A Weekly Update from the Red River Farm Network

Monday, February 07, 2022

Subscribe to FarmNetNews- The stories found in FarmNetNews are a reflection of what is heard on the RRFN radio programs each day. As you know, it covers everything from policy news to what’s happening in the world of trade. You’ll find stories on crop and livestock production and market sensitive news. If you know someone who would benefit from this newsletter, they can subscribe at www.rrfn.com. You can also email don@rrfn.com and we’ll add those names to the subscription list.

Wiesemeyer: Washington D.C. is Dysfunctional – ProFarmer Washington analyst Jim Wiesemeyer caught the attention of the farmers attending the American Sugarbeet Growers Association annual meeting. “I told attendees Washington is more dysfunctional than what they see and got a few gasps from the audience, but that’s the case.” There are major differences between the Republican and Democratic parties and political strife with each party. “The only time it will reconcile is when a true minority party is defined. Republicans on the House Ag Committee plan to be back into power in the next Congress.” Hear the story.

Navigating Farm Policy in 2022 – The past year was a time of significant change for farm policy. American Sugarbeet Growers Association Executive Vice President Luther Markwart says there is a lot of work to do. “How do the disruptions impact the domestic sugar industry and members of Congress? Congress is not operating the way it used to operate and it’s difficult to navigate when everyone is not in person.” In addition to farm policy, Markwart says seems to be in the crosshairs of EPA. “There’s a lot of challenges on the pesticide front. We’re working with others in agriculture to make sure the EPA doesn’t do things harmful to the industry.”

Beet Stock Values – American Crystal Sugar Company beet stock trended higher last week based on lower supply. According to Acres & Shares broker, Jayson Menke, shares traded in a range of $4,200 to $4,350 per share. For the week 190 shares were brokered at an average price of $4,264.47 per share.

Hultgren, Rockstad Lead ASGA – Nate Hultgren of Raymond, Minnesota was unanimously elected president of the American Sugarbeet Growers Association. Hultgren also chairs the Southern Minnesota Beet Sugar Cooperative and succeeds Dan Younggren of Hallock, Minnesota. Neil Rockstad of Ada, Minnesota was elected ASGA vice president. Rockstad is president of the Red River Valley Sugarbeet Growers Association.

Vilsack: New Farm Bill Needs More Flexibility – Agriculture Secretary Tom Vilsack would like the next farm bill to have flexible programs. “We found in the course of the COVID pandemic and other significant disasters that different parts of the country have been impacted or affected differently. Sometimes a program designed to be nationwide works well in one part of the country, but not as well in another part of the country.” Vilsack told the Red River Farm Network that is why Congress felt the need to establish the WHIP+ program and increase investments in that program to address the issues.” Vilsack said farm program flexibility should distinguish between geographical areas and commodities when providing assistance. “We allow the natural resources advantage we have in rural areas to be a value added somewhere other than rural places. The challenge for us to be will to look at ways in which farm bill programs can encourage a more circular effort where advantages stay in relatively the same location.”

Reviewing the 2018 Farm Bill to Develop New Policy – In preparation for the next farm bill, the House Agriculture Committee is reviewing current policies. Farm Service Agency Administrator Zach Ducheneaux and Natural Resources Conservation Service Chief Terry Cosby testified for the conservation and forestry subcommittee this past week. Ducheneaux said programs are still being implemented. “When I came on board last February, there were a few things that hadn’t reached the finish line. One of those is the Heirs’ Property Relending program. Another aspect is the expansion of the Conservation Reserve Enhancement Program.” From an NRCS perspective, Cosby said program flexibility to encourage participation will be important going forward. “EQIP is one example.” Watch the hearing.

Task Force Drafts Climate Guidelines for Farm Bill – The Bipartisan Policy Center’s Farm and Forest Carbon Solutions Task Force released a report proposing new climate guidelines for the upcoming farm bill. Former North Dakota Senator Heidi Heitkamp is on the task force. “We’re looking at how agriculture engages in the long-term in the process of climate solutions. How do we ensure we have a seat at the table?” There are five themes or areas of policy recommendations ranging from developing new finance and insurance instruments, strengthening voluntary carbon markets and expanding existing conservation programs. “When it comes to expanding existing programs, the best example I can give is EQIP. I’ve seen it work during the drought in western North Dakota. Farmers could use that program and still have grass for their herd. Unfortunately, it’s over prescribed, which means there are more people that want to use it than we have money for and we need to make sure those who want to use this program can.”

GAO Reviews MFP Payments – In a report on USDA’s Market Facilitation Program, the Government Accountability Office said the Farm Service Agency should have done more to determine the accuracy of the payments. The GAO report also said USDA provided little assistance to specialty crop and historically underserved farmers. A total of $23 billion of MFP payments were made in 2018 and 2019.

America COMPETES Act Passes With 222-to-210 Vote – The House has approved a $350 billion package to enhance the United States’ competitiveness with China and the rest of the world. It includes $52 billion to encourage the development of the semiconductor chip industry within the United States. There’s another $45 billion to provide grants and loans to strengthen the supply chain.

Cattle Producers May Get Disaster Aid Before Crop Producers – North Dakota Senator John Hoeven is glad to see USDA implementing disaster aid for the cattle producers trying to recover from the drought. The first phase of payments is expected in March. “That $750 million and at least the first portion will be based on Livestock Forage Program data. For all of those farmers who filed for the program, there shouldn’t be additional work to do.” For those who sold their herd instead of getting LFP, USDA will come back in the second round of payments to help. Hoeven says it could be later in the spring before the $9.25 billion in payments for the 2020 and 2021 WHIP+ programs are distributed to farmers. “I guess USDA lawyers are going back and forth with OMB lawyers on whether or not a rule is needed. I don’t think they need one, but the bottom line: it may take longer than March to get WHIP+ money out.”

Dry Bean Scene – Northarvest board member Ryan Peterson, who farms at Clear Lake, Minnesota, participated in a recent ag advisory committee meeting with Representative Michelle Fischbach. Peterson outlined dry bean industry challenges with USDA ad hoc disaster programs. Listen to the report.

Senators Want EPA to Enforce Renewable Fuel Standard – A bipartisan group of Senators, including South Dakota Senator John Thune and Minnesota Senators Amy Klobuchar and Tina Smith, sent a biofuels letter to the EPA this past week. The lawmakers asked EPA Administrator Michael Regan to take four steps to ensure confidence in the Renewable Fuel Standard. Lawmakers want EPA to deny all Small Refinery Exemptions, maintain blending requirements for 2022, eliminate the proposed retroactive cuts to the 2020 RVOs and set 2021 volumes at statutory levels.

‘Very Troubled’ – The Renewable Fuels Association wants EPA to make changes to their proposed Renewable Volume Obligations for 2021 and 2022. In public comments to the proposed rule, RFA commended the EPA for their proposed volumes for 2022. However, the pro-ethanol group is “very troubled” by the EPA’s proposal for a “reset” authority to reopen the 2020 RVO, because it could set a dangerous precedent. RFA is also concerned about the proposed implied conventional renewable fuel RVO for 2021.

Seeking First Overhaul of Grain Shipping Regs in 20 Years – Minnesota Senator Amy Klobuchar and South Dakota Senator John Thune have introduced legislation to update regulations for the grain shipping industry. This bill would require ocean carriers to certify that demurrage or late fees comply with federal regulations. It prevents ocean carriers from unreasonably denying shipping opportunities for U.S. exports and requires reports on total tonnage and containers for each vessel that makes port in the United States. The proposal was immediately met with widespread support from agriculture groups.

Klobuchar: Lawmakers Can Help with Supply Chain Challenges – Farmers are navigating product shortages due to the supply chain issues. Minnesota Senator Amy Klobuchar says there are short-term and longer-term things that could be done to help alleviate that stress. “We need to make more stuff in America. This won’t fix things in a month, but it could one year from now.”  The workforce shortage is another factor and Klobuchar says listing visa caps on immigration could also help with the labor needs. “It’s everything from agriculture temporary workers to work permits and a long-term path to citizenship as an incentive for people to work in America.”

Republican Senators Ask Agencies to Suspend WOTUS Rulemaking – Senate Republicans want the EPA and Army Corps of Engineers to suspend the pending Waters of the United States rule making. At least until the Supreme Court completes its consideration of Sackett versus the EPA. Lawmakers including Senators John Thune and John Hoeven sent a letter on Thursday.

‘A Difficult Stage in the Relationship’ – Speaking at a Washington International Trade Association virtual forum, Deputy U.S. Trade Representative Sarah Bianchi said the United States is trying to cultivate a stable rapport with China, but the two countries are in a “difficult stage in the relationship.” China did not meet the trade obligations within the Phase One trade agreement and Bianchi said the Biden Administration is considering options to hold China accountable.

China-Russia Agreement Secured for Wheat, Barley Trade – China will now accept wheat and barley imports from all regions of Russia. Previously, China restricted Russian imports due to phytosanitary concerns. China dramatically increased its wheat imports in the past year with most of that business going to the European Union, Australia and Canada. China is also the third largest international customer for U.S. wheat.

What Does Russia-Ukraine Dispute Mean for U.S. Wheat? – The uncertainty between Russia and Ukraine has local wheat growers curious about possible market impacts. Russia is the largest wheat exporter and Ukraine is the third largest in the world. NDSU Extension Crops Marketing Economist Frayne Olson said it’s very easy to have disruptions to those trade flows. “Russia has a large naval base at the Crimea Peninsula that’s about equal distance to the major export terminals of Ukraine and Russia where they ship grain. There’s only one small canal that connects the Black Sea into the Mediterranean.” Olson said it would be easy for Russia or NATO to stop shipments through that canal. If global wheat prices increase, that does not mean the United States will see a big flood of hard red winter wheat exports. “The countries Russia and Ukraine sell to are price sensitive. U.S. winter wheat tends to be higher priced than competitors.” Olson was part of the Best of the Best in Wheat and Soybean Research in Grand Forks on Thursday.

Grain Volume Drops Sharply at Duluth Port – Overall volume through the Port of Duluth-Superior was up 27 percent from 2020-to-2021. Most of that uptick was with iron ore. Grain shipments declined sharply, dropping to an 85-year low and represents the second lowest grain total for the port since 1890.

Input Costs Cut Into Net Farm Income – USDA is projecting 2022 net farm income at $113.7 billion, down 4.5 percent from last year. “A lot of the decline is due to the drop in government payments and higher production expenses,” said Spiro Stefanou, administrator, USDA Economic Research Service. USDA Chief Economist Seth Meyer said the big factor in bringing farm income down will be the dramatic drop in direct government payments. “They’re expected to fall $15.5 billion or 57 percent.” Net farm income will still be more than 15 higher than the long-term average.

Higher Input Costs and Availability Concerns Weigh on Farmer Sentiment – The January CME Group/Purdue University Ag Economy Barometer reading shows a decline in farmer sentiment from the December report. There are a few reasons for the decline. Purdue University’s Center for Commercial Agriculture Director Jim Mintert says farmers are concerned about farm income. “Commodity prices look strong, but the concerns are the cost of production and rising input costs.” Twenty percent of survey respondents indicate they’re having difficulty securing cropl inputs. Mintert thinks it will take a while for supply chain issues to unwind. Hear the story.

Price Projections Forecast Released – NDSU Extension has released its short-term and long-term price projections for farmers and ranchers preparing annual budgets and cash flow projections. The price projection for the 2022 soybean crop is $11.50 per bushel, up from $10.20 last year. Spring wheat is forecast at $7.50 per bushel, up from $5.11 per bushel this past year. The price for 2022 crop canola is projected to be at $25.50 per hundredweight, up from $18.50 last year. All commodities are well above the historic average price. Corn is projected at $4.45 per bushel. Malting barley is at $6 per bushel and oil-type sunflowers are at $25 per hundredweight. The price for 400-to-500 pound steer calves is at $200, almost $30 higher than last year.

Making the Right Farm Program Decisions for Your Farm – NDSU Extension and the North Dakota Farm Service Agency hosted an Agricultural Risk Coverage/Price Loss Coverage and a Noninsured Crop Disaster Assistance Program webinar last Thursday. NDSU Extension Farm Management Specialist Ron Haugen demonstrated two farm program calculators available through NDSU Extension. “It’s not perfect by any means, because we don’t allow for irrigation or multi-county. It’s for one county and non-irrigated, but try them out.” Haugen also demonstrated the ARC-IC. calculator. “This is an entirely different animal. Here we need to enroll all of the crops in for the farm. If more than one farm is enrolled, they need to be combined.” Check out the ARC/PLC calculator and the ARC-IC calculator.

JBS Settles Price Fixing Lawsuit – While not admitting liability, JBS SA agreed to pay $52.5 million to settle a beef price-fixing lawsuit. The allegations are JBS, Cargill, National Beef Packing and Tyson Foods conspired to limit slaughter volumes. This settlement still needs to be approved by Chief Judge John Tunheim at the federal court in Minneapolis. The National Cattlemen’s Beef Association is calling the settlement “deeply disturbing.”

‘We Need Answers’ – Newly-elected National Cattlemen’s Beef Association President Don Schiefelbein says it’s hard to accept that JBS is willing to pay over $50 million to settle allegations of price-fixing while refusing to admit any wrongdoing. “For cattle producers across the land, it’s hard to accept that you’re going to pay a huge amount, but you did nothing wrong.” The settlement comes in the dust of President Biden recently announcing his administration’s intention to level the playing field in the meat sector. NCBA has worked directly with members of Congress to press the Justice Department for an update about this investigation. “We need to have answers; we asked for the DOJ investigation almost two years ago and haven’t heard a peep from them. Yet here we are seeing settlements occur. To me, beef producers deserve more answers in terms of what happened and how big was it.” This isn’t the first time JBS has been under the crossfire. In 2020, JBS settled for $24.5 million surrounding price-fixing claims.

Bohn Reflects on Year as NCBA Leader – Looking back on his time as president of the National Cattlemen’s Beef Association, Jerry Bohn said the biggest achievement was protecting taxes for agricultural options. “The Biden Administration was looking pretty hard at taking away stepped-up basis, increasing capital gains tax, decreasing the estate tax exemption and those kind of things,” said Bohn. “All of that would have caused harm to the opportunity to pass on our land to the next generation; we were able to protect that.”

Seeking Market Transparency – NCBA Policy Division Chairman Mark Eisele says increased market transparency is a must. “We have been working on the disparity between what packers are getting versus what ranchers are getting paid for two years now. Some of it is supply and demand and people don’t like that, but it’s that’s just the reality. However, we still want to make sure that grid-pricing, branding programs, and others stay in the game so people can catch premiums.” NCBA is also gearing up for farm bill hearings where they’re focusing on price discovery.

Checkoff to Use Former NFL QB to Promote Beef – The beef checkoff is partnering with another celebrity spokesperson. Former Dallas Cowboys quarterback Tony Romo, who is now a television analyst, has a one-year contract to promote beef. Actors Matthew McConaughy and Sam Elliot have voiced beef ads in the past. Actors James Garner and Cybill Shepherd were part of the beef branding effort during the early days of the beef checkoff program.

The Beef Checkoff Investment – According to Minnesota Beef Council CEO Kelly Schmidt, domestic demand is a priority for the beef checkoff program. “We’re really excited to promote and make consumers comfortable with our product, especially being in Minnesota where there’s a lot of urban areas. It’s our job to make beef their preference when it comes to adding protein to their plate.” The investment also considers the health and nutritional benefits of beef. Regarding international marketing, “they are having amazing success in the Asian market where they are demanding high quality U.S. beef.”

Cattle Prices Should Support Profitability, Says CattleFax – The last three years has been a time of liquidation for the cattle herd. CattleFax Vice President of Analysis Kevin Good expects liquidation to continue for another year. “Last year about one-third of the cow herd was exposed to drought conditions and where we’re starting this year two-thirds of the beef cow herd is in dry conditions or worse and 40 percent is in drought conditions. We have some headwinds as we start this year.” At the Cattle Industry Convention in Houston, Good said 2022 fed steer prices will average $140 per hundredweight. That should influence the market for feeders and calves. Yearling steers are expected to average $172. “As you look at it today, the calf market at 550 pounds is close to $190 and we should be higher into the spring with green grass fever. Typically, the track back down into the fall is not as severe in these types of years.” Hamburger demand lifted the cull cow market and the market will continue to trend higher. Bred cows are forecast to be in a range of $1,700 to $2,000 per head.

Fundamental Changes in the Beef Supply Chain – In a post-COVID world, the meatpacking industry is adopting more automation. A new study from RaboResearch says the initial introduction this technology will not be a replacement for labor but is designed to make the workforce more efficient. Rabo AgriFinance analyst Don Close says this should help keep cattle moving through the packing plant which should be “a win for cattle producers.”

Seeking Solutions for Price Disparity – The National Cattlemen’s Beef Association Live Cattle Marketing Committee met in Houston and proposed eight policy resolutions. “We’re looking for the renewal of LMR (Livestock Mandatory Reporting), said Jeff Schafer, president, North Dakota Stockmen’s Association. “We’re also looking for contract library establishment and there’s also a resolution to bring forth the continued study as to how we can get better price discovery which is at the top of everyone’s mind.” One of the resolutions states that NCBA opposes any mandates on cash trade volumes for cattle and any other regulatory or legislative policies that would limit the methods producers use to market cattle. Livestock Marketing Organization President Larry Schnell says this focus began at a meeting two years ago in an effort to alleviate the disparity between boxed beef versus the price cattle feeders received. “The packers, no question about it, were making huge amounts of money and at that time, most cattle feeders were breaking even.” Schnell, who is the co-owner of Stockmen’s Livestock Exchange in Dickinson, North Dakota, said the concept was a focus on a percentage of the cash cattle trade. The objectives established two years ago have not been realized.

 

MN Beef Update – This week’s Minnesota Beef Update takes a look at key state and federal policy priorities for the Minnesota State Cattlemen’s Association. Executive Director Allison VanDerWal has the details.

USDA Provides Details on 2020 and 2021 Livestock Disaster Relief – USDA updated farmers and ranchers about the upcoming disaster assistance for 2020 and 2021 during the Cattle Industry Convention in Houston, Texas. The $10 billion in disaster relief passed in a continuing resolution last September includes $750 million specifically for livestock producers. The first phase of this drought assistance will use the Livestock Forage Disaster Program to provide up to 60 percent of replacement feed costs. “That will be the first phase and then in the next phase we’ll do a more comprehensive examination of the need and try to identify any gaps that we missed in the first round of payments,” said Zach Ducheneaux, administrator, Farm Service Agency. USDA now expects the payments to start going out in March. Read more.

Numerous Opportunities for Animal Agriculture – North Dakota Livestock Alliance Executive Director Amber Boeshans says the state is a blank slate, offering numerous opportunities for animal agriculture. “North Dakota is a beautiful, perfect place for responsible swine development because we’re able to put distance between swine operations to keep the pigs healthy,” said Boeshans. “There are stellar opportunities with turkeys and our beef producers are second to none so there are opportunities to diversify cow-calf operations to put up finishing or backgrounding and doing more confinement of beef animals as well.” The North Dakota Livestock Summit was held Thursday in Nome, North Dakota.

Farmers Fairness Tool Launched – USDA has unveiled its online tool for farmers and ranchers to report anti-competitive practices. Agriculture Secretary Tom Vilsack said the new tool will advance the Biden administration’s plan for a fairer and more competitive meat and poultry supply chain. “We want to make sure we get information from producers at the ground level on things they see in the marketplace that’s unreasonable.” Vilsack told Cattle Industry Convention attendees it’s important to build more and better markets for livestock producers. “In doing so, it’s not that we are going to disadvantage someone who has invested in genetics, there will still be multiple ways in which those high-quality products can appropriately be marketed.”

Drought Cuts into the Size of the Beef Herd – According to USDA’s cattle inventory report, the number of beef cows nationwide totals more than 30 million head. That’s the fewest beef cows since 2015. The decline of nearly 719,000 head is the largest year to year decline since 1996 -1997. In this region, beef cow numbers declined 11 percent in South Dakota, down two percent in North Dakota and increased seven percent in Minnesota.  Beef heifer replacements are down 3.3 percent from last year, representing the fewest replacement heifers since 2014.  Year-over-year, North Dakota 8,000 fewer beef replacements. Minnesota and South Dakota increased the number of replacements by 5,000 head each.

A Smaller Lamb Crop – According to the annual report from USDA, the 2021 lamb crop totaled 3.1 million head. That’s down two percent from 2020. South Dakota’s lamb crop totaled 200,000 head, unchanged from one year ago. Minnesota has 85,000 lambs, down six percent and the size of North Dakota’s lamb crop was unchanged at 52,000 head.

The Bull Pen – Political tensions worldwide bring a level of unpredictability to the markets. Advance Trading Risk Management Advisor Tommy Grisafi is always monitoring these outside influences. “Folks in the know say nothing will happen during the Olympics, but after that keep an eye on China-Taiwan, Russia-Ukraine, are borders opening? do we have to show (vaccination) cards everywhere? What happens politically is really disrupting.” In the new edition of the Bull Pen podcast on the Red River Farm Network YouTube channel, Grisafi said product shortages and high input costs must be a consideration. “Prices used to be adjusted quarterly and now they’re being adjusted multiple times per week. A year from now, you might be growing $12 or $13 beans, $5.50 corn and $7 wheat and still losing money because it costs so much for those inputs.”

China’s Corn Cancellation Not Surprising – China canceled a purchase of 380,000 metric tons of corn Thursday. AgriSompo North America market analyst Sterling Smith wa not surprised. “When you deal with China you have to get used to cancellations.” USDA’s weekly export sales were within trade expectations for corn and soybeans, but wheat sales continue to lag. “Wheat’s been struggling. It’s not a great thing for us and I wouldn’t be surprised to see further cutbacks with wheat. The wheat is very expensive and demand is flat.”

New Crop Soybean Prices Get Stronger – Zaner Group Ag Hedge Chief Market Strategist Ted Seifried started noticing the changes in December due to South American soybean production concerns. “If you look at some of the projections for the reductions we could see in the South American soybean crop, that’s what the market is trading. It’s kind of like 2019 and at a fever pitch.”

What’s Hot, What’s Not in the Markets – In this week’s edition of What’s Hot, What’s Not in the Markets, Martinson Ag Risk Management President Randy Martinson says hot and dry South America is continuing to influence the soybean trade. Russia and China have solidified their relationship, which is another consideration in the market.

A Good Weed Management Plan for Corn Can Help Fight Resistance – A University of Minnesota Extension webinar on weed management covered waterhemp control. “Waterhemp management is easier in corn than soybeans,” said weed scientist Debalin Sarangi. “There are also more tools in the toolbox to deal with resistance. It is very important farmers use a strong foundation for corn and rely on pre-emergence herbicides.” Once there is a good pre-emergence herbicide down, Sarangi says there are multiple post-applied herbicide options to control waterhemp. “For example, the growth regulator herbicides. Sugarbeet growers should also check to see if there are limits on what products can be used.”

Weed Control Prep for Beet Growers – Waterhemp is the most important weed for sugarbeet growers in the Red River Valley. During the American Crystal Sugar Company Grower Seminar, Extension Sugarbeet Specialist Tom Peters said waterhemp control is very complicated. “Gone are the days of one, two or three glyphosate applications.” A lay-by application using a pre-emergence, early-post and post-emergence weed control program is now the standard. This creates a barrier in the soil to prevent waterhemp from germinating and emerging. Palmer amaranth is another significant weed issue in the region. Peters cited two local cases where Palmer was traced back to feed and screenings that were fed to animals. “If you see something that looks suspicious, call me,” said Peters. “I don’t care if it is day or night, I want to get that call because it is critical that we identify Palmer amaranth before it gets established.”

A Solution for Managing Cercospora – Cercospora control is a major concern for sugarbeet production. Betaseed Vice President of Sales and Marketing Mark Schmidt says the new CR trait from KWS has performed well. “We’re excited about CR+. It’s a new technology that offers a high level of tolerance to the CLS disease.” According to Schmidt, better than expected yields last season can be attributed to more than genetics. “There are lots of things that go into how good of a crop a grower brings home. We want to do our part by delivering a high level of genetic potential. It’s fun when it all comes together.” Hear the story.

 

Controlling Sclerotinia in Sunflowers – NDSU Extension Plant Pathologist Michael Wunsch is studying sclerotinia in sunflowers. If conditions are right, it only takes about 18 to 24 hours of sustained moisture on a sunflower head to cause the disease. “How much disease you get is very dependent on the growth phase. Susceptibility increases as bloom increases.” Fungicides can also help when disease pressure is low to moderate, but it’s all about timing. NDSU Extension is also looking at another solution: the use of bee vectoring technology provides disease management solutions through biologicals. Wunsch says bee vectoring combined with good hybrid selection can offer good solutions for growers. This research will continue for one more year. Wunsch was part of the Getting It Right in Sunflower Production this week.

MN Wheat Minute – The Best of the Best in Wheat and Soybean Research happened last week. Minnesota Wheat CEO Charlie Vogel has more about the workshop in this week’s Minnesota Wheat Minute.

Adapting to Dry Planting Conditions – Heading into planting season, a survey conducted by Pioneer revealed farmers are concerned about having too little moisture, too much moisture and fertility. If the primary concern is little or no moisture, Pioneer Agronomy Science Manager Dan Berning says the first step is to plant varieties suitable for dry environments. “Select hybrids with reliable drought tolerance, adjust seeding rates for yield potential and recognize we may have short subsoil moisture at the beginning.” Soil fertility should also be adequate so there isn’t additional stress impacting the crop.

Adopt Good Soybean Management to Bridge Yield Gaps – The strong price of soybeans makes it an attractive crop to plant, but it’s still a relatively new crop in North Dakota. At the Best of the Best in Wheat and Soybean Research, NDSU Extension Agronomist Hans Kandel outlined soybean management recommendations to improve yields. “If we have row spacing from 15 to 20 inches, that’s excellent. Farmers can also select a variety with an appropriate maturity, then there’s more yield potential.” Kandel said the planting date can also make a difference. “Planting as early as practically possible, with good soil temperatures and a good weather forecast, we see a yield increase.”

Double Check When Using NDSU Nitrogen Calculators – If you are using NDSU Extension’s nitrogen calculators, Extension Soil Specialist Dave Franzen says double check crop and fertilizer prices. Confection sunflower contracts are currently greater than the maximum value of 30 cents per pound option included in the sunflower calculator. “When I developed the calculator, I never thought nitrogen prices would go above $1. Even on the crop price side, I never thought sunflower prices would get above 30 cents per pound of seed, but there are contracts now for 40 cents, plus. What people can do if the nitrogen prices or crop prices are higher than what the calculator says, divide by two.” North Dakota farmers applied much of their fertilizer in the fall, but Franzen says farmers are still making acreage decisions. “Some of these decisions won’t be made until March, so there is still fertilizer that needs to be applied.” Franzen was at the Best of the Best in Wheat and Soybean Research last week.

Corn Matters – Nitrogen Smart meetings are on the calendar starting in mid-February. University of Minnesota Extension Educator Brad Carlson has more details in the latest Corn Matters, presented by the Minnesota Corn Growers Association.

Drought Relief is Top Priority – A drought relief package was proposed late last summer, but Minnesota Governor Tim Walz and legislative leaders were unable to come to terms on a special session. With the regular session underway, House Agriculture Committee Chair Mike Sundin said drought assistance will be expedited. “That is priority #1 both in the House and the Senate and the governor wants to see a bill on his desk as soon as possible to get some money out the door to go to those most impacted by the drought.” The Minnesota Corn Growers Association is pushing for legislation to increase the state ethanol standard from ten percent to 15 percent. This comes at a time when the state is building the infrastructure for electric vehicles. “I agree with the governor that we can do both; we can walk and chew gum at the same time.”

MDA Monitors Supply Chain Disruptions – Minnesota Agriculture Commissioner Thom Petersen addressed supply chain issues when testifying before the House Ag Finance and Policy Committee on Wednesday. “The governor met with CHS and other companies to see how we’ll do with fertilizer in the spring. Some of the things the state can do is look at hours of service as farmers start moving more fertilizer.” In his first appearance before the committee this session, Petersen also answered questions on pending drought relief for farmers and ranchers. Hear a recording of the hearing.

Grand Forks Works Through Corn Wet Milling Development Agreement – The Grand Forks City Council had a special working meeting this past week to review the development agreement for a proposed corn wet milling plant. This agreement must be in place with the Fufeng Group to move forward. “There will be construction contracts that have to be executed because of this, financing, special assessments and bonding will spring from this agreement,” said Dan Gaustad, city attorney. There are many questions about infrastructure, including wastewater, truck and rail traffic. The proposed natural gas pipeline is also part of the discussion. Grand Forks City Administrator Todd Feland and city council members traveled to agribusiness parks in Blair, Nebraska and Fort Dodge, Iowa to see the impacts of a corn wet mill on local economies. “The one thing I took from Fort Dodge is don’t think after three years all of the work will be done,” said Feland. “We’re going to transform the community and deepen agribusiness.” Gaustad would like to have a final development agreement in place by February or early March so the Fufeng Group can start construction on the project this spring and summer. The agreement will be discussed again at a city council meeting this week.

Building the Ethanol Infrastructure – The Minnesota Department of Agriculture has up to $6.6 million in grant funds to help service stations in the state add higher ethanol blends. The infrastructure funding is for stations that install tanks and equipment for fuel containing at least 25 percent ethanol. March 17 is the signup deadline.

MN Awards Specialty Crop Block Grants – The Minnesota Department of Agriculture has awarded nearly $2.9 million in specialty crop block grants to 24 recipients. Projects include $115,000 to determine how narrow row spacing can improve sustainability of fresh red and yellow potatoes. Another $150,000 will be used to train beginning and socially disadvantaged farmers about organic vegetable production.

New Regs for CDL Drivers – New commercial driver license applicants and those seeking certain CDL upgrades must complete federal training. In the rules that take effect today, new drivers must be listed in a Federal Motor Carrier Safety Administration registry that shows they completed the training. Farmers are exempt from the CDL requirements if they stay within a 150-mile radius of the farm.

Presidential Candidate Wants to Get Innovative on NDSU Programs – One of the final two candidates being considered to lead North Dakota State University is Heshem El-Rewini from Marymount University. El-Rewini previously served as the Dean of the College of Engineering at the University of North Dakota. If selected as the next NDSU president, El-Rewini would like to see more growth in research and enrollment at the university. “NDSU’s done lots of work attracting students, but enrollment isn’t where it should be. I believe we could attract more students by offering more innovative programs attracting all types of learners.”

 

Stay Focused on Meeting the Needs of the Region – The final candidate being considered for president of North Dakota State University is Mary Holz-Clause with the University of Minnesota in Morris and Crookston. Holz-Clause says NDSU does many things well from an agricultural perspective. “NDSU is there to hear from farmers about what their needs are and respond to those needs. There’s lots of research being done. We also want to ask if we’re meeting the work force needs. What do employers want us to provide for education?” Holz-Clause says the University of Minnesota is hosting listening sessions to learn more. “One of the workforce needs is to provide more students. Every year in the agricultural field, we’re between 30,000 to 40,000 jobs short for the needs in the industry. We may need to bring non-agricultural students into agriculture. We also need students with technical skills, but also soft skills.” Once interviews wrap up, the search committee will make recommendations to the State Board of Higher Education. The Board of Education is expected to make a decision on NDSU’s next president by the end of the month.

Changes Announced for School Nutrition Program – USDA is making transitional changes to its school nutrition standards. For the school year that begins this fall, at least 80 percent of the grains served in school lunch and breakfast programs must be rich in whole grains. Schools will also be able to serve flavored low-fat milk. USDA will be proposing long term changes to the school nutrition standards later this year.

Helping Consumers Understand Sugar Production – The Sugar Association President and CEO Courtney Gaine continues to inform the public about sugar. “It’s an uphill climb to combat some of the public narrative around sugar that’s been existing for two decades,” says Gaine. “I see this as a marathon of trying to counter some of the information out there that’s not right.” At the American Sugarbeet Growers Association meeting, Gaine said less than half of consumers know sugar comes from a plant. Even fewer know how it’s processed. “It’s a slow crawl, but we’re starting to see momentum.”

BASF Seeks to Protect Innovation and Intellectual Property Rights – BASF has filed complaints with the U.S. International Trade Commission and in federal court against Sharda Cropchem and Sharda USA for the unauthorized use of its pyraclostrobin technologies. BASF officials said Sharda’s manufacture and use of this fungicide infringes on its intellectual property rights and innovation investments. Pyraclostrobin is a key ingredient a number of BASF products including Priaxor, Headline, Revytek and Teraxxa.

FY ’21 Income Up for Corteva – Corteva finished the fiscal year with operating income of $1.8 billion, up from $98 million one year ago. Crop protection sales were up 12 percent and seed sales rose eight percent. In its news release, Corteva officials said Enlist is driving demand. For 2022, the company expects market penetration for the Enlist system to reach at least 40 percent of U.S. soybean acres this year.

1Q Revenues Up for Nufarm – Nufarm is reporting a 36 percent increase in first quarter earnings. Strong demand for its crop protection and seed products were credited for the gains. Net revenue for the 2021 fiscal year topped $3.2 billion with the herbicide business representing nearly half of all revenue. Nufarm’s North American business contributed 35 percent to its year-end total while its Asia-Pacific business represents 27 percent of total revenue. The Australian-based Nufarm said high raw material costs and logistical problems will weigh on company revenues in the year ahead.

BP and Nufarm Ink Deal – British Petroleum and Nufarm have signed a ten-year agreement with a goal to reduce emissions and fight climate change. Nuseed, which is a subsidiary of Nufarm, will provide carinata oil as a sustainable biofuel ingredient. Carinata is a plant similar to canola that has been certified as a crop than can be used as a low-carbon biofuel feedstock. The BP-Nufarm deal is part of the aviation industry’s attempt to reduce its carbon footprint.

Insecticide Option Expansion for Sunflowers – EPA has approved label expansions for Capture LFR insecticide and Ethos XB insecticide/fungicide on sunflowers. These products are both produced by FMC.

Russian Fertilizer Manufacturer to Purchase Brazilian Oil Company – Russia’s leading fertilizer company, Acron, is purchasing Brazil’s state-run oil company. Acron and Petrobras have been discussing this possibility since 2018. This announcement is expected to be finalized during Brazilian President Jair Bolsonaro’s trip to Russia next week.

Case IH Announces New Planter and Air Drill – Case IH has added the 2150S Early Riser model to its planter portfolio. This model has an optional 525-gallon liquid fertilizer tank and more seed capacity. It has a front-fold frame design for simple transportation. In addition, Case IH has introduced a new Precision Disk 550 Series Air Drill, which will be available to order for spring of 2023.

An Expansion for a ND Ag Equipment Facility – The agriculture equipment company, Vaderstad, is expanding its plant in Wahpeton. The multi-use facility will be built next to the existing plant and warehouse. The Swedish company purchased AGCO-Amity nearly one year ago. This includes the Concord, Wil-Rich and Wishek brands.

Canola Minute – In the latest Canola Minute, Northern Canola Growers Association Board Member Tim Mickelson talks more about the Getting it Right Canola Production Conference coming up. Canola Minute is presented by the Northern Canola Growers Association.

AMBA Releases Malting Barley Variety Recommendations – The American Malting Barley Association has released its list of recommended varieties for the upcoming growing season. The changes include dropping Conlon and adding ABI Cardinal and Regina. ABI Cardinal is bred by Anheuser-Busch and is an early maturity variety with better disease resistance. Regina is a German-bred winter variety that is being grown in Ohio and the surrounding area.

Minot’s Intermodal Port Moves to Private Sector – The Minot City Council has approved an incentive agreement to move the Intermodal Port into the private sector. Logistics Park of North Dakota, which is a subsidiary of the Minot Chamber Economic Development Commission, will operate the port. This facility is used by agricultural and energy shippers in the region.

A Trade Show on Ice – Agronomy on Ice can be described as a trade show on a frozen lake. With wind chill in the -30 range on Devils Lake Wednesday, it didn’t feel like spring but that was a big part of the conversation. With prices at current levels, Pioneer Field Agronomist Kristie Sundeen says there are still a lot of decisions to be made. “We’ve got some guys more interested in soybeans than in the past so I expect to see an uptick in soybean acres,” Sundeen told RRFN. “We still have fairly strong demand for corn; I don’t think we’ll see anyone backing off on corn and there’s still interest in canola.” Sundeen believes many acreage decisions will be based on the weather this spring. The supply chain issue will also be a factor. “The best thing you can do is to go in and talk to your retailer and get what you need booked at the very minimum. If you can get it paid for and in your warehouse, that’s even better.”

MN FFA Gearing Up for FFA Week and Convention – Minnesota FFA State President Emily Matejka is staying busy this winter, visiting FFA chapters in the state, preparing for National FFA Week and the upcoming state FFA convention. “We’re working on developing our theme and what convention may look like in the spring. It’s our hope we can attend in person.” Matejka is a sophomore majoring in agricultural communications at South Dakota State University. “I’m taking advantage of all of the opportunities SDSU has to offer. I’ve loved my time there and made so many connections and friends that have shown me agriculture is where I want my career.”

Fraley Joins Verdesian Board – Dr. Rob Fraley, who helped develop the first biotech seeds with Monsanto in the early 1980s, has been appointed to the board of directors for Verdesian Life Sciences. Fraley retired from Monsanto in 2018.

Kelly to Retire from Syngenta April 1 – After 44 years of service with the company, Syngenta head of state government relations Dennis Kelly is retiring on April 1. Kelly began his career with legacy company Ciba Geigy as a research technician. In 1991, Kelly began working in Syngenta’s state government relations and regulatory affairs department. In 2004, he was promoted to his current role. Syngenta will release details about Kelly’s successor once they become available.

Hanson Appointed AgCountry Chief Strategy Officer – Gordon Hanson has been named the chief strategy officer of AgCountry Farm Credit Services. Before the recent merger, Hanson was the president and CEO of Farm Credit Services of North Dakota. Previously, Hanson was a senior vice president and chief risk officer for Farm Credit Mid-America in Louisville.

Carson Exits NPPC for IA Ag Dept Job – Chloe Carson, who has been the director of digital communications for the National Pork Producers Council, has taken a new job. Effective today, Carson is the communications director for the Iowa Department of Agriculture and Land Stewardship.

Ranchers From the Region in NCBA Leadership – This region is well represented in the leadership of the National Cattlemen’s Beef Association. Don Schiefelbein of Kimball, Minnesota has taken over the presidency of the organization. Todd Wilkinson of DeSmet, South Dakota is president-elect and Clark Price of Hensler, North Dakota was elected vice-chair of the Federation of State Beef Councils.

New Cattlemen’s Beef Board Appointments Announced – USDA announced 35 appointments to the Cattlemen’s Beef Board. The newly appointed members for the beef checkoff board include Bill Post from Chandler, Minnesota; VeaBea Thomas of Harold, South Dakota and Laurie Johnson of South Shore, South Dakota.

Regional Environmental Stewards Named – The National Cattlemen’s Beef Association has announced seven regional Environmental Stewardship Award winters. For this region, the Blair Brothers Angus Ranch at Vale, South Dakota is being honored for its commitment to conservation. The national winner will be named at the NCBA summer meeting in July.

World Dairy Expo Names New GM – Laura Herschleb will be taking over as general manager of World Dairy Expo at the end of the month. For the past two years, Herschleb has been the WDE marketing manager and will succeed Scott Bentley, who is retiring.

Rozum Recognized – The Event Service Professionals Association has recognized John Rozum at its Meeting Professional of the Year. Rozum is on the staff of the Association of Equipment Manufacturers and previously worked for World Dairy Expo.

MFBF Minute – In the latest Minnesota Farm Bureau Minute, Promotion and Education Committee Chair Amanda Cook looks back at the annual LEAP Conference.

Awards Presented During Farm Bureau LEAP Conference – Four people were honored during the Minnesota Farm Bureau Leadership, Education, Advocacy and Promotion Conference. Linda Binkley of Beltrami County was recognized as the Promotion and Education Advocate of the Year. Sarah Kuschel of Cass County received the Golden Apple Award. Libby Knoebel, who is formerly from Wright County, was presented the Golden Pitchfork Award and Minnesota Farm Bureau Past President Kevin Paap was named the Outstanding Friend of the Young Farmers and Ranchers Committee.

Agriculturalist of the Year to be Presented at the Little I – During this weekend’s Little International at North Dakota State University, Jackie Buckley of Mandan will be honored as the Agriculturalist of the Year. Buckley is a retired Extension agent and current serves as a Morton County commissioner. The award will be presented at the banquet Friday in Fargo.

Last Week’s Trivia- Washington, D.C. is home to the 202 area code. Cary Sifferath of U.S. Grains Council was the first to respond with the correct answer. Congrats, Cary. Runner-up honors go to Keith Finney of John Stewart and Associates, Karlstad farmer Justin Dagen, Kristal Rick of MAGNO Seed and Robert Byrnes of UM Extension. The ‘first 20’ rounds out with Ron Claussen of Ag Media Research, Troy Paplow of Graff Feedlots, Paul Sproule of Sproule Farms, Jim Altringer of CHS Dakota Plains Ag, Ernie Barta of Pisek, Val Dolcini of Syngenta, Charles McIntyre of USDA Market News (retired), Bob Lebacken of RML Trading, Fairdale farmer Tim Bredeson, Nick Sinner of Northern Crops Institute, Harvey farmer Bill Ongstad, retired banker John Stone, Keith Rekow of Dairyland Seed, Norcross farmer Dwight Veldhouse and Kevin Schulz of Dakota Farmer/Nebraska Farmer. 

This Week’s Trivia- The color of a rose is often associated with symbolic meaning. What color rose symbolizes love and romance? Send your answer to don@rrfn.com and don’t forget about that special holiday coming up on February 14. 

Contact RRFN
Don Wick
(701) 795-1315
Tyler Donaldson
(701)-795-1315
Jamie Dickerman
(701)-795-1315

RRFN Affiliate Stations
Aberdeen, SD – 105.5 FM Ada, MN – 106.5 FM Bagley, MN – 96.7 FM Bemidji, MN – 1300 AM
Bismarck, ND – 1270 AM Casselton, ND – 103.9 FM Cavalier, ND – 105.1 FM Crookston, MN – 1260 AM
Devils Lake, ND – 103.5 FM Fergus Falls, MN – 1250 AM Fosston, MN – 1480 AM Glenwood, MN – 107.1 FM
Grafton, ND – 1340 AM Jamestown, ND – 600 AM Langdon, ND – 1080 AM Mahnomen, MN – 101.5 FM
Mayville, ND – 105.5 FM Roseau, MN – 102.1 FM Rugby, ND – 1450 AM Thief River Falls, MN – 1460 AM
Wadena, MN – 920 AM Warroad, MN – 92.5 FM Worthington, MN – 730 AM  

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.

  • Follow RRFN on
    • Facebook
    • Twitter
    • LinkedIn
Login

Please Login

Lost Password?
Comment

Leave a comment

Lost Password

Please enter your email and a password retrieval code will be sent.



New Password

Please enter your code and a new password.