A Weekly Update from the Red River Farm Network

Monday, January 24, 2022

Wild Weekend-The NFL divisional playoffs delivered plenty of excitement. Three games were decided on a last-minute field goal and the fourth game went into overtime. The #1 seeds were taken out in this round, which hasn’t happened since 2010. If you think about it, farming and football have a lot in common. Each team has a game plan in place before the kickoff occurs. Likewise, farmers and ranchers have a business plan to prepare for the season ahead. Both plans need to be flexible and revisited often. Football and farming are both driven by numbers, whether it is rushing yardage and sacks or bushels per acre and a balance sheet. Information is also critically important for those on a football field or a field of wheat. We can’t help you with the football knowledge, but the Red River Farm Network is here to provide the news and information to help our listeners survive and thrive. Hopefully, your team is doing well in the playoffs and your farm has a winning season! 

Biden Ends First Year in Office with News Conference – President Joe Biden spoke about the need for competition. The president said there are too many industries where a handful of large companies dominate the market. “Over time, it has reduced competition, squeezed out small businesses and farmers, ranchers and increased the price for consumers,” said Biden. “We end up with an industry like the meat processing industry where four big companies dominate the markets, pay ranchers less for their cattle (and) charge consumers more for beef.” There was a question about trade with China, the phase one trade agreement and the elimination of tariffs on some Chinese imports. Biden said U.S. Trade Representative Katherine Tai is working on this issue, but it is not yet resolved.

Competition and America’s Food Supply – The effects of concentration within the food sector were the focus on a House Judiciary subcommittee Wednesday. The majority of the testimony dealt with the meat and poultry sector, but Farm Action President Joe Maxwell also addressed consolidation in the fertilizer industry. “When commodity prices are high, dominant firms simply raise prices of inputs,” testified Maxwell. “While the cost to manufacture fertilizer has increased, these increases do not justify a 680 percent increase in the gross margins for fertilizer.”  The president and founder of the International Center for Law and Economics Geoffrey Manne said rising food prices can be blamed on many things including increased demand from financial stimulus and supply chain disruptions. “Rather than accepting these extremely likely causes, of the recent increase in prices some, including the White House, have seized the opportunity to blame inflation on a widespread pandemic of greed and collusion by businesses, especially meatpacking, grocery stores and oil companies.” Witnesses also represented the Natural Resources Defense Council, a contract poultry producer, an independent grocery store retailer and the Heritage Foundation.

No Silver Bullet – The ever-increasing cost of fertilizer was brought up in a House Agriculture Committee hearing. Agriculture Secretary Tom Vilsack spoke to the complexity of the situation. “There’s no silver bullet, I wish there were and if there were, we’d certainly be on top of it.” Longer-term, Vilsack said the U.S. needs a different approach. “We need to look at ways to be less dependent on outside sources and resources for these materials.”

Transportation Costs Push Fertilizer Prices Higher – StoneX Director of Fertilizer Josh Linville credits the skyrocketing fertilizer prices to a suitcase of reasons, including stimulus checks, high demand, and production issues. Transportation issues have also caused delays in fertilizer production. “Something that we’re just starting to talk about is the river system. Rivers are way down and barges are one of our most efficient ways of moving product from point A to point B. Trucking problems are all over the world, railways are seeing problems. The logistics are really starting to worry me more this year than in previous years.” Linville was featured in the AgCountry Marketing Day in Fargo.

Corn Matters – Minnesota’s corn growers helped fund a study looking at the cause of high fertilizer prices and the impact tariffs have on those prices. Minnesota Corn Growers Association Vice President Richard Syverson has more in this week’s Corn Matters.

Vilsack Gives More Details on WHIP+ Program to House Ag Committee – During last week’s House Agriculture Committee hearing, Agriculture Secretary Tom Vilsack shared more details about the 2020 and 2021 WHIP+ program. According to Vilsack, the payments will be distributed in two tranches, starting this spring. The first tranche would be based on information USDA already has pre-filled for grain producers and livestock forage data. The second tranche of payments would make up for whatever the first tranche does not cover. The program will be administered by the Farm Service Agency, but the Risk Management Agency will calculate the payments and pass that dollar amount to the FSA. For the livestock portion of disaster aid, the USDA will leverage Livestock Forage Program data, not requiring producers to fill out an additional application.

Frustration with the USDA – After Agriculture Secretary Tom Vilsack met with the House Agriculture Committee last week, South Dakota Congressman Dusty Johnson said there is a lot of frustration. “We still have FSA offices that are not as open as many of us would like. We continue to have this threat of Waters of the United States coming from the Biden administration and there’s frustration with biofuels and delays on disaster payments.” The Biden administration’s been talking about the need for more competition in the marketplace. Johnson tells the Red River Farm Network more transparency is needed. “The Biden administration’s said a lot of right things over the last two months, but they haven’t really matured that talk into much action yet. That being said, there’s a lot of good stuff in there, including the cattle contract library.”

Farm Bureau: New Vaccine Requirements May Limit Available Workforce – The Department of Homeland Security will start enforcing vaccine requirements for non-U.S. citizens traveling to the U.S. through ports of entry, including essential workers. In response, the American Farm Bureau Federation expressed concern, noting that the department failed to give proper notice of the mandate. In a statement, Farm Bureau said this could limit the available workforce and exacerbate existing supply chain issues.

Early Retirements Cut into Ag Workforce – Supply chain issues and shortages have had a ripple effect throughout the entire economy. Kernmantle Group owner Matt Robberts sees one of agriculture’s biggest challenges being with labor. This is due, in part, to early retirements. “2020 was the mid-point for baby-boomers to hit the retirement age and we’ve been losing about a million boomers a year to retirement. Gen Z, who is currently entering the workforce is a much smaller generation. The workforce is essentially declining in size. With COVID, we saw an increase in 3.5 million to 5  million early retirements. To compensate for this, I think we’re going to be seeing a lot more situations where the industry substitutes capital for labor.”

There’s No Way to Return to Pre-Pandemic Trade – Speaking at a virtual World Economic Forum, U.S. Trade Representative Katherine Tai said the world should not try to resurrect the trading system that was in place before the pandemic. Tai said lessons can be learned from the past two years and there is an opportunity to build something “that is different and better.” A stronger, more diversified supply chain is one recommendation.

Potential Seen for Continued Export Growth in China – China increased agricultural imports in the past year with corn imports alone almost tripling in volume from 2020. Corn is also one of the biggest untapped trade markets for U.S in potential growth. “We’ve seen a huge increase in corn because China’s banned the practice of swill feeding hogs and those big confinement operations feed them typically corn and soybean meal,” said Aimpoint Research Chief Economist Gregg Doud. Another area of growth was with dairy products. “Before we started these negotiations with China, we had about 1,500 facilities in the United States that were eligible to export their products to China. Today, we have well over 4,000 facilities that are eligible.” Doud, who is the former chief agricultural trade negotiator for the U.S. Trade Representative’s Office, spoke at the AgCountry Marketing Day.

NASDA Ready for ’22 Policy Debate – The National Association of State Departments of Agriculture has identified its policy priorities for the year ahead. That list includes, supply chain issues, animal health and the defining of the Waters of the United States. NASDA plans to announce its focus for the 2023 Farm Bill in the upcoming weeks.

Future Farm Bill Direction – As the farm bill process begins, farmers and ag lenders want to protect crop insurance and federal farm programs. At the MN Ag Expo, Minn-Star Bank Senior Vice President Kent Thiesse said there will be some new themes in the next debate. “My guess is when we get to the next farm bill, there will be a lot of focus on conservation and carbon sequestration.” The future direction for risk management will also be a focus. “Crop insurance, the WHIP+ program, how does that get played into the farm bill? Do we continue with the PLC (Price Loss Coverage) and ARC-County (Agriculture Risk Coverage-County)? Obviously, the reference prices we have now are probably too low for good risk management.”

Drought Accounts for Majority of Crop Insurance Payments – The Risk Management Agency paid out more than $7.2 billion in claims in 2021. Over $5 billion of those claims were related to the drought. Only four North Dakota counties did not receive over $10 million in indemnity payments. North Dakota’s McLean County, which is in the central part of the state, received more than $119 million in crop insurance payments. Farmers and ranchers in South Dakota’s Edmunds County were paid nearly $65 million. For Minnesota, Polk County received the most indemnity payments at $58 million. Click here to see the map of 2021 indemnity payments.

Rounds Talks Policy at Corn Conference – South Dakota Senator Mike Rounds was featured at the South Dakota Corn University event in Sioux Falls Saturday. Rising food prices are making headlines, but Rounds said the general public needs to understand the entire story. “Consumers are telling their senators that meat prices are going up in the grocery stores so we’ve been communicating the price our cattle producers are getting is low so they recognize that right in the middle of them are these four major packers that are getting record profits.” The Build Back Better plan has hit a wall in the Senate and the White House is now considering the passage of specific ‘chunks’ of the proposal. Rounds expects a similar result. “They tried to use ten years’ worth of taxes to pay for three-or- four years’ worth of programs, that simply was not an honest way of talking with the American people about actually paying for the proposed programs.”

Taking a Proactive Approach – The supply chain is under stress and certain crop inputs may be difficult to source. North Dakota Grain Dealers Association President Alex Richard says farmers are not waiting until spring to take possession of these products. “Customers buying fertilizer, seed and chemical have been more proactive just because we all know the potential for shortages. We should have readily available ag inputs for this spring, but a lot of farmers want to lock up those products if possible.” Fertilizer is available, but the price tag is the issue. Richard says farmers are taking a different approach to their fertilizer purchases this year. “Instead of coming in and buying everything in one day, they know prices could go up or go down with this price volatility so they want to do some risk management.”

More Diverse, Lower Input Crops May Win in the North – Last fall allowed farmers to prepare early for the upcoming growing season. United Quality Co-op Chief Operating Officer and North Dakota Grain Dealers Association First Vice President Jeremy Burkhardt says many farmers took advantage of last fall’s lower prices to lock in fertilizer. “It was probably one of the best falls for fieldwork, because farmers were optimistic, the weather was better than previous years and farmers applied fall fertilizer.” Burkhardt is expecting an acreage shift to less fertilizer intensive crops. “We don’t have a ton of acres in the Minot area, but we could see lots of field peas, beans or flax, the crops with lower input costs.”

MN Wheat Minute – There are opportunities for U.S. wheat in overseas markets, that’s according to Minnesota farmer and incoming U.S. Wheat Associates Chairwoman Rhonda Larson. Hear more in the latest Minnesota Wheat Minute.

Spring Wheat May Struggle in the ND Acreage Battle – According to North Dakota Wheat Commission Policy and Marketing Director Jim Peterson, the amount of spring wheat planted this year is uncertain. “Certainly $1.50 (per bushel) ago, it was an easier decision to make. There was a lot of interest in wheat last fall, because of minimal issues and better-than-expected yields. February sets the crop insurance price. If we don’t gain traction and build back, there’s no question wheat may struggle in parts of North Dakota against soybeans and other crops.” Peterson wants to see better domestic and international wheat demand in the first quarter of the new calendar year. “A lower price allows us to compete better globally, but with the recent setbacks, we’re telling customers wheat isn’t going to compete as hard for acres as it would have two months ago.”

Small Grains Can Help Suppress Waterhemp – Controlling waterhemp is one topic at the University of Minnesota Extension’s Small Grains Update meetings. Extension Crops Educator Jared Goplen says small grains can help with waterhemp suppression. “Small grains are a competitive crop and this makes it really hard for the weed to get established, because it’s trying to grow in a big, shaded canopy. That’s a benefit to getting to work on this weed management.” Goplen encouraged attendees at Small Grain Update meetings to consider all of the benefits of adding small grains to the rotation. “Weed control or getting on top of other pests like Soybean Cyst Nematode.”

Drought Still a Factor for Farmers in Northwest ND – In northwest North Dakota, there is snow on the ground, but it is a very dry snow. Horizon Resources Grain Division Manager Levi Hall says farmers would like to see more moisture ahead of spring planting. “It’s been nice to see precipitation fall from the sky and there’s optimism for more moisture.” Hall is not anticipating farmers to change up their rotations much in the spring. Input costs are driving planting intentions. “The seed dealers I’ve talked with say there will be a greater interest in pulse crops, soybeans and anything that requires less nitrogen. Canola acres are also getting interest. This is the second year we’ll have a new crop canola contract more than $20 per hundredweight.”

Timely Moisture Needed for Recharge – After an unusually dry growing season in 2021, there is optimism for a different scenario this year. “We are hoping with the snow that it will help and maybe we’ll be getting some timely rains this season and build up that soil moisture profile again,” said Jeremy Richtsmeier, Hunter, North Dakota. “It will take a bit to do that, but it is looking like we are in the right weather pattern. Richtsmeier was part of the RRFN broadcast from the Precision Planting Winter Conference sponsored by Premium Ag Solutions.

Forecast Calls for More Soybean Acres – For the second time ever, U.S. soybean acres are forecast to go surpass corn production this year. Farm Progress, a division of Informa, expects soybeans to total 92.3 million acres. That compares to a forecast of 90.3 million acres for corn production. Informa says soybeans are more attractive due to the high fertilizer costs for corn.

Market Influenced by Weather and Global Tension – South American weather remains a major driver of the corn and soybean markets. Progressive Ag Marketing market analyst Bryan Strommen says the recent rains in the southern parts of Brazil and Argentina were welcome “but there’s also a lot of talk these rains may be too late for the crop that’s already pollinated.” Tension between Russia and the Ukraine is a big consideration for the wheat market. “Last week’s meeting (between U.S. and Russian leaders) took pressure off the wheat complex. Russia also lowered their export taxes.”

Traders Await the South American Export Demand Shift – South America received good rains in mid-January, alleviating late season production concerns. Along with the weather, StoneX Group market analyst Phillip Claussen says traders are monitoring export demand. “Like most years in January or February, there’s an eye on South American production. February is the critical weather month. Traders are also watching to see when China shifts to buying more grain from South America. Any exports the U.S. can sneak in for the next few weeks will be critical.” China bought U.S. soybeans in the last week.

Acres & Shares: Beet Stock Values – According to Acres & Shares, which tracks all brokered American Crystal Sugar Company beet stock sales, 235 shares were sold for an average price of $4,216.60 per share last week. “When we get up to these higher price levels the number of shares per trade is typically lower,” said Jayson Menke, broker, Acres & Shares. “Last week, there were nine brokered trades from 10 to 50 shares per sale.”

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 market analyst Randy Martinson says the Russian-Ukraine situation has been positive news for wheat. Rains in South America are in the ‘what’s not’ category. A bearish cattle-on-feed report is also up for discussion.

MN Beef Update – How can beef contribute to a healthy diet this year? Minnesota Beef Council Communications Director Ashley Kraemer has more in the latest Minnesota Beef Update.

USDA Releases Bearish COF Report – A record 1.96 million head of cattle were placed in feedlots in December. That’s six percent above the December 2020 total. The number of cattle and calves on feed totaled 12 million head on January 1. That’s one percent higher than one year ago and is the second highest January total since this series of reports began in 1996. USDA estimates marketings at 1.8 million head, up slightly from one year ago.

Walz Releases Capital Investment Recommendations – Minnesota Governor Tim Walz released his bonding and capital investment recommendations for the upcoming legislative session. For rural Minnesota, this plan includes $120 million for local bridges, $90 million for local roads, $10 million for permanent easements to improve water quality and wildlife habitat and $2 million for regional and shortline railroads. The proposal also includes $377,000 to renovate the potato inspection facility in East Grand Forks, Minnesota.

Proposed MDA Budget: What to Do with One-Time Dollars? – Portions of the proposed budget for the Minnesota Agriculture Department were announced ahead of the upcoming state legislative session. “There are things we’re considering with this $7.7 billion surplus in addition to the American Rescue Plan dollars,” said Thom Petersen, agriculture commissioner, Minnesota Department of Agriculture. “What are things we could fix with these one-time dollars this year? We continue to talk about drought relief for farmers and meat processing is a big issue.” Petersen would like to see the drought relief addressed early in the session. “By the time lawmakers would pass something and the department could set up a program and issue checks, that takes time. We want to help farmers pay a bill or two.”

Cautious About Budget Surplus – The Minnesota legislative session will begin in less than two weeks. While there is a budget surplus, Minnesota House Ag Finance and Policy Committee Lead Republican Paul Anderson does not think lawmakers should spend it all. “This is one-time money and when you factor in inflation, the surplus isn’t that big. We have to be careful,” says Anderson. “I’m going to look for targeted tax relief and there will be a limited budget bill going forward. When it comes to tax relief, farmland values are going up and this will impact our property tax situation.” Anderson believes the ag committee will support funds for E-15.

A Quiet Start to the MN Legislative Session Anticipated – Aside from dealing with a $7.7 billion budget surplus and $6.8 billion from the American Rescue Plan, Minnesota Ag lobbyist Bruce Kleven is expecting a quiet Minnesota legislative session. “We generally start to see bills from different departments showing up in February. Agriculture groups aren’t bringing many issues up proactively, except the Minnesota Corn Growers Association bringing up the E-15 mandate.” Kleven thinks COVID is having an impact on the legislative process. “A lot of folks are dealing with COVID from a workforce or vaccination standpoint. I think everyone is treading water trying to get out of the current COVID situation.” Minnesota’s legislative session begins January 31.

Walz Sets Water Quality Goal, Promotes E-15 at MN Ag Expo – Minnesota Governor Tim Walz made an appearance at the MN Ag Expo. In addition to setting a goal of enrolling one million acres in the Minnesota Agriculture Water Quality Certification Program this year, Walz talked about the upcoming legislative session and the importance of approving year-round E-15 in Minnesota. “I think this may be the year to get this done. It’s not only the right thing to do environmentally, it’s a sound market for local growers.” A group of farmers met with Walz, including Minnesota Corn Growers Association President and Lake Wilson, Minnesota farmer Bryan Biegler. “We talked about E-15 in our meeting with the governor, but we also need help on the federal level for mandating E-15. June, July and August E-15 isn’t allowed. If we can get that changed, it would help on the state level.” Hear the Red River Farm Network’s interview with Walz.

 

MN Soybean Growers Adopt Resolutions, Set Priorities for 2022 – During the MN Ag Expo, the Minnesota Soybean Growers Association approved six new resolutions. MSGA President Mike Skaug says the majority of the resolutions deal with water quality. “We had other resolutions that dealt with it previously, but things have changed so we modified those resolutions.” The association is in favor of requiring fall nitrogen restrictions based on soil types versus restrictions by an entire section. There’s also support for an increase in the ag homestead credit. The six resolutions will be added to the policy book. “We look forward to getting to work on these.” MSGA has five legislative priorities in 2022; the continued biodiesel investment, more funding for the Ag Innovation Campus at Crookston, Minnesota, lowering taxes, infrastructure and protecting pesticides.

MN Corn Approves Trade and Ethanol Resolutions – Minnesota Corn Growers Association delegates were engaged in the resolution process ahead of the annual meeting. MCGA supports the federal approval of the year-round use of E-15 and wants Minnesota to adopt an E-15 standard for unleaded gasoline. “We took a run at it last year. Since the session ended, we’ve been working with lawmakers and are ready to take another run at it,” said Adam Birr, executive director, Minnesota Corn. “This time, we want to provide resources to retailers who may not have resources for infrastructure. We’re trying to find more infrastructure dollars.” The MCGA also passed a resolution to support the U.S. joining the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership. Mentor, Minnesota farmer John Swanson welcomes more trade opportunities. “Exports are really important, especially in northwest Minnesota.” Hear the story.

ND State of the State Rescheduled for February – North Dakota Governor Doug Burgum rescheduled the state of the state address for Wednesday, February 16. This event will be held at the Fargo Theatre in Fargo, North Dakota. The governor’s address was scheduled for last week, but postponed because Burgum had laryngitis. There’s also a venue update due to scheduling conflicts.

ND Grain Dealers Association Reviews Updates to ND Grain Regulations – North Dakota is still learning from the Hunter Hanson fraud that happened more than three years ago. A measure approved in the 2021 state legislative session gives the agriculture commissioner more discretion over who gets grain licenses. North Dakota Ag Commissioner Doug Goehring outlined the changes in a town hall at the North Dakota Grain Dealers Association Convention. “Everything has moved from a volume-base to value-base, whether it’s bonding or licensing. Deferred payment bonding went into effect this last year.”  Deferred payment bonding brought the most questions. “If a farmer wants to defer payment on a crop to the next tax year, the elevator must offer a bond to protect the farmer in the event of insolvency,” said Stu Letcher, executive director, North Dakota Grain Dealers Association. “There are questions about how this will work. It’s a good program, but there are a few things to address.” Hear the story.

Developing North Dakota’s Animal Ag Industry – North Dakota Livestock Alliance Executive Director Amber Boeshans was on a mission while attending the North Dakota Grain Dealers Association Convention. “We are looking for folks who are interested in producing bio-secure pig feed,” said Boeshans. “This would be feed produced specifically in a safe and secure area to send out to pigs here in North Dakota, because we know the state has an incredible opportunity to responsibly add more pigs across the state.” A significant soybean crush business is being developed in the region. “Where’s all that meal going to go? Are we going to put it all on rail and ship it out of the state? Let’s save that freight and save that headache and let’s feed it right here to our own animals.”

SD Won’t Adjust Cutoff Dates for Dicamba Applications – This past year, the South Dakota Department of Agriculture received well over 100 calls about dicamba, but there were only 23 official complaints. Out of those 23 investigations, there was only one valid drift complaint. State Agriculture Secretary Hunter Roberts testified before the Senate Agriculture Committee and said he is disappointed the federal government has not ruled the dicamba registration. “They acted like, to us, that they may have more information to provide by February or March. From our perspective, we didn’t have anything pointing to a change in rules.” Roberts said South Dakota won’t be making any changes to the dicamba application dates until after this next growing season. “EPA might, but the (South Dakota) Department isn’t going to do anything because we don’t have that science to lead us to change.”

SD Corn Comments – The South Dakota Corn Congress was held overt the weekend. Hear more about it in this week’s South Dakota Corn Comments.

 

 

Farm Bankruptcy Rate is Low – Farm net incomes are going up. American Sugar Alliance Director of Economics and Policy Analysis Rob Johansson credits the increase to crop and livestock values remaining strong through 2021. “From the December USDA release, farm income is expected to be up in 2021 relative to 2020, up over 18 percent since last year.” With increased income came increased expenses as well. “Expenses are up significantly in 2021 and we can expect that in 2022 with an increase in fuels, livestock and feed grains up, along with fertilizer prices.”

Ag Workers Retire and It’s Hard to Fill Jobs – Worker shortages are a challenge in agriculture, grain cooperatives included. Different factors contribute. Fessenden Co-op General Manager Mark Hovland says 25 percent of employees at his co-op are in the retirement age bracket. “We’ll have lost about 10 of them from November 2020 through March 2022. We’re not seeing a lot of applicants come through the door and we’re doing what we can. It’s hard to advertise to fill those roles.” Hovland and other North Dakota Grain Dealers Convention attendees participated in a workshop on engaging and retaining employees last week.

Improvements Will Be Made to Lock 25 on Mississippi River – Funding to complete improvements to Lock and Dam 25 was included in the infrastructure bill that passed in November. Soybean Transportation Coalition Executive Director Mike Steenhoek says this is a big win for agriculture. “Agriculture’s been pining for a number of these lock and dam projects for years. People questioned whether it would be a broken record, whether we’d just aspire to these projects only to be disappointed.” Steenhoek says the project will more than double the capacity of Lock and Dam 25. “It will take the existing 600 feet long by 110 foot wide lock chamber and add an additional lock chamber to it that’s much bigger. There will be two chambers.”

Fargo/Moorhead Diversion Project Gets More Money – The St. Paul District of the U.S. Army Corps of Engineers received $437 million to complete work on the Fargo-Moorhead Flood Diversion project from the Infrastructure Investment and Jobs Act. The funds will allow the Corps to complete all remaining portions of the federal work on the diversion project.

Creating Incentives to Address Trucker Shortage – The Federal Motor Carrier Safety Administration is accepting applications for its new Safe Driver Apprenticeship Pilot Program. With this effort, 18, 19 and 20-year old drivers may operate commercial vehicles for interstate commerce. This program is designed to help with the truck driver shortage and ease supply chain disruptions.  Previously, drivers under 21 years of age could not cross state lines while trucking.

Small Grain Update Meetings Available Through February – The University of Minnesota Extension is offering a series of Small Grains Update meetings and webinars around the state through February. Regional Extension Integrated Pest Management Educator Anthony Hanson says knowing what pests are in your fields is critical to knowing how to treat the problem. “Part of integrated pest management is scouting and it’s very important. The University of Minnesota has student workers go out to take a closer look to get an assessment of what’s happening in different areas of the state.” Looking ahead, moisture going into spring will make 2022 much different than 2021. “A wet spring would help with pests like grasshoppers. It’s not a guarantee, but the risks may be lower.”

Moisture and Markets Provide Optimism – The dry weather dominated the crop production story across the region this past year. “It was a little rough trying to get the dry bean crop off with the dry conditions,” said Scott Hammond, BASF business representative, “When we started to get those rains later in the season, it seemed to benefit other crops, but dry beans were too far along.” BASF was part of a live Red River Farm Network broadcast at Bean Day. During that broadcast, Hammond said there is optimism with the amount of moisture replenishment this past fall “and, of course, markets are favorable right now.” BASF has more than a dozen products available to serve the dry bean market, including Obvius Plus seed treatment, Varisto Herbicide and Sharpen as a harvest aid.

Dry Bean Scene – In the Dry Bean Scene, Northarvest Bean Growers Association President Eric Samuelson comments on Bean Day and the crop prospects for 2022.

Sustainability is More Than a Buzzword – U.S. dry bean export volume was up significantly this past year. The top markets were Mexico, Canada, Italy and the Dominican Republic. Northarvest Bean Growers Association Executive Director Mitch Coulter said both domestic and international buyers have a clear focus. “The opportunity is around sustainability and the push for processing these beans to get to that protein; there is a shortage of protein in this world and we can fill that.” The demand for healthy, nutritious food has brought more demand for plant-based foods and ingredients. “The health aspect of this is a huge opportunity from the food companies that want ingredients to make blended foods or flexitarian products and we want to keep pushing in that direction to fill that need.”

More Interest in Variable Rate Technology – The high fertilizer bill has more growers considering variable rate application. “There’s a lot of guys have had conversations about it, but haven’t committed,” said Troy Amundson, Premium Ag Solutions. “A lot of times, they haven’t committed because they don’t know exactly how to do it.” Amundson says the focus begins with the planter. “We do a lot of variable rate nitrogen with planters looking at an in-furrow application whether it would be a Soygreen type application or an in-furrow pop-up type application to put the fertilizer where it should be in the more productive soils and back off where it the soils can’t handle it.” As fertilizer prices rise, Amundson says farmers are looking for more efficiency.”

New Product Concept Unveiled at Precision Planting Conference – At its annual winter conference, Precision Planting announced its first move into sprayer technology. “Growers have allowed us to be with them from planting to harvest to strip tillage and even air seeders,” said Matt Grove, regional manager, Precision Planting. “Now, they’re opening door to the cab to the sprayer for us to be there.” There will be beta-testing this spring and more announcements will be in mid-to-late 2022. While crop sprayers were featured in the announcement, the emphasis remains on the planter. “Creating that furrow and having even emergence making sure we get that moisture, temperature and oxygen are critical. We set our potential with the planter pass.” RRFN’s live broadcast from the conference was made possible by Premium Ag Solutions of Hitterdal.

New Navy Bean Variety Announced – NDSU Dry Bean Breeder Juan Osorno announced the release of a new navy bean variety called ND Polar during Bean Day. “It’s been about ten years since we released a new navy bean variety; we’re excited to see the sheer economic performance and higher yields.” The foundation seed is available for certified seed producers to grow this year and it will be available commercially in 2023. Osorno says slow darkening pintos, which were released five years ago, is adding value to the marketplace as well. “On top have having a good looking seed that will retain it’s nice, bright color over time, there are other attributes such as faster cooking time and higher iron viability which is a big deal for developing countries where iron deficiencies are a problem.”

Mexico Phasing Out Glyphosate Use – Mexico is on the path to gradually eliminate glyphosate by 2024. Mexico’s National Council of Science and Technology has cut its recommendation for glyphosate imports in half. Mexican President Manuel Lopez Obrador issued an executive order two years ago to phase out the weed killer and bioteh corn.

UPL Offers Tool for Season-Long Weed Control – UPL is expanding the availability of its INTERMOC herbicide for the 2022 growing season. INTERMOC is a combination of contact and residual herbicides and can be used a broadcast burndown application prior to crop emergency in labeled conventional row crops and as a post-emergence tool for glufosinate-tolerant soybeans.

Canola Minute – How does the growth in renewable fuel demand impact local canola growers? Learn more from Northern Canola Growers Association Executive Director Barry Coleman in the latest Canola Minute.

CN Seeks to Intervene in CP-KCS Deal – Canadian National Railway, which lost out in its bid to acquire Kansas City Southern, isn’t done yet. The CN has filed noticed with the U.S. Surface Transportation Board seeking a major divestiture if the Canadian Pacific acquisition of KCS moves forward. The train line in question is a stretch from Kansas City to Springfield, Illinois.  CP officials said this isn’t a parallel train line and is not subject to divestiture.

BNSF Union Workers Threaten to Strike – Supply chain logistics are facing another hurdle. More than 17,000 BNSF Railway union workers are threatening to go on strike February 1. A new attendance policy for employees is the point of contention. BNSF claims the new system will provide employees with real-time information and greater flexibility. The unions say their members will be forced to work regardless of their medical condition. BNSF wants the federal courts to intervene and prevent a strike.

A New Name for National Biodiesel Board – The National Biodiesel Board is now known as Clean Fuels Alliance America. The new branding helps the organization represent the entire industry, including biodiesel, renewable diesel and sustainable aviation fuels. The announcement was made during the National Biodiesel Conference and Expo in Las Vegas.

Finalist Candidates Announced for NDSU Presidency – Five finalists have been announced to replace Dean Bresciani as president of North Dakota State University. The acting executive chancellor at the University of Minnesota’s dual campus at Crookston and Morris, Mary Holz-Clause, is the one local candidate. Finalists also include University of Kansas-Lawrence Vice Chancellor David Cook, Marymount University Provost and Senior Vice President Hesham El-Rewini, California State University-Chico Provost and Vice President of Academic Affairs Debra Larson and University of Texas-Tyler Immediate Past President Michael Tidwell. Final interviews will be conducted on the NDSU campus February 23.

Four Senior USDA Staff Positions Filled – Scott Marlow is the new deputy administrator of farm programs for the Farm Service Agency. Marlow currently leads a consulting business. Tim Gannon takes over as the chief of staff for Farm Production and Conservation. Gannon worked with farm and rural coalitions for the Biden-Harris campaign in Iowa and previously served as the associate administrator in the Risk Management Agency. Andrea Delgado will serve as chief of staff for the Natural Resources and Environment mission area. Delgado’s experience has been with the United Farm Workers Foundation and Earthjustice. Sara Bleich was selected to be director of nutrition security and health equity for the Food and Nutrition Service. Since the beginning of the Biden Administration, Bleich has been a senior advisor on COVID-19. Before that, she was a professor of health policy at Harvard.

Place Moves From MN Ag Department to FSA – Whitney Place is on the job as the new state executive director of the Minnesota Farm Service Agency. Her first interview in this role was with the Red River Farm Network. In her new role, Place will be working closely with FSA Administrator Zach Ducheneaux, from South Dakota. “I’m really looking forward to working with him and his knowledge of Midwest agriculture; we worked closely with him with the drought this past summer.” Place was appointed by the Biden Administration after service as the state’s assistant agriculture commissioner. It is a busy time with deadlines ahead for Dairy Margin Coverage and the ARC/PLC program. Place said the University of Minnesota Extension is hosting a free webinar about the ARC/PLC elections on January 26. Hear the interview.

 

Ose to Join BWSR Board – Minnesota Governor Tim Walz has appointed LeRoy Ose to serve on the Board of Water and Soil Resources. Ose is a Thief River Falls farmer and a member of the Red Lake Watershed Board.

MFBF Minute – Minnesota Farm Bureau President Dan Glessing was elected to the American Farm Bureau Federation’s Board of Directors for the Midwest Caucus. Hear more about their first meeting in this week’s Minnesota Farm Bureau Minute.

Finstad Drops ‘Interim’ From His Job Title – Brad Finstad is the new executive director of the Minnesota Turkey Growers Association and Minnesota Turkey Research and Promotion Council. Finstad has been the interim executive director since October. Previously, Finstad served as the CEO for the Center for Rural Policy and Development, USDA Rural Development State Director and President of Frontier Labs.

Horizon Logistics Names New General Manager – Terrence Bro is the new general manager for Grand Forks, North Dakota-based Horizon Logistics. Bro has more than 34 years of domestic and international transportation experience. Horizon Logistics is an independent transportation company formed by Black Gold Farms and the Halverson family.

ND Grain Dealers Association Elects New Board Members – The North Dakota Grain Dealers Association elected three new board members during their annual meeting in January. These three new board leaders are Legacy Co-op General Manager Sean Slowinski from Bisbee, Horizon Resources Grain Division Manager Levi Hall from Williston and Dakota Midland Grain, LLC General Manager Kayla Burkhart from Surrey. These board members replaced retiring board members Joe Peterson, Gary Urlacher and Scott Althoff.

Lifetime Achievement Award Presented to Tim Courneya – During Bean Day, the Northarvest Bean Growers Association presented its Lifetime Achievement Award to Tim Courneya. Red River Farm Network co-founder Mike Hergert was part of the award presentation, noting Courneya began his tenure as executive vice president of the association in 1976. “That longevity, devotion and dedication is, I think, unheard of in association work,” said Hergert. “Tim recalls all nine original board members went to the bank to personally back loans to keep the association going and push the creation of the North Dakota and Minnesota dry bean councils.” Courneya retired this past fall after spending 45 years with Northarvest. “It’s been a roller coaster ride; there couldn’t have been anything better for a young guy to be able to do these type of things,” remembered Courneya. Faye Courneya, who recently retired as the association’s office manager, was also recognized for her service to the dry bean industry. Listen to the entire award presentation.

Last Week’s Trivia-The O’Hare and Midway airports are in Chicago. Kristal Rick of MAGNO Seed wins our weekly trivia challenge. Runner-up honors go to Marla Thissen of Litchfield Chamber of Commerce, Bob Brunker of J.L. Farmakis, Justin Golden of Western Consolidated Co-op and retired Fessenden farmer David Clough. The ‘first 20’ rounds out with Kevin Praska of Stone’s Mobile Radio, Mike Trosen of Meadowland Farmers Cooperative, Mark Mettler of PreferredOne, Al Wimpfheimer of Simplot, Norm Groot of Monterey County Farm Bureau, Cokato farmer Harlan Anderson, Janet Kubat of Minnesota Farmers Union, Karmen Hardy of Proseed, Karlstad farmer Justin Dagen, Strasburg farmer Kenny Nieuwsma, Bob Lebacken of RML Trading, Nick Sinner of Northern Crops Institute, Dianne Bettin of LB Pork, Sherry Koch of Mosaic and Brian Rydlund of CHS Hedging. 

This Week’s Trivia-What fast food restaurant chain has Potato Oles, Taco Bravo and a Six Pack and a Pound on its menu? Send your answer to don@rrfn.com. 

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

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FarmNetNews is a production of the Red River Farm Network. RRFN is based in Grand Forks, North Dakota and provides news to farmers and ranchers across Minnesota, North Dakota and South Dakota.

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