Pesticide Approval Process Gets a Closer Look at EPA – Addressing the National Potato Council, EPA Agriculture Advisor Rod Snyder said pesticide issues take up the majority of his time. The agency is taking a different approach as it considers the Endangered Species Act while approving pesticide ingredients. “Maybe it’s not top-of-mind for growers each day, but it has big implications for the industry,” said Snyder. “Over the past 15 years, a number of lawsuits have been filed saying the agency hasn’t been complying with the ESA as we review pesticide registrations. In January, we issued a new policy that for new, active ingredients we need to be doing these ESA reviews up front and assess the impacts right away.” The EPA is also working on a long-term plan to bring existing products into compliance. Snyder spoke with the Red River Farm Network about chlorpyrifos, the Renewable Fuel Standard and Waters of the United States. Hear the full interview.

Wheat Prices Trade Limit Up – Extraordinary geopolitical events bring extraordinary prices. Summit Commodities market analyst Tim Marsh says it’s hard to know how long gyrations in the wheat market will last. “When the market decides something’s been determined in Russia and Ukraine, the market will likely go down every bit as fast or faster than it went up. If you wait until the highs are in, you miss out.” Marsh says traders are in the mindset that this geopolitical market rally is similar to a drought rally. “With shipments stopping from the Russia and Ukraine’s ports, the markets assume we’ve lost supply, like a drought rally. In this situation, I think the market will remain firm until there’s some kind of a winner determined.”

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 says the wheat market is the big story in the markets. Due to the conflict in Ukraine, the closure of Black Sea ports and a poor winter wheat crop in the U.S. Southern Plains, the market is dealing with expanded limits. On the other side of the ledger, livestock markets are being “beat up” by the increase in feed costs and inflationary concerns.

Memories of 2008 – The Arthur Companies grain merchandiser Jenna Knutson says the higher wheat prices bring a sense of déjà vu, reminding many of 2008. “At that time, we saw wheat prices go to $18 or $20. Farmers watched it go up and move right back down. There’s fear and the big question is what’s actually happening in Ukraine. Is it as bad as we expect? There’s a lot of uncertainty.” Knutson says there’s been a lot of farmers selling with prices moving limit up. “It’s important for farmers to get their orders in, talk about the prices they want to see. In the long-term, this could get wild. Ukraine’s planting season is just like ours and if this continues, it may get crazy.”

Loss of Black Sea Trade Impacts the Rest of the World – Ports in the Black Sea Region are shut down and are expected to stay that way for at least the next two to three months. U.S. Wheat Associates President Vince Peterson says it’s hard to judge the full extent of the closure of the ports. “The questions will be in what’s the cadence, fashion, logistics and price impacts? You’re seeing that manifest in the marketplace right now in ocean freight shipping markets and wheat futures are locked limit up.” The mission of the U.S. Wheat Associates is to protect the supply and profitability of U.S. wheat for customers. Peterson says that spans beyond trade. “These are businesses, governments and people responsible to feed their countries. There will be countries that require food aid. There’s no doubt it’s going to increase export trade in the other origins in the foreseeable future, but we don’t know how long it will last.”

Soybean Acres May Shift to Corn and HRSW – No one knows when the Russian and Ukrainian export markets will come back online. Bolt Marketing market analyst DuWayne Bosse says that uncertainty is hanging over this market. “They have corn that still needs to be shipped that’s kind of trapped and much of that corn is earmarked for China. To me, it’s a corn market that really could still lead this thing higher.” Bosse, who was in Grand Forks for a taping of the U.S. Farm Report market roundtable, said either soybean, corn or spring wheat acres will come up short on acres. “I think it might actually be soybeans even with the fertilizer supply being thin. I’m hearing from guys in southern Minnesota thinking corn on corn because they like $6 corn. Here in North Dakota where we had the massive drought last year, there’s a good chance that if you can get that spring wheat planted and get a couple rains, you’ll get a crop. In the end I think it might be soybeans that get shorted.”

The Bull Pen: Farmers Must Be Able to Participate in This Volatile Market – Commodity markets are having a powerful reaction to Russia’s invasion of Ukraine. World leaders warned about this conflict, but the markets were caught flatfooted when it happened. Advance Trading Risk Management Advisor Tommy Grisafi said really smart people didn’t know this was going to happen. “Folks were out of position and I think you’ll hear a couple big ag names in the next few weeks announce that they have a pretty big financial problem with prices escalating this quickly.” In the Red River Farm Network video podcast called the Bull Pen, Grisafi said farmers should be able to participate in a volatile market. “Get an options and futures account and execute trades yourself; it’s not 1970 and you don’t need to wait for the elevator guy to wake up and take your order,” said Grisafi. “It’s 2022, Russia invades Ukraine and we’re all walking around with $1,000 smartphones so let’s be smart and start using them.” Farmers can also have a broker or leave orders at the elevator, but Grisafi said the markets are not going to wait for everyone to wake up and discover prices. The Bull Pen video podcast can be found on the Red River Farm Network YouTube channel, Facebook and Twitter.

Don’t Be Afraid to Sell – MinnStar Bank farm management analyst Kent Thiesse sees the spring crop insurance prices as an opportunity to ensure a profit. “It’s a rare opportunity with crop insurance to be able to lock in the kind of guarantees that we got,” said Thiesse. “Yeah, it’s going to cost a little extra premium but don’t just look at the premium cost, look at what you’re protecting and how many dollars you are protecting.” Farmers shouldn’t be afraid to sell. “You’re selling new crop corn, soybeans and wheat at maybe the highest prices ever, don’t let the opportunity pass by.” Beyond what is in the bin or this year’s crop, Thiesse says ’23 can provide profitable prices if the farmer can protect themself in the futures or options market.

Higher Grain Prices Not Good for Feeding Livestock – When corn prices are close $8 per bushel, it’s more expensive to feed cattle. Top Third Ag Marketing Senior Risk Management Specialist Ed Duggan says these upward grain prices aren’t great for the livestock sector. “The livestock markets are taking this on the chin,” says Duggan. “The stock market is also dragging the livestock markets down.”

Facing the Loss of Russia and Ukraine from Global Wheat Market – The combination of Russia and Ukraine accounted for 28 percent of global wheat exports last year. RaboResearch Global Grain and Oilseed Strategist Stephen Nicholson says Russia and Ukraine use most of their wheat domestically or it is shipped out. “If you look at the other exporters in the world, there’s not enough stocks to make up that loss so that is a real concern.” Ukraine is also a huge producer of sunflower oil. That creates issues with the vegetable oil supply. “We’ve seen vegetable oils around the world very tight because of the demand for the renewable diesel and the biofuel biodiesel industry so that’s going to put a lot more pressure on palm oil, but palm oil has had its issues in production.”

NFU Delegates Pass Special Orders of Business – The National Farmers Union convention wrapped up with the passage of five special orders of business. That list includes the need for a fair, open and competitive marketplace; efforts to address the supply chain challenges and climate change. The Farmers Union also implemented policy on the agricultural workforce and dairy policy reform.

Kippley Elected NFU VP – The National Farmers Union has elected South Dakota farmer Jeff Kippley as its new vice president. Kippley succeeds Patty Edelburg, who is from Wisconsin. Edelburg has been the vice president for the past four years.

Stay Engaged – National Farmers Union President Rob Larew is urging his members to keep the pressure on Washington. “We are certainly pushing hard on the concentration issue, whether it is in meat markets or input costs,” said Larew. “That plus we continue to struggle domestically with the supply chain and globally with the current war in Ukraine.”

Improve the Farm Bill Safety Net – Agriculture groups are beginning to lay the foundation for the 2023 farm bill debate. “I would like to see them enhance the safety net a little bit,” said North Dakota Farmers Union President Mark Watne. “We need more money into it so we don’t have to rely on ad hoc disaster and if not, we need to go to permanent disaster.” Watne also wants a more targeted approach to farm payments. Watne believes a strong crop insurance program is a must. Regarding climate, an incentive-based approach is advocated. “Let’s put a carrot out there to get farmers to conform if they want to.”

Too Soon to Know Full Impact – Agriculture Secretary Tom Vilsack addressed the National Farmers Union Convention through a live feed from Washington, D.C., saying the Russia-Ukraine impact on agriculture is not known. “The reality is things haven’t been planted yet, so it’s a little early to say exactly what’s going to happen, but what we do know is Ukraine produces a tremendous amount of wheat, corn, soy, sunflowers and other products.”  A lot of Ukrainian grain is exported to North Africa, the Middle East, and China. Vilsack said the United States has programs that could fill the need. “

Support for Right to Repair’ – Product shortages and supply chain bottlenecks are a reality going into spring. South Dakota Farmers Union President Doug Sombke says concerns over consolidation amplify the problems with the supply chain. “The one good thing from the pandemic, we pointed out how close the supply chains already were and how fragile there were.” During the National Farmers Union Convention, Sombke voiced support for the ‘right to repair’ bill. “I’m not a John Deere guy, we’re (Case) International, but we have the same issues,” said Sombke. “John Deere is the one bucking this one and challenging this law. There’s no reason we pay the kind of money we do for the equipment that we shouldn’t be allowed to fix it on our own if we can.”

Fighting Consolidation in Agriculture – According to Minnesota Farmers Union Vice President Anne Schwagerl, more competition is needed throughout agriculture. “The drum that we’re banging the loudest right now is fighting consolidation in agriculture,” Schwagerl told RRFN. “From meat processing to fertilizer and seed, it is deeply consolidated and we really need to work on breaking up the big corporations who are controlling agriculture.” Minnesota Attorney General Keith Ellison was praised for his work on the National Farmers Union’s Fairness for Farmers campaign.

Biofuels Interest Grows With the Push for Green Energy – National Farmers Union Senior Advisor Anne Steckel says the push for renewable diesel is expanding to other feedstocks. “At the National Farmers Union, one initiative that we are working on is getting a pathway to allow canola to be qualified as a renewable diesel feedstock. It’s now in an official rule making process at EPA.” Diversifying into feedstocks provides farmers with new opportunities. “A lot of farmers are figuring out the different markets through ethanol, renewable diesel, biodiesel, and different feedstocks and that we can reduce carbon.”

Biofuel Supporters Tell Biden to Get Renewable Fuel Standard on Track – As fuel prices increase due to the Russia-Ukraine crisis, renewable fuel supporters want President Biden to expand access to biofuels. In a joint statement, the American Farm Bureau Federation, National Farmers Union, Renewable Fuels Association and others said now is the time to move quickly putting the RFS back on track. The groups also want the Biden administration to allow the year-round use of E15.

Thune Frustrated with EPA’s RFS Enforcement – South Dakota Senator John Thune is frustrated with how the Environmental Protection Agency is enforcing the Renewable Fuel Standard. “I just get an overall sense the administration is very lukewarm toward biofuels. I can’t explain that. I’ve tried twice to get meetings with the president and offered to bring 12 Senators down to talk about increasing the usage and biofuels we have in the liquid fuel mix. So far, it’s been crickets,” says Thune. “I think, especially right now with what’s happening with Ukraine and the shortage we have of liquid fuels in this country, you could offset a lot of that by going to E15.”

Food vs. Fuel Shows Up Amid Russia-Ukraine Crisis – According to Reuters, the Biden administration is considering whether waiving the U.S. biofuel blending mandates could stabilize rising prices for food ingredients. Corn and soybean oil prices continue to increase since Russia invaded Ukraine. Reuters says there are concerns at the White House of devastating consumer food inflation.

USDA Moving Slowly on 2020/21 Disaster Aid Implementation – North Dakota Senator John Hoeven is getting frustrated with the time it has taken USDA to distribute 2020 and 2021 disaster relief. “We passed this assistance at the end of September 2021. It’s been way too long for the assistance to get out to producers, especially over year-end when they’re trying to close up last year and make plans for next year,” said Hoeven. “We purposely wrote into the legislation the programs and flexibilities so USDA could expedite this thing, but they haven’t.” The first half of disaster aid for cattle producers will be distributed this month. Livestock payments are based on the Livestock Forage Program. The second half of the livestock payments will go to producers who sold animals at a discount during the drought. It will take longer for the FSA to distribute the second half of livestock payments. “That won’t happen this month, but somehow this got caught up between USDA lawyers and OMB. The USDA is still going back and forth on whether or not a new rule is required for the WHIP+ program.” Disaster aid is expected to get attention at the Commodity Classic later this week. Hear the story.

Commodity Classic Happening This Week – The Commodity Classic will be in New Orleans, Louisiana. Commodity Classic Committee member and Illinois farmer Kenny Harman is looking forward to being back in-person. “We’re excited to put this together. On the trade show floor, we’ve got nearly 400 exhibitors. We were sold out a few months ago on the trade floor. There’s about 50 educational sessions and Ag Secretary Tom Vilsack will be talking at the general session later on this week.” The corn, soybean, wheat and sorghum industries will be meeting this week. Harman is looking forward to Corn Congress. Fertilizer and other input prices are expected to be a big topic, along with the upcoming farm bill. “We’ll have a policy discussion and then, on the corn side, we’ll also give awards to the corn yield contest winners.” Follow the Red River Farm Network’s coverage of the event later this week.

SD Corn Comments – The Commodity Classic is back in-person this week and the South Dakota Corn Growers Association will be attending the event. Hear more about the event in the latest South Dakota Corn Comments.

Market Competition in Ag Highlighted in State of Union – In President Joe Biden’s first State of the Union address, the speech focused on Russia-Ukraine, infrastructure and the economy. Biden also briefly talked about competition in agriculture. “Small businesses and family farmers and ranchers. I need not tell our Republican friends from those states. Guess what? You’ve got four basic meat packing facilities. You play with them or you don’t get to play at all and you pay a hell of a lot more.” Biden also talked about supply chain challenges. “See what’s happening with ocean carriers, moving goods in and out of America. During the pandemic, about half a dozen or less foreign owned companies raised prices by as much as 1,000 percent and made record profits. Tonight, I’m announcing a crackdown on those companies overcharging businesses and consumers.”

MN Wheat Minute – This week’s Minnesota Wheat Minute features Minnesota Wheat CEO Charlie Vogel, highlighting the Transportation Go Conference in Milwaukee, Wisconsin.

Ocean Shipping Reform Bill Reviewed in Senate – When President Biden talked about the higher prices of shipping goods on ocean vessels in the State of the Union address last week, a reference was made to the Ocean Shipping Reform Act. This proposal is sponsored by Minnesota Senator Amy Klobuchar and South Dakota Senator John Thune. The bill is meant to make it more difficult for ocean carriers to refuse goods ready to export, addressing the shipping container situation that’s been affecting agriculture. “While all of our farmers and manufacturers are paying higher rates and having trouble shipping stuff, these guys have been price gouging,” said Klobuchar. “That’s why Senator Thune and I pushed the Federal Maritime Commission to take this on and put new rules in place to stop this from happening.” The Senate Commerce Committee had a hearing last week on the issue and Klobuchar sees a path forward in a competition jobs bill. In a letter, ag groups urged the Senate to pass the bill.

World’s Largest Container Lines Suspend Shipping – The world’s three biggest container lines are temporarily suspending cargo shipments to and from Russia. The suspension covering all Russian ports does not include foodstuffs, medical and humanitarian supplies.

DOJ and FMC Work Together on Ocean Freight Concerns – The U.S. Justice Department and Federal Maritime Commission are working together to make sure large ocean freight companies don’t take advantage of U.S. businesses and consumers. The DOJ’s antitrust division will focus on shipping laws while the Federal Maritime Commission will provide support and industry expertise.

Supply Chain Challenges Hinder Export of U.S. Meats – Logistical challenges continue to limit the ceiling of U.S. red meat exports, despite those exports reaching record levels in 2021. U.S. Meat Export Federation Economist Erin Borror says some shipping containers have been returned empty. “Supply chains were overwhelmed. Asian exporters are paying premium shipping rates, sometimes 10 times what the rate is from the U.S. to Asia. The shipping rate disparity incentivized sending back those empty container to the States from Asia. With this, export containers are denied shipping space, and those containers go back to Asia empty. This has resulted in shipment delays where cargo is delayed weeks or even months waiting for shipment space.” Borror notes that chilled export products have suffered the most from supply chain issues.

Three Factors Influence Farm Bill Outcomes – The Russell Group President Randy Russell says the farm bill is typically driven by three factors. It is the state of the farm economy when the bill is written, the budget situation and political dynamics. Russell says the farm economy is in good shape, but there’s no new money for the next farm bill. It’s also an election this year, which could change leadership in the House. “House Democrats have a plus five seat advantage. If you look historically at what happens in the first mid-term election for the party in the White House, the vast majority of the time they lose seats in the first mid-term election,” explains Russell. “Given there’s only six seats to overturn the House, there’s a good probability the House will flip and Republicans will be in control in January 2023. That would make Glenn “GT” Thompson House Agriculture Committee chairman.”

More Attention on Risk Management Portion of Farm Bill – Agricultural groups are preparing for the 2023 Farm Bill. International Fresh Produce Association Chief Public Policy Officer Robert Guenther says with climate change being a priority, the risk management portion of the farm bill will get attention. EQIP may be a priority program for the potato industry. “Where can invest money that helps improve efficiencies? EQIP is one of those programs. That plays along, not only with traditional EQIP, but climate change. What programs fit in well with that?”

Senate Ag Committee to Start Farm Bill Review in Spring – Farm bill discussions are happening on Capitol Hill. The first week of March, the House Agriculture Committee reviewed the commodities title in the 2018 Farm Bill. On the Senate side, it will be a few more weeks before the agriculture committee starts their review. That’s according to Senate Agriculture Committee Chairwoman Debbie Stabenow. We’ll kick things off later in the spring, as we always do, with field hearings both in Michigan and Arkansas, then, we’ll start title by title. It will take several months to get through everything. We want to hear what’s working and what’s not.”

Thompson: House Ag Committee Behind in Farm Bill Review – The current farm bill expires on September 30, 2023. That’s more than one year away, but the House Agriculture Committee is reviewing the 2018 Farm Bill. Last week, the committee took a closer look at the commodities title. “The 2018 Farm Bill was a pretty successful farm bill overall by all metrics, though we can’t seem to get the USDA to come before the committee to share their perspective yet, but we’re pushing them hard,” said Glenn “G.T.” Thompson, ranking member, House Agriculture Committee. “We had more than 130 different field hearings last time and now, we’ve had two official ones.” Thompson says while the committee is behind in oversight, there is optimism both sides can work together. “My travels show me Congress must support the farm safety net, coupled with reliable, timely disaster relief. It’s no good to get disaster relief that comes years after you suffer significant financial costs. Are there lessons we could learn with the WHIP+ program?” Those lessons may be incorporated into crop insurance.

A Glimpse into the Farm Bill Process if the GOP is in the Majority – Former House Agriculture Committee Chairman Frank Lucas is hopeful the upcoming elections will switch the majority in the House. If that’s the case, Glenn “G.T.” Thompson would be the chairman of the agriculture committee. “If Republicans are in the majority, we’ll start with the 2018 bill as a base text of the farm bill. We’ll go through not just page-by-page or paragraph-by-paragraph, but literally syllable-by-syllable looking at what worked, what didn’t work and what needs to be done differently,” said Lucas. “Along with the economic environment, we’ll also consider how much pressure producers are under.”

ND Farmer Testifies Before House Ag Committee – Bismarck farmer Clark Coleman spoke on behalf of the sunflower, barley canola and pulse industries when testifying before the House Agriculture Committee. Coleman said the Title One programs are the backbone of the farm bill. “Without these programs, it would be difficult to get financing for my seed, fertilizer, and other production input costs. The options and flexibility provided by the 2022 farm bill has given farmers latitude to develop protection plans to best fit their operations.” Coleman also warned about surging input costs. “The reference prices established in the 2013 farm bill were reflective of the market for the first few years. However, the dynamic may be changing as we are experiencing a surge in prices and inputs that significantly increase the production costs and risks.”

Another Continuing Resolution? – The latest continuing resolution to fund the government expires on Friday. House and Senate negotiators will likely add money for defense and humanitarian aid for Ukraine, but there is no agreement on other parts of this bill. Without action, Congress may be forced to pass yet another stopgap spending measure.

Regulatory Process Influenced by EPA Staffing Levels – Val Dolcini, North America business sustainability and government affairs head, Syngenta, says the pesticide industry continues to face uncertainty at EPA. “The Pesticide Registration Improvement Act was originally passed some decades ago and we thought as an industry that it would mean regular timelines for the approval of our crop protection tools. Unfortunately, the full-time equivalent of people that work on these issues at EPA has declined from 900 to about 500.”

The U.S. Will Hold Mexico Accountable for Fresh Potato Access – The U.S. potato industry is facing roadblocks working with Mexico to expand fresh market access. USDA’s Animal and Plant Health Inspection Service Administrator Kevin Shea met virtually with potato growers to discuss the situation at the Washington Summit. “We want access, but we don’t want to cut off our nose despite our face. If there is some kind of compromise to make things move faster, it may be in our best interest.” In December, the United States and Mexico reached a potato agreement and also, an avocado expansion agreement. Bryant Christie Incorporated Vice President of Global Access Matt Lantz said Mexico burned the U.S. potato industry the last time both agreements were signed. Avocado expansion happened in the U.S., but U.S. potato expansion in Mexico did not happen beyond the border areas. “I can assure you, we won’t be moving forward on avocados until we’re sure this situation is resolved,” said Shea. National Potato Council CEO Kam Quarles was glad to hear USDA’s commitment. Hear the story.

Local Potato Growers Attend Washington Summit – Potato growers and industry leaders were in Washington D.C. last week for the annual Washington Summit. NoKota Packers President Carissa Olsen and three others from North Dakota and Minnesota focused on agricultural policy issues like ag labor and trade. “We’ve been talking about a nutrition update coming in the fall, potato research and making sure funding stays in place to fund breeding programs, supply chain issues and the trade agreement with Mexico.” The Red River Farm Network’s coverage of the Washington Summit is presented by the National Potato Council.

Spring Moisture Forecast for the Northern Plains – World Weather Incorporated Senior Agriculture Meteorologist Drew Lerner expects to see a decent spring in the Northern Plains. “I don’t think there will be any kind of shortage of moisture, at least not in the eastern Dakotas or Minnesota and points eastward.” Moving west, Lerner is forecasting periodic moisture, but enough to get the fieldwork started. “As we go deeper into May and June, we will start to see seeing wetter bias out there to the west so I do not expect to see another terribly dry year in Montana and the western Dakotas.”

Flood Forecast – The Red River Valley could easily go from drought to major flooding in one year. North Dakota State Climatologist Adnan Akyuz says the weather patterns changed in August for the southern Valley. The National Weather Service North Central River Forecast Center’s latest forecast says there is a 90 percent chance of major flooding this spring. The probability is much lower in the northern Red River Valley with only a 25 percent chance of major flooding in Grand Forks.

Spring Wheat Gets Another Look – With wheat prices skyrocketing due to the war between Russia and Ukraine. WestBred Regional Commercial Manager Peter Comis says growers are taking a fresh look at spring wheat. “It pencils out really well with these prices and it is a great option; we encourage guys to keep looking at wheat.” In an interview with the Red River Farm Network, Comis said some of the best wheat in the world is grown in North Dakota and northwest Minnesota.

Application Timing May Benefit Northern RRV – Corteva Agriscience Territory Manager Jordan Grundstrom says securing crop inputs should be a priority. “This year is definitely the year to have inputs committed and in your sheds.” Some products may be in short supply, but Grundstrom believes the logistics will be the biggest hurdle. “As activity happens in other geographies of the US, product may not be available, but being in the northern part of the Red River Valley, we might have that product available to us because of when our application season occurs.”

Input Costs Remain a Major Concern – Farmer sentiment rose as commodity prices rallied in February, according to the latest Purdue University/CME Group Ag Economy Barometer. Purdue Center for Agriculture Director Jim Mintert says there’s still a lot of concern about production costs.” Sentiment is still quite a bit weaker than it was this time last year. I think that’s really a reflection of the level of uncertainty that’s out there. When we asked farmers what their biggest concern was for 2022, the most common response was rising production costs, followed by the risk of declining commodity prices, followed by environmental policies.”

Flexibility Will Be a Must – An already chaotic fertilizer market has been rocked by the conflict in Ukraine. Despite the uncertainty, CHS Executive Vice President of Country Operations Rick Dusek says the co-op is ready for the short-term. “I would say that most of the material we need is either in-country or on its way and it will be making its way up through the Port of Galveston. Our investment in CF Nitrogen and having that domestic production is really proving to be very beneficial this year.” With product shortages and supply chain issues, the availability of crop inputs will remain unpredictable. Flexibility will be a must. “We feel pretty good we’ll be able to supply the things we need. It might not be the brand you want or the label that you want, but the team is working really hard to make sure we’ve got product for our growers.”

Global Food Prices Reach All-Time High – Global food prices were at an all-time high in February. That’s according to the United Nations’ Food and Agriculture Organization. The Food Price’s Index increased 3.9 percent and the rise puts the index above its earlier record high in 2011. Vegetable oil prices led the increase and dairy prices also rallied. These numbers only partly cover the recent price spikes for wheat and other grains due to Russia’s invasion of Ukraine.

Landowners Will Receive Payments for Underground CO2 Storage – The world’s largest carbon capture project should be online by the spring of 2024 and it will be in North Dakota. Continental Resources will invest $250 million over two years to help fund the development and construction of the Summit Carbon Solutions project. North Dakota Governor Doug Burgum says this effort connects Midwest ethanol and fertilizer plants to an area northwest of Bismarck through a 2,000-mile-long pipeline. “We can store all of the nation’s CO2 for the next 50 years if you want to get it here; that’s just the remarkable gift we’ve been given as a state to have that amount of capacity.” The State of North Dakota handles the permitting process for the pipeline, providing regulatory certainty for those involved in this carbon sequestration project. Burgum emphasizes the owners of the underground core space for CO2 storage is the landowners. “Every landowner in that 40 square miles is going to get a payment for the per number of tons underground. This is a great opportunity for landowners, farmers and ranchers to get a check for doing nothing but having this safe storage well over a mile underground.” Burgum says this is the most effective way to reduce carbon should be at the forefront of the nation’s energy policy.

Brazil to Boost Domestic Fertilizer Production – Brazil is planning to develop a national plan to spur investment in domestic potash and phosphorus mines. The agriculture ministry hopes to have a strategy in place by mid-March that will minimize regulatory bottlenecks, taxes, and environmental pressure. Brazil imports about 85 percent of its fertilizer, including 96 percent of its potash.

Goehring to EPA: ND Unable to Dispose of Chlorpyrifos – The EPA banned the use of chlorpyrifos and directed North Dakota users and distributors to dispose of the product through the state pesticide disposal program. Agriculture Commissioner Doug Goehring has advised EPA that Project Safe Send does not have the resources or funding to accept large quantities of chlorpyrifos for disposal. Goehring said EPA decision made huge stocks of the product in the supply chain unusable and the agency timeline is “unreasonable.”

“Getting Back to Normal” at ND Farm Service Agency – It’s North Dakota Farm Service Agency State Executive Director Marcy Svenningsen’s second week on the job. She is familiar with the agency and chaired the state committee during the Obama administration. One of the big changes at the FSA since the Obama administration is the increased use of technology and transition of working through COVID. Almost all county offices remain staffed at 75 percent across North Dakota, but Svenningsen says that could change soon. “We’re slowly coming around, but we have to hang in there. Out of all of the e-mails I’ve received this week, e-mails relating to this topic are of highest level of importance.” Svenningsen is looking forward to getting back to normal after the COVID pandemic. One way to do that is to name a state committee. She submitted four names to FSA last week. “We need to get our state committee going and now that there’s a state executive director in place, we need to get back to normal operations of the North Dakota Farm Service Agency.” Farmers are still encouraged to call ahead for appointments at FSA. The deadline for commodity safety net program enrollment is March 15.

Canola Minute – In this week’s Canola Minute, Northern Canola Growers Association Executive Director Barry Coleman talks about North Dakota State University’s Getting it Right in Canola Production virtual event.

The FSA Office Will Be a Busy Place for the Next Couple Weeks – The general signup deadline for the Conservation Reserve Program is Friday. The decision for Agriculture Risk Coverage and Price Loss Coverage program must be made by mid-month. “Even if you want to roll over your contract and make the same decision as last year, we still need your signature on that election,” said Whitney Place, State Executive Director, Minnesota Farm Service Agency. “That deadline is March 15.” Place expects payments from the first phase of the new emergency disaster program will likely be made before wheels turn this spring. “USDA is trying to make this a lot less complicated than WHIP+ and so our plan is to use existing data for those producers who are already in our system for livestock relief or crop relief.” For those people eligible for the disaster payments but are not in the system will go through an application process. Place said staffing rates are increasing for FSA, but farmers are still encouraged to make an appointment with their local office.

Avian Influenza Confirmed in South Dakota – Highly pathogenic avian influenza has been confirmed in a poultry flock in Charles Mix County, South Dakota. All of the birds in this commercial mixed species flock will be destroyed. This follows news of avian influenza cases in Missouri and Maryland over the weekend.

MN Poultry Industry Prepares for Avian Influenza – Minnesota poultry producers remain on high alert as highly pathogenic avian influenza gets closer. As of Friday, there haven’t been any confirmed cases in the state. Minnesota Board of Animal Health Assistant Director Dr. Dale Lauer says that includes commercial and non-commercial flocks. “As we watch the movement of this virus through different states, we’re fortunate at this point, but time will tell.” Lauer says it’s not a matter of if, but it’s when avian influenza hits Minnesota this spring. The State Board of Animal Health is testing flocks constantly. Last week was the seven-year anniversary of Minnesota’s last big big avian influenza outbreak. Lauer says the state’s learned a lot about responding to the virus since 2015. “This time around, we have a renovated laboratory to do testing in two different locations, there’s a lot of depopulation equipment and veterinarians are on high alert. Biosecurity is ramped up and if we can keep the disease out, we don’t have to worry about depopulation of those carcasses.”

New Antibiotic Guidelines Set for 2023 – Ranchers are being encouraged to seek out a veterinarian-client relationship to access antibiotics. Under the new FDA guidance, several antibiotics will no longer be available over the counter.  NDSU Extension Livestock Stewardship Specialist Gerald Stokka says it should only impact a small portion of antibiotics used in the livestock industry. “The new guidelines are going to revolve around a shift in the labeling on most over-the-counter antibiotics; they will now become prescription antibiotics. That’s the biggest difference I see coming to us in 2023.”

Global Beef Markets Remain Tight – According to the latest report released by Rabobank, ongoing strong demand and limited supplies have kept global beef prices high, but cost pressures are flowing into the supply chain. Retail beef price movement over the last two years have been high, driven largely by strong consumer demand. Beef retail prices in the U.S. during the second quarter of 2021 were 23 percent higher than the five-year average. With Russia having a less prominent role in global beef markets than five-years ago, Rabobank doesn’t expect big impacts on the global beef markets. However, with Russia and Ukraine accounting for over 29 percent of wheat exports, trade embargoes could pressure feed prices.

U.S. & Canadian Cattle Inventory Down – The total cattle and calf numbers in the United States sits at 91.9 million head. That’s down two percent from the 93.8 million head a year ago. All cows and heifers that calved inventory sits at 39.5 million head, also down two percent from last year.

MN Beef Update – What are the benefits of being a member of the Minnesota State Cattlemen’s Association? President Grant Breitkreutz explains in this week’s Minnesota Beef Update.

Cattle Market Should Look Favorable Second Part of 2022 – Feeder cattle are coming into a seasonal timeframe where the market is slowing down. Van Ahn and Company Market Analyst Jim Emter says there’s concern high-end meat demand may drop with rising inflation. Emter says as we get later into 2022, the market should be more favorable. “We do see a more positive outlook as we adjust to seasonals. Generally, April is a seasonal bottoming time for feeders while May is more of the timeframe for live cattle. If we can round out that base between that timeframe, I think we’ll see a more sustained buying interest in the markets. I think the second half of this year is going to be more favorable to the cattle complex both feeders and live.” Emter says inverse markets could create unique opportunities. “When you’re seeing inverse markets, give the market what it wants. As we look at these futures markets drive up, the corn and wheat market in particular, you need to understand when you see that happening with widening basis levels, that’s not usually a welcoming sign.

Herd Expansion Seen in Upper Midwest and PNW – Beef cow numbers are increasing in the Pacific Northwest and Upper Midwest. Steiner Consulting Group Head Economist Altin Kalo says the weather has a lot to do with it. “We’ve had significant losses in the central part of the country due to the drought and the pricing has been favorable especially for some of the feeder cattle in the last six months or so. The producers that have the ability to grow, have been able to grow.” Kalo says there’s just been a disconnect between the wholesale beef price and the price the cattle producers are receiving.

No Satisfaction in Dairy Trade Dispute Settlement – Canada is proposing changes to its dairy tariff rate quota system to end the dispute with the United States over market access. In January, the U.S. won the first-ever USMCA dispute settlement case on the dairy trade issue. However, the National Milk Producers Federation and U.S. Dairy Export Council are asking the Biden Administration to reject this Canadian proposal. National Milk President and CEO Jim Mulhern said U.S. dairy farmers “are sick and tired” of Canada’s effort to undercut its market access commitments.

Additional $80 Million in Funding in Dairy Industry – The U.S. Department of Agriculture announced an additional investment of $80 million into the Dairy Business Innovation Initiatives. Since its establishment in 2019, DBI initiatives have provided technical assistance and sub-grants to dairy farmers and business across their regions.

Others Want What the Dairy Industry Has – The balance sheet for Associated Milk Producers, Incorporated is the strongest it has ever been. Board Chairman Steve Schlangen says the dairy cooperative has invested in new technology in its four major cheese plants. On the domestic front, AMPI and Crystal Farms came to terms on an agreement to sell cheese at the retail level.  Regarding international sales, AMPI has secured markets in China and the Middle East. “They’re learning to love cheeseburgers and that’s a good thing because there’s a lot of mouths to feed there.” Schlangen said it is important to have a market for your products.” If you look at the beef industry is going through and even pork, they would love to have their own farmer-owned cooperative where they could have the market for products and that’s what we have in dairy and AMPI.”

McDonald’s Pressured About Pork Production Practices – Activist investor Carl Icahn is again making a push for McDonald’s to demand changes from its pork suppliers. That includes changes to the way sows are housed. Icahn also wants the restaurant chain to have its suppliers abide by California’s Proposition 12, which establishes strict animal welfare standards. Icahn has worked closely with an activist group called the Humane Society of the United States. Meanwhile, the Humane Society of the United States has filed a complaint against McDonald’s with the Securities and Exchange Commission alleging false and misleading claims have been made about its swine production practices.

Corn Matters – In this week’s Corn Matters, Minnesota Corn Growers Association President Bryan Biegler recaps the association’s Day on the Hill event, including a push for year-round E15.

A $9 Billion Budget Surplus for Minnesota – Minnesota’s General Fund surplus is now forecast at $9.25 billion. That’s up from the $7.7 billion surplus projection that was made in November. “I am fully aware that we’re going to have to compromise together, but the good news is we can compromise on a whole lot of fronts to make life cheaper for Minnesotans now and into the future,” said Governor Tim Walz. “We can continue to invest in things like health care and education, reducing costs and making them more accessible to folks and making sure we keep up with infrastructure.” Walz said there should be some caution, especially with the conflict underway in Ukraine. Minnesota Senate Majority Leader Jeremy Miller said a $9 billion surplus is “mind boggling.” At a time of record inflation, Miller said Minnesotans are being overtaxed. “The best way to address that is to provide permanent, ongoing tax relief.”

Drought Bill Passes in MN House Ways and Means Committee – The Minnesota House Ways and Means Committee has approved a drought relief bill that combines assistance for farmers with legislation to support the Department of Natural Resources. The agriculture portion includes grants for drought-related expenses and $5 million for Rural Finance Authority loans. Minnesota Department of Agriculture Director of Ag Marketing and Development Paul Hugunin outline the timeline to get the assistance out to farmers. “Realistically, from when the bill is passed and enacted, we’re talking between six-to-eight weeks before the first farmers are receiving checks.”

MFBF Update – A drought relief bill is making its way through the Minnesota Legislature. Hear more from Minnesota Farm Bureau President Dan Glessing about the legislation in this week’s MFBF Update.

Sundin Isn’t Running in ’22 – Minnesota House Agriculture Committee Chairman Mike Sundin is not seeking reelection. Sundin is from Esko in northeastern Minnesota and is serving is fifth term in the legislature.

Roseau County Landowners Release Map Opposing Project – The Roseau River Watershed District have been building a development project for three years. Institute for Justice Fellow Porter Enstrom says a group of local farmers are concerned it could flood productive farmland. “The Roseau River Watershed District has settled on one plan and originally the landowner coalition was worried about the district taking owner’s land by eminent domain. However, the current alternative plan stands to be worse. It would end up pushing water onto private land, thereby flooding perfectly useable farmland making it unusable for these farmers.” Enstrom says a date has not be set for the beginning of this project. “It’s supposed to be this year, but the district is planning on moving into construction soon.”

$11.4 Million in Patronage Returned to CHS Ag Services Owners – According to CHS Ag Services General Manager Ryan Anderson, the work has been done to prepare for a busy spring and supply chain concerns. “I feel good about our supply plan, we’re still relying on our unit trains to resupply us for spring. We have those in place right now.” During the CHS Ag Services Annual Meeting, Anderson announced the cooperative returned $11.4 million in patronage to its owners for fiscal year 2021. CHS Ag Services is getting ready to break ground on a new greenfield agronomy complex ag Badger, Minnesota. “It’s going be a brand new 8,000-ton dry fertilizer plant with a chemical warehouse (and) seed tanks.” The Badger site should be operational for the spring of 2023.

Beet Stock Values – American Crystal Sugar Company beet stock trading continues to be in a lull. According to Acres & Shares, last week only 14 shares were brokered at an average price of $4,367.86 per share. “It’s been pretty quiet the past few weeks,” said Jayson Menke. “When you look at the three broker websites, there’s not much for sale.”

50-50 Ownership Stake in Fertilizer Production Facility – Koch Ag and Energy Solutions will acquire a 50 percent interest in Jorf Fertilizer Company from OCP. OCP is the world’s largest phosphate mining group. Production from the Jorf facility in Morocco will be marketed by OCP and Koch Fertilizer.

Hope for the Best, Plan for the Worst – The fertilizer situation remains a very tenuous situation. Sound Agriculture CEO Adam Litle is cautious as he looks out to spring. “As rough as it is right now, it is possible to get another spike in fertilizer prices and maybe not even getting it because of the supply problems,” said Litle. “This is absolutely the time to hope for the best, but plan for the worst.” Sound Agriculture has launched a nitrogen reduction pilot program with its SOURCE product that removes the risk of trying a new product. “Because we’ve got so much data that we can protect that yield and even boost it, we’re willing to say if you lose any yield at all, we’ll cover the downside.”

Farm Organizations File Complaint Against Deere – The National Farmers Union, six state Farmers Union groups and FarmAction have filed a complaint against John Deere with the Federal Trade Commission. This coalition is seeking an investigation into Deere’s restrictions on farm equipment repair. The ‘right to repair’ complaint is described as a violation of antitrust and consumer protection laws.

CP-KCS Merger Facing Opposition in the Chicago Area – A coalition of eight Chicago-area suburbs have filed a complaint with the Surface Transportation Board, saying the merger of Canadian Pacific and Kansas City Southern rail lines should not be approved. These communities say the merger will bring more trains to the area and have a negative impact. This merger would create the first single-line railroad network that connects the U.S., Canada and Mexico.

Climate FieldView to FarmLogs Connectivity Now Available – The FarmLogs farm management software now offers Climate FieldView integration, reducing the need for manual data entry by farmers. Fargo-based Bushel acquired FarmLogs in June of last year.

Record Sales for Land O’Lakes – Land O’Lakes is reporting record net sales of $16 billion for 2021. Net income totals $295 million, up from $266 million one year earlier. The crop inputs division had significant volume increases. Feed volumes were up, but earnings were down because of high supply chain costs. The supply chain bottlenecks also hurt the profit picture for the Land O’Lakes dairy business.

Bayer CropScience Sales Rise in Q4 – Sales for Bayer’s agricultural business rose more than 11 percent in the fourth quarter. Corn Seed and Traits enjoyed a sales increase of nine percent. Soybean Traits were up 15 percent, helped by price increases for glyphosate-based products. Bayer’s herbicide sales were up more than 15 percent and fungicide sales increased nearly 14 percent. In a recap of its financials, Bayer officials said the company is encouraged by the glyphosate-related litigation in the United States.

Bayer Announces Trait and Herbicide Approvals – Bayer has received final EPA approval for a new corn trait and a new corn herbicide. The VT4PRO trait with RNAi Technology has three modes of action to control above-ground and below-ground insects. Large-scale field testing will be completed this year and in 2023. The commercial launch could come as early as 2024, pending state registrations. The TriVolt herbicide provides burndown and residual activity to control difficult weeds like waterhemp, kochia, common ragweed and Palmer amaranth.

Dry Bean Scene – In this week’s Dry Bean Scene, we preview a new U.S. Dry Bean Council promotion with executive director Rebecca Bratter. The Dry Bean Scene is sponsored by the Northarvest Bean Growers Association.

The Silent Yield Robber – It may not be a visible threat until it is too late, but wireworms can deliver significant damage to wheat. BASF Technical Representative Tracy Hillenbrand describes this pest as ‘a silent yield robber.’ “You might start seeing it in your fields as just odd-looking wheat plants or it might look like a skip, but if we were to get down there and start looking, you’ll be able to see the remnants of wireworm damage.” The best time to find wireworms is in early spring when the ground starts warming up. That’s why it is important to make plans the year before. BASF has a new seed treatment called Teraxxa. “It’s the only one on the market that truly eliminates wireworms.”

Balcom to Serve as National Potato Council President – Jared Balcom of Pasco, Washington is the new president of the National Potato Council. Balcom operates a potato production and fresh packing business. Previously, Balcom was NPC’s first vice president and was part of the trade affairs committee.

Parker to Serve as 2022 National Turkey Federation Chairman – Ronnie Parker of Circle S Ranch is the new chairman of the National Turkey Federation. Steve Lykken of Jennie-O Turkey Store is vice chairman. The secretary-treasurer is John Zimmerman of P&J Products. Supply chain issues, labor availability and consumer engagement are NTF priorities.

United Soybean Board Appoints New Members – The USDA announced the appointment of nine farmers to serve on the United Soybean Board. Newly appointed farmer-leaders include Patrick O’Leary from Benson, Minnesota, Cindy Pulskamp from Hillsboro, North Dakota, and Tim Ostrem from Centerville, South Dakota. The United Soybean Board is composed of 78 farmer volunteers who work on behalf of U.S. soybean producers for their soy checkoff investments.

Plea Entered in Crop Insurance Fraud Case – Washburn, North Dakota farmer Kevin Pfaff has entered a not guilty plea to charges of crop insurance fraud. Pfaff allegedly misrepresented crop losses for crop insurance benefits from 2017-to-2020. A trial is now scheduled to begin April 19.