USDA Announces ERP Phase II and Investment in Rural Communities – Agriculture Secretary Tom Vilsack addressed Farm Bureau delegates this morning, using the opportunity to announce several initiatives. That includes Phase II of the Emergency Relief Program. Vilsack said additional flexibility will be granted. “For those who received a decrease of income and revenue in 2020 and 2021, we’re giving them an option of choosing either 2018 or 2019 as the year to benchmark the extent of loss; we will be publishing a tool making it easier for individuals to determine the extent of relief under this Phase II program of the Emergency Relief Program.” A new pandemic assistance revenue program was also announced for those who experienced a 15 percent or greater decrease in gross revenue in 2020 compared to 2018 or 2019. More than $12 million is also being invested to expand independent meat and poultry processing capacity.  In addition to the 22 projects that were funded recently, Vilsack announced three more projects, including one from northwest Minnesota. “We’re going to provide resources to Benson+Turner, which is a new hog and beef processing facility in (Waubun) Minnesota that is associated with the White Earth Indian Reservation to provide new opportunities.” Vilsack also announced 21 potential projects that will soon be open for public comment in the Fertilizer Production Expansion Program. The projects announced included Northstar Lime of Crookston. This project, which is subject to public comment, will create biochar from biomass.

Right-to-Repair MOU Signed – The American Farm Bureau Federation and John Deere have signed a memorandum of understanding, giving farmers the right to repair their own equipment. Farm Bureau President Zippy Duvall made the announcement at the organization’s convention in Puerto Rico. “This agreement will enable you and your independent mechanics to identify and fix problems,” said Duvall. “You will have access to the diagnostic tools and information that you need and you’ll get it all at a fair and reasonable price.” It took years of negotiations to secure this agreement. Discussions with other equipment manufacturers have already begun.

More Interest Rate Hikes on the Horizon – The Federal Reserve released the minutes from its December meeting Wednesday, offering insight into their path forward on interest rates. “There’s still, a lot of job openings in the U.S. and they’re more concerned about inflation being driven by higher wages,” said Brad Paulson, president, Northern Crops Marketing and Investments. “We’ll probably see a rate increase in first part of February and again in March and then maybe they’ll back off.”

Political Unrest Influence Markets – Brazil is facing political unrest, like what was seen in the United States two years ago. Thousands of protesters who support Brazil’s former president stormed the presidential palace Sunday. The demonstrators want the military to intervene and return their former President Jair Bolsonaro to power. The turmoil will increase the volatility for Brazil’s currency and financial markets.

Record Trade Surplus for Brazil – Brazil posted a $62 billion trade surplus in 2022. Exports totaled a record $335 billion for the year. That’s up 19 percent from the previous year. The higher prices for agricultural commodities are credited for much of that growth. The value of soybean exports rose 21 percent.

Biden, Trudeau and Lopez Obrador Meet in Mexico City – President Joe Biden is in Mexico City for a summit meeting with his counterparts from Mexico and Canada. Trade will be on the agenda. For agriculture, that includes Mexico’s proposed ban on biotech corn imports.

Fielding Questions: Crop Insurance Decisions – In the latest edition of the Fielding Questions podcast, AgCountry Farm Credit Services Senior Vice President Keith Wilson discusses the importance of having an MPCI policy. New products for 2023 and the considerations for farmers and ranchers when making their crop insurance selection are also discussed. The Fielding Questions podcast is made possible by AgCountry Farm Credit Services and the Red River Farm Network.

Major Philosophical Differences – Agriculture has big issues on the docket in Washington. That list includes the use of farm program dollars versus conservation spending. “The administration is still pushing their 30×30 plan where they want to see 30 percent parked off over to the side into conservation initiatives,” said Jay Truitt, president, Policy Solutions. “Those things are real philosophical battles.” Other issues that will be addressed include packer ownership of animals, foreign ownership of land and crop insurance. Truitt expects all of these issues to be addressed within the context of the farm bill.

SD Corn Comments – In this week’s edition of South Dakota Corn Comments, South Dakota Corn Executive Director DaNita Murray talks about the dynamics in Congress.

Farm Bill Priorities – South Dakota Senator John Thune is focused on expanding market access in the farm bill debate. Conservation, the commodity title and crop insurance are also part of the conversation. “Making sure crop insurance is strong has been the cornerstone of all farm bills.”

WOTUS Uncertainty – The Biden administration issued a finalized Water of the U.S. rule at the end of the year. National Cattlemen’s Beef Association Chief Council Mary Thomas-Hart says there are pros and cons to the decision. “This rule gave us really helpful ag exemptions for stock ponds and drainage ditches, but the rule does leave open the possibility of finding federal jurisdiction over isolated cases.” Hart says the ruling creates uncertainty and comes at a bad time with the Supreme Court is currently considering Sackett versus EPA. “The administration’s goal was to provide a pre-2015 status quo, but it actually created a lot of regulatory uncertainty.”

Canola Minute – This week, we hear from Northern Canola Growers Association Executive Director Barry Coleman who recaps the year. Tune into this week’s Canola Minute to hear more.

Bull Pen: A Wild Year in Markets – “The big winner in 2022 was the landowner.” In the Bull Pen update, Advance Trading Risk Management Advisor Tommy Grisafi reviews the volatile financial markets and the impact on the farmer and rancher. “The big energy/inflation bubble may be over” The Bull Pen is a monthly recap of market news and can be found on RRFN’s YouTube channel.

A Market Mover – The next big market feature will be Thursday’s USDA crop report. “That’s the big one,” said Naomi Blohm, market analyst, Total Farm Marketing.  market analyst Naomi Blohm says the next big market feature will be next week’s USDA report. “That’s the final production numbers, demand numbers, quarterly stocks and winter wheat seedings so it is definitely a market mover.”

Tight World Wheat Stocks – The wheat market has had its fair share of issues this past year. North Dakota Wheat Commission Market Devlopment and Research Manager Erica Olson says the global supply and demand situation is holding up. “There are some issues with main exporting countries like the Russia and Ukraine conflict and the Argentina drought.” Argentine wheat production is estimated to be half of what it was in 2022. “Export opportunities for the U.S. and other countries might open up to help fill that gap.”

Beet Stock Values – Has American Crystal Sugar Company beet stock values peaked? “In the short term, beet stock values appeared to have peaked in November at $4,800 per share,” says Acres & Shares owner Jayson Menke. From November 3 to November 18 there were 173 shares brokered at $4,800 per share. From late November through the end of the year there were 243 shares brokered around $4,700 per share. “Right now, there are about 1,000 shares for sale through the three brokers priced between $4,650 to $5,000 per share. There certainly appears to be some downward pressure on the market.” There were no brokered sales last week.

What’s Hot, What’s Not in the Markets – In this week’s edition of What’s Hot, What’s Not in the Markets, Martinson Ag Risk Management President Randy Martinson said soybeans are the bright spot in the markets. “We continue to see issues in Argentina with dry conditions and the lack of rain.” Wheat remains bearish.

North Dakota Legislative Report – The North Dakota legislative session is underway. The appetite to do something to address animal agriculture is large. In this week’s North Dakota Legislative Report, North Dakota Corn Growers Association Executive Director Brenda Elmer says the issue was heard in Governor Doug Burgum’s State of the State Address and throughout the capitol. Here’s the weekly update.

‘One Minnesota’ Theme Reiterated – In his inaugural address, Minnesota Governor Tim Walz said gridlock is over and it is time to get things done. Walz said includes serving the needs of farmers and rural communities. “We can make sure prosperity extends across the state,” said Walz. “Let’s make sure communities all across Minneosta have equal access to healthcare, childcare, high speed internet and educational opportunities.”

Tax Conformity Prioritized – The first bill to be heard in the Minnesota House was the tax conformity bill. Minnesota has not adopted the many tax changes passed by Congress since 2018, resulting in a more complex tax return and additional compliance costs. “The tax conformity bill will be a lot of technical items that were in the tax conference committee report that was agreed upon, but not passed last year,” said House Speaker Melissa Hortman. Hortman said a bonding bill will also be completed in January. The House Agriculture Committee will meet for the first time Tuesday.

RRFN Interview: Chair Samantha Vang – Minnesota House Agriculture Committee Chair Samantha Vang plans to tackle familiar topics in this session, including beginning farmers, disaster relief, animal disease threats and grain indemnities. “The agriculture committee has always been bipartisan,” Vang told RRFN. “We are from all backgrounds and all we want to do is continue to support farmers.”   The full interview can be found online. Find more about Chair Vang at https://www.house.leg.state.mn.us/members/profile/15510.

Kiel Prepares for a Busy Session – With a historic $17 billion surplus, State Representative Deb Kiel of Crookston will be focused on lowering property taxes, ending the tax on social security benefits and increased funding for programs important to rural Minnesota. Keil said she is concerned about the lack of agriculture background among the new ag committee leadership. “I know they have experience with large gardens that are fairly profitable, however, that’s a different type of farming than what we do in rural Minnesota.”

Budget May Dominate SD Legislative Session – The South Dakota legislative session starts Tuesday. South Dakota Farmers Union lobbyist Mitch Richter expects the budget to take priority. “We still have several million dollars left over from COVID money, there’s a lot of one-time money and a lot of money that came in above the revenue estimate.” SDFU will also keep an eye on property rights. “We’re always watchful for landowner right issues like the pipeline companies and eminent domain that may come into play. We haven’t seen any bills yet.”

Addressing Weed Resistance – Weed control was a big topic during the Lake Region Extension Roundup in Devils Lake. Walsh County Extension Agent Brad Brummond says kochia is the biggest challenge in his county right now. “I have cattlemen who are starting to hay it to try and get rid of it, but you need to get rid of it before it goes to seed. These weeds are becoming more prevalent in our crop plan because they’re becoming resistant, or they have natural evasion in their characteristics.” Brummond advocated the use of a weed resistant screen to help develop an effective management plan.

Lake Region Known for Waterhemp – Benson County Extension Agent Scott Knoke is seeing waterhemp and Palmer amaranth spread across North Dakota. “Waterhemp is all over about 34 counties on the eastern half of North Dakota. Most populations are only a few plants but there are cases with quite a few more.” Knoke says the Lake Region is known for waterhemp because of the extra moisture in low areas.

Dry Bean Scene – The Lake Region Extension Roundup took place in Devils Lake this week. In this week’s Dry Bean Scene, we chat with NDSU Agronomist Hans Kandel on his session focused on dry bean production recommendations. The Dry Bean Scene is sponsored by the Northarvest Bean Growers Association.

Fertilizer Costs to Increase – NDSU Ag Finance Specialist Bryon Parman expects fertilizer prices to increase this spring. “Seasonally, we’ll probably see a little upswing, but the elevated costs aren’t due to seasonal trends, but more so with what’s going on around the globe.” Parman believes the industry is especially keen on making sure no fertilizer shortages occur this year,  resolving supply issues before planting season begins.

Soil Fertility Minute – On this week’s Soil Fertility Minute, sponsored by the Agricultural Fertilizer Research and Education Council, University of Minnesota Small Grains Specialist Jochum Wiersma provides insight on genetic markers and fertility recommendations.

Potato Innovation on Display – According to Black Gold Farms Chairman Gregg Halversen, the demand for potatoes is very strong. “Literally, the consumption of all classes of potatoes is going up.” Leah Halversen owns Ten Acre Marketing, a division of Black Gold Farms, and said potatoes can be at the center-of-the-plate. “The skies the limit on how you eat potatoes, not just fresh potatoes, but also chips, French Fries and dehy,” said Leah Halversen. “It’s really fun to to be at Potato Expo and discover all the new and innovative ways potatoes can be used from the consumer perspective.”

A Key Seed Potato Supplier – Potato Expo was a chance for Minnesota’s potato industry to show off their quality seed potatoes. “The Potato Expo has been an extraordinary event to network, interact, and meet others in the potato industry,” said Justin Dagen, who farms at Karlstad and grows seed potatoes. There are about 30 growers who are certified seed potato growers in Minnesota and 6,000 acres that grow over 70 varieties. “We provide russets, reds, yellows, and whites, so we produce seed for all aspects of the industry.”

Start the Crop Off with a Solid Foundation – AMVAC Commercial Development Manager Kyle Coleman says a disease-free potato crop starts at planting. “Any high-value crop has enough going on underground that’s significant and important, they really need a good start.” AMVAC has two formulations of fumigants, Vapam and K-PAM. “I would say three of the big diseases that metamsodium, the active ingredient, does well on is verticillium wilt, for potatoes, but also pythium, fusarium and all very important soil diseases.”

Innovative Potato Varieties – Northland Potato Growers Association Executive Director Donavon Johnson is optimistic about new potato varieties. “In 2022, we came out with Dakota Russet and got it approved through various channels,” said Johnson. “McDonald’s finally accepted that; that’s a big deal for us.” A new red potato variety and a new chip potato variety are being developed by North Dakota State University.

Seed Treatment Needed for Difficult Spring Conditions – It may be January, but a spring moisture is getting attention. “One of the things that we have on our mind is what are we going to do at planting with all this wet weather,” said Chris Clements, agronomy services manager, Syngenta. “It’s important to have a good seed treatment and our recommendation is CruiserMaxx Vibrance in potatoes.” New products are also available for the molds that will likely be seen like a phytophthora. Orondis Gold is one fungicide option.

Northland Potato Associates Re-Brand – Following the lead of the Northern Potato Growers Association re-brand to Northland Potato Growers Association, Northland Potato Associates President Gary Shields says his organization will also rebrand to Northern Potato Associates. “We’re very excited to promote the new brand and our potatoes.” While Northland Potato Associates mission has not changed with the re-brand, Shield would like to grow the organization to enable more potato research. “At the International Crop Expo, we’ll be officially launching our brand”

ROI with Biologicals – AMVAC Commercial Product Manager Micah Scanga say biological tools are being utilized to combat crop disease. “We’ve made an investment into different types of biologicals to fit into the existing portfolio of chemistries.” Scanga says biologicals and fumigants work well together for potato growers. “We’ve seen that these types of products are really additive in nature and help provide a return on investment.”

Improvements Seen in the Supply Chain – The supply chain situation is improving and manufacturers are finding ways to mitigate any product shortages. “Supply is always going to be one of our big issues in agriculture,” said Marsha Van Laere, Northern Plains sales representative, Gowan USA. “Our supply has been decent; we encourage the growers to talk to their retailers sooner rather than later about securing the supply they think they are going to need though.” Weed control is one issue potato growers are facing as they head into 2023. “We have an oldie, but a goodie with Eptam that you can use throughout the growing season for control of your pigweed species, some grass species, nightshade and we expanded our Sonalan HFP label and now we have that label for potatoes up and down the Red River Valley.”

Ag Economy Challenged by Macro Conditions – Speaking at Potato Expo, Rabobank Global Strategist Stephen Nicholson said agriculture is suddenly getting much more complicated. “We’ve got complicated markets, but you have these macro economic things that are coming in,” said Nicholson. “I look at the money supply situation and realize it is no wonder inflation is where it is with so much money in the system; you have the classic situation of more buyers than sellers.” Higher interest rates will likely be a reality for some time.

MN Beef Update – Minnesota State Cattlemen’s Association Executive Director Kaitlyn Root discusses the MSCA’s priorities for 2023 in the latest Minnesota Beef Update.

Expanding Meat Processing Capacity – USDA is providing new funding for the expansion of meat processing capacity. Sixteen states are receiving this money. That list does not include the Dakotas or Minnesota. Agriculture Secretary Tom Vilsack said this effort will make agricultural markets more accessible, fair and competitive.

Small Meatpackers Receive Additional Grants – The Biden administration announced it’s awarding an additional $9.6 million in grants and loans to expand meat processing across the country. U.S. Secretary of Ag Tom Vilsack said in a press conference that the programs aim to create “additional market opportunities that will hopefully create more income for farmers.” Vilsack also said additional money could become available for expanding meat processing later in 2023.

Feed Costs are Stealing Profits – Rugby Livestock owner Cliff Mattson says demand for feeder calves should pick up now that we’re past the holidays and recent winter weather. “A lot of those feedlots down south have gotten hammered with snow.” Mattson is disappointed prices aren’t better. “We’re looking at $100 a calf or better than what we got a year ago, but supplementing corn or grain is expensive so that’s cutting into profits more than I’d like to see.”

Used Equipment Market is ‘Hot’ – The Lake Region Extension Roundup featured a session on land and equipment prices. Steffes Group President Scott Steffes was featured and said the used machinery market is hot. “If you can afford it, you should buy it because the wait times are so long. I think we’ll see another season of used prices through the roof.” Steffes expects farm machinery lots to remain bare until the supply chain can catch up with demand. If commodity prices can’t keep up, Steffes said rising interest rates could cut into farmland values.

Supply Chain Improvement – Inflation is causing farm equipment prices to increase, but the rate of change has slowed. “Energy is really impacting price increases,” said Daryl Theis, head of sales and marketing, CLAAS America. “It does seem to be peaking and some machinery prices are starting to drop so it could start to come down in the next few months.” Theis says shipping times for equipment has improved. “Pre-pandemic, it took us about four weeks to get a container from Europe to the U.S. Eight months ago, it took us 12 weeks, and now we’re back down to eight weeks.” Some products are still difficult to acquire like rubber tracks and transmission components.

Corn Matters – Nitrogen Smart Programs are quickly approaching. Hear more from University of Minnesota Extension Educator Brad Carlson in the latest Corn Matters.

NCI to Host Cereal Innovators Webinar – The Northern Crops Institute is hosting a Cereal Innovators webinar on Wednesday at 9 AM. General Mills Principle Scientist Kevin Miller will be featured. Miller will discuss increasing whole grains, the risk of Diabetes and the economic consequences of not taking action. The interactive webinar will focus on new and unique ways to use cereal grains. Register online.

Two Barley Varieties Added to AMBA List – The American Malting Barley Association has released its list of recommended malting barley varieties for the upcoming year. The additions to the list include CDC Fraser and KWS Donau. Varieties excluded from the list are Pinnacle and Charles, two varieties that have seen a significant reduction in acres in recent years.

Vaccine Approved by Honeybee Disease – USDA has approved a conditional license for the vaccination of honeybees against American Foulbrood Disease. A biotech company, Dalan Animal Health, developed this vaccine which contains a killed whole-cell bacteria and mixed into the queen feed that is consumed by worker bees. The only treatment for American Foulbrood Disease has been to burn the hive and beekeeping equipment. North Dakota is ranked as the top honey-producing state in the country.

A Record Year for FNC – Farmers National Company finished 2022 with record land sales volume of $766 million. That’s up from $750 million in the previous record year of 2021. The majority of those sales came through competitive land auctions.

Deere Returns to Consumer Electronics Show – John Deere was back at the Consumer Electronics Show in Las Vegas this past week. New planting technology called ExactShot was introduced. This technology allows farmers to reduce the amount of starter fertilizer by more than 60 percent. It uses sensors and robotics to place the starter precisely on the seeds as they are being planted, rather than applying a continuous flow of fertilizer down the entire row. A year ago, Deere introduced its fully autonomous tractor at this show.

Unions Vote Down CNH Labor Contract – Two local unions at CNH Industrial factories in Wisconsin and Iowa have rejected a tentative labor contract. The four-year contract proposal included wage increases of 25-to-38 percent. A strike has been underway at the farm and construction manufacturing plants since May.

Foster Farms-Union Pacific Dispute – One of the country’s largest chicken processors is asking the government to address an ongoing rail service issue with Union Pacific. Rail shipments are not making it to the Foster Farms’ facilities in California on a timely basis. The company claims millions of birds are in danger of not being fed due to the UP service problems. The Union Pacific is blaming the weather for the delays.

Job Opportunities in Agriculture – Click on the Job Opportunities in Agriculture tab on the Red River Farm Network website. Companies looking for high quality additions to their staff include Anheuser-Busch, Pioneer and True North Equipment. The Red River Farm Network promotes job opportunities online, on-air and in social media. For an effective way to reach prospective employees, contact don@rrfn.com.or kolleen@rrfn.com.

Barnes County, ND Wind Farm Sold to Otter Tail Power – Otter Tail Power Company has closed on its purchase of the Ashtabula III Wind Energy Center. This 39-turbine site began operation in 2010. In 2013, Otter Tail Power began purchasing electricity from the wind farm through a purchased power agreement.

MN Wheat Minute – Cover crop meetings are in the works. Minnesota Association of Wheat Growers On-Farm Research Coordinator Melissa Carlson has the details in this week’s Minnesota Wheat Minute.

MCIA to Meet in Fergus Falls – The Minnesota Crop Improvement Association is one of the leading state agencies of its kind. “In many years, we are either number two or the number three in certified acres,” said Fawad Shah, president/CEO, MCIA. “North Dakota has more acres than Minnesota with respect to certified seed production. Between North Dakota, Oregon, and Minnesota, we are generall ranked second or third.” Last year’s wet spring cut into the number of certified seed acres in Minnesota. “There was delays in planting and such so it took away some of the small grain acres. in some areas, it was a little too late to plant.” After two years of virtual meetings, the Minnesota Crop Improvement Association is back with a face-to-face annual meeting. That will be held Thursday in Fergus Falls.

Lunneborg Promoted – Nick Lunneborg has been promoted to deputy chief of staff for Minnesota Representative Michelle Fischbach. Lunneborg previously was Fischbach’s legislative director. Before that, Lunneborg worked on Representative Tom Emmer’s agricultural issues.

No Reelection Bid for Stabenow – Senate Agriculture Committee Chair Debbie Stabenow does not plan to run for reelection in 2024. The Michigan lawmaker said she will be to help guide passage of the next farm bill. Stabenow chaired the ag committee from 2011-to-2015 and took over the job again in 2021.

MN Native Moves to Finstad Staff – John Altendorf has joined the staff of Minnesota Representative Brad Finstad as a legislative assistant with a focus on agriculture. Previously, Altendorf worked for North Dakota Senator John Hoeven.

Fuess Named Senior Dairy Analyst – Lucas Fuess has joined the RaboResearch Food and Agribusiness team as a dairy industry research analyst and economist. Previously, Fuess was the director of Dairy Market Intelligence at HighGround Dairy.

Weed Control Partner Award Announced – North Dakota Agriculture Commissioner Doug Goehring named Jim Hennessy as the recipient of the 2023 Weed Control Partner Award. Hennessy currently serves as the president of the North Dakota Weed Control Association and has been a Mountrail County weed officer and ag agent for 27 years.

Aakre Takes Over Leadership of CASE – Carl Aakre of Perham, Minnesota has been promoted to the directorship of the Curriculum for Agricultural Science Education. Aakre started his career as an agriculture education instructor in 2001.

Mistic Moves to MN Farm Bureau – Kayla Mistic is the new membership and marketing specialist for the Minnesota Farm Bureau Federation in northwest Minnesota. For the past four years, Mistic has been an University of Minnesota Extension Educator in Clearwater County.

AFBF Honors Moore – Former American Farm Bureau Federation Executive Vice President Dale Moore was presented the group’s Distinguished Service Award. Moore served in that role from 2018-to-2022. Moore was chief of staff for four agriculture secretaries and was the staff of former Kansas Senator Pat Roberts.

Farm Bureau Honors Coming Back to the Region – At the American Farm Bureau Annual Convention in San Juan, Puerto Rico, Minnesota Farm Bureau received the New Horizon Award for their interactive ag literacy building at the Minnesota State Fair. Minnesota was one of only six states receiving this honor. Minnesotan Brad Hennen was a semifinalist in the Ag Innovation Challenge with his Hennen Pig Chute invention. Kristy Miron of Hugo, Minnesota is the runner-up for the Excellence in Agriculture award. winning $25,000 toward new CASE IH equipment. Jay and Sarah Meyers of South Dakota also participated in the Excellence in Agriculture Young Farmer and Rancher competition. For the discussion meet, Billy Ogdahl represented North Dakota and Jeff Pagel represented Minnesota.