A Weekly Update from the Red River Farm Network

Monday, February 06, 2023

On the Scene-The Red River Farm Network spent this past week walking the halls of Congress, walking a massive cattle industry trade show and walking on water. In this edition of FarmNetNews, you’ll find updates from RRFN’s coverage from Washington, D.C., the Cattle Industry Convention and Trade Show in New Orleans and Agronomy on Ice at Devils Lake North Dakota. When news is happening in the world of agriculture, turn to RRFN first.

Ready to Complete the Farm Bill This Year – The House Agriculture Committee will hold its organizational meeting in the week ahead. In an interview with the Red River Farm Network, Chairman Glenn ‘G.T.’ Thompson said he is committed to passing a new farm bill this year. “An extension is not what I prefer, I want to get the job done,” said Thompson. “I’m confident that if we lean in together and we do this in a bipartisan way and a bicameral way, we get this done before it expires at the end of September.” A divided government often brings fear of gridlock. Thompson said the thin margin will keep Congress more realistic and thwart unreasonable amendments. “This is probably the most important bill for people that eat, oh, that would be every American.”

Farm Bill Newcomers – In the four years since the current farm bill passed, more than 40 percent of the House seats have turned over. American Sugarbeet Growers Association Past President Dan Younggren sees that inexperience as an issue. “We’re moving into a whole new world as far as the people constructing, writing and getting this bill across the finish line,” said Dan Younggren, past president, American Sugarbeet Growers Association. House Agriculture Committee Chair Glenn ‘G.T.’ Thompson will addresed sugarbeet growers and wants the new farm bill passed before the current law expires at the end of September. Younggren says that will be a big lift. “If you had to go to Vegas and get some odds on it, I’d put it at 60-40 that it will get done, but I’m optimistic. We have some people saying there is no way it will get done (on that timeline) and there will be an extension.” The ASGA will be back in Washington, D.C. at the end of February to lobby Congress.

Open Amendment Process May Complicate Farm Bill Process – In the past seven years, lawmakers operated under closed or structured special rules limiting the number of amendments. The amendment process has been opened up for all bills with the GOP majority in the House. American Sugarbeet Growers Association Vice President of Government Affairs Zachary Clark says this is a significant change. “With an open rule, we’ll have hundreds of amendments and there will be amendments that are really challenging to agriculture with sugar, crop insurance, the safety net,” said Clark. “If they pass, we might have to drag down a bill and we don’t want to be in that position.”

Incentive-Based Climate Policy Favored – USDA Undersecretary for Farm Production and Conservation Robert Bonnie says agriculture and environmental interests can find common ground through climate policy. Bonnie spoke at the American Sugarbeet Growers Association Annual Meeting and advocated a carrot versus a stick approach. “Regulations can be good at getting folks to stop doing bad things; they aren’t good at getting folks to adopt good things,” said Bonnie. “An approach of incentives and collaboration is good.” When incentives are based on the amount of carbon sequestered, early-adopters are penalized. Bonnie said USDA climate-smart partnerships are not conservation programs; they are a commodity program. “Tying it to the practice ultimately provides an opportunity to keep early-adopters in the game and rewarded for their stewardship.”

More Funding Needed for EPA Staffing – The trade organization representing the crop protection industry surprisingly wants more funding for the Environmental Protection Agency. CropLife America President and CEO Chris Novak says EPA needs more people to get products registered on a timely basis. “EPA is supposed review a new pesticide application and make a decision within two years. That’s taking at least three years and EPA has indicated to complete the Endangered Species (Act) review, it could take an additional 12 months.” At the American Sugarbeet Growers Association meeting, Novak said CropLife wants EPA to remain focused on science, rather than the hazard-based strategy advocated by activists. Listen online to the interview.

A Stronger Food Supply Chain – According to American Sugarbeet Growers Association President Nate Hultgren, agriculture has a simple message. “It is a national security issue if we can’t get food to consumers in the grocery store so all commodity groups are talking to Congress about strengthening our food supply chains,” said the Raymond, Minnesota farmer. “We’ve been great at making the products and getting the crops grown, we need to make sure they can get to market.”

Divided Government Influences Legislative Agenda – The Republicans have a slim nine-vote margin in the House. In the Senate, the Democrats have a two-vote majority. In an interview with the Red River Farm Network, Minnesota Senator Tina Smith was asked how big issues, like immigration or the farm bill, will happen. “You mention immigration which has been such a challenge,” said Smith. “People feel really impatient because there is such a need to address the shortage of workers in farm country. I’m not going to sugarcoat it, it will be hard to get something done here with such a divided government.” Smith said the farm bill is traditionally a bipartisan piece of legislation and that leaves room for optimism. “The farm bill is one of two or three ‘must-pass’ bills for 2023, it has to get done and we can’t let it go unauthorized.” Smith is a member of the Senate Agriculture Committee and chairs the Subcommittee on Commodities, Risk Management and Trade.

Corn Matters – The Soil Health Grant program deadline is Monday, February 6, 2023. Hear more from Minnesota Corn Growers Association past president Bryan Biegler in the latest Corn Matters.

An Opportunity for Legislation That Everybody Needs – Neither party has an overwhelming majority in Congress. Minnesota Representative Michelle Fischbach sees a silver lining to the situation. “I see it as an opportunity because I think then you’re going to get bills that reflect what everybody needs and what the country needs. We can’t just put something out and say take it or leave it; we’re going to have to be talking about it and make sure it fits what people need.” Speaker Kevin McCarthy has agreed to an open rule, leaving the possibility for hundreds of amendments to a bill. That could be a negative situation with a complex farm bill. Fischbach is a member of the House Rules Committee and believes this can be addressed. “Each bill gets a different rule. I think the farm bill is probably a little bit more delicate so you’ll probably see either a structured rule or potentially a closed rule where there won’t be amendments on the floor but amendments in the other committees.” Fischbach is also a member of the powerful Ways and Means Committee, which has jurisdiction on everything from taxes to trade. Listen to the complete interview.

 

A Different Farm Bill Atmosphere – Wheat growers were in Washington, D.C. for annual meetings this past week. “As farmers, we understand the need to have a farm bill, but at the same time we realize that it’s a new Congress and a whole different atmosphere out here; we’re not real sure what will happen,” said Erik Younggren, who farms at Hallock, Minnesota. Exports remain a priority. “At least half of the bushels we produce need to leave the country and our export programs are at the front of our mind right now,” said Younggren. “We need those (export promotion) programs renewed.” Younggren is a past president of the National Association of Wheat Growers.

Reference Price Increase Dependent on Financial Resources – Budget resources are expected to be limited going into the farm bill debate. At the same time, the economics have changed in farming and ranching. South Dakota Senator John Thune said agriculture is asking for an increase in reference prices. “Commodity groups, Farm Bureau, everybody wants higher reference prices and we’ll see,” said South Dakota Senator John Thune. “There’s a solid economic argument for an increase, but it is all going to depend on what kind of financial allocation we get.” In the meantime, Thune feels it is important to put together the best policy ideas for the farm bill. During RRFN’s time in Washington, D.C., Thune and Minnesota Senator Amy Klobuchar reintroduced the Conservation Reserve Program Improvement Act, addressing implementation issues in the 2018 farm bill. Listen to the RRFN interview.

Fielding Questions – With a new farm bill is being written in Washington, D.C., the Fielding Questions podcast considers the process. Howard Olson, SVP Government and Public Affairs with AgCountry Farm Credit Services, discusses the current scenario and where the opportunities and challenges lie in getting a new bill done in 2023. Fielding Questions is produced by AgCountry Farm Credit Services and the Red River Farm Network.

A Farm Bill Extension Likely – The current farm program expires at the end of September. Minnesota Association of Wheat Growers President Mike Gunderson doubts if a new farm bill can be passed by that time. “More than likely, it looks like it’s going to have to be an extension,” said Gunderson. “They probably don’t want to admit to that yet, but we haven’t been having the farm bill hearings out in the country and that’s part of our push to get those hearings going.” Gunderson would like to see a stronger safety net, rather than relying on ad hoc disaster programs.

Crop Insurance, Crop Insurance, Crop Insurance – Crookston farmer Tim Dufault represented Minnesota at the Wheat Industry Winter Conference in Washington, D.C. RRFN asked Dufault about the wheat industry’s focus for the farm bill? “Crop insurance, crop insurance, crop insurance,” was the reply. “We’ve got away from other support programs and crop insurance is really working well for everyone so we want to see that maintained.”

MN Wheat Minute – The National Association of Wheat Growers and U.S. Wheat Associates are holding their annual meeting in Washington D.C. Minnesota Association of Wheat Growers CEO Charlie Vogel talks about setting priorities in this week’s Minnesota Wheat Minute.

Market Development Funds Sought – All commodities rely on USDA Foreign Market Development and Market Access Program funding to expand trade. Approximately $200 million is available each year. “It’s a very small share of the overall farm bill budget, but critically important for us as producers because for every dollar we put in, it is leveraged with FMD/MAP funding to help do international market development,” said Jim Peterson, policy and marketing director, North Dakota Wheat Commission. More resources are being sought in the new farm bill for these programs. “It’ll be a challenge with the current deficit and other pressures in the farm bill from the nutrition side, but we’re very hopeful because it’s been since 2002 since there’s been an increase in (funding for) those programs.” Peterson was part of the annual winter meetings of the National Association of Wheat Growers and U.S. Wheat Associates.

WOTUS: An Existential Crisis for North Dakota – North Dakota Congressman Kelly Armstrong says the Waters of the United States rule is detrimental to the farmers and ranchers in the Northern Plains. “It’s an existential crisis to North Dakota. Every single ag producer and every single cattle rancher know what it means if the federal government is knocking on their door before they can plant a soybean crop or they can run some cows on their pasture.” In an interview with the Red River Farm Network, Armstrong said WOTUS is one of the biggest mistakes being made by the federal government. “We’re not asking for no regulation, we’ve never asked for no regulation, but why don’t we let an ag-producing state make the determinations on how to regulate the land where we’re producing the products the world needs.” Armstrong is part of a Congressional Review Act petition regarding the Biden Administration’s WOTUS rule. If passed,  if forces Congress to act on an administrative ruling that has a negative impact.

Soil Fertility Minute – On this week’s Soil Fertility Minute, sponsored by the Agricultural Fertilizer Research and Education Council, University of Minnesota Extension Nutrient Management Specialist Fabián Fernández discusses a few upcoming conferences that focus on nitrogen and nutrient management.

EWG Highlights Lenders in Latest Farm Payment Database – The Environmental Working Group is out with its latest farm subsidy database. Rather than releasing the names of farmers receiving government payments, USDA is now releasing the name of the bank or financial institution financing the farm’s operating loan. EWG says the Price Loss Coverage program paid out the most money to lenders, accounting for six percent of farm subsidies from 2019 to 2021. The Farm Service Agency received the most payments in 2021 at $87 million. AgriFund, which does business as Ag Resource Management, received nearly $35 million. AgCountry Farm Credit Services is ranked third at $18 million.

EWG Database Described as ‘Misleading’ – The Environmental Working Group’s so-called Farm Subsidy Database has been highlighting farm program payments since 1995. Rather than releasing the names of all farmers receiving payments, USDA now lists the lender. AgCountry Farm Credit Services President and CEO Marc Knisely says the EWG information is misleading. “The only time a lender is listed as having received this support payment is when the farmer actually makes an assignment to a lender,” said Knisely. “This money does not come to the lender for the lender’s benefit, it is provided on behalf of the farmers and ranchers as a payment to be applied to their loan.” Knisely also takes issue with the EWG characterizing farm program payments as a subsidy. “It is just unfortunate; causing a rift by using terminology like that is disappointing.”

Tensions Rise Over Suspected Spy Balloon – China is criticizing the Biden Administration’s decision to shoot down the suspected surveillance balloon. A Chinese foreign ministry official said the U.S.’s use of force is “a clear overreaction and a serious violation of international practice.” A threat of retaliation was also made by the Chinese. U.S. Secretary of State Antony Blinken was scheduled to travel to China Friday, but canceled the trip in response to the suspected spy balloon.

A Threat to National Security – The U.S. Air Force considers the proposed Fufeng corn wet milling project in Grand Forks to be “a significant threat to national security.” The Fufeng Group is a Chinese-owned food manufacturing company that purchased 370 acres of land 12 miles east of the Grand Forks Air Force base. The proposal generated national headlines and criticism from state and federal lawmakers about foreign ownership of farmland.

More Aggressive Approach Expected With China – With the Air Force declaring Fufeng USA a national security threat, the proposed Grand Forks project will likely not happen. In an interview with the Red River Farm Network, North Dakota Senator Kevin Cramer said Fufeng has become “a flashpoint,” but it reflects a bigger issue with foreign ownership of farmland. “I think you’ll see a much more aggressive approach in pushing back against Chinese investment across the country.” China remains a major customer for U.S. agriculture. Cramer said balance must be sought, “but, we cannot be as naive as we’ve been for the past couple of decades.” The interview with Cramer also includes comments on the debt ceiling, Waters of the United States, the farm bill and energy.

MFBF Minute – Minnesota Farm Bureau is establishing a new ag. program called the Agriculture Leadership Network. Minnesota Farm Bureau Leadership Coordinator Rachael Peterson has more details in the latest Minnesota Farm Bureau Minute.

Cattle Industry Facing “A Real Challenge” – National Cattlemen’s Beef Association President Todd Wilkinson has made disease traceability his platform. USDA recent proposed rulemaking on electronic identification was expected. The ruling would require electronic identification on breeding livestock over 18 months of age and would replace the current metal Bangs tag. Wilkinson is especially concerned about disease traceability for foot and mouth disease. “We as an industry are facing a real challenge. The one that’s spreading all across the globe is hoof and mouth disease. If it gets in, there’s an immediate 72-hour rule where you can’t move cattle for a few days and could completely stop production.”

Utilizing Carbon Demand – Sustainability was a big topic of conversation at the National Cattlemen’s Convention and NCBA Trade Show. Speaking on a sustainability panel, G. Kee Jim Farms President Kee Jim says carbon credit programs will only grow with time. “We’ve been very focused on producing renewable natural gas and positioning ourselves to sell carbon credits to companies who are trying to become carbon neutral.” Jim says value added agriculture can help pave the way for more sustainable practices. “You can create a feeding industry around the grain sector and create more sustainable practices through feedstuffs.”

Ensuring Conservation Programs in the Next Farm Bill – NCBA Executive Director of Government Affairs Kent Bacus says the farm bill dominated policy discussions at the National Cattlemen’s Beef Association Convention. “It sets into play all of the USDA programs available to producers. We do work with a lot of conservation issues and want to make sure those tools are available for our producers.” The vaccine bank is another priority. “We have to make sure we can defend against foreign animal disease that could devastate the livestock sector.”

MN Beef Update – Minnesota State Cattlemen’s Association President-Elect Jake Thompson discusses leadership shifts in the latest Minnesota Beef Update.

A Resilient Beef Industry – Davenport, North Dakota rancher Travis Maddock is a member of Beef Promotion Operating Committee and says a declining cow herd and inflation will influence beef checkoff resources. “I challenged our contractors, you better come in with some good projects because there’s going to have to be some things that just get cut out; that’s inevitable. We have to get those dollars into those projects that have a good return; the projects that don’t will go by the wayside.” Maddock, who is also a member of the North Dakota Beef Commission, believes the beef industry is very resilient. “A consumer will walk by the meatcase and they’ll grab a chuck roast for $6.99 a pound when they’re just a couple steps away from a pork loin for $1.99. Consumers love beef. They know it’s healthy and they know it’s going to taste great.”

Contract Library and Calf Insurance Under Evaluation – North Dakota Stockmen’s Association President Jason Leiseth concentrated on policy work at the National Cattlemen’s Beef Association Convention in New Orleans. “The Livestock Marketing Committee focused on the Cattle Contract Library Pilot Program to help improve transparency in the industry.”An insurance program geared towards weaned calves, similar to crop insurance, is also being evaluated. “It’s also in a pilot program stage. South Dakota, Nebraska, Colorado, and Texas are just a few of the states that are testing it this year. If it’s successful, it could expand to include other states.”

Cost Concerns – North Dakota Stockmen’s Association Past President Dan Rorvig chairs the National Cattlemen’s Beef Association Tax and Credit Committee. Rorvig is concerned about high input costs and rising interest rates. “We are a little optimistic about the direction feeder cattle and fat cattle are going with the supply/demand issue, but we’re concerned our income is not keeping up with the cost of producing those animals.”

 

Staying True to the Grassroots – South Dakota Cattlemen’s Association President Eric Jennings believes the organization stays true to its grassroots and members can bring local, or regional concerns to the national level to be addressed. New policy proposals happen in every committee.  “You have an opportunity for your voice to be heard, you just have to get up off your seat and participate.”

Cattle Inventory Down Three Percent – The U.S. cattle inventory totaled 89.3 million had on January one, three percent below one year ago. Beef cow numbers were down four percent while the number of dairy cows was up slightly. The USDA survey is conducted each January and July.

Down Across the Board – All cattle and calves in the United States as of January 1 totaled 89.3 million head, down three percent from a year ago. All cows and heifers totaled 38.3 million head, down three percent from a year ago. Beef cow inventory was down four percent from a year ago at 28.9 million head and the lowest inventory on record while milk cow inventory is up slightly at 9.4 million head.  Replacement beef heifers are down six percent and milk replacement heifers are down two percent from a year ago. USDA livestock analyst Shayle Shagam says beef cow replacement dropped from last year. “The number of heifers that producers are retaining for beef cow replacement was just under 5.2 million head which was about 6% below a year earlier. We had steers at about 16.1 million head down 3%, about 2 million head down 4% in calves under 500 pounds at about 13.6% about 3% below a year earlier.”

A Slower Cattle Cycle – During the Cattlemen’s Convention and NCBA Trade Show, RaboResearch Senior Animal Protein Analyst Lance Zimmerman said comparisons are being made to 2014, but cow herd expansion may be happening at a slower pace. “We had a lot of headwinds different from the past that means a slower cow herd expansion, especially with how extreme our liquidation was.” Competition with other proteins could sway consumer choices. “With ample, beef, chicken, and pork in the marketplace and consumers stress levels up, if might be more challenging.”

 

LMA Applauds A-PLUS Act – A bill has been introduced in Congress that would allow livestock auction market owners to invest in small and regional meatpackers. Livestock Marketing Association Vice President of Government and Industry Affairs Chelsea Good says the Amplifying Processing of Livestock in the United States Act (A-PLUS Act) would remove an outdated regulatory barrier.  “This rule should help boost investment into those businesses.”

Improving Transparency – USDA has launched the Cattle Contract Library Pilot Program. South Dakota Representative Dusty Johnson introduced the Cattle Contract Library Act in 2021 and called the program “a step in the right direction to improve our cattle market and transparency for producers”. The program will allow producers to view price components of cattle contracts, giving them more information while protecting confidential information of the contract holders. The library is set to go live on February 6, 2023.

High Path’s High Impact – Highly Pathogenic Avian Influenza has had a huge impact on the poultry industry. Certainly, the disease poses catastrophic impacts on farms that test positive, but it can also impact other flocks or operations. According to Minnesota Board of Animal Health Executive Director Dr. Marion Garcia, when one farm or location tests positive, any other farms within a certain distance and those that have shared equipment or personnel will have to follow special protocols. Garcia says preparation, record keeping, and management can help limit devastation of serious infectious diseases.

Animal Ag Friendly County Designation Bill Advances – Senate Bill 2373 passed unanimously in the North Dakota Senate Agriculture committee this past week. The bill would allow the state agriculture commissioner to designate livestock-friendly counties if they certain criteria. Senator Robert Erbele introduced the bill explaining it would allow counties to better plan where projects would be allowed preemptively. Erbele says this would allow potential projects to be sited in locations already considered by the counties with this specific designation.

North Dakota Legislative Report – House Agriculture Committee Chair Paul Thomas introduced HB 1423. “The emphasis with this bill is to improve upon relationships between counties, townships and private landowners.” Listen to the weekly North Dakota Legislative Report for more details.

Noxious Weed Bill Heard in St. Paul – The Minnesota House Agriculture Finance and Policy Committee is working on a bill, delivering $1 million per year for county ag inspectors. This bill takes a proactive approach to controlling noxious weed control. The amended version of the bill was laid over for possible insertion into an omnibus bill.

Fertilizer Tonnage Fee Increase Proposal in MN – The Minnesota Department of Agriculture has proposed to the increase the fertilizer tonnage fee by 25 cents per ton. This fee funds inspections, permitting, and nitrogen point source evaluations. Ag Commissioner Thom Petersen says the cost to individual farmers would average about $20 per year, but that would come with safety benefits. This tonnage fee would be raised from a total of $1.27 per ton to $1.52 per ton. According to state statutes, a tonnage report and inspection fee is not required by a licensee who distributes fertilizer solely by custom application.

Clean Cars Plan Upheld in MN – The Clean Cars plan is upheld after the Minnesota Court of Appeals said the Minnesota Pollution Control Agency did not violate the nondelegation doctrine. The Minnesota Auto Dealers Association challenged the plan saying there is limited demand for electric vehicles that would cause unsold inventory, and drive consumers elsewhere. The Clean Cars plan will go into effect with model year 2025 vehicles that will be available at dealerships in early 2024.

Fewer Bills Being Introduced in Pierre – South Dakota Governor Kristi Noem proposed legislation a month ago to restrict foreign ownership of agricultural land. The bill was introduced this past week. Outside of that, South Dakota Farmers Union lobbyist Mitch Richter says it has been a relatively quiet session for ag policy. Richter expects there will be fewer bills introduced due to the large number of new legislators. “We typically have 550-to-600 bills, but we’ll be down a little this year.”

SD Corn Comments – In this week’s edition of South Dakota Corn Comments, Feeding South Dakota CEO Lori Dykstra talks about South Dakota Corn Council’s support for the program.

What’s Hot, What’s Not in Markets – In this week’s edition of What’s Hot, What’s Not in the Markets, Martinson Ag Risk Management President Randy Martinson points to the strength in the soybean meal market. The condition of the Argentine soybean crop is cited as the issue. Wheat demand remains weak. USDA’s latest supply/demand report will update those numbers Wednesday.

Another Interest Rate Bump – As expected, the Federal Open Market Committee has raised the base interest rate. In addition to a quarter-percentage-point interest rate hike, the FOMC signaled plans to raise rates again next month.

Canola Minute – This week, we hear from Northern Canola Growers Association Executive Director Barry Coleman discuss canola numbers in the latest USDA crop report. Tune into this week’s Canola Minute to hear more.

NDSU Forecasts Commodity Prices – NDSU Extension has released its 2023 short-term and long-term planning price projections. Farm Management Specialist Ron Haugen says commodity prices remain positive. “Spring wheat is projected to be about $8 per bushel, corn at $5.25 and soybeans at $12.25 per bushel.” Price projections also include malting barley at $6.50 per bushel, oil sunflowers at $25 per hundredweight, canola at $25 per hundredweight, winter wheat at $7 per bushel, dry beans at $36 per hundredweight and alfalfa hay at $120 per ton. “The 400-500 pound steers are projected at $235 per hundredweight while the higher weights (800-900 lbs.) are projected at $195 per hundredweight. Cattle prices are based on a lot of things including the cattle cycle and demand.” Cull cows are projected at $90 per hundredweight, slaughter hogs at $68 per hundredweight and 60-90 lbs. feeder lambs at $180 per hundredweight. You can find the full price outlook here.

Ransomware Attack Delays Commitment of Traders Report – The weekly Commodity Futures Trading Commission Commitment of Traders Report is unavailable. A third-party financial data firm is unable to provide the information due to a cyber-attack. A ransom was reportedly paid to a hacking group called LockBit. It may take days to fix this situation.

Register Now for All You Need to Know About Wheat Quality – The Northern Crops Institute is hosting another Cereal Innovators webinar Wednesday morning at nine. This webinar will feature Dr. Senay Simsek, professor and head of the Dean’s Chair in Food Science at Purdue University. Simsek will discuss ‘All You Need to Know About Wheat Quality.’ The author of the soon-to-be-released Wheat Quality Handbook will also be featured in this interactive webinar. Topics highlighted in this webinar series include new processes, useful information on milling and baking, equipment information, and uses for cereal grains grown in Minnesota, North Dakota, South Dakota and Montana. Register for the webinar online.

A Big Corn Year – Channel Seed agronomist Derek Crompton is expecting more corn acres to go in this spring.”It looks like we’re going to have a strong corn year.” Crompton was part of Agronomy on Ice at Devils Lake, North Dakota. Favorable spring weather has been seen in the long-term forecast. Regardless, Crompton says hybrids are available to handle all kinds of weather conditions. “Eighty-four day and 90 day corn technology looks powerful.”

Argentine Weather Remains the Story – World Weather Incorporated Senior Agriculture Meteorologist Drew Lerner is painting a bleak picture for the Argentine crop. “They’ve had a terrible year with a lot of drought and poor potential yield. The early crop was much smaller due to the drought, but the late crop may stand a fighting chance.”  Recent moisture could help improve the second crop.

Brazilian Ethanol Tariff Returns – Brazil is implementing a 16 percent tariff on ethanol imports until the end of the year. That tax will increase to 18 percent next year. The Renewable Fuels Association is disappointed, saying the U.S. and Brazil should be working together and not imposing protectionist policies.

New Standards Proposed for School Nutrition – USDA is proposing new nutritional standards for school meals. This plan would limit added sugars to an average of no more than ten percent of calories per week. At least 80 percent of weekly grains consumption must be whole grain products. USDA is considering two options for milk. One would limit milk choices in elementary and middle school to white milk. The other option would allow fat-free and low-fat flavored and unflavored milk for all grades. Agriculture Secretary Tom Vilsack said the standards will be phased in. “We begin in the school year of 2024-2025 with full implementation with all the standards across the board by the school year of 2029-2030.”

Planning for Farm Succession – Taking the first step toward succession planning can be the most difficult. Paul Lanoue farms near Marshall, Minnesota and has worked to help families plan farm transitions. “We say ‘we need to do this someday but first we need to feed cows.’ The reality is that the farm will transition some way shape or form.” Said Lanoue, pointing out that there are ways to make that transition smoother when looking at management transitions and asset transitions holistically. Minnesota has a lot of resources to aid in planning for the next person to continue farming. Lanoue suggests agcentric.org or visiting the Minnesota Department of Agriculture’s website.

A Trusted Advisor Partnership – The Trusted Advisor Partnership brings food companies, academia, and agriculture to adopt or expand the use of profitable stewardship practices. NDSU Soil Health Specialist Abby Wick has the first group of certified crop advisors signed up for the program. “We’re trying to bring soil health information to them in a way that is science-based and also practical.” A dozen individuals have signed up for the initial online course. Wick says the goal is to have a flexible program that improves soil health. “Whether it’s reducing tillage or maybe it’s not doing fall tillage but only spring tillage, possibly using cover crops and diversifying the rotation or managing some of those saline spots. It’s just fine-tuning those practices, doing what’s right to produce a great crop while keeping in mind the soil as a resource and protecting that resource.”

 

Supply Chain for 2023 Restored – Mark Ramsey, who leads MR Ag Consulting, is excited to see logistical issues worked out in 2023 after the recent supply chain struggles. “Things have finally progressed to where we’re able to get what we need when we want it.” With the potential of an earlier spring than 2022, Ramsey expects to see slightly more corn acres this year. Ramsey was part of the Pioneer presence at Agronomy on Ice in Devils Lake.

Record Revenue and Income for CNH Industrial – CNH Industrial reports record net income of $592 million for 2022, up from $464 million in the previous year. Agriculture sales were up nearly 30 percent due to higher sales volume and a favorable price situation. In North America, sales of 140 horsepower and higher tractors were flat and down 14 percent for the smaller tractors. Combine sales rose 44 percent.

Corteva Enjoys Double-Digit Sales Growth – In its year-end report, Corteva Agriscience net sales rose 11 percent from one year ago. Seed sales grew seven percent with notable gains in Latin American corn and North American soybeans. The results were partially offset by a reduction in corn acres and canola volumes in North America. Crop protection sales rose 17 percent. Volume gains were driven by new products, including Enlist.

CP-KCS Merger Decision Coming Soon – The Surface Transportation Board Office of Environmental Analysis has released the final Environmental Impact Statement for the proposed merger of the Canadian Pacific and Kansas City Southern railroads. The STB is expected to make its final decision on the merger within the next month.

From Doosan to DEVELON – The company behind the Bobcat brand is going through a name change. Doosan will now be known as DEVELON. A name change has been in the works since August of 2021 when Doosan Infracore was sold to HD Hyundai.

Optimism for ’23 Beet Season – The 2022 sugarbeet crop went into the pile in good condition and is storing well. SES VanderHave Sales and Marketing Manager Nick Revier would like to see Mother Nature cooperate for a more timely planting season this year. “We’re going into the season somewhat on the dry side so hopefully some of this extra snow will soak in and give us moisture for planting.” Revier said new genetics is on the way to regional beet growers, including tolerance to cercospora root rot, aphanomyces and rhizoctonia root rot. These varieties will be evaluated during this growing season and be ready for commercial release in 2024 and 2025. Listen to the RRFN interview.

Beet Stock Values – According to Acres & Shares broker, Jayson Menke, a half dozen American Crystal Sugar Company beet stock trades were made this past week. These trades totaling 120 shares at an average price of just less than $4,500 per share.

Starter Fertilizer Delivers ROI – A starter fertilizer can get the sugarbeet crop off to a fast start. Nutrien Ag Solutions product manager Paul Detloff says the return-on-investment can be seen with the tons per acre and the sucrose per acre piece. ‘Riser is a nutritional 7-17-3 product with a micronutrient package and it has the zinc ammonia acetate component to it,” said Detloff. “That’s really different than anything else in the industry, allowing that product to have that zinc available for the plant.” The nutrient release begins in the early spring when the microbes aren’t active. It goes on to release those nutrients throughout the entire growing season.

CR+ Delivering Extra Protection – Positive results were seen in Betaseed’s first season with its cercospora tolerance trait in the American Crystal market. Regional Sales Manager Lynn Dusek  says this is an important trait. “Fungicides are becoming more tolerant to cercospora and the resistant genes keep expressing; CR+ gives growers another tool.” The month of September can always be a challenge in the sugarbeet industry. “Cercospora can flare in late August and the month of September. CR+ is helping give us extra protection.” Dusek says approximately 50 percent of the ACSC growers have purchased the CR+ traited seed.

Betaseed Hires Two New Sales Associates – Steven Taves and Sydnie Shepherd have joined Betaseed as sales associates. Taves will work with Betaseed Key Accounts Manager Cody Lehman in the Minn-Dak Farmers Cooperative, Southern Minnesota Beet Sugar Cooperative and Lantic Sugar sales regions. Shepherd will work with Betaseed Sales Manager John Samdahl in the American Crystal Sugar Company market. Taves lives in Glyndon, Minnesota and worked in sales for a regional seed company. Shepherd resides in Leonard, North Dakota, interned with Betaseed for three summers and recently was in sales with a heavy construction equipment company.

Career Moves Announced at RDO Equipment – RDO Equipment CEO Tim Curoe has announced the promotion of Chris Cooper from COO to the company’s presidency. Adam Gilbertson was selected for  anew company role as senior vice president of field technology and innovation. Previously, Gilbertson was the vice president of RDO’s Midwest Construction business. Kelly Gress was appointed senior vice president after being in a vice president role for the last decade. Ryan Johnson was named the senior vice president of talent management. Johnson has been with RDO for nearly 20 years and also provides expertise to the RDO Equipment parent company R.D. Offutt Company.

New Name for Food Ingredient Business – Scoular has introduced a new name for its food ingredient business, Scoular Food Innovation. The name is designed to reflect the company’s food industry expertise in supplying “on-trend ingredients.”

Preparing for BRD Before Calving Season – Zoetis Director of Beef Technical Services Mitch Blanding says Bovine Respiratory Disease is the costliest animal disease dealt with in the livestock industry. “On an annual basis, it costs the industry somewhere north of a billion dollars.” Blanding says with calving season almost here, BRD cases will ramp up with young livestock, so colostrum consumption becomes extremely important. “Young animals’ immune systems aren’t as confident as older animals. The first step to protection is colostrum intake.”

Johnson, Finstad Appointed Subcommittee Chairs – House Agriculture Committee Chairman Glenn ‘G.T.’ Thompson has named his subcommittee chairs. South Dakota Congressman Dusty Johnson will lead the Commodity Markets, Digital Assets and Rural Development Subcommittee. Minnesota Congressman Brad Finstad is leading the Subcommittee on Nutrition, Foreign Agriculture and Horticulture.

Dry Bean Scene – Northarvest’ s Executive Director Mitch Coulter is a new member of the Rural Leadership Council. NDSU Extension Rural Leadership Program Director Katie Tyler joins us to talk about the Rural Leadership Council and the importance of commodity group support in this week’s Dry Bean Scene. The Dry Bean Scene is sponsored by the Northarvest Bean Growers Association.

SD Ranch Competing from National Environmental Stewardship Award – Jorgensen Land and Cattle Company of Ideal, South Dakota is one of seven regional award winners of the Environmental Stewardship Award. A national winner will be announced during the National Cattlemen’s Beef Association Legislative Conference in April.

ND Agricultural Hall of Fame Inductees Announced – The honorees are Nancy Jo Bateman of New Salem and Jerry Doan of Bismarck. Bateman is the former executive director of the North Dakota Beef Commission who retired at the end of 2022. Doan was the first chair of the State Board of Agricultural Research and operates the Black Leg Ranch. The ceremony will be March 8 at the North Dakota Winter Show in Valley City.

Job Opportunities in Agriculture – The Red River Farm Network is connecting agricultural companies, organizations and farms with high quality job prospects. Click on the Job Opportunities in Agriculture tab on the RRFN website to see the latest listings. Minnesota’s AURI is looking for a business development director. R.D. Offutt Farms is seeking a team lead and has three agronomy internships available. Dakota Ingredients, Pioneer and others are among those listed at this time. If you want your job listed, contact don@rrfn.com or kolleen@rrfn.com.

U.S. Wheat Associates Elects ’23-’24 Officer Team – East Grand Forks farmer Rhonda Larson will be succeeded by Oklahoma farmer Michael Peters as chairperson of U.S. Wheat Associates. Larson will turn over the leadership of the group at the U.S. Wheat Associates board meeting in Minneapolis in July. Jim Pellman of McClusky, North Dakota was elected secretary-treasurer.

ASGA Officers Re-elected – American Sugarbeet Growers Association President Nate Hultgren of Raymond, Minnesota was re-elected to a second term. ASGA Vice President Neil Rockstad of Ada, Minnesota was also re-elected.

Wilkinson Leads NCBA – De Smet, South Dakota cow-calf producer and cattle feeder Todd Wilkinson is the new president of the National Cattlemen’s Beef Association. Wilkinson succeeds Don Scheifelbein of Kimball, Minnesota. Clark Price of Washburn, North Dakota was elected as chair of the NCBA Federation division.

Trailblazers Ready to Tell Beef’s Story – The National Cattlemen’s Beef Association and Beef Checkoff has launched its Trailblazers program, giving participants the tools and training to promote beef while correcting myths. Ten individuals have been selected, including Haley Ammann-Ekstrom of Welcome, Minnesota and Shaye Koester of Steele, North Dakota.

Posthumous Honors for Schatzke – Jason Schatzke was posthumously named the American Sugarbeet Growers Association Sugarbeet Producer of the Year. The Wheatland, North Dakota was a member of the ASGA and Red River Valley Sugarbeet Growers Association boards. Schatzke died in a car accident in November.

Former Minnesota Senator Passes – Former Minnesota Senator Dave Durenberger, 88, passed away at his home Tuesday. Durenberger served in the U.S. Senate from 1979-to-1995.

Last Week’s Trivia-In 1985, Coca Cola a new recipe for its signature product. ‘New Coke’ was a a marketing flop and the original formulation returned less than three months later. Keith Rekow of Dairyland Seed wins our weekly trivia challenge. Runner-up honors belong to Mark Mettler of PreferredOne, Micheal Rose of Grand Forks, Mark Haugland of the National Wheat Foundation and Strasburg farmer Kenny Nieuwsma. The ‘first 20’ rounds out with retired NDSU Extension dairy specialist J.W. Schroeder, Randy Knudsvig of First State Bank, Kevin Praska of Stone’s Mobile Radio, Kristal Rick of MAGNO Seed, Bob Lebacken of RML Trading, Dianne Bettin of LB Pork, Lee Hutchinson of Farm Credit Services of Mandan, Val Dolcini of Syngenta, Wayne Christ of CHS Agronomy, retired Pennock dairy farmer David Hallberg, Regan farmer Jim McCullough, Callaway farmer Bill Zurn, Clyde Tiffany of Pioneer, Phyllis Nystrom of CHS Hedging and Pisek farmer Ernie Barta.

This Week’s Trivia- To receive a score in the sport of bull riding, how long does the cowboy need to stay on top of the bull? Send your answer to don@rrfn.com. 

Contact RRFN
Don Wick
(701) 795-1315
Jamie Dickerman
(701)-795-1315
Kloe Wadd
(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.

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