A Weekly Update from the Red River Farm Network
Monday, January 10, 2022
Reporting Agriculture’s Business-Agriculture is a bottomline business and that’s the focus for the Red River Farm Network. You’ll find RRFN’s agricultural news, market analysis and weather on 21 radio stations in North Dakota, Minnesota and South Dakota, online and through Facebook and Twitter in social media. Those stories can be found in each edition of FarmNetNews. If you know others who would benefit from this e-newsletter, they can subscribe on the RRFN website or send their contact information to don@rrfn.com.
AFBF Revives the Battle Against WOTUS – American Farm Bureau Federation President Zippy Duvall kicked off the organization’s first general session Sunday. Duvall said Farm Bureau successfully fought back proposed changes to stepped-up basis.”We might have suceeded there, but we need that same energy and passion when it comes to WOTUS. It is critical that this administration understands that we should not have to have a team of lawyers and consultants just to farm our land.” The EPA and Army Corps of Engineers have proposed changes to the Navigable Waters Protection Rule that passed during the Trump presidency. Duvall said farmers and ranchers do not want to return to “a time of regulatory uncertainty.”
SBA Takes Input on Navigable Waters Rule – The American Farm Bureau Federation was represented in a Small Business Administration listening session about the proposal to repeal and replace the Navigable Waters Protection Rule. AFBF Senior Congressional Relations Director Courtney Briggs said it is important that agriculture’s side of the story is told. “Unfortunately, the agency certified that this rule would have zero impact on small businesses and in reality, there’s nothing that could be further from the truth.” Briggs said farmers and small businesses need stability when it comes to the Waters of the United States.
Grassroots Policy Development – NDFB President Daryl Lies says policy development is the highlight of the American Farm Bureau convention. “This is the granddaddy of the grassroots policy development process,” said Lies. “It starts with an idea with a member at the county level and it goes onto the state level and ultimately the American Farm Bureau level and that’s the reason we’re in Atlanta this week.” Farm Bureau represents everyone from sugarbeet farmers in North Dakota to someone who operates an orange grove in Florida. Lies said he appreciates the national perspective. “I like to learn about those different types of agriculture when I’m here; whether it is water management or whatever it might be, there’s something to learn and implement at home.”
Frustration Seen Over AFBF Rules Committee Decision – Policy development is at the heart of the American Farm Bureau Federation Annual Meeting, but there is some consternation over possible changes for the delegate session. “Depending on the report from the rules committee is received by the delegates once they are seated, there may not as much debate as there has been in the past; I feel this is a disservice to the delegates,” said Pete Hanebutt. “A lot of us in the Midwest disagree with the way the proceedings will happen for amending and debate. Limiting debate doesn’t seem to be healthy, but that’s a choice the rules committee at the American Farm Bureau level made and they’re going to have to live with it.” Hanebutt says one issue that needs to be addressed is the timing for emergency haying on CRP or other setaside acres. “It makes no sense to have a date sensitive for when you can emergency hay in time of need, a date that is good for Alabama and good for North Dakota. We have different seasons and we have different crops, it makes absolutely no sense.” RRFN’s coverage of the American Farm Bureau Federation Convention is sponsored, in part, by NDFB.
Seeking a Competitive Cattle Market – Farm Bureau delegates will vote on policies to enhance competition within the cattle and beef industries. “We’re trying to find ways to increase compeition,” siad Reid Jensen, board member, South Dakota Farm Bureau. “It’s a hard thing to do, but that’s one thing being talked about down here.” Delegates will vote on a resolution that would increase the amount of cattle sold in the cash market. “The southern states don’t like that as well because they do a lot of contracting with their cattle and the Midwest is looking for more cash pricing.” Jensen says the southern states have a large representation within Farm Bureau which will impact this debate. South Dakota Farm Bureau President Scott VanderWal is the American Farm Bureau vice president and will oversee the resolutions process Tuesday. Thanks to South Dakota Farm Bureau for cosponsoring RRFN’s coverage of the AFBF Convention.
Cass County Farm Bureau Recognized for Its Law Enforcement Training Program – Minnesota’s Cass County Farm Bureau is being recognized nationwide for its work training local law enforcement officials about farming. Seth and Rachel Connell said the Sheriff’s Office or Highway Patrol in rural areas interact with agriculture on a regular basis. It may be as simple as having cattle that are loose on the highway. “Generally, they didn’t seem to have any idea what to do or even how to identify if it was a cow or a calf or simple things like the breed of the cow.” Cass County organized a daylong training session for law enforcement students from Central Lakes College. “There were roughly 20 students and maybe one or two had any agricultural background.” Cass County Farm Bureau is sharing their idea at the American Farm Bureau trade show with hopes of replicating it in other areas. Minnesota Farm Bureau is a sponsor of RRFN’s coverage. Learn more in this interview.
New Crop Insurance Option Available to Corn Farmers – USDA has unveiled its new crop insurance option for corn farmers who split-apply nitrogen. The Post Application Coverage Endorsement, also known as PACE, is available in North Dakota, Minnesota, South Dakota and eight other Midwestern states. Risk Management Agency Administrator Marcia Bunger said this option is good for the environment and the balance sheet. “It is a good balance and a level of protection for corn farmers who have done conservation-minded agriculture.” Like other crop insurance programs, the sales closing date for PACE is March 15. Bunger is a South Dakota native and was appointed in late November. In an interview with the Red River Farm Network, Bunger said this has been a unique experience. “It’s kind of like baptism by fire,” said Bunger with a grin. “My career was spent with FSA for over 25 years as a county executive director and I went into the private sector and served agriculture by doing crop insurance.” Bunger is the first woman and the first Asian-American to lead RMA.
Corn Matters – In Minnesota Corn Matters, learn about the latest rule-making process for the Renewable Fuel Standard. A recent hearing offered positive and negative news for Minnesota corn farmers.
Climate May Play a Bigger Role in New Farm Bill – Agriculture is starting to think about a new farm bill. The current legislation expires in 2023. The Russell Group President Randy Russell anticipates an evolutionary farm bill, with the exception of climate. Climate is expected to be front-and-center, with a focus on existing programs. “We’ve seen it in the Build Back Better plan where there was $27 billion included for all climate smart practices, but we don’t know if that will pass yet. I’m hopeful we’ll get additional funds to incentivize producers to adopt climate smart practices.” Russell is not expecting much new money for the next farm bill. Russell was part of an ag policy outlook at the Potato Expo.
A Full Congressional Calendar – Election year politics can be a drag on the congressional calendar. American Farm Bureau Federation Director of Congressional Relations Dustin Sherer says that will influence the Build Back Better bill and other major pieces of legislation. “With the continuing resolution that funds the government set to expire on February 18th, some nominations left to settle and once you get past March they’re theoretically supposed to be talking about appropriation bills for the next fiscal year, they need to clear the deck pretty quick.” If Build Back Better doesn’t advance in the next two months, Sherer said it becomes increasingly difficult for it to happen at all.
No Clear Path Forward on Build Back Better Act – A scaled-back version of the Build Back Better Act is expected as Congress gets back to work in the New Year. National Farmers Union President Rob Larew says there’s no clear path forward yet. “What’s encouraging to me is folks are starting to talk more about compromises. To me, that’s the ultimate pathway to a deal. There will be bargaining and pushing back and forth, but the fact they are continuing to talk, I’ll take that as a positive. They want to get it done and the sooner the better in a year like this.” The current Build Back Better Act has $90 billion in agriculture, forestry and nutrition provisions.
Canada Increasing Dairy Market – The USMCA Dispute Settlement Panel has ruled Canada is unfairly restricting access to its market for U.S. dairy products. Agriculture Secretary Tom Vilsack said the United States will now be able to sell more dairy products to Canada. “We’re going to focus on enforcing trade agreements, so that people can begin having trust when an agreement is reached, and these agreements will be implemented as negotiated.” This case is the first of any kind brought before the USMCA Dispute Settlement Panel.
Fielding Questions-Market Trends – AgCountry Farm Credit Services Market Education Specialist Katie Tangen says the market will be “sloppy” in preparation for the January 12 USDA supply/demand report. Once that report is released, more focus will be on the South American crop. The importance of a marketing plan is also discussed in the Fielding Questions podcast. If you have questions, reach out to AgCountry on Twitter, Facebook and the website.
Be Alert to Product Shortages – Farmers and retailers are scrambling to secure glyphosate, glyphosinate and other ag chemistries. Jason Hodous leads JS Ag Consulting at Devils Lake and says the products shortages are a concern. “They say the product should be there, but there’s nothing in the warehouses right now. It’s important for people to get on top of this and get what they need before the season gets here because I think it will be very difficult to get it in-season.” Hodus was part of an agronomy panel at the Lake Region Extension Roundup and said if the product is available farmers should spray on the right day. “Don’t go out on a low-humidity day and get only a 50 or 60 percent kill.”
Adjusting the Crop Rotation – Because of the dry conditions last year, there is higher residual nitrogen in the soil. Jason Hanson, who leads Rock and Roll Agronomy, expects to see adjustments made to a normal crop rotation. “I don’t want to see soybeans put on wheat ground because that would be the normal rotation when I have 90 units of nitrogen out there,” said Hanson. “I’m better off putting canola or corn on that field or even putting wheat back.” While soil testing takes on more importance this year, Hanson is surprised by the number of farmers who don’t take that step. Farmers are also questioning the data this year. “They don’t believe a high number, but they believe a low number.”
After Drought, More Residual N Left in the Soil – At the Agvise Soil Fertility Seminar in Grand Forks, Soil Scientist John Breker said these levels have not been seen in more than 30 years. “The most obvious thing that anybody that poked a hole in the ground found was lots of residual nitrate left after any nitrogen requiring crop, whether it was wheat, canola or corn.” That provides an economic opportunity to use the residual nitrate, especially with the current fertilizer prices. That information can be used to establish a realistic yield goal. “The one thing you should be cognizant of is if you have any volunteer cereals that have taken up some nitrogen, especially considering volunteer wheat may have gotten ahead of you and started heading again. Some of that nitrate isn’t going to be around to mineralize for that next crop.”
Soil Testing is a Must – Soil testing is the only way to get an accurate look at what is happening in the field. Agvise agronomist Jodi Boe says soil testing takes on greater importance with the current price of fertilizer. “When we’re getting at prices of $1 per pound of nitrogen, it doesn’t really take much to get that return on investment.” Farmers may think they can use last year’s soil test data or use an average. Boe says that is a misconception. “Variability is there; just look at rainfall this past year. On your farm, you could have two inches of rain on one area and that system bypassed the next field. People think the variability in the soil is much less than what it is.”
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 analyst Randy Martinson says triple digit temps in South America will stress crops. The export demand pace for wheat is at a historic low. Listen for the entire report.
Disease Management Should be an Annual Strategy – This last year was not a big disease year in small grains. NDSU Extension Plant Pathologist Andrew Friskop says that doesn’t mean farmers should count on that again this year. “Certainly, this last year was dry and 2017 was a dry year, but if you look at 2018 to 2020, there was enough moisture and enough dewpoint that you had disease issues,” said Friskop. “Be mindful of having a fungicide input and, at least, have it part of the conversation each year.” To understand disease management, Friscop encourages farmers to focus first on variety selection.
SD Corn Comments – The South Dakota Corn Utilization Council presents Corn Comments with details about new conservation funding for farmers and details about the South Dakota Corn Conference.
Rotate Products to Help Overcome Resistance – Rotating chemistries is important in addressing insecticide resistance for the Colorado Potato Beetle. Corteva Agriscience Territory Manager Bridgette Readel says there is a new insecticide available for potato growers called Delegate WG. “It’s a product that has spinetoram in it. We use that active ingredient to control the Colorado Potato Beetle. We had some availability of the product last year, but I think growers will find this is a product they want to work into their system for integrated pest management.”
Waterhemp Spreading North – Most of the waterhemp in North Dakota is in the eastern portion of the state, but researchers have noticed reports of it spreading further north. NDSU Extension Weed Specialist Joe Ikley says “Waterhemp has historically in the last five plus years has been a major problem in Cass County and Richland County, but it has started to creep north up the valley all the way to Canada. It hasn’t been a major issue, but I wouldn’t be surprised if it becomes one.”
AgRural Reduces Brazilian Soybean Crop Estimate – The Brazilian consulting firm, AgRural, is forecasting a 133.4 million ton soybean crop. That’s down from a previous forecast of 145 million tons and last year’s record crop of 137 million tons. La Nina and a dry weather pattern are blamed for the downturn. Brazil’s average soybean yield is expected to drop to its lowest level since 2015.
FOMC Minutes Released – Short-term interest rates may be increasing at a faster pace than Federal Reserve Board officials had expected. The minutes of the December Fed meeting have been released and the central bank apparently wants to end its bond buying program in March. That clears the path for the Fed to raise interest rates from near zero this spring.
Minnesota Wheat Minute – The weekly Wheat Source introduces you to the new project lead for the Minnesota Wheat Research and Promotion Council. Details about a couple meetings that are on the calendar.
Navigating Higher Input Costs – The agriculture industry is trying to navigate rising input costs. “The potato industry had problems in 2020 and 2021,” says Stephen Nicholson, senior grain and oilseed analyst, Rabobank. “We have to be thinking about how to mitigate those damages.” Nicholson says it’s normal for farmers to think about their revenue, but understanding cost of production is important, too. “We saw the rise in input costs coming and tried to encourage farmers to look ahead and lock in a profit, if possible. Potatoes are tricky.” Grafton, North Dakota-based Campbell Farms owner Tom Campbell says rising input costs are a challenge, but the markets are positive. “The fresh red and yellow potato markets are nice, but we suffered a reduction in crop, due to the drought. We hope to offset that enough to be ok. It takes a lot of quantity to offset costs.” Hear the story.
“Working Out Details” Shipping Fresh Potatoes to Mexico – In 2021, Mexico’s Supreme Court allowed market access for the U.S. fresh potato industry beyond the border areas. For the last seven months, Bryant Christie Incorporated Vice President of Global Access Matt Lantz and other potato industry professionals have been working with Mexico on the logistics. “Mexican officials visited in December. They toured two sheds in Colorado and met with growers to make sure the U.S. understood requirements.” Lantz says there are more logistical things that must happen. “Shippers have to register with the USDA’s APHIS. Mexico importers must also register with their government. Once that happens, shipments should start. We want to walk before we run. We’ve been working on this for 20 years and don’t want to mess this up.” If all goes well, shipments are expected to start in the next six weeks. Hear the story.
Canadian Potato Industry Wants Potato Export Ban Lifted – A ban on fresh potato exports from Prince Edward Island remains in effect after potato wart was discovered in two fields last year. At the Potato Business Summit, United Potato Growers of Canada Chairman Ray Keenan said it is not true Canada isn’t keeping up on its potato testing and the only thing left to resolve is common sense. National Potato Council CEO Kam Quarles responded. “I think the entire U.S. industry greatly sympathizes with what’s going on with PEI. The impact on the growers when it hits is material. It is a bad situation and we understand the frustration,” said Quarles. “We agree there needs to be common sense injected into the issue. Our desire is to have the data come in to see where the disease is and the remedial actions to get things under control as quickly as possible.”
Potato Industry Leadership Institute Planned for February – Ahead of the upcoming Washington Summit, the Potato Industry Leadership Institute will take place in California. National Potato Council Chief Operating Officer Mike Wenkel says the 10 day program will cover key ag issues for the potato industry’s next generation of leaders. “We’ll be learning about potato production and issues in California, including a tour of the port at Long Beach, so they understand the issues impacting all of agriculture. Attendees will then be flown to Washington D.C. to learn how to tell the story of agriculture. Farmers will then be able to connect with lawmakers.” There are 20 participants in this year’s program, but none from the Dakotas or Minnesota. Former institute attendees are also invited to attend the second annual Leadership Institute Alumni Summit in June.
National Potato Council Prepares for Washington Summit – Now that the Potato Expo is over, the National Potato Council shifts their focus to an annual meeting at the end of February. NPC’s annual meeting is typically held at the end of the Potato Expo, but that changed this year. The annual meeting is being held at the new Washington Summit. “By moving the annual meeting and combining it with our Washington D.C. Fly-In, it provides continuity for the organization,” said Kam Quarles, CEO, National Potato Council. “Members can set policy and then, go act on that policy.” Despite a slight dip in Potato Expo attendance this past week, Quarles says it was good to be back together again. “By far, that’s been the big comment we’ve heard this past week. We hope this is a turn back towards the new normal.”
Food Prices Rise – The price of food worldwide is at levels not seen since 2011. The United Nations Food and Agriculture tracks international food prices on a monthly basis. Year-over-year, food prices rose 28 percent in 2021.
For 2022: Hope for the Best, Prepare for the Worst – Drought challenged dryland potato production last year. Syngenta Agronomic Service Representative Jason Snell says that made things interesting for northern potato growers. “It was a low disease year, but when we did find disease it was severe and it was often made worse with irrigation water. Root diseases were more prevalent than we expected.” For 2022, Snell thinks farmers should approach the growing season like any other year. “Hope for the best and prepare for the worst. I think there could also be areas of the soil with higher risk of disease. Make sure you use higher rates of protective fungicides to keep them safe,” says Snell. “Syngenta has a good line-up of liquid seed treatments like Vibrance and Cruiser lines, in furrow products like Elatus and foliar applications like Miravis Prime and Revus Top fungicide.” Hear the story.
Secure Input Needs Early – Now is the time of year to plan for the upcoming growing season. Gowan USA Northern Sales Representative Marsha VanLaere encourages potato growers to be thinking about securing their input needs. It’s unclear what 2022 may bring. “Gowan USA offers a full portfolio of herbicides, fungicides and insecticides. A herbicide we offer for potatoes is Eptam 7E. This is a pre-emergence herbicide farmers can put down to control grasses like foxtail and broadleaf weeds like herring nightshade.” The Red River Farm Network’s coverage of the Potato Expo is presented, in part, by Gowan USA. Hear the story.
Plan Ahead for Growing Season Input Needs – Bayer Crop Science Technical Services Representative Kevin Thorsness says supply chain issues continue to be top-of-mind for many in agriculture. “Product availability in some situations may be challenging. We’re doing everything we can to make sure these products are available to farmers. If growers know they need a certain product, purchase it and don’t reduce the rate of a product if supplies get tight.” Potatoes are susceptible to many insects and diseases. Thorsness says reducing rates can cause resistance. “One way to develop resistance is by using the lower than recommended rate in crops.” Hear the story.
Factoring Higher Input Costs into Potato Production – OC Shulz and Sons partner and fresh potato grower Dave Moquist is planning for the 2022 growing season. He produces red and yellow potatoes near Crystal, North Dakota. “Varieties are a big decision. Will we continue to grow the same or change things up? Our potato acres are steady.” The big unknowns for the year ahead are expenses. “Fertilizer prices are through the roof. We know pesticides are going to be up. Production costs are more and we don’t have the luxury of passing our expenses on. It boils down to what buyers are willing to pay and what the market will bear. All we can do is get as much out of the market, price wise, as we can.” Moquist attended the Potato Expo this past week in Anaheim, California.
AMVAC Highlights Product Offerings at Potato Expo – AMVAC Chemical Commercial Product Manager Micah Scanga says AMVAC has an advantage over other companies with the supply chain challenges. “We can be a reliable supplier, because we are a U.S. based company with five manufacturing sites. The bottom line is we can provide tools growers need when they need it.” Scanga says AMVAC has many options available for 2022. “We offer foundational products including soil fumigants like K-PAM and VAPAM. The company is expanding our biological portfolio to include Ecozin Plus, a product that targets a wide range of insects like nematodes and we have SmartBlock, a post-harvest product that prohibits sprouting.” The Red River Farm Network’s Potato Expo coverage is sponsored, in part, by AMVAC. Hear the story.
Manure Happens – When utilized as crop nutrition, NDSU Extension Livestock and Environmental Management Specialist Mary Keena says there’s a difference in fertilizer value from composted and fresh manure. “When livestock producers push their manure up in piles, that’s called stockpiling and most of the time that’s a management strategy to help dry out the pens. That manure goes through a burndown cycle. When we compost it, it goes through several burndown cycles after being turned a few times. We not only stabilize the nitrogen in composted manure, but we also kill weed seeds, pathogens, and parasites.”
EU Suspends Tariff on U.S. Dry Edible Beans – As expected, the European Union has suspended the 25 percent retaliatory tariff on U.S. dry bean imports for one year while the two sides work toward a permanent solution. These tariffs have been in place since 2018 in a trade dispute over steel and aluminum exports. The EU was the largest regional export market for U.S. dry beans before the 25 percent tariff was implemented. This action does not apply to the United Kingdom, which is one of the top three European markets for U.S. dry beans. The situation with the UK has been complicated by current tension between the Biden Administration and British leaders over the handling of Northern Ireland and Brexit.
Dry Bean Scene – NDSU Extension Cropping Systems Specialist Greg Endres highlighted the latest research on row spacing and plant population for pinto beans at two different meetings this past week. You can learn about this research in this week’s edition of the Dry Bean Scene, which is sponsored by the Northarvest Bean Growers Association.
Sunflowers Pencil Out – There is an acreage battle underway with the current price environment. Corn, soybeans and spring wheat are competing with canola, dry edible beans and other specialty crops for acres. Proseed District Sales Manager Dave Gehrtz is also getting calls about sunflowers. “There’s tremendous interest in sunflowers. They haven’t grown them for years and Dad says he’ll never grow them again, but now you look at flowers and they’re at pretty darn good money.”
Beet Stock Values – Last week, 223 American Crystal Sugar Company beet stock shares were brokered at an average price of $4,130.72 per share. “With prices moving back to the low $4,000s, this was one of the busier beet stock brokerage weeks this season, said Jayson Menke, broker, Acres and Shares.
Renewable Diesel and Biodiesel Increasing Markets – This past year, new soybean crush facilities were announced in Casselton and Spiritwood, North Dakota. North Dakota Soybean Council Director of Market Development Jena Bjertness says the state is a leader in developing the market. “North Dakota has the new crush facility going into Spiritwood from ADM and every bit of oil from that facility is going to Dickinson to become renewable diesel before going to California to feed their low-carbon fuel standard. North Dakota is about to become a major player.” Sustainable aviation fuel is another market that’s exploded the last few months. Bjertness says soybean oil is in the race to become a major supplier. “It’s really a race with the feedstocks to see who’s going to fill that market.”
Canola Minute – In this week’s Canola Minute, Northern Canola Growers Association Executive Director Barry Coleman outlines the renewable fuels market and its impact on the canola industry.
Retail Fertilizer Prices Continue to Increase – The average anhydrous price is at an all-time high of $1,428 per ton. That’s up nine percent from last month. 10-34-0 was up five percent at $795 per ton. According to DTN’s survey of ag retailers, the cost of anhydrous is up more than 200 percent from one year ago. The price for UAN28 is up 179 percent and UAN32 is up 171 percent. Urea is 148 percent more expensive than one year ago and potash is up by more than 120 percent. All fertilizer prices are well above year ago levels. DAP is 82 percent more expensive; MAP is up 73 percent and 10-34-0 is averaging 71 percent higher than one year ago.
Activist Groups Ask Courts to Expedite Action on Dicamba – The Center for Food Safety, the Center for Biological Diversity, the National Family Farm Coalition and the Pesticide Action Network have filed a motion in federal court to take action on dicamba. The activist groups want the EPA to vacate its 2020 dicamba registrations of Engenia, XtendiMax and Tavium. The lawsuit cites a report filed by the EPA last month that said off-target movement continued even after label restrictions were made.
Seed Supply Will Be Discussed at MCIA Meeting – With this past year’s drought, spring wheat yields were often less than half of a normal year. Minnesota Crop Improvement Association President and CEO Fawad Shah still expects adequate seed supplies. “We are confident with the carryover certified seed from a year ago plus this year’s production will help carry us through the 2022 production year.” The drought has other implications. “There is strong demand from North Dakota growers and that variable may deliver a little stress to the seed supply, but we have yet to see that.” The Minnesota Crop Improvement Association Annual Meeting will be held Wednesday over Zoom. In addition to a discussion about seed supply, the meeting will feature Agriculture Commissioner Thom Petersen and a celebration of the state organic program.
Deere Introduces Autonomous Tractor – John Deere’s fully autonomous tractor will be available to farmers later this year. The tractor made its debut at a huge consumer technology show Tuesday in Las Vegas. Deanna Kovar is the vice president of Deere’s precision agriculture business and says farmers will be able to monitor the autonomous tractor remotely from their phone, tablet or computer. “These machines don’t get tired and they don’t call in sick; they get the job done when it needs to be done, allowing farmers to get the most out of their equipment and their land.” Kovar emphasized this new technology is ready for large-scale production. “This isn’t a concept machine; this isn’t a demo; this is a working machine that will be available later this year to farmers.”
A Game Changer – Auto-steer has been a reality for 20 years, but now field work can be done without having someone in the cab of the tractor. True North Equipment Sales Manager Joe Breidenbach says the new John Deere technology is a combination of autonomy and automation. “We’ve been working toward automating tasks in our machines for some time now,” said Breidenbach. “It’s no different than seeing adaptive cruise control and lane-keeping technology with your vehicle and right through to the self driving capability that Tesla and GM are developing. We’re at a place where industry is ready for this and people are becoming more ready for this.” True North Equipment co-owner John Onken describes Deere’s new autonomous tractor as a game changer. “In fact, it changes the scale of the farm, the capability on the farm, the efficiency of the farm and even succession.” Deere’s autonomous tractor will be released on a limited basis later this year. “There will be fall release of exposure units and I think it will be limited. Our expectation is we’ll have the ability to work with it and see it here in this region.”
Equipment Still Experiencing Supply Chain Issues – Supplies of new equipment remain tight as equipment manufacturers deal with supply chain issues. Association of Equipment Manufactures Senior Vice President of Industry Sectors Curt Blades says tight supplies are two-fold. “The demand for equipment has been stronger than previously expected for 2021. Couple that with supply chain issues across the board that are causing equipment to take a little longer to get delivered.” Blades says COVID highlighted supply chain issues that have been developing for several years. “Some of these supply chain issues have been in place pre-pandemic such as shortage of steel, labor, or transportation”. Looking ahead Blades expects the timeline between ordering a piece of equipment and when is shows up on your farm to remain stretched out.
Double-Digit Growth for CLAAS – German farm equipment manufacturer, CLAAS, increased fiscal year revenues by nearly 20 percent despite the pandemic and supply chain challenges. CLAAS officials said the company also invested a record amount in its research and development efforts.
CHS President/CEO Remains Bullish on Agriculture – CHS President and CEO Jay Debertin is enthusiastic about the current state of agriculture. Strong global demand for U.S. farm commodities is credited for that optimism. “Trade flows are occurring more normally and our exports out of the Pacific Northwest and the Gulf are very strong; That’s a signal I look for regarding strength within the agricultural economy, the market forces are working and buyers from around the world are coming to the U.S.” Product shortages are a reality for ag retailers and farmers. Debertin says CHS is proactively preparing for the growing season. Farmers are encouraged to do the same thing. “Have contingency plans in place; buy it, get it and put it in your shed so you’ll know you’ll have it. Do that more this year than they have in past years.” The full interview with Debertin can be found online.
A Record Quarter for CHS – CHS is reporting record quarterly net income of $452 million. That compares to $69.7 million in the first quarter of 2021. The improvement in earnings was driven by gains in the cooperative’s agriculture, energy and nitrogen production business segments. The strong global demand is in contrast to weak demand with the pandemic one year ago.
Birdseed Operations to Cease at CHS Grandin – CHS will end the birdseed processing and bagging operations now done at its Grandin, North Dakota facility by January 14. The decision does not affect the CHS Sunflower Royal Hybrid seed breeding and processing business or its edible sunflower consumer shelled and kernel operations. Those activities will continue without interruption at the Grandin location or the CHS Fargo operations.
Talc USA Becomes Part of BRANDT – Illinois-based BRANDT has acquired majority interest in Talc USA. Talc is based in Page, North Dakota and develops, manufactures and markets talc-based agricultural products to improve soil health and boost yield. Talc USA will operate as part of BRANDT’s specialty formulations business. All Talc USA employees will be retained and the current management will continue to oversee day-to-day operations.
New Ownership for Devils Lake Auction Barn – Chris Plummer of Langdon is the new owner of Lake Region Livestock. Jim and Mary Ziegler, who operated the auction market for more than three decades, will assist with the transition. Lake Region Livestock has a regular Tuesday sale.
MN Approves Transfer of Power Line to Rainbow Energy – The sale of the Coal Creek Station to Rainbow Energy Center LLC has cleared its final regulatory hurdle. The Minnesota Public Utilities Commission approved the transfer of Coal Creek’s high-voltage transmission line from Great River Energy to Nexus Line, a subsidiary of Bismarck’s Rainbow Energy Center. This transmission line extends between central North Dakota and Minnesota.
Another CEO Transition for Nutrien – Mayo Schmidt has resigned his position as Nutrien’s president and cheif executive officer after just eight months on the job. Nutrien Executive Vice President and CEO of Potash Ken Seitz has been named the interim CEO. Seitz has been with Nutrien since 2019.
A Promotion at AgCountry FCS – Troy Andreasen has been the new chief marketplace officer for AgCountry Farm Credit Services. Most recently, Andreasen served as a regional president for AgCountry.
Summers Manufacturing Announces Key Hire – Matthew Volkmar is the new director of sales and marketing for Summers Manufacturing. Most recently, Volkmar was a territory manager and director of key accounts for a Canadian equipment manufacturer.
Schmidt Recognized With Weed Control Partner Award – North Dakota Agriculture Commissioner Doug Goehring has named Rick Schmidt as the recipient of the 2022 Weed Control Partner Award.Schmidt serves on the executive board of the North Dakota Weed Control Association and has been an Oliver County weed officer and extension agent for 27 years.
Perdue Receives Distinguished Service Award – Former Agriculture Secretary Sonny Perdue, was recognized with Farm Bureau’s distinguished service award on Sunday. That announcement came immediately after another award presentation. “Wow, do you know how intimidating it is to receive this award after (the announcement of) the Dog of the Year?” Perdue finished his remarks with a salute to the American farmer. “It’s always a challenge, but it is always worth it for the noble, noble, noble occupation of providing food for mankind.”
Paap Honored by AFBF – During Sunday’s general session, Minnesota Farm Bureau Past President Kevin Paap was recognized for his service on the American Farm Bureau Federation Board of Directors. During his time on the board, Paap worked on many issues, including the farm bill and trade. “I was fortunate enough to be very engaged with the trade advisory committee so from my perspective, there is the importance of international trade and realizing that we grow more than we can use in this country and we need those international partners.”
Leddy Earns W.D. Farr Scholarship – A South Dakota woman has been awarded a $15,000 scholarship from the National Cattlemen’s Foundation. Kiera Leddy graduated from Oklahoma State University with a bachelor’s degree in agricultural communications and is pursuing a Juris Doctorate at Drake University Law School. Leddy is originally from Stockholm, South Dakota and plans to return to her home state upon graduation.
Minnesota Beef Update – The board of directors election for the Minnesota Beef Council is detailed in this week’s edition of the Minnesota Beef Update. The deadline to apply for the board is January 21.
RJO Patriarch Passes – R.J. O’Brien & Associates Chairman Emeritus Robert J. O’Brien, Sr. passed away Tuesday at the age of 103. O’Brien served two consecutive terms as the Chicago Mercantile Exchange chairman and served on the CME board from 1964 to 1977. R.J. O’Brien & Associates is the largest independent futures brokerage and clearing firm in the United States.
Condolences to Czerwien Family – Ed Czerwien, who was a longtime market news reporter for USDA, has passed. Czerwien, 70, operated CZ Cattle Market Analytics in his retirement and was frequently heard on the Red River Farm Network. Czerwien, who is a graduate of North Dakota State University, battled ALS for the past three years.
Former UM Extension Educator Passes – Funeral services will be held Tuesday in Warren, Minnesota for former University of Minnesota Extension Educator Bill Craig. Craig, 67, was a regional Extension educator for 14 years focusing on risk management. Craig spent another six years as an Extension ag services director in Marshall and Pennington Counties.
Last Week’s Trivia-The television drama featuring John Dutton, Kayce Dutton, Beth Dutton, Rip Wheeler, Lloyd Pierce and Teeter as characters is Yellowstone. Hilary Paplow of Graff Feedlots wins our weekly trivia challenge. Kevin Schulz of Dakota Farmer/Nebraska Farmer, Brian Rydland of CHS Hedging, Randy Knudsvig of First State Bank and Jon Farris of BankWest earn runner-up honors. The ‘first 20’ rounds out with Todd Good of AgCountry Farm Credit Services, Harvey farmer Bill Ongstad, Jordan Hulm of Farm Credit Services of Mandan, Jim Altringer of CHS Dakota Plains Ag, Kevin Praska of Stone’s Mobile Radio, Lawton farmer Dennis Miller, Sherry Koch of The Mosaic Company, Curtis Noll of Noll’s Dairy Farm, Dan Durheim of Nationwide Insurance, Clyde Tiffany of Pioneer, Jud farmer Rory Metz, Warren farmer Brandon Gornowicz, Renville County farmer Mickey Peterson, Mike Trosen of Meadowland Farmers Cooperative and Ron Dvergsten of Northland Farm Business Management.
This Week’s Trivia-What do Mike Tice, Leslie Fraizer, Les Steckel and Brad Childress have in common? Send your answer to don@rrfn.com. Please, include your hometown and/or job title so we can recognize you in next week’s newsletter.
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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.