This document provides an analysis of the agriculture output and equipment sector for August 2023. It includes discussions of commodity prices, crop estimates, energy prices, food prices, farming incomes, top farming states, food processors, and the role of technology and government in farming. Key points covered include rising input costs challenging farmers, preliminary crop estimates for Canada, volatility in oil and diesel prices impacting farm expenses, and opportunities for data and automation to help address issues in the agriculture industry.

1. Agriculture Output
and Equipment
Sector - Analysis and
Commentary –
August 2023
PAUL YOUNG CPA CGA
SENIOR CUSTOMER
SUCCESS MANAGER AND
BUSINESS STRATEGIST
SEPTEMBER 13, 2023

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – ESG and Sustainability Policy
Development and Reporting
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: paul_young_cga@outlook.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/

3. Agenda
 North American AG Equipment Sales
 Commodity Prices
 AG Prices – Canada
 Preliminary Crop Estimates – Canada
 Oilseeds
 Energy Prices
 Carbon Tax
 Food Prices
 Hospitality Sector
 Farming Income
 Top Farming States
 Food Processors
 Technology and Farming
 Government and Farming
 Debt
 Rail Car Loading
 Analytics and Reporting
 Summary

4. North American Equipment Sales
Source - https://www.aem.org/Market-Data/

5. Key Commodity Prices (BMO)
Source – BMO Economics
PRESENTATION TITLE
2/11/20XX
5

6. Diesel
Cost
SOURCE -
HTTPS://WWW.BARCHART.CO
M/FUTURES/CASH/ENERGIES-
INDEXES/RETAIL-DIESEL

7. Food
Prices
SOURCE -
HTTP://WWW.FAO.ORG/WORL
DFOODSITUATION/FOODPRICE
SINDEX/EN/
7
PRESENTATION TITLE 2/11/20XX

8. Hospitality Sector
Blog – How data and AI can drive better outcomes for the Food Distribution Sector -
https://www.linkedin.com/pulse/how-data-ai-can-drive-better-business-outcomes-food-sector-paul-young

9. Blog – Food Prices

10. Canada
Farm
Income

11. USA Farm
Income

12. Top Farming States
Source - https://www.statista.com/statistics/196114/top-10-us-states-by-number-of-farms/

13. Food Processors
 Source - www.fao.org or https://www.globenewswire.com/news-release/2019/09/04/1910664/0/en/Food-Processing-Market-to-Exceed-4-Trillion-
by-2024-Key-Trends-Analysis-Opportunities-to-Succeed.html

14. Plastic Greenhouses / CO2
 35% of China’s vegetables come from plastic green houses -
https://www.nextbigfuture.com/2021/03/plastic-greenhouses-provide-35-of-chinas-vegetables.html
 Greenhouse farming - https://gulfnews.com/uae/environment/popularity-of-greenhouse-farming-
options-on-the-rise-1.842642
 South Korea - https://www.hortidaily.com/article/9306173/overview-vegetable-horticulture-in-south-
korea/
 Global Market - https://www.databridgemarketresearch.com/reports/global-plastic-greenhouse-market
 Ontario/Greenhouses - https://windsor.ctvnews.ca/ontario-government-investing-3-6-million-toward-
innovation-projects-in-the-greenhouse-sector-1.5285128
 NZ and the Middle East - https://www.freshplaza.com/article/9307955/new-zealand-has-a-huge-tech-
opportunity-in-the-middle-east-s-growing-horticulture-industry/

15. Technology and Farming
 AI is transforming farming - https://www.forbes.com/sites/cognitiveworld/2019/07/05/how-ai-is-transforming-
agriculture/#1fa34bec4ad1
 AI and farming - https://customerthink.com/the-role-of-artificial-intelligence-in-agriculture-sector/
 IBM and farming - https://farmtario.com/news/ibm-expands-artificial-intelligence-platform-into-agriculture/
 RPA and Farming - https://blog.accubits.com/robotic-process-automation-in-agribusiness/
 IBM and Expert Farming - https://www.prnewswire.com/news-releases/farmplan-using-ibm-pairs-to-predict-blackgrass-
weed-before-it-damages-crops-301151067.html
 AG App - https://www.techrepublic.com/article/farming-assistant-app-agrolly-wins-ibms-call-for-code-contest/
 Smart farming - https://farmingfirst.org/2020/10/transforming-agriculture-through-smart-farming-from-data-ownership-
to-open-data/
 Telecom/Farming - https://ca.finance.yahoo.com/news/agriculture-analytics-market-reach-2-133100885.html
 Blockchain and Food Protection - https://blog.trustbix.com/how-blockchain-can-support-food-supply-chain-management

16. Government / Farming
 Elimination of trade barriers - https://www.slideshare.net/paulyoungcga/what-is-next-for-for-global-
trade-protectionism
 More emphasis on local supply chain management solutions -
https://www.slideshare.net/paulyoungcga/tranformation-of-supply-chains
 Tax fairness and regulatory reforms - https://www.slideshare.net/paulyoungcga/does-the-world-need-
a-wealth-tax
 Government provides direct subsidies and/or loans to farmers
 Government needs to revisit all their programs to ensure various programs are efficient and effective -
https://www.slideshare.net/paulyoungcga/market-food-protein-market-analysis-and-commentary or
https://www.oag-bvg.gc.ca/internet/English/parl_lpt_e_934.html or https://thetyee.ca/Opinion/2016/03/08/BC-
Carbon-Tax-Failure/
 Automation can help with automation of audits - https://www.slideshare.net/paulyoungcga/internal-audit-and-
performance-base-auditing

17. Farm Debt
Source -
https://www.portageonline.c
om/ag/agriculture-news-
mb/fcc-economist-says-
farm-debt-under-control-
watch-for-higher-interest-
rates

18. USA Farm Debt
Source -
https://farmpolicynews.illinoi
s.edu/2021/06/farm-lending-
remains-strong-in-2020-
american-bankers-
association-report/

19. Car Loading / Rail - USA

20. Car Loading / Rail
SOURCE – STATS CANADA

21. Better crisis and risk Management
through use of Geospatial Data
https://www.linkedin.com/posts/rwlord_river-flood-highest-since-2001-in-miss-valley-activity-
7062395985708085249-YI2M?utm_source=share&utm_medium=member_desktop
Leverage data and AI as part mitigating geopolitical risks and threats is becoming increasing important for
both private and public sectors. The ability to leverage geospatial data with business analytical tools like
Cognos Analytics and Planning Analtyics can lead to better risk mitigation as part of safeguarding assets.
Blog – Geospatial data with Planning Analytics - https://www.linkedin.com/posts/paul-young-
055632b_geospatial-data-with-planning-analytics-activity-7062420172178915328-
l43Y?utm_source=share&utm_medium=member_desktop

22. Autonomous Finance
Autonomous finance is a data-driven or algorithm-driven process that employs software to automate
financial operations and management.
Source - https://learn.g2.com/autonomous-finance
Key Stats
Consider the following statistics:
 89% of financial services leaders believe that the first financial services companies to deploy autonomous
finance will carve out a large competitive advantage.
 60% of financial institutions believe that autonomous finance enhances personalisation capabilities,
which improves their customer experience (CX).
 As things stand, over 50% of the following finance and accounting activities are mostly or partially
automated: processing of transactions, procurement, preparation of financial reports, and
planning/forecasts, etc.
Source - https://www.receeve.com/blog/autonomous-finance-drives-collections-success or Blog – What is
Autonomous Finance - https://www.linkedin.com/pulse/blog-what-autonomous-finance-paul-young

23. What is GAP Analysis
A gap analysis is the process that companies use to compare their current performance with their desired,
expected performance. This analysis is used to determine whether a company is meeting expectations and
using its resources effectively.
A gap analysis is how a company can recognize its current state—by measuring time, capital, Revenue,
operational, planning, ESG, and HR planning—and compare it with its target state. By defining and analyzing
these gaps, the management team can create an action plan to move the organization forward and fill in the
performance gaps.
Source - https://www.investopedia.com/terms/g/gap-analysis.asp
Additional Link - https://www.slideshare.net/paulyoungcga/how-gap-analysis-can-better-support-business-
decisions

24. What is cost to Serve Modeling
As more businesses have come to understand the customer-driven side of the supply chain, a new framework has
emerged to answer questions about how the cost of sales, services, and last-mile logistics affect the bottom line.
This new way of thinking about profitability in the supply chain is commonly known as cost to serve.
https://www.coupa.com/blog/supply-chain/cost-serve-framework-for-profitability-and-customer-excellence
Key to cost to server modeling
1. Understanding business drivers
2. Strong data governance and management structure
3. Establish key metrics and targets.
4. Revamping business processes as part of overall cost planning and control
5. Revamping sales process including managing of price changes, contract pricing, etc.
The cost to serve model can be used for either the public and private sectors as part of overall managing of the
fiscal cycle including revenue, costs, capital, ESG, and human resources management.
Additional links: https://www.slideshare.net/paulyoungcga/profitability-and-costing-solutions-office-of-finance-
and-cfo

25. The importance of Revenue and Operational
Planning
Blog – The importance of Sales and Operational Planning
Integrating sales and operations planning (S&OP) into an enterprise-wide process creates a robust picture for
executive decision-making. It ties together demand, supply, and financial planning as part of a company’s master
planning. Sales and operations planning is essential to the supply chain because it creates a view for future operations
and holds people accountable for data that impacts your bottom line.
Beginning with projected demand, S&OP looks at available resources and operational performance to understand the
landscape when making financial decisions. The process involves strategic and tactical plans.
Source - https://www.coupa.com/blog/supply-chain/what-sales-and-operations-planning-sop-and-how-it-can-benefit-your-
business
Five reasons why Sales and Operational Planning is important:
1. Balances Supply and Demand.
2. Cross-functional involvement.
3. No Surprises.
4. One set of Numbers.
5. Key Business Communication Tool.

26. Summary
 Farmers continue face issues with input costs
 Improving crop and food production is a focus area by both the private and public sectors
Blog – Analysis of the Agricultural Equipment and Farming Sector – August 2023
Summary:
Details
The FAO's price index, which tracks globally traded food commodities, averaged 121.4 points in
August, compared to a revised 124.0 points for the previous month. The July reading had
initially been reported as 123.9, representing a rebound from a two-year low in June.
The August figure was the lowest since March 2021 and marked a 24% decrease from the all-
time high reached in March 2022 following Russia's invasion of Ukraine.
The overall index decline was driven by decreases in the prices of dairy products, vegetable oils,
meat, and cereals, despite a significant increase in the FAO's rice benchmark to a 15-year high
due to Indian export restrictions
Source - https://www.iasgyan.in/daily-current-affairs/world-food-price-index-23
Sources and links:
1. USA farming income expected to decline in 2024 - https://www.agriculture.com/farm-income-
to-plateau-after-this-year-s-decline-says-think-tank-7968449
2. Farm Waste - https://www.3blmedia.com/news/waste-only-waste-if-we-waste-it-demystifying-
anaerobic-digestion
3. Biodiversity and farming - https://www.nfuonline.com/updates-and-information/boosting-
biodiverstiy-and-the-bottom-line/
4. The Future of Agriculture and Organic Farming - https://goodmenproject.com/featured-
content/the-future-of-agriculture-and-organic-farming/
5. Plant-base - https://www.earth.com/news/increasing-plant-based-food-production-would-have-
extremely-positive-impact/
6. Technology - https://www.verticalfarmdaily.com/article/9557900/new-technologies-to-help-
canadian-growers-deal-with-surge-of-price-of-inputs/
7. Urban planning and safeguarding food supply - https://brooksbulletin.com/hope-for-
preservation-sprouts-from-farmland-politics/
8. Green Transition and Farming - https://www.france24.com/en/live-news/20230913-von-der-
leyen-vows-fair-green-deal-for-eu-farms-and-industry
9. Food price and supply - https://www.nasdaq.com/articles/harsh-weather-is-keeping-food-prices-
elevated