Dairy Margin Coverage Program already helping producers

The U.S. Department of Agriculture’s Farm Service Agency (FSA) opened enrollment for the Dairy Margin Coverage (DMC) program on June 17 and has started issuing payments to producers who purchased coverage. Producers can enroll through Sept. 20, 2019.

Dairy

“Times have been especially tough for dairy farmers, and while we hope producers’ margins will increase, the Dairy Margin Coverage program is providing support at a critical time for many in the industry,” said Bill Northey, USDA Under Secretary for Farm Production and Conservation. “With lower premiums and higher levels of assistance than previous programs, DMC is already proving to be a good option for a lot of dairy producers across the country.  USDA is committed to efficiently implementing the safety net programs in the 2018 Farm Bill and helping producers deal with the challenges of the ever-changing farm economy.”

Authorized by the 2018 Farm Bill, DMC replaces the Margin Protection Program for Dairy (MPP-Dairy). The program offers protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer. To date, nearly 10,000 operations have signed up for the new program, and FSA has begun paying approximately $100 million to producers for January through May.

May Margin Payment

DMC provides coverage retroactive to January 1, 2019, with applicable payments following soon after enrollment.

The May 2019 income over feed cost margin was $9.00 per hundredweight (cwt.), triggering the fifth payment for eligible dairy producers who purchase the $9.50 level of coverage under DMC. Payments for January, February, March and April also were triggered. 

With the 50 percent hay blend, FSA’s revised April 2019 income over feed cost margin is $8.82 per cwt. The revised margins for January, February and March are, respectively, $7.71, $7.91 and $8.66.

Coverage Levels and MPP Reimbursements

Dairy producers can choose coverage levels from $4 up to $9.50 at the time of signup. More than 98 percent of the producers currently enrolled have elected $9.50 coverage on up to 95 percent of their production history.

More Information

On December 20, 2018, President Trump signed into law the 2018 Farm Bill, which provides support, certainty and stability to our nation’s farmers, ranchers and land stewards by enhancing farm support programs, improving crop insurance, maintaining disaster programs and promoting and supporting voluntary conservation. FSA is committed to implementing these changes as quickly and effectively as possible, and today’s updates are part of meeting that goal.

For more information, visit farmers.gov DMC webpage or contact your local USDA service center. To locate your local FSA office, visit farmers.gov/service-locator.

Acreage reporting deadline extended in 12 states

The U.S. Department of Agriculture (USDA) extended the acreage reporting deadline for farmers in states impacted by flooding and heavy moisture. The new deadline is July 22 for producers to report spring-seeded crops to USDA’s Farm Service Agency (FSA) county offices and crop insurance agents. The new deadline applies to producers in Arkansas, Illinois, Indiana, Iowa, Kentucky, Michigan, Missouri, Minnesota, North Dakota, Ohio, Tennessee and Wisconsin.

deadline

“These are challenging times and we are here to help,” said Bill Northey, USDA Under Secretary for Farm Production and Conservation. “This deadline extension is part of our broader effort to increase program flexibility and reduce overall regulatory burden for producers who are having to make some tough choices for their operations.”

Producers not in the selected states must file reports or be added to a county register by the original July 15 deadline.

“Producers in many parts of the country are experiencing a challenging spring and early summer. However, producers in these states are struggling with large delays and are unable to complete their other fieldwork,” Northey said.

Filing a timely crop acreage report helps farmers maintain eligibility for USDA conservation, disaster assistance, safety net, crop insurance, and farm loan programs. A crop acreage report documents all crops and their intended uses. It’s also an important part of record-keeping for your farm or ranch.

FSA offices are asking producers to set up appointments ahead of time before they come in to file a report. Producers who schedule appointments before the deadline will be on time, even if the appointment is after July 22.

Likewise, reports from producers in non-affected states who set up appointments before July 15 will be considered timely filed.

“We encourage you to contact your FSA county office today to set up an appointment,” Northey said. “Our team is standing by to help you complete this important process that keeps you eligible for key USDA programs.”

Other USDA Efforts to Help Producers

USDA is taking additional steps to help producers across the country, including:

  • Updating the haying and grazing date for producers who have planted cover crops on prevented plant acres;
  • Offering special sign-ups through the Environmental Quality Incentives Program for assistance to plant cover crops; and
  • Extending the deadline to report prevented plant acres in certain places.

For more information, visit our Prevented or Delayed Planting webpage.

More Information

To learn more, contact your FSA county office or visit fsa.usda.gov or farmers.gov/prevented-planting.

Prevent plant acres with cover crops can be utilized on Sept. 1

Cover Crops might be a really good idea for empty prevent plant acres in farm country. The U.S. Department of Agriculture just announced that farmers who planted cover crops on prevented plant acres will be permitted to hay, graze or chop those fields earlier than November this year. USDA’s Risk Management Agency (RMA) adjusted the 2019 final haying and grazing date from November 1 to September 1 to help farmers who couldn’t plant crops because of flooding and excess rainfall this spring.

cover crops
Farmers can hay, graze, or chop their prevent plant acres if they have cover crops earlier this year. The Risk Management Agency moved the date from November 1 up to September 1 to help farmers who couldn’t plant crops because of flooding. (Photo from Drovers.com)

“We recognize farmers were greatly impacted by some of the unprecedented flooding and excessive rain this spring, and we made this one-year adjustment to help farmers with the tough decisions they are facing this year,” said Under Secretary for Farm Production and Conservation Bill Northey. “This change will make good stewardship of the land easier to accomplish while also providing an opportunity to ensure quality forage is available for livestock this fall.”

RMA has also determined that silage, haylage and baleage should be treated in the same manner as haying and grazing for this year. Producers can hay, graze or cut cover crops for silage, haylage or baleage on prevented plant acres on or after September 1 and still maintain eligibility for their full 2019 prevented planting indemnity.

“These adjustments have been made for 2019 only,” said RMA Administrator Martin Barbre. “RMA will evaluate the prudence of a permanent adjustment moving forward.”

Other USDA Programs
Other USDA agencies are also assisting producers with delayed or prevented planting. USDA’s Farm Service Agency (FSA) is extending the deadline to report prevented plant acres in select counties, and USDA’s Natural Resources Conservation Service (NRCS) is holding special sign-ups for the Environmental Quality Incentives Program in certain states to help with planting cover crops on impacted lands. Contact your local FSA and NRCS offices to learn more.

More Information
Read our frequently asked questions to learn more about prevented plant.

Flooding Problems Ongoing in Farm Country

Farmers in different parts of rural America are still dealing with flooding. Bryce Anderson, Senior Ag Meteorologist from DTN, says those struggles are continuing in some areas, while other parts of farm country are continuing to show some improvement.    

flooding
Flooding has devastated farmers across a good chunk of rural America. Unfortunately, a
senior ag meteorologist with DTN says some of those areas will be dealing with the
excess water for some time yet. (Photo from Drovers.com)

Other parts of the Midwest are still dealing with flood stage and don’t have an immediate end in sight.

The rainfall isn’t over for parts of the country still dealing with saturated soils.

Anderson says the last time farm country had flooding problems that covered such a large area at the same time was back in 1993. He says the wet pattern will likely stick around at least through the end of June and possibly early July…

Bryce Anderson is Senior Ag Meteorologist with DTN.

For some perspective on how bad the flooding has been, an article on the Pacific Standard Magazine website says the Mississippi River has received rain and snow levels at a staggering 200 percent above normal.

And, it’s not just farmers who are suffering because of the flooding. The flooding has wrecked homes, contaminated drinking water, and done billions of dollars in damages. Unfortunately, industry experts are warning that it may take years for agriculture and rural America to recover from the extensive damages.

Minnesota Dairy Farmers Eligible for Assistance

Dairy farmers have had a tough go of it lately as milk prices continue to struggle. The Minnesota Department of Agriculture (MDA) is rolling out its new Dairy Assistance, Investment and Relief Initiative (DAIRI) program to provide financial assistance for farmers. To be eligible, the state’s milk producers have to sign up for five years of coverage in the USDA Farm Service Agency’s Dairy Margin Coverage (DMC) program.

dairy farmers
The Minnesota Dairy Assistance, Investment, and Relief Initiative
is now taking applications. The program is designed to help the state’s dairy
farmers stay afloat during very tough economic times. (Photo from
nal.used.gov)

“Minnesota farmers are the cornerstone of our state’s economy,” said Governor Tim Walz. “We know that this has been a tough year for agriculture, and our dairy farmers need our support. I’m proud that our budget secured $8 million for the Dairy Assistance, Investment and Relief Initiative, The new initiative will help make sure our dairy farmers can continue doing the work they love and providing for our state.”

Applications to the program are being accepted now through October 1, 2019. In order to qualify, Minnesota farmers must have produced less than 160,000 cwt (hundredweight) of milk in 2018. Again, they also need to have signed up for five years of coverage through the DMC program during its current enrollment period, which is open between June 17, 2019 and September 20, 2019.

The MDA will issue payments on a rolling basis. Producers can expect to receive their first payments roughly two to four weeks after successfully applying. Minnesota dairy farmers will be paid based on production levels, up to 50,000 cwt of milk produced in 2018.

An application form, a W9, a copy of their DMC enrollment form, and a statement from their processor(s) detailing the amount of milk produced in 2018 are all required to complete an application.

Dairy farmers may receive a second payment this fall after the application period has ended, depending on remaining available funds.

Additional information and the application forms are available at https://www.mda.state.mn.us/dairi.

Minnesota’s Dicamba Cutoff is June 20

Dicamba is an important tool for farmers when it comes to controlling weeds. The Minnesota Department of Agriculture (MDA) wants to remind pesticide applicators of the state-specific dicamba cutoff for the 2019 growing season. Product application cannot take place in Minnesota after June 20.

The 2019 Minnesota dicamba cutoff is in addition to those established by the U.S. Environmental Protection Agency (EPA). The affected formulations are XtendiMax by Monsanto, Engenia by BASF, FeXapan by DuPont, and Tavium by Syngenta.

dicamba cutoff
The Minnesota Department of Agriculture is reminding farmers and pesticide applicators that the dicamba cutoff date is set for June 20th. (photo from agweb.com)

“We understand that late planting this season has caused concern for growers who want to use this crop management tool,” said Agriculture Commissioner Thom Petersen. “However, delaying applications in an attempt to control later emerging weeds can result in poor control and presents other risks. If you are one of the growers that has invested in dicamba technology, now is the time to use it for the dicamba cutoff date. The University of Minnesota Extension says late planting combined with pre-plant tillage can offer advantages for weed control.”

The June 20, 2019, the dicamba cutoff date is based on the MDA’s ongoing investigations and informal surveys into reports of crop damage from alleged dicamba off-target movement over the past two growing seasons. In 2017, the MDA received 253 reports of alleged dicamba drift; 55 of those were formal complaints requesting investigations. Those reports impacted an estimated 265,000 acres. After state restrictions were put in place for the 2018 growing season, the number of complaints dropped dramatically to 53 reports, of which 29 were formal complaints. Just over 1,800 acres were impacted in 2018.

This year’s dicamba cutoff date was first announced on December 10, 2018. Over the winter, approximately 5,800 pesticide applicators attended trainings across the state as required by the product labels.

Dicamba is most effective early in the growing season. Product labels recommend application on small broadleaf weeds that are up to 4 inches tall.

To manage weeds after June 20, growers can use herbicides from Group 9 (Glyphosate), Group 2 (Pursuit, Classic, FirstRate), and Group 14 (Flexstar, Cobra, Cadet, Ultra Blazer). If you have herbicide resistant weeds such as water hemp, follow University of Minnesota Extension recommendations on layering of residual herbicides such as Dual, Outlook, Warrant, and Valor.

In Minnesota, the XtendiMax, Engenia, FeXapan, and Tavium formulations of dicamba are “Restricted Use Pesticides” for retail sale to, and for use only by, certified applicators.

MDA Issues Advisory on Cover Crop Seed

Minnesota Seed Law must be followed on prevented planting acres

Minnesota farmers may be in the market for more cover crop seed than in previous years. Poor planting conditions this spring are forcing some farmers to make decisions on prevented planting. The Minnesota Department of Agriculture (MDA) wants to remind farmers about the legal requirements for selling and buying seed in Minnesota, which does include cover crop seed.

Cover crop seed
More acres might be going into cover crops because of prevented planting conditions. The Minnesota Department of Agriculture has some reminders when farmers are looking to buy cover crop seed. (Photo from AgNook.com)

MDA says it has seen several issues in past years that violate Minnesota’s Seed Law. Buying grain from an elevator for the purpose of sowing is not legal. It is also illegal to brown bag or sell grain out of a bin. Furthermore, all seed sold in the state must be labeled.

“Minnesota’s Seed Law restricts these activities for numerous reasons, ” said Denise Thiede, MDA’s Seed Unit Supervisor. “Farmers could be bringing in weeds through unlabeled and untested seed, or they may not be get the type or quality of seed they paid for.”

In addition, almost all seed varieties have some form of intellectual property protection that restricts the use and sale of the variety under the federal Plant Variety Protection Act. Violating this act can lead to significant fines for both the seller and the buyer.

If farmers are buying seed to sow on their land, the MDA offers the following advice:

  1. Make sure the seed has a label.
  2. Confirm the cover crop seed has been tested for noxious weed seeds, including Palmer amaranth.
  3. Make sure that it is a legal sale by asking the seller if they have the legal authority to sell the product.
  4. Ask about the variety of seed. A variety protected by the Plant Variety Protection Act must be sold by variety name and may be required to be sold as a class of certified seed.

More information on the requirements for selling seed in Minnesota can be found at on the MDA’s website (www.mda.state.mn.us/seed).  

So you want to grow industrial hemp?

Industrial hemp
Industrial hemp production is becoming legal in more and more states. However, farmers who’ve never grown the crop before have some things to look into before they take the plunge. (Photo by agriculture.com)

In the course of covering agriculture, I’ve written and recorded several stories about the possibility of industrial hemp farming. More and more states are making industrial hemp production legal within their borders. It’s good news for farmers because it puts another cash crop in their toolbox. But I was curious about the process of how to start growing the crop for the first time. It’s similar in some ways to “traditional” commodities but very different in others.

I caught up to Erica McBride Stark, Executive Director of the National Hemp Association, to talk about things farmers who’ve never grown industrial hemp before need to consider. The list is a long one. Considerations include the reason you’re growing the crop (who is the end user?), the types of soils you farm in, and what kind of equipment you have for both planting and harvest.

“I know there are a lot of farmers that want to try growing hemp,” Stark said. “I am a little bit concerned, to be honest because there’s a whole lot of people who want to jump in but don’t know what they’re doing. We’ll have to see how it goes.”

As there are different types of standard commodities, farmers will have to figure out what type of hemp they want to grow. For example, the cultivation methods for CBD are quite different than what they would be for hemp grown for fiber or grain. But that’s not all.

“The crop starts off indoors and farmers will need specific equipment to transplant it into fields outdoors,” she said. “The type of soil you’re farming in also makes a difference. Hemp likes a loose soil that’s well drained. It doesn’t want to have wet feet. It also likes a neutral pH level.”

She said hemp grown for fiber and grain is planted a lot like traditional crops. Growing hemp for CBD means the plants are spaced out further and surrounded by plastic sheets.

I’m thrilled that farmers have another possibility for a cash crop. However, I’d encourage you to give a listen here if you’re thinking about trying industrial hemp production for the first time.

Trade Opportunities vital for Minnesota farm leaders

trade opportunities
The U.S.-Mexico-Canada Trade agreement presents trade opportunities that Ag leaders across the country say farmers need to break out of the economic doldrums across the sector.

Trade opportunities have been, and always will be, important to U.S. agriculture. However, the opportunities aren’t there because of ongoing trade disputes with partners like China. However, with the removal of Section 232 steel and aluminum tariffs on Mexican and Canadian imports, the opportunity for the U.S.-Mexico-Canada Trade Agreement to get through Congress is closer than ever. The prospects, however, depend on who you ask and what their political affiliation is.

That aside, Minnesota Farm leaders gathered recently in Hawley to discuss the current state of the farm economy. They specifically emphasized the importance of trade opportunities across North America. Kaitlyn Blackwelder is the regional project manager for Minnesota Soybean.

Farm incomes fell eight percent last year due in large part to lost trade opportunities and a large supply of commodities driving down prices. And, that has the attention of ag lenders like Jennifer Sharpe, Market Vice President of AgCountry Farm Credit Services.

They and others are worried that unless the U.S.-Mexico-Canada Agreement gets ratified soon, things will only worsen. Ag exports to Mexico and Canada generate more than $1 billion for Minnesota every year. Those exports are only available with abundant trade opportunities. Mike Jurik is a grain merchandiser and works in the area of rail logistics for West Central Ag. He says the uncertainty is a huge strain on everyone in agriculture.

Farm leaders say the new European trade deal with Mexico is allowing the EU to displace U.S. sales in Mexico. The U.S., Canada, and Mexico finalized the deal last November but the pact is currently stalled in Congress. Karolyn Zurn is the American Agri-Women’s First Vice President of Vital Issues and Resolutions. She says the message is clear and direct to Congress.

During the roundtable discussion in Hawley, Minnesota’s farm leaders urged Minnesota’s elected officials to break the logjam on USMCA as soon as possible. Their message was a simple one: farmers need more trade opportunities.

MDA Helping Professionals Help Farm Stress

Summer workshops will teach farm stress management skills

farmer stress
The Minnesota Department of Agriculture is offering a workshop for health professionals in oder to help them assist farmers through incredibly difficult times. Farmer stress is as high as it’s been in decades for a variety of reasons, many of which non-farm folks may not understand. (photo from mda.org)

Farmer stress levels are way, way up. They’re living with weather that won’t let a great many of them get crops in the ground. Overseas trade wars have cut down on places to sell their commodities, leading to a lot of grains and oilseeds on hand, driving prices even lower. Farmer stress is something that mental and even physical health professionals may not have the experience to help them with, so the Minnesota Department of Agriculture is trying to help with that.

Farmer stress is as high as it’s been since the 1980s. Stressful times in agriculture can trigger bad news and difficult conversations. In response, the Minnesota Department of Agriculture (MDA) is offering Navigating Conflict & Tough Conversations in Agriculture, a workshop designed to help agriculture professionals navigate potentially contentious situations.

It’s Rough in Rural America

“Farmers are having a tough time right now,” Agriculture Commissioner Thom Petersen said. “Farmer stress is high because there’s a lot on the line, and we recognize that lenders, agency staff, clergy, educators, veterinarians, agricultural advisors, and businesspeople can find themselves trying to help in situations where emotions run high.”

Workshop topics include reducing anxiety and fear about interpersonal conflict; understanding how self-awareness and group dynamics contribute to successful outcomes; exploring the connection between conflict and change; and precautions participants can take to keep themselves safe at work – both in and outside their office.

University of Minnesota Extension Educator Denise Stromme and local law enforcement will teach the workshop on dealing with farmer stress at six locations in June and July. All sessions run from 9 a.m. – 12 p.m. 

  • June 18, Detroit Lakes, Minnesota Community & Technical College
  • June 19, Thief River Falls, Northland Community & Technical College
  • June 20, Duluth, Lake Superior College
  • July 8, Marshall, Southwest Minnesota State University
  • July 9, Faribault, South Central College
  • July 10, St. Cloud, Saint Cloud Technical & Community College

The workshop is free but space is limited. Register at www.navigating-conflict-in-ag.eventbrite.com or by calling 651-201-6012.

Farmer Stress is Unique

Listen, I grew up working on a dairy farm and got to understand farmer mindsets. It’s no fun to admit you need help. If there’s a group of Americans who have “John Wayne” go-it-alone-syndrome more than farmers do, I’d like to know who that would be. They don’t want to ask for help. It’s important that health professionals get the background information they need at a workshop like this. The stresses that they deal with are very unique and it’s quite difficult for non-farm folks to relate to. I’ve seen it first hand, living in both rural and urban areas through my 48 years of living.

All participants will receive certificates of attendance; several organizations have approved continuing education credits.

Individuals with a disability who need a reasonable accommodation to participate in this event should contact Stephen Moser at 651-201-6012 or through the Minnesota Relay Service at 711 as soon as possible.

Disclaimer

This workshop is supported by the Minnesota Department of Agriculture and the National Institute of Food and Agriculture, U.S. Department of Agriculture, under award number 2018-38640-28416 through the North Central Region SARE program under project number ENC18-170. The MDA and USDA are equal opportunity employers and service providers. The opinions, findings, conclusions, or recommendations expressed in this workshop do not necessarily reflect the view of the U.S. Department of Agriculture.