#1-Farm Bill Caught Up in Congressional Chaos – The 2023 farm bill was a casualty of the congressional chaos over the speakership. Once the dust settled and Mike Johnson was elected Speaker, timing became an issue for the farm bill and lawmakers settled for a one-year extension. That’s the Red River Farm Network’s #1 story of the past year. While the appropriations process remains a question mark, farm groups are seeking an update in reference prices and a strong crop insurance program. Ag leaders are pushing for completion of the five-year farm bill by spring so it won’t be overshadowed by the presidential election.

#2-Agriculture Becomes Part of Climate Conversation – Climate and the impact of the food and farming business dominated policy discussions in 2023, becoming the #2 ag story of the year. The Biden Administration offered record funding for climate-smart agriculture practices. Many of the programs are promoted as beneficial for soil health, the environment and new revenue sources for farmers. Farming was part of the conversation during the United Nations Climate Conference, known as COP28.

#3-Unprecedented Transportation Woes – RRFN’s third ranked story for the past year is the unprecedented transportation woes facing agricultural shipments. At the end of the year, the Suez Canal and cargo shipments on the Red Sea were facing attacks from militant rebels. Mother Nature was the enemy on other transportation routes with the drought impacting water levels on the Mississippi River, the Amazon and through the Panama Canal. A five-day closure of the Eagle Pass and El Paso, Texas rail crossings into Mexico was the big story in the final days of the year. Market analysts described these transportation troubles as “unprecedented.”

#4-‘Better Than Expected’ Yields – The 2023 growing season had a late start due to too much moisture. That was followed by a record drought in Minnesota. Despite those conditions, there was a common theme at harvest time. Yields were repeatedly described as ‘better-than-expected.’ The harvest surprise included a record sugarbeet crop in the Red River Valley.

#5-High Court Rules on Prop 12 Housing Standards – In a split 5-4 decision, the U.S. Supreme Court upheld California’s controversial Prop 12 initiative requiring the pork sold in the state be raised under certain housing standards. The same mandate impacts veal calves and egg-laying hens. This ruling is the #5 story of 2023. Prop 12 is impacting livestock farms, meat processors and consumers. Legal challenges are continuing.

#6-Fed Takes Aggressive Stance on Interest Rates – The Federal Reserve aggressively pushed the benchmark interest rate to its highest level in 22 years and that is ranked as the sixth most important ag story for the year. With inflation easing, the Federal Open Market Committee held its key interest rate steady for the third consecutive time in December. The FOMC also indicated three interest rate cuts will be coming in 2024.

#7-Fufeng Project Leads to Foreign Ownership Scrutiny – Foreign ownership of farmland was an issue heard in Congress and state legislatures throughout the country this past year. This story began when a Chinese company called the Fugeng Group purchased land near Grand Forks to build a corn processing plant. Opponents saw this as a threat to national security because of its proximity to the Air Force base. The project was terminated early in the year, but the issue of foreign ownership of farmland became a national story and it is ranked as RRFN’s #7 story for the year.

#8-U.S. Supreme Court Rules on Waters of the United States – The High Court struck down the EPA’s previous Waters of the United States definition. The Biden Administration released a new rule in August, but it faced immediate criticism. Farm Bureau President Zippy Duvall said EPA had “a golden opportunity to write a WOTUS rule that’s fair to farmers,” but chose to continue “government overreach.”

#9-A Volatile Year for the Animal Protein Sector – Animal protein markets faced extreme volatility in 2023 and that is ranked as RRFN’s #9 story. The continuation of the drought limited the expansion of the cowherd and cattle prices were on an upward trajectory. Fed cattle and boxed beef reached all-time high prices before a bearish USDA report in October sent prices downward. The U.S. swine and dairy industries were hemorrhaging at the end of the year with producer prices well below the cost of production.

#10-Rapid Expansion of the Soybean Crush – The expansion of the soybean crush business rounds out RRFN’s list of the top stories of 2023. Green Bison Soy Processing completed construction of its $350 million facility at Spiritwood, North Dakota. Truckloads of soybeans are moving through the plant, destined to serve the renewable diesel market. North Dakota Soybean Processors are expected to have its plant up and running at Casselton in time for the 2024 harvest. Construction for the Epitome Energy crush plant at Grand Forks is expected to begin this spring and 2026 targeted for the beginning of its production. The smaller Ag Innovation Campus at Crookston is crushing beans now with a unique focus on research, testing and the development of new products.

A Dozen Countries Included in Red Sea Naval Force – In response to the rebel attacks on cargo shipments on the Red Sea, an international naval force was created to defend the vessels moving through this key transportation route. A dozen countries are cooperating with the United States on this maritime task force. The White House has been unable to bring all of its allies into this effort. Saudi Arabia, United Arab Emirates, Spain and Italy are among the many countries refusing to be part of it. A high ranking Indian official said his government is worried that any alliance with the United States could make it more of a target.

U.S. Responds to Container Ship Attack – Houthi rebels fired on a container ship and attempted to board the vessel over the weekend in the Red Sea. U.S. Central Command said this is the 23^rd attack of this kind in the past six weeks. The U.S. responded by sinking three of the small Hourthi boats.

A Domino Effect – To avoid militant attacks on the Red Sea, major commercial shipping companies have rerouted traffic around the Horn of Africa or docked ships in safe locations. Specialty Soya and Grains Alliance Chair Bob Sinner, who is also a partner in SB & B Foods at Casselton, North Dakota, is closely monitoring the situation. “Anytime we get into a situation like what is happening on the Red Sea and affecting the Suez Canal, that is a big deal for companies shipping east. It significantly changes their transit time; there’s more congestion, more interruptions.” Most of the food-grade soybeans and identity-preserved grains coming out of this region are exported through Western ports. However, the impact will likely be seen globally. “When you interrupt trade flows and schedules, it is going to have a domino or an indirect effect on schedules worldwide.” The Midwest generally exports more products than it imports. As a result, Sinner said the supply of containers is chronic problem in the region.

U.S. and Mexico Officials to Meet Again in January – Details have emerged from Wednesday’s closed-door meeting between U.S. and Mexican officials. Mexican President Andres Manuel Lopez Obrador said both sides have agreed to keep border crossings and rail bridges open. That follows the recent five-day closure of the Eagle Pass and El Paso, Texas border crossings. A joint communique promotes “orderly, humane, and regular migration” while being committed to a positive trade relationship.

Canola Minute – Here’s the latest Canola Minute from the Northern Canola Growers Association. This week, Northern Canola Growers Association Executive Director Barry Coleman highlights the recent Canola Research Conference.

Panama Canal to Increases Max Number of Ships Allowed Per Day – Effective January 16, the Panama Canal Authority will increase the number of daily vessel transits to 24. That’s up from the current limit of 22 pass-throughs. The PCA credits better-than-expected rains in November and the success of water-saving measures. The Panama Canal restrictions impact all types of vessels, but the weekly USDA Grain Transportation Report said grain shipments are the most affected. During a normal year, close to 40 vessels would move through the Panama Canal daily.

Fielding Questions – In this edition of Fielding Questions, AgCountry AVP loan officer Kara Wulfekuhle discusses key financial ratios farmers and ranchers should keep in mind to help gauge the health of their operation. Fielding Quesitons is a collaboration between AgCountry Farm Credit Services and the Red River Farm Network.

Farm Income Down From ’22 Record High – As farmers close the books on 2023, many of those spreadsheets are showing farm income came down significantly from the record highs of one year ago. USDA Chief Economist Seth Meyer said net farm income will total $158 billion this year, a 21 percent drop from 2022. “That’s still well above the average of the last couple of decades.”

MFU Minute – In this week’s MFU Minute, Minnesota Farmers Union President Gary Wertish outlines the organization’s policy priorities for the coming year.

A Down Year for Grains – Compared to December 30, 2022, the current corn, soybean and wheat prices are all down about $2.00 per bushel. January canola futures are down over $200 per metric ton from a year ago. Live and feeder cattle are $10 to $30 higher year-over-year, while the lean hog market is $10  lower.

What a Difference a Year Makes – Those differences can be seen as farmers close out the books for 2023. “If we just look year-over-year, it was tax planning to no end last year and what are we going to do with the profitability and how do we manage that.” said Keith Olander, executive director, AgCentric. “This year we’re certainly going to see a reduction in income. I think USDA is looking at 15 percent down.” 2023 can be considered an average year for many grain farmers. The animal agriculture sector took a bigger hit, especially the dairy and swine sectors.

Beet Stock Values – There was no American Crystal Sugar Company beet stock trading in the last week of 2023. For the trading season which started back in August, 2,865 shares have been brokered for an average price of $5,221.61 per share, said Jayson Menke, owner, Acres & Shares. “Brokered beet shares were at a season-to-date record through the end of the calendar year.” The publicly available broker sale data goes back to the 2005-06 trading season. The previous record through the end of the calendar year was in the 2010-11 beet stock trading season when 2,550 shares were brokered. The average from the ten previous seasons through the end of the year was 1,517 shares. Menke says the season-long share record is not in jeopardy; ten trading seasons ago, 6,858 shares were brokered. The trading season typically runs from fall until spring.

Prepping for the Annual Meeting With the Lender – As farmers and ranchers prepare for their annual meeting with the lender, farm management analyst Kent Thiesse says they should have a detailed balance sheet. “It’s good to have an updated listing of farm machinery and buildings. The other big thing is to have a good income and expense summary for the year.” In addition to tax management, Thiesse said it is important to discuss the year-end financial information with everyone who is involved in the management or investment level of the operation.

SD Corn Comments – In this week’s addition of South Dakota Corn Comments, South Dakota Corn Utilization Council President Chad Blindauer reflects on a successful 2023.

State of Emergency – North Dakota Governor Doug Burgum has declared a statewide emergency due to the December 25-27 ice storm. Over 20,000 North Dakotans were without electricity. The Governor’s Office reports over 1,400 utility poles were downed in the storm and power lines were snapped, causing millions of dollars of damage. Burgum is seeking a presidential disaster declaration, which would make the state eligible for federal assistance to pay for the emergency response and infrastructure repairs.

Decent Moisture for Spring – The Midwest, especially the eastern Dakotas and Minnesota, has seen significantly less snow than normal. South Dakota State University Extension State Climatologist Laura Edwards expects that to continue due to warmer temperatures. “It’s not necessarily because we get less precipitation,” said Edwards. “For the rest of the winter, we’re not quite sure if it will be wetter or drier. El Nino doesn’t tell us a lot that way.” Fourth-quarter rains have improved soil moisture. “I think we’re in decent shape for this spring to start the 2024 season.”

A Record December for the Southern Red River Valley – The southern Red River Valley experienced above-average moisture levels in December alone. “No matter what happens going forward, if we don’t get one more drop it would still be above average for the winter,” said Daryl Ritchison, director, North Dakota Agricultural Weather Network.

Seed Decisions Being Locked In – P ioneer Field Agronomist Kristie Sundeen says many of the growers have locked in seed for the 2024 planting season and soybean acres are expected to be down from this past year. “We had the best soybean crop we’ve ever had in 2022,” said Sundeen. “Then we go into 2023 and had a pretty low soybean crop for most guys.” Seed corn sales are strong and Sundeen is also optimistic about canola acreage in the year ahead. Sundeen expects many farmers will focus on conserving soil moisture.

Dry Bean Scene – In this week’s Dry Bean Scene, NDSU dry bean breeder Juan Osorno highlights the latest dry bean varieties. The Dry Bean Scene is brought to you by the Northarvest Bean Growers Association.

Barley Acres Expected to Drop in ’24 – Acreage decisions are still being made for 2024, but Hanson expects barley acres to decline. “Barley contracts are tough to come by,” said Jason Hanson, owner, Rock and Roll Agronomy. “I see more interest in canola, but right now everything is kind of up in the air.” Market demand has pushed growers to lock in corn and sunflower seed. Hanson is an organizer of Agronomy On Ice at Devils Lake on February 7. Hanson said the event will still take place if ice thickness is an issue, but adjustments will be made. Hear the full interview with Jason Hanson here.

Register Now for the Next NCI Market Webinar – The Northern Crops Institute is hosting a Market Update: Weather Edition webinar Wednesday morning at 8 AM. This webinar will feature Daryl Ritchison, director, North Dakota Agricultural Weather Network. Go online for more information and to register.

A Positive Outlook – The markets caught the attention of the cattle business in 2023. “After many years of pretty thin margins, we finally got the market moving in our favor,” said Jason Leiseth, president, North Dakota Stockmen’s Association. “Going forward, there looks to be similar opportunities for the coming years.” Leiseth reports construction is complete for the new NDSA headquarters and the association will move in early in the year.

Lessons Learned in the 2023 Cattle Market – Lake Region Livestock owner Chris Plummer remains optimistic about the cattle market. “The fundamentals are still there for a good start to 2024.” Plummer points to one lesson that should have been learned this past year, lock in prices using hedges or LRP earlier in the season. “Realistically, there was a lot more room for that market to go down than up. Maybe we should have looked at that a little closer.”

Seedstock Sales Hold Strong – Feeder cattle futures have backed off since October, but KRose Company owner Karoline Rose has seen prices hold this fall at production sales. If the weather cooperates, a strong replacement and seedstock market is expected through the spring. “We have to get some more cattle into production,” said Rose. “I just think the seedstock business is going to be strong this spring.” Rose expects higher demand for females if the drought situation eases. There have been fewer bulls hitting the seedstock market. Rose said that may mean producers are being more selective about their genetics. She also warns both buyers and sellers to beware of bulls that should be steers.

MN Beef Update – This week’s Minnesota Beef Update catches up with MN Beef director of industry relations Jon Dilworth. He reflects on a busy month of December and looks forward to upcoming events in 2024.

Managing Bred Cows Through Winter – Cattle producers should monitor the body condition of their bred cows sooner rather than later. “Body condition scoring cows has to be chief on your mind,” said Dan Larson, beef consultant, Great Plains Livestock Consulting. “At some point we are going to have some winter and will put environmental stress on those cows.” At calving, cows should have a body condition score of six. If bred cows need to put on weight, Larson says it is easier to make changes in the second trimester than the third. Now is also the time to analyze pregnancy rates and plan for adjustments in nutrition or management practices if issues are seen. Click here for the full interview with Dan Larson.

A Muddy Mess for Weaned Calves – Mud is tough on recently weaned calves and the cattle approaching their finished weight. Maintenance energy requirements increases for those animals, but they likely want to eat less. “They’re going to expend more energy working through the mud and water,” said Zach Carlson, beef cattle specialist, NDSU Extension.”Try to provide some adequate bedding if you can get at them.” Smaller feedings throughout the day can entice feed consumption. This is also a good time to take note of problem areas to address drainage and similar issues in the future.

BND Loans Help Replenish ND Cattle Herds – The Bank of North Dakota’s Livestock Rebuilder’s Loan Program is responsible for 16,000 head of cattle being added in the state over the past two years. The program was developed to strengthen North Dakota’s livestock industry after the 2021 drought when beef cow numbers declined by 89,000 head. This loan program closed this past June. There were nearly 200 loans made through local banks and credit unions for a total of $26.6 million. The Bank of North Dakota funded $18.5 million of that total.

Planning for the Next 20 Years or Next 12 Months – Class III milk futures are trading in the $15-to-$16 territory. Minnesota Milk Producers Association Executive Director Lucas Sjostrom says the price received on the farm is more variable than ever. “We’ve been in a weird spot over the past 24 months where you may have a $5 variance from one farm to the next which is unprecedented,” said Sjostrom. “It is all due to market conditions and the processor your send to.” Minnesota lost 58 dairy herds during December, which is one of the worst months on record. “Dairy is really in a spot today where farmers are making plans for the next 20 years or just planning on how they make it through the next 12 months.” The farms in the middle, with 300-to-1,000 cows, may be having the biggest issue with the low milk prices. Sjostrom says the most successful dairies in the mid-range have found a niche. That may include dairy beef production or custom harvesting. Listen to the full interview.

The Impact of Prop 12 and Question 3 – Enforcement is now underway for California’s Proposition 12 and Massachusetts’ Question 3. Pork sold in California will have to come from farms that are audited and certified as Prop 12-compliant. The Massachusetts rule is similar, but it also includes pork that is in transit through the state. “Even pork that goes to other states like Maine or Vermont would be affected by Question 3,” said Lori Stevermer, president-elect, National Pork Producers Council. The impact on consumers and pork producers remains unknown. “Anything that affects our supply of pork or demand and has an adverse effect on our market is a concern.” A patchwork of regulations could make supply chain management complicated. Hear the full interview with Stevermer here.

Corn Matters – The Minnesota Corn Growers Association invites student members to apply for the Minnesota Corn Scholarship. Board member Angela Guentzel joins Corn Matters this week to give the details. The deadline to apply is January 5.

China OKs 26 GMO Licenses – For the first time, the Chinese government has approved 26 licenses for domestic seed companies to produce biotech corn and soybean varieties. The goal is to become more self-reliant and less dependent on imports from the U.S. and Brazil.

EU Steel and Alumninum Tarriffs Extended – President Joe Biden has extended the suspension of tariffs on European steel and aluminum for two years. Import tariffs of 25 percent on European Union steel and ten percent on EU aluminum were implemented during the Trump presidency. Biden suspended these tariffs in January 2022 and replaced them with a tariff rate quota system. The White House said negotiations are continuing.

Investing in Trade Promotion – South Dakota Governor Kristi Noem and the Governor’s Office of Economic Development is investing $1 million to promote exports. This money will expand the services available through a private-public partnership known as South Dakota Trade.

Where Will the Meal Go? – With the new crush capacity in the state, “there’s going to be an excess supply of soybean meal in North Dakota that’s going to have to find a home somewhere.” After receiving questions about using soybean meal as fertilizer, NDSU completed a financial analysis. While there may be some use for meal in specialty market fertilizers such as lawns and golf courses, NDSU Livestock Development Specialist Jon Biermacher says commercial ag use is not economical. Listen to the full conversation with Jon Biermacher here.

Farming for the Future – The Minnesota Department of Agriculture is partnering with the Red River Farm Network and the Linder Farm Network to provide information on soil health events and topics. Stearns County Soil and Water Conservation District Administrator Dennis Fuchs highlights the Headwaters Agricultural Sustainability Project in this week’s Farming for the Future.

Two Co-ops Become One – The merger between Valley United Co-op and Thompson Farmers Elevator is now official. Valley United CEO Paul Coppin says this combination is a win-win for both entities. “It gives us an option to be part of a shuttle loading system and we’re pretty excited about that,” said Coppin. “The two companies both are very successful and bringing them together is really exciting.” The merger expands the grain and agronomy sides of the business.

CenDak, Fessenden Co-op Association Join Forces – The CenDak Cooperative and Fessenden Cooperative Association have merged into one entity. When members approved a merger in late August, a statement was released saying there are “tremendous synergies between the two co-ops.” CenDak merged with BTR Farmers Cooperative in 2018 and Fessenden Co-op Association Acquired Equity Cooperative Company in 2020.

Yaggie Family Makes $1 Million Donation to NDSCS – Thanks to a $1 million donation to the North Dakota State College of Science Foundation, the NDSCS Agriculture Center is being renamed the Yaggie Family Agriculture Center. Robert, Donald, Richard, and Geri Yaggie donated, with Geri Yaggie’s contribution made in honor of her late husband, David. The family farms are in the Breckenridge and Thief River Falls areas. The NDSCS facility was renovated with a focus on precision agriculture training.

Mortenson Takes New Role with MN FFA – Natasha Mortenson is the new Minnesota FFA Career Development and Alumni Coordinator. For the past nine years, Mortenson worked for Riverview LLP in community outreach, communications and project management. Previously, Mortenson was an agriculture education instructor and FFA advisor at Morris Area High School. Mortenson is a member of the Minnesota FFA Hall of Fame.