agriculture | Field 2 Field

August 30, 2019August 30, 2019

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.

“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.”

August 12, 2019August 12, 2019

Trade dispute puts U.S. agriculture right in the middle

Trade is important to agriculture. There, I said it. American agriculture is the best in the world. When you produce goods at the rate we do, there has to be somewhere to sell it overseas. However, thanks to the trade dispute with China, as well as recent disputes with some of our top trading partners, trade isn’t happening with the regularity it needs to.

In turn, when trade doesn’t happen the way it should, prices drop and farmers can’t make a living. I wanted to find out more about the trade dispute and what’s really going on. When you want to learn something like that, you find someone with skin in the game that can teach you the ins and outs.

Dan Ujczo (YOOT-zoh) is an international trade lawyer with the Dickinson-Wright Law Firm of Columbus, Ohio. I’ve known him for over a year now, ever since the dispute began. In typical Chad Smith fashion, my first question is “what the hell is going on here?” How’s that for direct and to the point?

“There was never going to be a deal in which things would go back to the way they were prior to January of 2017, when President Trump was inaugurated,” Ujczo said. “When Trump met with President Xi last December, they both thought we’d have a deal inside of 90 days. Then we heard they would make a deal in May.

“We never thought there would be a deal in which tariffs were completely rolled back,” he said. “Certainly not on the items from List One and List Two, which were an initial 25 percent duty on $50 billion worth of goods.”

When it comes to the items on List One and List Two, Ujczo says the U.S. government talked with industry and looked at the future of manufacturing, deciding then that these are the items we don’t want China taking the lead on. “Tariffs probably weren’t ever coming off those items,” he said.

Here’s the full conversation:

August 8, 2019August 8, 2019

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.

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.

July 11, 2019July 11, 2019

July WASDE is nothing more than a “placeholder”

The July World Ag Supply and Demand Estimate Report (WASDE) didn’t make many changes from the previous month. In fact, it wasn’t worth much at all to a lot of the industry. USDA admitted it will have a better picture of planted acres in the U.S. after resurveying producers this month and releasing the updated numbers in August.

Joe Vaclavik, founder and president of Standard Grain in Chicago, says this month’s WASDE report was considered by many to be a “placeholder.”

He’s not surprised that the number didn’t change a great deal from the last report…tape

There weren’t a lot of surprises on the demand side of the WASDE report…tape

Vaclavik says the grain stocks numbers likely aren’t accurate…tape

With this round of WADE reports done, Vaclavik says the markets are very much locked in on two things. He tells agweb.com that markets will be watching weather and the August report. “Because of the variability in both crop conditions and crop progress, it’s very, very difficult for anyone to look at a weather forecast or pattern and say if it’s bullish or bearish,” Vaclavik says.

He says a lot of farmers might be looking for a rise in prices because this year’s crop is anticipated to be very small. “Just because the crop is light doesn’t mean it’s guaranteed to go higher,” Vaclavik says. “You don’t want to completely abandon any semblance of a marketing plan. We’ve been hoping to get to these corn prices, and it took five or six years to finally get back here.

“Be ready for volatility,” he added. “The environment will continue to be volatile until we learn more about the crop in August.”

Again, Joe Vaclavik is President and Founder of Standard Grains.

July 11, 2019July 11, 2019

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.

“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.

July 10, 2019July 10, 2019

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.

“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.

June 20, 2019June 20, 2019

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.

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.

June 11, 2019June 11, 2019

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.

“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.

June 6, 2019June 6, 2019

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.

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:

Make sure the seed has a label.
Confirm the cover crop seed has been tested for noxious weed seeds, including Palmer amaranth.
Make sure that it is a legal sale by asking the seller if they have the legal authority to sell the product.
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).

June 5, 2019June 5, 2019

So you want to grow industrial hemp?

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.