Ag-Leader Insights - Volume 1
Welcome to Ag-Leader Insights by Grown Climate Smart
Ag-Leader Insights is your quarterly look into the evolving world of American agriculture—where innovation, market trends, and leadership converge. Curated by Grown Climate Smart, this newsletter highlights stories from the field, insights from forward-thinking producers and agribusinesses, and analysis of policies and practices shaping the future of the food and ag supply chain.
In each issue, you’ll find:
Expert perspectives on regenerative agriculture and sustainability
Market dynamics and supply chain breakdowns
Policy updates with real-world implications
Firsthand grower spotlights and interviews
Emerging tools, technologies, and business models in agriculture
Whether you’re a grower, food company, investor, or ag professional, Ag-Leader Insights offers a practical and informed perspective on where the industry is headed—and who is leading the way.
Published: 6/11/2025
In this edition of Ag-Leader Insights, we explore how farmers can capture a greater share of the value chain, the economic and environmental power of biofuels, and the evolving opportunities in regenerative ag. We also spotlight Kyle Zwieg of Zwieg’s Maple Acres, who shares how technology, conservation, and family are shaping the future of his seventh-generation farm.
Chris DeLong
President - The DeLong Co., Inc.
A Farmers Share of the Dollar
The National Farmers Union claims that only $0.06 of a box of breakfast cereal - that sells for $7.49 at a retailer like Walmart - returns to the grower that supplied the corn used in its production. To see how this number compares to others in the industry, we can track the corn from the table back to the grower, observing the net margins of each link in the supply chain. The net margin is a metric that measures the percent of every dollar of revenue that a company keeps as profit. Retailers like Walmart make their money by purchasing large quantities of food from processors, moving it, storing it, and selling it at a premium. Their publicly available financials show a net margin of 2.75%, generating a $0.20 profit on each $7.49 box of cereal sold. Publicly traded logistics companies and warehouses, paid to manage the transfer of this cereal from the processor to the store, make net margins of ~5%. Kellogg, a cereal processor, makes a net margin of ~2% - keeping $0.15 of profit for every box of cereal. The elevator, facilitating the transfer of corn from farmer to processor, takes 2-4%. Using the NFU’s figure, the farmer takes about 1% of the box of cereal as profit.
| Net Margin Across the Supply Chain | |
|---|---|
| Farmer | ~1% |
| Elevator | ~2-4% |
| Kellogg | ~2% |
| JB Hunt | ~4.6% |
| Walmart | ~2.75% |
Source: Net margin estimates based on analysis of each company’s publicly reported financials, including annual 10-K filings submitted to the U.S. Securities and Exchange Commission.
How can farmers keep a greater share of the products they are essential in the production of? Integration. Direct-to-consumer operations cut out many of the middlemen, opting to take on the time and money associated with processing, transporting, and marketing their product in exchange for the chance at capturing a greater percentage of the products value. The fewer stops from farm to table, the greater the percentage of the value the farmer can retain. Of course, this comes with all sorts of risk. Large processors ensure the delivery of a consistent, efficiently produced product to retailers across vast geographical areas. Small-scale, farm-to-table processors generally can’t offer the same guarantees to their customers. Costs associated with even entering the market can be steep – the regulatory approval processes, specialized equipment, and marketing needed to find customers. Outlook is positive, however. With more consumers starting to prefer locally grown, identity-preserved, and specialty products over brand-name, mass produced foodstuffs, there is likely to be ever-increasing demand for direct-to-consumer agricultural operations. Sustainable and carbon-conscious farming practices also promise to be a space in which these operations can differentiate themselves. As the purchasing power of younger generations grows, Harvard Business Review has predicted, “sustainability is soon to be a baseline requirement for purchase.”
As input costs increase and pressure on farmers grows, the chance to retain a greater percentage of the value of farm production offers potential relief. By integrating production, processing, transportation, and marketing, growers can potentially earn themselves a greater slice of the proverbial pie, while capturing rising demand for specialty and sustainable products.
Jordan Monier
Sustainability Manager - Marquis Energy
How Biofuels Fuel the Ag Economy
The biofuel economy also adds value beyond the pump. From every bushel of corn processed, we produce not only low-carbon fuel but also high-protein animal feed (DDGS), corn oil, and even industrial-grade CO₂.. That’s full kernel utilization, maximizing output, minimizing waste, and capturing value at every step in the production process.
Meanwhile, the economic ripple effect touches rural towns across the country. Biofuel plants create thousands of good-paying jobs, inject billions of dollars into local economies, and attract infrastructure investment, providing value to school districts, small businesses, and main streets in farm communities.
Now, as policymakers look toward unleashing American energy and leadership in the global energy space, the connection between farming and energy has never been more important. With the right policies in place, like the 45Z Clean Fuel Production Credit, continued opportunities for corn demand open up new markets and revenue streams for the next generation of producers.
The American farmer has always risen to the challenge of feeding, fueling, and leading the world in agricultural production. Biofuels are one of the clearest ways we can turn our nation’s energy dominance into rural opportunity. In supporting American farm families, strengthening domestic energy, and building a sustainable future for future generations of agriculturalists, the American biofuel industry must remain strong.
America’s agricultural roots run deep, particularly evident in the biofuel industry. Every bushel of corn grown in the U.S. corn belt represents a building block for a thriving domestic energy market that fuels our cars, strengthens our economy, and supports the hard-working farmers who grow it. The biofuel industry is an agricultural success story. For decades, biofuel has offered farmers a protected and growing market.
As we approach the 20th anniversary of the Renewable Fuel Standard (RFS) in 2025, it’s worth reflecting on what this bipartisan policy has delivered. The RFS has created a stable market for corn growers and biofuel producers, reducing our dependence on foreign oil while opening up a dependable source of corn demand for rural America. Today, nearly 40% of the U.S. corn crop is used to produce biofuels. This demand creates price stability, provides revenue diversification, and builds resilience into rural economies. In times of trade disruptions or uncertain commodity markets, biofuels offer farmers a vital outlet - one tied directly to American energy security.
Kyle Zwieg
Owner, Operator - Zwieg’s Maple Acres
Grower Spotlight
Can you share a bit about your farm history and how you got started in agriculture?
My interest in agriculture started at a young age growing up on a small, 7th generation dairy in the town of Lebanon, WI. Our family purchased the original farmstead parcel, which is still the base of operations, from the state of Wisconsin in 1856. As a young man I was given the opportunity to work alongside my father and grandfather gaining knowledge and perspective around the concepts of operating a farm. By about 20 years old I knew I wanted to pursue a career in an agricultural field but was unsure of what or where it would be. At that time, I took a full-time position with a local well-respected dairy, and with the owners encouragement I attended UW-Madson's Farm and Industry Short Course Program. Both of those choices proceeded to lead me down a path of development that would bring me to my present day managing and owning role at Zwieg’s Maple Acres LLC.
What does your current operation look like today — crops, livestock, acres, practices?
Our farm consists of 2100 acres of Corn, Soy, Wheat and Alfalfa. We have been 100% no-till since 2008 and implement a minimum 3 year crop rotation on all acres we run. All grain acres are cover cropped and we utilize many additional conservation practices. The farm also has a 70 cow robotically milked dairy herd which gives our operation balance and increased profitability.
Have you made any recent changes or adopted new practices that you're excited about?
Our focus from an operational perspective has been on autonomy and minimizing labor per acre and animal. We're able to supply all the farm's labor through 3 full time family members and are excited to have done this through a variety of technological advancements. The robotic milking system is the cornerstone of these efforts but we have recently added automated progesterone testing to eliminate herd checks and reproduction syncing programs. The implementation of drone applications for fungicide and cover cropping has also been a significant factor while simultaneously decreasing machinery costs per acre. We are also excited about the continuation of adopting an open source auto steer/turn platform for all equipment that side steps subscription fees and 75% of initial hardware costs.
What motivates you to keep going, season after season?
Working with family and preserving an option for my sons, nieces or nephews to grow up, or potentially work on our farm is most definitely my core motivation. My parents, wife, brother and I have been given such a fun and worthwhile opportunity to conduct our lives in this manner and it would be wonderful if our kids had the same ability if they so choose.
What are your goals for the future of your farm, whether it’s growth, succession, or sustainability?
Our ultimate goal is creating a business that our kids view as worth stepping into and not forcing the next generation to be involved. I think we can do this by being open to new practices and continuing to focus on autonomy and labor reduction. I hope to continue to see slow growth in our land base and an increase in the quality of our practices. I think a reduction in herbicide use is a goal we should all be striving for and I can see a variety of opportunities in the near future to move us in that direction.
If you could share one piece of advice with other farmers or the next generation, what would it be?
Remember that total dollars of owned equipment rarely correlates to total dollars of net profit. You can have a very profitable, sustainable farm that doesn't have big, or new equipment as a young operator. Have an open mind, take calculated risks, and don't worry about what your neighbor is doing.