A Weekly Update from the Red River Farm Network
Monday, April 04, 2022
Waiting Game- As the calendar turns to April, we know the spring planting season can’t be too far away. It happens every year. We’re all anxious for green grass, fresh dirt and the sensory overload of spring. USDA is also ready for spring with the issuance of its first weekly crop progress report for the season coming out this afternoon. Mother Nature isn’t cooperating with a chance of snow in the region later this week. We’re thankful for the moisture and will be out checking on crop conditions very soon.
Farm Income Growth Expected This Year – Agricultural lenders across northern states are closely watching the rising commodity prices. “As a result of those high prices, we expect strong farm income growth through the end of 2022,” said Joe Mahon, regional outreach director, Federal Reserve Bank of Minneapolis. “All indications show strong farm income continuing this year. We’ve seen strong growth in land prices and the Russia-Ukraine war is having a major impact on commodity prices.” Mahon thinks the biggest challenges facing northern farmers is the greater uncertainties surrounding those prices. “It’s not just that prices are higher, but they’ve been more volatile over the past few years. Farmers are good at managing risk, but it may be extra challenging now with rising input costs and what happens when commodity prices go down.”
The Cost of Doing Business is Rising – Advance Trading Market Risk Advisor Tommy Grisafi says the economy will keep the commodity markets volatile. “Interest rates aren’t going to go up, they went up and they went up fiercely,” said Grisafi. “Yield curves are inverted with the two-year, five and seven-year (notes) higher than your ten-year note.” That is increasing the cost of doing business in agriculture. In addition to market fundamentals, like weather, Grisafi pays attention to the outside markets. “I definitely spend a lot of time looking at crude oil, money flow, the U.S. stock markets, and I still watch things like gold, silver and copper.” Grisafi spoke Tuesday at the Premium Ag Solutions Ag Day event.
More Corn, Fewer Soybean Stocks – USDA’s National Ag Statistics Service says corn stocks in all positions as of March 1 totaled 7.85 billion bushels. That’s two percent more than one year ago and in line with trade expectations. U.S. soybean stocks are 1.93 billion bushels, 24 percent more than last year and above trade estimates. All wheat stocks are estimated at 1.02 billion bushels, down 22 percent from one year ago. Read the quarterly stocks report.
Surprising Corn Acreage Forecast – One of the most anticipated USDA reports of the year shocked the grain trade. The biggest surprise in the prospective plantings report is the U.S. planted corn estimate at 89.5 million acres. That’s 2.5 million acres lower than trade expectations. The USDA is forecasting a record U.S. soybean crop at nearly 91 million soybean acres. That’s slightly higher than trade expectations. All wheat planted acres are forecast at 47.4 million, slightly lower than trade expectations. Read more.
Corn, Soybean Acreage Shifts in Tri-State Region – Minnesota and South Dakota farmers plan to plant five percent more soybeans this spring. The soybean acreage estimate for North Dakota is down three percent. Soybean acreage is forecast to increase by 350,000 acres in Minnesota. South Dakota soybean acreage is up 250,000 acres from last year’s planted crop while North Dakota acreage is down by that same amount. Corn acreage is record high in South Dakota, up just 50,000 acres from last year. Minnesota corn acreage is down seven percent and North Dakota declined 12 percent.
Input Costs a Factor in Planting Intentions – Rising input costs likely contributed to the bigger than expected decline in corn planting intentions. “If you didn’t lock in fertilizer prices last fall, you’re looking at higher prices now,” said Bryan Doherty, senior market advisor, Total Farm Marketing. “At the start of this war, I think farmers started to lean toward other crops. It looks like soybeans were the biggest recipients of the switch.” Doherty says the expected U.S. soybean plantings at nearly 91 million acres is a lot. “Carryout could have just gone up from 50 to 100 million bushels in soybeans and down in corn by 350 million.”
Spring Wheat Acreage Nationwide Down Two Percent – North Dakota remains the largest spring wheat producing state with the planted area forecast at 5.2 million acres. That’s down five percent from 2021. Minnesota spring wheat acres are up four percent from last year and South Dakota is up one percent.
Acreage Numbers Will Change – Standard Grain President Joe Vaclavik says the spring wheat market should benefit from a friendly acreage report. “Spring wheat acreage was 600,000 below the average trade guess. That’s a big deal when you’re only talking 11 million acres,” explains Vaclavik. “Anything USDA said is secondary to what’s going on in the Black Sea Region.” Vaclavik says the USDA numbers will change and the information should be taken with a grain of salt.
An Eye-Opening Report – While the acreage numbers for corn and soybeans flip-flopped from last year, Global Commodity Analytics and Consulting President Mike Zuzolo says spring wheat acres were the surprise. “Acres were lower than the trade estimate. Winter wheat is really tight, down less than one percent, but it’s still the tenth lowest planted acreage estimate on record.” Forty-three of 48 corn planting states expect lower acres. “This wasn’t just about fertilizer prices; it was about Tar Spot and diesel prices. There were big states that cut corn acreage according to the report, Illinois, Indiana, Iowa, Kansas, Minnesota, Nebraska, North Dakota and Wisconsin. All of these are top-tier corn states.”
Acres & Shares: Beet Stock Values – Last week, there were 40 American Crystal Sugar Company beet shares brokered at $4,500 per share. This information is compiled from all the beet stock broker websites at the end of the trading week by Acres & Shares. Please note, not all broker websites are updated on a timely basis and there may be a data lag some weeks.
ABC-Anything But Corn – North Dakota corn acreage is expected to decline significantly this year. Advance Trading Risk Management Advisor Tommy Grisafi says the rising fertilizer costs are a major factor. “Clients in North Dakota have been telling me for months that it would be ABC–anything but corn,” said Grisafi. “Not everyone up here is set up to grow corn, especially $7 corn with high input costs.” Grisafi is featured in ‘The Bullpen’ interview on the Red River Farm Network YouTube channel. The commodity markets are extremely volatile, especially with rising inflation. “We are on the verge of hyper-inflation for certain sectors of the economy. Some of this inflation is due to the COVID hangover and now you throw Ukraine and Russia into that.”
ND Specialty Crop Acreage Surges Higher – Specialty crops, including canola, barley, sunflowers and flax is stealing acres away from corn, soybeans and spring wheat in North Dakota. The planted area for canola in North Dakota is expected to break the all-time record set last year. That’s a one percent increase, which represents 10,000 more acres of canola. North Dakota barley acreage is forecast to increase 28 percent. Oil-type sunflower acreage in North Dakota is up 17 percent and confection sunflower acreage increased a whopping 85 percent. The planted area for flax increased 32 percent from 2021. North Dakota dry bean acres are down two percent.
Farmers Business Network Releases Planting Intentions Survey – Farmers Business Network released a survey-based report on planting intentions. The report forecasts corn acreage at 91.1 million. If realized, this would be more than two million acres below last year. The biggest decline is projected in North Dakota. FBN Chief Economist Kevin McNew says the alternative crops in North Dakota are getting more attention. “North Dakota is a unique state in that they have a multitude of crops they can grow, not just corn and beans. They have the benefit of spring wheat, feed barley, and pulse crops which are also at really strong levels. We saw from the farmer’s we surveyed was a wholesale change out of corn.” FBN is projecting 11.2 million acres of spring wheat. “I think the biggest surprise that we found was farmer’s unwillingness to go hard into spring wheat. There was a lot of built-in expectations from the market that spring wheat acres would be increasing. Contrary to that, we see spring wheat acres going down.”
Planting in the Transition Zone – All eyes are on the Dakotas and Minnesota. The area is considered a transition zone for acreage. NDSU Extension Crops Marketing Economist Frayne Olson says acreage decisions in North Dakota depend on location and what will be competitive. “It’s not only the relative crop competitiveness, but also soil moisture conditions. There’s more optimism in the eastern portion of the state due to moisture than there is in the western part of North Dakota. In most farmer’s minds, the two big winners will be soybeans and canola.” Olson says the harder choice for farmers may be deciding between corn and wheat. “Before the Russia-Ukraine event happened, spring wheat didn’t have as much excitement, but that’s changed.”
Grain Trade’s Focus Shifts to Weather – Van Ahn and Company market analyst Kristi Van Ahn says grain traders are already beginning to move past the USDA Quarterly Grain Stocks and Planting Intentions reports. Traders are starting to focus on weather. Now, it’s all about what actually gets planted. Corn acreage may get bigger and soybean acres could shrink by the June acreage report. “Especially if there’s a timely spring to plant.”
Sunflower Market Reacts to Increasing Veg Oil Demand – National Sunflower Association Executive Director John Sandbakken says the sunflower market is reacting to the USDA acreage report, “plus, the need for acres to put more oil in the market with what’s being lost in the Russia-Ukrainian war.” Prices will likely remain good for the foreseeable future. “We’re at all-time highs for new crop and I don’t see that backing off. Old crop is also almost at record-high levels.”
No Bad Choices – Seed sales across the region reflect a nearly normal crop rotation this season. Premium Ag Solutions President Beau Jacobson doesn’t expect to see a dramatic change in acreage. “There’s going to be farms that go heavy into corn and there’s going to be guys that didn’t book fertilizer that’ll be heavy into soybeans. The wheat acre is going to be up in a few places. The specialty crops are strong so I don’t know if you can really make a bad choice going into the year.” During the Premium Ag Solutions Ag Day event at Hitterdal, Jacobson was optimistic. “As long as guys are disciplined and don’t get too carried away, we can hopefully put together a couple good years and have some profits again.”
SD Corn Comments – Spring planting will begin soon in South Dakota. Be safe and send some good thoughts to farmers as fieldwork begins. Hear more in the latest South Dakota Corn Comments.
Spring Fieldwork Begins in ND – Hazen, North Dakota farmer John Weinand started spring fieldwork on Friday. “Like everyone, we’re praying for rain. It was dry this spring even though we had moisture last fall. Now is better than one year ago in that sense.” It remains cold and Weinand is not in a big hurry. “We’re going to do some field peas and barley now as long as we can get into the fields. We’ll use a seed treatment.”
MN Wheat Minute – If you haven’t secured wheat seed yet, University of Minnesota Wheat Breeder Jim Anderson has a few varieties to consider. Hear more in this week’s MN Wheat Minute.
Drought Conditions Expand in the Region – More than 72 percent of North Dakota is classified as being in moderate to extreme drought, according to the U.S. Drought Monitor. That’s a six percent increase in the past week. Extreme drought conditions persist in the northwestern part of the state with the entire western half of North Dakota experiencing at least some form of moderate to severe drought. The drought conditions extend into western and central South Dakota.
Alarming Forecast – NDSU Climatologist Adnan Akyuz says the three-month outlook for the North Dakota is worrisome. “If we look into next growing season from June to August, we will see the same pattern of above normal and normal temperatures and below normal in precipitation. This is alarming as it may indicate a repeat of the summer of 2021.” It may be worse for areas already experiencing extreme drought conditions.
White House Delivers Budget Proposal – The Biden Administration has released its budget request for the 2023 fiscal year. That includes $28.5 billion for discretionary funding at USDA. That would be a 17 percent increase from what was enacted this past year. The proposal includes numerous references to climate change and clean energy. There is also a significant budget increase to address equity and racial justice. Again, this is a proposal from the White House. Congress has the final say on money matters.
Wrong Direction – North Dakota Senator John Hoeven said the Biden Administration is going in the wrong direction with this budget proposal. In particular, Hoeven is opposed to the language that eliminates stepped-up basis and limiting the use of 1031 like-kind exchanges for farmers.
A Different Approach for the Budget Request – Combest, Sell and Associates manager Tom Sell says the White House took a smart approach to its budget proposal. “The administration didn’t pick a lot of fights that previous administrations have. Historically, there have been things the Office of Management and Budget and the White House will float out there that’s dead-on-arrival and undermine more positive ideas the administration would put forward.” The budget will go through the appropriations process and Sell is anticipating another Continuing Resolution in September.
Renewable Fuels Not in President Biden’s Plan to Lower Fuel Prices – President Joe Biden outlined a two-part plan to address high fuel prices last week, but that plan does not include an increase in the use of renewable fuels. Renewable Fuels Association President Geoff Cooper said it’s baffling that President Biden continues to overlook ethanol. Reuters reported the Biden administration is considering allowing E15 use this summer, but no definitive plans have been announced.
Clean Fuels Podcast: New Technology Allows Integration of Ethanol into Existing Diesel Engines – ClearFlame Engine Technologies has developed engine technology that allows heavy-duty trucks and diesel-driven farm equipment to operate on 100 percent plant-based fuel. ClearFlame CEO BJ Johnson is part of the latest Clean Fuels Podcast and highlights this unique engine technology. CleanFlame has collaborated with Great Plains Institute, the Minnesota Corn Growers Association, John Deere, Growth Energy and others to decarbonize long-haul trucking and agriculture. When asked if this is “an either-or” discussion between electric vehicles and renewable fuels, Johnson said it is impossible to eliminate the dependence on fossil fuels without using every available tool. “If we frame this discussion as ‘either-or,’ we’re going to fail in our goals.”
E15 is an Answer to Higher Pump Price – Corn growers have called on President Biden to tap homegrown renewable fuels to lower fuel prices. North Corn Growers Association President Rob Hanson says E15 is the best option. “Back in 2021, the court decision, which was pushed by the oil industry, will cut out ethanol blends any higher than E10 starting June 1st. That’s at the wrong time with fuel prices going higher.”
Ocean Shipping Reform Act Advances – The Senate passed legislation to deal with supply chain issues and the backlog at the ports. There are differences between the House and Senate versions of the Ocean Shipping Reform Act which will be worked out in a conference committee.
Rail Service Improvements Sought – Agriculture Secretary Tom Vilsack is asking the Surface Transportation Board to address widespread rail service disruptions. The National Grain and Feed Association made a similar request, saying rail service problems have resulted in the shutdown of flour and feed mills. The current shortage of feed is also linked, in part, to poor rail service.
Lawmakers Promote Domestic Fertilizer Production – A bipartisan group of U.S. senators are urging the White House to prioritize domestic production of green fertilizer. Minnesota Senator Amy Klobuchar said the ammonia-based nitrogen fertilizer produced by regional hydrogen hubs will provide a stable supply for farmers and reduce the carbon footprint. Read the letter.
Fertilizer Logistics May Be Challenging – Fertilizer prices continue to climb, but availability has not been an issue so far. StoneX Group Fertilizer Director Josh Linville anticipates logistical challenges. “We’re still very concerned about the barge situation because the lower Mississippi River is dealing with different flood stages. Rail service continues to be slower than normal. Truckers are hard to find and that could get worse as spring gets closer.” Linville says it is very likely the entire Corn Belt could begin planting at the same time. “There hasn’t been an early start like we were worried about, but the entire U.S. could start on the same day and the logistics aren’t there.”
Corn Matters – In this week’s Corn Matters, Minnesota Corn Growers Association President Bryan Biegler has an update from a Washington D.C. Fly-In. Hear more about Minnesota Corn’s policy priorities in this week’s update.
Livestock Disaster Payments to Be Distributed This Week – Livestock producers awaiting the first phase of disaster aid should start receiving that money this week. The USDA’s Farm Service Agency created a new program called the Emergency Livestock Relief Program with $750 million Congress allocated for livestock disaster aid in 2021. For the first phase of livestock payments, USDA Under Secretary of Farm Production and Conservation Robert Bonnie said the FSA will distribute about $600 million. FSA is using data from the Livestock Forage Disaster Program to administer payments. “We’re trying to minimize the paperwork and other challenges producers may have so they don’t have to come back to the office,” said Bonnie. “There will also be a phase two of payments and we’ll look to fill in the gaps from phase one in phase two.” First phase livestock payments will be equal to 90 percent of a livestock producer’s gross 2021 LFP payment for underserved farmers and 75 percent for all other producers. The USDA is still working on the disaster aid for crop producers, now known as Emergency Relief Program Assistance. That’s also coming in two phases. According to Bonnie, those funds will to be distributed as early as May.
Next Steps for the Cattle Price Discovery Act – A bipartisan group of Senators released an updated version of the Cattle Price Discovery Act. The updated version of the bill has technical changes to make it easier for the USDA to implement the bill. The bill includes pricing mechanisms and establishes a maximum penalty for covered packers. Iowa Senator Chuck Grassley sponsors the bill. “Most everything in the original bill covered things west of the Mississippi River. It seemed to be fair to open this up to all cattle producers.” Grassley thinks Senate Agriculture Committee Chairwoman Debbie Stabenow really wants to move this bill along, but no hearing or markup has been scheduled in the Senate Ag Committee.
R-CALF Cites New Research as a Catalyst for Change – R-CALF USA is touting two independent studies that consider the spread between live cattle prices and wholesale beef prices. R-CALF CEO Bill Bullard said this analysis is “earthshattering” and urges Congress to act on the market transparency bill.
MCOOL Bill Introduced – A bill has been introduced in Congress to reinstate mandatory country-of -origin labeling for beef. Similar legislation is in the hopper at the Senate. R-CALF USA praised the bill, saying it believes American consumers will choose beef produced exclusively in the United States.
Origin of Livestock Rule Released – The USDA released the details of the Origin of Livestock rule for organic dairy. This final rule changes USDA’s organic regulations that are meant to promote a fairer and more competitive market for dairy farmers. This new rule allows new organic operations to transition non-organic animals one time and stops organic dairies from sourcing any transitioned animals.
Reworking Federal Merger Guidelines – The Department of Justice and Federal Trade Commission had their first official listening forum on mergers and acquisitions on Monday. This forum focused on food and agriculture. The goal of the listening sessions is to revise merger guidelines. “These guidelines were last updated in 2010 and have continued to evolve,” said Lina Khan, chair, FTC. “Fresh evidence of consolidation throughout the economy, including agricultural markets, suggest we should take a hard look at how we are investigating mergers and enforcing anti-merger laws.” In the forum, Grand Forks, North Dakota farmer Todd Leake encouraged the DOJ to consider the effects of past mergers on seed choices for farmers. “The merger of so many regional seed companies has led to higher prices for GMO-trait seed and stack traits that don’t meet the needs of farmers because they contain unnecessary traits for a particular farmer’s needs or constrain a farmer to a particular seed herbicide system.” A public comment period on the merger guidelines is open through mid-April.
MFBF Update – Minnesota Farm Bureau Director of Public Policy Amber Glaeser has an update on California’s Proposition 12 in the latest MFBF Update.
NPPC Outlines the Next Steps in Prop 12 Case – While the Proposition 12 Supreme Court case is about pork, National Pork Producers Council General Counsel Michael Formica says the implications of the law apply to everyone who raise food. “We don’t need one state reaching out across the country and telling farmers in another state how to raise their livestock.” Formica says the fact that the Supreme Court is going to review this case is a monumental win for agriculture. “We’ll probably have oral arguments to the court in October or November.”
Cow Liquidation is Ongoing – Drought is impacting the Southern Plains during their graze-out season. Beef cows being liquidated at record speed. While many in the Northern Plains watched sales peak earlier in the fall and early winter, NDSU Extension Livestock Economist Tim Petry says the cow slaughter rate has picked up due to limited grass availability in the South. “This is the time where grass is greening up in Texas and Oklahoma; they’re really struggling.” Petry says demand for ground beef is adding fuel to the fire. “The cow market is hot. It’s went up about $10 in the last couple of weeks. Consumers fill up with gas and go to the store to buy supper where they buy hamburger instead of steak because gas is so expensive.”
Americans Want Ground Beef – Beef cows are being processed at a rapid pace. In 2021, there were only 18 weeks when the market processed over 70,000 head of beef cows in a week’s time. In 2022, nearly every week has seen over 70,000 head of beef cows processed. This year, 27 percent more beef cows were processed at this point compared to the five-year average.
MN Beef Update – In this week’s Minnesota Beef Update, Minnesota Beef Council Director of Industry Relations Royalee Rhodes has a list of winners from the Minnesota Association of Meat Processors Convention’s Innovative Beef Contest.
Two New Meat Processing Education Programs Start in Minnesota – With the demand for small, locally-owned meat processing, new training opportunities are surfacing. AgCentric Executive Director Keith Olander says there’s only six programs in the entire country at a technical level that offer meat processing education, including two new programs in Minnesota. “We were successful in being awarded $2 million (from the federal government) to support program development and growth at Central Lakes College and Ridgewater College. Partnered with that, we’re working with Minnesota Farmers Union on a mobile meat slaughter unit.” The State of Minnesota is also working on programs to promote this technical education. “We’re looking at a one-semester certificate right now, but the goal is to get students interested in high-school before getting more education at a secondary level.”
High Level Biosecurity Protocols in Place for MN Turkey Growers – After three cases of Highly Pathogenic Avian Influenza were confirmed in Minnesota over the weekend, commercial turkey growers have high level biosecurity protocols in place. Minnesota Turkey Growers Association President Jes Westbrock says the commercial turkey growers are treating this seriously. “We assume every bird we see outside of the barn is positive with HPAI. We know wild birds carry it and last weekend was windy.” Since 2015, the first major Highly Pathogenic Avian Influenza outbreak in Minnesota, Westbrock says biosecurity has ramped up in commercial turkey barns across the state, including her farm. “We put Danish entries on all of our barns. That line of separation is our biggest biosecurity barrier.” Photo credit: Jes Westbrock
Walz Executive Order to Help Mitigate HPAI Risk to Minnesota’s Poultry Industry – Minnesota Governor Tim Walz has signed an executive order to help control the spread of avian influenza. This executive order waives trucking regulations to assist with the depopulation effort. A USDA emergency response team is in Minnesota to support the control and containment of avian influenza. “Minnesota is king of turkey growing; it’s a big part of our economy.” Minnesota’s poultry industry was quick to identify the virus. Walz says a lot was learned from the outbreak in 2015. “That ended up having a financial impact about $650 million and ended up depopulating about 9 million birds.” Walz told RRFN. “Producers understand this, it is not only an economic hit, it’s a big psychological hit because people pour their lives into raising these birds.” A hotline number is in place for growers to report sick or dead birds or to answer questions about avian influenza. That hotline number is 833-454-0156.
Conference Committee to Sort Out Drought Bill Differences – The Minnesota Senate unanimously passed drought relief, including funding to support livestock and specialty crop farmers. There’s also money for disaster recovery loans through the Rural Finance Authority. A conference committee will now iron out the differences between the House and Senate versions of the bill.
Drought Relief Bill is Still Relevant – Minnesota Governor Tim Walz says the drought assistance legislation moving through the legislature is not too late for Minnesota farmers and ranchers. “We know this was a heavy hit that people are still reeling from.” The relief goes to drought-stricken farmers, but Walz said there is a benefit for everyone. “People complain about consolidation in agriculture when we’re losing more and more family farms, it’s things like this that can prevent that from happening.”
Neonic Bill Advances in MN House – A bill has been approved with a 7-5 party-line vote in the Minnesota House Agriculture Committee that would regulate the sale, use and disposal of seed treated with neonicotinoids. The bill is in reaction to environmental failure in Mead, Nebraska where treated seed was used to produce ethanol. A companion bill awaits action in the Minnesota Senate Agriculture Committee.
Unintended Consequences with SD Livestock ID Bill – The South Dakota Legislature passed a bill to protect a producers’ right to choose a method of official livestock identification. South Dakota Cattlemen’s Association Executive Director Taya Runyan says this action complicates future rulings on a federal level. “The bill itself was not as concerning as the potential unintended consequences. I think the proponents were largely using this bill to send a message to the federal government that they did not want a single official identification method somewhere in the future.” There is currently no law at the federal level limiting identification choice.
Holding Trade Partners Accountable – U.S. Trade Representative Katherine Tai answered questions from the House Ways and Means Committee this past week about holding trade partners accountable for implementing trade agreements. This includes the way Canada handled dairy market access in the U.S.-Mexico-Canada Agreement. “This has been a long-standing issue between our economies. I think there was a clear understanding on our side that dairy market access would be improved under the USMCA,” said Tai. “We haven’t seen that. From a USTR perspective, we will not give up. We’ll continue to work with stakeholders and absolutely respect the aspirations of our dairy farmers, including our strategy of where we go next.” Tai also testified on trade in the Senate Finance Committee.
Trade Framework Discussed in Southeast Asia – Nearly 90 members of Congress have signed off on a letter, asking the Biden Administration to make agriculture a priority in the Indo-Pacific Economic Framework. The U.S. has had exploratory talks about this trade deal with Japan, Malaysia, Singapore and South Korea in February. However, no determination has been made about the countries that will be involved in this framework agreement.
Dry Bean Scene – In this week’s Dry Bean Scene, Northarvest Board Member Cordell Huebsch talks about the upcoming trade trip in Spain. The Dry Bean Scene is sponsored by the Northarvest Bean Growers Association.
Vilsack Travels to Mexico – Agriculture Secretary Tom Vilsack is traveling to Mexico this week. The secretary is in Mexico today and tomorrow, but the agenda is unclear. According to Agri-Pulse, the visit comes as the Biden administration pushes Mexico to remove barriers to biotech seed traits.
U.S. Potato Industry Wants Action on Mexico’s Fresh Market Accesss – The U.S. potato industry continues to monitor fresh market access in Mexico. Mexico’s Ministry of Agriculture and Rural Development said the Mexican potato market will open, as long as U.S. fresh potato growers comply with sanitary guidelines. According to the National Potato Council, the Mexican agriculture secretary also reassured USDA officials U.S. potatoes would be able to enter the Mexican market at any time. The National Potato Council said actions count more than words.
Port City Hit by Russian Air Strike – Russia bombed the port city of Odessa Sunday, including an oil refinery and three fuel storage facilities. This move is seen as an attempt to cut off the fuel supply for Ukrainian forces. Odessa is Ukraine’s largest Black Sea port and is an important hub for grain shipments.
Ukrainian Tenacity – Since the Russian invasion five weeks ago, Grand Forks, North Dakota farmer Paul Sproule has had two Zoom calls with Ukrainian farmers. “There’s so much optimism with these gentlemen; every one of them said they would win this war.” Sproule’s connection to these farmers is linked a tour group he’s hosted in recent years that was made up of Ukrainian farmers and businesspeople. After a 20-year moratorium, Ukrainian farmers were able to purchase farmland in 2021. Now, much of that land is a war zone. Sproule said these farmers are dealing with shortages of fuel and other crop inputs, but still plan to plant 45-to-55 percent of their cropland. The biggest challenge is with infrastructure. “Even if the war ends today, there is so much damage to rail, roads and their ports.” The Ukrainian farmers said the Russian soldiers are leaving mines in their fields as they retreat. Sproule praised these farmers for their “tenacity.” Photo credit: Roman Grynshyn, Ukraine
A Fragile Food System – Ukrainian farmers are expected to plant fewer acres this year. United Kingdom-based Green Square Agro Consulting Director Mike Lee tells the Red River Farm Network it’s difficult to get a good yield forecast for Ukraine. “We think 40 percent of the planting area is at risk this spring and possibly won’t be planted. It’s not only the issue of location, but access to fuel, tractor drivers, spare parts, fertilizer and other things.” The Ukrainian government is encouraging farmers to plant crops that can be consumed domestically. Lee is not sure how realistic it is for growers to make major switches from planting corn, soybeans and sunflowers to planting buckwheat and peas. “There isn’t sufficient seed for commodity crops in the country at the moment, so will there be sufficient seeds in the supply chain in the countries to provide the other crops?” Lee says the Russia-Ukraine war shows a fragile food production system. Hear a portion of the interview. Credit for photos: Green Square Agro Consulting.
EPA Will Allow MN and SD Growers to Use Enlist Products – After reviewing proposed label changes from Corteva, the EPA changed its mind about banning the use of Enlist One and Enlist Duo in counties across the country. The EPA will now allow applicators to use Enlist One and Enlist Duo herbicides in all of Minnesota and South Dakota. Due to endangered species concerns, Enlist Duo was restricted in Clay, Marshall, Polk, Redwood, Renville and Stearns counties in Minnesota. Enlist Duo and the Enlist One herbicide was restricted in Bennett, Charles Mix, Gregory, Lyman, Mellette, Todd and Tripp counties in South Dakota. A beetle species was previously at risk in many states. In Minnesota, a rattlesnake species was at risk, but after reviewing updated species range maps, the EPA determined the snake was no longer present in the state. Read more.
EPA Ordered to Provide More Info on Dicamba – A federal judge in the District of Arizona is telling EPA to provide more information on the options to deal with the off-target movement of dicamba. This pushes back any decision on dicamba use since the agency has until mid-May to deliver that report. This is part of a case filed by environmental groups asking the court to vacate the registration of XtendiMax, Engenia and Tavium.
City Officials Address FuFeng Group Project – Signatures are being verified on a community-led petition in Grand Forks, North Dakota to bring a proposed corn wet milling project up for a citywide vote. According to City Attorney Dan Gaustad, there is a 20-day window the city auditor can take to review signatures. If the petition has enough verified signatures by April 12, the matter could be brought up for a vote in June. During Grand Forks City Council meeting on Monday, City Administrator Todd Feland addressed security concerns about the Fufeng Group and the proposed corn wet mill. “Wet corn milling has been around for decades, if not 100 years. There may be a different way the company will develop the market for amino acids, but this isn’t leading-edge technology that will change the world.”
Pipeline Project Opposition – The carbon capture pipeline extending from Iowa to North Dakota was the subject of a protest at the state capital in Des Moines Tuesday. The farmers, landowners and environmental activists are upset with the use of eminent domain for this project. The Iowa House has passed a one-year moratorium on eminent domain, but the protesters said that doesn’t go far enough. Summit Carbon Solutions said the Sierra Club is spreading misinformation about its project. This pipeline would end up at a carbon sequestration site in North Dakota.
Try Something New – Higher commodity prices allow farmers flexibility to look at different management practices. Bayer Crop Science’s Grant Mehring says it’s all about return on investment. “Challenge yourself. Look at it like a detective would look at a mystery. What would get me a few more bushels out of that field or that crop?” Mehring says a late fungicide application in a high yield environment can pay off. Hear the story.
Protect Every Bushel – Protecting every available bushel that a crop produces is top of mind with high commodity prices. Bayer Customer Business Advisor Ryan Fischer says that’s where fungicides can play a role. “When we talk about fungicides and applications, a lot of that can be driven by commodity prices. There are strong commodity prices right now. We need to look at the upside potential for the crop. Now more than ever, we need bushels. There is a profit to be made in the field.” Fungicide decisions can be made in-season. “Going into this year, we’ll see what Mother Nature has in store for us, but we could end up being drier. We really want to protect standability and bring a good, quality product to market this fall. Fungicides should be part of that conversation.” Hear the story.
Getting Creative with Nutrient Management – A start-up company called Sound Agriculture wants to create a more resilient food system. That begins with reducing nutrient waste. Instead of applying nitrogen and phosphorus during the growing season, Vice President of Sales Eamon Flood recommends SOURCE for corn and soybeans. “It’s a foliar application that stimulates the microbiome and provides nutrients to the crop, primarily nitrogen, phosphorus and other micronutrients, to strengthen plant health and add bushels.” Flood says SOURCE is not a biological, but it is similar. The interest in this segment of agricultural inputs is growing. “We’re seeing increasing scrutiny on the type of products farmers are using, especially in a place like Minnesota where there are lots of fresh water. For any farmer thinking about that, this could be a solution to start to solve that problem. In other cases, farmers are also looking for alternatives with higher input costs and supply chain issues.” Hear the story.
Don’t Forget Soybean Inoculants at Planting Time – Growers are thinking about planting a diverse crop mix this spring. “There are many different crops going into the ground this year,” said Dan Melaas, technical services representative, BASF. “Soybeans and canola seem to be the two big crops. With the recent run-up in the markets, wheat has also been another crop where acreage should be strong.” If farmers are thinking about growing more soybeans, Melaas encourages them to consider using a soybean inoculant, like Vault IP Plus. “In my experience, a seed-applied inoculant will generally help you produce more nitrogen for that soybean plant through the course of the growing season. The more nitrogen you have for the plant, typically the better it does.” Hear the story.
AMVAC-BASF Collaboration – AMVAC and BASF announced a collaboration to develop Rhizo-Flo granular soybean inoculant. This product will be used as part of the SIMPAS application system.
Global Deal Inked – Marrone Bio Innovations has signed an agreement with Corteva Agriscience to provide seed treatment options worldwide. The two companies currently has a similar deal in Europe. Marrone Bio portfolio includes biological seed treatments.
John Deere & SurePoint Ag Enter Joint Venture – John Deere and SureFire Ag Systems entered a joint venture allowing them access to select Deere technologies across a range of products. SureFire Ag Systems will be operating under the new brand names SurePoint Ag Systems and SurePoint Electronics in the agreement.
Canola Minute – On this week’s Canola Minute, Northern Canola Growers Executive Director Barry Coleman recaps the North Dakota District Elections for District 2.
Sales Up for Syngenta – Syngenta Group reports fiscal year 2021 sales of $28.2 billion, up 23 percent from last year. Crop protection sales grew 19 percent to $13.5 billion while seed sales rose 24 percent to $4.1 billion. ADAMA sales were also up 24 percent, with full-year sales of $5.8 billion.
Rob-See-Co Acquires Independent Germplasm Pool – Rob-See-Co Marketing Manager Chuck Lee says these genetics are focused on 95-day relative maturity and earlier corn. “There’s a lot of corn in northwest Minnesota and North Dakota and the majors really don’t focus on that market very well; they spend most all their money breeding corn for the ‘I’ states.” Corn grown in Northern Plains has specific needs. “The amount of husk cover a corn plant has often affects its dry down rate so for those early maturities, husk cover is really critical.” The Nebraska-based Rob-See-Co expects the first releases from this germplasm pool will be ready for the 2024 growing season.
Activist Investor Targets Supermarket Chain – Activist investor Carl Icahn has nominated two directors for the Kroger supermarket chain’s board of directors. A similar move was made a month ago with McDonald’s. Icahn is using his financial influence to have an impact on corporate policies on animal welfare, the environment and other social issues.
No Jail Time in MN Crop Insurance Case – A Lake Park, Minnesota farmer pleaded guilty to crop insurance fraud. Kevan Jon Nelson was sentenced to supervised release and ordered to pay fines and restitution of $570,000. Nelson has also agreed to forfeit eligibility for any USDA farm program or crop insurance.
Mersinger Confirmed as CFTC Commissioner – The Senate has confirmed Christy Goldsmith Romero, Kristin Johnson, Caroline Pham and Summer Mersinger as commissioners to the Commodity Futures Trading Commission. Mersinger previously served as the chief of staff for South Dakota Senator John Thune. Most recently, Mersinger was the chief of staff for outgoing CFTC Commissioner Dawn Stump.
Carter Steps Down from National Bison Association – After 21 years as executive director, Dave Carter is leaving the National Bison Association. Carter is joining the Flower Hill Institute and will be part of a team providing technical assistance and outreach for USDA’s effort to expand meat and poultry processing capacity.
Thompson-Weeman Gets Promoted to CEO of Animal Ag Alliance – Animal Agriculture Alliance Vice President Hannah Thompson-Weeman is getting a promotion to President and CEO. Thompson-Weeman will begin the role on May 1. She succeeds long-time president and CEO Kay Johnson Smith, who left to become the new Chief Operating Officer of Dairy MAX, a regional dairy council.
Pender Hired as NPPC Assistant VP for Marketing and Communications – Annemarie Pender starts today as the National Pork Producers Council assistant vice president for marketing and communications. Before joining NPPC, Pender was the vice president of communications for Autos Drive America. She will be based in the Washington D.C. office.
Petersen Recognized by Safety and Health Council – The Agricultural Safety and Health Council of America has presented Minnesota Agriculture Commissioner Thom Petersen with its Outstanding Policymaker Award. Petersen was recognized for his advocacy for farm safety and support for farmer well-being and stress reduction.
Wick Elected to Global Soil Science Organization – North Dakota State University Associate Professor and Soil Health Specialist, Abbey Wick, has been elected as chair of the Soil Use and Management division of the International Union of Soil Sciences. Wick will work alongside 12 soil scientists from around the world while serving a four-year term.
Sawatzke and Stade Appointed to BOAH – Minnesota Governor Tim Walz has made two appointments to Board of Animal Health. Erica Sawatzke of Farwell was reappointed to another four-year term. Alex Stade of Prior Lake is a new appointment.
Last Week’s Trivia- Red is the color of the top light on a traffic signal. Bob Brunker of J.L. Farmakis wins our weekly trivia challenge. Mike Brinda of Riverland Ag Corp, Jeff Triebold of Prairieland Ag, Kristal Rick of MAGNO Seed and Lucas Sjostrom of Minnesota Milk Producers Association earn runner-up honors. The ‘first 20’ rounds out with Mark Mettler of PreferredOne, Jim Altringer of CHS Dakota Plains Ag, Kevin Praska of Stone’s Mobile Radio, Randy Knudsvig of First State Bank, Ron Dvergsten of Northland Farm Business Management, Cokato farmer Harlan Anderson, Willow City farmer Martin Kitzman, Harvey farmer Bill Ongstad, Al Wimpfheimer of Simplot Grower Solutions, Phyllis Nystrom of CHS Hedging, Val Dolcini of Syngenta, Clarkfield farmer Doug Albin, Keith Rekow of Dairyland Seed, retired Bayer territory manager Mark Haugland and Bob Lebacken of RML Trading.
This Week’s Trivia- What city is hosting the Final Four NCAA Men’s Basketball Tournament? This should be a ‘Big Easy’ question. Send your response to don@rrfn.com.
Contact RRFN | Don Wick (701) 795-1315 |
Randy Koenen (701) 795-1315 |
Tyler Donaldson (701)-795-1315 |
Jamie Dickerman (701)-795-1315 |
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FarmNetNews is a production of the Red River Farm Network. RRFN is based in Grand Forks, North Dakota and provides news to farmers and ranchers across Minnesota, North Dakota and South Dakota.