A Weekly Update from the Red River Farm Network
Monday, June 01, 2020
Boots on the Ground- The aftermath of the 2019 harvest season and a wet spring will combine to bump up prevent plant acres across the region. The Red River Farm Network is partnering with Advance Marketing’s Tommy Grisafi to travel across North Dakota this week to gain perspective on those PP acres. This Boots on the Ground effort will provide information on-air, online and in social media to highlight crop conditions. Following along with #BOOTS20.
Trade Tension – Due to rising tensions between the two countries, China is reportedly suspending some purchases of U.S. farm products. The latest disagreement came after President Trump criticized China for assuming control of Hong Kong. “We will take action to revoke Hong Kong’s preferential treatment as a separate customs and travel territory from China,” said Trump. “Our actions will be strong; our actions will be meaningful.” Bloomberg News is reporting the Chinese government has ordered state-owned agricultural companies, COFCO and Sinograin, to suspend purchases of specific U.S. farm products. Soybeans and pork are being mentioned as one of those commodities that will be impacted. This clash is happening during the early stages of the phase one trade agreement between the U.S. and China.
Coronavirus Food Assistance Program Sign-Up Open – Farmers and ranchers with an agriculture commodity suffering a five percent or greater price decline due to COVID-19 are eligible for the direct payments in the Coronavirus Food Assistance Program. For livestock producers, payments will be made based on sales and inventory. “There’s a single CFAP payment based on the sum of two components,” said Ron Haugen, farm management specialist, NDSU Extension. “There’s a payment for livestock marketed between January 15 and April 15 and there’s a payment for the highest inventory of the unpriced livestock between April 16 and May 14.” Livestock producers will need to provide documentation of sales and inventory. When it comes to documenting inventory, NDSU Extension Livestock Economist Tim Petry recommended farmers ask their local Farm Service Agency office what they prefer. “The rule says farmers are generally self-certified now, but you might have to provide supporting documentation,” said Petry. “Examples include evidence like copies of receipts, ledgers and veterinary records.” Farmers will need to call ahead to their local FSA office begin the sign-up process. Sign-up is open through August.
Rural Perspectives – Some of the specifics of the Coronavirus Food Assistance Program are still being sorted through. AgCountry Farm Credit Services market education specialist Katie Tangen says one question revolves around the sale of grain. Another question many farmers in parts of the Dakotas and Minnesota have relates to unharvested acres from 2019. Listen to the full conversation in the latest Rural Perspectives podcast from AgCountry FCS.
More Clarity Provided on the CFAP Payments – North Dakota Senator John Hoeven hosted a call with local farm groups to get feedback on the Coronavirus Food Assistance Program direct payments last week. In the discussion, North Dakota Soybean Growers Association president Joe Ericson asked North Dakota Farm Service Agency State Executive Director Brad Thykeson for clarification on how unharvested acres would be handled for inventory. “As far as your 50 percent production, I would delay your application, get that corn harvested and apply with those bushels as your production,” said Thykeson. “It is eligible.” More funding will be needed for the program. “There’s a few different funding options we’re pursuing that would go toward the later losses after quarter one,” explained Hoeven. “In the HEROES Act, there are some things we could work with and the most immediate is if we can get $30 billion in appropriations going right away in June. I’m also pushing to get quality loss adjustments for the WHIP+ program.”
Sunflower Growers Eligible for Coronavirus Assistance – Enrollment is open for the Coronavirus Food Assistance Program through USDA. National Sunflower Association Executive Director John Sandbakken says sunflower growers can reap the benefits of the program. “With the CFAP, there is a $2 per hundredweight payment. The CCC payment is also a $2 payment for sunflowers,” says Sandbakken. “When you combine the two there is about $4 per hundredweight payment, which is nice to see. Hopefully producers will signup and take advantage of this.” Signup for the program remains open through August 28. Hear more form Sandbakken about CFAP, sunflower planting progress and more in this RRFN interview.
MN Corn Matters – There is coronavirus assistance available for corn growers through USDA. Find out more from Minnesota Corn Growers Association Past President Brian Thalmann in Corn Matters.
Local Potato Industry Says CFAP Doesn’t Offer Much Help – Northern Plains Potato Growers Association President Donavon Johnson says the new Coronavirus Food Assistance Program doesn’t offer much assistance for potato growers. At issue is the three eligibility categories. “When we look at CFAP, there are three categories in which farmers must experience a loss. Potatoes don’t qualify for the first category,” explains Johnson. “We don’t understand that. We’ve been trying to work with the USDA to understand why. Potatoes should qualify on the seed and process side for the first category.” Johnson says there’s confusion on the remaining two categories as well. Ultimately, he says the program may not be relevant for potato growers. The North Dakota Farm Service Agency is looking into more guidance for the potato industry. When it comes to the USDA’s potato purchases, Johnson says it is having some impact for the U.S. potato industry. “However, we have identified 1.5 billion pounds of potatoes that don’t have a home. That includes process, fresh and seed potatoes from last year.”
Bison Industry Continues to Seek COVID-19 Related Assistance – Several agriculture-related industries, including bison producers, asked and did not received aid from the most recent U.S. economic relief bill. Over the past six weeks, carcass prices for bison have declined rapidly since the coronavirus pandemic hit. National Bison Association Executive Director Dave Carter says there are a lot of ripple effects going through the business right now. “More than 85 percent of the high value cuts are sold in restaurants, whereas the retail channel has primarily been a market for ground bison,” says Carter. “That’s a hard impact on marketers when all of a sudden you’re taking a tenderloin that wholesales for $20 a pound and having the choice to either put it in the freezer or turning in to ground meat at a much cheaper price. Folks finishing bison are also facing challenges, particularly with the ethanol industry and distillers grains.” USDA encourages ineligible producers who’ve suffered a fiver percent or greater price decline from January to April 2020 to submit comments. Eight senators, including those from North Dakota, South Dakota and Minnesota, have also urged USDA for assistance for bison producers. Listen to the full RRFN story here.
Canola Minute – Assistance canola growers is included in the latest CARES Act. Learn more from Northern Canola Growers Association Executive Director Barry Coleman in the Canola Minute.
A Few Limitations for Cattle Producers in CFAP – North Dakota Stockmen’s Association Executive Director Julie Ellingson said while the Coronavirus Food Assistance Program is a step in the right direction, there are limitations to the program for cattle producers. “The April 15 date is what’s catching many of our producers, making them fall outside of the gap. A few scenarios were alluded to including feeder cattle that hadn’t been sold at that time or sold after that period or feeders who sought a bid and couldn’t get a bid due to packing capacity limitations,” said Ellingson. “That’s the area that needs the most emphasis as we look at supplementary funding in a second round. We need to be looking at later, second quarter tier payments, which right now is at that flat $33 per head payment.”
MFBF Update – Enrollment is now open for the Coronavrius Food Assistance Program. Learn more from Minnesota Farm Bureau Federation President Kevin Paap in the latest MFBF Update.
Crop Watch – Rain and wet fields delayed some planting progress in the Badger, Minnesota area last week. Farmer Shayne Isane has been able to plant spring wheat, soybeans and a portion of this year’s corn crop. However, last year’s corn ground is proving to be challenging. “We are running into wet ground and we could be close to the end,” said Isane. “It is what it is and the crops that went in look ok, but it’s been a struggle to find dry ground toward the end.” It’s a similar situation near Ada, Minnesota. Farmer John Brainard was hoping to get everything planted, but last fall’s unharvested sugarbeet ground was still wet. “We’re trying to be patient.” South of Valley City, North Dakota, Monte Peterson had a tough time getting corn planted and soybeans aren’t getting in much easier. “I managed to get in a few partial fields and switched to soybeans. We’ve got a start with the soybeans and we’ll keep working at it. It sure hasn’t come around quickly.” In parts of northeastern South Dakota planting is slow. Houghton farmer Troy Knecht described fields as unusually wet. “The high water table has really affected us,” said Knecht. “We did get our corn planted, but haven’t made too much progress on soybeans.” Listen to the segment.
A Change in Planting Plans – In the Hope, North Dakota area, farmer Josh Ihry was able to start planting this year’s crop in mid-May. While Ihry did get spring wheat seeded and corn planted, the fields fit to plant were very selective. “We probably only got about 15-to-20 percent of our intended corn acres planted, but fortunate to get all of our wheat acres seeded.” Ihry was finally able to wrap up harvesting the 2019 corn crop three days ago. Those late-harvested acres are posing challenges with getting the remainder of this year’s crop planted. “I think you’re going to see anywhere from 25-to-35 percent prevent plant in our area. If we get any additional moisture between now and then that number could grow to 50 percent or more for some farmers.” Listen to the interview with Ihry here.
Pioneer Agronomy Update – The Pioneer Revolution Plot at Gwinner, North Dakota is evaluating soybean planting dates. Soybeans went into the ground May 1st and 15th. Another round will be planted June 1. Pioneer field agronomist J.J. Jaehning says a case can be made for planting soybeans before corn. “We’ve learned a lot in the last few years about how hardy soybeans are, especially in regard to frost,” said Jaehnning. “The soybean plants have that thick, fleshy cotyledon which is stronger in tolerance to frost than corn would be. There’s a lot of early planted beans that look phenomenal this year.” Jaehnning is featured in the latest edition of the Pioneer Agronomy Update.
A Different Kind of Spring in the Red River Valley – It’s been a very different spring in the Red River Valley. “You can go by one field and someone is planting corn and in the next field, someone is combing corn,” said Paul Coppin, CEO, Valley United Cooperative. There will be prevent plant corn in the Reynolds, North Dakota area. Coppin estimates the area lost about 50 percent of the potential corn acres because of the wet conditions and unharvested acres. However, the last few days have been good for planting progress. “I think they can pretty much get everything in they intended to. There’s not much rain in the forecast until Thursday. The sugarbeets and wheat are planted. Farmers are working on dry beans and soybeans. Even though we got a slower start, it’s been an ok run the last two weeks.”
A Slow Start to Spring Fieldwork – Monte Peterson has had a tough time getting corn in the ground; soybean planting isn’t much better. “We kind of gave up hope on the corn,” Peterson told RRFN. Peterson, who farms in the Valley City, North Dakota area, is planting soybeans. “We’ve got a start, but there’s a long way to go. Every week that goes by things are getting better, but things aren’t happening quickly.”
Dry Bean Scene – The 2020 dry edible bean crop is starting to go in the ground in the northern Red River Valley. Hear more about the crop and field conditions from Crookston, Minnesota farmer Eric Samuelson in the Dry Bean Scene, made possible by the Northarvest Bean Growers Association.
Some Prevent Plant Expected Near Rugby, ND – Bayer Crop Science Technical Sales Representative Carter Medalen says corn planting is mostly wrapped up in the Rugby, North Dakota area. “That Highway 2 corridor has shifted to soybean seeding. I think there will be sunflowers going in here or there and corn, for the most part, is done,” he says. “We lost some acres based on the late spring and ethanol pricing.” North central North Dakota is still seeding some spring wheat. “The middle tier is getting closer to the end of wheat seeding. Near Rolla, that area just broke loose toward the end of May. Any more weather delays could trigger more prevent plant.” Hear the story.
Watch for Weed Escapes – There’s a breakdown of pre-emerge herbicides this spring, allowing pigweeds to flourish. It is unknown why the chemicals did not activate properly. “One good indicator of activation is the nurse crops. I’ve walked some fields where we should have done some damage to them,” said Tom Peters, sugarbeet agronomist, University of Minnesota and NDSU Extension. “If they’re healthy, I guess we can kind of figure out why we’re starting to see some waterhemp.” Peters says the next step is to manage the escapes. “We don’t want them to grow, but with the warm temperatures, they will grow. We’ll figure out what happened later on.”
Be Alert for Cutworm Damage – As soil temps warm up, the newly emerged crops are susceptible to cutworms. North Dakota State University Extension Entomologist Jan Knodel is advising farmers to routinely scout fields for cutworm feeding injury. “You may see cut plants or defoliation.” Treatment thresholds vary by crop. “They’re easier to kill when they’re small. You may want to go with a mid-to-high labeled rate for the insecticides for effective control.”
The Sugarbeet Report – This year’s sugarbeet crop is starting to emerge in most areas. Get the details in the latest Sugarbeet Report, made possible by Provysol from BASF, Premium Ag Solutions, Corteva Agriscience, SESVanderHave, Vive Crop Protection, H&S Manufacturing and Syngenta.
Spring Wheat Planting and Emergence Vary in Northern Plains – Cool, wet conditions have delayed some spring wheat planting progress and emergence across the Northern Plains. In the central part of North Dakota, farmers may not get as much seeded. In Minnesota, farmers still have a few more acres to seed, mostly in the northern part of the state. “I think most of the wheat acres will get in, but it’s not all going to get done near East Grand Forks. There will likely be some prevent plant,” said Charlie Vogel, executive director, Minnesota Wheat. “When this all shakes out, I think we’ll be close to the 2019 numbers as far as acres produced.” South Dakota is mostly wrapped up with spring wheat planting. South Dakota Wheat Commission Executive Director Reid Christopherson is pleasantly surprised at what was planted. “It will be interesting to see the final acreage and emergence looks ok. We already got more seeded than I expected.”
What’s Hot, What’s Not in the Markets – In this week’s edition of What’s Hot, What’s Not in the Markets, Advance Trading Risk Management Advisor Tommy Grisafi highlights the stock markets, weather and U.S.-China relations.
Soybean Group Wants GMO Issues Addressed in UK Trade Talks – Northern Soy Marketing has sent a letter to the U.S. Trade Representative’s Office, seeking the elimination of non-science based trade barriers in the United Kingdom. This group, which represents soybean farmers in North Dakota, Minnesota and South Dakota, cites England’s zero-tolerance for biotech soybeans and mandatory labeling for biotech food ingredients. Northern Soy Marketing wants these issues addressed in the trade negotiations with the United Kingdom.
Positive Move in the Weekly Ethanol Numbers – The weekly ethanol production numbers showed a slight gain. According to Van Ahn and Company market analyst Kristi Van Ahn, that is a hopeful sign. “If plants were only shut down for one month or a month and a half, that would make me hopeful the USDA cut too much ethanol. If plants can call this their maintenance period and come back and grind the rest of the year, that’s going to be really good.” Van Ahn says there are still many unknowns about ethanol demand. “All of these things are nice to see, but let’s not forget we’re stacked in a narrow range. We’re not where we need to be, but we’re seeing some positive action across the board.”
Seeking Stability in Volatile Times – Class III milk prices have improved since the start of the coronavirus pandemic. However, Rabobank Global Dairy Strategist Mary Ledman would not call it a recovery. With so much volatility, Ledman encourages farmers to find stability within the business. “What was the weakest link in your business? Look at where the volatility came in your system and what can be done to reduce that volatility or risk.”
Pork Industry Trying to Find the Positives in a Negative Situation – It’s easy to get caught up in the negativity surrounding the COVID-19 pandemic. Despite these tough times in agriculture, fourth-generation hog producer Kevin Hugoson from Granada, Minnesota is trying to find the positives. “One blessing in our family is both our daughter and son have come back to be involved in the pig operation. That is probably one of greatest joys and privileges you can have as a farmer,” he says. “But, this COVID-19 is another beast we’ve never experienced.” Hugoson goes on to say there are a lot of tough decisions being made by pig farmers in recent months. The financial and emotional choices are the most difficult. “All of unknowns really take a toll on a person.” Hear the full story with Hugoson.
Ag Finance Bill Signed into Law – Minnesota Governor Tim Walz has signed the supplemental ag finance bill. It includes funding for farm safety and mental health. There are grants for meat processors effected by COVID-19 and money for the University of Minnesota Veterinary Diagnostic Lab to prepare for foreign animal diseases, like African Swine Fever.
Deadline Extended for ND Loan Program – The North Dakota Industrial Commission has extended enrollment in the Ag Disaster Relief Loan Program until the end of September. The original sunset date was June 30. This Bank of North Dakota program covers operating loan shortfalls, term debt payments and restructures existing debt. Since the program began in January, 218 loans have been approved for $109 million.
The 91st ND FFA Convention Begins Today – The 91st North Dakota FFA Convention begins today. With the COVID-19 pandemic, it’s no surprise that this year’s convention is a little unconventional. “This will be the first ever time we deliver our retiring addresses online. That will be really cool,” said Ben Van Berkom, president, North Dakota FFA. “There are all kinds of events to be posted throughout the week, including our main general sessions and at the end of the week, we’ll name the new state officer team.” Van Berkom said it’s been a good, interesting year of service. “I look at this year as a whole and a part of me wants to be sad in the sense we didn’t get a typical end to the year, but another part of me wants to get excited to see this come to fruition. It’s a mix of feelings.” Daily sessions will be streamed on the North Dakota FFA Association’s Facebook page and YouTube channel. The convention concludes on Thursday.
Canola Traders Monitor Meng Wanzhou Court Case – A Vancouver court case has implications for trade relations between the U.S., Canada and China. The judge has ruled the extradition case of Huawei executive Meng Wanzhou will continue. Meng was detained over a year ago by Canadian authorities at the request of the United States, where she faces allegations of racketeering and conspiracy to steal trade secrets. After that arrest, China canceled the export licenses of Viterra and Richardson. Canola prices took a hit at that time and analysts indicate the latest court decision could have additional consequences for Canadian canola exports.
Grants Awarded in Prairie Pothole Region – The Migratory Bird Conservation Commission has approved $22 million to conserve or restore more than 160,000 acres of wetlands and habitat. Multi-million dollar grants will target the Prairie Pothole Region in North Dakota, Minnesota and South Dakota. Land will be set aside through perpetual easements. Management practices will also be implemented to improve soil health and nesting habitat for waterfowl and other birds.
Titan Machinery Reports 1Q Income – West Fargo-based Titan Machinery reports first quarter revenues of $310 million. That compares to $278 million in the same quarter last year. Equipment and parts sales were up over last year. Revenues in the agriculture segment were up nearly 26 percent driven primarily by strength in equipment sales.
SD Corn Comments – Did you know South Dakota is home to about 170 dairy farms? Learn more about National Dairy Month in latest Corn Comments program, a production of South Dakota Corn Utilization Council.
SDFU Considering Beef Plant Investment – The South Dakota Farmers Union is working with potential investors to make an offer to purchase the DemKota beef packing plant in Aberdeen. The plant is currently owned by California-based White Oak Global Advisors. The plant started to process animals in 2015 and slaughters more than 1,000 cows each day. There is an increased demand for meat processing at local lockers and small processing facilities, following the closure of meat packing plants and a bottleneck of livestock in the state. Potential investors could see this as an opportunity to create more options.
A New Beef Processing Facility in Fort Pierre, SD – In Fort Pierre, South Dakota, a new beef packing plant is opening. The processing facility is owned by U.S. Beef Producers. Continental Marketing owner Kim Ulmer said the last few weeks have been busy with processing. “We’ve processed about 22 head so far with the South Dakota status of not for sale custom kill. That means we can be like a local locker plant and you can bring it in where we process it; that’s the first step towards getting USDA certified.” The investors set a goal to turn out USDA-inspected beef by the end of May. As of last week, the plant is still waiting for that stamp of approval. Once the plant is running well, Ulmer said they may add a second processing site in the eastern side of the state near Huron.
HyLife Takes Majority Interest in Prime Pork – Canada-based HyLife has purchased 75 percent equity interest of Prime Pork of Windom, Minnesota. The Taylor Corporation launched Prime Pork in 2016. Glen Taylor, who leads the Taylor Corporation, also owns the Minneapolis Star-Tribune and the Minnesota Timberwolves. This Windom plant processes 1.2 million hogs per year.
PlantPlus Foods: New Joint Venture Launched – ADM has a new joint venture with a Brazilian food processing company to market meat alternative products in North America and South America. Marfrig is one of the world’s largest beef producers and will have a 70 percent ownership stake in this joint venture.
Transitioning to New Leadership for WTO Ag Negotiations – The head of the agriculture negotiations at the World Trade Organization will be stepping down at the end of June. Guyana Ambassador John Deep Ford was scheduled to chair the ag trade talks at the ministerial conference in Kazakhstan next month. With the postponement of that event for another year, Ford said it was an appropriate time to transition to a new chair.
MN Beef Update – Meet Comfy, Minnesota rancher Jeri Hanson, who serves the south central part of the state on the Minnesota Beef Council board of directors. Learn more about Hanson in the latest MN Beef Update.
Wise Takes New Role at IATP – Tom Wise is a new senior advisor for the Institute for Agriculture and Trade Policy. Wise will concentrate of fair and sustainable food systems. Wise is a senior research fellow at Tufts University. The IATP is based in Minneapolis, but Wise will continue to work from Massachusetts and keep his position at Tufts.
CFTC Announces Career Moves – The Commodity Futures Trading Commission has appointed Christa Lachenmayr to be the first CFTC liaison to USDA. Lachenmayr is a senior economist at the CFTC. The CFTC has also hired Darryl Blakey as the associate director in the Office of Legislative and Intergovernmental Affairs. Blakey previously worked for the National Cattlemen’s Beef Association and the House Agriculture Committee.
Agtegra Names New Senior VP of Agronomy – Daryl Molskness is the new senior vice president of agronomy at Agtegra Cooperative. Molskness has been a regional business director with Bayer CropScience. Agtegra serves farmers in South Dakota and North Dakota. Molskness is a South Dakota native.
Ag Innovation Campus Hires Project Manager – Jim Lambert has been named the project manager at the Ag Innovation Campus at Crookston. Lambert is the point person for the regional crush and biodiesel facility that is being developed. Lambert has worked for POET and SunOpta.
Media Professionals Honored with ISU Alumni Award – The Iowa State University School of Journalism and Communication has presented Shannon Latham with the Greenlee Professional Achievement Award. Latham is a co-owner and vice president of Latham Hi-Tech Seeds. The Greenlee Young Alumni Award went to Kacey Birchmier, who is the media relations manager at Corteva Agriscience.
Richert Joins MN State FFA Officer Team – There has been a change in the Minnesota State FFA officer team. Noah Richert of Springfield is the new state secretary. Due to an unforeseen conflict, Mackenzie Craig of Alexandria chose to resign.
Wardner Begins June With a New Role at NDBC – Nicole Wardner is the new marketing and industry specialist for the North Dakota Beef Commission. Wardner previously worked for NDSU Extension-Sheridan County and the Red River Farm Network.
Last Week’s Trivia – An octagon has eight sides. Retired North Dakota Farmers Union economist Dale Enerson wins our weekly trivia challenge. Dennis Sabel of Minnesota Farm Bureau, retired controller Evonne Wold, Sara O’Toole of O’Toole Seed and Anna Kemmer of Southeast Region Career and Technology Center earn runner-up honors. Top honors also go to Ron Dvergsten of Northland Farm Business Management, Harvey farmer Bill Ongstad, Twyla Wulf of Clear Springs Cattle Company, Westbrook farmer Dave Van Loh, Carver County feedlot officer Alan Langseth, Curtis Noll of Noll’s Dairy Farm, Keith Bjorneby of Lone Wolf Farms, Jim Altringer of CHS Dakota Plains Ag and Kevin Praska of Stone’s Mobile Radio.
This Week’s Trivia – How old does someone have to be to be president of the United States? Send your answer to don@rrfn.com.
Contact RRFN | Don Wick (701) 795-1315 |
Randy Koenen (701) 795-1315 |
Whitney Pittman (701) 795-1315 |
Tyler Donaldson 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.