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.

Meat Sector Looking for 2020 Rebound

Here’s the complete podcast with Mike Zuzolo. You can play it here or download it by clicking on the three dots on the right side of the player.

“Meat, the redder, the better.” Words of wisdom from the grill master (me). However, those folks who raise that red meat (which includes all types of the protein products in the meat case at your local grocery store), for the most part, had a difficult year.

Meat
Mike Zuzolo, President of Global Commodity Analytics, says there IS reason for optimism in the livestock markets as we look ahead to 2020. He’s expecting meat prices to make a rebound. (Photo from YouTube.com)

The U.S. ag sector has to be happy to see the end of the calendar year 2019. It was rough, which might be the understatement of the century so far. I’ve been doing a series of interviews for the National Association of Farm Broadcasting News Service (I’m the assistant editor/reporter) that looks back at 2019 and peeks ahead to next year. I caught up with Mike Zuzolo, President of Global Commodity Analytics in Atchison, Kansas.

2019 was not good for most sectors of the U.S. ag economy, including the protein sector. “No, it wasn’t,” Zuzolo says. “Given the packer break-evens being in the hundreds of dollars for much of the year in cattle, and given the cash prices of hogs struggling to get above $50 live prices, as well as seeing that African Swine Fever was decimating half of the world’s hog herd, I’d say 2019 was a very big disappointment to the cattle and hog industry.”

He said the challenges didn’t just include the trade troubles that dominated headlines throughout the year, they also included a major fire at a Cargill plant in Holcomb, Kansas. Zuzolo said that shot cattle prices sharply lower.

“Prices went below break-evens and they didn’t recover for several weeks,” he recalled. “In my opinion as a livestock analyst, it really shouldn’t have hit the markets quite that hard. The market saw cash prices for cattle collapse from around $120 to $100 for several weeks. At the same time, ground beef and boxed beef prices shot sharply higher because of expectations for tighter supplies.”

Cattle producers took a major hit at that time. The good news is I want to leave you is that Zuzolo sees potential for several bright spots ahead for the protein sector in 2020.

You can find Mike’s website at https://globalanalytics.wpcomstaging.com/

Canine Officer from Minnesota wins national contest

Canine
Canine Officer Trace Erickson of the Houston County Sheriff’s Office poses with his partner, “Roman,” after winning the National Field Trials and Certification event in Florida back in November. (photo from bluffcountrynews.com)

Canine Officer Lieutenant Trace Erickson of the Houston County Sheriff’s Department recently took first place in a national police canine competition earlier this month. The National Field Trials and Certification event is put on by the United States Police Canine Association and takes place in Florida. Erickson said it’s a chance to compete with the “best-of-the-best” canine officers from across the country.

“You have to qualify with a high-enough score at a regional competition to be invited to the national contest,” Erickson said. “We qualified with a high-enough score and got to go up against the best canine officers from across the country. We went down representing a small law enforcement agency and won the whole thing.”

One reason police departments from all over the country send canine officers to these contests is for national certification, something that’s very important to their canine programs.

“It shows that our dogs are under control,” he said. “They’re fully functioning, above board, and they meet high standards. The U.S. Police Canine Association sets the highest standards in police certification because it’s been around 49 years and is accepted in all courts as the highest certification.”

The dogs are put through five different tests in these competitions. “There’s obedience, which dogs are scored on,” he said. “Then there’s agility, which is the dog’s ability to move around and over obstacles.

“There’s also scent work,” Erickson said. “That includes a suspect search, as well as an article search, in which someone holds two articles for 45 seconds, throws them into a 30-foot by 30-foot pad, and the dogs have to go retrieve them in a timed event.

“There’s also an apprehension part of the test,” he added. “The dog has to show proficiency, in that as a decoy takes off running, the dog doesn’t move until it’s told to. There’s a recall part of the test, in that the dog takes off after a decoy and is then called back after about 18 yards. It shows that canines are the only use of force police have that we can call back. Once you fire a gun or taser, that’s it.

“After that is the actual apprehension test, where the decoy is chased and bitten (while wearing protective padding),” Erickson said. “When the handler tells the dog to let go, the canine has to immediately let go.”

The last part of the apprehension testing takes place under gunfire. Erickson said that shows the stability of the dog in a loud environment. “While blanks are fired in the background, the dog is sent after the decoy, releases at the handler’s command, and the decoy is searched,” he described. “During the search, the suspect ‘assaults’ the handler, the dog engages again, and then has to let go immediately when told to.”

There are 700 total points available in the competitions. Erickson and his canine “Roman” scored an amazing 692.8 to win the contest.

As a veteran canine officer, he spends a lot of his time training with the dogs he’s had over the years. It takes a lot of time to make sure the dog is 100 percent competent in the job, noting that “obedience and control” are the biggest keys to a successful canine. “We do something every day to keep Roman sharp,” he said.

“I didn’t start out intending to be a canine officer,” Erickson recalled. “That came a few years later. I’ve worked with several dogs for the Houston County Sherriff’s Office. We’ve received several awards for street work and certification. We’ve been very fortunate in Houston County in terms of the canines we’ve had over the years.”

Roman is a 3.5-year-old Dutch Shepherd and the fourth police canine that Erickson has worked with during his career. “This dog has been on the street a little over a year, and to win a national title like that is unbelievable,” he said. “He also does drug detection, and we use him to search vehicles and execute search warrants at different locations in the county.

“He can also do things like tracking, including searching for missing children,” Erickson added. “He can also help us track suspects and find lost hunters. Of course, he’ll also do protection work if someone attacked me. He can help us clear buildings. If someone breaks into a building, he can go in and search the building, keeping officers out of harm’s way.”

The Houston County Sheriff’s Office Canine Program received both regional and national certification with the team’s wins. “We do these contests because we want people to know our canine program is proficient and above board,” he said. “We also won a national championship trophy too.”

Holiday Scams Hit Rural Residents, too

holiday scams
Holiday Scams are something we have to keep an eye out for this year, especially if you have elderly relatives. The elderly are one of the most vulnerable segments of rural America.

Holiday scams. I really hate that this is something we need to think about, even in rural America. The holidays are a prime time for scammers to do their business. Be vigilant. If someone is asking for your private information, such as a social security number, and you didn’t initiate the call, do NOT give out any information. Period.

I got a call last summer from the “Social Security Administration,” who said someone had used my social security number for “nefarious purposes.” Well, guess what? As a long-time member of the media, I’ve done multiple stories on scams and knew better than to answer when he wanted me to confirm my social security number. At that point, I was already running a tape of the call and as soon as they found out, it was CLICK. End of phone call.

Online purchasing makes holiday shopping easier for rural residents, but it doesn’t make shopping more secure. Cyber holiday scams are rampant during this time of year. Sean Voskuhl, AARP State Director for Oklahoma, says you should stay vigilant when shopping online during the holidays, and throughout the year.

When ordering holiday items online, Voskuhl says, make sure the website you are purchasing from is reputable, and take proper precautions when purchasing gift cards to avoid holiday scams.

Finally, with many in the mood to give back this holiday season, he says make sure your donations are going to a worthy cause.

AARP offers year-round tips on this topic, and others of interest to rural America. Learn more holiday scam tips online by visiting the Fraud Watch Network at aarp.org or watch Thursday night at 9 pm Central Time on RFD-TV.

Dairy Assistance Program Enrollment Reopened

The Minnesota Department of Agriculture (MDA) is reopening enrollment in its Dairy Assistance, Investment, and Relief Initiative (DAIRI) program for eligible milk producers through the end of the year.

Dairy Assistance

Producers who have locked in five years of coverage through the USDA Farm Service Agency’s Dairy Margin Coverage (DMC) program and who have not already successfully enrolled in the Dairy Assistance program can apply.

The MDA has already issued $3.4 million to about 1,800 producers representing more than 1,550 farms in Minnesota through the program in its first round of payments.

Producers not yet successfully enrolled will not receive the first round of payment, but may receive a check for the second round of dairy assistance, which will be determined after all new enrollments have been received.

Dairy Assistance

In order to qualify, farmers must have produced less than 160,000 cwt (hundredweight) of milk in 2018. They will be paid based on production levels, up to 50,000 cwt of milk produced in 2018.

An application form, an IRS Form W-9, a copy of their DMC enrollment form, and a statement from their processor(s) detailing the amount of milk produced in 2018 are required to complete an application. All materials must be postmarked by December 31, 2019.

Producers who are already successfully enrolled and have received their first check do not need to take any action. They will automatically receive a second payment. However, producers who submitted incomplete applications and have not received a check must return any requested information by December 31, 2019, to be eligible for the second payment.

For additional information and the application form, visit the DAIRI program page of the MDA website.

Dairy Industry is “Optimistic” at #NAFB19

Dairy
U.S. Dairy Export President and CEO Tom Vilsack spoke at the #NAFB19 convention in Kansas City, appearing more optimistic about the future of the U.S. dairy industry than in recent years. (Photo by Chad Smith)

Dairy industry officials know firsthand that the industry has struggled in recent years, and there’s no question about it. Former Ag Secretary Tom Vilsack, who spoke to broadcasters during the National Association of Farm Broadcasting’s annual convention in Kansas City. Vilsack, is the current President and CEO of the U.S. Dairy Export Council. He says in spite of some tough years for the American dairy industry, there are reasons for optimism.

News broke this week that Dean Foods, America’s largest milk producing company in the dairy industry, filed for bankruptcy. I had a chance for some one-on-one comments with the former Ag Secretary, who preferred to talk more about the positive signs ahead in the dairy industry than the bad news about Dean Foods.

He took a lot of questions from farm broadcasters on a variety of topics in the dairy industry. One of the biggest topics in recent months is the growing market for plant-based “milks.” He and the rest of the dairy industry aren’t happy with these companies referring to themselves as “milk.” The question came from Orien Samuelson, the dean of farm broadcasters and a good friend of Vilsack.

https://www.youtube.com/watch?v=CbopKYObCAs&feature=youtu.be

He says the US-Mexico-Canada Trade Agreement making its way through the House of Representatives, all be it slowly because of Democratic concerns, is another reason to be optimistic. He’s confident that the agreement will get done.

https://www.youtube.com/watch?v=FCURYBZ6IIo&feature=youtu.be

It’s hard to believe that folks in Washington, D.C. are already talking about the next Farm Bill. The reason for that is House Ag Committee Chair Collin Peterson, a Minnesota Democrat, isn’t sure yet if he’ll be running for re-election in 2020. He’s said publicly that decision will be coming in either January or February. Vilsack said even if Peterson doesn’t run again, the next farm bill will get done.

https://www.youtube.com/watch?v=BHU9-7w_CVU&feature=youtu.be

Lastly, as President of the Dairy Export Council, he pays close attention to the country’s export situation, which hasn’t been great at all thanks to trade disputes. In spite of that, with agreements pending in Japan, as well as in North America, exports are another reason to be optimistic.

Wolf help available for Minnesota livestock farmers

New money is available to Minnesota livestock producers to help prevent wolf attacks. A total of $60,000 will be awarded through the Wolf-Livestock Conflict Prevention Grants. Applications are due January 31, 2020, to the Minnesota Department of Agriculture (MDA).

wolf
Wolf attacks on livestock are unfortunately a common occurrence for Minnesota’ s livestock farmers. There is some financial help available for prevention measures. (photo from capitalpress.com)

The grants provide reimbursement for costs of approved practices to prevent wolf-livestock conflicts. Eligible expenses for the grant program will include any or all of the following items:

  • Purchase of guard animals
  • Veterinary costs for guard animals
  • Installation of barriers which may include pens, fladry, and fencing
  • Installation of wolf-deterring lights and alarms
  • Calving or lambing shelters
  • Other measures demonstrated to effectively reduce wolf-livestock conflicts

“We’re fortunate to be able to offer this assistance again to Minnesota farmers and ranchers thanks to a grant from the US Fish and Wildlife Service,” said Assistant Agriculture Commissioner Whitney Place. “Livestock owners can get additional resources to protect their animals and livelihood, and I encourage producers to examine ways they can decrease the chances of wolf attacks and apply for this funding.”

Producers must live within Minnesota’s wolf range, as designated by the Minnesota Department of Natural Resources, or on property determined by the Commissioner of Agriculture to be affected by wolf-livestock conflicts. Any animal species produced for profit and documented to have been killed by wolves in Minnesota in the past is eligible. This includes bison, cattle, chicken, deer, donkey, duck, geese, goat, horse, llama, mule, sheep, swine, and turkey.

The grant application must be emailed or postmarked by 5 p.m. on January 31, 2020. Work for this grant must be done and expenses reported by August 31, 2020. The application and more information can be found at www.mda.state.mn.us/wolfgrants.

The grant from the US Fish and Wildlife Service is funding the third round of Wolf-Livestock Conflict Prevention Grants. The first two rounds were funded by the Minnesota Legislature in 2017. Those grants awarded $240,000 between July 1, 2017 and June 30, 2019. Grantees used the money for items like fencing, guard animals, and motion lights – all deterrents to wolves.

Hemp Production Rules in Place for U.S. farming

hemp production
Hemp production rules are in place as the USDA announced it’s U.S. Domestic Hemp Production Program interim final rule. It’s designed to oversee hemp farming in states that allow it by law. (photo from agriculture.com)

The U.S. Department of Agriculture hosted a press conference to announce the rollout of the U.S. Domestic Hemp Production Program. As long as farmers aren’t working in states that prohibit hemp farming by law, officials will work with farmers to help them establish an approved plan to produce industrial hemp on their operations.

Here’s the complete press conference audio from this week:

The U.S. Department of Agriculture officially announced the establishment of the Domestic Hemp Production Program. The program is designed to create a consistent regulatory framework involving hemp farming across the country. USDA Undersecretary for Marketing and Regulatory Programs Greg Ibach says the agency will work with states and tribes to help producers establish federally approved hemp production plans, as long as hemp production isn’t outlawed by their states.

The interim rule also calls for a public comment period so USDA can take input on the final rule before it’s enacted. Ibach says the 2020 growing season will be a “test drive” so USDA can make any needed corrections before publishing the final rule. He talks about some of the key provisions in the interim final rule.

There will be a 30-day waiting period for USDA to license farmers who want to grow hemp in states or tribes that don’t submit plans for federal approval. Ibach says they’ve gotten a lot of questions during the development process surrounding hemp testing for THC.

USDA Undersecretary for Farm Production and Conservation Bill Northey says once state and tribal plans are in place, hemp growers will be eligible for various government programs in 2020…tape

If you have any more question, contact your local Farm Service Agency office. They can point you in the right direction. You can also find more information online at farmers.gov/hemp.

Renewable Fuels Debate Continues Unabated

Here’s the complete podcast with Scott Irwin of the University of Minnesota, talking about his solution to the squabble between ethanol and the oil industry over the Renewable Fuels Standard. You can download and listen to it later or play it here.
Renewable Fuels
Professor Scott Irwin at the University of Illinois has a potential solution to the fight in Washington D.C. surrounding the Renewable Fuels Standard

Renewable Fuels seem like such a good idea to me. After all, fossil fuels are a finite resource, right? We grow lots of corn and other biofuel feedstocks. Why can’t we use some of them to stretch our fuel supply even further into the future? That’s rhetorical, of course. Big Oil has lots of money. One University of Illinois Professor says that money has put Big Oil squarely in the driver’s seat with the Environmental Protection Agency.

The clash between the ethanol and oil industries over the Renewable Fuels Standard is continuing with no end in sight. Scott Irwin of the Agricultural and Consumer Economics Department at the University of Illinois says there may not be a “win-win” deal in a debate like this.

Irwin wrote an article on the University of Illinois’ farm doc daily website called “Clearing the Logjam on the RFS and SREs: A Simple Proposal.” His idea would divide the refiners into large and small operations, while the ethanol proponents are treated as one group.

By doing it that way, the Environmental Protection Agency won’t be waiving any future volumes of ethanol. He realizes that the large refiners won’t be happy with his proposal, which Irwin says restores what the RFS was originally designed to do.

Irwin says his solution would satisfy two-thirds of the people and groups involved in the debate, which might be the best we can do. By way of comparison, the current situation is a mess.

Again, Scott Irwin is with the University of Illinois. Follow the link here if you’d like to read his full report on the Farm Doc Daily website.

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Harvest season in MN requiring extra patience

Here’s another chadsmithmedia podcast, this time with Houston and Fillmore County Extension Educator Michael Cruse, talking harvest progress in southeast Minnesota.

Harvest season. Never a dull moment in farm country. It’s never an easy season for anyone, regardless of what the growing season was like. This year’s ridiculously wet growing season is going to make things even more challenging, which is not exactly a state secret.

harvest season

The harvest season is officially underway in southeast Minnesota. A few days of drier and windier weather last week allowed some crops to come out of fields across the area. Houston and Fillmore County Extension Educator Michael Cruse said timing appears to be everything when it comes to fall harvesting in 2019.

“I’m glad you called me later last week, rather than on Monday,” Cruse said. “I would have been much more down on the situation earlier last week. However, a couple of windy days helped some farmers take some corn and beans out of their fields. In spite of that, we’re still behind and we’ll still be scrambling to make sure everything gets done before the ground freezes. At least we’re starting to make some progress.”

The excess rainfall this year means the crops will come out of the fields much wetter than normal. He said the recent windy days seem to have put soybeans into pretty good shape. But, the corn is still going to require some time in the dryer, which isn’t a big surprise this harvest season.

Harvest season is underway in southeast Minnesota, all be it slowly, according to Michael Cruse of the University of Minnesota Extension Service. There’s still a long way to go in very we conditions. (Photo from UMN.Extension.Edu)

“The beans are actually drying down to the point that it looks like they’ll be okay,” Cruse said. “Just be patient with them. Obviously, the last thing you want is to get a big snowfall on top of them, but they seem to be coming along. However, the hard truth is that the majority of our corn crop will come out of the field too wet.

“No matter how long we wait this fall, we just won’t have the drying conditions to get that corn down to optimal moisture,” he added. “That’s probably why we see a lot of farmers working corn right now. They know there’s going to be a bottleneck while the corn has to sit in their dryers and it’s going to take some time. Get a head start because it’s going to take a while.”