Milling & Baking News - October 22, 2019 - 30

Organic Update

Organic soybean prices lower
in August-September
KANSAS CITY - The average price
for organic food-grade soybeans declined from the prior two-month period in the August-September period,
while average prices for corn and
wheat were untested, according to
Mercaris, the organic and non-G.M.O.
trading platform and market information company.
Organic food-grade soybean prices
averaged $22.11 per bu in the latest
two-month period, down $1.07 from
June-July but up 55c from April-May.
The August-September price was up
7c from $22.04 per bu in the same period a year ago.
"Organic soybean prices were lower again over the August-September
time period, pulling nearly even with
last year's level," said Ryan Koory,

director of economics at Mercaris. "The
organic crop harvest is just beginning
across much of the United States, and
bouts of rain and colder weather at
the start of October will likely slow its
pace. With reduced acres, and expectations of lower yields, U.S. organic soybean production is set to decline.
"However, the reduced production
outlook isn't being reflected in prices
at the moment. Purchasers have indicated heavily pursuing contracts
for new crop delivery over the spring
in an attempt to get ahead of harvest
supply and price risks. As a result, it
appears the market is long at the start
of the fourth quarter of 2019, leading
to minimal market activity and price
support this fall. As crops are pulled
in from fields and supplies materialize,

Farmland in Nebraska to be
converted to organic production
MCLEAN, VA. - Gladstone Land
Corp. has acquired approximately
3,850 acres of farmland located in
Nebraska that will be converted into
organic farmland by 2021. Gladstone
said the farms, located in the Nebraska
counties of Hayes and Hitchcock, currently grow corn, soybeans and edible
beans. Gladstone said it paid approximately $14.7 million for the farmland.
"This is an exciting acquisition for
us," said Bill Hughes, managing director of Gladstone Land. "We are entering a new farming region in the U.S.
and beginning a new tenant relationship with Granstrom Farms, one of the
leading organic growers in Nebraska.
Having a presence in this area will not
only give us a great new relationship
with one of the top growers in the

state but will also give us exposure to
potential new crop types for our farmland portfolio.
"In addition to the 17 new irrigated
circles, we will be constructing a stateof-the-art grain drying and storage

facility to safely handle and protect
the integrity of the organic grain on
the farms. The company is making a
concerted effort to acquire or develop
more organic crops within its farmland
holdings, and it believes these acquisitions demonstrate its commitment to
farms growing healthy foods."
David Gladstone, president and

Anthony Sepich named Pipeline
Foods chief executive officer
MINNEAPOLIS - Anthony Sepich
has been named chief executive officer
at Pipeline Foods. He succeeds interim
c.e.o. Robert Hogden, who will continue in his role as managing director
of private equity with Amerra Capital
Management, L.L.C., as well as his
position on the board of managers for
Pipeline Holdings.
Mr. Sepich brings more than 20 years
30 / October 22, 2019

Milling & Baking News

of experience in the grains, oilseeds, salt,
cocoa and chocolate industries to the
supply chain solutions company. Most
recently, he was senior vice-president of
Compass Minerals' salt business. Before
that, he spent nearly 20 years at Archer
Daniels Midland Co., including a 5-year
post in Austria focusing on European
corn milling products.
"We are thrilled to have Anthony join

market activity is expected to pick up
again, adding bullish support to prices."
Last month Mercaris forecast 2019
U.S. harvested organic soybean acres
will decline 8% year over year, despite a 7% increase in overall organic
field crop harvested area at 3.1 million
acres.
Trading volumes were too low to
generate price quotes for organic foodgrade corn and wheat, including hard
red winter, soft red winter, hard red
spring and durum for the August-September period, Mercaris said.
Mercaris is a comprehensive source
of market data and online trading for
feed-grade and food-grade organic
and non-G.M.O. commodities based
in Silver Spring, Md. For more information visit www.mercaris.com. Sosland Publishing Company runs this
food-grade organic grain price report
in the second issue of Milling & Baking
News each month. MBN
chief executive officer of Gladstone
Land, said Gladstone plans to assist
farmers in their transition from conventional ground to organic certification.
"The organic certification is expected to result in the farmer receiving
premium prices for the crops, which
will, in turn, make the farm more valuable to the company," he said. "The
company seeks to own farms growing
healthy foods, and with the demand
for organic food continuing to grow,
the acquisition of these farms is evidence of its continued focus on this investment strategy."
Gladstone Land is a publicly traded
real estate investment trust that owns
farmland and farm-related properties
located in major agricultural markets
across the United States. The company owns approximately 85,000 acres
in 10 different states, valued at about
$836 million. MBN
the team," said Eric Jackson, founder and
chairman of Pipeline Foods. "His extensive specialty commodity experience,
both domestically and internationally,
will play a critical role in helping us grow
our business and continue to be a leader
in the organic and specialty space."
Pipeline Foods develops sustainable
supply chains in agriculture, with a focus
on non-bioengineered/non-G.M.O. and
organic grains, oilseeds and ingredients
for food and feed. The Minneapolis-based
company also provides professional expertise to farmers and food companies. MBN
bakingbusiness.com / world-grain.com

http://www.mercaris.com http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - October 22, 2019

Table of Contents for the Digital Edition of Milling & Baking News - October 22, 2019