Canadian agriculture has something big in common with U.S. producers this year.
In fact, Canada and the U.S. have more in common than just a border. The two countries are also sharing a lot of hot, dry weather. Shaun Haney of RealAg is an agricultural journalist and broadcaster in Canada who says the longtime trading partners are in the same boat.
Shaun Haney of RealAg is an agricultural journalist and writer covering Canadian agriculture, which has been hit hard by drought. (Photo from YouTube.com)
“Absolutely yes,” he said on the phone from his office. “The drought of 2021 in Northern Ontario and the Western Canadian Prairies has been compared to the drought in 1988. This summer has been extremely hot and dry.
“It’s obviously hurt the crop conditions,” Haney added. “In some ways, it’s even more urgently impacted the grasslands and pastures, which is forcing producer discussions on the future of the Canadian cow herd after this fall, depending on what the level of cow cull will be.”
The drought isn’t just confined to 2021. As with many dry areas in the States, the drought stretches back to last fall. Haney noted that many Canadians were saying that “you don’t lose the crop in March.” However, they could have used moisture at that time, which they didn’t get.
“It was so dry that we’d used up a lot of our subsoil moisture last year,” he recalled. “We needed to replenish that moisture through the winter, and it didn’t happen. As we made our way into the growing season and the weeks passed, the rain just didn’t come.”
Severe drought is making things tough on Canadian agriculture. (Photo from globalnews.ca)
As the rain continued to hold off, the area listed on the Drought Monitor began to expand. Early in the year, the drought ran in a tight band along the U.S.-Canada border, especially in the Southern Prairies of Alberta, Saskatchewan, and Manitoba. At the same time, that drought also affected North Dakota and Montana early on in the U.S.
“As the weeks went by, the drought-impacted area continued to make its way further and further north,” Haney recalled. “It created a situation where the yields became more questionable on an increasing number of acres. The frustrating thing is some of those same fields started 2021 in great condition.”
The crops didn’t get the rain they needed for any consistent grain fill. Haney is located in Lethbridge, Alberta, and said a lot of the dryland in Canadian agriculture never had a chance. He described the 2021 Canadian growing season in one word: heartbreaking.
Crops hit by this year’s drought run the entire spectrum in Canada. Some crops handle adversity better than others, including chickpeas and lentils. However, Canadian farmers are especially concerned about the wheat and canola crops.
“I would say it’s even more so with canola,” Haney said. “From what I’ve heard, there are a lot of people harvesting some pretty light barley. But canola is the one where people are concerned they won’t have the yield. Canola is a fairly small seed, but it shouldn’t look like pepper.”
Canadian farmers do grow some soybean in Manitoba, where farmers may harvest bushels worth as little as $15. Producers also grow a little grain corn in Manitoba, as well as some in southern Alberta, that’s fed to livestock. Almost all of that corn is irrigated.
“There are some irrigated sugar beets in Alberta that are looking good as well,” he adds. “However, the list of struggling dryland crops is a long one.”
Haney says the one possible saving grace is good commodity prices. If prices were low during a drought like this, that would be the mother of all discouraging situations. He notes that if canola is around 20 dollars and you have ten bushels in the field, that’s 200 dollars an acre.
“It’s not a moneymaker on dry land, but it’s a lot better than a market with nine dollars,” he added. “This boils down to Mother Nature not cooperating with us, and it’s one of the variables that are out of our control.
“I can’t even imagine what it would have been like going through a drought like this in the 1930s and ‘40s when we weren’t in a minimum-till situation,” Haney said. “Thankfully, most of our fields are minimum or zero-tillage, which helps to conserve as much moisture as possible. It’s a good reminder of why we change our practices in Canadian agriculture out here on the prairies.”
Minecraft. The chances are good that you know what it is if you have kids. Would it surprise you if I said the dairy industry was thinking outside the box and turning to a video game such as Minecraft to help promote its products? Dairy Management Incorporated held a press conference recently to announce a partnership with four of the most influential gamers in the world to promote itself to people in “Gen Z (early teens to early 20s).”
The idea started growing late in 2019 when the dairy industry found out that per-capita dairy consumption hit its highest level in 60 years. America hasn’t consumed this level of dairy products since 1960, so the question is how to keep this trend going into the future? Dairy Management Incorporated CEO Tom Gallagher says you reach out to younger people on platforms where they already engage with each other.
The U.S. dairy industry is partnering with four of the most popular Minecraft gamers in the world to promote their products to the next generation of consumers. (Photo from theverge.com)
Dairy industry sustainability is another key driver in the new idea. “The businesses of dairy, such as the co-ops, the processors, and the manufacturers, have collectively set the goal of becoming carbon neutral by 2050,” Gallagher said.
“Dairy Management’s role in that is to support the environmental science, communications, and other relationships in achieving that goal,” he added. “While sustainability is important, it also has to be profitable for the industry. We are working on several different test cases on various farms to prove that profitability is possible, or what might need to change to make sustainability profitable.”
Gallagher said there is no sustainability without profitability. Without improving sustainability, farmers and the entire industry will likely be subject to very pejorative regulations in the future. It’s a chance for the industry to be proactive and avoid excessive regulations.
So how does Minecraft fit into the discussion? DMI had five college interns over the past summer who were in their low 20s and MBA students. DMI gave them the challenge to figure out how they would promote dairy sustainability to Gen Z if they had 10 million dollars to do the job. The students came up with the idea of promoting dairy through the video games that Gen Z plays.
Dairy Management Incorporated is thinking “outside the box” in coming up with new methods to promote dairy to the next generation of consumers, one of which is using the popular video game Minecraft. (photo from lakenormanpublications.com)
Joanna Hunter is the Executive Vice President of Communications with DMI, who says the dairy industry will work with four of the most well-known Minecraft gamers in the world. It’s a chance to reach the Gen Z audience through a platform they’re already engaging in.
“We are going to work directly with four gamers who combine for more than 120 million followers,” she said. “Each of the influencers will take part in a virtual visit to dairy farms of different sizes and locations across the country, and every farm will have its own sustainability practices.
“After that virtual visit, the gamers will take what they learned and build a dairy farm in Minecraft,” Hunter added. “They may challenge each other, or they may challenge their followers to build the best dairy farm.”
The overall goal is for the gamers to engage others in that sustainability story and how dairy farmers are working hard to bring a nutritious and sustainable product to their audience. The gamers will be putting out dairy-related content through November. Hunter says it’s a great time to use the platform for a unique two-way engagement with the intended audience.
This kind of work doesn’t get off the ground without direct support from dairy farmers. Aric DeJager owns and operates Icon Holsteins in Kersey, Colorado. His role will be to provide on-site dairy farm education for the four gamers through FaceTime. Like a lot of folks older than Gen Z, he’s learning about Minecraft from younger relatives.
“I’m learning a lot about the scale of this from my nieces and nephews,” he said. “I’m just figuring out exactly how popular this stuff is. These gamers will have 40 million young and impressionable people watching them build their dairy farms on Minecraft. I’m really excited to see how this goes forward from here.
“I think this is a great step in the right direction,” Jager added.
Gallagher says things are changing, and the industry has to change with the times. The days of three cable TV channels are over, and it’s a new generation of marketing.
“Things like traditional television and cable news just don’t present the same marketing opportunities they once did,” Gallagher said. “We have to go where the people are. Over the next year, we’re going to test some new things, including Minecraft.
“Through GenYouth and Fuel Up to Play 60, we’ll be doing some things with NFL Madden,” he added. “Retailers are starting to create their own media cloud as the more traditional forms of advertising have declined in their reach a bit. Companies like Quaker have gone to 70 percent digital advertising, with more and more retailers following suit.
“As retailers continue to test their own channels, we’ll be doing more and more testing with them,” Gallagher added.
Dairy industry sustainability is another key driver in the new idea. “The businesses of dairy, such as the co-ops, the processors, and the manufacturers, have collectively set the goal of becoming carbon neutral by 2050,” Gallagher said.
“Dairy Management’s role in that is to support the environmental science, communications, and other relationships in achieving that goal,” he added. “While sustainability is important, it also has to be profitable for the industry. We are working on several different test cases on various farms to prove that profitability is possible, or what might need to change to make sustainability profitable.”
Gallagher said there is no sustainability without profitability. Without improving sustainability, farmers and the entire industry will likely be subject to very pejorative regulations in the future. It’s a chance for the industry to be proactive and avoid excessive regulations.
So how does Minecraft fit into the discussion? DMI had five college interns over the past summer who were in their low 20s and MBA students. DMI gave them the challenge to figure out how they would promote dairy sustainability to Gen Z if they had 10 million dollars to do the job. The students came up with the idea of promoting dairy through the video games that Gen Z plays.
Joanna Hunter is the Executive Vice President of Communications with DMI, who says the dairy industry will work with four of the most well-known Minecraft gamers in the world. It’s a chance to reach the Gen Z audience through a platform they’re already engaging in.
“We are going to work directly with four gamers who combine for more than 120 million followers,” she said. “Each of the influencers will take part in a virtual visit to dairy farms of different sizes and locations across the country, and every farm will have its own sustainability practices.
“After that virtual visit, the gamers will take what they learned and build a dairy farm in Minecraft,” Hunter added. “They may challenge each other, or they may challenge their followers to build the best dairy farm.”
The overall goal is for the gamers to engage others in that sustainability story and how dairy farmers are working hard to bring a nutritious and sustainable product to their audience. The gamers will be putting out dairy-related content through November. Hunter says it’s a great time to use the platform for a unique two-way engagement with the intended audience.
This kind of work doesn’t get off the ground without direct support from dairy farmers. Aric DeJager owns and operates Icon Holsteins in Kersey, Colorado. His role will be to provide on-site dairy farm education for the four gamers through FaceTime. Like a lot of folks older than Gen Z, he’s learning about Minecraft from younger relatives.
“I’m learning a lot about the scale of this from my nieces and nephews,” he said. “I’m just figuring out exactly how popular this stuff is. These gamers will have 40 million young and impressionable people watching them build their dairy farms on Minecraft. I’m really excited to see how this goes forward from here.
“I think this is a great step in the right direction,” Jager added.
Gallagher says things are changing, and the industry has to change with the times. The days of three cable TV channels are over, and it’s a new generation of marketing.
“Things like traditional television and cable news just don’t present the same marketing opportunities they once did,” Gallagher said. “We have to go where the people are. Over the next year, we’re going to test some new things, including Minecraft.
“Through GenYouth and Fuel Up to Play 60, we’ll be doing some things with NFL Madden,” he added. “Retailers are starting to create their own media cloud as the more traditional forms of advertising have declined in their reach a bit. Companies like Quaker have gone to 70 percent digital advertising, with more and more retailers following suit.
“As retailers continue to test their own channels, we’ll be doing more and more testing with them,” Gallagher added.
High school seniors are typically looking toward future career possibilities at this time of year. The sheer number and variety of careers in the agricultural sector of the economy might come as a shock. Erika Osmundson is Director of Marketing Communications with AgCareers.com. She says they posted a whole lot of job opportunities in 2019.
“Last year, we posted 50,000 open positions within agriculture on the site. While production agriculture is key to the world, there is more to agriculture in terms of careers than production, that ‘cows, plows, and sows’ is what we always say.”
The career options in the Ag sector are both blue collar and white-collar jobs.
“Sales and marketing always tend to do quite well. We do a lot of agronomy and research. Animal health is always a good area and tends to have a lot of opportunities. And then, when you look at what really entices young folks to get excited, I think we really have to play up all the technologies growing and evolving within the industry.”
Like most other sectors in the economy, the Ag sector is seeing an explosive growth in technology careers, which is creating demand for a lot of skilled workers.
“The Ag-Tech sector is huge when you start looking at GPS, drone technology, the plant genetics side, some of the traceability stuff. There are just opportunities for a new variety of people. Software developers, IT, process engineers, that type of thing. So, it’s really just expanding.”
AgCareers.com, in conjunction with the Farm Service Agency, put together profiles of more than 250 agricultural careers on the site, just to help career-seekers better understand what was out there in agriculture. Those profiles talk about things like responsibilities with each position, what the future holds for a particular job, and some of the profiles even deal with salaries. She says the salaries for agricultural positions may come as a surprise to some job seekers.
“Even some of those skilled trade jobs, we’re seeing those salary levels continue to rise, just because of the demand. Even in some of those traditional ones where people might not think that the salary would be good, they’re mistaken. But then, you look at some of the business-focused type of roles, the IT, the finance, we’re competitive with other industry sectors out there, and we work in a pretty great industry that’s pretty viable, I mean, we’re even seeing this through the COVID pandemic.”
Agriculture has been deemed an “essential service” by government officials, which means most of the people in the sector can continue to go to work and maintain their careers.. Osmundson says that means the demand for skilled workers is going to be there for the long term.
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.
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.
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.
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.
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.
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.
