Seed Packages still coming into Minnesota

Seed packages that Minnesotans didn’t order are still coming into the state in steady numbers from China. Many of the seeds are non-invasive species. However, that doesn’t mean they can’t carry some kind of a pest or disease with them.

This is what a typical package of the mystery seeds with a Chinese postmark look like. (Photo from the MDA)

Reports are still coming into the Minnesota Department of Agriculture (MDA) that say citizens continue getting unsolicited seed packages in the mail. To date, over 700 Minnesotans found the seeds in their mailboxes and reported it to the MDA.

The packages contain a variety of seeds. Seed analysts at the MDA Laboratory say some of the seeds are cosmos, radish, mung bean, juniper, basil, cucurbit, and zinnia. Seeds like these are not invasive plants. However, they can carry disease and pests can hide in packaging. The unsolicited seeds likely haven’t gone through proper inspection channels to enter the country legally. The labels typically say something like jewelry is inside.

The MDA is working with the United States Department of Agriculture (USDA) on the issue. Minnesota is sending all the collected seeds to the USDA for additional identification and destruction. Federal officials are investigating the source of the seeds, and the USDA is currently referring to the situation as a “brushing scam.” In that type of scam, people get unsolicited items from a seller who then posts false customer reviews to boost sales. Their latest statement on the seed packages can be found here.

Those receiving the packages have indicated they either never made an online seed order or they purchased seeds online earlier in the year but never got them. Their order information indicates it is still unfulfilled.

Minnesotans should take the following steps to deal with unsolicited packages of seeds.

  • Save the seeds and the package they came in, including the mailing label.
  • Do not open the seed packets.
  • Do not plant any of the seeds.
  • In case the package is already open, place all materials (seeds and packaging) into a tightly-sealed plastic bag.
  • Contact the MDA through this form (mda.state.mn.us/unlabeledseeds).

If you have planted the seeds you received, please destroy any plants that have germinated. Plants and soil aren’t eligible for most trash collection. However, in this unusual situation, pull up the plants, double bag them and the surrounding soil, and dispose of everything in the trash. Do not compost the seeds, plants, or soil. Please notify the MDA if you have disposed of any seeds or plants through our contact form.

You should always buy seeds from a reputable source. Minnesota law says all seeds sold in the state need correct labels. People selling seeds need to have a permit from the MDA. You can look up seed permit holders on the MDA website. Never plant unlabeled or unknown seeds.

Mystery Seeds Entering the U.S. from China

“Mystery Seeds.” The first thing that came to mind was a possible title for a “Scooby-Doo” episode. Just when you thought 2020 couldn’t get any stranger, people in at least 10 states have received packages with a Chinese postmark and a label that says some kind of jewelry is inside. However, it’s a different story after they open the box.

What these Americans are receiving is an unsolicited package of seeds. States like Minnesota, Louisiana, Utah, Virginia, Kentucky, Washington state, and others are reporting similar situations. One thing to get out of the way right away is that under no circumstances should anyone plant those seeds.

Mystery seeds
One example of mystery seeds that were sent to a Minnesotan recently. (Photo from the Minnesota Department of Ag)

“We’re uncertain what those seeds may be and why people are receiving packages they didn’t send for,” says Denise Thiede, Seed Unit Supervisor with the Minnesota Department of Agriculture. “Until we know more, we’re encouraging people to contact us because of the risk those seeds may pose to Minnesota agriculture and our natural landscapes.”

Washington state just recorded its first known case of an unsolicited seed shipment late last week. I talked with Karla Salp, the Public Engagement Specialist with the Washington State Department of Agriculture. Not one but two Washington residents picked up seeds in the mail they didn’t order from China.

“One of those residents sent us a picture of the seeds so we could see what they were talking about,” Salp says. “We thought they looked a lot like some kind of citrus seeds, while the labels said the packages contained some sort of jewelry.

More “Mystery Seeds” from China. (Photo from the Minnesota Department of Agriculture)

“Initially, we had been telling folks who received the seeds to report it to USDA,” she said. “They handle reports of agricultural smuggling. “The social media post advising people to contact USDA has been seen by over 30 million people. We’re sure that USDA knows all about the problem now.”

So, the Washington Ag Department is asking their residents to put the seeds in a Ziploc bag and put them in their regular trash. Do not putt them in something like a compost pile. “Most of the packages have another package within them,” Salp says. “The seeds are often in a second package inside the shipping container. Residents need to leave the seeds inside the sealed container. Do not open them up, and definitely do not plant them.”

Each state will have its own directions for residents who receive the seeds through the mail. The Minnesota Ag Department says don’t throw away the package or its contents and do not plant the seeds,. After that, contact the Arrest the Pest line at 888-545-6684. They’ll need your name, contact info, and the date you received the package.

Minnesota officials will then coordinate shipping the package and its contents to the MDA Seed Program. The MDA is currently working with the USDA’s Smuggling Interdiction and Trade Compliance Program on identifying and destroying the seeds.

Salp says putting unknown seeds in U.S. soil could be problematic.

“It could be a combination of any of those three reasons I just listed,” she added. “It could be an invasive species that also carries a specific plant disease. These are some of the serious reasons that things like this need to go through the proper channels at the border if they’re a plant-based product.”

The USDA is working with federal and state agencies to investigate these unsolicited packages.

“We are also working with various online retailers to address some of these issues as well,” Salp said.

Hog farmers are hurting and asking for help

Hog farmers are hurting.

COVID-19 has put a serious crimp in the U.S. economy and nowhere is that more evident than in agriculture. More specifically, American hog farmers are struggling to stay on farms because they’re having trouble getting their hogs to market. Big trouble, in fact. Hogs are so far backed up on the farm that producers may have a tough decision to make in the not-too-distant future.

Those of us in the agricultural media don’t often hear the word “euthanize” in press conferences. Unfortunately, it came up multiple times during a press conference hosted by the National Pork Producers Council. As prices for hogs have plummeted, Howard ‘A.V.’ Roth, NPPC President, says things are as bad as they’ve ever been after several years of a depressed farm economy.

hog farmers
Hog farmers are hurting and the “other white meat industry” could be in trouble. COVID-19 has only accelerated a price decline that began almost two years ago during the U.S.-China trade war. Pork farmers are reaching out and asking for help. (Photo from the duluthnewstribune.com)

“We are now an ag sector in dire crisis,” Roth said to reporters. “Farmers are already exiting the business and the damage will only intensify without direct intervention from the federal government.”

Speaking as a hog producer himself, Roth says the pork industry has a list of several things it needs in order to help keep as many farmers in operation as possible. The first item on their wish list would clear out a tremendous amount of stored pork supplies as quickly as possible, plus it would get food into the hands of people who need it.

“Over $1 billion in pork purchases by USDA to clear out a backed-up meat supply, while supplementing food bank programs around the country facing increased demand for food as unemployment continues to rise,” Roth said. “These purchases should come from packaged pork that was intended for restaurants and other segments of the foodservice market.”

In all the years I’ve covered agriculture, I can tell you from firsthand experience that farmers want to make their living from the markets, not government handouts. How desperate are pork farmers to stay in business?

“We need direct payments to producers without eligibility restrictions,” Roth says.

They’re also hoping to see China remove retaliatory tariffs on U.S. pork that are still in place despite the Phase One trade agreement between the two countries. Roth points out that it’s no secret China needs a reliable source of affordable pork after their herds were decimated by the African Swine Fever virus.

“Removing those damaging tariffs would get us back on a level playing field with our international competitors,” Roth says. “Dr. Dermot Hayes, an economist with Iowa State University, says removing those tariffs would allow U.S. exports to China to more than double their current volume.”

How badly does China need pork, one of the most preferred proteins in the Asian diet? Let’s just say that Chinese pork producers, who can’t ever hope to meet their country’s domestic demand, are enjoying some pretty high prices for their products right now.

“While Chinese producers are enjoying record pork values, U.S. producers are facing a dire decision on our farms,” Roth said. “Sadly, it’s true. Without significant assistance, euthanizing is a question that’s going to begin coming up on our farms.

“Let me be the first to say, as a pork producer, we care about our animals,” he added. “The last thing we ever want to do is euthanize even one animal. We’re going to do everything in our power to make sure that doesn’t happen.”

Producers may be able to at least push that decision back somewhat, thanks to a recent decision by the Environmental Protection Agency. Michael Formica, Assistant Vice President of Domestic Affairs and Counsel at NPPC, says hog housing restrictions have been temporarily relaxed.

“We reached out to EPA to ensure that if we were ever in a situation like the one we face now, producers would have an option to hold animals on their farm,” Formica said. “All of the farms are permitted to hold a certain number of animals. If they exceed those numbers, they have to go through new permitting.

“We asked EPA for a temporary waiver of the thresholds during the crisis we’re facing,” Formica said, “and thankfully, they granted that request a couple of weeks ago. That’s a tool that many farmers can use to hold animals on their farms while additional animals come through the pipeline.”

He says it’s important to point out that’s an advantage for farmers only if they have adequate additional space. If the backup continues indefinitely, they will run out of space and that’s when they have to start culling otherwise healthy animals from their herds, simply because there won’t be enough space to take care of them.

Why is it all piling up on hog farmers so quickly? Nick Giordano, Vice President of Global Government Affairs and Counsel for NPPC, says hog producers were the first to be hit hard by the trade war with China.

“Hog farmers were there at the tip of the Chinese retaliation spear,” he said. “Trade retaliation from two key markets, Mexico and China, in 2018 and 2019, took $20 off the prices that producers received for every hog.

‘Unlike a lot of the other segments in our economy that came into the COVID-19 outbreak with record profits and a full head of steam, our producers were already hurting. This has made a bad financial situation infinitely worse.”

How far have things fallen across the industry? Iowa State’s Dr. Hayes says in just one month, from March 10 to April 10, the pork industry has lost $5 billion in value. Something has to change.

Coronavirus headlines disrupt commodities

Here’s the complete conversation with Arlan Suderman of INTL FCStone on the commodity markets reaction to the coronavirus outbreak.

Coronavirus headlines and the commodity markets. It’s been a while since we’ve seen the commodity markets this reactive to news headlines on an almost daily basis. While it’s not unheard of, one commodity expert says it’s been over a decade since the markets have been hit this hard by the news. Arlan Suderman is the Chief Commodities Analyst for INTL FCStone, talks about why the news coronavirus headlines seem to be playing havoc in the commodity markets.

“I think that’s a question a lot of people have these days,” Suderman says. “It’s a valid point to discuss.

Coronavirus
Arlan Suderman, Chief Commodities Analyst at INTL FCStone says the commodity markets have been hit hard by news reports surrounding the coronavirus, as well as the resulting “fear outbreak” from people all over the world.

“I was initially downplaying the market reaction in January,” he recalled, “before doing some research at the end of that month. This is the type of virus that’s going to trigger a lot of fear in people. When you have that much fear, the fear of the coronavirus headlines will be worse than the threat of the virus itself.”

He points out that when people get afraid, they stay home, they don’t travel, and they don’t go out in public as much. That’s been the case in China as everywhere the disease has hotspot outbreaks, everybody stays home.

“Shanghai, a city of millions of people, is now a ghost town,” Suderman said. “Now we’re seeing pictures of that in lots of other places, including Italy.

“When people stay home and don’t go out, they tend to consume less food,” he added. “That includes consuming less meat and a lot more starches. Overall, it does tend to change consumption patterns a lot.”

People also consume less energy in these situations as they aren’t driving a lot while airlines are also canceling flights as people don’t want to travel. Less consumption in the energy markets hurts the biofuels markets as well.

Even things like shipping commodities get much more complicated as people are staying home, thanks to the coronavirus headlines. That’s been the case in China and is becoming prevalent in other countries too.

“People didn’t show up to work,” he said. “Ports become congested, ships don’t get unloaded, and shipping slows way down. That’s lost demand you likely don’t get back. You may get some of it back, but not all.

Grain Markets put 2019 in the rearview mirror

Here’s the full conversation with Joe Vaclavik of Standard Grain in Chicago. You can download it on your computer by clicking on the three dots on the right side of the player. Play it here on your mobile device.
Grain Markets
Joe Vaclavik is the founder and president of Standard Grain in Chicago. He took a look at 2019 in the grain markets and said the challenges just never let up over the entire length of the calendar. (Photo from Twitter.com)

Grain Markets officially bid 2019 a not-so-fond adieu. Like most other segments of American agriculture, grain farmers are more than happy to put 2019 in the past. Joe Vaclavik, founder and president of Standard Grains in Chicago, says last year didn’t start off well in the grain markets and it just kept going for the next 12 months.

“We had a pretty comfortable, if not burdensome supply situation entering the calendar year, so, the calendar year kind of began similar to what we’ve seen the last two, three, four years, a comfortable supply-demand situation, not anything terribly tight. Low prices, farmers not making a ton of money, you got the trade war going on, a lot of overall negative factors I would say to start the year.”

He says the spring is when things began to get “interesting.”

“Both in the markets and the weather. We basically sold the markets off until about that May time frame, that I think traders started to realize that we had some serious weather problems. Wet weather, cold weather, planting delays continued, and typically we are always told the crop’s always going to be planted, and planting delays are not a cause for concern.”

However, as the spring continued, things turned more serious in the markets.

“Planting delays turned into a major concern. There was a point in time in late May into maybe the mid part of June where we just had no clue what type of production was possible, and out of that, we had a very significant crop scare rally in the corn market and in the soybean market, to a lesser extent.”

Farmers continued to plant corn long past what would be a normal planting date. Vaclavik says the market was rallying as farmers continued to plant, even into early July in a few locations. He says the market peaked in June because it bought a “whole bunch of corn acres” that wouldn’t have been there otherwise.

Vaclavik says farmers faced challenges from a weather standpoint, logistics, and from a demand standpoint with trade challenges in 2019. With all that stacked against them, the question is how much grain U.S. farmers produced last year. Vaclavik says the answer depends on who you ask.

“A lot of people think that the numbers USDA has put out are just not achievable given the late planting, the wet spring, the late harvest, so there’s still some debate out there. I’m not one to tell you with any degree of certainty that we know for sure what the crop is, and we’ve got this big report on January 10, which is the final crop production report, and I suppose if USDA is going to make any sort of sweeping adjustment, it probably comes on that date.”

Again, Joe Vaclavik is the president of Standard Grains in Chicago.

Agricultural trade opportunities are still out there

Here’s the podcast with Jeremy Miller. If you want to download it for later, go ahead and click on the three dots on the right side of the player and hit download.

Agricultural Trade is a sore topic of conversation these days. The agricultural sector in Minnesota and around the country has been struggling for more than a year due in large part to trade disputes with other nations, including the biggest one with China. However, there is some good news out there in international market opportunities for Minnesota farmers. District 28 Republican Senator Jeremy Miller recently took part in an overseas trade mission to Taiwan July 21-26 and says there are opportunities out there for Minnesota farmers to find markets for their commodities.

agricultural trade
Minnesota State Senator Jeremy Miller of District 28 got to see firsthand that there are still agricultural trade opportunities overseas for Minnesota farmers, thanks to a recent trade mission to Taiwan. (Contributed photo)

“A representative from the Taipei Economic and Cultural Office in Chicago reached out to me earlier this year about leading a multi-state, bipartisan legislative leaders’ delegation to Taiwan,” he recalled. “Before we go any further, people have asked who paid for the trip. I want to make it clear that the trip was paid for by Taiwan’s Ministry of Foreign Affairs. The whole purpose of the trip was to develop relationships between the United States of America, specifically Minnesota, and partners in Taiwan.”

It was the second trip Miller has taken overseas, with the first one taking place in South Korea back in 2011. He said the number one focus of these trips is to “meet people,” with the number two focus of “looking at opportunities.” The third and most important focus of the trip is “developing relationships” to see what kinds of business dealings can evolve in the future.

“The potential is there for a lot of different relationships between Minnesota and Taiwan,” he said. “By far, the biggest opportunity I see in Taiwan is for agricultural trade. Minnesota already exports a good number of crops, especially soybeans, to Taiwan. I think there’s even more opportunity there, whether it be for corn, more soybeans, and especially for pork.”

Miller looked into the numbers and found that Minnesota exported about $413 million worth of goods to Taiwan in 2018. However, that number is likely to go higher. “Last year, there was a agricultural trade mission to Taiwan that both Minnesota and Iowa took part in,” he recalled. “On that trip, Taiwan signed a $1.5 billion-dollar deal to buy 3.9 million metric tons of soybeans from both Minnesota and Iowa before 2021.

“What I’m driving at is there are even more opportunities for Minnesota and Taiwan to increase the amount of business done,” Miller said. “But, it comes down to keep lines of communication open and building on those relationships once they’re established.”

Markets Expert Talks Trade War, USDA reports

Markets occasionally confuse me. However, one part of a career in journalism/broadcasting that I really enjoy is calling people who can educate me on things I really don’t have much expertise in. The older I get, the more fun it is to learn (and try) new things, but I digress. I was working on an assignment with the National Association of Farm Broadcasting the other day and had to find out how the trade dispute between the U.S. and China is affecting commodity markets.

Markets
Mike Zuzolo of Global Commodity Analytics in Atchison, Kansas, has been analyzing markets for 2.5 decades. He talks on the podcast about the markets reacting to the trade war between the U.S. and China, as well as the pending USDA reports coming out on Monday, August 12. (photo from YouTube.com)

Well, here’s the thing. Commodity markets are not my area of expertise, so I called up Mike Zuzolo of Global Commodity Analytics and Consulting in Atchison, Kansas. He’s been in the markets for 2.5 decades so if you have a question, he’s the guy that can answer it.

As a farm broadcaster/editor, I was curious about how the China announcement that they wouldn’t be buying any American farm products right now was affecting the markets. Obviously, the effect wouldn’t be a positive one. However, as you’ll hear in the conversation, it could have been even worse.

And believe me, before we progress any further I need to stress that no one is saying things aren’t bad right now in the agricultural sector. I wanted to find out what the market reaction was to the announcement from China. Mike said the key reaction market reaction took place in the currency and stock markets.

“Quite frankly, Chad, I think this is maybe one of the few glimmers of good news, or potentially supportive news, for the commodity markets,” he said. “I think we’ve done a fairly good job in the markets of pricing in a good portion of the end result of these trade frictions turning into the beginnings of a trade war. It’s going to be playing out in the currency markets as we go forward.

“The net result is the commodity markets didn’t react as negatively as they could, simply because the strength of the U.S. dollar was dropping,” Zuzolo said. “When the dollar goes down, it makes our goods cheaper to export. At the same time when we had the news out of China, the gold market was making fresh, 6.5-year highs. That too is commodity supportive.”

Here’s the full conversation with Mike Zuzolo.

USSEC Initiative Helping Move Extra Soybeans

It’s well-known that the trade dispute between the United States and China has hit the U.S. soybean industry hard. China, once the biggest buyer of U.S. soybeans, is no longer purchasing large volumes of beans. That means a lot of the product needs to find new markets. The U.S. Soybean Export Council is working on a new initiative called “What It Takes,” which is designed to help deal with the backlog of soybeans that need to be shipped and sold.

Soybeans
The US Soybean Export Council has developed a new initiative called “What It Takes.” CEO Jim Sutter says the initiative is designed to help get some of the backlog of U.S. soybeans into other markets than China, which is in a trade dispute with the U.S. (photo from youtube.com)

“When the tariff dispute cranked up in April, we were all hopeful that it would be a short-term thing,” said USSEC CEO Jim Sutter. “While it could change at any time, we’d better plan for it to be a longer-term ordeal. It’s made even more challenging by the complex issues between the two countries. There’s more than soybeans involved, with a lot at stake.”

“It was a huge shock to what our industry has gotten used to in terms of marketing plans,” Sutter said. “Our team has been very busy working with exporters. We’re trying to help them in any market where they might have potential customers. We’re also working with importers around the world, telling them about the attributes and possibilities that U.S. soy holds for them.”

Sutter said most overseas markets have purchased at least some U.S. soybeans. There are just a few that haven’t yet. U.S. beans are priced very competitively around the world right now, making them a more affordable option than in past years.

Soybeans have really backed up in the Pacific Northwest. Exporters there typically sell most of their beans to China. USSEC is focusing on encouraging potential customers to come to the PNW as they look for soybeans, and they’ve been successful at it. Taiwan has purchased soybeans in the Pacific Northwest for the first time in 15 years.

“We’re doing a lot of work in other Asian countries, which we think would be a logical destination for those beans from the Pacific Northwest.”

Here’s the complete conversation:

Here’s a refresher on just how USSEC helps improve things for soybean farmers: