Farm Safety Net Programs See Record Signup

Farm safety net programs saw a record signup this go-around.

Producers signed a record 1.77 million contracts for the U.S. Department of Agriculture’s Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2019 crop year, which is more than 107 percent of the total farm safety net contracts signed compared with a 5-year average. USDA also reminds producers that June 30 is the deadline to enroll in ARC and PLC for the 2020 crop year.

farm safety net
2019 farm safety net program signups set a record. With the trade wars, weather problems,
and prices in the dumper, is anyone surprised by that? (Photo from agweb.com)

“Producers for several years have experienced low commodity prices, a volatile trade environment and catastrophic natural disasters,” said Richard Fordyce, Administrator of USDA’s Farm Service Agency (FSA). “Farmers looking to mitigate these risks recognize that ARC and PLC provide the financial protections they need to weather substantial drops in crop prices or revenues.”

Producers interested in enrolling for farm safety net programs in 2020 should contact their FSA county office. Producers must enroll by June 30 and make their one-time update to PLC payment yields by September 30.

FSA attributes the significant participation in the 2019 crop year ARC and PLC programs to increased producer interest in the programs under the 2018 Farm Bill and to an increase in eligible farms because of the selling and buying of farms and new opportunities for beginning farmers and military veterans with farms having 10 or fewer base acres. Enrollment for 2019 ended March 16.

USDA Service Centers, including FSA county offices, are open for business by phone only, and field work will continue with appropriate social distancing. While program delivery staff will continue to come into the office, they will be working with producers by phone and using online tools whenever possible. All Service Center visitors wishing to conduct business with the FSA, Natural Resources Conservation Service or any other Service Center agency are required to call their Service Center to schedule a phone appointment. More information can be found at farmers.gov/coronavirus.

For more information on ARC and PLC, download the program fact sheet or the 2014-2018 farm bills comparison fact sheet. Online ARC and PLC election decision tools are available at www.fsa.usda.gov/arc-plc. To locate the nearest USDA Service Center, visit farmers.gov/service-center-locator.

Farm debt mediation period extended in Minnesota

farm debt

Farm debt levels are piling up and it’s getting scarier. Here’s a friendly reminder that the period available for working through some debt challenges has been extended.

The Minnesota Department of Agriculture (MDA) is reminding Minnesota farmers and agricultural lending institutions that the state legislature extended the length of mediation available for farmers in the Farmer-Lender Mediation Program from 90 to 150 days. Minnesota farmers that are in debt can renegotiate, restructure, or resolve farm debt through mandatory Farmer-Lender Mediation. Mandatory mediation means that creditors cannot start a proceeding to collect a farm debt against agricultural property until an offer of mediation has been extended and, if the farmer so chooses, completed.

“I want to make sure that farmers and their ag lending institutions know that the mediation period was extended by 60 days to 150 days,” said Minnesota Agriculture Commissioner Thom Petersen. “This is a critical program for farmers – especially now when COVID-19 has caused the closing of agricultural markets. Having sixty more days to renegotiate or restructure debt will be a huge help in many cases.”

For more information and assistance, farmers can contact the MDA’s Farm Advocate Program at www.mda.state.mn.us/farmadvocates or the University of Minnesota Extension https://extension.umn.edu/get-help/farmer-lender-mediation.

USDA announces new $19 billion aid package for Ag, food

Here’s the entire Friday night press conference with Ag Secretary Sonny Perdue.

U.S. Secretary of Agriculture Sonny Perdue today announced the Coronavirus Food Assistance Program (CFAP). This new U.S. Department of Agriculture (USDA) program will take several actions to assist farmers, ranchers, and consumers in response to the COVID-19 national emergency. President Trump directed USDA to craft this $19 billion immediate relief program to provide critical support to our farmers and ranchers, maintain the integrity of our food supply chain, and ensure every American continues to receive and have access to the food they need. 

USDA
President Donald Trump and Ag Secretary Sonny Perdue announce details regarding a $19 billion aid package for agriculture and the U.S. food supply chain. (photo from flipboard.com)

“During this time of national crisis, President Trump and USDA are standing with our farmers, ranchers, and all citizens to make sure they are taken care of,” Secretary Perdue said. “The American food supply chain had to adapt, and it remains safe, secure, and strong, and we all know that starts with America’s farmers and ranchers. This program will not only provide immediate relief for our farmers and ranchers, but it will also allow for the purchase and distribution of our agricultural abundance to help our fellow Americans in need.” 

CFAP will use the funding and authorities provided in the Coronavirus Aid, Relief, and Economic Security Act (CARES), the Families First Coronavirus Response Act (FFCRA), and other USDA existing authorities. The program includes two major elements to achieve these goals. 

  1. Direct Support to Farmers and Ranchers: The program will provide $16 billion in direct support based on actual losses for agricultural producers where prices and market supply chains have been impacted and will assist producers with additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by COVID-19.  
  2. USDA Purchase and Distribution: USDA will partner with regional and local distributors, whose workforce has been significantly impacted by the closure of many restaurants, hotels, and other food service entities, to purchase $3 billion in fresh produce, dairy, and meat. We will begin with the procurement of an estimated $100 million per month in fresh fruits and vegetables, $100 million per month in a variety of dairy products, and $100 million per month in meat products. The distributors and wholesalers will then provide a pre-approved box of fresh produce, dairy, and meat products to food banks, community and faith based organizations, and other non-profits serving Americans in need.

 On top of these targeted programs USDA will utilize other available funding sources to purchase and distribute food to those in need. 

  • USDA has up to an additional $873.3 million available in Section 32 funding to purchase a variety of agricultural products for distribution to food banks. The use of these funds will be determined by industry requests, USDA agricultural market analysis, and food bank needs. 
  • The FFCRA and CARES Act provided an at least $850 million for food bank administrative costs and USDA food purchases, of which a minimum of $600 million will be designated for food purchases. The use of these funds will be determined by food bank need and product availability.

 Further details regarding eligibility, rates, and other implementation will be released at a later date. Additional Background:USDA has taken action during the COVID-19 national emergency to make sure children and families are fed during a time of school closures and job losses, as well as increase flexibilities and extensions in USDA’s farm programs to ensure the U.S. food supply chain remains safe and secure. Feeding Kids and Families

  • USDA expanded flexibilities and waivers in all 50 states and territories to ensure kids and families who need food can get it during this national emergency.
  • USDA is partnering with the Baylor Collaborative on Hunger and Poverty, McLane Global, PepsiCo, and others to deliver more than 1,000,000 meals a week to students in a limited number of rural schools closed due to COVID-19.
  • USDA authorized Pandemic EBT in Michigan and Rhode Island, a supplemental food purchasing benefit to current SNAP participants and as a new EBT benefit to other eligible households to offset the cost of meals that would have otherwise been consumed at school.
  • USDA expanded an innovative SNAP online grocery purchase pilot program in Arizona and CaliforniaFlorida and Idaho, and DC and North Carolina, in addition to Alabama, Iowa, Nebraska, New York, Oregon and Washington.

Actions to Ensure a Strong Food Supply Chain

Whole of Government Response in Rural America

  • USDA released The COVID-19 Federal Rural Resource Guide, a first-of-its-kind resource for rural leaders looking for federal funding and partnership opportunities to help address this pandemic.
  • USDA opened a second application window (April 14, 2020 to July 13, 2020) for $72 million of funding under the Distance Learning and Telemedicine (DLT) grant program.
  • USDA Rural Development lenders may offer 180-day loan payment deferrals without prior agency approval for Business and Industry Loan Guarantees, Rural Energy for America Program Loan Guarantees, Community Facilities Loan Guarantees, and Water and Waste Disposal Loan Guarantees.
  • USDA will use the $100 million provided for the ReConnect Program in the CARES Act to invest in qualified 100 percent grant projects.

 For all the information on USDA’s work during the COVID-19 pandemic and resources available, please visit https://www.usda.gov/coronavirus. 

Spring weather forecast showing less flooding

Spring weather is never a dull topic of conversation in the Midwest, is it? We went from a fantastic week of mild weather leading up to Easter to a run of below-normal temps and snowfall on Easter Sunday. While it was only a couple inches here in Maple Grove, there were much higher amounts elsewhere. I talked weather with Bryce Anderson of DTN, who says it’s not unusual at all to get snow during April.

“That has certainly happened many times before,” he said. “The heavy snow was certainly unwelcome because it set back farmer fieldwork for a while, probably a week later than they wanted.

This is what spring weather looked like in a good deal of the Central Plains and Midwest when flooding hit farmers hard. The good news in the spring weather forecast this year is the threat of flooding has moderated, depending on where you live. (Photo from curbed.com)

Farmers are certainly chomping at the bit to get spring fieldwork done to get ready for planting. Remember April 15th of 2019 and the big snowstorm that moved through the Midwest? Here on the west side of the Twin Cities, we picked up 17 inches of snow last year. Happy Tax Day, right? However, despite that recent round of spring weather, Anderson doesn’t expect the monumental planting delays we saw last year during one of the roughest springs in recent memory.

Here’s a quick recap of a rough spring in 2019, courtesy of PBS:

“It won’t be a repeat of last year by any means,” he said emphatically. “Despite storm activity that moved through the southwestern and central United States, things were starting to moderate as we headed into the weekend. That colder arctic air we saw come into the Midwest over Easter was very slow in leaving the region, so that’ll also set fieldwork back a bit.”

One area of good news in the spring weather forecast is he’s not as worried about widespread flooding in farm country as he was a month ago. However, the caveat is that it depends on where you live. Still, things have slowed down some on that front.

“It’s not just me saying that either,” Anderson said. “Hydrologists with the Corps of Engineers have said the movement of the higher water throughout the nation’s river systems has been better than they hoped it would be. However, that doesn’t mean we won’t have trouble spots.

“The James River Valley that runs through South Dakota and the Red River Valley in North Dakota and Minnesota are still at flood stage,” he said. “In the Delta, there are streams in some portions of the lower Mississippi River Valley where flooding is still ongoing.”

Unfortunately for farmers and folks in those areas, flooding will likely continue in those areas for some time yet. Anderson did say that there likely aren’t going to be any new flood threats that develop in the spring weather forecast for farm country unless there’s a drastic change in the weather pattern. Before the recent run of cold and snow, farmers have gotten some planting done this spring in the eastern Corn Belt.

“There has been some soybean planting in Illinois and Indiana,” he said. “Growers in the western Corn Belt likely haven’t gotten very busy yet. In other areas of the Delta, corn planting is way behind in states like Mississippi and Arkansas. They likely won’t get a lot done after the recent run of storms and rainfall that recently hit southern areas.

Organic farmers get to give their opinions to MDA

Organic farmers, the Minnesota Department of Agriculture wants to know what’s been on your mind lately. Feels a little like a rhetorical question but let’s go with it. There’s a survey on the way to your mailbox and it’s a great chance to tell the state’s Ag Department wants going on out there on the ground.

organic farmers

The state currently has 800 certified organic operations and they’re all getting a survey in the mail this month. The survey will ask Minnesota’s organic farmers to share both their opinions and experiences in the business these days. The survey will include 27 questions about several important topics, including profitability, production costs and challenges, research needs, marketing, and your overall outlook.

“The insights that organic farmers share helps us to focus programs and resources on areas that will make a difference in their bottom lines,” says Assistant Commissioner Patrice Bailey. “Organic market demand is very strong, and we want to do all we can to help existing and new organic farmers to capitalize on that fact.”

Minnesota’s organi farmers have an opportunity to share their opinions and insights in a survey coming from the Minnesota Department of Agriculture. It’ll land in the mailboxes of the 800 certified operations in the state very soon. (Photo from allianceforscience.cornell.edu.)

Organic products just continue to grow in popularity, and not just in Minnesota. The U.S. organic market hit a new record high in 2018, topping out at $52.5 billion in sales. The 2019 Organic Industry Survey from the Organic Trade Association says that’s up 6.3 percent from the previous year.

If you’re a certified organic farmer that doesn’t see a survey show up in the mailbox, contact MDA’s Organic Specialist Cassie Dahl at 651-201-6134 to get a copy of the survey. It’s your chance to tell the MDA what’s going on in the world of organic farming, as well as a chance to offer some opinions on how things can be even better.

The MDA says the survey results will be available on their website this fall.

H-2A Workers Help from USDA/Dept. of Labor

H-2A workers have been hard to find consistently in agriculture as long as I’ve been covering it, which is the better part of my adult life. I don’t have enough day-to-day experience dealing with this to know why on Earth we can’t seem to figure this out? Any ideas? Please leave a comment and let me know the whole story? And does this news from the USDA and Department of Labor actually help?

U.S. Secretary of Agriculture Sonny Perdue today announced a partnership between the U.S. Department of Agriculture (USDA) and the U.S. Department of Labor (DOL) to help facilitate the identification of foreign and domestic H-2A workers that may be available and eligible to transfer to other U.S. agricultural sector employers to fulfill critical workforce needs within the U.S. under existing regulatory authority during the COVID-19 pandemic. 

H-2A
For as long as I can remember, we’ve been struggling to get enough H-2A workers into the country consistently enough to make sure all our farmers can get their work done. Why can’t we figure this out? (Photo from agnetwest.com)

“Ensuring minimal disruption for our agricultural workforce during these uncertain times is a top priority for this administration,” Secretary Perdue said. “President Trump knows that these H-2A workers are critical to maintaining our food supply and our farmers and ranchers are counting on their ability to work. We will continue to work to make sure our supply chain is impacted as minimally as possible.” 

“American farmers and ranchers are at the frontlines of maintaining the nation’s food supply,” Secretary Scalia said. “In these unprecedented times, it is critical for them to have the workforce they need. This new partnership between USDA and DOL will help support our farmers, ranchers, and American families.” 

Background:USDA and DOL have identified nearly 20,000 H-2A and H-2B certified positions that have expiring contracts in the coming weeks. There will be workers leaving these positions who could be available to transfer to a different employer’s labor certification. The data, available on www.farmers.gov/manage/h2a, includes the number of certified worker positions, the current employer name and contact, attorney/agent name and contact, and the worksite address. This information will be a resource to H-2A employers whose workforce has been delayed because of travel restrictions or visa processing limitations. Employers should be aware that all statutory and regulatory requirements continue to apply. Employers are encouraged to monitor www.travel.state.gov for the latest information and should monitor the relevant Embassy/Consular websites for specific operational information. 

Drones, FAA, and agriculture all trying to fit together

Drones might not be a topic that a lot of non-farm folks would associate with agriculture, but they are becoming a lot more popular on farms across the country. Drones have been a big topic of discussion recently between the Federal Aviation Administration and farm groups like the American Farm Bureau. This is a copy of an article I just saw in their latest email blast.

The Federal Aviation Administration should revamp its drone proposal to provide flexibility to allow farmers and ranchers who cannot access the internet to continue using drones, according to the American Farm Bureau Federation.

America’s farmers and ranchers embrace technology that allows them to be more efficient, economical and environmentally aware. Drones are an important precision agriculture tool they use to manage their crops and livestock and make important business decisions, the organization pointed out in comments to the FAA on its drone-related advanced notice of proposed rulemaking.

“Today’s farmers and ranchers are using precision agricultural devices to make decisions that impact the amount of fertilizer a farmer needs to purchase and apply to the field, the amount of water needed to sustain the crop, and the amount and type of herbicides or pesticides the farmer may need to apply,” Farm Bureau said.

drones
Drones are changing the way farmers do business every day on their operations. (Photo from technologyreview.com)

The two main problems with the proposal are: it would ground many drones that farmers and ranchers currently own that do not meet the rule’s specifications and it would prevent many farmers and ranchers from ever operating a drone because of a lack of access to broadband.

Farm Bureau had several suggestions for improvement.

FAA’s proposal would require drones to connect to the internet and transmit their remote IDs. But on the 29% percent of farms and ranches without access to the internet, this would be impossible. And while Congress, the FCC and USDA have acknowledged this problem and are working to increase connectivity for precision agriculture equipment, the proposal fails to take this challenge into account.

“Requiring drones to connect to the internet and broadcast a signal would remove one of the newest tools in the toolbox for farmers and ranchers during a time when they have already seen a drastic 50% decline in net farm income in the last four years,” Farm Bureau said.

Farm Bureau is recommending an either/or approach that would allow the drone to send a remote ID signal through an internet connection if available or broadcast a signal if the internet is unavailable.

As for the limited remote ID requirement, Farm Bureau reiterated its call for FAA to provide an alternative method for operators to signal their location when the internet is not available. Another option is removing the requirement that the drone must connect to the internet since the drone must operate within 400 feet of the ground station and cannot operate beyond visual-line-of-sight under the limited remote ID requirement.

The proposal’s lack of definitions for “internet” and “sufficient signal strength and coverage” is also problematic.

“In rural areas where internet connections drastically fluctuate, drone operators need clarity on internet connection speeds that qualify for the standard and limited remote ID requirements,” Farm Bureau said.

The group’s final recommendation was that the FAA establish a position on its Drone Advisory Committee for an agriculture, forestry and rangeland representative.

“Farmers offer a unique perspective on their use of drones because they often operate a drone in more remote areas. Many of the concerns included in these comments could have been discussed during DAC meetings if there was representation,” Farm Bureau said.

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.

Hemp license application deadline is March 31

Hemp is being called a “new tool” in farmers’ toolboxes. I’m curious to see what kind of production Minnesota will see during the 2020 growing season. Does anyone have any idea as far as what kind of production we’re looking at this year?

Hemp
The Minnesota Department of Agriculture wants to remind farmers and processors who want to grow and manufacture hemp to apply for a license before the March 31 deadline.

Anyway, those farmers wanting to grow or process the crop in Minnesota in 2020 must apply for a license with the Minnesota Department of Agriculture (MDA) by March 31.

This is the fifth year of the state’s Industrial Hemp Program. Last year, 550 people held licenses to grow or process hemp. Over 7,300 acres and 400,000 indoor square feet were planted in Minnesota.

“We believe in the potential of the developing industry,” said Assistant Agriculture Commissioner Whitney Place. “We want to ensure that everyone who would like to grow and process it in Minnesota is able to do so. They simply need to apply by March 31.”

The online application for growers and processors can be found on the MDA website at www.mda.state.mn.us/industrialhemp. Along with the online form, first-time applicants need to submit fingerprints and pass a criminal background check.

The 2018 Federal Farm Bill legalized hemp as an agricultural commodity. Last fall, the U.S. Department of Agriculture (USDA) released an interim final rule that outlined state and tribal plans for growing the crop. Minnesota is continuing under the existing pilot program in 2020.

Questions about the MDA’s Hemp Program should be sent to hemp.mda@state.mn.us or 651-201-6600.

Grain bin safety hits home in South Dakota

grain bin safety
National Grain Bin Safety Week is February 16-22. Rural Fire Departments spend a lot of time practicing rescue operations in case someone gets stuck in a bin. (Photo from The University of Saskatchewan)

Grain Bin safety. I know you as farmers get tired of the topic. We hit it hard once a year during National Grain Bin Safety Week. But, there’s a reason we in the farm media hit the topic hard. People still get hurt or killed every year, no matter how long they’ve been in the business of farming. Farming is a dangerous profession; the most dangerous in America.

Really, it only takes a moment for tragedy to happen. I can’t imagine what it’s like to know that a family member died by being crushed under a mountain of grain and not being able to breathe. But I know of someone who lived through the nightmare. She’s the current governor of South Dakota.

National Grain Bin Safety week is February 16-22 this year. National Grain Bin Safety Week is a subject that hits home for South Dakota Governor Kristi Noem, who grew up on a farm in Hamlin County and lost her father in a grain bin accident…tape

She says farmers and ranchers work with dangerous equipment every day…tape

While you may not think you have time to slow down, Noem reminds producers theirs aren’t the only lives affected if something tragic happens…tape

Noem encourages producers to evaluate safety procedures and equipment on their farms and ranches and to make adjustments when needed.

Older farmers aren’t the only ones hurt in accidents. Twitter was recently ablaze with sadness over the loss of a young man who’d barely lived around twenty years. It only takes a second for life to change forever. It’s worth taking a few extra minutes to be safe. I know how the grind of farming wears on patience. It’s worth it to your family members to have you come home a few minutes later, especially if it’s the difference between life and death, which it certainly can be.