to this episode of Central Ohio Matters . Be sure to like , share and download . We cover government policies , healthcare challenges , housing and business developments , transportation solutions , education and innovation . If you know of a good story we should be talking about , go to the radio station website and fill out a contact form Directed to Michelle Gatchel , host of Central Ohio Matters . Thank you ,