commodities | Field 2 Field

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.

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.

May 30, 2019May 30, 2019

Trade Opportunities vital for Minnesota farm leaders

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.

October 22, 2018

Minnesota Farm & Rural Helpline Available 24/7

The Minnesota Department of Agriculture (MDA) reminds farmers and their families that the Minnesota Farm & Rural Helpline is open 24 hours a day, seven days a week. The service is free and confidential. The toll free number is (833) 600-2670.

helpline

“These are challenging times for growers who are facing a number of economic headwinds on the farm. And during harvest, that stress builds for a lot of farmers spending long hours in the combine,” said Minnesota Corn Growers Association President Brian Thalmann, who farms near Plato. “All farmers should know this number is available when outside help is needed.”

Farmers and rural communities face unique stresses and emotional situations, including financial challenges, unpredictable weather, and physically demanding work. Stress, anxiety, depression, financial burdens, and other mental and emotional challenges are common.

The Minnesota Farm & Rural Helpline connects callers to financial help, mental health counselors, legal assistance, and more. Calls are confidential, but counselors may ask for a first name and phone number in case of a dropped call. Translation services are available in all languages.

The Helpline is also available to people who are worried about family or friends and aren’t sure how to help.

Farmers and rural Minnesotans can call the toll free number as often as needed at (833) 600-2670 or visit the MDA’s website for additional resources on farming and stress.

Here are some great tips on dealing with farm stress of Lynn DeVries of the Nebraska Extension Service.

October 19, 2018

USSEC Initiative Helping Move Extra Soybeans

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

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

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

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

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

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

Here’s the complete conversation:

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