Farm Accident Hits Home – In an instant, a normal farm chore can turn into a life-threatening situation. On Wednesday when the temps were far below zero, Tanner Overby of Binford, North Dakota was preparing to feed his cows by greasing the chain of the feed wagon. Suddenly, both of Tanner’s hands became entangled in the chain, resulting in extensive injuries. Tanner was life-flighted to Regions Hospital in St. Paul and has gone through three surgeries in less than five days. Tanner could be just another farm safety statistic, but his story hits home for us. You see, Tanner is Megan Ternquist’s boyfriend. When the accident happened, Megan was in New Orleans covering the Cattle Industry Convention for RRFN. Megan is with Tanner right now in St. Paul. Like most farmers and ranchers, Tanner is described as “a selfless, hardworking man.” We’re hearing positive news about his recovery; there’s a long road ahead with more surgeries and rehab. A Go Fund Me account has been established to help defray costs on that journey. Your prayers and generosity is appreciated.

Progress Seen in U.S.-China Trade Talks – China is back in the business of buying U.S. soybeans. Chinese Vice Premier Liu He made that announcement in a meeting with President Donald Trump Thursday. China pledged to purchase five million tons of U.S. soybeans per day. However, the administration later clarified the statement, saying China agreed to buy five million metric tons of soybeans, but not on a daily basis and no timeframe for the purchase was given. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will travel to China in early February to continue the negotiations. Another face-to-face meeting between Trump and Chinese President Xi Jinping is also expected to happen before the March 1 deadline. Without a deal by that time, the U.S. will raise tariff rates on Chinese products.

Opportunities to Forward Market – Looking at long-term seasonal trends, the March-through-June time period provides an opportunity for forward pricing. Diversified Services Marketing Group senior risk analyst Rich Morrison was part of a series of marketing meetings across the region this past week and said the market is giving farmers a pricing opportunity. “I really think the bean market may be doing that right now. The market is holding up well, while the soybean carryout in the U.S. and worldwide is potentially double what it was last year.” The February supply/demand report will also include January data. “This could provide a lot of volatility for the markets; you basically have 60 days worth of numbers.” The acreage mix for the 2019 growing season remains a question mark. With the current trends in fertilizer prices, Morrison says the size of the corn crop may actually decline. The prices over the next two months will determine what happens with those acres.

Ag Secretary Brings a Trade Update to Cattle Industry Convention – The focus of Agriculture Secretary Sonny Perdue’s address to Cattle Industry Convention attendees Friday was trade, specifically the recent meeting between the U.S. and China. Perdue said intellectual property is still being discussed. “I really believe we are entering a phase where both countries want to re-establish and establish an ongoing relationship that’s sustainable and we’ve got a lot of work to do,” said Perdue. “Obviously as growers and producers, we want to sell things. We want customers, but we want customers who operate by the rules.” Perdue cautioned the U.S. to not get overly dependent on moving products to just one country, like China. It’s important to diversify.

$200 Million in Trade Promotion Funds Awarded – USDA has awarded $200 million to nearly 60 organizations as part of the trade mitigation effort. The American Soybean Association received the largest allocation through the Agricultural Trade Promotion Program at nearly $22 million. U.S. Meat Export Council was awarded $17.5 million; the U.S. Grains Council received nearly $14 million and U.S. Wheat Associates was given more than $8 million. Other totals include $5.2 million for the U.S. Dairy Export Council, $3.6 million for the National Potato Promotion Board and $1.4 million for the U.S. Dry Bean Council. The money will be used by these groups to identify and access new export markets.

Long-Term Relief Sought for Farmers – The National Farmers Union board of directors is asking the administration and Congress to strengthen the farm safety net. The Market Facilitation Program was welcomed, but the NFU board said long-term relief is necessary. In addition, the Farmers Union wants Congress to address what it sees as “a chronic oversupply” situation in the U.S. dairy and grain sectors.

Starting to Get a Look at the New Farm Bill – Local Farm Service Agency offices are back to business following the partial government shutdown. State Executive Director Brad Thykeson says the farm bill implementation is top of mind. The farm bill was signed into law right before the shutdown. “The USDA reached out this week, trying to find people who can help them write some of these rules and regulations for the farm bill that passed,” says Thykeson. The new bill allows farmers to switch from Agricultural Risk Coverage and Price Loss Coverage programs. “Farmers will be able to have a choice between ARC or PLC as the time goes on. Farmers have recognized now prices aren’t going to stay at $7 for corn or in the teens for beans and $8 to $9 for wheat. That PLC program is probably going to be more attractive for others. If they’re comfortable with the ARC selection, that’s fine. This new farm bill is going to make it a little bit easier for the choice.”

Farm Bill Top-of-Mind as House Ag Committee Prepares to Meet – House Agriculture Committee Chairman Collin Peterson told local farmers and ranchers Saturday farm bill implementation is top-of-mind, especially the new dairy program. Peterson said education will be key for its success. “The old dairy program didn’t work and people got soured on it. I’m a little concerned people aren’t going to sign up for the new program, because they aren’t going to seriously look at it,” said Peterson. “Whenever the sign-up happens, if it’s in February or March, it’ll be retroactive to January 1.” Peterson also answered haying and grazing questions on the Conservation Reserve Program. Finally, he said the partial government shutdown did impact farm bill implementation. “It has delayed us probably good month and a half on the dairy stuff, which could be fatal. I think it’s a real problem.” The committee will meet Thursday to organize.

Interest in the Dairy Margin Coverage Program – East Polk County, Minnesota Farm Bureau President Bennett Osmonson says there is interest in the new dairy program included in the farm bill, known as the Dairy Margin Coverage Program. He understands education will be important. “Implementation is going to take some time, because the government was down for 30-some days and it takes a while to write those regulations,” he explains. “Then, the Agriculture Committee needs to look at them again and make sure they are written as intended.”

A Slow Start for House Agriculture Committee – The partial government shutdown delayed the implementation of the new farm bill and other agricultural discussions. South Dakota Representative Dusty Johnson is a new member of the House Agriculture Committee and says the committee has not met to for an organizing session. “I have spoken with Chairman (Collin) Peterson. He will have to lay out what the intended oversight functions will be for the committee this year, but he has not shared that draft yet with the minority party.” Johnson will serve as Ranking Member of the Subcommittee on Nutrition, Oversight and Department Operations.

Government Shutdown May Delay Key Ag Programs – The 35-day partial government shutdown is over, but Minnesota Senator Amy Klobuchar is seeing a possible hangover effect on agriculture. “The things I’m most worried about for Minnesota include the EPA’s rulemaking for year-round sales E15 may be delayed and we’re really pushing them to get that done by June 1.” The government is funded through mid-February, giving the administration and Congress time to negotiate border security issues. Klobuchar wants to avoid another shutdown. “The hope is these people have learned their lesson and this won’t happen again. Otherwise, we’ll have recurring shutdowns and that doesn’t make sense.”

European Union Approves U.S. Soybean Imports for Biofuels – The European Union approved U.S. soybean imports for biofuel production. The announcement follows last summer’s trans-Atlantic meeting between President Trump and his EU counterpart. U.S. Soybean Export Council Vice Chair Monte Peterson says this is good news for the U.S. soybean industry. “With the soybean sustainability assurance protocol now in place, we’re anxious to see how that contributes to more exports to the EU.” Peterson says the soybean industry was expecting this trade announcement. “When it comes to market access issues, you never know how quickly things will or will not develop. It’s encouraging this is finally coming to fruition.”

Lost Opportunity – The new trade agreements between Japan and other countries will put U.S. dairy exports at a competitive disadvantage. U.S. Dairy Export Council President and CEO Tom Vilsack cites the Japan’s trade agreements with Australia, New Zealand and the European Union. “They basically now tilt the playing field to our competitors; we will lose market share to the tune of potentially $90 million and over the next five years, the cumulative impact will be $185 million of lost opportunity.” USDEC commissioned a study that calculates the loss of market access. Cheese would feel the most significant negative impact, but other dairy ingredients will also feel the pain. “At a time when we’re looking for every single dollar we can in the market, we can’t afford to let that happen.”

Solid Cattle Demand Forecast for 2019 – Cattle prices are expected to remain strong for 2019. CattleFax analyst Kevin Good is forecasting steady fed cattle prices averaging $117 per hundredweight. “There is a challenge going forward, recognizing that we have larger supplies of feeder cattle and calves and we’re seeing the leverage shift. As a trend, we think feeders and calves will be softer than the year prior, but still hold up to levels that will give most producers the chance to be profitable in 2019.” The relatively good calf market that was seen this past year will be under pressure in 2019. Good still sees the potential to reach the mid $180s this spring. At the Cattle Industry Convention in New Orleans, Good said beef exports have had double-digit gains over the past three years. “You can’t expect that to continue, but we have exports up six percent.”

U.S., Canada, Mexico Talk Trade at NCBA Meeting – National Cattlemen’s Beef Association members took part in a tri-lateral trade discussion with trading partners from Canada and Mexico Wednesday. Kimball, Minnesota rancher Don Schiefelbein, who is the NCBA policy vice-chairman, says all of agriculture is waiting on ratification of the new trade agreement between the three countries. “Where it might get sticky is if ratification gets into a tough spot and the administration decides to pull the existing NAFTA to force the issue; if that happens, agriculture will fall off really quickly.” North Dakota Stockmen’s Association Past President Warren Zenker, who ranches at Gackle, North Dakota, also sat in on the meeting. “One thing I learned is with TPP, Canada said they don’t have the supply of cattle to fulfill that and they’re looking for northern (U.S.) cattle; that could be very good for us producers in Montana, North Dakota, South Dakota and Minnesota.”

Growing Beef Demand Worldwide – Exports have been a challenge for many commodities, but international beef demand continues to grow. Hensler, North Dakota farmer and rancher Clark Price co-chairs the National Cattlemen’s Beef Association Export Growth Committee says the world wants U.S. beef. “It is sought after in every part of the world; we have very good business with South Korea and even with the tariffs, Japan is a very good market for us.” Price says there is a difference between U.S. beef and what is available from the competitors worldwide. “The number-one thing that sets U.S. beef from Australian and New Zealand beef is we’re corn-fed. Some other countries are trying to mimic what we do, but we have the advantage with corn-fed beef.” Coverage of the Cattle Industry Convention in New Orleans is sponsored in part by the North Dakota Beef Commission.

Minnesota Beef Update – The Minnesota Beef Update is a production of the Minnesota Beef Council and the Minnesota State Cattlemen’s Association. The Cattle Industry Convention was held this past week in New Orleans. Minnesota Beef Council’s Royalee Rhoads has an update on the trade show.

Maximizing Beef Checkoff Dollars – The beef checkoff is known for meat quality studies, including research on tenderness and marbling. North Dakota Beef Commission secretary/treasurer Travis Maddock, who owns Dakota Global Consulting, says the research is now focusing on the healthfulness and wholesomeness of beef. “Our priorities are on how we should fund research about the role of beef and animal proteins and beef fat in the diet and how it affects cognitive ability. We’re also looking at food safety and making sure that the beef produced in the U.S. is the safest in the world.” Maddock emphasizes the grassroots decision-making process for the beef checkoff investment. “The checkoff is comprised by 200 producers sitting around the table to determine if this is a good fiduciary use of those dollars.”

Farm Bill and Trade Issues to be Addressed at Sugar Meeting – This American Sugarbeet Growers Association Annual Meeting is being held in the Arizona dessert, but the attention is squarely on what is happening in Washington, D.C. Euclid, Minnesota farmer Paul Rutherford, who is a board member with the Red River Valley Sugarbeet Growers Association and the ASGA, is grateful sugar programs were maintained in the new farm bill. “We have to put out a big thank you to Congressman Collin Peterson; he stuck up for our sugar industry.” China dominates the current trade discussion, but there are also negotiations taking place with the European Union. “Europe is struggling right now,” said Rutherford. “They’re really in a hurt bag right now and we understand they are closing two beet factories and their prices of sugar is way down. We’re hoping our administration will look at our domestic industry and make sure we stay here.”