A Weekly Update from the Red River Farm Network

Monday, November 15, 2021

Heading to Kansas City-The National Association of Farm Broadcasting Annual Meeting is taking place this week in Kansas City. We had a successful virtual experience last year, but, it will be great to have the gang together again. Zoom calls are fine, but they can’t replace face-to-face meetings. As farm broadcasters, we value our relationship with the farmers and ranchers. Likewise, the opportunity to sit down with other ag journalists is appreciated. The meeting will have time for interviews and professional improvement; business meetings and awards. Yet, it is the relationship with our partners in the farm broadcast world that is valued most. 

With Normal Yields, ’22 Budgets Pencil Out – The crop put in the ground in 2022 will likely be the most expensive to date in a farmer’s career. Northland Community and Technical College Farm Business Management Instructor Ron Dvergsten says the financials still work. “It kind of reminds me of 2011-2012 when input costs were high, too,” said Dvergsten. “I’ve run some budgets this fall and it doesn’t leave a lot of wiggle room, but it does work if we get normal yield.”  Many farmers were able to capture strong cash prices for this year’s crop. Dvergsten is advising his clients to also consider making sales for the 2022 crop. “Look at locking in 25-to-40 percent of your projected bushels between now and sometime next spring to give you a little buffer. Most likely, you’ll be putting more cost per acre into your farm in 2022 than you ever have in your farming history.” Listen to the complete interview.

Fertilizer Prices Reach New Highs – Anhydrous ammonia, 28 percent and 32 percent UAN and urea prices are at all record high. According to DTN’s weekly survey of ag retailers, anhydrous averaged $1,113 per ton this past week. That’s up nearly 40 percent from one week ago. Anhydrous is now 163 percent more expensive than one year ago. The average price of UAN28 is up 36 percent from last month. UAN32 is 32 percent more expensive. Urea is up 26 percent. Potash prices are 11 percent higher than last month.

Fertilizer Prices Could Be Worse – Fertilizer prices continue to move higher. Supplies are tight and demand remains strong. According to StoneX Group Director of Fertilizer Josh Linville, activities around the globe are impacting nitrogen prices. “China, one of the world’s major producers, effectively banned exports, the European natural gas remains high so we’ve lost production in Europe and we’re seeing export caps placed on nitrogen from Russia and Egypt.” While the world supplies are tight, there are no signs of demand destruction. Anhydrous prices increased 40 percent in one week and are up 163 percent from one year ago. Linville says prices can still go higher. “I know people are going to say I’m full of it, but urea prices are still very cheap,” said Linville. “When you look at the price of anhydrous compared to urea and the price of UAN on the price per pound of nitrogen, anhydrous is actually cheaper in comparison to what it normally is this time of the year. There’s a lot of pain, but unfortunately, I believe it could be worse.” In an interview with the Red River Farm Network, Linville said not to let emotions result in bad decisions.

Acres & Shares: Another Record High – Based on low supply, American Crystal Sugar Company beet stock hit another brokered record high last week at $4,650 per share. According to Jayson Menke with Acres & Shares last week 157 shares were brokered for an average price of $4,584.08 per share.

Inflation on the Rise – U.S. inflation is rising at the fastest pace in 30 years. The region that includes North Dakota, Minnesota and South Dakota had prices increase 7.3 percent last month compared to one year ago. The overall jump in inflation is due higher energy prices with October gasoline prices up 50 percent from one year ago.

What’s Hot, What’s Not in the Markets – A big week for corn, soybeans and wheat, inflation and supply chain disruptions all get attention in this week’s edition of What’s Hot, What’s Not in the Markets. Advance Risk Management Advisor Tommy Grisafi also has details on the price of your Thanksgiving Day dinner.

NYT Reports on Ag Economy – Over the weekend, the New York Times reported on the ongoing problems at the ports and the implications for agriculture. While the supply chain disruptions have gotten national headlines for its impact on consumer items, the article says a crisis is also developing for American farm exports. A dairy industry leader said this is not just an inconvenience, “it’s catastrophic.”

Final 2019 and 2020 WHIP+ Payments Issued – USDA’s Farm Service Agency has authorized the remaining ten percent of the 2019 and 2020 WHIP+ program payments to go out. The initial payments were equal to 50 percent of the calculated payment amount. A second round of payments was made this past June that was 40 percent of the payment. The remaining ten percent payment constitutes the final payment for 2019 and 2020.

What’s the Status of the 20/21 WHIP+ Program? – More than 40 days ago, Congress approved a continuing resolution that included WHIP+ program money for 2020 and 2021 disasters. The USDA has not made an official announcement about a launch date of the program. Combest, Sell and Associates managing partner and ag lobbyist Tom Sell hasn’t heard much. “The USDA had the WHIP+ program model in 2017, tweaked it in 2018 and perfected it in 2019. The expectation in the country is USDA could roll this out quickly. We aren’t seeing any real acknowledgement that this is there.” Sell is slightly concerned the program details haven’t been released yet. “There are many things going on in Washington D.C. USDA is still operating on short staff and they’re dealing with attrition, because of things like the vaccine mandate. There are big issues the USDA is dealing with now.”

Pay Attention to the WHIP+ Formula – Pro Ag Service and Insurance Agent Aaron Vipond is eager to see how the USDA implements the the 2020-2021 WHIP+ program. Based on what is already known about the new program, there could be issues for specialty crop growers with revenue protection policies. “The WHIP+ program formula was based on crop insurance spring prices from 2018 and 2019. In those years, this wasn’t a big issue, because spring prices were higher than fall prices. There was no real price change to the benefit. This year, fall prices are coming in higher in crops like wheat, dry edible beans and sunflowers. That could kick producers out of disaster payments, because they bought better insurance.” This concern was brought up during a roundtable discussion with Farm Service Agency Administrator Zach Ducheneaux on Tuesday. Ducheneaux will take that feedback back to the agency ahead of implementation.

ND Ag Groups Give Input on Livestock Disaster Aid – North Dakota farm groups met with Farm Service Agency Administrator Zach Ducheneaux in a roundtable discussion this week to discuss the distribution of $10 billion in disaster aid Congress approved in September. It’s still not clear when USDA will announce the details. North Dakota Senator John Hoeven hopes the disaster aid will be implemented quickly. “I’ve been after the USDA to move both pieces: the WHIP+ program and livestock disaster aid.” The primary goal of the meeting was to get a better idea of what the $750 million in livestock disaster assistance could look like. Ducheneaux told the Red River Farm Network it was a good conversation. “One idea was adding top up payments on existing programs.” The FSA will have a rulemaking process for the livestock portion of disaster aid, but Ducheneaux would not commit to a timeline.

Administration Takes Action to Strengthen Supply Chain Resiliency – The Biden Administration has announced steps to accelerate investment in ports, waterways and freight networks. To address the current supply chain disruptions, the Department of Transportation will allow port authorities to redirect project cost savings toward resolving the supply chain issues. There are also numerous actions taken to expedite the modernization and expansion of port infrastructure. The DOT is also charged with publishing a playbook for states for the use of grant and loan programs to help alleviate freight bottlenecks.

Infrastructure Bill to be Signed Today – President Joe Biden will be joined by a bipartisan group of lawmakers when he signs the infrastructure bill this afternoon. That will be followed by trips to New Hampshire and Michigan to promote the benefits of this legislation. Other cabinet members will also go on the road in the weeks ahead to highlight infrastructure projects. Meanwhile, Biden has asked former New Orleans Mayor Mitch Landrieu to coordinate the implementation of this new law.

Hours-of-Service Flexibility Provided in Infrastructure Bill – The new infrastructure package includes a provision to expand hours-of-service for livestock haulers. “This gives some flexibility in hours-of-service where we get an exemption of 150 miles and 150 miles on the destination,” said Steve Hilker, chair, U.S. Cattlemen’s Association transportation committee. “That was a big deal.” Hilker appreciates the new flexibility in the infrastructure bill, but workforce issues remain a challenge. “I’ve never seen it like this just trying to get help; we’re just terribly short on drivers and owner-operators.”

MN Beef Update – The Minnesota State Cattlemen’s Association will be meeting ahead of the State Cattle Industry Convention to discuss resolutions for the year ahead. Association member Krist Wollum has more in the latest Minnesota Beef Update.

Biden and Xi Expected to Discuss Trade – President Joe Biden and Chinese President Xi Jinping will meet virtually later today. U.S. agricultural sales to China are at record highs, but China is not meeting its trade obligations within the phase one trade deal with the United States. U.S. Trade Representative Katherine Tai says the administration is gaining in traction in its trade talks with China, but did not offer specifics.

U.S. to Discuss Tariffs With Japan This Week – The United States and Japan are in negotiations over the steel and aluminum tariffs imposed during the Trump Administration. The Biden Administration eased tariffs on European steel and aluminum last month and Japan now appears to be next in line. U.S. Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo will be in Japan and other parts of Southeast Asia this week.

International ‘Shenanigans’ Hurt Trade – Former USDA Undersecretary of Trade Ted McKinney says international trade for U.S. agriculture is alive and well. The pandemic disrupted export activity. McKinney said trade is influenced by what he calls “international shenanigans.” An example is the empty containers leaving U.S. ports. “It’s almost a crime against humanity,” said McKinney. McKinney was the first undersecretary that focused exclusively on trade. The Biden Administration has not yet filled that position. “They’ve got to get going because it is a role that is critically important. If you’re not present (in international markets), you’re forgotten.” McKinney currently serves as the CEO for the National Association of State Departments of Agriculture.

Phase One Trade Deal Needs to be Enforced and Extended – Former Iowa Governor Terry Branstad served as the U.S. ambassador to China during the Trump Administration. Since the phase one trade agreement was signed in January of 2020, the U.S. exported a record amount of corn, soybeans and pork to China. “When I got the ambassadorship, China had not purchased beef from the United States for 14 years because of Mad Cow Disease. We also got that lifted.” Branstad met with U.S. Trade Ambassador Katherine Tai last week to discuss the phase one trade agreement. “China has a bigger middle class than the United States. There is great market potential there,” said Branstad. “You need to do you can to extend the phase one agreement and also work on trade agreements in other parts of the world.” In an interview with the Red River Farm Network, Branstad said the Biden Administration got off to a slow start on trade.

Ambassador Tom Questions EU’s Food-to-Fork Initiative – During the Midwest Agricultural Export Summit in Sioux Falls, Ambassador Kip Tom addressed trade issues. Tom recently served in Rome at the U.S.-based United Nations Agencies for Food and Agriculture and has farmed for more than 40 years in Indiana. The European Union’s Farm-to-Fork Initiative is one of his biggest concerns. “The EU wants to push this around the world. They want to completely take biotech out of the toolbox, take away any synthetic products because of the crop concerns that they have and they want to take fertilizer completely out of the equation.” Without food security, Tom said there is an increase in extremist activities threatening the United States and its allies.

WASDE Report Boosted Soybean Carryout – The trade was queued up for a bearish report for soybeans, but as the USDA numbers came out Tuesday morning soybeans went from six cents lower-to-52 cents higher. USDA increased the soybean carryout by 20 million bushels, but cut the average soybean yield to 51.2 bushels per acre. That’s down three-tenths of a bushel from the October report. The average yield for Minnesota was 49 bushels per acre, unchanged from last month. North Dakota soybean yields were left unchanged at 26 bushels and South Dakota yields increased 2.5 bushels from a month ago with an average of 41 bushels per acre.

A Small Increase in Corn Production – U.S. corn production is forecast at 15.1 billion bushels, up less than one percent from October. Yields are record high at 177 bushels per acre, up half-a-bushel from last month. The statewide averages for corn yields were 186 bushels per acre for Minnesota, 137 bushels per acre for South Dakota and 108 bushels per acre for North Dakota. While the Dakotas enjoyed a small bump in yield, Minnesota has seen a significant improvement with USDA increasing the state’s average corn yield by 20 bushels per acre from August-to-November.

U.S. Corn Yields May Show More Decline in Future Reports – The USDA lowered the average soybean yield and raised the corn yield in the November Supply and Demand report. Global Commodity Analytics and Consulting President Mike Zuzolo expects corn yields to come down in future reports. “Five states including Michigan, Illinois, Indiana, Ohio and Kentucky are all showing record yields. Then, the USDA cut the Illinois and Indiana yields back. Other states may be struggling with tar spots. We may see more of a yield decline from USDA in January.” Wet weather is preventing harvest progress, also impacting yields. “Especially in central and western Indiana, all the way into Illinois. I feel satisfied in USDA’s estimates west of the Mississippi River. I wonder if they’ll have to pull back Minnesota’s estimates at a later date.”

November USDA Report Full of Surprises – Clayton Pope Commodities owner and market analyst Clayton Pope is amazed to see the USDA reduce the U.S. soybean yield forecast in the November report. “It was incredulous in October when the USDA shocked everyone by raising the soybean yields by nine-tenths of a bushel. Yet, we kept hearing how great soybean yields were and we thought there’d be another increase. Instead, the USDA cut their estimate by three-tenths of a bushel. USDA only increased their carryover by 20 million.” Pope says USDA’s corn numbers are not bullish. The world corn carryout is also a slight surprise. “The world carryover in corn was expected to drop by almost one million metric tons. Instead, it went up 2.7 million metric tons. Not only did the U.S. production increase, but USDA raised Argentina’s estimate. That corn number is neutral to slightly negative if you ask me.”

Brazil May Become World’s Largest Soybean Producer in 2022 – The USDA is forecasting higher corn production and lower soybean production for Argentina in the next year. USDA is also estimating record soybean production for Brazil in the new crop year at 144 million tons. For perspective, Advance Trading Commodity Research Analyst Brian Basting says the U.S. produced 120 million tons of soybeans this year. “If this crop is realized in Brazil, the country would be the largest soybean producer in the world. Brazil has a very good start compared to last year, when it was quite dry. This year, there’s been more moisture. The crop got planted earlier and may be harvested earlier in 2022.” The U.S. is aggressively shipping soybeans, but the export window to China could close earlier than usual. “It could reach the world’s pipeline earlier.”

Global Grain Competition Heats Up – China’s demand for grain and oilseeds remains strong. “Now, the puzzle: how much will China buy and when? It’s a big unknown,” says Al Kluis, market analyst, Kluis Commodity Advisors. “Private forecasters and attaches in China seem to agree the country had a larger corn crop this year and they’ve been feeding a lot of wheat. Looking ahead at our competition, South America’s soybean prices are much lower starting in January and February 2022.” Kluis says the window for the U.S. to make sales to China is expected to close by December or January. “When we get into these price wars, especially with currency values so low, whatever sale price the U.S. puts on our products, South America will undersell in a competitive global market.”

Minnesota Wheat Minute – The Prairie Grains Conference is coming up on December 8-9, 2021. Minnesota Wheat Executive Director Charlie Vogel previews the event. Hear more in this week’s Minnesota Wheat Minute.

Price, Price, Price – The boards of U.S. Wheat Associates and the National Association of Wheat Growers met this past week in Kansas City. USW Vice Chair Rhonda Larson, who farms at East Grand Forks, said there are three priorities “price, price and price.” U.S. Wheat Vice President of Overseas Operations Mike Spier provided an update on wheat supplies. “He noted that U.S. wheat ending stocks declined 50 percent in just five years.”

No Big Winner in 2022 Acreage Battle Yet – Minneapolis wheat led the grain market higher this week. Van Ahn and Company market analyst Kristi Van Ahn thinks spring wheat is trying to secure acres. “We’re trying to decipher what we’ll have for acres with fertilizer prices as high as they are and soybean prices are lower. We’re not really seeing a winner in the acreage battle looking to next year.” The grain market is trying to decide how much of each commodity is needed. “It took us forever to get through the $5.50 level in the corn. We’re there now. This is the bottom end of the range and somewhere between $5.80 and $6 is where we should be for the top end. We’re stuck in the middle. It’s a similar situation with the soybean markets.”

A Corn Harvest Snapshot – Corn harvest is nearing completion in the Northern Plains. It’s been a quick harvest for Mahnomen, Minnesota farmer Blair Hoseth. Corn harvest wrapped up in mid-October, leaving plenty of time to get fall fieldwork done. “We ended up going in and no-tilling the soybean crop. It came out pretty nice. The corn came out of the field from 15 to 18 percent moisture. The test weight was good and late rains seemed to help. Yields were down.” Near Wilmot, South Dakota, Travis Strasser is still harvesting corn, trying to push through “mucky” field conditions. “We’re fighting mud and difficult conditions. We are very blessed with above average yields and the corn is in excellent condition. Much of that is coming out of the field borderline dry enough to go to ethanol plants and grain elevators. The field conditions are difficult.”

Corn Yields Decent Despite Drought – In Arvilla, North Dakota, Columbia Grain site manager Tyler Stegman says nearly all of the area farmers are done with corn harvest. “It’s been a strong push. Farmers are glad to be done. From what we’re seeing, farmers are happy considering how dry it was this year.” Yields and quality were better than expected. “Everything is good. The crop is coming in at good moisture. We’ll take any amount of moisture we can get this winter.”

Snow Delays Corn Harvest – The snow is causing a slight delay in Kulm, North Dakota farmer Bart Schott’s corn harvest. Corn harvest is two-thirds complete. “We’re close enough to see the end of harvest, but we aren’t there yet. We’ve had really tough harvest days.” Ahead of the snow, corn moisture’s varied in the crop, from 17 to 19 percent and then, drier in locations. “On some fields, we had corn at 14 to 15 percent moisture. The moisture is turning out the same as yields: you don’t know why some fields are yielding better than others. Overall, it’s good quality corn.”

We’re All Ears: How to Talk the Talk and Walk the Stalk – Farmers learned a few lessons in 2021. Golden Harvest Agronomist Ron Beyer says planting into the dry soils brought variable corn emergence and showed many farmers how that will affect the long-term yield potential. “It starts from the time the corn comes up out of the ground. Was it uniform or was it variable?” If you plan to plant corn in 2022, Beyer says be flexible on securing inputs. “Understand the needs of the corn plant and then, try to look around and see what’s Mother Nature giving you right now that can be used to enhance the corn to get more bushels per acre.” Hear more in the latest We’re All Ears podcast episode called “How to Talk the Talk and Walk the Stalk.” Check out the episode on Podbean, the Golden Harvest website, Apple Podcast, Google Podcast and Spotify.

Rain Makes Grain – Coleharbor, North Dakota farmer Paul Anderson is done with corn harvest for the year. “Our later planted corn did the best when compared with the earlier planted corn,” says Anderson. “We had a strange year. There was a dry period from July 4 to August 25 and the rain we caught late helped the later corn. We had scrambled ears and large kernels from that. The test weights were heavy. That’s where the extra yield came from at the tail end.” Ahead of the snowfall Anderson still had sunflowers to harvest. “Due to the warm conditions back when we planted, the flowers snuck out of the ground before we could get pre-emergence herbicide applied. There’s a bit of a mess out there and we’ll see how they turn out.”

Crops Pull Through Despite Weather Hurdles – Harvest is mostly wrapped up in southwestern North Dakota. Dekalb Asgrow Technical Agronomist Cody Oswald harvest conditions were favorable. “We had a few rain delays in there. The soybeans slowed everything down with green stems. The rain delays were welcomed for the soil recharge.” Farmers are mostly satisfied with the crop considering the drought stress most of the crop was under. “There’s been positive surprises and scenarios in-line with what growers have been expecting. As a whole, some of the heat we had in July and August, it’s amazing these crops can pull through.”

A Tight Situation – It’s been one of the more difficult years for spring wheat and durum production, due to the ongoing drought conditions. Depending on the area, North Dakota Wheat Commission Market Development and Research Manager Erica Olson says production dropped 40 to 50 percent. “We are looking at a tight situation. Growers and buyers are looking ahead to next year and hoping there will be a larger crop.” When it comes to 2022 planting intentions, northern farmers indicate they’ll be sticking to their regular crop rotation. “Durum prices are really high. You’d think that would garner more acres, but not everyone is looking at it that way. There’s a lot of crop choices and the dryness is a concern. We don’t know what the winter will look like. The last issue is the price and availability of inputs in the spring.”

Durum Growers Reflect on 2021 Growing Season – The U.S. Durum Growers Association’s Crop Outlook and International Durum Forum happened this past week in Minot, North Dakota. Association First Vice President and Portal, North Dakota farmer Jordon Hawbaker said growers took a look back at 2021 durum production. The significant reduction in durum acreage and yield will impact consumers. “It’s likely we’ll see increased pasta prices due to the current crop prices,” said Hawbaker. “We’re sitting at $16 and we’ve been at that level awhile. In the next three to five months, I expect a slight increase.” Hawbaker didn’t have a bad year for durum production. “I was in a small pocket where we caught timely rains. We pulled out an average durum crop. All around us, the conditions were dry.”

Winter Weather is Here – The first winter weather system of the fall will halt any remaining harvest in the Northern Plains in the short-term. Nutrien Ag Solutions Principal Atmospheric Scientist Eric Snodgrass says the wintery weather will continue on and off through the next week. “It will keep the cold air around.” Farmers in the Midwest made good harvest progress ahead of this storm system. “We made major progress in parts of the Midwest. If there’s still crops in the fields, there will be a few days before we can get back out.”

La Nina Starts to Kick In – La Nina typically brings cooler-than-usual temperatures and more snow for the Northern Plains. World Weather Incorporated Senior Agriculture Meteorologist Drew Lerner expects the cooler than usual temperatures to intensify heading in the last two weeks of November. There is potential for areas of the Northern Plains to have lows close to zero degrees this week. “We’ll certainly see more widespread single digit readings.” Midweek, there’s another chance of snow for the Dakotas and Minnesota following last week’s event. “This snow event is different, because it’s coming from the northwest. We will see snow, but not as great as what we’ve had recently.” Dry conditions improved for many parts of the region this fall, but Lerner is concerned about the areas that haven’t had as much relief going into winter. “We need more frequent moisture in the west.”

An Active Land Market – There is powerful demand for good productive cropland. “For the most part, it is strong to extreme strength, but it is too early to make a blanket assessment on that,” said Kyle Nelson, Farmers National Company. There is a fair amount of farm land on the market and Nelson expects that to continue. Regarding farm rents, the negotiation process has begun sooner than normal. “Some of that is at the request of the tenant in wanting to make sure they have the land locked up as they lock in their inputs which has been chaotic.”

A Win-Win – North Dakota Senator John Hoeven toured the Marathon refinery in Dickinson Tuesday and discussed the company’s joint venture with ADM. When complete, the new soybean crush plant at Spiritwood will supply soybean oil to the Dickinson refinery  for the production of renewable diesel. Hoeven described the partnership between Marathon and ADM as “a win-win” for the state.

NDCGA Welcomes Value-Added Project – The North Dakota Corn Growers Association has issued a statement following the announcement a Chinese company plans to build a corn wet-milling plant in Grand Forks. NDCGA President Rob Hanson said value-added projects, like this, help farmers and are beneficial to the community. Board member Greg Amundson said this is a much-needed investment in the northern Red River Valley. The Fufeng Group plans to utilize 25 million bushels of corn per year. Construction should be complete in 2024 or 2025.

ACSC Shares Reach New Milestone – The latest sale of American Crystal Sugar Company shares was record high. Over 100 shares sold for $4,650 per share. “The highest sale previously was $4,400 since 2012 so we’ve seen a significant price increase this past season.” Red River Land Company President Chris Griffin says growers are optimistic with strong prices and a smooth harvest campaign. “I think everyone’s yields beat expectations and I think a major contributer was the strong 2021 payment.”

Biotech Wheat a Concern to Brazilian Millers – Brazil has approved imports of flour from Argentina that is made with biotech wheat. The Brazilian wheat milling organization is upset and asking for a government review. Market analysts are saying a consumer backlash in South America could result in more interest in U.S. wheat.

China Reconsiders Biotech Policy – The Chinese agriculture ministry is calling for a policy change that could lead to biotech crops being grown commercially being grown in China. China has been involved in biotech research, but has not approved the planting of biotech crops. It’s not clear when the first traits will be approved, but it is possible the Chinese seed industry could be ready to launch within a year.

BSE Confirmed in Brazil – Brazil is investigating two cases of BSE in its cattle herd, but claims contaminated feed is not responsible. China has suspended all beef imports from Brazil and the National Cattlemen’s Beef Association wants the United States to take that same action. In a letter to Agriculture Secretary Tom Vilsack, the NCBA said the U.S. needs to conduct a thorough risk assessment and review Brazil’s veterinary diagnostic procedures.

Line Speeds Allowed to Increase – USDA is allowing nine pork processing plants to operate at faster line speeds. A 20-year pilot program allowed faster line speeds to expand pork packing capacity by 2.5 percent, but that was taken away this summer when a federal court intervened. The North American Meat Institute, which represents major meatpacking companies, said this decision will help ease current supply chain challenges.

EPA Rules Herbicides Affect Endangered Species – The Environmental Protection Agency has determined glyphosate, atrazine and simazine are likely to adversely affect certain species under the Endangered Species Act and their habitats. To be specific, the agency claims nearly 1,700 species and 800 habitats could be impacted. EPA is now delivering its report to the U.S. Fish and Wildlife Service and National Marine Fisheries Service so they can develop their own findings. The American Soybean Association and American Farm Bureau Federation filed a joint statement, saying the EPA failed to use “the best available science” when evaluating these crop protection products.

PEI Seed Potato Imports Suspended – The Canadian Food Inspection Agency is reporting the discovery of potato wart in two fields on Prince Edward Island. While the potatoes did not leave the island, Canada has suspended exports of seed potatoes from the province to the United States. The National Potato Council is asking Canada to voluntarily suspend all potato exports to the U.S. and restrict the movement of potatoes from Prince Edward Island within Canada to prevent disease transmission across the border.

Dry Bean Scene – Minnesota Governor Tim Walz is leading a trade mission to the United Kingdom and Finland through November 19. Northarvest President Eric Samuelson is participating in the trade trip. Hear from Samuelson and Minnesota Agriculture Commissioner Thom Petersen in this week’s Dry Bean Scene on the Red River Farm Network. Listen for the report.

Redistricting Bill Signed in ND – North Dakota Governor Doug Burgum has signed the legislative redistricting bill. With the new plan, each district will have about 16,500 residents. That is 2,000 more people than in the last ten years.

Fewer Rural Districts in North Dakota – North Dakota lawmakers approved a new redistricting map this past week. Representative Mike Brandenburg says North Dakota lost three rural districts. “Changes were made from Devils Lake and Grand Forks down to Jamestown and Valley City, all the way to the South Dakota border. Districts 19, 23, 26 are basically gone. We gained two new districts: in Williams and McKenzie Counties. Fargo also gained a district.”

ND Population Shifts Away from Rural Areas – Changes made in the redistricting process in North Dakota during the special session will impact rural areas. “Some districts changed and numbers shifted. Other districts are going away, being reassigned to others,” said Pete Hanebutt, Director of Public Policy, NDFB. It’s too early to know how this will effect politics for the next full legislative session. “Some of these rural districts were already rivaling the size of New Hampshire. When you start drawing those maps, starting on the outside and working inward, some of those middle districts are growing. That takes away from some rural impacts and votes. I think rural North Dakota will be well represented, in spite of the fact we’re losing ground on numbers.”

ND Lawmakers Reach Agreement on Appropriations – North Dakota lawmakers reached an agreement on how to spend the $1.1 billion in federal COVID relief money. There will be several one-time investments for agriculture and rural-North Dakota. North Dakota Farmers Union Government Relations Director Matt Perdue says there’s $317 million for roads and bridges. “$100 million will go to counties and $17 million will go to townships. That’s a big win to address long-standing issues we have with infrastructure.” Agricultural research will receive more than $8 million. North Dakota’s ethanol plants will receive $21 million in loan forgiveness.

Tax Relief on the Way – North Dakota Governor Doug Burgum has signed legislation providing $211 million in income tax relief over the next two years. The law provides an income tax credit of up to $350 per year for individual income taxpayers or $700 per year for a married or joint return for the 2021 and 2022 tax years.

SD Corn Comments – In early November, Congress passed a bipartisan infrastructure bill. Learn more about what’s included for agriculture in this week’s South Dakota Corn Comments.

SD Lawmakers Approve New Redistricting Map – South Dakota lawmakers reached an agreement on redistricting during a special session last week. South Dakota Farmers Union Lobbyist Mitch Richter says Rapid City and Sioux Falls are becoming more urban. “They took some of the rural districts out of those two communities and made their own rural district. At the end of the day, I think they did a good job,” says Richter. “Aberdeen will also now have two districts. Sioux Falls and Rapid City will have six and five. Then, some rural districts got larger.” Redistricting will go into effect for the 2022 elections. Take a look at the 2022 map.

Deere Pledges Work Will Continue During Strike – The strike at John Deere plants across the country has been underway for a month. Strike or no strike, Deere’s chief technology officer Jahmy Hindman told Fox Business News the company is considering all options to serve its farm customers during the busy planting season. The latest offer to the union was a 30 percent pay increase over the six year term on the contract and increased retirement benefits. Union workers have twice rejected Deere’s contract offers.

Cargill Beef Plant Faces Labor Issue – Union workers at the Cargill beef processing plant in Alberta have filed an official strike notice of December 6th. Negotiations are continuing and Cargill officials have said the wages in the latest proposal are well above the industry standard. The High River, Alberta plant is the largest beef plant in Canada representing 40 percent of the beef processing capacity.

Label Violation Penalized by EPA – The Environmental Protection Agency has levied its first fine for dicamba label violations. Nutrien Ag Solutions is facing a fine of $668,000 for applying dicamba in a way that was not consistent with the label. This happened on several farms in Kansas in 2020.

3Q Sales Up 26 Percent for Bayer CropScience – Bayer CropScience is reporting a significant increase in third quarter sales and earnings. Sales were up 26 percent, helped by an increase in volume and prices. Growth was strong in the North American herbicide and corn seed/traits division. Bayer CFO Wolfgang Nickl said the price of glyphosate was raised due to the reduction in available product and further price increases are anticipated.

Financials Hurt by Labor Shortages and Commodity Prices – SunOpta finished the third quarter with a loss of $3.8 million. That compares to a loss of $2.8 million in the same period last year. Sales of oat-based and other plant-based beverages were strong, but the cost of raw materials and labor shortages offset those gains.

Canola Minute – NDSU Extension Entomologist Jan Knodel has more details on a new seed treatment for canola. Hear more details in this week’s Canola Minute.

Beyond Meat Revenues Decline – Beyond Meat had a net loss of $54.8 million in the third quarter. U.S. retail sales for the plant-based protein maker were down 16 percent and foodservices declined seven percent. That follows record revenue in the second quarter.

Tyson Looks to Automation – Tyson Foods is reporting fiscal fourth quarter net income of $1.36 billion on sales of $12.81 billion. That compare to last year’s fourth quarter income of $654 million on sales of $11.46 billion. In a statement, Tyson CEO Donnie King says Tyson Foods is launching a new productivity program designed to deliver more than $1 billion in annual savings by the end of 2024. King says the program will focus on automation and operations.

Deadline Announced to File Claims Against Bankrupt Pipeline Foods – The Minnesota Department of Agriculture is advising farmers who did business with Pipeline Foods to submit a bond claim by January 4. The Fridley-based company filed for bankruptcy in July. Pipeline Foods focused on non-GMO and organic grains.

Dot’s Pretzels Sold for $1.2 Billion – Hershey has purchased Velva, North Dakota-based Dot’s Pretzels and Pretzels Inc., an Indiana-based manufacturer of Dot’s Pretzels that operates three plants. The $1.2 billion deal is expected to close later this year. Dorothy Henke made her first batch of Dot’s Homestyle Pretzels in her home kitchen in 2011. The brand grew from a Midwest favorite to become the fastest growing pretzel brand nationwide.

Algae Group Presents Product of the Year Award to PhycoTerra ST – Heliae Agriculture’s new seed treatment, PhycoTerra ST, has recieved the product of the year award from the Algae Biomass Organization. PhycoTerra ST is designed to target and feed the microbes that live on and around seeds. Heliae Agriculture is an algal tech company specializing in regenerative agriculture solutions.

Corn Matters – The Minnesota Corn Growers Association is taking applications for educational scholarships. Minnesota Corn Growers Association board member Jim Canton has more in the latest Corn Matters.

 

Fueling Your Farm – The North Dakota Soybean Council is hosting 12 Fueling Your Farm Workshops statewide. Fuel consultant, MEG Corporation, will provide information about diesel fuel, biodiesel and renewable diesel. NDSC Director of Market Development Jena Bjertness says the goal is to increase farmer confidence in the use of biodiesel. “This fuel is owned by farmers and in many cases it is not used because there was a less-than-favorable experience in the past. We want to educate farmers so they can use this fuel that brings money back to their farm.” With North Dakota taking a leadership role in the development of renewable diesel, these meetings will offer more information about this product. “Renewable diesel is chemically identical to petroleum diesel. That is why states like California with the low carbon fuel standard buying up essentially all of that renewable diesel,” said Bjertness. “They’re willing to pay a premium because it is the ‘easy button’ and it can be used exactly like petroleum diesel, but it is more renewable.” The first series of meetings will be November 29 in Wahpeton, November 30 in Oakes and December 1 in Lisbon.

Fighting Hunger – The Minnesota Pork Board has donated 6,000 pounds of ground pork to Second Harvest Heartland. That’s the largest hunger relief organization in the Upper Midwest. The two Minnesota-based organizations have been working together to provide hunger relief for more than ten years.

Geared to Give – Kubota has awarded five farmer veterans with a free one-year lease of a tractor. The Midwest winner is 1st Lt. Ryan Blumhagen who served in the North Dakota Army National Guard for more than ten years and operates a 2,100 acre farm at Drake. The Geared to Give program honors the award winners for their past military service and continued service to their communities through farming.

Santos to Suceed Condon at Bayer – Bayer President Liam Condon will step down at the end of the year. Condon will be succeeded by Rodrigo Santos, who is now the chief operating officer of the crop science division. Condon has two more years on his contract. No reason was given for the departure, but a company statement praised Condon for the launch of the crop science division.

Leadership Changes Coming to JBS USA – In January, Tim Schellpeper will take over as the CEO of JBS USA. Schellpeper succeeds Andre Nogueira who has been promoted to be the co-president of JBS’s North American operations. Schellpeper currently leads the JBS fed beef division in Greeley, Colorado. Previously, Schellpeper was the CEO of Maschhoff Family Foods in Illinois.

Minnesotan Appointed to Federal Research Board – USDA appointed 14 members to the National Agricultural Research, Extension, Education and Economics Advisory Board. That list includes Dr. Dana Allen-Tully, the dairy and nutrition manager for Gar-Lin Dairy Farm in Eyota, Minnesota. Dr. Allen-Tully also serves as the treasurer of the Minnesota Corn Growers Association.

ACE Promotes Muckenhirn to VP of Public Affairs – American Coaliton for Ethanol Communications Director Katie Muckenhirn has taken on the new role for the organization as the vice president of public affairs. Muckenhirn will continue to manage ACE’s media relations, but will also participate in public policy and event planning work. Muckenhirn has been on the ACE staff since 2017. A full-time communications manager is being sought.

USMEF Elects New Officer Team – The U.S. Meat Export Federation has elected Mark Swanson as its new chair. Swanson is the CEO for Birko Corporation of Colorado. Dean Meyer, who is a corn, soybean and livestock producer at Rock Rapids, Iowa is chair-elect. The vice chair is Edgerton, Minnesota pork producer Randy Spronk. During the meeting, National Pork Producers Council CEO Neil Dierks received the USMEF Distinguished Service Award.

AgriGrowth Adds New Directors – The Minnesota AgriGrowth Council has welcomed five new directors to its board. They are Greg Howard of Christensen Farms, Blake Holden of Holden Farms, Hillary Myers of Cargill, Howard Olson of AgCountry Farm Credit Services and Michael Yost of Yost Farms. Chris Cook of Syngenta, Jeff Grev of Hormel, Peter Miller of Stantec and Rob Orsten of Orsten Turkeys were elected to another term. Retiring board members are Kristin Weeks Duncanson of Highland Family Farms, Adam Birr of the Minnesota Corn Growers Association, Marc Knisley of AgCountry Farm Credit Services, Glen Stolt of Christensen Farms and Teresa Warne of American Crystal Sugar Company.

Northern Soy Marketing Announces Staff Promotion – Katelyn Engquist is the new market development program manager for Northern Soy Marketing. Engquist takes on this role after serving as a communications specialist for NSM and Ag Management Solutions, which oversees NSM’s daily operations. Northern Soy Marketing advocates for northern-grown soybeans from Minnesota, Nebraska, North Dakota and South Dakota.

Bernhardson to Receive Agribusiness Award – Longtime University of Minnesota Extension Agent Eddie Bernhardson will receive the 2021 Agribusiness Award during the NDSU Harvest Bowl program November 19. Bernhardson is a past chair of the Harvest Bowl and is credited with elevating the event to celebrate agriculture throughout the region.

Paap Reflects on 16 Years as MFBF President – After 16 years as president of the Minnesota Farm Bureau Federation, Kevin Paap is not seeking reelection. During his time as president, Paap nurtured agriculture’s next generation and brought many young farmers into leadership. “In agriculture, sustainability is always our goal,” Paap told RRFN. “On the family farm or farm organizations, it is that generational sustainability and that’s why when you’re in the Minnesota Farm Bureau office you see that 4-H and FFA flag. Not only are they our next leaders in Farm Bureau, but our next leaders in our community.” Paap also credits Farm Bureau for giving him an opportunity to work with a lot of great people. There are two candidates hoping to succeed Paap as Minnesota Farm Bureau presiden; Shayne Isane of Roseau County and Dan Glessing of Wright County.

Last Week’s Trivia- Burger King has the Whopper, Ch’King and Chicken Fries on its menu. Heather Hely of HC International wins our weekly trivia challenge. Congrats, Heather. Kevin Praska of Stone’s Mobile Radio, Norm Groot of Monterey County Farm Bureau, Bob Lebacken of RML Trading and Jordan Hulm of Farm Credit Services of Mandan earn runner-up honors. The ‘first 20’ rounds out with Twyla Wulf of Clear Springs Cattle Company, Jim Altringer of CHS Dakota Plains Ag, Dianne Bettin of LB Pork, Pete Neal of Bayer, Stephanie Larson of Rose-Oak British Whites, Ron Claussen of Ag Media Research, Danny Pinske of ProAg Farmers Cooperative, Cokato farmer Harlan Anderson, Dennis Duvall of Dakota Environmental, Ron Dvergsten of Northland Farm Business Management, Shell Valley farmer Steve Grenier, Alma farmer Curtis Noll, Harvey farmer Bill Ongstad and Dave Gehrtz of Proseed. 

This Week’s Trivia- Jeff Probst is hosting his 41st season of a reality television show. What is the name of this show? Send your answer to don@rrfn.com. 

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

RRFN Affiliate Stations
Aberdeen, SD – 105.5 FM Ada, MN – 106.5 FM Bagley, MN – 96.7 FM Bemidji, MN – 1300 AM
Bismarck, ND – 1270 AM Casselton, ND – 103.9 FM Cavalier, ND – 105.1 FM Crookston, MN – 1260 AM
Devils Lake, ND – 103.5 FM Fergus Falls, MN – 1250 AM Fosston, MN – 1480 AM Glenwood, MN – 107.1 FM
Grafton, ND – 1340 AM Jamestown, ND – 600 AM Langdon, ND – 1080 AM Mahnomen, MN – 101.5 FM
Mayville, ND – 105.5 FM Roseau, MN – 102.1 FM Rugby, ND – 1450 AM Thief River Falls, MN – 1460 AM
Wadena, MN – 920 AM Warroad, MN – 92.5 FM Worthington, MN – 730 AM  

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.

  • Follow RRFN on
    • Facebook
    • Twitter
    • LinkedIn
Login

Please Login

Lost Password?
Comment

Leave a comment

Lost Password

Please enter your email and a password retrieval code will be sent.



New Password

Please enter your code and a new password.